2025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Gree Electric Appliances Inc. of Zhuhai
2025 Annual Report
April 20262025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section I Important Notice Contents and Paraphrase
The Board of Directors and all directors 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 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 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 persons should therefore make
rational investment based on an awareness of risk factors attendant in
investment and understand the differences between plans forecasts and
commitments and note the investment risks.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 proposal (the total stock capital of
5601405741 shares excluding the 16267000 shares held in the repurchase
12025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.
22025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Contents
Section I Important Notice Contents and Paraphrase... 1
Section II Company Profile and Main Financial Indi... 6
Section III Management Discussion and Analysis ..... 11
Section IV Corporate Governance Environment and So.. 55
Section V Important Matters .........................77
Section VI Changes in Shares and Shareholders ...... 97
Section VII Bond Information ...................... 107
Section VIII Financial Statements ................. 108
32025 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 Wu Xiafei.(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.
42025 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
SZSE Means Shenzhen Stock Exchange
Report period Means January 1 2025 to December 31 2025
52025 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
519031
Address
Historical changes to the On August 26 2021 it was changed from Jinji West Road Qianshan Zhuhai City Guangdong
Company's registered address 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 Gao Peng Li Bingna
Jinji West Road Qianshan Zhuhai City Jinji West Road Qianshan Zhuhai City
Address
Guangdong Province Guangdong Province
Tel. 0756-8669232 0756-8669232
Fax 0756-8614998 0756-8614998
Email gree0651@cn.gree.com 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
Securities and Legal Affairs Department of the Company
inspection
62025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
IV. Alteration of registration
Unified Social Credit Code 91440400192548256N
Changes (if any) in the main business since 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 transfer. GREE
Changes (if any) in the controlling shareholders
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/17?18 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 Wu Xiafei
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/Decrea
Item 2025 2024 se Over the 2023
Previous Year
Operating revenue (CNY) 170447058533.57 189163654064.64 -9.89% 203979266387.09
Net profits attributable to
shareholders of the listed 29003103411.66 32184570372.28 -9.89% 29017387604.18
companies (CNY)
Net profits attributable to
shareholders of the listed 27706292436.94 30099760382.99 -7.95% 27565461117.79
companies less non-recurring
72025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Increase/Decrea
Item 2025 2024 se Over the 2023
Previous Year
profits and losses (CNY)
Net cash flows from operating
46383114754.0229369250570.6657.93%56398426354.17
activities (CNY)
Basic earnings per share
5.205.83-10.81%5.22
(CNY/share)
Diluted earnings per share
5.205.83-10.81%5.22
(CNY/share)
Decreased by
Weighted average ROE 20.30% 25.42% 5.12 percentage 26.53%
points
Increase/Decrea
Item se Over the EndAt the End of 2025 At the End of 2024 At the End of 2023
of Previous
Year
Total assets (CNY) 391371999819.49 368031704522.86 6.34% 368053902576.37
Net assets attributable to
shareholders of the listed 145929297804.02 137416898946.39 6.19% 116793716103.39
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 Company's audited total profit net profit and net profit after deducting non-recurring profits and losses for the report period
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 those 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 those 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
82025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Currency: CNY
Item Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating revenue 41506860074.79 55818065913.41 39855167155.65 33266965389.72
Net profits attributable to
5904459443.468507947670.387048929692.707541766605.12
shareholders of listed companies
Net profits attributable to
shareholders of listed companies
5717342878.898229066282.636638439722.957121443552.47
after deduction of non-recurring
profits and losses
Net cash flows from operating
11001218583.0117327343604.1917399821498.00654731068.82
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 2025 Amount in 2024 Amount in 2023
Profits and losses from disposal of non-current assets
(including the write-off of accrued asset impairment 34701819.37 -96493268.06 324413866.77
reserves)
Governmental subsidies included in the current profits and
losses (excluding the governmental subsidies closely
relating to the normal business operations of the Company
960981376.601921209083.93784275516.36
conforming to 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 disposal of
701577328.10465704232.40553697207.25
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 under
8689545.95151629418.1672395388.85
independent impairment test
Non-operating revenues and expenditures other than the
-24078549.0419359525.22-21226697.92
above items
Other profit and loss items conforming to the definition of
31293265.0169040924.4740553390.36
non-recurring profits and losses
Less: Amount affecting income tax 263250661.17 368577572.53 301917937.60
Amount affecting minority equity (after tax) 153103150.10 77062354.30 264247.68
Total 1296810974.72 2084809989.29 1451926486.39
Details of other profit and loss items conforming to the definition of non-recurring profits and losses:
□Applicable □ Not applicable
Item Amount Involved (CNY) Reason
Other profit and loss items conforming to the 31293265.01Commissions refund of individual income tax and tax
92025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
definition of non-recurring profits and losses incentives for key groups
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.
102025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section III Management Discussion and Analysis
I. Major businesses of the Company during the report period
The Company is a diversified and technological global industrial group with brands including GREE TOSOT KINGHOME
LANDA Kaibang and Xinyuan. Its industry covers both consumption and industrial fields. In the consumption field it covers
residential air conditioners HVAC refrigerators washing machines water heaters kitchen appliances and environmental appliances
providing full-category smart home appliances and smart building management system solutions for residential and commercial
scenarios. In the industrial field it focuses on CNC machine tools industrial robots precision molds motors compressors
capacitors semiconductor devices precision casting equipment basic materials industrial energy storage etc. building an
independent and controllable industrial chain system to facilitate the transformation and upgrading of China's manufacturing industry.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 with core technologies and high-quality services.In the face of a complex and ever-changing market environment the Company remained committed to the real economy developed
its self-owned brands adhered to independent innovation continuously deepened channel development vertically explored the moat
of technology and quality and horizontally expanded into highly synergistic tracks for sustainable development. In 2025 the
Company achieved a total operating revenue of CNY171118 million a year-on-year decrease of 9.96%; the net profit attributable to
shareholders of the listed company was CNY29003 million a year-on-year decrease of 9.89%; and the net cash flow from operating
activities was CNY46383 million a year-on-year increase of 57.93%.During the report period despite the complex and ever-changing market environment and pressures on industry growth the
Company's core products maintained a stable market position with its market share in several product categories leading the industry.GREE central air conditioners continued to demonstrate industry leadership holding the top market share in the industry. According
to the 2025 Report on the Development of China's Central Air Conditioner Industry released in the ihos's HVAC and Heat Pump
magazine GREE continued to lead with a market share of over 15% maintaining the top market share in China's central air
conditioner market for 14 consecutive years.The Company adhered to the core strengths of its residential air conditioners took multiple measures to stabilize its market share
and achieved notable results in its online presence ensuring steady operation of its core business. According to data from All View
Cloud (AVC) GREE's share of online retail sales in the residential air conditioner market in 2025 was 24.31% ranking first in the
industry.In the future steadfastly adhering to its corporate mission of "carrying forward the industrial spirit mastering core
technologies pursuing perfect quality providing first-class services and making the world fall in love with made
in China" the Company will focus on the consumption and industrial fields continuously optimize its business
layout and enhance its core competitiveness to strive toward the corporate vision of "building a world-class
enterprise and achieving a century-old GREE brand" create higher value for shareholders and contribute to the
high-quality development of the industry.II. Industry situation of the Company during the report period
1. Consumption field
In 2025 the home appliance industry faced overall pressure. China's domestic market showed a trend of high in the first half and low
in the second half. According to the data released by AVC in 2025 the retail market size of home appliances (excluding 3C products)
in China was CNY893.1 billion down 4.3% year-on-year. In overseas markets influenced by multiple factors such as weak global
economic recovery and U.S. tariff policies there was a year-on-year decline. According to data from the General Administration of
112025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Customs of the People's Republic of China the export value of Chinese home appliances in 2025 reached USD96233 million a
year-on-year decrease of 3.9%.According to data from ChinaIOL.com the total sales volume of China's residential air conditioner industry in 2025 was 198.39
million units a year-on-year decrease of 1.2%. Among them sales volume in the domestic market was 105.21 million units a slight
year-on-year increase of 0.7% with slowing growth; sales volume in the export market was 93.18 million units a year-on-year
decrease of 3.3% primarily due to factors such as a high base in the same period of the previous year U.S. tariff policies and
softening demand in overseas markets.According to data from ChinaIOL.com the sales volume of China's commercial air conditioner industry in 2025 was CNY138680
million a year-on-year decrease of 4.1%. Among them the sales volume in the domestic market was CNY112550 million a year-
on-year decrease of 7.4% mainly due to insufficient demand for traditional projects and intensified price competition; the sales
volume in the export market was CNY26140 million a year-on-year increase of 12.7% primarily driven by global data center
industry demand expansion accelerated deployment by enterprises in overseas emerging markets and upgraded product performance
for export. The overseas market scale grew steadily.
2. Industrial field
According to data from the National Bureau of Statistics industrial enterprises above the designated size nationwide achieved
operating revenue of CNY139.2 trillion in 2025 a year-on-year increase of 1.1%; achieved total profit of CNY7398.2 billion a year-
on-year increase of 0.6% indicating steady development of the industrial economy.In 2025 the core air conditioner components industry faced growth pressure due to the double impact of weak downstream OEM
market demand and high raw material prices. According to data from ChinaIOL.com the sales volume of rotary compressors in
China in 2025 was 289 million units a year-on-year decrease of 2.8%; the sales volume of air conditioner motors was 493 million
units a slight year-on-year increase of 0.08% with the domestic market down 0.8% and the export market up 3.9%. Meanwhile
prices of major raw materials such as copper and refrigerants remained at historical highs with cost pressures continuing to be
transmitted to the midstream and downstream of the industrial chain.According to data from the National Bureau of Statistics the value added of China's equipment manufacturing industry increased by
9.2% year-on-year in 2025 with continuous industrial structure optimization. Based on data from INSIGHT AND INFO the market
size of China's intelligent manufacturing equipment in 2025 was CNY4380 billion a year-on-year increase of 18.6%. According to
data from Zhongshang Industry Research Institute the scale of China's CNC machine tool industry in 2025 exceeded CNY450
billion a year-on-year increase of approximately 4.7%. In September 2025 six ministries and commissions including the Ministry of
Industry and Information Technology (MIIT) jointly issued the Work Plan for Stable Growth of the Machinery Industry (2025–
2026) which clearly states the need to "focus on developing intelligent equipment and systems implement innovation and
development projects for intelligent equipment and promote deep integration of emerging technologies such as artificial intelligence
with equipment".According to the China Resources Recycling Industry Development Report (2026) published by the China National Resources
Recycling Association China's resources recycling industry maintained a stable growth trend in 2025 with total collection volume of
11 major categories reaching 417 million tons a year-on-year increase of 4.1% and total collection value reaching CNY1390 billion
a year-on-year increase of 3.8%. The report points out that digital methods such as "Internet + recycling" and smart devices were
widely used and leading enterprises and central state-owned enterprises accelerated their deployment driving the industry's
transformation towards digitalization standardization and intensification. At the same time the large-scale and intelligent equipment
for scrap steel processing continued to improve home appliance recycling achieved online-offline coordination and full-process
traceability and the green recycling system was further enhanced.III. Core competence analysis
1. A world-renowned brand with continuously increasing brand value
122025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
GREE is a diversified technological global industrial group integrating R&D production sales and service. The Company has
successively won numerous honors such as "China's World Famous Brand" "Most Competitive Brand in the Market" "National
Quality Award" "Enterprise Exempted from Export Inspection" "China Brand Innovation Award" "Top 100 Scientific and
Technological Enterprises in China's Light Industry" and "Top 500 Creditworthy Enterprises in China".During the report period the Company was again listed on Forbes Global 2000 ranking 346th on the list; and won honors such as
"2025 Chinese Annual Influential Brand Among Listed Companies" "2025 Chinese Annual Brand Going Global Benchmark Among
Listed Companies" and "2025 EPR Responsibility Fulfillment Innovation Pioneer Enterprise". According to the "2025 China Brand
Value Evaluation Information" released by the China Council for Brand Development and the China Appraisal Society GREE's
brand value reached CNY202140 million ranking second in the light industry category and first in the home appliance industry
with its comprehensive brand strength and industry-leading position continuously consolidated.
2. An excellent research and development system consistently demonstrating strong science and technology innovation
capabilities
Adhering to the principles of "independent research and development of core technologies" and "investment as needed without an
upper limit" the Company has built a multi-level research and development system based on national scientific research platforms.The Company has the world's largest air conditioner R&D center. It has established 1 academician workstation 16
institutes 152 research institutions 1411 laboratories as well as 1 national engineering technology research
center 1 State-level Industrial Design Center 1 State Recognized Enterprise Technology Center and 1 Robotics
Engineering Technology R&D Center. In addition it has also become a research and evaluation base for
refrigeration equipment of the National Notification & Enquiry Center and a national standard verification point
(for energy efficiency of refrigeration equipment). The Company continuously improves its technology innovation
system that is "enterprise-centered market-oriented and combined industry academia and research".As of the end of the report period the Company has applied for 138935 patents including 76928 invention patents and has
obtained 32317 invention patent grants making it the only home appliance enterprise to rank among the top ten in China's invention
patent grants for ten consecutive years; has possessed 50 "world-leading" technologies; has won 2 national technological invention
awards 2 national science and technology progress awards 3 gold awards for inventions 4 gold awards for appearance 16 gold
awards of International Exhibition of Inventions of Geneva and 13 gold awards of iENA. The Company's steady increase in the
number and quality of patents with abundant scientific and technological achievements fully demonstrates its industry-leading
invention and creation capabilities and continuously solid research and development strength to the world.As of the end of the report period the Company has led or participated in the development of 942 international and national
standards including 62 international or foreign standards which comprise 30 ISO/IEC standards for photovoltaic air
conditioners compressors and other products driving China's transition from "technology following" to "standard leading" and
achieving breakthroughs in standard-setting influence in key fields.
3. A leading perfect quality assurance model (PQAM) to continuously enhance product competitiveness
Adhering to the quality policy of "pursuing perfect quality establishing an international brand and building a century-old enterprise"
the Company consistently prioritizes quality and deepens the promotion of the PQAM to achieve strict quality control throughout the
entire process of design procurement production and service. It has also perfected the GREE characteristic "perfect quality"
management system centered on the "Five Steps of Quality Prevention" and "D-CTFP Quality Technology Innovation Cycle
Methodology". In March 2021 the Company took the lead in implementing a "ten-year free repair" policy for residential air
conditioners setting the longest repair service commitment in China's residential air conditioner industry and leading the upgrading
of service standards in the industry.As of the end of the report period the Company has received the two highest honors from the China Association for Quality(CAQ)
— "AAA Enterprise Market Quality Credit" and "Five-star Customer Satisfaction Benchmark Enterprise" — for seven consecutive
years and has topped the China National Institute of Standardization's customer satisfaction survey for air conditioners for 16
132025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
consecutive years reflecting dual affirmation from market recognition and authoritative industry certification. The Company's D-
CTFP Quality Technology Innovation Cycle Methodology was elevated to the GB/T 38356-2019 Quality management — Guideline
for customer-oriented innovation cycle. The book Pursuing Perfection — Innovation & Progress: GREE Quality Model co-authored
with South China University of Technology was selected for the "Best Quality Practices in China in the 21st Century" series
becoming a model of quality practice in China's manufacturing industry.
4. An independently controlled new retail system with continuously upgraded digital marketing
The Company is committed to building an independent controllable mutually beneficial and win-win channel system that integrates
online and offline channels continuously deepening innovation in its new retail marketing system and creating a nationwide
efficiently coordinated multi-dimensional sales and service network.In terms of offline channels the Company has built a physical network covering 30 regional sales companies over 20000 sales
stores and over 30000 professional service outlets. It has also upgraded or renovated over 1000 "Dong Mingzhu Healthy Home"
offline stores comprehensively showcasing whole-house healthy appliances such as refrigerators washing machines and water
purifiers through scenario-based experiences data visualization and smart interactions and providing consumers with one-stop
healthy home solutions.In terms of online channels relying on self-built platforms official flagship stores on third-party e-commerce platforms and new
media matrices such as WeChat and Douyin (TikTok) the Company has achieved multi-platform wide-reaching digital marketing
coverage. In July 2025 the Company initiated a new digital marketing model for its commercial air conditioner business building a
full-link full-element full-scenario digital marketing system accumulating core channel assets enhancing customer stickiness and
establishing an efficient digital management system for commercial channels. At the same time relying on its nationwide production
bases the Company has built a "base warehouse + regional warehouse" intelligent tiered warehousing network achieving scientific
stocking and efficient response and enhancing customer experience.
5. A diverse and rich product matrix with technology innovation driving product upgrades
The Company's products cover a full range of home appliances including residential air conditioners HVAC refrigerators washing
machines water heaters kitchen appliances and environmental appliances fully meeting consumers' comprehensive needs for a
high-quality life.Centered on user needs and guided by the product concept of "energy efficiency comfort health and intelligence" the Company
continuously promotes product iteration and upgrades enriches its product matrix and expands application scenarios to build a full-
scenario product ecosystem. In the residential air conditioner field the Company has upgraded the classic "Silent King" IP launching
the "Ai Silent King" wall-mounted air conditioner delving deep into core dynamic energy-saving technologies to precisely meet
market demand for high-efficiency and energy-saving products under the "dual carbon" goals which has been well-received in the
market. It also continues to build the characteristic "Gentle Air Comfort" IP focusing on users' core needs for "comfort health and
no direct airflow" forming comprehensive product competitiveness combining "air supply technology + health functions". In the
central air conditioner field with smart energy-saving technology as the core combining full DC inverter drive intelligent
temperature control algorithms and high-efficiency heat exchange systems the Company has launched the "Gentle Air Comfort"
anti-direct-blowing central air conditioner featuring reversible air supply technology and the "Ruifeng" series constant temperature
dehumidification central air conditioner using heat exchanger partitioned cooling and heating switching technology. In the home
appliance field the Company has deployed diverse product categories such as refrigerators washing machines kitchen appliances
water heaters and environmental appliances successively launching new products such as the "Xuelong" series refrigerator the
"Ruyue" series washing machine the GREE "Fengshen X1" range hood the "Shunmuwang" gas water heater the "Jingpai"
dishwasher and the "Runzhilian" air source water heater achieving multi-scenario coverage.
6. A scientific production capacity layout with continuous breakthroughs in green and intelligent manufacturing
The Company scientifically plans its production capacity layout based on the demand characteristics of each product market and the
differences in regional production factor endowments. At present the Company has established 77 production bases in multiple
142025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
provinces and cities such as Guangdong Chongqing and Anhui as well as in countries like Brazil covering air conditioners home
appliances industrial products and others forming an industrial agglomeration and highly coordinated development of upstream and
downstream industrial chains. Guided by the principles of serving the market global planning local production and production area
coordination the Company optimizes the capacity allocation of each base to achieve balanced production and maximize
comprehensive benefits. At the same time the Company has established 6 resource recycling bases building an entire closed-loop
industrial chain from upstream production to downstream recycling promoting green circular and sustainable development.Focusing on improving the efficiency of the entire production process and deeply integrating advanced technologies such as
industrial robots CNC machine tools and 5G the Company strives to build industry-leading exemplary smart factories. As of the
end of the report period the Company owns 1 pilot-level smart factory 1 excellence-level smart factory 22 green factories
(including 10 national-level green factories 7 provincial-level green factories and 5 municipal-level green factories) 4 5G factories
and 6 national-level green supply chain enterprises. Relying on the "full-value-chain GREE collaborative house — smart air
conditioner factory" project Gree Electric Appliances (Zhuhai Jinwan) Co. Ltd. became the only enterprise in Guangdong Province
selected for the national first batch of "pilot-level" smart factories continuously playing an exemplary and leading role and enabling
quality improvement and efficiency enhancement in manufacturing processes.The precise and efficient production capacity layout and leading intelligent manufacturing continuously consolidate the Company's
manufacturing and cost advantages ensure rapid response to market demand and provide consumers with high-quality products and
living experiences.
7. Continuous breakthroughs in independent R&D and manufacturing of core components leading the industry in
comprehensive product competitiveness
The Company has complete independent R&D and manufacturing capabilities for core components with subsidiaries such as Landa
Compressor Kaibang Motor Xinyuan Electronic GREE Electric and GREE Precision Mold. Each entity maintains an industry-
leading position in terms of production capacity scale core technology and quality control. The Company's core components
business segment has successively won honors and qualifications such as the "National Quality Award" "National Quality
Benchmark" "Top 100 Enterprise in China's Electronic Components Industry" "National Intellectual Property Advantage
Enterprise" "Guangdong Famous Brand Product" and "Guangdong Enterprise Technology Center". It has also established key Test
Center and R&D platforms including the "National CNAS Test 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" continuously consolidating the foundation for underlying technology
R&D.The Company's independently developed three-cylinder compressor technology was appraised by the Chinese Association of
Refrigeration as "World’s First". The new-generation dual-five-axis gantry machining center won the gold award at the 50th
International Exhibition of Inventions of Geneva for its technical advancement. According to data from ChinaIOL.com in 2025 the
market share of DunAn Environment's cut-off valve ranked first in the world and that of the four-way valve and electronic expansion
valve ranked second in the world respectively.The comprehensive independent R&D and manufacturing system for core components and the leading manufacturing strength lay a
solid foundation for the Company's long-term stable operations continuously consolidating its industry competitive advantages and
leadership position across all product categories.
8. Continuous improvement of the cost management and control system consistently enhancing product competitiveness
Adhering to a customer demand-oriented approach and relying on comprehensive value chain management the Company
implements precise cost analysis and operational optimization across the entire process of R&D procurement production and sales
forming a cost management and control culture involving all employees the entire process and all elements thereby building a
sustainable cost barrier.Supply chain integration promotes cost reduction on a large scale. The Company based on a centralized procurement policy
152025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
continuously expands its upstream and downstream industrial chain layout establishes deep strategic partnerships with industry-
leading enterprises integrates high-quality supply chain resources and enhances bargaining power and resource utilization efficiency
achieving multi-party collaborative cost reduction. At the same time leveraging the advantages of independent R&D and
manufacturing of core components key components such as compressors motors capacitors chips and molds are independently
and controllably managed throughout the entire chain reducing outsourcing costs and strengthening cost advantages.Digital technology drives systematic cost reduction. The Company accelerates the promotion of full-link digital control deeply
integrating technologies such as 5G and Industrial Internet into R&D procurement production inventory and sales achieving
lifecycle lean management and efficiency improvement. Gree Electric Appliances (Zhuhai Jinwan) Co. Ltd. as the only enterprise in
Guangdong Province selected for the national first batch of "pilot-level" smart factories has achieved a digital coverage of 100% an
overall automation rate of over 80% and a production efficiency improvement of 200%. Multiple processes in the general assembly
workshop (integrating intelligent manufacturing) have realized unmanned operation and product quality inspection has
comprehensively introduced AI detection effectively avoiding manual omissions and misjudgments and significantly reducing labor
and quality costs.Continuous innovation leads to technology-driven cost reduction. Through product structure optimization process innovation
material commonization and lean model development the Company continuously improves material utilization and production
efficiency accelerates the process of material commonization achieves sustained cost reduction and consolidates its industry-
leading profitability and product competitiveness.
9. A well-established independent talent cultivation system ensuring a high-quality talent supply
Based on a long-term development strategy the Company adheres to the concept of independent talent cultivation. Leveraging a
profound cultural heritage and accumulated management experience it has established independent talent acquisition channels
improved full-cycle training and development mechanisms and built a multi-level comprehensive incentive system promoting the
mutual growth and development of employees and the enterprise.The Company continuously improves the integrated independent talent cultivation system of "selection training utilization and
retention" relying on multiple measures such as employer branding university-enterprise joint education customized specialized
courses and regular campus recruitment to precisely attract high-quality professionals who identify with the corporate culture. At
the same time using skill master studios model worker innovation studios and other platforms as carriers the Company strengthens
skill cultivation and craftsmanship inheritance building a high-quality high-skilled composite talent team.As of the end of the report period the Company's high-end talent echelon has continued to grow with 2 leading technology
innovation talents under the national "Ten Thousand Talents Program" 4 experts receiving the special government allowance of the
State Council 1 national leading intellectual property talent 1 national technical expert 2 national model workers 3 recipients of the
national "May 1 Labor Medal" and nearly 1000 provincial and municipal high-end talents including provincial technical experts and
Zhuhai high-level talents. The robust talent pool and comprehensive cultivation system lay a solid talent foundation for the
Company's long-term high-quality development.IV. Analysis of main business
1. Overview
In the face of a complex and ever-changing market environment the Company remained committed to the real economy developed
its self-owned brands adhered to independent innovation continuously deepened channel development vertically explored the moat
of technology and quality and horizontally expanded into highly synergistic tracks for sustainable development.
(1) Focusing on user needs iterating and innovating full-category home appliances
1) Residential air conditioner segment
Centered on user needs and guided by the product concept of "energy efficiency comfort health and intelligence" the Company
continuously promotes product iteration and upgrades enriches its product matrix and expands application scenarios.
162025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ai Silent King
As a classic product of the Company the GREE "Silent King" series air conditioners have long served millions of households in
China with the core promise of "cool quiet and power-saving." As of now the cumulative sales of the "Silent King" series have
exceeded 20 million units making it a trustworthy air conditioner for users. During the report period focusing on the deep
integration of artificial intelligence technology and home appliance manufacturing the Company achieved an intelligent upgrade
based on the classic genes of the "Silent King" series launching the new flagship product "Ai Silent King" wall-mounted air
conditioner. The product is equipped with GREE's independently developed energy-saving chip and relying on dynamic energy-
saving algorithms it saves power as soon as it is turned on without manual setting of power-saving mode achieving improved annual
dynamic energy efficiency and energy-saving efficiency. It is also equipped with a moving sub-board air deflector system achieving
no direct cold air blowing and uniform hot air delivery while supporting improved cooling capacity under high-temperature
conditions of 67°C. The "Ai Silent King" has received positive market response since its launch.Ai Silent King
Cooler quieter more
power-saving
Exceptional with Ai
Ai dynamic 67°C ultra-high Multi-ion Operation as low
energy saving temperature sterilization as 16 dB
cooling
Note: Page data is sourced from Gree laboratory test reports which
may vary under different testing environments and conditions."Silent King+" floor-standing air conditioner
During the report period the Company launched the "Silent King+" floor-standing air conditioner to address the pain points of
traditional air conditioners such as discomfort from direct cold air blowing and susceptibility to shut down under high temperatures.The product features distributed air supply and high-efficiency double-suction bidirectional centrifugal fan technology achieving
shower-type cooling and carpet-type heating. Equipped with GREE's second-generation cold-resistant outdoor unit and leveraging
the large-displacement compressor and refrigerant flow path design it enhances heat dissipation and operational stability under
extreme conditions and provides stable cooling with no capacity decay in high-temperature environments of 67°C. In July 2025 the
Company conducted a limit test challenge with a "Silent King+" air conditioner in the Flaming Mountains of Turpan. In an extreme
environment with surface temperatures as high as 75°C it completed 48 hours of uninterrupted live-streamed operation
demonstrating the product's extreme environmental adaptability and reliable quality through rigorous field-testing fully showcasing
the Company's technological leadership in high-temperature cooling.In addition during the report period the Company continuously focused on user needs and scenario-based applications launching a
number of differentiated and high-value innovative products. The SilenzX air conditioner addresses users' needs for low-noise
operation high efficiency and energy savings and a quiet experience through the independently developed "research and application
of active collaborative noise reduction technology in silent air conditioners." The noise reduction technology and the SilenzX series
silent air conditioner with their cutting-edge technological strength and innovation advantages stood out in global achievements and
won the gold award at the International Exhibition of Inventions of Geneva. The residential photovoltaic air conditioner deeply
172025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
integrates photovoltaic power generation and HVAC technologies incorporating an integrated photovoltaic energy storage system
solution achieving efficient clean energy utilization and low-carbon energy consumption relying on intelligent control algorithms
and building a green and low-carbon smart home application scenario. The Yueshengdian series air conditioner through air duct
structure optimization system pipeline upgrades and overall unit architecture iteration comprehensively enhances circulating air
supply capability and overall energy-saving levels while simultaneously optimizing appearance and smart function configurations
continuously improving the comprehensive competitiveness and market adaptability of the main household air conditioners.
2) HVAC segment
Focusing on the core field of HVAC the Company has laid out 13 series of core equipment including centrifugal chillers VRF
systems screw chillers modular units packaged units residential units and precision air conditioners continuously advancing
technology iteration and performance upgrades. It covers diverse application scenarios such as residential heating commercial
cooling industrial constant temperature and refrigeration & freezing efficiently adapting to various major project construction needs
and providing professional and stable solutions for users in different fields.Residential central air conditioner
Star 5 AI residential central air conditioner — Equipped with independently developed temperature-humidity-airflow three-
dimensional somatosensory comfort technology it achieves comfort optimization stepless airflow control and high-precision
temperature control within 0.1°C optimizing the whole-house living experience. Relying on dynamic energy-saving technology its
APF energy efficiency exceeds China's tier 1 energy efficiency standard. It is equipped with a new independently developed high-
efficiency vapor injection compressor achieving reliable operation across a wide temperature range of -35°C to 66°C. Paired with a
new-generation intelligent constant-warmth defrosting technology it efficiently balances defrosting and heating performance
bringing home users an efficient energy-saving healthy and comfortable smart living experience.Gree AI Residential Central
Air Conditioner
Dynamic balance
More energy-saving
more stable more
comfortable
"Gentle Air Comfort" anti-direct blowing central air conditioner — equipped with independently developed core reversible air
supply technology and featuring a dedicated fan air supply/return switching mechanism and adaptive switching filter it
innovatively achieves differentiated air supply in cooling and heating modes effectively solving the problems of insufficient comfort
and energy waste associated with the fixed lateral air supply of traditional central air conditioners. 158 Chinese invention patents
have been applied for this technology and the technological achievement has been appraised by the expert committee of the China
Machinery Industry Federation as internationally leading.During the report period the Company launched the “Gentle Air Comfort” central air conditioner series complementing the existingresidential wall-mounted air conditioners and anti-direct blowing series floor-standing air conditioners building a complete “Gentle
182025 Annual Report of Gree Electric Appliances Inc. of ZhuhaiAir Comfort” product matrix and enabling the “Gentle Air Comfort” technology system to achieve full-scenario coverage further
meeting the comfort needs of different user groups.During the report period the Company continuously enriched its comfortable home and high-efficiency energy-saving HVAC
product matrix: the Ruifeng series constant temperature dehumidification central air conditioner adopts innovative heat
exchanger partitioned cooling and heating switching technology integrating constant temperature dehumidification and high-
efficiency cooling/heating functions to achieve a comfortable experience of dehumidification without temperature reduction. Paired
with a high-precision humidity sensor it enables intelligent temperature-humidity linkage control meeting the dehumidification
needs of whole-house spaces and continuous operation operating quietly and leading the upgrade of central air conditioner
dehumidification technology. The kitchen-specific embedded central air conditioner features an embedded single-sided air outlet
design adapting to mainstream kitchen decoration styles and is easy to install. Equipped with high-efficiency UV-C sterilization
technology and independently developed antibacterial and anti-mold materials it creates a healthy and clean cooking environment.Commercial central air conditioner
During the report period focusing on the core pain points and differentiated market needs of various commercial scenarios the
Company continuously launched several new commercial central air conditioners. Relying on continuous breakthroughs in core
technologies and customized product design capabilities the Company provided high-efficiency low-carbon well-adapted
systematic HVAC solutions for diverse application scenarios such as government procurement data centers and small- and medium-
sized commercial spaces.GREE new-generation "air-fluid co-source" maglev chiller for data centers — In response to the high-density computing power
demands of data centers brought by the development of artificial intelligence and large model technologies the Company launched
the new-generation "air-fluid co-source" maglev chiller for data centers. Featuring core technologies such as an integrated maglev
compressor high-efficiency plate heat exchanger and "air-fluid co-source" liquid cooling system this product boasts outstanding
advantages including high energy efficiency compact modular design efficient utilization of free cooling sources and intelligent
operation & maintenance effectively addressing pain points of traditional air-cooling solutions such as low energy efficiency
insufficient cooling capacity and long deployment cycles helping data centers achieve high-efficiency and energy-saving operation
goals.Gree New-generation All In One
Air-fluid Co-source Maglev Chiller
for Data Centers
Oil-free Full-domain Cooling capacity
operation free cooling per unit
GREE Taishan Smart Building Platform — During the report period the Company launched the Taishan Smart Building Platform
achieving a transformation from a central air conditioner supplier to a building intelligent control solution provider. This platform is
equipped with the dedicated GMOS Taishan operating system for the building electromechanical field featuring "arbitrary
connectivity zero code easy replication and full process" as its core characteristics. It deeply integrates hardware and software
192025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
technologies building a comprehensive solution covering core HVAC scenarios such as VRF intelligent control high-efficiency
heating and cooling stations and high-efficiency machine rooms. At present the Taishan Smart Building Platform has been
successfully extended to multiple fields such as smart office buildings smart factories and smart wine-making with a cumulative
total of over 5000 project applications forming a full-domain standard system from hardware and software to building intelligent
control systems. The platform has obtained certifications including BTL CE FCC UL ETL and open sharing characteristics for
building intelligent control and has won industry honors such as the first prize for quality technology from the China Association for
Quality effectively promoting the transformation and upgrading of the construction industry towards digital intelligence green
development and high efficiency.GREE Taishan Smart Building Platform
Full-stack independent R&D
Heating heat pump
The Company following the two core R&D directions of full variable frequency and high-temperature heat pumps broke through
operational bottlenecks in extreme low-temperature and high-temperature conditions achieving stable and efficient operation of units
across an ultra-wide temperature range. In 2025 the Company comprehensively upgraded the performance and operational reliability
of its heating heat pumps and iteratively launched new-generation series such as Huofenghuang Rezun and Hongbing covering
diverse application scenarios including residential heating commercial heating and central hot water to meet the integrated and
diversified usage demands of the market.New-generation Huofenghuang residential integrated heating and cooling unit — Equipped with the core technology of a two-
stage vapor injection heat pump compressor it stably produces 60°C high-temperature hot water in -25°C extremely cold
environments and achieves efficient and stable heating under -20°C low-temperature conditions effectively solving the winter
heating pain points in severely cold regions. Relying on its leading innovative technology the product has successively won multiple
authoritative honors including the gold award at the International Exhibition of Inventions of Geneva the first prize for
technological invention of Guangdong Province and the patent gold award.Rezun series variable frequency commercial integrated heating and cooling unit — Focusing on the rigid demand of the "coal-
to-electricity" clean energy central heating market in northern China the Company launched the Rezun series variable frequency
commercial integrated heating and cooling unit. Featuring core technologies such as low-temperature heating enhanced vapor
injection DC inverter drive liquid cooling and precise staged vapor injection control the product breaks through operational
limitations under extreme conditions. It provides stable heating in environments ranging from -35°C to 40°C and reliable cooling in
environments ranging from -15°C to 52°C achieving ultra-tier 1 energy efficiency standards for both heating and cooling operating
conditions. The equipment supports a flexible combination of up to 16 modules and matches the differentiated load requirements of
various projects so it is widely applicable to heating and cooling applications in regional central heating heating renovation of old
202025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
residential communities and various commercial scenarios such as factories hostels and hotels.Gree Rezun Series
Commercial Integrated Heating and
Cooling Unit
Powerful heating at High-temperature
ultra-low heating hot water
temperatures supply
Commercial freezer and refrigerator
The Company's commercial freezer and refrigerator have been widely used in fields such as cold storage food processing and
pharmaceutical distribution. Leveraging its core advantages of high efficiency energy savings stability and reliability it provides
customized refrigeration solutions adaptable to all scenarios. Relying on continuous technological innovation and product matrix
optimization in 2025 the Company launched the hot gas defrost refrigeration unit two-stage screw quick-freezing unit and
dedicated compressor for -80°C ultra-low temperature freeze-drying equipment further perfecting its tiered product layout and
contributing to the high-quality development of the cold chain industry.Variable frequency hot gas defrost ceiling-mounted integrated unit — The product adopts an indoor ceiling-mounted return and
supply air design significantly reducing space occupation inside the warehouse and improving storage space utilization. It is
precisely adapted to scenarios such as chain restaurants central kitchens canteen cold storage and cool storage of large pharmacy
chains and is particularly suitable for cooling spaces with limited floor space and weak engineering maintenance capabilities. The
unit is equipped with full DC inverter technology and intelligent hot gas defrost technology reducing power consumption by half
compared to traditional equipment and achieving temperature control accuracy of ±0.5°C. Through energy-saving and intelligent
technological innovation it leads the efficient upgrading of cold chain equipment.
3) Home appliance segment
Centered on the product strategy of "GREE Making Better Electric Appliances" the Company has deployed the full categories of
home appliances including refrigerators washing machines kitchen appliances and environmental appliances. With health
intelligence and personalization as its development priorities the Company accelerated the deployment of appliance suites and
optimized whole-house scenario adaptability to comprehensively meet consumers' diverse and high-quality home living needs.Refrigerator and washing machine
Xuelong series built-in refrigerator — Addressing pain points of traditional built-in refrigerators such as installation constraints
poor heat dissipation and insufficient freshness preservation the Company launched the Xuelong series flush-inset refrigerator. In
terms of core configuration the refrigerator is equipped with an ultra-wide-frequency compressor achieving -38°C ultra-low
temperature deep freezing and effectively locking in the nutrition and original taste of ingredients. It adopts a four-door four-
temperature-zone architecture supporting the wide-range precise temperature adjustment from 5°C to -20°C and meeting multi-
scenario freshness preservation needs. It is also equipped with low-oxygen freshness preservation technology and a PLASMA full-
space sterilization and deodorization system providing dual protection for ingredient freshness and health safety.
212025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Dual-system Pure
Protection for
Authentic Flavor
GreUe XuletlonrgaSer-iesfRreferigeraztoriBnCDg-508PWGoMAwK3SePSrGA
Ruyue heat pump washer-dryer — The product features a high-efficiency heat pump system significantly reducing energy and
water consumption compared to traditional electric heating models. The product maintains a constant low-temperature drying mode
at 37°C gently protecting clothes. Through optimized drive algorithms it achieves a washing ratio of up to 1.2. Paired with a DD
direct-driven motor for low-amplitude smooth operation it reduces friction and impact on clothes lowering washing and care loss.The product has successfully passed the authoritative gold standard certification for wool fabric washing and drying. Relying on core
technologies it achieves gentle washing and care and low-temperature fabric protection creating a high-quality green energy-saving
healthy and comfortable washing and care solution.Gree Ruyue Heat Pump Washer-Dryer
Washing for Good
Texture
Wearing with High
Custom Sense
Kitchen appliance
During the report period the Company continuously deepened its presence in kitchen scenarios iteratively launching multiple high-
performance kitchen appliances and refining the whole-house healthy home appliance layout.
6-nines series water purifier — The product adopts a "dual-core six-filter" architecture featuring a six-stage high-precision
filtration system that integrates multiple high-quality filter media such as PP cotton activated carbon and reverse osmosis (RO)
membrane. It possesses high-efficiency sterilization capability and long-term stable filtration performance effectively reducing later
222025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
filter replacement costs. The product is configured with a high flow rate of 1200 G achieving a purified water flow rate of up to 3.0
L/min fully meeting the diverse daily water needs of households including direct drinking cooking and cleaning.Gree 6-ninesWater Purifier Sterilization
rate
Healthy Water Every Day
Trusting GREE's 6-nines
Healthy zinc mineral water | 1200 G high flow rate |
10-year long-life RO filter
Note: 1. The 99.9999% sterilization rate data is sourced from the report (No.: WTS2025-9804) of CVC Testing Technology Co. Ltd.
2. The 10-year long life of the RO filter refers to the service life of the RO filter reaching up to 10 years when testing under the water quality with total dissolved solids (TDS) of approximately 120 mg/L with a
total water throughput of the ROmembrane of 36.5 tons. And according to The Chinese Dietary Guidelines the average daily drinking water per person is 1.5 L–1.7 L so for a household of six the average daily
water usage is 10 L. The test report for the RO membrane life of 36500 L is from Guangzhou Institute of Microbiology Co. Ltd. (Report No.: SZ20223054). It is for reference only as water conditions vary by
region.In addition the Fengshen X1 ultra-thin range hood launched by the Company adopts an integrated ultra-thin body structure
effectively solving the pain points of traditional ultra-thin models such as limited operation and easy collision with kitchenware
fully freeing up cooking space. The "Gangganghao" series zero-coating stainless steel rice cookers are all equipped with 316L
food-grade stainless steel zero-coating inner pots paired with an easy-to-disassemble structural design taking into account both
healthy eating and daily cleaning convenience adapting to the high-quality healthy cooking needs of modern families.Environmental appliance
Zhifengzhe floor-standing circulating fan — The product features lightweight fan blades and reverse-curve pre-swirl grille
technology paired with a 135 mm ultra-thin motor head and red wine glass-like body design presenting a slim and minimalist
appearance with outstanding texture. The product achieves an air velocity of up to 6.5 m/s an airflow rate of up to 16.5 m3/min and
operating noise as low as 48 dB(A) balancing powerful airflow delivery with a quiet experience and achieving a balance between
performance and comfort. Relying on excellent product strength and market recognition the cumulative sales of this product in 2025
exceeded 100000 units demonstrating outstanding market performance.Zhifengzhe FXDZ-20X82Ag5
Voice-controlled Antibacterial Circulating Fan
Abundant Fresh Oxygen Supply
Whole-house Air Transformed
Voice smart control | Antibacterial pet hair filter shield |
Concentrated vortex flow
232025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The Company innovatively launched the Nordic time bonfire-simulated voice-controlled heater. Relying on an annular air curtain
and sensory simulated bonfire design it breaks through the inherent form of traditional electric heaters combining aesthetic design
innovation with a comfortable usage experience. At the same time focusing on the specific needs of pet-owning families the
Company launched the pet air purifier which efficiently adsorbs floating pet hair removes odors and effectively purifies allergens
and harmful bacteria in the air. The product features a 120° wide-irradiation UV lamp matrix for filter sterilization and a multi-
directional laser interaction device improving home air quality and upgrading the health protection and diversified living experience
of pet-owning families.
(2) Adhering to independent R&D and innovation leading industry development through technologies and standards
1) Tackling core key technologies achieving multi-point iterative breakthroughs
During the report period the Company continued to tackle core technologies in HVAC compressors and refrigeration breaking
through key barriers such as air supply control high-efficiency pump bodies and variable-frequency compression. Several
innovative technologies achieved comprehensive upgrades in energy efficiency comfort and operating condition adaptability and
won important industry science and technology awards.Key technology and application of central air conditioners with reversible air supply — The Company innovatively developed
key technology for central air conditioners with reversible air supply and based on the demand for separate delivery of cooling and
heating innovatively built a reversible air supply system overcoming pain points of traditional central air conditioners such as cold
air blowing on people hot air accumulation and large vertical temperature differences. In heating mode heat directly reaches the
human activity zone significantly improving heating efficiency and reducing power consumption under standard operating
conditions by 42.7%. In cooling mode an attached air supply design is adopted to achieve a comfortable experience without direct
cold air blowing. This technology has been applied to the GREE "Gentle Air Comfort" central air conditioner series achieving multi-
scenario product coverage.Key technology and application of wide-range high-efficiency AI VRF systems based on real-time performance — The
Company successfully developed a wide-range high-efficiency AI VRF system based on real-time performance achieving for the
first time online precise measurement of indoor unit capacity. It integrates real-time performance calculation flexible refrigerant
regulation and full-scenario energy-saving control and is equipped with GREE's self-developed chips achieving self-learning under
complex operating conditions and adaptive optimization of system parameters. According to tests the product's annual performance
factor (APF) exceeds 6.45 with an average energy saving rate of over 25%. This project won the special award for scientific and
technological progress in energy conservation and emission reduction from the China Energy Conservation Association (CECA) in
2025 providing support for the green and low-carbon development of the industry.
New high-efficiency rotary positive displacement refrigerant pump and machine room air conditioner — The Company
independently innovated and developed a new high-efficiency rotary positive displacement refrigerant pump breaking through the
operational limitations of traditional refrigerant pumps and successfully expanding the applicable ambient temperature for refrigerant
pump cooling from 5°C to 20°C. The product has an operating head ranging from 0.05 MPa to 0.6 MPa and achieves a
comprehensive operating efficiency of 54.4%. It effectively expands the application boundary of free cooling significantly improves
the year-round energy-saving operation capability of machine room air conditioners and facilitates low-carbon high-efficiency
operation and maintenance of key scenarios such as data centers.Multi-adaptational high-speed high-efficiency rotary compressor and air conditioner — The Company deeply cultivated core
underlying technologies of compressors overcoming key technologies such as low-wear compression structures active refrigerant oil
management variable stiffness discharge valve sets and dynamic control of drive parameters and achieving stable operation of the
compressor across an ultra-wide frequency range of 1 Hz–200 Hz. According to tests the seasonal energy efficiency of the matched
complete air conditioner can be increased by 10% and low-temperature heating capacity can be increased by 15%. While
strengthening performance under extreme operating conditions it deeply aligns with the development trend of green energy saving
effectively balancing comfort experience with low-carbon usage needs.
2) Deepening diverse technological innovations with multiple honors demonstrating technological strength
242025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The project "research and application of key technologies for low-carbon dynamic operation of inverter air conditioners" won the
first prize for scientific and technological progress from the China National Light Industry Council (CNLIC). The project carried out
technical research focusing on three core directions namely collaborative dynamic energy efficiency optimization control of air
conditioner actuators adaptive matching of room loads under complex operating conditions and chip integration design. It broke
through the limitations of traditional air conditioner control algorithms and successfully implemented low-carbon dynamic operation
control technology. Air conditioners equipped with this technology achieve precise load adaptation and according to tests the annual
power consumption reduction exceeds 13.6%. This technology has been applied to wall-mounted air conditioners of series such as
"Ai Savenergior" "Coomer-II" "Satin Time" "GREE?CHINOISERIE" and "Modern π" providing solid technical support for the
green and low-carbon transformation of the home appliance industry.In addition the project "key technology and application of wide-range high-efficiency AI VRF systems based on real-time
performance" won the special award for scientific and technological progress in energy conservation and emission reduction from the
China Energy Conservation Association (CECA) in 2025. The project achieved breakthroughs in areas such as precise real-time
energy efficiency perception flexible refrigerant regulation and intelligent energy-saving decisions solving problems of traditional
VRF systems such as lagging energy efficiency monitoring and high coupling of system parameters and innovatively built a multi-
element collaborative flexible refrigerant regulation system. Leading the industry upgrade with its technological advantages it sets a
benchmark for the high-quality low-carbon development of the refrigeration and air conditioning industry.The Company continuously strengthens independent R&D and innovation breakthroughs in intelligent equipment with core
achievements winning multiple authoritative honors. The independently developed "high-speed dual-five-axis gantry machining
center" won the gold award at the 50th International Exhibition of Inventions of Geneva. The equipment achieves a precision of up to
1 μm and a rapid traverse rate of up to 120 m/min supports one-time clamping and forming of hexahedral workpieces and improves
machining efficiency by 80%. It has been integrated into the core component supply chain of new energy vehicles serving high-end
manufacturing scenarios such as giga-casting. At the same time multiple intelligent manufacturing technologies have repeatedly won
provincial-level major awards: the project "research and demonstration application of intelligent manufacturing system integration
technology for the mold and equipment manufacturing industry" won the first prize of Guangdong Mechanical Industry Science and
Technology Award and the first prize of the Science and Technology Award of Guangdong Mechanical Engineering Society. The
project "research and industrialization of key technologies for intelligent logistics AGVs in discrete manufacturing" won the second
prize of Guangdong Outstanding Artificial Intelligence and Robotics Science and Technology Progress Award continuously
consolidating core competitiveness in the high-end equipment and intelligent manufacturing fields.Leveraging the platform advantages of the State-level Industrial Design Center the Company continuously strengthens design
innovation and user experience upgrades. During the report period the Company won a total of 10 IF design awards and 7 Red Dot
awards throughout the year with award-winning products covering air conditioners refrigerators washing machines and various
home appliances fully demonstrating the Company's outstanding industrial design strength and product aesthetic competitiveness.
