2024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Gree Electric Appliances Inc. of Zhuhai
2024 Annual Report
April 2025
12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section I Important Notice Contents and Paraphrase
The Board of Directors Board of Supervisors directors supervisors and senior executives of
the Company hereby guarantee that the contents are authentic accurate and complete without
false records misleading representations or material omissions in the Annual Report and shall
take all the joint and several legal liabilities.Dong Mingzhu the Company's responsible person Liao Jianxiong the responsible person in
charge of accounting work and Liu Yanzi the Accounting Department's responsible person
(accounting superintendent) hereby declare and warrant that the financial report in the
Annual Report is authentic accurate and complete.All the directors have attended the meeting of the Board of Directors in respect of the
deliberation of the Annual Report.The forward-looking statements such as future plans and development strategies in the Annual
Report do not constitute a substantive commitment of the Company to investors. Investors and
relevant parties should therefore make rational investments based on an awareness of risk
factors attendant in investment and understand the differences between plans forecasts and
commitments.The Company's profit distribution proposal passed upon deliberation at the meeting of the
Board of Directors is set out as below: Based on the total share capital of 5585138741 shares
enjoying profit distribution rights at the time of disclosure of this profit distribution plan (the
total stock capital of 5601405741 shares excluding the 16267000 shares held in the
repurchase account of the Company) the Company plans to distribute all shareholders a cash
dividend of CNY20 (tax included) per 10 shares but does not plan to give any bonus share (0
share tax included) or convert any capital reserves into share capital. If there is a change in the
total share capital of the Company entitled to profit distribution from the date of disclosure of
this distribution plan to the date of implementation of equity distribution registration the
Company will adjust the total dividend amount accordingly based on the principle of keeping
the distribution ratio per share unchanged.
22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Contents
Section I Important Notice Contents and Paraphrase... 2
Section II Company Profile and Main Financial Indi... 6
Section III Management Discussion and Analysis ..... 11
Section IV Corporate Governance .................... 62
Section V Environmental and Social Responsibility... 86
Section VI Important Matters ...................... 107
Section VII. Changes in Shares and Shareholders ... 136
Section VIII Preferred Share Information .......... 148
Section IX Bond Information ....................... 149
Section X Financial Statements .................... 150
32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
References
(I) The accounting statements signed and sealed by Dong Mingzhu the legal representative Liao
Jianxiong chief accountant and Liu Yanzi head of accounting department.(II) The original audit report sealed by Union Power Certified Public Accountants (Special General
Partnership) with signatures and seals of certified public accountants Qiu Yiwu and Wang Huijun.(III) Originals and original drafts of all the Company's documents and announcements published on
the media and CNINFO designated by the Company within the report period.
42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Paraphrase
Item Means Definition
Company the Company the Enterprise Gree
Means Gree Electric Appliances Inc. of Zhuhai
Electric Appliances or GREE
Zhuhai Mingjun Investment Partnership (Limited
Zhuhai Mingjun Means
Partnership)
GREE GROUP Means Zhuhai Gree Group Co. Ltd.Finance Company Means Zhuhai Gree Group Finance Company Limited
Jinghai Internet Means Jinghai Internet Technology Development Co. Ltd.DunAn Environment Means Zhejiang DunAn Artificial Environment Co. Ltd.CSRC Means China Securities Regulatory Commission
Report period Means 2024/01/01 to 2024/12/31
52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section II Company Profile and Main Financial Indicators
I. Company information
Stock Abbreviation Gree Electric Appliances Stock code 000651
Stock Exchange Shenzhen Stock Exchange
Name in Chinese Gree Electric Appliances Inc. of Zhuhai
Name Abbreviation in Chinese Gree Electric Appliances
Name in Foreign Language (if
Gree Electric Appliances Inc. of Zhuhai
any)
Name Abbreviation in Foreign
GREE
Language (if any)
Legal Representative of the
Dong Mingzhu
Company
Registered Address Office 608 No. 108 Huitong Third Road Hengqin New Area Zhuhai City
Post Code of Registered Address 519031
Historical Changes to the On August 26 2021 it was changed from Jinji West Road Qianshan Zhuhai City
Company's Registered Address Guangdong Province to its current registered address
Office Address Jinji West Road Qianshan Zhuhai City Guangdong Province
Post Code of Office Address 519070
Website http://www.gree.com.cn
Email gree0651@cn.gree.com
II. Contacts and contact information
Secretary of the Board of Directors Securities Affairs Representative
Name Zhang Zhouhu
Jinji West Road Qianshan Zhuhai City
Address
Guangdong Province
Tel. 0756-8669232
Fax 0756-8614998
Email gree0651@cn.gree.com
III. Information disclosure and place of the report
Website of the stock exchange to which the Company's Annual
Shenzhen Stock Exchange (http://www.szse.cn)
Report is disclosed
China Securities Journal Securities Times Shanghai Securities
Media to which the Company's Annual Report is disclosed and
News Securities Daily and CNINFO
their website
(http://www.cninfo.com.cn)
Place where the Company's Annual Report is available for
Investment Management Department of the Company
inspection
IV. Alteration of registration
62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Unified Social Credit Code 91440400192548256N
Changes (if any) in the main business since the listing of the
No change
Company
On December 2 2019 GREE GROUP and Zhuhai Mingjun
signed the Share Transfer Agreement. GREE GROUP planned
to transfer 902359632 shares of the Company with unlimited
sales conditions held by GREE GROUP to Zhuhai Mingjun at
a price of CNY46.17/share; On December 13 2019 the Zhuhai
Municipal People's Government and the State-owned Assets
Supervision and Administration Commission of the State
Council (SASAC) of Zhuhai City separately approved the share
Changes (if any) in the controlling shareholders
transfer. GREE GROUP obtained the Transfer Registration
Confirmation issued by China Securities Depository and
Clearing Corporation Limited (CSDC) Shenzhen Branch on
February 3 2020. The share transfer registration procedures for
the transfer of this agreement have been completed and the
transfer date is January 23 2020. After the completion of the
share transfer registration the Company has neither a
controlling shareholder nor an actual controller.V. Other related information
Accounting firm engaged by the Company
Union Power Certified Public Accountants (Special General
Name of the accounting firm
Partnership)
F/1718 Yangtze River Industry Building No. 166 Zhongbei
Office address of the accounting firm Road Shuiguohu Sub-district Wuchang District Wuhan
Hubei Province
Names of undersigned accountants Qiu Yiwu Wang Huijun
Sponsor engaged by the Company to perform continuous supervision during the report period
□ Applicable □Not Applicable
Financial adviser engaged by the Company to perform continuous supervision during the report period
□ Applicable □Not Applicable
VI. Main accounting data and financial indicators
Whether the Company has retroactive adjustment or restatement of previous accounting data
□ Yes □No
Increase/Decrease
Item 2024 2023 2022
Over the Previous Year
Operating revenue
189163654064.64203979266387.09-7.26%188988382706.68
(CNY)
Net profits attributable
to shareholders of the
32184570372.2829017387604.1810.91%24506623782.46
listed companies
(CNY)
Net profits attributable
to shareholders of the
30099760382.9927565461117.799.19%23986248264.15
listed companies less
non-recurring profits
72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
and losses (CNY)
Net cash flows from
operating activities 29369250570.66 56398426354.17 -47.93% 28668435921.27
(CNY)
Basic earnings per
5.835.2211.69%4.43
share (CNY/share)
Diluted earnings per
5.835.2211.69%4.43
share (CNY/share)
Weighted average ROE 25.42% 26.53% -1.11% 24.19%
Increase/Decrease
Item At the End of 2024 At the End of 2023 Over the End of At the End of 2022
Previous Year
Total assets (CNY) 368031704522.86 368053902576.37 -0.01% 355024758878.82
Net assets attributable
to shareholders of the
137416898946.39116793716103.3917.66%96758734892.25
listed companies
(CNY)
The net profits of the Company before and after deducting non-recurring profits and losses in the last three fiscal years whichever is
lower is negative and the audit report of the last year shows that the Company's ability to continue as a going concern is uncertain
□ Yes □No
The net profits before and after deducting non-recurring profits and losses whichever is lower is negative
□ Yes □No
VII. Accounting data differences under domestic and foreign accounting standards
1. Differences in net profits and net assets in the financial report disclosed under the international
accounting standards and that disclosed under the domestic accounting standards
□ Applicable □Not Applicable
There was no difference in net profits and net assets in the financial report disclosed under the international accounting standards and
that disclosed under the domestic accounting standards during the report period.
2. Differences in net profits and net assets in the financial report disclosed under the overseas accounting
standards and that disclosed under the domestic accounting standards
□ Applicable □Not Applicable
There was no difference in net profits and net assets in the financial report disclosed under the overseas accounting standards and that
disclosed under the domestic accounting standards during the report period.VIII. Quarter-based main financial indicators
Currency: CNY
Item Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating revenue 36364269766.89 63418846729.70 46939261479.69 42441276088.36
Net profits attributable
to shareholders of 4675160247.24 9460959120.36 7824777633.58 10223673371.10
listed companies
Net profits attributable 4525486717.09 9338477416.48 7298976638.82 8936819610.60
82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
to shareholders of
listed companies after
deduction of non-
recurring profits and
losses
Net cash flows from
-2940867716.298063034127.697590273332.5916656810826.67
operating activities
Whether major differences exist between the above financial indicators or their sum and those in the disclosed quarterly report and
semi-annual report
□ Yes □No
IX. Non-recurring profit and loss items and amounts
□Applicable □ Not applicable
Currency: CNY
Item Amount in 2024 Amount in 2023 Amount in 2022
Profits and losses from
disposal of non-current assets
(including the write-off of -96493268.06 324413866.77 -51428778.52
accrued asset impairment
reserves)
Governmental subsidies
included in the current profits
and losses (excluding the
governmental subsidies
closely relating to the normal
business operations of the
Company conforming to 1921209083.93 784275516.36 873695831.91
national policies and
regulations enjoyed
according to established
standards and having a
sustained impact on the
Company's profits and losses)
Profits and losses from
changes in fair value arising
from financial assets and
financial liabilities held by
non-financial enterprises and
profits and losses from
465704232.40553697207.25-300034685.05
disposal of financial assets
and financial liabilities
except for the effective
hedging business related to
the Company's normal
business operations
Reversal of impairment
reserves for the receivables
151629418.1672395388.85118276955.90
under independent
impairment test
Non-operating revenues and
19359525.22-21226697.92-25299493.59
expenditures other than the
92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
above items
Other profit and loss items
conforming to the definition
69040924.4740553390.36-30904028.44
of non-recurring profits and
losses
Less: Amount affecting
368577572.53301917937.6064515784.15
income tax
Amount affecting
77062354.30264247.68-585500.25
minority equity (after tax)
Total 2084809989.29 1451926486.39 520375518.31
Details of other profit and loss items conforming to the definition of non-recurring profits and losses:
□Applicable □ Not applicable
Currency: CNY
Amount Involved
Item Reason
(CNY)
Other profit and loss items conforming to the definition of non-
69040924.47 Tax preferences for key groups and others
recurring profits and losses
Description of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits and Losses as recurring profit and loss
items
□ Applicable □Not Applicable
No non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies
Offering Their Securities to the Public - Non-recurring Profits and Losses were defined by the Company as recurring profit and loss
items.
1 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section III Management Discussion and Analysis
I. Industry situation of the Company during the report period
1. Consumption field — stable growth in the home appliance industry and sustainable growth in the air
conditioner market
In 2024 China’s economy maintained an overall recovery and positive trend. Policies promoting the consumption economy’s large
circulation accelerated the release of updated demand and further stimulated the market’s consumption potential. According to data
from AVC the retail sales of all home appliance categories in China (excluding 3C products) reached CNY907.1 billion in 2024
representing a year-on-year growth of 6.4%.In March 2024 the state officially launched the “Large-scale Equipment Renewal and Consumer Goods Trade-in” action plan. In late
July the central government further increased its support clearly stating that it would provide trade-in subsidies for consumers
purchasing eight types of home appliances including air conditioners refrigerators and washing machines that meet or exceed the
secondary energy or water efficiency standards. The subsidy rate is 15% of the product’s sales price. For products that meet or exceed
the primary energy or water efficiency standards an additional 5% subsidy will be provided to promote the upgrading of home
appliance consumption. From August to September local governments successively introduced supporting policies and the policy
effects continued to be released with the consumer market showing a recovery and improvement trend. Driven by the trade-in and
fiscal subsidy policies the domestic sales volume of white goods in the fourth quarter increased significantly quarter-on-quarter. Data
from the National Bureau of Statistics shows that the annual production of air conditioners washing machines and refrigerators
increased by 9.7% 8.8% and 8.3% respectively indicating a continuous recovery in the home appliance consumption market.
2. Industrial sector — production shows a sustained recovery trend
Data from the National Bureau of Statistics indicates that in 2024 China’s large-scale industrial enterprises achieved operating income
of CNY137.77 trillion representing a year-on-year growth of 2.1%. The industrial economy is demonstrating a sustained recovery
trend.The industrial scale of air conditioner core parts and components increases significantly. According to data from ChinaIOL.com in
2024 the overall scale of the rotor compressor market reached a new high with an annual sales volume of nearly 300 million units
representing a year-on-year growth of 13.7%. In the domestic market the sales volume was approximately 251.69 million units
increasing by 11.9% year-on-year; in the export market the sales volume was about 44.88 million units growing by 24.8% year-on-
year. Benefiting from the growth in the sales scale of the downstream air conditioner market the domestic sales volume of air
conditioner motors was approximately 396 million units increasing by 13% year-on-year; the export volume was about 92 million
units growing by 28.9% year-on-year.The scale of the intelligent manufacturing equipment industry is growing. The Development Plan on Smart Manufacturing During the
“14th Five-Year Plan” takes the development of advanced intelligent manufacturing industry as the core goal to overall arrange and
plan the promotion of manufacturing power. At present China has formed an intelligent manufacturing industry system represented
by automated production lines intelligent detection and assembly equipment intelligent control systems industrial robots etc. and
the scale of the industry is growing. According to data from INSIGHT AND INFO the market size of China's intelligent manufacturing
equipment was CNY3.4 trillion representing a year-on-year growth of 6.3%. Data from the China Machinery Industry Federation
shows that the output of industrial robots in 2024 was 556000 units increasing by 14.2% year-on-year. According to data from the
Zhongshang Industry Research Institute the scale of the CNC machine tools exceeded CNY430 billion with a year-on-year growth of
approximately 5.7%. With the advancement of technology and the coordinated development of industries the industrial chains of CNC
machine tools and industrial robots will continue to expand and deepen becoming the core driving force for industrial transformation
and upgrading.
1 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
II. Major businesses of the Company during the report period
Gree Electric Appliances Inc. of Zhuhai is a diversified and technological global industrial group and has three major consumer brands
of GREE TOSOT and KINGHOME and industrial brands of LANDA Kaibang and Xinyuan. Its industry covers two major areas of
household consumer goods and industrial equipment. In the consumption field it covers residential air conditioners HVAC
refrigerators washing machines water heaters kitchen appliances environmental appliances smart buildings and smart home
appliances. In the industrial sector it covers high-end equipment precision molds freezers and refrigeration equipment motors
compressors capacitors semiconductor devices precision casting equipment basic materials industrial energy storage renewable
resources etc. So far GREE products have served more than 190 countries and regions around the world and continue to meet people's
needs for a better life.During the report period GREE’s sales of central air conditioners remained the largest in the industry. According to the “2024 ChinaCentral Air Conditioner Industry Development Report” released by ihos’s “HVAC & Heat Pump” magazine GREE achieved the top
sales volume in the domestic central air conditioner market with a market share of over 15% leading the market for 13 consecutive
years.During the report period GREE continuously enriched its product categories. Multiple categories of its home appliances were highly
favored by the market with its retail sales and volumes ranking among the top in the industry. According to data released by
Euromonitor GREE ranked first in the global retail volume of split air conditioners in 2024. Data from AVC shows that in 2024
GREE’s share of online retail sales of residential air conditioners was 25.40% ranking first in the industry; its share of online retail
sales of electric fans was 13.01% ranking second; its share of online retail sales of electric heaters was 9.66% ranking third; and its
share of online retail sales of air source water heaters was 17.45% also ranking third in the industry.In the future the Company will continue to take “promoting the industrial spirit mastering core technologies pursuing perfect qualityproviding first-class services Made in China Loved by the World” as its mission and steadily move forward towards the realization
of its corporate vision of “building a world-class enterprise and making GREE a century-old brand”.III. Core competence analysis
The Company adheres to independent innovation breaks through core technologies focuses on consumer demands provides
professional services leads industry development and jointly creates a better life for humanity.(I) World-famous brand continuing to create value for the society
GREE is a diversified technological global industrial group integrating R&D production sales and service. Over the years the
Company has successively won numerous honors such as “China World-famous Brand” “Most Competitive Brand in the Market”
“National Quality Award” “Enterprise Exempted from Export Inspection” “China Brand Innovation Award” “Top 100 Scientific andTechnological Enterprises in China's Light Industry” and “Top 500 Creditworthy Enterprises in China”.During the report period the Company was once again listed on Forbes “Global 2000” made it onto the “2024 China's Top 500 PrivateEnterprises List” and was included in the “2024 World IoT 500 Golden List” receiving multiple honors including the “Global BusinessContribution Award”. It was also selected for the “2024 China’s Top 100 Overseas Brands Index” and the “People’s CraftsmanshipBrand” list. In the “2024 China Brand Value Evaluation Information” it ranked first in the home appliance industry of the light industry
group with a brand value of CNY188.253 billion.GREE adheres to the core values of quality first customer satisfaction honest operation and win-win for all parties. It builds and
establishes its brand with perfect quality and world-leading technology and continuously creates value for society and consumers.(II) Outstanding R&D capabilities demonstrate an industry leading role
The Company adheres to the principle of “independent research and development of core technologies” builds a multi-level and high-
level R&D platform system relying on national-level scientific research platforms and forms a technological innovation system that is
“enterprise-oriented market-driven and combines industry academia and research”. It continuously overcomes key core technologies
and leads the development of the industry.
1 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The Company has the world’s largest air conditioner R&D center with 16 institutes 152 research institutions 1411 laboratories and
1 academician workstation (electric motor and control). It also has one National Engineering Technology Research Center one State-
level Industrial Design Center one State Recognized Enterprise Technology Center and one Robot Engineering Technology R&D
Center. At the same time it has become the research and evaluation base for refrigeration equipment of the National Notification
Enquiry Center and the national standard verification point for energy conservation of refrigeration equipment. As of the end of 2024
the Company has cumulatively won 2 National Science and Technology Progress Awards; received a total of 122 important awards at
the national provincial and industrial levels and has possessed 46 “World Leading” technologies; has applied for 129524 patents
including 70884 invention patents; has obtained 25883 invention patent grants making it the only home appliance enterprise to enter
the top ten in China's invention patent grants for 9 consecutive years; has won 81 Chinese patent awards including 3 gold awards for
invention and 4 gold awards for appearance; and has got 15 gold awards of International Exhibition of Inventions of Geneva and 12
gold awards of iENA. At the same time the Company is one of the first batch of national enterprise intellectual property demonstration
units “National Patent Operation Pilot Enterprise” and won the China Trademark Gold Award. The Company’s steady increase in the
number and quality of patents fully demonstrates GREE’s invention and creation capabilities and international leading research and
development strength to the world.(III) Leading PQAM mode achieving “Made in China Loved by the World”The Company adheres to the quality policy of “pursuing perfect quality establishing an international brand and building a century-old enterprise”. It always prioritizes quality and is guided by the pursuit of perfect quality. Through continuous innovation it enhances
product quality to give back to consumers.Innovation drives quality management. GREE’s quality model sets an industry benchmark. Since 2012 the Company has vigorously
carried out quality management innovation method innovation and theoretical innovation deepened the construction of a quality-
strong enterprise and proposed the forward quality-driven “Five-step Quality Prevention Method” and the reverse quality-driven “D-CTFP Quality Technology Innovation Cycle” methodology; with the T9 comprehensive quality control model and PQAM (perfect
quality assurance model) as the core framework it has established a unique GREE “perfect quality” management model and won the
third “China Quality Award” in 2018. In March 2021 the Company launched a “ten-year free repair” policy for residential air
conditioners which is the longest repair period promised by the Chinese residential air conditioner industry to date. It is also an upgrade
of the service quality since GREE was the first in the industry to introduce the “six-year free repair” policy for residential air
conditioners in 2005 and it is a demonstration of the strength of GREE air conditioners in leading the industry service standards.The Company adheres to the original intention of “taking consumer demand as the highest standard” and contributes to the high-quality
development of Made-in-China products with the spirit of “conduct self-examination”. In 2019 the Company’s quality technology
innovation cycle D-CTFP was elevated to the national standard Quality Management - Innovation Cycle Guide Based on Customer
Demand (GB/T 38356-2019). In 2023 the book “Pursuing Perfection - Innovation & Progress: GREE Quality Model” co-authored by
GREE and South China University of Technology was selected for the “Best Quality Practices in China in the 21st Century” series
published by Standards Press of China. During the report period the Company once again received the two highest honors in its field
“Enterprise Market Quality Credit AAA Level” and “Five-Star User Satisfaction Benchmark Enterprise” awarded by the China
Association for Quality demonstrating consumers’ recognition of GREE’s high-quality products and showcasing GREE’s strong
strength as a leading player in the industry.Through continuous innovation and outstanding management GREE has set an industry benchmark with its “Perfect Quality”
management model demonstrating the absolute advantage of “Made in China”. In the future we will continue to take “pursuing perfectquality” as our responsibility and “satisfying users” as our goal to win global admiration for “Made in China”!
(IV) The full series of home appliances providing consumers with a high-quality living environment
GREE’s products cover a full range of home appliances including residential air conditioners HVAC systems refrigerators washing
machines water heaters kitchen appliances and environmental appliances fully meeting consumers’ comprehensive needs for a high-
quality living experience. During the report period the Company adhered to the principle of user demand-oriented and launched a
1 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
series of new home appliances including AI Savenergior Air Conditioner Cool Comfort-II Energy-saving Air Conditioner Ultimate
Refresh Air Conditioner Pure Fresh Air Conditioner residential central air conditioners with Gentle Air Comfort technology Pular
and Charmo series of photovoltaic storage air conditioners for tropical regions All-round Freshness Preservation series refrigerators
“Zhenrou” series washing machines high-efficiency heat exchange series gas water heaters instant heating wall-mounted pipeline
water dispensers stove range hood sets air circulators air cooler new tower-type warm air fans and new humidifying skirting boards
providing consumers with a high-quality home living environment.The Company has deepened its layout in areas such as the whole-house intelligent system the whole-house communication architecture
intelligent voice interaction and the intelligence of home appliances achieving the construction of a “Healthy Home” from individual
smart products to the entire smart home appliance ecosystem. The Company takes “A Better Life One Step Ahead” as its core concept
and independently created the IoT platform intelligent decision-making system G-Voice voice interaction system intelligent vision
system G-OS IoT operating system G-Learning comfort and energy-saving algorithm and other intelligent IoT technologies. It has
launched a series of smart home products and formed a smart home solution covering five systems: energy air health security and
lighting. It has achieved a leap from “GREE Making Better Home Appliances” to “Smart life Created by GREE” and
comprehensively and systematically created a healthy and intelligent home environment.(V) A new retail system under autonomous control meeting consumers' new demands through digitalization
The Company is committed to building an independent controllable mutually beneficial and win-win channel system. By continuously
promoting the innovation of the new retail marketing system it has formed a dual-line integrated sales network covering the whole
country. Through the in-depth application of digital technology the Company continuously enhances channel efficiency achieving a
win-win situation for the enterprise distributors and consumers.The Company has established a nationwide dual-channel integrated sales network through 30 regional sales companies across the
country over 30000 offline outlets its own online platform and official flagship stores on third-party e-commerce platforms further
strengthening its channel retail capabilities and market service capabilities. It has also set up a unified national marketing and inventory
management plan to enhance the transparency and controllability of channel management reduce channel inventory optimize logistics
costs and improve channel operation efficiency. The Company is actively creating an offline experiential shopping environment and
has launched a new channel strategy brand “Dong Mingzhu Healthy Home” integrating multiple categories of home appliances to
meet consumers’ diverse needs and provide comprehensive and high-quality home life solutions for them.Digitalization empowers new advantages in channel management. By building an advanced digital information system the Company
has achieved full-process digitalization from procurement and logistics to sales and services enhancing overall efficiency. Digital
technology improves the timeliness of sales information for dealers facilitating precise decision-making and efficient implementation
and further enhancing the service efficiency of dealers and inventory turnover rate. Digital means make the Company's terminal
business situation visible enhancing user stickiness; through the digital upgrade of terminal stores it deepens the flattening reform of
the channel improves operational efficiency continuously improves the shopping experience of consumers and further consolidates
the Company's market position.(VI) Scientific production capacity layout and leading intelligent manufacturing level to respond to market
demand flexibly
The Company scientifically arranges its production capacity distribution based on factors such as the market demand characteristics of
different products and the differences in regional production factor endowments. By the end of 2024 the Company had established 77
production bases in multiple provinces and cities including Guangdong Chongqing Anhui and in countries such as Brazil covering
air conditioners home appliances industrial products etc. achieving industrial agglomeration and highly coordinated development of
the upstream and downstream industrial chains. The Company guided by the principles of serving the market overall planning local
production and regional collaboration and following the allocation principles of economic transportation and balanced production
arranges the production capacity of each base to promote the optimal benefits. Meanwhile the Company has established 6 recycling
1 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
resource bases covering the entire industrial chain from upstream production to downstream recycling and has achieved a green
circular and sustainable development model.With the goal of enhancing the operational efficiency of the entire production process the Company fully integrates advanced
technologies such as industrial robots CNC machine tools 5G and AI into its production scenarios striving to build and cultivate
leading demonstration factories in the industry. By the end of 2024 the Company had been awarded a total of 2 national-level intelligent
factories 3 national-level 5G factories 9 national-level green factories and 8 national-level industrial internet pilot
demonstrations/application cases fully demonstrating the Company's leading position in the field of intelligent manufacturing.Precise production capacity layout and leading intelligent manufacturing level further enhanced GREE's manufacturing and cost
advantages realized the rapid response to market demand and brought high-quality life enjoyment to consumers.(VII) With strong self-research and self-made ability of core components the comprehensive competitiveness
of products continues to lead the industry
The Company possesses strong capabilities in core component research and development as well as manufacturing. It has subsidiaries
such as Landa Compressor Kaibang Motor Xinyuan Electronics Gree Electric and Gree Mold. It leads the industry in terms of
production capacity technology and quality and has successively won honors such as the "National Quality Award" "National Quality
Benchmark" "Top 100 Enterprises in China's Electronic Components Industry" "National Intellectual Property Advantage Enterprise"
"Guangdong Famous Product" and "Guangdong Provincial Enterprise Technology Center". It has established key industry
experimental and testing centers and research centers such as the "National CNAS Testing Center" "Guangdong Provincial
Engineering Technology Research Center for Key Electronic Components" "Guangdong Provincial Engineering Technology Research
Center" and "Guangdong Provincial Intelligent Mold Technology Innovation Center" demonstrating the Company's hard power and
brand influence in industrial product development.The Company's independently developed products including the two-stage enthalpy-increasing compressor three-cylinder two-stage
variable displacement compressor rare-earth-free main drive motor system high-performance linear servo motor and driver high-
performance servo motor and driver for industrial robots and magnetic levitation motor drive system have all received the "World
Leading" technology certification. The CD294W large ripple aluminum electrolytic capacitor with welded plates has been shortlisted
for the 2024 AWE Award. The Company has a comprehensive grasp of the advanced technology of core components and continuously
consolidates its leading position in the market.GREE has strong R&D capability of core components and excellent processing and manufacturing capability. The GA-UHD500
horizontal machining center from GREE adopts a stepped column lightweight and high-rigidity structural design breaking through the
technical challenges of high speed and high precision. Its maximum feed rate reaches 60 m/min with a minimum division of 0.001°.The positioning accuracy and repeatability of the equipment are 0.006 mm and 0.004 mm respectively and the efficiency is increased
by more than 15% compared with the same type of equipment. It meets the high-quality processing requirements of core components.The powerful R&D and manufacturing capabilities of core components ensure the extremely high degree of autonomy and
comprehensive competitiveness of the Company's products providing strong support for the Company's continuous and stable
development and guaranteeing that the Company's products always remain at the leading position.(VIII) Refine the cost control system and continuously enhance the competitiveness of products
The Company adheres to the customer demand-oriented approach combines its business goals and establishes and improves the cost
control system. It deepens the cost control of products implements value chain analysis and through the decomposition and analysis
of the impact of the input transformation and output of costs in each business link inside and outside the group on the final value of
the product it improves operations and reduces costs accordingly thus forming a sustainable competitive advantage.Supply chain integration promotes cost reduction on a large scale. The Company implements a centralized procurement policy
continuously expands its layout in the upstream and downstream of the industrial chain actively builds strategic partnerships with
leading enterprises in the industry continuously optimizes the supply chain structure integrates and utilizes high-quality supply chain
resources and is committed to achieving a win-win situation for all parties. The Company continuously deepens its cooperative
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relationship with high-quality suppliers shares resources and strives to maximize the interests of both parties achieving mutual benefit
and win-win results.Digital technology drives cost reduction across the entire value chain. The Company continuously increases the application of digital
technology in its operation and management achieving digital control over the entire chain from product research and development
procurement production to sales and promoting optimization throughout the product life cycle and the entire manufacturing process
as well as overall cost reduction.Continuous innovation leads to cost reduction in product technology. The Company has further enhanced material utilization and
accelerated the generalization of materials by improving product structure design optimizing process links and developing lean models
achieving a sustained decline in costs.(IX) A well-developed system for cultivating independent talents to ensure a high-quality supply of human
resources
GREE always adheres to the principle of "focusing on the strategic layout of the Company and adhering to independent training of
talents" and gradually forms an independent talent training mode with an independent talent introduction channel independent training
and development mechanism and all-round incentive and guarantee system as the core based on the development experience and
cultural deposit of the Company striving to make employees and the Company make progress and develop together.The Company has established a systematic "selection cultivation utilization and retention" independent talent training system. It
attaches great importance to introducing outstanding talents from universities. Through various forms such as employer brand
characteristic activities university-enterprise co-construction of characteristic courses and campus recruitment fairs it recruits
professional talents who recognize the Company's corporate culture and have high quality. It always regards talent cultivation as an
important strategic resource for the development of the enterprise. By building a learning organization it promotes the inheritance of
management experience the sharing of R&D technology and the improvement of skills and qualities. For key groups it organizes and
conducts "Cornerstone Plan" supervisor training camps "Spark Plan" team leader training camps and college student talent training
projects providing all-round and multi-level training support for employees. It continuously strengthens the talent evaluation and
selection mechanism to provide strong support for talent identification. It also enhances talent care enabling employees to share the
dividends of the Company's development through employee stock ownership plans talent subsidies talent housing and other aspects
thereby improving employee satisfaction and happiness.By the end of 2024 the Company had been awarded 2 National Ten Thousand Talents Program Leading Talents in Science and
Technology Innovation 4 experts enjoying special government allowances from the State Council 4 advanced basic process talents
from the MIIT 1 national leading talent in intellectual property 1 national technical expert 1 outstanding contribution award in South
Guangdong 2 young outstanding talents under the Guangdong Special Support Program 76 high-level talents in Zhuhai 390
outstanding young talents in Zhuhai's industries 14 Guangdong Provincial Technical Experts 2 Nanyue Technical Experts 17 Zhuhai
Municipal Technical Experts 16 Zhuhai Municipal Chief Technical Experts 14 Zhuhai Special Artisans and 341 Zhuhai Artisans.The Company's strong capabilities in talent cultivation lay a solid foundation for its long-term development.IV. Analysis of main business
1. Overview
The Company with the vision of "building a world-class enterprise and establishing a century-old brand of GREE" relies on the
enterprising and pioneering spirit of all GREE employees to forge ahead and overcome challenges. In 2024 the Company achieved a
total operating revenue of CNY190.038 billion; the net profit attributable to the parent company was CNY32.185 billion representing
a year-on-year growth of 10.91% with its profitability continuously improving.(I) Focus on market demand and continuously provide users with innovative consumer products.
1. Residential air conditioner sector
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During the report period the Company focused on "energy conservation and low carbon comfort and health and personalization and
intelligence" to upgrade its residential air conditioners creating a new generation of high-performance healthy and intelligent
residential air conditioner products.In terms of energy conservation and efficiency the Company has launched a series of wall-mounted air conditioners such as "Cool
Comfort-II" and "Savenergior". These products are designed to meet the high standards of green and energy-efficient operation
integrating key technologies for low-carbon dynamic operation of inverter air conditioners energy-saving control technologies based
on artificial intelligence algorithms and highly applicable AI chips effectively enhancing the dynamic energy efficiency throughout
the year. Based on the number of air conditioners sold in this series it is estimated that about 308 million kilowatt-hours of electricity
can be saved each year and about 306700 tons of CO2 emissions can be reduced truly achieving energy conservation and carbon
reduction in the operation of air conditioners.In terms of comfort and health the Company has launched fresh air conditioner series such as "Ultimate Refresh" and "Pure Fresh".These products focus on users' demands for low-noise and high-efficiency fresh air replacement as well as bacteria removal and
purification. They are equipped with technologies like low-noise and large fresh air volume and high-efficiency water condensation
purification and bacteria removal achieving professional-level air circulation purification and bacteria removal. With low noise and
large fresh air volume they significantly enhance users' experience of using the fresh air function.In terms of personalized intelligence the Company has launched the "Pure Air" floor-standing air conditioner which is equipped with
millimeter-wave radar technology. It intelligently monitors the situation of people in the area and adjusts the air supply of the air
conditioner accordingly achieving the intelligent and flexible "wind avoids direct blowing people and follows people". It can also
intelligently detect when users leave the area and automatically turn off the air conditioner eliminating the trouble of forgetting to turn
it off and providing consumers with a more intelligent worry-free comfortable experience.In response to the environmental protection requirements of the EU region the Company has independently developed active and
precise detection technology full-system collaborative control leakage prevention technology and high-precision regulation
technology of the unique electronic expansion valve for R290. It has launched a new series of residential air conditioners with R290
eco-friendly refrigerant achieving safe reliable and efficient operation within a wide temperature range from -25°C to 50°C. The
SEER reaches A+++ and the SCOP reaches A++. It has been successfully launched in many countries and regions in Europe Africa
and others. In response to the high-temperature environment in tropical regions the Company has developed the Pular and Charmo
series products suitable for different areas. These products integrate technologies such as stepwise heat exchange parallel compression
refrigeration photovoltaic direct drive and energy storage achieving efficient and stable cooling under high-temperature conditions
and solving the problem of cooling demands in high-temperature environments.
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2. HVAC equipment sector
The Company's HVAC sector covers over a thousand categories of 13 major series including centrifugal chiller VRF screw chiller
chiller unit chiller household chiller and precision air conditioner which by continuously upgrading product technology can meet
the application demands of different working conditions scenarios and industries and serve major benchmarking projects.Residential central air conditioner
In response to the long-standing industry pain points such as poor heating efficiency and cold air blowing directly onto people in
traditional air conditioners the Company has innovatively extended the "Gentle Air Comfort" technology from the residential air
conditioner field to the residential central air conditioner field and launched the central air conditioner with gentle air comfort
technology. The product adopts the industry's first reversible air supply technology which ensures that the air does not blow on people
during cooling and quickly warms up the human activity area in the room during heating. The vertical temperature difference in the
room is as low as 0.11°C keeping people in the most comfortable zone.In response to consumers' demands for comfort and weather resistance of residential air conditioners the Company has launched the
"Smart Comfortable Home" central air conditioner system for homes based on years of technological accumulation. The product is
equipped with temperature and humidity balance technology enabling intelligent adjustment; it is combined with an air purification
function to meet customers' health demands; it adopts a brand-new sand-textured black appearance and standard golden anti-corrosion
fins effectively resisting daily wind and rain erosion.In response to the problems of traditional water floor heating systems such as freezing in winter and large pipe diameters that occupy
floor height the Company has launched the "Yuxiang" dual-purpose central air conditioner system for home use that combines ceiling
and floor heating. The product adopts fluorine floor heating with capillary copper tubes as the heating pipes which have a diameter
of only 4 mm effectively saving floor height. Meanwhile the entire system is designed without water eliminating the risk of freezing
in winter. The product is equipped with the world's leading intelligent predictive control technology which reduces room temperature
fluctuations and saves over 30% of energy in actual operation. At the same time it undergoes functional upgrades featuring body-
sensing control and self-cleaning functions. It meets the demands of three-dimensional heating in winter cooling in summer and
temperature control and dehumidification in the high-humidity transitional seasons achieving precise regulation of indoor temperature
and humidity throughout the year and fulfilling the comfort requirements.In response to the limited installation space issue for modern green buildings the Company has launched a full range of "GMV ES"
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high-capacity side discharge VRF with the maximum cooling capacity increased to 68.5 kW. The floor space occupied by the product
is 45% less than that of the same cooling capacity top discharge VRF. It does not require the operation of a large hoisting machine. A
single outdoor unit can support up to 40 indoor units reducing installation difficulty and cost and meeting the usage requirements of
more installation scenarios.In response to consumers' demands for indoor air purification and low maintenance costs of equipment the Company has launched the
"SelectAir" DB series of full heat exchange fresh air purifiers. The product features a high-molecular washable core achieving "zero
consumables" for the core. It is equipped with an air quality detection device inside making air quality visible. The PM2.5 and carbon
dioxide concentration parameters can be viewed through the wire controller. It adopts a four-layer purification and antibacterial filter
combined with ion sterilization technology effectively removing formaldehyde purifying PM2.5 and eliminating bacteria.In response to the challenges of on-site energy efficiency detection and regulation for commercial VRF in large buildings the Company
has conducted research and development in areas such as real-time performance calculation technology flexible refrigerant regulation
technology and full-scenario AI energy-saving technology. It has launched the "AI Wide-range Energy-saving" GMV9 Zhiyue series
VRF which is the first in the industry to achieve an online measurement accuracy of indoor unit capacity of ≥90% real-time power
consumption measurement accuracy of the unit of ≥95% and an average energy-saving rate of 25%. This technological achievement
was appraised by the Appraisal Committee of China Machinery Industry Federation as being at the "World Leading" level.Commercial air conditioner
In response to the energy efficiency demands in public buildings rail transit data centers and other fields the Company has conducted
research in the directions of screw compressor structure design and high-precision control and launched a new generation of two-stage
permanent magnet variable frequency screw water chillers achieving a significant improvement in performance across all operating
conditions with a COP of 7.0+ under national standard conditions. This technological achievement was appraised as "World Leading"
by the Appraisal Committee of the China Machinery Industry Federation won the First Prize of the Guangdong Science and
Technology Progress Award and was selected as a "Gold Award Product" and "Product of the Year" at the 2024 China Refrigeration
Expo. It has been widely applied in various projects such as public buildings subway stations and industrial refrigeration and is
exported to many countries and regions including Singapore and Russia.In response to the market demand for energy-saving renovations of buildings the Company has launched modular integrated dynamic
pressure gas suspension centrifugal machines. Product COP and IPLV both reach dual primary energy efficiency. It adopts a small
modular design equipped with dynamic pressure air suspension bearings ensuring all-time high efficiency flexibility compactness
1 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
and ease of maintenance making building renovations simple and flexible.In response to the problems of low energy efficiency difficulty in batch replication at the line level large variations in operating
conditions and inability to self-adjust operating parameters in traditional metro station air conditioner systems the Company has
developed a fully-conditioned high-efficiency intelligent environmental control system for metro stations based on variable frequency
and variable capacity technology variable dynamic correction energy-saving control technology based on actual operating data of air
conditioner systems and a full-condition integrated environmental control system with low thermal resistance heat exchange and low
water resistance pipe networks achieving batch application in the metro field. This technological achievement was appraised by the
Appraisal Committee of China Energy Conservation Association as being at the "World Leading" level.Clean heating
In response to the demand for clean energy heating in place of coal in northern regions the Company has launched the low-temperature
and high-efficiency integrated heat pump heating product. This series of products adopts dual-stage compression low-temperature
heating gas injection and enthalpy increase technology direct current variable frequency drive liquid cooling and heat recovery
technology and stepwise precise gas injection control technology achieving ultra-low temperature heating at -35°C and high water
supply temperature of 60°C with heating/cooling energy efficiency exceeding the first level. The integrated modular design makes
selection installation and operation simple and flexible meeting the heating market demand in northern regions.For non-process industrial heating applications the Company has launched industrial large-capacity high-temperature centrifugal heat
pump units. The product features high temperature high efficiency low carbon emissions large capacity and significant temperature
rise. It breaks through the bottleneck of comprehensive utilization of low-grade heat sources such as waste heat with a single unit heat
output reaching 10 MW and the highest outlet water temperature reaching 150°C. It can replace boilers for heating and promote energy
conservation in the industrial sector.In response to the diverse demands for engineering hot water the Company has launched a new generation of "Hot.Spa Area" full DC
inverter air source heat pump water heaters. The product features two operation modes: hot water and heating making it more adaptable
to various engineering projects. It supports wide ambient temperature operation providing stable heating from -20°C to 45°C and can
produce hot water up to 60°C. The side discharge shell design offers greater installation flexibility reducing the floor space by up to
37% meeting diverse engineering requirements. It has obvious advantages in energy-saving performance hot water supply capacity
operational stability and ease of installation effectively addressing the demand for clean hot water in public places such as schools
hotels shopping malls and shops.
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Refrigeration and freezing
In response to the demands for rapid freezing and high energy efficiency in the cold chain logistics market the Company has launched
ultra-low temperature single-stage double-screw parallel units. The product's COP has been increased by more than 40% compared to
single-stage compression ensuring long-term efficient and stable operation of the units under rapid freezing conditions significantly
reducing freezing time and operational energy consumption. In response to the demand for large-scale cooling applications the
Company has launched an open-type screw compressor unit. The product has a single-unit displacement of up to 3000 m3/h achieving
a 5% increase in energy efficiency. It adopts a new 7/8 tooth high-efficiency rotor profile which is more suitable for low-temperature
conditions and effectively ensures the stable operation of the unit under harsh conditions."Zero-carbon source" air conditioner
After ten years of technological research and development the Company innovatively integrates photovoltaic energy and air
conditioner products across borders. The world's first GREE "zero carbon source" air conditioner system won the highest award at the
2021 Global Cooling Prize which is highly in line with the national "dual carbon" goals.
During the report period the advanced photovoltaic energy storage direct current flexible system quality standard laboratory led by
GREE and jointly established with the University of Macau and Guangdong Power Grid was approved for establishment in June 2024.The "zero carbon source" photovoltaic energy storage air conditioner system product series were further enriched increasing to 15
categories and 101 models. This successfully addressed the technical pain points of local consumption of photovoltaic power and peak
shaving and valley filling of electricity. The application of this technology was included in the "Opinions of the Central Committee of
the Communist Party of China and the State Council on Accelerating the Comprehensive Green Transformation of Economic and
Social Development". As of the end of 2024 the technology related to the photovoltaic (storage) DC air conditioner system has won
multiple domestic and international awards including the first Chinese Patent Gold Award in the home appliance industry the UK
RAC Annual Achievement Award and the International Exhibition of Inventions of Geneva Gold Award; the Company's "zero carbon
source" system has been implemented in 35 countries and regions around the world and it is estimated that it can achieve an annual
reduction of about 110000 tons of carbon emissions.
3. Home appliances
The Company centering on the product strategy of "GREE Making Better Home Appliances" has achieved full coverage of a series
of products including refrigerators and washing machines kitchen appliances water heaters environmental appliances and medical
aesthetics etc. The products are positioned towards health intelligence and personalization and a set-based layout is implemented.
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Refrigerator and washing machine
The Company's All-round Freshness Preservation series of refrigerators have developed self-balancing fruit and vegetable preservation
technology natural convection meat preservation technology and meat ultra-freezing storage technology. These technologies
effectively solve problems such as fruit and vegetable dehydration meat surface drying and discoloration nutrient loss myoglobin and
unsaturated fatty acid oxidation and deterioration in complex storage scenarios achieving constant humidity control in fruit and
vegetable storage scenarios and reducing meat juice loss rate. This technological achievement was appraised by the Appraisal
Committee of China National Light Industry Council as being at the "World Leading" level.The Company has launched the “Zhenrou” series of washing machines and washer dryer. These products feature an active water rinse
technology addressing users' demands for deep cleaning efficient sterilization and smart interconnection scenarios of washing
machines. It achieves uniform and full coverage within the rinse bucket saving 40% of time compared to traditional soaking rinse
methods significantly reducing laundry time. The rinse efficiency reaches up to 97.4% and the sterilization rate exceeds 99.99%.Additionally they are equipped with smart WiFi functionality enhancing the user experience. The product won the bronze medal at
the 49th International Exhibition of Inventions of Geneva with its outstanding performance and innovative technology and has been
widely praised by users.
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Kitchen appliance
The Company has launched a wall-mounted instant hot water dispenser that can achieve "boiling and then cooling to produce warm
water in seconds" provide hot water at all temperature ranges and offer 1°C precise temperature adjustment. With a large flow rate of
800 mL/min it is compatible with full-flow water purifiers making it convenient to use. Moreover the water tank is equipped with
ultraviolet sterilization technology to ensure drinking water safety.The Company has launched uncoated cast iron rice cookers and stainless steel rice cookers. The cast iron rice cooker adopts the ancient
casting process and combines modern high-temperature nitriding and oxidation surface treatment technology to achieve a chemical-
free coating preventing air moisture and the iron base material from coming into contact thus making the cast iron inner pot less
prone to sticking and rusting allowing consumers to use it with confidence and enjoy healthy meals. The stainless steel rice cooker is
made of high-quality 316L food-grade stainless steel treated with polishing and brushing processes without coating wear-resistant
corrosion-resistant and resistant to hard object scratches ensuring a longer service life. Meanwhile the inner pot is specially designed
with micro-scale dot array pits which can reduce the contact area of the rice and lower the adhesion force of the rice achieving long-
lasting non-stick performance.The Company has launched the "Clean Star" range hood which is equipped with a 10-year inner cavity maintenance-free cleaning
technology solving the industry's difficult problems of hard-to-clean and strong odor inside the range hood. Through the motor FOC
control technology and NVH noise reduction technology it has continuously broken through in terms of air volume and performance.The Company has launched a new type of built-in disinfection cabinet. With its efficient sterilization and drying composite technology
it can easily kill 99.99% of bacteria and viruses and its disinfection level has reached the highest two-star standard in the industry.
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Water heater
The Company has launched a 18-liter large-capacity gas water heater. The product is equipped with a zero-cold-water function
achieving constant temperature and comfortable bathing needs which is more suitable for families with many people multiple kitchens
and bathrooms and villa-type families. Moreover in response to the problem of water tank corrosion caused by poor water quality a
no-coil high-efficiency heat exchange system has been developed successfully solving the problem of water tank corrosion.Environmental appliance
The Company has launched a tower-shaped voice-activated warm air blower. It is equipped with an offline voice module and features
a separate sound cavity structure. Without the need for an internet connection it achieves a voice recognition rate of over 91% and has
no false wake-ups within 48 hours. It adopts an anti-disturbance dual-power pressurized air duct to keep the noise level at or below 50
dB. The design of a large arc-shaped air outlet with anti-scalding structure ensures even heat dissipation better meeting the needs of
consumers.The Company has launched the Flame Humidifying Baseboard which integrates ultrasonic humidification to ensure warmth without
dryness. It features a flame-like ambient light design to create a cozy fireplace-like heating experience. Equipped with IPX4 water
resistance and graphene heating elements it offers a temperature range of 16°C to 30°C with smart temperature control making it safe
for both home and bathroom use.Medical aesthetic products
The Company centering on users' demands for a healthy and high-quality life has launched a series of home health products such as
the GREE Double-sided Beauty Instrument blood pressure monitors nebulizers and pulse oximeters.The Double-sided Queen Microcurrent Beauty Device is equipped with 1.5 kHz oscillating current technology that adapts to skin
characteristics and dual cold and hot face plates technology allowing you to enjoy salon-level care at home.The Masked Queen Spectral Beauty Device adopts a rapid response self-sensing technology completely solving the problem of
dazzling strong light during use.The blood pressure monitor adopts a stable pressure measurement technology which can reduce the risk of measurement result
fluctuations caused by factors such as patients' psychology during the testing process ensuring the accuracy of the measurement data.The nebulizer adopts reflux liquid level detection technology lengthening the path between the electrode and the nebulization
membrane solving the problem in the industry where the liquid level detection of nebulizers is inaccurate due to the influence of water
film and ensuring the accuracy and reliability of liquid level detection for drug solutions with different conductivities.
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The blood oxygen monitor adopts photoelectric blood oxygen detection technology combined with volume pulse plethysmography
technology to enhance the accuracy of blood oxygen saturation and pulse rate sensing and achieve rapid analysis and measurement
results.(II) Adhere to independent innovation constantly make breakthroughs in world-leading technologies
The Company adheres to independent research and development of core technologies upholds the concept of "unlimited investment
based on demand" and has established a multi-level and high-level R&D platform system relying on national-level scientific research
platforms. It has formed a technological innovation system that is "enterprise-oriented market-driven and combines industry academia
and research" achieving remarkable results.
1. Major scientific research achievements have been certified as “World Leading” and core technologies
have been broken through.The project "120°C+ Industrial Large-capacity High-efficiency High-temperature Centrifugal Heat Pump" has been appraised
by the Appraisal Committee of China Machinery Industry Federation as being at the "World Leading" level. The Company has
independently developed three innovative technologies: 120°C+ high-speed direct-drive high-temperature heat pump centrifugal
compressors 60K+ temperature rise dual-compressor series and multi-stage compression gas injection high-efficiency industrial heat
pump units and high-temperature enhanced heat exchange. These innovations have addressed industry problems such as the difficulty
in cooling compressors in high-temperature environments the easy overheating and failure of bearings motors and lubricating oil the
poor stability of rotor high-speed operation under high-temperature and heavy load conditions the low system performance with a
120°C water outlet and large temperature rise and the poor performance of heat exchangers at high temperatures.
The project "COP7.0+ Dual-stage Permanent Magnet Variable Frequency Screw Chiller" has been appraised by the Appraisal
Committee of China Machinery Industry Federation as being at the "World Leading" level. The Company has applied the two-stage
screw compressor technology to water-cooled chillers achieving inter-stage gas injection to enhance system efficiency. At the same
time it is equipped with a new type of small pressure ratio same-tooth different-structure isochoric and highly efficient rotor profile
as well as precise and adaptive control of the two-stage pressure ratio without position identification significantly improving the
efficiency across all operating conditions. The COP under the national standard condition C reaches 7.0+ which can meet the usage
requirements of various public buildings rail transit data centers and other fields.The project "Research and Application of Key Technologies for Low-carbon Dynamic Operation of Inverter Air Conditioners"
2 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
has been appraised by the Appraisal Committee of China National Light Industry Council as being at the "World Leading" level. The
Company has launched air conditioners equipped with the "Key Technology for Low-carbon Dynamic Operation of Inverter Air
Conditioners". After third-party testing the product's dynamic energy efficiency optimization control technology based on artificial
intelligence algorithms and room load adaptive technology based on neural network self-learning have achieved a dynamic energy
efficiency improvement of over 15.8% throughout the year and a reduction in annual power consumption of 13.6%. It realizes the best
dynamic operation effect of air conditioners rapid temperature control comfort and energy saving and solves the problems of the lack
of dynamic operation energy efficiency evaluation methods for current air conditioners and inconsistent actual energy-saving effects.The project "Research and Application of Key Technologies for Fresh-keeping of Fruits Vegetables and Meats in Household
Refrigerators" has been appraised by the Appraisal Committee of China National Light Industry Council as being at the "World
Leading" level. The Company has developed a series of innovative technologies for preserving fruits and vegetables and meats
including self-balancing high-permeability moisture membranes and air-source vapor humidification for fruits and vegetables natural
convection overcooling for meat preservation and wide-frequency fully enclosed piston compressors for ultra-freezing storage of meats.These technologies have effectively addressed the challenges of excessive moisture condensation and bacterial growth or insufficient
humidity leading to dehydration in complex storage scenarios for fruits and vegetables with measured humidity reaching up to 95%.Additionally the Company has expanded the maximum operating frequency of R600a fully enclosed piston compressors to 120 Hz
enabling long-term stable operation of refrigerators at -38°C. This breakthrough has overcome the issues of rapid volume efficiency
decline and poor reliability of existing refrigerator compressors at ultra-high frequencies.The project "Key Technologies and Applications of High-Efficiency Intelligent Environmental Control System for Metro
Stations under All Operating Conditions" has been appraised by the Appraisal Committee of China Energy Conservation
Association as being at the "World Leading" level. The Company has established a comprehensive standard system for the entire life
cycle of efficient computer rooms for intelligent environmental control systems in subway stations adopting a full-process standard
digital implementation and delivery model to ensure the efficient construction and operation and maintenance of the environmental
control system. At the same time it has developed a full-condition efficient integrated environmental control system based on
permanent magnet variable frequency variable capacity screw chillers low-resistance distribution pipelines throughout the process
matrix EC fan walls and variable flow direct-drive cooling towers with permanent magnet synchronous motors solving the industry
problem of the inability to decouple flow and pressure ratio. It has also created a simulation system architecture with data model
accompaniment and invented a variable dynamic correction energy-saving control technology based on actual operation data of the air
conditioner system achieving global optimization of operating parameters for the environmental control system under all conditions
and ensuring a comprehensive improvement in the "quantity-quality-efficiency" of the environmental control system in subway stations.The project "Key Technologies and Applications of Magnetic Bearing Motor System" has been appraised by the Appraisal
Committee of the China Electrotechnical Society as being at the "World Leading" level. The Company has broken through the technical
barriers of the industry independently mastered the full set of core technologies of the magnetic bearing system and for the first time
achieved the industrialization of the full series of magnetic bearing compressors. It has also realized the serialization of industrial
products such as magnetic levitation air compressors and magnetic bearing high-speed motors solving the key technical problems of
magnetic bearing motor systems and their application in refrigeration and air compressors as well as the stability reliability and safety
issues of magnetic bearing technology in complex environments.
2. Multiple R&D projects have won important awards and the achievements in innovation are remarkable.
The project "Key Technologies and Industrialization of High-Performance Screw Refrigeration Compressors in Complex
Environments" won the First Prize of Science and Technology Progress of Guangdong Province. The Company in collaboration with
Xi'an Jiaotong University and Zhejiang University has gone through four generations of technological innovation and spent ten years
in research and development to break through the bottleneck. It has achieved significant breakthroughs in compressor theory rotor
profile flow layout and pressure ratio control. It has overcome the challenge of simultaneously enhancing the rated efficienccy and
variable working condition efficiency of compressors under complex climatic conditions. Moreover it has broken through the
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reliability guarantee technologies for compressors in extreme environments such as anti-impact long service life and low vibration.The first small pressure ratio dual-stage permanent magnet variable frequency adaptive variable pressure ratio screw compressor has
been created. The COP of the entire series under national standard conditions has exceeded 7.0 setting a new energy efficiency
benchmark for water chillers.The project "Research and Application of Key Technologies for Efficient Room Temperature Catalytic Formaldehyde
Removal" won the second prize of Science and Technology Progress of Guangdong Province. The Company has invented a highly
active and selective dual-metal room-temperature catalytic formaldehyde removal material which can rapidly effectively and
environmentally decompose formaldehyde into harmless carbon dioxide and water at room temperature. The formaldehyde
decomposition efficiency is as high as 99.9% making it suitable for high-quality air purification in enclosed and semi-enclosed spaces.The technological achievement has been applied to the Company's room-temperature catalytic formaldehyde removal series of air
purifiers and has won the Gold Award at the International Exhibition of Inventions of Geneva and the China Patent Excellence Award.The project "Research and Industrialization of Key Technologies for Servo Motors and Control of High-Performance Robots"
won the second prize of Science and Technology Progress of Guangdong Province. The Company has successfully developed an
integrated high-power density servo motor and a single-chip multi-core multi-axis integrated collaborative precision servo control
technology. It has also overcome a new high-anti-disturbance technology for complex multi-dimensional disturbances and developed
high-performance servo motors and drivers dedicated to robots achieving industrialization. These products have now been widely
applied by mainstream domestic robot manufacturers and have been extended to fields such as CNC machine tools and semiconductors.
3. Actively participating in the formulation of standards the Company has demonstrated its leading
innovative strength
The Company has taken the lead in or participated in formulating 873 international standards national standards etc. among which
64 are international standards. The Company actively participates in and assumes responsibilities for a total of 153 domestic and
international standardization organizations related to the home appliance industry among which 40 are international and foreign
standardization organizations. The Company is among the first batch of intellectual property demonstration units of enterprises and
institutions in the country and has won the China Trademark Gold Award. As of the end of 2024 Gree Electric Appliances's 7
subsidiaries have been selected as National Intellectual Property Demonstration Enterprise and 17 subsidiaries as National Intellectual
Property Advantage Enterprise. During the report period the Company filed 10112 patent applications including 6959 invention
patent applications and was granted 5413 invention patents. It won one Gold Award for China's Design Patent three China Patent
Excellence Awards and two provincial patent gold awards. It also received three Gold Awards four Silver Awards and one Bronze
Award at the Geneva and Nuremberg International Invention Exhibitions demonstrating the power of innovation of GREE to the world.
4. Continue to increase investment in research and development in new product areas and continuously
enhance product competitiveness
The Company has vigorously promoted the development of original products and achieved remarkable success in industrial design
winning 26 international design awards including 15 iF Industrie Forum Design Awards and 11 Red Dot Design Awards. By the end
of 2024 the Company had 4 national-level research platforms and 13 provincial and ministerial-level research platforms. It had
accumulated a total of 122 important awards at the national provincial and ministerial and industry levels. It also possessed 46 "World
Leading" technologies demonstrating the Company's strong innovation capabilities.During the report period the Company not only achieved fruitful results in technological research and development but also
demonstrated outstanding capabilities in standard setting and intellectual property protection fully reflecting the Company's
development strategy of adhering to the spirit of independent innovation and continuously breaking through world-leading technologies.(III) Continuously optimize the quality management system to achieve outstanding product quality for the
Company
2 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The Company has always adhered to the principle of quality first with the pursuit of perfect quality as its guiding orientation. It
implements strict quality control throughout the entire process from the design of products to procurement production packaging
transportation installation and service. By strictly controlling the quality at the source and building a sound system we ensure the high
stability and leading level of the Company's product quality.Continuously leading industry standards the Company has received numerous honors. During the report period the standards it led in
formulating namely Quality Management - Innovation Cycle Guide Based on Customer Demand (GB/T 38356-2019) and Evaluation
Method and Testing Method for Energy Performance of Refrigerating Systems - Part 1: Energy-Storage Air Conditioning Systems
(GB/T 37227.1-2018) won the second and third prizes respectively in the Guangdong Province Standardization Outstanding
Contribution Award for Standard Projects making it the home appliance enterprise that received the most awards this time. It undertook
the work of the Refrigeration Equipment Research and Review Base of the China WTO/TBT-SPS National Notification Enquiry Center
and was recognized as one of the six outstanding review bases nationwide by the General Administration of Customs. It was also
awarded the titles of "Guangdong Province Leading Standard Enterprise" and "Guangdong Province Standardization Outstanding
Contribution Award for Standard Organization" and was approved to establish the Guangdong Province Advanced Light Storage
Direct System Quality Standard Laboratory being rated as a "2024 Outstanding Contribution Unit in Standardization".During the report period the Company's products were recognized in both domestic and international markets for their outstanding
quality and leading edge. The Company's ACCL WCCL USHP PTAC PTHP and VRF have maintained a 100% pass rate in market
spot checks for three consecutive years and have once again been awarded the "Outstanding Performance" certificate by the AHRI.The Company has won one first prize two second prizes and nine third prizes in the China Quality Technology Award. According to
the evaluation data from the Customer Satisfaction Evaluation Center of China National Institute of Standardization since 2011
GREE's air conditioner products have maintained the industry's top customer satisfaction for 13 consecutive years.(IV) Focus on industrial transformation continuously promote diversified development and actively explore
new growth areas
Compressor
The Company has launched a broadband and high-efficiency rotor compressor. Its operating frequency range is 33% wider than that
of conventional mass-produced inverter compressors with energy efficiency improved by more than 10% and low-temperature heating
capacity increased by more than 10%. The maximum operating frequency reaches 160 Hz solving the problems of insufficient high-
frequency operation and low-temperature heating in air conditioners. It has been fully serialized and mass-produced for export in
residential air conditioners.The Company has launched a new generation of high-efficiency compressors for base station air conditioners. With innovative designs
such as low-power motors compact and efficient pump structures and low-friction bearing systems the energy efficiency ratio has
been increased by 5%.The Company has launched a new generation of ultra-efficient floor-standing air conditioner compressors featuring innovative designs
such as friction-reducing and energy-saving materials and low-power motors. The energy efficiency ratio has been increased by 5.3%
and they have been fully applied to residential floor-standing air conditioners.The compressor series products help further enhance the core competitiveness of the Company.Motor
In home appliance motors the Company has adopted new energy-saving materials optimized motor design and electromagnetic
schemes etc. to introduce high-performance noise-reducing motor vector controllers and shock-absorbing structures that block the
transmission of motor noise. It has also promoted the application of high-power-density 10-pole IPM DC brushless motors in home
appliances.In servo motors the Company has launched high-reliability ultra-high power density and ultra-compact servo motor products. In the
domestic robot market our market share has rapidly increased.
2 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
In new energy motors the Company has successfully developed the industry's first high-speed reluctance main drive motor for logistics
vehicles with a higher efficiency than rare earth motors. The Company has also completed the development of the Company's first
main drive motor platform for integrated electric drive axles in buses. Compared with traditional direct drive motors the new product
reduces costs by 15%. Additionally the Company has completed the research and development of new energy generators for extending
the range of ships oil pump motors for heavy trucks and generators for extending the range of mining trucks expanding the application
of new energy motors to the fields of electric ships and construction machinery.In industrial motors the Company has tackled the industry's bottlenecks such as magnetic circuit saturation easy demagnetization
and large torque pulsation at deep weak magnetic fields in high-power new reluctance motors through technological breakthroughs.The Company has launched a series of high-efficiency high-power new reluctance motors with power ranging from 0.75 to 315 kW
exceeding the industry's highest efficiency IE5. The related products have been widely applied in equipment in industries such as metal
wire drawing ball mills and rubber open mills breaking free from the constraints of rare earth resources and ensuring the sustainable
development of the industry.Wire and cable
The Company has launched large-sized enameled flat wires which have been successfully applied in transformers inverters wind
power photovoltaic and other fields. It has also introduced a series of products including 155 180 and 200 grades covering varieties
such as EI/AI/SB UE/SB EI/SB with self-adhesive temperatures ranging from 150 to 230°C. Moreover it has developed new types
of wires for the automotive industry and passed the IATF16949 system certification. The continuous breakthroughs in new products
and new technologies help the Company enhance the competitiveness of its products in emerging fields.Capacitor
The Company has continuously achieved technological breakthroughs in reducing the cost of electrolyte new energy products of film
capacitors and intelligent power modules. In terms of reducing the cost of electrolyte by applying low-cost electrolyte and high-
tolerance ripple electrolyte technology the Company has launched large-capacity and high-performance products for the home
appliance sector which can operate stably at 125°C with a 4.0 A ripple for 500 hours. In the field of film capacitors for new energy
the Company has introduced new products that feature high energy density high voltage resistance and low loss and can work stably
at 110°C with a broader range of applications. Regarding intelligent power modules through the technological upgrade of bonding
wires the packaging cost of the products has been significantly reduced further enhancing their competitiveness in the market.Cooling parts
In recent years the Company has accelerated its diversified layout acquired DunAn Environment optimized the supply chain and
improved its industrial chain layout. Focusing on the main business of refrigeration DunAn Environment manufactures a series of
products aimed at the entire HVAC&R industry to fully support segmented fields such as residential air conditioners commercial air
conditioners air source heat pumps freezing and refrigeration and new energy vehicle thermal management. It has a state recognized
enterprise technology center a national postdoctoral workstation an academician workstation a CNAS laboratory and a national full
performance testing center of central air conditioner. Therefore it has formed a product development platform and core technology
system with independent intellectual property rights. Relying on the R&D platform and following the orientation of "green efficient
comfortable and intelligent" technology development DunAn Environment makes doubled efforts in research and development and
pursues progress in key new products.During the report period the market share of DunAn Environment's cut-off valve ranked first in the world that of four-way valve
ranked second in the world and that of electronic expansion valve ranked second in the world.Semiconductor
The Company offers a range of products including MCU power semiconductors and AIoT SoC series. Among them the 32-bit series
MCU chips have been widely applied in batch in terminal products such as residential air conditioners commercial VRF wire
controllers and remote controls with an annual usage exceeding 40 million units. They can be widely used in consumer electronics
2 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
wearable devices home appliances health care equipment commercial large-scale units industrial sensors high-performance motor
control and other fields. The power semiconductors such as FRD IGBT IPM and PIM have been applied in batch in inverter air
conditioners with an annual usage exceeding 30 million units. They can be widely used in home appliances intelligent equipment
new energy and other fields. The AIoT SoC intelligent chips with innovative embedded architecture integrate high-performance AI
computing power and the real-time performance of MCUs and have been applied in batch in air conditioner products further improving
the energy efficiency of air conditioners. At the same time they can be widely used in machine vision intelligent voice HMI intelligent
home appliances and other fields. By the end of 2024 the Company had cumulatively applied for 738 patents related to integrated
circuits in the semiconductor field and obtained 255 patents. It has successively won the Excellent Award of the 22nd China Patent
Award the Silver Award of the 7th Guangdong Province Patent Award the Excellent Award of the 10th Guangdong Province Patent
Award and the Excellent Market Performance Product Award of the 16th "China Chip". A total of 9 products have been awarded the
title of Guangdong Province Famous and High-tech Products and 2 products have been awarded the title of Zhuhai City Innovative
Products.Recycling
The Company actively practices the producer responsibility extension system and innovatively proposes the circular development
model of "green design - green manufacturing - green recycling" to ensure the green efficiency of the whole industrial chain.In accordance with the requirements of the "Action Plan for Promoting Large-scale Equipment Upgrading and Consumer Goods Trade-
in" issued by the State Council the Company has comprehensively integrated its 30 regional sales networks 20000 sales stores and
30000 service outlets to provide users with an integrated "delivery disassembly and installation" service. All old devices are 100%
traceable through the system and enter standardized recycling and dismantling factories to achieve resource recycling and regeneration.Through its unremitting efforts in the construction of the recycling system and the closure of the circular resource chain Gree Recycling
Resources Co. Ltd. has been approved as a national pilot for circular economy standardization and a pilot enterprise for the construction
of the recycling system of the Ministry of Commerce. By the end of 2024 the Company's recycling resource system has processed
more than 64.77 million units (sets) of various types of waste electrical and electronic products and has transformed about 880000
tons of recycled copper iron aluminum and plastic.Smart device
The Company is actively making strategic plans in CNC machine tools industrial robots and automation providing intelligent
equipment products for many leading enterprises both at home and abroad. By the end of 2024 the Company had established 2
provincial-level scientific research platforms in the field of intelligent equipment including 1 provincial-level enterprise technology
center and 1 provincial-level manufacturing innovation center. It had cumulatively applied for 5096 patents and obtained 1966 patents
among which 3642 were invention patents and 1081 were granted.The Company has launched three new products for processing components of new energy vehicles in the new energy vehicle market.These include high-speed five-axis swivel heads high-rigidity and high-torque electric spindles and servo motors for machine tools
which are core components of CNC machine tools. Based on its expertise in processing battery trays for new energy vehicles the
Company has expanded its services to offer one-stop solutions for processing die-cast aluminum and large-scale integrated die-cast
parts for new energy vehicles increasing processing efficiency and stability by 50%.For the new energy photovoltaic and lithium battery sectors the Company has launched a series of six-axis robot products such as
GR35 and GR50 as well as SCARA robot products like GRS10 and GRS20. For the shipbuilding and steel structure welding markets
the Company has introduced new products such as the GRH6 arc welding robot and intelligent welding workstations. Based on different
customer demands the Company provides intelligent robot automation application solutions for the manufacturing of new energy
vehicle components and the welding of ships and steel structures. Guided by the demands of industrial development the Company has
established stable cooperative relationships with key national universities through multi-level and multi-form collaborations. We are
committed to promoting resource sharing mutual empowerment enhancing academic and research exchanges and intensifying
research and breakthroughs in standards processes and key technologies in the field of intelligent manufacturing equipment.
3 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
During the report period the Company successfully completed the acceptance of multiple provincial and municipal-level scientific and
technological projects including the "Guangdong Provincial Key Laboratory of High-Performance Servo Systems" the Zhuhai
Industrial Core Technology Breakthrough Project "Research and Development of Intelligent Logistics and Warehousing System" and
the Zhuhai Industry-University-Research Project "Research and Product Application Development of Key Technologies for High-
Precision Intelligent Measurement System of Industrial CT". These achievements were highly recognized by industry review experts.Precision mold
Gree Precision Mold adheres to a high-standard quality control concept and closely revolves around the "4+1" business model that is
home appliance molds automobile molds precision molds and motor molds + mold products making it maintain a leading position.Gree Precision Mold has set up a supporting mold center in all production bases of the Company 4 R&D platforms 1 national-level
skilled master studio 3 municipal-level skilled master studio 1 municipal-level skill workstation 1 municipal-level model worker
innovation studio and 12 technical manufacturing service centers providing customers with reliable and cost-effective one-stop
solutions.During the report period Gree Precision Mold intensified its research on the waste-free layout stamping process for straight bar stator
cores in the motor field significantly reducing material consumption and achieving a 20% increase in material utilization rate which
notably lowered the cost of straight bar cores. Based on the NSGA-II algorithm it enhanced the efficiency research of deep rib CNC
high-speed processing through the optimization of existing parameters increasing processing efficiency by over 20%. The optimization
of high-efficiency precision electrical discharge machining (EDM) processes continued to deepen achieving an electrode wear
prediction accuracy of 99% and a 20% increase in the processing efficiency of parting surfaces. In the field of aluminum sheet precision
forming technology it successfully overcame the technical challenge of "shear bright band" enabling the shear bright band of product
shapes to reach over 80%.(V) Strengthen digital operation promote the integration of dual lines and achieve efficiency improvement
throughout the entire channel chain
1. Digital operation optimizing channel efficiency
The Company centering on its business strategy planning continuously optimizes the efficiency of the entire channel chain through
meticulous management and digital operation methods. It implements a scientific inventory strategy to reduce stock and increase
inventory turnover rate; adjusts the layout of the warehousing network to enhance logistics efficiency and shorten delivery time;
predicts market demand through data analysis to lower the risk of inventory stagnation; and uses digital tools to monitor product
circulation to improve product turnover rate.
2. Expand online marketing channels to facilitate the integrated development of both online and offline
business
The Company actively expands its online marketing channels strengthens its layout across the entire network and all platforms and
enhances its brand influence. For the young consumer group it adopts various marketing methods such as live-streaming sales
community marketing cooperation with private domain influencers and precise advertising placement to increase brand appeal. It has
entered multiple platforms such as JD.com Tmall and Douyin and opened the GREE Dong Mingzhu Store on mainstream e-commerce
platforms to broaden its online marketing channels. It also deepens the integration of online and offline promotes offline merchants to
participate in expanding online channels achieves sales growth and creates an integrated online and offline shopping experience.
3. Deepen the user service system and enhance the consumer experience
The Company is committed to building an integrated online and offline user service system to enhance the overall consumer experience.It promotes the digital transformation of offline stores to offer immersive shopping experiences. Through system integration it
improves the efficiency of after-sales processing to ensure that order fulfillment is both efficient and accurate. It utilizes digital means
to enhance supply chain management capabilities optimize the layout of intelligent warehouses and increase the efficiency of business
3 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
personnel.
