After Dong Mingzhu is re-elected first sound: Gree electric appliance because pay the tax much, the enterprise lived better, CEO said

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Titanium Media Note: recently, Dong Mingzhu, chairman and president of Gree Electric Appliances, attended the "upgrade China Smart Manufacturing-2019 China Intelligent Manufacturing chain Application Conference" sponsored by the Guangdong Provincial Department of Industry and Information Technology and the Dongguan Municipal people's Government. It was Dong Mingzhu's first public appearance since he was re-elected chairman of Gree.

In her first public speech after re-election, Dong Mingzhu revolved around the theme of “Upgrading China's Smart Manufacturing”. She said that many companies are on the road to confusion in 2018, but Gree has gained 50 billion yuan. Take the road of independent innovation. Dong Mingzhu proudly stated that Gree Electric Appliances reached the sixth place in 2018 in China. "Our core competitiveness comes from the fact that we have a huge innovation team. In the process of development, in the era of intelligence, we must achieve coordinated development of upstream and downstream."

In the speech, Dong Mingzhu also answered questions about Gree dividends, taxes, and products. She believes that the company is currently in a period of transformation and upgrading, and it is necessary to carry out greater and diversified development. No dividends for one year, more dividends for the future. Regarding tax payment, Dong Mingzhu said that Gree Electric paid more than 20 billion tax in the whole decade of 2001-2011, and paid nearly 100 billion tax in 2012-2018. Dong Mingzhu said that Gree will adhere to the consumer-oriented design concept and create more green, healthy, environmentally friendly and energy-saving products.

On the afternoon of January 16, at the first interim general meeting of Gree Electric in 2019, the meeting elected a new board of directors. Dong Mingzhu was elected the new non-independent director of Gree Electric and re-elected Chairman of Gree Electric. This also means that the 65-year-old Dong Mingzhu will remain in charge of Gree Electric for three years. After that, Dong Mingzhu said at the shareholders' meeting that the status of air conditioning boss would not change in a decade, and that air conditioning would always be the main business of Gree, with an annual growth rate of 10 percent.

The following is the full text of the speech:

Dear friends, good afternoon everyone! I am very happy. I only came back from Shandong last night. It is very exciting to see you here today. The theme of this conference is "Upgrading China's Wisdom", which also marks us from "Made in China" to "Made in China". An improvement.

Right now, in 2018, we were all hard on our minds, and many entrepreneurs were confused and worried about 2018. Today has entered 2019, looking back at 2018, what are we confused? In Gree's case, we had 50 billion growth in 2018, and in 2018, in such a confusing year, Gree grew. What do I want to share with you?

We have always thought it difficult. What's the problem? We can find a lot of reasons, such as the external environment, such as financial problems and so on. Gree is the same as everyone else. So how did we solve it? In this process, we see that the fundamental solution is to take the road of independent innovation, must take the road of independent innovation. So we can now see the development of Gree electrical appliances.

Our profit last year has already predicted to reach more than 26 billion. In China's manufacturing industry, especially the home appliance industry, we can say that it is unique. Where are those profits coming from? And when everyone is confused, how do you do it? I think there are two important points. One is that we firmly cultivate our own talents. The R&D team of Gree Electric has grown from more than 800 in 2012 to nearly 13,000 in 2018. Our core competitiveness comes from having a huge innovation team. Just like the director of the Yueqin, we are in the process of development. In the era of intelligence, we must achieve coordinated development of upstream and downstream. Gree achieved such results, mainly from profit, mainly from the cost control, I saw the "efficiency" and "benefit" of our month.

Therefore, it is impossible for us to scream for difficulties in this process. It is most important to solve on our own. I often tell an example. When a person already has cancer, even if he is given chemotherapy, give him an injection and supplement nutrition, it will only temporarily extend the life, and ultimately there is no way to cure. When our entrepreneurs discussed here today, we are a cold. This is a temporary problem. I think we can have a solution. Through our bank financing, through the support of the government, through the help of our upstream and downstream or our various entrepreneurs in different fields, we can solve the problem. But if you get cancer, there is no way to solve it. Therefore, I feel that in this process, it is very important for our company to reflect on how we should move forward when we are confused.

Gree Electric has lived better because it pays more taxes.

