OVERVIEW
Statement Data
This is the first Environmental, Social, and Governance (ESG) Report published by Gree Electric The qualitative and quantitative information used in this report comes from publicly available information,
Appliances Inc. of Zhuhai. The Report mainly discloses the Company's efforts to actively respond to internal documents, and relevant statistics of Gree Electric Appliances, Inc. of Zhuhai, and the disclosure
the opportunities and challenges of sustainable development, integrate ESG management into the scope is consistent with the scope of the consolidated financial statements. Other contents that differ
Company's management and operations, and create comprehensive economic, social and environmental from this scope will be explained in the Report. Unless otherwise stated, all amounts mentioned
value for its stakeholders. hereunder shall be denominated in CNY.
References Executive Summary
This report has been prepared with reference to the "GRI Standards" issued by the Global Sustainability For ease of expression, "Gree Electric Appliances, Inc. of Zhuhai" is referred to as "Gree Electric",
Standards Board (GSSB), the "Sustainable Development Goals (SDGs)" of the United Nations, the "Gree", "the Company", or "we" in this Report.
"Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies -
Standard Operation of Companies Listed on the Main Board" and "Guidelines No. 1 of the Shenzhen
Stock Exchange for the Self-regulation of Listed Companies - Business Handling" issued by the
Shenzhen Stock Exchange. Acquisition
This electronic version of this Report can be accessed on the Company website (http://www.gree.com.
cn), Shenzhen Stock Exchange website (http://www.szse.cn) and CNINFO (www.cninfo.com.cn).
Time Period
The Report covers the period from from January 1, 2023, to December 31, 2023. To enhance the
completeness of the Report, some content may beyond the above time period.
Contact
Scope If you have any questions, suggestions or comments on this Report, please contact:
Address: West Jinji Road, Qianshan, Zhuhai
Tel: 0756-8669232
Unless otherwise indicated, the scope of organization of this Report covers Gree Electric Appliances,
Inc. of Zhuhai, its branches, subsidiaries and various production bases.
Chairman's Message
Hello everyone, thank you for reading this report. On behalf of the global refrigeration industry. Gree's globally pioneering "Zero Carbon washer-dryers, developing a heat pump washer-dryer that can achieve
Board of Directors of Gree, I would like to express my gratitude for Source" PV energy-storage air-conditioning technology has won the 37°C low-temperature drying without damaging clothes, addressing
your long-standing concern for Gree! In 2023, facing a complex and first Chinese Patent Gold Award in the central air conditioning industry the shortcomings of traditional washing machines in wrinkle and care
variable global economic environment, all Gree employees fought hard and received the highest award at the Global Refrigeration Technology removal, enabling dry cleaning at home.
and rose to the challenge, creating the best results since the Company Innovation Competition. This technology uses only one-fifth the energy
was founded 33 years ago. Our annual revenue reached CNY205.018 of traditional technologies, and can generate and supply power by In terms of corporate governance, we have always adhered to the
billion, with net profits attributable to shareholders of listed companies itself, reducing carbon emissions by nearly 90%. From the perspective governance principles of transparency, accountability and efficiency,
of CNY29.017 billion, and tax contributions of approximately CNY17.6 of saving on electricity costs, the investment cost can be recouped earnestly implemented the "Company Law of the People's Republic of
billion. within five years. Currently, this technology serves 35 countries globally, China" and other laws and regulations, and followed international best
saving an average of 14,300 kWh per project annually. practices to ensure the creation of sustainable value for shareholders
We understand that the success of a company is not only reflected in and society. To this end, we have rigorously selected and recruited
its economic benefits but also in its contributions to the environment In terms of industrial upgrading, since 2016, we have been vigorously board members who possess the necessary qualifications and
and society. Environmental, Social, and Governance (ESG), as promoting industrial upgrading, advancing digital development, experience, meet the requirements of diverse backgrounds, and bring
a concrete management tool for implementing the concept of continuously improving the level of intelligence, and committing in multiple perspectives to enhance the breadth and depth of decision-
sustainable development at the corporate level, makes it an undeniable ourselves to realizing the data operation and platform operation of making; we have strengthened our internal control management
responsibility for the company to carry out comprehensive and well- the entire value chain. Particularly in the production chain, we have system to ensure that all our business activities comply with the law
implemented ESG management and information disclosure. Hence, promoted the design, development and implementation of digital and a high level of business ethics, thereby preventing risks and
we have completed the compilation of our first ESG report, and we platforms. In 2023, the first high-density "automation, intelligence and protecting the rights and interests of our stakeholders; we have always
welcome everyone to learn about the related actions Gree has taken in digitalization" integrated production line of our "Black Light Factory" emphasized the importance of shareholder returns, with particular
the ESG area in recent years. in Gaolan Port was put into operation. It incorporates a number of emphasis on protecting the rights and interests of small and medium-
technologies such as automatic assembly, fastening, welding, pasting sized shareholders, ensuring that they can fairly share the fruits of
In fact, before the publication of this ESG report, we had already and testing, greatly improving the production efficiency, promoting the the Company's development. To date, we have distributed more than
released social responsibility reports for seventeen consecutive low-carbon and environmental protection in the production process, and CNY142 billion in dividends, demonstrating our long-term commitment
years. Enterprises are builders of the nation, and every enterprise accelerating the transformation of green development. to our shareholders.
should become a healthy "cell" in society, actively taking on social
responsibilities. The fate of enterprises is intertwined with that of the Socially, we develop home appliances around the needs of the people Gree's remarkable achievements in 2023 are already engraved in the
nation and humanity. Therefore, against the backdrop of global climate for a better life. The General Secretary proposed that the people's records, and the journey of pursuing dreams in 2024 has also begun.
change, as a responsible manufacturing company, we should contribute aspirations for a better life are our goal. Now we can say that Gree National intelligent manufacturing, green development, low-carbon
to the planet and the good life of people. develops and manufactures whatever people need for a better life. Our innovation, and a better life are the eternal missions of Gree. In the Year
"Windless Air Conditioner" solves the long-standing issue of discomfort of the Dragon, a lucky year for the Chinese nation, Gree will wave the
In terms of the environment, we have always embraced the national caused by direct cold air blowing from air conditioners, and it can also banner of "Made in China" with the vigor of a soaring dragon, vigorously
sentiment of green development. As early as 2013, we proposed the save 15% energy; we have produced a flower-level fresh-keeping advancing on the path to becoming a powerful manufacturing nation.