4. Launch innovative brands and expand the business of immediate retail
The Company has launched a new channel strategy brand "Dong Mingzhu Healthy Home" which reconfigures the retail value chain
through innovative means such as scene-based experiences data visualization and intelligent interactive services providing consumers
with a more convenient and intelligent shopping experience. At the same time relying on local physical stores it deeply integrates
online traffic with the offline supply chain to meet consumers' immediate demands for goods further expanding new traffic channels
and empowering terminal stores.The Company will establish a nationwide dual-channel sales network based on its existing 30 regions over 30000 offline outlets and
flagship stores on third-party e-commerce platforms providing an integrated dual-channel service that combines offline experience
online ordering and unified national delivery and installation to achieve a win-win situation for the enterprise distributors and
consumers.(VI) Launch differentiated products in the global market and continuously enhance brand competitiveness
The Company adheres to a market and user-centered approach continuously making efforts in overseas markets. It has been developing
its own brand in various aspects such as products quality and services and is constantly enhancing the global influence of the GREE
brand. By the end of 2024 GREE products have covered over 190 countries and regions worldwide with its own brand accounting for
nearly 70% of total export sales.In response to the diverse demands of overseas markets the Company has continuously launched innovative products. During the
report period in extreme temperature regions around the world it introduced ultra-high temperature refrigeration and ultra-low
temperature heating air conditioners achieving stable operation in environments with the highest temperature of 68°C and the lowest
of -40°C. For the severe cold climate in the northeastern United States and northern Canada it launched a new dual heat source product
ensuring stable heating in extremely cold weather. The single category of ultra-low temperature heating household units in North
America became a bestseller. According to the market demand and local aesthetic characteristics of Brazil it customized high-end
products for local customers with sales increasing by 75% year-on-year. To meet the demands of high-end residences in North America
it launched refined and differentiated patio units catering to the diverse needs of overseas consumers.Strengthening self-owned brands and channel expansion. In the North American market the three self-owned brands of GREE TOSOT
and KINGHOME are developing together. The Company actively explores local traditional HVAC channels large-scale installation
company channels and large-scale retail channels and has opened several new GREE stores in the New York area of the United States.In Eastern Europe the number of GREE stores has exceeded 200. In Latin America a 1200-square-meter GREE flagship store was
newly built in Bolivia. These measures not only enhance the popularity of self-owned brands but also lay a solid foundation for
subsequent business development. During the report period the Company has cooperated with international sports events or
organizations in different regions and countries such as the 2024 Summer Olympics in Paris the Saudi King's Cup football tournament
and the national league the Spanish Real Betis football club the Italian Napoli football club and the Bolivian football powerhouse
Blooming club to strengthen brand promotion and product marketing.Winning multiple landmark projects the Company has been widely recognized in overseas markets. During the report period the
Company successively won bids for several large-scale commercial engineering projects such as the Morowali Industrial Park in
Indonesia the largest shopping complex in Iraq - Karbala Shopping Resort the Ferrari Museum office building in Greece the St.George Hospital in Plovdiv Bulgaria the BYD Camaari factory in Brazil the headquarters building of Band in Brazil the sports
venues for the Asian Youth Games in Uzbekistan the National Stadium in Ethiopia and the Prime Minister's Office in Ethiopia. The
implementation of these large-scale projects in public facilities industrial parks star hotels and chain restaurants has established the
international image of the GREE brand.(VII) Building the Internet of Everything leading a Smart and Healthy Life
GREE Smart Home adheres to independent innovation R&D and manufacturing. It uses core technologies to create a zero-carbon
3 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
healthy home continuously upgrading the five smart living systems of whole-house energy air health security and lighting. It has
launched the Smart Comfortable Home whole-house smart solution based on the characteristics of different living spaces such as living
rooms bedrooms and kitchens to create a green efficient convenient and safe home Internet of Things space.In terms of smart products the Company offers a rich and professional range of whole-house smart products including air system
products such as heating and cooling fresh air and environmental appliances; health system products such as water usage diet and
personal care; energy system products for light storage and air; lighting system products like lights and curtains; and security system
products including door locks cameras and safety sensor kits. The Company will continue to expand its product matrix and ecosystem
partnerships to provide users with more high-quality and personalized product options.In the field of intelligent health technology the Company has made in-depth layouts in full-house intelligent systems full-house
communication architectures intelligent voice interaction and home appliance intelligence. It has independently created the IoT
platform intelligent decision-making system G-Voice voice interaction system intelligent vision system G-Learning comfort and
energy-saving algorithm AI energy-saving modules and user behavior habit learning energy-saving algorithm among other intelligent
IoT technologies. According to the "2024 Top 100 Global Smart Home Invention Patents Ranking" released by the intellectual property
industry media IPRdaily GREE ranked among the top globally with 3097 patents once again receiving professional recognition for
its R&D strength.(VIII) Accelerate the transformation and upgrading of intelligent manufacturing and build an industry-
leading smart factory
The Company promotes efficiency improvement value creation and business goal enhancement through digitalization builds a lean
manufacturing system centered on dual effectiveness and promotes systematic optimization and comprehensive upgrading throughout
the entire product life cycle the entire production process and the entire supply chain to drive the transformation of intelligent
manufacturing in the enterprise.Establish a lean manufacturing system to empower efficient production management. The Company aims to build a digital factory
based on lean manufacturing. By enhancing flexible automation capabilities integrating internal and external factory data
consolidating information system platforms and promoting intelligent applications it optimizes production operations. It establishes
a group-wide lean smart manufacturing system that fully connects machines materials personnel control systems and information
systems to improve quality increase efficiency reduce costs and lower inventory in the production process. This approach enables
rapid resolution of on-site production issues and enhances management efficiency. During the report period the Company's project
"Construction and Implementation of Lean Manufacturing System for Large Home Appliance Enterprise Group" won the "First Prize"
of the 31st National Modernization Innovation Achievements in Enterprise Management.Build a leading intelligent factory. Based on the lean manufacturing system the Company continuously applies information
technologies such as industrial internet cloud platforms artificial intelligence big data and 5G to every aspect of the smart factory
achieving interconnection and interoperability among production equipment instruments and meters sensors control systems and
management systems as well as in-depth application in scenarios such as operation monitoring intelligent production quality
inspection warehouse storage and logistics distribution. During the report period the Company's Jinwan factory was selected into the
first batch of "Outstanding Intelligent Factory" list by the MIIT of the People's Republic of China.(IX) Build an efficient talent cultivation and incentive system to support the steady progress of the group
The Company adheres to the strategic guideline of "strengthening the enterprise with talent" attaches great importance to internal talent
cultivation and team building and promotes the overall development of the enterprise.Build a high ground for skills and facilitate the enhancement of talents' skills. During the report period the Company integrated
policies at all levels and internal and external teaching resources and venues to establish a national-level high-skilled talent training
base covering multiple professional fields. It organized 31 skill competitions in three major directions: frontline operation skills
production quality and lean production and equipment operation and debugging. It trained nearly 1500 special workers and was
awarded the qualification of the chain leader of the "industry-education-evaluation" skill ecosystem in Guangdong Province. In 2024
3 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
a total of 850 skilled workers of the Company obtained vocational skill level certificates and 3376 skilled workers were honored with
the title of "craftsman" further consolidating the Company's talent foundation.Accelerate the construction of a learning organization and continuously enhance the professional capabilities of all employees.During the report period the Company focused on three directions: general capabilities professional knowledge and quality courses.It systematically organized and carried out open classes for all employees and key business training in technology research and
development production management product planning and sales expansion. It conducted nearly 6000 specialized training sessions
with an average of over 46 hours per person significantly enhancing the professional quality and technical proficiency of its staff.Diversified incentive policies sharing the dividends of development and stabilizing the talent echelon. During the report period
the Company established a diverse bonus system including the Science and Technology Progress Award Management Innovation
Award Rationalization Suggestion Award Performance Award and Year-end Bonus and organized honor selection activities such as
GREE Advanced Pioneers Workers' Vanguard Advanced Work Teams Excellent Teams in Quality Activities Lean Improvement
Projects and Most Beautiful Veterans to motivate employees to be proactive and innovative. The Company consistently launched and
implemented the employee stock ownership plan to improve the benefit sharing and risk sharing mechanism between the Company
and core employees fully mobilize the enthusiasm and cohesion of employees and promote the long-term sustainable and healthy
development of the Company.
2. Revenue and cost
(1) Composition of operating revenue
Currency: CNY
20242023
Proportion Proportion
Year-on-year
Item to to
Amount Amount Increase/Decrease
Operating Operating
Revenue Revenue
Total Operating
189163654064.64100%203979266387.09100%-7.26%
Revenue
By Industries
Manufacturing
169715353002.4789.72%174565470852.3885.58%-2.78%
Industry
Other Business 19448301062.17 10.28% 29413795534.71 14.42% -33.88%
By Products
Home Appliances 148559931838.58 78.54% 155218482437.25 76.09% -4.29%
Industrial Products and
17246185690.029.12%17109354623.758.39%0.80%
Green Energy
Smart Device 424131758.64 0.22% 669842288.11 0.33% -36.68%
Other Main Business 3485103715.23 1.84% 1567791503.27 0.77% 122.29%
Other Business 19448301062.17 10.28% 29413795534.71 14.42% -33.88%
By Regions
Domestic Sales
141512822056.5974.81%149661934832.9473.37%-5.45%
Main Business
Export sales Main
28202530945.8814.91%24903536019.4412.21%13.25%
Business
Other Business 19448301062.17 10.28% 29413795534.71 14.42% -33.88%
(2) Industries products regions and sales models that account for more than 10% of the Company's operating revenue or
operating profits
□Applicable □ Not applicable
3 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Currency: CNY
Increase or
Increase or Increase or
Decrease in
Decrease in Decrease in
Gross
Operating Operating
Gross Margin over
Item Operating Revenue Operating Cost Revenue over Costs over the
Margin the same
the same same Period of
Period of
Period of the the Previous
the Previous
Previous Year Year
Year
By Industries
Manufacturing
169715353002.47114476752530.2732.55%-2.78%-1.17%-1.09%
Industry
Other Business 19448301062.17 19019367093.09 2.21% -33.88% -32.36% -2.20%
By Products
Home
148559931838.5896691946304.3934.91%-4.29%-3.34%-0.65%
Appliances
Other Business 19448301062.17 19019367093.09 2.21% -33.88% -32.36% -2.20%
By Regions
Domestic Sales
141512822056.5993045292807.8434.25%-5.45%-3.93%-1.04%
Main Business
Export Sales
28202530945.8821431459722.4324.01%13.25%12.86%0.26%
Main Business
Other Business 19448301062.17 19019367093.09 2.21% -33.88% -32.36% -2.20%
In case the statistical caliber of the Company's main business data is adjusted during the report period the Company's main business
data will be adjusted according to the caliber at the end of the report period in the last year.□ Applicable □Not Applicable
(3) Whether the Company's revenue from physical sales is greater than that from labor services
□Yes □No
Description of a year-on-year change of 30% or more in relevant data
□ Applicable □Not Applicable
(4) Performance of significant sales contracts and purchase contracts entered into by the Company as of the report period
□ Applicable □Not Applicable
(5) Composition of operating costs
Industry classification
Currency: CNY
20242023
Industry Proportion Proportion Year-on-year
Item
Classification to to Amount Amount Increase/Decrease
Operating Operating
Cost Cost
Raw
93363351952.2286.05%93909272081.7286.13%-0.58%
Materials
Manufacturing
of Home Labor Costs
4879947485.744.50%4839203936.924.44%0.84%
Appliances Depreciation 1759556442.08 1.62% 1950717636.85 1.79% -9.80%
Energy 1131053297.69 1.04% 1060398535.08 0.97% 6.66%
3 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(6) Whether there was a change in the combination scope during the report period
□Yes □No
1. Business combination not under common control
(1) Business combinations not under common control that occurred during the period
Currency: CNY
Name of the Time Point of Equity Acquisition Equity Acquisition Equity Acquisition
Acquisition Date
Acquiree Equity Acquisition Cost Proportion Method
Shanghai Datro
Automotive
2024/07/01 244597668.00 65.95% Purchase by cash 2024/07/01
Technology Co.Ltd.
(Continued)
Currency: CNY
Operating Income of Net Profit of the Cash Flow of the
Basis for Determining the Acquiree from the Acquiree from the Acquiree from the
Name of the Acquiree
the Acquisition Date Acquisition Date to the Acquisition Date to the Acquisition Date to the
End of the Period End of the Period End of the Period
Shanghai Datro
Automotive Acquisition of control 50610255.50 -10890056.09 3852261.61
Technology Co. Ltd.On June 30 2024 the Company's wholly-owned subsidiary DunAn Environment acquired 62.95% of the equity of Shanghai Datro
Automotive Technology Co. Ltd. (hereinafter referred to as "Datro") through a cash transaction valued at CNY214.5977 million and
also increased its capital in Datro by CNY30 million. After the transaction was completed DunAn Environment held 65.95% of the
equity in Datro. DunAn Environment has completed the equity transfer and industrial and commercial change registration procedures.Datro has been included in the consolidated scope of DunAn Environment.
(2) Cost and goodwill of business combination
Currency: CNY
Cost of Business Combination Amount
Total cost of business combination 244597668.00
Including: Cash 244597668.00
Less: Fair value of the identifiable net assets acquired 62667044.92
Goodwill 181930623.08
DunAn Environment currently holds 65.95% of the equity in Datro. The enterprise merger cost is CNY244597668.00. The fair value
share of identifiable net assets attributable to the parent company shareholders obtained is CNY62667044.92. The corresponding fair
value of identifiable net assets was assessed by Zhonglian Appraisal Consulting (Shanghai) Co. Ltd. and an assessment report with
the number ZLHP Zi [2024] No. 20 was issued. The difference between the enterprise merger cost and the fair value share of identifiable
net assets attributable to the parent company shareholders of Datro forms goodwill of CNY181930623.08.
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Currency: CNY
Shanghai Datro Automotive Technology Co. Ltd.Item Fair Value on the Acquisition Book Value on the
Date Acquisition Date
3 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Assets:
Monetary Funds 5152822.52 5152822.52
Notes Receivable 715882.91 715882.91
Receivables 36803450.59 36803450.59
Receivables Financing 5824589.99 5824589.99
Advance Payments 1041919.28 1041919.28
Other Receivables 31512194.62 31512194.62
Inventory 20200520.76 17127908.27
Other Current Assets 2080550.17 2080550.17
Fixed Assets 34644958.89 32761348.70
Construction in Progress 7780042.42 7780019.35
Usufruct Assets 5801258.04 5801258.04
Intangible Assets 23614360.78 394064.49
Long-term Unamortized Expenses 2896776.52 2896776.52
Deferred Income Tax Assets 10437280.23 10437280.23
Other Non-current Assets 37924.20 37924.20
Liabilities:
Short-term Borrowings 39000000.00 39000000.00
Notes Payable 1487740.22 1487740.22
Payables 27451609.43 27451609.43
Contract Liabilities 18956.40 18956.40
Payroll Payable 2627612.49 2627612.49
Taxes and Dues Payable 12974.49 12974.49
Other Payables 1245.36 1245.36
Non-current Liabilities Due within One Year 4367779.95 4367779.95
Other Current Liabilities 2464.33 2464.33
Long-term Borrowings 7000000.00 7000000.00
Lease Liabilities 3744872.39 3744872.39
Deferred Income 518000.00 518000.00
Deferred Income Tax Liabilities 7285908.39 241772.88
Net Assets 95025368.47 73892961.94
Less: Minority Shareholders' Equity 32358323.55 25162253.08
Net Assets Acquired 62667044.92 48730708.86
2. Business combination under the same control
3 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
None.
3. Reverse purchase
None.
3 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
4. Disposal of subsidiaries
Currency: CNY
The Determination Amount of
Difference Methods and Other
Between the Book Value Fair Value Main Comprehensive
Disposal Price of the of the Assumptions Income
Disposal Proportion
Disposal and the Share Remaining Remaining of the Fair Related to
Ratio of Basis for of Gains or Losses
Disposal Methods of the Equity at the Equity at the Value of the Equity
the Determining Remaining Arising from
Time Point Price of the of the Subsidiaries' Consolidated Consolidated Remaining Investment of
Time the Time Equity on Remeasurement
Name of Subsidiary of Losing Time Point Time Net Assets at Financial Financial Equity on the the Original
Point of Point of the Date of Remaining
Control of Losing Point of the Level of Statement Statement Date of Subsidiary
Losing Losing of Losing Equity at Fair
Control Losing Consolidated Level on the Level on the Losing Transferred
Control Control Control Value
Control Statements Date of Date of Control at the into Investment
(%)(%)
Corresponding Losing Losing Consolidated Profits and
to the Control Control Financial Losses or
Disposal Statement Retained
Investment Level Earnings
Shenyang Water and Heat
Business
Source Development Co. 2024/01/25 1000001.00 56.00 Sale -230233.67
registration
Ltd.Gree (Chengdu) Precision Business
2024/05/27 100.00 Cancelled
Mold Co. Ltd. registration
Gree Robot (Luoyang) Co. Business
2024/05/31 100.00 Cancelled
Ltd. registration
Jilin Songliang Modern
Business
Agricultural Development 2024/07/10 2000000.00 70.00 Sale 2354547.19
registration
Co. Ltd.It was It was merged
merged and and sold
sold together together with
Jilin Songliang Tianfuyu with its its parent
Business
Agricultural Development 2024/07/10 parent 100.00 Sale company Jilin
registration
Co. Ltd. company Songliang
Jilin Modern
Songliang Agricultural
Modern Development
392024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Agricultural Co. Ltd.Development
Co. Ltd.Gelan Environmental
Business
Protection Technology 2024/08/23 100.00 Cancelled
registration
(Shaoguan) Co. Ltd.Datro (Weihai) Auto Parts Business
2024/09/13 65.95 Cancelled
Co. Ltd. registration
Gree HVAC Equipment Business
2024/10/16 100.00 Cancelled
(Chengdu) Co. Ltd. registration
Gree CNC Machine Tool
Business
Research Institute Co. Ltd. 2024/10/22 100.00 Cancelled
registration
of Zhuhai
4 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
5. Change of combination scope for other reasons
Newly established entity in the current period:
Currency: CNY
Net Profit from the
Date of Net Assets at the End of
Name Combination Date to the
Establishment the Period
End of the Period
DunAn International (Hong Kong) Company
2024/02/06
Limited
DunAn Hong Kong Industrial Co. Ltd. 2024/02/16
Zhuhai Gree Technology Management Co.
2024/03/11932242.59-67757.41
Ltd.Zhuhai Hengqin Gree Materials Supply Co.
2024/03/29127406890.5627442815.56
Ltd.Zhuhai Gree Medical Equipment Co. Ltd. 2024/04/22 62774.57 62774.57
Henan Gree Refrigeration and Washing
2024/05/15178759.00178759.00
Machine Sales Co. Ltd.Shanghai Gree Green Energy Technology Co.
2024/06/06-128016.30-149016.30
Ltd.Hebei Gree Refrigeration and Washing
2024/06/13389714.82389714.82
Machine Sales Co. Ltd.Shanghai Gree Auto Technology Co. Ltd. 2024/10/11 3996764.92 -3235.08
Gree Green Resources Recycling (Linyi) Co.
2024/09/12
Ltd.Gree Digital Technology (Jieyang) Co. Ltd. 2024/12/3 277073.26 277073.26
Gree Digital Technology (Hunan) Co. Ltd. 2024/12/31
Gree Digital Technology (Hebei) Co. Ltd. 2024/12/31
Gree Digital Technology (Henan) Co. Ltd. 2024/12/31
(7) Significant changes or adjustments in the Company's business products or services during the report period
□ Applicable □Not Applicable
(8) Main sales customers and suppliers
Main sales customers of the Company
Total sales amount of the top five customers (CNY) 32115902791.82
Proportion of total sales amount of top five customers to the
16.90%
total annual sales
Proportion of sales amount of related parties in the sales
2.83%
amount of top five customers to the total annual sales
Information of top five customers
S/N Customer Name Sales Amount (CNY) Proportion to Total Annual
4 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Sales
1 First 9386594497.87 4.94%
2 Second 9003671846.32 4.74%
3 Third 5377436945.43 2.83%
4 Fourth 4619372742.09 2.43%
5 Fifth 3728826760.11 1.96%
Total -- 32115902791.82 16.90%
Other description of major customers
□ Applicable □Not Applicable
Main suppliers of the Company
Total purchase amount of the top five suppliers (CNY) 32207232224.97
Proportion of total purchase amount of top five customers to
25.94%
the total annual purchases
Proportion of total purchase amount of related parties in the
purchase amount of top five suppliers to the total annual 0.00%
purchases
Information of top five suppliers
Proportion to Total Annual
S/N Supplier Name Purchase Amount (CNY)
Purchases
1 First 8174120015.24 6.58%
2 Second 7753189937.39 6.24%
3 Third 6885837560.54 5.55%
4 Fourth 5598466112.44 4.51%
5 Fifth 3795618599.36 3.06%
Total -- 32207232224.97 25.94%
Other description of major suppliers
□ Applicable □Not Applicable
3. Expenses
Currency: CNY
Year-on-year Significant Changes
Item 2024 2023
Increase/Decrease Description
It was mainly affected
by the changes in
channel marketing
Sales Expenses 9753022469.17 14801702209.41 -34.11%
expenses and the
changes in the product
sales structure.Administrative
6057608713.946542161037.82-7.41%
Expenses
Financial Expenses -3300417558.96 -3526521851.75 6.41%
R&D Expenses 6904084981.92 6762136262.23 2.10%
4. R&D investment
4 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
□Applicable □ Not applicable
Expected Impact on
Name of Major R&D Objectives to be the Future
Project Purpose Project Progress
Project Achieved Development of the
Company
It has addressed the
This technology has
pain points of "high
been appraised as
power consumptionbeing at the “Worldand discomfort"Leading” level. It is
during air conditioner
the core highlight
usage caused by the
technology of GREE's
"single control
air conditioner
strategy of air It has been applied to
The annual power products forming the
conditioners and the residential air
consumption of the development route and
Key energy-saving diversity of usage conditioner products
product is reduced by product line of AI
technologies for environments and user such as Satin Time AI
more than 13.6% energy-saving
dynamic operation of habits" achieving self- Energy-saving Prince
achieving energy technology for
variable frequency air optimization self- Cool Summer-II etc.conservation and residential air
conditioner AI adaptation and self- The products have
carbon reduction in air conditioners and
matching of air been launched on the
conditioner operation. further promoting the
conditioner output and market.application of AI
room load in various
algorithms and
actual usage scenarios
operation energy-
of users ensuring the
saving technology in
rapid comfortable and
GREE's air
energy-efficient
conditioners and other
operation of air
electrical products.conditioners.Under the same noise
level the air volume is
increased by 15%
reaching 2000 m3/h.The APF reaches 4.86
Solving the industry
which is 15% higher
problems such as the
than the primary
low efficiency of the
energy efficiency
fan the obvious Promoting the
standard. The air
blowing sensation and development of
Research and delivery range is
the stuffy and stale air products towards
application of key The PureFresh series expanded by 110%
in the room when greater efficiency
technologies for high of products have been ensuring that cold air
using traditional air comfort and health
efficiency comfort launched on the does not blow directly
conditioners and will have a broad
and health of room air market. on people. The fresh
promoting the market prospect and
conditioner air volume is
transformation of the significant social
increased by 43%
air conditioner benefits.compared to the
industry towards high
previous model
efficiency comfort
reaching 344 m3/h in
and health.actual measurement. It
only takes 18 minutes
to completely replace
the air in the entire
house.In response to the Equipped with Promote the
Research on high-
energy conservation The product has stepwise heat development of
efficiency light
and environmental entered mass exchange parallel products towards high
storage air conditioner
protection policies in production. compression efficiency
technology
various global refrigeration environmental
4 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
markets the Company technology and high- friendliness and
has developed a efficiency utilization reliability and enrich
residential split technology of the product layout in
photovoltaic storage renewable energy different climate
air conditioner (solar energy) it zones.product. comprehensively
enhances the high-
temperature
refrigeration
performance and
achieves near-zero
carbon emissions.Develop R290
refrigerant active
safety control
technology and full-
Developing the
Focusing on chain explosion-proof
industry's first split air
enhancing the safe and leak-proof design
conditioner product
application and energy technology propose a
that complies with the
Research on active efficiency of R290 air high-reliability system
new IEC standard of
safety technology and conditioners we aim solution for R290
R290 will promote the
industrialization to create a new The product has refrigerant achieve
green development of
application of r290 generation of entered mass reliable operation over
the industry which is
variable frequency environmentally production. a wide temperature
conducive to the
heat pump air friendly heat pump air range with SEER
expansion of the
conditioners conditioners comprehensive energy
global market and the
providing consumers efficiency reaching
enhancement of the
with reliable and safe A+++ level meeting
brand's international
usage experiences. the application
influence.requirements of
multiple scenarios
including cooling and
heating.Solve the industry- Compared with This technology has
wide problems such as traditional side air been appraised asthe accumulation of supply when heating being at the “Worldhot air at the top of the the room temperature Leading” level. It
room and large rises 53% faster and adopts an industry-
Research and vertical temperature The product has been power consumption is first reversible air
development of central differences when developed and reduced by 42.7%. supply design
air conditioner without traditional central air launched in the first The vertical enhancing the
blowing air on people conditioners are quarter of 2025. temperature product's
heating and the distribution in the competitiveness and
discomfort caused by room is uniform. promoting
cold air blowing When cooling the technological
directly on people cold air does not blow innovation in the
when they are cooling. on people. industry.Solve the industry's For the first time the This technology has
difficult problems indoor unit capacity is been appraised assuch as real-time accurately measured being at the “Worldmeasurement online with the real- Leading” level. It is
regulation and time power the first to create an
R&D of GMV 9 The basic model has
optimization of the measurement accuracy all-scenario AI
Zhiyue series VRF been completed.performance of of the unit reaching energy-saving
traditional VRF over 95%. This technology leading
achieve further enables the VRF to the VRF industry into
improvement in the achieve adaptive high- the era of real-time
energy efficiency of efficiency energy energy efficiency.
4 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
multi-split operation saving with an
and promote the green average energy-saving
transformation of the rate of more than 25%.industry.Establish a replicable
standard system for
Research and develop
the intelligent
a highly efficient and
environmental control
intelligent
system of metro
environmental control The project was
stations achieving an
system for metro appraised as being at
average annual energy
Key technologies and stations under all the “World Leading”
efficiency of 5.74 for
applications of high- operating conditions to level for ensuring a
the entire line's
efficiency intelligent address the challenges The product has been comprehensive
refrigeration rooms
environmental control of traditional station launched on the improvement in the
and 3.70 for the
system for metro environmental control market. "quantity quality and
environmental control
stations under all systems such as the efficiency" of the
system. The energy
operating conditions difficulty in load environmental control
efficiency of the
adjustment low system in metro
Xin'an Park station's
efficiency in condition stations.refrigeration room as
deviation and high
a demonstration
operational power
station reaches 7.17
consumption.during its annual
operation.Develop a medical
refrigerator with a
temperature
uniformity of 2°C to
8°C a temperature
uniformity ≤2°C a
fluctuation ≤2.5°C an
actual/nominal volume It can meet the
Develop 2-8°C
exceeding 85% and a requirements of the
medical refrigerators
load line volume loss combination of
and -40°C medical
of less than 50 L. freezing and
Research on medical freezers improve the The product has
Develop a medical refrigeration for
refrigeration and layout of medical entered mass
low-temperature reference and improve
freezing technology refrigeration and production.preservation box for - the product layout of
freezing products and
40°C equipped with the series of medical
enhance
enhanced heat ultra-low temperature
competitiveness.exchange refrigeration preservation boxes.technology achieving
powerful cooling at -
40°C with a cooling
time of ≤ 240 minutes
and a temperature
uniformity inside the
box of ≤4°C.Aiming at the The brand-new live It has solved the
problems of long water rinse technology problems of long
washing time of integrates the rinse washing time and
Fully automatic drum traditional washing The TrueSoft series of and spin-dry secondary pollution of
washing machine machines and the products have been processes shortening drum washing
based on live water potential for secondary launched on the the washing time by machines won the
rinsing technology pollution caused by market. 40%. It achieves 360° bronze award at the
tub washing a new all-round rinsing International
type of quick-cleaning without dead corners Exhibition of
drum washing through the design of Inventions of Geneva
4 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
machine with live large-angle spray and enhanced the
water spray has been heads. market
developed. competitiveness of the
product.Developing a cooked
water heating system
that enables the
Develop a hot water
production of cooked
heating system to The independently
water by boiling hot
address key user developed high flow
water while solving
experience issues such cooked water
the problem of low
as the fact that the hot technology can be
initial water
water setting is not applied and promoted
Research on temperature during
boiled in the instant The product has been to products such as
instantaneous high- cold start. It achieves
heating mode and to launched on the pipeline machines
flow hot water the first cup of "no
optimize the initial market. desktop water
technology cold water" and breaks
water temperature purifiers and
through the industry
output which is far integrated kitchen heat
limit of 420 mL/min
lower than the set and water purifiers to
of cooked water flow
value during the cold enhance product
rate under the power
start of the heating competitiveness.limit of 2100 W
element.comprehensively
improving the user
experience.Through the single-
By independently The independently
row uniform-
developing the single- developed high-
temperature heat
row uniform- efficiency anti-
exchange solution
temperature heat corrosion heat
without heat
exchange technology exchange solution can
exchanger tubes the
High-efficiency anti- without coil we aim be applied and
The product has been heat exchange
corrosion heat to address the industry promoted to all
launched on the capacity of the unit
exchange series gas pain point that the platform products of
market. has been increased by
water heaters waterway of gas water the Company's gas
more than 30% and
heaters is prone to water heaters
the corrosion
corrosion due to water enhancing user
resistance of the
quality thereby experience and
product has been
enhancing product improving product
enhanced by more
reliability. competitiveness.than four times.Independently develop
Overcoming the
domestic servo drivers
reliability design
specifically for robots
Develop the first technology of drivers
achieve self-
domestically produced the localization rate of
sufficiency in core
servo driver for the components is over
Development of components of robots
2005 model robot to The product has been 95% the volume is
domestic products for ensure that the overall
ensure that the core launched on the reduced by 50% and
robot-specific servo performance of the
components of the market. it has full dimensional
drives driver is at the leading
Company's robots are operation status
level in the industry
independently monitoring function.and enhance the
developed. The product is fully
market
applied to our
competitiveness of
industrial robots.GREE's robots.To address the For the first time a The independently
High-efficiency and industry bottleneck The product has been series of high- developed high-power
high-power new type problems such as launched on the efficiency high-power new type reluctance
reluctance motor magnetic circuit market. novel reluctance motor motor which exceeds
saturation easy products have been the industry's highest
4 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
demagnetization and developed with power efficiency IE5 has
large torque pulsation ratings spanning from been widely applied in
in deep weak magnetic 0.75 kW to 315 kW. equipment for
field of high-power These motors meet industries such as wire
reluctance motors a and surpass the drawing ball mills
new type of high- industry's highest and rubber open mills
power reluctance energy efficiency enhancing the market
motor is developed to standard IE5 and competitiveness of the
meet the demands of offer advantages such Company's motor
low-voltage industrial as high efficiency industry.equipment and realize high reliability low
a series of high- noise and excellent
efficiency and cost-effectiveness.environmentally
friendly reluctance
motor products.Achieve a major
The weight of the
breakthrough in the
fluorine pump is
core component of the
reduced by more than
Develop a brand-new fluorine pump for the
50% compared with
rotary four-cylinder Company's data center
the competing
volumetric liquid air conditioner reduce
products and its
refrigerant pump to the cost of the fluorine
efficiency is increased
R&D of a rotary four- address the problems pump enhance the
The product has been by more than 30%.cylinder volumetric of low efficiency poor market
launched on the The annual
liquid refrigerant reliability and poor competitiveness of the
market. comprehensive energy
pump adaptability to data center air
efficiency of the
working conditions of conditioner and
computer room air
the existing centrifugal promote its application
conditioner system is
pumps in computer in the fields of new
improved by more
room air conditioners. energy vehicles
than 10% achieving
charging piles and
remarkable energy-
battery thermal
saving effects.management.Develop a new
patented technology of
sales valve check
valve gas injection
enthalpy-increasing
high-efficiency Independently develop
compressor achieving low-temperature heat-
Develop a new
High-efficiency continuous and injection compressors
generation of low-
compressor with low- efficient gas injection achieving higher
temperature jet gas-
temperature vapor The product has been across the entire energy efficiency for
increasing high-
injection enthalpy- completed and is temperature range household VRF and
efficiency compressors
enhancement awaiting market with the lowest greater heating
to enhance the
technology for the launch. evaporation capacity at ultra-low
competitiveness of
new generation of temperature extended temperatures thereby
existing household
residential VRF to -35°C and enhancing the market
VRF products.improving the competitiveness of
compressor energy VRF products.efficiency by more
than 5%. The VRF
APF energy efficiency
can reach as high as
6.25.
Development of high- For the body parts of The product has been It features dual five- Independently develop
speed dual five-axis automobiles such as launched on the axis collaborative high-speed dual five-
4 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
gantry vertical the front compartment market. processing axis gantry machining
machining center for battery box and rear capabilities adopts centers become one of
integrated die-casting floor that are produced full closed-loop linear the first units in the
body through integrated die- motor direct drive industry to master this
casting dedicated control with a running technology
high-speed processing speed reaching 110 independently and
equipment is m/min and the promote its application
developed to complete product processing on a large scale and
all feature processing cycle is <650s. contribute to the
in a single clamping of development of
the integrated die-cast China's automotive
body parts industry.significantly
enhancing production
efficiency.Company R&D personnel
2024 2023 Change Ratio
Number of R&D Personnel
15800152823.39%
(persons)
Proportion of Number of
21.70%21.05%0.65%
R&D Personnel
Educational Structure of R&D Personnel
Bachelor 8945 8773 1.96%
Master 1809 1407 28.57%
Age Composition of R&D Personnel
Under 30 7686 7667 0.25%
3040608759152.91%
Over 40 2027 1700 19.24%
R&D investment of the Company
Item 2024 2023 Change Ratio
Amount of R&D Investment
7139948094.037006497352.611.90%
(CNY)
Proportion of R&D
Investment to the Operating 3.77% 3.43% 0.34%
Revenue
Capitalization Amount of
235863112.11244361090.38-3.48%
R&D Investment (CNY)
Proportion of Capitalized
R&D Investment to R&D 3.30% 3.49% -0.19%
Investment
Reasons and influences of significant changes in the composition of R&D personnel in the Company
□ Applicable □Not Applicable
Reasons for significant changes in the proportion of total R&D investment to the operating revenue compared with the previous
year
□ Applicable □Not Applicable
Reasons for significant changes in capitalization rate of R&D investment and its reasonableness
□ Applicable □Not Applicable
4 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
5. Cash flow
Currency: CNY
Year-on-year
Item 2024 2023
Increase/Decrease
Subtotal of Cash Inflows from
179524300805.87228996916924.84-21.60%
Operating Activities
Subtotal of Cash Outflows from
150155050235.21172598490570.67-13.00%
Operating Activities
Net Cash Flows from Operating
29369250570.6656398426354.17-47.93%
Activities
Subtotal of Cash Inflows from
34854865752.7549223300660.90-29.19%
Investment Activities
Subtotal of Cash Outflows from
50412775368.3290240520005.31-44.14%
Investment Activities
Net Cash Flows from
-15557909615.57-41017219344.4162.07%
Investment Activities
Subtotal of Cash Inflows from
74558134239.7088825770725.94-16.06%
Financing Activities
Subtotal of Cash Outflows from
98261347147.86105183587284.78-6.58%
Financing Activities
Net Cash Flows from Financing
-23703212908.16-16357816558.84-44.90%
Activities
Net Increase in Cash and Cash
-9773238106.29-840460509.20-1062.84%
Equivalents
Description of the main factors affecting the significant year-on-year changes in relevant data
□Applicable □ Not applicable
1. The net cash flow from operating activities decreased by 47.93% year-on-year mainly due to changes in channel models and
market conditions among other factors.
2. The net cash flows from investing activities increased by 62.07% year-on-year mainly due to the decrease in cash paid for
investments.
3. The net cash flows from financing activities decreased by 44.90% year-on-year mainly due to the decline in cash received
from other financing activities-related sources.Reasons for significant differences between net cash flows from operating activities and net profit for the year du ring the report
period
□ Applicable □Not Applicable
V. Analysis of non-main business
□ Applicable □Not Applicable
VI. Analysis of assets and liabilities
1. Significant changes in the composition of assets
Currency: CNY
4 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
At the End of 2024 At the Beginning of 2024 Proportion
Significant
Proportion Proportion Increase Item Changes
Amount to Total Amount to Total or Description
Assets Assets Decrease
Monetary funds 113900461797.94 30.95% 124104987289.62 33.72% -2.77%
Accounts
16831887388.064.57%16099477117.564.37%0.20%
Receivable
Contract Assets 592399551.89 0.16% 838812133.65 0.23% -0.07%
Inventory 27910910515.55 7.58% 32579140028.70 8.85% -1.27%
Investment Real
464658386.200.13%633262161.100.17%-0.04%
Estate
Long-term
Equity 4355712251.54 1.18% 4488967031.20 1.22% -0.04%
Investments
Fixed Assets 36996168856.84 10.05% 34034829116.47 9.25% 0.80%
Construction in
3076380868.800.84%6563911378.941.78%-0.94%
Progress
Usufruct Assets 789763790.64 0.21% 842250508.12 0.23% -0.02%
The main reason
for the increase
in short-term
borrowings in
Short-term this period is to
39009527273.2210.60%26443476388.527.18%3.42%
Borrowings meet the daily
production and
operation
requirements of
the Company.Contract
12491059928.533.39%13588771210.883.69%-0.30%
Liabilities
The main reason
for the decrease
in long-term
borrowings in
Long-term
18229817922.13 4.95% 39035742535.09 10.61% -5.66% this period is the
Borrowings
transfer to non-
current liabilities
due within one
year.Lease Liabilities 711291189.69 0.19% 767007951.92 0.21% -0.02%
Overseas assets account for a relatively high proportion.□ Applicable □Not Applicable
5 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Assets and liabilities measured at fair value
□Applicable □ Not applicable
Currency: CNY
Profits and Cumulative
Impairment
Losses From Fair Value Purchase Amount
Beginning Accrued in Sales Amount in
Item Changes in Fair Changes in the Current Other Changes Ending Amount
Amount the Current the Current Period
Value in the Included in Period
Period
Current Period Equity
Financial assets
1. Trading
Financial
Assets
(excluding 9614423403.40 -5658203.37 34092466372.39 27152972939.93 16548258632.49
derivative
financial
assets)
2.
Derivative -
108919513.22
Financial 108919513.22
Assets
3. Other
-
Debt 16363841665.96 17793161.63 33692789.92 1262229794.52 7016555220.76
10627309401.35
Investments
4. Other
Equity -
3864865509.3768354002.03910032151.8016401203.863039588563.46
Instrument 814907198.40
Investments
5 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
5.
Receivables 10176089668.41 -8182565.61 -15271343.64 567180818.03 9600726284.77
Financing
6. Others 2366316637.89 13981641.99 -4007667.72 5700000000.00 2180335007.45 11039899904.81 16939863177.24
Subtotal of
-
Financial 42494456398.25 -22631476.55 41054696166.91 30810520917.21 428991707.32 53144991878.72
800493419.84
Assets
-
Total above 42494456398.25 -22631476.55 41054696166.91 30810520917.21 428991707.32 53144991878.72
800493419.84
Financial -
4079919.912023359.67170740734.87
Liabilities 164637455.29
522024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Other changes
Other changes mainly refer to the reclassification of financial statements differences in foreign currency translation and interest
income.Whether there was any significant change in the measurement attributes of the Company's major assets during the report period
□ Yes □No
3. Restricted rights to assets at the end of the report period
Currency: CNY
End of Period
Item
Book Value Reason for Restriction
Required deposit reserve earnest money
Monetary Funds 36145202061.32
etc.Accounts Receivable 18433952.94 Pledged
Receivables Financing 3723514867.14 Pledged
Contract Assets 1725716.05 Pledged
Other Current Assets 3170000000.00 Pledged
Non-current Assets Due within One
8000000000.00 Pledged
Year
Other Debt Investments 2290000000.00 Pledged
Long-term Equity Investments 326352154.19 Pledged
Investment Real Estate 3985469.17 Pledged
Fixed Assets 2927927740.11 Pledged
Construction in Progress 4169396.70 Pledged
Intangible Assets 920002049.00 Pledged
Other Non-current Assets 13710000000.00 Pledged
Total 71241313406.62
VII. Analysis of investments
1. Overview
□Applicable □ Not applicable
Investment in the Same Period of Last
Investment in the Report Period (CNY) Change Range
Year (CNY)
42462983876.6984267244633.47-49.61%
2. Significant equity investments obtained during the report period
□ Applicable □Not Applicable
3. Significant non-equity investments in progress during the report period
□ Applicable □Not Applicable
5 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
4. Financial assets investments
(1) Securities investments
□Applicable □ Not applicable
Currency: CNY
Profits and
Cumulative Fair
Accounting Book Value at the Losses From Profits and
Securities Securities Securities Initial Investment Value Changes Purchase Amount in Sales Amount in the Book Value at the Accounting Capital
Measurement Beginning of the Changes in Fair Losses During
Type Code Abbreviation Cost Included in the Current Period Current Period End of the Period Items Source
Model Period Value in the the Report Period
Equity
Current Period
Anxin Lixiang
Trading
Asset Measured at Own
Others - 5013875167.10 1854962886.80 26146274.96 10000000000.00 6838405652.84 127995929.44 5042703508.92 financial
Management fair value funds
assets
Plan
BankComm
Yangtze River Trading
Measured at Own
Others - Delta No.1 Asset 2500000000.00 52509692.22 2500000000.00 52509692.22 2552509692.22 financial
fair value funds
Management assets
Plan
Trading
Zunyu No.1 Fund Measured at Own
Others - 2152863789.13 2883110552.52 9935694.55 2415350682.37 3153607583.33 98333571.33 2154789346.11 financial
Trust Plan fair value funds
assets
Xingyun No.112
Trading
Asset Measured at Own
Others - 1500000000.00 30583676.80 1500000000.00 30583676.80 1530583676.80 financial
Management fair value funds
assets
Plan
Stocks
listed on
domestic Other equity
San'an Measured at Own
and 600703 2000000000.00 1586483387.45 -192439862.16 -605956474.71 3436426.11 1394043525.29 instrument
Optoelectronics fair value funds
overseas investments
stock
exchanges
Stocks
listed on
domestic Other equity
Measured at Own
and 600745 WINGTECH 759332324.16 1517194078.45 -198377802.65 433816279.20 125667672.44 4482374.38 1193148603.36 instrument
fair value funds
overseas investments
stock
exchanges
542024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Xingyun No.230
Trading
Asset Measured at Own
Others - 1000000000.00 5828285.02 1000000000.00 5828285.02 1005828285.02 financial
Management fair value funds
assets
Plan
Trading
Xingqi Exclusive Measured at Own
Others - 500000000.00 19522442.61 500000000.00 19522442.61 519522442.61 financial
No.1 fair value funds
assets
Stocks
listed on
domestic Other equity
Measured at Own
and 600619 Highly 363282097.68 626491486.09 495357248.70 -23695744.78 783163963.16 960805.37 339586352.90 instrument
fair value funds
overseas investments
stock
exchanges
16 coupon- Measured at Other debt Own
Bonds 160017 288405500.00 306780382.20 3039207.92 9805588.17 12579424.81 311139682.20
bearing bond 17 fair value investments funds
Other securities investments held at the end of the
1699419241.35--1408343614.19-32673339.86-599191724.082032265690.022302029819.9744365826.231119876492.98----
period
Total 17777178119.42 -- 10183366387.70 219431518.11 -785222076.20 19947616372.39 13202874691.74 400598454.32 17163731608.41 -- --
Announcement disclosure date of board's meeting
April 30 2024
for approval of securities investment
Announcement disclosure date of shareholders'
meeting for approval of securities investment (if June 29 2024
any)
5 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(2) Derivative investments
□Applicable □ Not applicable
1) Derivative investment for speculative purposes during the report period
□Applicable □ Not applicable
Unit: CNY10000
Proportion of the
Profits and Investment
Cumulative Fair
Initial Losses From Purchase Amount Sales Amount Investment Amount at the
Beginning Value Changes
Derivatives Investments Type Investment Changes in Fair During the During the Amount at the End of the Period
Amount Included in
Amount Value in the Report Period Report Period End of the Period to Net Assets at
Equity
Current Period the End of the
Report Period
Futures Hedging Contracts 858.06 858.06 1612.96 -264.68 2471.02 0.02%
Forward Financial Contracts 10483.96 10483.96 -27355.70 -17074.07 -0.12%
Total 11342.02 11342.02 -25742.74 -264.68 -14603.05 -0.10%
Description of whether there
was any significant change in
the accounting policies for
hedging business and specific
No change
principles for financial
accounting during the report
period as compared to the
previous report period
Statement of actual profits and The actual profits and losses of futures hedging contracts during the report period was CNY42.8305 million and that of forward financial contracts
losses during the report period during the report period was CNY150.9706 million.Description of the hedging
-
effect
Capital source of derivative
Own funds
investments
562024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
1. Legal risks: The Company needs to abide by laws and regulations to carry out hedging and foreign exchange fund trading bus iness and clearly
stipulate the rights and obligations between the Company and its agencies. Control measures: In addition to studying laws regulations and market
rules the designated responsible departments of the Company shall strictly review contracts clarify rights and obligations and strengthen compliance
inspection to ensure that the Company's derivative investments and position meet the requirements of laws regulations and the Company's internal
Risk analysis and description management system.of control measures for 2. Operational risks: Risks caused by imperfect internal processes staff operations systems etc. Control measures: The Company has formulated
derivative positions during the corresponding management systems that clarified the division of responsibilities and approval process of hedging and foreign exchange fund trading
report period (including but business and a relatively perfect supervision mechanism to effectively reduce operational risks through risk control of business decision-making and
not limited to market risks trading processes.liquidity risks credit risks 3. Market risks: The uncertainty of commodity price changes and exchange rate fluctuations in the foreign exchange market lea ds to greater market
operational risks legal risks risks in futures business and foreign exchange fund trading business. Control measures: The Company's futures hedging busines s and foreign
etc.) exchange fund trading business shall not engage in speculative transactions by adhering to the princip le of prudent and steady operation. For hedging
business it is strictly stipulated that the number of hedging shall not exceed the actual number of spot transactions and t he futures positions shall not
exceed the spot amount of hedging and a stop loss mechanism shall be adopted. With regard to foreign exchange fund business the Company
effectively prevents market risks by evaluating and judging the trend of foreign exchange rate and determining the foreign e xchange settlement rate
through contracts.Changes in the market price or
fair value of the product during
the report period of the
invested derivatives with the
analysis of the fair value of the The fair value change income of derivatives during the report period was CNY-257427400.derivatives disclosing the
specific methodology used and
the setting of relevant
assumptions and parameters
Involvement in lawsuits (if
Not applicable
applicable)
Announcement disclosure date
of Board of Directors for
April 30 2024
approval of derivative
investment (if any)
Announcement disclosure date
of shareholder's meeting for
June 29 2024
approval of derivative
investment (if any)
572024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2) Derivative investment for speculative purposes during the report period
□ Applicable □Not Applicable
The Company has no derivative investment for speculative purposes during the report period.
5. Use of placements
□ Applicable □Not Applicable
The Company had no use of placements during the report period.VIII. Significant assets and equity sales
1. Significant assets sales
□ Applicable □Not Applicable
The Company did not sell any significant assets during the report period.
2. Significant equity sales
□ Applicable □Not Applicable
IX. Analysis of main holding and joint-stock companies
□Applicable Not applicable
During the report period the Company had no significant information on its major subsidiaries or associated companies that
should be disclosed.X. Structured entities controlled by the Company
□ Applicable □Not Applicable
XI. Prospects for the future development of the Company
(I) Development vision of the Company
The Company adheres to its corporate vision of "To create a world-class enterprise achieving GREE's century-old brand." Guided
by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era it remains true to its original aspiration keeps its
mission firmly in mind sticks to the real economy and adheres to the road of self-reliance and independent innovation and
development. Through innovation responsibility and green development it contributes to the progress of human society striving
to become a trusted global brand and create a better future for all.(II) 2025 business plan
1. Focus on product-driven all-domain growth and multi-dimensional layout to facilitate marketing
breakthroughs
Deepen terminal construction actively respond to market demands accelerate the renewal and upgrading of national full -category
specialty stores and enhance brand image and market competitiveness. Build a precise product matrix and layout the market across
5 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
all price segments. Improve the brand ecosystem and explore new market areas. Focus on industries such as intelligent equipme nt
industrial robots industrial products and molds and continuously explore the market potential of industrial products. At the same
time we will continuously enhance the competitiveness of our products optimize the overseas market layout and facilitate market
breakthroughs.
2. Firmly commit to scientific and technological innovation and continuously promote breakthroughs in
key core technologies
Focus on original technological innovation comprehensively layout national and provincial -level innovation platforms introduce
integrated product management systems strengthen demand management and full life cycle management and enhance the success
rate of product development. Accelerate the digital transformation of laboratories and fully implement the new model of interaction
among testing standards and R&D. Continuously improve the high-value patent cultivation system drive industrial upgrading
with technology and promote breakthroughs in core technologies.
3. Strengthen quality management innovation and continuously leverage the advantages of the full-process
quality control system
Continue to strengthen the concept of quality accelerate the construction of smart laboratories and the research and promoti on of
digital detection technologies and promote management innovation in the mode of interaction among testing standards and R&D.Focus on the independent research and development of originality detection technology and realize the application of origina l
technologies for automatic leak detection and automatic process inspection. Establish a comprehensive quality control system
covering the entire process in new fields continuously improve product quality and help the "Perfect Quality Management Model"
serve every consumer.
4. Promote the digital upgrade of the entire process and continuously deepen cost reduction and efficiency
improvement
Accelerate the optimization of 5G private networks consolidate the digital information foundation continuously improve the
production supply and sales collaborative management platform break down data barriers across multiple processes achieve full
digitalization of business processes and promote cost reduction and efficiency improvement throughout the entire value chain .Continuously promote lean design of new products to achieve cost reduction from the source. Refine the analysis of long-term
materials shorten the material turnover period reduce inventory risks and enhance operational efficiency and cost control
capabilities.
5. Focus on Party building leadership to promote high-quality development of enterprises
Adhering to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era we will advance the
implementation of the 16-character spirit from the Party Congress namely "remember the entrustment rally our forces be grateful
and forge ahead and grow together." Through conducting a diverse range of learning and educational activities we will strengthen
the ideals and convictions of Party members reinforce the leading role of Party building work and continue to promote the
standardized construction of Party organizations and the implementation of mechanisms for managing and supervising Party
members. This will provide a solid organizational guarantee for the high-quality development of GREE.
6. Implement the strategy of strengthening the enterprise with talents and forge a high-quality talent team
Continue to optimize the talent management mechanism strengthen the orientation of promoting competent people and demoting
the mediocre and stimulate the internal drive of the enterprise. Continue to deepen our recruitment channels optimize the
recruitment process and build a comprehensive and refined recruitment system. For key groups such as middle and senior
management core employees and skilled talents customized and in-depth talent development programs are carried out to fully
5 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
empower business operations and provide high-quality talent supply for the stable development of the Company.
7. Comprehensively deepen audit and supervision and improve the risk control system
Focus on the key areas of the Company expand the scope of auditing deeply explore potential problems and ensure the
transparency and standardization of the Company's business operations. Strengthen financial management apply information
technology means and enhance financial security and risk management capabilities. Strengthen the network defense system ensure
the efficient and controlled operation of information systems build a comprehensive risk management and internal control sys tem
enhance risk control promote the rational and orderly development of various businesses and facilitate long-term healthy growth.(III) Main risks to future development
1. Risk of macroeconomic fluctuations
The company's main products are home appliances and industrial equipment. At present the domestic and international political
economy is undergoing profound changes and fluctuations in the economic cycle affect consumers' disposable income consumer
confidence and industrial capital expenditure thereby affecting customers' demand and purchasing power for the company's
products and the company's business development and strategic decisions.
2. Risk of factor price fluctuations
The main raw materials for the company's products are copper steel aluminum and plastic of various grades which account for a
large proportion of the costs. Starting from 2020 the prices of copper aluminum and other raw materials have risen rapidly and
remained high so their cost pressure may have an impact on the company's operating results. As an indust ry leader with strong
centralized purchasing advantages the Company will reduce the negative impact of raw material price fluctuations on its operations
through hedging advance stocking and material generalization.
3. Risk of intensified market competition
The home appliances market is highly competitive with both domestic and international brands. It is expected that home appliances
will maintain intense competition in the future and the evolution of the market competition is uncertain. If the Company fails to
consolidate and expand its original competitive advantages it will face the risk of losing market share. The Company will in crease
its investment in research and development win praise from users through continuous independent innovation and hi gh product
quality and establish a lasting brand influence.
4. Risk of overseas markets
The overseas market is influenced by the local political and economic situation legal system and regulatory system and significant
changes in the above factors (if any) will pose risks to the company's overseas business. The Company has taken various measures
to mitigate the impacts such as enhancing the competitiveness of export products strengthening the cooperation with custome rs
and distributors and expanding overseas markets.
5. Risk of exchange rate fluctuations
With the internationalization of the Chinese yuan (CNY) the cross-border flow of capital in China is increasing which will
intensify the fluctuation of the CNY exchange rate. If the Company fails to take effective measures to avoid the risk of the
appreciation of CNY its profitability will be affected by exchange rate fluctuations. The Company will continuously enhance the
bargaining power of its export products as well as strengthen the analysis of exchange rate fluctuations and use foreign exchange
financial instruments to hedge and reduce exchange losses.In the face of complex and ever-changing internal and external environment and risks the Company will continuously improve its
corporate governance structure enhance its standard operation and strengthen its internal control system in accordance with the
requirements of the Company Law Securities Law and relevant laws and regulations of the China Securities Regulatory
Commission to effectively prevent and control risks ensuring the Company's sustainable stable and sound development.
6 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The Company along with the Board of Directors sincerely thanks all shareholders global customers partners and sectors of
society for their trust and support in Gree Electric Appliances. With great importance to the interests of all shareholders the Board
of Directors will create long-term value for shareholders through stable operations.XII. Activities such as reception of research communication and interviews during the
reporting period
□Applicable □ Not applicable
Main
Contents
Type of
Time of Place of Method of Reception Discussed Index of Basic Information of
Reception
Reception Reception Reception Object and Research
Object
Material
Provided
For details please refer to
Gree Electric Appliances:
000651 Gree Management
Quanjing: Network
Company Information on Investor
https://rs.p5w.net platform for Company
2024/06/14 Others operation Relations 20240614 disclosed
/html/143602.sht online investors
s by the Company on June 14
ml communication
2024 on CNINFO
(http://www.cninfo.com.cn/ne
w/index)
XIII. Formulation and implementation of the market value management system and the
valuation enhancement plan
Has the Company formulated a market value management system
□Yes □No
Has the Company disclosed the valuation enhancement plan
□ Yes □No
To effectively promote the company's enhancement of investment value and shareholder return strengthen and standardize the
company's market value management and safeguard the legitimate rights and interests of the Company and its investors the
Company according to relevant regulations such as the Regulatory Guidelines for Listed Companies No. 10 — Market Value
Management issued by the China Securities Regulatory Commission conducts the market value management based on the
company's quality improvement and actual situation. The Company held the 24th Meeting of the 12th Board of Directors on
December 31 2024 to deliberate and approve the Proposal on Authorizing the Company's Management to Formulate the Market
Value Management System.XIV. Implementation of the action plan for "Double Improvement of Quality and Return"
Has the Company disclosed an action plan for "Double Improvement of Quality and Return"
□Yes □No
For details please refer to the Announcement on Promoting the Implementation of the Action Plan for "Double Improvement of
Quality and Return" (Announcement No.: 2024-005) disclosed by the Company on February 19 2024 on the designated
information disclosure media and CNINFO (http://www.cninfo.com.cn/new/index).
6 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section IV Corporate Governance
I. Basic status of corporate governance
The Company in strict accordance with the Company Law of the People's Republic of China Securities Law of the People's
Republic of China and other relevant national laws and regulations as well as the Self-regulatory Guidelines of Shenzhen Stock
Exchange for Listed Companies No. 1 — Standardized Operation of Companies Listed on the Main Board has established a
normative corporate governance structure and rules of procedure for the general meeting of shareholders Board of Directors and
Board of Supervisors clarified the responsibilities and authorities for decision-making execution and supervision to form an
effective division of responsibilities and balance mechanism and continuously promoted the standardized operation to safegua rd
the interests of investors and the Company.The company's governance complied with the Company Law of the People's Republic of China and the requirements of the China
Securities Regulatory Commission regarding the governance of listed companies.Are there any significant differences between the actual state of corporate governance and the laws administrative regulatio ns
and regulations on governance of listed companies issued by the China Securities Regulatory Commission
□ Yes □No
There are no significant differences between the actual state of corporate governance and the laws administrative regulation s
and regulations on governance of listed companies issued by the China Securities Regulatory Commission.II. Independence of the Company from the controlling shareholder and the actual controller
in terms of assets personnel finance organization and business of the Company
The Company has a sound corporate governance structure an independent and complete business operation and independent
management capability completely independent of the largest shareholder Zhuhai Mingjun in assets personnel finance
organization and business.III. Horizontal competition
□ Applicable □Not Applicable
IV. Annual general meeting of shareholders and extraordinary general meeting of
shareholders during the reporting period
1. General meetings of shareholders during the reporting period
Participation
Session of Type of Date of Date of
Ratio of Meeting Resolutions
Meeting Meeting Convening Disclosure
Investors
For details please refer to the
2023 Annual Announcement on the Resolutions of
Annual general
General 2023 Annual General Meeting of
meeting of 47.41% 2024/06/28 2024/06/29
Meeting of Shareholders (Announcement No.:
shareholders
Shareholders 2024-020) on CNINFO
(http://www.cninfo.com.cn/new/index)
6 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
and the designated media
For details please refer to the
The 1st Announcement on the Resolutions of
Extraordinary the 1st Extraordinary General
Extraordinary
General Meeting of Shareholders in 2024
general meeting 48.45% 2024/08/19 2024/08/20
Meeting of (Announcement No.: 2024-027) on
of shareholders
Shareholders in CNINFO
2024 (http://www.cninfo.com.cn/new/index)
and the designated media
2. Convening of an extraordinary general meeting of shareholders requested by the preferred
shareholders with restored voting rights
□ Applicable □Not Applicable
6 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
V. Directors supervisors and senior executives
1. Basic information
Number of
Number of Shares
Number of Number of Reasons for
Shares Held at Decreased Other
Employment Shares Increased Shares Held at Increase or
Name Gender Age Position Term Start Date Term End Date the Beginning in the Increase/Decrease
Status in the Current the End of the Decrease of
of the Period Current (Shares)
Period (Shares) Period (Shares) Shares
(Shares) Period
(Shares)
Chairperson Incumbent 2012/05/25 2028/04/21 Share ownership
Dong in employee
Female 70 54488492 46310000 100798492
Mingzhu President Resigned 2001/04/24 2025/04/22 stock ownership
plan
Director
Share ownership
Secretary of
Incumbent 2019/01/16 2028/04/21 in employee
Zhang Wei Male 48 the party 183328 300000 483328
stock ownership
committee
plan
President Incumbent 2025/04/22 2028/04/21
Zhang
Male 64 Director Incumbent 2012/05/25 2028/04/21
Jundu
Director Incumbent 2025/04/22 2028/04/21 Share ownership
in employee
Shu Lizhi Male 55 99719 115000 214719
Vice president Resigned 2020/12/26 2025/04/22 stock ownership
plan
Share ownership
Zhong in employee
Male 39 Director Incumbent 2025/04/22 2028/04/21 71167 100000 171167
Chengbao stock ownership
plan
Zhang Independent
Male 57 Incumbent 2022/02/28 2028/04/21
Qiusheng director
Cheng Independent
Male 65 Incumbent 2025/04/22 2028/04/21
Ming director
Independent
Li Hongqi Male 62 Incumbent 2025/04/22 2028/04/21
director
Weng Independent
Male 61 Incumbent 2025/04/22 2028/04/21
Guomin director
Chairman of
Cheng Min Female 44 the Board of Incumbent 2020/11/02 2028/04/21
Supervisors
6 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Duan
Male 61 Supervisor Incumbent 2019/01/16 2028/04/21 603825 603825
Xiufeng
Share ownership
Employee in employee
Shao Liguo Male 46 Incumbent 2025/04/22 2028/04/21 102287 100000 202287
supervisor stock ownership
plan
Share ownership
Fang in employee
Male 47 Vice president Incumbent 2021/11/19 2028/04/21 559290 250000 809290
Xiangjian stock ownership
plan
Share ownership
in employee
Liu Hua Male 48 Vice president Incumbent 2025/04/22 2028/04/21 181948 190000 371948
stock ownership
plan
Share ownership
in employee
Li Shaobin Male 48 Vice president Incumbent 2025/04/22 2028/04/21 218434 170000 388434
stock ownership
plan
Share ownership
Hu in employee
Male 47 Vice president Incumbent 2025/04/22 2028/04/21 196033 300000 496033
Yusheng stock ownership
plan
Wang Kai Male 45 Vice president Incumbent 2025/04/22 2028/04/21 467149 300000 767149
Share ownership
Liao Chief financial in employee
Male 51 Incumbent 2020/08/06 2028/04/21 77663 230000 307663
Jianxiong officer stock ownership
plan
Secretary of
Zhang
Male 41 the Board of Incumbent 2025/01/10 2028/04/21 46081 46081
Zhouhu
Directors
Guo
Male 68 Director Resigned 2019/01/16 2025/04/22
Shuzhan
Director Resigned 2022/02/28 2025/04/22 Share increase
Vice president Resigned 2020/12/26 2025/04/22 from the
secondary
Deng market and
Male 49 Secretary of 116600 311000 427600
Xiaobo share ownership
the Board of Resigned 2020/12/26 2025/01/10
in employee
Directors
stock ownership
plan
Independent
Liu Shuwei Female 72 Resigned 2019/01/16 2025/04/22
director
Wang Male 63 Independent Resigned 2019/01/16 2025/04/22
652024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Xiaohua director
Xing Independent
Male 62 Resigned 2019/01/16 2025/04/22
Ziwen director
Share ownership
Wang Employee in employee
Female 41 Resigned 2019/01/16 2025/04/22 51355 30000 81355
Fawen supervisor stock ownership
plan
Share ownership
in employee
Zhuang Pei Male 60 Vice president Resigned 2003/04/16 2024/07/06 6375455 300000 6675455
stock ownership
plan
Share ownership
Tan in employee
Male 60 Vice president Resigned 2017/08/30 2024/12/24 1785769 200000 1985769
Jianming stock ownership
plan
Total -- -- -- -- -- -- 65633595 49206000 114830595 --
6 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Are there cases of quit of directors and supervisors and dismissal of senior executives during the reporting period
□ Yes □No
Changes in the company's directors supervisors and senior executives
□Applicable □ Not applicable
Name Position Type Date Reason
Resigned upon the
Dong Mingzhu President 2025/04/22 Leadership transition
expiration of the term
Zhang Wei President Appointed 2025/04/22 Leadership transition
Zhuang Pei Vice president Resigned 2024/07/06 Retirement
Vice president and
Tan Jianming Resigned 2024/12/24 Retirement
chief engineer
Director and vice Resigned upon the
2025/04/22 Leadership transition
president expiration of the term
Deng Xiaobo
Secretary of the Board
Resigned 2025/01/10 Job change
of Directors
Resigned upon the
Guo Shuzhan Director 2025/04/22 Leadership transition
expiration of the term
Resigned upon the
Liu Shuwei Independent director 2025/04/22 Leadership transition
expiration of the term
Resigned upon the
Xing Ziwen Independent director 2025/04/22 Leadership transition
expiration of the term
Resigned upon the
Wang Xiaohua Independent director 2025/04/22 Leadership transition
expiration of the term
Resigned upon the
Wang Fawen Employee supervisor 2025/04/22 Leadership transition
expiration of the term
Director Elected 2025/04/22 Leadership transition
Shu Lizhi Resigned upon the
Vice president 2025/04/22 Leadership transition
expiration of the term
Zhong Chengbao Director Elected 2025/04/22 Leadership transition
Liu Hua Vice president Appointed 2025/04/22 Leadership transition
Li Shaobin Vice president Appointed 2025/04/22 Leadership transition
Hu Yusheng Vice president Appointed 2025/04/22 Leadership transition
Wang Kai Vice president Appointed 2025/04/22 Leadership transition
Secretary of the Board
Zhang Zhouhu Appointed 2025/01/10 Job change
of Directors
Li Hongqi Independent director Elected 2025/04/22 Leadership transition
Cheng Ming Independent director Elected 2025/04/22 Leadership transition
Weng Guomin Independent director Elected 2025/04/22 Leadership transition
Shao Liguo Employee supervisor Elected 2025/04/22 Leadership transition
2. Employment situation
Professional background main work experience and current major responsibilities of the Company's current directors supervi sors
and senior executives
Ms. Dong Mingzhu with a master's degree currently serves as the chairperson of Gree Electric Appliances Inc. of Zhuhai and
successively served as the salesperson head of the Business Department vice general manager vice chairperson and preside nt of
the Company.She was successively elected as a deputy of the 10th 11th 12th 13th and 14th National People's Congress a member of the 10th
11th and 12th Executive Committee of the All-China Women's Federation a member of the 13th Five-Year Plan Expert Committee
of the National Development and Reform Commission a member of the Advisory Committee of the All -China Federation of
Industry and Commerce a United Nations Ambassador for Sustainable Urban Development the first rotating chairperson of the
6 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
UNDP Commission on Sustainable Development and the chairperson of the ISO/TC86/SC4.She was awarded the "National Model Worker" "National May 1 Labor Medal" "National March 8th Red Banner Pacesetter"
expert enjoying the special allowance of the State Council China Patent Gold Award the Third China Quality Award China
Standard Innovation and Contribution Award and other honors and titles and has been selected by CCTV as "Economic Personali ty
of the Year" for three times and was listed in Fortune "2019 World's Most Influential Women in Business" and "2024 Top 100
China's Outstanding Women in Business". Additionally she has been included in Fortune's "World's Most Influential Women in
Business" and "China's Most Influential Women in Business" for many consecutive years.Mr. Zhang Wei a senior economist with a bachelor's degree currently serves as the secretary of the party committee
director and president of Gree Electric Appliances Inc. of Zhuhai.He joined Gree Electric Appliances Inc. of Zhuhai in 1999 and successively served as the head of the Gree Electric Appliance s
Pipeline Branch Material Supply Department Outsourcing and Purchasing Quality Management Department Business
Management Department and assistant president. He served as vice president of Zhuhai Gree Group Co. Ltd. from 2013 to 2020
and has served as a director of the Company since January 2019 the secretary of the party committee of the Company since
September 2020 and the president of the Company since April 2025.Mr. Zhang Jundu with a junior college degree currently serves as a director of Gree Electric Appliances Inc. of Zhuhai.He has served as the chairman of Zhejiang Tongcheng Gree Electric Appliances Co. Ltd. since September 1999 the executive
director and general manager of Zhejiang Shengshi Xinxing Gree Trade Co. Ltd. since August 2012 and a director of the Company
since May 2012.Mr. Shu Lizhi with a master's degree currently serves as a director of Gree Electric Appliances Inc. of Zhuhai.He previously served as the deputy director and director of the Wuhan Special Commission Office of the National Audit Office.He joined Gree Electric Appliances Inc. of Zhuhai in December 2019 and served as the vice president of the Company from
December 2020 to April 2025. He has served as a director of the Company since April 2025.Mr. Zhong Chengbao a senior electrical engineer with a master's degree currently serves as a director chief engineer and
assistant president of Gree Electric Appliances Inc. of Zhuhai.He was an outstanding young talent of Zhuhai and executive deputy director of "Guangdong Provincial Key Laboratory of High -
Performance Servo System Enterprises" and obtained a bachelor's degree in mechanical design manufacturing and automation
from Harbin Institute of Technology in 2008 and a master's degree in computer science and technology from Beijing Institute o f
Technology in 2024. He joined the Company in 2008 and has successively served as a technician the leader of the technical research
group the director of the research institution and the president of the research institute. Additionally he has served as the assistant
president of the Company since February 2024 the chief engineer of the Company since February 2025 and a director of the
Company since April 2025.Mr. Zhang Qiusheng with a doctoral degree is a non-practicing member of the Chinese Certified Public Accountant. He is
currently a professor at the School of Economics and Management of Beijing Jiaotong University the director of the National
Institute of Transportation Development the director of the China Center for Corporate Mergers and Acquisitions and an
independent director of CMST Development Co. Ltd. and Luoniushan Co. Ltd.He has undertaken various provincial and ministerial research projects from the National Natural Science Foundation of China the
National Social Science Fund of China the National Soft Science Program as well as the Ministry of Education the Ministry of
Finance the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities
Regulatory Commission. He has published more than 30 works (translations) including the monograph A Framework for Mergers
6 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
and Acquisitions and more than 100 academic and professional papers and has won a second prize for national teaching
achievements four awards for provincial and ministerial research achievements and two first prizes for teaching achievement s in
Beijing.Mr. Cheng Ming with a doctoral degree currently serves as the chief professor of Southeast University the director of the
Academic Committee of the School of Electrical Engineering the director of Jiangsu Provincial Engineering Laboratory for New
Energy Vehicle Motors and Drive Systems and an independent director of Gree Electric Appliances Inc. of Zhuhai and Shandong
Jindi Precision Machinery Technology Co. Ltd.He has worked at Southeast University since 1987 and successively served as the president of the School of Electrical Engineering
of Southeast University and a member of the 10th Academic Committee of Southeast University. He served as an independent
director of Wuxi Xinje Electric Co. Ltd. from January 2013 to December 2018 and has served as an independent director of
Shandong Jindi Precision Machinery Technology Co. Ltd. since January 2021. He won the Second Prize of the National
Technological Invention Award in 2016 (ranked first) the First Prize of the Natural Science Award of the Minist ry of Education
in 2013 (ranked first) the First Prize of the Natural Science Award of the Ministry of Education in 2022 (ranked first) the First
Prize of Jiangsu Science and Technology Award in 2019 (ranked first) and the Jiangsu Patent Inventor Award in 2019.Mr. Li Hongqi with a doctoral degree currently serves as an independent director of Gree Electric Appliances Inc. of Zhuhai.He has been engaged in scientific research and teaching in refrigeration air conditioning and compressors including energy
conservation and environmental protection technologies of refrigeration and air conditioning equipment and its application. He has
edited and co-edited 18 books published over 160 papers and participated in the formulation of more than 30 national energy
efficiency standards and other national and industry standards. He previously served as a professor in the Department of
Refrigeration and Cryogenic Engineering at Beijing University of Technology a member of the Chinese Association of
Refrigeration and its Academic Committee a member of the Technical Committee of the China Refrigeration and Air Conditioning
Industry Association and vice president of its Pump Branch a member of SAC/TC238 a vice chairman of SAC/TC145 a member
of SAC/TC119 and TC119/SC7 and a member of the Chinese expert group for the implementation of the Montreal Protocol on
Substances that Deplete the Ozone Layer.Mr. Weng Guomin with a doctoral degree currently serves as a professor at the School of Economics of Zhejiang University and
an independent director of Gree Electric Appliances Inc. of Zhuhai Ningbo United Group Co. Ltd. and Great Microwave
Technology Co. Ltd. He previously served as an assistant lecturer lecturer and associate professor at the Law Department of
Hangzhou University a professor at the Law School of Zhejiang University and a professor at the Guanghua Law School of
Zhejiang University.Ms. Cheng Min with a bachelor's degree currently serves as the vice president of Zhuhai Gree Group Co. Ltd. the chairman of
Zhuhai Gexin Development Co. Ltd. and the chairman of the Board of Supervisors of Gree Electric Appliances Inc. of Zhuhai
and successively served as the head of the Planning Department of Zhuhai Exhibition and Convention Bureau a member of the
Party Group of Zhuhai Exhibition and Convention Bureau and the office director and secretary of the Board of Directors of Zhuhai
Gree Group Co. Ltd.Mr. Duan Xiufeng currently serves as a supervisor of Gree Electric Appliances Inc. of Zhuhai.Graduated from Shandong Party School in 1999 he has served as a supervisor of the Company since January 2019 and successively
served as the vice general manager and general manager of Shandong Gree Electric Appliance Marketing Co. Ltd. and general
manager of Shandong Shengshi Xinxing Gree Trade Co. Ltd.Mr. Shao Liguo a senior engineer with a master's degree currently serves as the employee representative supervisor and the head
of the Business Management Department of Gree Electric Appliances Inc. of Zhuhai.