3) Deeply participating in industry standard setting continuously leading industry progress
During the report period the Company deeply participated in the development of global and national standards leading the
formulation or revision of a number of key international and national standards in critical fields such as refrigerant compressors
photovoltaic appliances household appliance safety and DC appliances. It continuously seized the commanding heights of industry
standards consolidating its discourse power in the industry and global leading advantages.ISO dual international standards for refrigerant compressors: the Company led the development of ISO 18501:2025
Performance rating of positive displacement refrigerant compressor and ISO 18483:2025 Performance rating of centrifugal
refrigerant compressor filling the 20-year industry gap of no new standards in the ISO refrigerant compressor field effectively
improving the global compressor performance rating system and consolidating China's international discourse power and
technological leadership in the refrigerant compressor field.IEC international standard for photovoltaic direct-driven appliances: the Company led the formulation of IEC 63349-1:2025
Photovoltaic direct-driven appliance controllers — Part 1: General requirements which is China's first international standard led
252025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
and formulated in the field of photovoltaic direct-driven appliances. It marks China's transition from technology leadership to
standard leadership and provides solid standard support for the high-quality development of the photovoltaic home appliance
industry.During the report period the Company led the drafting of China's first national standard for safe service life of air conditioners GB/T
46738-2025 Safe service life of household and similar electrical appliances — Particular requirements for air-conditioners. It
further standardizes industry production guidelines guides consumers to use home appliances safely and reasonably and effectively
supports the orderly implementation of the home appliance trade-in policy. In addition the Company led the formulation of GB/T
4706.129-2025 Safety of household and similar electrical appliances — Part 129: Particular requirements for DC supplied
household electrical appliances which is China's first national standard in the field of DC appliance safety. This standard unifies the
testing and certification specifications for DC home appliances fills gaps in industry standards safeguards the product quality and
usage safety of DC appliances and supports the standardized high-quality development of the industry.
(3) Strengthening the quality system construction forging product excellence
In 2025 adhering to the quality policy of "pursuing perfect quality establishing an international brand and building a century-old
enterprise" the Company comprehensively deepened the concept of quality management improved the quality standardization
system implemented digital and intelligent control methods continuously enhanced product quality stability and operational
reliability and maintained an industry-leading position in comprehensive quality levels.During the report period the Company's core products successively won multiple authoritative domestic and international quality and
energy efficiency certifications with product quality strength highly recognized by authoritative industry organizations. Among them
the outdoor unit system of the photovoltaic direct-driven VRF unit won the first certification for photovoltaic direct-driven air
conditioning units issued by the China Quality Certification Centre (CQC). In the field of heat pumps and refrigeration equipment it
successfully obtained the first CRAA certification for combined cabinets from Beijing CRAA Quality Certification Center Co. Ltd.and was rated in the first batch of chillers obtaining CRAA 4-tier 1 energy efficiency certification fully reflecting the Company's
leading advantages in high-efficiency energy-saving technology and high-quality manufacturing.Using intelligent manufacturing and digital technologies as drivers the Company continuously upgrades its full-chain quality
management and control system. Relying on the intelligent manufacturing system and the component full-process management and
control platform it achieves precise production scheduling rapid early warning of quality issues and closed-loop rectification of
abnormal matters. Simultaneously it promotes the popularization of intelligent testing equipment and laboratory information
management strengthens error-proofing control in the production process and full-cycle quality traceability capability effectively
improving testing accuracy and quality management efficiency. At the same time with deep application of cutting-edge technologies
such as intelligent visual recognition and automated online inspection the Company drives the upgrading of the quality management
model from traditional post-production inspection to full-process control covering pre-event prevention in-process strict control and
full-process traceability achieving refined automated and intelligent quality control. With strict quality standards it stably delivers
high-quality high-reliability home appliance products and professional services to global users.
(4) Deepening refined channel operation achieving full-link channel efficiency improvement
In 2025 consumer demand in the domestic home appliance market became more rational and consumers' requirements for product
quality and service experience continued to increase. Closely following market changes and focusing on channel optimization and
upgrading the Company has improved its channel system and enhanced operational efficiency through online and offline
collaboration providing solid support for stable business development.In terms of offline channels relying on scenario-based operations and refined management the Company has promoted terminal
upgrades and channel optimization. The Company continues to promote the "Dong Mingzhu Healthy Home" strategy completing the
renovation and upgrade of over 1000 stores creating comprehensive terminals integrating product display scenario-based
experience and after-sales support and fully presenting all product categories. It continuously deepens channel digitalization
262025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
upgrades improves the standardized service system and connects the entire process of installation repair and maintenance
comprehensively enhancing offline service quality and solidifying offline market advantages.In terms of online channels focusing on precision scenario-based and diversified operations the Company continuously enriches its
brand layout. The Company launched the KINGHOME air conditioner (sub-brand) improving its multi-level product layout to meet
different user needs; deepened cooperation with mainstream e-commerce platforms and leveraged the trade-in policy to broaden the
market; innovated new models such as live streaming and content marketing strengthened precision communication and
continuously improved brand influence and online operational quality and efficiency.Based on a user-centric approach the Company accelerated the digital and intelligent upgrade of its service system and improved the
full-channel closed-loop service. On September 15 2025 the Company officially launched the nationwide unified after-sales hotline
95082 certified by the Ministry of Industry and Information Technology (MIIT) effectively preventing unofficial after-sales risks
and protecting consumer rights. Simultaneously it upgraded the online service official account and mini-program to integrate
functions such as appointment processing progress inquiry and expense verification achieving full-process service visualization and
traceability.
(5) Promoting diversified layout in the industrial field continuously tapping growth potential
In 2025 the Company continued to strengthen its independent R&D and industrialization capabilities for core components especially
in key fields such as compressors motors capacitors semiconductors refrigeration parts precision molds and intelligent equipment.Technologies of multiple compressors and motors have reached internationally leading levels and SiC power semiconductors have
achieved IDM full-process layout and vehicle-grade certification. Additionally the resource recycling system has been improved
and the comprehensive product competitiveness technological level and green development capability of the industrial segment
have continuously enhanced.Compressor
In 2025 the Company continuously deepened its core technology research and development for compressors focusing on the
development directions of high efficiency miniaturization wide frequency range and high reliability and launched several new
high-performance rotary compressors. Through technological breakthroughs in motor optimization noise and vibration reduction
refrigerant oil management and wide temperature range adaptation the Company continuously improved product energy efficiency
operational quietness and adaptability to extreme operating conditions. The wide-frequency high-efficiency compression technology
has reached an internationally leading level further consolidating the Company's core technological barriers and market position in
the refrigerant compressor field.New-generation 12 HP inverter rotary compressor — Precisely matching the modular unit market's needs for compactness low
cost and high energy efficiency and relying on four core technologies — "high-efficiency high-power-density concentrated winding
rare earth motor technology" "multi-layer silencing and low-noise technology" "active oil-gas separation and low oil discharge
technology" and "high-reliability wide-temperature-range assurance technology" it achieves comprehensive optimization in energy
efficiency noise reliability and volume with overall performance fully improved.Multi-adaptational high-speed high-efficiency rotary compressor and air conditioner — In response to industry trends of wide-
frequency operation miniaturization and lightweight and high efficiency the Company independently developed a 1?Hz–200 Hz
multi-adaptational high-speed high-efficiency rotary compressor overcoming problems such as low energy efficiency across wide
frequency ranges and poor reliability at high frequencies and achieving double leaps in high efficiency at low load and high heating
capacity at high frequency. This technology was first applied to heat pump air conditioning systems solving the problem of heating
capacity attenuation at -15°C ultra-low temperatures and ensuring stable operation under extreme weather conditions. The
technological achievement was appraised as "World Leading".Motor
In 2025 the Company continuously deepened core technology innovation in motors deploying across multiple fields such as
intelligent manufacturing industrial explosion-proof applications energy-saving equipment and home appliance-associated
272025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
equipment. It broke through key technologies such as servo drive magnetic levitation and high power density and launched several
high-performance motors comprehensively strengthening the technological leadership of core components.For the high-end intelligent manufacturing field the Company independently developed a high-protection high-power-density
servo motor for 300 kg robots. Closely matching the stringent requirements of high precision high response and high reliability for
automotive intelligent manufacturing lines and relying on a new electromagnetic design platform it achieved 4.5 times the rated
power bearing capacity with power density ranking among the top in the industry. This product breaks overseas technology
monopolies accelerates the large-scale application of domestically produced servo motors in high-end automotive manufacturing
scenarios and effectively improves the localization of core components for intelligent manufacturing.For high-temperature flammable and explosive high-risk operating conditions in industries such as chemical oil & gas and coal
mining the Company developed and launched explosion-proof industrial permanent magnet assisted reluctance motors. The
products combine the advantages of permanent magnet and reluctance torque overcoming key technologies such as explosion-proof
special materials electromagnetic structure optimization and intelligent thermal control. They cover a power range of 15 kW to 200
kW with energy efficiency exceeding the new tier 1 standard of GB 30253-2024 adapt to IIA IIB and IIC explosive environments
and feature advantages such as high efficiency and energy saving reliable operation low noise and low carbon helping the safe and
green transformation of the industrial field.Capacitor
In 2025 the Company continuously deepened material innovation and product upgrades focusing on fields such as home appliances
new energy and industrial control and steadily advanced capacitor technology breakthroughs and industrialization. Through
electrolyte formulation optimization the Company improved the ripple current withstand capability of capacitors with the ripple life
of 450 V 820 μF and 680 μF capacitors reaching advanced levels. The R&D of dedicated capacitors for vehicles and photovoltaics
was advanced orderly successfully achieving small batch production and sample testing. At the same time it specifically developed
new energy dedicated film capacitors to meet the application needs of high-power scenarios such as new energy vehicles
photovoltaic energy storage and industrial equipment.Semiconductor
In 2025 the Company accelerated the industrialization of silicon carbide (SiC) power semiconductors making every effort to build
full-process independence and controllability capabilities. As of the end of the report period the Company had built a fully
automated SiC chip factory and the industry's first super energy station with the localization rate of core equipment exceeding 70%.The Company masters key processes such as high-quality gate oxide high-aspect-ratio trench etching and small-size
photolithography and provides high-quality high-reliability foundry services for traditional SiC Schottky diodes and SiC planar
MOSFETs.During the report period the Company completed AEC-Q101 certification (including tests such as high-temperature reverse bias and
power temperature cycle) for its SiC diodes and MOSFETs. The SiC chip factory obtained - three system certifications namely ISO
9001 ANSI/ESD S20.20-2021 and IATF 16949 possessing mass production capabilities for high-reliability home appliances and
vehicle-grade chips. The semiconductor Test Center of Zhuhai Gree Electronic Components Co. Ltd. obtained CNAS laboratory
accreditation with testing capabilities reaching national authoritative standards. Products and manufacturing services have covered
diverse fields including household and commercial air conditioners home appliances industrial control automotive electronics
photovoltaic energy storage and charging piles.Intelligent equipment
Focusing on core categories such as CNC machine tools and industrial robots and targeting key industries such as new energy
vehicles and home appliances the Company supplies high-end intelligent equipment and customized automation solutions
continuously empowering the transformation and upgrading of the manufacturing industry.In terms of CNC machine tools based on the processing needs of precision components for new energy vehicles the Company
independently developed a new-generation dual-five-axis gantry machining center overcoming core design and manufacturing
technologies for the AC rotary head. The AC axis achieved an operating speed of up to 80 rpm and machining precision reached
282025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
micron-level breakthroughs. It won the gold award at the 50th International Exhibition of Inventions of Geneva effectively
promoting the domestic substitution of high-end precision machine tools. At the same time the Company successively launched
multiple new products such as horizontal machining centers high-speed drilling and tapping centers precision mold machining
centers and quick tool change systems continuously refining its product matrix.In terms of industrial robots the Company has achieved full-chain independent R&D from core components to complete robot
systems and achieved technological breakthroughs in multiple sub-fields. It deeply integrates robot technology with various
industries creating standardized workstations and automation solutions tailored for specific scenarios. For steel structure building
scenarios the Company developed a heavy-load submerged arc welding robot that achieves precise weld seam positioning through
an end laser sensor. Featuring high melting power penetration and deposition rate this equipment completes single-pass welding of
medium-thick plates effectively improving operation efficiency. For ship building and heavy machinery industries the Company
developed and launched a six-axis welding robot featuring model import and laser tracking functions. Without manual teaching of
welding trajectories it autonomously identifies weld seams and automatically generates welding paths and quickly adapts to the
automated welding needs of multiple specifications and batches of workpieces significantly reducing the technical threshold and
commissioning time of traditional welding processes.Precision mold
In 2025 the Company deepened the research and development of core technologies for precision molds strengthened capabilities in
simulation design precision machining and structural optimization built a full-chain system for R&D manufacturing and service
and integrated green manufacturing and intelligent manufacturing to enhance the core competitiveness of mold manufacturing. In
terms of home appliance molds relying on simulation analysis and structural optimization design the Company effectively shortened
product cooling cycles achieving significant results in cost reduction and efficiency improvement. In terms of automotive molds the
Company overcame high-precision control technology for multi-cavity molds achieving efficient production of 12 parts in a single
mold with dimensional tolerances stably controlled within 0 mm to 0.03 mm. In terms of precision machining the Company
successfully and independently developed large-size high-precision metal bipolar plate molds with key technical indicators reaching
advanced levels. At the same time it innovatively applied an integrated molding process for air conditioner volute tongue and sweep
blades reducing the number of molds simplifying production processes improving assembly efficiency and effectively reducing
comprehensive manufacturing costs.Refrigeration parts
DunAn Environment a subsidiary of the Company is committed to the field of core refrigeration components and a leading
enterprise in the global refrigeration and air conditioning component industry with the production and sales volume of its core
products consistently ranking among the top globally. Its products are widely used in diverse scenarios such as residential air
conditioners commercial air conditioners air-source heat pumps freezing and refrigeration energy storage temperature control new
energy vehicle thermal management and data centers. In 2025 DunAn Environment relying on its comprehensive R&D platform
continuously increased technology investment achieving fruitful results in key new product iterations. Among them the ultra-silent
electronic expansion valve and the MPHX non-bending dual-row micro-channel heat exchanger won the title of "2025 China
Refrigeration Expo Innovative Product". According to data from ChinaIOL.com during the report period the market share of DunAn
Environment's cut-off valve ranked first in the world and that of the four-way valve and electronic expansion valve ranked second in
the world respectively.Recycling
In strict accordance with the extended producer responsibility (EPR) system the Company built a full-process circular development
system of "green design-green manufacturing-green recycling" and relying on its nationwide channel and service network promoted
integrated "delivery dismantling installation" recycling services achieving traceable management for the entire process of waste
household appliance collection and disposal.During the report period the Company's cycling business progressed steadily. As of the end of the report period the Company had
collectively processed over 73.31 million units (sets) of various waste electrical and electronic products and recovered and converted
292025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
approximately 1059800 tons of renewable resources including copper iron aluminum and plastics achieving outstanding results
in resource recycling. Relying on its comprehensive recycling network and standardized operation capabilities the Company was
selected as one of the first batch of pilot enterprises for the construction of the resource recycling system by the Ministry of
Commerce and won the honor of "2025 EPR Responsibility Fulfillment Innovation Pioneer Enterprise" continuously leading the
industry in green low-carbon and circular high-quality development.
(6) Expanding the overseas market enhancing the international competitiveness of self-owned brands
In 2025 facing the complex and changing global economic situation and increasingly fierce industry competition the Company
adhering to the dual-wheel drive of self-owned brands and localized operations actively responded to external challenges such as
exchange rate fluctuations and trade frictions and achieved steady development of its overseas business.During the report period the Company continued to promote the global market expansion of its self-owned brands. The proportion of
self-owned brand product sales in the Company's total export value increased from less than 30% in 2015 to 70% and exceeded 85%
in countries along "the Belt and Road" achieving significant progress in the strategic transformation from "product export" to "brand
going global."
The differentiated operation strategy in global markets has achieved notable results. The Company's customized new products such
as the SilenzX series silent air conditioners precisely meet the demands of the European and American markets with their advantages
of extreme quietness and stable operation across a wide temperature range. Facing market challenges the Company proactively
optimized its strategy deepened its presence in B-end markets such as government projects and commercial real estate and
successfully won bids for multiple landmark projects including the Serbia Expo HVAC project and the Bulgaria CTP Invest
industrial park demonstrating the strength of intelligent manufacturing in China.Great efforts were made in overseas channel development and brand promotion. The Company continuously strengthened its three
major self-owned brand matrix namely GREE TOSOT and KINGHOME building an omni-channel network including traditional
HVAC channels large installer channels and large retail channels. In terms of brand promotion the Company achieved high-density
brand exposure through diverse methods such as outdoor advertising television commercials sports events and brand store
development. In the Western European market as the main sponsor of Real Betis Balompié leveraging the global exposure of the
team's historic run to the UEFA Champions League final in the 2024–2025 season the Company's brand awareness has significantly
increased becoming a model for international marketing of Chinese brands.
(7) Accelerating digital and intelligent transformation and upgrading improving group operational efficiency
In 2025 the Company to deeply advance its digital transformation strategy fully connected the entire business chain of R&D
manufacturing supply chain quality control and marketing services and built an integrated digital operation system accelerating
the intelligent and digital upgrade of production management and service models.During the report period the Company accelerated its layout of large model agent platforms building a full-domain artificial
intelligence application ecosystem around core scenarios such as R&D design production operation management and customer
service. Relying on the large-scale implementation of AI-assisted R&D intelligent office intelligent customer service and intelligent
decision-making systems the Company effectively improved collaboration efficiency and scientific decision-making capacity. At the
same time relying on intelligent interaction robotic services and digital quality inspection capabilities the Company created a full-
process intelligent service system continuously optimizing service experience and operational efficiency. In terms of manufacturing
the Company continuously deepened full-domain digital transformation building platforms for real-time production data collection
online monitoring and intelligent management and control. Relying on intelligent production scheduling refined material
management and rapid abnormality response mechanisms it comprehensively enhanced production flexibility and delivery
capability. In terms of quality control it accelerated the construction of smart laboratories and digital testing systems popularized
technologies such as intelligent visual inspection and online non-destructive testing improved full-process traceability and error-
proofing control and promoted the precision and automation of quality management. In terms of safety production relying on a
302025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
digital supervision platform it achieved intelligent risk assessment and closed-loop hazard management building a strong defense
line for production safety.In 2025 the "full-value-chain GREE collaborative house — smart air conditioner factory" of Gree Electric Appliances (Zhuhai
Jinwan) Co. Ltd. was selected as one of the first 15 "pilot-level" smart factories in China and it is the sole enterprise in Guangdong
Province to be selected. The project deeply integrates the Industrial Internet Platform data mid-end and multiple core business
systems and is equipped with self-developed intelligent equipment achieving an automation rate of over 80%. It enables end-to-end
data interoperability flexible production and efficient operations continuously leading the industry's intelligent manufacturing
upgrade and development.
(8) Improving the talent cultivation system and empowering the enterprise's sustainable development
In 2025 the Company adhered to the strategy of strengthening the enterprise through talent comprehensively consolidating the talent
foundation and building solid talent support and organizational guarantees for the Company's diversified transformation intelligent
manufacturing upgrading and global expansion.During the report period the Company regularly carried out a series of corporate culture theme activities such as "GREE · Walking
with the Times" "GREE · Light Chaser" and "GREE · Spiritual Harbor". Through diversified measures such as role model guidance
quality training and health care it comprehensively improved employees' comprehensive quality. The Company continued to
implement a company-wide military training mechanism strengthen discipline and work style consolidate team synergy through
militarized management cultivate a profound corporate culture and effectively enhance organizational cohesion and corporate
centripetal force.The Company continuously improved its high-skilled talent cultivation system successfully obtained approval for building the
"Guangdong Province Artisan College" and key projects of the All-China Federation of Trade Unions upgraded training hardware
facilities and built a professional skills training platform. Closely aligned with industrial development and job requirements it
deepened the government-enterprise-school collaborative education model custom-developed specialized training courses precisely
delivered high-quality skilled talents to core industry sectors and helped promote high-quality industrial development. At the same
time the Company continued to optimize its talent management mechanism built a digital human resource management system and
achieved standardized and refined management of core talents. It actively carried out vocational skills competitions at all levels and
hosted provincial-level professional events to promote learning and training through competition. By benchmarking against the new
national vocational skills standards it improved the internal skill level evaluation system and implemented pilot assessments
continuously expanding the team of skilled and versatile talents thereby fully empowering the steady development of various
businesses such as R&D and innovation intelligent manufacturing quality control and global operations.
2. Revenue and cost
(1) Composition of operating revenue
Currency: CNY
20252024
Year-on-
Proportion
Item Proportion yearto
Amount to Operating Amount Increase/D
Operating
Revenue ecrease
Revenue
Total operating revenue 170447058533.57 100.00% 189163654064.64 100.00% -9.89%
By industries
Manufacturing industry 153781972343.46 90.22% 169715353002.47 89.72% -9.39%
Other business 16665086190.11 9.78% 19448301062.17 10.28% -14.31%
By products
Home appliances 133055208627.13 78.06% 148559931838.58 78.54% -10.44%
312025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Industrial products and
17380701260.9510.20%17246185690.029.12%0.78%
green energy
Smart device 680790474.57 0.40% 424131758.64 0.22% 60.51%
Other main business 2665271980.81 1.56% 3485103715.23 1.84% -23.52%
Other business 16665086190.11 9.78% 19448301062.17 10.28% -14.31%
By regions
Domestic sales ? main
126407077425.4274.16%141512822056.5974.81%-10.67%
business
Export sales ? main
27374894918.0416.06%28202530945.8814.91%-2.93%
business
Other business 16665086190.11 9.78% 19448301062.17 10.28% -14.31%
(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
Currency: CNY
Increase or
Increase or
Increase or decrease in
decrease in
decrease in gross profit
operating
operating margin over
revenue
Item Gross costs over the sameOperating revenue Operating cost over the
margin the same period of the
same period
period of previous
of the
the previous year
previous
year (percentage
year
points)
By industries
Manufacturing
153781972343.46103423626894.6632.75%-9.39%-9.66%0.20
industry
By products
Home appliances 133055208627.13 86112528829.42 35.28% -10.44% -10.94% 0.37
Industrial products
17380701260.9514680898286.9315.53%0.78%0.99%-0.18
and green energy
By regions
Domestic sales ? main
126407077425.4282766067955.4234.52%-10.67%-11.05%0.27
business
Export sales ? main
27374894918.0420657558939.2424.54%-2.93%-3.61%0.53
business
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 its revenue from labor services
□Yes □No
Description of a year-on-year change of 30% or more in relevant data
□ Applicable □Not Applicable
322025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(4) Performance of significant sales contracts and significant purchase contracts entered into by the Company as of the
report period
□ Applicable □Not Applicable
(5) Composition of operating costs
Currency: CNY
20252024
Industry Year-on-year
Item
classification Proportion to Proportion toAmount Amount Increase/Decrease
operating cost operating cost
Raw
85349401765.6587.52%93363351952.2286.05%-8.58%
Home materials
appliance Labor costs 4948894365.83 5.07% 4879947485.74 4.50% 1.41%
manufacturing Depreciation 1503704766.32 1.54% 1759556442.08 1.62% -14.54%
Energy 1013554714.13 1.04% 1131053297.69 1.04% -10.39%
(6) Whether there was a change in the scope of consolidation during the report period
□Yes □No
For changes in the scope of consolidation during the report period please refer to Note VI Change in the Consolidation Scope in the
Financial Statements in Section VIII.
(7) Major 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) 24647540609.21
Proportion of total sales amount of top five customers to the total
14.40%
annual sales
Proportion of sales amount of related parties in the sales amount
2.34%
of top five customers to the total annual sales
Information of top five customers
Proportion to Total Annual
S/N Customer Name Sales Amount (CNY)
Sales
1 First 10119088327.50 5.91%
2 Second 5922757391.80 3.46%
3 Third 3999596480.24 2.34%
4 Fourth 2478843997.90 1.45%
5 Fifth 2127254411.77 1.24%
Total -- 24647540609.21 14.40%
332025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Other description of major customers
□ Applicable □Not Applicable
Main suppliers of the Company
Total purchase amount of the top five suppliers (CNY) 36450619454.43
Proportion of total purchase amount of top five customers to the
32.75%
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 9306224060.49 8.36%
2 Second 7881830600.58 7.08%
3 Third 7648445053.66 6.87%
4 Fourth 5940790709.55 5.34%
5 Fifth 5673329030.15 5.10%
Total -- 36450619454.43 32.75%
Other description of major suppliers
□ Applicable □Not Applicable
During the report period the company's trading business revenue accounted for more than 10% of its operating revenue.□ Applicable □Not Applicable
3. Expenses
Currency: CNY
Item Year-on-year Significant Changes2025 2024
Increase/Decrease Description
Sales expenses 8410739569.54 9753022469.17 -13.76%
Administrative
5180260235.386057608713.94-14.48%
expenses
Financial expenses -4086088396.47 -3300417558.96 -23.81%
R&D expenses 6463100763.66 6904084981.92 -6.39%
4. R&D investment
□Applicable □ Not applicable
Expected Impact on the
Name of Major Project
Project Purpose Objectives to be Achieved Future Development of the
R&D Project Progress
Company
Through refined air duct layout Improve the product layout
Develop and promote
optimization and system pipeline for AI-powered energy-saving
Yueshengdian efficient wall-mounted The product
structure upgrades achieve a technologies advance exterior
household air and floor-standing units has been
25% increase in circulating air design innovation and
conditioner to enhance the market launched on
volume for the 35-type wall- functional upgrades. It has
series competitiveness of core the market.mounted unit; for the 72-type broad market prospects and
sales products.floor-standing unit increase the significant social benefits.
342025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Expected Impact on the
Name of Major Project
Project Purpose Objectives to be Achieved Future Development of the
R&D Project Progress
Company
APF value by 0.2 and increase
circulating air volume by 45.6%.Solve the problem of Develop temperature-humidity-
traditional central air airflow comfort technology and
conditioners which can dynamic energy-saving As a new upgraded model of
Star5 AI only control temperature The product technology to achieve a the well-regarded Star series
residential and provide poor has been comfortable environment in its industry-leading
central air comfort meeting users' launched on terms of temperature humidity parameters and indicators
conditioner comprehensive needs for the market. and airflow an industry-leading further enhance the product's
comfort health energy APF value of 6.6 and reliable market competitiveness.efficiency and operation in a wide temperature
intelligence. range of -35°C to 66°C.Developed the Company's
Equipped with an 36K/42K Through intelligent heat recovery
first residential heat recovery
efficient heat recovery products technology achieve a
product enriching its product
system to provide a one- launched; breakthrough "one unit dual use"
EU Free Match line layout and meeting the
unit solution for whole- miniaturized solution with the water heater's
air conditioner demand for highly efficient
house air conditioning 21K/28K steady-state energy efficiency
and water heater and energy-saving products
and hot water meeting products exceeding 4.5 and seasonal
from users in Europe North
the needs of users in under energy efficiency meeting A+
America Australia and other
energy-scarce regions. development. requirements.regions.Develop ultra-high-speed Equipped with all-new high- Achieves a dual leap in
compression technology speed compressor technology seasonal energy efficiency
Wide-frequency
to solve the problem of The product achieve a seasonal energy and low-temperature heating
high-efficiency
synchronously improving has been efficiency improvement of over performance winning the
AIRY series
air conditioner energy launched on 10% a low-temperature heating Silver Medal at the 76th iENA
residential air
efficiency and low- the market. capacity increase of over 10% in Germany and enhancing
conditioners
temperature heating and no low-temperature heating the product's market
capacity. capacity degradation at -15°C. competitiveness.Using heat exchanger zone-based
Develop heat exchanger cooling/heating switching
zone-based technology a single unit achieves
cooling/heating switching constant-temperature
technology to solve the dehumidification and efficient It creates a comfortable quiet
Ruifeng
problems of traditional cooling/heating realizing a and smart home environment
constant- The product
ducted units such as super-large dehumidification for users. With high cost-
temperature has been
uncomfortable capacity of 100 L for a 3HP performance and extensive
dehumidification launched on
dehumidification and ducted unit dehumidifying 4.4 L market demand it has
central air the market.cooling sensation high per kWh 10 dB(A) lower noise significant market prospects
conditioner
energy consumption in dehumidification mode and social benefits.high noise slow compared to a dehumidifier and
dehumidification and an innovative no-water-draining
complex operation. design making it worry-free and
efficient.Develop a full series of
inverter-based chillers Develop an 80CC large-
self-developed displacement rotary compressor Promote the development of
compressors and low- a large U-shaped condenser and products towards low GWP
70/80/160kW
R32 inverter GWP refrigerants to a high-efficiency plate evaporator Grade 1 energy efficiency
products
modular unit address challenges in full to achieve a CSPF of 4.9 under and inverterization thereby
launched.self-sufficiency national standard operating enhancing product market
environmental protection conditions and system energy competitiveness.and efficiency and savings of over 35%.market initiative control
352025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Expected Impact on the
Name of Major Project
Project Purpose Objectives to be Achieved Future Development of the
R&D Project Progress
Company
achieving technological
breakthroughs and
enhancing industrial
competitiveness.Develop an integrated maglev
Develop an efficient
compressor high-efficiency plate
maglev chiller suitable
heat exchanger and "air-liquid
for liquid cooling Provides efficient and
co-source" liquid cooling system
"Air-liquid co- systems to solve the The product intelligent solutions for the
technology to achieve energy
source" maglev problem that traditional has been green and low-carbon
efficiency targets of rated
chiller for data machine room air launched on development of data centers
COP >10.0 and PUE ≤1.15
centers conditioners cannot meet the market. enhancing the Company's
breaking through bottlenecks of
the cooling needs of industry influence.traditional air-cooling solutions
high-power density
such as low energy efficiency
servers.and long deployment cycles.The research results have been
developed into a series of
Develop high-efficiency Solve the problems of mode
products with significant
New high- precision air conditioning switching and drive instability in
energy-saving effects. In July
efficiency products for data centers machine room air conditioners
2025 the overall
rotating-cylinder to respond to national achieving an AEER 89% higher
The product technological level was
positive PUE policy requirements than the national standard limit
has been appraised as "World Leading"
displacement enhance the Company's and a 23% increase in energy-
launched on by experts organized by the
fluorinated competitiveness broaden saving operation time thereby
the market. China National Light Industry
pump dual-cycle the dual-cycle product promoting energy efficiency
Council enhancing the
machine room series and meet market improvement and green low-
Company's market
air conditioner demand for high energy carbon transformation of data
competitiveness in precision
efficiency. centers.machine room air
conditioners.Develop a new
generation of split-type
dedicated cooling
equipment for grain Develop the Sinograin split-type
This product will help the
depots to solve pain intelligent inverter grain depot air
Company explore the grain
Sinograin split- points in grain storage conditioner achieving over 30%
The product storage energy-saving
type intelligent such as high energy comprehensive energy savings a
has entered equipment market and provide
inverter grain consumption and high 76% reduction in
mass support for the
depot air dehumidification rates of dehumidification capacity and
production. implementation of the
conditioner traditional air reduced grain moisture loss
national food security
conditioning equipment ensuring safe and reliable grain
strategy.which lead to increased storage.grain loss rates as well
as insufficient
airtightness issues.Develop the Taishan
Develop a dedicated operating
Smart Building Platform
system for the building
to create standardized
Research and electromechanical field to build Drives the Company's
HVAC intelligent control The product
application of an open and shared ecosystem transformation from a central
systems (such as VRF has been
the Taishan achieving arbitrary device air conditioner supplier to a
intelligent control launched on
Smart Building connectivity zero-code building-intelligent control
systems efficient the market.Platform development easily replicable solution provider.heating/cooling stations
solutions and full-process
and efficient chiller
services.plants) and expand their
362025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Expected Impact on the
Name of Major Project
Project Purpose Objectives to be Achieved Future Development of the
R&D Project Progress
Company
application to building
intelligent control
systems.Develop complete
refrigeration units of the Using R410A high-efficiency
inverter hot gas defrost refrigerant develop a small-
series to solve problems diameter high-efficiency heat
in cold storage such as exchange system intelligent hot
high energy gas defrost technology and a
Inverter hot gas Enriches the product portfolio
consumption large The product new-generation inverter drive
defrost series of the freezing and
temperature control has been platform achieving a 10%
complete refrigeration series and
fluctuations complex launched on increase in cooling efficiency a
refrigeration enhances product market
operation and the market. temperature fluctuation of ≤3°C
units competitiveness.maintenance and and an over 10% reduction in
unstable storage quality energy consumption thereby
thereby enriching the improving the intelligent
product portfolio of the management level of cold
freezing and refrigeration storage.series.Develop dual-axis variable-track
hinges a low-temperature cold
Closely following market
catalyst module and a color
demand develop an
display control screen technology
integrated steel door
905 Wide- to achieve minimized door
refrigerator to solve the The product Improves the low-cost
platform zero- opening space long-lasting
problems of limited door has been integrated refrigerator product
integration/flush cabinet cleanliness and
opening space launched on matrix and strengthens market
-integration steel convenient user interaction with
insufficient antibacterial the market. competitiveness.door refrigerator an antibacterial rate of 99.9%
effect and monotonous
comprehensively improving the
operation experience in
aesthetic design and smart
integrated refrigerators.experience of integrated
refrigerators.Enhances the core
Build an efficient cleaning and
Solve the problems of competitiveness of the
maintenance system to ensure
A washer-dryer reduced drying effect The product product accelerates market
that the air volume and drying
with a fan blade bacterial growth in the air has been expansion consolidates brand
performance of the washer-dryer
self-cleaning duct and odor generation launched on influence and promotes
do not degrade after 30 months
device during long-term use of the market. product upgrades towards
of operation achieving long-term
washer-dryers. stable drying and healthy
stable operation.washing and care.As the Company's first
Develop the Company's Develop a "heat storage + instant undersink water purifier with
first undersink water heating" system combined with instant heating it drives the
purifier with instant The product feedforward control and Company's upgrade from
Undersink water
heating to solve the has been circulation return technology to basic water purification to
purifier with
problem of large cold launched on achieve the target temperature for high-end instant-heating
instant heating
water output thereby the market. 50 mL for formula preparation drinking water enhancing the
complementing its thereby improving drinking brand's comprehensive
product matrix. convenience and comfort. competitiveness and full-
scenario solution capabilities.Develop a new-look The product Using thin-profile fan blades and Improves product layout
Zhifengzhe
floor-standing circulating has been reverse-curve pre-swirl grille promotes the upgrading of
series circulating
fan to improve product launched on design achieve the industry's household electrical
fan
layout and enhance the market. thinnest head (135 mm). The appliances towards high
372025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Expected Impact on the
Name of Major Project
Project Purpose Objectives to be Achieved Future Development of the
R&D Project Progress
Company
competitiveness. product achieves an air volume efficiency quietness and
of 16.5 m3/min and low noise aesthetic design and enhances
balancing quiet operation and market competitiveness and
performance. brand influence.Expand the compressor's
Expand the operation frequency range to 1-200 Hz This technology has been
frequency range of the achieving a 5% efficiency appraised as internationally
Multi- refrigeration compressor improvement across the entire leading and a technology
adaptational to solve the industry The product frequency band. Air conditioners development roadmap and
high-speed high- challenge of has entered equipped with this wide- product plan for compressors
efficiency rotary simultaneously mass frequency compressor have a and air conditioners have been
compressor and improving the energy production. 10% higher seasonal energy established promoting the
air conditioner efficiency and heating efficiency and a 15% higher low- development of air
capacity of traditional air temperature heating capacity conditioning products towards
conditioners. balancing user experience and high efficiency and comfort.energy-saving effects.The chiller was reduced from
Develop a new- The compressor achieves over a four-fan module to a two-
Applied in
generation 12HP inverter 5% better performance than other fan module significantly
the new-
New-generation rotary compressor for rotary compressors a 5dB noise decreasing size while
generation C
12HP inverter parallel use in modular reduction and a 70% reduction maintaining industry-leading
series
rotary chillers to solve the in oil discharge rate while energy efficiency thus
65/80/130/16
compressor problems of large meeting reliable operation in a promoting the complete
0kW inverter
footprint and high cost of wide temperature range of -25°C transition of chillers into the
chillers.modular chillers. to 54°C. era of inverter rotary
compressors.Apply maglev
The maglev blower achieves a
technology to traditional
pressure of 80 kPa and a flow Develop high-efficiency and
fans to solve problems
rate of 75 m3/min meeting Grade energy-saving maglev blower
such as high energy
The product 1 energy efficiency standards. products completing the
consumption high noise
High-efficiency has entered Compared to traditional Roots expansion of the Company's
lubricating oil failure
maglev blower mass blowers it provides 30% energy maglev technology into the
and oil-containing
production. savings 100% oil-free exhaust industrial field and enhancing
exhaust thereby
over 15 dB noise reduction 80% the influence of the
promoting energy
lower maintenance costs and a Company's maglev products.efficiency upgrades in the
semi-permanent lifespan.industrial sector.Solve technical
bottlenecks of traditional
Products Promote the development of
air conditioner motors Achieve a maximum increase of
New-generation launched and products towards high
such as low energy 26% in electromagnetic power
high-power applied in efficiency low noise and
efficiency high noise density over 10% increase in
density motor bulk in the high reliability enhancing the
and low load capacity maximum load capacity and an
for residential Company's competitiveness of the
providing consumers 18% increase in silicon steel
air conditioners residential air Company's DC motor
with an energy-saving utilization.conditioners. products.comfortable and reliable
user experience.R&D of Mass- Develop integrated drive and
Optimize the Significantly enhances the
software for produced and control system optimization
performance of the product competitiveness of
SCARA robot applied to the technology to achieve GRS series
integrated drive and the Company's SCARA
integrated drive Company's position repeatability of
control system and robots meeting the demands
and control full range of ≤0.02mm and trajectory accuracy
upgrade software of industries such as 3C and
system based on SCARA of ≤1mm while integrating the
functions. semiconductor.conveyor chain robot development of core functions
382025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Expected Impact on the
Name of Major Project
Project Purpose Objectives to be Achieved Future Development of the
R&D Project Progress
Company
tracking products. such as the conveyor tracking
technology advanced software package and
MODBUS TCP.Develop a modular linear
motor with a peak thrust
Develop a three-axis feed linear Independently develop a
of 10000-20000 N to
motor for the FMD3020 machine water-cooled high-thrust
solve the problems of
tool: X-axis peak thrust 16200 linear motor for CNC machine
Water-cooled high cost and lack of The product
N max speed 1 m/s; Y/Z axes tools to replace foreign brands
linear motor for after-sales support for has been
peak thrust 12200 N max speed for application in the
CNC machine purchased linear motors launched on
1.33 m/s; continuous thrust 5560 Company's high-speed
tools used in the Company's the market.N and 4460 N respectively; machining centers achieving
large gantry machining
continuous speed 2 m/s for all self-sufficiency in the core
centers for high-speed
axes. component the linear motor.aluminum profiles for
new energy vehicles.Complete the development of
the first DC-powered
Develop the industry's Realize the development of a
integrated maglev compressor
first DC-powered maglev 200RT integrated maglev
to meet the cooling demands
DC-powered compressor product to The product compressor with 540V DC power
of new data centers with
integrated meet the cooling has been supply for the first time with a
energy storage and DC power
maglev demands of new data launched on power of 120 kW featuring soft
supply. It can be expanded for
compressor centers with energy the market. start self-power generation upon
application in new energy
storage and DC power power failure and fast restart
storage systems thereby
supply. upon power recovery.enhancing market
competitiveness.Company R&D personnel
2025 2024 Change Ratio
Number of R&D personnel
15947158000.93%
(persons)
Proportion of number of R&D
22.16%21.70%0.46%
personnel
Educational structure of R&D personnel
Bachelor 8273 8945 -7.51%
Master and above 1964 1809 8.57%
Age composition of R&D personnel
Under 30 6776 7686 -11.84%
30?40652160877.13%
R&D investment of the Company
Item 2025 2024 Change Ratio
Amount of R&D investment
6443600455.817139948094.03-9.75%
(CNY)
Proportion of R&D investment to
3.78%3.77%0.01%
the operating revenue
Capitalization amount of R&D
40865887.36235863112.11-82.67%
investment (CNY)
Proportion of capitalized R&D 0.63% 3.30% -2.67%
392025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
investment to R&D 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
5. Cash flow
Currency: CNY
Year-on-year
Item 2025 2024
Increase/Decrease
Subtotal of cash inflows from
201914775855.95179524300805.8712.47%
operating activities
Subtotal of cash outflows from
155531661101.93150155050235.213.58%
operating activities
Net cash flows from operating
46383114754.0229369250570.6657.93%
activities
Subtotal of cash inflows from
39773999640.5434854865752.7514.11%
investment activities
Subtotal of cash outflows from
88373499245.2650412775368.3275.30%
investment activities
Net cash flows from investment
-48599499604.72-15557909615.57-212.38%
activities
Subtotal of cash inflows from
87810461535.7674558134239.7017.77%
financing activities
Subtotal of cash outflows from
79204875445.9298261347147.86-19.39%
financing activities
Net cash flows from financing
8605586089.84-23703212908.16136.31%
activities
Net increase in cash and cash
6425502869.39-9773238106.29165.75%
equivalents
Description of the main factors affecting the significant year-on-year changes in relevant data
□Applicable □ Not applicable
1. The net cash flows from operating activities changed by 57.93% year-on-year mainly due to the increase in cash received from
selling goods and providing services and the increase in cash received from other operating activities.
2. The net cash flows from investing activities changed by -212.38% year-on-year mainly due to the increase in cash paid for
investments and the increase in cash paid for other investing activities.
3. Net cash flows from financing activities increased by 136.31% year-on-year mainly due to the decrease in cash paid to repay
borrowings and the increase in cash received from other financing activities.Reasons for significant differences between net cash flows from operating activities and net profit for the year during the report
period
□√ Applicable□Not Applicable
This was mainly affected by the expiration and recovery of restricted funds related to operating activities. For details please refer to
the Supplementary for Cash Flow Statement in Note V.71 of the Financial Statements in Section VIII.