slogan "For the Clearer Sky and Greener Earth", and integrated this refrigerator, powered by -5°C cell-level fresh-keeping technology and
concept into our innovation and production practices. Today, of Gree's -38°C deep freeze fresh-keeping technology, which not only prevents
saving. In the era of low carbon, Gree serves green development with wilting or discoloration, allowing consumers to enjoy a better life; we
our products, creating some of the most energy-efficient products in the have integrated air conditioner compressor technology into traditional
About Gree
Company Profile
Gree Electric Appliances, Inc. of Zhuhai was established in 1991 and listed on the Shenzhen Stock Regarding quality management, Gree adheres to the principle of honest operation, customer-oriented
Exchange in November 1996. The Company started by assembling and producing household air approach, and strict control over quality and system construction. This commitment to quality has
conditioners, and has now evolved into a diversified and technologically oriented global industrial earned the Company a good reputation in the market, winning the third "China Quality Award" in
manufacturing group. Its industries span consumer goods and industrial equipment, with products sold in 2018. Additionally, Gree actively participates in the formulation of national standards, to promote the
over 190 countries and regions. improvement of industry quality levels.
In terms of industrial layout, Gree has actively expanded in both domestic and foreign markets by With respect to transformation and upgrading, Gree actively responds to supply-side structural reforms,
establishing 77 manufactures facility across provinces and cities such as Guangdong, Chongqing, and optimizes its industrial layout, and advances intelligent manufacturing upgrades. The Company has
Anhui, as well as in countries including Brazil and Pakistan. The Company has also set up six recycling expanded from specializing in air conditioning production to a diversified high-end technology industry,
facility, covering the entire industrial chain from upstream production to downstream recycling, achieving including intelligent equipment and communication equipment. Gree's intelligent equipment not only
a green, recycling, and sustainable development model. supports the Company's own automation transformation but also provides advanced equipment and
services for other industries.
About innovation, Gree has set up 16 R&D center, covering multiple fields such as refrigeration
technology and electromechanical technology. It hosts 152 research institutions, 1,411 laboratories, Gree always adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics
and an academician workstation. Gree sticks to the principle of "investing on demand without setting for a New Era, remains true to its original aspiration, keeps its mission firmly in mind, sticks to the
a ceiling" in scientific research investment, which brings remarkable achievements in technological real economy, follows the path of self-reliance and innovation, and accelerates the informatization of
innovation to the Company. As of March 2024, Gree has applied for a total of 119,842 patents, owns management, automation of production, and intellectualization of products, to continue to lead the
awards. equipment, communication equipment, and molds, creating more leading technologies to fulfill the global
consumers' aspiration for a better life, and setting sail in the intelligent era to write a new chapter!
Corporate Culture Gree's "real" culture
The corporate culture of Gree is
Less talk, More action centered around the core principles
of "realism, trustworthiness, integrity,
innovation, and respect", forming a
culture of external expansion and
Vision Mission Spirit Loyalty, Law-abiding
internal restraint that emphasizes
friendliness, c t I nt and honest
pe e practicality and keeping pace with the
diligence and
gr
s
ambition times. This excellent traditional style
Re
Carry forward the industrial
ity
Less talk
spirit, master core and strong spiritual force powerfully
technology, Quality first Real promote the Company to always stick to
Create a world-class and customer
Trus
More action its original aspirations, focus on industry,
Loyalty, friendliness, diligence satisfaction
ion
enterprise, Achieve Gree to Pursue perfect quality, Dedication to and relentlessly pursue first-class,
tw
Honest
at
be a century-old brand and ambition hi ov
or
provide first-class service, business and ne Inn
work, pioneering
excellence, and perfection, contributing
t
mutual benefit ss and innovation
the greatest value to society and
Strive for "Made in China, creating a better life for humanity!
Loved by the World"
History
Brand slogan:"Gree, Creates Much Sales Chance" Brand slogan: "Gree, the Mastering of Core Technologies" Brand slogan: "Made in China, Loved by the World"
Brand positioning: Turbo Cooling Brand positioning: Leading in Science and Technology Brand positioning: Serve the World
Brand development strategy: Initially establish a Brand development strategy: Transfer from "Made in Brand development strategy: Reshape the image of
high-quality image of Gree air conditioners, and China" to "Created in China" "Made in China", to introduce Chinese independent
create core advantages of product brands to the world
Category slogan: Gree produces excellent electrical appliances
(2022)
Brand slogan: "Making Better Air Conditioners" Brand slogan: "For the Clearer Sky and Greener Earth"
Category positioning: Changing from single air conditioner to full-
Brand positioning: Quality Takes Priority Brand positioning: Undertake Responsibility
space health appliances in the consumer category
Brand development strategy: "Excellent strategy" Brand development strategy: Shoulder the responsibility
Category development strategy: Demonstrate Gree's
of producing excellent products and creating of environmental protection and green development
technological innovation strength and diversified industrial layout
famous brands
in the field of household appliances
Core Products
Honors
Highlight 2023
Economic performance Environmental performance
The total operating revenue The net profit attributable to shareholders of Adjusted net profit attributable to list company
was CNY 205.02 billion listed company was CNY 29.02 billion shareholders was CNY 27.57 billion
A total of 9 national green factories,
The accumulated equity financing amounted to CNY 5.27 billion, with total dividends exceeding CNY 142 billion. 3 municipal green factories were
authorized
Among which, cash dividends totaled over CNY110 billion, and the amount spent on share repurchases totaled
approximately CNY30 billion, including about CNY3 billion in share repurchases in 2023.