6 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
He has successively served as a technician supervisor and assistant head of the Production Planning Department assistant manager
and manager of the 4th Air Conditioning Branch general manager of Gree Electric Appliances (Hefei) Co. Ltd. an d head of the
Equipment and Power Department.Mr. Fang Xiangjian a senior engineer with a master’s degree currently serves as the vice president of Gree Electric Appliances
Inc. of Zhuhai.He served as an analyst and head of the department of the Screening Branch from July 2001 to June 2004 an assistant manager
vice manager and manager of the Screening Branch and head of the Quality Control Department from July 2004 to December
2016 an assistant president of the Company from December 2016 to November 2021 and has served as the vice president of the
Company since November 2021.He won the Guangdong May 1 Labor Medal the Liu Yuanzhang Quality and Technical Talent Award of the China Association for
Quality the Management Talent Award of the China Management Science Society and the High-level Talent of Zhuhai. He
concurrently serves as the vice president of the China Association for Quality Inspection the vice chairman of the 11th Boar d of
Directors of the Chinese Association of Refrigeration the member of the 5th Technical Committee of the China Refrigeration a nd
Air Conditioning Industry Association the chairman of the 2nd GD/TC94 a member of the 7th Academic Committee and the
Reliability Promotion Committee of the China Association for Quality the vice chairman of the Green and Efficient Energy-using
Product Professional Committee of the China Energy Conservation Association a professional member of the China Fire Protection
Association a member of Board of Directors of the China Management Science Society vice president of the Guangdong
Association for Quality etc.Mr. Liu Hua a professor-level senior engineer with a doctoral degree currently serves as the vice president of Gree Electric
Appliances Inc. of Zhuhai.He served as the designer group leader director assistant head and vice head of the Commercial Technology Department from
March 2003 to February 2017 the assistant chief engineer of the Company from February 2017 to October 2017 the assistant
president of the Company from October 2017 to April 2025 and has served as the vice chief engineer of the Company since October
2017 and the vice president of the Company since April 2025.
He presided over two projects/topics of the National Key Research and Development Program won the Second Prize in the National
Technological Invention Award the Gold Award for Chinese Patent the First Prize of Science and Technology Progress of
Guangdong Province and other scientific and technological awards selected as a leading talent in scientific and technological
innovation under the National "Ten Thousand Talents Program" and an expert enjoying the special government allowance of the
State Council and received honors such as the "Top Ten Outstanding Inventors of Guangdong Province" "Model Worker of
Guangdong Province" and "Outstanding Communist Party Member of Guangdong Province". He concurrently serves as the vice
president of the Building Environment and Energy Utilization Branch of the China Engineering & Consulting Association vice
director of the Professional Committee on Thermal Utilization of the China Renewable Energy Society vice president of the
Institute of Heating Ventilation and Air Conditioning China Association of Building Energy Efficiency etc.Mr. Li Shaobin a senior engineer with a master's degree currently serves as the vice president of Gree Electric Appliances Inc.of Zhuhai.He has successively served as the assistant head and minister of the Commercial Air Conditioning Design and Development
Department of the company and assistant to the president of the company. Has served as the assistant to the chief engineer o f the
company since February 2017. Has served as the vice president of the company since April 2025. He concurrently serves as the
vice director of the National Engineering Research Center of Green Refrigeration Equipment a review expert for the "Qiming
Program" of the Ministry of Industry and Information Technology and an expert (first batch) included in the expert database of the
7 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Department of Industry and Information Technology of Guangdong Province. He has also been awarded the Outstanding Inventor
of Guangdong Province and High-level Talent of Zhuhai.Mr. Hu Yusheng with a doctoral degree from Harbin Institute of Technology is a professor-level senior engineer and currently
serves as the vice president of Gree Electric Appliances Inc. of Zhuhai.He has successively served as the technician and head of the Refrigeration Technology Research Institute the head assistant
president vice president and president of the Mechanical and Electrical Technology Research Institute from July 2004 to December
2017 the assistant chief engineer of the Company since December 2017 the assistant president of the Company from April 2019
to April 2025 and the vice president of the Company since April 2025.He has been honored as a Leading Talent in Scientific and Technological Innovation among the middle -aged and young talents
under the National Ten Thousand Talents Program an expert enjoying the special government allowance of the State Council an
Outstanding Young Engineer and one of the Top Ten Outstanding Inventors of Guangdong Province.Mr. Wang Kai with a master's degree from the Criminal Investigation Police University of China currently serves as the vice
president of Gree Electric Appliances Inc. of Zhuhai.He has successively served as the assistant president of the Company from February 2019 to April 2025 and the vice president of
the Company since April 2025. He once worked at the Public Security Bureau of Shenzhen Municipality holding posi tions such
as the head of the Intelligence Division of the Anti-Terrorism Detachment.He has been awarded the Second-Class Merit once and the Third-Class Merit twice and received multiple commendations. He has
also been honored with the United Nations Peace Medal the Ministry of Public Security Peacekeeping Medal the Outstanding
People's Police Officer of Guangdong Province the Advanced Individual in Political Work of the Guangdong Provincial Public
Security Department the Advanced Individual in Anti-Terrorism Work of Shenzhen City and the Gold Medal of the Public Security
Bureau of Shenzhen Municipality.Mr. Liao Jianxiong with a bachelor's degree currently serves as the chief financial officer and assistant president of Gree
Electric Appliances Inc. of Zhuhai.He joined GREE in May 1993 and successively served as the head of the Finance Department of Gree Electric Appliances
(Chongqing) Co. Ltd. and the head of the Finance Department of Gree Electric Appliances Inc. of Zhuhai. He has served as th e
chief financial officer and assistant president of the Company since August 2020.Mr. Zhang Zhouhu with a bachelor's degree currently serves as the board secretary of the Board of Directors of Gree Electric
Appliances Inc. of Zhuhai.He joined the Company in July 2007 and successively served as the head of the Finance Department of Gree (Wuhu) Electric
Appliances Co. Ltd. the head of the Finance Department of Gree (Hefei) Electric Appliances Co. Ltd. the securities affairs
representative and assistant head of the Investment Management Department of Gree Electric Appliances Inc. of Zhuhai and the
vice president and secretary of the Board of Directors of Zhejiang DunAn Artificial Environment Co. Ltd. He has served as th e
secretary of the Board of Directors of the Company since January 2025.Employment in Shareholders
□Applicable □ Not applicable
Remuneration and
Name of Name of Position Held at Allowance from
Term Start Date Term End Date
Incumbent Shareholder the Shareholder the Shareholder
(Yes/No)
Cheng Min Zhuhai Gree Vice president 2024/02/04 Yes
7 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Group Co. Ltd.Jinghai Internet
President and
Technology
Guo Shuzhan legal 2006/08/01 No
Development Co.representative
Ltd.Jinghai Internet
Technology
Zhang Jundu Director 2023/09/20 No
Development Co.Ltd.Description of
incumbent in N/A
shareholders
Employment in other companies
□Applicable □ Not applicable
Remuneration and
Name of Name of Other Position Held in Allowance from
Term Start Date Term End Date
Incumbent Companies Other Companies Other Companies
(Yes/No)
Zhuhai Gezhen
Investment
Management
Dong Mingzhu Executive partner 2019/09/26 No
Partnership
(Limited
Partnership)
Kingdee
International Non-executive
Dong Mingzhu 2012/08/21 Yes
Software Group director
Co. Ltd.Xiahe Hengsheng
Guo Shuzhan Hydropower Co. Director 2017/05/01 No
Ltd.Henan Shengshi
Guo Shuzhan Xinxing Gree Executive director 2010/08/01 Yes
Trade Co. Ltd.Luoyang Gree
Executive director
Electric
Guo Shuzhan and general 2010/06/01 No
Appliances
manager
Logistics Co. Ltd.Xiahe Hengfa
Guo Shuzhan Hydropower Co. Director 2005/06/01 No
Ltd.Henan Gree
Installation
Guo Shuzhan Executive director 2021/03/10 No
Engineering Co.Ltd.Henan Sanli Real
Estate
Guo Shuzhan Supervisor 2006/11/06 No
Development Co.Ltd.Zhejiang
Tongcheng Gree
Zhang Jundu Electric Chairperson 1999/09/01 Yes
Appliances Co.Ltd.Zhang Jundu Ningbo Director 2013/07/01 No
7 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Tongcheng Gree
Electric
Appliances Co.Ltd.Zhejiang Shengshi Executive director
Zhang Jundu Xinxing Gree and general 2017/01/01 Yes
Trade Co. Ltd. manager
Zhejiang Ruitong
Zhang Jundu Automobile Co. Director 2014/12/01 No
Ltd.Wenzhou
Tongcheng
Zhang Jundu Director 2012/04/01 No
Economic and
Trade Co. Ltd.Huzhou
Tongcheng Gree
Zhang Jundu Electric Director 2008/11/01 No
Appliances Co.Ltd.Costar Group Co. Independent
Liu Shuwei 2019/04/10 Yes
Ltd. director
Honorary
Wang Xiaohua ETR Law Firm chairman and 2022/07/01 Yes
senior partner
ARROW Home Independent
Wang Xiaohua 2019/12/18 Yes
Group Co. Ltd. director
Canton Tower
Cultural Tourism Independent
Wang Xiaohua 2021/04/27 Yes
Development Co. director
Ltd.Luoniushan Co. Independent
Zhang Qiusheng 2022/10/01 Yes
Ltd. director
Tianjin Lishen
Zhang Qiusheng Battery Joint- Director 2021/12/25 Yes
stock Co. Ltd.Yusys
Independent
Zhang Qiusheng Technologies Co. 2022/08/18 2024/05/15 Yes
director
Ltd.CMST
Independent
Zhang Qiusheng Development Co. 2022/10/01 Yes
director
Ltd.China Foreign
Economy and Independent
Zhang Qiusheng 2023/06/28 Yes
Trade Trust Co. director
Ltd.Zhejiang
Wangzhou
Xing Ziwen Internet of Things Director 2014/11/10 Yes
Technology Co.Ltd.Zhuhai Gexin President and
Cheng Min Development Co. legal 2018/09/01 No
Ltd. representative
Shandong Blue
Economy
Duan Xiufeng Chairperson 2014/11/05 No
Industrial Fund
Management Co.
7 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ltd.Jinan Jierui New
Executive director
Energy
Duan Xiufeng and general 2016/12/21 No
Technology Co.manager
Ltd.Zhongfu Huaxia
Management
Duan Xiufeng Chairperson 2005/12/23 No
Consulting Co.Ltd.Hainan Jierui
Executive director
Tongda
Duan Xiufeng and general 2023/06/15 No
Investment Co.manager
Ltd.Jinan Rural
Duan Xiufeng Commercial Bank Supervisor 2020/05/22 No
Co. Ltd.Description of
incumbent in N/A
other companies
Penalties imposed by securities regulators on incumbent and resigned directors supervisors and senior executives in the
reporting period in the recent three years
□ Applicable □Not Applicable
3. Remuneration of directors supervisors and senior executives
Decision-making procedures determination basis and actual payment regarding the remunerations of directors supervisors and
senior executives
During the reporting period to improve the incentive and restraint mechanism mobilize the enthusiasm and creativity of directors
supervisors and senior executives and enhance the operating efficiency and business benefits of the Company the remunerati on
programs for directors supervisors and senior executives of the Company are formulated based on the actual situation of the
Company and factors such as remuneration allowances and job contributions in the industry and region.(I) Remuneration program for directors
1. Allowance program for independent directors
The Company provides appropriate allowances to independent directors that is CNY200000 per person per year (before tax).
2. Remuneration program for non-independent directors
Non-independent directors who hold positions other than directors in the Company receive remuneration based on their actual
positions and duties in the Company but no separate director allowances are provided.Non-independent directors who do not hold positions other than directors in the Company do not receive remuneration from the
Company or separate director allowances.(II) Remuneration program for supervisors
Supervisors who do not hold positions other than supervisors in the Company do not receive remuneration from the Company or
separate supervisor allowances.Employee representative supervisors receive remuneration based on their actual positions and duties in the Company but no
separate supervisor allowances are provided.(III) Remuneration program for senior executives
The Company assesses the performance of senior executives in terms of "morality ability diligence and achievement" and th e
7 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
remuneration program is formulated by the Board of Directors based on the industry situation.Remuneration of directors supervisors and senior executives in the reporting period
Unit: CNY10000
Remuneration
Total Pre-tax
from
Remuneration
Employment Affiliated
Name Gender Age Position (Reporting Period) Received
Status Parties of the
from the
Company
Company
(Yes/No)
Dong
Female 70 Chairperson and president Incumbent 1437.20 Yes
Mingzhu
Director and secretary of the
Zhang Wei Male 48 Incumbent 862.32 No
party committee
Guo Shuzhan Male 68 Director Resigned - No
Zhang Jundu Male 64 Director Incumbent - No
Director vice president
Deng Xiaobo Male 49 secretary of the Board of Resigned 49.45 No
Directors
Liu Shuwei Female 72 Independent director Resigned 20.00 No
Wang
Male 63 Independent director Resigned 20.00 No
Xiaohua
Xing Ziwen Male 62 Independent director Resigned 20.00 Yes
Zhang
Male 57 Independent director Incumbent 20.00 No
Qiusheng
Cheng Min Female 44 Supervisor Incumbent - Yes
Duan Xiufeng Male 61 Supervisor Incumbent - No
Wang Fawen Female 41 Employee supervisor Resigned 70.87 No
Zhuang Pei Male 60 Vice president Resigned 240.00 No
Vice president and chief
Tan Jianming Male 60 Resigned 400.00 No
engineer
Shu Lizhi Male 55 Vice president Incumbent 359.30 No
Liao Chief financial officer and
Male 51 Incumbent 287.44 No
Jianxiong assistant president
Fang
Male 47 Vice president Incumbent 718.60 No
Xiangjian
Total -- -- -- -- 4505.18 --
Explanation of other situations
□ Applicable □Not Applicable
VI. Performance of directors' duties during the reporting period
1. Description of the Board of Directors during the reporting period
Session of Meeting Date of Convening Date of Disclosure Meeting Resolutions
For details please refer to the
Announcement of Resolutions of the
The 17th Meeting of the 17th Meeting of the 12th Board of
2024/02/022024/02/03
12th Board of Directors Directors (Announcement No.: 2024-
003) on CNINFO
(http://www.cninfo.com.cn/new/index)
The 18th Meeting of the For details please refer to the
2024/04/292024/04/30
12th Board of Directors Announcement of Resolutions of the
7 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
18th Meeting of the 12th Board of
Directors (Announcement No.: 2024-
006) on CNINFO
(http://www.cninfo.com.cn/new/index)
For details please refer to the
Announcement of Resolutions of the
The 19th Meeting of the 19th Meeting of the 12th Board of
2024/08/022024/08/03
12th Board of Directors Directors (Announcement No.: 2024-
023) on CNINFO
(http://www.cninfo.com.cn/new/index)
For details please refer to the
Announcement of Resolutions of the
The 20th Meeting of the 20th Meeting of the 12th Board of
2024/08/302024/08/31
12th Board of Directors Directors (Announcement No.: 2024-
030) on CNINFO
(http://www.cninfo.com.cn/new/index)
For details please refer to the
Announcement of Resolutions of the
The 21st Meeting of the 21st Meeting of the 12th Board of
2024/09/202024/09/21
12th Board of Directors Directors (Announcement No.: 2024-
032) on CNINFO
(http://www.cninfo.com.cn/new/index)
For details please refer to the
Announcement of Resolutions of the
The 22nd Meeting of the 22nd Meeting of the 12th Board of
2024/10/182024/10/19
12th Board of Directors Directors (Announcement No.: 2024-
036) on CNINFO
(http://www.cninfo.com.cn/new/index)
The 23rd Meeting of the Deliberation and approval of the 2024
2024/10/302024/10/31
12th Board of Directors Third Quarter Report
For details please refer to the
Announcement of Resolutions of the
The 24th Meeting of the 24th Meeting of the 12th Board of
2024/12/312025/01/01
12th Board of Directors Directors (Announcement No.: 2024-
040) on CNINFO
(http://www.cninfo.com.cn/new/index)
2. Attendance of directors at meetings of the Board of Directors and general meetings of shareholders
Attendance of directors at meetings of the Board of Directors and general meetings of shareholders
Number of Failure to
Meetings of Number of Attend the
Number of Number of Number of
the Board of Attending Meetings of Number of
Attending Attending Absences
Directors Meetings of the the Board of Attending
Name of Meetings of Meetings of from
Requiring Board of Directors in General
Director the Board of the Board of Meetings of
Attendance Directors via Person for Meetings of
Directors in Directors by the Board of
during the Communication Consecutive Shareholders
Person Entrusting Directors
Reporting Tools Two Times
Period (Yes/No)
Dong
8 1 7 0 0 No 2
Mingzhu
Zhang Wei 8 1 7 0 0 No 2
Guo
8 0 8 0 0 No 2
Shuzhan
Zhang
8 1 7 0 0 No 2
Jundu
7 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Deng
8 1 7 0 0 No 2
Xiaobo
Liu Shuwei 8 1 7 0 0 No 2
Wang
8 1 7 0 0 No 2
Xiaohua
Xing Ziwen 8 1 7 0 0 No 2
Zhang
8 1 7 0 0 No 2
Qiusheng
Explanation of absence from meetings of the Board of Directors for consecutive two times
3. Directors' objection to relevant matters of the Company
Do the directors raise any objections to relevant matters of the Company
□ Yes □No
The directors don't raise any objections to relevant matters of the Company.
4. Other descriptions for performance of duties by directors
Are the directors' suggestions on the Company adopted
□Yes □No
Description of adoption or rejection of directors' suggestions on the Company
During the reporting period the directors of the Company took the best interests of the Company and shareholders as their co de of
conduct faithfully performed their duties according to relevant regulations attended the meetings of the Board of Directors and
general meeting of shareholders carefully deliberated the proposals and made suggestions and comments on the management of
the Company which played a positive role in effectively making decisions by the Board of Directors improving the management
level and standardizing the operation of the Company.VII. Special committees under the Board of Directors during the reporting period
Important
Number
Comments Other Details of
Name of Member of Date of
Content of Meeting and Performance Objection
Committee Status Meetings Convening
Suggestions of Duties (if any)
Held
Proposed
Deliberation of the
following
proposals:
I. 2023 Annual
Report and its
Liu Summary
Shuwei II. 2023 Financial
Wang 2024/04/29 Statements
Audit
Xiaohua 4 III. 2023 Internal
Committee
and Control Self-
Zhang evaluation Report
Wei IV. Proposal on the
Renewal of the
Company's Audit
Institution in 2024
Deliberation of the
2024/04/29
2024 First Quarter
7 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Report
Deliberation of the
2024 Semi-annual
2024/08/30
Report and its
Summary
Deliberation of the
2024/10/30 2024 Third Quarter
Report
Deliberation of the
2023 Remuneration
2024/04/29 and Assessment
Wang Program for Senior
Xiaohua Executives
Remuneration Liu Deliberation of the
and Appraisal Shuwei 2 Proposal on the
Committee and Phase III Employee
Zhang Stock Ownership
2024/08/02
Wei Plan of Gree
Electric Appliances
Inc. of Zhuhai
(Draft)
VIII. Work of the Board of Supervisors
Does the Board of Supervisors identify any risks in the Company through supervision during the reporting period
□ Yes □No
The Board of Supervisors has no objection to the supervision matters during the reporting period.IX. Company's staff
1. Number of employees their specialties and educational background
Number of on-the-job employees of the parent company at
19419
the end of the reporting period
Number of on-the-job employees of the main subsidiaries at
53389
the end of the reporting period
Total number of on-the-job employees at the end of the
72808
reporting period
Total number of employees receiving salaries for the current
72808
period
Number of retired employees for whom the parent company
464
and main subsidiaries need to bear expenses
Specialties
Category of specialties Number of employees of specialties
Manufacturing personnel 50835
Sales personnel 2136
Technical personnel 15800
Financial personnel 1112
Administrative personnel 2925
Total 72808
Educational background
Educational background Number of employees
Bachelor's degree or above 16998
College degree 13730
Technical secondary school and below 42080
7 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Total 72808
2. Remuneration policy
During the reporting period the Company attached great importance to and safeguarded the vital interests of employees optimized
and adjusted remuneration programs and continuously improved the position-based and performance-oriented remuneration
mechanism. Additionally the Company taking high-quality talents as the core improved the rationality of the salaries of core
groups motivated scientific and technological personnel for breakthroughs reformed the wage system and built career
development channels for employees based on a professional assessment to establish a reasonable flexible and effective salary
system optimize the construction of the talent team and enhance the organizational effectiveness.
3. Training plan
(1) Training comprehensive technical management talent to promote the growth and development of employees
Training key talents and enhancing their comprehensive quality and ability. The Company conducted the advanced training
of newly appointed middle-level managers through the mechanism of "foundation-improvement-strengthening" to accelerate the
transformation of roles and thinking and enhance management level and professional ability; established the "Cornerstone Plan"
supervisor training camp and the "Spark Plan" team leader training camp and formulated targeted training plans from aspects s uch
as management role positioning and compliance risk control to improve the comprehensive quality and ability of nearly 300 low-
level managers; and organized the "Starlight GREE" 2024 college student induction training and the "Let Your Dreams Set Sail"
new employee induction training and systematically developed the training content from aspects such as values and business skills
to build consensus and cultural understanding enhance the employer brand and solidify the foundation for the long -term
development of new employees.Providing integrated learning resources and constructing a learning organization. Adhering to the concept of "Training People on
Both Virtue and Skills" the Company carried out the "Inventive Mind · GREE Good Lecturer" competition and set up both online
and offline learning channels to discover outstanding lecturers and develop high-quality courses with topics closely related to
business and authentic content. Relying on the online GREE learning platform it enhanced the digital construction of learning
resources and pushed regular and phased learning for all employees in terms of general abilities professional knowledge and
quality courses to achieve precise delivery of learning resources. Based on a four-level training system covering the company
departments sections and individuals it provided open classes for all employees and special training on key businesses such as
technology research and development production management product planning and sales expansion. The company has conducted
nearly 6000 special training at all levels and promoted the transmission of learning experiences and corporate culture throu gh the
deep integration of digital platforms and systematic management.
(2) Training practical skilled talents to support enterprises in their transformation towards intelligent manufacturing
Building a demonstration base for skill training relying on the policy advantages. Based on the support policies for the
cultivation of skilled talents issued by the state provinces and cities the Company initiatively and actively coordinated various
resources to build a national-level standard high-skilled talent training base covering multiple professional fields playing an
exemplary role of skilled talent training. Awarded the qualification of core enterprises in the "industry-education-evaluation"
ecosystem in Guangdong Province it optimized the industry-education integration system and successively completed the course
outlines for multiple jobs providing talent support for developing new quality productive forces with practical actions. It obtained
the approval and promoted the construction of the Craftsmanship College and integrated high-quality internal and external lecturers
venues and other resources to provide comprehensive and high-quality skilled talent support for improving the skill levels of
employees optimizing the industrial chain and supply chain and transforming traditional industries through measures such as skill
7 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
training master-apprentice programs skill competitions and skill level evaluations.Supporting the improvement of skilled talents and revitalizing the enterprise with strong skills. Adhering to the significant role of
skilled talents in strengthening and revitalizing enterprises the Company comprehensively upgraded the labor skill competitions
in 2024 including front-line operation skills production quality and lean production skills and equipment operation and
commissioning skills to promote the transformation of employees' skills from traditional manual operations to equipment operation
and automation and create an atmosphere of learning from respecting and striving to become skilled talents.
(3) Improving the after-sales talent training system to expand after-sales service and global business
Transforming the domestic market-oriented service and constructing the after-sales talent team. To comprehensively
enhance the professional capabilities and service quality of domestic after-sales services with the aim of "data interaction and
business collaboration" in terms of pre-job training the Company established a full-process talent training model covering pre-job
training examination & evaluation and permission to work assignment relying on the linkage between the after -sales system and
the training system providing a strong guarantee for after-sales service of eight major categories of products including residential
air conditioners residential central air conditioners kitchen appliances refrigerators washing machines etc. In terms of safety and
technical training the Company enhanced the acceptance and the investigation of potential safety hazards by front -line after-sales
personnel through the "Safety First" safety education campaign trained and appointed safety instructors with the goal of "Beginning
with the End in Mind and Training based on Required Skills" and based on after-sales data analysis focused on high-frequency
faults and built "Perfect Journey · Bright Future" after-sales high-skilled talent training camp to enhance the safety awareness and
professional capabilities of the after-sales service team. In terms of training skilled talents to construct a highly skilled after -sales
service team the Company organized nearly 5000 after-sales service teams across the country to participate in the "GREE Cup"
household service skill competition showcasing the professional skills and high-quality services of GREE's after-sales service. In
addition relying on the three-level after-sales training system combined with business development and after-sales issues it trained
over 500000 personnel throughout the year supporting after-sales personnel in enhancing their professional skills and providing
good service guarantees.Promoting the internationalization upgrade of our brands and expanding overseas business. To support the construction of
the company's self-owned brands and the development of overseas business the Company conducted precise product and technical
training for more than 100 agents in eight major regions including North America Latin America the Middle East etc. through
various modes such as remote live streaming global training and in-factory training. Meanwhile to promote communication and
collaboration among global partners a "GREE Overseas After-sales Technical Exchange Seminar" was held at the headquarters of
Gree Electric Appliances for global agents promoting technical exchanges and brand value transmission. Additionally to sati sfy
the requirements for talent development in Hong Kong and Macao based on its advantages in the refrigeration industry the
Company organized special training on air conditioner maintenance and repair skills for personnel in Hong Kong and Macao
promoting the highly skilled talent training and win-win cooperation in Zhuhai Hong Kong and Macao.
4. Labor outsourcing
□ Applicable □Not Applicable
X. Profit distribution and conversion of capital reserves into share capital by the Company
Profit distribution policy during the reporting period especially the formulation implementation or adjustment of the cash
dividend policy
□Applicable □ Not applicable
According to the Shareholder Return Plan for 2022 to 2024 the Company can make two profit distributions each year from 2022
8 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
to 2024 namely the annual profit distribution and the interim profit distribution. On the premise that the company's cash flow meets
its normal operation and long-term development the company's cash dividend per share for each year from 2022 to 2024 is not less
than CNY2 or the total cash dividend is not less than 50% of the net profit attributable to shareholders of listed companies as
audited in the current year.On April 29 2024 the 18th Meeting of the 12th Board of Directors deliberated and approved the Annual Profit Distribution Plan
for 2023. On June 28 2024 this plan was deliberated and approved by the company's Annual General Meeting of Shareholders in
2023 as follows: With the shares after deducting the 109462095 shares in the repurchase account from the Company's total sh are
capital of 5631405741 shares as the base quota a cash dividend of CNY23.80 (tax inclusive) is distributed to all shareholders for
every 10 shares without bonus shares or conversion of capital reserves into share capital totaling CNY13142225877.4 8
distributed. This plan was completed on August 28 2024.On December 31 2024 the 24th Meeting of the 12th Board of Directors deliberated and approved the Interim Profit Distribution
Plan for 2024. On April 22 2025 this plan was deliberated and approved by the 1st Extraordinary General Meeting of Shareholders
in 2025 as follows: With the shares after deducting the 79462095 shares in the repurchase account from the Company's total share
capital of 5601405741 shares as the base quota a cash dividend of CNY10 (tax inclusive) is distributed to all shareholders for
every 10 shares without bonus shares or conversion of capital reserves into share capital totaling CNY5521943646.00 dist ributed.If there is a change in the total share capital of the Company entitled to profit distribution from the date of disclosure of the
distribution plan to the date of implementation of equity distribution registration the Company will adjust the total dividend
accordingly based on the principle of keeping the distribution ratio per share unchanged.The cash dividend distribution proportion of the Company since its listing is in line with the provisions of the Articles of Association
of Gree Electric Appliances Inc. of Zhuhai and the cash dividend distribution policy of the Company is in line with the provisions
of laws and regulations such as the Articles of Association of Gree Electric Appliances Inc. of Zhuhai and the resolutions of the
general meeting of shareholders. The dividend distribution criteria and the dividend distribution ratio are clear and distinct the
relevant decision-making procedures and mechanisms are complete and the independent directors have performed their duties and
responsibilities with due diligence and have played their roles. Minority shareholders have adequate opportunities to express their
opinions and demands on profit distribution and their legitimate rights and interests are fully protected.Special Description of Cash Dividend Policy
Are the provisions of the Articles of Association or the
Yes
resolutions of the general meeting of shareholders observed
Are the dividend distribution criteria and ratio clear and
Yes
distinct
Are the relevant decision-making procedures and
Yes
mechanisms complete
Do the independent directors perform their duties and play
Yes
their due roles
If the Company does not distribute cash dividends please
specify the reasons and the measures to be taken to enhance Not applicable
investor returns:
Do the minority shareholders have the opportunity to fully
express their opinions and demands and are their legitimate Yes
rights and interests adequately protected
Are the conditions and procedures compliant and transparent
Yes
if the cash dividend policy is adjusted or changed
The Company is profitable during the reporting period and the parent company has positive profit available for distribution to
shareholders without the cash dividend distribution plan proposed
8 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
□ Applicable □Not Applicable
Profit distribution and conversion of capital reserves into share capital during the reporting period
□Applicable □ Not applicable
Number of bonus shares per ten shares (shares) -
Dividends per 10 shares (CNY) (tax inclusive) 20.00
Number of shares converted per ten shares (shares) -
Share capital base for the distribution plan (shares) 5585138741
Cash dividends (CNY) (tax inclusive) 11170277482.00
Cash dividends by other means (e.g. share repurchase) (CNY) -
Total cash dividends (including other means) (CNY) 11170277482.00
Distributable profits (CNY) 85006200670.48
Proportion of total cash dividends (including other means) to total
100%
profit distributed
Current Cash Dividend
If the Company is in a maturity stage without significant capital expenditure arrangements the cash dividends shall
account for at least 80% of the current profit distribution.Detailed Description of Plan for Profit Distribution or Conversion of Capital Reserves into Share Capital
The Company's profit distribution proposal passed upon deliberation at the meeting of the Board of Directors is set out
as below: Based on the total share capital of 5585138741 shares enjoying profit distribution rights at the time of
disclosure of this profit distribution plan (the total stock capital of 5601405741 shares excluding the 16267000
shares held in the repurchase account of the Company) the Company plans to distribute all shareholders a cash dividend
of CNY20 (tax included) per 10 shares but does not plan to give any bonus share (0 share tax included) or convert
any capital reserves into share capital. A total of CNY11170277482.00 cash dividends were distributed and the
remaining undistributed profits were carried forward for future distribution. If there is a change in the total share capital
of the Company entitled to profit distribution from the date of disclosure of the distribution plan to the date of
implementation of equity distribution registration the Company will adjust the total dividend accordingly based on the
principle of keeping the distribution ratio per share unchanged.XI. Implementation of the Company's equity incentive plan employee stock ownership
plan or other employee incentive measures
□Applicable □ Not applicable
1. Equity incentive
Not applicable
Equity incentives received by directors and senior executives of the Company
□ Applicable □Not Applicable
Appraisal mechanism and incentives of senior executives
Not applicable
2. Implementation of employee stock ownership plan
8 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Applicable □ Not Applicable
(1) On July 30 2024 the Company held a meeting of the holders of the Phase II employee stock ownership plan to deliberate and
approve the Proposal on the Termination of the Phase II Employee Stock Ownership Plan and the Continued Fulfillment of the
Voluntary Lock-up Period Commitment. Therefore the Phase II employee stock ownership plan was terminated ahead of schedule.According to the Phase II employee stock ownership plan approved by the general meeting of shareholders after the shares are
transferred to the individual security accounts of the holders the holders are not allowed to sell or set up pledges before May 1
2032. Otherwise the labor union has the right to recover the income from relevant shares.
(2) On August 2 2024 the Company held the 19th Meeting of the 12th Board of Directors and the 16th Meeting of the 12th Board
of Supervisors to deliberate and approve the Proposal on the Phase III Employee Stock Ownership Plan (Draft) of Gree Electric
Appliances Inc. of Zhuhai. Additionally on August 19 2024 it held the 1st Extraordinary General Meeting of Shareholders in
2024 to deliberate and approve the Proposal on the Phase III Employee Stock Ownership Plan (Draft) of Gree Electric Appliances
Inc. of Zhuhai. According to the regulations on the implementation of the 2023 annual equity distribution plan and the Phase III
employee stock ownership plan the Company held the 21st Meeting of the 12th Board of Directors and the 18th Meeting of the
12th Board of Supervisors on September 20 2024 to deliberate and approve the Proposal on Adjusting the Purchase Price in the
Phase III Employee Stock Ownership Plan Due to the Distribution of Dividends during the Execution Period . The Company
transferred 63195095 shares to the special account of the Phase III Employee Stock Ownership Plan of Gree Electric Appliances
Inc. of Zhuhai through a non-trading transfer on January 21 2025.
3. Other employee incentive measures
□ Applicable □Not Applicable
XII. Establishment and implementation of the internal control system during the reporting
period
1. Establishment and implementation of internal control
During the reporting period the Company established improved and effectively implemented internal control in accordance wi th
the provisions of the internal control system. The Board of Supervisors supervised the establishment and implementation of internal
control by the Board of Directors. The managers were responsible for the daily operation of internal control. The Company
maintained effective internal control in all major aspects in accordance with the requirements of the internal control system and
relevant regulations without any significant deficiencies in internal control in financial statements. The purpose of intern al control
is to ensure the legality and compliance of operation and management the safety of assets and the authenticity and completeness
of financial statements and related information improve operational efficiency and effectiveness and promote the realizatio n of
development strategies.
2. Details of significant deficiencies in internal control identified during the reporting period
□ Yes □No
XIII. Management and control of the subsidiaries during the reporting period
□ Applicable □Not Applicable
XIV. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
Date of disclosure of the full internal 2025/04/28
8 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
control evaluation report
Index of disclosure of the full internal
CNINFO (http://www.cninfo.com.cn/new/index)
control evaluation report
Proportion of the total assets of
companies included in the scope of
evaluation to the total assets in the 98.00%
Company's consolidated financial
statements
Proportion of the revenue of companies
included in the scope of evaluation to
95.00%
the revenue in the Company's
consolidated financial statements
Deficiency Identification Criteria
Category Financial Statements Non-financial Statements
For details please refer to the 2024 For details please refer to the 2024
Internal Control Self-evaluation Report Internal Control Self-evaluation Report
of Gree Electric Appliances Inc. of of Gree Electric Appliances Inc. of
Qualitative criteria
Zhuhai disclosed on CNINFO Zhuhai disclosed on CNINFO
(http://www.cninfo.com.cn/new/index) (http://www.cninfo.com.cn/new/index)
on April 28 2025 on April 28 2025
For details please refer to the 2024 For details please refer to the 2024
Internal Control Self-evaluation Report Internal Control Self-evaluation Report
of Gree Electric Appliances Inc. of of Gree Electric Appliances Inc. of
Quantitative criteria
Zhuhai disclosed on CNINFO Zhuhai disclosed on CNINFO
(http://www.cninfo.com.cn/new/index) (http://www.cninfo.com.cn/new/index)
on April 28 2025 on April 28 2025
Number of significant deficiencies in
0
the financial statements
Number of significant deficiencies in
0
the non-financial statements
Number of material deficiencies in the
0
financial statements
Number of material deficiencies in the
0
non-financial statements
2. Internal control audit report
□Applicable □ Not applicable
Deliberation Opinion in the Internal Control Audit Report
Based on the determination of significant deficiencies in internal control in the company's financial statements as of the base
date of the internal control evaluation report there were no significant deficiencies in internal control in financial state ments.The Board of Directors believes that the Company has maintained effective internal control in all major aspects of financial
statements in accordance with the requirements of the internal control system and relevant regulations.Disclosure of internal control audit report Disclosure
Date of disclosure of full internal control audit report 2025/04/28
Index of disclosure of the full internal control audit report CNINFO (http://www.cninfo.com.cn/new/index)
Type of internal control audit report opinions Standard unqualified opinion
Are there any significant deficiencies in the non-financial
No
statements
Does the accounting firm issue an internal control audit report with non-standard opinions
8 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
□ Yes □No
Are the opinions in the internal control audit report issued by the accounting firm consistent with those in the Board of Directors'
self-evaluation report
□Yes □No
XV. Rectification of self-inspection issues in the special governance of listed companies
Not applicable
8 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section V Environmental and Social Responsibility
I. Major environmental issues
Are the listed company and its subsidiaries listed as key pollutant discharge companies published by the environmental protec tion department
□Yes □No
Environmental protection policies and industry standards
During the production and operation process the Company and its subsidiaries strictly complied with the requirements of environ mental protection laws and regulations such as the
Environmental Protection Law of the People's Republic of China Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution Law of the People's
Republic of China on the Prevention and Control of Water Pollution Law of the People's Republic of China on the Prevention and Control of Solid Waste Pollution Law of the People's
Republic of China on Prevention and Control of Environmental Noise Pollution Law of the People's Republic of China on Prevention and Control of Soil Pollution and Environmental
Impact Assessment Law of the People's Republic of China and strictly followed the national local and industry environmental protection and emission standards such as Discharge Limits
of Water Pollutants (DB 44/26-2001) Emission Standard of Volatile Organic Compounds for Furniture Manufacturing Operations (DB 44/814-2010) Takeover Standard of Wastewater
Treatment Plant in West Area of Hefei Integrated Wastewater Discharge Standard (GB 8978-1996) Discharge Standard of Water Pollutants for Electroplating (DB 44/1597-2015) Emission
Standard of Volatile Organic Compounds for Printing Industry (DB 44/815-2010) Emission Limits of Air Pollutants (DB 44/27-2001) Emission Standard of Air Pollutants for Industrial
Kiln and Furnace (GB 9078-1996) Emission Standard of Volatile Organic Compounds for Surface Coating of Automobile Manufacturing Industry (DB 44/816-2010) Emission Standard of
Pollutants for Synthetic Resin Industry (GB 31572-2015) and Emission Standards for Odor Pollutants (GB 14554-1993).Administrative license for environmental protection
The Company and its subsidiaries strictly implemented the pollution discharge permit system and legally discharged pollutants within the specified scope.S/N Name of Company Application Date for the Pollution Discharge Permit Expiry Date
1 Gree Electric Appliances Inc. of Zhuhai 2025/02/07 2030/02/06
2 Gree (Hefei) Electric Appliances Co. Ltd. 2023/08/20 2028/08/19
3 Zhuhai Landa Compressor Co. Ltd. 2022/10/28 2027/10/27
4 Zhuhai Gree Xinyuan Electronics Co. Ltd. 2022/12/13 2027/12/12
5 Zhuhai Kaibang Motor Manufacturing Co. Ltd. 2023/06/19 2028/06/18
6 Gree (Zhongshan) Small Home Appliances Co. Ltd. 2020/06/04 2025/06/03
862024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Industry discharge standards and specific situations of pollutant discharge involved in production and business activities
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Phase III wastewater treatment
43.75 mg/L
plant
Phase IV wastewater treatment
Wastewater COD 3 12 mg/L 3.5407 t/a 23.4 t/a
plant
Phase VI wastewater treatment
11.25 mg/L Level II limit
plant
for Period II
Phase III wastewater treatment
1.01 mg/L of the
plant
Discharge
Ammonia Intermittent Phase IV wastewater treatment
Gree Wastewater 3 0.38 mg/L Limits of 0.0945 t/a 3.18 t/a
nitrogen discharge plant
Electric Water
Phase VI wastewater treatment
Appliances 0.30 mg/L Pollutants N/A
plant
Inc. of (DB 44/26-
Phase III wastewater treatment
Zhuhai 3.92 mg/L 2001)
plant
Phase IV wastewater treatment
Wastewater Total nitrogen 3 1.64 mg/L 0.3704 t/a 2.4 t/a
plant
Phase VI wastewater treatment
1.25 mg/L
plant
Exhaust emission port 02 0.73 mg/m3 Emission limit
Organized Exhaust emission port 03 1.38 mg/m3 in Table 1 for
Exhaust gas Total VOCs 16 5.4835 t/a 341.02 t/a
emission Exhaust emission port 04 1.54 mg/m3 Period II of
Exhaust emission port 05 0.87 mg/m3 Emission
8 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Exhaust emission port 06 0.74 mg/m3 Standard of
Exhaust emission port 07 2.03 mg/m3 Volatile
Exhaust emission port 08 1.86 mg/m3 Organic
Exhaust emission port 09 22 mg/m3 Compounds
Exhaust emission port 12 14.3 mg/m3 for Furniture
Exhaust emission port 15 /（停产） Manufacturin
Exhaust emission port 16 /（停产） g Operations
Exhaust emission port 17 2.59 mg/m3 (DB 44/814-
Exhaust emission port 18 5.71 mg/m3 2010) in
Guangdong
Exhaust emission port 20 0.94 mg/m3
Exhaust emission port 21 2.02 mg/m3
Exhaust emission port 22 0.39 mg/m3
Domestic wastewater treatment Level III
12 mg/L
plant criteria in the
Wastewater COD 2 0.4065 t/a 16.9426 t/a
Commercial wastewater treatment Takeover
20 mg/L
Gree plant Standard of
(Hefei) Domestic wastewater treatment Wastewater
Intermittent 0.078 mg/L
Electric plant Treatment N/A
Wastewater NH3-N discharge 2 0.0683 t/a 1.69246 t/a
Appliances Commercial wastewater treatment Plant in West
0.155 mg/L
Co. Ltd. plant Area of Hefei
Domestic wastewater treatment and Integrated
3.21 mg/L
Wastewater TN 2 plant Wastewater 0.0893 t/a 2.4178 t/a
Commercial wastewater treatment 4.36 mg/L Discharge
882024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
plant Standard (GB
8978-1996)
Continuous Wastewater treatment plant in Area 200% of
Wastewater Total zinc 1 0.076 mg/L 0.038 t/a 0.29 t/a
discharge C discharge
limits for
Pearl River
Delta in Table
2 of
Discharge
Intermittent Workshop wastewater pre- 0.00017
Wastewater Total nickel 1 0.0144 mg/L Standard of 0.015 t/a
discharge treatment discharge port (Area C) t/a
Water
Zhuhai
Pollutants for
Landa
Electroplating N/A
Compressor
(DB 44/1597-
Co. Ltd.
2015)
Electrophoresis drying exhaust Emission Pollutant
6.61 mg/m3
emission port 1 Standard of discharge
Electrophoresis drying exhaust Volatile permit
6.28 mg/m3
Organized emission port 2 Organic approval in
Exhaust gas Total VOCs 6 1.338 t/a
emission Painting exhaust emission port 1 7.13 mg/m3 Compounds 2024: Total
Painting exhaust emission port 2 3.72 mg/m3 for Printing VOCs from
Painting exhaust emission port 3 0.96 mg/m3 Industry (DB electrophoresi
Spray booth exhaust emission port 12.18 mg/m3 44/815-2010) s drying
892024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Emission exhaust gas
Standard of painting
Volatile exhaust gas
Organic and spray
Compounds booth exhaust
for Furniture gas: 2.49 t/a
Screen printing exhaust emission Manufacturin
(Stop production)
port g Operations
Injection molding exhaust emission (DB 44/814-
2.425 mg/m3
port 2010)
Hydrocarbon cleaning exhaust Emission
2.122 mg/m3
emission port Limits of Air
Cleaning & drying exhaust Pollutants Pollutant
1.78 mg/m3
emission port 1 (DB 44/27- discharge
7 Cleaning & drying exhaust 2001) 0.90 t/a permit in
2.04 mg/m3
emission port 2 Emission 2024: not
Cleaning & drying exhaust Standard of approved
2.48 mg/m3
emission port 3 Air Pollutants
for Industrial
Kiln and
Dip coating exhaust emission port 2.59 mg/m3 Furnace (GB
9078-1996)
Emission
9 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Standard of
Volatile
Organic
Compounds
for Surface
Coating of
Automobile
Manufacturin
g Industry
(DB 44/816-
2010)
Emission
Standard of
Pollutants for
Electroplating
(GB 21900-
2008)
Industrial wastewater discharge Level I
Zhuhai Intermittent Pollutant
Wastewater pH value 1 port 7.7 Criteria in /
Kaibang discharge discharge
WS-39214A Table 4 of
Motor permit in N/A
Industrial wastewater discharge Discharge
Manufacturi Intermittent 2024: not
Wastewater Chromaticity 1 port 5 times Limits of /
ng Co. Ltd. discharge approved
WS-39214A Water
912024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Industrial wastewater discharge Pollutants
Suspended Intermittent
Wastewater 1 port 4 mg/L (DB 44/26- 0.0320 t/a
solid discharge
WS-39214A 2001)
Industrial wastewater discharge
Intermittent
Wastewater COD 1 port 36 mg/L 0.2880 t/a
discharge
WS-39214A
Industrial wastewater discharge
Five-day Intermittent
Wastewater 1 port 10.2 mg/L 0.0816 t/a
BOD discharge
WS-39214A
Industrial wastewater discharge
Intermittent
Wastewater Phosphate 1 port 0.45 mg/L 0.0036 t/a
discharge
WS-39214A
Industrial wastewater discharge
Ammonia Intermittent
Wastewater 1 port 4.29 mg/L 0.0343 t/a
nitrogen discharge
WS-39214A
Industrial wastewater discharge
Intermittent
Wastewater Total nitrogen 1 port 4.64 mg/L 0.0371 t/a
discharge
WS-39214A
Industrial wastewater discharge
Intermittent
Wastewater Petroleum 1 port 0.37 mg/L 0.0030 t/a
discharge
WS-39214A
Particulate Organized Die-casting exhaust emission port Emission 34.2720
Exhaust gas 4 26 mg/m3
matter emission FQ-39214A1 limits (Period t/a
9 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
II) of
atmospheric
pollutants
from process
Melting aluminum exhaust exhaust gas in
emission port 23 mg/m3 Emission
FQ-39214A Limits of Air
Pollutants
(DB 44/27-
2001) in
Guangdong
Dip coating exhaust emission port Emission
27 mg/m3
FQ-39214B limits of
VOCs for
emission
pipes in
Emission
Industrial product center dip
Standard of
exhaust emission port 22 mg/m3
Volatile
FQ-39214G
Organic
Compounds
for Surface
Coating of
9 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Automobile
Manufacturin
g Industry
(DB 44/816-
2010) in
Guangdong
Die-casting exhaust emission port Emission
ND
FQ-39214A1 limits (Period
II) of
atmospheric
pollutants
from process
Melting aluminum exhaust exhaust gas in
emission port 4 mg/m3 Emission
Organized
Exhaust gas Sulfur dioxide 4 FQ-39214A Limits of Air 1.4387 t/a
emission
Pollutants
(DB 44/27-
2001) in
Guangdong
Dip coating exhaust emission port Emission
ND
FQ-39214B limits of
Industrial product center dip VOCs for
5 mg/m3
exhaust emission port emission
942024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
FQ-39214G pipes in
Emission
Standard of
Volatile
Organic
Compounds
for Surface
Coating of
Automobile
Manufacturin
g Industry
(DB 44/816-
2010) in
Guangdong
Die-casting exhaust emission port Emission
ND
FQ-39214A1 limits (Period
II) of
atmospheric
Nitrogen Organized
Exhaust gas 4 Melting aluminum exhaust pollutants 1.3293 t/a
oxide emission
emission port 3 mg/m3 from process
FQ-39214A exhaust gas in
Emission
Limits of Air
9 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Pollutants
(DB 44/27-
2001) in
Guangdong
Dip coating exhaust emission port
ND Emission
FQ-39214B
limits of
Industrial product center dip
VOCs for
exhaust emission port 7 mg/m3
emission
FQ-39214G
pipes in
Dip coating exhaust emission port
ND Emission
FQ-39214B
Organized Standard of
Exhaust gas Benzene 2 Industrial product center dip /
emission Volatile
exhaust emission port ND
Organic
FQ-39214G
Compounds
Dip coating exhaust emission port
1.68 mg/m3 for Surface
FQ-39214B
Toluene + Organized Coating of
Exhaust gas 2 Industrial product center dip 0.0628 t/a
Xylene emission Automobile
exhaust emission port 0.15 mg/m3
Manufacturin
FQ-39214G
g Industry
Dip coating exhaust emission port
46.5 mg/m3 (DB 44/816-
Organized FQ-39214B
Exhaust gas NMHC 2 2010) in 1.4129 t/a
emission Industrial product center dip
0.72 mg/m3 Guangdong
exhaust emission port
9 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
FQ-39214G
Dip coating exhaust emission port
<1 (grade)
Q-39214B
Ringelman Organized
Exhaust gas 2 Industrial product center dip /
emittance emission
exhaust emission port <1 (grade)
FQ-39214G
Dip coating exhaust emission port
18.2 mg/m3
FQ-39214B
Organized
Exhaust gas Total VOCs 2 Industrial product center dip 0.6553 t/a
emission
exhaust emission port 1.36 mg/m3
FQ-39214G
Organized exhaust gas after- Table 9
treatment monitoring port ND Enterprise
(FQ-11860) boundary air
Gree Organized exhaust gas after- pollutant
Pollutant
(Zhongshan treatment monitoring port ND emission
discharge
) Small Organized (FQ-11859) limits in
Exhaust gas Benzene 4 0.0041 t/a permit in N/A
Home emission Organized exhaust gas after- Emission
2024: not
Appliances treatment monitoring port 0.02 mg/m3 Standard of
approved
Co. Ltd. (FQ-008199) Pollutants for
Organized exhaust gas after- Synthetic
treatment monitoring port ND Resin Industry
(FQ-008198) (GB 31572-
972024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Organized exhaust gas after- 2015) and
treatment monitoring port 0.02 mg/m3 emission
(FQ-11860) limits for
Organized exhaust gas after- unorganized
treatment monitoring port 4.57 mg/m3 emission
Organized (FQ-11859) monitoring in
Exhaust gas Toluene 4 0.6052 t/a
emission Organized exhaust gas after- Period II of
treatment monitoring port 0.02 mg/m3 the Emission
(FQ-008199) Limits of Air
Organized exhaust gas after- Pollutants
treatment monitoring port 0.02 mg/m3 (DB 44/27-
(FQ-008198) 2001) in
Organized exhaust gas after- Guangdong
treatment monitoring port 0.01 mg/m3 whichever is
(FQ-11860) stricter
Organized exhaust gas after-
treatment monitoring port 0.04 mg/m3
Organized
Exhaust gas Xylene 4 (FQ-11859) 0.2816 t/a
emission
Organized exhaust gas after-
treatment monitoring port ND
(FQ-008199)
Organized exhaust gas after-
0.03 mg/m3
treatment monitoring port
9 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
(FQ-008198)
Organized exhaust gas after-
treatment monitoring port 0.11 mg/m3
(FQ-11860)
Organized exhaust gas after-
Organized
Exhaust gas VOCs 3 treatment monitoring port 42.5 mg/m3 4.3344 t/a
emission
(FQ-008199)
Organized exhaust gas after-
treatment monitoring port 0.22 mg/m3
(FQ-008198)
Organized exhaust gas after-
treatment monitoring port 19.5 mg/m3
Organized (FQ-11859)
Exhaust gas NMHC 2 2.6712 t/a
emission Organized exhaust gas after-
treatment monitoring port 0.52 mg/m3
(FQ-008198)
Monitoring port for oil fume and
Organized
Exhaust gas Oil fume 1 exhaust gas before treatment 0.3 mg/m3 0.09 t/a
emission
(FQ-11865)
Zhuhai Gree North of Building 2 roof: DA001 <20 mg/m3 Level II limit Pollutant
Xinyuan Particulate Organized North of Building 2 roof: DA004 <20 mg/m3 in Table 2 for discharge
Exhaust gas 3 / N/A
Electronics matter emission Period II of permit in
North of Building 2 roof: DA005 <20 mg/m3
Co. Ltd. Emission 2024: not
9 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Limits of Air approved
Pollutants
(DB 44/27-
2001)
Table 2
(emission
limits for
Period II) of
the Emission
Standard of
Volatile
Organic
Compounds
Organized
Exhaust gas NMHC 1 South of Building 2 roof: DA002 0.36 mg/m3 for Printing 0.0453 t/a
emission
Industry (DB
44/815-2010):
planographic
printing
(excluding
planographic
printing on
metal
ceramics and
10 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
glass) and
flexographic
printing
South of Building 2 roof: DA002 0.00415 mg/m3 Level II limit
in Table 2 for
Period II of
Tin and its Organized Emission
Exhaust gas 2 0.0002 t/a
compounds emission South of Building 2 roof: DA003 0.00479 mg/m3 Limits of Air
Pollutants
(DB 44/27-
2001)
Level II limit
in Table 2 for
Period II of
Lead and its Organized Emission 0.00005
Exhaust gas 1 South of Building 2 roof: DA003 0.0061 mg/m3
compounds emission Limits of Air t/a
Pollutants
(DB 44/27-
2001)
Table 2
Organized Northwest of Building 1 roof: Emission
Exhaust gas Ammonia 1 0.8 mg/m3 0.0241 t/a
emission DA006 standard value
of odor
10 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
pollutants of
Emission
Standards for
Odor
Pollutants
(GB 14554-
1993)
Sulfuric acid Organized Northwest of Building 2 roof: Level II limit
Exhaust gas 1 0.36 mg/m3 0.0074 t/a
mist emission DA007 in Table 2 for
Hydrogen Organized Northwest of Building 2 roof: Period II of
Exhaust gas 1 1.77 mg/m3 0.0127 t/a
chloride emission DA007 Emission
Limits of Air
Nitrogen Organized Northwest of Building 2 roof: Pollutants
Exhaust gas 1 0.7 mg/m3 0.0115 t/a
oxide emission DA007 (DB 44/27-
2001)
Organized Table 2
Exhaust gas TVOCs 1 North of Building 1 roof: DA008 2.28 mg/m3 0.0349 t/a
emission (emission
Toluene + Organized limits for
Exhaust gas 1 North of Building 1 roof: DA008 0.02 mg/m3 0.0080 t/a
Xylene emission Period II) of
the Emission
Organized Standard of
Exhaust gas Benzene 1 North of Building 1 roof: DA008 0.001 mg/m3 0.0004 t/a
emission Volatile
Organic
10 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
Compounds
for Printing
Industry (DB
44/815-2010):
planographic
printing
(excluding
planographic
printing on
metal
ceramics and
glass) and
flexographic
printing
Total nitrogen Intermittent
Wastewater 1.77 mg/L Level I limit 0.0251 t/a
(N) discharge
for Period II
Total
Intermittent of Discharge
Wastewater phosphorus Longshan No. 3 Road 0.10 mg/L 0.0017 t/a
discharge Limits of
(P) 1 industrial wastewater WS-124635:
Water
Ammonia DW001
Intermittent Pollutants
Wastewater nitrogen 1.56 mg/L 0.0118 t/a
discharge (DB 44/26-
(NH3-N)
2001)
Wastewater pH value Intermittent 7.0 /
10 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of
Name of
Major Pollutant
Name of Major Number of Total
Pollutant Discharge Discharge Discharge Total Excessive
Company or Pollutant and Discharge Distribution of Discharge Ports Approved
and Method Concentration/Intensity Standard Discharge Discharge
Subsidiary Particular Ports Discharge
Particular Implemented
Pollutant
Pollutant
discharge
Intermittent
Wastewater Total copper 0.04 mg/L 0.0005 t/a
discharge
Suspended Intermittent
Wastewater 25 mg/L 0.1532 t/a
solid discharge
Intermittent
Wastewater Petroleum 0.13 mg/L 0.0043 t/a
discharge
Intermittent
Wastewater COD 43 mg/L 0.6832 t/a
discharge
10 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Treatment of pollutants
1. Wastewater pollution prevention and control facilities
The Company and its subsidiaries are equipped with proper wastewater treatment facilities and full-time environmental
management operation and monitoring personnel in accordance with the environmental protection requirements of the
construction project. So far the systems are in normal operation and the discharge is conducted in a stable and standardized manner
without excessive discharge.
2. Exhaust gas pollution prevention and control facilities
The exhaust gas pollution prevention and control facilities of the Company and its subsidiaries operate normally and the indicators
of exhaust gas monitoring comply with national and local emission standards without excessive discharge.
3. Solid waste treatment and disposal facilities
The Company implements the classification and collection system of hazardous waste and entrusts the disposal to the organization
with a proper disposal qualification. General industrial solid wastes are handed over to resource recycling manufacturers for
recycling and disposal after being classified in the factory and there is no illegal disposal.Environment self-monitoring scheme
The Company and its subsidiaries formulate self-monitoring schemes according to the requirements of pollutant discharge permits
and environmental impact assessment and entrust third-party qualified testing organizations to carry out environmental monitoring.Online automatic monitoring is applied for key discharge ports and data is uploaded online to local ecological and environme ntal
authorities for real-time management.Environmental emergency plan
To implement the requirements of the national Measures on Environmental Emergency Management and related laws and
regulations deal with environmental emergencies in a timely orderly efficient and appropriate manner protect the personal safety
of the employees and reduce property losses the Company and its subsidiaries formulate an environmental emergency plan and
report it to the environmental protection department for filing.Investment in environmental governance and protection and payment of environmental protection taxes
Unit: CNY10000
Investment in Environmental Protection Environmental Protection
S/N Name of Company
and Governance Taxes Paid
1 Gree Electric Appliances Inc. of Zhuhai 465 8.16
2 Gree (Hefei) Electric Appliances Co. Ltd. 311 0.68
3 Zhuhai Landa Compressor Co. Ltd. 368 1.66
Zhuhai Gree Xinyuan Electronics Co.
4670.28
Ltd..Zhuhai Kaibang Motor Manufacturing Co.
52262.28
Ltd.Gree (Zhongshan) Small Home Appliances
6700.42
Co. Ltd.Measures taken to reduce carbon emissions and results during the reporting period
□Applicable □ Not applicable
The Company attaches great importance to energy conservation and emission reduction. With the vision of "making the sky bluer
10 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
and the earth greener" it has always adhered to the development concept of "lucid waters and lush mountains are invaluable assets"
and actively responded to the national "dual carbon (carbon peaking and carbon neutrality)" strategy. Additionally as a dome stic
"photovoltaic" and "zero-carbon" air conditioner technology leader it is committed to promoting clean and low-carbon energy
consumption in production and operation and creating a healthy and green quality of life for consumers and society.The Company has continuously performed the review of greenhouse gas emissions at the company level and implemented carbon
reduction measures including vigorously developing photovoltaic power generation constantly investing in energy-saving
technological transformation and continuously enhancing resource regeneration and recycling to effectively reduce the Compa ny's
total carbon emissions. In 2024 the Company implemented 392 energy-saving technological transformation projects reducing
electricity consumption by approximately 58344000 kWh natural gas consumption by 285000 m3 and carbon dioxide emissions
by 31925 t.In 2024 the Company utilized 708763000 kWh of nuclear power and 96850000 kWh of photovoltaic power with an increase of
245% compared to 2023 reducing carbon dioxide emissions by 51969.7 t. Combined with the lithium titanate energy storage
cabinet independently developed by GREE for load shifting 180 MWh of energy was stored and 75 million kWh of electricity
was shaved in peak.Administrative penalties for environmental issues during the reporting period
Impact on the
Name of
Reason for Production and Corrective
Company or Violation Penalty Results
Penalty Operation of Measures
Subsidiary
Listed Companies
//////
Other environmental information that should be disclosed
None.Other environmental protection information
None.II. Social responsibility
In 2024 Gree Electric Appliances actively fulfilled its responsibilities in environmental protection social responsibility and
corporate governance especially in intelligent manufacturing green innovation and safeguarding the rights and interests of
stakeholders and fulfilled the mission of promoting the sustainable development of the industry. (For details please refer to the
2024 Environmental Social and Governance (ESG) Report published by the Company on CNINFO
(http://www.cninfo.com.cn/new/index) on April 28 2025)
III. Consolidation and expansion of achievements in poverty alleviation and rural
revitalization
None.
10 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section VI Important Matters
I. Fulfillment of commitments
1. Commitments fulfilled by the actual controllers shareholders affiliated parties acquirers and the Company within the reporting period and
commitments not yet fulfilled by the end of the reporting period
□Applicable □ Not applicable
Reason for Commitment Commitment Commitment Commitment
Commitment Content Fulfillment
Commitment Party Type Date Period
Letter of Commitment on Maintaining the Independence of the Listed Company:
To ensure the independent operation of the listed company after this equity
transfer Zhuhai Mingjun Zhuhai Xianying and Zhuhai Yuxiu make the
following commitments: (I) Ensuring asset independence and completeness of
Zhuhai the listed company: 1. Gree Electric Appliances will possess the relevant
Mingjun production system auxiliary production system and supporting facilities for its
Investment business operations have the right to own or use the land workshop machines
Partnership and facilities relating to its business operations as well as its trademarks patent
(Limited technologies and know-how and have an independent purchase system of raw
Partnership); materials and sales system of products. 2. Gree Electric Appliances will have
Zhuhai Maintaining independent and complete assets and all of its assets will be independently
Commitments in the Xianying the controlled owned and operated by Gree Electric Appliances. 3. Zhuhai
Long-term
acquisition report or Equity independence Mingjun and other enterprises under its control will not illegally occupy or use 2019/12/02 In progress
effective
equity change report Investment of listed the assets of Gree Electric Appliances in any way or provide a guarantee for the
Partnership companies debts of Zhuhai Mingjun and other enterprises under its control with Gree
(Limited Electric Appliances' assets. (II) Ensuring the independence of the personnel of
Partnership); the listed company: 1. The labor personnel and remuneration management of
Zhuhai Gree Electric Appliances will be completely independent of its affiliated
Yuxiu enterprises. 2. The recommendation of directors supervisors and senior
Investment executives by the enterprise to Gree Electric Appliances will be made through
Co. Ltd. legal procedures and the decisions on personnel appointment and removal will
be made only upon approval by the meeting of the Board of Directors and the
general meeting of shareholders of Gree Electric Appliances. (III) Ensuring the
financial independence of the listed company: 1. Gree Electric Appliances will
establish an independent finance department and a standardized and
10 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
independent financial accounting system. 2. Gree Electric Appliances will open
bank accounts independently and will not share bank accounts with its affiliated
enterprises. 3. The financial personnel of Gree Electric Appliances will not
work part-time in its affiliated enterprises. 4. Gree Electric Appliances will pay
taxes independently in accordance with the law. 5. Gree Electric Appliances
will make independent financial decisions and the intended Transferee will not
illegally interfere with Gree Electric Appliances's fund utilization and
scheduling. (IV) Ensuring the independence of the organizational structure of
the listed company: 1. Gree Electric Appliances will establish a sound corporate
governance structure and will have an independent and complete organizational
structure. 2. The internal management bodies of Gree Electric Appliances will
exercise their powers and functions independently in accordance with laws
regulations and the Articles of Association of the Company. (V) Ensuring the
business independence of the listed company: 1. Gree Electric Appliances will
have the assets personnel qualifications and abilities to carry out business
activities independently and will have the ability to operate independently and
continuously in the market. 2. The enterprise will not interfere with the business
activities of Gree Electric Appliances except through the exercise of
shareholders' rights. 3. The enterprise and other enterprises under its control
will avoid horizontal competition with Gree Electric Appliances. 4. When the
enterprise and other enterprises under its control conduct necessary and
unavoidable affiliated transactions with Gree Electric Appliances the enterprise
will conduct fair operations according to the marketization principle and at fair
prices and perform transaction procedures and information disclosure
obligations in accordance with relevant laws and regulations and regulatory
documents. If any one of the above commitments is violated the enterprise will
bear all the liabilities arising therefrom and indemnify or hold harmless Gree
Electric Appliances from all direct or indirect losses.Zhuhai Letter of Commitment on Avoiding Horizontal Competition: To avoid horizontal
Mingjun competition with the listed company Zhuhai Mingjun Zhuhai Xianying and
Investment Zhuhai Yuxiu make the following commitments: 1. The enterprise and other
Partnership enterprises under its control the controlling shareholder and the actual
(Limited Avoiding controller of the enterprise will not engage in the same or similar business as
Long-term
Partnership); horizontal Gree Electric Appliances and its subsidiaries directly or indirectly in the future 2019/12/02 In progress
effective
Zhuhai competition to avoid constituting direct or indirect business competition with the business of
Xianying Gree Electric Appliances and its subsidiaries. 2. If other enterprises under the
Equity control of the enterprise expand their business scope they will take all possible
Investment measures to avoid horizontal competition with Gree Electric Appliances and its
Partnership subsidiaries on the principle of giving priority to safeguarding the rights and
10 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(Limited interests of Gree Electric Appliances. 3. If Gree Electric Appliances and its
Partnership); subsidiaries or related regulatory authorities determine that the enterprise and
Zhuhai other enterprises under its control are engaging in or will engage in any
Yuxiu business that constitutes horizontal competition with Gree Electric Appliances
Investment and its subsidiaries the enterprise will give up or urge the enterprise's direct or
Co. Ltd. indirect holding company to give up any business or business opportunities that
may result in horizontal competition or urge such business or business
opportunities to be provided with a priority to Gree Electric Appliances or its
wholly-owned and holding subsidiaries on a fair and reasonable basis or to be
transferred to other unrelated third parties. 4. If any one of the above
commitments is violated the enterprise will bear all the liabilities arising
therefrom and indemnify or hold harmless Gree Electric Appliances from all
direct or indirect losses.Letter of Commitment on Standardizing the Affiliated Transactions: To protect
the interests of public shareholders and maintain the sustainable and healthy
development of the listed company Zhuhai Mingjun Zhuhai Xianying and
Zhuhai Yuxiu make the following commitments: 1. The affiliated transactions
between the enterprise and other enterprises under its control and Gree Electric
Zhuhai
Appliances in the future will be conducted in fair according to the normal code
Mingjun
of business conduct and the enterprise will further regulate the affiliated
Investment
transactions with Gree Electric Appliances and its subsidiaries. 2. The
Partnership
enterprise will perform its obligations as a shareholder of Gree Electric
(Limited
Appliances in good faith and goodwill and for affiliated transactions that
Partnership);
cannot be avoided or exist on reasonable grounds it will sign a standard
Zhuhai
affiliated transaction agreement with Gree Electric Appliances in accordance
Xianying Standardizing
with the law and perform the approval procedures in accordance with relevant Long-term
Equity the affiliated 2019/12/02 In progress
laws regulations rules regulatory documents and the Articles of Association; effective
Investment transactions
the price of affiliated transactions will be determined according to fair and
Partnership
reasonable market prices and the price of affiliated transactions will be fair; it
(Limited
will perform the information disclosure obligations of affiliated transactions in
Partnership);
accordance with relevant laws regulations and the Articles of Association; it
Zhuhai
will not illegally transfer the funds and profits of Gree Electric Appliances or
Yuxiu
damage the interests of Gree Electric Appliances and affiliated shareholders
Investment
through affiliated transactions. 3. The enterprise and other enterprises under its
Co. Ltd.control will in accordance with the provisions of laws regulations and the
Articles of Association when deliberating affiliated transactions involving the
enterprise and other enterprises under its control strictly abide by the
avoidance procedure during the voting on affiliated transactions at the meeting
of the Board of Directors or the general meeting of shareholders of Gree
10 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Electric Appliances.Letter of Commitment on Maintaining the Independence of the Listed Company:
To ensure the independent operation of the listed company after this equity
transfer I make the following commitments: (I) Ensuring asset independence
and completeness of the listed company: 1. Gree Electric Appliances will
possess the relevant production system auxiliary production system and
supporting facilities for its business operations have the right to own or use the
land workshop machines and facilities relating to its business operations as
well as its trademarks patent technologies and know-how and have an
independent purchase system of raw materials and sales system of products. 2.Gree Electric Appliances will have independent and complete assets and all of
its assets will be independently controlled owned and operated by Gree
Electric Appliances. 3. Zhuhai Mingjun and other enterprises under its control
will not illegally occupy or use the assets of Gree Electric Appliances in any
way or provide a guarantee for the debts of Zhuhai Mingjun and other
enterprises under its control with Gree Electric Appliances' assets. (II) Ensuring
the independence of the personnel of the listed company: 1. The labor
personnel and remuneration management of Gree Electric Appliances will be
Maintaining
completely independent of its affiliated enterprises. 2. The recommendation of
the
Dong senior executives to Gree Electric Appliances will be made through legal Long-term
independence 2019/12/02 In progress
Mingzhu procedures. (III) Ensuring the financial independence of the listed company: 1. effective
of listed
Gree Electric Appliances will establish an independent finance department and
companies
a standardized and independent financial accounting system. 2. Gree Electric
Appliances will open bank accounts independently and will not share bank
accounts with its affiliated enterprises. 3. The financial personnel of Gree
Electric Appliances will not work part-time in its affiliated enterprises. 4. Gree
Electric Appliances will pay taxes independently in accordance with the law. 5.Gree Electric Appliances will make independent financial decisions and the
intended Transferee will not illegally interfere with Gree Electric Appliances's
fund utilization and scheduling. (IV) Ensuring the independence of the
organizational structure of the listed company: 1. Gree Electric Appliances will
establish a sound corporate governance structure and will have an independent
and complete organizational structure. 2. The internal management bodies of
Gree Electric Appliances will exercise their powers and functions
independently in accordance with laws regulations and the Articles of
Association of the Company. (V) Ensuring the business independence of the
listed company: 1. Gree Electric Appliances will have the assets personnel
qualifications and abilities to carry out business activities independently and
will have the ability to operate independently and continuously in the market. 2.
11 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Except through the exercise of shareholders' rights and the performance of
functions and duties of the Chairman/senior executive of the listed company I
will not interfere with the business activities of Gree Electric Appliances. 3. I
and other enterprises under my control will avoid substantial horizontal
competition with Gree Electric Appliances. 4. When conducting necessary and
unavoidable affiliated transactions with Gree Electric Appliances I and other
enterprises under my control will conduct fair operations according to the
marketization principle and at fair prices and perform transaction procedures
and information disclosure obligations in accordance with relevant laws and
regulations and regulatory documents. If any one of the above commitments is
violated I will bear all the liabilities arising therefrom and indemnify or hold
harmless Gree Electric Appliances from all direct or indirect losses.Letter of Commitment on Avoiding Horizontal Competition: I make the
following commitments: 1. I and other enterprises under my control will not
engage in the same or similar business with Gree Electric Appliances and its
subsidiaries directly or indirectly in the future to avoid possible direct or
indirect business competition with Gree Electric Appliances and its
subsidiaries. 2. If other enterprises under my control expand their business
scope they will take all possible measures to avoid horizontal competition with
Gree Electric Appliances and its subsidiaries on the principle of giving priority
to safeguarding the rights and interests of Gree Electric Appliances. 3. If Gree
Avoiding Electric Appliances and its subsidiaries or related regulatory authorities
Dong Long-term
horizontal determine that I and other enterprises under my control are engaging in or will 2019/12/02 In progress
Mingzhu effective
competition engage in any business that constitutes horizontal competition with Gree
Electric Appliances and its subsidiaries I will give up or urge my direct or
indirect holding company to give up any business or business opportunities that
may result in horizontal competition or urge such business or business
opportunities to be provided with a priority to Gree Electric Appliances or its
wholly-owned and holding subsidiaries on a fair and reasonable basis or to be
transferred to other unrelated third parties. 4. If any one of the above
commitments is violated I will bear all the liabilities arising therefrom and
indemnify or hold harmless Gree Electric Appliances from all direct or indirect
losses.