402025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
At the End of 2025 At the beginning of 2025
Proportion
Item Proportion Proportion Significant ChangesIncrease or
Amount to Total Amount to Total DescriptionDecrease
Assets Assets
Monetary funds 110553006650.89 28.25% 113900461797.94 30.95% -2.70%
Accounts
15987180598.764.08%16831887388.064.57%-0.49%
receivable
Contract assets 399828954.57 0.10% 592399551.89 0.16% -0.06%
Inventory 28183464259.53 7.20% 27910910515.55 7.58% -0.38%
Investment real
360503333.850.09%464658386.200.13%-0.04%
estate
Long-term equity
4235017009.651.08%4355712251.541.18%-0.10%
investments
Fixed assets 34396429584.38 8.79% 36996168856.84 10.05% -1.26%
Construction in
1337977987.350.34%3076380868.800.84%-0.50%
progress
Usufruct assets 675889598.70 0.17% 789763790.64 0.21% -0.04%
The main reason for
the increase in short-
term borrowings in
Short-term this period is to meet
67956629538.5117.36%39009527273.2210.60%6.76%
borrowings the daily production
and operation
requirements of the
Company.Contract
15206576385.443.89%12491059928.533.39%0.50%
liabilities
Long-term
3134980571.730.80%18229817922.134.95%-4.15%
borrowings
Lease liabilities 652797306.31 0.17% 711291189.69 0.19% -0.02%
Overseas assets account for a relatively high proportion.□ Applicable □Not Applicable
412025 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 Fair Impairment
Losses From Purchase Amount
Beginning Value Changes Accrued in Sales Amount in the
Item Changes in Fair in the Current Other Changes Ending Amount
Amount Included in the Current Current Period
Value in the Period
Equity Period
Current Period
Financial assets
1. Trading financial
assets (excluding
16548258632.4984246918.6641267022021.1726506377754.55-56701714.7131336448103.06
derivative financial
assets)
2. Derivative financial
assets
3. Other debt
7016555220.76-8271467.8214946418.9421175000000.00-4120892398.5824062391354.36
investments
4. Other equity
3039588563.4641766516.28-773140682.11642470801.35-18886234.752419998043.64
instrument investments
5. Receivables financing 9600726284.77 6427334.45 -8844009.19 3111001746.19 6496151873.03
6. Other non-current
32358979.6056701714.7189060694.31
financial assets
7. Others 16939863177.24 24022321.44 -2017083.12 1652813080.00 16020000000.00 3712173599.94 6308872178.62
Subtotal of financial
53144991878.72180550602.61-769055355.4864094835101.1746279850302.09-427605033.3970712922247.02
assets
Total above 53144991878.72 180550602.61 -769055355.48 64094835101.17 46279850302.09 -427605033.39 70712922247.02
Financial liabilities 170740734.87 103864069.41 -1781713.10 65094952.36
422025 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 accrued interest.Whether there was any significant change in the measurement attributes of the Company's major assets during the report period
□ Yes□No
432025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
3. Restricted rights to assets at the end of the report period
Currency: CNY
End of Period
Item
Book Value Reason for Restriction
Monetary funds 10577592111.08 Required deposit reserve earnest moneyetc.Accounts receivable 5994524.68 Pledged
Receivables financing 3513771591.88 Pledged
Contract assets 120750.00 Pledged
Non-current assets due within one year 10470000000.00 Pledged
Other debt investments 7900000000.00 Pledged
Investment real estate 3977570.92 Pledged
Fixed assets 1515985697.50 Pledged
Intangible assets 675956994.18 Pledged
Other non-current assets 13300000000.00 Pledged
Total 47963399240.24
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)
61670145246.6942462983876.6945.23%
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
442025 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 Profits and
Accounting Book Value at the Losses From Purchase Amount
Securities Securities Securities Initial Investment Value Changes Sales Amount in Losses During Book Value at the Accounting Capital
Measurement Beginning of the Changes in Fair in the Current
Type Code Abbreviation Cost Included in the Current Period the Report End of the Period Items Source
Model Period Value in the Period
Equity Period
Current Period
Anxin Lixiang
Trading
No.1 Asset Measured at fair Own
Others - 4492878603.85 5042703508.92 51392542.07 520996563.25 59276583.23 4573099487.74 financial
Management value funds
assets
Plan
Stocks listed
Other
on domestic San'an
Measured at fair equity Own
and overseas 600703 Optoelectronic 2000000000.00 1394043525.29 224513172.52 -381443302.19 2290950.74 1618556697.81
value instrument funds
stock s
investments
exchanges
Xingyun
Trading
No.230 Asset Measured at fair Own
Others - 1500000000.00 1005828285.02 18629630.39 500000000.00 18629630.39 1524457915.41 financial
Management value funds
assets
Plan
Ruiying No.1
Trading
Asset Measured at fair Own
Others - 1000000000.00 10000000.00 1490214.59 990000000.00 1490214.59 1001490214.59 financial
Management value funds
assets
Plan
Ruiying No.2
Trading
Asset Measured at fair Own
Others - 1000000000.00 10000000.00 1302452.46 990000000.00 1302452.46 1001302452.46 financial
Management value funds
assets
Plan
452025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Profits and
Cumulative Fair Profits and
Accounting Book Value at the Losses From Purchase Amount
Securities Securities Securities Initial Investment Value Changes Sales Amount in Losses During Book Value at the Accounting Capital
Measurement Beginning of the Changes in Fair in the Current
Type Code Abbreviation Cost Included in the Current Period the Report End of the Period Items Source
Model Period Value in the Period
Equity Period
Current Period
Stocks listed
Other
on domestic
Measured at fair equity Own
and overseas 600745 WINGTECH 479105436.00 1193148603.36 -189216259.20 244600020.00 280226888.16 723705456.00
value instrument funds
stock
investments
exchanges
24 coupon-
Measured at fair Other debt Own
Bonds 240011.IB bearing bond 311454400.00 -459226.77 -459226.77 300000000.00 861099.64 311147237.58
value investments funds
11
16 coupon-
Measured at fair Other debt Own
Bonds 160017 bearing bond 288405500.00 311139682.20 -6443455.68 3362132.49 3140100.00 306059782.20
value investments funds
17
Ronghui
Zhouzhouxin Trading
Measured at fair Own
Others - No.1 Asset 300000000.00 324419.98 300000000.00 324419.98 300324419.98 financial
value funds
Management assets
Plan
Zunyu No.1 Trading
Measured at fair Own
Others - Fund Trust 303186263.44 2154789346.11 -11420663.61 692341021.17 2542018546.86 32993988.69 293691156.81 financial
value funds
Plan assets
Other securities investments held at the end
1046241921.96--6042078657.51-99860571.36-626562469.821100000000.006596254557.6367738383.90420065313.52----
of the period
Total 12721272125.25 -- 17163731608.41 -9747744.61 -760502846.29 4872341021.17 9939496555.90 188047823.62 12073900134.10 -- --
(2) Derivative investments
□Applicable □ Not applicable
462025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
1) Derivative investment for hedging purposes during the report period
□Applicable □ Not applicable
Unit: CNY10000
Proportion of the
Profits and Investment
Cumulative Fair Purchase
Initial Losses From Sales Amount Investment Amount at the End
Beginning Value Changes Amount
Derivatives Investments Type Investment Changes in Fair During the Amount at the of the Period to
Amount Included in During the
Amount Value in the Report Period End of the Period Net Assets at the
Equity Report Period
Current Period End of the Report
Period
Futures hedging contracts 2471.02 2471.02 3544.49 29.15 6015.51 0.04%
Forward financial contracts -17074.07 -17074.07 10386.41 -6509.50 -0.04%
Total -14603.05 -14603.05 13930.90 29.15 -493.99 0.00%
Description of whether there was
any significant change in the
accounting policies for hedging
business and specific principles No change
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 were CNY194957400 and that of forward financial contracts during the
losses during the report period report period was CNY-37033000.By engaging in bulk material futures hedging operations the Company fully utilizes the hedging function of the futures market to effectively control market
risks avoid or reduce losses caused by adverse changes in bulk material prices mitigate the impact of bulk material price fluctuations on the Company's
production and operation improve overall risk resilience enhance financial stability and promote the Company's healthy and stable development.Description of the hedging effect
By engaging in foreign exchange derivative transactions related to daily operational needs the Company reduces the ongoing risks of exchange rate or
interest rate fluctuations helps the Company better avoid and prevent market risks of foreign exchange and interest rate fluctuations and enhances the
Company's financial stability.Capital source of derivative
Own funds
investments
472025 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 business and clearly stipulate
the rights and obligations between the Company and its agents. 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 management system.Risk analysis and description of
2. Operational risks: Risks caused by imperfect internal processes staff operations systems etc. Control measures: The Company has formulated
control measures for derivative
corresponding management systems that clarified the division of responsibilities and approval process of hedging and foreign exchange fund trading
positions during the report period
business and a relatively perfect supervision mechanism to effectively reduce operational risks through risk control of business decision-making and
(including but not limited to
trading processes.market risks liquidity risks
3. Market risks: The uncertainty of commodity price changes and exchange rate fluctuations in the foreign exchange market leads to market risks in the
credit risks operational risks
futures business and foreign exchange fund trading business. Control measures: The Company's futures hedging business and foreign exchange fund trading
legal risks etc.)
business shall not engage in speculative transactions by adhering to the principle 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 the 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 exchange 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 derivatives The fair value change income of derivatives during the report period was CNY 139309000.disclosing the specific
methodology used and the
setting of relevant assumptions
and parameters
Involvement in lawsuits (if
Not applicable
applicable)
482025 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.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
X. Structured entities controlled by the Company
□ Applicable □Not Applicable
XI. Prospects for the future development of the Company
1. Company vision
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.
2. 2026 business plan
(1) Developing diverse markets and expanding development space
Building a new ecosystem for channel development. Closely aligning with product market demand strictly controlling product
positioning and supply rhythm to ensure coordinated development and beneficial complementarity between online and offline
channels. Continuously promoting the construction of "Dong Mingzhu Healthy Home" retail stores building a whole-house smart
health ecosystem display template enhancing scenario-based experiences improving store traffic attraction and conversion
capabilities and building a comprehensive multi-level channel operation system.Promoting a new diversified layout for home appliances. Accelerating the tiered development of home appliance stores
leveraging benchmark stores as models to lead and inspire implementing tiered management to optimize the channel structure and
building a healthy home appliance channel matrix featuring "top-tier leadership + mid-tier support." Focusing on core consumer
needs precisely positioning products accelerating innovation and iteration optimizing product mix continuously improving the
492025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
healthy product lineup enriching the categories of home appliances and enhancing product market competitiveness and market
coverage.Deeply exploring new growth points in the commercial market. Closely following national policy guidance precisely seizing
market opportunities in various renovation projects fully leveraging the Company's core technological advantages in fields such as
heat pump heating and strengthening technology-empowered market expansion. Systematically investigating the market
characteristics and operation patterns of existing projects extracting commercial solutions with GREE characteristics and rapidly
promoting them. Promoting the upgrading of key core commercial products systematically establishing demonstration projects
strengthening case publicity and exemplary leadership and enhancing the market influence and share of commercial products.Expanding a new blueprint for the international market. Based on the characteristics of different regional markets and product
type differences globally establishing price review and profit control mechanisms adapted to regional needs and continuously
improving the competitive advantage in the international market. Deepening localized operations in the international market
optimizing regional supply chain layout effectively reducing the adverse impacts of trade frictions improving response speed and
service efficiency to overseas markets further expanding overseas product coverage and creating a new blueprint for international
market development.Activating new potential of industrial products. Focusing on key industries and core customers in the industrial field promoting
benchmark R&D and market development of products in new fields driving quality and efficiency improvement in the industrial
segment and strengthening the overall competitiveness of the industrial segment.
(2) Strengthening quality risk prevention and improving quality control level
Improving the prevention mechanism. Strengthening the awareness of quality responsibility across the entire lifecycle for all
employees focusing on key components with high failure rates deeply carrying out failure analysis and special rectification work
and fundamentally solving quality pain points. Strengthening the selection access management and quality verification of core
components strictly controlling component quality to reduce potential quality risks at the source. Tightening new product review
standards and quality risk control processes comprehensively preventing the occurrence of mass quality problems and ensuring
stable and reliable product quality.Upgrading control methods. Increasing efforts to tackle inspection technologies systematically conducting research and
optimization of component reliability and life test standards and improving the whole-process quality inspection standard system.Building a unified integrated and scalable digital quality management platform breaking down quality data silos across the entire
chain of R&D production procurement and inspection enabling real-time monitoring precise analysis and efficient control of
quality data and promoting the upgrade of quality control towards digitalization and refinement.
(3) Deepening quality and efficiency improvement and empowering organizational effectiveness enhancement with artificial
intelligence
Deepening quality and efficiency improvement work to stimulate organizational vitality. Driven by the core concepts of
"business innovation organizational change and AI empowerment" innovating business process systems and organizational
management mechanisms promoting business unit restructuring and regional function integration and optimizing organizational
structure and operation models. Actively applying intelligent tools to solve business pain points and difficulties tapping into the
potential of per capita efficiency promoting company-wide efficiency improvement and achieving dual improvements in operational
efficiency and business quality.Strengthening the top-level design of digital transformation and promoting the implementation of intelligent applications.Focusing on the digital transformation strategy building a replicable and scalable intelligent application system constructing a multi-
agent collaborative system and promoting the deep integration of knowledge tools and business processes. Accelerating the large-
scale deployment of role-based intelligent assistants freeing up human resource potential guiding employees to engage in higher-
value work promoting the deep integration of digital transformation and business development and improving the level of intelligent
operations of the enterprise.
502025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(4) Strengthening the leadership of the Party building and consolidating development synergy
Standardizing the operation of Party organizations. Closely following the Company's production and operation reality
conducting solid training and education for Party members and the public in stages and levels consolidating the foundation of Party
members' ideals and beliefs and improving their comprehensive quality. Striving to build an organization with smooth upward and
downward communication and strong execution continuously promoting the standardization and normalization of Party branches
enhancing the cohesion and combat effectiveness of Party organizations and providing a strong organizational guarantee for the
Company's development.Strengthening exemplary leadership and deepening the synergy among the Party the labor union and the Youth League.Relying on selection activities such as "GREE Models" "Advanced Pacemakers" and "Most Beautiful Veterans" deeply discovering
and cultivating advanced models expanding the reserve strength for higher-level "recommendation for excellence" and leveraging
the exemplary and leading role of advanced models. Continuously deepening the synergy and linkage mechanism among the Party
labor union and Youth League creating Party building activities with GREE characteristics enriching employees' cultural life and
consolidating the synergy for enterprise development.
(5) Focusing on strengthening the foundation with talent and stimulating endogenous drive
Promoting the effective implementation of competitive selection and job rotation for grassroots management positions breaking
down position barriers and stimulating grassroots management vitality. For the four categories of talents (management technical
skilled and professional) establishing clear and smooth career development paths improving talent cultivation and incentive
mechanisms fully mobilizing the enthusiasm initiative and creativity of all types of talents and stimulating the enterprise's
endogenous drive.
(6) Strengthening internal control supervision and building a strong safety defense line
Improving the discipline inspection and supervision system to enhance supervision effectiveness. Continuously improving the
discipline inspection and supervision system promoting the integration and coordination between discipline inspection and
supervision and other types of supervision forming a synergy of supervision and continuously driving the quality and efficiency
improvement of supervision work. Gradually deepening data audit work closely aligning with key business and various internal
control system requirements expanding audit coverage strengthening the application of audit results and preventing operational
management risks.Carrying out solid safety management work and strengthening risk prevention and control. Building a smart security
management platform upgrading the security network system and further improving the group-level management of safety work.Deploying a monitoring and alarm system for branch core equipment building an out-of-band management private network
optimizing the operation and maintenance support system shortening the handling time for major faults comprehensively
strengthening the enterprise's security prevention and control capabilities and building a solid defense line for enterprise security
development.
3. Main risks to future development
(1) Risk of macroeconomic fluctuations
The current domestic and international economic environment is complex and volatile. A slowdown in macroeconomic growth and
increased external uncertainties will affect consumers' disposable income and confidence thereby impacting customers' demand for
and purchasing power of the Company's products. The Company will continue to closely track macro policies and economic trends
adhere to independent innovation and high-quality development continuously improve its intelligent manufacturing capabilities
flexibly adjust its business strategies and actively respond to the impact of macroeconomic fluctuations on the Company's operations.
(2) Risk of factor price fluctuations
The main raw materials for the company's products are copper steel aluminum and plastic of various grades. In recent years the
512025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
prices of raw materials such as copper and aluminum have continued to rise affecting the Company's profit margins. Leveraging
advantages such as large-scale procurement industry chain synergy and refined management the Company takes multiple measures
including hedging strategic stocking material standardization and generalization process cost reduction and technology substitution
to mitigate the impact of raw material price fluctuations on its operations.
(3) Risk of intensified market competition
The market competition in the home appliance sector is intense with market participants including domestic leading enterprises new
cross-industry players and international brands. Industry competition continues to intensify. If the Company fails to continuously
consolidate and expand its competitive advantages it will face the risk of losing market share. The Company will continue to
increase R&D investment consolidating its brand influence and market position through continuous technological innovation and
quality leadership.
(4) Risk of overseas markets
In recent years the global situation has been complex and volatile and risks may continue to rise adversely affecting the Company's
overseas market business. The Company will continue to strengthen its overseas market expansion optimize its overseas market
layout and focus on exploring emerging markets. At the same time due to significant differences in the humanistic environment
culture and religion legal systems and market demands in overseas markets market expansion faces numerous challenges. The
Company will continue to advance its brand self-reliance and operational localization strategies strengthen risk management and
control and enhance its global operation capabilities.
(5) Risk of exchange rate fluctuations
If the CNY exchange rate fluctuates significantly in the short term it may generate exchange gains or losses affecting the Company's
profitability and overseas business competitiveness. The Company will continue to strengthen its research and judgment of exchange
rate trends and risk exposure management improve its pricing and bargaining power for export products and reasonably utilize
financial instruments such as forward foreign exchange settlement and sale and foreign exchange options to effectively hedge against
exchange rate fluctuation risks and reduce exchange losses.XII. Activities such as reception of research communication and interviews during the report
period
□Applicable □ Not applicable
Main
Type of Contents
Time of Method of Reception Index of Basic Information of
Place of Reception Reception Discussed
Reception Reception Object Research
Object and Material
Provided
1. Visited the
company's headquarters
hi-tech showroom Please refer to the information
Zhuhai Gree Green disclosed by the Company on
Control Technology July 22 2025 on CNINFO
Xueqiu
July 21 Co. Ltd. and Zhuhai Company (http://www.cninfo.com.cn/ne
Field research Others Research
2025 Gree Electronic operations w/index) entitled Gree
Group
Components Co. Ltd. Electric Appliances Inc. of
2. Communication at Zhuhai: Investor Relations
the meeting room on Activity Record Form.the 5th floor of the
company's headquarters
June 30 Company Conference 2024 Annual Shareholders Company Please refer to the information
Others
2025 Room General Meeting of the operations disclosed by the Company on
522025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Main
Type of Contents
Time of Method of Reception Index of Basic Information of
Place of Reception Reception Discussed
Reception Reception Object Research
Object and Material
Provided
of Shareholders Company June 30 2025 on CNINFO
(http://www.cninfo.com.cn/ne
w/index) entitled Gree
Electric Appliances Inc. of
Zhuhai: Investor Relations
Activity Record Form.Please refer to the information
disclosed by the Company on
Network June 9 2025 on CNINFO
Quanjingwang:
June 9 platform for Company Company (http://www.cninfo.com.cn/ne
https://ir.p5w.net/c/000 Others
2025 online investors operations w/index) entitled Gree
651.shtml
communication Electric Appliances Inc. of
Zhuhai: Investor Relations
Activity Record Form.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
For details please refer to the Market Value Management System disclosed by the Company on CNINFO on October 31 2025.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
1. Deeply cultivating industries to lead a better life
The Company adheres to industry as its foundation continuously deepens its focus on the main air conditioning business and aims to
transform into a diversified technology-based global industrial group.During the report period the Company fully leveraged its core technology and perfect quality advantages to further clear the upgrade
path from "GREE Making Better Air Conditioners" to "GREE Making Better Electric Appliances". Its three consumer brands
GREE Tosot and Kinghome worked in synergy while its industrial brands Landa Kaibang and Xinyuan achieved continuous
breakthroughs.
2. Adhering to innovation and achieving fruitful R&D results
The Company adheres to the principles of "independent R&D of core technologies" and "unlimited R&D investment as needed"
improves its multi-level R&D system and builds a technological innovation system that is "enterprise-led market-oriented and
integrates industry academia and research". It focuses on tackling core technological challenges promoting product iteration and
upgrading and fostering high-quality industrial development. During the report period the Company achieved fruitful R&D results
532025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
winning numerous patent awards leading the formulation of multiple standards and implementing core technologies into practical
applications thereby continuously strengthening its core competitiveness.
3. Continuously paying high dividends and enhancing shareholder returns
The Company adheres to the philosophy of "rewarding shareholders and sharing development" and strictly implements the
requirements of the "Double Improvement of Quality and Return" action plan. Since its listing the Company's cumulative cash
dividends have exceeded CNY147.6 billion of which cumulative cash dividends since 2012 have exceeded CNY142.2 billion. Since
2020 the Company has repurchased approximately 617 million shares for a total amount of approximately CNY30 billion and has
cancelled approximately 414 million shares accounting for 6.89% of the total share capital before cancellation.
4. Enhancing information disclosure quality and deepening investor communication
The Company strictly follows the information disclosure principles of "truthfulness accuracy completeness timeliness and
fairness" continuously improving the effectiveness and transparency of information disclosure. At the same time guided by investor
needs it presents the Company's operating results development strategies and core values to investors in a multi-level multi-angle
and comprehensive manner through various channels such as performance briefings investor hotlines the Shenzhen Stock
Exchange's Interactive Easy platform and site visits.For details please refer to the Announcement on the Progress of the Implementation of the Action Plan for Double Improvement of
Quality and Return (Announcement No.: 2026-017) disclosed by the Company on April 29 2026 on designated information
disclosure media and CNINFO (http://www.cninfo.com.cn/new/index).
542025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section IV Corporate Governance Environment and Society
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 Shareholders' Meeting Board of Directors and the 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 safeguard the interests of investors
and the Company.Are there any significant differences between the actual state of corporate governance and the laws administrative regulations 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 regulations 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
552025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
IV. Directors supervisors and senior executives
1. Basic information
Number of Number of
Number of Shares Shares Other Number of
Reasons
Shares Held at Increased Decreased Shares Held for
Name Gender Age Position Employment Term StartStatus Date Term End Date the Beginning in the in the
Increase/ Increase
of the Period Current Current Decrease
at the End of
the Period or
(Shares) Period Period (Shares) (Shares) Decrease
(Shares) (Shares) of Shares
Dong
Mingzhu Female 71 Chairperson Incumbent 2012/05/25 2028/04/21 100798492 100798492
Dong
Mingzhu Female 71 President Resigned 2001/04/24 2025/04/22 100798492 100798492
Zhang
Wei Male 49 Director Incumbent 2019/01/16 2028/04/21 483328 483328
Zhang
Wei Male 49 President Incumbent 2025/04/22 2028/04/21 483328 483328
Zhang
Jundu Male 65 Director Incumbent 2012/05/25 2028/04/21
Director Incumbent 2025/04/22 2028/04/21
Shu Lizhi Male 56 Secretary of the 214719 214719
party committee Incumbent 2025/05/28
Shu Lizhi Male 56 Vice president Resigned 2020/12/26 2025/04/22 214719 214719
Zhong
Chengbao Male 40 Director Incumbent 2025/04/22 2028/04/21 171167 171167
Zhang Independent
Qiusheng Male 58 director Incumbent 2022/02/28 2028/04/21
Cheng
Ming Male 66
Independent
director Incumbent 2025/04/22 2028/04/21
Li Hongqi Male 63 Independentdirector Incumbent 2025/04/22 2028/04/21
Weng
Guomin Male 62
Independent
director Incumbent 2025/04/22 2028/04/21
Shao
Liguo Male 47
Employee
representative Incumbent 2025/11/24 2028/04/21 202287 202287
562025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Number of Number of
Number of Shares Shares Number of Reasons
Employment Term Start Shares Held at Increased Decreased
Other
Increase/ Shares Held
for
Name Gender Age Position Term End Date the Beginning in the in the at the End of IncreaseStatus Date of the Period Current Current Decrease the Period or
(Shares) Period Period (Shares) (Shares) Decrease
(Shares) (Shares) of Shares
director
Fang Vice president 2021/11/19 2028/04/21
Xiangjian Male 48 Executive vice Incumbent 809290 809290
president 2026/01/06
Liu Hua Male 49 Vice president Incumbent 2025/04/22 2028/04/21 371948 371948
Li
Shaobin Male 49 Vice president Incumbent 2025/04/22 2028/04/21 388434 388434
Hu
Yusheng Male 48 Vice president Incumbent 2025/04/22 2028/04/21 496033 496033
Wang Kai Male 46 Vice president Incumbent 2025/04/22 2028/04/21 767149 767149
Liao Male 52 Chief financialJianxiong officer Incumbent 2020/08/06 2028/04/21 307663 307663
Zhang Secretary of the
Zhouhu Male 42 Board of Incumbent 2025/01/10 2028/04/21 46081 46081Directors
Guo
Shuzhan Male 69 Director Resigned 2019/01/16 2025/04/22
Deng
Xiaobo Male 50 Director Resigned 2022/02/28 2025/04/22 427600
Deng
Xiaobo Male 50 Vice president Resigned 2020/12/26 2025/04/22 427600
Deng Secretary of the
Xiaobo Male 50 Board of Resigned 2020/12/26 2025/01/10 427600 UnknownDirectors
Liu Female 73 IndependentShuwei director Resigned 2019/01/16 2025/04/22
Wang Independent
Xiaohua Male 64 director Resigned 2019/01/16 2025/04/22
Ziwen Male 63
Independent
director Resigned 2019/01/16 2025/04/22
Total -- -- -- -- -- -- 105484191 0 0 0 105056591 --
572025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Whether there are cases of resignation of directors and senior executives during their term of office in the report period
□Yes □No
At the 25th Meeting of the 12th Board of Directors held on January 10 2025 the Company deliberated and approved the Proposal on
Changing the Secretary of the Board of Directors. Mr. Deng Xiaobo no longer serves as the Secretary of the Board of Directors of the
Company due to job responsibility adjustments. For details please refer to the Announcement on Changing the Secretary of the
Board of Directors (Announcement No.: 2025-002) disclosed by the Company on January 14 2025 on designated information
disclosure media and CNINFO (http://www.cninfo.com.cn/new/index).Changes in the Company's directors 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
Director and vice Resigned upon the
2025/04/22 Leadership transition
president expiration of the term
Deng Xiaobo
Secretary of the Board
Dismissal 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
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
Employee
Shao Liguo Elected November 24 2025 Elected
representative director
2. Employment situation
Professional background main work experience and current major responsibilities of the Company's current directors 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 president of the
Company.
582025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
She was successively elected as a member 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 and the first rotating chair of the UNDP
Commission on Sustainable Development.She was awarded the "National Model Worker" "National May 1 Labor Medal" "National March 8th Red Banner Pacesetter"
"Expert Enjoying 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 Personality
of the Year" for three times and was listed in Forbes "2019 World's Most Influential Women" 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 director and president of the Company.He joined Gree Electric Appliances Inc. of Zhuhai in 1999 and successively served as the head of GREE Electric Appliances
Pipeline Branch Material Supply Department Outsourcing and Purchasing Quality Management Department Enterprise
Management Department and Assistant President and served as Vice President of Zhuhai Gree Group Co. Ltd. from 2013 to 2020
served as a director of GREE Electric Appliances from January 2019 to now and has been serving as 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 Trading 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 and the Party Committee Secretary of the Company.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 and as the Party Committee Secretary of the
Company since May 2025.Mr. Zhong Chengbao a senior electrical engineer with a master's degree currently serves as a director.He was a "Young Top-notch Talent of Guangdong Special Support Plan" and Executive Deputy Director of "Guangdong Provincial
Key Laboratory of High-Performance Servo System Enterprises". He 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 of 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 institute the president of the research institute
assistant president and chief engineer. He has served as a director of the Company since April 2025.Mr. Zhang Qiusheng with a doctoral degree is a non-practicing member of the Chinese CPA. He currently serves as a professor at
the School of Economics and Management Beijing Jiaotong University the President of the National Academy of Transportation
Development and the Director of the China Enterprise M&A and Restructuring Research Center. He is an independent director of
the listed companies Gree Electric Appliances Inc. of Zhuhai CMST Development Co. Ltd. and Luoniushan Co. Ltd. and an
independent director of the non-listed companies Tianjin Lishen Battery Joint-stock Co. Ltd. and China Foreign Economy and Trade
Trust Co. Ltd.
592025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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 achievements in
Beijing.Mr. Cheng Ming with a doctoral degree currently serves as a Chief Professor at Southeast University the Director of Jiangsu
Provincial New Energy Vehicle Motor and Power System Engineering Laboratory and an independent director of Gree Electric
Appliances Inc. of Zhuhai Shandong Jindi Precision Machinery Technology Co. Ltd. and Suzhou LEOG Motors Technology Co.Ltd.He has worked at Southeast University since 1987 and successively served as the Dean of the School of Electrical Engineering of
Southeast University a member of the 10th Academic Committee of Southeast University and the Director of the Academic
Committee of the School of Electrical Engineering. He served as an independent director of Wuxi Xinje Electric Co. Ltd. from
January 2013 to December 2018 has served as an independent director of Shandong Jindi Precision Machinery Technology Co. Ltd.since January 2021 and has served as an independent director of Suzhou LEOG Motors Technology Co. Ltd. since November 2025.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 Ministry 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) the First Prize of Jiangsu
Science and Technology Progress Award in 2026 (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 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 and the
School of Economics of Zhejiang University.Mr. Shao Liguo a senior engineer with a master's degree currently serves as the employee representative director and assistant
president of the Company.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 (Hefei) Electric Appliances Co. Ltd. head of the
Equipment and Power Department and head of the Enterprise Management Department of the Company. From April 2025 to
November 2025 he served as the employee representative supervisor of the Company.
602025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Mr. Fang Xiangjian a senior engineer with a master's degree currently serves as the executive vice president of the Company.He served as an analyst and head of the department of the Incoming Materials Inspection Factory from July 2001 to June 2004 an
assistant manager vice manager and manager of the Incoming Materials Inspection Factory 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 and as the Executive Vice President of the Company since
January 2026.He has 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 has been recognized as a 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 Board of Directors of the Chinese Association of Refrigeration a member of the 5th Technical Committee of the China
Refrigeration and Air Conditioning Industry Association the Chairman of the 2nd Guangdong Provincial Standardization Technical
Committee for Refrigeration and Air Conditioning a member of the 7th Academic Committee and the Reliability Promotion
Committee of the China Association for Quality a professional member of the China Fire Protection Association and the Vice
President of the Guangdong Association for Quality among other social positions.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 a 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 deputy chief engineer of the Company since October 2017 and
as 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 of 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 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.
612025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
He has successively served as a technician and head of the Refrigeration Technology Institute and as the head assistant president
vice president and president of the Mechanical and Electrical Technology 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 led 5 national and provincial/ministerial-level projects and has won scientific and technological awards including the Second
Prize of the National Science and Technology Progress Award the Special Prize of Guangdong Science and Technology Award the
First Prize of Guangdong Science and Technology Award the Special Prize of the Technical Invention Award of the Chinese
Association of Refrigeration and the First Prize of the Technical Invention Award of China Machinery Industry Science and
Technology. He has been rated as a Young and Middle-aged Leading Talent in Scientific and Technological Innovation under the
National Ten Thousand Talents Plan an expert enjoying the Special Allowance of the State Council a recipient of the Outstanding
Engineer Youth Award and a recipient of the Top Ten Outstanding Inventors Award of Guangdong Province. He also serves as an
Executive Director of the China Electrotechnical Society Vice Chairman of the Maglev Technology and Vibration Control
Professional Committee of the Chinese Society for Vibration Engineering and Director of the Guangdong Provincial Key Laboratory
of High-speed Energy-saving Motor Systems.Mr. Wang Kai with a master's degree from the Criminal Investigation Police University of China currently serves as the vice
president of the Company.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 positions 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 the Company.He joined GREE in May 1993 and successively served as the head of the Financial Department of Gree (Chongqing) Electric
Appliances Co. Ltd. and the head of the Financial Department of Gree Electric Appliances Inc. of Zhuhai. He has served as the
chief financial officer and assistant president of the Company since August 2020.Mr. Zhang Zhouhu with a bachelor's degree currently serves as the secretary of the Board of Directors of the Company.He joined the Company in July 2007 and successively served as the head of the Financial Department of Gree (Wuhu) Electric
Appliances Co. Ltd. the head of the Financial 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 the
secretary of the Board of Directors of the Company since January 2025.Circumstances where the controlling shareholder and actual controller simultaneously serve as the Chairman and General Manager of
the listed company
□ Applicable □Not Applicable
Employment in Shareholders
□Applicable □ Not applicable
622025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Remuneration and
Name of Position Held at the Term End Allowance from the
Name of Shareholder Term Start Date
Incumbent Shareholder Date Shareholder
(Yes/No)
Jinghai Internet
Zhang Jundu Technology 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 Term End Allowance from
Term Start Date
Incumbent Companies Other Companies Date Other Companies
(Yes/No)
Zhuhai Gezhen
Investment
Dong Mingzhu Management Executive partner 2019/09/26 No
Partnership (Limited
Partnership)
Kingdee International
Non-executive
Dong Mingzhu Software Group Co. 2012/08/21 Yes
director
Ltd.Zhejiang Tongcheng
Zhang Jundu Gree Electric Chairperson 1999/09/01 Yes
Appliances Co. Ltd.Ningbo Tongcheng
Zhang Jundu Gree Electric Director 2013/07/01 No
Appliances Co. Ltd.Zhejiang Shengshi
Executive director
Zhang Jundu Xinxing Gree Trading 2017/01/01 Yes
and general manager
Co. Ltd.Wenzhou Tongcheng
Zhang Jundu Economic and Trade Director 2012/04/01 No
Co. Ltd.Huzhou Tongcheng
Zhang Jundu Gree Electric Director 2008/11/01 No
Appliances Co. Ltd.Zhejiang Gree Hengxin
Zhang Jundu Zhiyuan Trading Co. Manager July 25 2025 No
Ltd.Zhang Qiusheng Luoniushan Co. Ltd. Independent director October 21 2022 Yes
Tianjin Lishen Battery
Zhang Qiusheng Independent director 2021/12/25 Yes
Joint-stock Co. Ltd.CMST Development
Zhang Qiusheng Independent director 2022/10/01 Yes
Co. Ltd.China Foreign
Zhang Qiusheng Economy and Trade Independent director 2023/06/28 Yes
Trust Co. Ltd.Ningbo United Group
Weng Guomin Independent director May 10 2022 Yes
Co. Ltd.Great Microwave
Weng Guomin Independent director September 27 2020 Yes
Technology Co. Ltd.Cheng Ming Shandong Jindi Independent director January 20 2021 Yes
632025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Remuneration and
Name of Name of Other Position Held in Term End Allowance from
Term Start Date
Incumbent Companies Other Companies Date Other Companies
(Yes/No)
Precision Machinery
Technology Co. Ltd.Suzhou LEOG Motors
Cheng Ming Independent director November 26 2025 Yes
Technology Co. Ltd.Description of
incumbent in N/A
other companies
Penalties imposed by securities regulators on incumbent and resigned directors and senior executives of the Company during the
report period in the recent three years
□ Applicable □Not Applicable
3. Remuneration of directors and senior executives
The remuneration plan for directors of the Company is determined by the shareholders' meeting. When the Board of Directors or the
Remuneration and Appraisal Committee evaluates or discusses the remuneration of an individual director that director should recuse
themselves. The remuneration plan for senior executives of the Company is approved by the Board of Directors.(I) Remuneration program for directors
1. Remuneration program for non-independent directors
The remuneration of non-independent directors is differentiated based on whether they have an employment relationship with the
Company and whether they participate in the actual operation and management of the Company. The details are as follows:
(1) Non-independent directors who have an employment relationship with the Company (hereinafter collectively referred to as
"internal directors"): They receive remuneration based on their actual positions and work content in the Company and no separate
director allowance is paid. The remuneration of internal directors consists of base salary and performance pay among which the
proportion of performance pay should in principle not be less than 50% of the total of base salary and performance pay.
(2) Non-independent directors who do not have an employment relationship with the Company: They do not participate in the daily
operation and management of the Company and do not receive any remuneration or director allowance from the Company.
2. Remuneration program for independent directors
The remuneration of independent directors adopts a fixed allowance system with an allowance standard of CNY250000 per year per
person (pre-tax).(II) Remuneration program for senior executives
The remuneration of senior executives is aligned with market levels matches the Company's operating performance and individual
performance and is coordinated with the Company's sustainable development. The remuneration of the Company's senior executives
consists of base salary and performance pay among which the proportion of performance pay should in principle not be less than
50% of the total of base salary and performance pay.
Remuneration of directors and senior executives in the report period
Unit: CNY10000
Total Pre-tax Remuneration from
Name Gender Age Position Employment Remuneration Affiliated Parties ofStatus Received from the Company
the Company (Yes/No)
Dong
Mingzhu Female 71 Chairperson Incumbent 1293.48 Yes
Zhang Wei Male 49 Director & President Incumbent 776.09 No
642025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Total Pre-tax Remuneration from
Name Gender Age Position Employment Remuneration Affiliated Parties ofStatus Received from the Company
the Company (Yes/No)
Shu Lizhi Male 56 Director and secretary of the partycommittee Incumbent 323.37 No
Zhong
Chengbao Male 40 Director Incumbent 142.61 No
Zhang Jundu Male 65 Director Incumbent 0 Yes
Zhang
Qiusheng Male 58 Independent director Incumbent 23.39 No
Li Hongqi Male 63 Independent director Incumbent 16.94 No
Weng
Guomin Male 62 Independent director Incumbent 16.94 No
Cheng Ming Male 66 Independent director Incumbent 16.94 No
Shao Liguo Male 47 Employee representative director Incumbent 126.77 No
Fang
Xiangjian Male 48 Vice president Incumbent 646.74 No
Liu Hua Male 49 Vice president Incumbent 336.3 No
Li Shaobin Male 49 Vice president Incumbent 297.5 No
Hu Yusheng Male 48 Vice president Incumbent 336.3 No
Wang Kai Male 46 Vice president Incumbent 310.44 No
Liao
Jianxiong Male 52
Chief financial officer and
assistant president Incumbent 258.7 No
Zhang
Zhouhu Male 42 Secretary of the Board of Directors Incumbent 67.51 No
Guo
Shuzhan Male 69 Director Resigned 0 No
Deng Xiaobo Male 50 Director vice president secretaryof the Board of Directors Resigned 16.73 No
Liu Shuwei Female 73 Independent director Resigned 6.51 No
Wang
Xiaohua Male 64 Independent director Resigned 6.51 No
Xing Ziwen Male 63 Independent director Resigned 6.51 Yes
Total -- -- -- -- 5026.25 --
Note:
1. The remuneration amount of newly appointed and resigned directors and senior executives during the report period is the
remuneration amount they received during their tenure in the report period.
2. The total pre-tax remuneration received by Mr. Zhang Zhouhu Secretary of the Board of Directors from the Company includes
the deferred executive remuneration paid to him by the subsidiary DunAn Environment.Implemented in accordance with the Company's Remuneration
Assessment basis for the remuneration actually received by all Management System for Directors and Senior Executives and the
directors and senior executives at the end of the report period Remuneration Plan for Directors Supervisors and Senior
Executives.Completion status of the assessment for the remuneration
actually received by all directors and senior executives at the end Completed
of the report period
For directors and senior executives who receive remuneration
from the Company their 2025 remuneration consists of the 2025
Deferred payment arrangements for the remuneration actually base salary and the 2024 performance pay. Among which the
received by all directors and senior executives at the end of the base salary is paid monthly during the year while the
report period performance pay is paid after the annual report is disclosed
based on a comprehensive assessment of operating data other
KPIs and key performance events.Clawback and stop-payment situations for the remuneration
actually received by all directors and senior executives at the end N/A
of the report period
652025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Explanation of other situations
□ Applicable □Not Applicable
V. Performance of directors' duties during the report period
1. 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 attendances
Name of Meetings of Meetings of from
Requiring Board of Directors in at 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
Report Tools Two Times
Period (Yes/No)
Dong
6 2 4 0 0 No 3
Mingzhu
Zhang Wei 6 2 4 0 0 No 3
Zhang Jundu 6 1 5 0 0 No 2
Shu Lizhi 4 2 2 0 0 No 3
Zhong
4 2 2 0 0 No 2
Chengbao
Zhang
6 1 5 0 0 No 3
Qiusheng
Li Hongqi 4 1 3 0 0 No 2
Cheng Ming 4 1 3 0 0 No 2
Weng
4 1 3 0 0 No 2
Guomin
Guo Shuzhan 2 0 2 0 0 No 0
Deng Xiaobo 2 0 2 0 0 No 1
Liu Shuwei 2 0 2 0 0 No 1
Wang
2 0 2 0 0 No 1
Xiaohua
Xing Ziwen 2 0 2 0 0 No 1
Shao Liguo 0 0 0 0 0 No 2
2. 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.
3. 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 report period the directors of the Company took the best interests of the Company and shareholders as their code of
conduct faithfully performed their duties according to relevant regulations attended the meetings of the Board of Directors and
662025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
general meetings 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.VI. Specialized committees under the Board of Directors during the report period
Important
Number Other
Comments Details of
Name of of Date of Performa
Member Status Content of Meeting and Objection
Committee Meetings Convening nce of
Suggestions (if any)
Held Duties
Proposed
Zhang
Deliberated and approved the
Audit Qiusheng Shu
4 2025/04/22 Proposal on Appointing the Chief
Committee Lizhi Weng
Financial Officer of the Company
Guomin
Deliberation of the following
proposals:
1. 2024 Annual Report and its
Zhang Summary
Audit Qiusheng Shu 2. 2024 Financial Statements
42025/04/25
Committee Lizhi Weng 3. 2024 Internal Control Self-
Guomin evaluation Report
4. Proposal on the Proposed
Renewal of the Accounting Firm
5. 2025 First Quarter Report
Zhang
Deliberated and approved the
Audit Qiusheng Shu
4 2025/08/28 2025 Semi-annual Report and its
Committee Lizhi Weng
Summary
Guomin
Zhang
Audit Qiusheng Shu Deliberated and approved the
42025/10/30
Committee Lizhi Weng 2025 Third Quarter Report
Guomin
Deliberated and approved the
Remuneration Cheng Ming Li
Remuneration Plan for Directors
and Appraisal Hongqi Zhang 3 2025/04/25
Supervisors and Senior
Committee Wei
Executives
Deliberated and approved the
Remuneration Cheng Ming Li Proposal on Formulating the
and Appraisal Hongqi Zhang 3 2025/10/30 Remuneration Management
Committee Wei System for Directors and Senior
Executives
Remuneration Cheng Ming Li Deliberated and approved the
and Appraisal Hongqi Zhang 3 2025/12/26 Proposal on the 2024 Senior
Committee Wei Executive Remuneration Plan
Deliberated and approved the
Xing Ziwen
Proposal on Appointing Mr.Nominating Zhang
2 2025/01/10 Zhang Zhouhu as the Secretary
Committee Qiusheng Deng
of the Board of Directors of the
Xiaobo
Company
Deliberation of the following
Xing Ziwen
proposals:
Nominating Zhang
2 2025/02/24 1. The Proposal on the Re-
Committee Qiusheng Deng
election of the Board of Directors
Xiaobo
and the Nomination of
672025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Important
Number Other
Comments Details of
Name of of Date of Performa
Member Status Content of Meeting and Objection
Committee Meetings Convening nce of
Suggestions (if any)
Held Duties
Proposed
Candidates for Non-independent
Directors
2. The Proposal on the Re-
election of the Board of Directors
and the Nomination of
Candidates for Independent
Directors
Deliberated and approved the
Weng Guomin
Nominating Proposal on Appointing the
Li Hongqi 1 2025/04/22
Committee Company's Operation and
Zhang Wei
Management Personnel
VII. Work of the audit committee
Whether the Audit Committee identified any risks in the Company through its supervision activities during the report period
□ Yes□No
The Audit Committee has no objection to the supervision matters during the report period.VIII. Company's staff
1. Number of employees their specialties and education level
Number of on-the-job employees of the parent company at the end of the
18638
report period
Number of on-the-job employees of the main subsidiaries at the end of
53328
the report period
Total number of on-the-job employees at the end of the report period 71966
Total number of employees receiving salaries for the current period 71966
Number of retired employees for whom the parent company and main
497
subsidiaries need to bear expenses
Specialties
Category of specialties Number of employees of specialties
Manufacturing personnel 49684
Sales personnel 2378
Technical personnel 15947
Financial personnel 1092
Administrative personnel 2865
Total 71966
Educational background
Educational background Number of employees
Bachelor's degree or above 16735
College degree 14014
Technical secondary school and below 41217
Total 71966
682025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Remuneration policy
During the report period the Company attached great importance to employee rights protection optimized and adjusted remuneration
programs and continuously improved the position-based and performance-oriented remuneration mechanism. The Company
simultaneously deepened the reform of its wage system focused on enhancing the compensation competitiveness of core groups
built a multi-channel career development path based on professional grade assessment promoted employee capability improvement
and career development and provided strong support for talent echelon construction and organizational effectiveness enhancement.
3. Training plan
(1) Consolidating the talent cultivation system to empower talent development and organizational capability building
Deepening key thematic training to precisely empower talent development. Focusing on the four dimensions of strategy
implementation business development talent cultivation and cultural construction and based on the four-level training system
(company department section and individual) the Company systematically carried out training such as company-wide open courses
company-wide safety compliance and thematic training on key business areas. At the same time tiered training was implemented
focusing on key groups: the Company solidly implemented the class of 2025 university graduates induction training across the Group
organized high-standard university graduate induction ceremonies to help them quickly integrate into corporate culture and smoothly
transition to the workplace; launched the "Cornerstone Plan" supervisor training camp and the "Spark Plan" team leader training
camp combining "online general training + offline targeted training" to enhance training effectiveness and help frontline managers
achieve capability leapfrogging.Systematically promoting employee quality improvement and cultivating a profound corporate humanistic culture. Following the
thread of serialized thematic learning the Company organized and carried out three major theme activity series: "GREE · Walking
with the Times" "GREE · Light Chaser" and "GREE · Spiritual Harbor". By learning the spirit of role models interpreting current
political hotspots and conducting physical and mental health lectures employees were guided to improve their physical and mental
health. The Company innovatively carried out the 2025 military training competition implemented company-wide regular military
training strictly enforced discipline and tempered work style allowing military culture to truly transform into the organizational
temperament and long-term competitiveness of the enterprise.
(2) Solidifying the skilled talent development system focusing on shortage occupations and serving industrial upgrading
Leveraging policy advantages at all levels a systematic and multi-level skilled talent cultivation platform was built. The Company
obtained approval for the "Guangdong Province Artisan College" and key supporting projects of the All-China Federation of Trade
Unions and promoted the upgrading of training venues and equipment. For shortage occupations such as laboratory technicians and
refrigeration workers a distinctive training system was established practical training was continuously conducted and exchanges
with the Guangdong Provincial Federation of Trade Unions and other units were deepened to achieve resource sharing. Focusing on
the key construction project of Guangdong Province the "Industry-Education-Evaluation Skill Ecological Chain" a curriculum
system closely integrated with actual job requirements was developed and the application for skill evaluation qualifications for
professions such as compressor assembly and commissioning workers was completed.Implementing the Group-wide skilled talent cultivation plan the Company has continuously improved the skilled talent management
system supported by work permit/special certificate management vocational skills competitions and skilled worker grade
assessment thereby achieving information-based and digital management of critical positions across the Group. Throughout the year
the Company organized Group-level vocational skills competitions and while fulfilling its social responsibilities hosted the
Guangdong Province Welder Vocational Skills Competition. In accordance with the national "New Eight-Level Worker" standard
the Company revised its internal skill grade assessment system and completed the first pilot steadily advancing the assessment of
skilled workers and continuously consolidating the construction of the skilled talent team.
(3) Strengthening the cultivation of after-sales service skilled talents to support the Company's diversified and global business
development
692025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
In line with the Company's product diversification trend the Company built a core force of after-sales talents. First the Company
held after-sales technical exchange meetings for home appliances targeting after-sales backbone personnel of sales companies
systematically teaching technical courses for key product categories to enhance professional quality and practical ability. Second the
Company comprehensively carried out the certification of RAC after-sales technical instructors consolidated the first- and second-
level instructor system of sales companies and promoted the unified output and localized implementation of training. Third the
Company organized specialized technical training camps for commercial air conditioners conducting in-depth special training
focusing on key models. A post-training transmission mechanism was established where trained backbone personnel radiated and
promoted the knowledge learned to frontline engineers forming an efficient and synergistic empowerment model.Aligning with the Company's global strategic deployment the Company precisely empowered overseas business development. For
new air conditioner models exported to North America and Europe customized product training and empowerment were completed
for multiple agents; centralized overseas after-sales technical training sessions were held for overseas technical personnel featuring
theoretical teaching and practical demonstrations focusing on key overseas models. Relying on the training model of "online live
streaming + touring training delivery + factory intensive training" the Company deepened after-sales technical exchanges and brand
value transmission supporting the high-quality development of overseas business.
