On the evening of June 20, Gree Electric announced the first phase of the employee stock ownership plan. The total number of employees who intend to participate in the employee stock ownership plan does not exceed 12,000. The capital scale of the employee stock ownership plan does not exceed 3 billion yuan, accounting for the company’s total share capital. 1.8%.

Southern Metropolis reporter noticed that, perhaps affected by this news, after the opening of the market on June 21, Gree Electric Appliances plummeted all the way. At the close of the market, Gree Electric Appliances stock price was 51.11 yuan, a decrease of 4.79%.

On the evening of June 20, Gree Electric announced the first phase of the employee stock ownership plan. The total number of employees who intend to participate in the employee stock ownership plan does not exceed 12,000. The capital scale of the employee stock ownership plan does not exceed 3 billion yuan, accounting for the company’s total share capital. 1.8%.
Southern Metropolis reporter noticed that, perhaps affected by this news, after the opening of the market on June 21, Gree Electric Appliances plummeted all the way. At the close of the market, Gree Electric Appliances stock price was 51.11 yuan, a decrease of 4.79%.
Gree Electric’s last large-scale equity incentive was in 2009. At that time, the major shareholder Gree Group transferred 16.042,500 shares of Gree Electric. The company’s senior executives provide equity incentives.
On April 15 this year, Gree Electric announced again that it plans to launch an employee stock ownership plan. The total number of stocks to be held in this employee stock ownership plan does not exceed 3% of the company’s total equity. The total number of stocks corresponding to the equity interests of a single employee The cumulative total does not exceed 1% of the company’s total equity. Gree Electric stated that the source of stocks for this employee stock ownership plan is the accumulated repurchased shares in the company’s special repurchase account and the shares obtained in a manner permitted by laws and regulations such as secondary market purchases.
Nandu reporter combed and found that since April 2020, Gree Electric has issued three share repurchase announcements. In 2020, Gree Electric Appliances repurchased shares twice, with a total of 12 billion yuan used to repurchase a total of 209 million shares, accounting for 3.48% of the company’s total share capital. On the evening of May 26, 2021, Gree Electric announced the highest of the new phase The 15 billion yuan stock repurchase plan is used to invest in equity repurchase for employee incentives, improve governance mechanisms, and do diversified businesses. The repurchase amount exceeds the sum of the previous two periods.
According to the announcement on June 20, the latest employee stock ownership plan intends to purchase the company’s repurchase shares at 27.68 yuan per share. The purchase price is equal to 50% of the company’s recent average price of repurchased shares, compared with the closing of the stock (53.68 yuan) last Friday. The price discount is as high as 51%. The total number of employees who intend to participate in this employee stock ownership plan does not exceed 12,000, including a total of 8 company directors (excluding independent directors), supervisors, and senior executives, as well as middle-level employees who have an important role in the company’s overall performance and medium and long-term development Cadres and core employees.

Among them, in this employee stock ownership plan, Dong Mingzhu intends to subscribe for a maximum of 30 million shares, and the proposed maximum amount of funds is about 830 million yuan, accounting for 27.68% of this employee stock ownership plan. Other directors or vice presidents subscribed for 600,000 shares, and employee supervisor Wang Fawen subscribed for 80,000 shares. The remaining shares are the company’s middle-level cadres and core employees. In addition, although employees can subscribe for Gree Electric’s shares at half price, this “benefit” also has additional conditions-the employee stock ownership plan has set a two-year performance appraisal period. The employee stock ownership plan assigns the corresponding rights and interests to the holders of the employee stock ownership plan in two phases according to the assessment results during the vesting evaluation period, and the attributable ratio in each phase is up to 50%. The evaluation indicators of the employee stock ownership plan are divided into company performance evaluation indicators and individual performance evaluation indicators. In the first vesting period, the net profit in 2021 will increase by no less than 10% compared to 2020, and the cash dividend per share for the year shall not be less than 2 yuan or the total cash dividend shall not be less than 50% of the net profit for the year. In the second vesting period, the net profit in 2022 will increase by no less than 20% compared to 2020, and the cash dividend per share for the year will not be less than 2 yuan or the total cash dividend will not be less than 50% of the net profit for the year. After the plan came out, some Gree Electric’s investors’ plan rebounded strongly, believing that the exercise and excitation conditions of the employee stock ownership plan were too loose: Due to the new crown epidemic in 2020, Gree Electric’s performance base for the year was very low. Performance as a benchmark to set the incentive conditions for employee stock ownership is too loose. In addition, Gree Electric’s share price has not risen significantly in more than two years. At this time, the employee shareholding plan stock price can be risk-free arbitrage at a 50% exercise. Some investors also believe that Dong Mingzhu’s personal shareholding is as high as 30 million shares, which is too high in the employee shareholding plan. In addition, the Southern Metropolis reporter noted that on December 31, 2020, Gree Electric’s share price reached its highest point of 69.79 yuan. But after 2021, its stock price has fallen all the way to early 50 yuan, and the cumulative decline has been close to 30%. Written by: Southern Metropolis reporter Kong Xueshao