Accumulatively processed more than
Governance performance 56.64 million units/sets of various
waste electrical and electronic products
Held accounting for
Carried out over saving about
General Meeting participated at the shares of the total number of shares of the energy-saving and cost- million kWh of electricity
of Shareholders general meeting of
shareholders the Company with voting rights Company with voting rights reduction projects
Held 6 Held 5 Over 40% 22.22% Held 4 investor Answered 146
The installed capacity
of PV construction
equivalent of greenhouse gas
Board Supervisory of independent female relations communicate questions on the interactive has reached
emissions directly reduced by
Meetings Meetings directors directors meetings platform of the Shenzhen
Stock Exchange emission reduction initiatives
Innovation performance Social performance
As of January 2024, the Company As of March 2024, the Company has Employee physical
Tax contribution was
examination rate reached
has 44 "internationally leading" applied for CNY 17.58 billion were employed
technologies
A total of 21,148 domestic including 64,539 Completed 59 with a total of and an average annual
and foreign invention patents invention patents training projects 25,000 person- satisfaction rate of
have been authorized times 98%
The Company has set up 16 research It has one national key laboratory,
one national engineering technology 100% of procurement staff More than 500 suppliers
institutes, research center, one national industrial passed sustainable procurement involved in the "conflict
training minerals" survey
technology center
workstation (motor and control)
Customer satisfaction ranked first in the air conditioning
It has trained and recommended 110 national, provincial, municipal, district (county) industry for 12 consecutive years
technical experts and 393 craftsmen who received the relevant honors
Awards and Recognition (As of March 2024)
Innovation awards
Engineering Science and Technology
First and Second Prizes of Guangdong First and Second Prizes of Science and First and Second Prizes of Several Geneva International
Talent Contribution Award (Enterprise)
Science andTechnology Award for Tech Technology Award of China National Innovation Award of China Energy Gold, Silver and Bronze Medals
of International Scientific Exchange
nological Invention Light Industry Council Conservation Association for Inventions
Foundation of China
People's Government of Guangdong China National Light Industry Council China Energy Conservation Geneva International Exhibition International Scientific Exchange
Province Association of Inventions Foundation of China
ESG/CSR awards
Green Design Demonstration 2023 Corporate Climate Action 20th Anniversary of Zhuhai Charity Federation - "2023 Outstanding 2022 "Charitable Loving
Enterprise of Industrial Products Case Contribution Compassionate Enterprise" Award Enterprise" Award
National Ministry of Industry and Ministry of Ecology and Zhuhai Charity Federation Zhuhai Charity Federation
Information Environment
Employer Most Socially Responsible Listed Company Enterprise Award Development in 2023
Haitou.cc National Business Daily iiMedia Research Beijing News Zero Carbon
Research Institute
Comprehensive awards
Greater Bay Area Navigation 2023 Zhuhai Excellent Private
Credit List of Top 500 Listed "Golden Wutong" Listed Company with Award – Award for Outstanding 2022 Fortune's Most Influential
Enterprise
Companies in China the Most Investment Value Contribution (Enterprise) IoT Innovation List
Zhuhai Municipal Committee of the
China Enterprise Reform and Chinese Industrial Co-operatives, Jian Communist Party of China, Zhuhai
Hong Kong Ta Kung Wen Wei Fortune
Development Society Financial Information, and TMTPOST Municipal People's Government
Governance awards/
Brand and marketing awards certifications
and Enterprise Culture Construction Outstanding Contribution China's Brands in 2022" by Brand Forum - Top 100 for Honest and Trustworthy
Brand Value Leader
Model Unit Brand Unit China National Brand Network Annual Brands List Business Practices
Guangdong Research Committee of
Corporate, Guangdong Brand Research China Council for Brand China Council for Brand China National Brand Sina Finance China Enterprise Reform and
Committee, and Guangdong Market Development Development Network Development Society
Economy Promotion Association
Product awards
"Wisdom Wind" air conditioner The GMV Enjoy series household
PV energy-storage multi-
A number of German for the elderly was selected for central air conditioning was approved Gree Kinghome "Global Freshness"
connected unit won the The Guofeng cabinet air conditioner
Red Dot Awards in the the 2022 Promotion Catalog of as an innovative consumer product of Refrigerator won the Health Star of
gold medal at the 2023 received the AWE2024 Gold Award
product design category Smart Health and Elderly Care "Upgraded and Innovative Consumer Chinese Household Appliances
China Refrigeration Expo
Products and Services Product (Light Industry, Tenth Batch)"
Gree Kinghome "Global Freshness"
German Design National Ministry of Industry China National Light Organizing Committee of Household Appliances
Refrigerator won the Health Star of
Association and Information Industry Council China Refrigeration Expo Magazine
Chinese Household Appliances
February February March May
Gree independently developed Gree and China Pingmei Shenma China National Light Industry Council announced the award-winning The 12th General Assembly of
"high-efficiency heat pump Group jointly developed the "Key projects for the Science and Technology Award of China National Light the ISO/TC 86/SC 4 Refrigeration
technology based on floor heat Technology and Application of New Industry Council 2022, with Gree winning three awards. Among these, Compressors Subcommittee was
storage", which was examined Refrigeration Complete Equipment for Gree's high-efficiency electrothermal dual-drive bacterium elimination held in Zhuhai, and Ms. Dong
by the expert panel on-site and Heat Hazard Treatment in Deep Mine" technology and its application in air purifiers, and the key technology Mingzhu, Chairman of ISO/TC 86/SC
deemed to be at the "international project, which was assessed by experts and industrialization of high-efficiency low-noise air conditioning motors 4, participated in and made a speech
leading" level of overall technical to have reached an internationally received the first prize. at the meeting.
standard. leading technical level.
August June June May
Gree's "D-CTFP Quality Technical Innovation Cycle Method" was included Forbes released the 2023 "Global To help China's lychee industry achieve high-quality The "2023 Zhuhai · International
in the "Typical Cases of Quality Change and Innovation by Chief Quality 2000" list, where Gree ranked development, promote common prosperity, and drive Standardization Conference", jointly
Officers in 2023" announced by the State Administration for Market 331st, up 25 places from the rural revitalization, Gree independently developed hosted by Gree, Hefei General
Regulation, and also included in "The Way of Quality Success – Typical previous year. specialized lychee preservation mobile equipment Machinery Research Institute,
Cases of Quality Change and Innovation by Chief Quality Officers in in over 40 days and held the first unit's launch and China Refrigeration and Air-
Guangdong Province" due to its advanced quality management concepts, ceremony at Zhuhai Gree Lvkong Technology Co., Conditioning Industry Association, was
methods, experience, and practice. Ltd. held in Zhuhai.