11 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Letter of Commitment on Standardizing the Affiliated Transactions: I make the
following commitments: 1. To ensure that the future affiliated transactions
between me and other enterprises under my control and Gree Electric
Appliances will be fair and conducted in accordance with the normal code of
business conduct; and that I commit to further standardize affiliated
transactions with Gree Electric Appliances and its subsidiaries. 2. I will
perform my obligations as a shareholder of Gree Electric Appliances in good
faith and goodwill and for affiliated transactions that cannot be avoided or
exist on reasonable grounds I will sign a standard affiliated transaction
agreement with Gree Electric Appliances in accordance with the law and
perform the approval procedures in accordance with relevant laws regulations
Standardizing
Dong rules regulatory documents and the Articles of Association; the price of Long-term
affiliated 2019/12/02 In progress
Mingzhu affiliated transactions will be determined according to fair and reasonable effective
transactions
market prices and the price of affiliated transactions will be fair; I will perform
the information disclosure obligations of affiliated transactions in accordance
with relevant laws regulations and the Articles of Association; I will not
illegally transfer the funds and profits of Gree Electric Appliances or damage
the interests of Gree Electric Appliances and affiliated shareholders through
affiliated transactions. 3. I and other enterprises under my control will in
accordance with the provisions of laws regulations and the Articles of
Association when deliberating affiliated transactions involving me and other
enterprises under my control strictly abide by the avoidance procedure during
the voting on affiliated transactions at the meeting of the Board of Directors or
the general meeting of shareholders of Gree Electric Appliances.
1. The Transferee commits that it will maintain the overall stability of the
management team of Gree Electric Appliances within the scope of its authority
upon completion of the transfer and that there will be no significant changes in
the governance structure of Gree Electric Appliances. 2. The Transferee
commits not to initiate any suggestion or proposal to relocate the headquarters
Zhuhai
and registered office of Gree Electric Appliances from Zhuhai during the period
Mingjun
of direct or indirect shareholding of Gree Electric Appliances and to actively
Investment Other Long-term
urge all parties to ensure that the headquarters and registered office of Gree 2019/12/02 In progress
Partnership commitments effective
Electric Appliances will not be relocated from Zhuhai; and if any shareholder
(Limited
proposes any suggestion or proposal to relocate the headquarters and registered
Partnership)
office of Gree Electric Appliances from Zhuhai the Transferee commits to
attend the general meeting of shareholders and to vote against such proposal. 3.The Transferee commits to spare no effort to make effective industrial
investment and strategic resource introduction for the economic development of
Zhuhai and to promote Gree Electric Appliances to make new contributions to
11 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
the sustainable and healthy economic development of Zhuhai. 4. Zhuhai
Mingjun commits to actively exercise the shareholders' voting right in the
general meeting of shareholders of the listed company involving dividend
payment and to urge its nominated directors to vote in favor of the resolution of
the Board of Directors on the dividend payment ratio of not less than 50% of
the annual net profit of the listed company.During the
period of
During the period of holding shares of Gree Electric Appliances the Company
Zhuhai Gree being a
Other will fully assume all reasonable expenses and economic losses (if any) incurred
Other commitments Group Co. 2019/06/14 shareholder In progress
commitments by Gree Electric Appliances due to the Company's termination of the residual
Ltd. of Gree
equity incentive plan.Electric
Appliances
Are commitments
Yes
fulfilled on time
If commitments are
not fulfilled within the
deadline specify the
Not applicable
reason for fulfillment
failure and the work
plan for the next step
11 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Explanation of assets or projects that achieve the original earnings forecast and relevant reasons when
the Company's assets or projects involve earnings forecast and the reporting period is still in the
earnings forecast period
□ Applicable □Not Applicable
II. Listed company's non-operating funds occupied by the controlling shareholders and
their affiliated parties
□ Applicable □Not Applicable
No controlling shareholder or its affiliated party occupied non-operating funds of the listed company during the reporting period
of the Company.III. Violation of external guarantees
□ Applicable □Not Applicable
The Company has no violation of external guarantees during the reporting period.IV. Statement by the Board of Directors on the latest Non-standard Audit Report
□ Applicable □Not Applicable
V. Statement by the Board of Directors Board of Supervisors and independent directors (if
any) on the Non-standard Audit Report of the accounting firm during the reporting period
□ Applicable □Not Applicable
VI. Description of changes in accounting policies accounting estimates or corrections of
significant accounting errors compared to the previous year's financial statements
Applicable □ Not Applicable
(1) Changes in major accounting policies
1) Interpretation No. 17 of Accounting Standards for Business Enterprises
On November 9 2023 the Ministry of Finance issued Interpretation No. 17 of Accounting Standards for Business Enterprises
(hereinafter referred to as "Interpretation No. 17"). The change in accounting policy did not have a significant impact on th e
financial indicators including total assets total liabilities net assets and net profits of the Company. Therefore the above
explanations have no significant impact on the financial statements of the Company.
2) Interpretation No. 18 of Accounting Standards for Business Enterprises
On December 31 2024 the Ministry of Finance issued Interpretation No. 18 of Accounting Standards for Business Enterprises
(hereinafter referred to as "Interpretation No. 18") which came into effect upon its issuance. The Company chooses to implement
this interpretation in advance from the year of its issuance (2024). The Company's provision for quality guarantees that do n ot fall
under individual performance obligations was originally recorded under "selling expenses". According to Article 2 "Accounting
for quality guarantees that do not fall under individual performance obligations" of Interpretation No. 18 it is now recor ded under
"main business cost" and "other business cost" presented in the "operating cost" of the income statement and subject to
11 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
retrospective adjustments.Currency: CNY
Item 2023
Sales Expenses -2327937473.10
Operating Cost 2327937473.10
(2) Changes in major accounting estimates
None.VII. Description of changes in the consolidated statement scope compared to the previous
year's financial statements
□Applicable □ Not applicable
1. Business combination not under common control
(1) Business combinations not under common control that occurred during the period
Currency: CNY
Time Point of Equity Equity
Name of the Equity
Equity Acquisition Acquisition Acquisition Date
Acquiree Acquisition Cost
Acquisition Proportion Method
Shanghai Datro
Automotive 2024/07/01 244597668.00 65.95% Purchase by cash 2024/07/01
Technology Co. Ltd.
(Continued)
Currency: CNY
Operating Income of Net Profit of the Cash Flow of the
Basis for Determining the Acquiree from the Acquiree from the Acquiree from the
Name of the Acquiree
the Acquisition Date Acquisition Date to Acquisition Date to Acquisition Date to
the End of the Period the End of the Period the End of the Period
Shanghai Datro
Automotive Acquisition of Control 50610255.50 -10890056.09 3852261.61
Technology Co. Ltd.On June 30 2024 the Company's wholly-owned subsidiary DunAn Environment acquired 62.95% of the equity of Shanghai Datro
Automotive Technology Co. Ltd. (hereinafter referred to as "Datro") through a cash transaction valued at CNY214.5977 million
and also increased its capital in Datro by CNY30 million. After the transaction was completed DunAn Environment held 65.95%
of the equity in Datro. DunAn Environment has completed the equity transfer and industrial and commercial change registration
procedures. Datro has been included in the consolidated scope of DunAn Environment.
(2) Cost of business combination and goodwill
Currency: CNY
Cost of Business Combination Amount
11 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Total cost of business combination 244597668.00
Including: Cash 244597668.00
Less: Fair value of the identifiable net assets acquired 62667044.92
Goodwill 181930623.08
DunAn Environment currently holds 65.95% of the equity in Datro. The enterprise merger cost is CNY244597668.00. The fair
value share of identifiable net assets attributable to the parent company shareholders obtained is CNY62667044.92. The
corresponding fair value of identifiable net assets was assessed by Zhonglian Appraisal Consulting (Shanghai) Co. Ltd. and an
assessment report with the number ZLHP Zi [2024] No. 20 was issued. The difference between the enterprise merger cost and the
fair value share of identifiable net assets attributable to the parent company shareholders of Datro forms goodwill of
CNY181930623.08.
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Currency: CNY
Shanghai Datro Automotive Technology Co. Ltd.Item Fair Value on the Book Value on the
Acquisition Date Acquisition Date
Assets:
Monetary Funds 5152822.52 5152822.52
Notes Receivable 715882.91 715882.91
Receivables 36803450.59 36803450.59
Receivables Financing 5824589.99 5824589.99
Advance Payments 1041919.28 1041919.28
Other Receivables 31512194.62 31512194.62
Inventory 20200520.76 17127908.27
Other Current Assets 2080550.17 2080550.17
Fixed Assets 34644958.89 32761348.70
Construction in Progress 7780042.42 7780019.35
Usufruct Assets 5801258.04 5801258.04
Intangible Assets 23614360.78 394064.49
Long-term Unamortized Expenses 2896776.52 2896776.52
Deferred Income Tax Assets 10437280.23 10437280.23
Other Non-current Assets 37924.20 37924.20
Liabilities:
Short-term Borrowings 39000000.00 39000000.00
Notes Payable 1487740.22 1487740.22
Payables 27451609.43 27451609.43
Contract Liabilities 18956.40 18956.40
Payroll Payable 2627612.49 2627612.49
Taxes and Dues Payable 12974.49 12974.49
Other Payables 1245.36 1245.36
Non-current Liabilities Due within One Year 4367779.95 4367779.95
Other Current Liabilities 2464.33 2464.33
11 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Long-term Borrowings 7000000.00 7000000.00
Lease Liabilities 3744872.39 3744872.39
Deferred Income 518000.00 518000.00
Deferred Income Tax Liabilities 7285908.39 241772.88
Net Assets 95025368.47 73892961.94
Less: Minority Shareholders' Equity 32358323.55 25162253.08
Net Assets Acquired 62667044.92 48730708.86
2. Business combination under the same control
None.
3. Reverse purchase
None.
11 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
4. Disposal of subsidiaries
Currency: CNY
Determinati Amount of
The
on Methods Other
Difference
Book Value Fair Value and Main Comprehensiv
Between the
of the of the Assumption e Income
Disposal Price Proportio
Remaining Remaining s of the Fair Related to
Basis for and the Share n of
Disposal Equity at Equity at Gains or Losses Value of the Equity
Disposal Determini of the Remainin
Disposal Price Methods the the Arising from Remaining Investment of
Time Point Ratio of the ng the Subsidiaries' g Equity
Name of of the Time of the Consolidate Consolidate Remeasurement Equity on the Original
of Losing Time Point Time Net Assets at on the
Subsidiary Point of Losing Time Point d Financial d Financial of Remaining the Date of Subsidiary
Control of Losing Point of the Level of Date of
Control of Losing Statement Statement Equity at Fair Losing Transferred
Control (%) Losing Consolidated Losing
Control Level on the Level on the Value Control at into
Control Statements Control
Date of Date of the Investment
Correspondin (%)
Losing Losing Consolidate Profits and
g to the
Control Control d Financial Losses or
Disposal
Statement Retained
Investment
Level Earnings
Shenyang
Water and Business
Heat Source 2024/01/25 1000001.00 56.00 Sale registrati -230233.67
Development on
Co. Ltd.Gree
(Chengdu) Business
Precision 2024/05/27 100.00 Cancelled registrati
Mold Co. on
Ltd.Gree Robot Business
(Luoyang) 2024/05/31 100.00 Cancelled registrati
Co. Ltd. on
Jilin
Songliang Business
Modern 2024/07/10 2000000.00 70.00 Sale registrati 2354547.19
Agricultural on
Development
11 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Co. Ltd.It was merged It was merged
and sold and sold
Jilin together with together with
Songliang its parent its parent
Business
Tianfuyu company Jilin company Jilin
2024/07/10 100.00 Sale registrati
Agricultural Songliang Songliang
on
Development Modern Modern
Co. Ltd. Agricultural Agricultural
Development Development
Co. Ltd. Co. Ltd.Gelan
Environment
Business
al Protection
2024/08/23 100.00 Cancelled registrati
Technology
on
(Shaoguan)
Co. Ltd.Datro
Business
(Weihai)
2024/09/13 65.95 Cancelled registrati
Auto Parts
on
Co. Ltd.Gree HVAC
Business
Equipment
2024/10/16 100.00 Cancelled registrati
(Chengdu)
on
Co. Ltd.Gree CNC
Machine Tool
Business
Research
2024/10/22 100.00 Cancelled registrati
Institute Co.on
Ltd. of
Zhuhai
11 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
5. Change of combination scope for other reasons
Newly established entity in the current period:
Currency: CNY
Net Profit from the
Date of Net Assets at the End
Name Combination Date to the
Establishment of the Period
End of the Period
DunAn International (Hong Kong)
2024/02/6
Company Limited
DunAn Hong Kong Industrial Co. Ltd. 2024/02/16
Zhuhai Gree Technology Management
2024/03/11932242.59-67757.41
Co. Ltd.Zhuhai Hengqin Gree Materials Supply
2024/03/29127406890.5627442815.56
Co. Ltd.Zhuhai Gree Medical Equipment Co.
2024/04/2262774.5762774.57
Ltd.Henan Gree Refrigeration and
2024/05/15178759.00178759.00
Washing Machine Sales Co. Ltd.Shanghai Gree Green Energy
2024/06/6-128016.30-149016.30
Technology Co. Ltd.Hebei Gree Refrigeration and Washing
2024/06/13389714.82389714.82
Machine Sales Co. Ltd.Shanghai Gree Auto Technology Co.
2024/10/113996764.92-3235.08
Ltd.Gree Green Resources Recycling
2024/09/12
(Linyi) Co. Ltd.Gree Digital Technology (Jieyang)
2024/12/3277073.26277073.26
Co. Ltd.Gree Digital Technology (Hunan) Co.
2024/12/31
Ltd.Gree Digital Technology (Hebei) Co.
2024/12/31
Ltd.Gree Digital Technology (Henan) Co.
2024/12/31
Ltd.VIII. Appointment and dismissal of accounting firms
Accounting firm currently appointed
Union Power Certified Public Accountants (Special
Name of domestic accounting firm
General Partnership)
Remuneration for the domestic accounting firm
396
(CNY10000)
Consecutive years for the domestic accounting firm to
10
render audit service
Name of certified public accountants of the domestic Qiu Yiwu Wang Huijun
12 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
accounting firm
Consecutive years for certified public accountants of
4 and 1
the domestic accounting firm to render audit service
Is the other accounting firm appointed for the current period
□ Yes □No
Appointment of an accounting firm for internal control audit financial adviser or sponsor
□Applicable □ Not applicable
During the year the Company appointed Union Power Certified Public Accountants (Special General Partnership)
as the accounting firm for the internal control audit of the Company.IX. Delisting after disclosure of the Annual Report
□ Applicable □Not Applicable
X. Matters related to bankruptcy reorganization
□ Applicable □Not Applicable
The Company was not involved in any matter related to bankruptcy reorganization during the reporting period.XI. Major legal action or arbitration
□ Applicable □Not Applicable
The Company was not involved in any major legal action or arbitration during the reporting period.XII. Punishment and rectification
□ Applicable □Not Applicable
The Company was not involved in any punishment or rectification during the reporting period.XIII. Integrity status of the Company and its controlling shareholder(s) and
actual controller(s)
□ Applicable □Not Applicable
12 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
IV. Significant affiliated transactions
1. Affiliated transactions associated with day-to-day operations
□Applicable □ Not applicable
Amount of Proportion to Approved Approved Settlement Available
Parties to Type of Content of Pricing Principles Price of
Affiliated Amount of Transaction Limit Method of Market Price Date of
Affiliated Association Affiliated Affiliated for Affiliated Affiliated Disclosure Index
Transactions Similar Amount Exceeded Affiliated of Similar Disclosure
Transactions Transactions Transactions Transactions Transactions
(CNY10000) Transactions (CNY10000) (Yes/No) Transactions Transactions
Company
where
Determined
Zhejiang directors of
through the Disclosed on CNINFO
Shengshi the Company Payment
Sale of negotiation Market (http://www.cninfo.com.cn/new/index)
Xinxing Gree act as Sale of goods 537743.69 3.17% 680000 No before Market price 2024/04/30
products between the two price on April 30 2024 with
Trade Co. executive delivery
parties based on Announcement No.: 2024-010
Ltd. directors and
the market price
general
managers
Company
Determined
Henan where
through the Disclosed on CNINFO
Shengshi directors of Payment
Sale of negotiation Market (http://www.cninfo.com.cn/new/index)
Xinxing Gree the Company Sale of goods 153585.76 0.90% 630000 No before Market price 2024/04/30
products between the two price on April 30 2024 with
Trade Co. act as delivery
parties based on Announcement No.: 2024-010
Ltd. executive
the market price
directors
Total -- -- 691329.45 -- 1310000.00 -- -- -- -- --
Details of large-amount sales return Not applicable
Actual fulfillment (if any) during the reporting period
when the total amount is estimated by category for the In fiscal year 2024 the Company expected that the total amount of daily affiliated transactions with the above-mentioned affiliated parties would not exceed CNY13.1
daily affiliated transaction that will incur in the current billion and the actual amount was CNY6.913 billion which did not exceed the expected amount.period
Cause for the large difference between transaction price
Not applicable
and market reference price (if applicable)
12 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Affiliated transactions of acquisition or sales of assets or equities
□ Applicable □Not Applicable
The Company was not involved in any affiliated transaction of acquisition or sales of assets or equities during the
reporting period.
3. Affiliated transactions of joint foreign investment
□ Applicable □Not Applicable
The Company was not involved in any affiliated transactions of joint foreign investment during the reporting
period.
4. Affiliated credits and debts
□ Applicable □Not Applicable
The Company was not involved in any affiliated credits or debts during the reporting period.
5. Transactions with affiliated finance companies
□ Applicable □Not Applicable
There was no deposit loan credit or other financial business between the Company and its affiliated financial
companies and affiliated parties.
6. Transactions between the financial company under the Company's control and the
affiliated parties
Applicable □ Not Applicable
Deposit business
Amount Incurred in the
Current Period
Daily
Maximum Deposit Beginning Total Total Ending
Affiliated
Association Deposit Interest Balance Amount Amount Balance
Parties
Limit Rate (CNY10000) Deposited in Withdrawn in (CNY10000)
(CNY10000) the Current the Current
Period Period
(CNY10000) (CNY10000)
Companies
held by
Zhejiang
directors of
Tongcheng
the
Gree
Company
Electric
or where a
Appliances —— —— 1.62 - 0.54 1.08
director of
Co. Ltd.the
and its
Company
holding
acts as
companies
board
chairman
Henan Company
Shengshi where —— —— 1.21 - 1.21 -
Xinxing directors of
12 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Gree Trade the
Co. Ltd. Company
act as
executive
directors
7. Other significant affiliated transactions
□ Applicable □Not Applicable
The Company was not involved in other significant affiliated transactions during the reporting period.XV. Significant contracts and their fulfillment
1. Information about trusteeship contracting and lease
(1) Trusteeship
□ Applicable □Not Applicable
The Company was not involved in any trusteeship during the reporting period.
(2) Contracting
□ Applicable □Not Applicable
The Company was not involved in any contracting during the reporting period.
(3) Lease
□ Applicable □Not Applicable
The Company was not involved in any lease during the reporting period.
12 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Significant guarantee
□Applicable □ Not applicable
Unit: CNY10000
External guarantees by the Company and its subsidiaries (excluding guarantees to subsidiaries)
Disclosure
Date of the Guarantee for
Actual Counter- Fulfillment
Object of Announcement Guarantee Actual Date Guarantee Collateral (if Affiliated
Guarantee guarantee Guarantee Period Completed
Guarantee Related to the Amount of Incurrence Type any) Parties
Amount (if any) (Yes/No)
Guarantee (Yes/No)
Amount
Guarantee of the Company to its subsidiaries
Disclosure
Date of the Guarantee for
Actual Counter- Fulfillment
Object of Announcement Guarantee Actual Date Guarantee Collateral (if Affiliated
Guarantee guarantee Guarantee Period Completed
Guarantee Related to the Amount of Incurrence Type any) Parties
Amount (if any) (Yes/No)
Guarantee (Yes/No)
Amount
Nanjing
Walsin Metal 70989.67 Pledged Note pool N/A No
Co. Ltd.Zhuhai Gree
Green Control
189.1 Pledged Note pool N/A No
Technology 1900000
Co. Ltd.Zhuhai Gree
Energy 2024/06/29
Environment 11038.11 Pledged Note pool N/A No
Technology
Co. Ltd.
12 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Gree
(Hangzhou)
Electric 7.68 Pledged Note pool N/A No
Appliances
Co. Ltd.Zhuhai Gree
Mechanical
and Electrical 3879.24 Pledged Note pool N/A No
Engineering
Co. Ltd.Zhuhai Gree
Intelligent
6616.53 Pledged Note pool N/A No
Equipment
Co. Ltd.Zhuhai Gree
Intelligent
Equipment
3824.02 Pledged Note pool N/A No
Technology
Institute Co.Ltd.Zhuhai Gree
Precision
16888.49 Pledged Note pool N/A No
Mold Co.Ltd.Zhuhai Gree
New Material 5293.58 Pledged Note pool N/A No
Co. Ltd.Gree
Intelligent
Equipment 2690.78 Pledged Note pool N/A No
(Wuhan) Co.Ltd.
12 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Gree (Linyi)
Electric
2962.09 Pledged Note pool N/A No
Appliances
Co. Ltd.Gree New
Material
Technology 2574.26 Pledged Note pool N/A No
(Ma'anshan)
Co. Ltd.Zhuhai Gree
Electronic
39863.68 Pledged Note pool N/A No
Components
Co. Ltd.Zhuhai Gree
Daikin
Precision 386.74 Pledged Note pool N/A No
Mold Co.Ltd.Changsha
Kinghome
Electric 891.41 Pledged Note pool N/A No
Appliances
Co. Ltd.Gree
(Nanjing)
Electric 131.88 Pledged Note pool N/A No
Appliances
Co. Ltd.Gree
(Luoyang)
Electric 100.28 Pledged Note pool N/A No
Appliances
Co. Ltd.
12 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Zhuhai Gree
Prefabricated
Vegetable
Equipment 7.49 Pledged Note pool N/A No
Technology
Development
Co. Ltd.Guochuang
Energy
Internet
Innovation 61.64 Pledged Note pool N/A No
Center
(Guangdong)
Co. Ltd.Zhuhai Landa
Compressor 7.55 Pledged Note pool N/A No
Co. Ltd.Hunan Green
Resources
22.38 Pledged Note pool N/A No
Recycling
Co. Ltd.Total amount incurred of
Total amount of guarantees to
guarantees to subsidiaries
subsidiaries approved during the 1900000 268838.16
during the reporting period
reporting period (B1)
(B2)
Total amount of guarantees to Total actual guarantee balance
subsidiaries approved at the end 1900000 to subsidiaries at the end of the 168426.60
of the reporting period (B3) reporting period (B4)
Guarantee of subsidiaries to subsidiaries
12 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Disclosure
Date of the Guarantee for
Actual Counter- Fulfillment
Object of Announcement Guarantee Actual Date Guarantee Collateral (if Affiliated
Guarantee guarantee Guarantee Period Completed
Guarantee Related to the Amount of Incurrence Type any) Parties
Amount (if any) (Yes/No)
Guarantee (Yes/No)
Amount
Three years from
Zhejiang the date of
DunAn expiration of the
Joint liability
Artificial 2024/06/28 30000 2024/09/28 30000 performance No No
guarantee
Environment period of the debt
Co. Ltd. under the master
contract
12 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
If the master
contract is a loan
contract the
guarantee period
under this
contract is three
years from the
day of expiration
of the loan term
under the master
Gree
contract; if the
Altairnano Joint liability
2022/12/29 435500 2023/11/13 31900 Yes N/A creditor No No
New Energy guarantee
announces the
Inc.early due of the
loan according to
the provisions of
the master
contract the
guarantee period
is three years
from the next day
of the early due
date of the loan.
13 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
From January 13
2023 to January
12 2028 the
creditor's rights
are formed by the
mortgagee and
Gree the debtor's
Altairnano Joint liability handling of
2023/01/13 50000 Yes N/A No No
New Energy guarantee various business
Inc. agreements. This
period is the
period for
determining the
maximum
amount of
secured debt.From the
effective date of
the guarantee
Zhuhai Gree contract to three
Altairnano years after the
Joint liability
Electric 2022/12/29 5600 N/A N/A date of expiration Yes No
guarantee
Appliance of the
Co. Ltd. performance
period of the debt
under the master
contract
13 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The creditor's
rights guaranteed
by the mortgagor
Zhuhai Gree
are during the
Altairnano
Joint liability period from July
Electric 2023/07/21 1000 Yes N/A Yes No
guarantee 21 2023 to
Appliance
January 21 2027
Co. Ltd.(including the
start date and
expiration date)
The guarantee
Zhuhai
period is from the
Guangtong
effective date of
Automobile
the master
Co. Ltd.contract to two
Chengdu
years after the
Guangtong Joint liability
2023/03/10 30000 N/A N/A date of expiration Yes No
Automobile guarantee
of the
Co. Ltd. and
performance
Tianjin Gree
period of the last
Altairnano
installment of the
New Energy
debt under the
Co. Ltd.master contract.
13 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
It is a series of
debts under the
financing
business initiated
by the debtor
Gree
through the bank
Altairnano Joint liability
2023/09/28 27000 Yes N/A network supply Yes No
New Energy guarantee
chain "E
Inc.Xintong" from
September 26
2023 to
September 25
2028.
Total amount incurred of
Total amount of guarantees to
guarantees to subsidiaries
subsidiaries approved during the 20000 175500
during the reporting period
reporting period (C1)
(C2)
Total amount of guarantees to Total actual guarantee balance
subsidiaries approved at the end 615500 to subsidiaries at the end of the 171900
of the reporting period (C3) reporting period (C4)
Total amount of company guarantee (i.e. total of the first three major items)
Total amount of guarantee Total amount of guarantee
approved during the reporting 1920000 incurred during the reporting 444338.16
period (A1+B1+C1) period (A2+B2+C2)
Total amount of guarantee Total actual guarantee balance
approved at the end of the 2515500 at the end of the reporting 340326.60
reporting period (A3+B3+C3) period (A4+B4+C4)
Proportion of actual total guarantees (i.e. A4+B4+C4) to the
2.48%
Company's net assets
Including:
Explanation of composite guarantee
13 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
3. Entrusting cash asset management
(1) Entrusted financial management
□Applicable □ Not applicable
Overview of entrusted financial management during the reporting period
Unit: CNY10000
Source of Funds for Amount Incurred of Impaired Amount for
Overdue Uncollected
Type Entrusted Financial Entrusted Financial Undue Balance Overdue Uncollected
Amount
Management Management Amount
Bank financial products Own funds 424683.40 402511.02
Trust financial products Own funds 234365.64 215478.93
Securities traders' financial
Own funds 1311032.58 1230055.97
products
Total 1970081.62 1848045.92
Situation of high-risk entrusted financial management with large individual amounts or low security and poor liquidity
□ Applicable □Not Applicable
Expected inability to recover principal or other situations that may lead to impairment in entrusted financial management
□ Applicable □Not Applicable
(2) Entrusted loan
□ Applicable □Not Applicable
The Company was not involved in any entrusted loan during the reporting period.
4. Other significant contracts
□ Applicable □Not Applicable
13 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The Company did not enter into any other significant contracts during the reporting period.XVI. Description of other significant matters
□ Applicable □Not Applicable
There were no other significant matters to be disclosed during the reporting period.XVII. Significant matters of the Company's subsidiaries
□ Applicable □Not Applicable
13 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section VII. Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before Change Increase or Decrease (+ -) After Change
Shares
Converted from
Quantity Percentage New Issue Bonus Issue Others Subtotal Quantity Percentage
Capital
Reserves
I. Shares with
trading 85959485 1.53% 496442 496442 86455927 1.54%
restrictions
1. Shares held
by the State
2. Shares held
by state-owned
legal person
3. Shares held
by other
domestic- 85959485 1.53% 496442 496442 86455927 1.54%
funded
enterprises
Including:
Shares held by
13 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
domestic legal
person
Shares held by
domestic 85959485 1.53% 496442 496442 86455927 1.54%
natural person
4. Shares held
by foreign-
funded
enterprises
Including:
Shares held by
foreign legal
person
Shares held by
foreign natural
person
II. Shares
without trading 5545446256 98.47% -30496442 -30496442 5514949814 98.46%
restrictions
1. RMB
554544625698.47%-30496442-30496442551494981498.46%
common share
2. Domestically
listed foreign
shares
3. Overseas
listed foreign
shares
4. Others
III. Total
5631405741100.00%-30000000-300000005601405741.00100.00%
number of
13 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
shares
Causes for changes in shares
□Applicable □ Not applicable
On October 17 2024 the total share capital of the Company and the number of circulating shares without trading restrictions changed from 5631405741 shares to 5601405741 shares as a
result of the cancellation of shares in the special securities account for repurchase. For details please refer to the Announcement on the Completion of Share Repurchase Cancellation and the
Change in Stockholder's Equity (Announcement No.: 2024-037) on CNINFO (http://www.cninfo.com.cn/new/index) and designed media.The increase in restricted shares this time is due to the increase in locked shares after the resignation of senior executives.Approval of changes in shares
□Applicable □ Not applicable
On August 2 2024 the Company held the 19th Meeting of the 12th Board of Directors and the 16th Meeting of the 12th Board of Supervisors to deliberate and approve the Proposal on Changing
the Purpose of Some Repurchased Shares and Canceling and Reducing the Company's Registered Capital agreeing to change the purpose of 30000000 repurchased shares deposited in the
special securities account for repurchase. The original plan was changed from "for implementing the company's equity incentive or employee stock ownership plan" to "for cancellation and
reduction of registered capital" and 30000000 shares were canceled and the corresponding registered capital was reduced.The aforementioned proposal has been deliberated and approved at the 1st Extraordinary General Meeting of Shareholders in 2024 of the Company held on August 19 2024. The Company has
canceled 30000000 shares in total and after this share cancellation the total share capital of the Company was changed from 5631405741 shares to 5601405741 shares. For details please
refer to the Announcement of Gree Electric Appliances Inc. of Zhuhai on Changing the Purpose of Some Repurchased Shares and Cancelling and Reducing the Company's Registered Capital
(Announcement No.: 2024-025) disclosed on CNINFO (http://www.cninfo.com.cn/new/index) and designated media.
Transfer of share changes
□ Applicable □Not Applicable
Impact of share changes on financial indicators such as basic earnings per share diluted earnings per share and net assets per share attributable to common shareholders of the Company for the
latest year and the latest period
□√ Applicable □Not Applicable
Other information deemed necessary by the Company or required to be disclosed by the securities regulatory authority
□ Applicable □Not Applicable
13 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Changes in restricted shares
□Applicable □ Not applicable
Unit: share
Number of Number of
Number of Number of
Restricted Restricted
Restricted Restricted
Name of Shares Shares Lifted Reasons for Date of
Shares at the Shares at the
Shareholder Increased in in the Restriction Lifting
Beginning of End of the
the Current Current
the Period Period
Period Period
Dong Senior executive
408663693473250075598869-
Mingzhu share lockup
Senior executive
Zhang Wei 137496 225000 362496 -
share lockup
Senior executive
Deng Xiaobo 87450 233250 320700 -
share lockup
Duan Senior executive
452869452869-
Xiufeng share lockup
Senior executive
Wang Fawen 38516 22500 61016 -
share lockup
Senior executive
Zhuang Pei 4781591 1893864 6675455 -
share lockup
Tan Senior executive
13393276464421985769-
Jianming share lockup
Senior executive
Shu Lizhi 74789 86250 161039 -
share lockup
Liao Senior executive
58247172500230747-
Jianxiong share lockup
Fang Senior executive
419467187500606967-
Xiangjian share lockup
Total 48256121 38199806 0 86455927 -- --
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the reporting period
□ Applicable □Not Applicable
2. Description of changes in the Company's total number of shares and shareholder
structure and asset and liability structure
□Applicable Not applicable
3. Existing internal employee share
□ Applicable □Not Applicable
13 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
III. Shareholders and actual controllers
1. Number of shareholders and their shareholding status
Unit: share
Total number
of common Total number of
Total number of preferred
shareholders preferred
shareholders with restored voting
Total number of common as of the end shareholders with
rights (if any) at the end of the
shareholders at the end of 426379 of the previous 405720 restored voting rights 0 0
previous month before the
the reporting period month before (if any) at the end of
disclosure date of the Annual
the disclosure the reporting period
Report (See Note 8)
date of the (See Note 8)
Annual Report
Shareholdings of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through refinancing)
Number of Pledge Tag or Freezing
Number of Shares Increase/Decrease Shares With Number of Shares
Nature of Shareholding
Name of Shareholder Held at the End of the During the Reporting Trading Without Trading
Shareholder Proportion Share
Reporting Period Period Restrictions Restrictions Held Quantity Status
Held
Domestic
Zhuhai Mingjun non-state-
Investment Partnership owned 16.11% 902359632 - 0 902359632 Pledged 902359632
(Limited Partnership) legal
person
Foreign
Hong Kong Securities Not
legal 7.72% 432591015 -183991979 0 432591015 0
Clearing Company Ltd. applicable
person
Jinghai Internet Domestic
Not
Technology Development non-state- 7.01% 392442954 6399916 0 392442954 0
applicable
Co. Ltd. owned
14 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
legal
person
State-
Zhuhai Gree Group Co. owned Not
3.46%193895992-01938959920
Ltd. legal applicable
person
Domestic
non-state-
China Securities Finance Not
owned 3.21% 179870800 - 0 179870800 0
Corporation Limited applicable
legal
person
Domestic
Not
Dong Mingzhu natural 1.80% 100798492 46310000 75598869 25199623 0
applicable
person
Industrial and Commercial
Not
Bank of China — Huatai- Others 1.38% 77336621 43768000 0 77336621 0
applicable
PineBridge CSI 300 ETF
China Construction Bank
Not
— E Fund CSI 300 Others 0.95% 53361260 40785371 0 53361260 0
applicable
Initiated ETF
Industrial and Commercial
Not
Bank of China — China Others 0.63% 35470581 26242800 0 35470581 0
applicable
AMC CSI 300 ETF
New China Life Insurance
Co. Ltd. — Traditional — Not
Others 0.61% 33944432 Unknown 0 33944432 0
General insurance applicable
products — 018L CT001
Situation (if any) where a strategic
investor or general legal person becomes
N/A
one of the top 10 shareholders due to
placement of new shares (see Note 3)
Description of association or concerted Zhuhai Mingjun Investment Partnership (Limited Partnership) and Dong Mingzhu are the persons acting in concert. Except for that the
action of the above shareholders Company does not know whether there is an association between the above shareholders or whether they are persons acting in concert.
14 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Description of the above-mentioned
shareholders’ involvement in
N/A
entrusting/being entrusted with and
waiving voting rights
Description of the existence of repurchase
Gree Electric Appliances Inc. of Zhuhai held 79462095 shares in the special securities account for repurchase at the end of the reporting
accounts among the top 10 shareholders
period with a shareholding ratio of 1.42%.(if any) (see Note 10)
Shareholding of the top 10 shareholders of shares without trading restrictions (excluding shares lent through refinancing or lock-up shares of senior executives)
Type of Shares
Name of Shareholder Number of Shares without Trading Restrictions Held at the End of the Reporting Period Type of
Quantity
Shares
RMB
Zhuhai Mingjun Investment Partnership
902359632 common 902359632
(Limited Partnership)
share
RMB
Hong Kong Securities Clearing Company
432591015 common 432591015
Ltd.share
RMB
Jinghai Internet Technology
392442954 common 392442954
Development Co. Ltd.share
RMB
Zhuhai Gree Group Co. Ltd. 193895992 common 193895992
share
RMB
China Securities Finance Corporation
179870800 common 179870800
Limited
share
RMB
Industrial and Commercial Bank of China
77336621 common 77336621
— Huatai-PineBridge CSI 300 ETF
share
RMB
China Construction Bank — E Fund CSI
53361260 common 53361260
300 Initiated ETF
share
14 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
RMB
Industrial and Commercial Bank of China
35470581 common 35470581
— China AMC CSI 300 ETF
share
New China Life Insurance Co. Ltd. — RMB
Traditional — General insurance 33944432 common 33944432
products — 018L CT001 share
RMB
Bank of China — Harvest Fund CSI 300
33609373 common 33609373
ETF
share
Description of the association or
concerted action between the top 10
shareholders of circulating shares without
Zhuhai Mingjun Investment Partnership (Limited Partnership) and Dong Mingzhu are the persons acting in concert. Except for that the
trading restrictions as well as between
Company does not know whether there is an association between the above shareholders or whether they are persons acting in concert.the top 10 shareholders of circulating
shares without trading restrictions and the
top 10 shareholders
Description of the top 10 common
shareholders in securities margin trading N/A
(if any) (see Note 4)
Description of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of circulating shares without trading restrictions in lending shares through
refinancing
□Applicable □ Not applicable
Unit: share
Description of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of circulating shares without trading restrictions in lending shares
through refinancing
Shares Lent Through Refinancing at
Ordinary Account and Credit Account Ordinary Account and Credit Account Shares Lent Through Refinancing at the
Name of the Beginning of the Period and Not
Holdings at the Beginning of the Period Holdings at the End of the Period End of the Period and Not Yet Repaid
Shareholder (Full Yet Repaid
Name) Proportion to Proportion to Proportion to Proportion to
Total Quantity Total Quantity Total Quantity Total Quantity
Total Share Total Share Total Share Total Share
14 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Capital Capital Capital Capital
Industrial and
Commercial Bank
of China — China 9227781 0.16% 514500.00 0.01% 35470581 0.63% 0 0.00%
AMC CSI 300
ETF
China
Construction
Bank — E Fund 12575889 0.22% 67400.00 0.00% 53361260 0.95% 0 0.00%
CSI 300 Initiated
ETF
Industrial and
Commercial Bank
of China —
335686210.60%20300.000.00%773366211.38%00.00%
Huatai-
PineBridge CSI
300 ETF
Change compared with the previous period due to the lending/repayment through refinancing of the top 10 shareholders and the top 10 shareholders of circulating shares without trading
restrictions
□ Applicable □Not Applicable
Do the top 10 common shareholders and top 10 common shareholders without trading restrictions of the Company conduct agreed repurchase transactions during the reporting period
□ Yes □No
The top 10 common shareholders and top 10 common shareholders without trading restrictions of the Company didn't conduct agreed repurchase transactions during the reporting period.
14 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Company's controlling shareholder
Nature of controlling shareholder: No controlling entity
Type of controlling shareholder: No controlling shareholder
Description of no controlling shareholder for the Company
On December 2 2019 Gree Group signed the Share Transfer Agreement Between Zhuhai Gree Group Co. Ltd. and
Zhuhai Mingjun Investment Partnership (Limited Partnership) on 15% of the Shares of Gree Electric Appliances
Inc. of Zhuhai with Zhuhai Mingjun to transfer 902359632 shares of the listed company to Zhuhai Mingjun. After
the transaction was completed Zhuhai Mingjun the single largest shareholder and Dong Mingzhu the person acting
in concert could not pass specific resolutions based on their actual voting rights of the listed company's shares so
they had no significant impact on the resolutions of the general meeting of shareholders of the listed company or a
sole discretion for the election of more than half of the members of the Board of Directors of the listed company.Therefore the listed company had no controlling shareholders and actual controllers. For details please refer to the
Reply to the Inquiry Letter from Shenzhen Stock Exchange disclosed by the Company on CNINFO
(http://www.cninfo.com.cn/new/index) on January 18 2020.Change in controlling shareholder during the reporting period
□ Applicable □Not Applicable
There was no change in the controlling shareholder of the Company during the reporting period.
3. Actual controller of the Company and its person acting in concert
Nature of the actual controller: No actual controller
Type of the actual controller: No actual controller
Description of no actual controller for the Company
On December 2 2019 Gree Group signed the Share Transfer Agreement Between Zhuhai Gree Group Co. Ltd. and
Zhuhai Mingjun Investment Partnership (Limited Partnership) on 15% of the Shares of Gree Electric Appliances
Inc. of Zhuhai with Zhuhai Mingjun to transfer 902359632 shares of the listed company to Zhuhai Mingjun. After
the transaction was completed Zhuhai Mingjun the single largest shareholder and Dong Mingzhu the person acting
in concert could not pass specific resolutions based on their actual voting rights of the listed company's shares so
they had no significant impact on the resolutions of the general meeting of shareholders of the listed company or a
sole discretion for the election of more than half of the members of the Board of Directors of the listed company.Therefore the listed company had no controlling shareholders and actual controllers. For details please refer to the
Reply to the Inquiry Letter from Shenzhen Stock Exchange disclosed by the Company on CNINFO
(http://www.cninfo.com.cn/new/index) on January 18 2020.Are there shareholders with a shareholding ratio of more than 10% at the ultimate control level of the Company
□Yes □No
□Legal person □ Natural person
Shareholding at the ultimate control level
Name of
Shareholder at the Legal Date of Organization
Main Business
Ultimate Control Representative/Head Establishment Code
Level
Zhuhai Mingjun Zhuhai Xianying 91440400MA4 General project: Equity
2017/05/11
Investment Equity Investment WJBCR4W investment investment
14 52024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Partnership Partnership (Limited management asset
(Limited Partnership) management and other
Partnership) businesses through
privately offered funds
(businesses can only be
carried out after
registration and filing with
the Asset Management
Association of China).
(Except for projects that
require approval by law
businesses can be carried
out independently
according to the business
license.) (Businesses that
require approval by law
can only be carried out
after approval by the
relevant departments.)
Equity of other
domestic and
overseas listed
companies
controlled by the N/A
shareholder at the
ultimate control
level during the
reporting period
Change in the actual controller during the reporting period
□ Applicable □Not Applicable
There was no change in the actual controller of the Company during the reporting period.Block diagram of the property rights and control relationship between the Company and the actual controller
The company has no actual controller
Control of the Company through a trust or other asset management methods by the actual controller
□ Applicable □Not Applicable
4. Cumulative number of shares pledged by the controlling shareholder or the largest
shareholder of the Company and its persons acting in concert reaching 80% of the number
of shares held by them in the Company
□Applicable □ Not applicable
Impact on
Risk of the
Total Amount Debt Stability
Source of
Type of of Stock Pledge Repayment Repayment of the
Name Purpose Repayment
Shareholder Financing Period or Closing a Control of
Funds
(CNY10000) Position the
(Yes/No) Company
(Yes/No)
Zhuhai The largest 1461500 Repayment 2027/04/30 Own and No No
14 62024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Mingjun shareholder of original self-raised
Investment loan funds
Partnership
(Limited
Partnership)
5. Other corporate shareholders holding more than 10% of shares
□ Applicable □Not Applicable
6. Restrictions on shareholding reduction by controlling shareholders actual controllers
restructuring parties and other commitment entities
□ Applicable □Not Applicable
IV. Implementation of share repurchase during the reporting period
Implementation progress of share repurchase
□ Applicable □Not Applicable
Implementation progress of reducing holdings of repurchased shares through centralized bidding
□ Applicable □Not Applicable
14 72024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section VIII Preferred Share Information
□ Applicable □Not Applicable
The Company did not have any preferred shares during the reporting period.
14 82024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section IX Bond Information
□ Applicable □Not Applicable
14 92024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section X Financial Statements
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report 2025/04/25
Union Power Certified Public Accountants (Special
Name of audit institution
General Partnership)
Number of audit report ZHSZ (2025) No. 0500119
Name of certified public accountant Qiu Yiwu Wang Huijun
Audit report text
Audit Report
ZHSZ (2025) No. 0500119
All shareholders of Gree Electric Appliances Inc. of Zhuhai:
I. Audit opinion
We have audited the financial statements of Gree Electric Appliances Inc. of Zhuhai (hereinafter
referred to as "your company") including the Consolidated and Company's Balance Sheets as of
December 31 2024 and 2024 Consolidated and Company's Income Statements 2024 Consolidated
and Company's Cash Flow Statements 2024 Consolidated and Company's Statements of Changes
in Shareholders' Equity and Notes to Financial Statements.In our opinion the attached financial statements have been prepared in all material aspects in
accordance with the Accounting Standards for Business Enterprises and fairly reflected the
consolidated and Company's financial position of your company as of December 31 2024 and the
consolidated and Company's operating results and cash flows in 2024.II. Basis for forming audit opinions
We have conducted our audit work according to the provisions of the Audit Standards for Certified
Public Accountants of China. The part of "CPA's responsibility for the audit of financial statements"
in the audit report describes our responsibilities under these standards. In accordance with the Code
of Ethics for Certified Public Accountants of China we are independent of your company and
perform other responsibilities in terms of professional ethics. We believe that the audit evidence
obtained by us is sufficient and appropriate providing a basis for expressing our audit opinion.III. Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in
the audit of the financial statements of the current period. The response to these matters is based on
the overall audit of the financial statements and the formation of audit opinions. We do not give
15 02024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
separate opinions on these matters.(I) Accrual of inventory falling price reserves
Key audit matters Coping methods
Refer to Note III. 14 Note V. 11 and Note 1. Understand evaluate and test the effectiveness
V. 65 in the financial statements. of the design and execution of internal controls
related to the recognition of inventory falling
As of December 31 2024 the book value
price reserves.of inventory in your company's
consolidated balance sheet was 2. Evaluate the significant judgments assumptions
CNY27910910500 wherein the book and estimates involved in management's
balance of inventory was calculation of net realizable value and review the
CNY31783345100 and the inventory basis and documents on which management
falling price reserves were determines the future selling price of the
CNY3872434500. inventory the costs incurred until completion (if
related) the sales expenses and the related taxes
Recognition of the inventory falling price
and fees.reserves depends on the estimation of the
net realizable value of the inventory. For 3. Carry out audit procedures such as inspection
recognition of the net realizable value of and recalculation. Especially for the
the inventory the management should determination of the net realizable value of the
estimate the future selling price of inventory recalculate according to relevant data.inventory the costs (if related) to be
4. Analyze and review the inventory aging to
incurred until completion the sales
determine whether the accrual of inventory
expenses and the related taxes and fees. In
falling price reserves is sufficient.consideration of the importance of
recognition of the inventory and inventory 5. Supervise the inventory-taking and during the
falling price reserves to the consolidated supervising process in addition to paying
financial statements and the complicated attention to the authenticity and accuracy of the
calculation process of inventory falling inventory focus on the usage status of the
price reserves and significant judgments inventory to check whether there is inventory in
assumptions and estimates of the a stagnant or defective condition and to evaluate
management involved during the the adequacy of the accrual of inventory falling
determination of the net realizable value of price reserves.the inventory there may be error or
6. Review the adequacy of the disclosure of
potential management bias. Therefore we
information related to inventory falling price
identified it as a key audit matter for your
reserves in Note III. 14 Note V. 11 and Note V.company.
65 in the financial statements.
(II) Revenue recognition
15 12024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Key audit matters Coping methods
Please refer to Note III. 32 and Note V. 54 1. Understand evaluate and test the effectiveness
in the financial statements. of the design and execution of internal controls
related to revenue recognition.In the 2024 and 2023 consolidated financial
statements of your company the revenue 2. Review sales contract samples understand the
from selling goods was delivery terms of the transaction and evaluate
CNY189163654100 and whether the business model is consistent with
CNY203979266400 respectively with revenue recognition whether the sales contract
an increase of 7.26% year-on-year. terms comply with industry practices and
whether the revenue recognition accounting
Since the amount is significant and revenue
policies comply with the requirements of
is one of the key business indicators of your
Accounting Standards for Business Enterprises.company and whether it is based on real
transactions and whether it is included in 3. Check the original supporting documents related
the appropriate accounting period has a to revenue recognition such as orders delivery
significant impact on the financial notes and arrival receipts based on audit
statements we consider revenue sampling to evaluate whether revenue has truly
recognition as a key audit matter. been incurred and whether it has been recognized
according to accounting policies.
4. Implement the letter verification procedure and
check the original documents and payment status
for discrepancies in the response letter to
evaluate the accuracy and authenticity of the
revenue amount incurred.
5. Carry out an analysis program to analyze from
different dimensions such as monthly
fluctuations sales regions product categories
and product profit margins to verify the
reasonableness of the transaction.
6. Carry out cut-off test program and post-test
program to check for any revenue intertemporal
or sales return to address revenue intertemporal.
7. Review the adequacy of the disclosure of
information related to revenue recognition in
Note III. 32 and Note V. 54 in the financial
statements.IV. Other information
The management of your company is responsible for other information. The other information
comprises the information included in the 2024 Annual Report other than the financial statements
15 22024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
and our auditor’s report thereon.Our audit opinions on financial statements do not cover any other information and we do not
express any form of assurance thereon.In connection with our audit of the financial statements our responsibility is to read other
information identified above and in doing so consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the
other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of management and governance for financial statements
The management of your company (hereinafter referred to as the "management") is responsible for
preparing the financial statements in accordance with the requirements of Accounting Standards for
Business Enterprises to achieve a fair presentation and for designing implementing and
maintaining internal control that is necessary to ensure that the financial statements are free from
material misstatements whether due to frauds or errors.When preparing financial statements the management is responsible for evaluating your company's
ability to continue as a going concern disclosing matters related to going concern (if applicable)
and applying the assumption of going concern unless the management plans to liquidate your
company cease operations or has no other realistic choice.The governance is responsible for overseeing your company's financial reporting process.VI. CPA's responsibilities for the audit of the financial statements
Our objective is to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatements caused by fraud or error and to issue an audit report containing
an audit opinion. Reasonable assurance is a high-level assurance but is not a guarantee that an audit
conducted in accordance with the audit standards will always detect a material misstatement when
it exits. Misstatements may arise from fraud or error and are considered material if individually or
in the aggregate they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.As part of an audit in accordance with the audit standards we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than the one resulting from error
as fraud may involve collusion forgery omissions misrepresentations or the override of internal
control.(II) Obtain an understanding of internal control related to the audit in order to design appropriate
audit procedures.
15 32024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosure made by the management of your company.(IV) Conclude on the appropriateness of using the going concern assumption by the management
of your company and conclude based on the audit evidence obtained whether a material
uncertainty exists related to events or conditions that might cast significant doubt on your company's
ability to continue as a going concern. If we conclude that there was a significant uncertainty we
are required by audit standards to draw the attention of report users to the relevant disclosures in the
financial statements in the audit report; if such disclosures are inadequate we should express a non-
unqualified opinion. Our conclusions are based on the information available as of the audit report
date. However future events or conditions may cause your company to cease to continue as a going
concern.(V) Evaluate the overall presentation structure and content of the financial statements and evaluate
whether the financial statements fairly reflect relevant transactions and events.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of your
company's entity or business activities to express an opinion on the financial statements. We are
responsible for guiding supervising and implementing group audits. We remain solely responsible
for the audit opinions.We communicate with the governance regarding among other matters the planned audit scope
schedule and major audit findings including any significant deficiencies in internal control that we
identify during the audit.We also provide a statement to the governance regarding the observed professional moral
requirements related to independence and communicate with the governance about all the
relationships and other matters that might be reasonably considered to affect our independence as
well as the related countermeasures (if applicable).From the matters discussed with the governance we determine the matters that are of most
significance in the audit of the financial statements of the current period thus constituting key audit
matters. We describe these matters in the audit report unless laws and regulations prohibit public
disclosure of these matters or in rare cases we determine that a matter should not be communicated
in the audit report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.Union Power Certified Public Accountants Certified Public Accountant of China:
(Special General Partnership)
(engagement partner):
Qiu Yiwu
15 42024 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Certified Public Accountant of China:
Wang Huijun
Wuhan China
2025/04/25
15 5Consolidated Balance Sheet
2024/12/31
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024/12/31 2024/01/01
Current assets:
Monetary funds V. 1 113900461797.94 124104987289.62
Lending funds
Trading financial assets V. 2 16548258632.49 9614423403.40
Derivative financial assets V. 3 108919513.22
Notes receivable V. 4 87340130.52
Accounts receivable V. 5 16831887388.06 16099477117.56
Receivables financing V. 7 9600726284.77 10176089668.41
Advance payments V. 8 1530312318.65 2492647395.31
Other receivables V. 9 869731224.40 826558622.42
Including: Interests receivable
Dividends receivable 4325690.04 19936649.83
Buying back the sale of financial assets V. 10 5625977294.57 3932338954.49
Inventory V. 11 27910910515.55 32579140028.70
Contract assets V. 6 592399551.89 838812133.65
Assets held for sale
Non-current assets due within one year V. 12 13854786730.73 2411633459.29
Other current assets V. 13 17537456912.83 24868941754.15
Total current assets 224802908651.88 228141309470.74
Non-current assets:
Disbursement of loans and advances V. 14 431208935.61 543726609.23
Debt investment V. 15 1001466666.64 1150744482.05
Other debt investments V. 16 7016555220.76 16363841665.96
Long-term receivables V. 17 9483113.92 62185327.12
Long-term equity investments V. 18 4355712251.54 4488967031.20
Other equity instrument investments V. 19 3039588563.46 3864865509.37
Other non-current financial assets
Investment real estate V. 20 464658386.20 633262161.10
Fixed assets V. 21 36996168856.84 34034829116.47
Construction in progress V. 22 3076380868.80 6563911378.94
Usufruct assets V. 23 789763790.64 842250508.12
Intangible assets V. 24 10438873258.01 10827694521.82
Development expenditures
Goodwill V. 25 1367729072.13 1452496852.11
Long-term unamortized expenses V. 26 37344681.11 24275474.94
Deferred income tax assets V. 27 17670885568.93 16561437021.81
Other non-current assets V. 28 56532976636.39 42498105445.39
Total non-current assets 143228795870.98 139912593105.63
Total assets 368031704522.86 368053902576.37
Legal Representative: Chief Accountant: Head of Accounting Department:
15 6Consolidated Balance Sheet (Continued)
2024/12/31
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024/12/31 2024/01/01
Current liabilities:
Short-term borrowings V. 30 39009527273.22 26443476388.52
Borrowings from the central bank
Loans from other banks
Trading financial liabilities
Derivative financial liabilities V. 31 170740734.87 4079919.91
Notes payable V. 32 14479000765.12 23741128400.12
Accounts payable V. 33 47091320744.05 41147359221.95
Advance receipts
Contract liabilities V. 34 12491059928.53 13588771210.88
Financial assets sold for repurchase
Deposits from customers and interbank V. 35 307788319.03 254616899.35
Payroll payable V. 36 4390657219.55 4288611386.29
Taxes and dues payable V. 37 2713045051.02 4337631560.28
Other payables V. 38 4556911705.22 5513266516.82
Including: Interests payable
Dividends payable 3889950.33 5572388.92
Liabilities held for sale
Non-current liabilities due within one
V. 39 15577179285.89 20605521073.03
year
Other current liabilities V. 40 60338210355.36 61058837178.77
Total current liabilities 201125441381.86 200983299755.92
Non-current liabilities:
Long-term borrowings V. 41 18229817922.13 39035742535.09
Bonds payable
Including: Preferred share
Perpetual bond
Lease liabilities V. 42 711291189.69 767007951.92
Long-term payables V. 43 7912428.09 27028498.30
Long-term payroll payable V. 44 232702529.58 195057663.00
Estimated liabilities
Deferred income V. 45 3409749454.13 3527855598.12
Deferred income tax liabilities V. 27 2801094669.41 2871757157.58
Other non-current liabilities
Total non-current liabilities 25392568193.03 46424449404.01
Total liabilities 226518009574.89 247407749159.93
Shareholders' equity:
Share capital V. 46 5601405741.00 5631405741.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves V. 47 472179369.50 1352522393.67
Less: Treasury share V. 48 2616565976.68 4942723911.44
Other comprehensive income V. 49 182018285.77 275538293.30
Special reserves V. 50 31676129.88 26969643.44
Surplus reserves V. 51 1789443715.25 1731130024.40
General risk reserves V. 52 509245480.58 507223117.40
Undistributed profits V. 53 131447496201.09 112211650801.62
Total equity attributable to shareholders
137416898946.39116793716103.39
of the parent company
Minority equity 4096796001.58 3852437313.05
Total shareholders' equity 141513694947.97 120646153416.44
Total liabilities and shareholders' equity 368031704522.86 368053902576.37
Legal Representative: Chief Accountant: Head of Accounting Department:
15 7Consolidated Income Statement
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024 2023
I. Total operating revenue 190038071604.78 205018123834.21
Including: Operating revenue V. 54 189163654064.64 203979266387.09
Interest income V. 55 874417456.85 1038856837.77
Service charge and commission income 83.29 609.35
II. Total operating costs 154868311110.52 170774052191.66
Including: Operating costs V. 54 133496119623.36 143953487220.05
Interest expense V. 55 158700589.03 126399291.44
Service charge and commission expenses 364496.62 503529.63
Taxes and surcharges V. 56 1798827795.44 2114184492.83
Sales expenses V. 57 9753022469.17 14801702209.41
Administrative expenses V. 58 6057608713.94 6542161037.82
R&D expenses V. 59 6904084981.92 6762136262.23
Financial expenses V. 60 -3300417558.96 -3526521851.75
Including: Interest expenses 2378372721.06 2962205439.75
Interest income 5999412762.36 6189969897.82
Add: Other income V. 61 2724657818.37 900669135.95
Income from investments (losses expressed V. 62 560281846.36 217156605.23
with "") Including: Income from investments in joint 14219875.64 93222443.16
ventures or associateIsn come from the derecognition of
financial asseIntsc ommeaes furroemd ante ta mexoprotiszuerde choesdtgs ing (losses
expressed wiItnhc "om"e) from changes in fair value (losses V. 63 -273975504.34 437583988.72
expressed wiCthr e"di"t )i mpairment losses (losses expressed V. 64 -522432617.72 -824045112.30
with "") Asset impairment losses (losses expressed with V. 65 -686819202.27 -2493579694.08
"") Income from disposal of assets (losses V. 66 16965090.94 382923791.69
IeIxIp. rOespsedra wtiinthg "pr"o)f its (losses expressed with "") 36988437925.60 32864780357.76
Add: Non-operating revenue V. 67 72190967.82 128371808.52
Less: Non-operating expenses V. 68 164633045.12 177448328.09
IV. Total profits (total losses expressed with "") 36895995848.30 32815703838.19
Less: Income tax expenses V. 69 4524926560.95 5096680924.60
IV. Net profits (net losses expressed with "") 32371069287.35 27719022913.59
(I) Classification by business continuity:
1. Net profits from continuing operations (net losses 32311066123.10 27719217635.33
exp2r. eNsseetd p wroiftihts " fr"o)m discontinuing operations (net losses 60003164.25 -194721.74
(eIxIp) rCeslassesdi fwiciathti o"n "b)y ownership:
1. Net profits attributable to shareholders of the parent 32184570372.28 29017387604.18
com2.p Maniny o(rnietyt lionsteseress et xinpcreosmsed ( nweit hlo "ss"e)s expressed with 186498915.07 -1298364690.59
"VI". )N et of tax of other comprehensive income V. 49 180264674.95 -1335306322.73
(I) Net of tax of other comprehensive income attributable to 175599320.20 -1353437738.42
sha1r.e Ohothldeer rcso omf pthreh peanrseinvte cionmcopmane yt hat cannot be 141296779.55 -1419870672.10
rec(l1a)s sCifhieandg iensto a rpirsoinfigts f raonmd lroesmsesa surement of the defined -34144434.00 -15837466.00
ben(2e)f iOt pthlaenr comprehensive income that cannot be -147457182.75 -852472209.72
tra(n3s)f eCrrheadn gtoe sp irno ffiatsir a vnadl uloe sosfe so tuhnedre erq tuhiet ye qinusitryu metnhto d 322898396.30 -551560996.38
inv(e4s)t mCheanntsg es in fair value of the Company's own credit
risk(5 ) Others
2. Other comprehensive income to be reclassified into 34302540.65 66432933.68
pro(1fi)t sO atnhde rl ocsosmesp rehensive income that can be transferred -82393.76 160652.18
to (p2r)o fCithsa anngde slo isns efasi ru nvdaleure t hoef eoqthueitry d mebett hinovde stments 16578380.61 5646351.69
(3) Amount of financial assets reclassified into and
inc(l4u)d Rede sienr voethse fro cr ocmrepdriet himenpsaivirem ienncto mofe o ther debt 1291886.08 2753149.69
inv(e5s)t mCaesnhts f low hedging reserves -4944143.75 1650685.72
(6) Differences arising from the translation of financial 21458811.47 56222094.40
sta(t7em) Oenthtse risn to foreign currency
(II) Net of tax of other comprehensive income attributable 4665354.75 18131415.69
tVoI mI. iTnortiatyl csohmarpehreohldeenrsi ve income 32551333962.30 26383716590.86
(I) Total comprehensive income attributable to 32360169692.48 27663949865.76
(sIhIa) rTehootaldl ecrosm opf rtehhee pnasirveen ti nccoommpea naytt ributable to minority 191164269.82 -1280233274.90
VshIaIrIe.h Eoaldrenrisn gs per share:
(I) Basic earnings per share (yuan/share) 5.83 5.22
(II) Diluted earnings per share (yuan/share) 5.83 5.22
Legal Representative: Chief Accountant: Head of Accounting Department:
15 8Consolidated Cash Flow Statement
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024 2023
I. Cash flows from operating activities:
Cash received from the sale of goods or the rendering of services 171937113993.38 222450716185.76
Net increase in deposits from customers and interbank 50560729.20 35681305.16
Net increase in borrowings from the central bank
Net increase in loans from other banks
Cash received for interests service charges and commissions 690447891.17 404330867.02
Net increase in loans from other banks
Net increase in repurchase business capital
Refund of taxes and levies 3596859028.53 3267420421.11
Other cash received related to operating activities V. 70 (1) 3249319163.59 2838768145.79
Subtotal of cash inflows from operating activities 179524300805.87 228996916924.84
Cash paid for goods acquired and services received 108253725552.93 122277671203.25
Net increase in customer loans and advances 1579170000.00 3751715000.00
Net increase in deposits with central bank and interbank funds 485197013.98 121006301.94
Net increase in lending funds
Cash paid for interests service charges and commissions 157403936.47 126487510.44
Cash paid to and on behalf of employees 11779145121.58 11191368139.74
Payment of taxes and levies 16976161858.63 17572921744.39
Other cash paid related to operating activities V. 70 (1) 10924246751.62 17557320670.91
Subtotal of cash outflows from operating activities 150155050235.21 172598490570.67
Net cash flows from operating activities 29369250570.66 56398426354.17
II. Cash flows from investment activities:
Cash received from the recovery of investment 28787096787.35 21852693438.10
Cash received from return of investment 618087953.81 688434561.28
Net cash received from the disposal of fixed assets intangible assets and
183166640.301931290335.02
other long-term assets
Net cash received from the disposal of subsidiaries and other business entities 100813456.40 35000000.00
Other cash received related to investment activities V. 70 (2) 5165700914.89 24715882326.50
Subtotal of cash inflows from investment activities 34854865752.75 49223300660.90
Cash paid for the purchase and construction of fixed assets intangible assets
3299787341.225425734302.92
and other long-term assets
Cash paid for investments 42462983876.69 84267244633.47
Net cash paid for the acquisition of subsidiaries and other business entities 209444845.48 239342398.39
Other cash paid related to investment activities V. 70 (2) 4440559304.93 308198670.53
Subtotal of cash outflows from investment activities 50412775368.32 90240520005.31
Net cash flows from investment activities -15557909615.57 -41017219344.41
III. Cash flows from financing activities:
Cash received from absorbing investment 61239812.00
Including: Cash received from minority shareholders' investments in
61239812.00
subsidiaries
Cash received from borrowings 69114070361.03 68622584547.14
Other cash received related to financing activities V. 70 (3) 5382824066.67 20203186178.80
Subtotal of cash inflows from financing activities 74558134239.70 88825770725.94
Cash paid for debts 82643007052.90 87009692089.60
Cash paid for dividends and profits or interests 15133493514.47 13811350664.09
Including: Dividends and profits paid to minority shareholders by subsidiaries 35819000.00 111193450.56
Other cash paid related to financing activities V. 70 (3) 484846580.49 4362544531.09
Subtotal of cash outflows from financing activities 98261347147.86 105183587284.78
Net cash flows from financing activities -23703212908.16 -16357816558.84
IV. Impact of foreign exchange rate changes on cash and cash equivalents 118633846.78 136149039.88
V. Net increase in cash and cash equivalents -9773238106.29 -840460509.20
Add: Beginning balance of cash and cash equivalents 30914196186.41 31754656695.61
VI. Ending balance of cash and cash equivalents 21140958080.12 30914196186.41
Legal Representative: Chief Accountant: Head of Accounting Department:
15 9Consolidated Statement of Changes in Shareholders’ Equity
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2024
Equity attributable to shareholders of the parent company
Total
Item Other Equity Instruments Other
Less: Treasury Special Surplus General Risk Undistributed Minority Equity Shareholders'
Share Capital Preferred Perpetual Capital Reserves Comprehensive Others Subtotal
Others Share Reserves Reserves Reserves Profits Equity
Share Bond Income
I. Ending balance of the previous 112211650801.6 116793716103.3
5631405741.001352522393.674942723911.44275538293.3026969643.441731130024.40507223117.403852437313.05120646153416.44
year 2 9
Add: Changes in
accounting policies
Early error correction
Business combination
under common control
Others
II. Beginning balance of the 112211650801.6 116793716103.3
5631405741.001352522393.674942723911.44275538293.3026969643.441731130024.40507223117.403852437313.05120646153416.44
current year 2 9
III. Increase or decrease in the
-
current year (decrease expressed -30000000.00 -880343024.17 -93520007.53 4706486.44 58313690.85 2022363.18 19235845399.47 20623182843.00 244358688.53 20867541531.53
2326157934.76
with "")
(I) Total comprehensive income 175599320.20 32184570372.28 32360169692.48 191164269.82 32551333962.30
(II) Capital invested and -
-30000000.00-880343024.171415814910.5984888119.691500703030.28
reduced by shareholders 2326157934.76
1. Common shares invested
19006782.7819006782.783162968.8022169751.58
by shareholders
2. Capital invested by holders
of other equity instruments
3. Amount of share-based
payments recognized in 321918559.82 321918559.82 18701078.43 340619638.25
shareholders' equity
-
4. Others -30000000.00 -1221268366.77 1074889567.99 63024072.46 1137913640.45
2326157934.76
(III) Profit distribution 32929994.98 2022363.18 -13177178235.64 -13142225877.48 -35819000.00 -13178044877.48
1. Withdrawal of surplus
32929994.98-32929994.98
reserves
2. Withdrawal of general risk
2022363.18-2022363.18
reserves
3. Distribution to
-13142225877.48-13142225877.48-35819000.00-13178044877.48
shareholders
4. Others
(IV) Internal carry-over of
-269119327.7325383695.87228453262.83-15282369.03-15282369.03
shareholders' equity
1. Transfer of capital reserves
into capital (or share capital)
2. Transfer of surplus reserves
into capital (or share capital)
3. Surplus reserves for
making up losses
4. Changes in the defined
benefit plan carried forward to
retained earnings
5. Other comprehensive
income carried forward to retained -269119327.73 25383695.87 228453262.83 -15282369.03 -15282369.03
earnings
6. Others
(V) Special reserves 4706486.44 4706486.44 4125299.02 8831785.46
1. Amount withdrawn in the
10069964.5310069964.535366906.5615436871.09
current period
2. Amount used in the current
5363478.095363478.091241607.546605085.63
period
(VI) Others
131447496201.0137416898946.3
IV. Ending balance of this year 5601405741.00 472179369.50 2616565976.68 182018285.77 31676129.88 1789443715.25 509245480.58 4096796001.58 141513694947.97
99
Legal Representative: Chief Accountant: Head of Accounting Department:
16 0Consolidated Statement of Changes in Shareholders’ Equity (Continued)
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2023
Equity attributable to shareholders of the parent company
Total
Item Other Equity Instruments Other
Less: Treasury Special Surplus General Risk Undistributed Minority Equity Shareholders'
Share Capital Preferred Perpetual Capital Reserves Comprehensive Others Subtotal
Others Share Reserves Reserves Reserves Profits Equity
Share Bond Income
I. Ending balance of the previous year 5631405741.00 496102011.66 5643935587.86 2042901605.04 25845351.28 2241118692.92 507223117.40 91458073960.81 96758734892.25 5117313121.94 101876048014.19
Add: Changes in accounting
policies
Early error correction
Business combination under
common control
Others
II. Beginning balance of the current
5631405741.00496102011.665643935587.862042901605.0425845351.282241118692.92507223117.4091458073960.8196758734892.255117313121.94101876048014.19
year
III. Increase or decrease in the current - -
856420382.01-701211676.421124292.16-509988668.5220753576840.8120034981211.1418770105402.25
year (decrease expressed with "") 1767363311.74 1264875808.89
--
(I) Total comprehensive income 29017387604.18 27663949865.76 26383716590.86
1353437738.421280233274.90
(II) Capital invested and reduced by -
856420382.01-701211676.42-313591772.67-2011506375.97120317891.30-1891188484.67
shareholders 3255546661.73
1. Common shares invested by
49000.0049000.00
shareholders
2. Capital invested by holders of
other equity instruments
3. Amount of share-based payments
1411326160.711411326160.711873850.531413200011.24
recognized in shareholders' equity
-
4. Others -554905778.70 -701211676.42 -313591772.67 -3422832536.68 118395040.77 -3304437495.91
3255546661.73
(III) Profit distribution 2704897285.76 -8318738898.76 -5613841613.00 -111193450.56 -5725035063.56
1. Withdrawal of surplus reserves 2704897285.76 -2704897285.76
2. Withdrawal of general risk
reserves
3. Distribution to shareholders -5613841613.00 -5613841613.00 -111193450.56 -5725035063.56
4. Others
(IV) Internal carry-over of
-413925573.3240660707.45368519908.06-4744957.81-4744957.81
shareholders' equity
1. Transfer of capital reserves into
capital (or share capital)
2. Transfer of surplus reserves into
capital (or share capital)
3. Surplus reserves for making up
losses
4. Changes in the defined benefit
plan carried forward to retained earnings
5. Other comprehensive income
-413925573.3240660707.45368519908.06-4744957.81-4744957.81
carried forward to retained earnings
6. Others
(V) Special reserves 1124292.16 1124292.16 6233025.27 7357317.43
1. Amount withdrawn in the current
5017397.695017397.696563685.3111581083.00
period
2. Amount used in the current period 3893105.53 3893105.53 330660.04 4223765.57
(VI) Others
112211650801.6116793716103.3
IV. Ending balance of this year 5631405741.00 1352522393.67 4942723911.44 275538293.30 26969643.44 1731130024.40 507223117.40 3852437313.05 120646153416.44
29
Legal Representative: Chief Accountant: Head of Accounting Department:
16 1Balance Sheet of Company
2024/12/31
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024/12/31 2024/01/01
Current assets:
Monetary funds 104997483796.94 108942922385.17
Trading financial assets 16481965416.85 9239143613.00
Derivative financial assets 14619878.74 95917736.67
Notes receivable
Accounts receivable XVI. 1 4827772360.37 5005378177.86
Receivables financing 7006718140.32 7524899223.47
Advance payments 28545633730.59 30848777000.48
Other receivables XVI. 2 10199939865.70 4860219830.31
Including: Interests receivable
Dividends receivable
Inventory 7313135268.12 6554892982.74
Contract assets
Assets held for sale
Non-current assets due within one year 13176925988.88 2275251779.59
Other current assets 11386836198.06 21109801963.63
Total current assets 203951030644.57 196457204692.92
Non-current assets:
Debt investment 1001466666.64 1150744482.05
Other debt investments 6442532894.44 15167794246.58
Long-term receivables
Long-term equity investments XVI. 3 27043957920.42 29745489074.58
Other equity instrument investments 2907274549.45 3720140478.30
Other non-current financial assets
Investment real estate 15549713.49 15267230.92
Fixed assets 2951362264.27 1920285695.06
Construction in progress 3570152.59 827683995.65
Usufruct assets
Intangible assets 524093498.81 538236487.90
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 12754641796.88 12918181096.41
Other non-current assets 51848066215.46 39079582229.05
Total non-current assets 105492515672.45 105083405016.50
Total assets 309443546317.02 301540609709.42
Legal Representative: Chief Accountant: Head of Accounting Department:
16 2Balance Sheet of Company (Continued)
2024/12/31
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024/12/31 2024/01/01
Current liabilities:
Short-term borrowings 30059062411.86 14746805059.21
Trading financial liabilities
Derivative financial liabilities 4079919.91
Notes payable 12704510651.54 20930759577.37
Accounts payable 71833289675.25 56619857856.76
Advance receipts
Contract liabilities 6692639915.42 8477695446.71
Payroll payable 1567284063.01 1538244958.36
Taxes and dues payable 1123991382.95 2617451988.73
Other payables 2144355042.02 3127041358.88
Including: Interests payable
Dividends payable 602881.87 602881.87
Liabilities held for sale
Non-current liabilities due within one year 14951202185.14 19446383711.42
Other current liabilities 58357673721.64 59082715501.14
Total current liabilities 199434009048.83 186591035378.49
Non-current liabilities:
Long-term borrowings 15658858599.83 36308065111.81
Bonds payable
Including: Preferred share
Perpetual bond
Lease liabilities
Long-term payables
Long-term payroll payable 232102639.00 195057663.00
Estimated liabilities
Deferred income 159859570.92 143416179.21
Deferred income tax liabilities 1664135892.22 1306743893.80
Other non-current liabilities
Total non-current liabilities 17714956701.97 37953282847.82
Total liabilities 217148965750.80 224544318226.31
Shareholders' equity:
Share capital 5601405741.00 5631405741.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 993202543.54 1893049118.18
Less: Treasury share 2594171175.58 4942723911.44
Other comprehensive income 487239916.28 585972104.35
Special reserves
Surplus reserves 2800702870.50 2742389179.65
Undistributed profits 85006200670.48 71086199251.37
Total shareholders' equity 92294580566.22 76996291483.11
Total liabilities and shareholders' equity 309443546317.02 301540609709.42
Legal Representative: Chief Accountant: Head of Accounting Department:
16 3Income Statement of Company
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024 2023
I. Operating revenue XVI. 4 125658777785.89 134653638564.88
Less: Operating costs XVI. 4 85603970749.18 90206680531.76
Taxes and surcharges 731260431.00 859092997.83
Sales expenses 8139831424.59 12861530861.12
Administrative expenses 972007096.41 1821653380.75
R&D expenses 5000866640.04 5011334301.81
Financial expenses -4334351737.43 -3106751273.76
Including: Interest expenses 2096763332.46 2614299954.46
Interest income 6397403785.49 6174406252.36
Add: Other income 1270944567.58 51153924.37
Income from investments (losses expressed with "") XVI. 5 3138996739.42 4277964743.44
Including: Income from investments in joint ventures or
-5779979.32-6685965.10
associates
Income from the derecognition of financial assets
measured at amortized costs
Income from net exposure hedging (losses expressed with
"")
Income from changes in fair value (losses expressed with "") -74532589.63 225560468.94
Credit impairment losses (losses expressed with "") 7130075.90 -143073661.64
Asset impairment losses (losses expressed with "") -2846508830.66 -1011653917.67
Income from disposal of assets (losses expressed with "") 596794.64 385145031.19
II. Operating profits (losses expressed with "") 31041819939.35 30785194354.00
Add: Non-operating revenue 11718837.26 69675985.99
Less: Non-operating expenses 8325418.48 2865046.70
III. Total profits (total losses expressed with "") 31045213358.13 30852005293.29
Less: Income tax expenses 4178509329.39 3803032435.67
IV. Net profits (net losses expressed with "") 26866704028.74 27048972857.62
1. Net profits from continuing operations (net losses expressed with "") 26866704028.74 27048972857.62
2. Net profits from discontinuing operations (net losses expressed with
"")
V. Net of tax of other comprehensive income 170387139.66 -1393059564.60
1. Other comprehensive income that cannot be reclassified into profits
170109000.48-1385556900.05
and losses
(1) Changes arising from remeasurement of the defined benefit plan -34144434.00 -15837466.00
(2) Other comprehensive income that cannot be transferred to profits and
-147457182.75-855045750.68
losses under the equity method
(3) Changes in fair value of other equity instrument investments 351710617.23 -514673683.37
(4) Changes in fair value of the Company's own credit risk
(5) Others
2. Other comprehensive income to be reclassified into profits and losses 278139.18 -7502664.55
(1) Other comprehensive income that can be transferred to profits and
losses under the equity method
(2) Changes in fair value of other debt investments 5186357.93 -9130605.80
(3) Amount of financial assets reclassified into and included in other
comprehensive income
(4) Reserves for credit impairment of other debt investments
(5) Cash flow hedging reserves -4908218.75 1627941.25
(6) Differences arising from the translation of financial statements into
foreign currency
(7) Others
VI. Total comprehensive income 27037091168.40 25655913293.02
Legal Representative: Chief Accountant: Head of Accounting Department:
16 4Cash Flow Statement of Company
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2024 2023
I. Cash flows from operating activities:
Cash received from the sale of goods or the rendering of services 107522648166.15 144179376788.30
Refund of taxes and levies 2769613923.80 2331542341.22
Other cash received related to operating activities 53756794088.97 42036996855.66
Subtotal of cash inflows from operating activities 164049056178.92 188547915985.18
Cash paid for goods acquired and services received 109944862169.12 118570609203.77
Cash paid to and on behalf of employees 3142711537.37 3156268049.00
Payment of taxes and levies 11326772472.37 11257710858.48
Other cash paid related to operating activities 11769241239.58 10627695536.89
Subtotal of cash outflows from operating activities 136183587418.44 143612283648.14
Net cash flows from operating activities 27865468760.48 44935632337.04
II. Cash flows from investment activities:
Cash received from the recovery of investment 28134671586.46 21792641532.16
Cash received from return of investment 578587703.50 761944706.94
Net cash received from the disposal of fixed assets intangible assets
116110338.401518775880.59
and other long-term assets
Net cash received from the disposal of subsidiaries and other
business entities
Other cash received related to investment activities 6514304287.02 17579810310.30
Subtotal of cash inflows from investment activities 35343673915.38 41653172429.99
Cash paid for the purchase and construction of fixed assets
452209897.37535255593.94
intangible assets and other long-term assets
Cash paid for investments 38329525774.69 81994120506.79
Net cash paid for the acquisition of subsidiaries and other business
entities
Other cash paid related to investment activities 6986921376.35 4190445611.95
Subtotal of cash outflows from investment activities 45768657048.41 86719821712.68
Net cash flows from investment activities -10424983133.03 -45066649282.69
III. Cash flows from financing activities:
Cash received from absorbing investment
Cash received from borrowings 56661580712.92 53605339999.39
Other cash received related to financing activities 7573954660.01 9273478862.85
Subtotal of cash inflows from financing activities 64235535372.93 62878818862.24
Cash paid for debts 66707114661.74 55186410550.58
Cash paid for dividends and profits or interests 14911712364.83 13409157688.67
Other cash paid related to financing activities 15433050.00 3390981384.42
Subtotal of cash outflows from financing activities 81634260076.57 71986549623.67
Net cash flows from financing activities -17398724703.64 -9107730761.43
IV. Impact of foreign exchange rate changes on cash and cash
210045712.95-137818393.05
equivalents
V. Net increase in cash and cash equivalents 251806636.76 -9376566100.13
Add: Beginning balance of cash and cash equivalents 10177665192.94 19554231293.07
VI. Ending balance of cash and cash equivalents 10429471829.70 10177665192.94
Legal Representative: Chief Accountant: Head of Accounting Department:
16 5Statement of Changes in Shareholders’ Equity of Company
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2024
Other Equity
instruments
Item Other Special
Prefe Less: Treasury Total Shareholders' Share Capital Perp Capital Reserves Comprehensive Reserv Surplus Reserves Undistributed Profits
rred Othe Share Equity
etual Income es
Shar rs
Bond
e
I. Ending balance of the previous year 5631405741.00 1893049118.18 4942723911.44 585972104.35 2742389179.65 71086199251.37 76996291483.11
Add: Changes in accounting policies
Early error correction
Others
II. Beginning balance of the current year 5631405741.00 1893049118.18 4942723911.44 585972104.35 2742389179.65 71086199251.37 76996291483.11
III. Increase or decrease in the current year
-30000000.00-899846574.64-2348552735.86-98732188.0758313690.8513920001419.1115298289083.11
(decrease expressed with "")
(I) Total comprehensive income 170387139.66 26866704028.74 27037091168.40
(II) Capital invested and reduced by shareholders -30000000.00 -899846574.64 -2348552735.86 1418706161.22
1. Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount of share-based payments recognized in
310632844.42310632844.42
shareholders' equity
4. Others -30000000.00 -1210479419.06 -2348552735.86 1108073316.80
(III) Profit distribution 32929994.98 -13175155872.46 -13142225877.48
1. Withdrawal of surplus reserves 32929994.98 -32929994.98
2. Distribution to shareholders -13142225877.48 -13142225877.48
3. Others
(IV) Internal carry-over of shareholders' equity -269119327.73 25383695.87 228453262.83 -15282369.03
1. Transfer of capital reserves into capital (or share
capital)
2. Transfer of surplus reserves into capital (or share
capital)
3. Surplus reserves for making up losses
4. Changes in the defined benefit plan carried forward
to retained earnings
5. Other comprehensive income carried forward to
-269119327.7325383695.87228453262.83-15282369.03
retained earnings
6. Others
(V) Special reserves
1. Amount withdrawn in the current period
2. Amount used in the current period
(VI) Others
IV. Ending balance of this year 5601405741.00 993202543.54 2594171175.58 487239916.28 2800702870.50 85006200670.48 92294580566.22
Legal Representative: Chief Accountant: Head of Accounting Department:
16 6Statement of Changes in Shareholders’ Equity of Company (Continued)
2024/01-2024/12
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2023
Other equity
Instruments
Item Other Special Less: Treasury Total Shareholders'
Share Capital Prefe Perpe Capital Reserves Comprehensive Reserv Surplus Reserves Undistributed Profits
Other Share Equity
rred tual Income es
s
Share Bond
I. Ending balance of the previous year 5631405741.00 479849106.94 5643935587.86 2390383701.31 2240943653.27 52303785737.73 57402432352.39
Add: Changes in accounting policies
Early error correction
Others
II. Beginning balance of the current year 5631405741.00 479849106.94 5643935587.86 2390383701.31 2240943653.27 52303785737.73 57402432352.39
III. Increase or decrease in the current year
1413200011.24-701211676.42-1804411596.96501445526.3818782413513.6419593859130.72
(decrease expressed with "")
(I) Total comprehensive income -1393059564.60 27048972857.62 25655913293.02
(II) Capital invested and reduced by shareholders 1413200011.24 -701211676.42 -2244112466.83 -313766812.32 -443467591.49
1. Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount of share-based payments recognized in
1413200011.241413200011.24
shareholders' equity
4. Others -701211676.42 -2244112466.83 -313766812.32 -1856667602.73
(III) Profit distribution 2704897285.76 -8318738898.76 -5613841613.00
1. Withdrawal of surplus reserves 2704897285.76 -2704897285.76
2. Distribution to shareholders -5613841613.00 -5613841613.00
3. Others
(IV) Internal carry-over of shareholders' equity -411352032.36 40660707.45 365946367.10 -4744957.81
1. Transfer of capital reserves into capital (or share
capital)
2. Transfer of surplus reserves into capital (or share
capital)
3. Surplus reserves for making up losses
4. Changes in the defined benefit plan carried
forward to retained earnings
5. Other comprehensive income carried forward to
-411352032.3640660707.45365946367.10-4744957.81
retained earnings
6. Others
(V) Special reserves
1. Amount withdrawn in the current period
2. Amount used in the current period
(VI) Others
IV. Ending balance of this year 5631405741.00 1893049118.18 4942723911.44 585972104.35 2742389179.65 71086199251.37 76996291483.11
Legal Representative: Chief Accountant: Head of Accounting Department:
16 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Gree Electric Appliances Inc. of Zhuhai
Notes to 2024 Financial Statements
I. Company profile
Gree Electric Appliances Inc. of Zhuhai (hereinafter referred to as "the Company") was founded in December
1989 with the unified social credit identifier of 91440400192548256N.