That is to say, only when the Gree station is “high enough”, will there be this good news. Moreover, although this shareholding plan stipulates that employees can subscribe for Gree Electric’s shares at a 50% discount, Gree’s The employee stock ownership plan also sets a strict performance appraisal period. The evaluation indicators of the employee stock ownership plan are divided into company performance evaluation indicators and individual performance evaluation indicators. Among them, the company’s performance evaluation indicators are as follows: The lock-in period of the employee plan is 12 months, and the company’s performance evaluation indicators are based on 2020 as a reference benchmark. Among them, the company’s performance appraisal indicators are: the net profit of 2021 is compared with that of 2020 Increase not less than 10% , And the current year’s cash dividend per share shall not be less than 2 yuan or the total cash dividend shall not be less than 50% of the current year’s net profit; the net profit in 2022 will increase by not less than 20% compared to 2020, and the current year’s cash dividend per share shall not be less than 2 The total amount of RMB or cash dividends shall not be less than 50% of the net profit for the year. Gree Electric stated that the first assessment vesting period expires, and if the company’s performance assessment indicators do not meet the standard, the combined assessment will be deferred to the second assessment vesting period. If after the expiration of the second assessment vesting period, the company’s performance assessment fails to meet the standards, the management committee will make a decision to dispose of it, including cancellation or sale of stocks at an opportunity, etc., and the original capital contribution paid by the corresponding holder will be returned to the limit , The remaining income (if any) is returned to the company. That is, if the company’s performance evaluation indicators are not completed, everyone will not be able to enjoy the rights; if the company’s performance evaluation indicators are met, and the individual performance evaluation does not meet the standards, the individual will not be able to enjoy the rights. In addition, this provision is also mentioned in the employee stock ownership plan: Based on the needs of employees to increase stock appreciation gains and participate in corporate governance through centralized management, the holders of this employee stock ownership plan promise and authorize that they will directly hold the stock rights of this employee stock ownership plan before retiring from the company to their personal securities accounts. For some stocks, the union shall exercise the voting rights according to the will of the union (excluding the voting rights of the shares held by directors, supervisors, and senior managers). Without the prior written confirmation of the union, the union shall not sell or set a pledge on its own, otherwise the union has the right to withdraw it. The corresponding share income, related income is managed by a special account set up by the trade union and enjoyed by other holders, and the specific distribution method is democratically determined by the holders. To put it simply, Gree stated that this employee plan requires the holder’s commitment and authorization, and it is not possible to withdraw at will. The company enjoys the right to dividends before retirement, and the ban on sales can be lifted after retirement. As a result, it also largely restricts the behavior of employees selling stocks at will. It seems that in the face of this seemingly good employee stock ownership plan, Gree has many barriers to get it. Having said that, Gree’s “boots are on the ground” when it allocates employee housing some time ago to be delivered soon, but this time reading the content of Gree’s latest announcement, it is not difficult to see a big change in attitude. What’s more noteworthy is that Gree’s share price has fallen by four percentage points as of 11 am today. Gree’s market trend today clearly shows The capital market’s opposition to employee stock ownership plans. Finally, I would like to mention that this time the employee stock ownership plan, Dong Mingzhu made a floating profit of 800 million, Who is the big winner in the end? People may have thought of it…

On June 15th, according to Dong Mingzhu’s self-media news, more than 3,000 suites Dong Mingzhu promised to give employees will soon be delivered. The surrounding commercial districts and kindergartens are also intensively speeding up construction.