November
September to December
The achievement of Gree's "Independent Innovation and The 28th United Nations Climate Change Conference was held in Dubai, UAE. Gree Electric Appliances, Inc. of Zhuhai received the first conformity
Application of Key Technology for Intelligent Ventilation Air Ms. Dong Mingzhu, Chairman of Gree, attended the "China Corner" meeting on certificate and declaration issued by Intertek in several fields. Five
Conditioning System of Maglev Direct Expansion Metro December 3 and delivered a keynote speech, showcasing the achievements PV air conditioning models were awarded the first IEC TS 62910
Station" was rated as "internationally leading", offering a new of China's manufacturing industry in green and low-carbon development and conformity certificate by Intertek, indicating that these models have
solution for the construction of efficient environmental control sharing Gree's zero-carbon story in China's response to climate change. fully integrated low-voltage ride-through requirements into their
systems in China’s newly built subway stations. development and design processes.
ESG Management
Stakeholder Communication
Gree actively carries out communication with various stakeholders, collects the requirements and expectations of stakeholders through various channels, and realizes common development with them.
Major
stakeholder
Government department
and regulatory authority Shareholder and investor Customer Partner Employee Society and the public Environment
Law-abiding and Law-abiding and compliant operation Customer management Adherence to business Occupational health and Responding to national Energy management
compliant operation Intellectual Property Protection Product quality and safety ethics safety strategies Water resource
Transparent disclosure Transparent disclosure Accessibility of products Industry exchange and Career training and Practicing social management
Improving corporate and services development development responsibility Waste management
Risk Management
governance Supply Chain Management Protection of employee rights Addressing climate change
Key Issue Improving corporate governance and interests
Adherence to business Green Office
ethics Adherence to business ethics Employee communication
Technological innovation and democratic management Developing circular
economy
Employee care
Diversity and equal
opportunity
Inspection by leaders and General Meeting of Shareholders Customer satisfaction Selection assessment Training and induction E-mail Carrying out carbon
competent authorities Investor exchange meetings survey Procurement process training Tel footprint verification, energy
Compliance patrols and E-mail and daily phone E-mail and suggestion box conservation and emission
Online performance briefing Performance evaluation Company announcement reduction
inspections communication Regular meeting
Shenzhen Stock Exchange Easy Regular communication Social network platform Developing clean energy
Regular meetings Interaction Q&A Customer e-mail with business partners (e.g. Employee performance
with local government Company website Carrying out product carbon
Communication Investor Hotline Responding to customer e-mails, meetings) evaluation
representatives complaints Social media footprint accounting
and channel Company research Employee Activities
Forums, conferences and Customer visits Charitable donations and Cultivation of low-carbon
seminars Telephone consultation voluntary services awareness of users
Daily policy E-mail Community activities
implementation
Regular reports and information
disclosure on official website
Materiality matrix Matrix of ESG Materiality Assessment Analysis for Gree 2023
In 2023, Gree conducted an ESG materiality assessment to effectively respond to the expectations
and demands of various stakeholders, continuously improving the level of ESG management. During 打一体
this reporting period, we orderly carried out the research on material issues based on the process of
Importance to external stakeholders
"stakeholder communication—issue identification—issue evaluation—materiality confirmation". 15
We maintained regular communication with investors, customers, 16 22
Stakeholder government agencies, and employees, among other stakeholders. We 19 11 01
Communication recorded the issues and specific content of different stakeholders' concerns 14 25 24 04
and responded to their demands. 05
Based on the "Guidelines for Self-regulatory Rules of Companies Listed
on the Shenzhen Stock Exchange", the United Nations' 17 Sustainable 23
Issue Development Goals (SDGs), "GRI Standards", mainstream ESG ratings,
identification national policies, industry benchmarking, and the results of stakeholder
communications, we identified 28 issues highly relevant to the Company.
Importance to internal stakeholders
We sent out the "Survey Questionnaire on Material Issues
for 2023 Gree ESG Report" to various stakeholders to Governance Social Environment
Questionnaire
gather their rankings of issue importance and suggestions
Law-abiding and Occupational health and Product quality and Energy
for improvement. 1 8 15 22
Issue compliant operation safety safety management
evaluation Intellectual Property Career training and Accessibility of Water resource
In 2023, we conducted interviews with nearly 30 internal 2 9 16 23
Protection development products and services management
Interview departments on environmental, social, and corporate Transparent Protection of employee Industry exchange and Waste
communication governance issues, listening extensively to their opinions 3 10 17 24
disclosure rights and interests development management
and feedback. Employee communication
Technological Addressing climate
innovation change
management
Protecting investors' Supply Chain
Based on the survey results from stakeholders, we created a material issue 5 12 Employee care 19 26 Green Office
rights and interests Management
Substantive analysis matrix.
Improving corporate Diversity and equal Responding to national Developing circular
confirmation Combining the Company's development strategy, interview communications, 6 13 20 27
governance opportunity strategies economy
external inquiries, and industry trends, we confirmed the material issues. Adherence to Practicing social
business ethics responsibility
Improving Governance
and Compliant Sound
Operations
Good corporate governance is an essential foundation for achieving
excellent operational performance and long-term sustainable
development for the Company. Enhancing corporate governance
not only safeguards the interests of all stakeholders but also helps
maximize company value. Gree follows its "Articles of Association",
continuously improves its governance system, benchmarks against
excellent international peer practices, and constantly improves its
corporate governance mechanism to drive the Company to create
sustainable value.
Solidifying Corporate Governance 14
Improving Compliance and Risk Control System 17
Strengthening Investor Relations Management 18
Standardizing Business Ethical Behavior 20
Focusing on Information Security Protection 22
SDGs benchmarking
Solidifying Corporate Governance
Gree is committed to establishing an efficient and transparent governance structure. Based on the
"Company Law of the People's Republic of China", "Securities Law of the People's Republic of China",
"Code of Corporate Governance for Listed Companies", and other relevant laws, regulations, and
normative documents, the Company has formulated and implemented a series of internal governance
systems, such as the "Articles of Association" and "Procedural Rules for Shareholders' General
Meetings", and established a structure of General Meeting of Shareholders, Board of Directors, Board
of Supervisors, and management layer to solidify the foundation of corporate governance and promote
efficient and sustainable development of the Company.