4. Labor outsourcing
□ Applicable □Not Applicable
IX. Profit distribution and conversion of capital reserves into share capital by the Company
Profit distribution policy during the report period especially the formulation implementation or adjustment of the cash dividend
policy
□Applicable □ Not applicable
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 5585138741 shares (total share capital 5601405741 shares less 16267000 shares held in the Company's
repurchase account) as the base for the implementation of equity distribution a cash dividend of CNY10 per 10 shares (tax inclusive)
was distributed to all shareholders without bonus shares or conversion of capital reserves into share capital totaling
CNY5585138741.00 distributed. This plan was completed on May 15 2025.On April 25 2025 the 2nd Meeting of the 13th Board of Directors deliberated and approved the 2024 Annual Profit Distribution
Plan. On June 30 2025 this plan was deliberated and approved by the 2024 Annual General Meeting of Shareholders as follows:
With 5585138741 shares (total share capital 5601405741 shares less 16267000 shares held in the Company's repurchase account)
as the base a cash dividend of CNY20 per 10 shares (tax inclusive) was distributed to all shareholders without bonus shares or
conversion of capital reserves into share capital totaling CNY11170277482.00. This plan was completed on August 29 2025.On October 30 2025 the 4th Meeting of the 13th Board of Directors deliberated and approved the 2025 Interim Profit Distribution
Plan. On November 24 2025 this plan was deliberated and approved by the 2nd Extraordinary General Meeting of Shareholders in
2025 as follows: With 5585138741 shares (total share capital 5601405741 shares less 16267000 shares held in the Company's
repurchase account) as the base a cash dividend of CNY10 per 10 shares (tax inclusive) was distributed to all shareholders without
bonus shares or conversion of capital reserves into share capital totaling CNY5585138741. This plan was completed on January 23
2026.
Since its listing the Company's cumulative cash dividends have exceeded CNY147.6 billion of which cumulative cash dividends
since 2012 have exceeded CNY142.2 billion. The cash dividend distribution proportion of the Company 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
702025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 resolutions of the general
Yes
meeting of shareholders observed
Are the dividend distribution criteria and ratio clear and distinct Yes
Are the relevant decision-making procedures and mechanisms complete Yes
Do the independent directors perform their duties and play their due roles Yes
If the Company does not distribute cash dividends please specify the reasons and
Not applicable
the measures to be taken to enhance investor returns:
Do the minority shareholders have the opportunity to fully express their opinions
Yes
and demands and are their legitimate rights and interests adequately protected
Are the conditions and procedures compliant and transparent if the cash dividend
Not applicable
policy is adjusted or changed
The Company is profitable during the report period and the parent company has positive profit available for distribution to
shareholders without the cash dividend distribution plan proposed
□ Applicable □Not Applicable
Profit distribution and conversion of capital reserves into share capital during the report period
□Applicable □ Not applicable
Number of bonus shares per ten shares (shares) 0
Dividends per 10 shares (CNY) (tax inclusive) 20
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) 0.00
Total cash dividends (including other means) (CNY) 11170277482.00
Distributable profits (CNY) 88942600059.64
Proportion of total cash dividends (including other means) to total profit distributed 100%
Current cash dividend
If the Company is in a maturity stage and there are no significant capital expenditure arrangements the cash dividends in the current
profit distribution shall account for at least 80% of the profit distribution.Detailed description of plan for profit distribution or conversion of capital reserves into share capital
The Company's 2025 profit distribution plan is as follows: With the total share capital entitled to profit distribution rights at the time
of disclosure of this profit distribution plan of 5585138741 shares (total share capital of 5601405741 shares less 16267000
shares held in the Company's repurchase account) as the base the Company plans to distribute a cash dividend of CNY20 per 10
shares to all shareholders (tax inclusive) without bonus shares or conversion of capital reserves into share capital totaling
CNY11170277482.00 of cash dividends distributed and the remaining undistributed profits will be carried forward for distribution
in future years. 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.
712025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
X. 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
□Applicable □ Not applicable
All valid employee stock ownership plans during the report period
Proportion
to the total
Source of funding
Scope of Number of Total Number of Shares share
Changes for implementation
Employees Employees Held (Shares) capital of
of the plan
listed
companies
During the report period due to the
Legal remuneration
rescission or termination of labor
of employees and
Phase III relations between some holders and
self-financing funds
Employee the Company they no longer
obtained through
Stock 5141 63195095 qualified for the employee stock 1.13%
other means as
Ownership ownership plan resulting in
permitted by laws
Plan changes in the total number of
and administrative
holders and the shares held by
regulations.some holders.Shareholdings of Directors and Senior Executives in the employee stock ownership plan during the report period
According to the Company's Phase III Employee Stock Ownership Plan (Draft) the share scale of the Phase III Employee Stock
Ownership Plan does not exceed 79462095 shares of which the subscription amount for the then directors supervisors and senior
executives does not exceed 23838629 shares.Changes in asset management institutions during the report period
□ Applicable □Not Applicable
Changes in equity during the report period due to disposal of shares by holders etc.□√ Applicable□Not Applicable
Exercise of shareholders' rights during the report period
722025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
During the report period the Phase III Employee Stock Ownership Plan participated in the voting of the Company's 1st
Extraordinary General Meeting of Shareholders in 2025 the 2024 Annual General Meeting of Shareholders and the 2nd
Extraordinary General Meeting of Shareholders in 2025.Other relevant circumstances and explanations of the employee stock ownership plan during the report period
□√ Applicable□Not Applicable
Change in members of the Employee Stock Ownership Plan Management Committee
□Applicable □ Not applicable
On April 14 2025 the Company held the first holders' meeting of the Phase III Employee Stock Ownership Plan by means of
communication vote deliberating and approving the Management Measures for the Phase III Employee Stock Ownership Plan of
Gree Electric Appliances Inc. of Zhuhai and the Proposal on Electing the First Management Committee Members of the Phase III
Employee Stock Ownership Plan electing Ms. Zhao Mengmeng Ms. Shen Yu and Ms. Liu Yanzi as the first management
committee members of the Phase III Employee Stock Ownership Plan for a term of 3 years.Financial impact of employee stock ownership plan on listed companies and related accounting treatment during the report period
□Applicable □ Not applicable
In accordance with the provisions of the Accounting Standards for Business Enterprises No. 11 — Share-based Payment the total
expenses recognized by the Company's Phase III Employee Stock Ownership Plan amounted to CNY1446182575.49.Termination of employee stock ownership plan during the report period
□ Applicable □Not Applicable
3. Other employee incentive measures
□ Applicable □Not Applicable
XI. Establishment and implementation of the internal control system during the report period
1. Construction and implementation of internal control
During the report period the Company established improved and effectively implemented internal control in accordance with the
provisions of the internal control system. The Board of Directors of the Company is responsible for the formulation and effective
implementation of the Company's internal control system and the management is responsible for organizing and leading the daily
operation of the enterprise's internal control. The Company has maintained effective internal control over financial reporting in all
material respects in accordance with the requirements of the enterprise internal control standard system and relevant regulations and
there are no material weaknesses in internal control over financial reporting. The objective of internal 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 realization of development strategies.□ Yes□No
2. Details of significant deficiencies in internal control identified during the report period
□ Yes□No
732025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
XII. Management and control of the subsidiaries during the report period
□ Applicable □Not Applicable
XIII. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
Date of disclosure of the full internal
April 29 2026
control evaluation report
Index of disclosure of the full internal For details please refer to the 2025 Internal Control Evaluation Report disclosed on
control evaluation report CNINFO.Proportion of the total assets of
companies included in the scope of
evaluation to the total assets in the 90.00%
Company's consolidated financial
statements
Proportion of the revenue of companies
included in the scope of evaluation to the
90.00%
revenue in the Company's consolidated
financial statements
Deficiency identification criteria
Category Financial statements Non-financial statements
For details please refer to the 2025 For details please refer to the 2025
Internal Control Evaluation Report of Internal Control Evaluation Report of
Gree Electric Appliances Inc. of Zhuhai Gree Electric Appliances Inc. of Zhuhai
Qualitative criteria
disclosed by the Company on CNINFO disclosed by the Company on CNINFO
(http://www.cninfo.com.cn/new/index) on (http://www.cninfo.com.cn/new/index) on
April 29 2026. April 29 2026.For details please refer to the 2025 For details please refer to the 2025
Internal Control Evaluation Report of Internal Control Evaluation Report of
Gree Electric Appliances Inc. of Zhuhai Gree Electric Appliances Inc. of Zhuhai
Quantitative criteria
disclosed by the Company on CNINFO disclosed by the Company on CNINFO
(http://www.cninfo.com.cn/new/index) on (http://www.cninfo.com.cn/new/index) on
April 29 2026. April 29 2026.Number of significant deficiencies in the
0
financial statements
Number of significant deficiencies in the
0
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
The internal control audit firm believes that Gree Electric Appliances Inc. of Zhuhai has maintained effective internal control over
financial reporting in all significant aspects as of December 31 2025 in accordance with the Basic Standard for Enterprise Internal
Control and relevant regulations.
742025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Deliberation opinion in the internal control audit report
Disclosure of internal control audit report Disclosed on CNINFO
Date of disclosure of full internal control audit
April 29 2026
report
Index of disclosure of the full internal control For details please refer to the 2025 Internal Control Audit Report disclosed on
audit report CNINFO.Type of internal control audit report opinions Standard unqualified opinion
Are there any significant deficiencies in the non-
No
financial statements
Does the accounting firm issue an internal control audit report with non-standard opinions
□ 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
Whether a non-standard internal control audit opinion was issued during the report period or the previous year
□ Yes□No
XIV. Rectification of self-inspection issues in the special governance of listed companies
Not applicable
XV. Environmental information disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental
information in accordance with the law
□Yes □No
Number of enterprises included in the list of
enterprises required to disclose environmental 9
information in accordance with the law
Query index for the Environmental Information Disclosure Report in accordance
S/N Name of Enterprise
with the law
https://gdee.gd.gov.cn/gdeepub/front/dal/report/listentName=%E6%A0%BC%E5
Gree Electric Appliances Inc. of
1 %8A%9B%E7%94%B5%E5%99%A8&reportType=&areaCode=&entType=&re
Zhuhai
portDateStartStr=&reportDateEndStr=
https://39.145.37.16:8081/zhhb/yfplpub_html/#/searchPagekeyWord=%E6%A0
Gree (Hefei) Electric Appliances Co. %BC%E5%8A%9B%E7%94%B5%E5%99%A8%EF%BC%88%E5%90%88%E
2
Ltd. 8%82%A5%EF%BC%89%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B
8&hy=%5B%5D
http://219.152.238.198:20041/eps/index/enterprise-
Gree (Chongqing) Electric
3 morecode=91500107709410891J&uniqueCode=a2148efff4f01f7e&date=2025&t
Appliances Co. Ltd.ype=true&isSearch=true
https://39.145.37.16:8081/zhhb/yfplpub_html/#/companyDetailsname=%E6%A0
Gree (Wuhu) Electric Appliances %BC%E5%8A%9B%E7%94%B5%E5%99%A8%EF%BC%88%E8%8A%9C%
4
Co. Ltd. E6%B9%96%EF%BC%89%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%
B8&entpId=20251744965055206&type=1
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfoXTX
Gree (Wuhan) Electric Appliances
5 H=fa3849bd-a2c7-4376-9e88-
Co. Ltd.
1af8c0f7b84a&XH=1677751295996009244672&year=2025
6 Gree (Zhengzhou) Electric http://222.143.24.250:8247/enpInfo/enpOverviewenterId=914101005610233170
752025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Appliances Co. Ltd. 002C
Gree (Shijiazhuang) Electric http://121.29.48.71:8080/#/fill/detailenpId=653D8B58-3825-4156-A906-
7
Appliances Co. Ltd. 342C7EBF37B4&year=2025
https://yfpl.sthjt.hunan.gov.cn:8181/hnyfpl/frontal/index.html#/home/enterpriseInf
Gree Changsha HVAC Equipment
8 oXTXH=f26a75b0-7e3c-4ceb-977a-
Co. Ltd.d221dbb1d6a8&XH=1714297449717082034688&year=2025&reportType=1
Gree (Luoyang) Electric Appliances http://222.143.24.250:8247/enpInfo/enpOverviewenterId=91410300MA451RM3
9
Co. Ltd. 2P001Q
XVI. Social responsibility
In 2025 the Company actively fulfilled its responsibilities in environmental protection social responsibility and corporate
governance especially in sustainable supply chains addressing climate change and safeguarding the rights and interests of
stakeholders continuously striving to fulfill the mission of promoting sustainable development in the industry. (For details please
refer to the 2025 Environmental Social and Governance (ESG) Report published by the Company on CNINFO on April 29 2026.)
XVII. Consolidation and expansion of achievements in poverty alleviation and rural
revitalization
N/A
762025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section V Important Matters
I. Fulfillment of commitments
1. Commitments fulfilled by the actual controller(s) shareholders related parties acquirers and the Company within the report period and commitments
not yet fulfilled by the end of the report 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
Zhuhai
Xianying and Zhuhai Yuxiu make the following commitments: (I) Ensuring asset
Mingjun
independence and completeness of the listed company: 1. Gree Electric Appliances will
Investment
possess the relevant production system auxiliary production system and supporting facilities
Partnership
for its business operations have the right to own or use the land workshop machines and
(Limited
facilities relating to its business operations as well as its trademarks patent technologies and
Partnership);
know-how and have an independent purchase system of raw materials and sales system of
Commitments in Zhuhai Maintaining the
products. 2. GREE Electric Appliances will have independent and complete assets and all of its
the acquisition Xianying independence Long-term
assets will be independently controlled owned and operated by GREE Electric Appliances. 3. 2019/12/02 In progress
report or equity Equity of listed effective
Zhuhai Mingjun and other enterprises under its control will not illegally occupy or use the
change report Investment companies
assets of GREE Electric Appliances in any way or provide a guarantee for the debts of Zhuhai
Partnership
Mingjun and other enterprises under its control with GREE Electric Appliances' assets. (II) To
(Limited
ensure the independence of the personnel of the listed company: 1. To ensure that the labor
Partnership);
personnel and remuneration management of GREE Electric Appliances is completely
Zhuhai Yuxiu
independent from its affiliated enterprises. 2. The recommendation of directors supervisors
Investment
and senior 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
772025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Reason for Commitment Commitment Commitment Commitment
Commitment Content Fulfillment
Commitment Party Type Date Period
shareholders of GREE Electric Appliances. (III) To ensure the financial independence of the
listed company: 1. To ensure that GREE Electric Appliances will establish an independent
financial department and an independent financial accounting system and will have 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) To ensure the independence of units of the
listed company: 1. To ensure that 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) To ensure the business independence of the listed company: 1. To ensure
that GREE Electric Appliances will have the assets personnel qualification and ability 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: In order to avoid horizontal
Commitments in
Mingjun Avoiding competition with the listed company Zhuhai Mingjun Zhuhai Xianying and Zhuhai Yuxiu
the acquisition Long-term
Investment horizontal make the following commitments: 1. The enterprise and other enterprises controlled by the 2019/12/02 In progress
report or equity effective
Partnership competition enterprise the controlling shareholder and the actual controller of the enterprise will not
change report
(Limited engage in the same or similar business as GREE and its subsidiaries in a direct or indirect
782025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Reason for Commitment Commitment Commitment Commitment
Commitment Content Fulfillment
Commitment Party Type Date Period
Partnership); manner in the future so as to avoid constituting direct or indirect business competition with the
Zhuhai business of GREE and its subsidiaries. 2. If other enterprises under the control of the enterprise
Xianying expand their business scope they will take all possible measures to avoid horizontal
Equity competition with GREE Electric Appliances and its subsidiaries on the principle of giving
Investment priority to safeguarding the rights and interests of GREE Electric Appliances. 3. If GREE
Partnership Electric Appliances and its subsidiaries or related regulatory authorities determine that the
(Limited enterprise and other enterprises under its control are engaging in or will engage in any business
Partnership); that constitutes horizontal competition with GREE Electric Appliances and its subsidiaries the
Zhuhai Yuxiu enterprise will give up or urge the enterprise's direct or indirect holding company to give up
Investment any business or business opportunities that may result in horizontal competition or urge such
Co. Ltd. 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 Regulating Related Transactions: In order to protect the interests of
Zhuhai
public shareholders and maintain the sustainable and healthy development of the listed
Mingjun
company Zhuhai Mingjun Zhuhai Xianying and Zhuhai Yuxiu make the following
Investment
commitments: 1. To ensure the related transactions between the enterprise and other enterprises
Partnership
controlled by the enterprise and GREE Electric Appliances in the future will be conducted in
(Limited
fair and in accordance with the normal code of business conduct; the enterprise commits to
Partnership);
further regulate the related transactions with GREE Electric Appliances and its subsidiaries. 2.Commitments in Zhuhai
Standardizing The enterprise will perform its obligations as a shareholder of GREE Electric Appliances in
the acquisition Xianying Long-term
the affiliated good faith and goodwill and for affiliated transactions that cannot be avoided or exist on 2019/12/02 In progress
report or equity Equity effective
transactions reasonable grounds it will sign a standard affiliated transaction agreement with GREE Electric
change report Investment
Appliances in accordance with the law and perform the approval procedures in accordance
Partnership
with relevant laws regulations rules regulatory documents and the Articles of Association;
(Limited
the price of affiliated transactions will be determined according to fair and reasonable market
Partnership);
prices and the price of affiliated transactions will be fair; it will perform the information
Zhuhai Yuxiu
disclosure obligations of affiliated transactions in accordance with relevant laws regulations
Investment
and the Articles of Association; it will not illegally transfer the funds and profits of GREE
Co. Ltd.Electric Appliances or damage the interests of GREE Electric Appliances and affiliated
792025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Reason for Commitment Commitment Commitment Commitment
Commitment Content Fulfillment
Commitment Party Type Date Period
shareholders through affiliated transactions. 3. The enterprise and other enterprises under its
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 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
Commitments in Maintaining the provide a guarantee for the debts of Zhuhai Mingjun and other enterprises under its control
the acquisition Dong independence with GREE Electric Appliances' assets. (II) To ensure the independence of the personnel of the Long-term
2019/12/02 In progress
report or equity Mingzhu of listed listed company: 1. To ensure that the labor personnel and remuneration management of GREE effective
change report companies Electric Appliances is completely independent from its affiliated enterprises. 2. The
recommendation of senior executives to GREE Electric Appliances will be made through legal
procedures. (III) To ensure the financial independence of the listed company: 1. To ensure that
GREE Electric Appliances will establish an independent financial department and an
independent financial accounting system and will have 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) To ensure the independence of units of the listed company: 1. To ensure that GREE
802025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Reason for Commitment Commitment Commitment Commitment
Commitment Content Fulfillment
Commitment Party Type Date Period
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) To
ensure the business independence of the listed company: 1. To ensure that GREE Electric
Appliances will have the assets personnel qualification and ability to carry out business
activities independently and will have the ability to operate independently and continuously in
the market. 2. 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 in a direct or indirect
manner in the future so as to avoid possible direct or indirect business competition with GREE
Electric Appliances and its subsidiaries. 2. If other enterprises under my control expand their
Commitments in business scope they will take all possible measures to avoid horizontal competition with
Avoiding
the acquisition Dong GREE Electric Appliances and its subsidiaries on the principle of giving priority to Long-term
horizontal 2019/12/02 In progress
report or equity Mingzhu safeguarding the rights and interests of GREE Electric Appliances. 3. If GREE Electric effective
competition
change report Appliances and its subsidiaries or related regulatory authorities determine that I and other
enterprises under my control are engaging in or will 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
812025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Reason for Commitment Commitment Commitment Commitment
Commitment Content Fulfillment
Commitment Party Type Date Period
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.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
Commitments in the law and perform the approval procedures in accordance with relevant laws regulations
Standardizing
the acquisition Dong rules regulatory documents and the Articles of Association; the price of affiliated transactions Long-term
affiliated 2019/12/02 In progress
report or equity Mingzhu will be determined according to fair and reasonable market prices and the price of affiliated effective
transactions
change report 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
Zhuhai GREE Electric Appliances within the scope of its authority upon completion of the transfer and
Commitments in Mingjun that there will be no significant changes in the governance structure of GREE Electric
the acquisition Investment Other Appliances. 2. The Transferee commits not to initiate any suggestion or proposal to relocate Long-term
2019/12/02 In progress
report or equity Partnership commitments the headquarters and registered office of GREE Electric Appliances from Zhuhai during the effective
change report (Limited period of direct or indirect shareholding of GREE Electric Appliances and to actively urge all
Partnership) parties to ensure that the headquarters and registered office of GREE Electric Appliances will
not be relocated from Zhuhai; and if any shareholder proposes any suggestion or proposal to
822025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Reason for Commitment Commitment Commitment Commitment
Commitment Content Fulfillment
Commitment Party Type Date Period
relocate the headquarters and registered 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 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
Zhuhai Gree During the period of holding shares of GREE Electric Appliances the Company will fully being a
Other
Other commitments Group Co. assume all reasonable expenses and economic losses (if any) incurred by GREE Electric 2019/06/14 shareholder In progress
commitments
Ltd. Appliance due to the Company's termination of the residual equity incentive plan. of GREE
Electric
Appliances
Are commitments
Yes
fulfilled on time
If commitments are
not fulfilled within
the deadline
specify the reason
Not applicable
for fulfillment
failure and the
work plan for the
next step
832025 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 report period is still in the earnings
forecast period
□ Applicable □Not Applicable
3. Company's performance commitments
□ 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 report period of the
Company.III. Violation of external guarantees
□ Applicable □Not Applicable
The Company has no violation of external guarantees during the report 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 and independent directors (if any) on the Non-
standard Audit Report of the accounting firm during the report 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
During the report period the Company had no changes in accounting policies or accounting estimates nor any corrections of
significant accounting errors.VII. Description of changes in the consolidated statement scope compared to the previous
year's financial statements
□Applicable □ Not applicable
For changes in the scope of consolidation during the report period please refer to Note VI Change in the Consolidation Scope in the
Financial Statements in Section VIII.
842025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
VIII. Appointment and dismissal of accounting firms
Accounting firm currently appointed
Union Power Certified Public Accountants (Special General
Name of domestic accounting firm
Partnership)
Remuneration for the domestic accounting firm (CNY10000) 396
Consecutive years for the domestic accounting firm to render
11 years
audit service
Name of certified public accountants of the domestic accounting
Qiu Yiwu Wu Xiafei
firm
Consecutive years for certified public accountants of the
5 years and 1 year
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 report period the Company engaged Union Power Certified Public Accountants (Special General Partnership) as the
internal control audit firm and paid a total of CNY1 million in internal control audit fees.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 report period.XI. Major legal action or arbitration
□ Applicable □Not Applicable
The Company was not involved in any major legal action or arbitration during the report period.XII. Punishment and rectification
□ Applicable □Not Applicable
The Company was not involved in any punishment or rectification during the report period.XIII. Integrity status of the Company and its controlling shareholder(s) and actual
controller(s)
□ Applicable □Not Applicable
852025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
XIV. Significant affiliated transactions
1. Affiliated transactions associated with day-to-day operation
□Applicable □ Not applicable
Pricing
Amount of Proportion Approved Approved Settlement Available
Parties to Type of Content of Principles Price of
Affiliated to Amount Transaction Limit Method of Market Price Date of Disclosure
Affiliated Association Affiliated Affiliated for Affiliated
Transactions of Similar Amount Exceeded Affiliated of Similar Disclosure Index
Transactions Transactions Transactions Affiliated Transactions
(CNY10000) Transactions (CNY10000) (Yes/No) Transactions Transactions
Transactions
Disclosed in
the
Company
Determined Announcement
Zhejiang where
through the on the Estimate
Shengshi directors of
negotiation Payment of Daily
Xinxing the Sale of Sale of
between the Market price 399802.57 2.60% 800000.00 No before Market price 2025/04/28 Related Party
Gree Company goods products
two parties delivery Transactions
Trading Co. act as
based on the (Announcemen
Ltd. executive
market price t No.: 2025-
directors
021) on
CNINFO
Total -- -- 399802.57 -- 800000.00 -- -- -- -- --
Details of large-amount sales return Not applicable
Actual fulfillment (if any) during the report period
when the total amount is estimated by category for the
Transactions are conducted within the approved limit.daily affiliated transaction that will incur in the current
period
Cause for the large difference between transaction price
Not applicable
and market reference price (if applicable)
862025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Affiliated transactions of acquisition or sales of assets or equity
□ Applicable □Not Applicable
The Company was not involved in any affiliated transaction of acquisition or sales of assets or equities during the report period.
3. Affiliated transactions of common foreign investment
□ Applicable □Not Applicable
The Company was not involved in any affiliated transactions of joint foreign investment during the report period.
4. Affiliated credits and liabilities
□ Applicable □Not Applicable
The Company was not involved in any affiliated credits or debts during the report period.
5. Transactions with finance companies with which the Company with association
□ 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
Beginning
Affiliated Maximum Deposit Total Amount Total Amount
Ending
Association Balance Balance
Parties Deposit Limit Interest Rate Deposited in Withdrawn in
(CNY10000)
(CNY10000) the Current the Current
(CNY10000)
Period Period
(CNY10000) (CNY10000)
Companies
held by
Zhejiang directors of
Tongcheng the Company
Gree Electric or where a 1.08 0.00 1.08 0.00
Appliances director of
Co. Ltd. the Company
acts as board
chairman
7. Other significant affiliated transactions
□ Applicable □Not Applicable
The Company was not involved in other significant affiliated transactions during the report period.
872025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 report period.
(2) Contracting
□ Applicable □Not Applicable
The Company was not involved in any contracting during the report period.
(3) Lease
□ Applicable □Not Applicable
The Company was not involved in any lease during the report period.
882025 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)
Fulfill
Disclosure Date of ment Guarantee for
Actual Date Actual Counter-
the Announcement Guarantee Guarantee Collateral Guarantee Compl Affiliated
Object of Guarantee of Guarantee guarantee (if
Related to the Amount Type (if any) Period eted Parties
Incurrence Amount any)
Guarantee Amount (Yes/N (Yes/No)
o)
Guarantee of the Company to its subsidiaries
Fulfill
Disclosure Date of ment Guarantee for
Actual Date Actual Counter-
the Announcement Guarantee Guarantee Collateral Guarantee Compl Affiliated
Object of Guarantee of Guarantee guarantee (if
Related to the Amount Type (if any) Period eted Parties
Incurrence Amount any)
Guarantee Amount (Yes/N (Yes/No)
o)
Gree (Hefei) Electric
2025/04/28 2400000 79138.85 Pledged Note pool N/A No
Appliances Co. Ltd.Zhuhai Gree Intelligent
2025/04/28 2400000 15066.27 Pledged Note pool N/A No
Equipment Co. Ltd.Gree CNC Machine
Tool Research Institute 2025/04/28 2400000 15002.76 Pledged Note pool N/A No
Co. Ltd. of Zhuhai
Gree (Ganzhou) Electric
2025/04/28 2400000 11778.97 Pledged Note pool N/A No
Appliances Co. Ltd.Zhuhai Gree Mechanical
and Electrical 2025/04/28 2400000 8433.06 Pledged Note pool N/A No
Engineering Co. Ltd.Gree (Hangzhou) 2025/04/28 2400000 2189.29 Pledged Note pool N/A No
892025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Electric Appliances Co.Ltd.Gree (Wuhan) Precision
2025/04/28 2400000 675.88 Pledged Note pool N/A No
Mold Co. Ltd.Gree (Luoyang) Electric
2025/04/28 2400000 17887.72 Pledged Note pool N/A No
Appliances Co. Ltd.Gree Electric
Enterprises (Nanjing) 2025/04/28 2400000 1596 Pledged Note pool N/A No
Ltd.Gree (Nanjing) Electric
2025/04/28 2400000 30059.31 Pledged Note pool N/A No
Appliances Co. Ltd.Nanjing Walsin Metal
2025/04/28 2400000 230349.79 Pledged Note pool N/A No
Co. Ltd.Zhuhai Gree Energy
Environment 2025/04/28 2400000 26343.4 Pledged Note pool N/A No
Technology Co. Ltd.Gree (Shijiazhuang)
Electric Appliances Co. 2025/04/28 2400000 29353.43 Pledged Note pool N/A No
Ltd.Tianjin Green
Renewable Resources 2025/04/28 2400000 227.26 Pledged Note pool N/A No
Utilization Co. Ltd.Gree (Wu'an) Precision
Equipment 2025/04/28 2400000 4425.02 Pledged Note pool N/A No
Manufacturing Co. Ltd.Gree (Wuhan) Electric
2025/04/28 2400000 33496.32 Pledged Note pool N/A No
Appliances Co. Ltd.Gree Intelligent
Equipment (Wuhan) 2025/04/28 2400000 5080.19 Pledged Note pool N/A No
Co. Ltd.Gree (Zhengzhou)
Electric Appliances Co. 2025/04/28 2400000 83715.98 Pledged Note pool N/A No
Ltd.Gree Changsha HVAC 2025/04/28 2400000 21024.65 Pledged Note pool N/A No
902025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Equipment Co. Ltd.Changsha Kinghome
Electric Appliances Co. 2025/04/28 2400000 1346.33 Pledged Note pool N/A No
Ltd.Gree TOSOT (Suqian)
Home Appliances Co. 2025/04/28 2400000 2704.95 Pledged Note pool N/A No
Ltd.Zhuhai Gree New
2025/04/28 2400000 13234.47 Pledged Note pool N/A No
Material Co. Ltd.Zhuhai Landa
2025/04/28 2400000 27.8 Pledged Note pool N/A No
Compressor Co. Ltd.Gree Electric
Enterprises (Ma'anshan) 2025/04/28 2400000 4324 Pledged Note pool N/A No
Ltd.Zhuhai Edgeless
Integrated Circuit Co. 2025/04/28 2400000 5620.77 Pledged Note pool N/A No
Ltd.Gree (Wuhu) Electric
2025/04/28 2400000 13562.47 Pledged Note pool N/A No
Appliances Co. Ltd.Gree (Linyi) Electric
2025/04/28 2400000 23043.81 Pledged Note pool N/A No
Appliances Co. Ltd.Zhuhai Gree Electronic
2025/04/28 2400000 40418.45 Pledged Note pool N/A No
Components Co. Ltd.Zhuhai Gree Electrical
2025/04/28 2400000 860 Pledged Note pool N/A No
Co. Ltd
Zhuhai Gree Daikin
2025/04/28 2400000 1230.45 Pledged Note pool N/A No
Precision Mold Co. Ltd.Gree New Material
Technology (Ma'anshan) 2025/04/28 2400000 5375.94 Pledged Note pool N/A No
Co. Ltd.Zhuhai Gree Precision
2025/04/28 2400000 30995.71 Pledged Note pool N/A No
Mold Co. Ltd.Zhuhai Gree
2025/04/28 2400000 7.83 Pledged Note pool N/A No
Prefabricated Vegetable
912025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Equipment Technology
Development Co. Ltd.Hunan Green Resources
2025/04/28 2400000 362.6 Pledged Note pool N/A No
Recycling Co. Ltd.Gree (Wuhan) HVAC
2025/04/28 2400000 16781 Pledged Note pool N/A No
Equipment Co. Ltd.Gree (Zhongshan) Small
Home Appliances Co. 2025/04/28 2400000 5561.92 Pledged Note pool N/A No
Ltd.Gree Electric
Appliances (Zhuhai 2025/04/28 2400000 566.96 Pledged Note pool N/A No
Jinwan) Co. Ltd.Gree (Chongqing)
Electric Appliances Co. 2025/04/28 2400000 25003.5 Pledged Note pool N/A No
Ltd.Zhengzhou Gree Green
Resources Recycling 2025/04/28 2400000 403.78 Pledged Note pool N/A No
Co. Ltd.Guochuang Energy
Internet Innovation
2025/04/28 2400000 61.64 Pledged Note pool N/A No
Center (Guangdong)
Co. Ltd.Gree Green Control
2025/04/28 2400000 190.36 Pledged Note pool N/A No
Technology Co. Ltd.Total amount incurred of
Total amount of guarantees to subsidiaries
2400000 guarantees to subsidiaries during 638763.43
approved during the report period (B1)
the report period (B2)
Total actual guarantee balance to
Total amount of guarantees to subsidiaries
2400000 subsidiaries at the end of the report 427156.39
approved at the end of the report period (B3)
period (B4)
Guarantee of subsidiaries to subsidiaries
Object of Guarantee Disclosure Date of Actual Date Actual Counter- Fulfill Guarantee forGuarantee Guarantee Collateral Guarantee
the Announcement of Guarantee guarantee (if ment Affiliated
922025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Related to the Amount Incurrence Amount Type (if any) any) Period Compl Parties
Guarantee Amount eted (Yes/No)
(Yes/N
o)
Gree Altairnano New Joint liability
2023/01/13 50000 Yes No
Energy Inc. guarantee
2022/12/13435500
Gree Altairnano New Joint liability
2023/11/13 31900 Yes No
Energy Inc. guarantee
Zhejiang DunAn Hetian Joint liability
2025/04/18 2025/04/29 5000 No No
Metals Co. Ltd. guarantee
50000
Zhejiang DunAn Hetian Joint liability
2024/04/19 2024/09/26 5000 Yes No
Metals Co. Ltd. guarantee
Zhejiang DunAn
Joint liability
Artificial Environment 2024/04/19 30000 2024/08/30 25000 No No
guarantee
Co. Ltd.Zhejiang DunAn
Artificial Environment 2023/04/22 20000 2023/10/31 20000 Pledged Yes No
Co. Ltd.Zhejiang DunAn
Joint liability
Artificial Environment 2023/10/27 30000 2023/11/20 30000 Yes No
guarantee
Co. Ltd.Total amount incurred of
Total amount of guarantees to subsidiaries
50000 guarantees to subsidiaries during 86900
approved during the report period (C1)
the report period (C2)
Total actual guarantee balance to
Total amount of guarantees to subsidiaries
50000 subsidiaries at the end of the report 11538
approved at the end of the report period (C3)
period (C4)
Total amount of company guarantee (i.e. total of the first three major items)
Total amount of guarantee incurred
Total amount of guarantee approved during the
2450000 during the report period 725663.43
report period (A1+B1+C1)
(A2+B2+C2)
Total amount of guarantee approved at the end 2450000 Total actual guarantee balance at 438694.39
932025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
of the report period (A3+B3+C3) the end of the report period
(A4+B4+C4)
Proportion of total guarantee balance (i.e. A4+B4+C4) to the Company's net
3.01%
assets
3. Entrusting others to execute any cash asset management
(1) Entrusted financing
□Applicable □ Not applicable
Overview of entrusted financial management during the report period
Unit: CNY10000
Balance of entrusted financial management
Product category Risk characteristics Overdue Uncollected Amount
during the report period
Bank financial products Medium-low risk 1902514.90
Trust financial products Medium-low risk 129369.12
Securities traders' financial products Medium-low risk 1201395.58
Total 3233279.60
Details of the Company's entrustment of financial institutions for asset management as a single principal or investment in high-risk entrusted financial products with lower security and poor
liquidity
□ Applicable □Not Applicable
(2) Entrusted loan
□ Applicable □Not Applicable
The Company was not involved in any entrusted loan during the report period.
942025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
4. Other significant contracts
□ Applicable □Not Applicable
The Company did not enter into any other significant contracts during the report period.XVI. Use of raised funds
□ Applicable □Not Applicable
The Company had no use of placements during the report period.XVII. Description of other significant matters
□Applicable □ Not applicable
Based on confidence in the Company's future development prospects and recognition of the Company's value Jinghai Internet Technology Development Co. Ltd. a shareholder holding more
than 5% of the Company's shares increased its shareholding in the Company by 46382708 shares (accounting for 0.8281% of the Company's total share capital) through centralized bidding
using its own funds and special loans for shareholding increase from financial institutions during the period from March 20 2025 to September 2 2025 with a total increase amount of
CNY2099385500.XVIII. Significant matters of the Company's subsidiaries
□Applicable □ Not applicable
During the report period 100% of the equity of Zhuhai Guangtong Automobile Co. Ltd. held by Gree Altairnano New Energy Inc. was frozen by the court. This judicial freeze originated from
Wei Yincang the former actual controller and legal representative of Zhuhai Yinlong New Energy Co. Ltd. the predecessor of Gree Altairnano New Energy Inc. who without the review and
approval of the board of directors and others in accordance with the articles of association of Zhuhai Yinlong New Energy Co. Ltd. illegally provided a guarantee for the valuation adjustment
mechanism related to the capital increase of Sunshine Life Insurance Corporation Limited and was ruled by the Shenzhen Court of International Arbitration to bear liability for compensatory
damages. Currently GREE Altairnano is actively negotiating with the court's enforcement bureau Sunshine Life Insurance and others to resolve the case.
952025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
962025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section VI Changes in Shares and Shareholders
I. Changes in shares
1. Changes in share capital
Unit: share
Before Change Increase or Decrease (+ -) After Change
Bonus Shares Converted
Quantity Percentage New Issue Others Subtotal Quantity Percentage
Issue from Capital Reserves
I. Shares with trading
862501841.54%-6853917-6853917793962671.42%
restrictions
1. Shares held by the
State
2. Shares held by state-
owned legal person
3. Shares held by other
862501841.54%-6853917-6853917793962671.42%
domestic capital
Including: Shares held
by domestic legal person
Shares held by
862501841.54%-6853917-6853917793962671.42%
domestic natural person
4. Shares held by foreign
capital
Including: Shares held
by foreign legal person
Shares held by foreign
972025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Before Change Increase or Decrease (+ -) After Change
Bonus Shares Converted
Quantity Percentage New Issue Others Subtotal Quantity Percentage
Issue from Capital Reserves
natural person
II. Shares without trading
551515555798.46%68539176853917552200947498.58%
restrictions
1. CNYcommon share 5515155557 98.46% 6853917 6853917 5522009474 98.58%
2. Domestically listed
foreign shares
3. Overseas listed foreign
shares
4. Others
III. Total number of shares 5601405741 100.00% 5601405741 100.00%
Causes for changes in shares
□Applicable □ Not applicable
The decrease in restricted shares this time was attributable to a decrease in shares locked by senior executives.Approval of changes in shares
□ Applicable □Not Applicable
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
982025 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 Reasons for Date of
Shares at the Shares Lifted Shares at the
Shareholder Increased in Restriction Lifting
Beginning of in the Current End of the
the Current
the Period Period Period
Period
Dong Senior
Mingzhu 75598869.00 75598869.00 executive share -lockup
Senior
Zhang Wei 362496.00 362496.00 executive share -
lockup
Senior
Shu Lizhi 161039.00 161039.00 executive share -
lockup
Duan Senior
Xiufeng 452869.00 150956.00 603825.00 executive share -lockup
Fang Senior
Xiangjian 606967.00 606967.00 executive share -lockup
Senior
Liu Hua 278961.00 278961.00 executive share -
lockup
Senior
Li Shaobin 291325.00 291325.00 executive share -
lockup
Hu Senior
Yusheng 372025.00 372025.00 executive share -lockup
Senior
Wang Kai 575362.00 575362.00 executive share -
lockup
Liao Senior
Jianxiong 230747.00 230747.00 executive share -lockup
Senior
Zhuang Pei 6675455.00 6675455.00 executive share -
lockup
Tan Senior
Jianming 1985769.00 1985769.00 executive sharelockup
Deng Senior
Xiaobo 320700.00 320700.00 executive sharelockup
Senior
Others 61016.00 314651.00 61016.00 314651.00 executive share
lockup
Total 86455927.00 1983280.00 9042940.00 79396267.00 -- --
II. Securities issuance and listing
1. Securities issuance (excluding preferred shares) during the report period
□ Applicable □Not Applicable
992025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 shares
□ Applicable □Not Applicable
1002025 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 as preferred
shareholders with restored voting
Total number of common of the end of shareholders with
rights (if any) at the end of the
shareholders at the end of the 568403 the previous 602850 restored voting rights 0 0
previous month before the
report period month before (if any) at the end of
disclosure date of the Annual Report
the disclosure the report period
(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 Number of
Increase/Decrease Shares With
Nature of Shareholding Shares Held at Shares Without
Name of Shareholder During the report Trading
Shareholder Proportion the End of the Trading
period Restrictions Share status Quantity
report period Restrictions Held
Held
Zhuhai Mingjun Investment Domestic non-state-
16.11% 902359632 0 0 902359632 Pledged 902359632
Partnership (Limited Partnership) owned legal person
Jinghai Internet Technology Domestic non-state-
7.83% 438825662 46382708 0 438825662 Pledged 75000000
Development Co. Ltd. owned legal person
State-owned legal
Zhuhai Gree Group Co. Ltd. 3.46% 193895992 0 0 193895992 0
person
Hong Kong Securities Clearing
Foreign legal person 3.42% 191339796 -241251219 0 191339796 0
Company Ltd.China Securities Finance Domestic non-state-
3.21%179870800001798708000
Corporation Limited owned legal person
Dong Mingzhu Domestic natural 1.80% 100798492 0 75598869 25199623 0
1012025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
person
Industrial and Commercial Bank
of China — Huatai-PineBridge Others 1.32% 73816942 -3519679 0 73816942 0
CSI 300 ETF
Gree Electric Appliances Inc. of
Zhuhai ? Phase III Employee Others 1.13% 63195095 63195095 0 63195095 0
Stock Ownership Plan
China Construction Bank — E
Others 0.94% 52788027 -573233 0 52788027 0
Fund CSI 300 Initiated ETF
Industrial and Commercial Bank
of China — China AMC CSI 300 Others 0.72% 40285181 4814600 0 40285181 0
ETF
Circumstances where a strategic investor or general legal
person becomes one of the top 10 shareholders due to N/A
placement of new shares
Zhuhai Mingjun Investment Partnership (Limited Partnership) and Dong Mingzhu are the persons acting in concert. Except for
Description of association or concerted action of the above
that the Company does not know whether there is an association between the above shareholders or whether they are persons
shareholders
acting in concert.Description of the above-mentioned shareholders’
involvement in entrusting/being entrusted with and N/A
waiving voting rights
Special note on the existence of a repurchase account
N/A
among the top 10 shareholders
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 Report Period
Type of Shares Quantity
Zhuhai Mingjun Investment Partnership (Limited RMB common
902359632902359632
Partnership) share
RMB common
Jinghai Internet Technology Development Co. Ltd. 438825662 438825662
share
RMB common
Zhuhai Gree Group Co. Ltd. 193895992 193895992
share
1022025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
RMB common
Hong Kong Securities Clearing Company Ltd. 191339796 191339796
share
RMB common
China Securities Finance Corporation Limited 179870800 179870800
share
Industrial and Commercial Bank of China — Huatai- RMB common
7381694273816942
PineBridge CSI 300 ETF share
Gree Electric Appliances Inc. of Zhuhai ? Phase III RMB common
6319509563195095
Employee Stock Ownership Plan share
China Construction Bank — E Fund CSI 300 Initiated RMB common
5278802752788027
ETF share
Industrial and Commercial Bank of China — China AMC RMB common
4028518140285181
CSI 300 ETF share
Sunshine Life Insurance Corporation Limited - Traditional RMB common
3663772936637729
Insurance Products 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
trading restrictions as well as between the top 10 that the Company does not know whether there is an association between the above shareholders or whether they are persons
shareholders of circulating shares without trading acting in concert.restrictions and the top 10 shareholders
Description of the top 10 common shareholders in
N/A
securities margin trading (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
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 report 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 report period.
1032025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. The 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 and Zhuhai Mingjun 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 to transfer 902359632 shares of the 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 report period
□ Applicable □Not Applicable
There was no change in the controlling shareholder of the Company during the report 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 GGree Group and Zhuhai Mingjun 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 Zhuhaito 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 Legal
Date of
at the Ultimate Representative/ Organization Code Main Business
Establishment
Control Level Head
Zhuhai Mingjun Zhuhai 91440400MA4WJBC General project: Equity
2017/05/11
Investment Xianying R4W investment investment
1042025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Name of Shareholder Legal
Date of
at the Ultimate Representative/ Organization Code Main Business
Establishment
Control Level Head
Partnership (Limited Equity management asset
Partnership) Investment management and other
Partnership businesses through
(Limited privately offered funds
Partnership) (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 independent business
operations are carried out
with the business license in
accordance with the law.)
Equity of other
domestic and
overseas listed
companies controlled
N/A
by the shareholder at
the ultimate control
level during the
report period
Change in the actual controller during the report period
□ Applicable □Not Applicable
The company has no controlling shareholders or actual controllers.Control of the Company through a trust or other asset management methods by the actual controller
□ Applicable □Not Applicable
4. The cumulative number of shares pledged by the controlling shareholder or the largest
shareholder of the Company and its persons acting in concert reached 80% of the number of
shares held by them in the Company.□Applicable □ Not applicable
Impact on
Risk of
the
Total Amount Debt
Source of Stability of
Type of of Stock Pledge Repayment Repayment
Name Purpose Repayment the Control
Shareholder Financing Period or Closing a
Funds of the
(CNY10000) Position
Company
(Yes/No)
(Yes/No)
Zhuhai
Mingjun
Repayment Own and
Investment The largest
1238200 of original 2027/04/30 self-raised No No
Partnership shareholder
loan funds
(Limited
Partnership)
Persons acting
Dong
in concert with
Mingzhu
the largest
1052025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Impact on
Risk of
the
Total Amount Debt
Source of Stability of
Type of of Stock Pledge Repayment Repayment
Name Purpose Repayment the Control
Shareholder Financing Period or Closing a
Funds of the
(CNY10000) Position
Company
(Yes/No)
(Yes/No)
shareholder
Total 1238200
5. Other corporate shareholders holding more than 10% of shares
□ Applicable □Not Applicable
6. Restrictions on shareholding reduction by controlling shareholder(s) actual controller(s)
restructuring parties and other committed entities
□ Applicable □Not Applicable
IV. Implementation of share repurchase during the report period
Implementation progress of share repurchase
□ Applicable □Not Applicable
Implementation progress of reducing holdings of repurchased shares through centralized bidding
□ Applicable □Not Applicable
V. Information on preferred shares
□ Applicable □Not Applicable
The Company did not have any preferred shares during the report period.