(Source: Dong Mingzhu from the media)

Public information shows that as early as the beginning of 2018, Dong Mingzhu said in public: “Gree will provide 80,000 employees with a two-bedroom and one-living house. As long as you work until you retire, the high housing price will have nothing to do with you.”

In May 2008, at the Gree Dream Ceremony, Dong Mingzhu once again promised to let Gree employees each have a suite. On August 25 of that year, the “Gree Pearl Plaza” containing 3,000 Gree talent apartments held a groundbreaking ceremony in Zhuhai.

At that time, Dong Mingzhu said that the “Gree Pearl Plaza” project is Gree’s major initiative to focus on talent innovation. It aims to reserve and train more outstanding talents for the manufacturing industry in Zhuhai, Guangdong and even the whole country, so that Gree will become a leader in the industry and let China Become the leader of the world.

Although the Gree Talent Apartment has been advancing in an orderly manner, recently some employees have complained in the variety show after staying in Gree for five years and have not been allocated a room.

In response to the above question, Dong Mingzhu said, “Gree’s goal of housing allocation has never changed. Our dream is to allow every employee to own a suite. This year we have 3,700 units, and the first batch is given priority to We have excellent employees, but those who are not excellent will be given, but we have to wait slowly. As long as you are good enough, we can give priority.” (Article|AI Finance News Summer)

Produced | Sohu School of Business

Edit | Xu Xiaoqi

On May 30, 2021, the National Young Entrepreneurs Summit will be held in Nanjing. Dong Mingzhu, chairman and president of Gree Electric, delivered a speech at the meeting.

“The responsibility and mission of our generation of entrepreneurs is to make the motherland strong.” Dong Mingzhu said that in China’s manufacturing industry, the low-end level will always be suppressed. So keep in mind the mission of innovation. Only by innovation can we develop more high-end equipment and advanced technologies. It is the value of entrepreneurs to make people live better.

Dong Mingzhu said frankly that Gree Energy is also today because it insists on independent research and development and independently cultivates talents. “We used to rely on other people’s technology, not only follow-up type, but also can be called backward type. But now, Gree Electric has developed from an air-conditioning company to cover the entire industrial chain of consumer goods, solving key core technical problems. And we not only It has broken through the motor technology and delivered it to the world’s top 500 companies to share our technology.”

She said that today, if we cannot innovate technology, then we cannot achieve carbon neutrality. There will always be competition in the world, but the biggest competitor is to change oneself .

In terms of talents, Dong Mingzhu pointed out, Many companies often worship returnees and bring in high-end international talents. However, Gree Electric currently has 16,000 R&D personnel, none of which are returnees, and there is no international talent.

“Gree Electric has given 16,000 Chinese college graduates opportunities and dreams. Up to now we have developed more than 80,000 patented technologies, including more than 40,000 invention patents, which is far ahead in the world.” Dong Mingzhu said.

Dong Mingzhu said that in the past, in the social rankings, we often saw the wealth of successful people. But now we have to pay attention to how many outstanding young people contribute to society. This is a common dream and pursuit that everyone must agree to achieve.

“In an era when young people are not short of materials, what should we pursue more? I want to say that the era of pursuing spiritual wealth has arrived.” She said.

Gree Pearl Plaza

As early as 2018, Dong Mingzhu promised in public that he would provide 80,000 employees with a two-bedroom and one-living house; in early 2019, Dong Mingzhu announced the opening of the Gree Talent Apartment. At the end of April this year, when Dong Mingzhu inspected the factory, she again talked about the employee’s housing issue. She said: “You can give employees an extra 10,000 yuan to solve their fundamental problems. These new employees may have to pay two years later. married.”

Gree’s suite for employees will be delivered soon

Even so, Dong Mingzhu was still questioned. Recently, Gree employees complained in a variety show that they had not been assigned a room after five years in the company.

In response, Dong Mingzhu said: “Gree’s goal of housing allocation has never changed. Our dream is to allow every employee to own a suite. This year we have 3,700 units, and the first batch will be given priority to us. Excellent employees, but the ones who are not excellent will be given, but you have to wait slowly. As long as you are good enough, you will be given priority.” Before this, Dong Mingzhu also expressed this view in public many times.