Corporate Governance Structure Diagram
General Meeting of Shareholders
Elect Report Elect Report
Board of Directors Shareholders and General Meeting of
Formulate Supervise
Shareholders
Formulate internal management systems and
Establish Report
The Company strictly adheres to laws, regulations, normative documents, and the provisions
Appoint, supervisor, guide
Special Committee of the Board of of the "Articles of Association" and "Procedural Rules for Shareholders' General Meetings",
Board of Supervisors
management methods
Directors
and standardizes the convocation, holding, and voting procedures of the general meeting of
Audit Committee shareholders. It treats all shareholders equally, especially ensuring the legal rights of minority
Report
shareholders, safeguarding shareholders' rights to information, participation, and voting on
Remuneration and Evaluation significant company matters, and facilitating shareholder attendance at meetings to fully exercise
Committee their legal rights. After the proposal for general meeting of shareholders is procedurally reviewed,
Nomination Committee the Meeting deliberates on the agenda items listed in the meeting notice.
Supervise and guide
Report
Implement Supervise During the reporting period, the Company held
Business Management and deliberated 12 proposals.
Directors and Board of Date of Initial Education Professional
Name Position Held Gender Age
Directors Appointment Background Ability
Chairman and
Dong Mingzhu Female 69 2012.05 Master Degree Industry expert
The Board of Directors is accountable to the general President
meeting of shareholders and strictly follows national Secretary of the
laws, regulations, and the provisions of the "Articles of Zhang Wei Party Committee Male 47 2019.01 Bachelor Degree Industry expert
Association". Leveraging their extensive experience, and Director
the Board effectively oversees the Company's strategic
direction and key risks, provides guidance to management, Guo Shuzhan Director Male 67 2019.01 Associate Degree Industry expert
considers and approves major decisions, supervises
business, and evaluates company performance. The
Zhang Jundu Director Male 63 2012.05 Associate Degree Industry expert
Company carries out the procedures for the selection
and appointment of directors and the management of Director, Vice
their powers in compliance with the law, focuses on the President, and
Deng Xiaobo Male 48 2020.12 Undergraduate Industry expert
diversity of the Board of Directors, and seeks to enrich Secretary of the
the representativeness of the members of the Board of Board
Directors in terms of gender, experience, qualifications Independent
and professional backgrounds, so as to provide more Liu Shuwei Female 71 2019.01 Master Degree Financial expert
director
comprehensive and professional decision-making for the
development of the Company. Independent
Wang Xiaohua Male 62 2019.01 Master Degree Legal expert
director
Independent
Xing Ziwen Male 61 2019.01 Doctor Industry expert
director
As of the end of 2023 the Company's Board Independent
Zhang Qiusheng Male 56 2022.03 Doctor Financial expert
director
of Directors consisted of 9 directors,
including five directors, four independent
directors and 2 female directors. There are three specialized committees under the
Board of Directors, including the Remuneration and
During the reporting period, the Company held 4
Evaluation Committee, the Nominating Committee
and the Audit Committee, with independent directors
meetings of the Audit Committee, and 2 meeting
During the reporting period, the Company comprising over 50% of each professional committee. of the Remuneration and Evaluation Committee.
held
Supervisors and Board of
Audit Committee
Supervisors
Proposing the appointment or replacement of external audit firms;
Overseeing the Company's internal audit system and its implementation;
The Board of Supervisors supervises the legality of the Company's financial
Managing communication between internal and external audits;
operations and the performance of duties by directors and senior management,
Reviewing the Company's financial information and its disclosure;
safeguards the legitimate rights and interests of the Company and its
Examining the Company's internal control system;
shareholders, examines the Company's financial situation, expresses opinions
on relevant major matters, and is accountable to, and reports to, the General
Meeting of Shareholders in strict accordance with national laws, regulations,
and the "Articles of Association". The members of the Board of Supervisors of
Nomination Committee the Company were elected in accordance with relevant laws and regulations
and the Company's internal regulations, conscientiously performed their duties
Advising the Board of Directors on its size and composition based on the by attending the general meetings of shareholders and attending the board
Company's business activities, asset size, and shareholding structure; meetings, and fulfilled the duties of the Board of Supervisors in good faith,
Researching and suggesting criteria and procedures for selecting directors and diligently and conscientiously.
senior management;
Select qualified candidates of directors and senior management;
Reviewing candidates for directors and president and making recommendations;
As of the end of the reporting period, the Board of Supervisors of
the Company consisted of 3 supervisors, including 1 employee
Remuneration and Evaluation Committee representative supervisor.
Assessing the performance criteria for directors and senior management and
providing suggestions;
Studying and reviewing the compensation policies and plans for directors and
senior management.
During the reporting period, the Company held 5 meetings of
Board of Supervisors and deliberated 18 proposals.
Improving Compliance and Risk Control System
Gree firmly believes that a mature internal control system can ensure the standardized operation and healthy development of the Company and safeguard the legitimate rights and interests of shareholders. The
Company has established and continuously improves an effective internal control management system, regularly identifies risks faced by the Company, and significantly enhances compliance awareness and major
risk control capabilities.
Compliance Management Risk Control
The Company establishes an effectively operating internal Meanwhile, the Company engages a third-party professional In order to clarify the Company's management responsibility for
control system in accordance with the "Company Law" and other organization to conduct self-assessment of the compliance the prevention and control of various risks and opportunities,
laws, regulations and provisions, and continuously improves the and effectiveness of the Company's internal control system enhance the risk awareness of cadres and employees, and
internal control system in accordance with the internal control every year, and timely updates and improves the internal improve the Company's risk control capability, Gree has
guidelines and the actual situation of the Company to ensure control system in accordance with the provisions of the "Basic formulated the "Measures for the Administration of Risks and
the effectiveness of the internal control system. The Company Specifications for Internal Control of Enterprises" and its Opportunities", which identifies, monitors, and evaluates internal
earnestly carries out internal control and compliance assessment accompanying guidelines, taking into account the Company's and external environments related to the Company's purpose
work. The Board of Directors, Audit Committee, Board of internal and external environments, changes in its internal and strategic direction, and at the same time identifies and
Supervisors and operational management clearly define their organization and management requirements, etc., and discloses evaluates relevant parties' expectations or requirements related
roles and responsibilities, and connect the internal control work the financial reports issued by the annual auditor in the relevant to the Company's management systems of quality, environment,
of each unit with the Company's business processes, so as to media to be reviewed and supervised by the relevant parties. occupational health and safety, hazardous substances process,
closely link the internal control work with daily operations and energy, information security, etc.
realize the closed-loop operation of risk management work.