As of December 31 2024 the registered capital and share capital of the Company was CNY5601405741.00.Please refer to Note V. 46 Share capital for details of the share capital.
1. Registered address organizational form and address of the Company
Organizational form of the Company: company limited by shares
Registered address and headquarters address: Office 608108 Huitong Third Road Hengqin New Area Zhuhai
Guangdong Province.
2. Nature of business and main businesses of the Company
The Company is a manufacturing enterprise mainly engaged in the production and sales of household appliances
and their accessories.
3. Names of the parent company and the ultimate parent company
As of December 31 2024 the Company had no parent company or actual controller.
4. Approved submitter and approved submission date of the financial statements
The financial statements were submitted under the approval of the Board of Directors of the Company as of
April 25 2025.II. Preparation basis of financial statements
1. Preparation basis
The Company prepares the financial statements on the basis of a going concern and according to the transactions
and events incurred and the disclosure provisions in the Accounting Standards for Business Enterprises — Basic
Standards (promulgated by the Ministry of Finance Order No. 33 revised by the Ministry of Finance Order No.
76) and the specific accounting standards the Interpretations of the Accounting Standards for Business Enterprises
and other applicable regulations promulgated and revised by the Ministry of Finance on and after February 15
2006 (collectively referred to as the Accounting Standards for Business Enterprises) as well as the Preparation
Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 — General Provisions on
Financial Statements (revised in 2023) promulgated by China Securities Regulatory Commission ("CSRC").According to the relevant provisions of the Accounting Standards for Business Enterprises the Company's
accounting is based on an accrual basis. Except for certain financial instruments the financial statements are
measured based on historical cost. If an asset is impaired the corresponding impairment reserves are accrued in
accordance with relevant regulations.
16 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
2. Going concern
The financial statements were presented on a going-concern basis. The management carefully evaluated factors of
the Company in the next 12 months since December 31 2024 such as the macro policy risk market operation risk
current and long-term profitability and solvency of the enterprise financial flexibility and the management's
intention of changing the operation policy and held that no event can generate significant influence on the
Company's ability to continue as a going concern.III. Major accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
The Company and its subsidiaries are mainly engaged in the production and sales of household appliances and
their accessories. The Company has prepared several accounting policies and accounting estimates for
transactions and events such as revenue recognition based on the actual production and operation characteristics
and according to provisions of the related Accounting Standards for Business Enterprises. For details please
refer to the detailed description in Note III herein.
1. Statements regarding observance of the Accounting Standards for Business Enterprises
The financial statements prepared by the Company conform to the requirements of the Accounting Standards for
Business Enterprises and give a true and complete view of the financial position of the Company on December 31
2024 and the related information such as operating results and cash flows in 2024. Besides the financial
statements prepared by the Company in all the major aspects also conform to the disclosure requirements of
financial statements and their notes in the Preparation Rules for Information Disclosure by Companies Offering
Securities to the Public No. 15 — General Provisions on Financial Statements revised by the China Securities
Regulatory Commission as revised in 2023.
2. Accounting period
The accounting period of the Company includes annual and interim periods. An interim period covers six
months a quarter and a month. The accounting year of the Company commences on January 1 and ends on
December 31 of each year.
3. Operating cycle
The normal operating cycle refers to the period from the Company's purchase of assets used for processing to the
realization of cash or cash equivalent. The Company regards 12 months as one operating cycle and uses it as the
liquidity classification standard for assets and liabilities.
4. Functional currency
CNY is the functional currency used by the Company. Some subsidiaries of the Company adopt currencies other
than CNY as the functional currency.
5. Determination method and selection basis of importance criteria
Item Importance Criteria
The amount of accrual by individual item accounts for more than 5% of
Important receivables with bad debt reserves
the ending balance of various receivables and the amount is greater than
accrued by individual item
CNY100 million
16 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Importance Criteria
The single recovery or reversal amount accounts for more than 5% of the
Recovery or reversal of important receivables bad
ending balance of various receivables and the amount is greater than
debt reserves
CNY100 million
The write-off amount accounts for more than 5% of the ending balance
Actual write-off of important receivables
of various receivables and the amount is greater than CNY100 million
Advance payments aged over 1 year account for more than 10% of the
Important advance payments aged over one year ending balance of advance payments and the amount is greater than
CNY100 million
Important construction in progress The ending balance of a single project is greater than CNY100 million
Accounts payable/other payables aged over 1 year account for more than
Important accounts payable and other payables
10% of the ending balance of accounts payable/other payables and the
aged over one year
amount is greater than CNY100 million
Contractual liabilities aged over 1 year account for more than 10% of the
Important contractual liabilities aged over one
ending balance of contractual liabilities and the amount is greater than
year
CNY100 million
Subsidiary's ending net assets/total ending assets/total current profit
Important non-wholly-owned subsidiaries account for more than 10% of the Company's ending net assets/total
ending assets/total current profit
The ending book value of long-term equity investments in a single
investee accounts for more than 5% of the Company's ending net assets
Important joint ventures or associates or the current investment profit and loss under the equity method
accounts for more than 10% of the Company's consolidated net profit for
the current period
Individual investment activities account for more than 10% of the total
Important investment activities
cash inflows or outflows related to received or paid investments
6. Accounting treatment of business combinations under common control and business combinations
not under common control
Business combination refers to the transaction or event of combining two or more independent enterprises into a
reporting entity. Business combination is classified into business combination under common control and business
combination not under common control.
(1) Business combinations under common control
A business combination under common control is a business combination in which the enterprises participating in
the combination are ultimately controlled by the same party or parties before and after the combination and the
control is not temporary. For business combinations under common control the party that obtains the right to
control other enterprises participating in the combination on the combination date is the combining party and other
enterprises participating in the combination are the combined party. The combination date refers to the date on
which the combining party obtains the right to control the combined party.Where business combination under common control arises from one transaction or equities of investees under
common control are obtained step by step through multiple transactions and these transactions belong to a package
deal the Company will recognize the cost of the combination according to the book value of net assets obtained
for the combined party in the ultimate controlling party's consolidated financial statements on the combination
date. The difference between the book value of the consideration paid for the combination (or total par value of
the issued shares) and the cost of the business combination is adjusted to capital reserve. If the capital reserve is
not sufficient to absorb the difference any excess is adjusted against retained earnings.Costs incurred that are attributable to the business combination made by the Company including intermediary
costs such as the audit fee legal service charge appraisal and consultation costs and other related overhead
expenses are charged to profits and losses in the period in which they are incurred. The transaction expenses
directly attributable to the consideration paid for the combination through the issuance of equity instruments are
credited against the capital reserve. If the capital reserve is not sufficient any excess is adjusted against retained
17 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
earnings. The transaction expenses directly attributable to the consideration paid for the combination through the
issuance of debt instruments are recorded into the initially recognized amount of debt instruments. Where the
equities of investees under common control are obtained step by step through multiple transactions to achieve a
business combination but these transactions do not belong to a package deal the Company will recognize the cost
of the combination according to the book value of net assets obtained for the combined party after the combination
in the ultimate controlling party's consolidated financial statements on the combination date. The difference
between the cost of the business combination and the sum of the book value of long-term equity investments before
the combination plus the book value of the consideration newly paid for further acquisition of shares on the date
of combination is adjusted to capital reserve (capital premium or share capital premium). If the capital reserve is
not sufficient to absorb the difference any excess is adjusted against retained earnings. For the equity investment
held before the date of combination accounting treatment is not performed temporarily for other comprehensive
incomes that are accounted for using the equity method or recognized using financial instruments and accounted
according to the measurement standard for recognition. When this investment is disposed of accounting treatment
is conducted using the same basis as that used by the investee to directly dispose of relevant assets or liabilities.For other changes in owners' equities other than the net profits and losses other comprehensive income and profit
distribution in net assets of the investee that are recognized because of accounting using the equity method
accounting treatment is not conducted temporarily. They shall be transferred to the current profits and losses at the
time of disposing of this investment.
(2) Business combinations not under common control
A business combination not under common control is a business combination in which all combining enterprises
are not ultimately controlled by the same party or parties both before and after the combination. For business
combinations not under common control the party that obtains the right to control other enterprises participating
in the combination on the date of combination is the acquiring party and other enterprises participating in the
combination are the acquired party. The date of acquisition refers to the date on which the acquiring party obtains
the right to control the acquired party.For the business combination implemented through one transaction the cost of business combination refers to the
fair value of assets paid liabilities incurred or assumed and equity securities issued by the Company on the date
of acquisition for obtaining the right to control the acquired party. On the date of acquisition the assets liabilities
and contingent liabilities obtained by the Company from the acquired party are recognized at fair value.For a business combination realized by two or more transactions of exchange the accounting treatment for the
cost of the business combination shall be made by distinguishing individual financial statements and consolidated
financial statements:
In the individual financial statements where the held shares are accounted using the equity method before the date
of acquisition the cost of business combination for the investment is the aggregate of the book value of the equity
investment of the acquired party held before the date of acquisition and the investment cost newly increased on
the date of acquisition. For other related comprehensive income accounting treatment is performed during the
disposal of the investment using the basis the same as that used by the investee to directly dispose of relevant
assets or liabilities. The owner's equity that is recognized due to changes in owners' equities other than the net
profits and losses other comprehensive income and profit distribution of the investee is accordingly transferred
to the current profits and losses at the time of disposing of this investment. Where the equity investment held
17 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
before the date of acquisition is recognized using financial instruments and undergoes accounting treatment
according to the measurement standard the cost of business combination for the investment is the aggregate of the
fair value of the equity investment recognized according to this standard and the newly increased investment cost.The difference between the fair value of the originally held shares and the book value and all the cumulative fair
value changes originally recorded into other comprehensive income are transferred to the investment income of
the current period.In the consolidated financial statements the shares of the acquired party held before the date of acquisition shall
be remeasured based on the fair value of such shares on the date of acquisition and the difference between their
fair value and book value shall be charged to the investment income of the current period. Where the shares of the
acquired party held before the date of acquisition involve other comprehensive income under the accounting of
the equity method and changes in owners' equities other than the net profits and losses other comprehensive
income and profit distribution other comprehensive income and other changes in owners' equities concerned with
them shall be transferred to the investment income in the period in which the date of acquisition is included
(excluding other comprehensive income arising from changes in the net assets or net liabilities of the benefit plan
remeasured and redefined by the investee). The sum of the fair value of the shares of the acquired party held before
the date of acquisition on the date of acquisition and newly increased investment costs on the date of acquisition
shall be the combined cost of the investment.Costs incurred that are attributable to the business combination made by the Company including intermediary
costs such as the audit fee legal service charge appraisal and consultation costs and other related overhead
expenses are charged to profits and losses in the period in which they are incurred. The transaction expenses
directly attributable to the consideration paid for the combination through the issuance of equity instruments are
credited against the capital reserve. If the capital reserve is not sufficient any excess is adjusted against retained
earnings. The transaction expenses directly attributable to the consideration paid for the combination through the
issuance of debt instruments are recorded into the initially recognized amount of debt instruments.In the Company the positive balance between the cost of the business combination and the fair value of the
identifiable net assets obtained by the Company from the acquired party shall be recognized as goodwill and
subsequently measured after the accumulated provision for impairment is deducted from the cost. The negative
balance between the cost of the business combination and the fair value of the identifiable net assets obtained by
the Company from the acquired party shall be charged to current profits and losses after being checked.
(3)Principle of judging whether multiple transactions are "a package deal"
When the terms and conditions of multiple transactions and the economic impact thereof accord with one or more
of the following cases usually it indicates that these transactions shall undergo accounting treatment as "a package
deal":
1) these transactions are concluded at the same time or concluded in consideration of mutual influence;
2) only the whole of these transactions can achieve a complete business result;
3) occurrence of one transaction depends on the occurrence of at least one of the other transactions;
4) one transaction is not economical when considered separately but economical when taken into account together
with other transactions.
7. Preparation of consolidated financial statements
(1) Principles for determining the scope of consolidated financial statements
17 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
The scope of consolidated financial statements shall be determined based on control. Control means that the
Company owns the power to the investee enjoys variable return by participating in relevant activities of the
investee and uses the power to the investee to affect its return amount.
(2) Preparation of consolidated financial statements
The consolidated financial statements of the Company are prepared by the Company based on individual financial
statements of the Company and subsidiaries and according to other relevant data. During the preparation of
consolidated financial statements the accounting policy and accounting period of the Company shall be consistent
with those of subsidiaries and the inter-company major transactions and balances shall be offset.For the subsidiary added due to a business combination under common control during the reporting period the
Company adjusts the amount at the beginning of the period in the consolidated balance sheet incorporates the
revenue expense and profit of this subsidiary from the beginning of the period for consolidation to the end of the
reporting period into the consolidated profit statement includes its cash flow into the consolidated cash flow
statement and adjusts relevant items in the comparative statements. For the subsidiary added due to a business
combination not under common control the Company does not adjust the amount at the beginning of the period
in the consolidated balance sheet but only incorporates the revenue expense and profit of this subsidiary from the
date of acquisition to the end of reporting period into the consolidated profit statement and its cash flow into the
consolidated cash flow statement.The owner's equity of the subsidiaries that aren't attributable to the Company shall be separately presented as the
minority equity under the owner's equity in the consolidated balance sheet. The subsidiary's current net profits and
losses attributable to minority equity are presented as "Minority profits and losses" in the consolidated income
statement. The comprehensive income of the subsidiaries in the current period that is attributable to the minority
equity shall be presented as the "Total comprehensive income attributable to minority shareholders" under the total
comprehensive income in the consolidated profit statement. Where the losses of a subsidiary undertaken by
minority shareholders exceed the share enjoyed by minority shareholders in the owner's equities of this subsidiary
at the beginning of the period the balance shall still be adjusted against the minority shareholders' equity.For the acquisition of the subsidiary's shares owned by minority shareholders thereof in the consolidated financial
statements the difference between the long-term equity investment newly obtained because of the acquisition of
minority shareholders' shares and the net assets of the subsidiary to be enjoyed and continuously calculated
according to the proportion of newly added shares from the acquisition date or consolidation date is adjusted to
capital reserve. If the capital reserve is not sufficient to absorb the difference any excess is adjusted against
retained earnings.For the transaction for which a part of equity investment is disposed of but the right to control this subsidiary is
not lost in the consolidated financial statements the difference between the disposal price and the net assets of
the subsidiary to be enjoyed accordingly for disposal of the long-term equity investment and continuously
calculated from the acquisition date or consolidation date is adjusted to capital reserve (capital premium or share
capital premium). If the capital reserve is not sufficient to absorb the difference any excess is adjusted against
retained earnings.Where the right to control the original subsidiary is lost due to the disposal of a part of an equity investment or
other reasons the residual shareholding shall be remeasured at fair value on the date of losing the control right.The result of the sum of the consideration obtained from the equity disposal plus the fair value of residual
17 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
shareholding minus the net assets of the original subsidiary that is enjoyed and continuously calculated according
to the original proportion of held shares from the acquisition date shall be charged to the investment income in
the period when the control right is lost and adjusted against the goodwill at the same time. Other comprehensive
income related to the original subsidiary's equity investment shall be transferred to the investment income of the
current period when the control right is lost.Where the equity investment for a subsidiary is disposed of step by step through multiple transactions till the
control right is lost and all the transactions belong to a package deal accounting treatment shall be performed for
the transactions by deeming all the transactions as one item for disposing of the subsidiary and losing the control
right. However before the loss of the control right the difference between every disposal price and the net assets
of this subsidiary to be enjoyed accordingly for investment disposal shall be recognized as other comprehensive
income in the consolidated financial statements and at the time of losing the control right be jointly transferred
to the profits and losses in the period when the control right is lost.Where the equity investment for a subsidiary is disposed of step by step through multiple transactions till the
control right is lost and the transactions do not belong to a package deal all the transactions before the loss of the
right to control the subsidiary shall be handled according to the regulations of the Company on partial disposal of
the subsidiary's long-term equity investment provided that the Company does not lose the right to control the
subsidiary.This reporting period does not involve buying-in and selling-out of the same subsidiary's equity or selling-out and
buying-in turn.
8. Classification of joint arrangements and accounting treatment of joint operations
Joint arrangement refers to the arrangement for joint control by two or more participants.
(1) Joint arrangement classification
Joint arrangement is classified into joint operation and joint venture. Joint operation refers to a joint arrangement
where the parties to the venture enjoy relevant assets of this arrangement and assume relevant liabilities of this
arrangement. Joint venture refers to a joint arrangement where the parties to the venture only enjoy rights to the
net assets of this arrangement.
(2) Accounting treatment of joint operations
1) The Company recognizes the following items related to the quantum of interest in joint operations and performs
accounting treatment in accordance with provisions of the Accounting Standards for Business Enterprises:
a. independently held assets as well as the jointly held assets to be recognized according to the share of the
Company;
b. independently undertaken liabilities as well as the jointly undertaken liabilities to be recognized according to
the share of the Company;
c. revenue generated by selling the output share of joint operations that is enjoyed by the Company;
d. revenue generated by selling the output during joint operations and recognized according to the share of the
Company;
e. independently incurred expense as well as the expense incurred by joint operations and recognized according
to the share of the Company.
2) Where the Company puts assets into or sells assets to the parties to joint operations (except that the assets
constitute business) before the said assets are sold to a third party by the parties to joint operations the Company
17 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
recognizes only the part in the profits and losses arising from this transaction that is attributable to other
participants in the joint operations. In case the put or sold assets involve asset impairment losses complying with
provisions in the Accounting Standards for Business Enterprises No. 8 — Impairment of Assets the Company shall
recognize the said loss in full.Where the Company purchases assets from the parties to joint operations (except that the assets constitute business)
before said assets are sold to a third party the Company recognizes only the part in the profits and losses arising
from this transaction that is attributable to other participants in the joint operations. In case the purchased assets
involve asset impairment losses complying with provisions in the Accounting Standards for Business Enterprises
No. 8 — Impairment of Assets the Company shall recognize this part of loss according to the share to undertake.
9. Determination criteria for cash and cash equivalents
The cash refers to the enterprise's money on hand and deposits for payment at any time. Cash equivalents refer to
investments held by the enterprise that are short in term (generally referring to those expiring within not more than
3 months from the date of acquisition) high in liquidity convertible to the known amount of cash and insignificant
in risk of change of value.
10. Foreign currency transactions and translation of financial statements in foreign currency
(1) Method of translation for foreign currency transactions
At the time of initial recognition of a foreign currency transaction of the Company the amount in the foreign
currency shall be translated into the amount in CNY at the spot exchange rate of the transaction date (generally
referring to the middle rate of foreign exchange quotation published by the People's Bank of China at the date of
transaction the same below).
(2) Treatment of monetary items of foreign currencies and non-monetary items of foreign currencies on the
balance sheet date
For the monetary items of foreign currencies the translation is done according to the spot rate of the balance sheet
date. The exchange difference generated from the difference between the spot rate of the current balance sheet
date and that in the date of initial recognition of a foreign currency or the previous balance sheet date is charged
to the current profits and losses except that the exchange difference generated from foreign currency borrowings
relating to assets of which the acquisition or production satisfies the capitalization conditions is capitalized in
accordance with the Accounting Standards for Business Enterprises No. 17 — Borrowing Costs. For the non-
monetary items of foreign currencies measured by historical cost translation is done according to the spot rate of
the transaction date without change in their amount in functional currency. Non-monetary items of foreign
currencies such as shares and funds measured at fair value are translated as per the spot rate on the date when their
fair value is confirmed. The differences between the translated amounts in functional currency and the original
amounts in functional currency are recorded into current profits and losses as fluctuations in fair value (including
fluctuation in exchange rates).
(3) Translation of financial statements in foreign currency
The Company translates the financial statements expressed in foreign currency into ones expressed in CNY
according to the following provisions.The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet date
except for the "undistributed profits" other items of owners' equity are converted at the spot exchange rate at the
17 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
time of occurrence. The asset and liability items in the balance sheets shall be translated at an average exchange
rate. The difference arising from the translation of financial statements in foreign currency generated by the above
method shall be separately presented under the owner's equity item in the balance sheet. The foreign currency cash
flow statement shall be translated at the average exchange rate on the cash flow date. The affected amount of the
exchange rate change on cash shall be presented separately under the adjusted item in the cash flow statement.
11. Financial instruments
A financial asset or financial liability can be recognized when the Company becomes one party of a financial
instrument contract.
(1) Classification recognition and measurement of financial assets
According to the business mode for management of the financial assets and the characteristics of the contractual
cash flows of the financial assets the Company classifies the financial assets as: financial assets measured at
amortized cost; financial assets measured at fair value with changes included in other comprehensive income;
financial assets measured at fair value with changes included in the current profits and losses.The financial assets initially recognized by the Company shall be measured at fair value. For the financial assets
measured at fair value with changes included in the current profits and losses the transaction expenses thereof are
directly included in the current profits and losses; for other categories of financial assets the transaction expenses
thereof are included in the initially recognized amount. For the accounts receivable or notes receivable arising
from the sale of products or the provision of services which do not include or consider significant financing
components the initial recognition amount is based on the expected amount of consideration that the Company is
entitled to receive.
1) Financial assets measured at amortized costs
The Company's business model for managing financial assets measured at amortized cost is to collect contractual
cash flows and the contractual cash flow characteristics of such financial assets are consistent with basic
borrowing arrangements that is cash flows generated on a specific date are for the payment of principal and
interest based on the outstanding principal amount. The Company adopts the effective interest rate method for
such financial assets and performs subsequent measurements based on amortized cost. The gains or losses arising
from their amortization or impairment are included in the current profits and losses.
2) Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model for managing such financial assets aims at collection of contractual cash flows
and sales and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The company measures such financial assets at fair value and their changes are recognized in other
comprehensive income but impairment losses or gains exchange profits and losses and interest income calculated
using the effective interest rate method are recognized in the current profits and losses.In addition the Company designates some non-trading equity instrument investments as financial assets measured
at fair value with changes included in other comprehensive income. The Company includes the relevant dividend
income of such financial assets in the current profits and losses with changes in fair value included in other
comprehensive income. When the financial assets are derecognized the cumulative gains or losses previously
included in other comprehensive income will be transferred from other comprehensive income to retained earnings
but will not be included in the current profits and losses.
3) Financial assets measured at fair value with changes included in other comprehensive income
17 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
The Company classifies financial assets other than those measured at amortized cost and those measured at fair
value with changes included in other comprehensive income as financial assets measured at fair value with changes
included in the current profits and losses. In addition in the initial recognition to eliminate or significantly reduce
the accounting mismatch the Company designated some financial assets as financial assets measured at fair value
with changes included in the current profits and losses. For such financial assets the Company uses fair value for
subsequent measurements and the changes in fair value are included in the current profits and losses.
(2) Classification recognition and measurement of financial liabilities
Financial liabilities are initially classified as financial liabilities measured at fair value with changes included in
the current profits and losses and other financial liabilities. For the financial liabilities measured at fair value with
changes included in the current profits and losses the transaction expenses thereof are directly included in the
current profits and losses; for other financial liabilities the transaction expenses thereof are included in the initially
recognized amount.
1) Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities are measured at fair value with changes included in the current profits and losses including
trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities measured at
fair value with changes included in the current profits and losses at initial recognition.Trading financial liabilities (including derivatives that are financial liabilities) are subsequently measured at fair
value with changes included in the current profits and losses except for those related to hedge accounting.For financial liabilities measured at fair value with changes included in the current profits and losses at the initial
recognition the changes of fair value caused by changes in the Company's own credit risk are included in other
comprehensive income and when the liabilities are derecognized the cumulative changes in fair value caused by
changes in own credit risk included in other comprehensive income are transferred to retained earnings. Other
changes in fair value are included in current profits and losses. If the accounting mismatch in profits and losses
may be caused or expanded as the effects of changes in the own credit risk of such financial liabilities are processed
in the above manner the Company will include all gains or losses of such financial liabilities (including the amount
affected by changes in the Company's own credit risk) included in the current profits and losses.
2) Other financial liabilities
Except for financial liabilities and financial guarantee contracts formed by the transfer of financial assets that do
not meet the conditions for derecognition or continue to be involved in the transferred financial assets other
financial liabilities are classified as financial liabilities measured at amortized cost and are subsequently measured
at amortized cost. Gains or losses arising from derecognition or amortization are included in the current profits
and losses.
(3) Basis for the recognition and method for the measurement of financial assets
Financial assets that meet one of the following conditions shall be derecognized:
1) the contract right to receive the cash flow of the financial assets is terminated;
2) the financial assets have been transferred and almost all the risks and rewards of ownership of the financial
assets are transferred to the transferring party;
3) the financial assets have been transferred although the enterprise has neither transferred nor retained almost all
the risks and rewards of the ownership of the financial assets it has given up control over the financial assets.If the enterprise has neither transferred nor retained almost all the risks and rewards of the ownership of the
17 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
financial assets and has not given up control over the financial assets the relevant financial assets shall be
recognized according to the extent of continued involvement in the transferred financial assets and the relevant
liabilities shall be recognized accordingly. The degree of continued involvement in the transferred financial assets
refers to the level of risk faced by the enterprise due to changes in the value of the financial assets.If the overall transfer of financial assets meets the conditions for derecognition the difference between the book
value of the transferred financial assets and the sum of the consideration received due to the transfer and the
cumulative amount of changes in fair value originally included in other comprehensive income is included in the
current profits and losses.If the partial transfer of financial assets satisfies the conditions for derecognition the book value of the transferred
financial assets will be apportioned between the portion derecognized and the portion not derecognized according
to their relative fair values and the difference between the sum of the consideration received for the transfer and
the amount of cumulative changes in the fair value which was previously directly recognized in owner's equity
and which should be apportioned to the portion derecognized and the above book value apportioned will be
included in the current profits and losses.The Company must determine whether almost all the risks and rewards of ownership of the financial assets have
been transferred before endorsing the transfer of financial assets sold by means of recourse and financial assets
held. If almost all the risks and rewards of ownership of the financial asset have been transferred to the transferee
the financial asset will be derecognized; if the risks and rewards of the ownership of the financial asset have been
retained the financial asset will not be derecognized; if almost all the risks and rewards of ownership of the
financial asset have not been transferred or retained the enterprise needs to continue to determine whether it retains
control over the asset and performs accounting treatment in accordance with the principles described in the
preceding paragraphs.
(4) Derecognition of financial liabilities
If the present obligation for a financial liability has been fully or partially discharged the financial liability or the
relevant portion thereof will be derecognized. If the Company (borrower) signs an agreement with the lender to
replace the original financial liability by assuming a new financial liability and the contract terms of the new
financial liability and the original financial liability are substantially different the original financial liability will
be derecognized and the new financial liability will be recognized at the same time. If a material amendment is
made to the contractual terms for the original financial liability or the relevant portion thereof the original financial
liability will be derecognized and the new financial liability will be recognized according to the amended terms
at the same time.If the financial liability or the relevant portion thereof is derecognized the difference between the book value of
the financial liability derecognized and the consideration paid for it (including the non-cash asset transferred or
the liability assumed) will be included in the current profits and losses.
(5) Offsetting financial assets with financial liabilities
When the Company has the legal right to offset the financial asset and the financial liability with the recognized
amount and such legal rights are currently enforceable and the Company plans to settle in the net or
simultaneously realize the financial asset and liquidate the financial liability the financial asset and the financial
liability will be presented in the balance sheet in net amounts after mutual offset. In addition financial assets and
financial liabilities are presented separately in the balance sheet and are not offset against each other.
17 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant can receive for the sale of an asset or need to pay for the
transfer of a liability in the orderly transaction that occurs on the measurement date. For financial instruments for
which there is an active market the fair value thereof will be determined by the Company based on the quotation
in the active market. Quotation in the active market refers to the price that is easily obtained from exchanges
brokers industry associations pricing service agencies etc. regularly and represents the price of market
transactions that occur in fair trading. For financial instruments for which there is no active market the fair value
thereof will be determined by the Company using valuation techniques. Valuation techniques include the prices
adopted by the parties who are familiar with the condition in the latest market transaction upon their own free
will the current fair value obtained by referring to other financial instruments of the same essential nature the
cash flow capitalization method and the option pricing model etc. At the time of valuation the Company adopts
a valuation technique that is applicable in the current circumstances and that there is sufficient available data and
other information to support selects the input values consistent with the asset or liability characteristics considered
by the market participants in the transaction of the underlying asset or liability and as far as possible uses relevant
observable input values. Unobservable input values are used where the relevant observable input values are not
available or are not practicable.
(7) Equity instruments
Equity instruments refer to contracts that can prove ownership of the residual equity in assets of the Company after
deduction of all the liabilities. The Company treats the issue (including refinancing) repurchases sale or
cancellation of equity instruments as changes in equity and transaction expenses related to equity transactions are
deducted from equity. The Company does not recognize changes in the fair value of equity instruments.If the Company's equity instruments distribute dividends (including "interest" generated by instruments classified
as equity instruments) during the existence period such dividends will be treated as profit distribution.
12. Impairment of financial assets
Financial assets of which the Company needs to recognize impairment losses include financial assets measured at
amortized cost and debt instrument investments measured at fair value with changes included in other
comprehensive income mainly including notes receivable receivables financing accounts receivable contract
assets other receivables loans and advances debt investment other debt investment long-term receivables etc.
(1) Recognition methods of impairment reserves
Based on the expected credit loss the Company accrues impairment reserves and recognizes credit impairment
loss according to the applicable expected credit loss measurement method (general method or simplified method)
for the above items.Credit loss refers to the difference between all contractual cash flows that are due to the Company according to
the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls) discounted at the
original effective interest rate. Among them for purchased or originated credit-impaired financial assets the
Company discounts the difference at the credit-adjusted effective interest rate of the financial assets.The general method for measuring expected credit losses is that the Company assesses on each balance sheet date
whether the credit risk of financial assets has increased significantly since initial recognition. If the credit risk has
increased significantly since initial recognition the Company measures the loss reserves according to the amount
equal to lifetime expected credit losses. If the credit risk has not increased significantly since initial recognition
17 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
the Company measures the loss reserves according to the amount equal to 12-month expected credit losses. The
Company considers all reasonable and valid information including forward-looking information when assessing
expected credit losses.For financial instruments with lower credit risk on the balance sheet date the Company assumes that their credit
risk has not increased significantly since initial recognition.
(2) Judgment criteria for whether the credit risks have increased significantly since the initial recognition
If the probability of default of a financial asset in the expected lifetime determined on the balance sheet date is
significantly higher than the probability of default in the expected lifetime determined at the date of initial
recognition it indicates that the credit risk of the financial asset has increased significantly. Except for special
circumstances the Company uses the change in default risk that occurs within the next 12 months as a reasonable
estimate of the change in default risk that occurs throughout the lifetime to determine whether the credit risk has
increased significantly since initial recognition.
(3) Assessment methods of the expected credit risks based on portfolios
The Company assesses the credit risks of the financial assets with significantly different credit risks respectively
such as accounts receivable from disputes with the other party or litigation and arbitration and receivables with
obvious signs indicating that the debtor is likely to be unable to fulfill the repayment obligation etc.In addition to the financial assets whose credit risks are assessed respectively the Company divides the financial
assets into different portfolios based on their common risk characteristics and assesses the credit risks based on
portfolios.
(4) Accounting treatment methods for financial assets impairment
At the end of the period the Company calculates the estimated credit losses of various financial assets. If the
estimated credit losses are greater than the book value of the current impairment reserves the difference is
recognized as an impairment loss; if the estimated credit losses are smaller than the book value of the current
impairment reserves the difference is recognized as an impairment gain.
(5) Recognition methods of the credit losses of all kinds of financial assets
1) Notes receivable and receivables financing — notes receivable
For notes receivable and receivables financing — notes receivable the Company measures the loss reserves
according to the amount of the expected credit losses during the whole duration. Based on the credit risk
characteristics of notes receivable and receivables financing — notes receivable financial assets are divided into
different portfolios:
Item Basis for Recognition of Portfolios
Banker's acceptance bill The acceptor is a banking institution
Financial company's
The acceptor is a financial company
acceptance bill
Commercial acceptance bill The acceptor is a company other than a banking institution or financial company
2) Accounts receivable receivables financing — accounts receivable and contract assets
For accounts receivable that do not contain significant financing components accounts receivable that contain
significant financing components receivables financing — accounts receivable and contract assets the Company
measures loss reserves based on an expected credit loss amount equivalent to the entire duration. Expected credit
losses related to contract assets are included in asset impairment losses.
18 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
In addition to accounts receivable of which credit risk is individually assessed the Company divides accounts
receivable into different portfolios based on their credit risk characteristics:
Item Basis for Recognition of Portfolios
Portfolio 1: Account age
The portfolio takes the account age of accounts receivable as the basis for the portfolio
portfolio
The portfolio takes the dismantling subsidy of waste electrical and electronic products
Portfolio 2: Low-risk
receivable from government departments and new energy vehicle subsidies as the basis for the
portfolio
portfolio
Portfolio 3: Risk-free The portfolio takes the receivables from related entities within the scope of consolidation as
portfolio the basis for the portfolio
3) Disbursement of loans and advances
The Company measures impairment losses using an amount equivalent to 12-month or lifetime expected credit
losses based on whether the credit risk of disbursement of loans and advances has increased significantly since
initial recognition.
4) Other receivables
The Company measures impairment losses using an amount equivalent to 12-month or lifetime expected credit
losses based on whether the credit risk of other receivables has increased significantly since initial recognition. In
addition to other receivables of which credit risk is individually assessed the Company divides other receivables
into different portfolios based on their credit risk characteristics:
Item Basis for Recognition of Portfolios
Portfolio 1: Account age
The portfolio takes the account age of other receivables as the basis for the portfolio
portfolio
Portfolio 2: Low-risk portfolio The portfolio takes the receivable government grain deposits as the basis for the portfolio
The portfolio takes the receivables from related entities within the scope of consolidation
Portfolio 3: Risk-free portfolio
as the basis for the portfolio
5) Debt investment
Debt investment mainly accounts for bond investment measured at amortized cost. The Company measures
impairment losses using an amount equivalent to 12-month or lifetime expected credit losses based on whether
the credit risk of other debt investments has increased significantly since initial recognition.
6) Other debt investments
Other debt investments mainly account for the debt instrument investments measured at fair value with changes
included in other comprehensive income. The Company measures impairment losses using an amount equivalent
to 12-month or lifetime expected credit losses based on whether the credit risk of other debt investments has
increased significantly since initial recognition.
7) Long-term receivables
The Company's long-term receivables are incomes from the sales of goods collected in installments. The Company
measures the loss reserves according to the amount of the expected credit losses during the whole duration.
13. Receivables financing
For notes receivable and accounts receivable classified as measured at fair value with changes included in other
comprehensive income the portion within one year (including one year) from the date of acquisition is presented
as receivables financing; while the portion beyond one year is presented as other debt investment. For related
accounting policies please refer to Note III. 11 Financial instruments and Note III. 12 Impairment of financial
18 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
assets.
14. Inventory
(1) Inventory classification
The Company's inventories mainly include raw materials goods in process and contract performance costs
finished products development costs and development products.Development cost refers to the property that has not been completed and is for sale. The Company accounts for
the land use rights purchased and used for commercial housing development as the development cost.Development product refers to the property that has been completed and is to be sold.
(2) Valuation method for delivered inventories
The Company mainly adopts the planned cost method for inventory accounting while some subsidiaries adopt the
actual cost method for inventory accounting.Inventories accounted for with the planned cost method are valued at planned cost upon shipment and at the end
of the month the planned cost is adjusted to the actual cost based on the cost difference of the current month.Inventories accounted for using the actual cost method mainly use the weighted average method at the end of each
month to value the delivered inventory.The development cost and development product cost include land transfer fees infrastructure expenditures
construction and installation engineering expenditures borrowing costs incurred before the development project
is completed and other related costs incurred in development. When carrying forward the cost for development
products the total cost is allocated between the sold and unsold properties in proportion to the construction area.
(3) Basis for determining the net realizable value of inventory and accrual method for inventory falling
price reserves
At the balance sheet date inventories are measured at the lower one of the cost and net realizable value. If the cost
of inventories is higher than the net realizable value the inventory falling price reserves shall be accrued and shall
be recorded into the current profits and losses where the inventory falling price reserves have been made if the
value of the said inventories is resumed later the said value shall be transferred back from the accrued inventory
falling price reserves. Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes.
(4) Inventory system
The Company's inventory adopts the perpetual inventory system.
(5) Amortization methods of low-value consumables and packing materials
Low-value consumables and packing materials are written off in full when issued for use.
15. Contract assets
The Company presented the right to collect payments from customers which the customers have not yet paid the
contract consideration but the Company has fulfilled its performance obligations according to the contract and it
is not unconditional (that is only depending on the passage of time) as contract assets in the balance sheet. Contract
assets and contract liabilities under the same contract are presented in net amount and contract assets and contract
liabilities under different contracts are not offset.For the determination and accounting treatment of expected credit losses of contract assets please refer to Note
III. 12 Impairment of financial assets.
18 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
16. Contract costs
(1) Determination of asset amount related to contract costs
The Company's assets related to contract costs include contract acquisition costs and contract performance costs.If the incremental cost incurred by the Company to obtain the contract is expected to be recovered it will be
recognized as an asset as the contract acquisition cost. However if the amortization period of the asset does not
exceed one year it will be included in current profits and losses when it is incurred.If the cost incurred by the Company for the performance of the contract does not fall within the scope specified in
the accounting standards for business enterprises other than the Accounting Standards for Business Enterprises
No. 14 — Revenues (Revised in 2017) it shall be recognized as an asset as the contract performance cost when the
following conditions are met simultaneously: * the cost is directly related to a current or expected contract
including direct labor cost direct material cost manufacturing expense (or similar expense) cost borne by the
customer and other costs incurred only due to the contract; * the cost increases the Company's future resources
for fulfilling its obligations; and * the cost is expected to be recovered.
(2) Amortization of assets related to contract costs
The Company’s assets related to contract costs are amortized on the same basis as the recognition of goods income
related to the asset and included in the current profits and losses.
(3) Impairment of assets related to contract costs
When recognizing the impairment loss of assets related to the contract cost the Company shall first recognize the
impairment loss of other assets related to the contract and recognized in accordance with other relevant corporate
accounting standards; then based on the fact that the book value is higher than the difference between the residual
consideration expected to be obtained by the Company due to the transfer of the goods related to the asset and the
estimated cost to be incurred for the transfer of the relevant goods the excess shall be withdrawn for impairment
reserves and recognized as asset impairment losses.If the depreciation factors in the previous period change later causing the aforementioned difference to be higher
than the book value of the asset the Company will transfer back the previously accrued asset impairment reserves
and include it in the current profits and losses but the book value of the asset after transferring back can not exceed
the book value of the asset at the date of transferring back under the assumption that no accrual is made for the
impairment.
17. Assets held for sale
(1) Recognition criteria
Where the Company recovers its book value by selling (including the non-monetary asset exchange with
commercial substance; it is the same below) not continuously using a non-current asset or disposal group it shall
be classified into the category of assets held for sale. The non-current asset or disposal group to be classified into
the category of assets held for sale shall meet the following conditions at the same time:
According to the practice of selling such assets or disposal groups in similar transactions they can be sold
immediately under the current circumstances.Selling is extremely likely to happen that is the Company has decided on a selling plan and has obtained a
recognized purchase commitment and selling is expected to be completed within one year. If it can be sold only
after being approved by the relevant authority organization or supervision department of the Company according
18 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
to relevant requirements it should have been approved. Recognized purchase commitment refers to a purchase
agreement with a legally binding force that the Company concludes with other parties which includes important
clauses of the transaction price time and enough strict default punishment etc. with which possibility to lead to
major adjustment or cancellation of agreement is tiny.The non-current asset or disposal group acquired by the Company for resale shall be classified as held for sale on
the acquisition date if it meets the requirements of “expected to be sold within one year” on the acquisition date
and it is likely to meet the other classification conditions for holding for sale in the short term (usually three
months).The disposal group refers to a group of assets that are disposed of as a whole in a transaction through sale or other
means and the liabilities that are directly related to these assets and transferred in the transaction. Where the
goodwill obtained in the business combination is apportioned for the asset group or asset group combination to
which the disposal group belongs according to Accounting Standards for Enterprises No. 8 — Impairment of Assets
this disposal group should contain the goodwill apportioned to the disposal group.
(2) Accounting treatment
For the non-current asset and disposal group that is classified as the category held for sale the Company carries
out initial measurement or re-measurement according to the lower one of the book value and the net value of the
fair value minus the disposal expense. Where the net value of the fair value minus the disposal cost is lower than
the original book value the difference is confirmed as assets impairment losses and included in the current profits
and losses and the impairment reserves of the assets held for sale are accrued at the same time. For the amount of
assets impairment losses confirmed by the disposal group held for sale the book value of the goodwill in the
disposal group is deducted first and then its book value is deducted in proportion according to the ratios of the
book values of various non-current assets applicable to the measurement of the category held for sales in the
disposal group.Where the net value of the fair value of non-current assets held for sale on the balance sheet date minus the selling
expense increases subsequently the previous write-down amount is restored and will be transferred back in the
amount of assets impairment loss after classification as the category held for sales is confirmed and the amount
transferred back shall be included in the current profits and losses. Asset impairment losses recognized before the
classification are not transferred back.Where the net value of the fair value of the disposal group held for sale on the balance sheet date minus the selling
expense increases subsequently the previous write-down amount is restored and will be transferred back in the
amount of asset impairment losses confirmed for non-current assets applicable to the measurement provisions of
the category held for sale after classification as the category held for sales and the amount transferred back shall
be included in the current profits and losses.For the deducted book value of goodwill and the non-current assets applicable to the measurement provisions of
the category held for sale the asset impairment losses confirmed before classification as the category held for sales
shall not be transferred back. For the amount subsequently transferred back for asset impairment losses recognized
in the disposal group held for sale its book value is increased in proportion according to the ratios of the book
values of various non-current assets applicable to measurement provisions of the category held for sales in the
disposal group excluding the goodwill. The non-current assets held for sale or non-current assets in the disposal
group are not accrued for impairment or amortized and the interests on debts and other expenses in the disposal
18 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
group held for sale will be confirmed continuously.The measurement methods of the category held for sale do not apply to the deferred income tax assets financial
assets complying with the specifications of Accounting Standards for Business Enterprises No. 22 — Recognition
and Measurement of Financial Instruments investment real estate and biological assets measured at fair value
contract rights produced in the insurance contract and the assets produced in the employee benefits and they are
measured according to the relevant criteria or corresponding accounting policies formulated by the Company.Where the disposal group contains the non-current assets applicable to the measurement provisions of the category
held for sale the measurement method of the category held for sale applies to the whole disposal group. The related
accounting standards apply to the measurement of liabilities in the disposal group.When the non-current assets or disposal group is removed from the disposal group held for sale because it does
not meet the classification condition of the category held for sale anymore and will not be classified as the category
held for sale or non-current assets it shall be measured according to the lower one of the following two:
1) in the case of the book value before being classified into the held for sale category the amount adjusted
according to the depreciation amortization or impairment that should have been recognized under the assumption
that it is not classified as held for sale category;
2) Recoverable amount.
18. Long-term equity investments
The long-term equity investments mainly include the equity investment held by the Company that can take control
over the investee and have a significant impact as well as the equity investment in its joint venture.
(1) Judgment criteria of control and significant influence
Judgment criteria of control:
1) the Company owns the power to the investee;
2) the Company enjoys variable returns by participating in relevant activities of the investee;
3) the Company uses the power over the investee to influence the Company's return amount;
4) the Company acknowledges the control force for the investee that meets the above three conditions.
Judgment criteria of significant influence:
1) the Company has the power to participate in the decision-making of the investee's financial and operating
policies but does not control or jointly control the formulation of these policies with other parties;
2) where the Company can exert a significant impact on the investee it is the associated enterprise of the
Company;
3) The investee under common control by the Company and other participants is a joint venture of the Company.
Common control means that any participant cannot independently control this arrangement and any participant
with the right to common control of this arrangement can prevent other participants or the combination of
participants from independently controlling this arrangement.
(2) Determination of the cost of the long-term equity investment
The long-term equity investment of the Company is measured at the investment cost at the time of acquisition.Normally the investment cost refers to the assets paid liabilities incurred or undertaken and the fair value of equity
securities issued for the acquisition of this investment including the costs directly attributable to the acquisition.However for the long-term equity investment formed by a business combination under common control the
investment cost is the book value of the combined party's net assets acquired on the combination date in the
18 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
ultimate controlling party's consolidated financial statements.
(3) Subsequent measurement of long-term equity investments and methods of profits and losses recognition
The Company adopts the cost method to calculate the long-term equity investment that can control the investee
and the equity method to calculate the investment of associates and joint ventures.The price of a long-term equity investment accounted for by employing the cost method shall be recorded at its
initial investment cost. If there are additional investments or disinvestments the cost of the long-term equity
investment shall be adjusted. The cash dividends or profits declared to be distributed by the investee shall be
recognized as investment income and charged to current profits and losses.When the Company employs the equity method for accounting for the long-term equity investment if the cost of
a long-term equity investment is more than the fair value of the investee's identifiable net assets for the investment
the cost of the long-term equity investment may not be adjusted; if the investment cost of a long-term equity
investment is less than the fair value of the investee's identifiable net assets for the investment the book value of
the long-term equity investment shall be adjusted and the difference shall be recorded into the current profits and
losses.When the Company employs the equity method for accounting for the long-term equity investment the Company
first adjusts the investee's net profits and losses and other comprehensive income in aspects such as the fair value
of the investee's identifiable net assets at the time of investment acquisition accounting policy and accounting
period and then recognizes the current investment profits and losses and other comprehensive income based on
the net profits and losses and other comprehensive incomes of the investee that should be enjoyed or shared. For
other changes in the owner's equities other than the net profits and losses other comprehensive income and profit
distribution the book value of the long-term equity investment shall be adjusted and recorded into the owner's
equities.For the unrealized internal transaction profits and losses that arise between the Company and the associates and
joint ventures the part attributable to the Company shall be calculated according to the shareholding proportion
and the investment profits and losses shall be recognized based on offsetting.For the long-term equity investments held already before January 1 2007 for the associates and joint ventures if
there is any equity investment difference on the debit side the investment profits and losses shall be recognized
after deduction of the equity investment difference on the debit side amortized by the straight-line method
according to the original residual maturity.
(4) Recognition of common control and significant influences on the investee
Common control is recognized as the control that does not exist unless the investors unanimously agree on sharing
the control power over the relevant important financial and operating decisions of the investee according to the
provisions of the contract.Significant influences will be recognized where there is power to participate in making decisions on the financial
and operating policies of the investee but not to control or do joint control together with other parties over the
formulation of these policies. When the Company holds more than 20.00% (inclusive) but less than 50.00% of
voting shares of the investee directly or indirectly through a subsidiary significant influences on the investee shall
be recognized unless there is clear evidence indicating that the Company cannot participate in production and
operation decision-making of the investee in this situation and therefore cannot generate significant influences. If
the Company holds less than 20.00% (exclusive) of voting shares of the investee usually the Company is not
18 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
deemed to have a significant influence on the investee unless there is clear evidence indicating that the Company
can participate in production and operation decision-making of the investee in this situation and therefore can
generate significant influences.
(5) Conversion of accounting method of long-term equity investment
Where the equity investment originally held by the Company which is unable to control is not under common
control with or has no significant influences on the investee is converted into an investment for an associate or
joint venture due to additional investment the investment shall be accounted by the equity method instead and
the Company shall use the fair value of the original equity investment plus the fair value of the consideration paid
to acquire the newly added investment as the initial investment cost accounted by the equity method instead. The
difference between the fair value and book value of the originally held equity investment before the additional
investment and the cumulative fair value changes originally recorded into other comprehensive income shall be
transferred to the current profits and losses accounted by the equity method instead.For the originally held investments for associates and joint ventures if they are not able to be under common
control with or have significant influences on the investee if they are not able to be under common control with
or have significant influences on the investee due to reason such as partial disposal accounting treatment must be
performed for residual equity investments according to the recognition and measurement standards for financial
instruments and the difference between the fair value and book value on the date on which the common control
or significant influence is lost shall be charged to current profits and losses. When accounting based on the equity
method is terminated for other comprehensive income originally subject to the accounting of equity method the
accounting treatment is performed using the basis the same as that used by the investee to directly dispose of
relevant assets or liabilities. All the owner's equities that are recognized due to other changes in owner's equities
other than the net profits and losses other comprehensive income and profit distribution of the investee shall be
transferred to the current profits and losses when accounting based on the equity method is terminated.Where the originally held investments for associates or joint ventures are converted to investments for subsidiaries
due to additional investment in the individual financial statements the sum of the book value of the acquired
party's equity investment held before the acquisition date and the investment cost newly added on the acquisition
date shall be used as the initial investment cost of such an investment. For the equity investment held before the
acquisition date other comprehensive income recognized due to accounting of the equity method shall undergo
accounting treatment using the basis the same as that used by the investee to directly dispose of relevant assets or
liabilities when such an investment is disposed of.When the influencing capability of the investee is converted from control to a significant influence or common
control together with other investors due to investment disposal the long-term equity investment cost for which
recognition shall be terminated is first carried over according to the proportion of investment disposal. On such a
basis the remaining long-term equity investment cost is compared with the share attributable to the Company in
the fair value of the investee's identifiable net assets at the time of original investment which is calculated
according to the remaining shareholding proportion. For the goodwill part to be embodied in the investment
evaluation the book value of long-term equity investment shall not be adjusted. Where the investment cost is less
than the share attributable to the Company in the fair value of the investee's identifiable net assets at the time of
original investment any excess shall be adjusted against retained earnings when the long-term equity investment
cost is adjusted. For the share attributable to the Company in the investee's realized net profits and losses between
18 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
acquisition of the original investment and conversion to accounting of the equity method due to investment
disposal the book value of the long-term equity investment shall be adjusted meanwhile any excess shall be
adjusted against retained earnings for the share attributable to the Company in the investee's realized net profits
and losses (excluding the cash dividends or profits distributed or declared to distribute) from acquisition of the
original investment to the beginning of the period in which the investment is disposed of and the current profits
and losses shall be adjusted for the share attributable to the Company in the investee's realized net profits and
losses from the beginning of the period in which the investment is disposed of to the investment disposal date. The
share attributable to the Company in the investee's changes in other comprehensive income shall be recorded into
other comprehensive income when the book value of the long-term equity investment is adjusted. The share
attributable to the Company in the investee's other changes in the owner's equities arising from reasons other than
the net profits and losses other comprehensive income and profit distribution shall be recorded into "Capital
reserves — other capital reserves" when the book value of the long-term equity investment is adjusted. After the
cost method is converted to the equity method for the long-term equity investment the share attributable to the
Company in the investee's realized net profits and losses other comprehensive income and other changes in
owner's equities shall be calculated and recognized according to provisions of the standard in the future period.For the originally held long-term equity investment that can control the investee if the shareholding proportion
declines due to reasons such as partial disposal and the investment cannot be able to control be under common
control with or have significant influences on the investee accounting treatment must be performed for remaining
equity investments according to the recognition and measurement standards for financial instruments. The
difference between the fair value and book value on the date of control loss shall be recorded in the investment
income of the current period.In the process of holding the long-term equity investment if the Company decides to sell all or part of the held
equity of the investee in consideration of all aspects the book value of the long-term equity investment
corresponding to the sold equity shall be carried over accordingly and the difference between the selling price and
the book value of long-term equity investment for disposal shall be recognized as disposal profits and losses.If the Company disposes of all the long-term equity investments accounted by the equity method when accounting
based on the equity method is terminated for other comprehensive income originally subject to the accounting of
equity method the accounting treatment is performed using the basis the same as that used by the investee to
directly dispose of relevant assets or liabilities. All the owner's equities that are recognized due to changes in other
owner's equities other than the net profits and losses other comprehensive income and profit distribution of the
investee shall be transferred to the investment income of the current period when accounting based on the equity
method is terminated. If a part of the long-term equity investment accounted by the equity method is disposed of
and the residual equity is still accounted for using the equity method other comprehensive income originally
subject to the accounting of equity method shall be handled using the basis the same as that used by the investee
to directly dispose of relevant assets or liabilities and be carried over by proportion and the owner's equities that
are recognized due to other changes in owners' equities other than the net profits and losses other comprehensive
income and profit distribution of the invested entity shall be carried over to the investment income of the current
period according to the proportion.
19. Investment real estate
The Company's investment real estate includes a land use right that is leased out a land use right held for transfer
18 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
upon capital appreciation and a building that is leased out.The Company's investment real estate is measured at its cost and the Company uses the cost method for a
subsequent measurement of its investment real estate. The depreciation and amortization of the investment real
estate shall be made in accordance with the accounting policies of fixed assets or intangible assets of the Company.When the Company changes the purpose of the investment real estate such as for self-use it shall transfer the
relevant investment real estate to other assets.Please refer to Note III. 25 Long-term asset impairment for the impairment test method and impairment reserve
accrual method of investment real estate.
20. Fixed assets
(1) Recognition criteria of fixed assets
The Company's fixed assets refer to tangible assets held for the production of commodities provision of labor
services lease or operation and management with a service life exceeding one accounting year. Fixed assets
cannot be recognized unless they simultaneously meet the conditions as follows:
1) The economic interests related to the fixed assets are likely to flow into the enterprise.
2) The cost of this fixed asset can be measured reliably.
(2) Measurement of fixed assets
The fixed assets are measured at cost.
1) The cost of a purchased fixed asset consists of the purchase price taxes freight loading and unloading fees
professional service fees and other expenses that bring the fixed asset to the expected conditions for use and that
may be relegated to the fixed asset.
2) If the payment for a fixed asset is delayed beyond the normal credit conditions and it is of a financing nature
in effect the cost of the fixed asset shall be recognized based on the present value of the purchase price. The
difference between the actual payment and the present value of the purchase price shall be included in the current
profits and losses within the credit period unless it shall be capitalized in accordance with Accounting Standards
for Business Enterprises No. 17 — Borrowing Costs.
3) The cost of self-constructed fixed assets consists of the necessary expenditures incurred before the assets reach
the predetermined usable state.
4) The cost invested in a fixed asset by the investor shall be recognized based on the value stipulated in the
investment contract or agreement other than those of unfair value stipulated in the contract or agreement.
5) The costs of fixed assets acquired through the exchange of non-monetary assets debt restructuring business
combination and lease shall be respectively recognized in accordance with Accounting Standards for Business
Enterprises No. 7 — Exchange of Non-monetary Assets Accounting Standards for Enterprises No. 12 — Debt
Restructuring Accounting Standards for Business Enterprises No. 20 — Business Combinations and Accounting
Standards for Business Enterprises No. 21 — Leases.
(3) Classification of fixed assets
The Company's fixed assets are classified into houses and buildings machinery and equipment electronic
equipment transportation equipment etc.
(4) Depreciation of fixed assets
1) Recognition of depreciation method service life expected net salvage value rate and annual depreciation
18 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
rate:
The depreciation of fixed assets shall be made by the straight-line method. The annual depreciation rate recognized
according to the category service life and expected net salvage value rate of fixed assets is as follows:
Expected Net Salvage Expected Service Life Annual Depreciation Rate
Category of Fixed Assets
Value Rate (%) (year) (%)
Houses and buildings 5.00 20.00 4.75
Machinery and equipment 5.00 6.00-10.00 9.50-15.83
Electronic equipment 5.00 2.00-3.00 31.67-47.50
Transportation equipment 5.00 3.00-4.00 23.75-31.67
Others 5.00 3.00-5.00 19.00-31.67
Depreciation of fixed assets of which the impairment reserves have been accrued: For a fixed asset of which the
impairment reserves have been accrued the depreciation of the fixed asset shall be made based on the amount of
deducting its expected net salvage value depreciation amount and impairment reserves from the original price of
the fixed asset and remaining service life of the fixed assets.For the fixed assets that have reached the intended usable condition but have not prepared the final account for
completion their costs shall be recognized at their estimated value and their depreciation shall be made
accordingly. After completion of the final account the original estimated value of the fixed assets shall be adjusted
by their actual costs but the original depreciation amount does not require adjusting.
2) Check of service life expected net salvage value and depreciation method of fixed assets:
The Company shall at least at the end of each year have a check on the service life expected net salvage value
and the depreciation method of the fixed assets. If the Company finds that there is any difference between the
expected service life and the previously estimated service life of a fixed asset the expected service life of the fixed
asset shall be adjusted; if there is any difference between the amount of expected net salvage value and the
previously estimated amount of the net salvage value the expected net salvage value shall be adjusted; if any
significant change is made on the form of the realization of the expected economic benefits concerning a fixed
asset the method for the depreciation of the fixed asset shall be changed. If any change is made to the service life
expected net salvage value and depreciation method of a fixed asset it shall be regarded as a change in the
accounting estimates.
(5) Treatment of subsequent expenditures for fixed assets
Subsequent expenditures incurred on a fixed asset refer to repair expenses renovation expenses repair costs and
decoration expenses incurred in the course of the use of the fixed asset. Their accounting treatment is as follows:
Where subsequent expenditures of a fixed asset such as renovation expenses meet the conditions of recognizing
the fixed asset they shall be recorded into the cost of the fixed asset and the book value of the replaced part of the
subsequent expenditures shall be deducted; where subsequent expenditures of a fixed asset such as repair costs do
not meet the conditions of recognizing the fixed asset they shall be recorded into the current profits and losses in
which they are incurred; where the decoration expenses of a fixed asset meet the conditions of recognizing the
fixed asset they shall be measured in a single account of "Fixed assets" and the depreciation of the fixed asset
shall be made separately by the straight-line method in a shorter time of the period of two decorations and
remaining usable life of the fixed asset.
19 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
The improvement expenditures incurred on a fixed asset leased by operating leases shall be capitalized and
reasonably amortized as long-term prepaid expenses.
(6) Impairment test method and accrual method for impairment reserves of fixed assets
Please refer to Note III. 25 Long-term asset impairment for the impairment test method and impairment reserve
accrual method of fixed assets.
21. Construction in progress
The term "construction in progress" refers to all necessary expenditures incurred before the acquired fixed assets
enable the project to reach expected usable condition including direct project materials direct payroll installation
costs for equipment to be installed and project construction project management fees net profits and losses of
project commissioning and approved capitalized borrowing costs.
(1) Valuation of construction in progress
The Company's construction in progress shall be measured individually by the construction project and valuated
at actual cost.
(2) Time when construction in progress is carried forward to fixed assets
When the construction in progress reaches the expected usable condition they shall be transferred to fixed assets
at their actual cost. For the fixed assets that have reached the expected usable condition but have not prepared the
final account for completion they shall be charged to the account at their estimated value and shall be adjusted
after their actual value is recognized.Please refer to Note III. 25 Long-term asset impairment for the impairment test method and impairment reserve
accrual method of construction in progress.