Taxation is also a very hot topic. Many companies are in the process of development, saying that government taxation is high and our company can't live. You really are because the tax is high, can't you live? Even if the country does not want your taxes, can you live? What do you rely on to compete? Do you rely on the state's tax revenue to compete? no.

Gree Electric has paid more than 100 billion yuan in taxes. However, everyone pays attention to the fact that from 2012 to 2018, the entire tax payment exceeded four times that of previous years. It shows that we are truly able to bear the taxpayer for the country. This is truly a viable enterprise. We used to pay very little tax, but the business is very difficult. I remember when I came back to sales in 1995, I found that Gree was a financial statement that seemed to be profitable. It was a loss-making enterprise to carefully straighten out all the internal things. How does a loss-making company live?

In order to survive, it is necessary to reform the internal system and the management system, including the construction of qualified personnel. Gree grew sevenfold in 1995, when it made $150 million, the year it was really profitable, the one that brought Gree back to life. As the company's marketing team builds up Gree Electric to survive and make money, we begin to see cost control in the enterprise.

Gree set up its cost-control office in 1997. By 2001, it was more than 60 billion. By 2003, it had really achieved 10 billion, breaking through 10 billion for the first time. But at that time we were paying hundreds of millions of dollars, so in the decade 2001-2011, we paid more than $20 billion. In 2012-2018, we paid nearly $100 billion in taxes.

That's a change, and when we talked about taxes last year, Gree was one of the biggest beneficiaries of the country's tax breaks, which were nearly 4 billion last year.

But this time I also heard many of our companies telling that the national tax is high. In fact, I think the tax burden is high and low. The government has to come up with a correct decision. To be in line with international standards, how should we pay taxes? This is not what our entrepreneurs are considering.

You have to ask us entrepreneurs, "how much tax do you think is reasonable? I don't think it's reasonable to say how much tax you pay, and it's better not to pay it." Right? So Gree electrical appliances in the process of development, we feel that it is not because we pay more taxes, our enterprises collapsed, in turn, we see through the data Gree electrical appliances because of paying more taxes, enterprises to live better, this is what? It is a kind of strength, because you make money, you should pay tax of course. How can you not pay tax in so many places in our country that need fiscal expenditure? No way. So we think the rationality of the tax burden is not the business, but the enterprise should strive to pay more tax, which realizes the harmony we say.

In order to pay more dividends in the future, what can be done without paying dividends for one year?

Look at our dividends. We can say proudly that Gree is a socially responsible enterprise. I remember no dividends in 2017, and everyone said why not? But why don't you ask so many listed companies that they haven't been listed for a year? I divided ten years, not a year, you asked me why not pay dividends? I do not share in dividends, because enterprises want to develop, we in the real transformation and upgrading time, we want to carry out greater, diversified development, for the future more dividends, what can not be a year without dividends?

Our dividends are still showing up. In 1996, we went public in 2000. In five years, we divided 500 million yuan, but our highest year after 2012 was more than 10 billion. Therefore, here also appeal to the entrepreneurs here today, I believe that many of you are also working with us. But don't forget, you must remember that buying Gree stock is the best choice.

We have seen many listed companies already "zombie companies." Why is it so high that the market value is so high? Because it is high, you can go to increase capital. If you are high, you can go to the bank to make a loan. For example, there are only one billion yuan in assets, but the market value has reached 10 billion yuan, and the bank has defrauded 5 billion yuan. Then the day after tomorrow, the company is not good.

Enterprises can not, capital is a guarantee, but relying on capital is not, enterprises want to succeed, depend on their own technology upgrading. You have to remember, Gree said that in 2010 we came up with core technology, so we can boldly say today that the world is in love with China. This is what we are talking about the competitiveness of enterprises.

I hope the government can protect our intellectual property rights.

It is also a pleasure to share with you that Gree ranked sixth in the number of patent licenses for Chinese inventions in 2018. Because the state began to pay more and more attention to patents and patent protection, which the government should do. Right? It doesn't matter if we give money or not, but we have to create a fair environment for patent protection. We have invested so much, trained so many talents, reached this team, we have created so much technology. Today, you did not steal it. He's going to dig tomorrow. Do we still have the confidence to do it? Do we still have the confidence to do research? So in the era of intelligent manufacturing, in the era of transformation and upgrading, in the era of big data, we hope the government can protect our intellectual property.