1062025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section VII Bond Information
□ Applicable □Not Applicable
1072025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Section VIII Financial Statements
I. Audit report
Type of audit opinion Standard unqualified opinion
Signing date of audit report April 28 2026
Union Power Certified Public Accountants (Special
Name of audit institution
General Partnership)
Number of audit report ZHSZ [2026] No. 0500452
Name of certified public accountant Qiu Yiwu Wu Xiafei
Audit report text
Audit Report
ZHSZ [2026] No. 0500452
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 2025 and the 2025 Consolidated and Company's Income Statements 2025
Consolidated and Company's Cash Flow Statements and 2025 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 your company's financial position of your company as of December 31 2025
and the consolidated and Company's operating results and cash flows in 2025.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 independence standards for Chinese Certified Public Accountants and the Code of Ethics
for Chinese Certified Public Accountants we are independent of your company and have fulfilled
our other ethical responsibilities. We have also complied with the independence requirements
1082025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
applicable to public interest entities. 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
separate opinions on these matters. We have determined the following matters to be key audit
matters that need to be communicated in the audit report.(I) Accrual of inventory falling price reserves
Key audit matters Coping methods
Refer to "Note III. 14" "Note V. 10" and 1. Understand evaluate and test the
"Note V. 65" in the financial statements. effectiveness of the design and execution
As of December 31 2025 the book value of of internal controls related to the
inventory in your company's consolidated recognition of inventory falling price
balance sheet was CNY28183464300 reserves.wherein the book balance of inventory was 2. Evaluate the significant judgments
CNY31450131100 and the inventory falling assumptions and estimates involved in
price reserves were CNY3266666900. management's calculation of net realizable
Recognition of the inventory falling price value and review the basis and documents
reserves depends on the estimation of the net on which management determines the
realizable value of the inventory. For future selling price of the inventory the
recognition of the net realizable value of the costs incurred until completion (if related)
inventory the management should estimate the sales expenses and the related taxes
the future selling price of inventory the costs and fees.(if related) to be incurred until completion the 3. Carry out audit procedures such as
sales expenses and the related taxes and fees. inspection and recalculation. Especially
In consideration of the importance of for the determination of the net realizable
recognition of the inventory and inventory value of the inventory recalculate
falling price reserves to the consolidated according to relevant data.financial statements and the complicated 4. Analyze and review the inventory aging to
calculation process of inventory falling price determine whether the accrual of inventory
reserves and significant judgments falling price reserves is sufficient.assumptions and estimates of the
management involved during the 5. Supervise the inventory-taking and during
1092025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Key audit matters Coping methods
determination of the net realizable value of the the supervising process in addition to
inventory there may be error or potential paying attention to the authenticity and
management bias. Therefore we identified it accuracy of the inventory focus on the
as a key audit matter for your company. usage status of the inventory to check
whether there is inventory in a stagnant or
defective condition and to evaluate the
adequacy of the accrual of inventory
falling price reserves.
6. Review the adequacy of the disclosure of
information related to inventory falling
price reserves in "Note III. 14" "Note V.
10" and "Note V. 65" in the financial
statements.(II) Revenue recognition
Key audit matters Coping methods
Please refer to Note III. 32 and Note V. 54 in 1. Understand evaluate and test the
the financial statements. effectiveness of the design and execution
In the 2025 and 2024 consolidated financial of internal controls related to revenue
statements of your company the revenue from recognition.selling goods was CNY170447058500 and 2. Review sales contract samples understand
CNY189163654100 respectively a year-on- the delivery terms of the transaction and
year decrease of 9.89%. evaluate whether the business model is
Since the amount is significant and revenue is consistent with revenue recognition
one of the key business indicators of your whether the sales contract terms comply
company and whether it is based on real with industry practices and whether the
transactions and whether it is included in the revenue recognition accounting policies
appropriate accounting period has a significant comply with the requirements of
impact on the financial statements we Accounting Standards for Business
consider revenue recognition as a key audit Enterprises.matter. 3. Check the original supporting documents
related to revenue recognition such as
orders delivery notes and arrival receipts
based on audit sampling to evaluate
1102025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Key audit matters Coping methods
whether revenue has truly 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. Other information
includes the information covered in the 2025 Annual Report of your company excluding the
financial statements and our audit reports.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
1112025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.
1122025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(II) Obtain an understanding of internal control related to the audit in order to design appropriate
audit procedures.(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
1132025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
Certified Public Accountant of China:
Wu Xiafei
Wuhan China April 28 2026
1142025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Consolidated Balance Sheet
December 31 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note December 31 2025 January 1 2025
Current assets:
Monetary funds V. 1 110553006650.89 113900461797.94
Lending funds
Trading financial assets V. 2 31336448103.06 16548258632.49
Derivative financial assets
Notes receivable V. 3 883500.00
Accounts receivable V. 4 15987180598.76 16831887388.06
Receivables financing V. 6 6496151873.03 9600726284.77
Advance payments V. 7 1211213034.38 1530312318.65
Other receivables V. 8 327529462.48 869731224.40
Including: Interests receivable
Dividends receivable 4325690.04
Buying back the sale of financial assets V. 9 4800560684.94 5625977294.57
Inventory V. 10 28183464259.53 27910910515.55
Contract assets V. 5 399828954.57 592399551.89
Assets held for sale
Non-current assets due within one year V. 11 33339455877.10 13854786730.73
Other current assets V. 12 18307828898.69 17537456912.83
Total current assets 250943551897.43 224802908651.88
Non-current assets:
Disbursement of loans and advances V. 13 2298410033.80 431208935.61
Debt investment V. 14 1001466666.64
Other debt investments V. 15 24062391354.36 7016555220.76
Long-term receivables V. 16 4834731.36 9483113.92
Long-term equity investments V. 17 4235017009.65 4355712251.54
Other equity instrument investments V. 18 2419998043.64 3039588563.46
Other non-current financial assets V. 19 89060694.31
Investment real estate V. 20 360503333.85 464658386.20
Fixed assets V. 21 34396429584.38 36996168856.84
Construction in progress V. 22 1337977987.35 3076380868.80
Usufruct assets V. 23 675889598.70 789763790.64
Intangible assets V. 24 9864783740.00 10438873258.01
Development expenditures
Goodwill V. 25 1324117904.09 1367729072.13
Long-term unamortized expenses V. 26 36863120.95 37344681.11
Deferred income tax assets V. 27 16712029148.34 17670885568.93
Other non-current assets V. 28 42610141637.28 56532976636.39
Total non-current assets 140428447922.06 143228795870.98
Total assets 391371999819.49 368031704522.86
Legal Representative: Chief Accountant: Head of Accounting Department:
1152025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Consolidated Balance Sheet (Continued)
December 31 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note December 31 2025 January 1 2025
Current liabilities:
Short-term borrowings V. 30 67956629538.51 39009527273.22
Borrowings from the central bank
Loans from other banks
Trading financial liabilities
Derivative financial liabilities V. 31 65094952.36 170740734.87
Notes payable V. 32 15544348535.69 14479000765.12
Accounts payable V. 33 42103940920.24 47091320744.05
Advance receipts
Contract liabilities V. 34 15206576385.44 12491059928.53
Financial assets sold for repurchase
Deposits from customers and interbank V. 35 208923102.80 307788319.03
Payroll payable V. 36 3428525529.34 4390657219.55
Taxes and dues payable V. 37 1931908540.48 2713045051.02
Other payables V. 38 11240989639.29 4556911705.22
Including: Interests payable
Dividends payable 5591546379.65 3889950.33
Liabilities held for sale
Non-current liabilities due within one year V. 39 13668113331.54 15577179285.89
Other current liabilities V. 40 60214780720.57 60338210355.36
Total current liabilities 231569831196.26 201125441381.86
Non-current liabilities:
Long-term borrowings V. 41 3134980571.73 18229817922.13
Bonds payable
Including: Preferred share
Perpetual bond
Lease liabilities V. 42 652797306.31 711291189.69
Long-term payables V. 43 7912428.09
Long-term payroll payable V. 44 211772286.06 232702529.58
Estimated liabilities
Deferred income V. 45 3324936573.20 3409749454.13
Deferred income tax liabilities V. 27 2686401211.23 2801094669.41
Other non-current liabilities
Total non-current liabilities 10010887948.53 25392568193.03
Total liabilities 241580719144.79 226518009574.89
Shareholders' equity:
Share capital V. 46 5601405741.00 5601405741.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves V. 47 1680630216.62 472179369.50
Less: Treasury share V. 48 1703501506.10 2616565976.68
Other comprehensive income V. 49 125657726.14 182018285.77
Special reserves V. 50 34898349.34 31676129.88
Surplus reserves V. 51 1234137135.52 1789443715.25
General risk reserves V. 52 512918996.50 509245480.58
Undistributed profits V. 53 138443151145.00 131447496201.09
Total equity attributable to shareholders of
145929297804.02137416898946.39
the parent company
Minority equity 3861982870.68 4096796001.58
Total shareholders' equity 149791280674.70 141513694947.97
Total liabilities and shareholders' equity 391371999819.49 368031704522.86
Legal Representative: Chief Accountant: Head of Accounting Department:
1162025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Consolidated Income Statement
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2025 2024
I. Total operating revenue 171118161275.41 190038071604.78
Including: Operating revenue V. 54 170447058533.57 189163654064.64
Interest income V. 55 671102741.84 874417456.85
Service charge and commission income 83.29
II. Total operating costs 137548893694.33 154868311110.52
Including: Operating costs V. 54 119641353216.21 133496119623.36
Interest expense V. 55 26783481.38 158700589.03
Service charge and commission expenses 321690.16 364496.62
Taxes and surcharges V. 56 1912423134.47 1798827795.44
Sales expenses V. 57 8410739569.54 9753022469.17
Administrative expenses V. 58 5180260235.38 6057608713.94
R&D expenses V. 59 6463100763.66 6904084981.92
Financial expenses V. 60 -4086088396.47 -3300417558.96
Including: Interest expenses 1964864912.15 2378372721.06
Interest income 5885051089.40 5999412762.36
Add: Other income V. 61 1338729614.54 2724657818.37
Income from investments (losses expressed with V. 62 402248047.83 560281846.36
Including: Income from investments in joint 36369594.25 14219875.64
Income from the derecognition of financial
Income from net exposure hedging (losses
Income from changes in fair value (losses expressed V. 63 164255550.24 -273975504.34
Credit impairment losses (losses expressed with V. 64 511705453.46 -522432617.72
Asset impairment losses (losses expressed with "?") V. 65 -1357124952.49 -686819202.27
Income from disposal of assets (losses expressed V. 66 52212257.62 16965090.94
III. Operating profits (losses expressed with "?") 34681293552.28 36988437925.60
Add: Non-operating revenue V. 67 79301701.30 72190967.82
Less: Non-operating expenses V. 68 115936302.46 164633045.12
IV. Total profits (total losses expressed with "?") 34644658951.12 36895995848.30
Less: Income tax expenses V. 69 5781912934.96 4524926560.95
IV. Net profits (net losses expressed with "?") 28862746016.16 32371069287.35
(I) Classification by business continuity:
1. Net profits from continuing operations (net losses 28884734398.13 32311066123.10
2. Net profits from discontinuing operations (net losses -21988381.97 60003164.25
(II) Classification by ownership:
1. Net profits attributable to shareholders of the parent 29003103411.66 32184570372.28
2. Minority interest income (net losses expressed with "?") -140357395.50 186498915.07
VI. Net of tax of other comprehensive income V. 49 343477882.27 180264674.95
(I) Net of tax of other comprehensive income attributable to 318547901.41 175599320.20
1. Other comprehensive income that cannot be reclassified 371538525.37 141296779.55
(1) Changes arising from remeasurement of the defined -4552141.00 -34144434.00
(2) Other comprehensive income that cannot be transferred to -35134551.63 -147457182.75
(3) Changes in fair value of other equity instrument 411225218.00 322898396.30
(4) Changes in fair value of the Company's own credit risk
(5) Others
2. Other comprehensive income to be reclassified into profits -52990623.96 34302540.65
(1) Other comprehensive income that can be transferred to 916691.34 -82393.76
(2) Changes in fair value of other debt investments -7261274.28 16578380.61
(3) Amount of financial assets reclassified into and included
(4) Reserves for credit impairment of other debt investments 6469154.30 1291886.08
(5) Cash flow hedging reserves 2492765.00 -4944143.75
(6) Differences arising from the translation of financial -55607960.32 21458811.47
(7) Others
(II) Net of tax of other comprehensive income attributable to 24929980.86 4665354.75
VII. Total comprehensive income 29206223898.43 32551333962.30
(I) Total comprehensive income attributable to shareholders of 29321651313.07 32360169692.48
(II) Total comprehensive income attributable to minority -115427414.64 191164269.82
VIII. Earnings per share:
(I) Basic earnings per share (yuan/share) 5.20 5.83
(II) Diluted earnings per share (yuan/share) 5.20 5.83
Legal Representative: Chief Accountant: Head of Accounting Department:
1172025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Consolidated Cash Flow Statement
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2025 2024
I. Cash flows from operating activities:
Cash received from the sale of goods or the rendering of services 180152594833.80 171937113993.38
Net increase in deposits from customers and interbank -97277745.41 50560729.20
Net increase in borrowings from the central bank
Net increase in loans from other banks
Cash received for interests service charges and commissions 200053993.35 690447891.17
Net increase in loans from other banks
Net increase in repurchase business capital
Refund of taxes and levies 3374836508.02 3596859028.53
Other cash received related to operating activities V. 70 (1) 18284568266.19 3249319163.59
Subtotal of cash inflows from operating activities 201914775855.95 179524300805.87
Cash paid for goods acquired and services received 117300948888.33 108253725552.93
Net increase in customer loans and advances 1096845000.00 1579170000.00
Net increase in deposits with central bank and interbank funds 35123619.38 485197013.98
Net increase in lending funds
Cash paid for interests service charges and commissions 23127968.03 157403936.47
Cash paid to and on behalf of employees 11967701115.43 11779145121.58
Payment of taxes and levies 15902339423.32 16976161858.63
Other cash paid related to operating activities V. 70 (1) 9205575087.44 10924246751.62
Subtotal of cash outflows from operating activities 155531661101.93 150155050235.21
Net cash flows from operating activities 46383114754.02 29369250570.66
II. Cash flows from investment activities:
Cash received from the recovery of investment 29499539681.50 28787096787.35
Cash received from return of investment 546108703.90 618087953.81
Net cash received from the disposal of fixed assets intangible assets and other
756542121.37183166640.30
long-term assets
Net cash received from the disposal of subsidiaries and other business entities 100813456.40
Other cash received related to investment activities V. 70 (2) 8971809133.77 5165700914.89
Subtotal of cash inflows from investment activities 39773999640.54 34854865752.75
Cash paid for the purchase and construction of fixed assets intangible assets and
1717311068.103299787341.22
other long-term assets
Cash paid for investments 61670145246.69 42462983876.69
Net cash paid for the acquisition of subsidiaries and other business entities 209444845.48
Other cash paid related to investment activities V. 70 (2) 24986042930.47 4440559304.93
Subtotal of cash outflows from investment activities 88373499245.26 50412775368.32
Net cash flows from investment activities -48599499604.72 -15557909615.57
III. Cash flows from financing activities:
Cash received from absorbing investment 90033154.11 61239812.00
Including: Cash received from minority shareholders' investments in subsidiaries 19004404.11 61239812.00
Cash received from borrowings 72504157963.57 69114070361.03
Other cash received related to financing activities V. 70 (3) 15216270418.08 5382824066.67
Subtotal of cash inflows from financing activities 87810461535.76 74558134239.70
Cash paid for debts 60948543396.16 82643007052.90
Cash paid for dividends and profits or interests 18171241079.96 15133493514.47
Including: Dividends and profits paid to minority shareholders by subsidiaries 45284966.10 35819000.00
Other cash paid related to financing activities V. 70 (3) 85090969.80 484846580.49
Subtotal of cash outflows from financing activities 79204875445.92 98261347147.86
Net cash flows from financing activities 8605586089.84 -23703212908.16
IV. Impact of foreign exchange rate changes on cash and cash equivalents 36301630.25 118633846.78
V. Net increase in cash and cash equivalents 6425502869.39 -9773238106.29
Add: Beginning balance of cash and cash equivalents 21140958080.12 30914196186.41
VI. Ending balance of cash and cash equivalents 27566460949.51 21140958080.12
Legal Representative: Chief Accountant: Head of Accounting Department:
1182025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Consolidated Statement of Changes in Shareholders’ Equity
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2025
Equity attributable to shareholders of the parent company
Item Other equity instruments Other Minority equity Total shareholders'
Share capital Capital reserves Less: TreasuryPreferred Perpetual share comprehensive Special reserves Surplus reserves
General risk Undistributed Others Subtotal equity
Others income reserves profitsshare bond
I. Ending balance of the previous year 5601405741.00 472179369.50 2616565976.68 182018285.77 31676129.88 1789443715.25 509245480.58 131447496201.09 137416898946.39 4096796001.58 141513694947.97
Add: Changes in accounting
policies
Early error correction
Business combination under
common control
Others
II. Beginning balance of the current year 5601405741.00 472179369.50 2616565976.68 182018285.77 31676129.88 1789443715.25 509245480.58 131447496201.09 137416898946.39 4096796001.58 141513694947.97
III. Increase or decrease in the current
year (decrease expressed with "?") 1208450847.12 -913064470.58 -56360559.63 3222219.46 -555306579.73 3673515.92 6995654943.91 8512398857.63 -234813130.90 8277585726.73
(I) Total comprehensive income 318547901.41 29003103411.66 29321651313.07 -115427414.64 29206223898.43
(II) Capital invested and reduced by
shareholders 1208450847.12 -913064470.58 -570954146.72 1550561170.98 -74218358.22 1476342812.76
1. Common shares invested by
shareholders 19004404.11 19004404.11
2. Capital invested by holders of other
equity instruments
3. Amount of share-based payments
recognized in shareholders' equity 1445649873.56 1445649873.56 14830573.16 1460480446.72
4. Others -237199026.44 -913064470.58 -570954146.72 104911297.42 -108053335.49 -3142038.07
(III) Profit distribution 3673515.92 -22344228479.92 -22340554964.00 -47802654.42 -22388357618.42
1. Withdrawal of surplus reserves
2. Withdrawal of general risk reserves 3673515.92 -3673515.92
3. Distribution to shareholders -22340554964.00 -22340554964.00 -47802654.42 -22388357618.42
4. Others
(IV) Internal carry-over of shareholders'
equity -374908461.04 15647566.99 336780012.17 -22480881.88 -22480881.88
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 earnings -374908461.04 15647566.99 336780012.17 -22480881.88 -22480881.88
6. Others
(V) Special reserves 3222219.46 3222219.46 2635296.38 5857515.84
1. Amount withdrawn in the current
period 6051563.43 6051563.43 3152499.76 9204063.19
2. Amount used in the current period 2829343.97 2829343.97 517203.38 3346547.35
(VI) Others
IV. Ending balance of this year 5601405741.00 1680630216.62 1703501506.10 125657726.14 34898349.34 1234137135.52 512918996.50 138443151145.00 145929297804.02 3861982870.68 149791280674.70
Legal Representative: Chief Accountant: Head of Accounting Department:
1192025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Consolidated Statement of Changes in Shareholders’ Equity (Continued)
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2024
Equity attributable to shareholders of the parent company
Item Other equity instruments Other Minority equity Total shareholders'
Share capital Preferred Perpetual Capital reserves
Less: Treasury
share comprehensive Special reserves Surplus reserves
General risk Undistributed Others Subtotal equity
Others income reserves profitsshare bond
I. Ending balance of the previous year 5631405741.00 1352522393.67 4942723911.44 275538293.30 26969643.44 1731130024.40 507223117.40 112211650801.62 116793716103.39 3852437313.05 120646153416.44
Add: Changes in accounting
policies
Early error correction
Business combination under
common control
Others
II. Beginning balance of the current year 5631405741.00 1352522393.67 4942723911.44 275538293.30 26969643.44 1731130024.40 507223117.40 112211650801.62 116793716103.39 3852437313.05 120646153416.44
III. Increase or decrease in the current
year (decrease expressed with "?") -30000000.00 -880343024.17 -2326157934.76 -93520007.53 4706486.44 58313690.85 2022363.18 19235845399.47 20623182843.00 244358688.53 20867541531.53
(I) Total comprehensive income 175599320.20 32184570372.28 32360169692.48 191164269.82 32551333962.30
(II) Capital invested and reduced by
shareholders -30000000.00 -880343024.17 -2326157934.76 1415814910.59 84888119.69 1500703030.28
1. Common shares invested by
shareholders 19006782.78 19006782.78 3162968.80 22169751.58
2. Capital invested by holders of other
equity instruments
3. Amount of share-based payments
recognized in shareholders' equity 321918559.82 321918559.82 18701078.43 340619638.25
4. Others -30000000.00 -1221268366.77 -2326157934.76 1074889567.99 63024072.46 1137913640.45
(III) Profit distribution 32929994.98 2022363.18 -13177178235.64 -13142225877.48 -35819000.00 -13178044877.48
1. Withdrawal of surplus reserves 32929994.98 -32929994.98
2. Withdrawal of general risk reserves 2022363.18 -2022363.18
3. Distribution to shareholders -13142225877.48 -13142225877.48 -35819000.00 -13178044877.48
4. Others
(IV) Internal carry-over of shareholders'
equity -269119327.73 25383695.87 228453262.83 -15282369.03 -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 retained earnings -269119327.73 25383695.87 228453262.83 -15282369.03 -15282369.03
6. Others
(V) Special reserves 4706486.44 4706486.44 4125299.02 8831785.46
1. Amount withdrawn in the current
period 10069964.53 10069964.53 5366906.56 15436871.09
2. Amount used in the current period 5363478.09 5363478.09 1241607.54 6605085.63
(VI) Others
IV. Ending balance of this year 5601405741.00 472179369.50 2616565976.68 182018285.77 31676129.88 1789443715.25 509245480.58 131447496201.09 137416898946.39 4096796001.58 141513694947.97
Legal Representative: Chief Accountant: Head of Accounting Department:
1202025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Balance Sheet of Company
December 31 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note December 31 2025 January 1 2025
Current assets:
Monetary funds 99296036057.99 104997483796.94
Trading financial assets 31317023164.05 16481965416.85
Derivative financial assets 14619878.74
Notes receivable
Accounts receivable XVI. 1 3917930894.88 4827772360.37
Receivables financing 3644375633.59 7006718140.32
Advance payments 28078988222.58 28545633730.59
Other receivables XVI. 2 7758388056.56 10199939865.70
Including: Interests receivable
Dividends receivable 2620451.11
Inventory 7320249183.02 7313135268.12
Contract assets
Assets held for sale
Non-current assets due within one year 28753067233.21 13176925988.88
Other current assets 14171591567.68 11386836198.06
Total current assets 224257650013.56 203951030644.57
Non-current assets:
Debt investment 1001466666.64
Other debt investments 22234020784.28 6442532894.44
Long-term receivables
Long-term equity investments XVI. 3 27294476600.07 27043957920.42
Other equity instrument investments 2342262153.81 2907274549.45
Other non-current financial assets
Investment real estate 10662981.02 15549713.49
Fixed assets 2652352088.50 2951362264.27
Construction in progress 40595047.98 3570152.59
Usufruct assets
Intangible assets 510961203.23 524093498.81
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 12601129174.96 12754641796.88
Other non-current assets 42089924177.41 51848066215.46
Total non-current assets 109776384211.26 105492515672.45
Total assets 334034034224.82 309443546317.02
Legal Representative: Chief Accountant: Head of Accounting Department:
1212025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Balance Sheet of Company (Continued)
December 31 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note December 31 2025 January 1 2025
Current liabilities:
Short-term borrowings 45014817947.51 30059062411.86
Trading financial liabilities
Derivative financial liabilities 94886163.24
Notes payable 14877879814.49 12704510651.54
Accounts payable 81423791301.69 71833289675.25
Advance receipts
Contract liabilities 9065391357.24 6692639915.42
Payroll payable 1091714792.45 1567284063.01
Taxes and dues payable 1147788346.01 1123991382.95
Other payables 8961161956.69 2144355042.02
Including: Interests payable
Dividends payable 5585741622.87 602881.87
Liabilities held for sale
Non-current liabilities due within one year 13456607476.00 14951202185.14
Other current liabilities 58269373589.45 58357673721.64
Total current liabilities 233403412744.77 199434009048.83
Non-current liabilities:
Long-term borrowings 996745616.67 15658858599.83
Bonds payable
Including: Preferred share
Perpetual bond
Lease liabilities
Long-term payables
Long-term payroll payable 211187166.00 232102639.00
Estimated liabilities
Deferred income 161760682.51 159859570.92
Deferred income tax liabilities 1568517432.95 1664135892.22
Other non-current liabilities
Total non-current liabilities 2938210898.13 17714956701.97
Total liabilities 236341623642.90 217148965750.80
Shareholders' equity:
Share capital 5601405741.00 5601405741.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserves 1524800887.62 993202543.54
Less: Treasury share 1663939377.18 2594171175.58
Other comprehensive income 486840400.34 487239916.28
Special reserves
Surplus reserves 2800702870.50 2800702870.50
Undistributed profits 88942600059.64 85006200670.48
Total shareholders' equity 97692410581.92 92294580566.22
Total liabilities and shareholders' equity 334034034224.82 309443546317.02
Legal Representative: Chief Accountant: Head of AccountingDepartment:
1222025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Income Statement of Company
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2025 2024
I. Operating revenue XVI. 4 104396502951.03 125658777785.89
Less: Operating costs XVI. 4 70502153179.59 85603970749.18
Taxes and surcharges 813725731.52 731260431.00
Sales expenses 5586181281.04 8139831424.59
Administrative expenses 1109223318.47 972007096.41
R&D expenses 4670323575.09 5000866640.04
Financial expenses -4580217923.38 -4334351737.43
Including: Interest expenses 1692472689.94 2096763332.46
Interest income 6046140579.87 6397403785.49
Add: Other income 296721100.06 1270944567.58
Income from investments (losses expressed with "?") XVI. 5 3530276232.52 3138996739.42
Including: Income from investments in joint ventures or associates -2925115.15 -5779979.32
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 "?") -31895919.38 -74532589.63
Credit impairment losses (losses expressed with "?") -1176384704.07 7130075.90
Asset impairment losses (losses expressed with "?") 419449661.03 -2846508830.66
Income from disposal of assets (losses expressed with "?") -59129.97 596794.64
II. Operating profits (losses expressed with "?") 29333221028.89 31041819939.35
Add: Non-operating revenue 40551150.88 11718837.26
Less: Non-operating expenses 30362999.89 8325418.48
III. Total profits (total losses expressed with "?") 29343409179.88 31045213358.13
Less: Income tax expenses 3424828882.98 4178509329.39
IV. Net profits (net losses expressed with "?") 25918580296.90 26866704028.74
1. Net profits from continuing operations (net losses expressed with "?") 25918580296.90 26866704028.74
2. Net profits from discontinuing operations (net losses expressed with "?")
V. Net of tax of other comprehensive income 396102989.19 170387139.66
1. Other comprehensive income that cannot be reclassified into profits and losses 387697782.07 170109000.48
(1) Changes arising from remeasurement of the defined benefit plan -4552141.00 -34144434.00
(2) Other comprehensive income that cannot be transferred to profits and losses
under the equity method -35134551.63 -147457182.75
(3) Changes in fair value of other equity instrument investments 427384474.70 351710617.23
(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 8405207.12 278139.18
(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 5948367.12 5186357.93
(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 2456840.00 -4908218.75
(6) Differences arising from the translation of financial statements into foreign
currency
(7) Others
VI. Total comprehensive income 26314683286.09 27037091168.40
Legal Representative: Chief Accountant: Head of Accounting Department:
1232025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Cash Flow Statement of Company
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
Item Note 2025 2024
I. Cash flows from operating activities:
Cash received from the sale of goods or the rendering of services 109705361961.06 107522648166.15
Refund of taxes and levies 2565306908.50 2769613923.80
Other cash received related to operating activities 70681392638.00 53756794088.97
Subtotal of cash inflows from operating activities 182952061507.56 164049056178.92
Cash paid for goods acquired and services received 106619842997.65 109944862169.12
Cash paid to and on behalf of employees 3133323200.72 3142711537.37
Payment of taxes and levies 9853038372.12 11326772472.37
Other cash paid related to operating activities 7084686459.05 11769241239.58
Subtotal of cash outflows from operating activities 126690891029.54 136183587418.44
Net cash flows from operating activities 56261170478.02 27865468760.48
II. Cash flows from investment activities:
Cash received from the recovery of investment 27714121565.58 28134671586.46
Cash received from return of investment 429351565.34 578587703.50
Net cash received from the disposal of fixed assets intangible
assets and other long-term assets 419102.55 116110338.40
Net cash received from the disposal of subsidiaries and other
business entities
Other cash received related to investment activities 11675392064.23 6514304287.02
Subtotal of cash inflows from investment activities 39819284297.70 35343673915.38
Cash paid for the purchase and construction of fixed assets
intangible assets and other long-term assets 127755167.67 452209897.37
Cash paid for investments 61804872541.90 38329525774.69
Net cash paid for the acquisition of subsidiaries and other business
entities
Other cash paid related to investment activities 24060118793.97 6986921376.35
Subtotal of cash outflows from investment activities 85992746503.54 45768657048.41
Net cash flows from investment activities -46173462205.84 -10424983133.03
III. Cash flows from financing activities:
Cash received from absorbing investment
Cash received from borrowings 46695364409.19 56661580712.92
Other cash received related to financing activities 14553622700.24 7573954660.01
Subtotal of cash inflows from financing activities 61248987109.43 64235535372.93
Cash paid for debts 48111978070.72 66707114661.74
Cash paid for dividends and profits or interests 18022835491.43 14911712364.83
Other cash paid related to financing activities 3000000.00 15433050.00
Subtotal of cash outflows from financing activities 66137813562.15 81634260076.57
Net cash flows from financing activities -4888826452.72 -17398724703.64
IV. Impact of foreign exchange rate changes on cash and cash
equivalents 204598330.27 210045712.95
V. Net increase in cash and cash equivalents 5403480149.73 251806636.76
Add: Beginning balance of cash and cash equivalents 10429471829.70 10177665192.94
VI. Ending balance of cash and cash equivalents 15832951979.43 10429471829.70
Legal Representative: Chief Accountant: Head of Accounting Department:
1242025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Statement of Changes in Shareholders’ Equity of Company
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2025
Other equity
Item instruments Other Special
Share capital Prefe Perp Capital reserves
Less: Treasury
share comprehensive reserve Surplus reserves Undistributed profits
Total shareholders'
equity
rred etual Othe income s
share bond rs
I. Ending balance of the previous year 5601405741.00 993202543.54 2594171175.58 487239916.28 2800702870.50 85006200670.48 92294580566.22
Add: Changes in accounting policies
Early error correction
Others
II. Beginning balance of the current year 5601405741.00 993202543.54 2594171175.58 487239916.28 2800702870.50 85006200670.48 92294580566.22
III. Increase or decrease in the current year
(decrease expressed with "?") 531598344.08 -930231798.40 -399515.94 3936399389.16 5397830015.70
(I) Total comprehensive income 396102989.19 25918580296.90 26314683286.09
(II) Capital invested and reduced by shareholders 531598344.08 -930231798.40 -15647566.99 1446182575.49
1. Common shares invested by shareholders
2. Capital invested by holders of other equity
instruments
3. Amount of share-based payments recognized in
shareholders' equity 1446182575.49 1446182575.49
4. Others -914584231.41 -930231798.40 -15647566.99
(III) Profit distribution -22340554964.00 -22340554964.00
1. Withdrawal of surplus reserves
2. Distribution to shareholders -22340554964.00 -22340554964.00
3. Others
(IV) Internal carry-over of shareholders' equity -396502505.13 15647566.99 358374056.26 -22480881.88
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 earnings -396502505.13 15647566.99 358374056.26 -22480881.88
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 1524800887.62 1663939377.18 486840400.34 2800702870.50 88942600059.64 97692410581.92
Legal Representative: Chief Accountant: Head of Accounting Department:
1252025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Statement of Changes in Shareholders’ Equity of Company (Continued)
January to December 2025
Prepared by: Gree Electric Appliances Inc. of Zhuhai Unit: CNY
2024
Other equity
Item instruments Other
Specia
Share capital Prefe Perpe Capital reserves
Less: Treasury
share comprehensive
l
reserv Surplus reserves Undistributed profits
Total shareholders'
Othe income equityrred tual
share bond rs
es
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
(decrease expressed with "?") -30000000.00 -899846574.64 -2348552735.86 -98732188.07 58313690.85 13920001419.11 15298289083.11
(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 shareholders' equity 310632844.42 310632844.42
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 retained earnings -269119327.73 25383695.87 228453262.83 -15282369.03
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:
1262025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Gree Electric Appliances Inc. of Zhuhai
Notes to 2025 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 2025 the registered capital and share capital of the Company were CNY5601405741.00.Please refer to Note V. 46 Share capital for details.
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 2025 the Company had no parent company and no actual controller.
4. Approved submitter and approved submission date of the financial statements
This financial report was approved and submitted by the Board of Directors of the Company on April 28
2026.
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.
1272025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Going concern
The financial statements were presented on a going-concern basis. The management carefully evaluated factors
of the Company in the future 12 months since December 31 2025 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 there was no event that 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 2025 and the related information such as operating results and cash flows in 2025. 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
Important receivables with bad debt reserves The amount of accrual by individual item accounts for more than 5% of
accrued by individual item the ending balance of various receivables and the amount is greaterthan CNY100 million
1282025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Importance Criteria
Recovery or reversal of important receivables The single recovery or reversal amount accounts for more than 5% of
bad debt reserves the ending balance of various receivables and the amount is greaterthan CNY100 million
Actual write-off of important receivables The write-off amount accounts for more than 5% of the ending balanceof various receivables and the amount is greater than CNY100 million
Important advance payments aged over one Advance payments aged over 1 year account for more than 10% of the
year ending balance of advance payments and the amount is greater thanCNY100 million
Important construction in progress The ending balance of a single project is greater than CNY100 million
Important accounts payable and other payables Accounts payable/other payables aged over 1 year account for more
aged over one year than 10% of the ending balance of accounts payable/other payables andthe amount is greater than CNY100 million
Important contractual liabilities aged over one Contractual liabilities aged over 1 year account for more than 10% of
year the ending balance of contractual liabilities and the amount is greaterthan CNY100 million
Subsidiary's ending net assets/total ending assets/current net profit
Important non-wholly-owned subsidiaries account for more than 10% of the Company's ending net assets/total
ending assets/consolidated current net 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
Important joint ventures or associates assets 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
Important investment activities Individual investment activities account for more than 10% of the totalcash 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
1292025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 basis the same 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
1302025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
investment held 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 combination 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
1312025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 report 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 report 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 report 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 shareholders' 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 be still 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.
1322025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
The result of the sum of the consideration obtained from the equity disposal plus the fair value of residual
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 report 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.
1332025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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
1342025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 shareholders' equity are converted at the spot exchange
rate at the time of occurrence. The asset and liability items in the income statements 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 shareholders' 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
1352025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 in the current profits and losses
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 measured at fair value with changes included in the current profits and losses include 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 designated as measured at fair value with changes included in the current profits and
losses 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) Recognition criteria and measurement methods for the transfer of financial assets
Financial assets that meet one of the following conditions shall be derecognized:
1362025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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.
(3) 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.
(4) Offsetting financial assets with financial liabilities
1372025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.
(5) 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.
(6) 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
1382025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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 acceptance bill The acceptor is a financial company
Commercial acceptance bill The acceptor is a company other than a banking institution or financial company
1392025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.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 portfolio The portfolio takes the account age of accounts receivable as the basis for theportfolio
The portfolio takes the dismantling subsidy of waste electrical and electronic
Portfolio 2: Low-risk portfolio products receivable from government departments and new energy vehicle subsidies
as the basis for the portfolio
Portfolio 3: Risk-free portfolio The portfolio takes the receivables from related entities within the scope ofconsolidation as 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 portfolio The portfolio takes the account age of other receivables as the basis for the portfolio
Portfolio 2: Low-risk portfolio The portfolio takes the receivable government grain deposits as the basis for theportfolio
Portfolio 3: Risk-free portfolio The portfolio takes the receivables from related entities within the scope ofconsolidation 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.
1402025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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
1412025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.
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
1422025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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
1432025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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
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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 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 shareholders' 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
1452025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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
1462025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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
1472025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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
1482025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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:
Category of Fixed Assets Expected Net Salvage Value Expected Service Life (year) Annual Depreciation RateRate (%) (%)
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
1492025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.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
1502025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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:
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
1512025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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;
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.
By category of intangible assets land use rights are amortized on a straight-line basis over their useful lives of
30-50 years. If the purchase price of acquired land and buildings cannot be reasonably allocated between the
land use rights and the buildings the entire amount is recognized as fixed assets. Patents and others are
1522025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
amortized on a straight-line basis over their estimated useful lives of 2-30 years.
(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 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
1532025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.
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
1542025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.
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.
1552025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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
1562025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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
1572025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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 the transfer of 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 refers to the method of 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
1582025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.
(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
1592025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 Financial 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.
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.
1602025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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:
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
1612025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
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.
1622025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 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
1632025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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.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
1642025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
None.
(2) Changes in major accounting estimates
None.IV. Taxes
1. Main tax categories and tax rates
Category Tax Basis Tax Rate
Value-added amount from the sale
Value-added tax of goods services intangible 13.00% 9.00% 6.00% etc.assets and real estate
Urban maintenance &
construction tax Turnover tax payable 7.00% 5.00%
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 Hong Kong Gree Electric Appliances Sales Limited 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 Electric Appliances (Brazil) 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 0.50%?1.00% of gross profit on sales.[Note 4] The Company's subsidiaries DunAn Metal (Thailand) Co. Ltd. DunAn Thermal Engineering
(Thailand) Co. Ltd. and DunAn Thermal Management (Thailand) Co. Ltd. operate in Thailand and the
corporate income tax rate in Thailand 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%.
1652025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
[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 2025.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 Zhuhai Gree Xinyuan Electronics Co. Ltd. GR202544002452 2025/12 Three years
3 Zhuhai Kaibang Motor Manufacturing Co.Ltd. GR202444011859 2024/12 Three years
4 Zhuhai Gree Daikin Precision Mold Co. Ltd. GR202544011567 2025/12 Three years
5 Gree (Hefei) Electric Appliances Co. Ltd. GR202334003315 2023/10 Three years
6 Zhuhai Gree Green Refrigeration TechnologyResearch Center Co. Ltd. GR202344006183 2023/12 Three years
7 Gree (Wuhan) Electric Appliances Co. Ltd. GR202542001639 2025/12 Three years
8 Gree (Zhengzhou) Electric Appliances Co.Ltd. GR202341000272 2023/11 Three years
9 Gree (Wuhu) Electric Appliances Co. Ltd. GR202334001396 2023/10 Three years
10 Gree (Shijiazhuang) Electric Appliances Co.Ltd. GR202513000029 2025/10 Three years
11 Zhuhai Ewpe Information Technology Inc. GR202544006463 2025/12 Three years
12 Gree Changsha HVAC Equipment Co. Ltd. GR202343003172 2023/10 Three years
13 Zhuhai Gree Precision Mold Co. Ltd. GR202344006995 2023/12 Three years
14 Gree (Zhongshan) Small Home AppliancesCo. Ltd. GR202444004022 2024/11 Three years
15 Hefei Kinghome Electrical Co. Ltd. GR202434000373 2024/10 Three years
16 Zhuhai Gree New Material Co. Ltd. GR202544012622 2025/12 Three years
17 Gree (Shijiazhuang) Small Home AppliancesCo. Ltd. GR202513000157 2025/10 Three years
18 Zhuhai Gree Daikin Device Co. Ltd. GR202444005850 2024/11 Three years
19 Gree CNC Machine Tool Research InstituteCo. Ltd. of Zhuhai GR202344006963 2023/12 Three years
1662025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
High-tech Date of Obtaining the
No. Name of Taxpayer Enterprise High-tech Enterprise Expiry Date
Certificate No. Certificate
20 Zhuhai Lianyun Technology Co. Ltd. GR202344010393 2023/12 Three years
21 Gree Tosot (Suqian) Home Appliances Co.Ltd. GR202332019062 2023/12 Three years
22 Gree (Hangzhou) Electric Appliances Co.Ltd. GR202333008152 2023/12 Three years
23 Gree (Luoyang) Electric Appliances Co. Ltd. GR202541000624 2025/11 Three years
24 Gree (Wuhan) HVAC Equipment Co. Ltd. GR202442001843 2024/11 Three years
25 Zhuhai Gree Green Resources Recycling Co.Ltd. GR202544006429 2025/12 Three years
26 Zhuhai Edgeless Integrated Circuit Co. Ltd. GR202444007876 2024/12 Three years
27 Gree Wuhu Precision Manufacturing Co.Ltd. GR202534003337 2025/10 Three years
28 Gree (Nanjing) Electric Appliances Co. Ltd. GR202532000957 2025/11 Three years
29 Gree Altairnano New Energy Inc. GR202444004210 2024/11 Three years
30 Gree (Linyi) Electric Appliances Co. Ltd. GR202537001484 2025/12 Three years
31 Gree Electric Appliances (Zhuhai Jinwan)Co. Ltd. GR202544006113 2025/12 Three years
32 Zhuhai Gree Lvkong Technology Co. Ltd. GR202444006582 2024/11 Three years
33 Hefei Landa Compressor Co. Ltd. GR202334001713 2023/10 Three years
34 Zhengzhou Landa Compressor Co. Ltd. GR202341000260 2023/11 Three years
35 Wuhan Landa Compressor Co. Ltd. GR202342000821 2023/10 Three years
36 Hefei Kaibang Motor Co. Ltd. GR202334002919 2023/10 Three years
37 Henan Kaibang Motor Co. Ltd. GR202341001262 2023/11 Three years
38 Jilin Songliang Seed Industry TechnologyCo. Ltd. GR202522001142 2025/12 Three years
39 Zhuhai Guangtong Automobile Co. Ltd. GR202344009746 2023/12 Three years
40 Northern Aotai Nanotechnologies Co. Ltd. GR202413000621 2024/11 Three years
41 Zhejiang DunAn Thermal Technology Co.Ltd. GR202333008719 2023/12 Three years
42 Zhuhai DunAn Thermal Technology Co. Ltd. GR202444001315 2024/11 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 2024/11 Three years
47 Zhejiang DunAn Machinery Co. Ltd. GR202433007625 2024/12 Three years
48 Zhejiang DunAn Electro-MechanicalTechnology Co. Ltd. GR202433003799 2024/12 Three years
49 Suzhou Huayue Metal Co. Ltd. GR202332005590 2023/11 Three years
50 DunAn Automotive Thermal ManagementTechnology Co. Ltd. GR202333001123 2023/12 Three years
51 Jiangsu Tongsheng Heat Exchanger Co. Ltd. GR202332010309 2023/12 Three years
1672025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
High-tech Date of Obtaining the
No. Name of Taxpayer Enterprise High-tech Enterprise Expiry Date
Certificate No. Certificate
52 DunAn (Wuhu) Zhongyuan AutomaticControl Co. Ltd. GR202434005561 2024/11 Three years
53 Shanghai Datro Automotive Technology Co.Ltd. GR202431002439 2024/12 Three years
54 Tianjin Datro Technology Co. Ltd. GR202312002617 2023/12 Three years
55 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. 2008/1/1
2 Chongqing Landa Compressor Co. Ltd. 2015/1/1
3 Chongqing Kaibang Motor Co. Ltd. 2013/1/1
4 Gree (Chengdu) Electric Appliances Co. Ltd. 2022/1/1
5 Gree (Ganzhou) Electric Appliances Co. Ltd. 2023/1/1
6 Chengdu Guangtong Automobile Co. Ltd. 2017/6/13
(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. 2022/1/1
(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 preferential
policies.V. Notes to consolidated financial statements
For the following note items (including notes to the main items of the parent company's financial statements)
unless otherwise specified "the end of the period" means December 31 2025 "the beginning of the period"
means January 1 2025 "the end of the previous year" means December 31 2024 "the current year" refers to
2025 and "the previous year" refers to 2024. Unless otherwise stated the amount unit is CNY.
1. Monetary funds
1682025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
Cash on hand 317120.96 493036.20
Bank deposit 69784065697.11 53207652730.66
Other monetary funds [Note 1] 9253823481.13 35080968670.38
Deposits in central bank [Note 2] 1911851424.72 1876552187.02
Deposits in other banks 25562769444.63 18624283224.90
Subtotal 106512827168.55 108789949849.16
Accrued interest 4040179482.34 5110511948.78
Total 110553006650.89 113900461797.94
Including: Total amount deposited
outside mainland China 1046048599.29 2169874292.62
[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 CNY8675252384.99.[Note 2] The statutory deposit reserve in the Company's deposits in central bank is CNY1902339726.09
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 31336448103.06 16548258632.49
comprehensive income
Including: Debt instrument investment 31332796002.06 16532341817.49
Equity instrument investment 3652101.00 15916815.00
Total 31336448103.06 16548258632.49
3. Notes receivable
(1) Notes receivable presentation by categories
Item Ending Balance Beginning Balance
Commercial acceptance bill 930000.00
Subtotal 930000.00
Less: Bad debt reserves 46500.00
Total 883500.00
(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
1692025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
None.
4. Accounts receivable
(1) Accounts receivable disclosed by account age
Account Age Ending Balance Beginning Balance
<1 year 14699874668.07 15243930067.09
1?2 years 633380094.36 1047136307.87
2?3 years 724729190.92 1085992561.17
>3 years 3008514780.45 3179790154.64
Subtotal 19066498733.80 20556849090.77
Less: Bad debt reserves 3079318135.04 3724961702.71
Total 15987180598.76 16831887388.06
[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
Ending Balance
Category Book balance Bad debt reserves
Book Value
Amount Proporti Amount Credit losson (%) rate (%)
Accounts receivable with bad
debt reserves accrued by 1189620476.76 6.24 1189620476.76 100.00
individual item
Accounts receivable with bad
debt reserves accrued by 17876878257.04 93.76 1889697658.28 10.57 15987180598.76
portfolios
Including: Account age
portfolio 16351828184.04 85.76 1736412869.29 10.62 14615415314.75
Low risk portfolio 1525050073.00 8.00 153284788.99 10.05 1371765284.01
Total 19066498733.80 100.00 3079318135.04 16.15 15987180598.76
(Continued)
Beginning Balance
Category Book balance Bad debt reserves
Book Value
Amount Proport Amount Credit lossion (%) 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
portfolio 17166688323.81 83.51 2242140497.50 13.06 14924547826.31
Low risk portfolio 2184846985.25 10.63 277507423.50 12.70 1907339561.75
Total 20556849090.77 100.00 3724961702.71 18.12 16831887388.06
1) Accounts receivable with bad debt reserves accrued by individual item
1702025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ending Balance
Name
Book balance Bad debt reserves Credit lossrate (%) Reason for accruing
60 units in total 1189620476.76 1189620476.76 100.00 It is difficult torecover
Total 1189620476.76 1189620476.76 100.00
(Continued)
Beginning Balance
Name
Book balance Bad debt reserves Credit lossrate (%) Reason for accruing
64 companies in total 1205313781.71 1205313781.71 100.00 It is difficult torecover
Total 1205313781.71 1205313781.71 100.00
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 14447732182.70 483182050.99 3.34
1?2 years 625529308.94 115638423.24 18.49
2?3 years 203189505.40 85790313.84 42.22
>3 years 1075377187.00 1051802081.22 97.81
Total 16351828184.04 1736412869.29 10.62
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 1525050073.00 153284788.99 10.05
Total 1525050073.00 153284788.99 10.05
(3) Bad debt reserves accrued recovered or reversed in the current period
Change in the Current Period
Category Beginning Balance Accrual/recovery/reve Ending Balance
rsal Write-off
Accrual by
individual item 1205313781.71 19139871.99 34833176.94 1189620476.76
Account age
portfolio 2242140497.50 -498845851.24 6881776.97 1736412869.29
Low risk portfolio 277507423.50 -124222634.51 153284788.99
Total 3724961702.71 -603928613.76 41714953.91 3079318135.04
[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
130 units in total 41714953.91
1712025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Written Off Amount
Total 41714953.91
(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 CNY4488845500.84 accounting for 22.83% of the ending balance of accounts
receivable and contract assets and the amount of bad debt provision is CNY253522902.34.