22. Borrowing costs
Borrowing costs are interests and other costs incurred by the Company in connection with the borrowing of the
funds including interests amortization of discounts or premiums related to borrowings ancillary costs incurred
in connection with the arrangement of borrowings and exchange differences arising from foreign currency
borrowings.
(1) Recognition of capitalization of borrowing costs
The borrowing costs that are directly attributable to the acquisition construction or production of a qualifying
asset shall be capitalized and the amounts of other borrowing costs incurred shall be recorded into the profits and
losses of the period in which they are incurred. Qualifying assets are fixed assets investment real estate and
inventories that necessarily take a substantial period for acquisition construction or production to get ready for
their intended use or sale.
(2) Period of capitalization of borrowing costs
1) Time of capitalization of borrowing costs:
The capitalization of borrowing costs commences only when all the following conditions are satisfied:
a. expenditures for the asset have been incurred;
b. borrowing costs have been incurred;
c. activities relating to the acquisition construction or production of the asset that are necessary to prepare the
asset for its intended use or sale have commenced.
2) Time of ceasing capitalization of borrowing costs:
19 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Capitalization of borrowing costs ceases when the qualifying asset acquired constructed or produced becomes
ready for its intended use or sale. The subsequent borrowing costs shall be recorded in the current profits and
losses.
3) Recognition of suspending capitalization of borrowing costs:
When an abnormal interruption occurs during the construction or production of an asset that satisfies the conditions
for capitalization and the interruption continues for more than three months consecutively the capitalization of
borrowing expense will be paused the borrowing expense incurred during the suspension will be included in the
current profits and losses.
(3) Computing method of capitalizing amount of borrowing costs
During the capitalization period the amount of interest (including amortization of discounts or premiums) to be
capitalized for each accounting period shall be recognized as follows:
1) If a specialized loan is borrowed for the purchase construction or production of assets that meet the
capitalization conditions the amount shall be determined based on the actual interest expenses incurred in the
current period of the specialized loan minus the interest income obtained from depositing unused loans in the bank
or the investment income obtained from temporary investments.
2) Where general funds are borrowed for the acquisition construction or production of a qualifying asset the
amount of interest to be capitalized on such general borrowings shall be calculated and recognized by applying a
capitalization rate of such general borrowings to the weighted average of the excess amounts of accumulated
expenditures on the asset over and above the amounts of special borrowings. The capitalization rate shall be
calculated and recognized by the weighted average interest rate of general borrowings.Where there is any discount or premium the amount of discounts or premiums that shall be amortized during each
accounting period shall be recognized by the real interest rate method and an adjustment shall be made to the
amount of interest in each period. During the period of capitalization the amount of interest capitalized during
each accounting period shall not exceed the amount of interest incurred to the relevant borrowings in the current
period.Ancillary costs in connection with special borrowings that are incurred before the qualifying assets acquired
constructed or produced become ready for their intended use or sale shall be capitalized based on the incurred
amount when they are incurred and they shall be recorded into the cost of the qualifying asset; those incurred after
the qualifying assets acquired constructed or produced become ready for its intended use or sale shall be
recognized as expenses based on the incurred amount when they are incurred and shall be recorded in the current
profits and losses. The ancillary costs arising from a general borrowing shall be recognized as expenses at their
incurred amount when they are incurred and shall be recorded in the current profits and losses.
23. Usufruct assets
For the determination method of right-of-use asset and accounting treatment method please refer to Note III. 35
Lease.
24. Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company. Intangible assets can be recognized only when they meet the conditions simultaneously as follows:
a. they are consistent with the definition of intangible assets;
19 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
b. the economic benefits related to intangible assets are likely to flow into the Company;
c. the cost of intangible assets can be measured reliably.
(1) Measurement of intangible assets
The intangible assets shall be measured according to their cost or fair value (if increased through business
combination not under common control).
(2) Subsequent measurement
The Company shall analyze and judge the service life of intangible assets when it obtains intangible assets. If the
Company is unable to forecast the period when the intangible asset can bring economic benefits to it it shall be
regarded as an intangible asset with an uncertain service life.With regard to an intangible asset with limited service life its amortization amount shall be amortized by the
expected realization pattern of its economic benefits if the Company is unable to recognize the expected realization
pattern reliably intangible assets shall be amortized by the straight-line method.The Company shall at least at the end of each year check the service life and the amortization method of intangible
assets with limited service life. If necessary it shall adjust the said service life and amortization method.With regard to an intangible asset with an uncertain service life its amortization amount shall not be amortized
but the Company shall check the service life of the said intangible asset every year and shall carry out an
impairment test for it.
(3) Estimation of service life
As for intangible assets with limited service life the estimation of their service life generally considers the
following factors:
1) general life cycle of products manufactured by using the assets and information about service life of similar
assets available;
2) present situation of technologies and process and estimation for future development trends;
3) market demand of products manufactured or services rendered by using the assets;
4) expected actions of present or potential competitors;
5) expected maintenance expenses for economic capacity from the assets and the Company's expected capability
to pay relevant expenses;
6) laws and regulations or similar restrictions relating to the control period of the assets such as concession
period and lease period;
7) relevance with the service life of other assets held by the Company etc.
(4) Division of research expenditures and development expenditures included in expenditures for internal
research and development projects
1) Research expenditures in internal research and development projects shall be recorded into the current profits
and losses when they are incurred.
2) The expenditures for the development stage of internal R&D projects shall be recognized as intangible assets
when the following conditions are met at the same time:
a. completed development of the intangible asset to make the use or sale of the intangible assets feasible
technically;
b. an intent to complete the intangible assets and use or sell them;
c. how the intangible asset will generate economic benefits including the ability to demonstrate the existence of a
19 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
market for the output of the intangible asset or the intangible asset itself or if it is to be used internally the
usefulness of the intangible asset;
d. availability of adequate technical financial and other resources to complete the development and to use or sell
the intangible asset;
e. ability to measure reliably the expenditure that is attributable to the intangible asset during its development.Where the expenditures at the research stage or at the development stage cannot be distinguished all expenditures
to research and development shall be included in the current profits and losses.
(5) Impairment test method and accrual method of impairment reserves for intangible assets
Please refer to Note III. 25 Long-term asset impairment for the impairment test method and impairment reserve
accrual method of intangible assets.
25. Impairment of long-term assets
On the balance sheet date if there is any sign showing possible impairment of assets (referring to the assets other
than inventories equity instruments that have no quoted price and reliable fair value measurement in active market
investment real estate measured by fair value model consumable biological assets assets formed under
construction contract deferred income tax assets residual value not guaranteed by the renter in the financing lease
and financial assets) their recoverable amount shall be estimated based on single assets. Where it is difficult to
estimate the recoverable amount of the single assets the recoverable amount of the assets shall be recognized
based on their asset group or combination of asset groups.The recoverable amount shall be recognized in light of the higher one of the net amount of the fair value of the
single assets asset group or combination of asset groups less the disposal expenses and the present value of the
expected future cash flow of the single assets asset group or combination of asset groups.Where the recoverable amount of the single assets is lower than their book value the asset impairment reserve
shall be accrued accordingly based on the difference between the book value of the single assets and their
recoverable amount. Where the recoverable amount of an asset group or a combination of asset groups is lower
than its book value it shall be recognized as the corresponding impairment loss. The amount of the impairment
loss shall first be charged against the book value of goodwill which is apportioned to the asset group or combination
of asset groups then charged against the book value of other assets in proportion to the weight of other assets in
the asset group or combination of asset groups with the goodwill excluded. The charges against the book value of
the assets above shall be treated as the impairment loss of the single assets (including the goodwill) and the
impairment reserves of the single assets shall be accrued accordingly.Once the above loss of asset impairment is recognized it shall not be transferred back in future accounting periods.
26. Long-term unamortized expenses
Long-term deferred expenses refer to the expenses incurred by the Company but attributable to the current and
subsequent accounting periods of more than one year (excluding one year) including the expenses for
improvement of fixed assets leased by operating lease.Long-term deferred expenses shall be recorded into the account based on their actual expenditure and shall be
averagely amortized by their beneficial period if long-term deferred expenses cannot benefit subsequent
accounting periods the unamortized value of the project shall be all transferred to the current profits and losses.
19 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
27. Contract liabilities
Contract liability refers to the Company's obligation to transfer goods to customers for consideration received or
receivable from customers. If before the Company transfers the goods to the customer the customer has paid the
contract consideration or the Company has obtained the unconditional right to receive payment the Company will
at the earlier time between the actual payment by the customer and the payment due present the amount received
or receivables as contract liabilities. Contract assets and contract liabilities under the same contract are presented
in net amount and contract assets and contract liabilities under different contracts are not offset.
28. Payroll
(1) Accounting treatment of short-term payroll
In the accounting period during which employees provide services to the Company the Company recognizes the
short-term payroll incurred as liabilities and charges them to the current profits and losses or relevant asset costs.
(2) Accounting treatment for post-employment benefits
Post-employment benefits can be divided into the defined contribution plan and the defined benefit plan
1) In the accounting period during which employees provide services for the Company the amount to be deposited
calculated based on the defined contribution plan is recognized as liabilities and included in the current profits and
losses or relevant asset costs.
2) The accounting treatment for the defined benefit plan generally includes the following steps:
a. According to the Expected Cumulative Benefit Unit (ECBU) method unbiased and mutually consistent actuarial
assumptions are used to estimate relevant demographic and financial variables quantify the obligations arising
from the defined benefit plan and determine the period to which the obligations relate.b. If there are assets in the defined benefit plan the deficit or surplus formed by deducting the present value of the
defined benefit plan obligation from the fair value of the defined benefit plan assets shall be recognized as net
liabilities or net assets of the defined benefit plan. For the defined benefit plan with a surplus the Company shall
measure the net assets based on the surplus or asset ceiling of the benefit plan (whichever is lower). The asset
ceiling refers to the present value of the economic interest that can be obtained by the Company from refunding
or reducing future contributions to the defined benefit plan.c. At the end of the period the costs of payroll arising from the defined benefit plan are recognized as service costs
net interest on net liabilities or net assets of the defined benefit plan and changes arising from the remeasurement
of net liabilities or net assets. The service costs and net interest on net liabilities or net assets of the defined benefit
plan are included in the current profits and losses or relevant asset costs while changes arising from the
remeasurement of net liabilities or net assets are included in other comprehensive income and cannot be transferred
back to profits and losses in subsequent accounting periods. However the amount recognized in other
comprehensive income can be transferred within the equity section.d. A settlement gain or loss is recognized during the settlement of the defined benefit plan.
(3) Accounting treatment for termination benefits
The payroll liabilities that arise from the termination benefits shall be recognized on the earlier one of the
following two dates and included in the current profits and losses:
1) When the Company cannot unilaterally cancel the termination benefits provided as a result of a plan to
terminate employment or a proposal to downsize.
19 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
2) When the Company recognizes the cost or expense related to reconstruction involving the payment of
termination benefits.
(4) Accounting treatment for other long-term employee benefits
For other long-term employee benefits provided by the Company to its employees that comply with the defined
contribution plan the accounting treatment shall be conducted according to the defined contribution plan. For
benefits other than these the accounting treatment shall be conducted according to the defined benefit plan.However the portion of the relevant payroll costs that relate to "changes arising from the remeasurement of net
liabilities or net assets of the defined benefit plan" shall be included in the current profits and losses or related
asset costs.
29. Lease liabilities
For the methods of recognition and accounting treatment of lease liabilities please refer to Note III. 35 Lease.
30. Estimated liabilities
(1) Recognition criteria of estimated liabilities
When business related to contingencies such as external guarantee pending litigation or arbitration product quality
assurance staff reduction loss contract restructuring obligations and fixed asset disposal obligations that meet
the following conditions it shall be recognized as liabilities:
1) the liabilities are current obligations undertaken by the Company;
2) the fulfillment of the liabilities might cause outflow of economic benefits from the enterprise;
3) the amount of the liabilities can be reliably measured.
(2) Measurement methods of estimated liabilities
Accrued liabilities shall be measured on the best estimate of the expenditures required to fulfill current obligations.if there is a continuous range for the necessary expenses and if all the outcomes within this range are equally likely
to occur the best estimate shall be determined by the midpoint of the range. In other cases the best estimate shall
be determined by the following methods:
1) when a contingency is related to a single item the best estimate shall be determined based on the most
probable amount;
2) when a contingency is related to multiple items the best estimate shall be calculated and determined based on
all possible amounts and their probabilities of occurrence.If all or part of the expenditure required to settle the estimated liabilities of the Company is expected to be
compensated by a third party or other parties the amount of compensation shall be separately recognized as an
asset only when it is virtually certain that the compensation will be obtained. The amount recognized for the
compensation shall not exceed the book value of the recognized estimated liabilities.
31. Share-based payment
(1) Accounting treatment of share-based payment
Share-based payment refers to the transaction of granting equity instruments or bearing liabilities recognized based
on equity instruments for obtaining services from employees or other parties. The share-based payment is classified
into equity-settled share-based payment and cash-settled share-based payment.
1) Equity-settled share-based payment
19 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
The equity-settled share-based payments in exchange for services provided by employees are measured at the fair
value of the equity instruments granted to employees on the grant date. The fair value is calculated by the straight-
line method and included in the relevant costs or expenses based on the best estimate of the number of vested
equity instruments in the vesting period when it is vested only after the service in the vesting period is completed
or the specified performance terms are met. When it is vested immediately after the grant it is included in relevant
costs or expenses on the grant date and the capital reserve is increased accordingly.On each balance sheet date during the vesting period the Company makes the best estimate of subsequent
information such as the latest change in the number of vesting employees to correct the estimated number of vested
equity instruments. The aforementioned estimated influences are included in current relevant costs or expenses
and the capital reserves are adjusted correspondingly.The equity-settled share-based payment in exchange for the services of other parties shall be measured at the fair
value of the services of other parties on the obtaining date if the services of other parties can be measured reliably.The equity-settled share-based payment shall be measured at the fair value of the equity instruments on the
obtaining date of the services of other parties if the fair value of the services of other parties cannot be measured
reliably while the fair value of the equity instruments can be measured reliably and be included in the relevant
costs or expenses and the shareholders' equity shall be increased correspondingly.
2) Cash-settled share-based payment
The cash-settled share-based payments are measured at the fair value of liabilities determined based on shares or
other equity instruments undertaken by the Company. When it is vested immediately after the grant it is included
in relevant costs or expenses on the grant date and the liabilities are increased correspondingly. If it is vested after
completing the services in the vesting period or meets the specified performance terms the current obtained
services are included in costs or expenses based on the best estimate of vesting and at fair value of liabilities borne
by the Company on each balance sheet date of the vesting period and the liabilities are increased correspondingly.On each balance sheet date and settlement date before the settlement of the relevant liabilities the fair value of the
liabilities is re-measured with the changes included in the current profits and losses.
(2) Accounting treatment for amending and terminating share-based payment plan
When the Company amends the share-based payment plan if the fair value of equity instruments granted is
increased due to the amendment the increase of the services obtained will be recognized correspondingly by the
increase of the fair value of equity instruments. The increase in the fair value of equity instruments refers to the
difference between the fair value of equity instruments before and after amendment on the amendment date. If the
amendment reduces the total fair value of the share-based payment or adopts other unfavorable methods to the
employees the accounting treatment of the obtained services will be continued as if the modification has never
occurred unless the Company cancels part or all of the equity instruments granted.During the vesting period if the granted equity instrument is canceled the Company will handle the cancellation
as an accelerated vesting the amount that shall be recognized during the remaining vesting period is immediately
included in the current profits and losses with the capital reserves recognized at the same time. If an employee or
other party can choose to meet the non-vesting conditions but fails to meet them during the vesting period the
Company shall treat that as a cancellation of the grant of equity instruments.
32. Revenue
When the contract between the Company and the customer simultaneously meets the following conditions the
19 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Company recognizes the revenue at the point when the customer obtains control over the relevant goods: the parties
to the contract have approved the contract and promised to perform their respective obligations; the contract
clarifies the rights and obligations of the parties to the contract about the transferred goods or the provided services;
the contract has clear payment terms related to the transferred goods; the contract has commercial substance that
is the performance of the contract will change the risk time distribution or amount of the Company's future cash
flow; and the consideration that the Company is entitled to obtain due to its transfer of goods to customers is likely
to be recovered.At the commencement date of the contract the Company identifies individual performance obligations in the
contract and allocates the transaction price to individual performance obligations according to the relative
proportion of the stand-alone selling price of the goods promised by individual performance obligations. When
determining the transaction price the Company considers the impact of a variable consideration major financing
components in the contract non-cash consideration consideration payable to customers and other factors.The Company recognizes the transaction price allocated to individual performance obligations as revenue at the
point when the customer obtains control over the relevant goods. When judging whether the customer has obtained
control over the goods the Company considers the following signs: where the Company has the current right to
receive payment for the goods that is the customer has the current payment obligation for the goods; where the
Company has transferred the legal ownership of the goods to the customer that is the customer has the legal
ownership of the goods; where the Company has transferred the goods to the customer in kind that is the customer
has taken possession of the goods in kind; where the Company has transferred the main risks and payments of the
ownership of the goods to the customer that is the customer has obtained the main risks and payments of the
ownership of the goods; where the customer has accepted the goods; and other signs that the customer has obtained
control over the goods.The Company mainly sells household appliances and their accessories which usually only include the performance
obligations of the transferred goods.
(1) Revenue from selling goods
1) For the revenue from domestic sales of products the Company mainly adopts the form of payment in advance.
The Company recognizes the revenue when the product is delivered to the purchaser the shipping document is
issued or the customer's receipt is obtained the amount of revenue from product sales is determined the payment
for goods is recovered or the receipt certificate is obtained and the relevant economic benefits are likely to flow
in.
2) In terms of the export sales income the Company recognizes the revenue when the products are declared and
departed according to the contract the bill of lading is obtained and the sales revenue is determined.
(2) Revenue from rendering labor services
1) For the revenue from warehousing services the Company recognizes the revenue monthly by the working hours
and standard wages of the services provided facilities used and related expenses when the amount of revenue is
determined.
2) For the revenue from material processing services the Company recognizes the revenue when the materials are
processed according to the contract and delivered to the customer to obtain the customer's signed receipt and the
amount of revenue is determined.
3) The Company's service charge and commission income include the service charge income of acceptance
19 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
business service charge income of entrusted loan etc.For the service charge and commission income the completion time of the contractual performance obligations is
determined according to the business settlement sheet formulated through settlement with the customer when the
business is completed and the amount of revenue is recognized according to the terms and ratios stipulated in the
business contract or agreement.
(3) Income from the transfer of the right to use assets
Income from the transfer of the right to use assets includes interest income rental income etc.The Company recognizes the income from transferring the right to use assets when the income amount can be
reliably measured and the relevant economic benefits are likely to flow into the enterprise.
1) The interest income of the Company mainly includes the interest income from deposits in financial enterprises
and loan interest income. Interest income from deposits in financial enterprises is recognized regularly based on
the time of deposit and the effective interest rate. Loan interest refers to the income recognized by the Company
for granting self-operated loans and accruing interest regularly. The loan interest income is recognized according
to the effective interest rate method.The effective interest rate method is calculating the amortized cost and interest income or interest expense for each
period based on the effective interest rate financial assets or financial liabilities. The effective interest rate refers
to the interest rate used to discount the future cash flows of a financial asset or financial liability within the expected
period of existence or an applicable shorter period into the current book value of the financial asset or financial
liability. When determining the effective interest rate the Company estimates future cash flow based on all
contractual terms of financial assets or financial liabilities but does not consider the loss of future credits. All the
charges transaction fees and premiums or discounts paid or collected by the Company as part of the effective
interest rate shall be considered when determining the effective interest rate.
2) The recognition conditions for the rental income of the Company are as follows:
a. a lease contract agreement or other settlement notices recognized by the Lessee are available;
b. the obligations stipulated in the contract are fulfilled; the lease invoice is issued and the price has been
obtained or will be obtained for sure;
c. the rental cost can be measured reliably.
33. Government grants
Government grants refer to the Company's free acquisition of monetary and non-monetary from the government
excluding capital invested by the government as the owner. Government grants consist of asset-related government
grants and income-related government grants.Government grants obtained by the Company for the purchase construction or forming the long-term assets in
other ways are defined as asset-related government grants and all the other government grants are defined as
income-related government grants. If the government document does not specify the grant object the following
mode is adopted to classify the subsidies into income-related government grants and asset-related government
grants:
(1) If the government document specifies the item to which the grant aims the allocation should be based on the
relative proportion of the expenditure amount to form assets and the expenditure amount included in expenses in
the budget of this specific item and this allocation proportion needs to be reviewed on every balance sheet date
and changed when necessary.
19 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
(2) If the government document provides only a general presentation of the purpose without specifying the specific
item the grants shall be regarded as income-related government grants.The asset-related government grants are recognized as deferred income upon acquisition and are included in the
profits and losses in reasonable and systematic installments over the useful life of the asset when the relevant asset
reaches its intended usable state. Where the relevant assets are sold transferred scrapped or damaged before the
end of their useful lives the undistributed deferred income balance is transferred to the current profits and losses
of the asset disposal.In terms of income-related government grants those are used for compensating the related expenses or losses in
the later period are recognized as deferred income upon acquisition and included in the current profits and losses
during the period when the relevant costs or losses are recognized; those are used for compensating the related
cost expenses or losses incurred are included in the current profits and losses directly upon acquisition.Government grants related to daily activities are included in other income; government grants not related to daily
activities are included in non-operating revenue and expenses.
(3) If policy preferential loans are obtained with interest discounts accounting treatment should be carried out by
distinguishing between the following two ways of obtaining them:
1) Where the financial department disburses the discount interest fund to the lending bank the lending bank
provides a loan to the Company at a policy preferential interest rate the fair value of the loan is used as the entry
value of the loan the borrowing cost is calculated according to the effective interest rate method and the difference
between the actual amount received and the fair value of the loan is recognized as deferred income. The deferred
income is amortized using the effective interest rate method during the duration of the loan to offset the relevant
borrowing cost.
2) Where the financial department disburses the discount interest fund to the Company directly the corresponding
discount is used to offset the relevant borrowing costs.
(4) Government grants that are monetary assets are measured at the amount received or receivable. Government
grants that are non-monetary assets are measured at the fair value; if the fair value cannot be reliably acquired
they are measured at the nominal amount. The Company usually recognizes and measures government grants
based on the actual amount received upon receipt. However funds that have conclusive evidence at the end of the
period indicating that they meet the relevant conditions stipulated in the financial support policy and are expected
to receive financial support are measured at the amount receivable. Government grants measured at the amount
receivable shall simultaneously comply with the following conditions:
1) The amount of receivable grants has been confirmed by the authoritative government department by issuing a
document or can be independently and reasonably calculated according to the relevant provisions of the officially
issued financial fund management measures and it is predicted that its amount is not subject to significant
uncertainty.
2) The basis is the financially supported projects and their financial fund management measures that are officially
released by the local finance department and actively disclosed according to the provisions of the Regulation of
the People's Republic of China on Disclosure of Government Information as well as its financial fund management
measures and the management measures should be inclusive (any enterprise meeting the defined conditions can
apply for the grants) rather than specially formulated for specific enterprises.
3) Other conditions that shall be met according to specific conditions of the Company and this matter of grants.
20 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
34. Deferred income tax assets/deferred income tax liabilities
The deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the
difference between the tax base of the assets and liabilities and their book values (temporary difference). For
deductible losses that can be deducted from taxable income in subsequent years according to the provisions of the
tax law the corresponding deferred income tax assets are recognized. For temporary differences arising from the
initial recognition of goodwill the corresponding deferred income tax liabilities are not recognized. For temporary
differences arising from the initial recognition of assets or liabilities arising from non-business combination
transactions that neither affect accounting profits nor taxable income (or deductible losses) the corresponding
deferred income tax assets and deferred income tax liabilities are not recognized. At the balance sheet date the
deferred income tax assets and deferred income tax liabilities are measured at the tax rate applicable to the period
during which the assets are expected to be recovered or the liabilities are expected to be settled.The Company recognizes the deferred income tax assets to the extent of the amount of the taxable income which
it is most likely to acquire and which can be deducted from the deductible temporary differences deductible losses
and tax deductions.Deferred income tax liabilities are recognized for all taxable temporary differences arising from the investments
in subsidiaries joint ventures and associates except to the extent that both of the following conditions are met:
the Company can control the timing of the transferring back of the temporary differences; the temporary difference
is unlikely to be reversed in the foreseeable future. Deferred income tax assets are recognized for all deductible
temporary differences associated with investments in subsidiaries joint ventures and associates if all the following
conditions are met: the deductible temporary difference is likely to be transferred back in the foreseeable future
and the taxable profit in the future is likely to be available against which the deductible temporary difference can
be utilized.The deferred income tax assets and the deferred income tax liabilities that meet the following conditions are
presented at the net amount after offsetting:
1) The deferred income tax assets and deferred income tax liabilities relate to the income taxes levied by the same
taxation authority on the same taxpayer of the Company.
2) The taxpayer of the Company has a legal right to settle current income tax assets and current income tax
liabilities on a net basis.
35. Lease
Lease refers to a contract in which the Company transferred or acquired the right to control the use of one or more
identified assets for a certain period in exchange for or payment of consideration. On the contract commencement
date the Company evaluates whether the contract is a lease or includes a lease.
(1) With the Company as the lessee
1) Initial measurement
On the commencement date of the lease term the Company will recognize the right to use the leased assets during
the lease term as the right-of-use asset and recognize the current value of the unpaid lease amount as a lease liability
except for short-term leases and low-value asset leases. When calculating the current value of the lease amount
the Company uses the implied interest rate in lease as a discount rate. If the implied interest rate in the lease cannot
be determined the lessee's incremental borrowing interest rate is used as the discount rate.Right-to-use assets should be initially measured at cost. The cost includes:
20 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
a. the initially measured amount of the lease liabilities;
b. the lease payments made on or before the commencement date of the lease term. If there is a lease incentive
the amount related to the lease incentive that has been enjoyed is deducted;
c. the initial direct expenses incurred by the lessee;
d. the estimated cost that the lessee will incur for dismantling and removing the leased assets restoring the site
where the leased assets are located or restoring the leased assets to the state agreed in the lease terms.
2) Subsequent measurement
The Company accrues depreciation by referring to fixed asset depreciation policies (refer to Note III. 20 Fixed
assets). If the Company can reasonably determine the obtaining of the ownership of the leasing assets when the
lease term expires it will accrue depreciation within the remaining service life of the leasing asset. Where it is
impossible to reasonably determine if the ownership of the leased assets can be acquired upon the expiration of
the lease term the Company will accrue depreciation within a shorter period between the lease term and the
remaining useful life of the leased assets.For lease liabilities the Company calculates its interest expenses for each period of the lease term at a fixed
periodic interest rate and includes them in the current profits and losses or the cost of related assets. The variable
lease amount that is not included in the measurement of lease liabilities is included in the current profits and losses
or cost of related assets when incurred.After the lease term starts in case of changes in the substantially fixed payment amount the estimated amount
payable of the guarantee residual value the index or ratio used for determining the lease amount change in the
evaluation results or actual vesting of the purchase option renewal option or termination option the Company
re-measures the lease liability based on the current value of the changed lease amount and adjusts the book value
of the right-of-use assets accordingly. If the book value of the right-of-use assets has been reduced to zero but the
lease liabilities still need to be further reduced the Company will include the remaining amount in the current
profits and losses.
3) Short-term leases and low-value asset leases
For short-term leases (with a lease term of no more than 12 months from the beginning of the lease) and low-value
asset leases the Company adopts a simplified treatment method to include the lease amount into the cost of relevant
asset costs or the current profits and losses during the lease term by the straight-line method or other systematic
and reasonable methods instead of recognizing the right-of-use assets and lease liabilities.
(2) With the Company as the lessor
On the commencement date of the lease the Company divides the lease into the financial lease and operating lease
based on the essence of the transaction. Financial lease refers to a lease that transfers substantially almost all risks
and rewards associated with the ownership of the assets. Operating lease refers to leases other than the financial
lease.
1) Operating leases
The Company adopts the straight-line method to recognize the lease amount of the operating lease as the rental
income during the lease term. Variable lease payments in connection with the operating lease that are not included
in the lease payment are included in the current profits and losses when incurred.
2) Financial lease
On the commencement date of the lease term the Company recognizes the financial lease receivables and
20 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
derecognizes the financial lease assets. The financial lease receivables are initially measured by the net lease
investment (the sum of the unguaranteed residual value and the present value of the lease payments that have not
been received on the commencement date of the lease term discounted at the implied interest rate of the lease)
and interest income during the lease term is calculated and recognized at a fixed periodic interest rate. The variable
lease payments obtained by the Company that are not included in the measurement of net lease investment are
included in the current profits and losses when incurred.
36. Discontinuing operation
Discontinuing operation refers to a constituent part that meets one of the following conditions can be distinguished
separately and has been disposed of or classified as held for sale:
(1) this constituent part represents an independent main business or a separate main business area;
(2) this constituent part is part of an associated plan for disposing of an independent main business or a separate
main business area;
(3) this constituent part is a subsidiary specially acquired for resale.
The Company presents the profits and losses from continuing operations and the profits and losses from
discontinuing operations in the consolidated income statement and the income statement respectively. For the non-
current asset or disposal group held for sale that does not comply with the definition of discontinuing operations
its impairment loss and amount transferred back and profits and losses from disposal shall be presented as profits
and losses from continuing operations. The impairment losses and amount transferred back from discontinuing
operations and other operating profits and losses as well as profits and losses from disposal are presented as profits
and losses from discontinuing operations.For the discontinuing operations presented in the current period the information previously presented as profits
and losses from continuing operations is re-presented as profits and losses from discontinuing operations for
comparable accounting periods in the current financial statements. Where the disposal group that is intended to be
discontinued rather than sold meets the conditions for the relevant constituent part in the definition of discontinuing
operations it is presented as a discontinuing operation from the date of discontinuation of use. Where the control
over a subsidiary is lost due to reasons such as selling the investment in the subsidiary and this subsidiary complies
with the definition of discontinuing operations the relevant profits and losses from discontinuing operations are
presented in the consolidated income statement.
37. Segment report
The Company determines the operating segments based on the internal organizational structure management
requirements and internal reporting systems determines the report segments based on the operating segments
and discloses segment information.Operating segments refer to the constituent part of the Company that meets the following conditions at the same
time:
(1) this constituent part can generate revenue and expenses in daily activities;
(2) the management of the Company can regularly evaluate the operating results of the constituent part to determine
the allocation of resources and evaluate its performance;
(3) the Company can obtain the relevant accounting information of this constituent part such as its financial status
operating results and cash flows. If two or more operating segments have similar economic characteristics and
20 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
meet certain conditions they can be merged into one operating segment.
38. Share repurchase
If the Company's shares are acquired due to registered capital reduction or employee rewards the amount paid
shall be treated as treasury shares and registered at the same time for future reference. If the repurchased shares
are canceled the difference between the total face value of the canceled shares and the amount paid for the
repurchase shall be offset against capital reserve. If the capital reserve is insufficient the offset shall be made
against retained earnings. If the repurchased shares are rewarded to employees of the Company as equity-settled
share-based payments refer to Note III. 31 Share-based payment for corresponding accounting treatment.
39. Hedging
To avoid certain risks the Company hedges certain financial instruments as hedging instruments. The hedge that
meets the prescribed conditions will be handled by the Company using hedge accounting methods. The Company's
hedging includes fair value hedging cash flow hedging and hedging of net investment in overseas operations.At the beginning of the hedging the Company officially designates the hedging tool and the hedged item and
prepares written documents on the hedging relationship and the risk management strategy and risk management
objectives of the Company engaged in hedging. In addition the Company will continue to assess the effectiveness
of the hedging when and after the hedging begins.
(1) Fair value hedging
For eligible hedging instruments designated as fair value hedging the gains or losses generated thereby are
included in the current profits and losses. If a hedging instrument is used to hedge non-trading equity instrument
investment (or its component) that is selected to be measured at fair value with changes included in other
comprehensive income the gains and losses generated by the hedging instrument are included in other
comprehensive income. Gains or losses of a hedged item arising from the hedged risk exposure are included in the
current profits and losses while the book value of the hedged item is adjusted. If a hedged item is measured at fair
value the gains or losses incurred by the hedged item due to the hedged risk exposure are included in the current
profits and losses or other comprehensive income and there is no need to adjust the book value of the hedged item.When the Company revokes the designation of the hedging relationship the hedging instrument has expired or
been sold the contract is terminated or exercised or the conditions for the use of hedge accounting are no longer
met the use of hedge accounting is terminated.
(2) Cash flow hedging
For eligible hedging instruments designated as cash flow hedging the portion of the gains or losses generated
thereby that is determined to be an effective hedge is included in other comprehensive income while the portion
that is determined to be an ineffective hedge is included in the current profits and losses.If the expected transaction causes the Company to subsequently recognize a non-financial asset or non-financial
liability or if the expected transaction of the non-financial asset or non-financial liability forms a firm commitment
applicable to fair value hedge accounting the Company will transfer out the amount of cash flow hedge reserve
originally recognized in other comprehensive income and include it in the initial recognition amount of the asset
or liability. For other cash flow hedging the Company will during the same period when the expected cash flow
being hedged affects profits or losses transfer out the amount of cash flow hedge reserve originally recognized in
other comprehensive income and include it in the current profits and losses.
20 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
If it is expected that all or part of the net losses originally included in other comprehensive income cannot be
compensated in the future accounting period the portion that cannot be compensated out is transferred and
included in the current profits and losses.When the Company terminates the use of hedge accounting for cash flow hedging the accumulated cash flow
hedge reserves that have been included in other comprehensive income are retained when future cash flows are
expected to continue to occur and are transferred out of other comprehensive income and included in the current
profits and losses when future cash flows are expected to no longer occur.
(3) Hedging of net investment in overseas operations
Hedging of net investment in overseas operations is accounted for using a method similar to cash flow hedging.Among the gains or losses of hedging instruments the portion that is determined to be an effective hedging is
included in other comprehensive income while the portion that is determined to be an ineffective hedging is
included in the current profits and losses.Gains and losses that have been included in other comprehensive income are transferred out of other
comprehensive income and included in the current profits and losses when disposing of overseas operations.
40. Safe production expenses
Some subsidiaries of the Company withdraw safe production expenses in accordance with national regulations and
include them in the costs of related products or current profits and losses.Where the expenses for safe production extracted are of a cost nature the special reserves shall be directly written
off. If the expenses for safe production extracted are used to form fixed assets the expenses incurred by the account
collection of "construction in progress" shall be recognized as fixed assets when the safety project is completed
and reaches the expected serviceable state; at the same time special reserves are written off based on the cost of
fixed assets and accumulated depreciation of the same amount is recognized. The fixed asset will no longer be
depreciated in the future.
41. Risk reserve
In accordance with regulations such as the Administrative Measures for the Reserve Accrual of Financial
Enterprises ("Accrual Measures") (CJ [2012] No. 20) issued by the Ministry of Finance the subsidiaries of the
Company in the financial industry have established a general risk reserve based on withdrawing asset impairment
reserves to compensate for potential losses related to risk assets that have not yet been identified. The general risk
reserve will be treated as a distribution of profits. It is an integral part of the owner's equity. In principle it should
not be less than 1.5% of the ending balance of risk assets. According to the requirements of the Accrual Measures
if the proportion of the general reserve balance of financial enterprises in the ending balance of risk assets is
difficult to reach 1.5% at one time it can be in place in years. In principle it should not exceed 5 years.
42. Changes in major accounting policies and accounting estimate
(1) Changes in major accounting policies
1) Interpretation No. 17 of Accounting Standards for Business Enterprises
On November 9 2023 the Ministry of Finance issued Interpretation No. 17 of Accounting Standards for Business
Enterprises (hereinafter referred to as "Interpretation No. 17"). The change in accounting policy did not
20 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
significantly impact the financial indicators including total assets total liabilities net assets and net profits of the
Company. Therefore the above explanations have no significant impact on the financial statements of the
Company.
2) Interpretation No. 18 of Accounting Standards for Business Enterprises
On December 31 2024 the Ministry of Finance issued Interpretation No. 18 of Accounting Standards for Business
Enterprises (hereinafter referred to as "Interpretation No. 18") which came into effect upon its issuance. The
Company chooses to implement this interpretation in advance from the year of its issuance (2024). The Company's
provision for quality guarantees that do not fall under individual performance obligations was originally recorded
under "selling expenses". According to Article 2 "Accounting for quality guarantees that do not fall under
individual performance obligations" of Interpretation No. 18 it is now recorded under "main business cost" and
"other business cost" presented in the "operating cost" of the income statement and subject to retrospective
adjustments.Unit: CNY
Item 2023
Sales expenses -2327937473.10
Operating cost 2327937473.10
(2) Changes in major accounting estimates
None.IV. Taxes
1. Main tax categories and tax rates
Category Tax Basis Tax Rate
Value added from sales of goods
Value-added tax 13.00% 9.00% 6.00% etc.or provision of labor services
Urban maintenance &
Turnover tax payable 7.00% 5.00%
construction tax
Education surcharge Turnover tax payable 3.00%
Local education surcharge Turnover tax payable 2.00%
Business income tax Taxable income 34.00% 25.00% 20.00% 16.50% 15.00% etc.[Note 1] The Company's subsidiaries Gree Hong Kong Electric Appliances Sales Co. Ltd. Yinlong Electric
Vehicle (Hong Kong) Group Co. Ltd. and Energy Storage Technology (China) Group Co. Ltd. operate in the
Hong Kong Special Administrative Region where the profit tax rate is 16.50%.[Note 2] The Company's subsidiaries Gree (Brazil) Electric Appliances Co. Ltd. and Brazil United Electric
Appliances Industry and Commerce Co. Ltd. operate in Brazil where the federal business income tax rate is
34.00%.
[Note 3] The Company's subsidiaries DunAn Precision Machinery (USA) Group Co. Ltd. DunAn Microstaq
Inc. and Altairnano Inc. operate in the United States and are subject to paying federal taxes and state taxes.The federal tax rate is 21.00% while the state tax rates for DunAn Precision and DunAn Microstaq are
20 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
0.50%1.00% of gross profit on sales.
[Note 4] The Company's subsidiary DunAn Metals (Thailand) Co. Ltd. operates in Thailand where the business
income tax rate is 20.00%.[Note 5] The Company's subsidiary Japan DunAn International Co. Ltd. operates in Japan where the business
income tax rate is 23.20%.[Note 6] The Company's subsidiary DunAn Korea Co. Ltd. operates in South Korea where the business income
tax rate is 19.00%.[Note 7] The Company's subsidiary DunAn International (Europe) GmbH operates in Frankfurt Germany
where the business income tax rate is 15.00%.[Note 8] Some subsidiaries of the Company are small and low-profit enterprises subject to the Announcement
No. 12 of 2023 issued by the Ministry of Finance and the State Taxation Administration of Announcement on
Further Supporting the Development of Small and Micro Enterprises and Individual Businesses in Relevant Tax
Policies where the taxable income is calculated at a reduced rate of 25.00% and the business income tax is
paid at a rate of 20.00%.
2. Tax preferences
(1) The Company was identified as a high-tech enterprise in 2023 with preferential policies for high-tech
enterprises (High-tech Enterprise Certificate No.: GR202344009175). The Company applied the income tax
rate of 15.00% which is valid for 3 years.
(2) Deemed to be high and new tech enterprises the following subsidiaries of the Company applied the
enterprise income tax rate of 15.00% in 2024.High-tech Date of Obtaining the
No. Name of Taxpayer Enterprise High-tech Enterprise Expiry Date
Certificate No. Certificate
1 Zhuhai Landa Compressor Co. Ltd. GR202344010890 2023/12 Three years
2 Hefei Landa Compressor Co. Ltd. GR202334001713 2023/10 Three years
3 Zhengzhou Landa Compressor Co. Ltd. GR202341000260 2023/11 Three years
4 Wuhan Landa Compressor Co. Ltd. GR202342000821 2023/10 Three years
5 Gree Electric Enterprises (Ma’anshan) Ltd. GR202334005154 2023/11 Three years
6 Zhuhai Gree Xinyuan Electronics Co. Ltd. GR202244010903 2022/12 Three years
7 Zhuhai Kaibang Motor Manufacturing Co. Ltd. GR202444011859 2024/12 Three years
8 Hefei Kaibang Motor Co. Ltd. GR202334002919 2023/10 Three years
9 Henan Kaibang Motor Co. Ltd. GR202341001262 2023/11 Three years
10 Gree (Hefei) Electric Appliances Co. Ltd. GR202334003315 2023/10 Three years
11 Zhuhai Gree Daikin Precision Mold Co. Ltd. GR202244010633 2022/12 Three years
12 Zhuhai Gree Daikin Device Co. Ltd. GR202444005850 2024/11 Three years
Zhuhai Gree Green Refrigeration Technology
13 GR202344006183 2023/12 Three years
Research Center Co. Ltd.
14 Gree (Zhengzhou) Electric Appliances Co. Ltd. GR202341000272 2023/11 Three years
15 Gree (Wuhan) Electric Appliances Co. Ltd. GR202242006898 2022/11 Three years
20 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
High-tech Date of Obtaining the
No. Name of Taxpayer Enterprise High-tech Enterprise Expiry Date
Certificate No. Certificate
Gree (Shijiazhuang) Small Home Appliances
16 GR202213000723 2022/10 Three years
Co. Ltd.
17 Gree (Wuhu) Electric Appliances Co. Ltd. GR202334001396 2023/10 Three years
Gree (Shijiazhuang) Electric Appliances Co.
18 GR202213000331 2022/10 Three years
Ltd.
19 Zhuhai EWPE Information Technology Inc. GR202244010117 2022/12 Three years
20 Gree (Changsha) HVAC Equipment Co. Ltd. GR202343003172 2023/10 Three years
Gree HVAC and Refrigeration Equipment
21 GR202442001843 2024/11 Three years
(Wuhan) Co. Ltd.Gree (Zhongshan) Small Home Appliances Co.
22 GR202444004022 2024/11 Three years
Ltd.Gree TOSOT (Suqian) Home Appliances Co.
23 GR202332019062 2023/12 Three years
Ltd.
24 Wuhu Gree Precision Manufacturing Co. Ltd. GR202234003673 2022/10 Three years
25 Zhuhai Gree Precision Mold Co. Ltd. GR202344006995 2023/12 Three years
Zhuhai Gree Intelligent Equipment Technology
26 GR202344006963 2023/12 Three years
Institute Co. Ltd.
27 Zhuhai Gree New Material Co. Ltd. GR202244008332 2022/12 Three years
28 Gree (Hangzhou) Electric Appliances Co. Ltd. GR202333008152 2023/12 Three years
29 Gree (Nanjing) Electric Appliances Co. Ltd. GR202232008326 2022/11 Three years
30 Gree (Luoyang) Electric Appliances Co. Ltd. GR202241002986 2022/12 Three years
31 Zhuhai Gree Green Control Technology Co. Ltd. GR202444006582 2024/11 Three years
32 Zhuhai Edgeless Integrated Circuit Co. Ltd. GR202444007876 2024/12 Three years
33 Hefei Kinghome Electrical Co. Ltd. GR202434000373 2024/10 Three years
Zhuhai Gree Green Resources Recycling Co.
34 GR202244004245 2022/12 Three years
Ltd.
35 Zhuhai Lianyun Technology Co. Ltd. GR202344010393 2023/12 Three years
36 Gree Altairnano New Energy Inc. GR202444004210 2024/11 Three years
37 Zhuhai Guangtong Automobile Co. Ltd. GR202344009746 2023/12 Three years
38 Northern Aotai Nanotechnologies Co. Ltd. GR202413000621 2024/11 Three years
39 Zhuhai Gree Intelligent Equipment Co. Ltd. GR202244003127 2022/12 Three years
40 Zhejiang DunAn Thermal Technology Co. Ltd. GR202333008719 2023/12 Three years
41 Zhuhai DunAn Thermal Technology Co. Ltd. GR202444001315 2024/11 Three years
42 Tianjin Huaxin Machinery Co. Ltd. GR202212000479 2022/11 Three years
43 Hangzhou Safety Equipment Co. Ltd. GR202333000665 2023/12 Three years
44 Zhejiang DunAn Hetian Metals Co. Ltd. GR202433002455 2024/12 Three years
45 Zhuhai Huayu Metal Co. Ltd. GR202444001742 2024/11 Three years
46 Chongqing Huachao Metal Co. Ltd. GR202451102589 2024/12 Three years
47 Zhejiang DunAn Machinery Co. Ltd. GR202433007625 2024/12 Three years
20 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
High-tech Date of Obtaining the
No. Name of Taxpayer Enterprise High-tech Enterprise Expiry Date
Certificate No. Certificate
Zhejiang DunAn Electro-Mechanical
48 GR202433003799 2024/12 Three years
Technology Co. Ltd.
49 Suzhou Huayue Metal Co. Ltd. GR202332005590 2023/11 Three years
DunAn Automotive Thermal Management
50 GR202333001123 2023/12 Three years
Technology Co. Ltd.
51 Jiangsu Tongsheng Heat Exchanger Co. Ltd. GR202332010309 2023/12 Three years
Jilin Songliang Seed Industry Technology Co.
52 GR202222000173 2022/11 Three years
Ltd.DunAn (Wuhu) Zhongyuan Automatic Control
53 GR202434005561 2024/11 Three years
Co. Ltd.Shanghai Datro Automotive Technology Co.
54 GR202431002439 2024/12 Three years
Ltd.
55 Tianjin Datro Technology Co. Ltd. GR202312002617 2023/12 Three years
56 Datro Automotive Systems (Nantong) Co. Ltd. GR202432013506 2024/12 Three years
(3) The following subsidiaries of the Company enjoy the country's western development policy with an income
tax rate of 15.00%.No. Name of Taxpayer Start Time
1 Gree (Chongqing) Electric Appliances Co. Ltd. 2008/01/01
2 Chongqing Landa Compressor Co. Ltd. 2015/01/01
3 Chongqing Kaibang Motor Co. Ltd. 2013/01/01
4 Gree (Chengdu) Electric Appliances Co. Ltd. 2022/01/01
5 Gree (Ganzhou) Electric Appliances Co. Ltd. 2023/01/01
6 Chengdu Guangtong Automobile Co. Ltd. 2017/06/13
(4) The following subsidiaries of the Company are entitled to enjoy the preferential policy of business income tax
in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin with an income tax rate of 15.00%.No. Name of Taxpayer Start time
1 Zhuhai Mingruida Supply Chain Technology Co. Ltd. 2022/01/01
(5) According to the Announcement on the Value-Added Tax Deduction Policy for Advanced Manufacturing
Enterprises (Announcement No. 43 of 2023 issued by the Ministry of Finance and the State Taxation
Administration) from January 1 2023 to December 31 2027 advanced manufacturing enterprises are
allowed to deduct the value-added tax payable by an additional 5% of the deductible input tax amount in the
current period. The Company and some of its subsidiaries enjoy the above preferential policies.
(6) According to the Notice of the Ministry of Finance and the State Taxation Administration on Value-added
Tax Policies for Software Products (CS [2011] No. 100) general value-added taxpayers who sell software
products developed and produced by themselves will be subject to refund policy for the portion of their actual
value-added tax burden exceeding 3%. The Company and some of its subsidiaries enjoy the above refund
policy for software products.V. Notes to consolidated financial statements
20 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
For the following notes (including notes to the main items of the parent company's financial statements) unless
otherwise specified "the end of the period" means December 31 2024 "the beginning of the period" means
January 01 2024 "the end of the previous year" means December 31 2023 "the current year" refers to 2024 and
"the previous year" refers to 2023. Unless otherwise stated the amount unit is CNY.
1. Monetary funds
Item Ending Balance Beginning Balance
Cash on hand 493036.20 747248.45
Bank deposit 53207652730.66 57386642916.17
Other monetary funds [Note 1] 35080968670.38 35532754818.90
Deposits in central bank [Note 2] 1876552187.02 1388929188.19
Deposits in other banks 18624283224.90 23842392737.43
Subtotal 108789949849.16 118151466909.14
Accrued interest 5110511948.78 5953520380.48
Total 113900461797.94 124104987289.62
Including: Total amount deposited
2169874292.62512193597.72
outside mainland China
[Note 1] The ending balance of other monetary funds refers to banks' acceptance bill deposits guarantee
deposits letters of credit deposits etc. where the restricted fund was CNY34277985954.61.[Note 2] The statutory deposit reserve in the Company's deposits in the central bank is CNY1867216106.71
and its use is restricted.[Note 3] Except the above cases there are no other funds in the ending balance of monetary funds that are
restricted in use or have potential recovery risks due to mortgage pledge or freezing.
2. Trading financial assets
Item Ending Balance Beginning Balance
Financial assets measured at fair value
with changes included in other 16548258632.49 9614423403.40
comprehensive income
Including: Debt instrument investment 16532341817.49 9591172203.40
Equity instrument investment 15916815.00 23251200.00
Total 16548258632.49 9614423403.40
3. Derivative financial assets
Item Ending Balance Beginning Balance
Foreign exchange derivatives 108919513.22
Total 108919513.22
4. Notes receivable
(1) Notes receivable presentation by categories
21 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Commercial acceptance bill 91936979.50
Subtotal 91936979.50
Less: Bad debt reserves 4596848.98
Total 87340130.52
(2) Notes receivable that have been pledged at the end of the period
None.
(3) Notes receivable that have been endorsed or discounted at the end of the period and have not yet due on
the balance sheet date
Amount Derecognized at the End of Amount Recognized at the End of the
Item
the Period Period
Commercial acceptance bill 1311115.58
Total 1311115.58
5. Accounts receivable
(1) Accounts receivable disclosed by account age
Account Age Ending Balance Beginning Balance
<1 year 15243930067.09 13969080305.98
12 years 1047136307.87 1399796274.58
23 years 1085992561.17 1134033141.29
>3 years 3179790154.64 3089537345.23
Subtotal 20556849090.77 19592447067.08
Less: Bad debt reserves 3724961702.71 3492969949.52
Total 16831887388.06 16099477117.56
[Note] The Company's accounts receivable with an account age of over 1 year are mainly special funds receivables
for disposing of waste electrical and electronic products and payments for new energy vehicles.
(2) Presentation by categories of bad debt accrual method
21 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance
Category Book Balance Bad debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Accounts receivable with bad
debt reserves accrued by 1205313781.71 5.86 1205313781.71 100.00
individual item
Accounts receivable with bad
debt reserves accrued by 19351535309.06 94.14 2519647921.00 13.02 16831887388.06
portfolios
Including: Account age
17166688323.8183.512242140497.5013.0614924547826.31
portfolio
Low risk portfolio 2184846985.25 10.63 277507423.50 12.70 1907339561.75
Total 20556849090.77 100.00 3724961702.71 18.12 16831887388.06
(Continued)
Beginning Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Accounts receivable with bad
debt reserves accrued by 1289240411.21 6.58 1183947802.62 91.83 105292608.59
individual item
Accounts receivable with bad
debt reserves accrued by 18303206655.87 93.42 2309022146.90 12.62 15994184508.97
portfolios
Including: Account age
16283805825.8783.111906323339.2411.7114377482486.63
portfolio
Low risk portfolio 2019400830.00 10.31 402698807.66 19.94 1616702022.34
Total 19592447067.08 100.00 3492969949.52 17.83 16099477117.56
1) Accounts receivable with bad debt reserves accrued by individual item
Ending Balance
Name
Credit Loss Reason for
Book Balance Bad Debt Reserves
Rate (%) Accruing
It is difficult to
64 companies in total 1205313781.71 1205313781.71 100.00
recover
Total 1205313781.71 1205313781.71 100.00
(Continued)
Beginning Balance
Name
Credit Loss Reason for
Book Balance Bad Debt Reserves
Rate (%) Accruing
It is difficult to
69 companies in total 1289240411.21 1183947802.62 91.83
recover in full
Total 1289240411.21 1183947802.62 91.83
2) Accounts receivable in the portfolio with bad debt reserves accrued by account age portfolio
Ending Balance
Account Age
Book Balance Bad Debt Reserves Credit Loss Rate (%)
<1 year 14752930104.89 737646505.80 5.00
12 years 527769444.17 90012719.11 17.06
21 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance
Account Age
Book Balance Bad Debt Reserves Credit Loss Rate (%)
23 years 758138262.94 344679463.94 45.46
>3 years 1127850511.81 1069801808.65 94.85
Total 17166688323.81 2242140497.50 13.06
3) Accounts receivable in the portfolio with bad debt reserves accrued by low risk portfolio
Ending Balance
Name
Book Balance Bad Debt Reserves Credit Loss Rate (%)
Low risk portfolio 2184846985.25 277507423.50 12.70
Total 2184846985.25 277507423.50 12.70
(3) Bad debt reserves accrued recovered or reversed in the current period
Change in the Current Period
Beginning
Category Changes in the Ending Balance
Balance
Scope of Accrual/Recovery/Reversal Write-off
Consolidation
Accrual by
individual 1183947802.62 2866906.09 98251229.23 79752156.23 1205313781.71
item
Account age
1906323339.241420079.11354599110.5520202031.402242140497.50
portfolio
Low risk
402698807.66-125191384.16277507423.50
portfolio
Total 3492969949.52 4286985.20 327658955.62 99954187.63 3724961702.71
[Note] There was no significant recovery or reversal of bad debt reserves during the current period.
(4)Accounts receivable written off in the current period
Item Written Off Amount
242 companies in total 99954187.63
Total 99954187.63
(5)Accounts receivable and contract assets of the top 5 debtors in terms of ending balance collected by
debtors
The total amount of accounts receivable and contract assets of the top 5 debtors in terms of ending balance
collected by debtors is CNY5265593215.38 accounting for 24.61% of the ending balance of accounts
receivable and contract assets and the amount of bad debt reserves is CNY622838466.45.
6. Contract assets
(1) Contract assets
21 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance Beginning Balance
Item Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserve Reserve
Accrual
by
7841594.467841594.46
individual
item
Account
age 793112642.68 243289401.68 549823241.00 1006698488.92 422787788.10 583910700.82
portfolio
Low risk
48736450.006160139.1142576310.89317305464.0062404031.17254901432.83
portfolio
Total 841849092.68 249449540.79 592399551.89 1331845547.38 493033413.73 838812133.65
(2) Bad debt reserves accrued recovered or reversed in the current period
Accrual/Recovery/Reversal
Item Beginning Balance Total
in the Current Period
Accrual by individual item 7841594.46 -7841594.46
Account age portfolio 422787788.10 -179498386.42 243289401.68
Low risk portfolio 62404031.17 -56243892.06 6160139.11
Total 493033413.73 -243583872.94 249449540.79
[Note] There was no significant recovery or reversal of bad debt reserves during the current period.
(3) Contract assets written off in the current period
None.
7. Receivables financing
(1) Receivables financing presentation by categories
Item Ending Balance Beginning Balance
Notes receivable measured at fair
9126154662.229795997038.02
value
Including: Banker's acceptance bill 8905508716.74 9652625873.81
Financial company's
220645945.48143371164.21
acceptance bill
Accounts receivable measured at fair
474571622.55380092630.39
value
Including: Accounts receivable 474571622.55 380092630.39
Total 9600726284.77 10176089668.41
(2) Receivables financing pledged by the Company at the end of the period
Item Pledged Amount at the End of the Period
Banker's acceptance bill 3545182191.40
Financial company's acceptance bill 178332675.74
Total 3723514867.14
(4)Receivables financing that has been endorsed or discounted by the Company at the end of the period but
not yet due at the balance sheet date
21 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount Derecognized at the End of Amount Recognized at the End of the
Item
the Period Period
Banker's acceptance bill 26831680333.17
Financial company's acceptance bill 636251.00
Total 26832316584.17
(4) Receivables financing — credit impairment reserves of accounts receivable
1) Credit impairment reserves accrued by portfolios
Ending Balance
Item Bad Debt Reserves
Book Balance Change in Fair Value Book Value
Accounts receivable 474571622.55 474571622.55 23728581.13
Total 474571622.55 474571622.55 23728581.13
2) Changes in credit impairment reserves
Item Beginning Balance Accrual/Recovery/Reversal Ending Balance
Accounts receivable 22939575.95 789005.18 23728581.13
Total 22939575.95 789005.18 23728581.13
(5) Receivables financing written off in the current period
None.
8. Advance payments
(1) Advance payment presentation by account age
Ending Balance Beginning Balance
Account Age
Amount Proportion (%) Amount Proportion (%)
<1 year 1427996706.28 93.31 2305877292.53 92.51
12 years 58964864.97 3.85 43605485.46 1.75
23 years 12778693.25 0.84 98923012.64 3.97
>3 years 30572054.15 2.00 44241604.68 1.77
Total 1530312318.65 100.00 2492647395.31 100.00
(2) Significant advance payments aged over one year
None.
(3) Prepayments of the top 5 prepayment objects in terms of ending balance collected by prepayment
objects
The total amount of advance payments of the top 5 suppliers in the ending balance was CNY647934718.27
accounting for 42.34% of the total ending balance of advance payments.
21 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
9. Other receivables
Item Ending Balance Beginning Balance
Dividends receivable 4325690.04 19936649.83
Other receivables [Note 1] 865405534.36 806621972.59
Total 869731224.40 826558622.42
[Note 1] Other receivables in the table above refer to other receivables after the deduction of interest receivable
and dividends receivable.[Note 2] The Company has no interest receivable balance at the end and the beginning of the period.
(1) Dividends receivable
1) Dividends receivable
Item Ending Balance Beginning Balance
Dividends receivable 4325690.04 19936649.83
Total 4325690.04 19936649.83
2) Important dividends receivable aged over 1 year
None.
(2) Other receivables
1) Disclosure by account age
Account Age Ending Balance Beginning Balance
<1 year 918927111.10 559642182.51
12 years 109462906.88 49650562.46
23 years 37700792.39 87315224.98
>3 years 434126013.28 559302826.00
Subtotal 1500216823.65 1255910795.95
Less: Bad debt reserves 634811289.29 449288823.36
Total 865405534.36 806621972.59
2) Classification by nature of payment
Nature of Payment Ending Balance Beginning Balance
Intercourse funds 1406601684.90 763529291.78
Equity and asset transfer payments 93615138.75 492381504.17
Subtotal 1500216823.65 1255910795.95
Less: Bad debt reserves 634811289.29 449288823.36
Total 865405534.36 806621972.59
3) Disclosure by classification of bad debt reserves accrual methods
21 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Other accounts receivable with
bad debt reserves accrued by 481013553.15 32.06 478139164.48 99.40 2874388.67
individual item
Other accounts receivable with
bad debt reserves accrued by 1019203270.50 67.94 156672124.81 15.37 862531145.69
portfolios
Including: Account age
1019203270.5067.94156672124.8115.37862531145.69
portfolio
Total 1500216823.65 100.00 634811289.29 42.31 865405534.36
(Continued)
Beginning Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Other accounts receivable with
bad debt reserves accrued by 510787480.98 40.67 354908028.59 69.48 155879452.39
individual item
Other accounts receivable with
bad debt reserves accrued by 745123314.97 59.33 94380794.77 12.67 650742520.20
portfolios
Including: Account age
745123314.9759.3394380794.7712.67650742520.20
portfolio
Total 1255910795.95 100.00 449288823.36 35.77 806621972.59
* Other accounts receivable with bad debt reserves accrued by individual item
Ending Balance
Name
Credit Loss Reason for
Book Balance Bad Debt Reserves
Rate (%) Accruing
It is difficult to
Company 1 170791178.69 170791178.69 100.00
recover
It is difficult to
Company 2 121063353.05 121063353.05 100.00
recover
It is difficult to
26 companies remaining 189159021.41 186284632.74 98.48
recover in full
Total 481013553.15 478139164.48 99.40
(Continued)
Beginning Balance
Name
Credit Loss Reason for
Book Balance Bad Debt Reserves
Rate (%) Accruing
It is difficult to
Company 1 172325809.58 129244357.19 75.00
recover in full
It is difficult to
Company 2 221500000.00 110750000.00 50.00
recover in full
It is difficult to
13 companies remaining 116961671.40 114913671.40 98.25
recover in full
Total 510787480.98 354908028.59 69.48
* Other receivables in the portfolio with bad debt reserves accrued by account age portfolio
21 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance
Account Age
Book Balance Bad Debt Reserves Credit Loss Rate (%)
<1 year 781097133.57 39054856.80 5.00
12 years 100629034.27 17049877.73 16.94
23 years 36539186.08 9322301.56 25.51
>3 years 100937916.58 91245088.72 90.40
Total 1019203270.50 156672124.81 15.37
4) Accrual of bad debt reserves
Phase I Phase II Phase III
Expected Credit Loss Expected Credit Loss for
Bad debt reserves Expected Credit Total
for the Entire Duration the Entire Duration
Losses in the
(no Credit Impairment (Credit Impairment
Next 12 Months
Occurred) Occurred)
Beginning Balance 27982109.24 421306714.12 449288823.36
Changes in the scope of
-72642.0763113.17-9528.90
consolidation
Accrual in the current
11145389.63174388705.20185534094.83
period
Wrote-off in the current
2100.002100.00
period
Ending Balance 39054856.80 595756432.49 634811289.29
5) Bad debt reserves accrued recovered or reversed in the current period
Change in the Current Period
Beginning Ending
Category Changes in the
Balance Balance
Scope of Accrual/Recovery/Reversal Write-off
Consolidation
Accrual by
354908028.59123231135.89478139164.48
individual item
Account age
94380794.77-9528.9062302958.942100.00156672124.81
portfolio
Total 449288823.36 -9528.90 185534094.83 2100.00 634811289.29
[Note] There was no significant recovery or reversal of bad debt reserves during the current period.
6) Other receivables written off in the current period
Item Written Off Amount
1 company 2100.00
7) Other receivables of top 5 debtors in terms of ending balance collected by debtors
The total amount of other receivables of the top 5 debtors in terms of ending balance collected by debtors
is CNY917518889.54 accounting for 61.16% of the total ending balance of other receivables and the
amount of bad debt reserves is CNY392784446.67.
8) Other receivables due to centralized fund management
None.
10. Buying back the sale of financial assets
21 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Bonds 5625455000.00 3930985000.00
Accrued interest 522294.57 4431450.15
Subtotal 5625977294.57 3935416450.15
Less: Impairment reserves 3077495.66
Total 5625977294.57 3932338954.49
11. Inventory
(1) Classification of inventories
Ending Balance
Inventory Falling Price
Item
Reserves/Impairment
Book Balance Book Value
Reserves of Contract
Performance Costs
Raw materials 7698541352.85 979460215.35 6719081137.50
Goods in process and
1506172848.5442733316.421463439532.12
contract performance costs
Finished goods 17262357795.65 2850241012.37 14412116783.28
Development costs 4404475514.84 4404475514.84
Development products 911797547.81 911797547.81
Total 31783345059.69 3872434544.14 27910910515.55
(Continued)
Beginning Balance
Inventory Falling Price
Item
Reserves/Impairment
Book Balance Book Value
Reserves of Contract
Performance Costs
Raw materials 7057081762.87 1425810833.17 5631270929.70
Goods in process and
2134877242.86115317125.002019560117.86
contract performance costs
Finished goods 21827045795.09 2943541383.93 18883504411.16
Development costs 5674994638.60 5674994638.60
Development products 369809931.38 369809931.38
Total 37063809370.80 4484669342.10 32579140028.70
(2) Inventory falling price reserves and impairment reserves of contract performance costs
Change in the Current Period
Beginning
Item Changes in the Ending Balance
Balance Reversal/Write-
Scope of Accrual
off
Consolidation
Raw materials 1425810833.17 224428.68 68595768.29 515170814.79 979460215.35
21 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Change in the Current Period
Beginning
Item Changes in the Ending Balance
Balance Reversal/Write-
Scope of Accrual
off
Consolidation
Goods in process
and contract
115317125.0072583808.5842733316.42
performance
costs
Finished goods 2943541383.93 89883.83 146470947.41 239861202.80 2850241012.37
Total 4484669342.10 314312.51 215066715.70 827615826.17 3872434544.14
Specific bases for accruing the inventory falling price reserves and reasons for reversing or writing off the
inventory falling price reserves in the current period:
Reversal/Write-off of Inventory
Specific Bases for Accruing the
Item Falling Price Reserves in the Current
Inventory Falling Price Reserves
Period
Inventory cost or net realizable value
Raw materials Received or sold in the current period
whichever is lower
Goods in process and contract Inventory cost or net realizable value
Received or sold in the current period
performance costs whichever is lower
Inventory cost or net realizable value
Finished goods Sold in the current period
whichever is lower
(3) Capitalization amount of borrowing costs included in the ending balance of inventory
None.
(4) Amortization amount of contract performance costs in the current year of CNY281516614.32.
12. Non-current assets due within one year
Item Ending Balance Beginning Balance
Debt investments due within 1 year 1149000000.00
Other debt investments due within 1
10326354820.002181118917.45
year
Monetary investment products due
1500000000.00
within 1 year
Long-term receivables due within 1
40656657.9755162876.25
year
Subtotal 13016011477.97 2236281793.70
Add: Accrued interests 839706290.23 176614895.44
Less: Impairment reserves 931037.47 1263229.85
Total 13854786730.73 2411633459.29
[Note] For monetary investment products due within 1 year please refer to Note V. 28 Other non-current assets.
13. Other current assets
Item Ending Balance Beginning Balance
Input tax to be deducted and prepaid
2221574559.512225932314.59
tax
Bond products 100000000.00 100000000.00
Monetary investment products [Note] 14831000000.00 22059399315.54
Others 252317985.96 181031697.63
22 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Subtotal 17404892545.47 24566363327.76
Add: Accrued interests 175539773.57 341107724.98
Less: Impairment reserves 42975406.21 38529298.59
Total 17537456912.83 24868941754.15
[Note] Monetary investment products include the amount reclassified from other debt investments. For
details please refer to Note V. 16. Other debt investments.
14. Disbursement of loans and advances
(1) Distribution of enterprises and individuals
Item Ending Balance Beginning Balance
Loans and advances measured at
amortized costs:
Disbursement of corporate loans and
442700000.00558000000.00
advances
Including: Loans 442700000.00 558000000.00
Subtotal 442700000.00 558000000.00
Add: Accrued interests 467970.70 671437.49
Less: Impairment reserves 11959035.09 14944828.26
Book value of issued corporate loans
431208935.61543726609.23
and advances
(2) Changes in loan loss reserves
Item Ending Balance Beginning Balance
Beginning Balance 14944828.26 18431750.00
Reversal in the current period 2985793.17 3486921.74
Ending Balance 11959035.09 14944828.26
15. Debt investment
(1) Debt investment
Ending Balance Beginning Balance
Item Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserve Reserve
2149000000.1149000000.11490000
Debt investment 2149000000.00
000000.00
1744482.0
Accrued interest 3211148.67 3211148.67 1744482.05
5
2152211148.1150744482.11507444
Subtotal 2152211148.67
670582.05
Less: Debt investments due 1150744482.
1150744482.03
within 1 year 03
1001466666.1150744482.11507444
Total 1001466666.64
640582.05
(2) Debt investment
22 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance Beginning Balance
Item Effective Effective Coupon Coupon
Face value Interest Date Due Face Value Interest Date Due
Rate Rate
rate rate
Jinghua
No.1 trust 1000000000.00 5.10% 5.10% 2026/05/29
plan
Jinyu
Guoshi trust 999000000.00 5.30% 5.30% 2025/09/30 999000000.00 5.30% 5.30% 2025/09/30
plan
(26th issue)
Agricultural
Bank 150000000.00 2.28% 2.28% 2025/11/25 150000000.00 2.28% 2.28% 2025/11/25
treasury
bonds
Total 2149000000.00 1149000000.00
[Note] Debt investments in the table above include debt investments due within 1 year.
(3) Accrual of impairment reserves
None.
22 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
16.Other debt investments
(1) Other debt investments
Ending Balance
Accumulated
Loss Reserves
Item
Recognized in
Cost Accrued Interest Change in Fair Value Book Value
Other
Comprehensive
Income
Treasury bonds 317943393.24 3551890.42 11157686.76 332652970.42
Corporate bonds and financial bonds 819887584.56 12451534.21 18527435.44 850866554.21
Negotiable certificate of deposit 21529497581.58 1216044331.79 22745541913.37
Subtotal 22667328559.38 1232047756.42 29685122.20 23929061438.00
Less: Other debt investments due within 1 year 10319887584.56 804908383.54 6467235.44 11131263203.54
Other current assets 5700000000.00 81243013.70 5781243013.70
Total 6647440974.82 345896359.18 23217886.76 7016555220.76
(Continued)
Beginning Balance
Accumulated
Loss Reserves
Item
Recognized in
Cost Accrued Interest Change in Fair Value Book Value
Other
Comprehensive
Income
Treasury bonds 316621828.84 3551890.42 6786591.16 326960310.42
Corporate bonds and financial bonds 899720207.58 14149657.51 9897862.42 923767727.51
Negotiable certificate of deposit 16667335007.45 803512433.47 17470847440.92
22 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance
Accumulated
Loss Reserves
Item
Recognized in
Cost Accrued Interest Change in Fair Value Book Value
Other
Comprehensive
Income
Subtotal 17883677043.87 821213981.40 16684453.58 18721575478.85
Less: Other debt investments due within 1 year 2180334092.16 176614895.44 784825.29 2357733812.89
Total 15703342951.71 644599085.96 15899628.29 16363841665.96
[Note] The other debt investments held by the Company are classified as financial assets measured at fair value with changes included in other comprehensive income based
on the intentions of the management and the contractual cash flows. According to the product term they are presented respectively in other debt investments and other current
assets and detailed in other debt investments and non-current assets due within 1 year based on the liquidity of other debt investments. On December 31 2024 there was no
significant difference between the cost of the Company's negotiable certificate of deposit and its fair value.
(2) Other debt investments
Ending Balance Beginning Balance
Other Debt Items Effective Effective
Coupon Rate Coupon Rate
Face Value Interest Rate Date Due Face Value Interest Rate Date Due
(%)(%)
(%)(%)
2025/01/12 to 2024/02/26 to
Negotiable certificate of deposit 21517000000.00 1.80-4.00 1.80-4.00 16667000000.00 3.10-4.00 3.10-4.00
2027/10/212027/10/21
16 coupon-bearing bond 17 200000000.00 2.74 3.10 2026/08/04 200000000.00 2.74 3.10 2026/08/04
20 Nongfa 08 200000000.00 3.45 3.54 20250/9/23 200000000.00 3.45 3.54 2025/09/23
23 CZBank Tier 2 Capital Note 02 200000000.00 3.50 3.50 2033/11/27 200000000.00 3.50 3.50 2033/11/27
22 Huafa Group MTN006 180000000.00 4.20 4.20 2025/04/25 180000000.00 4.20 4.20 2025/04/25
22 Huafa Group MTN009B 180000000.00 4.00 4.00 2025/06/20 180000000.00 4.00 4.00 2025/06/20
16 coupon-bearing bond 17 100000000.00 2.74 3.44 2026/08/04 100000000.00 2.74 3.44 2026/08/04
22 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance Beginning Balance
Other Debt Items Effective Effective
Coupon Rate Coupon Rate
Face Value Interest Rate Date Due Face Value Interest Rate Date Due
(%)(%)
(%)(%)
22 Huafa Group MTN012B 60000000.00 3.75 3.75 2025/08/16 60000000.00 3.75 3.75 2025/08/16
22 Coupon-bearing Bond 19 20000000.00 2.60 2.61 2032/09/01 20000000.00 2.60 2.61 2032/09/01
21 Huafa Group MTN007 70000000.00 4.65 4.65 2024/06/28
19 Huafa Group MTN008B 10000000.00 5.30 5.31 2024/12/11
Total 22657000000.00 17887000000.00
[Note] The other debt investments in the above table include those presented under non-current assets due within 1 year and other current assets.