Dong Mingzhu immediately responded positively on the spot. Someone just said, “I haven’t been allocated a room for five years.” You have to ask why you haven’t been allocated a room? She said that Gree’s goal of housing allocation has never changed. Our dream is to allow every employee to own a suite. This year we have 3,700 units. The first batch of units will be given priority to our excellent employees, but the ones that are not excellent are also Will give, just wait slowly. As long as you are good enough, you can get priority.

Today Dong Mingzhu officially announced from the media that Dong Mingzhu’s promise of giving Gree employees one person, one house is really fulfilled. Since the foundation stone was laid in 2018, Gree Pearl Plaza’s talent housing has always attracted attention. Currently, the first batch of more than 3,000 employee housing units will soon be delivered, and the surrounding commercial districts and kindergartens are also intensively speeding up the construction.

IT House learned that Gree said that this talent apartment is the first phase, and it is necessary to ensure that every employee is a talent who contributes to the society, the country, and Zhuhai. With the construction of Gree Electric, everyone has a suite.

Dong Mingzhu once said: “Entrepreneurs must not only have the feelings of family and country, but also have social responsibilities, and more importantly, they must have the spirit of love to nurture generations of young people into talents, so as to allow our Chinese manufacturing to develop in an orderly manner. To serve the world.”

Hongmeng’s advantages are mainly reflected in device compatibility and system fluency. Huawei’s purpose in building this system is not to replace Android, but to build an era of the Internet of Everything.

In terms of fluency, because Huawei Hongmeng adopts the micro-kernel distributed design concept, mobile phones equipped with Hongmeng OS are more smooth to use than Android models, and the actual experience does not even lose to Apple’s iOS. As for the shortcomings of Hongmeng OS, it is the immature ecosystem. Compared with Android, which has been developed for so many years, Huawei’s ecological construction of Hongmeng is indeed not perfect. .

Honor mobile phone users are also looking forward to upgrading the Hongmeng OS. The official announcement of the upgrade plan will have to wait until the fourth quarter for the first batch of products. Insiders revealed that the reason is that Huawei and Honor have disputes over the ownership of the old models. It was not until March and April this year that the two parties confirmed their joint maintenance. As it was determined that it was too late to upgrade the Hongmeng system, the adaptation time was delayed by about half a year compared to Huawei. In order to allow more consumers to enjoy Hongmeng OS, the latest news indicates that the plan may be greatly advanced.

Recently, it has been reported that Dong Mingzhu has expressed his own opinions on the Hongmeng system and that Gree will be connected to the Hongmeng system as soon as possible. Dong Mingzhu said: Gree will be connected to the Hongmeng system in the future. Huawei is the most up-and-coming one, which makes us proud. We must learn from Huawei. Huawei will always be our big brother. Huawei is the first and Gree is the second. In fact, before that, Dong Mingzhu had also publicly stated that Hongmeng System, and their Gree appliances had also signed a cooperation with Huawei. In order to allow major manufacturers to adapt as quickly as possible, Huawei even donated Hongmeng’s infrastructure for major operators to develop.

Recently, it has been reported that Dong Mingzhu wants to enter a new field and invest in Taobao’s recently popular Taobao mobile phone software, from thousands of dollars of Adidas Nike and other sports shoes, to major fashion brand clothing, to tens of thousands of LV Rolex For famous bags and watches, only one or two hundred in the shopping, but the quality has reached the European and American standards. Everyone downloads the shopping crazily. In just two years, the shopping has caused a storm of trends in first- and second-tier cities!

Huawei welcomes major manufacturers to work together to achieve the joint construction of the foundation. At the same time, companies similar to Gree can build their own systems through redevelopment of the Hongmeng infrastructure, without the need to build from the most basic architecture.

In addition to speeding up the pace of mobile phone upgrades, third-party brands are also very active in adapting to the Hongmeng system. Brands such as Gree, Midea, and Joyoung have completed partial access to the Hongmeng system.

In addition to smart home appliances such as air conditioners, which Gree is good at, Gree has not given up the mobile phone business. Dong Mingzhu insisted that “Gree will continue to make mobile phones. Gree mobile phones do not challenge the ambitions of the mainstream market of brands such as Huawei and Xiaomi, but hope to find a way out through customized mobile phones. It is not ruled out that the mobile phone of the Huawei Hongmeng system is customized, and in terms of the insignificant volume of Gree mobile phones, joining the Hongmeng camp is the most suitable brand and will not cause overreaction.