5. Contract assets
(1) Contract assets
Ending Balance Beginning Balance
Item
Book balance Impairmentreserve Book Value Book balance
Impairment
reserve Book Value
Account
age 589850904.89 197219223.20 392631681.69 793112642.68 243289401.68 549823241.00
portfolio
Low
risk 8646520.00 1449247.12 7197272.88 48736450.00 6160139.11 42576310.89
portfolio
Total 598497424.89 198668470.32 399828954.57 841849092.68 249449540.79 592399551.89
(2) Bad debt reserves accrued recovered or reversed in the current period
Item Beginning Balance Accrual/recovery/reversalin the current period Ending Balance
Account age portfolio 243289401.68 -46070178.48 197219223.20
Low risk portfolio 6160139.11 -4710891.99 1449247.12
Total 249449540.79 -50781070.47 198668470.32
[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.
6. Receivables financing
(1) Receivables financing presentation by categories
Item Ending Balance Beginning Balance
Notes receivable measured at fair
value 5699682696.65 9126154662.22
Including: Banker's acceptance bill 5484679794.26 8905508716.74
Financial company's
acceptance bill 215002902.39 220645945.48
Accounts receivable measured at fair
value 796469176.38 474571622.55
Including: Accounts receivable 796469176.38 474571622.55
1722025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
Total 6496151873.03 9600726284.77
(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 3298768689.49
Financial company's acceptance bill 215002902.39
Total 3513771591.88
(3) 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
Item Amount Derecognized at the End of Amount Recognized at the End of thethe Period Period
Banker's acceptance bill 23547459735.09
Financial company's acceptance bill 91099049.00
Accounts receivable 465197555.84
Total 24103756339.93
(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 796469176.38 796469176.38 39823458.83
Total 796469176.38 796469176.38 39823458.83
2) Changes in credit impairment reserves
Item Beginning Balance Accrual/recovery/reversal Ending Balance
Accounts receivable 23728581.13 16094877.70 39823458.83
Total 23728581.13 16094877.70 39823458.83
(5) Receivables financing written off in the current period
None.
7. Advance payments
(1) Advance payment presentation by account age
Ending Balance Beginning Balance
Account Age
Amount Proportion (%) Amount Proportion (%)
1732025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ending Balance Beginning Balance
Account Age
Amount Proportion (%) Amount Proportion (%)
<1 year 1105229283.84 91.25 1427996706.28 93.31
1?2 years 46233750.92 3.82 58964864.97 3.85
2?3 years 21198239.39 1.75 12778693.25 0.84
>3 years 38551760.23 3.18 30572054.15 2.00
Total 1211213034.38 100.00 1530312318.65 100.00
(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 aggregate balance amount of prepayments of top 5 suppliers in the balance collected by the supplier was
CNY474879897.45 accounting for 39.21% of the total balance of prepayments at the end of the period.
8. Other receivables
Item Ending Balance Beginning Balance
Dividends receivable 4325690.04
Other receivables [Note 1] 327529462.48 865405534.36
Total 327529462.48 869731224.40
[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
Total 4325690.04
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 270507177.94 918927111.10
1?2 years 181335745.73 109462906.88
1742025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Account Age Ending Balance Beginning Balance
2?3 years 76374865.62 37700792.39
>3 years 455531288.01 434126013.28
Subtotal 983749077.30 1500216823.65
Less: Bad debt reserves 656219614.82 634811289.29
Total 327529462.48 865405534.36
2) Classification by nature of payment
Nature of Payment Ending Balance Beginning Balance
Intercourse funds 885730613.92 1406601684.90
Equity and asset transfer payments 98018463.38 93615138.75
Subtotal 983749077.30 1500216823.65
Less: Bad debt reserves 656219614.82 634811289.29
Total 327529462.48 865405534.36
3) Disclosure by classification of bad debt reserves accrual methods
Ending Balance
Category Book balance Bad debt reserves
Amount Proportion Amount Credit loss
Book Value
(%) rate (%)
Other accounts receivable with
bad debt reserves accrued by 496020446.61 50.42 493146057.94 99.42 2874388.67
individual item
Other accounts receivable with
bad debt reserves accrued by 487728630.69 49.58 163073556.88 33.44 324655073.81
portfolios
Including: Account age
portfolio 487728630.69 49.58 163073556.88 33.44 324655073.81
Total 983749077.30 100.00 656219614.82 66.71 327529462.48
(Continued)
Beginning Balance
Category Book balance Bad debt reserves
Book Value
Amount Proportion(%) Amount
Credit loss
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
portfolio 1019203270.50 67.94 156672124.81 15.37 862531145.69
Total 1500216823.65 100.00 634811289.29 42.31 865405534.36
1 Other accounts receivable with bad debt reserves accrued by individual item
Ending Balance
Name
Book balance Bad debt reserves Credit loss rate(%) Reason for accruing
1752025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ending Balance
Name
Book balance Bad debt reserves Credit loss rate(%) Reason for accruing
Company 1 170732737.89 170732737.89 100.00 It is expected to bedifficult to recover
Company 2 121063353.05 121063353.05 100.00 It is expected to bedifficult to recover
It is expected to be
28 companies remaining 204224355.67 201349967.00 98.59 difficult to recover
in full
Total 496020446.61 493146057.94 99.42
(Continued)
Beginning Balance
Name
Book balance Bad debt reserves Credit loss rate(%) Reason for accruing
Company 1 170791178.69 170791178.69 100.00 It is difficult torecover
Company 2 121063353.05 121063353.05 100.00 It is difficult torecover
26 companies remaining 189159021.41 186284632.74 98.48 It is difficult torecover in full
Total 481013553.15 478139164.48 99.40
2 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 255993507.97 12799675.54 5.00
1?2 years 43479358.61 5957422.94 13.70
2?3 years 63064754.72 27122259.68 43.01
>3 years 125191009.39 117194198.72 93.61
Total 487728630.69 163073556.88 33.44
4) Accrual of bad debt reserves
Phase I Phase II Phase III
Bad debt reserves Expected credit Expected credit loss for Expected credit loss for Total
losses in the the entire duration (no
next 12 months credit impairment
the entire duration (credit
occurred) impairment occurred)
Beginning Balance 39054856.80 595756432.49 634811289.29
Changes in the scope of
consolidation -48631.98 -10874.35 -59506.33
Accrual/recovery/reversal
in the current period -26206549.28 56772547.57 30565998.29
Wrote-off in the current
period 9098166.43 9098166.43
Ending Balance 12799675.54 643419939.28 656219614.82
5) Bad debt reserves accrued recovered or reversed in the current period
Change in the Current Period
Category BeginningBalance Changes in the
Ending
scope of Accrual/recovery Write-off Balance
consolidation /reversal
1762025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Change in the Current Period
Category BeginningBalance Changes in the
Ending
scope of Accrual/recovery Balance
consolidation /reversal
Write-off
Accrual by
individual item 478139164.48 23888615.44 8881721.98 493146057.94
Account age
portfolio 156672124.81 -59506.33 6677382.85 216444.45 163073556.88
Total 634811289.29 -59506.33 30565998.29 9098166.43 656219614.82
[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
20 units in total 9098166.43
7) Other receivables of top 5 debtors in terms of ending balance collected by debtors
Proportion to the
total balance of Ending Balance
Name of entity Nature ofpayment Ending Balance Account Age other receivables of Bad Debtat the end of the Reserves
period (%)
DunAn (Tianjin)
Energy Saving Intercourse funds 170732737.89 >3 years 17.36 170732737.89
System Co. Ltd.Huatai Huineng
(Beijing) Energy
Technology Co. Intercourse funds 121063353.05 1?2 years 12.31 121063353.05
Ltd.Hongjiang City
Public Bus Intercourse funds 40312312.68 >3 years 4.10 40312312.68
Company
Chengdu Xinjin
Jincheng
Industrial Equity and assettransfer payments 32850350.00 <1 year 3.34 1642517.50Investment
Group Co. Ltd.Songyuan
Economic and
Technological
Development Intercourse funds 31500000.00 >3 years 3.20 31500000.00
Zone
Management
Committee
Total 396458753.62 40.31 365250921.12
8) Other receivables due to centralized fund management
None.
9. Buying back the sale of financial assets
Item Ending Balance Beginning Balance
Bonds 4800000000.00 5625455000.00
Accrued interest 560684.94 522294.57
Total 4800560684.94 5625977294.57
10. Inventory
1772025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
（1）Classification of inventories
Ending Balance
Item Inventory falling price
Book balance reserves/impairment reserves Book Value
of contract performance costs
Raw materials 7306730819.32 888136122.03 6418594697.29
Goods in process and
contract performance costs 1152606715.91 176757553.64 975849162.27
Finished goods 18047138988.70 2167294482.10 15879844506.60
Development costs 3265644926.06 34478699.16 3231166226.90
Development products 1678009666.47 1678009666.47
Total 31450131116.46 3266666856.93 28183464259.53
(Continued)
Beginning Balance
Item Inventory falling price
Book balance reserves/impairment reserves Book Value
of contract performance costs
Raw materials 7698541352.85 979460215.35 6719081137.50
Goods in process and
contract performance costs 1506172848.54 42733316.42 1463439532.12
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
（2）Inventory falling price reserves and impairment reserves of contract performance costs
Change in the Current Period
Item Beginning Balance Ending Balance
Accrual Reversal/Write-off
Raw materials 979460215.35 111102643.15 202426736.47 888136122.03
Unfinished goods 42733316.42 134328769.98 304532.76 176757553.64
Finished goods 2850241012.37 196432775.31 879379305.58 2167294482.10
Development costs 34478699.16 34478699.16
Total 3872434544.14 476342887.60 1082110574.81 3266666856.93
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:
Item Specific bases for accruing the inventory Reversal/Write-off of inventory fallingfalling price reserves price reserves in the current period
Raw materials Inventory cost or net realizable value Increase in net realizable value or used orwhichever is lower sold in the current period
Goods in process and Inventory cost or net realizable value Increase in net realizable value or used or
contract performance costs whichever is lower sold in the current period
(3) Capitalization amount of borrowing costs included in the ending balance of inventory
1782025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Specific bases for accruing the inventory Reversal/Write-off of inventory fallingfalling price reserves price reserves in the current period
None.
(4) The amortization amount of contract performance costs in the current year was CNY330155788.45.
11. Non-current assets due within one year
Item Ending Balance Beginning Balance
Debt investments due within 1 year 1000000000.00 1149000000.00
Other debt investments due within 1
year 4219681700.00 10326354820.00
Monetary investment products due
within 1 year [Note] 25630000000.00 1500000000.00
Long-term receivables due within 1
year 4757325.30 40656657.97
Subtotal 30854439025.30 13016011477.97
Add: Accrued interests 2485125794.54 839706290.23
Less: Impairment reserves 108942.74 931037.47
Total 33339455877.10 13854786730.73
[Note] For monetary investment products due within 1 year please refer to Note V. 28 Other non-current assets.
12. Other current assets
Item Ending Balance Beginning Balance
Input tax to be deducted and prepaid
tax 4909293540.47 2221574559.51
Bond products 100000000.00
Monetary investment products [Note] 13002813080.00 14831000000.00
Others 243417739.96 252317985.96
Subtotal 18155524360.43 17404892545.47
Add: Accrued interests 198515519.25 175539773.57
Less: Impairment reserves 46210980.99 42975406.21
Total 18307828898.69 17537456912.83
[Note] Monetary investment products include the amount reclassified from other debt investments. For
details please refer to Note V. 15. Other debt investments.
13. 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
advances 2365000000.00 442700000.00
Including: Loans 2365000000.00 442700000.00
1792025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
Subtotal 2365000000.00 442700000.00
Add: Accrued interests 937486.12 467970.70
Less: Impairment reserves 67527452.32 11959035.09
Book value of issued corporate loans
and advances 2298410033.80 431208935.61
(2) Changes in loan loss reserves
Item Ending Balance Beginning Balance
Beginning Balance 11959035.09 14944828.26
Accrual/transferring back/recovery in
the current period 55568417.23 -2985793.17
Ending Balance 67527452.32 11959035.09
14. Debt investment
(1) Debt investments
Ending Balance Beginning Balance
Item Impair Impair
Book balance ment Book Value Book balance ment Book Value
reserve reserve
Debt investment 1000000000.00 1000000000.00 2149000000.00 2149000000.00
Accrued interest 1466666.66 1466666.66 3211148.67 3211148.67
Subtotal 1001466666.66 1001466666.66 2152211148.67 2152211148.67
Less: Debt
investments due 1001466666.66 1001466666.66 1150744482.03 1150744482.03
within 1 year
Total 1001466666.64 1001466666.64
(2) Debt investment
Ending Balance Beginning Balance
Item Effectiv Effectiv
Face value Coupon erate interest Date due Face value
Coupon e
rate interest Date due
rate rate
Jinghua
No.1 trust 1000000000.00 5.10% 5.10% 2026/5/29 1000000000.00 5.10% 5.10% 2026/5/29
plan
Jinyu
Guoshi 999000000.00 5.30% 5.30% 2025/9/30
trust plan
(26th issue)
Agricultura
l Bank 150000000.00 2.28% 2.28% 2025/11/25
treasury
bonds
Total 1000000000.00 2149000000.00
[Note] Debt investments in the table above include debt investments due within 1 year.
1802025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(3) Accrual of impairment reserves
None.
1812025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
15. Other debt investments
(1) Other debt investments
Ending Balance
Accumulated
Item loss reserves
Cost Accrued interest Change in fair value Book Value recognized inother
comprehensive
income
Treasury bonds 734068304.18 5052905.18 4197435.82 743318645.18
Corporate bonds and financial bonds 200000000.00 671232.86 8440400.00 209111632.86
Negotiable certificate of deposit 28544813080.00 813865074.94 29358678154.94
Subtotal 29478881384.18 819589212.98 12637835.82 30311108432.98
Less: Other debt investments due
within 1 year 4216319567.51 353203106.60 3362132.49 4572884806.60
Less: Other current assets 1652813080.00 23019192.02 1675832272.02
Total 23609748736.67 443366914.36 9275703.33 24062391354.36
(Continued)
Beginning Balance
Accumulated
Item loss reserves
Cost Accrued interest Change in fair value Book Value recognized inother
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
1822025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance
Accumulated
Item loss reserves
Cost Accrued interest Change in fair value Book Value recognized inother
comprehensive
income
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
Less: Other current assets 5700000000.00 81243013.70 5781243013.70
Total 6647440974.82 345896359.18 23217886.76 7016555220.76
[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
2025 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 Coupon Effective Coupon EffectiveFace value rate (%) interest rate Date due Face value(%) rate (%)
interest rate Date due
(%)
Negotiable certificate of
deposit 21529497581.58 1.45-4.00 1.45-4.00 2026/1/13-2028/12/31 21517000000.00 1.80-4.00 1.80-4.00 2025/1/12-2027/10/21
24 coupon-bearing bond 11 300000000.00 2.27 1.75-1.84 2034/5/25
16 coupon-bearing bond 17 300000000.00 2.74 3.10-3.44 2026/8/4 300000000.00 2.74 3.10-3.44 2026/8/4
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
24 coupon-bearing bond 04 100000000.00 2.35 1.83-1.85 2034/2/25
22 coupon-bearing bond 19 20000000.00 2.60 2.61 2032/9/1 20000000.00 2.60 2.61 2032/9/1
1832025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ending Balance Beginning Balance
Other debt items Effective Effective
Face value Couponrate (%) interest rate Date due Face value
Coupon interest rate Date due
(%) rate (%) (%)
20 Nongfa 08 200000000.00 3.45 3.54 2025/9/23
22 Huafa Group MTN006 180000000.00 4.20 4.20 2025/4/25
22 Huafa Group MTN009B 180000000.00 4.00 4.00 2025/6/20
22 Huafa Group MTN012B 60000000.00 3.75 3.75 2025/8/16
Total 22449497581.58 22657000000.00
[Note] The other debt investments in the above table include those presented under non-current assets due within 1 year and other current assets.
1842025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
16. Long-term receivables
(1) Long-term receivables
Ending Balance
Item
Book balance Bad debt reserves Book Value
Goods of installment sales 72859395.11 32327982.77 40531412.34
Less: Unrealized financing
income 9338115.19 9338115.19
Less: Long-term accounts
receivable due within 1 year 4757325.30 108942.74 4648382.56
Less: Other current assets 53815913.11 32105729.88 21710183.23
Total 4948041.51 113310.15 4834731.36
(Continued)
Beginning 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
[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
Amount Proportion Amount Credit loss
Book Value
(%) rate (%)
Long-term accounts receivable
with bad debt reserves accrued
by individual item
Long-term accounts receivable
with bad debt reserves accrued 4948041.51 100.00 113310.15 2.29 4834731.36
by portfolios
Including: Account age
portfolio 4948041.51 100.00 113310.15 2.29 4834731.36
Total 4948041.51 100.00 113310.15 2.29 4834731.36
(Continued)
Beginning Balance
Category Book balance Bad debt reserves
Proportion Credit loss Book ValueAmount (%) Amount rate (%)
1852025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance
Category Book balance Bad debt reserves
Book Value
Amount Proportion Amount Credit loss(%) 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
portfolio 9705366.81 100.00 222252.89 2.29 9483113.92
Total 9705366.81 100.00 222252.89 2.29 9483113.92
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 4948041.51 113310.15 2.29
Total 4948041.51 113310.15 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 222252.89 -108942.74 113310.15
Total 222252.89 -108942.74 113310.15
(4) Long-term accounts receivable written off in the current period
None.
1862025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
17. Long-term equity investments
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Profits and losses Adjustment of Declared
Accrual
Original value Impairment Additional Decreased on investment other distribution of Other changes
of Impairment
reserve Investment Investment recognized by comprehensive cash dividends or in equity impair Others Original value reserve
equity method income profits mentreserves
I. Joint ventures
SL Group Jiangwan
Rice Industry Co. 1146314.44 -14041.12 1132273.32
Ltd.Subtotal 1146314.44 -14041.12 1132273.32
II. Associates
Gree (Vietnam)
Electric Appliances 1940009.35 1940009.35 1940009.35 1940009.35
Inc.Outlook All Media
Co. Ltd. 28931364.74 -4802205.86 24129158.88
Wuhan Digital Design
and Manufacturing
Innovation Center 15736715.70 395965.60 16132681.30
Co. Ltd.Coresing
Semiconductor 20732688.82 10000000.00 53092.78 722215.35 10063566.25
Technology Co. Ltd.Zhuhai Ronglin
Equity Investment
Partnership (Limited 2647273059.03 -106544.69 -41334766.63 2605831747.71
Partnership)
Zhuhai Jiayao Food
Technology Co. Ltd. 1022984.98 -25121.71 997863.27
Henan Yuze Finance
Leasing Co. Ltd. 53023787.47 1534577.02 1672569.34 52885795.15
Zhuhai Hanling
Equity Investment
Partnership (Limited 763676509.58 4174629.14 120850000.00 647001138.72
Partnership)
Shanghai Gree Green
Energy Technology 7014870.30 -3406740.00 3608130.30
Co. Ltd.Zhejiang Gree New
Energy Co. Ltd. 3000000.00 -1784206.65 1215793.35
1872025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Profits and losses Adjustment of Declared
Accrual
Original value Impairment Additional Decreased on investment other distribution of Other changes
of
reserve Investment Investment recognized by comprehensive cash dividends or in equity impair Others Original value
Impairment
reserve
equity method income profits mentreserves
Lanzhou Guangtong
New Energy 84316937.33 -2198480.16 2741312.00 84859769.17
Automobile Co. Ltd.Guizhou Qianzhixing
New Energy Co. Ltd. 575562.47 -575562.47
Beijing Liyin
Automobile 4605056.55 4605056.55
Technology Co. Ltd.Sichuan Jinshi
Leasing Co. Ltd. 326352154.19 23016830.57 -1074800.45 348294184.31
Zhuji Rushan Huiying
Venture Investment
Partnership (Limited 32671596.10 1166666.67 -20103.11 31484826.32
Partnership)
DunAn (Tianjin)
Energy Saving 375647520.14 20127504.91 7000000.00 402775025.05
System Co. Ltd.Subtotal 4356505946.45 1940009.35 10014870.30 11166666.67 36383635.37 -39668255.08 123244784.69 7000000.00 4235824745.68 1940009.35
Total 4357652260.89 1940009.35 10014870.30 11166666.67 36369594.25 -39668255.08 123244784.69 7000000.00 4236957019.00 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.[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 report period.
18. Other equity instrument investments
(1) Other equity instrument investments
Item Ending Balance Beginning Balance
1882025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
San'an Optoelectronics Co. Ltd. 1618556697.81 1394043525.29
Wingtech Technology Co. Ltd. 723705456.00 1193148603.36
Shanghai Highly (Group) Co. Ltd. 339586352.90
RSMACALLINE-HSHS 70735889.83 105810081.91
COFCO Trading (Suibin) Agricultural Development Co.Ltd. 7000000.00 7000000.00
Total 2419998043.64 3039588563.46
(2) Non-trading equity instrument investments
Amount Reason for the
Gains included in Losses included Accumulated gains Accumulatedlosses included in transferred from
Reason for the amount
Dividend other in other included in other other amount measured at transferred
Item income comprehensive comprehensive comprehensive other fair value with from other
recognized income in the income in the income at the end comprehensive
comprehensive
income to changes included in comprehensive
current period current period of current period income at the endof current period retained
other comprehensive income to
earnings income retainedearnings
Based on the
San'an Optoelectronics management's
Co. Ltd. 2290950.74 224513172.52 381443302.19 intention andcontractual cash
flow
Based on the
RSMACALLINE- management's
HSHS 17226141.81 636297399.92 intention andcontractual cash
flow
Based on the
Shanghai Highly management's
(Group) Co. Ltd. 416076.05 149142803.59 125447058.81 intention and Sold all sharescontractual cash
flow
COFCO Trading Based on the
(Suibin) Agricultural 300000.00 management's
Development Co. Ltd. intention and
1892025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Amount Reason for the
Gains included in Losses included Accumulated gains Accumulatedlosses included in transferred from
Reason for the amount
Dividend other in other included in other other amount measured at transferred
Item income comprehensive comprehensive comprehensive othercomprehensive comprehensive
fair value with from other
recognized income in the income in the income at the end income to changes included in comprehensive
current period current period of current period income at the end other comprehensive income toof current period retainedearnings income retainedearnings
contractual cash
flow
Based on the
Wingtech Technology management's
Co. Ltd. 60245143.03 244600020.00 249461402.23 intention and
Sales of some
contractual cash shares
flow
Total 3007026.79 433901119.14 17226141.81 244600020.00 1017740702.11 374908461.04
1902025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
19. Other non-current financial assets
Item Ending Balance Beginning Balance
Financial assets measured at fair value
with changes included in other 89060694.31
comprehensive income
Total 89060694.31
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 934589863.77 55487121.75 990076985.52
2. Increased amount in the current period 104731511.83 1622668.51 106354180.34
Including: (1) Transfer-in from construction
in progress 208431.98 208431.98
(2) Transfer-in from fixed assets 104523079.85 104523079.85
(3) Transfer-in from intangible assets 1622668.51 1622668.51
3. Decreased amount in the current period 191502554.51 5238315.77 196740870.28
Including: (1) Transfer to fixed assets 191502554.51 191502554.51
(2) Transfer to intangible assets 5238315.77 5238315.77
4. Ending balance 847818821.09 51871474.49 899690295.58
II. Accumulated depreciation and
accumulated amortization
1. Beginning balance 510430663.20 14987936.12 525418599.32
2. Increased amount in the current period 111682334.85 1271263.27 112953598.12
Including: (1) Accrual or amortization 57565123.73 1087360.84 58652484.57
(2) Transfer-in from fixed assets 54117211.12 54117211.12
(3) Transfer-in from intangible assets 183902.43 183902.43
3. Decreased amount in the current period 97882809.57 1302426.14 99185235.71
Including: (1) Transfer to fixed assets 97882809.57 97882809.57
(2) Transfer to intangible assets 1302426.14 1302426.14
4. Ending balance 524230188.48 14956773.25 539186961.73
III. Impairment reserves
IV. Book value
1. Book value at the end of the period 323588632.61 36914701.24 360503333.85
2. Book value at the beginning of the period 424159200.57 40499185.63 464658386.20
[Note] As of December 31 2025 the book value of investment real estate ? houses and buildings of which the
Company has not obtained the property ownership certificates was CNY22432142.08.
1912025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
21. Fixed assets
Item Ending Balance Beginning Balance
Fixed assets [Note] 34384945761.50 36986760728.25
Fixed assets in liquidation 11483822.88 9408128.59
Total 34396429584.38 36996168856.84
[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
Item Houses and buildings Machinery and Transportationequipment equipment Electronic equipment Other equipment Total
I. Original book value
1. Beginning balance 38914719360.90 32049258018.05 1656535452.47 2720033975.21 925012805.26 76265559611.89
2. Increased amount in
the current period 1482414819.71 1133969524.75 27639847.28 141131072.39 88230151.56 2873385415.69
Including: (1) Purchase 581934010.25 27639847.28 141131072.39 88230151.56 838935081.48
(2) Transfer-in
from investment real 191502554.51 191502554.51
estate
(3) Transfer-in
from construction in 1290912265.20 552035514.50 1842947779.70
progress
3. Decreased amount in
the current period 773276555.47 285761569.52 27579733.57 51245551.79 22469463.06 1160332873.41
Including: (1) Disposal
or scrapping 668753475.62 285761569.52 27579733.57 51245551.79 22469463.06 1055809793.56
(2) Transfer to
investment real estate 104523079.85 104523079.85
4. Foreign currency
financial statement 10898598.18 9639074.66 244021.06 906856.76 166840.45 21855391.11
translation
5. Ending balance 39634756223.32 32907105047.94 1656839587.24 2810826352.57 990940334.21 78000467545.28
1922025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Houses and buildings Machinery and Transportationequipment equipment Electronic equipment Other equipment Total
II. Accumulated
depreciation
1. Beginning balance 12615894802.39 21384582002.14 1414721245.74 2534581799.17 836452974.20 38786232823.64
2. Increased amount in
the current period 2040235381.65 2231713446.13 93626855.71 166420924.93 53723618.83 4585720227.25
Including: (1) Accrual 1942352572.08 2231713446.13 93626855.71 166420924.93 53723618.83 4487837417.68
(2) Transfer-in
from investment real 97882809.57 97882809.57
estate
3. Decreased amount in
the current period 271083986.43 240740388.36 25794199.12 47802188.89 19346380.61 604767143.41
Including: (1) Disposal
or scrapping 216966775.31 240740388.36 25794199.12 47802188.89 19346380.61 550649932.29
(2) Transfer to
investment real estate 54117211.12 54117211.12
4. Foreign currency
financial statement 3482425.08 5023037.85 223190.92 642845.12 85463.02 9456961.99
translation
5. Ending balance 14388528622.69 23380578097.76 1482777093.25 2653843380.33 870915675.44 42776642869.47
III. Impairment reserves
1. Beginning balance 62574284.00 424940959.29 1296999.74 1648914.63 2104902.34 492566060.00
2. Increased amount in
the current period 8095244.67 343703480.27 2599959.01 455139.83 374026.14 355227849.92
Including: (1) Accrual 8095244.67 341044270.22 2599959.01 455139.83 374026.14 352568639.87
(2) Transfer-in
from construction in 2659210.05 2659210.05
progress
3. Decreased amount in
the current period 882790.50 7921086.88 32776.48 9477.79 276177.02 9122308.67
Including: Disposal or
scrapping 882790.50 7921086.88 32776.48 9477.79 276177.02 9122308.67
4. Foreign currency
financial statement 66512.83 6928.81 130901.88 2969.54 207313.06
translation
1932025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Houses and buildings Machinery and Transportationequipment equipment Electronic equipment Other equipment Total
5. Ending balance 69786738.17 760789865.51 3871111.08 2225478.55 2205721.00 838878914.31
IV. Book value
1. Book value at the end
of the period 25176440862.46 8765737084.67 170191382.91 154757493.69 117818937.77 34384945761.50
2. Book value at the
beginning of the period 26236250274.51 10239735056.62 240517206.99 183803261.41 86454928.72 36986760728.25
[Note] As of December 31 2025 the book value of the Company's fixed assets ? houses and buildings of which the Company has not obtained the certificate of title was
CNY10417601558.90. The acquisition of certificate of title is mainly affected by the progress of project 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 11483822.88 9408128.59
Total 11483822.88 9408128.59
22. Construction in progress
Item Ending Balance Beginning Balance
Construction in progress [Note] 1337977987.35 3076380868.80
Total 1337977987.35 3076380868.80
[Note] The construction in progress in the above table refers to the construction in progress after the deduction of construction materials.
1942025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(1) Construction in progress
Ending Balance Beginning Balance
Item
Book balance Impairment reserve Book Value Book balance Impairment reserve Book Value
Gree Altairnano Project 1425543675.40 1142165303.19 283378372.21 1444064370.64 148185180.76 1295879189.88
Wuhan Mold Project 458771086.80 458771086.80 419342296.60 419342296.60
Zhuhai Electronic
Component Project 137213742.13 137213742.13 271412147.03 271412147.03
Others 470985077.20 12370290.99 458614786.21 1102832696.34 13085461.05 1089747235.29
Total 2492513581.53 1154535594.18 1337977987.35 3237651510.61 161270641.81 3076380868.80
(2) Current changes in important construction in progress
Including:
Item Beginning Balance Increased amount in
Amount transferred Transfer to
the current period to fixed assets in the investment real estate
Disposal in the Ending Balance Capitalization
current period in this period current period amount of interest inthe current period
Gree Altairnano
Project 1444064370.64 44051088.51 62114585.63 457198.12 1425543675.40
Wuhan Mold Project 419342296.60 39428790.20 458771086.80 2169591.66
Zhuhai Electronic
Component Project 271412147.03 252605303.99 386803708.89 137213742.13
Others 1102832696.34 762390298.02 1394029485.18 208431.98 470985077.20 8997510.36
Total 3237651510.61 1098475480.72 1842947779.70 208431.98 457198.12 2492513581.53 11167102.02
[Note] The capitalization amount of interest for the current period includes government grants for loan interest discounts.
(3) Accrual of impairment provision of construction in progress in the current period
Item Beginning Balance Increase in the Current
Decrease in the Current Period
Period Amount transferred to fixed Ending Balance
assets Disposal
1952025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Beginning Balance Increase in the CurrentPeriod Decrease in the Current Period Ending Balance
Gree Altairnano Project
[Note] 148185180.76 995970112.10 1780670.23 209319.44 1142165303.19
Others 13085461.05 163369.76 878539.82 12370290.99
Total 161270641.81 996133481.86 2659210.05 209319.44 1154535594.18
[Note] According to the Company's plan some of Gree Altairnano's construction in progress will not be continued and the related assets can no longer bring expected
economic benefits to the enterprise. Accordingly an impairment provision was made in accordance with the accounting standards.
(4) Impairment testing of construction in progress
Item Book Value Recoverable Impairment amount Determination of Fair Value and Disposal Key Parameters Basis for DeterminingAmount Expenses Key Parameters
Reference to historical
Gree Altairnano Project 1425543675.40 283378372.21 1142165303.19 Recoverable amount determined based on Asset recoverable disposal experience andestimated residual realizable value residual value rate estimated scrap recovery
value
1962025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
23. Usufruct assets
Item Houses and buildings Other equipment Total
I. Original book value
1. Beginning balance 1062675772.54 1062675772.54
2. Increased amount in the
current period 21427229.01 384955.76 21812184.77
Including: Lease 21427229.01 384955.76 21812184.77
3. Decreased amount in the
current period 236294559.72 236294559.72
Including: Due 236294559.72 236294559.72
4. Ending balance 847808441.83 384955.76 848193397.59
II. Accumulated
depreciation
1. Beginning balance 272911981.90 272911981.90
2. Increased amount in the
current period 60420900.22 128318.64 60549218.86
Including: Accrual 60420900.22 128318.64 60549218.86
3. Decreased amount in the
current period 161157401.87 161157401.87
Including: Due 161157401.87 161157401.87
4. Ending balance 172175480.25 128318.64 172303798.89
III. Impairment reserves
IV. Book value
1. Book value at the end of
the period 675632961.58 256637.12 675889598.70
2. Book value at the
beginning of the period 789763790.64 789763790.64
24. Intangible assets
Item Land use rights Patent rights and others Total
I. Original book value
1. Beginning balance 10859093460.70 3627722996.45 14486816457.15
2. Increased amount in the
current period 42738550.57 13185516.63 55924067.20
Including: (1) Purchase 37500234.80 13185516.63 50685751.43
(2) Transfer-in from
investment real estate 5238315.77 5238315.77
3. Decreased amount in the
current period 210476499.26 2802915.22 213279414.48
Including: (1) Disposal 208853830.75 681675.22 209535505.97
(2) Write-off 2121240.00 2121240.00
(3) Transfer to
investment real estate 1622668.51 1622668.51
4. Ending balance 10691355512.01 3638105597.86 14329461109.87
II. Accumulated
amortization
1972025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Land use rights Patent rights and others Total
1. Beginning balance 1840350365.39 1477845162.27 3318195527.66
2. Increased amount in the
current period 224311090.97 233062170.21 457373261.18
Including: (1) Amortization 223008664.83 233062170.21 456070835.04
(2) Transfer-in from
investment real estate 1302426.14 1302426.14
3. Decreased amount in the
current period 38339850.44 268441.97 38608292.41
Including: (1) Disposal 38155948.01 178000.01 38333948.02
(2) Write-off 90441.96 90441.96
(3) Transfer to
investment real estate 183902.43 183902.43
4. Ending balance 2026321605.92 1710638890.51 3736960496.43
III. Impairment reserves
1. Beginning balance 9637873.85 720109797.63 729747671.48
2. Increased amount in the
current period
3. Decreased amount in the
current period 2030798.04 2030798.04
Including: write-off 2030798.04 2030798.04
4. Ending balance 9637873.85 718078999.59 727716873.44
IV. Book value
1. Book value at the end of
the period 8655396032.24 1209387707.76 9864783740.00
2. Book value at the
beginning of the period 9009105221.46 1429768036.55 10438873258.01
[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 2025 the book value of intangible assets of which the Company has not
obtained the certificate of title was CNY4062100.06;
[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
Name of Investee or Matters Forming Current Period Current Period
Goodwill Beginning Balance Formed by Ending Balancebusiness Disposal
combination
Zhejiang DunAn Artificial
Environment Co. Ltd. 1198301590.22 1198301590.22
Gree Altairnano New Energy Inc. 612777583.92 612777583.92
Nanjing Walsin Metal Co. Ltd. 274115040.11 274115040.11
Hefei Kinghome Electrical Co. Ltd. 51804350.47 51804350.47
1982025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Increase in the Decrease in the
Name of Investee or Matters Forming Current Period Current Period
Goodwill Beginning Balance Formed by Ending Balancebusiness Disposal
combination
Shanghai Datro Automotive
Technology Co. Ltd. 181930623.08 181930623.08
Total 2318929187.80 2318929187.80
(2) Goodwill impairment reserves
Name of Investee or
Matters Forming Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending BalanceGoodwill
Gree Altairnano New
Energy Inc. 612777583.92 612777583.92
Nanjing Walsin Metal
Co. Ltd. 274115040.11 274115040.11
Hefei Kinghome
Electrical Co. Ltd. 51804350.47 51804350.47
Shanghai Datro
Automotive 12503141.17 43611168.04 56114309.21
Technology Co. Ltd.Total 951200115.67 43611168.04 994811283.71
(3) Information about the asset group or asset group combination in which the goodwill is located
Composition and Basis of the Asset Group or Operating Segments and ConsistencyName Combination Basis with PreviousYears (Yes/No)
Asset group of Including fixed assets construction in progress DunAn Hetian and
DunAn right-of-use assets intangible assets long-term Zhuhai Huayu classified
Environment unamortized expenses and other long-term by company management Yes
refrigeration assets based on the asset group that can generate requirements and business
accessories independent cash flows modules
Asset group of Including fixed assets construction in progress DunAn Electro-
DunAn right-of-use assets intangible assets long-term Mechanical classified by
Environment unamortized expenses and other long-term company management Yes
equipment assets based on the asset group that can generate requirements and businessindependent cash flows modules
Asset group of Including fixed assets construction in progress DunAn Thermal and
DunAn right-of-use assets intangible assets long-term Zhuhai Thermal
Environment unamortized expenses and other long-term classified by company Yes
thermal assets based on the asset group that can generate management requirementsindependent cash flows and business modules
Asset group of Including fixed assets construction in progress DunAn thermal
DunAn right-of-use assets intangible assets long-term management classified
Environment unamortized expenses and other long-term by company management Yes
thermal assets based on the asset group that can generate requirements and business
management independent cash flows modules
Including fixed assets construction in progress
Asset group of right-of-use assets intangible assets long-term
Shanghai Datro classified
Shanghai Datro unamortized expenses and other non-current
by company management Yes
assets based on the asset group that can generate requirements and business
independent cash flows modules
1992025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(4) Specific determination method of recoverable amount
1) Determined based on the net amount after deducting disposal expenses from fair value
Impairment
Amount of
Item Book Value Recoverable Goodwill Determination of Fair Value and Key Parameters Basis for Determining KeyAmount Attributable to Disposal Expenses Parameters
Shareholders of the
Parent Company
The fair value of the Shanghai Datro
asset group was estimated using the 1) The revenue growth rate is
income approach. The future income of based on the Company's past
the asset group is based on the future Revenue growth operating performance growth
Asset group of annual free cash flow of Shanghai rate expense rate rate industry level and
Shanghai Datro 345953507.29 260864400.00 56114309.21 Datro. The disposal costs are post-tax weighted management's expectations for
determined according to the principle of average cost ofcapital discount rate market development; 2) The post-orderly realization and include tax weighted average cost of
appraisal audit legal fees and related capital discount rate is 10.25%.taxes and fees associated with the asset
disposal.Total 345953507.29 260864400.00 56114309.21
[Note] According to the Asset Evaluation Report on the Recoverable Amount of the Asset Group of Shanghai Datro Automotive Technology Co. Ltd. Involved in the
Goodwill Impairment Test of Zhejiang DunAn Artificial Environment Co. Ltd. for the Goodwill Formed from the Merger of Shanghai Datro Automotive Technology Co.Ltd. (BFYSPBZ [2026] No. 01-0238) issued by North Asia Assets Assessment Co. Ltd. the goodwill impairment amount attributable to the parent company in the current
period is CNY56114309.21. After subtracting the goodwill impairment of CNY12503141.17 provided in previous years the goodwill impairment amount attributable to
the parent company's shareholders to be provided in the current period is CNY43611168.04.
2) Determine based on the present value of expected future cash flows
Key parameters for the Basis for
Item Book Value Recoverable Amount Impairme Years in the
Key parameters for the forecast
nt amount forecast period period (growth rate and profit
stable period (growth determining key
rate) rate profit rate and parameters duringdiscount rate) the stable period
Asset group of Revenue growth rate: 7.98%- Revenue growth rate:
DunAn Environment 4478285341.84 4589170000.00 5 years + 19.49%; Gross profit margin: 0.00%; Gross profit
Pre-tax wacc
refrigeration perpetual period 16.50%-16.80%; Discount rate: margin: 16.40%; calculated from
accessories 12.72% (pre-tax) Discount rate: 12.72% industry data
2002025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Key parameters for the forecast Key parameters for the Basis for
Item Book Value Recoverable Amount Impairme Years in thent amount forecast period period (growth rate and profit
stable period (growth determining key
rate) rate profit rate and parameters duringdiscount rate) the stable period
(pre-tax)
Asset group of Revenue growth rate: 8.28%-
Revenue growth rate:
5 years + 31.40%; Gross profit margin: 0.00%; Gross profit Pre-tax waccDunAn Environment 257489026.16 2249310000.00 margin: 24.80%; calculated from
equipment perpetual period 23.02%-25.00%; Discount rate:12.72% (pre-tax) Discount rate: 12.72% industry data(pre-tax)
Asset group of Revenue growth rate: 8.31%-
Revenue growth rate:
0.00%; Gross profit Pre-tax wacc
DunAn Environment 719659831.47 2887630000.00 5 years + 20.07%; Gross profit margin:perpetual period 26.20%-26.65%; Discount rate: margin: 26.02%; calculated fromthermal 12.72% (pre-tax) Discount rate: 12.72% industry data(pre-tax)
Revenue growth rate:
Asset group of Revenue growth rate: 16.07%- 0.00%; Gross profit Pre-tax wacc
DunAn Environment 480819115.24 3087460000.00 5 years + 31.07%; Gross profit margin:
thermal management perpetual period 25.33%-27.00%; Discount rate:
margin: 27.68%; calculated from
12.72% (pre-tax) Discount rate: 12.72% industry data(pre-tax)
Total 5936253314.71 12813570000.00
[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 [2026] No. 1118) 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.
2012025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
26. Long-term unamortized expenses
Beginning Changes in the Increased amount AmortizationItem Balance scope of in the current amount in the Ending Balanceconsolidation period current period
Renovation costs
and others 37344681.11 -360733.94 20506658.79 20627485.01 36863120.95
Total 37344681.11 -360733.94 20506658.79 20627485.01 36863120.95
27. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets not offset
Ending Balance Beginning Balance
Item Deductible temporary Deferred income tax Deductible Deferred income
differences assets temporarydifferences tax assets
Accrued expenses 79596109842.46 11929513254.64 82929725894.70 12452334218.46
Assets impairment
reserves 10967131324.43 2079092020.21 12080308125.20 2282447345.97
Deductible losses 8836595091.72 1611141178.66 10248473115.97 1937363228.67
Payroll payable 2051765861.45 309969211.62 1325704081.21 198725660.01
Lease liabilities 739685610.43 182141929.54 792895907.54 194177199.77
Asset
amortization/depreciation 180396155.95 32924574.83 352912616.75 53620582.42
Changes in the fair value
of other equity 136843282.19 20526492.33 173175011.09 25976251.66
instrument investments
Others 2722015684.13 546720486.51 2627593974.97 526241081.97
Total 105230542852.76 16712029148.34 110530788727.43 17670885568.93
(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 9154034078.71 1402300601.50 8750997039.28 1330400316.88
Appraised appreciation
of assets from business
combination not under 2182410708.57 449959068.86 2490738639.45 518926980.90
the common control
Usufruct assets 662984549.74 162710614.70 771912726.22 189038125.98
Assets amortization 788644804.60 120265140.91 1012426068.01 169418314.12
Changes in the fair value
of derivative financial 74198783.18 17326832.47 94743412.42 16933857.86
assets
Long-term equity
investments 866060671.88 129909100.78 907395438.51 136109315.78
Others 1724972329.57 403929852.01 1836332243.87 440267757.89
Total 15453305926.25 2686401211.23 15864545567.76 2801094669.41
2022025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(3) Details of deferred income tax assets not recognized
Item Ending Balance Beginning Balance
Deductible losses 9169103939.83 7118650296.65
Deductible temporary differences 6550242593.89 3726336705.57
Total 15719346533.72 10844987002.22
(4) Deductible losses of deferred income tax assets not recognized due in the following years
Year Ending Amount Beginning Amount
20251014209976.41
20261175367496.821196016171.98
2027678621528.09382295484.77
20281149999642.47584010870.63
20291126069571.11573567215.78
2030 and thereafter 4270254411.37 2641494576.37
Open-ended 768791289.97 727056000.71
Total 9169103939.83 7118650296.65
28. Other non-current assets
Ending Balance Beginning Balance
Item
Book balance Impairment Book Value Book balance Impairmentreserve reserve Book Value
Monetary
investment
products and 70138315450.50 70138315450.50 57706146160.20 57706146160.20
accrued
interest
Others 362201708.87 129919500.81 232282208.06 481496403.29 121612502.44 359883900.85
Subtotal 70500517159.37 129919500.81 70370597658.56 58187642563.49 121612502.44 58066030061.05
Less:
Monetary
investment
products due 27760456021.28 27760456021.28 1533053424.66 1533053424.66
within 1
year
Total 42740061138.09 129919500.81 42610141637.28 56654589138.83 121612502.44 56532976636.39
29. Assets with restricted ownership or right-to-use
End of Period
Item
Book Value Reason for Restriction
Monetary funds 10577592111.08 Required deposit reserve earnestmoney etc.Accounts receivable 5994524.68 Pledged
Receivables financing 3513771591.88 Pledged
2032025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
End of Period
Item
Book Value Reason for Restriction
Contract assets 120750.00 Pledged
Non-current assets due within one
year 10470000000.00 Pledged
Other debt investments 7900000000.00 Pledged
Investment real estate 3977570.92 Mortgaged
Fixed assets 1515985697.50 Mortgaged
Intangible assets 675956994.18 Mortgaged
Other non-current assets 13300000000.00 Pledged
Total 47963399240.24
(Continued)
Beginning of Period
Item
Book Value Reason for Restriction
Monetary funds 36145202061.32 Required deposit reserve earnestmoney 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
year 8000000000.00 Pledged
Other debt investments 2290000000.00 Pledged
Long-term equity investments 326352154.19 Pledged
Investment real estate 3985469.17 Mortgaged
Fixed assets 2927927740.11 Mortgaged
Construction in progress 4169396.70 Mortgaged
Intangible assets 920002049.00 Mortgaged
Other non-current assets 13710000000.00 Pledged
Total 71241313406.62
30. Short-term borrowings
(1) Classification of short-term borrowings
Item Ending Balance Beginning Balance
Pledge borrowings 12946180129.39 9617880311.88
Credit borrowings 54761152316.76 28422207506.52
Other borrowings 159000000.00 791500000.00
2042025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
Subtotal 67866332446.15 38831587818.40
Accrued interest 90297092.36 177939454.82
Total 67956629538.51 39009527273.22
(2) Overdue and unpaid short-term borrowings
None.