22 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
17. Long-term receivables
(1) Long-term receivables
Ending Balance
Item
Book Balance Bad Debt Reserves Book Value
Goods of installment sales 105430191.48 30023445.46 75406746.02
Less: Unrealized financing income 11422062.22 11422062.22
Less: Long-term accounts receivable due within 1 year 40656657.97 931037.47 39725620.50
Less: Other current assets 43646104.48 28870155.10 14775949.38
Total 9705366.81 222252.89 9483113.92
(Continued)
Beginning Balance
Item
Book Balance Bad Debt Reserves Book Value
Goods of installment sales 186803996.60 26735849.27 160068147.33
Less: Unrealized financing income 18178746.29 18178746.29
Less: Long-term accounts receivable due within 1 year 55162876.25 1263229.85 53899646.40
Less: Other current assets 49819628.06 24015200.54 25804427.52
Total 63642746.00 1457418.88 62185327.12
[Note] The Company reclassifies long-term receivables due within 1 year to non-current assets due within 1 year
and reclassifies overdue long-term receivables to other current assets.
(2) Disclosure by classification of bad debt reserves accrual methods
Ending Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Long-term accounts receivable
with bad debt reserves accrued
by individual item
Long-term accounts receivable
with bad debt reserves accrued 9705366.81 100.00 222252.89 2.29 9483113.92
by portfolios
Including: Account age
9705366.81100.00222252.892.299483113.92
portfolio
Total 9705366.81 100.00 222252.89 2.29 9483113.92
(Continued)
Beginning Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Long-term accounts receivable
with bad debt reserves accrued
22 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
by individual item
Long-term accounts receivable
with bad debt reserves accrued 63642746.00 100.00 1457418.88 2.29 62185327.12
by portfolios
Including: Account age
63642746.00100.001457418.882.2962185327.12
portfolio
Total 63642746.00 100.00 1457418.88 2.29 62185327.12
Long-term accounts receivable with bad debt reserves accrued by account age portfolios
Ending Balance
Category
Book Balance Bad Debt Reserves Credit Loss Rate (%)
Goods of installment sales 9705366.81 222252.89 2.29
Total 9705366.81 222252.89 2.29
(3) Bad debt reserves accrued recovered or reversed in the current period
Category Beginning Balance Accrual/Recovery/Reversal Ending Balance
Goods of installment sales 1457418.88 -1235165.99 222252.89
Total 1457418.88 -1235165.99 222252.89
(4) Long-term accounts receivable written off in the current period
None.
22 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
18. Long-term equity investments
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Profits and
Adjustment of Declared
Losses on Other Accrual of
Investee Impairment Additional Decreased other Distribution of Impairment
Original Value Investment Changes in Impairment Others Original Value
Reserve Investment Investment Comprehensive Cash Dividends Reserve
Recognized by Equity Reserves
Income or Profits
Equity Method
I. Joint
ventures
SL Group
Jiangwan Rice
1158934.68-12620.241146314.44
Industry Co.Ltd.Subtotal 1158934.68 -12620.24 1146314.44
II. Associates
Gree
(Vietnam)
Electric 1940009.35 1940009.35 1940009.35 1940009.35
Appliances
Inc.Outlook All
Media Co. 35987610.46 -7056245.72 28931364.74
Ltd.Wuhan Digital
Design and
Manufacturing
15390790.44345925.2615736715.70
Innovation
Center Co.Ltd.Coresing
Semiconductor
21291586.95292445.47851343.6020732688.82
Technology
Co. Ltd.Zhuhai
Ronglin
Equity
Investment 2821794849.12 -1042751.57 -173479038.52 2647273059.03
Partnership
(Limited
Partnership)
Zhuhai Jiayao
Food
807887.83903000.00-687902.851022984.98
Technology
Co. Ltd.Henan Yuze
Finance
52575995.191858410.381410618.1053023787.47
Leasing Co.Ltd.
22 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Profits and
Adjustment of Declared
Losses on Other Accrual of
Investee Impairment Additional Decreased other Distribution of Impairment
Original Value Investment Changes in Impairment Others Original Value
Reserve Investment Investment Comprehensive Cash Dividends Reserve
Recognized by Equity Reserves
Income or Profits
Equity Method
Zhuhai
Hanling
Equity
Investment 822322003.98 45240000.00 -7460887.40 5944607.00 763676509.58
Partnership
(Limited
Partnership)
Lanzhou
Guangtong
New Energy 92236259.40 -7233994.07 -685328.00 84316937.33
Automobile
Co. Ltd.Guizhou
Qianzhixing
1119316.95-543754.48575562.47
New Energy
Co. Ltd.Ningxia
Nenggu New
Energy 29546.89 -29546.89
Technology
Co. Ltd.Beijing Liyin
Automobile
4605056.554605056.55
Technology
Co. Ltd.Sichuan Jinshi
Leasing Co. 310838556.07 20761777.80 535539.13 5783718.81 326352154.19
Ltd.Zhuji Rushan
Huiying
Venture
Investment 39734942.72 7833333.33 769986.71 32671596.10
Partnership
(Limited
Partnership)
DunAn
(Tianjin)
Energy Saving 269073693.97 14259033.24 10728253.34 81586539.59 375647520.14
System Co.Ltd.Subtotal 4489748105.87 1940009.35 903000.00 53073333.33 14232495.88 -173628827.39 13990287.51 10728253.34 81586539.59 4356505946.45 1940009.35
Total 4490907040.55 1940009.35 903000.00 53073333.33 14219875.64 -173628827.39 13990287.51 10728253.34 81586539.59 4357652260.89 1940009.35
[Note 1] The change in other comprehensive income in the current period of the joint venture of the Company Zhuhai Ronglin Equity Investment Partnership (Limited
Partnership) (hereinafter referred to as "Zhuhai Ronglin") is due to the fluctuation of the share price of Wingtech Technology Co. Ltd. held by it.
22 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
[Note 2] According to the partnership agreement of Zhuhai Ronglin Equity Investment Partnership (Limited Partnership) the Company invested in Zhuhai Ronglin as a
limited partner. Upon the decision of all partners the general partner is entrusted to perform partnership affairs. For matters related to the partnership submitted by the general
partner to all partners for discussion the voting method of one partner one vote and unanimously approved by all partners is implemented to make resolutions. The Company
has no control over Zhuhai Ronglin and Zhuhai Ronglin is not included in the scope of consolidation of the Company's statements during the reporting period.
19. Other equity instrument investments
(1) Other equity instrument investments
Item Ending Balance Beginning Balance
San'an Optoelectronics Co. Ltd. 1394043525.29 1586483387.45
Wingtech Technology Co. Ltd. 1193148603.36 1517194078.45
Shanghai Highly (Group) Co. Ltd. 339586352.90 626491486.09
RSMACALLINE-HSHS 105810081.91 125653291.82
COFCO Trading (Suibin) Agricultural Development Co.
7000000.007000000.00
Ltd.Xinjiang Joinworld Company Limited 2043265.56
Total 3039588563.46 3864865509.37
(2) Non-trading equity instrument investment
Reason for the
Amount Reason for the
Accumulated Accumulated Amount
Gains Included in Losses Included Transferred Amount Measured
Gains Included in Losses Included Transferred
Dividend Other in Other from Other at Fair Value with
Other in Other from Other
Item Income Comprehensive Comprehensive Comprehensive Changes Included in
Comprehensive Comprehensive Comprehensive
Recognized Income in the Income in the Income to Other
Income at the End Income at the End Income to
Current Period Current Period Retained Comprehensive
of Current Period of Current Period Retained
Earnings Income
Earnings
San'an Based on the
Optoelectronics Co. 3436426.11 192439862.16 605956474.71 management's
Ltd. intention and
23 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Reason for the
Amount Reason for the
Accumulated Accumulated Amount
Gains Included in Losses Included Transferred Amount Measured
Gains Included in Losses Included Transferred
Dividend Other in Other from Other at Fair Value with
Other in Other from Other
Item Income Comprehensive Comprehensive Comprehensive Changes Included in
Comprehensive Comprehensive Comprehensive
Recognized Income in the Income in the Income to Other
Income at the End Income at the End Income to
Current Period Current Period Retained Comprehensive
of Current Period of Current Period Retained
Earnings Income
Earnings
contractual cash
flow
Based on the
management's
RSMACALLINE-
35342832.51 619071258.11 intention and
HSHS
contractual cash
flow
Based on the
management's
Shanghai Highly Sales of some
960805.37 495357248.70 23695744.78 165774110.67 intention and
(Group) Co. Ltd. shares
contractual cash
flow
Based on the
COFCO Trading
management's
(Suibin) Agricultural
400000.00 intention and
Development Co.contractual cash
Ltd.flow
Based on the
management's
Xinjiang Joinworld
842749.35 1001305.34 intention and Sales of shares
Company Limited
contractual cash
flow
Based on the
management's
Wingtech Sales of some
4482374.38 198377802.65 433816279.20 102343911.72 intention and
Technology Co. Ltd. shares
contractual cash
flow
Total 9279605.86 495357248.70 427003246.67 433816279.20 1248723477.60 269119327.73
23 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
20. Investment real estate
Investment real estate using cost measurement model
Item Houses and Buildings Land Use Rights Total
I. Original book value
1. Beginning balance 1130795709.53 50861964.09 1181657673.62
2. Increased amount in the
32825057.984625157.6637450215.64
current period
Including: (1) Transfer-in
32825057.9832825057.98
from fixed assets
(2) Transfer-in from
4625157.664625157.66
intangible assets
3. Decreased amount in the
229030903.74229030903.74
current period
Including: Transfer to fixed
229030903.74229030903.74
assets
4. Ending balance 934589863.77 55487121.75 990076985.52
II. Accumulated
depreciation and
accumulated amortization
1. Beginning balance 535362807.61 13032704.91 548395512.52
2. Increased amount in the
80194361.321955231.2182149592.53
current period
Including: (1) Accrual or
63121543.091155457.1064277000.19
amortization
(2) Transfer-in from
17072818.2317072818.23
fixed assets
(3) Transfer-in from
799774.11799774.11
intangible assets
3. Decreased amount in the
105126505.73105126505.73
current period
Including: Transfer to fixed
105126505.73105126505.73
assets
4. Ending balance 510430663.20 14987936.12 525418599.32
III. Impairment reserves
IV. Book value
1. Book value at the end of
424159200.5740499185.63464658386.20
the period
2. Book value at the
595432901.9237829259.18633262161.10
beginning of the period
[Note] As of December 31 2024 the book value of investment real estate — houses and buildings of which the
Company has not obtained the certificate of title was CNY41600556.61.
23 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
21. Fixed assets
Item Ending Balance Beginning Balance
Fixed assets [Note] 36986760728.25 34023728822.05
Fixed assets in liquidation 9408128.59 11100294.42
Total 36996168856.84 34034829116.47
[Note] The fixed assets in the table above refer to the fixed assets after the deduction of the fixed assets in liquidation.
(1) Fixed assets
Machinery and Transportation
Item Houses and Buildings Electronic Equipment Other Equipment Total
Equipment Equipment
I. Original book value
1. Beginning balance 34566715171.17 28956185091.99 1600846651.52 2616424306.42 842944909.05 68583116130.15
2. Increased amount in
4437091292.773411022159.0999848966.02138602208.05105813548.758192378174.68
the current period
Including: (1) Purchase 603328.45 623198481.01 99708492.67 137065571.57 105813548.75 966389422.45
(2) Transfer-in
from investment real 229030903.74 229030903.74
estate
(3) Transfer-in
from construction in 4207457060.58 2736644547.94 6944101608.52
progress
(4) Increase from
the business 51179130.14 140473.35 1536636.48 52856239.97
combination
3. Decreased amount in
66061895.93302566129.7143868754.9734405350.1823217321.84470119452.63
the current period
Including: (1) Disposal
33236837.95302566129.7143868754.9734405350.1823217321.84437294394.65
or scrapping
(2) Transfer to
32825057.9832825057.98
investment real estate
4. Foreign currency
-23025207.11-15383103.32-291410.10-587189.08-528330.70-39815240.31
financial statement
23 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Machinery and Transportation
Item Houses and Buildings Electronic Equipment Other Equipment Total
Equipment Equipment
translation
5. Ending balance 38914719360.90 32049258018.05 1656535452.47 2720033975.21 925012805.26 76265559611.89
II. Accumulated
depreciation
1. Beginning balance 10685292657.00 19230335206.88 1340579120.06 2394411674.51 748766912.10 34399385570.55
2. Increased amount in
1960529885.182404863333.15115617349.90171288830.39107919070.214760218468.83
the current period
Including: (1) Accrual 1855403379.45 2387428119.22 115609055.84 170521057.30 107919070.21 4636880682.02
(2) Transfer-in
from investment real 105126505.73 105126505.73
estate
(3) Increase from
the business 17435213.93 8294.06 767773.09 18211281.08
combination
3. Decreased amount in
26098735.07242310440.9841184912.3230759866.9919959510.36360313465.72
the current period
Including: (1) Disposal
9025916.84242310440.9841184912.3230759866.9919959510.36343240647.49
or scrapping
(2) Transfer to
17072818.2317072818.23
investment real estate
4. Foreign currency
financial statement -3829004.72 -8306096.91 -290311.90 -358838.74 -273497.75 -13057750.02
translation
5. Ending balance 12615894802.39 21384582002.14 1414721245.74 2534581799.17 836452974.20 38786232823.64
III. Impairment reserves
1. Beginning balance 57785760.01 101084907.65 244907.04 194820.58 691342.27 160001737.55
2. Increased amount in
4788523.99324598969.511119747.721484251.171415178.54333406670.93
the current period
Including: (1) Accrual 4788523.99 324259690.40 1119747.72 1484251.17 1415178.54 333067391.82
(2) Transfer-in
from construction in 339279.11 339279.11
progress
3. Decreased amount in 521198.51 67655.02 30157.12 1618.47 620629.12
23 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Machinery and Transportation
Item Houses and Buildings Electronic Equipment Other Equipment Total
Equipment Equipment
the current period
Including: Disposal or
521198.5167655.0230157.121618.47620629.12
scrapping
4. Foreign currency
financial statement -221719.36 -221719.36
translation
5. Ending balance 62574284.00 424940959.29 1296999.74 1648914.63 2104902.34 492566060.00
IV. Book value
1. Book value at the end
26236250274.5110239735056.62240517206.99183803261.4186454928.7236986760728.25
of the period
2. Book value at the
23823636754.169624764977.46260022624.42221817811.3393486654.6834023728822.05
beginning of the period
[Note] As of December 31 2024 the book value of the Company's fixed assets — houses and buildings of which the Company has not obtained the certificate of title was
CNY15149467033.93. The acquisition of the certificate of title is mainly affected by the progress of the project's final acceptance and the Company is still processing
according to the schedule.
(2) Temporary idle fixed assets
The Company has no significant temporary idle fixed assets.
(3) Fixed assets leased out through operating leases
The Company has no significant fixed assets leased out through operating leases.
(4) Fixed assets in liquidation
Item Ending Balance Beginning Balance
Fixed assets in liquidation 9408128.59 11100294.42
Total 9408128.59 11100294.42
22. Construction in progress
23 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Construction in progress [Note] 3076380868.80 6563911378.94
Total 3076380868.80 6563911378.94
[Note] The construction in progress in the above table refers to the construction in progress after the deduction of construction materials.
(1) Construction in progress
Ending Balance Beginning Balance
Item
Book Balance Impairment Reserve Book Value Book Balance Impairment Reserve Book Value
Gree Altairnano Project 1444064370.64 148185180.76 1295879189.88 1740587474.47 21644400.92 1718943073.55
Zhuhai Jinwan Project 654084649.69 654084649.69 1531971594.79 1531971594.79
Wuhan Mold Project 419342296.60 419342296.60 283100962.02 283100962.02
Zhuhai Electronic
271412147.03271412147.031257752616.621257752616.62
Component Project
Zhuhai Electrical Project 222951605.31 4689734.56 218261870.75 165437659.94 165437659.94
Others 225796441.34 8395726.49 217400714.85 1606705472.02 1606705472.02
Total 3237651510.61 161270641.81 3076380868.80 6585555779.86 21644400.92 6563911378.94
(2) Current changes in important construction in progress
Changes in the Including:
Amount Transferred
Scope of Increased Amount in Disposal in the Capitalization
Item Beginning Balance to Fixed Assets in Ending Balance
Consolidation in the the Current Period Current Period Amount of Interest
the Current Period
Current Period in the Current Period
Gree Altairnano
1740587474.475827981.30302322564.8228520.311444064370.64
Project
Zhuhai Jinwan
1531971594.79336443702.761214330647.86654084649.69659128.09
Project
Wuhan Mold Project 283100962.02 142781999.37 6540664.79 419342296.60 7818426.40
23 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Changes in the Including:
Amount Transferred
Scope of Increased Amount in Disposal in the Capitalization
Item Beginning Balance to Fixed Assets in Ending Balance
Consolidation in the the Current Period Current Period Amount of Interest
the Current Period
Current Period in the Current Period
Zhuhai Electronic
1257752616.621894049687.212880390156.80271412147.03
Component Project
Zhuhai Electrical
165437659.94187505556.51129789217.98202393.16222951605.314295510.38
Project
Others 1606705472.02 7780042.42 1022172026.53 2410728356.27 132743.36 225796441.34 -3974556.58
Total 6585555779.86 7780042.42 3588780953.68 6944101608.52 363656.83 3237651510.61 8798508.29
[Note] The capitalization amount of interest for the current period includes government grants for loan interest discounts.
23 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
23. Usufruct assets
Item Houses and Buildings
I. Original book value
1. Beginning balance 1024626197.90
2. Increased amount in the current period 64158531.01
Including: (1) Lease 53002887.97
(2) Increase from the business combination 11155643.04
3. Decreased amount in the current period 26108956.37
4. Ending balance 1062675772.54
II. Accumulated depreciation
1. Beginning balance 182375689.78
2. Increased amount in the current period 115538137.39
Including: (1) Accrual 110183752.39
(2) Increase from the business combination 5354385.00
3. Decreased amount in the current period 25001845.27
4. Ending balance 272911981.90
III. Impairment reserves
IV. Book value
1. Book value at the end of the period 789763790.64
2. Book value at the beginning of the period 842250508.12
24. Intangible assets
Item Land Use Rights Patent Rights and Others Total
I. Original book value
1. Beginning balance 10853717712.97 3592506682.77 14446224395.74
2. Increased amount in the current
176796084.0459490723.68236286807.72
period
Including: (1) Purchase 176796084.04 35321178.58 212117262.62
(2) Increase from the
24169545.1024169545.10
business combination
3. Decreased amount in the
171420336.3124274410.00195694746.31
current period
Including: (1) Disposal 166795178.65 19559810.00 186354988.65
(2) Write-off 4714600.00 4714600.00
(3) Transfer to investment
4625157.664625157.66
real estate
4. Ending balance 10859093460.70 3627722996.45 14486816457.15
II. Accumulated amortization
23 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Land Use Rights Patent Rights and Others Total
1. Beginning balance 1644184187.07 1251937543.58 2896121730.65
2. Increased amount in the current
226535365.92239759447.15466294813.07
period
Including: (1) Amortization 226535365.92 239204262.83 465739628.75
(2) Increase from the
555184.32555184.32
business combination
3. Decreased amount in the
30369187.6013851828.4644221016.06
current period
Including: (1) Disposal 29569413.49 9137228.46 38706641.95
(2) Write-off 4714600.00 4714600.00
(3) Transfer to investment
799774.11799774.11
real estate
4. Ending balance 1840350365.39 1477845162.27 3318195527.66
III. Impairment reserves
1. Beginning balance 8670282.34 713737860.93 722408143.27
2. Increased amount in the current
967591.5118930200.1619897791.67
period
Including: Accrual 967591.51 18930200.16 19897791.67
3. Decreased amount in the
12558263.4612558263.46
current period
Including: (1) Disposal 8044676.86 8044676.86
(2) Write-off 4513586.60 4513586.60
4. Ending balance 9637873.85 720109797.63 729747671.48
IV. Book value
1. Book value at the end of the
9009105221.461429768036.5510438873258.01
period
2. Book value at the beginning of
9200863243.561626831278.2610827694521.82
the period
[Note 1] Write-off amount of intangible assets — patent rights and others in the current period were the used
quota licensing rights.[Note 2] As of December 31 2024 the book value of intangible assets of which the Company has not obtained
the certificate of title was CNY169198160.53.[Note 3] No intangible assets were formed through the Company's internal research and development in the
current period.
25. Goodwill
(1) Original book value of goodwill
Increase in the Decrease in the
Current Period Current Period
Name of Investee or Matters Beginning
Formed by Ending Balance
Forming Goodwill Balance
Business Disposal
Combination
Zhejiang DunAn Artificial
1198301590.221198301590.22
Environment Co. Ltd.Gree Altairnano New Energy Inc. 612777583.92 612777583.92
23 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Increase in the Decrease in the
Current Period Current Period
Name of Investee or Matters Beginning
Formed by Ending Balance
Forming Goodwill Balance
Business Disposal
Combination
Nanjing Walsin Metal Co. Ltd. 274115040.11 274115040.11
Hefei Kinghome Electrical Co. Ltd. 51804350.47 51804350.47
Shenyang Water and Heat Source
372585.32372585.32
Development Co. Ltd.Shanghai Datro Automotive
181930623.08181930623.08
Technology Co. Ltd.Total 2137371150.04 181930623.08 372585.32 2318929187.80
(2) Goodwill impairment reserves
Decrease in
Increase in the Current
Name of Investee or Matters Forming Beginning the Current Period
Goodwill Balance Period
Ending Balance
Accrual Others Disposal
Gree Altairnano New Energy Inc. 358582322.03 254195261.89 612777583.92
Nanjing Walsin Metal Co. Ltd. 274115040.11 274115040.11
Hefei Kinghome Electrical Co. Ltd. 51804350.47 51804350.47
Shenyang Water and Heat Source
372585.32372585.32
Development Co. Ltd.Shanghai Datro Automotive
12503141.1712503141.17
Technology Co. Ltd.Total 684874297.93 266698403.06 372585.32 951200115.67
(3) Information about the asset group or asset group combination in which the goodwill is located
Consistency with
Composition and Basis of the Asset Group or Operating Segments and
Name Previous Years
Combination Basis
(Yes/No)
Operating assets of an asset group based on the Classified by company
Asset group of Gree
asset group that can generate independent cash management requirements Yes
Altairnano
flows and business modules
Including fixed assets construction in progress DunAn Hetian and Zhuhai
Asset group of
right-of-use assets intangible assets long-term Huayu classified by
DunAn Environment
unamortized expenses and other long-term assets company management Yes
refrigeration
based on the asset group that can generate requirements and business
accessories
independent cash flows modules
Including fixed assets construction in progress DunAn Electro-
Asset group of right-of-use assets intangible assets long-term Mechanical classified by
DunAn Environment unamortized expenses and other long-term assets company management Yes
equipment based on the asset group that can generate requirements and business
independent cash flows modules
Including fixed assets construction in progress DunAn Thermal and
Asset group of right-of-use assets intangible assets long-term Zhuhai Thermal classified
DunAn Environment unamortized expenses and other long-term assets by company management Yes
thermal based on the asset group that can generate requirements and business
independent cash flows modules
Including fixed assets construction in progress DunAn thermal
Asset group of right-of-use assets intangible assets long-term management classified by
DunAn Environment unamortized expenses and other long-term assets company management Yes
thermal management based on the asset group that can generate requirements and business
independent cash flows modules
Including fixed assets construction in progress
Shanghai Datro classified
right-of-use assets intangible assets long-term
Asset group of by company management
unamortized expenses and other non-current Not applicable
Shanghai Datro requirements and business
assets based on the asset group that can generate
modules
independent cash flows
24 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
(4) Specific determination method of recoverable amount
1) Determined based on the net amount after deducting disposal expenses from fair value
Impairment
Amount of Determination of
Recoverable Goodwill Fair Value and Key
Item Book Value Basis for Determining Key Parameters
Amount Attributable to Disposal Parameters
Shareholders of the Expenses
Parent Company
Asset group of Fair value The fair value is determined through market inquiry and factor
Gree Altairnano 11126591344.62 9836938770.48 254195261.89 Fair value disposal correction. The disposal expenses are confirmed by property
[Note 1] expenses rights transaction fees stamp duty surcharges etc.The fair value of the asset group of Shanghai Datro is
estimated using the income method. The after-tax weighted
Weighted
average capital discount rate when estimating the fair value of
Aset group of average
the asset group of Shanghai Datro using the income method is
Shanghai Datro 341461777.00 322502600.00 12503141.17 Fair value capital
9.42%. Disposal costs are determined based on the principle of
[Note 2] discount
orderly realization including legal fees related to asset
rate after tax
disposal relevant taxes transportation fees and direct costs
incurred to bring the assets to a salable state etc.Total 11468053121.62 10159441370.48 266698403.06
[Note 1] According to the Asset Evaluation Report on the Recoverable Amount of the Goodwill and Asset Group Formed by the Combination of GREE Altairnano New
Energy Inc. by Gree Electric Appliances Inc. of Zhuhai in the Impairment Test (SGYPBZ HS [2025] No. 111) issued by Shenzhen Guoyu Asset Appraisal and Real
Estate Land Appraisal Consulting Co. Ltd. the amount of goodwill impairment attributable to the parent company in the current period is CNY254195261.89 and
the recoverable amount of the asset group is calculated by using the method of net amount after deducting disposal expenses from fair value in the assessment report.[Note 2] According to the Asset Evaluation Report on the Recoverable Amount of the Asset Group of Shanghai Datro Automotive Technology Co. Ltd. Involved in the
Impairment Test of Goodwill Formed by the Combination of Shanghai Datro Automotive Technology Co. Ltd. by Zhejiang DunAn Artificial Environment Co. Ltd.
(BFYSPBZ [2025] No. 01-0345) issued by North Asia Assets Assessment Co. Ltd. the impairment amount of goodwill attributable to the parent company for the
current period is CNY12503141.17.
2) Determine based on the present value of expected future cash flows
24 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Key Parameters for the Basis for
Key Parameters for the Forecast
Recoverable Impairment Years in the Stable Period (Growth Determining Key
Item Book Value Period (Growth Rate and Profit
Amount Amount Forecast Period Rate Profit Rate and Parameters During
Rate)
Discount Rate) the Stable Period
Asset group of Revenue growth rate: Revenue growth rate:
Pre-tax wacc
DunAn Environment 5 years + 4.61%7.22%; profit margin: 0.00%; profit margin:
5327657529.72 5411820000.00 calculated from
refrigeration perpetual period 16.33%17.65%; discount rate: 17.33%; discount rate:
industry data
accessories 11.23% 11.23%
Revenue growth rate: Revenue growth rate:
Asset group of Pre-tax wacc
5 years + 11.11%16.53%; profit margin: 0.00%; profit margin:
DunAn Environment 331449079.03 3660310000.00 calculated from
perpetual period 26.60%26.95%; discount rate: 26.99%; discount rate:
equipment industry data
11.23%11.23%
Revenue growth rate: Revenue growth rate:
Asset group of Pre-tax wacc
5 years + 11.76%23.34%; profit margin: 0.00%; profit margin:
DunAn Environment 895418480.94 3356310000.00 calculated from
perpetual period 24.80%25.67%; discount rate: 25.55%; discount rate:
thermal industry data
11.23%11.23%
Revenue growth rate: Revenue growth rate:
Asset group of Pre-tax wacc
5 years + 21.43%45.45%; profit margin: 0.00%; profit margin:
DunAn Environment 466560102.15 3092010000.00 calculated from
perpetual period 23.52%24.08%; discount rate: 24.71%; discount rate:
thermal management industry data
11.23%11.23%
Total 7021085191.84 15520450000.00
[Note] According to the Asset Evaluation Report on the Recoverable Amount of the Asset Group (Including Goodwill) of Zhejiang DunAn Artificial Environment
Co. Ltd. Involved in the Goodwill Impairment Test of Gree Electric Appliances Inc. of Zhuhai for the Preparation of Financial Statements (ZLPBZ [2025] No.
1105) issued by Hubei Zhonglian Asset Appraisal Co. Ltd. there is no impairment of goodwill of Zhejiang DunAn Artificial Environment Co. Ltd. and the
recoverable amount of the asset group is calculated by using the method of the present value of expected future cash flows in the evaluation report.
24 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
26. Long-term unamortized expenses
Increased Amount in Amortization Amount
Item Beginning Balance Ending Balance
the Current Period in the Current Period
Renovation costs and
24275474.9428965680.6015896474.4337344681.11
others
Total 24275474.94 28965680.60 15896474.43 37344681.11
27. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets not offset
Ending Balance Beginning Balance
Item Deductible Deductible
Deferred Income Tax Deferred Income
Temporary Temporary
Assets Tax Assets
Differences Differences
Accrued expenses 82929725894.70 12452334218.46 81894353560.58 12299777470.95
Assets impairment
12080308125.202282447345.979185884979.391563753624.25
reserves
Deductible losses 10248473115.97 1937363228.67 7607177645.41 1383660092.05
Payroll payable 1325704081.21 198725660.01 2403160852.09 368434495.66
Lease liabilities 792895907.54 194177199.77 855196661.01 210201073.63
Asset
352912616.7553620582.42285078030.3343422888.16
amortization/depreciation
Changes in the fair value
of other equity 173175011.09 25976251.66 270341234.04 40551185.11
instrument investments
Others 2627593974.97 526241081.97 3386147827.13 651636192.00
Total 110530788727.43 17670885568.93 105887340789.98 16561437021.81
(2) Deferred income tax liabilities not offset
Ending Balance Beginning Balance
Item
Taxable Temporary Deferred Income Tax Taxable Temporary Deferred Income
Differences Liabilities Differences Tax Liabilities
Accrued interest 8750997039.28 1330400316.88 8004193370.39 1338930710.07
Appraised appreciation
of assets from business
2490738639.45518926980.903068234386.94628766638.59
combination not under
the common control
Usufruct assets 771912726.22 189038125.98 841445774.92 207082853.09
Assets amortization 1012426068.01 169418314.12 1178075518.52 185886711.77
Changes in the fair value
of derivative financial 94743412.42 16933857.86 174933139.85 27862021.19
assets
Long-term equity
907395438.51136109315.781080874477.03162131171.55
investments
Others 1836332243.87 440267757.89 1361383913.95 321097051.32
Total 15864545567.76 2801094669.41 15709140581.60 2871757157.58
(3) Details of deferred income tax assets not recognized
24 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Deductible losses 7118650296.65 5611793371.12
Deductible temporary differences 3726336705.57 3078969898.57
Total 10844987002.22 8690763269.69
(4) Deductible losses of deferred income tax assets not recognized due in the following years
Investment Amount at the End of the
Year Beginning Amount
Period
20241417170907.63
20251014209976.411017526622.61
20261196016171.98856758140.24
2027382295484.77585602169.96
2028584010870.63820192288.14
2029573567215.7814221495.75
203041206753.0319960469.70
2031300807435.8717117414.62
2032276258408.3632376800.88
2033321703937.83
20341701518041.28
Open-ended 727056000.71 830867061.59
Total 7118650296.65 5611793371.12
28. Other non-current assets
Ending Balance Beginning Balance
Item
Impairment Impairment
Book Balance Book Value Book Balance Book Value
Reserve Reserve
Monetary
investment
57706146160.2057706146160.2041018451427.7041018451427.70
products and
accrued interest
Others 481496403.29 121612502.44 359883900.85 1556623758.24 76969740.55 1479654017.69
Subtotal 58187642563.49 121612502.44 58066030061.05 42575075185.94 76969740.55 42498105445.39
Less: Monetary
investment
1533053424.661533053424.66
products due
within 1 year
Total 56654589138.83 121612502.44 56532976636.39 42575075185.94 76969740.55 42498105445.39
29. Assets with restricted ownership or right-to-use
End of Period
Item
Book Value Reason for Restriction
Required deposit reserve earnest
Monetary funds 36145202061.32
money etc.
24 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
End of Period
Item
Book Value Reason for Restriction
Accounts receivable 18433952.94 Pledged
Receivables financing 3723514867.14 Pledged
Contract assets 1725716.05 Pledged
Other current assets 3170000000.00 Pledged
Non-current assets due within one
8000000000.00 Pledged
year
Other debt investments 2290000000.00 Pledged
Long-term equity investments 326352154.19 Pledged
Investment real estate 3985469.17 Pledged
Fixed assets 2927927740.11 Pledged
Construction in progress 4169396.70 Pledged
Intangible assets 920002049.00 Pledged
Other non-current assets 13710000000.00 Pledged
Total 71241313406.62
(Continued)
Beginning of Period
Item
Book Value Reason for Restriction
Required deposit reserve earnest
Monetary funds 36444669541.57
money etc.Accounts receivable 95386260.00 Pledged
Receivables financing 5033716307.04 Pledged
Contract assets 103189654.26 Pledged
Other current assets 9000000000.00 Pledged
Non-current assets due within one
1000000000.00 Pledged
year
Other debt investments 10090000000.00 Pledged
Long-term equity investments 310838556.07 Pledged
Fixed assets 2285127725.15 Pledged
Construction in progress 223626881.02 Pledged
Intangible assets 1436665729.28 Pledged
Other non-current assets 12180000000.00 Pledged
Others 13646580.00 Pledged
Total 78216867234.39
30. Short-term borrowings
(1) Classification of short-term borrowings
24 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Pledge borrowings 9617880311.88 13689816990.91
Credit borrowings 28422207506.52 11791884924.68
Other borrowings 791500000.00 873828953.96
Subtotal 38831587818.40 26355530869.55
Accrued interest 177939454.82 87945518.97
Total 39009527273.22 26443476388.52
(2) Overdue and unpaid short-term borrowings
None.
31. Derivative financial liabilities
Item Ending Balance Beginning Balance
Foreign exchange derivatives 170740734.87 4079919.91
Total 170740734.87 4079919.91
32. Notes payable
Type Ending Balance Beginning Balance
Banker's acceptance bill 14479000765.12 23741128400.12
Total 14479000765.12 23741128400.12
[Note] As of December 31 2024 the Company had no notes payable that were due and unpaid.
33. Accounts payable
(1) List of accounts payable
Item Ending Balance Beginning Balance
Payment for goods and services 43413420251.59 37687019566.61
Others 3677900492.46 3460339655.34
Total 47091320744.05 41147359221.95
(2) Important payables aged over 1 year
None.
34. Contract liabilities
Item Ending Balance Beginning Balance
Payment for goods and pre-sale
12491059928.5313588771210.88
housing
Total 12491059928.53 13588771210.88
[Note] Contract liabilities mainly consist of advance payments from distributors for goods.
24 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
35. Deposits from customers and interbank
Item Ending Balance Beginning Balance
Time deposits 285233783.98 245243190.05
Current deposits 13758901.35 3188766.08
Subtotal 298992685.33 248431956.13
Accrued interest 8795633.70 6184943.22
Total 307788319.03 254616899.35
36. Payroll payable
(1) List of payroll payable
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
I. Short-term payroll 4265770300.58 11366269370.86 11269071941.46 4362967729.98
II. Post-employment benefits —
22841085.71900421134.21895572730.3527689489.57
defined contribution plan
Total 4288611386.29 12266690505.07 12164644671.81 4390657219.55
(2) List of short-term payroll
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
1. Wages bonuses subsidies and
3052675702.649628692520.789648004582.873033363640.55
allowances
2. Employee benefits 1882276.07 712936238.15 713198156.37 1620357.85
3. Social insurance premiums 7219464.78 346315958.66 346177566.64 7357856.80
Including: Medical insurance
6615849.30305882283.92305849925.916648207.31
premiums
Work-related injury insurance
538376.6032989705.6132853182.18674900.03
premiums
Maternity insurance premiums 65238.88 7443969.13 7474458.55 34749.46
4. Housing provident funds 3916942.58 413290420.64 412000174.53 5207188.69
5. Labor union expenditures and
1200075914.51265034232.63149691461.051315418686.09
employee education funds
Total 4265770300.58 11366269370.86 11269071941.46 4362967729.98
(3) List of post-employment benefits — defined contribution plan
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
1. Basic endowment insurance
21345288.94865641580.37860883414.7426103454.57
premiums
2. Unemployment insurance
1495796.7734779553.8434689315.611586035.00
premiums
Total 22841085.71 900421134.21 895572730.35 27689489.57
37. Taxes and dues payable
24 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Business income tax 1942399837.72 2544807089.57
Value-added tax 582794381.59 1393002309.22
Others 187850831.71 399822161.49
Total 2713045051.02 4337631560.28
38. Other payables
Item Ending Balance Beginning Balance
Dividends payable 3889950.33 5572388.92
Other payables [Note 1] 4553021754.89 5507694127.90
Total 4556911705.22 5513266516.82
[Note 1] Other payables in the table above refer to other payables deducting the interest payable and dividends
payable.[Note 2] The Company has no interest payable at the end and the beginning of the period.
(1) Dividends payable
Item Ending Balance Beginning Balance
Common share dividends 602881.87 602881.87
Others 3287068.46 4969507.05
Total 3889950.33 5572388.92
[Note] The Company has no important dividends payable aged over 1 year.
(2) Other payables
1) Other payables listed by nature of payment
Item Ending Balance Beginning Balance
Intercourse funds 1626920031.91 2617427058.95
Enterprise borrowing and interest 1503105131.31 1654225040.13
Cash pledge and deposit 1422996591.67 1236042028.82
Total 4553021754.89 5507694127.90
2) Other important payables aged over 1 year
Reasons for Failing to Repay or
Item Ending Balance
Carry-over
Company 1 1037797300.02 Unsatisfied repayment conditions
Total 1037797300.02
39. Non-current liabilities due within one year
24 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
Long-term borrowings due within 1
15479259752.6920411257654.34
year
Long-term payables due within1 year 11983224.42 104437399.09
Lease liabilities due within 1 year 85936308.78 89826019.60
Total 15577179285.89 20605521073.03
40. Other current liabilities
Item Ending Balance Beginning Balance
Sales rebate 49056364849.24 50881332212.24
Others 11281845506.12 10177504966.53
Total 60338210355.36 61058837178.77
41. Long-term borrowings
Item Ending Balance Beginning Balance
Pledge borrowings 9438920000.00 19537435550.95
Credit borrowings 22688108497.49 37768442020.95
Mortgaged borrowings 1546869354.24 2089219068.84
Guaranteed borrowings 8000000.00
Subtotal 33681897851.73 59395096640.74
Add: Accrued interests 27179823.09 51903548.69
Less: Long-term borrowings due
15479259752.6920411257654.34
within 1 year
Total 18229817922.13 39035742535.09
42. Lease liabilities
Item Ending Balance Beginning Balance
Lease liabilities 797227498.47 856833971.52
Less: Lease liabilities due within 1 year 85936308.78 89826019.60
Total 711291189.69 767007951.92
43. Long-term payables
Item Ending Balance Beginning Balance
Financial liabilities formed after sale
19895652.51131465897.39
and leaseback
Subtotal 19895652.51 131465897.39
Less: Long-term payables due within 1
11983224.42104437399.09
year
Total 7912428.09 27028498.30
24 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
44. Long-term payroll payable
(1) Table of long-term payroll payable
Item Ending Balance Beginning Balance
Net liabilities of post-employment
232102639.00195057663.00
benefits — defined benefit plan
Others 599890.58
Total 232702529.58 195057663.00
(2) Changes in the defined benefit plan
1) Present value of obligations under the defined benefit plan
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
I. Beginning balance 195057663.00 175712728.00
II. Defined benefit cost included in the
9765880.009941893.00
current profits and losses
1. Service costs in the current period 3487947.00 3238005.00
2. Net interest 5267560.00 5173500.00
3. Impact of adding new personnel 1010373.00 1530388.00
III. Defined benefit cost included in
34144434.0015837466.00
other comprehensive income
Including: Gains 34144434.00 15837466.00
IV. Other changes -6865338.00 -6434424.00
Including: Paid benefits -6865338.00 -6434424.00
V. Ending balance 232102639.00 195057663.00
2) Net liabilities (net assets) of the defined benefit plan
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
I. Beginning balance 195057663.00 175712728.00
II. Defined benefit cost included in the
9765880.009941893.00
current profits and losses
III. Defined benefit cost included in
34144434.0015837466.00
other comprehensive income
IV. Other changes -6865338.00 -6434424.00
V. Ending balance 232102639.00 195057663.00
(3) The descriptions of contents and associated risks of the defined benefit plan and its influences on the
Company’s future cash flow time and uncertainty are as follows:
1) Descriptions of contents and associated risks of the defined benefit plan and its influences on the
Company’s future cash flow time and uncertainty
The Company’s defined benefit plan is a supplementary post-retirement benefit plan for some retirees early
retirees and serving officers after normal retirement. Given that the amount involved in the defined benefit plan
is not significant it cannot have a significant impact on the Company's future cash flow.
2) Descriptions of significant actuarial assumptions and sensitivity analysis results of the defined benefit plan
25 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Under the requirements of the Accounting Standards for Business Enterprises No. 9 — Payroll the discount rate
adopted by the Company at the time of discount is recognized by the market yields of high-quality corporate bonds
in the treasury bonds or active market that match the obligatory term and currency of the defined benefit plan on
the balance sheet date. The annual growth rates and annual dismissal rates of all benefits are based on the actual
measurement data of the Company and the death rate is recognized by referring to the experience life table for the
insurance business of China Life Insurance (Group) Company.
45. Deferred income
Beginning Increase in the Decrease in the Cause of
Item Ending Balance
Balance Current Period Current Period Formation
Government Related to
3524154801.52142971910.73259645488.483407481223.77
grants assets/incomes
Unconfirmed
profit and loss
Others 3700796.60 1432566.24 2268230.36
from sale and
leaseback
Total 3527855598.12 142971910.73 261078054.72 3409749454.13
46. Share capital
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
Total shares [Note] 5631405741.00 30000000.00 5601405741.00
Total 5631405741.00 30000000.00 5601405741.00
[Note] By the resolution of the 1st Extraordinary General Meeting of Shareholders in 2024 30000000 shares in
the inventory of the repurchase special account were canceled. After the cancellation was completed the total
share capital of the Company decreased from 5631405741 shares to 5601405741 shares. The Shenzhen Branch
of China Securities Depository and Clearing Corporation Limited (CSDC) has confirmed that the cancellation date
of the repurchased shares is October 17 2024.
47. Capital reserves
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
Share capital
1587056613.371225394453.00361662160.37
premium
Other capital reserves 1352522393.67 326044646.05 1568049830.59 110517209.13
Total 1352522393.67 1913101259.42 2793444283.59 472179369.50
[Note 1] The expiration of the lock-up period of the Phase II employee stock ownership plan and the fulfillment
of the vesting conditions resulted in an increase of CNY1568049830.59 in capital reserves — share capital
premium and a decrease of CNY1568049830.59 in capital reserves — other capital reserves.[Note 2] The subsidiary granted restricted shares to the incentive recipients who met the grant conditions in the
current period and the subscription premium increased the capital reserves — share capital premium by
CNY19006782.78.[Note 3] Equity transactions occurred in the subsidiary in the current period resulting in a decrease of
CNY14915033.94 in the capital reserves — share capital premium.[Note 4] The share of equity incentive — employee stock ownership plan expenses in the current period
25 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
increased the capital reserves — other capital reserves by CNY321918559.82.[Note 5] The associates of subsidiaries increased the capital reserves in the current period resulting in an
increase of CNY4126086.23 in the capital reserves—- other capital reserves.[Note 6] Repurchased 30000000 shares in phases III and IV were canceled on October 17 2024 reducing the
capital reserves — share capital premium by CNY1210479419.06.
48. Treasury share
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
Repurchased share 4942723911.44 22394801.10 2348552735.86 2616565976.68
Total 4942723911.44 22394801.10 2348552735.86 2616565976.68
[Note 1] The assessment period of the company's Phase II employee stock ownership plan has expired and the
performance indicators of the vesting period have been achieved so the rights and interests of the attributable
shares are distributed. The Company terminated the recognition of the obligation to repurchase the shares of the
Phase II employee stock ownership plan in the current period resulting in a decrease of CNY1108073316.80
in the treasury shares.[Note 2] The subsidiary completed the grant registration of share options in the 2023 restricted share and share
option incentive plan on February 22 2024 and confirmed the repurchase obligation at the same time
increasing the treasury shares by CNY22394801.10.[Note 3] By the resolution of the 1st Extraordinary General Meeting of Shareholders in 2024 30000000 shares
in the special account for repurchase were canceled corresponding to an inventory amount of
CNY1240479419.06. The Shenzhen Branch of China Securities Depository and Clearing Corporation Limited
(CSDC) has confirmed that the cancellation date of the repurchased shares is October 17 2024.
25 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
49. Other comprehensive income
Amount Incurred in the Current Period
Less: Amount Less: Amount
Included in Other Included in Other
Comprehensive Comprehensive Amount
Amount Incurred Amount
Income in the Income in the Attributable to
Item Beginning Balance Before Income Less: Income Tax Attributable to the Ending Balance
Previous Period Previous Period Minority
Tax in the Current Expenses Parent Company
But Transferred But Transferred Shareholders
Period After Tax
to the Profits and to Retained After Tax
Losses in the Earnings in the
Current Period Current Period
I. Other comprehensive income
cannot be reclassified into -13316885.77 129849857.23 269119327.73 -11446922.32 -127822548.18 -141139433.95
profits and losses
Changes arising from
remeasurement of the defined -87845692.00 -34144434.00 -34144434.00 -121990126.00
benefit plan
Other comprehensive income
that cannot be transferred to
917238821.54-173479038.52-26021855.77-147457182.75769781638.79
profits and losses under the
equity method
Changes in the fair value of
other equity instrument -842710015.31 337473329.75 269119327.73 14574933.45 53779068.57 -788930946.74
investments
II. Other comprehensive
income to be reclassified into 288855179.07 66273651.80 22180106.52 5125649.88 34302540.65 4665354.75 323157719.72
profits and losses
Other comprehensive income
that can be transferred to profits
-48167.26-149788.87-82393.76-67395.11-130561.02
and losses under the equity
method
Changes in the fair value of
-2414070.0021183234.234602403.2416578380.612450.3814164310.61
other debt investments
Reserves for credit impairment
-914210.8223728581.1319004631.521401377.891291886.082030685.64377675.26
of other debt investments
Cash flow hedging reserves 2724303.79 -2646800.00 3175475.00 -878131.25 -4944143.75 -2219839.96
Difference arising from
translation of financial 289507323.36 24158425.31 21458811.47 2699613.84 310966134.83
statements in foreign currency
Total 275538293.30 196123509.03 22180106.52 269119327.73 -6321272.44 -93520007.53 4665354.75 182018285.77
25 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
50. Special reserves
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
Safe production
26969643.4410069964.535363478.0931676129.88
expenses
Total 26969643.44 10069964.53 5363478.09 31676129.88
51. Surplus reserves
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
Statutory surplus
1731130024.4058313690.851789443715.25
reserves
Total 1731130024.40 58313690.85 1789443715.25
[Note 1] According to the regulations the Company accrued a statutory surplus reserve of CNY32929994.98
at 10% of the net profit of the parent company for the current period. No accrual will be made when the
accumulated statutory surplus reserve reaches 50% of the registered capital.[Note 2] The carry-over of other comprehensive income to retained earnings increased the surplus reserve by
CNY25383695.87.
52. General risk reserves
Increase in the Decrease in the
Item Beginning Balance Ending Balance
Current Period Current Period
General risk reserves 507223117.40 2022363.18 509245480.58
Total 507223117.40 2022363.18 509245480.58
53. Undistributed profits
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Undistributed profits at the end of the
112211650801.6291458073960.81
previous period before adjustment
Total adjustment of undistributed
profits at the beginning of the period
(+ for increase for decrease)
Undistributed profit at the beginning
112211650801.6291458073960.81
of the period after adjustment
Add: Net profit attributable to
shareholders of the parent company 32184570372.28 29017387604.18
for the current period
Less: Withdrawal of statutory surplus
32929994.982704897285.76
reserves
Withdrawal of general risk reserves 2022363.18
Common share dividends payable
13142225877.485613841613.00
[Note]
Impact of share-based payment and
313591772.67
share cancellation
Add: Amount transferred from other
comprehensive income to retained 228453262.83 368519908.06
earnings
Undistributed profit at the end of the
131447496201.09112211650801.62
period
[Note] Under the resolutions of the annual general meeting of shareholders on June 28 2024 the Company
25 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
distributed cash dividends to all shareholders at a rate of CNY23.80 (tax inclusive) per 10 shares. Based on the
shares deducting 109462095 repurchased shares in the account for repurchase from the Company's total capital
shares of 5631405741 CNY13142225877.48 of cash dividends should be distributed.
54. Operating revenues and costs
Amount Incurred in the Current Period Amount Incurred in the Previous Period
Item
Revenue Cost Revenue Cost
Main business 169715353002.47 114476752530.27 174565470852.38 115836488022.69
Other business 19448301062.17 19019367093.09 29413795534.71 28116999197.36
Total 189163654064.64 133496119623.36 203979266387.09 143953487220.05
Information related to the revenues from main businesses:
Amount Incurred in the Current Period Amount Incurred in the Previous Period
Item
Revenue Cost Revenue Cost
Classified by
industry
Manufacturing
169715353002.47114476752530.27174565470852.38115836488022.69
industry
Total 169715353002.47 114476752530.27 174565470852.38 115836488022.69
Classified by
product type
Including:
Household 148559931838.58 96691946304.39 155218482437.25 100029892199.51
appliances
Industrial products
17246185690.0214537492029.5617109354623.7514008884148.22
and green energy
Smart device 424131758.64 313649678.84 669842288.11 460881332.89
Others 3485103715.23 2933664517.48 1567791503.27 1336830342.07
Total 169715353002.47 114476752530.27 174565470852.38 115836488022.69
Classified by region
Including:
141512822056.5993045292807.84149661934832.9496846915467.14
Domestic sales
Export sales 28202530945.88 21431459722.43 24903536019.44 18989572555.55
Total 169715353002.47 114476752530.27 174565470852.38 115836488022.69
55. Interest income and interest expenses
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Interest income 874417456.85 1038856837.77
Including: Interest income from
deposits in other banks and central 573713739.27 769444269.59
banks
Interest income from the disbursement
146194865.10116256351.56
of loans and advances
Others 154508852.48 153156216.62
Interest expense 158700589.03 126399291.44
25 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Including: Expenses from transactions
144920539.03113834187.03
with financial institutions
Others 13780050.00 12565104.41
Net interest income 715716867.82 912457546.33
56. Taxes and surcharges
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Urban maintenance & construction tax 509067607.82 608933524.27
Education surcharge 367982324.72 443446170.48
Building tax 316450996.41 291022667.17
Land use tax 148331976.12 150553829.97
Others 456994890.37 620228300.94
Total 1798827795.44 2114184492.83
57. Sales expenses
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Sales expenses 9753022469.17 14801702209.41
Total 9753022469.17 14801702209.41
[Note] In 2024 the sales expenses mainly included installation expenses warehousing expenses loading and
unloading fees promotion expenses and payroll totally accounting for more than 80% of the total sales expenses.
58. Administrative expenses
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Administrative expenses 6057608713.94 6542161037.82
Total 6057608713.94 6542161037.82
[Note] In 2024 the overhead expenses included payroll material consumption depreciation and amortization
totally accounting for more than 80% of the total overhead expenses.
59. R&D expenses
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
R&D expenses 6904084981.92 6762136262.23
Total 6904084981.92 6762136262.23
[Note] In 2024 the R&D expenses mainly included the employees' labor costs and direct investment costs
accounting for more than 80% of the total R&D expenses.
60. Financial expenses
25 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Interest expenses 2378372721.06 2962205439.75
Less: Interest income [Note] 5999412762.36 6189969897.82
Add: Exchange profits and losses 250076580.51 -373003623.17
Commissions 66617496.60 67736176.25
Interest expenses for defined benefit
5267560.005173500.00
obligation
Others -1339154.77 1336553.24
Total -3300417558.96 -3526521851.75
[Note] Both the above interest income and the interest income in Note V. 55 Interest income and interest expenses
are capital income.
61. Other income
Amount Incurred in the Previous
Sources of Other Income Amount Incurred in the Current Period
Period
Government grants 1916950375.04 716882751.82
Value-added tax additional deduction
807707443.33183786384.13
and others
Total 2724657818.37 900669135.95
62. Income from investment
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Investment income obtained from
460296091.05280532436.05
trading financial instruments
Long-term equity investment income
14219875.6493222443.16
measured by the equity method
Investment income from derivative
150970608.40-334089576.80
financial instruments
Others -65204728.73 177491302.82
Total 560281846.36 217156605.23
63. Income from changes in fair value
Sources of Income from Changes in Amount Incurred in the Previous
Amount Incurred in the Current Period
Fair Value Period
Derivative financial instruments -273556968.51 290358381.45
Trading financial instruments -5658203.37 135772263.81
Others 5239667.54 11453343.46
Total -273975504.34 437583988.72
64. Credit impairment losses
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Bad debt losses -528495906.55 -824454538.38
25 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Impairment losses of buying back the
3077495.66-3077495.66
sale
Impairment losses of loans and
2985793.173486921.74
advances
Total -522432617.72 -824045112.30
65. Asset impairment losses
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Inventory falling price losses -144034693.43 -2077565556.79
Goodwill impairment losses -266698403.06 -206861546.92
Contract asset impairment losses 243583872.94 -23251340.92
Fixed asset impairment losses -333067391.82 -142060658.57
Impairment losses of the construction
-139998209.31-21589987.17
in progress
Other asset impairment losses -46604377.59 -22250603.71
Total -686819202.27 -2493579694.08
66. Income from disposal of assets
Source of Income from Disposal of Amount Incurred in the Previous
Amount Incurred in the Current Period
Assets Period
Gains from disposal of non-current
16965090.94382923791.69
assets (losses expressed with "")
Total 16965090.94 382923791.69
67. Non-operating revenues
Amount Included in Non-
Amount Incurred in the Amount Incurred in the
Item Recurring Profits and
Current Period Previous Period
Losses in the Current Period
Net profit from destruction
2062553.283273237.252062553.28
scrap of non-current assets
Non-operating government
3781050.0026340308.603781050.00
subsidies
Others 66347364.54 98758262.67 66347364.54
Total 72190967.82 128371808.52 72190967.82
68. Non-operating expenses
Amount Included in Non-
Amount Incurred in the Amount Incurred in the
Item Recurring Profits and
Current Period Previous Period
Losses in the Current Period
Net losses from destruction
117645205.8057463367.50117645205.80
scrap of non-current assets
Others 46987839.32 119984960.59 46987839.32
Total 164633045.12 177448328.09 164633045.12
69. Income tax expenses
(1) Table of income tax expenses
25 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Income tax expenses in the current
5695658290.986477401667.61
period
Deferred income tax expenses -1170731730.03 -1380720743.01
Total 4524926560.95 5096680924.60
(2) Adjustment of accounting profits and income tax expenses
Item Amount Incurred in the Current Period
Total profits 36895995848.30
Income tax expenses calculated at the statutory/applicable
5534399377.25
tax rate
Impact by different tax rates applicable to subsidiaries -78338578.17
Impact by non-deductible costs expenses and losses 51325226.04
Impact of deductible temporary differences or deductible
losses on unrecognized deferred income tax assets at the 970095189.37
end of the period
Others -1952554653.54
Income tax expenses 4524926560.95
70. Items of cash flow statement
(1) Cash flows related to operating activities
1) Other cash received related to operating activities
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Government grants 1799273956.24 990758810.62
Interest income 315360111.29 386430147.87
Cash pledges deposits and others 1134685096.06 1461579187.30
Total 3249319163.59 2838768145.79
2) Other cash payments related to operating activities
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Cash payments for sales expenses 7185012975.87 8562376407.52
Cash payments for overhead expenses
1648760232.901800397545.02
and R&D expenses
Net increase in restricted funds related
to operating activities such as bills 950809072.53 5911533582.83
guarantees and margin deposits
Return of advance project funds 21684919.23 165658259.48
Payment of performance bid security
1117979551.091117354876.06
and others
Total 10924246751.62 17557320670.91
(2) Cash related to investment activities
1) Cash received related to investment activities
25 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Redemption of monetary investment
products large certificates of deposit
27116400779.2021394360863.88
debt instrument investments and other
products
Total 27116400779.20 21394360863.88
2) Cash payment related to investment activities
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Payment of monetary investment
products large certificates of deposit
42427405328.0184266255633.47
debt instrument investments and other
products
Total 42427405328.01 84266255633.47
3) Other cash received related to investment activities
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Net inflow of forward foreign
165860138.00
exchange settlement and purchase
Net decrease in time deposits 21131039386.45
Time deposit interest income 4951508980.79 3556171690.87
Others 48331796.10 28671249.18
Total 5165700914.89 24715882326.50
4) Other cash payment related to investment activities
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Net outflow of forward foreign
304332374.80
exchange settlement and purchase
Net increase in time deposits 715596870.46
Others 3724962434.47 3866295.73
Total 4440559304.93 308198670.53
(3) Cash payment related to financing activities
1) Other cash payments related to financing activities
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Net decrease in pledge deposits on
5382824066.6719055112862.00
borrowings
Collection of employee stock
1108073316.80
ownership plan funds
Others 40000000.00
Total 5382824066.67 20203186178.80
2) Other cash payments related to financing activities
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Cash payment for repurchased shares 3000202396.37
Others 484846580.49 1362342134.72
26 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount Incurred in the Previous
Item Amount Incurred in the Current Period
Period
Total 484846580.49 4362544531.09
3) Changes in liabilities arising from financing activities
Increase in the Current Period Decrease in the Current Period
Beginning
Item Ending Balance
Balance Non-cash Non-cash
Cash Changes Cash Changes
Changes Changes
Bank loans and
87676167515.4769114070361.032332043190.2584880675334.8974241605731.86
others
Dividends payable 5572388.92 13143744877.48 13143744877.48 1682438.59 3889950.33
Lease liabilities
(including lease
856833971.5272291531.11131898004.16797227498.47
liabilities due
within 1 year)
Total 88538573875.91 69114070361.03 15548079598.84 98156318216.53 1682438.59 75042723180.66
71. Supplementary for cash flow statement
(1) Supplementary for cash flow statement
Amount in the Current Amount in the Previous
Supplementary
Period Period
1. Adjusting net profit to cash flow from operating
activities:
Net profits 32371069287.35 27719022913.59
Add: Assets and credit impairment reverses 1209251819.99 3317624806.38
Depreciation of fixed assets depreciation of investment
4811341434.604808144624.82
real estate and amortization of right-to-use assets
Amortization of intangible assets 445567650.39 475186591.56
Losses on disposal of fixed assets intangible assets and
-16965090.94-382923791.69
other long-term assets (income expressed with “”)
Loss from scrapping fixed assets (income expressed with
115582652.5254190130.25
“”)
Losses from changes in fair value (income expressed with
273975504.34-437583988.72
“”)
Financial expenses (income expressed with “”) -3108257855.15 -3910047955.94
Investment losses (income expressed with “”) -765303511.76 -217156605.23
Decrease in deferred income tax assets (increase expressed
-1100364408.99-1966236836.12
with “”)
Increase in deferred income tax liabilities (decrease
-68885485.14585516093.11
expressed with “”)
Decrease of inventories (increase expressed with “”) 4545947126.79 3656838547.28
Decrease in operating receivables (increase expressed with
-512406905.9512312109488.56
“”)
Increase in operating payables (decrease expressed with
-7735915199.1315003082209.85
“”)
Others [Note] -1095386448.26 -4619339873.53
Net cash flows from operating activities 29369250570.66 56398426354.17
2. Major investment and financing activities not involving
cash receipts and payment:
3. Net changes in cash and cash equivalents:
Ending balance of cash 21140958080.12 30914196186.41
26 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Amount in the Current Amount in the Previous
Supplementary
Period Period
Less: Beginning balance of cash 30914196186.41 31754656695.61
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -9773238106.29 -840460509.20
[Note] "Others" include a net increase of CNY485197013.98 in the statutory deposit reserves a net increase
of CNY950809072.53 in bill margin etc. and an expense of CNY340619638.25 allocated by the employee
stock ownership plan for the current period.
(2) Net cash payment for the acquisition of subsidiaries in the current period
Item Shanghai Datro Automotive Technology Co. Ltd.Cash or cash equivalent payment for business combination
244597668.00
that occurred in the current period
Including: Cash 244597668.00
Less: Cash and cash equivalents held by the subsidiary on
35152822.52
the acquisition date
Net cash payment for the acquisition of subsidiaries 209444845.48
(3) Net cash from the disposal of subsidiaries this year
Item Amount
Cash or cash equivalents from the disposal of subsidiaries
1800001.00
in the current period
Including: Shenyang Water and Heat Source Development
1000001.00
Co. Ltd.Jilin Songliang Modern Agricultural Development Co.
800000.00
Ltd.Less: Cash and cash equivalents held by the subsidiary on
986544.60
the date of losing control
Including: Shenyang Water and Heat Source Development
982539.54
Co. Ltd.Jilin Songliang Modern Agricultural Development Co.
4005.06
Ltd.Add: Cash or cash equivalents received in the current
period from the disposal of subsidiaries in the previous 100000000.00
period
Including: DunAn (Tianjin) Energy Saving System Co.
100000000.00
Ltd.Net cash from the disposal of subsidiaries 100813456.40
(4) Composition of cash and cash equivalents
Item Ending Balance Beginning Balance
I. Monetary funds 113900461797.94 124104987289.62
Including: Cash on hand 493036.20 747248.45
Bank deposits for payment at any time 14705329427.85 12145466861.21
Other monetary funds for payment at
802982715.77470104370.06
any time
Deposits in the central bank for 9336080.31 6910095.46
26 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Ending Balance Beginning Balance
payment at any time
Deposits in other banks for payment at
5622816819.9918290967611.23
any time
Time deposits and accrued interest not
in the category of cash and cash 56614301656.50 56746121561.64
equivalents
Deposits with restricted use 36145202061.32 36444669541.57
II. Cash equivalents
III. Ending balance of monetary funds
113900461797.94124104987289.62
and cash equivalents
Less: Time deposits and accrued
interest not in the category of cash and 56614301656.50 56746121561.64
cash equivalents
Less: Deposits with restricted use 36145202061.32 36444669541.57
Including: Statutory deposit reserves 1867216106.71 1382019092.73
Bill letter of credit and other deposits 34277985954.61 35062650448.84
IV. Ending balance of cash and cash
21140958080.1230914196186.41
equivalents
(5) Restricted usage scope but still listed as cash and cash equivalents
None.
72.Annotations to items in the statement of changes in owner's equity
None.
26 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
73.Monetary items in foreign currencies
(1) Monetary items in foreign currencies
USD Converted HKD Converted BRL Converted JPY Converted THB Converted
Item Euro Converted into CNY Others Total in CNY
into CNY into CNY into CNY into CNY into CNY
Exchange rate on 2024/12/31 7.1884 0.9260 7.5257 1.1821 0.0462 0.2126 Not Applicable Not Applicable
Monetary funds 5433045308.17 5524591270.01 4874672447.96 1375148323.34 22615605.47 53563175.00 1070753.98 17284706883.93
Accounts receivable 4047652082.20 36301505.90 40411103.94 625974286.95 144685983.64 12376680.65 4907401643.28
Contract assets 143768.00 143768.00
Other receivables 5112617.59 439297.69 457136.98 252535.77 7625383.14 3891615.80 17778586.97
Other non-current assets 564758.23 564758.23
Short-term borrowings 13657715570.25 1893347528.30 15551063098.55
Accounts payable 265316357.99 11812663.41 32682731.35 41266801.98 14281266.04 34194559.22 4698128.88 404252508.87
Other payables 199595288.53 2900621.24 11781266.38 2035596.09 642411.57 1288539.90 190379.13 218434102.84
(2) Description of overseas operating entities
The company's main business locations outside the Chinese mainland include Hong Kong Brazil Thailand the United States etc. Each business entity takes its main business currency as
the functional currency. As of December 31 2024 the financial statements of the subsidiaries from countries and regions outside the Chinese mainland such as the Hong Kong subsidiary
the Brazil subsidiary the Thailand subsidiary and the US subsidiary which are included in the consolidated financial statements have all been converted into CNY for presentation. The
conversion exchange rates for the balance sheet items are the exchange rates in Note V. 73 (1). The conversion exchange rates for the income statement and cash flow statement items adopt
the average exchange rate for 2024.
26 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
74. Lease
1) The simplified short-term lease or low-value asset lease expenses are CNY88491363.86.
2) Sale-leaseback transaction
Some subsidiaries of the Company transferred some machinery equipment to financial lease companies and
leased them back. In the sale-leaseback transaction the financial lease company cannot dominate the use of
the goods and obtain almost all economic benefits from it. The Company can dominate the use of the leased
assets and has not transferred the control of them. Therefore the sale-leaseback transaction does not meet
the requirements of sales. The Company continues to recognize the transferred assets and recognizes long-
term payables at the same time.
3) With the Company is a lessor
Including: Income Related to Variable
Item Rental Incomes Lease Payments not Included in Lease
Payments
Operating lease as a lessor 170746006.07
Total 170746006.07
VI. Change in the consolidation scope
1. Business combinations not under common control
(1) Business combination not under common control in the current period
Time Point of Equity Equity
Name of the Equity
Equity Acquisition Acquisition Acquisition Date
Acquiree Acquisition Cost
Acquisition Proportion Method
Shanghai Datro
Automotive
2024/07/01 244597668.00 65.95% Purchase by cash 2024/07/01
Technology Co.Ltd.
(Continued)
Operating Income of Net Profit of the Cash Flow of the
Basis for
the Acquiree from the Acquiree from the Acquiree from the
Name of the Acquiree Determining the
Acquisition Date to Acquisition Date to Acquisition Date to
Acquisition Date
the End of the Period the End of the Period the End of the Period
Shanghai Datro
Automotive Acquisition of control 50610255.50 -10890056.09 3852261.61
Technology Co. Ltd.On June 30 2024 the Company's wholly-owned subsidiary DunAn Environment acquired 62.95% of the
equity of Shanghai Datro Automotive Technology Co. Ltd. (hereinafter referred to as "Datro") through a
cash transaction valued at CNY214.5977 million and also increased its capital in Datro by CNY30 million.After the transaction was completed DunAn Environment held 65.95% of the equity in Datro. DunAn
Environment has completed the equity transfer and industrial and commercial change registration procedures.Datro has been included in the consolidated scope of DunAn Environment.
(2) Cost and goodwill of business combination
26 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Cost of Business Combination Amount
Total cost of business combination 244597668.00
Including: Cash 244597668.00
Less: Fair value of the identifiable net assets acquired 62667044.92
Goodwill 181930623.08
DunAn Environment currently holds 65.95% of the equity in Datro. The enterprise merger cost is
CNY244597668.00. The fair value share of identifiable net assets attributable to the parent company
shareholders obtained is CNY62667044.92. The corresponding fair value of identifiable net assets was
assessed by Zhonglian Appraisal Consulting (Shanghai) Co. Ltd. and an assessment report with the number
ZLHP Zi [2024] No. 20 was issued. The difference between the enterprise merger cost and the fair value
share of identifiable net assets attributable to the parent company shareholders of Datro forms goodwill of
CNY181930623.08.
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Shanghai Datro Automotive Technology Co. Ltd.Item
Fair Value on the Book Value on the
Acquisition Date Acquisition Date
Assets:
Monetary funds 5152822.52 5152822.52
Notes receivable 715882.91 715882.91
Receivables 36803450.59 36803450.59
Receivables financing 5824589.99 5824589.99
Advance payments 1041919.28 1041919.28
Other receivables 31512194.62 31512194.62
Inventory 20200520.76 17127908.27
Other current assets 2080550.17 2080550.17
Fixed assets 34644958.89 32761348.70
Construction in progress 7780042.42 7780019.35
Usufruct assets 5801258.04 5801258.04
Intangible assets 23614360.78 394064.49
Long-term unamortized expenses 2896776.52 2896776.52
Deferred income tax assets 10437280.23 10437280.23
Other non-current assets 37924.20 37924.20
Liabilities:
Short-term borrowings 39000000.00 39000000.00
Notes payable 1487740.22 1487740.22
26 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Shanghai Datro Automotive Technology Co. Ltd.Item
Fair Value on the Book Value on the
Acquisition Date Acquisition Date
Payables 27451609.43 27451609.43
Contract liabilities 18956.40 18956.40
Payroll payable 2627612.49 2627612.49
Taxes and dues payable 12974.49 12974.49
Other payables 1245.36 1245.36
Non-current liabilities due within one year 4367779.95 4367779.95
Other current liabilities 2464.33 2464.33
Long-term borrowings 7000000.00 7000000.00
Lease liabilities 3744872.39 3744872.39
Deferred income 518000.00 518000.00
Deferred income tax liabilities 7285908.39 241772.88
Net Assets 95025368.47 73892961.94
Less: Minority shareholders' equity 32358323.55 25162253.08
Net assets acquired 62667044.92 48730708.86
(4) Gains or losses arising from the remeasurement of equity held before the acquisition date at fair value
None.
2. Business combination under common control
None.
3. Reverse acquisitions
None.
26 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
4. Disposal of subsidiaries
The Determination Amount of
Difference Methods and Other
Between the Book Value Fair Value Main Comprehensive
Disposal Price of the of the Assumptions Income
Proportion
Disposal and the Share Remaining Remaining of the Fair Related to
Basis for of Gains or Losses
Disposal Methods of the Equity at the Equity at the Value of the Equity
Disposal Price Determining Remaining Arising from
Time Point Ratio of the of the Subsidiaries' Consolidated Consolidated Remaining Investment of
Name of of the Time the Time Equity on Remeasurement
of Losing Time Point Time Net Assets at Financial Financial Equity on the the Original
Subsidiary Point of Point of the Date of of Remaining
Control of Losing Point of the Level of Statement Statement Date of Subsidiary
Losing Control Losing Losing Equity at Fair
Control (%) Losing Consolidated Level on the Level on the Losing Transferred
Control Control Value
Control Statements Date of Date of Control at the into Investment
(%)
Corresponding Losing Losing Consolidated Profits and
to the Control Control Financial Losses or
Disposal Statement Retained
Investment Level Earnings
Shenyang
Water and
Business
Heat Source 2024/01/25 1000001.00 56.00 Sale -230233.67
registration
Development
Co. Ltd.Gree
(Chengdu)
Business
Precision 2024/05/27 100.00 Cancelled
registration
Mold Co.Ltd.Gree Robot
Business
(Luoyang) 2024/05/31 100.00 Cancelled
registration
Co. Ltd.Jilin
Songliang
Modern Business
2024/07/10 2000000.00 70.00 Sale 2354547.19
Agricultural registration
Development
Co. Ltd.Jilin It was merged It was merged
Songliang and sold and sold
Business
Tianfuyu 2024/07/10 together with 100.00 Sale together with
registration
Agricultural its parent its parent
Development company Jilin company Jilin
26 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
The Determination Amount of
Difference Methods and Other
Between the Book Value Fair Value Main Comprehensive
Disposal Price of the of the Assumptions Income
Proportion
Disposal and the Share Remaining Remaining of the Fair Related to
Basis for of Gains or Losses
Disposal Methods of the Equity at the Equity at the Value of the Equity
Disposal Price Determining Remaining Arising from
Time Point Ratio of the of the Subsidiaries' Consolidated Consolidated Remaining Investment of
Name of of the Time the Time Equity on Remeasurement
of Losing Time Point Time Net Assets at Financial Financial Equity on the the Original
Subsidiary Point of Point of the Date of of Remaining
Control of Losing Point of the Level of Statement Statement Date of Subsidiary
Losing Control Losing Losing Equity at Fair
Control (%) Losing Consolidated Level on the Level on the Losing Transferred
Control Control Value
Control Statements Date of Date of Control at the into Investment
(%)
Corresponding Losing Losing Consolidated Profits and
to the Control Control Financial Losses or
Disposal Statement Retained
Investment Level Earnings
Co. Ltd. Songliang Songliang
Modern Modern
Agricultural Agricultural
Development Development
Co. Ltd. Co. Ltd.Gelan
Environmental
Protection Business
2024/08/23 100.00 Cancelled
Technology registration
(Shaoguan)
Co. Ltd.Datro
Business
(Weihai) Auto 2024/09/13 65.95 Cancelled
registration
Parts Co. Ltd.Gree HVAC
Equipment Business
2024/10/16 100.00 Cancelled
(Chengdu) registration
Co. Ltd.Gree CNC
Machine Tool
Business
Research 2024/10/22 100.00 Cancelled
registration
Institute Co.Ltd. of Zhuhai
5. Change of consolidation scope for other reasons
Newly established entity in the current period:
26 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Net Profit from the Combination Date to the
Name Date of Establishment Net Assets at the End of the Period
End of the Period
DunAn International (Hong Kong) Company
2024/02/06
Limited
DunAn Hong Kong Industrial Co. Ltd. 2024/02/16
Zhuhai Gree Technology Management Co.