Strengthening Investor Relations
Management
Gree values communication with investors, and always follows the principles of compliance, equality, Shareholder Returns and Dividends
initiative, honesty and trustworthiness. With reference to the "Guidelines No. 1 of the Shenzhen Stock
Exchange for the Self-regulation of Listed Companies - Standard Operation of Companies Listed on While the Company continues to promote its own sound development, it has always placed
the Main Board", "Guidelines for Investor Relations Management of Listed Companies", and other an important position on rewarding its shareholders so that they can share the fruits of the
laws, regulations and standardized documents, the Company has formulated the "Investor Relations Company's development and promote the rational development of the capital market. Since its
Management System" and the "Measures for the Administration of Information Disclosure" to disclose the listing in 1996, the Company has accumulated CNY5.269 billion of equity financing and CNY142
relevant information of the Company in a comprehensive and timely manner through announcements, billion of dividends, including more than CNY110 billion of cash dividends and about CNY30
so as to ensure that the investors are able to fully understand the Company's operation status and billion of share repurchases. During the reporting period, the amount of repurchased company
development prospects. shares was about CNY3 billion.
Information Disclosure Protecting Investors' Rights and Interests
The Company strictly abides by the principles
of information disclosure, fulfills its information In order to better serve investors, the Company has equipped a professional team to deal
During the reporting period,
disclosure obligations truthfully, accurately, with investor relations related matters, and proactively communicates with investors through
completely, timely and fairly, and continues to
deepen the institutionalization and standardization
the Company released 55 various channels such as communication on the Easy Interaction platform, general meeting of
shareholders, performance briefings, telephone communication, and meeting communication,
announcements to the public.
of its information disclosure work, strengthen the to enable investors to better understand the Company's development strategy and current
disclosure of environmental, social and corporate situation.
governance information, and continuously
enhance the transparency of the Company. including
Gree investor communication methods and activities
Information disclosure channel Information disclosure content
Conduct diversified investor Conduct regular performance Establish a regular
China Securities Securities Daily
Periodic reports: including annual, interim and quarterly reports. communication activities briefings to answer investor investor communication
Journal
Interim reports: announcements of major events, etc. and facilitate investor queries mechanism to ensure the
Shanghai Securities CNINFO
Other information required to be disclosed by laws and communication channels long-term smooth flow of
News
administrative regulations. communication channels
Securities Times
The Company attaches importance to the needs of small and medium-sized investors who wish to enhance their understanding of the
During the reporting period, the Company: Company and communicate with the Company, and actively participates in the activities carried out by investor protection organizations to
safeguard the legitimate rights and interests of investors.
held 1 annual performance briefing Case
Actively promoting the participation of small and medium-sized shareholders in general meetings
of shareholders
In June 2023, the Company held a general meeting of shareholders, where the Company actively pursued online voting by providing a
conducted
clear and easy-to-use online voting platform and ensuring that all shareholders were free to access and use the platform. The Company
also invited a third-party law firm to monitor the voting to ensure its fairness and transparency. This facilitates the participation of small
and medium-sized investors in major corporate decisions and enhances the transparency and fairness of corporate governance.
According to statistics, a total of 2,340 small and medium-sized shareholders and shareholders' proxies participated in the on-site
held meeting and online voting at the general meeting of shareholders, representing a total of 1,069,862,628 shares of the Company
with voting rights, accounting for 19.0576% of the total number of shares of the Company with voting rights. Among them, 2,277
shareholders voted through the Internet, representing a total of 716,283,439 shares of the Company with voting rights, accounting for
held 4 investor relations exchange meetings facilitates investors' participation in corporate decision-making, enhances the interaction between investors and the Company, and
provides a strong guarantee for the improvement of corporate governance.
answered 146 questions on the interactive
platform of the Shenzhen Stock Exchange At the same time, the Company has established a comprehensive independent director system to effectively protect the rights and interests of
small and medium-sized investors, playing the role of "participation in decision-making, checks and balances, and professional consultation".
It carefully considers the motions and expresses independent opinions on the relevant motions, and provides advice and suggestions for the
promotion of the Company's long-term and stable development.
answered about
Carrying out the small and medium-sized investors' communication campaign of "Understanding
Case
My Listed Company - Entering the Blue Chips"
In August, the Company participated in the series of activities of "Understanding My Listed Company - Entering the Blue Chips", led
the Shareholder Observation Mission, which included individual investors, to visit the headquarters of Gree Electric, and had in-depth
exchanges with the Chairman, the Secretary of the Board of Directors, and the relevant technical personnel of Gree. The Chairman
of the Company took the initiative to answer questions on diversified development strategies and other issues of concern to investors,
and interacted with the on-site audience, strongly deepening communication with small and medium-sized investors and safeguarding
the rights and interests of small and medium-sized investors.
Standardizing Business
Ethical Behavior Anti-corruption
In order to strengthen the control of business ethics issues and Gree has formulated the "Ten Provisions on Integrity in Practice" in
prevent and reduce the Company's risks, Gree strictly follows accordance with the "Measures for Administration of Discipline Inspection
the relevant laws and regulations such as the "Company Law", and Supervision" and other systems, clarified the Company's stance on
"Anti-monopoly Law", "Anti-Money Laundering Law", "Anti-Unfair conflict of interest issues in business, provided a clear definition of specific
Competition Law", "Oversight Law" and the provisions of the related persons, regulated the activities of specific related persons in terms of
"Articles of Association", and has formulated the "Measures for their hiring, holding office as well as the Company's business dealings, and
Administration of Discipline Inspection and Supervision" and other clarified the relevant management policies, to effectively prevent the risk of
systems, to prevent unethical business conduct such as bribery, corruption of personnel and create a working environment of clean practice.
bribe-taking, fraud, money laundering, unfair competition, and
conflicts of interest, promoting a clean and ethical working style The Company regularly carries out integrity education, including publishing
and adherence to business ethics. the "Integrity Briefing" and carrying out discipline education and study month
work, covering all employees, so as to comprehensively improve employees'
The Company has set up the Discipline Inspection and Supervision awareness of business ethics, establish the concept of integrity and prevent
Office, which is specifically responsible for carrying out the business ethics risks. At the same time, all suppliers are required to comply
Company's discipline inspection and supervision management with the Company's business ethics and anti-corruption related systems in
work, conducting integrity education, preventing corruption risks, order to achieve long-term sustainable and collaborative development of the
and implementing the investigation and handling of suspected supply chain.
violations of the law. The Company reviews and updates this series
of business ethics practices from time to time.
