According to data from the Shenzhen Stock Exchange, Gree Electric Appliance Co., Ltd. has recently gained two executives. The data released by Gree in a quarterly report showed that Chairman Dong Mingzhu was no longer in the list of Gree's top ten shareholders. On May 31, Gree Electric Co., Ltd. will usher in the time for the change of the board of directors. Is everything full of variables?

The first time this year, executives increased their holdings of Dong Mingzhu to withdraw from the “top ten”

According to data from the Shenzhen Stock Exchange, Gree Electric's directors and senior management Huang Hui and senior executive Tan Jianming recently increased their holdings of 5000 shares and 37,200 shares. Among them, Huang Hui held an additional 5000 shares at the stock price of 44.88 yuan on May 2. Tan Jianming added 22,400 shares and 14,800 shares at the share price of 45 yuan and 44.8 yuan on May 2 and May 3, respectively.

Currently, Huang Hui is a director, executive vice president and chief engineer of Gree Electric, while Tan Jianming is vice president and deputy chief engineer of Gree Electric.

This is the first time that Gree Electric has increased its holdings of the company's executives this year. Last year, Dong Mingzhu alone increased Gree Electric's shares in January and May.

In Gree, on the one hand, this year for the first time executives have increased their holdings of company shares. On the other hand, Dong Mingzhu has withdrawn from the list of top ten shareholders at the end of March.

The reporter noted that during the whole year of 2016, Dong Mingzhu added more shares in the company for more than 10 times. In the whole year of 2017, Dong Mingzhu added shares to the company three times. Since this year, Dong Mingzhu has not similarly increased his holdings. It was also "crowded out" of the top ten shareholders.

Gree's quarterly report on Gree Electric's shareholder structure shows that as of March 31, 2018, Gree Electric had no Dong Mingzhu in the top ten shareholders, and in the whole year last year, Dong Mingzhu was the company's ninth or tenth largest shareholder.

At present, the ten largest shareholders of Gree Electric Appliances are: Zhuhai Gree Group Co., Ltd., Beijing Hehai Guarantee Investment Co., Ltd., Hong Kong Securities Clearing Company Limited, China Securities Finance Co., Ltd., and Qianhai Life Insurance Co., Ltd.-Haley, Central Huijin Asset Management Co., Ltd., China Life Insurance Co., Ltd. - Dividends - Personal Dividends - 005L-FH002 Shenzhen, Gaochun Capital Management Co., Ltd. - HCM China Fund, National Social Security Fund 108, National Social Security Fund 101 combination.

Compared with the structure of the top ten shareholders at the end of last year, the organization “the National Social Security Fund's One-for-One Portfolio” is the newly entered shareholder, and Dong Mingzhu is ranked tenth.

Does it affect Dong Mingzhu's re-election?

Dong Mingzhu's exit from the top ten shareholders may only be related to the increase in social security funds. However, Gree Electric is ushering in a crucial moment, Gree Electric's board of directors is near the time of change.

Gree Electric's 2016 annual report shows that Dong Mingzhu's tenure will end on May 31, 2018. On May 31, Gree Electric Appliances will hold a general meeting of shareholders.

It is worth noting that in August 2017, Huang Hui, the executive vice president and general engineer of Gree Electric was promoted to CEO. In the 2017 annual report recently published by Gree Electric Appliances, his duties changed back to executive vice president and chief engineer. .

Prior to this, Huang Hui was considered to have the potential to become the next "head" of Gree Electric. However, it seems that this possibility is not yet clear.

And Dong Mingzhu's withdrawal from the list of top ten shareholders at the end of March has brought uncertainties to his reappointment as Chairman of Gree Electric Appliances?

According to Article 4.6.8 of Gree Electric's "Articles of Association" (promulgated in April 2017), the company's board of directors, board of supervisors, and shareholders who separately or jointly hold more than 3% of the company's shares have the right to nominate candidates for directors and shareholder representatives as supervisors; Article 5.1.2 stipulates: Directors shall be elected or replaced by shareholders' meetings for a term of three years. When the term of office of the directors expires, they can be re-elected.

According to this stipulation, the company's largest shareholder, Gree Group, can recommend four Gree Electric Director candidates. The second largest shareholder has the right to recommend two directors' seats. There are also three independent candidates.

From this perspective, whether or not Dong Mingzhu can be re-elected to a large extent depends on Zhuhai Gree Group, which is the major shareholder with 18.36% of the total shares. The Gree Group's decision will play a crucial role in the change of the board of directors. At present, Gree Group is 100% owned by Zhuhai SASAC.

Insiders pointed out that in 2016, Gree Electric Appliances achieved total operating revenue of 110.113 billion yuan, an increase of 9.50%; total profit of 18.531 billion yuan, an increase of 24.29%, net profit rate of 14.10%; in 2017, the company achieved revenue of 1482 Billion yuan, a year-on-year increase of 36.92%; net profit of 22.4 billion yuan, a year-on-year increase of 44.87%. Such performance is a favorable factor for helping Dong Mingzhu to continue his reappointment. In the first quarter of this year, relevant departments of Zhuhai City investigated Gree Electric Appliances in the first quarter of this year. Achievements are affirmed.