Speaking of which, they say Dong Mingzhu is a "network celebrity" and a "belligerent person". I say harmony is a struggle.

We must persist in cracking down on counterfeits.Only by persisting in fighting against disharmony and bad behavior can we achieve harmony and enable China to truly achieve development in a peaceful and fair environment.

The shareholder meeting was held the day before yesterday. I asked the shareholders meeting, he said that Gree can continue to maintain the boss? I said that you can rest assured that the boss will not change within ten years. An enterprise cannot survive by relying on the technology of others. I feel that as a manufacturing company, you must adhere to the spirit of integrity, adhere to the spirit of dedication, and adhere to the spirit of challenge, you can live a healthier life. I am also here to hope to send a good initiative to all enterprises. We are going to be a healthy cell in the motherland. Every one of our cells is healthy, and China is strong. Our manufacturing in China must be because of healthy cells, able to go to the world and serve the world with our products.

Don't treat the consumer as a fool and lie every day.

I think there are no borders in the economic field, which products should be used. Just like a few years ago, many of us went to buy toilet seats, went to Japan to buy rice cookers, and went to Japan to buy. Chinese rice cookers have also developed for 40 or 50 years. Why can't they take up the responsibility?. Why can't you make the best product in the world? You can also point to these people to buy rice cookers abroad, you have to point to yourself, because you did not make a good product.

So when I saw the Chinese go abroad to buy rice cookers, we were determined to make the world's best rice cookers, and we used four tons of rice to develop the best rice cookers, which you don't use today? Definitely! Will you buy rice cookers abroad after using them? No. This is what we talk about the competitiveness of enterprises. Don't treat the consumer as a fool, say false words every day, who still buy you? Impossible

Buying products is not patriotic or unpatriotic, is that you want to make the best products for others, so I am here today also proud to say that Gree Air conditioning is the best air conditioning in the world, you must use! The air conditioner used in the Great Hall of the people is ours, the air purification is ours, the purified water is ours, and the freezing and refrigerating is ours. Why use us? Because our products are of good quality. Use of foreign brands to consume 50 million a year of electricity, with my air conditioning as long as 30 million of the electricity, who do you say to use? No, Gree, not with yourself?

Gree Electric adheres to the design concept of consumer demand and creates more green, healthy, environmentally friendly and energy-saving products. When it comes to smog, Gree Electric has created photovoltaic air conditioners that are truly energy efficient and environmentally friendly. Especially in Guangdong, we use photovoltaic air conditioners here. The factory can save electricity. How much do you save? The second one does not pollute the environment. So I said that the vitality of a company lies in challenging itself and in creating the world. This is value.

Today, a reporter asked me, Mr. Dong, I want to ask you how about 2019? I said very well, he said that the difficulty is not difficult? If you say that you are having difficulty, you will encounter difficulties every day, otherwise you will want to do it? Our greatest ability is to solve problems, solve difficulties, and overcome difficulties. This is self-confidence.

I just saw that those smart equipments were developed by us. I hope that Gree Electric can cooperate with each other. At the very least, we will work together with some of our SMEs in Guangdong to develop together and improve our per capita efficiency.

Gree Electric in 2011, when the per capita output value was only 990,000, but at that time our research and development people only have less than 1,000 people. Today, when we achieved 200 billion, our R&D staff went to more than 10,000 people, plus our smart equipment molds, etc., this one is close to more than 30,000 people. In fact, our per capita output has increased three to four times, so I think that in the future, according to today’s theme, upgrading China’s intellectual creation means that we must have firm confidence and use our own strength to change it instead of relying on it. other people.

Finally, I conclude today with this remark. When I was at a meeting in Guangdong province, a man gave me some advice, saying how can you advertise as soon as you get on stage? I said you can do it, I have good products, product technology for consumers, of course I have to say. Right? You have the same skills as me. You can tell me where your products are good. So in the end, I ask you to be highly concerned, not only air conditioning to use Gree, refrigerators, washing machines and other series of appliances to use Gree, because Gree the future will give you a zero-carbon emissions of intelligent home, thank you!

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