Actively carrying out the annual self-
Case
inspection of clean employment
At the beginning of 2023, Gree carried out its annual integrity self-
inspection. Senior management, middle-level managers, and key
personnel from various departments and branches filled out integrity
self-inspection forms, self-inspecting and reporting on issues like
acceptance of gifts, information disclosure, and misuse of company
assets. Through the annual self-inspection, Gree effectively guides all
employees to enhance the ideology of integrity, practice the Company's
development philosophy, and protect the healthy development of the
Company.
Complaints and Reporting
In order to maintain the principles of "three opennesses and three stresses" of the Gree complaints and reporting management
enterprise, Gree adheres to the principles of fairness and impartiality, openness
and transparency, and clear distinction between public and private interests to
carry out production and operation, to ensure the smooth implementation of President's mailbox: The Company has established over 30 president's mailboxes in various
reporting work, standardize the duties and content of information acceptance, departments, canteens, gates, and factories to facilitate real-time complaints and reports by
investigation and processing, file management, protection, reward and punishment .com employees.
of reporting work, and develop the "Reporting Management Measures" combined
Reporting E-mail and hotline: The Company has designated the Enterprise Management Department
with the actual situation of the Company. The Measures clearly stipulate the
channel and the Discipline Inspection and Supervision Office to be responsible for complaints about
investigation and handling of reported incidents, whistleblower rewards and
work quality and integrity, providing public reporting e-mail and hotlines.
punishments, investigator recusal and whistleblower protection mechanism, to
ensure the effectiveness of the reporting work throughout the whole process, and
safeguard the rights and interests of employees.
Investigators with a potential conflict of interest in their specific investigative responsibilities
must explain to their supervising leaders and, upon approval, recuse themselves.
Investigator
recusal
Fairness and
impartiality
Three principles of The Company mandates strict protection of the personal rights and other legal rights of the
equity whistleblowers; no one may retaliate against whistleblower or employees cooperating with
the investigation.
The department handling reported incidents and its investigators shall not:
openness and clear distinction 1. Violate confidentiality requirements or disclose reporting information;
transparency between public and
private interests 2. Privately store, detain, alter, forge, replace, conceal, lose, or destroy reporting materials;
Three principles Whistleblower them to the reported individuals;
protection 4. Conceal, falsely report, or fail to report significant reporting information within the
prescribed timeframe, causing severe consequences;
the whistleblower;
Stress the truth to do Stress principles to do Stress dedication to make
practical things good deeds great achievements
Focusing on Information
Security Protection
In order to safeguard the confidentiality, integrity and availability of the Company's
information assets, Gree has formulated the "Measures for Administration of
Information Security" and other systems to standardize the flow management
for the exchange of various types of information internally and externally and
the requirements for the use and storage of such information in accordance with
relevant national laws and regulations, so as to comprehensively and effectively
implement the information and data security. As of the end of 2023, the Company
has obtained the ISO27001 Information Security Management System Certificate.
The Company actively carries out information security education, specifies the first
responsible person and security administrator of each subsidiary and department,
coordinates and manages all kinds of information security management work, and
independently evaluates the Company's information security management methods
and information security control objectives, control measures, strategies, etc. at
least once a year to ensure that the system is perfect and reasonable. When major
changes occur, it is necessary to immediately organize the relevant units to carry
out the review work, record the review situation, follow up and rectify the problems
found in the review.
As of the end of 2023, the Company has
obtained
the ISO27001 Information Security
Management System Certificate.
Green development
for the guardianship
of Earth
Gree adheres to the concept of "For the Clearer Sky and Greener
Earth", and always follows the principles of green and energy-
saving for innovative research, development and manufacturing.
The Company adheres to the energy policy of "rational use of
energy, and improvement of energy efficiency", innovatively puts
forward the cyclic development model of "green design - green
manufacturing - green recycling", and vigorously invests in green,
energy-saving and emission reduction technological reform projects
to contribute to the sustainable development of the industry and
the world.
Deepening the Implementation of 24
Environmental Management
Promoting Green Development 25
Throughout the Life Cycle
Actively Implementing Green Actions 37
SDGs benchmarking
Deepening the Implementation of Moreover, the Company has clarified the environmental protection responsibilities of administrative
leaders at all levels and various functional departments, and implemented environmental objectives
Environmental Management and management measures by the persons and departments in charge, to comprehensively
supervise, manage, inspect, and resolve the Company's environmental protection issues.
The Company conscientiously implements the national environmental protection guidelines, policies Environmental protection responsibilities (partial)
and laws and regulations. Based on the requirements of national environmental protection laws and
regulations, and considering the actual environmental situation of the Company, it has developed
the "Measures for Administration of Environmental Protection", which clarifies the division of
environmental responsibilities among different units, comprehensively implements the environmental
protection responsibility system, and prevents environmental pollution incidents. Additionally, in Vice President
response to changes and requirements in national policies, the Company timely enhances the Chairman of the of the Company
Company (manufacturing)
environmental management standards and strictly enforces the latest environmental protection
requirements to continuously deepen the implementation of environmental management.
The Chairman is the primary Carry out the national guidelines, policies, laws and regulations
Environmental Management System responsible person for the
Company's environmental
on environmental protection, take direct responsibility for the
organization and management of the Company's environmental
protection work, taking overall protection work, and be responsible for the Company's
The Company adheres to the scientific development concept of "comprehensive, coordinated, and responsibility for it. environmental accidents.
sustainable development", and has formulated various environmental management methods including
Establish and improve the Improve the Company's environmental protection management
the "Measures for Administration of Corporate Environmental Protection Responsibility System",
environmental protection organization, enrich the full-time environmental professional
"Measures for Administration of 'Three Simultaneities' for Construction Projects", and "Hazard responsibility system, organize management personnel, and supervise them to carry out
Source and Environmental Factor Management Method". Each year, it signs an "EHS Responsibility the formulation of environmental environmental protection management.
Agreement" with various units to reinforce environmental responsibilities and ensure the effective protection regulations, and
emergency rescue plans for major Approve the project funds for environmental protection measures
operation of the environmental protection system. The Company has obtained the ISO14001
environmental accidents, and and environmental emergency rescue funds, and ensure that the
Environmental Management System Certificate. funds for environmental protection and environmental emergency
ensure the necessary investment
in environmental protection funds. rescue funds are earmarked for specific purposes.