31. Derivative financial liabilities
Item Ending Balance Beginning Balance
Foreign exchange derivatives 65094952.36 170740734.87
Total 65094952.36 170740734.87
32. Notes payable
Type Ending Balance Beginning Balance
Banker's acceptance bill 15544348535.69 14479000765.12
Total 15544348535.69 14479000765.12
[Note] As of December 31 2025 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 39522566838.08 43413420251.59
Others 2581374082.16 3677900492.46
Total 42103940920.24 47091320744.05
(2) Important payables aged over 1 year
None.
34. Contract liabilities
Item Ending Balance Beginning Balance
Payment for goods and pre-sale
housing 15206576385.44 12491059928.53
Total 15206576385.44 12491059928.53
[Note] Contract liabilities mainly consist of advance payments from distributors for goods.
35. Deposits from customers and interbank
Item Ending Balance Beginning Balance
Time deposits 199227239.98 285233783.98
2052025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
Current deposits 2488025.25 13758901.35
Subtotal 201715265.23 298992685.33
Accrued interest 7207837.57 8795633.70
Total 208923102.80 307788319.03
36. Payroll payable
(1) List of payroll payable
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
I. Short-term payroll 4362967729.98 10478707054.87 11441320675.47 3400354109.38
II. Post-employment benefits —
defined contribution plan 27689489.57 986416812.68 985934882.29 28171419.96
Total 4390657219.55 11465123867.55 12427255557.76 3428525529.34
(2) List of short-term payroll
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
1. Wages bonuses subsidies and
allowances 3033363640.55 8596219341.07 9666339365.84 1963243615.78
2. Employee benefits 1620357.85 789331544.04 787245353.54 3706548.35
3. Social insurance premiums 7357856.80 376966048.15 377289889.41 7034015.54
Including: Medical insurance
premiums 6648207.31 327896293.18 328117643.20 6426857.29
Work-related injury
insurance premiums 674900.03 42014712.52 42087886.72 601725.83
Maternity insurance
premiums 34749.46 7055042.45 7084359.49 5432.42
4. Housing provident funds 5207188.69 450518766.18 449469410.83 6256544.04
5. Labor union expenditures and
employee education funds 1315418686.09 265671355.43 160976655.85 1420113385.67
Total 4362967729.98 10478707054.87 11441320675.47 3400354109.38
(3) List of post-employment benefits — defined contribution plan
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
1. Basic endowment insurance
premiums 26103454.57 940921281.08 941008479.64 26016256.01
2. Unemployment insurance
premiums 1586035.00 45495531.60 44926402.65 2155163.95
Total 27689489.57 986416812.68 985934882.29 28171419.96
37. Taxes and dues payable
Item Ending Balance Beginning Balance
Business income tax 861819033.06 1942399837.72
Value-added tax 801751158.76 582794381.59
Others 268338348.66 187850831.71
2062025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
Total 1931908540.48 2713045051.02
38. Other payables
Item Ending Balance Beginning Balance
Dividends payable 5591546379.65 3889950.33
Other payables [Note 1] 5649443259.64 4553021754.89
Total 11240989639.29 4556911705.22
[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 5585741622.87 602881.87
Others 5804756.78 3287068.46
Total 5591546379.65 3889950.33
[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 2698315049.65 1626920031.91
Enterprise borrowing and interest 1547471401.00 1503105131.31
Cash pledge and deposit 1403656808.99 1422996591.67
Total 5649443259.64 4553021754.89
2) Other important payables aged over 1 year
Item Ending Balance Reasons for Failing to Repay orCarry-over
Company 1 1072646600.02 Unsatisfied repayment conditions
Total 1072646600.02
39. Non-current liabilities due within one year
Item Ending Balance Beginning Balance
Long-term borrowings due within 1
year 13573121799.56 15479259752.69
Long-term payables due within1 year 7910485.23 11983224.42
Lease liabilities due within 1 year 87081046.75 85936308.78
Total 13668113331.54 15577179285.89
2072025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
40. Other current liabilities
Item Ending Balance Beginning Balance
Sales rebate 48571252011.64 49056364849.24
Others 11643528708.93 11281845506.12
Total 60214780720.57 60338210355.36
41. Long-term borrowings
Item Ending Balance Beginning Balance
Pledge borrowings 5929940000.00 9438920000.00
Credit borrowings 9433881438.65 22688108497.49
Mortgaged borrowings 1325646702.88 1546869354.24
Guaranteed borrowings 6000000.00 8000000.00
Subtotal 16695468141.53 33681897851.73
Add: Accrued interests 12634229.76 27179823.09
Less: Long-term borrowings due
within 1 year 13573121799.56 15479259752.69
Total 3134980571.73 18229817922.13
42. Lease liabilities
Item Ending Balance Beginning Balance
Lease liabilities 739878353.06 797227498.47
Less: Lease liabilities due within 1
year 87081046.75 85936308.78
Total 652797306.31 711291189.69
43. Long-term payables
Item Ending Balance Beginning Balance
Financial liabilities formed after sale
and leaseback 7910485.23 19895652.51
Subtotal 7910485.23 19895652.51
Less: Long-term payables due within
1 year 7910485.23 11983224.42
Total 7912428.09
44. Long-term payroll payable
(1) Table of long-term payroll payable
Item Ending Balance Beginning Balance
Net liabilities of post-employment
benefits — defined benefit plan 211187166.00 232102639.00
Others 585120.06 599890.58
2082025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
Total 211772286.06 232702529.58
(2) Changes in the defined benefit plan
1) Present value of obligations under the defined benefit plan
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
I. Beginning balance 232102639.00 195057663.00
II. Defined benefit cost included in the
current profits and losses -18046670.00 9765880.00
1. Service costs in the current period 4249870.00 3487947.00
2. Net interest 4565668.00 5267560.00
3. Impact of adding new personnel 1895571.00 1010373.00
4. Past service cost - plan changes -28757779.00
III. Defined benefit cost included in
other comprehensive income 4552141.00 34144434.00
Including: actuarial gains (losses
expressed with "?") 4552141.00 34144434.00
IV. Other changes -7420944.00 -6865338.00
Including: Paid benefits -7420944.00 -6865338.00
V. Ending balance 211187166.00 232102639.00
2) Net liabilities (net assets) of the defined benefit plan
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
I. Beginning balance 232102639.00 195057663.00
II. Defined benefit cost included in the
current profits and losses -18046670.00 9765880.00
III. Defined benefit cost included in
other comprehensive income 4552141.00 34144434.00
IV. Other changes -7420944.00 -6865338.00
V. Ending balance 211187166.00 232102639.00
(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
Under the requirements of the Accounting Standards for Business Enterprises No. 9 —
Employee benefits 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
2092025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
the balance sheet date. The annual growth rates and annual turnover rate
s of all benefits are based on the actual measurement data of the Company and the mortality rate is recognized
by referring to the experience life table for the insurance business of China Life Insurance (Group) Company.公司根据《企业会计准则第9号—职工薪酬》的要求，折现时所采用的折现率根据资产负债表日与设定受益计划义务期限和币种相匹配的国债或活跃市场上的高质量公司债券的市场收益率确定；所有福利年增长率和年离职率根据公司实际测算数据为准；死亡率参照中国人寿保险业务经验生命表确定。
45. Deferred income
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance Cause of Formation
Governm 3407481223.77 333722941.64 417615730.73 3323588434.68 Related toent grants assets/incomes
Unconfirmed profit
Others 2268230.36 512474.40 1432566.24 1348138.52 and loss from sale and
leaseback
Total 3409749454.13 334235416.04 419048296.97 3324936573.20
46. Share capital
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
Total number of
stocks 5601405741.00 5601405741.00
Total 5601405741.00 5601405741.00
47. Capital reserves
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
Share capital
premium 361662160.37 128323803.21 361662160.37 128323803.21
Other capital reserves 110517209.13 1448342073.56 6552869.28 1552306413.41
Total 472179369.50 1576665876.77 368215029.65 1680630216.62
[Note 1] The share of equity incentive ? employee stock ownership plan expenses in the current period
increased the capital reserves ? other capital reserves by CNY1445649873.56;
[Note 2] Equity transactions occurred in the subsidiary in the current period resulting in an increase of
CNY121770933.93 in the capital reserves - share capital premium.[Note 3] The transfer of treasury shares of the Phase III Employee Stock Ownership Plan to the employee
stock ownership plan platform resulted in a decrease of CNY361662160.37 in the capital reserves - share
capital premium.[Note 4] In the current period the conditions for the first release period of the subsidiary's restricted share
incentive plan were met resulting in an increase of CNY6552869.28 in capital reserves - share capital
premium and a decrease of CNY6552869.28 in capital reserves - other capital reserves.[Note 5] In the current period the controlling subsidiary recognized capital reserves of CNY2692200.00
from changes in the capital reserves of an associate.
48. Treasury share
2102025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
Repurchased share 2616565976.68 1160171315.73 2073235786.31 1703501506.10
Total 2616565976.68 1160171315.73 2073235786.31 1703501506.10
[Note 1] On January 21 2025 the Company transferred 63195095 shares from the Company's special
securities account for repurchase to the special account of "Gree Electric Appliances Inc. of Zhuhai ? Phase
III Employee Stock Ownership Plan" through non-trading transfer and the treasury shares decreased by
CNY2063319851.75 and the transferred shares accounted for 1.13% of the Company's total share capital at
that time. At the same time the confirmation of stock repurchase obligations in this period increased the
treasury shares by CNY1133088053.35;
[Note 2] In the current period the controlling subsidiary's confirmation of equity incentive repurchase
obligations resulted in a total increase of CNY27083262.38 in treasury shares. The conditions for the first
release period of the 2024 restricted share incentive plan were met and the equity incentive repurchase
obligations were terminated resulting in a decrease of CNY7813818.42 in treasury shares. For those who no
longer met the relevant incentive conditions due to incomplete satisfaction of individual-level performance
appraisal requirements or unlocking conditions the restricted shares were repurchased and cancelled resulting
in a decrease of CNY2102116.14 in treasury shares.
2112025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
49. Other comprehensive income
Amount Incurred in the Current Period
Less: Amount Less: Amount
included in included in
Beginning Amount
other other
Item incurred before comprehensive comprehensive Amount
Amount
Balance income tax in income in the income in the Less: Income attributable to the
attributable to Ending Balance
the current previous period previous period tax expenses parent company
minority
period but transferred but transferred after tax
shareholders
to the profits to retained after tax
and losses in the earnings in the
current period current period
I. Other comprehensive
income cannot be reclassified -141139433.95 370788069.70 374908461.04 -750455.67 -3369935.67 -144509369.62
into profits and losses
Changes arising from
remeasurement of the defined -121990126.00 -4552141.00 -4552141.00 -126542267.00
benefit plan
Other comprehensive income
that cannot be transferred to
profits and losses under the 769781638.79 -41334766.63 -6200215.00 -35134551.63 734647087.16
equity method
Changes in the fair value of
other equity instrument -788930946.74 416674977.33 374908461.04 5449759.33 36316756.96 -752614189.78
investments
II. Other comprehensive
income to be reclassified into 323157719.72 -5082424.25 21081781.12 1896437.73 -52990623.96 24929980.86 270167095.76
profits and losses
Other comprehensive income
that can be transferred to
profits and losses under the -130561.02 1666511.55 916691.34 749820.21 786130.32
equity method
Changes in the fair value of
other debt investments 14164310.61 -10619951.93 -3339830.68 -7261274.28 -18846.97 6903036.33
Reserves for credit
impairment of other debt 377675.26 39823458.82 23728581.12 4790733.41 6469154.30 4834989.99 6846829.56
investments
Cash flow hedging reserves -2219839.96 291500.00 -2646800.00 445535.00 2492765.00 272925.04
2122025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Amount Incurred in the Current Period
Less: Amount Less: Amount
included in included in
Amount other otherBeginning comprehensive comprehensive Amount AmountItem Balance incurred beforeincome tax in income in the income in the Less: Income attributable to the
attributable to Ending Balance
the current previous period previous period tax expenses parent company
minority
period but transferred but transferred after tax
shareholders
to the profits to retained after tax
and losses in the earnings in the
current period current period
Difference arising from
translation of financial 310966134.83 -36243942.69 -55607960.32 19364017.63 255358174.51
statements in foreign currency
Total 182018285.77 365705645.45 21081781.12 374908461.04 1145982.06 -56360559.63 24929980.86 125657726.14
2132025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
50. Special reserves
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
Safe production
expenses 31676129.88 6051563.43 2829343.97 34898349.34
Total 31676129.88 6051563.43 2829343.97 34898349.34
51. Surplus reserves
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
Statutory surplus
reserves 1789443715.25 15647566.99 570954146.72 1234137135.52
Total 1789443715.25 15647566.99 570954146.72 1234137135.52
[Note 1] The carry-over of other comprehensive income to retained earnings increased the surplus reserve by
CNY15647566.99;
[Note 2] In the current period the transfer of treasury shares of the Company's Phase III Employee Stock
Ownership Plan and the acquisition of minority equity interests in subsidiaries resulted in a decrease of
CNY570954146.72 in the surplus reserve.
52. General risk reserves
Item Beginning Balance Increase in the Decrease in theCurrent Period Current Period Ending Balance
General risk reserves 509245480.58 3673515.92 512918996.50
Total 509245480.58 3673515.92 512918996.50
53. Undistributed profits
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Undistributed profits at the end of the
previous period before adjustment 131447496201.09 112211650801.62
Total adjustment of undistributed
profits at the beginning of the period
(+ for increase ? for decrease)
Undistributed profit at the beginning
of the period after adjustment 131447496201.09 112211650801.62
Add: Net profit attributable to owners
of the parent company for the current 29003103411.66 32184570372.28
period
Less: Withdrawal of statutory surplus
reserves 32929994.98
Withdrawal of general risk reserves 3673515.92 2022363.18
Common share dividends payable
[Note] 22340554964.00 13142225877.48
Add: Amount transferred from other
comprehensive income to retained 336780012.17 228453262.83
earnings
Undistributed profit at the end of the
period 138443151145.00 131447496201.09
[Note 1] Under the resolution of the 1st Extraordinary General Meeting of Shareholders in 2025 on April 22
2025 the Company distributed cash dividends to all shareholders at a rate of CNY10.00 (tax inclusive) per 10
2142025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
shares. Based on the total share capital of 5601405741 shares less 16267000 shares held in the Company's
repurchase account a total cash dividend of CNY5585138741.00 should be distributed;
[Note 2] Under the resolution of the 2024 Annual General Meeting of Shareholders on June 30 2025 the
Company distributed cash dividends to all shareholders at a rate of CNY20.00 (tax inclusive) per 10 shares.Based on the total share capital of 5601405741 shares less 16267000 shares held in the Company's
repurchase account a total cash dividend of CNY11170277482.00 should be distributed;
[Note 3] Under the resolution of the 2nd Extraordinary General Meeting of Shareholders in 2025 on
November 24 2025 the Company distributed cash dividends to all shareholders at a rate of CNY10.00 (tax
inclusive) per 10 shares. Based on the total share capital of 5601405741 shares less 16267000 shares held
in the Company's repurchase account a total cash dividend of CNY5585138741.00 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 153781972343.46 103423626894.66 169715353002.47 114476752530.27
Other business 16665086190.11 16217726321.55 19448301062.17 19019367093.09
Total 170447058533.57 119641353216.21 189163654064.64 133496119623.36
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
industry 153781972343.46 103423626894.66 169715353002.47 114476752530.27
Total 153781972343.46 103423626894.66 169715353002.47 114476752530.27
Classified by product
type
Including: Household
appliances 133055208627.13 86112528829.42 148559931838.58 96691946304.39
Industrial
products and 17380701260.95 14680898286.93 17246185690.02 14537492029.56
green energy
Smart device 680790474.57 540329948.40 424131758.64 313649678.84
Others 2665271980.81 2089869829.91 3485103715.23 2933664517.48
Total 153781972343.46 103423626894.66 169715353002.47 114476752530.27
Classified by region
Including: Domestic
sales 126407077425.42 82766067955.42 141512822056.59 93045292807.84
Export sales 27374894918.04 20657558939.24 28202530945.88 21431459722.43
Total 153781972343.46 103423626894.66 169715353002.47 114476752530.27
55. Interest income and interest expenses
Item Amount Incurred in the Current Amount Incurred in the PreviousPeriod Period
2152025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Amount Incurred in the Current Amount Incurred in the PreviousPeriod Period
Interest income 671102741.84 874417456.85
Including: Interest income from deposits in
other banks and central banks 431576611.83 573713739.27
Interest income from the disbursement
of loans and advances 32460003.17 146194865.10
Others 207066126.84 154508852.48
Interest expense 26783481.38 158700589.03
Including: Expenses from transactions with
financial institutions 14659245.60 144920539.03
Others 12124235.78 13780050.00
Net interest income 644319260.46 715716867.82
56. Taxes and surcharges
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Urban maintenance & construction tax 539826060.47 509067607.82
Education surcharge 390386155.27 367982324.72
Building tax 347376077.23 316450996.41
Land use tax 153827167.19 148331976.12
Others 481007674.31 456994890.37
Total 1912423134.47 1798827795.44
57. Sales expenses
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Sales expenses 8410739569.54 9753022469.17
Total 8410739569.54 9753022469.17
[Note] In 2025 the sales expenses mainly included installation expenses warehousing expenses loading and
unloading fees promotion expenses and employee benefits totally accounting for more than 80% of the total
sales expenses.
58. Administrative expenses
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Administrative expenses 5180260235.38 6057608713.94
Total 5180260235.38 6057608713.94
[Note] In 2025 the administrative expenses included the employee benefits material consumption depreciation
and amortization totally accounting for more than 80% of the total overhead expenses.
59. R&D expenses
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
2162025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
R&D expenses 6463100763.66 6904084981.92
Total 6463100763.66 6904084981.92
[Note] In 2025 the R&D expenses mainly included the employees' labor cost and direct investment cost
accounting for more than 80% of the total R&D expenses.
60. Financial expenses
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Interest expenses 1964864912.15 2378372721.06
Less: Interest income [Note] 5885051089.40 5999412762.36
Add: Exchange profits and losses -251325953.52 250076580.51
Commissions 79715636.03 66617496.60
Interest expenses for defined benefit
obligation 4567311.07 5267560.00
Others 1140787.20 -1339154.77
Total -4086088396.47 -3300417558.96
[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
Sources of Other Income Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Government grants 980642616.63 1916950375.04
Value-added tax additional deduction
and others 358086997.91 807707443.33
Total 1338729614.54 2724657818.37
62. Income from investment
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Investment income obtained from
trading financial instruments 279328777.75 460296091.05
Long-term equity investment income
measured by the equity method 36369594.25 14219875.64
Investment income from derivative
financial instruments -37033030.37 150970608.40
Others 123582706.20 -65204728.73
Total 402248047.83 560281846.36
63. Income from changes in fair value
Sources of Income from Changes in
Fair Value Amount Incurred in the Current Period
Amount Incurred in the Previous
Period
Derivative financial instruments 103864069.41 -273556968.51
Trading financial instruments 117689555.83 -5658203.37
2172025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Sources of Income from Changes in
Fair Value Amount Incurred in the Current Period
Amount Incurred in the Previous
Period
Others -57298075.00 5239667.54
Total 164255550.24 -273975504.34
64. Credit impairment losses
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Bad debt losses 567273870.69 -528495906.55
Impairment losses of loans and
advances -55568417.23 2985793.17
Impairment losses of buying back the
sale 3077495.66
Total 511705453.46 -522432617.72
65. Asset impairment losses
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Inventory falling price losses 553793.70 -144034693.43
Goodwill impairment losses -43611168.04 -266698403.06
Contract asset impairment losses 50781070.47 243583872.94
Fixed asset impairment losses -352568639.87 -333067391.82
Impairment losses of the construction
in progress -996133481.86 -139998209.31
Other asset impairment losses -16146526.89 -46604377.59
Total -1357124952.49 -686819202.27
66. Income from disposal of assets
Source of Income from Disposal of
Assets Amount Incurred in the Current Period
Amount Incurred in the Previous
Period
Gains from disposal of non-current
assets (losses expressed with "?") 52212257.62 16965090.94
Total 52212257.62 16965090.94
67. Non-operating revenues
Amount Incurred in the Amount Incurred in the Amount included in non-Item Current Period Previous Period recurring profits and lossesin the current period
Net profit from destruction
scrap of non-current assets 3083817.41 2062553.28 3083817.41
Non-operating government
subsidies 22840.00 3781050.00 22840.00
Others 76195043.89 66347364.54 76195043.89
Total 79301701.30 72190967.82 79301701.30
68. Non-operating expenses
2182025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Amount Incurred in the Amount Incurred in the
Amount included in non-
Current Period Previous Period recurring profits and lossesin the current period
Net losses from destruction
scrap of non-current assets 15662709.53 117645205.80 15662709.53
Others 100273592.93 46987839.32 100273592.93
Total 115936302.46 164633045.12 115936302.46
69. Income tax expenses
(1) Table of income tax expenses
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Income tax expenses in the current
period 4938057705.47 5695658290.98
Deferred income tax expenses 843855229.49 -1170731730.03
Total 5781912934.96 4524926560.95
(2) Adjustment of accounting profits and income tax expenses
Item Amount Incurred in the Current Period
Total profits 34644658951.12
Income tax expenses calculated at the statutory/applicable
tax rate 5196698842.67
Impact by different tax rates applicable to subsidiaries 123745930.62
Impact by non-deductible costs expenses and losses 56089475.77
Impact of deductible temporary differences or deductible
losses on unrecognized deferred income tax assets at the 1156414876.08
end of the period
Others -751036190.18
Income tax expenses 5781912934.96
70. Items of cash flow statement
(1) Cash flows related to operating activities
1) Other cash received related to operating activities
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Government grants 868886645.06 1799273956.24
Interest income 526443161.94 315360111.29
Net decrease in restricted funds related
to operating activities such as bills and 15667164024.70
guarantee deposits
Cash pledges deposits and others 1222074434.49 1134685096.06
Total 18284568266.19 3249319163.59
2) Other cash payments related to operating activities
2192025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Cash payments for sales expenses 6778770943.20 7185012975.87
Cash payments for overhead expenses
and R&D expenses 1567955758.34 1648760232.90
Net increase in restricted funds related
to operating activities such as bills 950809072.53
guarantees and margin deposits
Return of advance project funds 21684919.23
Payment of performance bid security
and others 858848385.90 1117979551.09
Total 9205575087.44 10924246751.62
(2) Cash related to investment activities
1) Cash received related to investment activities
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Redemption of monetary investment
products large certificates of deposit
debt instrument investments and other 28454978293.91 27116400779.20
products
Total 28454978293.91 27116400779.20
2) Cash payment related to investment activities
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Payment of monetary investment
products large certificates of deposit
debt instrument investments and other 61660810246.69 42427405328.01
products
Total 61660810246.69 42427405328.01
3) Other cash received related to investment activities
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Net inflow of forward foreign
exchange settlement and purchase 165860138.00
Time deposit interest income 5246873262.88 4951508980.79
Others 3724935870.89 48331796.10
Total 8971809133.77 5165700914.89
4) Other cash payment related to investment activities
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Net outflow of forward foreign
exchange settlement and purchase 49825873.25
Net increase in time deposits 24911877903.12 715596870.46
Others 24339154.10 3724962434.47
Total 24986042930.47 4440559304.93
(3) Cash related to financing activities
1) Other cash related to financing activities
2202025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Net decrease in pledge deposits on
borrowings 14083182364.73 5382824066.67
Collection of employee stock
ownership plan funds 1133088053.35
Total 15216270418.08 5382824066.67
2) Other cash payments related to financing activities
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Payments for lease liabilities 56802915.10 131898004.16
Others 28288054.70 352948576.33
Total 85090969.80 484846580.49
3) Changes in liabilities arising from financing activities
Increase in the Current Period Decrease in the Current Period
Item BeginningBalance Ending Balance
Cash changes Non-cash changes Cash changes Non-cashchanges
Bank loans and
others 74241605731.86 72504157963.57 1806135524.69 62331785424.09 86220113796.03
Dividends payable 3889950.33 22388357618.42 16800701189.10 5591546379.65
Lease liabilities
(including lease
liabilities due 797227498.47 56802915.10 546230.31 739878353.06
within 1 year)
Total 75042723180.66 72504157963.57 24194493143.11 79189289528.29 546230.31 92551538528.74
71. Supplementary for cash flow statement
(1) Supplementary for cash flow statement
Supplementary Amount in the Current Period Amount in the Previous Period
1. Adjusting net profit to cash flow
from operating activities:
Net profits 28862746016.16 32371069287.35
Add: Assets and credit impairment
reverses 845419499.03 1209251819.99
Depreciation of fixed assets
depreciation of investment real estate 4607039121.11 4811341434.60
and amortization of right-to-use assets
Amortization of intangible assets 447545365.86 445567650.39
Losses on disposal of fixed assets
intangible assets and other long-term -52212257.62 -16965090.94
assets (income expressed with “?”)
Loss from scrapping fixed assets
(income expressed with “?”) 12578892.12 115582652.52
Losses from changes in fair value
(income expressed with “?”) -164255550.24 273975504.34
Financial expenses (income expressed
with “?”) -3996527158.49 -3108257855.15
Investment losses (income expressed
with “?”) -571766852.77 -765303511.76
Decrease in deferred income tax assets
(increase expressed with “?”) 951718361.61 -1100364408.99
Increase in deferred income tax
liabilities (decrease expressed with -104275146.59 -68885485.14
2212025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Supplementary Amount in the Current Period Amount in the Previous Period
“?”)
Decrease of inventories (increase
expressed with “?”) -274322702.38 4545947126.79
Decrease in operating receivables
(increase expressed with “?”) 1983909648.55 -512406905.95
Increase in operating payables
(decrease expressed with “?”) -3256224732.45 -7735915199.13
Others [Note] 17091742250.12 -1095386448.26
Net cash flows from operating
activities 46383114754.02 29369250570.66
2. Major investment and financing
activities not involving cash receipts
and payment:
3. Net changes in cash and cash
equivalents:
Ending balance of cash 27566460949.51 21140958080.12
Less: Beginning balance of cash 21140958080.12 30914196186.41
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash
equivalents 6425502869.39 -9773238106.29
[Note] "Others" includes the net increase in statutory deposit reserves of CNY35123619.38 the net decrease in
bill deposits and others of CNY15667164024.70 and the expenses recognized for equity-settled share-based
payments in the current period of CNY1459701844.80.
(2) Net cash payment for the acquisition of subsidiaries in the current period
None.
(3) Net cash from the disposal of subsidiaries this year
None.
(4) Composition of cash and cash equivalents
Item Ending Balance Beginning Balance
I. Monetary funds 110553006650.89 113900461797.94
Including: Cash on hand 317120.96 493036.20
Bank deposits for payment at
any time 13916698082.57 14705329427.85
Other monetary funds for
payment at any time 578571096.14 802982715.77
Deposits in the central bank for
payment at any time 9511698.63 9336080.31
Deposits in other banks for
payment at any time 13061362951.21 5622816819.99
Time deposits and accrued
interest not in the category of cash and 72408953590.30 56614301656.50
cash equivalents
Deposits with restricted use 10577592111.08 36145202061.32
2222025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance Beginning Balance
II. Cash equivalents
III. Ending balance of monetary funds
and cash equivalents 110553006650.89 113900461797.94
Less: Time deposits and accrued
interest not in the category of cash and 72408953590.30 56614301656.50
cash equivalents
Less: Deposits with restricted use 10577592111.08 36145202061.32
Including: Statutory deposit reserves 1902339726.09 1867216106.71
Bill letter of credit and other
deposits 8675252384.99 34277985954.61
IV. Ending balance of cash and cash
equivalents 27566460949.51 21140958080.12
(5) Restricted usage scope but still listed as cash and cash equivalents
None.
2232025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
72. Annotations to items in the statement of changes in owner's equity
None.
73. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Item USD converted into HKD converted into EUR converted into BRL converted into THB converted intoCNY CNY CNY CNY CNY Others Total in CNY
Exchange rate as of
December 31 2025 7.0288 0.9032 8.2355 1.2776 0.2225 Not applicable Not applicable
Monetary funds 2492540614.18 4173213352.09 2712067757.55 506917291.88 65720476.57 31561730.85 9982021223.12
Accounts receivable 3397144955.19 37231918.34 41152491.83 1120471365.47 141421660.08 20950264.07 4758372654.98
Contract assets 628147.69 628147.69
Other receivables 5790241.31 281804.56 344681.53 642796.18 2213300.94 5848555.34 15121379.86
Other non-current
assets 496967.72 695012.38 1191980.10
Short-term
borrowings 4771671319.60 4771671319.60
Accounts payable 198242593.65 8408218.60 10427677.03 102306040.23 51005926.35 12297283.46 382687739.32
Other payables 193557141.45 2840072.77 14822706.02 2978481.58 1890316.89 298542.84 216387261.55
(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 2025 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 2025.
2242025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
74. Lease
1) The simplified short-term lease or low-value asset lease expenses are CNY83023428.97.
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 as a lessor
Including: Income related to variable
Item Rental incomes lease payments not included in lease
payments
Operating lease as a lessor 208002741.20
Total 208002741.20
VI. Change in the consolidation scope
1. Business combinations not under common control
None.
2. Business combination under common control
None.
3. Reverse acquisitions
None.
2252025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
4. Disposal of subsidiaries
Determinati Amount of
The on Methods Other
Difference Gains and Main Comprehen
Between the Proporti Book Value of Fair Value of or Assumptio
sive
Disposal Losses ns of the Income
Disposal on of the Remaining the Remaining Related to
Disposal Disposal Methods Basis for
Price and the
Share of the Remaini Equity at the Equity at the
Arising Fair Value
Determinin ng Consolidated Consolidated from of the
Equity
Time Point Price of the Ratio of the of the InvestmentName of of Losing Time Point of Time Point Time g the Time
Subsidiaries' Remeas Remaining
Subsidiary Point of Net Assets at
Equity Financial Financial of the
Control Losing of Losing Point of the Level of on the Statement Statement
uremen Equity on
t of the Date of Original
Control Control (%) Losing LosingControl Consolidated
Date of Level on the Level on the
Losing Date of Date of Remain Losing
Subsidiary
Control Statements Transferred
Correspondi Control Losing Losing
ing Control at into
ng to the (%) Control Control
Equity the
at Fair Consolidate Investment
Disposal Value d Financial Profits and
Investment Statement Losses or
Level RetainedEarnings
Tieling
Fengyu
Agricultura
l 2025/4/16 291000.00 51.00 Sale
Business
registration -516005.66
Technology
Co. Ltd.Reverse
Shanghai Passive calculationGree Green
Energy 2025/6/25 20.00 dilution Business
method
Technology of registration
-507435.14 40.00 1024870.30 1024870.30 based on
equity capitalCo. Ltd. increase
price
Bayan Nur
Huatai
Technology 2025/12/19 100.00 Cancelle Business
Developme d registration
nt Co. Ltd.
5. Change of consolidation scope for other reasons
2262025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(1) Newly established entity in the current period:
Name Date of Establishment Net Assets at the End of the Period Net Profit from the Combination Date to theEnd of the Period
Gree Digital Technology (Xuzhou) Co. Ltd. 2025/1/2 2881665.90 -118334.10
Gree Digital Technology (Shanxi) Co. Ltd. 2025/1/2 2625977.15 1625977.15
Gree Digital Technology (Shandong) Co.Ltd. 2025/1/6 3271427.45 271427.45
Gree Digital Technology (Shenzhen) Co.Ltd. 2025/1/7 348860.15 -651139.85
Gree Digital Technology (Foshan) Co. Ltd. 2025/1/7 822221.57 -177778.43
Gree Digital Technology (Guangzhou) Co.Ltd. 2025/1/7 655804.86 -344195.14
Gree Digital Technology (Fuzhou) Co. Ltd. 2025/1/9 1201859.94 201859.94
Gree Digital Technology (Shanghai) Co.Ltd. 2025/1/13 5032177.58 32177.58
Gree Digital Technology (Ganzhou) Co. Ltd. 2025/1/13 1096419.61 96419.61
Gree Digital Technology (Hubei) Co. Ltd. 2025/1/13 1242615.28 242615.28
Gree Digital Technology (Nanchang) Co.Ltd. 2025/1/13 6300848.40 5300848.40
Gree Digital Technology (Anhui) Co. Ltd. 2025/1/13 9427114.64 4427114.64
Gree Digital Technology (Yunnan) Co. Ltd. 2025/1/14 4947295.06 -52704.94
Gree Digital Technology (Dongguan) Co.Ltd. 2025/1/14 1003206.58 3206.58
Gree Digital Technology (Guizhou) Co. Ltd. 2025/1/16 5012446.55 12446.55
Gree Digital Technology (Xiamen) Co. Ltd. 2025/1/16 1000203.16 203.16
Gree Digital Technology (Liaoning) Co. Ltd. 2025/1/17 2952039.64 -47960.36
Gree Digital Technology (Guangxi) Co. Ltd. 2025/1/20 2237897.53 1237897.53
Gree Digital Marketing (Zhuhai) Co. Ltd. 2025/1/20 3592140.99 2592140.99
2272025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Name Date of Establishment Net Assets at the End of the Period Net Profit from the Combination Date to theEnd of the Period
Gree Digital Technology (Hainan) Co. Ltd. 2025/1/20 2486804.66 1486804.66
Gree Digital Technology (Beijing) Co. Ltd. 2025/1/20 1002830.25 2830.25
Gree Digital Technology (Shaanxi) Co. Ltd. 2025/1/21 5010313.94 10313.94
Gree Digital Technology (Chongqing) Co.Ltd. 2025/1/21 1678635.52 678635.52
Gree Digital Technology (Tianjin) Co. Ltd. 2025/1/22 1504306.07 504306.07
Gree Digital Technology (Zhejiang) Co. Ltd. 2025/3/17 -5022.90 -5022.90
Gree Electric Enterprises (Baotou) Ltd. 2025/9/16 -15327.69 -15327.69
DunAn Automotive Thermal Management
Technology (Thailand) Co. Ltd. 2025/11/11 21695594.13
(2) Entities decreased in the current period are as follows:
As of the end of 2025 Gree Information Technology Co. Ltd. of Zhuhai was transferred to the liquidation group and the Company no longer controls this entity.VII. Equity in other entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Main Shareholding Ratio (%) Voting
S/N Name of Subsidiary Registered Capital Business Place of Right
Location Registration
Nature of Business Proportion Acquisition MethodDirect Indirect (%)
1 Gree (Chongqing) Electric Appliances Co. Ltd. 230000000.00 Chongqing Chongqing IndustrialCity City manufacture 97.00 97.00 Establishment
2 Zhuhai Landa Compressor Co. Ltd. 93030000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00
Business combination
under common control
3 Zhuhai Gree Electrical Co. Ltd 1669315586.15 Zhuhai City Zhuhai City Industrial 100.00 100.00 Business combinationmanufacture under common control
4 Zhuhai Gree Xinyuan Electronics Co. Ltd. 126180000.00 Zhuhai City Zhuhai City Industrial Business combinationmanufacture 100.00 100.00 under common control
2282025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Main Place of Shareholding Ratio (%)
Voting
S/N Name of Subsidiary Registered Capital Business RightRegistration Nature of Business Proportion Acquisition MethodLocation Direct Indirect (%)
5 Zhuhai Kaibang Motor Manufacturing Co. Ltd. 82000000.00 Zhuhai City Zhuhai City Industrial 100.00 100.00 Business combinations notmanufacture under common control
6 Gree (Hefei) Electric Appliances Co. Ltd. 150000000.00 Hefei City Hefei City Industrialmanufacture 100.00 100.00 Establishment
7 Gree (Zhongshan) Small Home Appliances Co. 30000000.00 Zhongshan Zhongshan IndustrialLtd. City City manufacture 100.00 100.00 Establishment
8 Zhuhai Gree Group Finance Company Limited 3000000000.00 Zhuhai City Zhuhai City Finance 99.54 0.46 100.00 Business combinationunder common control
9 Gree Electric Appliances (Brazil) Co. Ltd. 659342914.36 Manaus Manaus IndustrialBrazil Brazil manufacture 100.00 100.00 Establishment
10 Hong Kong Gree Electric Appliances Sales 106490.00 Kowloon Kowloon Business combinations notLimited Hong Kong Hong Kong Sales 100.00 100.00 under common control
11 Shanghai Gree Air Conditioners Sales Co. Ltd. 2000000.00 Shanghai ShanghaiCity City Sales 90.00 9.70 99.70 Establishment
12 Zhuhai Gree Daikin Precision Mold Co. Ltd. 395881113.76 Zhuhai City Zhuhai City Industrialmanufacture 51.00 51.00 Establishment
13 Zhuhai Gree Daikin Device Co. Ltd. 555233063.00 Zhuhai City Zhuhai City Industrialmanufacture 51.00 51.00 Establishment
14 Zhuhai Gree Green Refrigeration TechnologyResearch Center Co. Ltd. 116040000.00 Zhuhai City Zhuhai City
Technical research
and development 100.00 100.00 Establishment
15 Gree (Zhengzhou) Electric Appliances Co. Ltd. 20000000.00 Zhengzhou Zhengzhou IndustrialCity City manufacture 100.00 100.00 Establishment
16 Gree (Wuhan) Electric Appliances Co. Ltd. 100000000.00 Wuhan City Wuhan City Industrialmanufacture 100.00 100.00 Establishment
17 Zhengzhou Gree Green Resources Recycling Co. Zhengzhou Zhengzhou IndustrialLtd. 50000000.00 City City manufacture 100.00 100.00 Establishment
18 Hunan Green Resources Recycling Co. Ltd. 50000000.00 Ningxiang Ningxiang IndustrialCounty County manufacture 100.00 100.00 Establishment
19 Gree (Wuhu) Electric Appliances Co. Ltd. 20000000.00 Wuhu City Wuhu City Industrialmanufacture 100.00 100.00 Establishment
20 Wuhu Green Resources Recycling Co. Ltd. 50000000.00 Wuhu City Wuhu City Industrialmanufacture 100.00 100.00 Establishment
21 Gree (Shijiazhuang) Small Home Appliances Co.Ltd. 10000000.00
Shijiazhuang Shijiazhuang Industrial
City City manufacture 100.00 100.00 Establishment
22 Shijiazhuang Green Resources Recycling Co.Ltd. 50000000.00
Shijiazhuang Shijiazhuang Industrial
City City manufacture 100.00 100.00 Establishment
23 Gree (Shijiazhuang) Electric Appliances Co. Ltd. 100000000.00 Shijiazhuang Shijiazhuang IndustrialCity City manufacture 100.00 100.00
Business combinations not
under common control
2292025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Main Place of Shareholding Ratio (%)
Voting
S/N Name of Subsidiary Registered Capital Business Registration Nature of Business
Right
Location Direct Indirect Proportion
Acquisition Method
(%)
24 Zhuhai Gree HVAC Equipment Co. Ltd. 100000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
25 Tianjin Green Renewable Resources Utilization IndustrialCo. Ltd. 50000000.00 Tianjin City Tianjin City manufacture 100.00 100.00 Establishment
26 Zhuhai Gree Tosot Home Appliances Co. Ltd. 30000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
27 Zhuhai Ewpe Information Technology Inc. 100000000.00 Zhuhai City Zhuhai City Informationtechnologies 100.00 100.00 Establishment
28 Gree Changsha HVAC Equipment Co. Ltd. 50000000.00 Changsha Changsha IndustrialCity City manufacture 100.00 100.00 Establishment
29 Gree Tosot (Suqian) Home Appliances Co. Ltd. 140000000.00 Suqian City Suqian City Industrialmanufacture 100.00 100.00 Establishment
30 Gree Wuhu Precision Manufacturing Co. Ltd. 30000000.00 Wuhu City Wuhu City Industrialmanufacture 100.00 100.00 Establishment
31 Zhuhai Gree Intelligent Equipment Co. Ltd. 100000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
32 Zhuhai Hengqin Gree Business Factoring Co.Ltd. 100000000.00 Zhuhai City Zhuhai City Finance 100.00 100.00 Establishment
33 Gree CNC Machine Tool Research Institute Co.Ltd. of Zhuhai 50000000.00 Zhuhai City Zhuhai City
Industrial
manufacture 100.00 100.00 Establishment
34 Gree (Wuhan) HVAC Equipment Co. Ltd. 100000000.00 Wuhan City Wuhan City Industrialmanufacture 100.00 100.00 Establishment
35 Gree (Wuhan) Precision Mold Co. Ltd. 100000000.00 Wuhan City Wuhan City Industrialmanufacture 100.00 100.00 Establishment
36 Zhuhai Gree Precision Mold Co. Ltd. 100000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
37 Zhuhai Gree New Material Co. Ltd. 30000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
38 Zhuhai Gree Energy Environment TechnologyCo. Ltd. 200000000.00 Zhuhai City Zhuhai City
Industrial
manufacture 100.00 100.00 Establishment
39 Gree (Hangzhou) Electric Appliances Co. Ltd. 800000000.00 Hangzhou Hangzhou IndustrialCity City manufacture 100.00 100.00 Establishment
40 Gree (Wu'an) Precision Equipment Wu'an Wu'an IndustrialManufacturing Co. Ltd. 600000000.00 County County manufacture 70.00 70.00 Establishment
41 Zhuhai Gree Transportation Co. Ltd. 50000000.00 Zhuhai City Zhuhai City Transportation 100.00 100.00 Establishment
42 Gree (Luoyang) Electric Appliances Co. Ltd. 50000000.00 Luoyang Luoyang IndustrialCity City manufacture 100.00 100.00 Establishment
2302025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Main Place of Shareholding Ratio (%)
Voting
S/N Name of Subsidiary Registered Capital Business RightRegistration Nature of Business Proportion Acquisition MethodLocation Direct Indirect (%)
43 Gree (Nanjing) Electric Appliances Co. Ltd. 1000000000.00 Nanjing City Nanjing City Industrialmanufacture 100.00 100.00 Establishment
44 Zhuhai Lianyun Technology Co. Ltd. 50000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
45 Zhuhai Edgeless Integrated Circuit Co. Ltd. 100000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
46 Gree (Chengdu) Electric Appliances Co. Ltd. 400000000.00 Chengdu Chengdu IndustrialCity City manufacture 100.00 100.00 Establishment
47 Gree Material Supply Co. Ltd. of Zhuhai 150000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
48 Zhuhai Gree Lvkong Technology Co. Ltd. 550000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
49 Hefei Kinghome Electrical Co. Ltd. 200000000.00 Hefei City Hefei City Industrial 100.00 100.00 Business combinations notmanufacture under common control
50 Zhuhai Gree Mechanical and Electrical Industrial Business combinationEngineering Co. Ltd. 150000000.00 Zhuhai City Zhuhai City manufacture 100.00 100.00 under common control
51 Gree (Luoyang) Washing Machine Co. Ltd. 50000000.00 Luoyang Luoyang IndustrialCity City manufacture 100.00 100.00 Establishment
52 Guochuang Energy Internet Innovation Center(Guangdong) Co. Ltd. 100000000.00 Zhuhai City Zhuhai City
Information
technologies 75.00 2.75 77.75 Establishment
53 Gree (Anji) Precision Mold Co. Ltd. 150000000.00 Anji County Anji County Industrialmanufacture 100.00 100.00 Establishment
54 Zhuhai Gree Green Resources Recycling Co.Ltd. 100000000.00 Zhuhai City Zhuhai City
Industrial
manufacture 100.00 100.00 Establishment
55 Gree E-commerce Co. Ltd. 100000000.00 Zhuhai City Zhuhai City Wholesales andretails 100.00 100.00 Establishment
56 Zhuhai Gejian Health Medical Technology Co.Ltd. 20000000.00 Zhuhai City Zhuhai City Medical device 100.00 100.00 Establishment
57 Gree Electric Appliances (Zhuhai Jinwan) Co.Ltd. 1000000000.00 Zhuhai City Zhuhai City
Industrial
manufacture 100.00 100.00 Establishment
58 Chengdu Gree Xinhui Medical Equipment Co. 100000000.00 Chengdu ChengduLtd. City City Medical device 75.00 2.75 77.75 Establishment
59 Gree (Ganzhou) Electric Appliances Co. Ltd. 100000000.00 Ganzhou Ganzhou IndustrialCity City manufacture 100.00 100.00 Establishment
60 SL Group Co. Ltd. 300000000.00 Songyuan SongyuanCity City Agriculture 75.00 75.00
Business combinations not
under common control
61 Gree (Linyi) Electric Appliances Co. Ltd. 600000000.00 Linyi City Linyi City Industrialmanufacture 100.00 100.00 Establishment
2312025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Main Shareholding Ratio (%) Voting
S/N Name of Subsidiary Registered Capital Business Place ofRegistration Nature of Business
Right
Proportion Acquisition MethodLocation Direct Indirect (%)
62 Gree (Zhuhai Hengqin) Development Co. Ltd. 1000000000.00 Zhuhai City Zhuhai City Real estateindustry 100.00 100.00 Establishment
63 Changsha Kinghome Electric Appliances Co. 50000000.00 Changsha Changsha IndustrialLtd. City City manufacture 100.00 100.00 Establishment
64 Gree Altairnano New Energy Inc. 1103335385.00 Zhuhai City Zhuhai City Industrial 55.01 72.47 Business combinations notmanufacture under common control
65 Zhuhai Mingruida Supply Chain Technology Co.Ltd. 100000000.00 Zhuhai City Zhuhai City Transportation 70.00 70.00 Establishment
66 Zhejiang DunAn Artificial Environment Co. Ltd. 1074677139.00 Zhuji City Zhuji City Industrial 38.13 38.13 Business combinations notmanufacture under common control
67 Zhuhai Gree Electronic Components Co. Ltd. 100000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
68 Zhuhai Gree Digital Technology Co. Ltd. 50000000.00 Zhuhai City Zhuhai City Wholesales andretails 100.00 100.00 Establishment
69 Zhuhai Gree Prefabricated Vegetable EquipmentTechnology Development Co. Ltd. 50000000.00 Zhuhai City Zhuhai City
Industrial
manufacture 100.00 100.00 Establishment
Electrical
Gree Lintanyuan (Shanghai) Technology Co. Shanghai Shanghai machinery and70 Ltd. 10000000.00 City City equipment 40.00 15.55 55.55 Establishmentmanufacturing
industry
Science and
71 Zhuhai Gree Technology Management Co. Ltd. 50000000.00 Zhuhai City Zhuhai City technologypopularization and 60.00 60.00 Establishment
application
72 Zhuhai Hengqin Gree Materials Supply Co. Ltd. 100000000.00 Zhuhai City Zhuhai City Industrialmanufacture 100.00 100.00 Establishment
[Note] The Company directly holds 38.13% 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. The Company has completed the reorganization of the board of
directors of DunAn Environment and occupies more than half of the seats on the board of directors. It can control DunAn Environment and include DunAn Environment
in the scope of company consolidation.