Friends, has your mobile phone upgraded to Hongmeng system? If you are not a Huawei mobile phone, do you want your brand to join the Hongmeng camp? Welcome to leave comments and express your views and opinions.

Gree, founded in Zhuhai in 1991, has now become an aircraft carrier in China’s air-conditioning industry. But just a dozen years ago, Gree faced the danger of being sold to the Americans. Thinking of it, it makes people sweat.

In July 2005, the media suddenly exposed the news that “Carrier will acquire Gree Electric.” Although the Zhuhai State-owned Assets Supervision and Administration Commission quickly came forward to refute the rumors, the matter was definitely not groundless. “At that time, an official from the State-owned Assets Supervision and Administration Commission of Zhuhai who was interviewed by the “Chinese Entrepreneur” said: “Almost all companies that can come have come. Who doesn’t want to get Gree.” ”

At that time, Gree Electric’s restructuring was entering a very sensitive stage, and the Zhuhai municipal government was also hesitant about how to choose. Gree’s restructuring work began in 2003. Although Gree Group held 58.66% of Gree Electric’s equity, the restructuring work was still directly managed by the municipal government.

At that time, the Zhuhai Municipal Government had different opinions on how Gree should restructure. The party headed by the Secretary of the Municipal Party Committee at the time advocated introducing a major shareholder for Gree Electric. As long as the major shareholder can ensure that Gree Electric will remain in Zhuhai, it will be fine even if it is bought by foreign capital. The other faction is opposed to the shareholding of Gree Electric. Sold to foreign investors.

The party that agreed to sell Gree to foreign investors used the example of Shenzhen Water Group’s restructuring as a magic weapon. Two years ahead, Shenzhen sold its 45% stake in Shenzhen Water Affairs Group to the French Veolia Water Group at a price of US$400 million, and the restructuring was a success. Many people from the Zhuhai Municipal Party Committee and Municipal Government were very interested in this experience in Shenzhen. If a Fortune 500 company can be introduced to buy Gree, this will be a highlight for the political achievements of the ruling party, and it can also change Zhuhai’s backwardness in attracting foreign investment in the province at that time.

Soon after the news of Gree Electric’s equity transfer came out, a large number of foreign companies flocked to it. Companies that have expressed strong interest in equity transfers include internationally renowned companies such as American Carrier and Japan’s Daikin. Through a period of inspection, the Zhuhai Municipal Government has been more active towards the American Carrier Group, the company founded by the inventor of air-conditioning Willis Carrier, but these details have always been kept secret from Gree’s senior management.

In July 2005, when the Carrier Group launched an investigation before the acquisition of Gree, the Zhuhai Municipal Government revealed the acquisition plan to Gree’s management. The shock and resistance of then chairman Zhu Jianghong and general manager Dong Mingzhu can be imagined. .

In the life and death of Gree Electric, Dong Mingzhu showed the demeanor of an “Iron Lady”. She directed the staff to prevent the investigators of the Carrier Group from entering Gree’s gate, and she immediately went to Guangzhou to find Zhang Dejiang, then Secretary of the Provincial Party Committee, and told Secretary Zhang the pros and cons of the “national brand” of Gree being sold.

In Secretary Zhang’s office, Dong Mingzhu burst into tears: “Although American Carrier is a Fortune 500 company in the world, if we sell them to them, our domestic products are gone! Gree is small, but it has a future!” When it comes to excitement, she even said Slapped the table.

The result of this three-hour battle based on reason is that Secretary Zhang sent a provincial investigation team to investigate the acquisition of Gree Electric.

In fact, 2005 was a year of great strides for Gree Electric. Gree was the only representative of the home appliance industry on the “Top 500 Taxpayers in China” and “Top 500 Taxpayers of China’s Listed Companies” announced by the State Administration of Taxation in the first year. . Compared with the annual production capacity of 20,000 units when the company was founded, it has doubled by 140 times.

Dong Mingzhu is an ambitious woman. She has said in public many times: “We hope Gree can become a global brand. South Korea can cultivate a global brand like Samsung. Doesn’t China have the ambition to cultivate its own brand?” Under her leadership, Gree Electric took the lead in successfully developing With the “centrifuge” technology, it has completely independent intellectual property rights.