2024/03/11932242.59-67757.41
Ltd.Zhuhai Hengqin Gree Materials Supply Co.
2024/03/29127406890.5627442815.56
Ltd.Zhuhai Gree Medical Equipment Co. Ltd. 2024/04/22 62774.57 62774.57
Henan Gree Refrigeration and Washing
2024/05/15178759.00178759.00
Machine Sales Co. Ltd.Shanghai Gree Green Energy Technology
2024/06/06-128016.30-149016.30
Co. Ltd.Hebei Gree Refrigeration and Washing
2024/06/13389714.82389714.82
Machine Sales Co. Ltd.Shanghai Gree Auto Technology Co. Ltd. 2024/10/11 3996764.92 -3235.08
Gree Green Resources Recycling (Linyi)
2024/09/12
Co. Ltd.Gree Digital Technology (Jieyang) Co. Ltd. 2024/12/3 277073.26 277073.26
Gree Digital Technology (Hunan) Co. Ltd. 2024/12/31
Gree Digital Technology (Hebei) Co. Ltd. 2024/12/31
Gree Digital Technology (Henan) Co. Ltd. 2024/12/31
VII. Equity in other entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
27 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Voting
Main Shareholding Ratio (%)
Place of Nature of Right
S/N Name of Subsidiary Business Acquisition Method
Registration Business Proportion
Location Direct Indirect
(%)
Chongqing Chongqing Industrial
1 Gree (Chongqing) Electric Appliances Co. Ltd. 97.00 97.00 Establishment
City City manufacture
Industrial Business combination
2 Zhuhai Landa Compressor Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00
manufacture under common control
Industrial Business combination
3 Zhuhai Gree Electrical Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00
manufacture under common control
Industrial Business combination
4 Zhuhai Gree Xinyuan Electronics Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00
manufacture under common control
Industrial Business combinations not
5 Zhuhai Kaibang Motor Manufacturing Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00
manufacture under common control
Industrial
6 Gree (Hefei) Electric Appliances Co. Ltd. Hefei City Hefei City 100.00 100.00 Establishment
manufacture
Zhongshan Zhongshan Industrial
7 Gree (Zhongshan) Small Home Appliances Co. Ltd.. 100.00 100.00 Establishment
City City manufacture
Business combination
8 Zhuhai Gree Group Finance Company Limited Zhuhai City Zhuhai City Finance 99.54 0.46 100.00
under common control
Manaus Manaus Industrial
9 Gree (Brazil) Electric Appliances Co. Ltd. 100.00 100.00 Establishment
Brazil Brazil manufacture
Kowloon Kowloon Business combinations not
10 Gree Hong Kong Electric Appliances Sales Co. Ltd. Sales 100.00 100.00
Hong Kong Hong Kong under common control
Shanghai Shanghai
11 Shanghai Gree Air Conditioners Sales Co. Ltd. Sales 90.00 9.70 99.70 Establishment
City City
Industrial
12 Zhuhai Gree Daikin Precision Mold Co. Ltd. Zhuhai City Zhuhai City 51.00 51.00 Establishment
manufacture
Industrial
13 Zhuhai Gree Daikin Device Co. Ltd. Zhuhai City Zhuhai City 51.00 51.00 Establishment
manufacture
Technical
Zhuhai Gree Green Refrigeration Technology Research
14 Zhuhai City Zhuhai City research and 100.00 100.00 Establishment
Center Co. Ltd.development
Zhengzhou Zhengzhou Industrial
15 Gree (Zhengzhou) Electric Appliances Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Industrial
16 Gree (Wuhan) Electric Appliances Co. Ltd. Wuhan City Wuhan City 100.00 100.00 Establishment
manufacture
Zhengzhou Zhengzhou Industrial
17 Zhengzhou Gree Green Resources Recycling Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Ningxiang Ningxiang Industrial
18 Hunan Green Resources Recycling Co. Ltd. 100.00 100.00 Establishment
County County manufacture
27 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Voting
Main Shareholding Ratio (%)
Place of Nature of Right
S/N Name of Subsidiary Business Acquisition Method
Registration Business Proportion
Location Direct Indirect
(%)
Industrial
19 Gree (Wuhan) Electric Appliances Co. Ltd. Wuhu City Wuhu City 100.00 100.00 Establishment
manufacture
Industrial
20 Wuhu Green Resources Recycling Co. Ltd. Wuhu City Wuhu City 100.00 100.00 Establishment
manufacture
Shijiazhuang Shijiazhuang Industrial
21 Gree (Shijiazhuang) Small Home Appliances Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Shijiazhuang Shijiazhuang Industrial
22 Shijiazhuang Green Resources Recycling Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Shijiazhuang Shijiazhuang Industrial Business combinations not
23 Gree (Shijiazhuang) Electric Appliances Co. Ltd. 100.00 100.00
City City manufacture under common control
Zhuhai Gree HVAC and Refrigeration Equipment Co. Industrial
24 Zhuhai City Zhuhai City 100.00 100.00 Establishment
Ltd. manufacture
Tianjin Green Renewable Resources Utilization Co. Industrial
25 Tianjin City Tianjin City 100.00 100.00 Establishment
Ltd. manufacture
Industrial
26 Zhuhai Gree TOSOT Home Appliances Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Information
27 Zhuhai EWPE Information Technology Inc. Zhuhai City Zhuhai City 100.00 100.00 Establishment
technologies
Changsha Changsha Industrial
28 Gree (Changsha) HVAC Equipment Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Industrial
29 Gree TOSOT (Suqian) Home Appliances Co. Ltd. Suqian City Suqian City 100.00 100.00 Establishment
manufacture
Industrial
30 Wuhu Gree Precision Manufacturing Co. Ltd. Wuhu City Wuhu City 100.00 100.00 Establishment
manufacture
Industrial
31 Zhuhai Gree Intelligent Equipment Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
32 Zhuhai Hengqin Gree Business Factoring Co. Ltd. Zhuhai City Zhuhai City Finance 100.00 100.00 Establishment
Zhuhai Gree Intelligent Equipment Technology Institute Industrial
33 Zhuhai City Zhuhai City 100.00 100.00 Establishment
Co. Ltd. manufacture
Gree HVAC and Refrigeration Equipment (Wuhan) Industrial
34 Wuhan City Wuhan City 100.00 100.00 Establishment
Co. Ltd. manufacture
Industrial
35 Gree (Wuhan) Precision Mold Co. Ltd. Wuhan City Wuhan City 100.00 100.00 Establishment
manufacture
Industrial
36 Zhuhai Gree Precision Mold Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Industrial
37 Gree New Material Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
27 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Voting
Main Shareholding Ratio (%)
Place of Nature of Right
S/N Name of Subsidiary Business Acquisition Method
Registration Business Proportion
Location Direct Indirect
(%)
Industrial
38 Zhuhai Gree Energy Environment Technology Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Hangzhou Hangzhou Industrial
39 Gree (Hangzhou) Electric Appliances Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Information
40 Gree Information Technology Co. Ltd. of Zhuhai Zhuhai City Zhuhai City 51.00 51.00 Establishment
technologies
Gree (Wu'an) Precision Equipment Manufacturing Co. Wu'an Wu'an Industrial
41 70.00 70.00 Establishment
Ltd. County County manufacture
42 Zhuhai Gree Transportation Co. Ltd. Zhuhai City Zhuhai City Transportation 100.00 100.00 Establishment
Luoyang Luoyang Industrial
43 Gree (Luoyang) Electric Appliances Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Industrial
44 Gree (Nanjing) Electric Appliances Co. Ltd. Nanjing City Nanjing City 100.00 100.00 Establishment
manufacture
Industrial
45 Zhuhai Lianyun Technology Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Industrial
46 Zhuhai Edgeless Integrated Circuit Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Chengdu Chengdu Industrial
47 Gree (Chengdu) Electric Appliances Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Industrial
48 Gree Material Supply Co. Ltd. of Zhuhai Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Industrial
49 Zhuhai Gree Green Control Technology Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Industrial Business combinations not
50 Hefei Kinghome Electrical Co. Ltd. Hefei City Hefei City 100.00 100.00
manufacture under common control
Zhuhai Gree Mechanical and Electrical Engineering Industrial Business combination
51 Zhuhai City Zhuhai City 100.00 100.00
Co. Ltd. manufacture under common control
Gree Electric Appliances (Luoyang) Washing Machine Luoyang Luoyang Industrial
52 100.00 100.00 Establishment
Co. Ltd. City City manufacture
Guochuang Energy Internet Innovation Center Information
53 Zhuhai City Zhuhai City 75.00 2.75 77.75 Establishment
(Guangdong) Co. Ltd. technologies
Industrial
54 Gree (Anji) Precision Mold Co. Ltd. Anji County Anji County 100.00 100.00 Establishment
manufacture
Industrial
55 Zhuhai Gree Green Resources Recycling Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Wholesales
56 Gree E-commerce Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
and retails
27 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Voting
Main Shareholding Ratio (%)
Place of Nature of Right
S/N Name of Subsidiary Business Acquisition Method
Registration Business Proportion
Location Direct Indirect
(%)
57 Zhuhai Gejian Health Medical Technology Co. Ltd. Zhuhai City Zhuhai City Medical device 100.00 100.00 Establishment
Industrial
58 Gree (Zhuhai Jinwan) Electric Appliances Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Chengdu Chengdu
59 Gree Chengdu Xinhui Medical Equipment Co. Ltd. Medical device 75.00 2.75 77.75 Establishment
City City
Ganzhou Ganzhou Industrial
60 Gree (Ganzhou) Electric Appliances Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Songyuan Songyuan Business combinations not
61 SL Group Co. Ltd. Agriculture 75.00 75.00
City City under common control
Industrial
62 Gree (Linyi) Electric Appliances Co. Ltd. Linyi City Linyi City 100.00 100.00 Establishment
manufacture
Real estate
63 Gree (Zhuhai Hengqin) Development Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
industry
Changsha Changsha Industrial
64 Changsha Kinghome Electric Appliances Co. Ltd. 100.00 100.00 Establishment
City City manufacture
Industrial Business combinations not
65 Gree Altairnano New Energy Inc. Zhuhai City Zhuhai City 55.01 72.47
manufacture under common control
66 Zhuhai Mingruida Supply Chain Technology Co. Ltd. Zhuhai City Zhuhai City Transportation 70.00 70.00 Establishment
Industrial Business combinations not
67 Zhejiang DunAn Artificial Environment Co. Ltd. Zhuji City Zhuji City 38.46 38.46
manufacture under common control
Industrial
68 Zhuhai Gree Electronic Components Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
Wholesales
69 Zhuhai Gree Digital Technology Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
and retails
Zhuhai Gree Prefabricated Vegetable Equipment Industrial
70 Zhuhai City Zhuhai City 100.00 100.00 Establishment
Technology Development Co. Ltd. manufacture
Electrical
machinery and
Shanghai Shanghai
71 Gree Lintanyuan (Shanghai) Technology Co. Ltd. equipment 40.00 15.55 55.55 Establishment
City City
manufacturing
industry
Science and
technology
72 Zhuhai Gree Technology Management Co. Ltd. Zhuhai City Zhuhai City 60.00 60.00 Establishment
popularization
and application
27 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Voting
Main Shareholding Ratio (%)
Place of Nature of Right
S/N Name of Subsidiary Business Acquisition Method
Registration Business Proportion
Location Direct Indirect
(%)
Industrial
73 Zhuhai Hengqin Gree Materials Supply Co. Ltd. Zhuhai City Zhuhai City 100.00 100.00 Establishment
manufacture
[Note] The Company directly holds 38.46% of the equity of DunAn Environment becomes the largest shareholder of DunAn Environment and has the power to restructure
the board of directors of DunAn Environment and nominate more than half of the directors. At present the Company comprises more than half of the board of directors and
controls DunAn Environment. Therefore the DunAn Environment is included in the scope of company consolidation.
(2) Important non-holly-owned subsidiaries
None.
27 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
2. Transactions in which the share of owner's equity in the subsidiary changes and still controls the
subsidiary
On February 27 2024 the holding subsidiary of the Company DunAn Environment issued 8.8092 million
ordinary A-shares through a targeted placement accounting for 0.83% of the share capital of DunAn
Environment. After the issuance the Company's shareholding in DunAn Environment changed from 38.78% to
38.46%.
3. Equities in joint ventures or associates
(1) Important joint ventures or associates
None.
(2) Main financial information of important joint ventures
None.
(3) Main financial information of important associates
None.
(4) Summary financial information of unimportant joint ventures and associates
Ending Balance/Current Amount Beginning Balance/Amount Incurred
Item
Incurred in the Previous Period
Joint ventures:
Total investment book value 1146314.44 1158934.68
Total number of the following items
calculated based on the shareholding
ratio
Net profits -12620.24 -7424.29
Total comprehensive income -12620.24 -7424.29
Associates:
Total investment book value 4354565937.10 4487808096.52
Total number of the following items
calculated based on the shareholding
ratio
Net profits 14232495.88 93229867.45
Other comprehensive income -173628827.39 -1013488757.99
Total comprehensive income -159396331.51 -920258890.54
(5)Significant restrictions on the ability of joint ventures or associates to transfer funds to the Company
None.
(6)Excess losses incurred by joint ventures or associates
27 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Unrecognized Losses in the
Accumulated Unrecognized Accumulated Unrecognized
Name of Joint Venture or Current Period (or Net
Losses Accumulated in the Losses at the End of
Associates Profit Shared in the Current
Previous Period Current Period
Period)
Beijing Gree Technology
-1128887.77-17837.62-1146725.39
Co. Ltd.Eocell Limited -10186749.35 1619631.13 -8567118.22
Ningxia Nenggu New
Energy Technology Co. -146625.62 -146625.62
Ltd.
(7)Unrecognized commitments related to investment in joint ventures
None.
(8) Contingent liabilities related to investment in joint ventures or associates
None.
4. Important co-management
None.
5. Equity in structured entities not included in the Consolidated Financial Statements
None.VIII. Government grants
1. Government grants recognized at the end of the period based on the amount receivable
There are no government grants recognized at the end of the period based on the amount receivable.
2. Debt projects involved government grants
Newly Added
Items in Other Income
Beginning Grant Amount in Related to
Financial Transferred in the Ending Balance
Balance the Current Assets/Incomes
Statements Current Period
Period
Deferred income 3325145873.85 114088661.27 230521463.92 3208713071.20 Related to assets
Related to
Deferred income 199008927.67 28883249.46 29124024.56 198768152.57
incomes
Total 3524154801.52 142971910.73 259645488.48 3407481223.77
3. Government subsidies included in the profits and losses in this year
Amount Incurred in the Previous
Items in Financial Statements Amount Incurred in the Current Period
Period
Other income 1916950375.04 716882751.82
Non-operating revenues 3781050.00 26340308.60
Total 1920731425.04 743223060.42
IX. Risks associated with financial instruments
The main financial instruments of the Company include monetary funds trading financial assets derivative
financial assets notes receivable receivables financing receivables loans and advances buying back the sale of
27 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
financial assets debt investments other debt investments other equity instrument investments other financial
liabilities arising from operation (e.g. payables). These financial instruments aim to provide funds for the
operations of the Company.The main risks caused by the Company's financial instruments are credit risk liquidity risk and market risk.
1. Risks of financial instruments
(1) Classification of financial instruments
The book values of various financial instruments on the balance sheet date:
1) Ending Balance
Classification of Financial Assets
Financial Assets Financial Assets
Measured at Fair Measured at Fair
Item Financial Assets Value with Value with
Measured at Changes included Changes Included Total
Amortized Costs in Other in Other
Comprehensive Comprehensive
Income Income
1. Measured at amortized
costs
Monetary funds 113900461797.94 113900461797.94
Accounts receivable 16831887388.06 16831887388.06
Other receivables 869731224.40 869731224.40
Buying back the sale of
5625977294.575625977294.57
financial assets
Non-current assets due
2723523527.192723523527.19
within one year
Other current financial assets 9508720109.73 9508720109.73
Disbursement of loans and
431208935.61431208935.61
advances
Debt investment 1001466666.64 1001466666.64
Long-term receivables 9483113.92 9483113.92
Other non-current financial
56225114705.6756225114705.67
assets
Subtotal 207127574763.73 207127574763.73
2. Measured at fair values
Trading financial assets 16548258632.49 16548258632.49
Receivables financing 9600726284.77 9600726284.77
Non-current assets due
11131263203.5411131263203.54
within one year
Other current financial assets 5781243013.70 27356960.00 5808599973.70
Other debt investments 7016555220.76 7016555220.76
Other equity instrument
3039588563.463039588563.46
investments
Subtotal 36569376286.23 16575615592.49 53144991878.72
Total 207127574763.73 36569376286.23 16575615592.49 260272566642.45
27 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
(Continued)
Classification of Financial Liabilities
Financial Liabilities
Item Measured at Fair Value
with Changes Included in Other Financial Liabilities Total
the Current Profits and
Losses
1. Measured at amortized
costs
Short-term borrowings 39009527273.22 39009527273.22
Notes payable 14479000765.12 14479000765.12
Accounts payable 47091320744.05 47091320744.05
Deposits from customers and
307788319.03307788319.03
interbank
Other payables 4556911705.22 4556911705.22
Non-current liabilities due
15577179285.8915577179285.89
within one year
Other current financial
9817844355.199817844355.19
liabilities
Long-term borrowings 18229817922.13 18229817922.13
Lease liabilities 711291189.69 711291189.69
Long-term payables 7912428.09 7912428.09
Subtotal 149788593987.63 149788593987.63
2. Measured at fair values
Derivative financial
170740734.87170740734.87
liabilities
Subtotal 170740734.87 170740734.87
Total 170740734.87 149788593987.63 149959334722.50
2) Beginning Balance
Classification of Financial Assets
Financial Assets Financial Assets
Measured at Fair Measured at Fair
Item Financial Assets Value with Value with
Measured at Changes Included Changes Included Total
Amortized Costs in Other in Other
Comprehensive Comprehensive
Income Income
1. Measured at amortized
costs
Monetary funds 124104987289.62 124104987289.62
Notes receivable 87340130.52 87340130.52
Accounts receivable 16099477117.56 16099477117.56
Other receivables 826558622.42 826558622.42
Buying back the sale of
3932338954.493932338954.49
financial assets
27 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Classification of Financial Assets
Financial Assets Financial Assets
Measured at Fair Measured at Fair
Item Financial Assets Value with Value with
Measured at Changes Included Changes Included Total
Amortized Costs in Other in Other
Comprehensive Comprehensive
Income Income
Non-current assets due
53899646.4053899646.40
within one year
Other current financial assets 22648940712.61 22648940712.61
Disbursement of loans and
543726609.23543726609.23
advances
Debt investment 1150744482.05 1150744482.05
Long-term receivables 62185327.12 62185327.12
Other non-current financial
41140982554.5241140982554.52
assets
Subtotal 210651181446.54 210651181446.54
2. Measured at fair values
Trading financial assets 9614423403.40 9614423403.40
Derivative financial assets 108919513.22 108919513.22
Receivables financing 10176089668.41 10176089668.41
Non-current assets due
2357733812.892357733812.89
within one year
Other current financial assets 3175475.00 5407350.00 8582825.00
Other debt investments 16363841665.96 16363841665.96
Other equity instrument
3864865509.373864865509.37
investments
Subtotal 32765706131.63 9728750266.62 42494456398.25
Total 210651181446.54 32765706131.63 9728750266.62 253145637844.79
(Continued)
Classification of Financial Liabilities
Financial Liabilities
Item Measured at Fair Value
with Changes Included in Other Financial Liabilities Total
the Current Profits and
Losses
1. Measured at amortized
costs
Short-term borrowings 26443476388.52 26443476388.52
Notes payable 23741128400.12 23741128400.12
Accounts payable 41147359221.95 41147359221.95
Deposits from customers and
254616899.35254616899.35
interbank
28 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Classification of Financial Liabilities
Financial Liabilities
Item Measured at Fair Value
with Changes Included in Other Financial Liabilities Total
the Current Profits and
Losses
Other payables 5513266516.82 5513266516.82
Non-current liabilities due
20605521073.0320605521073.03
within one year
Other current financial
8654989988.958654989988.95
liabilities
Long-term borrowings 39035742535.09 39035742535.09
Lease liabilities 767007951.92 767007951.92
Long-term payables 27028498.30 27028498.30
Subtotal 166190137474.05 166190137474.05
2. Measured at fair values
Derivative financial
4079919.914079919.91
liabilities
Subtotal 4079919.91 4079919.91
Total 4079919.91 166190137474.05 166194217393.96
(2) Credit risks
Credit risk refers to a risk of financial losses suffered by one party due to the non-performance of obligations by
the other party of the financial instrument.The Company only has transactions with recognized customers with a good reputation. Under the policies of the
Company all the customers who require the credit form for transactions shall undergo credit review. Besides the
Company continuously monitors the balance of accounts receivable to ensure that the Company is not confronted
with the major risk of bad debts.The financial assets of the Company include monetary funds and receivables financing. The credit risks of these
financial assets come from the nonperformance of the transaction counterparty and the maximum risk exposure
is equal to the book value of these instruments.The monetary funds are deposited in state-owned financial institutions with high credit ratings minimizing the
risk; the receivables financing is mainly banker's acceptance bills and the risk exposure is rather small. The book
values of notes receivable receivables financing accounts receivable other receivables contract assets loans and
advances and long-term receivables in the consolidated balance sheet are the highest credit risk with which the
Company may be confronted.As of the end of the reporting period the Company's notes receivables accounts receivable receivables financing
other receivables contract assets loans and advances and long-term receivables account for 7.71% of the total
assets (the beginning balance is 7.80%) and the above amounts are mainly due within 1 year so the Company has
no significant credit risk. For the Company's credit risk exposures arising from the above financial assets please
refer to the disclosed information in Note V. 4 Notes receivable Note V. 5 Accounts receivable Note V. 7
Receivables financing Note V. 9 Other receivables Note V. 6 Contract assets Note V. 14 Loans and advances
and Note V. 17 Long-term receivables.
28 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
(3) Liquidity risks
Liquidity risk refers to a risk of fund shortage generated when the enterprise performs the obligation to settle
accounts by cash payment or other financial assets.As indicated by changes in the Company’s financial instruments at the beginning and end of the period the
proportion of the Company's financial assets to financial liabilities at the end of the reporting period was 1.74
(which was 1.52 at the beginning of the period) showing that the Company has adequate liquidity and the risk of
shortage of liquidity is low.
(4) Market risks
Market risk refers to a risk of fluctuation in the fair value or future cash flow of financial instruments due to
changes in the market price including fair value fluctuation risk exchange rate risk and interest rate risk.
1) Fair value fluctuation risk
The Company's financial investments mainly involve products such as stocks wealth management products bonds
negotiable certificates of deposit and forward foreign exchange settlement and purchase. Except for the significant
fluctuations in the fair value of stocks the fair value of products such as wealth management products bonds
negotiable certificates of deposit and forward foreign exchange settlement and purchase does not fluctuate
significantly. The stocks held by the Company are mainly stocks traded on the open market and the quality of the
invested companies is relatively good.As of the end of the reporting period the Company's wealth management products bonds negotiable certificates
of deposit and forward foreign exchange settlement and purchase account for 14.44% of the total assets (the
beginning balance is 11.55%) which are measured at fair value. For the fair value risk exposure of the Company
arising from the above-mentioned financial assets please refer to Note V. 2. Trading financial assets Note V. 7.Receivables financing Note V. 12. Non-current assets due within 1 year Note V. 13. Other current assets Note
V. 16. Other debt investments and Note V. 19. Other equity instrument investment.
2) Exchange rate risk
Exchange rate risk refers to the risk of fluctuation in the fair value or future cash flow of financial instruments due
to changes in the foreign exchange rate.As of December 31 2024 the amounts of foreign currency financial assets and liabilities held by the Company
converted into CNY are presented in Note V. 73. (1) Foreign currency monetary items.The Company minimizes the exchange rate risk by carrying out the forward exchange transaction business and
controlling the scale of foreign currency assets and liabilities according to changes in the market exchange rate.
3) Interest rate risks
Interest rate risk refers to the risk of fluctuation in the fair value or future cash flow of financial instruments due
to changes in the market interest rate.As of December 31 2024 the Company's liabilities with interests are as follows:
Statement Item Amount Interest Rate Range
Short-term borrowings 39009527273.22 0.60%-5.60%
Deposits from customers and interbank 307788319.03 0.25%-3.50%
Other payables 1503105131.31 4.35%
28 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Statement Item Amount Interest Rate Range
Non-current liabilities due within one
15491242977.111.90%-6.00%
year
Long-term borrowings 18229817922.13 2.28%-4.99%
Long-term payables 7912428.09 4.85%-4.90%
Total 74549394050.89
X. Fair value disclosure
1. Ending fair value of assets and liabilities measured at fair value
Ending Fair Value
Item
Measurement of Measurement of Measurement of
Total
Level 1 fair value Level 2 fair value Level 3 fair value
Continuous fair value
measurement
Trading financial assets 3566175526.49 12931706705.36 50376400.64 16548258632.49
Receivables financing 9600726284.77 9600726284.77
Non-current assets due within
638135121.3510493128082.1911131263203.54
one year
Other current financial assets 27356960.00 5781243013.70 5808599973.70
Other debt investments 545384403.28 6471170817.48 7016555220.76
Other equity instrument
3032588563.467000000.003039588563.46
investments
Total of assets measured at fair
7809640574.5845277974903.5057376400.6453144991878.72
value continuously
Derivative financial liabilities 170740734.87 170740734.87
Total of liabilities measured at
170740734.87170740734.87
fair value continuously
2. Basis for determining market prices of items measured within the level 1 of fair value hierarchy
continuously and not continuously
Trading financial assets non-current assets — bonds due within one year other current assets other debt
investments — bonds and other equity instrument investments held by the Company at the level 1 fair value are
determined based on the quotation of corresponding products and investment projects on the open market.
3. Qualitative and quantitative information on valuation techniques and important parameters for
items measured within Level 2 of fair value continuously and not continuously
Assets held by the Company measured within Level 2 fair value are determined using the market approach and
income approach.Receivables financing held by the Company measured within Level 2 fair value are the banker's acceptance bills
and accounts receivable held by the Company and their corresponding transfer and discounted amounts are used
as the basis for determining their market prices.Trading financial assets and derivative financial liabilities held by the Company measured within Level 2 fair
value are mainly forward hedging instruments and asset management plans and the determination of fair value is
based on the fair value confirmation letter issued by the trading institution at the end of the period;
28 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Non-current assets other current assets and other debt investments held by the Company measured within Level
2 fair value within one year are mainly negotiable certificates of deposit and the fair value is determined based on
the prices of the same or similar assets in the inactive market.
4. Qualitative and quantitative information on valuation techniques and important parameters for
items measured within Level 3 fair value continuously and not continuously
Trading financial assets and non-trading equity instrument investments designated to be measured at fair value
with their changes included in other comprehensive income held by the Company and measured within Level 3
fair value are mainly items that have no observable data validation in the active market and use their data to make
financial predictions.
5. For continuous fair value measurement items in case of conversion among different levels during
the current period the reasons for conversion and the policy for determining the timing for conversion
None.
6. Changes in valuation techniques and reasons for changes occurred during the current period
None.
7. Fair values of financial assets and liabilities not measured at fair value
None.XI. Affiliated parties and affiliated transaction
1. Information on the Company's parent company
The Company has no controlling shareholders or substantial controllers.
2. Information on the Company's subsidiaries
For details please refer to Note VII. 1 Equity in subsidiaries.
3. Joint ventures and associates of the Company
For details of other joint ventures or associates that have affiliated transactions with the Company in the
current period or form balances from affiliated transactions with the Company in the previous period please
refer to Note V. 18. Long-term equity investment and Note VII. 3 (6) Excess losses incurred by joint ventures
or associates.
4. Other affiliated parties
Relationship Between Other Affiliated Parties and the
Name of Other Affiliated Parties
Company
Shanghai Highly (Group) Co. Ltd. and its holding
Company in which the Company holds over 5% of its shares
subsidiaries
Company in which the Company has a significant impact on
Wuhu Green Resources Recycling Co. Ltd.it
Henan Gree Installation Engineering Co. Ltd. Company held by the Company's director
Company where directors of the Company act as executive
Zhejiang Shengshi Xinxing Gree Trade Co. Ltd.directors and general managers
28 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Relationship Between Other Affiliated Parties and the
Name of Other Affiliated Parties
Company
Zhejiang Tongcheng Gree Electric Appliances Co. Ltd. Companies held by directors of the Company or where a
and its holding companies director of the Company acts as board chairman
Company where directors of the Company act as executive
Henan Shengshi Xinxing Gree Trade Co. Ltd.directors
Shandong Jierui Logistics Co. Ltd. Company held by the Company's supervisor
Company where the Company's independent directors serve
ETR Law Firm
as its senior partners
Company in which the Company has a significant impact on
Hunan Green Resources Recycling Co. Ltd.it
Company where the son of the Company's director acts as
Henan Kaige Trading Co. Ltd.executive directors
Company where the son of the Company's director acts as
Henan Huizhong Yifeng E-commerce Co. Ltd.executive directors
Company where the Director and Vice President of the
Chang'an Bank Co. Ltd.Company serve as a Director
5. Affiliated transaction
(1) Affiliated transactions of purchase and sale of commodities provision and receiving labor services
1) Purchase of commodities/receiving labor services
Type of Content of Amount Incurred Amount Incurred
Affiliated Parties Affiliated Affiliated in the Current in the Previous
Transactions Transactions Period Period
Shanghai Highly (Group) Co. Ltd. and Material
Raw materials 1104632383.40 1347112001.68
its holding subsidiaries procurement
Material
Beijing Gree Technology Co. Ltd. Accessories 21467551.41 16652917.66
procurement
Interest
Sichuan Jinshi Leasing Co. Ltd. and its Service expenses and
5307435.4314709472.85
holding companies procurement consulting
services
Service
Henan Yuze Finance Leasing Co. Ltd. Interest expense 3276594.49 3549617.92
procurement
Zhejiang Tongcheng Gree Electric
Accept money
Appliances Co. Ltd. and its holding Interest expense 38.53 62.23
deposits
companies
Henan Shengshi Xinxing Gree Trade Accept money
Interest expense 33.38 45.18
Co. Ltd. deposits
Henan Shengshi Xinxing Gree Trade Material
Raw materials 488645.15
Co. Ltd. procurement
Total 1134684036.64 1382512762.67
2) Schedule of commodity sold/services provided
Type of
Content of Affiliated Amount Incurred in the Amount Incurred in the
Affiliated Parties Affiliated
Transactions Current Period Previous Period
Transactions
Zhejiang
Shengshi Xinxing
Sale of goods Sales revenue 5377436945.43 5885129357.41
Gree Trade Co.Ltd.Henan Shengshi
Xinxing Gree Sale of goods Sales revenue 1535857617.10 4673380959.10
Trade Co. Ltd.Shanghai Highly
(Group) Co. Ltd.Sale of goods Sales revenue 904181035.33 1025827011.12
and its holding
subsidiaries
Henan Gree
Installation Sale of goods Sales revenue 325036112.31
Engineering Co.
28 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Type of
Content of Affiliated Amount Incurred in the Amount Incurred in the
Affiliated Parties Affiliated
Transactions Current Period Previous Period
Transactions
Ltd.Henan Kaige
Sale of goods Sales revenue 23500508.19
Trading Co. Ltd.Henan Huizhong
Yifeng E-
Sale of goods Sales revenue 1823972.55 22940080.25
commerce Co.Ltd.Zhuhai Jiayao
Food Technology Sale of goods Sales revenue 876969.82
Co. Ltd.Beijing Gree
Technology Co. Loan Interest income 666055.04 647429.80
Ltd.Beijing Gree
Technology Co. Sale of goods Sales revenue 457782.58 115919.47
Ltd.ETR Law Firm Sale of goods Sales revenue 2114.16 2779.94
Zhejiang
Tongcheng Gree
Electric
Appliances Co. Sale of goods Sales revenue 74808.34
Ltd. and its
holding
companies
Lanzhou
Guangtong New
Energy Sale of goods Sales revenue 1747290.45
Automobile Co.Ltd.Eocell Limited Sale of goods Sales revenue 35657.27
Chang'an Bank
Sale of goods Sales revenue 211.50
Co. Ltd.Total 8169839112.51 11609901504.65
(2) Associated trusteeship management/contracting or entrusted management/contract awarding
None.
(3) Associated lease
3) The Company as the lessor:
Affiliated Type of Leased Amount Incurred in the Current Amount Incurred in the Previous
Parties Assets Period Period
Zhuhai Jiayao
Food
House lease 125612.75
Technology
Co. Ltd.
4) The Company as the leasee:
None.
(4) Associated guarantee
None.
(5) Fund lending among affiliated parties
None.
(6) Asset transfer and debt restructuring of affiliated parties
28 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
None.
(7) Remunerations for key management personnel
Item Amount Incurred in the Current Period Amount Incurred in the Previous Period
Remunerations for key management
45051813.9734081922.40
personnel
(8) Other affiliated transactions
None.
6. Receivables and payables of affiliated parties
(1) Receivables
Ending Balance Beginning Balance
Item Affiliated Parties Bad debt Bad debt
Book balance Book balance
reserves reserves
Accounts Shanghai Highly (Group) Co. Ltd. and its holding
268347372.1913438523.28246543051.2312327152.54
receivable subsidiaries
Accounts 167059470.1
Lanzhou Guangtong New Energy Automobile Co. Ltd. 167167904.76 168267904.76 138251251.48
receivable 5
Accounts
Wuhu Green Resources Recycling Co. Ltd. 2263529.62 2263529.62 2263529.62 1131764.81
receivable
Receivables
Henan Gree Installation Engineering Co. Ltd. 235896253.91 9972475.49
financing
Receivables
Zhejiang Shengshi Xinxing Gree Trade Co. Ltd. 139952191.77 189472820.55
financing
Receivables Zhejiang Tongcheng Gree Electric Appliances Co. Ltd.
31561193.505634448.65
financing and its holding companies
Receivables Shanghai Highly (Group) Co. Ltd. and its holding
23632611.04124206884.12
financing subsidiaries
Receivables
Henan Shengshi Xinxing Gree Trade Co. Ltd. 435297317.29
financing
Receivables
Shandong Jierui Logistics Co. Ltd. 176233586.82
financing
Shanghai Highly (Group) Co. Ltd. and its holding
Notes receivable 16000000.00 800000.00
subsidiaries
Sichuan Jinshi Leasing Co. Ltd. and its holding
Advance payments 2432890.00 6082225.00
companies
Shanghai Highly (Group) Co. Ltd. and its holding
Advance payments 10000.00 5641887.98
subsidiaries
DunAn (Tianjin) Energy Saving System Co. Ltd. and 170791178.6
Other receivables 170791178.69 172325809.58 129244357.19
its holding companies 9
Shanghai Highly (Group) Co. Ltd. and its holding
Other receivables 142612.34 11880.62 343266.03 19413.30
subsidiaries
Other receivables Zhuhai Jiayao Food Technology Co. Ltd. 140224.70 7011.24
Sichuan Jinshi Leasing Co. Ltd. and its holding
Other receivables 19519366.99 4879841.75
companies
Contract assets Zhuhai Jiayao Food Technology Co. Ltd. 29550.52 1477.53
Other non-current Sichuan Jinshi Leasing Co. Ltd. and its holding
18500000.004625000.00
assets companies
1042367513.0353573071.11596304574.1
Total 291278781.07
431
(2) Payables
Beginning
Item Affiliated Parties Ending Balance
Balance
Zhejiang Tongcheng Gree Electric Appliances
Accept money deposits 10762.35 16192.56
Co. Ltd. and its holding companies
Accept money deposits Henan Shengshi Xinxing Gree Trade Co. Ltd. 12068.59
Shanghai Highly (Group) Co. Ltd. and its
Accounts payable 334434585.61 425094848.95
holding subsidiaries
Accounts payable Beijing Gree Technology Co. Ltd. 7739610.01 12029563.76
Accounts payable Hunan Green Resources Recycling Co. Ltd. 2437065.09 2437065.09
28 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning
Item Affiliated Parties Ending Balance
Balance
Accounts payable Henan Shengshi Xinxing Gree Trade Co. Ltd. 249988.68 249988.68
Zhejiang Shengshi Xinxing Gree Trading Co.Accounts payable 33668.86
Ltd.DunAn (Tianjin) Energy Saving System Co.Accounts payable 4716.98 4716.98
Ltd. and its holding companies
Shanghai Highly (Group) Co. Ltd. and its
Other payables 512200.00 14200.00
holding subsidiaries
Other payables Henan Shengshi Xinxing Gree Trade Co. Ltd. 500001.00
Zhejiang Shengshi Xinxing Gree Trade Co.Other payables 33037.37 21617.37
Ltd.Other payables Henan Kaige Trading Co. Ltd. 2001.00
Other payables Shandong Jierui Logistics Co. Ltd. 0.26 0.26
Henan Huizhong Yifeng E-commerce Co.Other payables 100000.00
Ltd.Zhejiang Tongcheng Gree Electric Appliances
Other payables 204.24
Co. Ltd. and its holding companies
Contract liabilities Henan Shengshi Xinxing Gree Trade Co. Ltd. 526513385.57 566925018.21
Zhejiang Shengshi Xinxing Gree Trade Co.Contract liabilities 368879902.30 277427020.12
Ltd.Contract liabilities Henan Gree Installation Engineering Co. Ltd. 71901435.75
Shanghai Highly (Group) Co. Ltd. and its
Contract liabilities 1310162.68 1071224.64
holding subsidiaries
Contract liabilities Henan Kaige Trading Co. Ltd. 0.65
Henan Huizhong Yifeng E-commerce Co.Contract liabilities 4027582.80
Ltd.Contract liabilities Eocell Limited 42382.22
Other current liabilities —
Henan Shengshi Xinxing Gree Trade Co. Ltd. 68446740.13 73700252.37
value-added tax
Other current liabilities — Zhejiang Shengshi Xinxing Gree Trade Co.
47954387.3136065512.62
value-added tax Ltd.Other current liabilities —
Henan Gree Installation Engineering Co. Ltd. 9347186.65
value-added tax
Other current liabilities — Shanghai Highly (Group) Co. Ltd. and its
170321.16139259.20
value-added tax holding subsidiaries
Other current liabilities —
Henan Kaige Trading Co. Ltd. 0.09
value-added tax
Other current liabilities — Henan Huizhong Yifeng E-commerce Co.
523585.76
value-added tax Ltd.Long-term payables Henan Yuze Finance Leasing Co. Ltd. 7912428.09 18027707.93
Sichuan Jinshi Leasing Co. Ltd. and its
Long-term payables 7515470.87
holding companies
Non-current liabilities due
Henan Yuze Finance Leasing Co. Ltd. 10115279.84 25690210.83
within one year
Non-current liabilities due Sichuan Jinshi Leasing Co. Ltd. and its
75632127.95
within one year holding companies
Total 1458508867.43 1526767822.00
7. Commitment of affiliated parties
None.XII. Share-based payment
1. Overall situation of share-based payment
28 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Content
The 10th Meeting of the 8th Board of Directors
and the 10th Meeting of the 8th Supervisory
Board held by the company's wholly-owned
subsidiary DunAn Environment deliberated and
approved the Proposal on Adjusting the List of
Incentive Recipients and the Number of Grants for
the First Phase of the Company's Long-Term
Incentive Plan and the 2023 Restricted Share and
Share Option Incentive Plan and the Proposal on
Granting Restricted Shares and Share Options to
Incentive Recipients which agreed to consider
Total amount of equity instruments granted this year
January 24 2024 as the first grant date of the
restricted shares and the first grant date of the
share options under this incentive plan and grant
8.8092 million restricted shares to 367 incentive
recipients who met the grant conditions at a grant
price of CNY6.61 per share and 4.99 million share
options to 41 incentive recipients who met the
grant conditions at an exercise price of CNY13.21
per share.The total amount of equity instruments granted
this year is CNY50428637.25.According to the Employee Stock Ownership Plan
Phase II of Gree Electric Appliances Inc. of
Zhuhai (Draft) (Revised Draft) the Audit Report
(ZHSZ (2024) No. 0500139) issued by Union
Power Certified Public Accountants (Special
General Partnership) and the Company's relevant
equity distribution the company-level
Total amount of equity instruments exercised this year
performance evaluation indicators of the
Company's employee stock ownership plan phase
II have been achieved and the two phases of
attributable stock rights can be vested and
distributed. The total amount of equity
instruments in the employee stock ownership plan
phase II is CNY1569513319.20.Total amount of various equity instruments that have expired this year N/A
Share options outstanding at the end of the period
Other Equity
Share Options Instruments
Outstanding at the Outstanding at
End of the Period the End of the
Period
Category of Grant Object Remain Remain
ing ing
Exerc
Exercise Term of Term of
ise
Price the the
Price
Contrac Contrac
t t
Senior executive of the holding subsidiary DunAn Environment From
the first
trading
day 12
24 and
36
CNY13.21/s months
Middle-level managers and core technical (business) personnel of the holding N/A
hare after
subsidiary DunAn Environment
the first
grant of
the
share
option
to the
28 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Other Equity
Share Options Instruments
Outstanding at the Outstanding at
End of the Period the End of the
Period
Category of Grant Object Remain Remain
ing ing
Exerc
Exercise Term of Term of
ise
Price the the
Price
Contrac Contrac
t t
last
trading
day
within
2436
and 48
months
from
the first
grant of
the
share
option
2. Equity-settled share-based payments
Item Content
Method for
determining the fair
The Company determines the fair value of the employee stock ownership plan by deducting the
value of equity
grant price from the market price on the grant date.instruments on the
grant date
By assessing the company's performance and individual performance per year the Company takes
Basis for determining the number of equity instruments held by incentive targets achieving the assessment goals as the
the number of basis. On each balance sheet date during the vesting period the Company makes the best estimate
exercisable equity of subsequent information such as the latest change in number of vesting employees to correct the
instruments estimated number of vested equity instruments. On the vesting date the final estimated number of
exercisable equity instruments is consistent with their actual number.Reasons for
significant
differences between
N/A
estimates in the
current year and the
previous period
Accumulated amount
of equity settled
share-based 11519906.05
payments recognized
in capital reserves
Total expenses
recognized for equity
340619638.25
settled share-based
payments this period
3. Cash settled share-based payments
None.
4. Amendment and termination of share-based payment
None.
29 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
XIII. Commitments and contingencies
1. Important commitments
None.
2. Contingencies
(1) In accordance with the Equity Transfer Agreement entered into between Zhejiang DunAn Energy Saving
Technology Co. Ltd. (hereinafter referred to as "Zhejiang Energy Saving") a holding subsidiary of the Company
and Shuifa Energy Group Co. Ltd. (hereinafter referred to as "Shuifa Energy") on November 21 2019 the transfer
of other debts or payment obligations (hereinafter referred to as "contingent liabilities") of the target company
DunAn (Tianjin) Energy Saving System Co. Ltd. (hereinafter referred to as "Tianjin Energy Saving") before the
audit base date (May 31 2019) including but not limited to contingent debts and debts or liabilities arising after
the base date due to the fault of Zhejiang Energy Saving before the base date shall be borne by Zhejiang Energy
Saving. If the above debts are borne by Tianjin Energy Saving in advance or Tianjin Energy Saving is punished
as a result Tianjin Energy Saving has the right to recover from Zhejiang Energy Saving. If Shuifa Energy has
money payable to Zhejiang Energy Saving Zhejiang Energy Saving agrees that Shuifa Energy will directly deduct
the compensation to Tianjin Energy Saving. Tianjin Energy Saving has the right to continue to recover from the
Company for the insufficient part. The aforementioned responsibilities of Zhejiang Energy Saving can be directly
deducted from the equity transaction price payable by Shuifa Energy or the dividends of Zhejiang Energy Saving
in Tianjin Energy Saving and the shortfall will be compensated by Zhejiang Energy Saving.
(2) The Company provides guarantees for mortgage loans for homebuyers in accordance with industry practices
mainly in the form of phased guarantees. The guarantee period starts from the effective date of the guarantee
contract and ends on the date when the real estate certificate and mortgage registration procedures for the products
purchased by the customer are completed and delivered to the bank for management. As of December 31 2024
the outstanding guarantee amount is CNY 2231.5020 million.
3. Others
None.XIV. Matters after the balance sheet date
1. Important non-adjustment matters
None.
2. Distribution of profits
On April 22 2025 the Company's 2025 1st Extraordinary General Meeting of Shareholders approved the 2024
Interim Profit Distribution Plan. Based on the total share capital of the Company which was 5601405741 shares
after deducting the number of shares in the repurchase account which was 79462095 shares a cash dividend of
CNY10 (tax inclusive) was distributed to all shareholders for every 10 shares. No bonus shares were given and
no capital was converted from capital reserves. A total of CNY5521943646.00 in cash dividends was distributed.If there is a change in the total share capital of the Company entitled to profit distribution from the date of
disclosure of the distribution plan to the date of implementation of equity distribution registration the Company
29 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
will adjust the total dividend accordingly based on the principle of keeping the distribution ratio per share
unchanged.Under the resolution at the 2nd Meeting of the 13th Board of Directors the Company's profit distribution plan for
2024 is as follows: Since the total shares entitled to profit distribution as of April 25 2025 totaling 5585138741
shares (share capital of 5601405741 shares less 16267000 shares held in the Company's repurchase account)
is proposed as the base temporarily the Company plans to distribute a cash dividend of CNY20 (tax inclusive) per
10 shares to all shareholders totaling CNY11170277482.00. This distribution plan still requires approval of the
general meeting of shareholders.
3. Sales return
No important sales return occurred after the balance sheet date.
4. Divided as held for sale after the balance sheet date
None.
5. Other important non-adjustment matters after the balance sheet date
None.XV. Other important matters
1. Correction of accounting errors in the previous period
None.
2. Important debt restructuring
None.
3. Asset replacement
(1) Exchange of non-monetary assets
None.
(2) Replacement of other assets
None.
4. Annuity plan
None.
5. Discontinuing operation
Profit From
Discontinuing
Operation
Credit Income
Attributable
Item Revenue Expense Impairment Total Profits Tax Net Profits
to
losses Expenses
Shareholders
of Parent
Company
Gree (USA)
Sales Co. 6155836.24 66164694.73 60008858.49 5694.24 60003164.25 60003164.25
Ltd.
(Continued)
29 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Net Cash Flows from Net Cash Flows from Net Cash Flows from
Item
Operating Activities Investment Activities Financing Activities
Gree (USA) Sales Co. Ltd. -13279330.47
29 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
6. Segment report
(1) Determination basis and accounting policies for reporting segments
The Company determines the operating segments based on the internal organizational structure management requirements and internal reporting systems determines
the report segments based on the operating segments and discloses segment information. The Company is divided into four segments: household appliances
industrial products and green energy intelligent equipment and others. Assets and liabilities commonly used with each segment are allocated in proportion to their
scale.
(2) Financial information of reporting segments
Item Household Appliances Industrial Products and Green Energy Smart Device Others Offset Among Segments Total
External transaction income 148559931838.58 17246185690.02 424131758.64 23807822317.54 190038071604.78
External transaction costs 96691946304.39 14537492029.56 313649678.84 22112096696.22 133655184709.01
Total assets 425862201079.21 67108355024.43 5971419219.45 55417465495.86 186327736296.09 368031704522.86
Total liabilities 290054172215.07 55404172054.87 5568850234.51 43964859954.08 168474044883.64 226518009574.89
29 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
7. Other important matters affecting investor decisions
(1) The Company implements the phase III employee stock ownership plan
On August 2 2024 the Company held the 19th Meeting of the 12th Board of Directors and the 16th Meeting of
the 12th Board of Supervisors to deliberate and approve the Proposal on the Phase III Employee Stock Ownership
Plan of Gree Electric Appliances Inc. of Zhuhai (Draft) and the Proposal on Requesting the Shareholders' Meeting
to Authorize the Board of Directors to Handle Relevant Matters of the Phase III Employee Stock Ownership Plan.On August 19 2024 the 1st Extraordinary General Meeting of Shareholders in 2024 was held and the above two
proposals were reviewed and approved. According to the regulations on the implementation of the 2023 annual
equity distribution plan and the Phase III employee stock ownership plan the Company held the 21st Meeting of
the 12th Board of Directors and the 18th Meeting of the 12th Board of Supervisors on September 20 2024 to
deliberate and approve the Proposal on Adjusting the Purchase Price in the Phase III Employee Stock Ownership
Plan Due to the Distribution of Dividends during the Execution Period.The source of the shares for this employee stock ownership plan is the shares that have been repurchased under
the 4th repurchase plan in the company's dedicated repurchase account. The number is less than 79462095 shares
accounting for 1.41% of the company's total share capital at that time.On January 22 2025 the Company received the Confirmation of Securities Transfer Registration from the
Shenzhen Branch of CSDC. The Company's repo special securities account transferred 63195095 shares to the
special account for the "Gree Electric Appliances Inc. of Zhuhai — Phase III Employee Stock Ownership Plan"
through non-transaction transfer on January 21 2025 accounting for 1.13% of the Company's total share capital
with a total purchase amount of CNY1133088053.35.
(2) Company guarantee
As of December 31 2024 the total amount of Gree Altairnano guarantees is CNY1478098111.59 of which the
total amount of guarantees provided by Gree Altairnano subsidiaries for short-term loans non-current liabilities
due within 1 year accounts payable (E Xintong) and long-term payables is CNY398549400.00; the total amount
of guarantees provided to companies outside the consolidated statements is CNY1079548711.59 (the stock
guarantee provided by Gree Altairnano for the financial leasing and car purchase business of its bus company and
other customers).
(3) Financial support
1) Gree Altairnano provided financial loans of CNY94200 CNY681400 CNY23019800 and CNY17200
respectively to its original shareholder and its affiliated parties Wei Yincang Sun Guohua Zhuhai Yinlong
Investment Holding Group Co. Ltd. As of the date of this Annual Report the aforesaid loans have not been
recovered.
2) On November 21 2019 Zhejiang Energy Saving signed an equity transfer agreement with Shuifa Energy.
Zhejiang Energy Saving agreed to transfer its 65% equity and related rights of creditor of Tianjin Energy Saving
(and its subsidiaries and branches) to Shuifa Energy (hereinafter referred to as "Tianjin Energy Saving Equity
Transfer") with an equity transfer price of CNY390 million a payment for rights of creditor transfer of CNY390
million totaling CNY780 million; after the completion of the Tianjin Energy Saving Equity Transfer the
29 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
shareholding ratio of Zhejiang Energy Saving in Tianjin Energy Saving decreased from 100% to 35% and Tianjin
Energy Saving became a joint stock company of the Company. Zhejiang Energy Saving's credit of CNY600
million to Tianjin Energy Saving thereby formed passive financial support. Before Shuifa Energy paid for the
rights of creditor transfer Zhejiang Energy Saving had a credit of CNY600 million to Tianjin Energy Saving
forming financial support of CNY600 million; After Shuifa Energy paid CNY390 million for the rights of creditor
transfer under the Equity Transfer Agreement Zhejiang Energy Saving had a remaining credit of CNY210 million
to Tianjin Energy Saving forming financial support of CNY210 million. As of December 31 2024 there was still
CNY170791200 that had not been recovered and the corresponding impairment reserves were CNY170791200.XVI. Notes to main items of financial statements of the parent company
1. Accounts receivable
(1) Accounts receivable disclosed by account age
Account Age Ending Balance Beginning Balance
<1 year 4924371165.01 5093333514.94
12 years 49013594.09 99365598.67
23 years 57105362.09 72800967.64
>3 years 55325630.66 29800846.44
Subtotal 5085815751.85 5295300927.69
Less: Bad debt reserves 258043391.48 289922749.83
Total 4827772360.37 5005378177.86
(2) Presentation by categories of bad debt accrual method
Ending Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Accounts receivable with bad
debt reserves accrued by 4714882.36 0.09 4714882.36 100.00
individual item
Accounts receivable with bad
debt reserves accrued by 5081100869.49 99.91 253328509.12 4.99 4827772360.37
portfolios
Including: Account age
3443976923.6167.72253328509.127.363190648414.49
portfolio
Free-risk portfolios 1637123945.88 32.19 1637123945.88
Total 5085815751.85 100.00 258043391.48 5.07 4827772360.37
(Continued)
29 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance
Category Book Balance Bad Debt Reserves
Book Value
Proportion Credit Loss
Amount Amount
(%) Rate (%)
Accounts receivable with bad
debt reserves accrued by 4715115.32 0.09 4715115.32 100.00
individual item
Accounts receivable with bad
debt reserves accrued by 5290585812.37 99.91 285207634.51 5.39 5005378177.86
portfolios
Including: Account age
4274218293.9980.72285207634.516.673989010659.48
portfolio
Free-risk portfolios 1016367518.38 19.19 1016367518.38
Total 5295300927.69 100.00 289922749.83 5.48 5005378177.86
1) Accounts receivable with bad debt reserves accrued by individual item
Ending Balance
Name
Credit Loss Reason for
Book Balance Bad Debt Reserves
Rate (%) Accruing
It is difficult to
Company 1 4714882.36 4714882.36 100.00
recover
Total 4714882.36 4714882.36 100.00
(Continued)
Beginning Balance
Name
Credit Loss
Book Balance Bad Debt Reserves Reason for accruing
Rate (%)
It is difficult to
Company 1 4715115.32 4715115.32 100.00
recover
Total 4715115.32 4715115.32 100.00
2) Accounts receivable in the portfolio with bad debt reserves accrued by account age portfolio
Account Age Book Balance Bad Debt Reserves Credit Loss Rate (%)
<1 year 3287247219.13 164362360.95 5.00
12 years 49013594.09 9802718.82 20.00
23 years 57105362.09 28552681.05 50.00
>3 years 50610748.30 50610748.30 100.00
Total 3443976923.61 253328509.12 7.36
(3) Bad debt reserves accrued recovered or reversed in the current period
Accrual/Recovery/Reversal
Category Beginning Balance Ending Balance
in the Current Period
Accrual by individual item 4715115.32 -232.96 4714882.36
Account age portfolio 285207634.51 -31879125.39 253328509.12
Total 289922749.83 -31879358.35 258043391.48
[Note] There was no significant recovery or reversal of bad debt reserves during the current period.
(4) Accounts receivable written off in the current period
29 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
None.
(5) Accounts receivable of the top 5 debtors in terms of ending balance collected by debtors
The total amount of accounts receivable and contract assets of the top 5 debtors in terms of ending balance
collected by debtors is CNY3283478637.70 accounting for 64.56% of the ending balance of accounts
receivable and contract assets and the amount of bad debt reserves is CNY88122525.03.
2. Other receivables
Item Ending Balance Beginning Balance
Other receivables [Note 1] 10199939865.70 4860219830.31
Total 10199939865.70 4860219830.31
[Note 1] Other receivables in the table above refer to other receivables after the deduction of interest receivable
and dividends receivable.[Note 2] The Company has no beginning and ending balance of interests receivable and dividends receivable.
(1) Other receivables
1) Disclosure by account age
Account Age Ending Balance Beginning Balance
<1 year 6122500607.02 4863865345.66
12 years 4109389281.66 6358344.91
23 years 4200093.90 1650917.24
>3 years 4714891.92 4910948.86
Subtotal 10240804874.50 4876785556.67
Less: Bad debt reserves 40865008.80 16565726.36
Total 10199939865.70 4860219830.31
2) Classification by nature of payment
Nature of Payment Ending Book Balance Beginning Book Balance
Intercourse and free-risk funds 10219433060.30 4739303404.07
Asset transfer payments 21371814.20 137482152.60
Subtotal 10240804874.50 4876785556.67
Less: Bad debt reserves 40865008.80 16565726.36
Total 10199939865.70 4860219830.31
3) Disclosure by classification of bad debt reserves accrual methods
29 8Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Ending Balance
Book Balance Bad Debt Reserves
Category
Credit Book Value
Proportion
Amount Amount Loss
(%)
Rate (%)
Other accounts receivable with
bad debt reserves accrued by
individual item
Other accounts receivable with
bad debt reserves accrued by 10240804874.50 100.00 40865008.80 0.40 10199939865.70
portfolios
Including: Account age
616817914.456.0240865008.806.63575952905.65
portfolio
Free-risk portfolios 9623986960.05 93.98 9623986960.05
Total 10240804874.50 100.00 40865008.80 0.40 10199939865.70
(Continued)
Beginning Balance
Book Balance Bad Debt Reserves
Category
Credit Book Value
Proportion
Amount Amount Loss Rate
(%)
(%)
Other accounts receivable with
bad debt reserves accrued by
individual item
Other accounts receivable with
bad debt reserves accrued by 4876785556.67 100.00 16565726.36 0.34 4860219830.31
portfolios
Including: Account age
204073208.934.1816565726.368.12187507482.57
portfolio
Free-risk portfolios 4672712347.74 95.82 4672712347.74
Total 4876785556.67 100.00 16565726.36 0.34 4860219830.31
Other receivables in the portfolio with bad debt reserves accrued by account age portfolio
Ending Balance
Account Age
Book Balance Bad Debt Reserves Credit Loss Rate (%)
<1 year 583536771.97 29176838.60 5.00
12 years 24366156.66 4873231.33 20.00
23 years 4200093.90 2100046.95 50.00
>3 years 4714891.92 4714891.92 100.00
Total 616817914.45 40865008.80 6.63
4) Accrual of bad debt reserves
Phase I Phase II Phase III
Expected Credit Loss Expected Credit Loss
Bad debt reserves Expected Credit Total
for the Entire Duration for the Entire Duration
Losses in the Next 12
(no Credit Impairment (Credit Impairment
Months
Occurred) Occurred)
Beginning Balance 9557649.90 7008076.46 16565726.36
Accrual in the current
19619188.704680093.7424299282.44
period
29 9Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Phase I Phase II Phase III
Expected Credit Loss Expected Credit Loss
Bad debt reserves Expected Credit Total
for the Entire Duration for the Entire Duration
Losses in the Next 12
(no Credit Impairment (Credit Impairment
Months
Occurred) Occurred)
Ending Balance 29176838.60 11688170.20 40865008.80
5) Other receivables written off in the current period
None.
6) Other receivables of top 5 debtors in terms of ending balance collected by debtors
The total amount of other receivables of the top 5 debtors in terms of ending balance collected by debtors is
CNY9091732885.47 accounting for 88.78% of the total balance of ending balance of other receivables
and the amount of bad debt reserves is CNY27376757.86.
7) Other receivables due to centralized fund management
None.
30 0Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
3. Long-term equity investments
Ending Balance Beginning Balance
Item
Book Balance Impairment Reserve Book Value Book Balance Impairment Reserve Book Value
Investments to subsidiaries 27122807455.57 2844547150.91 24278260304.66 26797640354.59 26797640354.59
Investments to associates and
2767637625.111940009.352765697615.762949788729.341940009.352947848719.99
joint ventures
Total 29890445080.68 2846487160.26 27043957920.42 29747429083.93 1940009.35 29745489074.58
(1) Investments to subsidiaries
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Accrual of
Impairment Additional Decreased Impairment
Original Value Impairment Others Original Value
Reserve Investment Investment Reserve
Reserves
Gree (Chongqing) Electric
231564328.081115098.12232679426.20
Appliances Co. Ltd.Zhuhai Landa Compressor Co.
994974800.712892411.56997867212.27
Ltd.Zhuhai Gree Electrical Co. Ltd. 1691150140.13 179140.31 1691329280.44
Zhuhai Gree Xinyuan Electronics
159243423.75290851.41159534275.16
Co. Ltd.Zhuhai Kaibang Motor
93023993.10855445.3193879438.41
Manufacturing Co. Ltd.Gree (Hefei) Electric Appliances
511497592.85678317.81512175910.66
Co. Ltd.Gree (Zhongshan) Small Home
33256625.1636230.6233292855.78
Appliances Co. Ltd.Zhuhai Gree Group Finance
4440647651.9472461.254440720113.19
Company Limited
Gree (Brazil) Electric Appliances
661729033.65169076.25661898109.90
Co. Ltd.Gree Hong Kong Electric
472879.08472879.08
Appliances Sales Co. Ltd.
30 1Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Accrual of
Impairment Additional Decreased Impairment
Original Value Impairment Others Original Value
Reserve Investment Investment Reserve
Reserves
Shanghai Gree Air Conditioners
1800000.001800000.00
Sales Co. Ltd.Zhuhai Gree Daikin Precision
203077184.19233486.25203310670.44
Mold Co. Ltd.Zhuhai Gree Daikin Device Co.
283607005.72120768.75283727774.47
Ltd.Zhuhai Gree Green Refrigeration
Technology Research Center Co. 676040000.00 676040000.00
Ltd.Gree (Zhengzhou) Electric
727396742.44868774.16728265516.60
Appliances Co. Ltd.Gree (Wuhan) Electric Appliances
605958058.69723030.43606681089.12
Co. Ltd.Zhengzhou Gree Green Resources
50012929.3750012929.37
Recycling Co. Ltd.Hunan Green Resources Recycling
50122273.988051.2550130325.23
Co. Ltd.Wuhu Green Resources Recycling
50297048.0248307.5050345355.52
Co. Ltd.Gree (Shijiazhuang) Small Home
12382351.47173101.8812555453.35
Appliances Co. Ltd.Gree (Wuhan) Electric Appliances
24955302.26372370.3125327672.57
Co. Ltd.Shijiazhuang Green Resources
50012929.3750012929.37
Recycling Co. Ltd.Gree (Shijiazhuang) Electric
107006318.71974201.25107980519.96
Appliances Co. Ltd.Tianjin Green Renewable
50000000.0050000000.00
Resources Utilization Co. Ltd.Zhuhai Gree HVAC and
Refrigeration Equipment Co. 100000000.00 100000000.00
Ltd.Zhuhai Gree TOSOT Home
30000000.0030000000.00
Appliances Co. Ltd.Zhuhai EWPE Information
100000000.00100000000.00
Technology Inc.
30 2Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Accrual of
Impairment Additional Decreased Impairment
Original Value Impairment Others Original Value
Reserve Investment Investment Reserve
Reserves
Gree (Changsha) HVAC
56107558.76677311.4156784870.17
Equipment Co. Ltd.Gree TOSOT (Suqian) Home
142052626.25181153.12142233779.37
Appliances Co. Ltd.Wuhu Gree Precision
31102635.52144922.5031247558.02
Manufacturing Co. Ltd.Zhuhai Gree Intelligent Equipment
110951373.301047668.91111999042.21
Co. Ltd.Zhuhai Hengqin Gree Business
100375230.6392589.38100467820.01
Factoring Co. Ltd.Zhuhai Gree Precision Mold Co.
124475867.643028107.33127503974.97
Ltd.Gree HVAC and Refrigeration
Equipment (Wuhan) 100410577.46 144922.50 100555499.96
Co. Ltd.Zhuhai Gree Intelligent Equipment
50617948.42142909.6950760858.11
Technology Institute Co. Ltd.Gree Altairnano New Energy Inc. 2844386125.91 2844547150.91 161025.00 2844547150.91 2844547150.91
Zhuhai Gree New Material Co.
33261251.95570632.3433831884.29
Ltd.Gree (Wuhan) Precision Mold Co.
101713591.43181153.13101894744.56
Ltd.Zhuhai Gree Energy Environment
203840102.44201281.25204041383.69
Technology Co. Ltd.Gree (Hangzhou) Electric
551266639.4184538.12551351177.53
Appliances Co. Ltd.Gree Information Technology Co.
510000.00510000.00
Ltd. of Zhuhai
Gree (Wu'an) Precision Equipment
210588437.9656358.75210644796.71
Manufacturing Co. Ltd.Zhuhai Gree Transportation Co.
51507944.94173101.8851681046.82
Ltd.Gree (Nanjing) Electric
701572643.25197255.62701769898.87
Appliances Co. Ltd.Gree (Luoyang) Electric
51910237.23156999.3752067236.60
Appliances Co. Ltd.
30 3Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Accrual of
Impairment Additional Decreased Impairment
Original Value Impairment Others Original Value
Reserve Investment Investment Reserve
Reserves
Zhuhai Edgeless Integrated Circuit
50000000.0050000000.00
Co. Ltd.Zhuhai Lianyun Technology Co.
51992089.46402562.5052394651.96
Ltd.Gree (Chengdu) Electric
400555834.9516102.50400571937.45
Appliances Co. Ltd.Gree Material Supply Co. Ltd. of
150000000.00150000000.00
Zhuhai
Zhuhai Gree Green Control
550000000.00550000000.00
Technology Co. Ltd.Hefei Kinghome Electrical Co.
1250066296.07253614.381250319910.45
Ltd.Zhuhai Gree Mechanical and
153089029.68725618.91153814648.59
Electrical Engineering Co. Ltd.Gree Electric Appliances
(Luoyang) Washing Machine Co. 50000000.00 50000000.00
Ltd.Guochuang Energy Internet
Innovation Center (Guangdong) 75000000.00 75000000.00
Co. Ltd.Gree (Anji) Precision Mold Co.
116200000.006800000.00123000000.00
Ltd.Zhuhai Gree Green Resources
101791318.0354345.94101845663.97
Recycling Co. Ltd.Gree E-commerce Co. Ltd. 101819150.95 329094.84 102148245.79
Zhuhai Gejian Health Medical
20024835.8920024835.89
Technology Co. Ltd.Gree (Zhuhai Jinwan) Electric
1003421574.59513267.191003934841.78
Appliances Co. Ltd.Gree Chengdu Xinhui Medical
76303850.65309973.1276613823.77
Equipment Co. Ltd.SL Group Co. Ltd. 230223945.05 230223945.05
Gree (Ganzhou) Electric
100731158.37122781.56100853939.93
Appliances Co. Ltd.
30 4Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Accrual of
Impairment Additional Decreased Impairment
Original Value Impairment Others Original Value
Reserve Investment Investment Reserve
Reserves
Gree (Linyi) Electric Appliances
404446928.15196180000.00110704.69600737632.84
Co. Ltd.Gree (Zhuhai Hengqin)
1000000000.001000000000.00
Development Co. Ltd.Changsha Kinghome Electric
50424173.75104666.2550528840.00
Appliances Co. Ltd.Zhuhai Mingruida Supply Chain
35000000.0035000000.00
Technology Co. Ltd.Zhejiang DunAn Artificial
3236995422.293236995422.29
Environment Co. Ltd.Zhuhai Gree Electronic
101533335.29376395.94101909731.23
Components Co. Ltd.Zhuhai Gree Digital Technology
51142006.25281793.7551423800.00
Co. Ltd.Zhuhai Gree Prefabricated
Vegetable Equipment Technology 30000000.00 1533124.69 31533124.69
Development Co. Ltd.Zhuhai Hengqin Gree Materials
100000000.00100000000.00
Supply Co. Ltd.Total 26797640354.59 304513124.69 2844547150.91 20653976.29 27122807455.57 2844547150.91
[Note] Changes in others are the expenses allocated by the parent company for the subsidiaries involving the employee equity incentive — employee stock ownership
plan.
(2) Investments to associates and joint ventures
30 5Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Profits and
Declared
Losses on Adjustment of Other
Investee Distribution
Impairment Additional Investment Other Changes Impairment
Original Value of Cash Others Original Value
Reserve Investment/Disinvestment Recognized Comprehensive in Reserve
Dividends or
by Equity Income Equity
Profits
Method
Gree (Vietnam)
Electric 1940009.35 1940009.35 1940009.35 1940009.35
Appliances Inc.Outlook All -
35987610.4628931364.74
Media Co. Ltd. 7056245.72
Wuhan Digital
Design and
Manufacturing 15390790.44 345925.26 15736715.70
Innovation
Center Co. Ltd.Coresing
Semiconductor
21291586.95292445.47851343.6020732688.82
Technology Co.Ltd.Zhuhai Ronglin
Equity
Investment - -
2821794849.122647273059.03
Partnership 1042751.57 173479038.52
(Limited
Partnership)
Henan Yuze
Finance Leasing 52575995.19 1858410.38 1410618.10 53023787.47
Co. Ltd.Zhuhai Jiayao
Food
807887.83-630124.69-177763.14
Technology Co.Ltd.--
Total 2949788729.34 1940009.35 -630124.69 2261961.70 2767637625.11 1940009.35
5779979.32173479038.52
30 6Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
4. Operating revenues and costs
Amount Incurred in the Current Period Amount Incurred in the Previous Period
Item
Revenue Cost Revenue Cost
Main
120955394069.6281167248844.88129423899406.8485352146156.24
business
Other
4703383716.274436721904.305229739158.044854534375.52
business
Total 125658777785.89 85603970749.18 134653638564.88 90206680531.76
5. Income from investment
Item Amount Incurred in the Current Period Amount Incurred in the Previous Period
Dividend shares recognized for long-
term equity investment measured in the 2573612709.98 3818312481.64
cost method
Investment income obtained from
453971214.49280583705.07
trading financial assets
Investment income from derivative
200042366.84135154303.55
financial instruments
Long-term equity investment income
-5779979.32-6685965.10
measured by the equity method
Others -82849572.57 50600218.28
Total 3138996739.42 4277964743.44
XVII. Supplementary
1. Detailed statement of non-recurring profits and losses in the current period
Item Amount
Profits and losses from disposal of non-current assets
-96493268.06
(including the write-off of accrued asset impairment reserves)
Governmental subsidies included in the current profits and
losses (but excluding the governmental subsidies closely
relating to the normal business operations of the Company
1921209083.93
conforming to national policies and regulations and enjoyed
by a fixed quota or a fixed amount according to applicable
standards)
Profits and losses from changes in fair value arising from
financial assets and financial liabilities held by non-financial
enterprises and profits and losses from disposal of financial 465704232.40
assets and financial liabilities except for the effective hedging
business related to the Company's normal business operations
Reversal of impairment reserves for the receivables under
151629418.16
independent impairment test
Non-operating revenues and expenditures other than the above
19359525.22
items
Other profit and loss items conforming to the definition of non-
69040924.47
recurring profits and losses
Subtotal 2530449916.12
Less: Amount affecting income tax 368577572.53
30 7Gree Electric Appliances Inc. of Zhuhai Notes to 2024 Financial Statements
Item Amount
Amount affecting minority equity (after tax) 77062354.30
Total 2084809989.29
[Note] The "+" for the non-recurring profit and loss item means income or gain and "" means loss or expenditure.The recognition of the Company's non-recurring profit and loss items is implemented in accordance with the
provisions of the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public — Non-recurring Profit and Loss (Revised in 2023) (CSRC Announcement [2023] No.
65).
2. Return on equity and earnings per share
Earnings Per Share
Weighted Average
Profits for the Reporting Period
Return on Equity (%) Basic Earnings Per Diluted Earnings Per
Share Share
Net profit attributable to common shareholders of
25.425.835.83
the Company
Net profit deducting non-recurring profits and
23.785.455.45
losses attributable to common shareholders
Gree Electric Appliances Inc. of Zhuhai
2025/04/28
308
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