(2) Important non-wholly-owned subsidiaries
None.
2322025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
2. Transactions in which the share of owner's equity in the subsidiary changes and still controls
the subsidiary
Jiangxi Jinrun Real Estate Co. Ltd. a controlling subsidiary of the Company acquired 10.00% of the equity of
its subsidiary Ganzhou Qianjin Real Estate Co. Ltd. (hereinafter referred to as "Ganzhou Qianjin") on March 31
2025 for a transaction price of CNY28606000.00. After the acquisition the Company held a total of 100.00%
of the equity of Ganzhou Qianjin.Gree (Nanjing) Electric Appliances Co. Ltd. a wholly-owned subsidiary of the Company acquired 100.00% of
the equity of Nanjing Gree Altairnano New Energy Inc. through a business combination under common control
on September 29 2025.DunAn Environment a controlling subsidiary of the Company issued 10075000 A-shares in a private
placement on December 17 2025 and repurchased and cancelled 834000 restricted A-shares that had been
granted but not yet unlocked to the grantees under the first phase restricted share incentive plan on November 18
2025. After the above equity changes the Company's shareholding in DunAn Environment changed from
38.46% to 38.13%.
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
Item Ending Balance/Current Amount Beginning Balance/Amount IncurredIncurred in the Previous Period
Joint ventures:
Total investment book value 1132273.32 1146314.44
Total number of the following items
calculated based on the shareholding
ratio
? Net profits -14041.12 -12620.24
? Total comprehensive income -14041.12 -12620.24
Associates:
Total investment book value 4233884736.34 4354565937.10
Total number of the following items
calculated based on the shareholding
ratio
? Net profits 36383635.37 14232495.88
2332025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Ending Balance/Current Amount Beginning Balance/Amount IncurredIncurred in the Previous Period
? Other comprehensive income -39668255.07 -173628827.39
? Total comprehensive income -3284619.70 -159396331.51
(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
Name of joint venture or Accumulated unrecognized Unrecognized losses in the Accumulated unrecognized
associates losses accumulated in the current period (or net profit losses at the end of currentprevious period shared in the current period) period
Beijing Gree Technology
Co. Ltd. -1146725.39 -10958.58 -1157683.97
Guizhou Qianzhixing New
Energy Co. Ltd. -269782.09 -269782.09
Eocell Limited -8567118.22 -8567118.22
Ningxia Nenggu New
Energy Technology Co. -146625.62 -231086.16 -377711.78
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
Items in Newly Added Other Income
Financial Beginning Grant Amount in Transferred in the Ending Balance Related to
Statements Balance the Current assets/incomesPeriod Current Period
Deferred income 3208713071.20 159566841.64 351439050.25 3016840862.59 Related to assets
Deferred income 198768152.57 174156100.00 66176680.48 306747572.09 Related toincomes
Total 3407481223.77 333722941.64 417615730.73 3323588434.68
3. Government subsidies included in the profits and losses in this year
2342025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Items in Financial Statements Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Other income 980642616.63 1916950375.04
Non-operating revenues 22840.00 3781050.00
Financial expenses 9713660.99 36658146.30
Total 990379117.62 1957389571.34
IX. Risks associated with financial instruments
The main financial instruments of the Company include monetary funds trading financial assets notes
receivable receivables financing receivables loans and advances buying back the sale of financial assets debt
investments other debt investments other equity instrument investments and 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
measured at fair Financial assetsItem Financial assets
measured at value with changes
measured at fair
amortized costs included in other
value with Total
comprehensive changes included
income in profit or loss
1. Measured at amortized
costs
Monetary funds 110553006650.89 110553006650.89
Notes receivable 883500.00 883500.00
Accounts receivable 15987180598.76 15987180598.76
Other receivables 327529462.48 327529462.48
Buying back the sale of
financial assets 4800560684.94 4800560684.94
Non-current assets due
within one year 28766571070.50 28766571070.50
Other current financial assets 11662547986.20 11662547986.20
Loans issued and advances 2298410033.80 2298410033.80
Long-term receivables 4834731.36 4834731.36
Other non-current financial
assets 42423887631.47 42423887631.47
Subtotal 216825412350.40 216825412350.40
2. Measured at fair values
2352025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Classification of financial assets
Financial assets
measured at fair Financial assetsItem Financial assets
measured at value with changes
measured at fair
amortized costs included in other
value with Total
comprehensive changes included
income in profit or loss
Trading financial assets 31336448103.06 31336448103.06
Receivables financing 6496151873.03 6496151873.03
Non-current assets due
within one year 4572884806.60 4572884806.60
Other current financial assets 1676123772.02 59863600.00 1735987372.02
Other debt investments 24062391354.36 24062391354.36
Other equity instrument
investments 2419998043.64 2419998043.64
Other non-current financial
assets 89060694.31 89060694.31
Subtotal 39227549849.65 31485372397.37 70712922247.02
Total 216825412350.40 39227549849.65 31485372397.37 287538334597.42
(Continued)
Classification of financial liabilities
Item Financial liabilitiesmeasured at fair value with
changes included in the Other financial liabilities Total
current profits and losses
1. Measured at amortized
costs
Short-term borrowings 67956629538.51 67956629538.51
Notes payable 15544348535.69 15544348535.69
Accounts payable 42103940920.24 42103940920.24
Deposits from customers and
interbank 208923102.80 208923102.80
Other payables 11240989639.29 11240989639.29
Non-current liabilities due
within one year 13668113331.54 13668113331.54
Other current financial
liabilities 9829552679.74 9829552679.74
Long-term borrowings 3134980571.73 3134980571.73
Lease liabilities 652797306.31 652797306.31
Subtotal 164340275625.85 164340275625.85
2. Measured at fair values
Derivative financial
liabilities 65094952.36 65094952.36
Subtotal 65094952.36 65094952.36
Total 65094952.36 164340275625.85 164405370578.21
2) Beginning Balance
2362025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Classification of financial assets
Financial assets Financial assets
Item Financial assets measured at fair measured at fair
measured at value with changes value with changes
amortized costs included in other included in other
Total
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
financial assets 5625977294.57 5625977294.57
Non-current assets due within
one year 2723523527.19 2723523527.19
Other current financial assets 9508720109.73 9508720109.73
Disbursement of loans and
advances 431208935.61 431208935.61
Debt investment 1001466666.64 1001466666.64
Long-term receivables 9483113.92 9483113.92
Other non-current financial
assets 56225114705.67 56225114705.67
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 within
one year 11131263203.54 11131263203.54
Other current financial assets 5781243013.70 27356960.00 5808599973.70
Other debt investments 7016555220.76 7016555220.76
Other equity instrument
investments 3039588563.46 3039588563.46
Subtotal 36569376286.23 16575615592.49 53144991878.72
Total 207127574763.73 36569376286.23 16575615592.49 260272566642.45
(Continued)
Classification of financial liabilities
Item Financial liabilitiesmeasured at fair value with
changes included in the Other financial liabilities Total
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
2372025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Classification of financial liabilities
Item Financial liabilitiesmeasured at fair value with
changes included in the Other financial liabilities Total
current profits and losses
Deposits from customers and
interbank 307788319.03 307788319.03
Other payables 4556911705.22 4556911705.22
Non-current liabilities due
within one year 15577179285.89 15577179285.89
Other current financial
liabilities 9817844355.19 9817844355.19
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
liabilities 170740734.87 170740734.87
Subtotal 170740734.87 170740734.87
Total 170740734.87 149788593987.63 149959334722.50
(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 report period the Company's notes receivables accounts receivable receivables financing
other receivables contract assets loans and advances and long-term receivables account for 6.53% of the total
assets (the beginning balance is 7.71%) 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. 3 Notes receivable Note V. 4 Accounts receivable Note V.
6 Receivables financing Note V. 8 Other receivables Note V. 5 Contract assets Note V. 13 Loans and advances
and Note V. 16 Long-term receivables.
2382025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
(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.Each subsidiary of the Company is responsible for its own cash flow forecast. Based on the aggregated cash flow
forecasts of its subsidiaries the Company continuously monitors short-term and long-term funding needs to
ensure sufficient cash reserves. At the same time it continuously monitors compliance with borrowing
agreements and considering financing conditions such as interest rates borrowing terms and credit
enhancement measures selects different financial institutions to meet operational liquidity needs.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 report period was 1.75
(which was 1.74 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
asset management plans 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 report period the Company's wealth management products asset management plans bonds
negotiable certificates of deposit and forward foreign exchange settlement and purchase account for 18.07% of
the total assets (the beginning balance is 14.44%) 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. 6. Receivables financing Note V. 11. Non-current assets due within 1 year Note V. 12.Other current assets Note V. 15. Other debt investments Note V. 18. Other equity instrument investments and
Note V. 19 Other non-current financial assets.
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 2025 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.
2392025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
As of December 31 2025 the Company's liabilities with interests are as follows:
Statement Item Amount Interest Rate Range
Short-term borrowings 67956629538.51 0.65%-4.54%
Deposits from customers and
interbank 208923102.80 0.25%-3.30%
Other payables 1547471401.00 4.35%
Non-current liabilities due within one
year 13581032284.79 2.00%-4.85%
Long-term borrowings 3134980571.73 2.45%-4.39%
Total 86429036898.83
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
Level 1 fair value Level 2 fair value Level 3 fair value Total
Continuous fair value
measurement
Trading financial assets 22931952811.55 8404495291.51 31336448103.06
Receivables financing 6496151873.03 6496151873.03
Non-current assets due within
one year 306059782.20 4266825024.40 4572884806.60
Other current financial assets 60155100.00 1675832272.02 1735987372.02
Other debt investments 646370495.84 23416020858.52 24062391354.36
Other equity instrument
investments 2412998043.64 7000000.00 2419998043.64
Other non-current financial
assets 89060694.31 89060694.31
Total of assets measured at fair
value continuously 26357536233.23 44259325319.48 96060694.31 70712922247.02
Derivative financial liabilities 65094952.36 65094952.36
Total of liabilities measured at
fair value continuously 65094952.36 65094952.36
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
2402025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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;
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
Other non-current 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. 17. Long-term equity investment and Note VII. 3 (6) Excess losses incurred by joint ventures or
associates.
4. Other affiliated parties
2412025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Name of Other Affiliated Parties Relationship Between Other Affiliated Parties and theCompany
Henan Shengshi Xinxing Gree Trade Co. Ltd. Company where a former director of the Company acts as anexecutive director
Zhejiang Shengshi Xinxing Gree Trading Co. Ltd. Company where directors of the Company act as executivedirectors and general managers
Zhejiang Gree Hengxin Zhiyuan Trading Co. Ltd. Company where a director of the Company acts as manager
Henan Blue Hanjiang Liquor Co. Ltd. Company where the son of a former director of the Companyacts as an executive director
Zhejiang Tongcheng Gree Electric Appliances Co. Ltd. Companies held by directors of the Company or where adirector of the Company acts as board chairman
Huzhou Tongcheng Gree Electric Appliances Co. Ltd. Company where a director of the Company serves as adirector
Wenzhou Tongcheng Economic and Trade Co. Ltd. Company where a director of the Company serves as adirector
Ningbo Tongcheng Gree Electric Appliances Co. Ltd. Company where a director of the Company serves as adirector
Henan Gree Installation Engineering Co. Ltd. Company controlled by a former director of the Company
ETR Law Firm Company where a former independent director of theCompany acts as a senior partner.Henan Kaige Trading Co. Ltd. Company where the son of a former director of the Companyacts as an executive director
Henan Huizhong Yifeng E-commerce Co. Ltd. Company where the son of a former director of the Companyacts as an executive director
Wuhu Green Renewable Resources Recycling Co. Ltd. Company in which the Company has a significant impact onit
Hunan Green Renewable Resources Recycling Co. Ltd. Company in which the Company has a significant impact onit
Shandong Jierui Logistics Co. Ltd. Company held by the Company's supervisor
[Note 1] According to the shareholders' resolution of Shanghai Gree Green Energy Technology Co. Ltd.(hereinafter referred to as "Shanghai Green Energy") a new shareholder was introduced and the Company's
shareholding ratio in it changed from 60.00% to 40.00%. The relevant industrial and commercial change
registration was completed on June 25 2025. Shanghai Green Energy became an associate of the Company so
only the amount of related party transactions from July to December and the related party receivables and
payables as of the end of December are disclosed.[Note 2] From November 2025 Shanghai Highly (Group) Co. Ltd. is no longer an other related party of the
Company so only the amount of related party transactions from January to November 2025 is disclosed.
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
its holding subsidiaries procurement Raw materials 716522325.17 1104632383.40
Beijing Gree Technology Co. Ltd. Materialprocurement Accessories 7952468.85 21467551.41
Outlook All Media Co. Ltd. Service Advertisingprocurement expenses 3301886.79
Interest
Sichuan Jinshi Leasing Co. Ltd. and its Service expenses and
holding companies procurement consulting 2295179.25 5307435.43
services
2422025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Type of Content of Amount Incurred Amount Incurred
Affiliated Parties Affiliated Affiliated in the Current in the Previous
Transactions Transactions Period Period
Henan Shengshi Xinxing Gree Trade Service After-sales
Co. Ltd. procurement services 1530721.70
Henan Yuze Finance Leasing Co. Ltd. Serviceprocurement Interest expense 685026.40 3276594.49
Henan Gree Installation Engineering Service After-sales
Co. Ltd. procurement services 307713.86
Henan Shengshi Xinxing Gree Trade Material
Co. Ltd. procurement Raw materials 131546.87
Zhejiang Shengshi Xinxing Gree Material
Trading Co. Ltd. procurement Raw materials 111611.25
Henan Blue Hanjiang Liquor Co. Ltd. Material Miscellaneousprocurement materials 21451.33
Henan Kaige Trading Co. Ltd. Material Miscellaneousprocurement materials 15946.90
Zhejiang Tongcheng Gree Electric Accept money
Appliances Co. Ltd. deposits Interest expense 19.74 38.53
Henan Shengshi Xinxing Gree Trade Accept money
Co. Ltd. deposits Interest expense 33.38
Total 732875898.11 1134684036.64
2) Schedule of commodity sold/services provided
Type of Content of Amount Incurred Amount Incurred
Affiliated Parties Affiliated Affiliated in the Current in the Previous
Transactions Transactions Period Period
Zhejiang Shengshi Xinxing Gree
Trading Co. Ltd. Sale of goods Sales revenue 3998025672.70 5377436945.43
Zhejiang Shengshi Xinxing Gree
Trading Co. Ltd. Sales services Sales revenue 1570807.54
Henan Gree Installation Engineering
Co. Ltd. Sale of goods Sales revenue 766594578.91 325036112.31
Shanghai Highly (Group) Co. Ltd. and
its holding subsidiaries Sale of goods Sales revenue 687761060.43 904181035.33
Zhejiang Gree Hengxin Zhiyuan
Trading Co. Ltd. Sale of goods Sales revenue 3225455.73
Shanghai Gree Green Energy
Technology Co. Ltd. Sale of goods Sales revenue 173149092.90
Henan Shengshi Xinxing Gree Trade
Co. Ltd. Sale of goods Sales revenue 6032445.15 1535857617.10
Beijing Gree Technology Co. Ltd. Sale of goods Sales revenue 1214813.06 457782.58
Beijing Gree Technology Co. Ltd. Loan Interest income 152067.88 666055.04
ETR Law Firm Sale of goods Sales revenue 15295.31 2114.16
Henan Kaige Trading Co. Ltd. Sale of goods Sales revenue 23500508.19
Henan Huizhong Yifeng E-commerce
Co. Ltd. Sale of goods Sales revenue 1823972.55
Zhuhai Jiayao Food Technology Co.Ltd. Sale of goods Sales revenue 876969.82
Total 5637741289.61 8169839112.51
(2) Associated trusteeship management/contracting or entrusted management/contract awarding
None.
(3) Associated lease
1) The Company as the lessor:
2432025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Affiliated Parties Type of Leased Assets Amount Incurred in the Amount Incurred in theCurrent Period Previous Period
Zhuhai Jiayao Food Technology Co.Ltd. House lease 125612.75
2) 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
None.
(7) Remunerations for key management personnel
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Remunerations for key management
personnel 50262497.91 45051813.97
(8) Other affiliated transactions
None.
6. Receivables and payables of affiliated parties
(1) Receivables
Ending Balance Beginning Balance
Item Affiliated Parties
Book balance Bad debtreserves Book balance
Bad debt
reserves
Accounts Wuhu Green
receivable Renewable Resources 2263529.62 2263529.62 2263529.62 2263529.62Recycling Co. Ltd.Accounts Lanzhou Guangtong
receivable New Energy 167167904.76 167167904.76 167167904.76 167059470.15Automobile Co. Ltd.Shanghai Highly
Accounts (Group) Co. Ltd. and
receivable its holding 268347372.19 13438523.28
subsidiaries
Receivables Zhejiang Shengshi
financing Xinxing Gree Trading 274573110.89 139952191.77Co. Ltd.Receivables Henan Gree
financing Installation 44256855.07 235896253.91Engineering Co. Ltd.Receivables Shanghai Gree Green
financing Energy Technology 35661978.07Co. Ltd.Receivables Wenzhou Tongcheng
financing Economic and Trade 2843845.28 15471173.28Co. Ltd.Receivables Huzhou Tongcheng
financing Gree Electric 5631384.52 16090020.22
2442025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ending Balance Beginning Balance
Item Affiliated Parties
Book balance Bad debt Book balance Bad debtreserves reserves
Appliances Co. Ltd.Receivables Ningbo Tongcheng
financing Gree Electric 420935.66Appliances Co. Ltd.Shanghai Highly
Receivables (Group) Co. Ltd. and
financing its holding 23632611.04
subsidiaries
Advance Sichuan Jinshi
payments Leasing Co. Ltd. and 2432890.00its holding companies
Shanghai Highly
Advance (Group) Co. Ltd. and
payments its holding 10000.00
subsidiaries
DunAn (Tianjin)
Other Energy Saving
receivables System Co. Ltd. and 170732737.89 170732737.89 170791178.69 170791178.69
its holding companies
Shanghai Highly
Other (Group) Co. Ltd. and
receivables its holding 142612.34 11880.62
subsidiaries
Other Zhuhai Jiayao Food
receivables Technology Co. Ltd. 140224.70 7011.24
Contract Zhuhai Jiayao Food
assets Technology Co. Ltd. 29550.52 1477.53
Total 703552281.76 340164172.27 1042367513.04 353573071.13
(2) Payables
Item Affiliated Parties Ending Balance Beginning Balance
Accept money deposits Zhejiang Tongcheng Gree ElectricAppliances Co. Ltd. 0.07 10762.35
Accounts payable Beijing Gree Technology Co. Ltd. 8628133.65 7739610.01
Accounts payable Hunan Green Renewable ResourcesRecycling Co. Ltd. 2437065.09 2437065.09
Accounts payable Henan Shengshi Xinxing Gree TradeCo. Ltd. 1872553.68 249988.68
Accounts payable DunAn (Tianjin) Energy Saving SystemCo. Ltd. and its holding companies 4716.98 4716.98
Accounts payable Shanghai Highly (Group) Co. Ltd. andits holding subsidiaries 334434585.61
Accounts payable Zhejiang Shengshi Xinxing GreeTrading Co. Ltd. 33668.86
Other payables Zhejiang Gree New Energy Co. Ltd. 30000.00
Other payables Zhejiang Shengshi Xinxing GreeTrading Co. Ltd. 21617.37 33037.37
Other payables Shandong Jierui Logistics Co. Ltd. 0.26 0.26
Other payables Shanghai Highly (Group) Co. Ltd. andits holding subsidiaries 512200.00
Other payables Henan Shengshi Xinxing Gree TradeCo. Ltd. 500001.00
Other payables Henan Kaige Trading Co. Ltd. 2001.00
Contract liabilities Henan Shengshi Xinxing Gree TradeCo. Ltd. 417714821.44 526513385.57
2452025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Item Affiliated Parties Ending Balance Beginning Balance
Contract liabilities Zhejiang Shengshi Xinxing GreeTrading Co. Ltd. 456163966.54 368879902.30
Contract liabilities Henan Gree Installation EngineeringCo. Ltd. 4322731.48 71901435.75
Contract liabilities Eocell Limited 42382.22
Contract liabilities Shanghai Gree Green EnergyTechnology Co. Ltd. 448028.60
Contract liabilities Zhejiang Gree Hengxin Zhiyuan TradingCo. Ltd. 523.89
Contract liabilities Shanghai Highly (Group) Co. Ltd. andits holding subsidiaries 1310162.68
Contract liabilities Henan Kaige Trading Co. Ltd. 0.65
Other current liabilities — Zhejiang Shengshi Xinxing Gree
value-added tax Trading Co. Ltd. 59301315.64 47954387.31
Other current liabilities — Henan Shengshi Xinxing Gree Trade
value-added tax Co. Ltd. 54302926.78 68446740.13
Other current liabilities — Henan Gree Installation Engineering
value-added tax Co. Ltd. 561955.09 9347186.65
Other current liabilities — Shanghai Gree Green Energy
value-added tax Technology Co. Ltd. 58243.72
Other current liabilities — Shanghai Highly (Group) Co. Ltd. and
value-added tax its holding subsidiaries 170321.16
Other current liabilities —
value-added tax Henan Kaige Trading Co. Ltd. 0.09
Other current liabilities — Zhejiang Gree Hengxin Zhiyuan Trading
value-added tax Co. Ltd. 68.11
Non-current liabilities due
within one year Henan Yuze Finance Leasing Co. Ltd. 7910485.23 10115279.84
Long-term payables Henan Yuze Finance Leasing Co. Ltd. 7912428.09
Total 1013821535.84 1458508867.43
7. Commitment of affiliated parties
None.XII. Share-based payment
1. Overall situation of share-based payment
(1) 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 (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.On January 21 2025 the Company's special securities account for repurchase transferred 63195095 shares to
2462025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
the special account of "Gree Electric Appliances Inc. of Zhuhai - Phase III Employee Stock Ownership Plan"
through non-trading transfer accounting for 1.13% of the Company's total share capital at that time. The
purchase price of the Phase III Employee Stock Ownership Plan was CNY17.93 per share with a total purchase
amount of CNY1133088053.35.
(2) Restricted share plan
Pursuant to the authorization of the 4th Extraordinary General Meeting of Shareholders in 2025 of DunAn
Environment a controlling subsidiary of the Company DunAn Environment held the 7th Meeting of the 9th
Board of Directors deliberating and approving the Proposal on Adjusting the List of Incentive Recipients and
the Number of Grants for the First Grant of the 2025 Restricted Share and Share Option Incentive Plan and the
Proposal on Granting Restricted Shares and Share Options to Incentive Recipients. It determined November 25
2025 as the first grant date for the restricted shares and the first grant date for the share options under this
incentive plan granting a total of 10075000 restricted shares to 365 incentive recipients who met the grant
conditions at a grant price of CNY7.05 per share and granting a total of 4770000 share options to 44 incentive
recipients who met the grant conditions at an exercise price of CNY14.10 per share.Exercised in
Granted in the current year the current Unlocked in the current year Forfeited in the current
Category of year year
grant object
Quantity Amount Qua Amontity unt Quantity Amount Quantity Amount
Senior
executives of 1515000 10680750.00 438813 2900553.93 37187 245806.07
the Company
Middle-level
managers
core
technical 8560000 60348000.00 2634824 17416186.64 796856 5267218.16
(business)
personnel
Total 10075000 71028750.00 3073637 20316740.57 834043 5513024.23
Share options outstanding at the end of the period
Share options outstanding at the end of the period Restricted shares outstanding at the end of theCategory of period
grant object Exercise price Remaining term of the Exercise price Remaining term of thecontract contract
From the first trading
day 12 24 and 36
The grant price of the From the first trading The grant price of the months after the
Senior first phase share day 12 24 and 36 first phase restricted completion of
executive of options granted in 2024 months after the firstgrant of the share shares granted in 2024
registration of the first
the holding was CNY13.21; was CNY6.61; grant of the restricted
subsidiary The grant price of the option to the lasttrading day within 24 The grant price of the
shares to the last
DunAn second phase restricted second phase restricted trading day within 24
Environment shares granted in 2025 36 and 48 months from shares granted in 2025 36 and 48 months after
was CNY14.10. the first grant of the was CNY7.05. the completion ofshare option registration of the first
grant of the restricted
shares.Middle-level The grant price of the From the first trading The grant price of the From the first trading
managers and first phase share day 12 24 and 36 first phase restricted day 12 24 and 36
core technical options granted in 2024 months after the first shares granted in 2024 months after the
(business) was CNY13.21; grant of the share was CNY6.61; completion of
personnel of The grant price of the option to the last The grant price of the registration of the first
the holding second phase restricted trading day within 24 second phase restricted grant of the restricted
2472025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Share options outstanding at the end of the period Restricted shares outstanding at the end of theCategory of period
grant object Exercise price Remaining term of thecontract Exercise price
Remaining term of the
contract
subsidiary shares granted in 2025 36 and 48 months from shares granted in 2025 shares to the last
DunAn was CNY14.10. the first grant of the was CNY7.05. trading day within 24
Environment share option. 36 and 48 months after
the completion of
registration of the first
grant of the restricted
shares.
2. Equity-settled share-based payments
Item Content
Employee Stock Ownership Plan: Calculated based on the stock market price on the
Method for determining the fair grant date minus the grant price;
value of equity instruments on Restricted Shares: Calculated based on the stock market price on the grant date minus
the grant date the grant price;
Share Options: Using the Black-Scholes option pricing model (B-S model).Stock price risk-free rate of return historical volatility
Employee Stock Ownership Plan: Market price of the stock on the grant date
Key parameters of the fair value Restricted Shares: Market price of the stock on the grant date
of equity instruments on the Share Options: The risk-free interest rate adopts the 1-year 2-year and 3-year
grant date benchmark deposit rates for financial institutions set by the People's Bank of China;
the historical volatility adopts the historical volatility of the Shenzhen Composite
Index (399106.SZ).By assessing the company's performance and individual performance per year the
Company takes the number of equity instruments held by incentive targets achieving
Basis for determining the the assessment goals as the basis. On each balance sheet date during the vesting period
number of exercisable equity the Company makes the best estimate of subsequent information such as the latest
instruments change in number of vesting employees to correct the 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 estimates
in the current year and the N/A
previous period
Accumulated amount of equity
settled share-based payments 1450616910.33
recognized in capital reserves
Total expenses recognized for
equity settled share-based 1459701844.80
payments this period
3. Cash settled share-based payments
None.
4. Amendment and termination of share-based payment
None.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
2482025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 interim 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 2025 the outstanding guarantee amount is CNY1604944000.
3. Others
None.XIV. Matters after the balance sheet date
1. Important non-adjustment matters
None.
2. Distribution of profits
Under the resolution at the 5th Meeting of the 13th Board of Directors the Company's profit distribution plan for
2025 is as follows: Since the total shares entitled to profit distribution as of April 28 2026 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.
2492025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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
Credit Income discontinuing
Item Revenue Expense impairment Total profits tax Net profits operation
losses expenses attributable toshareholders of
parent company
Gree
(USA)
Sales Co. 38494.63 -21944177.58 -21982672.21 5709.76 -21988381.97 -21988381.97
Ltd.
(Continued)
Item Net cash flows from Net cash flows from Net cash flows fromoperating activities investment activities financing activities
Gree (USA) Sales Co. Ltd. 133369.50
2502025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 among segments are allocated in proportion to their scale.
(2) Financial information of reporting segments
Item Household appliances Industrial products andgreen energy Smart device Others Offset among segments Total
External transaction
income 133055208627.13 17380701260.95 680790474.57 20001460912.76 171118161275.41
External transaction
costs 86112528829.42 14680898286.93 540329948.40 18334701323.00 119668458387.75
Total assets 447631068837.44 55118118284.58 6270384570.85 66067955859.34 183715527732.72 391371999819.49
Total liabilities 304416286768.72 43632580252.83 6287568308.97 54131999666.70 166887715852.43 241580719144.79
2512025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
7. Other important matters affecting investor decisions
(1) Company guarantee
As of December 31 2025 the total amount of guarantees provided to companies outside the consolidated
financial statements was CNY551667300 (which are the existing guarantees provided by Gree Altairnano for
the finance lease and vehicle purchase business of its customers such as bus companies).
(2) 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 65.00% 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 shareholding ratio of Zhejiang Energy Saving in Tianjin Energy Saving decreased from 100.00% to 35.00%
and Tianjin Energy Saving became an investee 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
2025 there was still CNY170732700 that had not been recovered and the corresponding impairment reserves
were CNY170732700.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 3707093693.20 4924371165.01
1?2 years 318389295.36 49013594.09
2?3 years 20081125.50 57105362.09
>3 years 78813084.50 55325630.66
Subtotal 4124377198.56 5085815751.85
Less: Bad debt reserves 206446303.68 258043391.48
2522025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Account Age Ending Balance Beginning Balance
Total 3917930894.88 4827772360.37
(2) Presentation by categories of bad debt accrual method
Ending Balance
Category Book balance Bad debt reserves
Amount Proportion Amount Credit loss
Book Value
(%) rate (%)
Accounts receivable with bad
debt reserves accrued by 4714882.36 0.11 4714882.36 100.00
individual item
Accounts receivable with bad
debt reserves accrued by 4119662316.20 99.89 201731421.32 4.90 3917930894.88
portfolios
Including: Account age
portfolio 2149532912.36 52.12 201731421.32 9.38 1947801491.04
Free-risk portfolios 1970129403.84 47.77 1970129403.84
Total 4124377198.56 100.00 206446303.68 5.01 3917930894.88
(Continued)
Beginning Balance
Category Book balance Bad debt reserves
Amount Proportion Amount Credit loss
Book Value
(%) 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
portfolio 3443976923.61 67.72 253328509.12 7.36 3190648414.49
Free-risk portfolios 1637123945.88 32.19 1637123945.88
Total 5085815751.85 100.00 258043391.48 5.07 4827772360.37
1) Accounts receivable with bad debt reserves accrued by individual item
Ending Balance
Name
Book balance Bad debt reserves Credit lossrate (%) Reason for accruing
Company 1 4714882.36 4714882.36 100.00 It is difficult torecover
Total 4714882.36 4714882.36 100.00
(Continued)
Beginning Balance
Name
Book balance Bad debt reserves Credit lossrate (%) Reason for accruing
Company 1 4714882.36 4714882.36 100.00 It is difficult torecover
Total 4714882.36 4714882.36 100.00
2) Accounts receivable in the portfolio with bad debt reserves accrued by account age portfolio
2532025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Account Age Book balance Bad debt reserves Credit loss rate (%)
<1 year 1736964289.36 53914797.36 3.10
1?2 years 318389295.36 63677859.07 20.00
2?3 years 20081125.50 10040562.75 50.00
>3 years 74098202.14 74098202.14 100.00
Total 2149532912.36 201731421.32 9.38
(3) Bad debt reserves accrued recovered or reversed in the current period
Category Beginning Balance Accrual/recovery/reversalin the current period Ending Balance
Accrual by individual item 4714882.36 4714882.36
Account age portfolio 253328509.12 -51597087.80 201731421.32
Total 258043391.48 -51597087.80 206446303.68
[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
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 CNY2372628661.52 accounting for 57.53% of the ending balance of accounts
receivable and contract assets and the amount of bad debt reserves is CNY39719636.10.
2. Other receivables
Item Ending Balance Beginning Balance
Other receivables [Note 1] 7755767605.45 10199939865.70
Dividends receivable 2620451.11
Total 7758388056.56 10199939865.70
[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) Other receivables
1) Disclosure by account age
Account Age Ending Balance Beginning Balance
<1 year 2901597231.96 6122500607.02
1?2 years 2185490266.56 4109389281.66
2?3 years 3932704130.64 4200093.90
2542025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Account Age Ending Balance Beginning Balance
>3 years 5002340.91 4714891.92
Subtotal 9024793970.07 10240804874.50
Less: Bad debt reserves 1269026364.62 40865008.80
Total 7755767605.45 10199939865.70
2) Classification by nature of payment
Nature of Payment Ending Balance Beginning Balance
Intercourse and free-risk funds 9003422155.87 10219433060.30
Asset transfer payments 21371814.20 21371814.20
Subtotal 9024793970.07 10240804874.50
Less: Bad debt reserves 1269026364.62 40865008.80
Total 7755767605.45 10199939865.70
3) Disclosure by classification of bad debt reserves accrual methods
Ending Balance
Category Book balance Bad debt reserves
Amount Proporti
Credit Book Value
on (%) Amount loss rate(%)
Other accounts receivable with
bad debt reserves accrued by 6253841614.25 69.30 1250283320.56 19.99 5003558293.69
individual item
Other accounts receivable with
bad debt reserves accrued by 2770952355.82 30.70 18743044.06 0.68 2752209311.76
portfolios
Including: Account age
portfolio 61262220.16 0.68 18743044.06 30.59 42519176.10
Free-risk portfolios 2709690135.66 30.02 2709690135.66
Total 9024793970.07 100.00 1269026364.62 14.06 7755767605.45
(Continued)
Beginning Balance
Category Book balance Bad debt reserves
Book Value
Amount Proporti Amount Credit losson (%) 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
portfolio 616817914.45 6.02 40865008.80 6.63 575952905.65
Free-risk portfolios 9623986960.05 93.98 9623986960.05
Total 10240804874.50 100.00 40865008.80 0.40 10199939865.70
Other receivables in the portfolio with bad debt reserves accrued by account age portfolio
2552025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Ending Balance
Account Age
Book balance Bad debt reserves Credit loss rate (%)
<1 year 27990495.94 1399524.80 5.00
1?2 years 5978377.67 1195675.53 20.00
2?3 years 22291005.64 11145502.82 50.00
>3 years 5002340.91 5002340.91 100.00
Total 61262220.16 18743044.06 30.59
4) Accrual of bad debt reserves
Phase I Phase II Phase III
Bad debt reserves Expected credit Expected credit loss for Expected credit loss for
losses in the next the entire duration (no the entire duration
Total
12 months credit impairment (credit impairmentoccurred) occurred)
Beginning Balance 29176838.60 11688170.20 40865008.80
Accrual/recovery/reve
rsal in the current -27777313.80 1255938669.62 1228161355.82
period
Ending Balance 1399524.80 1267626839.82 1269026364.62
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
CNY6467408410.25 all of which are current accounts with subsidiaries within the consolidation scope
accounting for 71.66% of the total ending balance of other receivables with a bad debt provision amount of
CNY1250283320.56.
7) Other receivables due to centralized fund management
None.
2562025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
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 27431811554.63 2846377903.85 24585433650.78 27122807455.57 2844547150.91 24278260304.66
Investments to associates and
joint ventures 2710982958.64 1940009.35 2709042949.29 2767637625.11 1940009.35 2765697615.76
Total 30142794513.27 2848317913.20 27294476600.07 29890445080.68 2846487160.26 27043957920.42
(1) Investments to subsidiaries
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Accrual of
Original value Impairment reserve Additional DecreasedInvestment Investment impairment Others Original value Impairment reservereserves
Gree (Chongqing) Electric Appliances
Co. Ltd. 232679426.20 9016458.24 241695884.44
Zhuhai Landa Compressor Co. Ltd. 997867212.27 28857243.24 1026724455.51
Zhuhai Gree Electrical Co. Ltd 1691329280.44 14302757.35 1705632037.79
Zhuhai Gree Xinyuan Electronics Co.Ltd. 159534275.16 4782842.06 164317117.22
Zhuhai Kaibang Motor Manufacturing
Co. Ltd. 93879438.41 12151622.65 106031061.06
Gree (Hefei) Electric Appliances Co. Ltd. 512175910.66 10240774.26 522416684.92
Gree (Zhongshan) Small Home
Appliances Co. Ltd. 33292855.78 3478430.59 36771286.37
Zhuhai Gree Group Finance Company
Limited 4440720113.19 1350180.29 4442070293.48
Gree Electric Appliances (Brazil) Co.Ltd. 661898109.90 2425747.65 664323857.55
Hong Kong Gree Electric Appliances
Sales Limited 472879.08 472879.08
Shanghai Gree Air Conditioners Sales
Co. Ltd. 1800000.00 1800000.00
2572025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee
Original value Impairment reserve Additional Decreased
Accrual of
Investment Investment impairment Others Original value Impairment reservereserves
Zhuhai Gree Daikin Precision Mold Co.Ltd. 203310670.44 411919.41 203722589.85
Zhuhai Gree Daikin Device Co. Ltd. 283727774.47 4119194.12 287846968.59
Zhuhai Gree Green Refrigeration
Technology Research Center Co. Ltd. 676040000.00 676040000.00
Gree (Zhengzhou) Electric Appliances
Co. Ltd. 728265516.60 7506087.06 735771603.66
Gree (Wuhan) Electric Appliances Co.Ltd. 606681089.12 5492258.82 612173347.94
Zhengzhou Gree Green Resources
Recycling Co. Ltd. 50012929.37 22884.41 50035813.78
Hunan Green Resources Recycling Co.Ltd. 50130325.23 389035.00 50519360.23
Wuhu Green Resources Recycling Co.Ltd. 50345355.52 274612.94 50619968.46
Gree (Shijiazhuang) Small Home
Appliances Co. Ltd. 12555453.35 4325153.82 16880607.17
Gree (Wuhu) Electric Appliances Co.Ltd. 25327672.57 4599766.76 29927439.33
Shijiazhuang Green Resources Recycling
Co. Ltd. 50012929.37 228844.12 50241773.49
Gree (Shijiazhuang) Electric Appliances
Co. Ltd. 107980519.96 14394295.00 122374814.96
Tianjin Green Renewable Resources
Utilization Co. Ltd. 50000000.00 68653.24 50068653.24
Zhuhai Gree HVAC Equipment Co. Ltd. 100000000.00 100000000.00
Zhuhai Gree Tosot Home Appliances Co.Ltd. 30000000.00 30000000.00
Zhuhai Ewpe Information Technology
Inc. 100000000.00 100000000.00
Gree Changsha HVAC Equipment Co.Ltd. 56784870.17 8112523.97 64897394.14
Gree Tosot (Suqian) Home Appliances
Co. Ltd. 142233779.37 1624793.24 143858572.61
Gree Wuhu Precision Manufacturing Co.Ltd. 31247558.02 3135164.41 34382722.43
Zhuhai Gree Intelligent Equipment Co.Ltd. 111999042.21 12458273.76 124457315.97
2582025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee
Original value Impairment reserve Additional Decreased
Accrual of
Investment Investment impairment Others Original value Impairment reservereserves
Zhuhai Hengqin Gree Business Factoring
Co. Ltd. 100467820.01 114422.06 100582242.07
Zhuhai Gree Precision Mold Co. Ltd. 127503974.97 28136315.61 155640290.58
Gree (Wuhan) HVAC Equipment Co.Ltd. 100555499.96 640763.53 101196263.49
Gree CNC Machine Tool Research
Institute Co. Ltd. of Zhuhai 50760858.11 1556140.00 52316998.11
Gree Altairnano New Energy Inc. 2844547150.91 2844547150.91 1830752.94 1830752.94 2846377903.85 2846377903.85
Zhuhai Gree New Material Co. Ltd. 33831884.29 4073425.29 37905309.58
Gree (Wuhan) Precision Mold Co. Ltd. 101894744.56 3226702.06 105121446.62
Zhuhai Gree Energy Environment
Technology Co. Ltd. 204041383.69 3386892.94 207428276.63
Gree (Hangzhou) Electric Appliances Co.Ltd. 551351177.53 2734687.21 554085864.74
Gree Information Technology Co. Ltd. of
Zhuhai 510000.00 510000.00
Gree (Wu'an) Precision Equipment
Manufacturing Co. Ltd. 210644796.71 1235758.24 211880554.95
Zhuhai Gree Transportation Co. Ltd. 51681046.82 1945175.00 53626221.82
Gree (Nanjing) Electric Appliances Co.Ltd. 701769898.87 2631707.35 704401606.22
Gree (Luoyang) Electric Appliances Co.Ltd. 52067236.60 2151134.71 54218371.31
Zhuhai Edgeless Integrated Circuit Co.Ltd. 50000000.00 50000000.00
Zhuhai Lianyun Technology Co. Ltd. 52394651.96 2997857.94 55392509.90
Gree (Chengdu) Electric Appliances Co.Ltd. 400571937.45 20000000.00 1968059.41 422539996.86
Gree Material Supply Co. Ltd. of Zhuhai 150000000.00 150000000.00
Zhuhai Gree Lvkong Technology Co.Ltd. 550000000.00 550000000.00
Hefei Kinghome Electrical Co. Ltd. 1250319910.45 2036712.65 1252356623.10
2592025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee Accrual of
Original value Impairment reserve Additional DecreasedInvestment Investment impairment Others Original value Impairment reservereserves
Zhuhai Gree Mechanical and Electrical
Engineering Co. Ltd. 153814648.59 9107995.88 162922644.47
Gree (Luoyang) Washing Machine Co.Ltd. 50000000.00 50000000.00
Guochuang Energy Internet Innovation
Center (Guangdong) Co. Ltd. 75000000.00 137306.47 75137306.47
Gree (Anji) Precision Mold Co. Ltd. 123000000.00 24000000.00 205959.71 147205959.71
Zhuhai Gree Green Resources Recycling
Co. Ltd. 101845663.97 4348038.24 106193702.21
Gree E-commerce Co. Ltd. 102148245.79 13364496.47 115512742.26
Zhuhai Gejian Health Medical
Technology Co. Ltd. 20024835.89 297497.35 20322333.24
Gree Electric Appliances (Zhuhai Jinwan)
Co. Ltd. 1003934841.78 5927062.65 1009861904.43
Chengdu Gree Xinhui Medical Equipment
Co. Ltd. 76613823.77 114422.06 76728245.83
SL Group Co. Ltd. 230223945.05 114422.06 230338367.11
Gree (Ganzhou) Electric Appliances Co.Ltd. 100853939.93 2791898.24 103645838.17
Gree (Linyi) Electric Appliances Co. Ltd. 600737632.84 869607.65 601607240.49
Gree (Zhuhai Hengqin) Development Co.Ltd. 1000000000.00 1000000000.00
Changsha Kinghome Electric Appliances
Co. Ltd. 50528840.00 1784984.12 52313824.12
Zhuhai Mingruida Supply Chain
Technology Co. Ltd. 35000000.00 35000000.00
Zhejiang DunAn Artificial Environment
Co. Ltd. 3236995422.29 3236995422.29
Zhuhai Gree Electronic Components Co.Ltd. 101909731.23 7311638.21 109221369.44
Zhuhai Gree Digital Technology Co. Ltd. 51423800.00 51423800.00
Zhuhai Gree Prefabricated Vegetable
Equipment Technology Development Co. 31533124.69 125864.26 31658988.95
Ltd.
2602025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Investee
Original value Impairment reserve Additional Decreased
Accrual of
Investment Investment impairment Others Original value Impairment reservereserves
Zhuhai Hengqin Gree Materials Supply
Co. Ltd. 100000000.00 100000000.00
Zhuhai Gree Technology Management
Co. Ltd. 4576882.34 4576882.34
Total 27122807455.57 2844547150.91 44000000.00 510000.00 1830752.94 265514099.06 27431811554.63 2846377903.85
[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
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Profits and Declared
Investee Impairment Additional losses on
Adjustment of Other distribution of Ot
Original value investment/disin investment other chang Impairmentreserve vestment recognized by comprehensive es in
cash her Original value
dividends or s reserve
equity method income equity profits
Associated
enterprise
Gree (Vietnam)
Electric Appliances 1940009.35 1940009.35 1940009.35 1940009.35
Inc.Outlook All Media
Co. Ltd. 28931364.74 -4802205.86 24129158.88
Wuhan Digital
Design and
Manufacturing 15736715.70 395965.60 16132681.30
Innovation Center
Co. Ltd.Coresing
Semiconductor
Technology Co. 20732688.82 -10000000.00 53092.78 722215.35 10063566.25
Ltd.Zhuhai Ronglin
Equity Investment 2647273059.03 -106544.69 -41334766.63 2605831747.71
Partnership
2612025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
Beginning Balance Increase/Decrease in the Current Period Ending Balance
Profits and Declared
Investee Impairment Additional losses on
Adjustment of Other distribution of Ot
Original value reserve investment/disin investment
other chang Impairment
vestment recognized by comprehensive es in
cash her Original value reserve
equity method income equity
dividends or s
profits
(Limited
Partnership)
Henan Yuze Finance
Leasing Co. Ltd. 53023787.47 1534577.02 1672569.34 52885795.15
Total 2767637625.11 1940009.35 -10000000.00 -2925115.15 -41334766.63 2394784.69 2710982958.64 1940009.35
2622025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
4. Operating revenues and costs
Amount Incurred in the Current Period Amount Incurred in the Previous Period
Item
Revenue Cost Revenue Cost
Main
business 97706154814.87 64420213755.78 120955394069.62 81167248844.88
Other
business 6690348136.16 6081939423.81 4703383716.27 4436721904.30
Total 104396502951.03 70502153179.59 125658777785.89 85603970749.18
5. Income from investment
Item Amount Incurred in the Current Period Amount Incurred in the PreviousPeriod
Dividend shares recognized for long-
term equity investment measured in 3485297621.00 2573612709.98
the cost method
Investment income obtained from
trading financial assets 274756182.40 453971214.49
Investment income from derivative
financial instruments -174812007.72 200042366.84
Long-term equity investment income
measured by the equity method -2925115.15 -5779979.32
Others -52040448.01 -82849572.57
Total 3530276232.52 3138996739.42
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 (including
the write-off of accrued asset impairment reserves) 34701819.37
Governmental subsidies included in the current profits and losses
(but excluding the governmental subsidies closely relating to the
normal business operations of the Company conforming to 960981376.60
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 701577328.10
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
independent impairment test 8689545.95
Non-operating revenues and expenditures other than the above
items -24078549.04
Other profit and loss items conforming to the definition of non-
recurring profits and losses 31293265.01
Subtotal 1713164785.99
Less: Amount affecting income tax 263250661.17
Amount affecting minority equity (after tax) 153103150.10
Total 1296810974.72
2632025 Annual Report of Gree Electric Appliances Inc. of Zhuhai
[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
Profits for the report period Weighted average
Earnings per share
return on equity (%) Basic earnings per Diluted earnings per
share share
Net profit attributable to common shareholders of the
Company 20.30 5.20 5.20
Net profit deducting non-recurring profits and losses
attributable to common shareholders 19.39 4.96 4.96
Gree Electric Appliances Inc. of Zhuhai
April 29 2026
264
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