Dong Mingzhu is very supportive of the corporate restructuring, but she is not willing to sell Gree to Americans one hundred and twenty. Although Carrier has strong capital and leading technology, as well as a global sales network, she believes that this has no meaning to the improvement of Gree’s competitiveness. As she said in front of the secretary of the provincial party committee: “Gree has no shortage of funds, technology, and global sales network. Gree does not have a penny loan in the bank, and has good financing and technical capabilities. Gree’s global sales network is not inferior to that of Americans.”

At that time, Gree was about to reach the top of the home appliance industry. If it was acquired by the Americans, what would be waiting for Gree, Dong Mingzhu knew very well. Wasn’t Kelon also “the world’s best SME”? What happened after being acquired?

Dong Mingzhu is very clear that if Carrier acquires Gree, it will reverse the decline of foreign air-conditioning manufacturers in the Chinese market and become a strong oligarch in the Chinese air-conditioning market overnight. Once the acquisition is successful, Carrier can OEM production, greatly reduce costs, and deliver its products to every corner of the Chinese market through Gree’s blood vessels.

Regarding the restructuring, Dong Mingzhu’s plan is for Gree Electric to strive for a pilot “full-tradable share reform” and reduce state-owned shares to the public. This is also a key share reform project in Guangdong Province. However, some leaders in Zhuhai at the time were hesitant to “share reform” and insisted on selling Gree.

This is the moment of survival for a national brand. In order to succeed in the acquisition, the Carrier Group made a private promise to Dong Mingzhu: After the acquisition of Gree, she will continue to serve as the general manager, with an annual salary of 80 million yuan. Dong Mingzhu’s answer was eloquent: “I won’t agree with an annual salary of 800 million yuan!”

Everyone, what is the concept of an annual salary of 80 million in 2005? Even today, Dong Mingzhu’s annual salary is not two million, and 80 million is an astronomical figure for her. But Dong Mingzhu was not overthrown by sugar-coated shells, she wanted to turn the tide.

With the support of the main leaders of the province, the Zhuhai governing officials who advocated the introduction of foreign capital were removed, and Carrier’s plan to acquire Gree was aborted. The agreement to transfer equity has become Gree Electric’s choice.

Gree’s secretary of the board of directors said: “Entering the equity division platform, the pricing of state-owned assets is completely market-oriented, and the opportunity for cheap sales is immediately reduced. Gradually reducing state-owned shares through the secondary market can completely avoid the fate of foreign acquisitions.

In September 2006, Dong Mingzhu was appointed as a director of Gree Group, and then took over as chairman in 2012. Gree Electric has completely entered the “Dong Mingzhu era”. In this year, Gree Electric’s sales exceeded the 100 billion mark, becoming the first company in my country’s home appliance industry to rely on a single product to exceed the 100 billion mark in sales. Her oath of “recreating a Gree in five years” was also fulfilled.

Let’s go back and take a look at the American company that is preparing to acquire Gree!

On November 15, 2011, Midea Electric completed the acquisition of a 51% stake in Carrier’s air-conditioning business in Latin America and took over the air-conditioning business of Carrier in Latin America. Fang Hongbo, Chairman and President of Midea Electric pointed out: Holding the control of Carrier’s Latin American air-conditioning business is one of Midea’s global strategies. After the completion of this merger, Midea’s overseas manufacturing capabilities will be further strengthened.

In the announcement of the acquisition of Carrier, Midea Electric said: “In the long run, the global air-conditioning market will gradually evolve into a duopoly of Gree and Midea.” But Midea also admits that from the perspective of air-conditioning projects, Gree Bi Midea’s internationalization The process is one step faster. In recent years, the proportion of Gree’s own brand exports is much higher than that of Midea, and its influence has basically been established in overseas markets, especially European and American markets.

Gree people will never forget Dong Mingzhu’s generous statement on the board of directors: “The annual salary that Carrier offered me is too tempting, but I can’t accept it. Because the acquisition means Gree’s failure! Carrier is the world today. Fortune 500, but Gree will be tomorrow’s top 500! Give me 20 years, wouldn’t it be better for us to build the Fortune 500 ourselves?”