Environmental Protection Management Structure of Gree
Set up the Company's Organize the development, revision and review of the Company's
environmental protection internal environmental protection management rules and
Chairman of the regulations, and organize the implementation.
management institutions, equip
Company
environmental management Conscientiously implement environmental protection
personnel, and approve administrative licensing and "three simultaneities" system for new
the planning and plans for construction, alteration and expansion projects.
Vice President of the environmental protection work.
Company (manufacturing) Regularly organize inspections and supervise the implementation
The Chairman is responsible of environmental work in the departments under his/her charge.
for coordinating the Company's
environmental pollution prevention Organize the investigation and handling of environmental
Head of Each Department Head of Each Sub-factory Head of Each Subsidiary and control work. accidents.
Environmental Emergency Protection Promoting Green Development Throughout
The Company has formulated the "Emergency Response Plan for Environmental
Emergencies" in accordance with relevant national laws and regulations, and regularly the Life Cycle
organizes emergency response drills for environmental emergencies, such as fire
and explosion, chemical leakage, excessive discharge of wastewater, excessive Adhering to the concept of "For the Clearer Sky and Greener Earth", Gree is committed to the green management
discharge of waste gas and leakage of hazardous waste, to enhance the Company's of the whole life cycle of the environment, covering the utilization of resources, green processes, green products,
environmental protection emergency response capability and to ensure that green factories, waste management and emission management. The Company actively promotes green production,
environmental emergencies are properly handled and dealt with in a proper manner. continuously optimizes resource utilization and process flow, and is committed to creating environmentally friendly
green products, building green factories and implementing strict waste treatment and emissions management to ensure
that the entire production process complies with environmental protection standards and contributes to sustainable
Gree actively carried out environmental
Case development and environmental protection.
emergency drills
In 2023, according to the environmental protection emergency drill plan,
the Company and its subsidiaries has carried out emergency drills themed Resource Utilization
on "fire and explosion", "excessive discharge of waste gas", "excessive
discharge of wastewater", "chemical leakage", "leakage of hazardous Gree highly focuses on energy and resource conservation, and is committed to promoting scientific and technological
waste", etc. Through the activities of emergency drills and exercises, innovation and green energy-saving technology. Through the establishment and operation of the resource and energy
the Company continuously strengthens the employees' awareness of management system, vigorously promoting the improvement of energy-saving and water-saving technology, and
environmental safety risk prevention and control and their ability to deal continuously carrying out green energy-saving product design and R&D, Gree has created a low-carbon and energy-
with them, improves the Company's overall environmental safety risk saving enterprise with sustainable development.
management level, and safeguards the environment and safety of its
employees and local communities.
In 2023, various units of the Company's headquarters conducted a total of
Special emergency drill for excessive wastewater discharge incident at Gree
Energy management
The Company actively implements the national dual-carbon strategy, formulates
the "Measures for Administration of Energy Resource Conservation" and other
Case Gree actively utilizing clean energy with continuous construction of PV projects
systems in accordance with relevant laws and regulations, and builds a perfect
and sound energy management system with reference to the ISO50001:2018
In 2023, the Company built a new 6.8MWp distributed PV power generation project at Zhuhai Gree Lvkong Technology Co., Ltd.,
energy management system standard to vigorously promote the Company's
with an annual power generation capacity of about 6.8 million kWh, and an annual emission reduction of 3,878 tons of carbon
process of energy conservation, consumption reduction and green
dioxide.
development. As of the end of 2023, the Company has obtained the ISO50001
Energy Management System Certificate.
The Company practices the energy management concept of "a drop of water,
a piece of paper". In order to reduce the consumption of fossil fuels and carbon
dioxide emissions, it carries out a two-pronged carbon reduction program,
vigorously develops PV power generation projects, and actively promotes
energy-saving technological reforms to achieve the goal of comprehensive
reduction of energy consumption. In 2023, the Company's overall energy
consumption of CNY10,000 output value decreased by 3.32% compared with
that of 2022.
Improve the efficiency of energy utilization. In 2023, the Company carried out
electricity and 836,000 cubic meters of natural gas, and reducing carbon dioxide Distributed PV power generation project at Zhuhai Gree Lvkong Technology Co., Ltd.
(equivalent) by 45,042 tons.
Increase the proportion of clean energy. In 2023, the Company utilized 572
million kWh of nuclear power and 28.06 million kWh of PV power generation, Energy use of Gree
reducing carbon dioxide emissions by 16,003 tons, an increase of 9.8%
compared with 2022. Combined with Gree's self-developed titanate energy Index Unit 2023
storage cabinets for peak cut, 160MWh of energy storage was put in, with a
Total energy consumption Tons of standard coal 256,892
cumulative peak shifting of 72 million kWh of electricity.
Natural gas 10,000m3 3,341
Liquefied petroleum gas Ton 7,012
The Company has continued to build PV power generation Purchased electricity 10,000 kilowatt-hour 160,278.47
projects over the years. As of the end of 2023, the
installed capacity of the Company's PV projects has Index Unit 2021 2022 2023
reached 54MW, and the capacity of PV projects under PV power 10,000 kilowatt-hour 2,360 2,555 2,806
construction is 60MW.
Clean energy generation
consumption Nuclear power 10,000 kilowatt-hour 0 0 57,212.7
consumption
Water resource management
Gree strictly abides by the requirements of national and local
laws and regulations, actively carries out water conservation Case Sponge City Initiative: New Base
measures, minimizes water intensity, and effectively reduces
water consumption through water recycling.
In March 2023, the new base construction of Gree was designed according to the urban sponge engineering design specifications,
fully utilizing the geographical advantage of abundant rainfall in the project area. The overall landscaping of the plant incorporates the
rainwater storage function, enhancing the factory's resilience to environmental changes and natural rain disasters, while also promoting
the recycling of water resources.
Water-saving enterprise certification
Sponge City Initiative: New Base
Water resource consumption of Gree in 2021-2023
Purchased municipal water (Unit:m3)
Case Three-tier water recycling
In August 2023, the sheet metal spraying sub-factory constructed a concentrated water recycling system in the spraying workshop,
which achieves 0 discharge of concentrated water and 100% water recycling in the spraying workshop through multi-layer recycling of
of assuming social responsibility and realizing the sustainable development of water resources.
Case
Improving energy efficiency in the air
Case
Improving energy efficiency in the Green Technology
conditioning machine room of Zhuhai air compression station of Zhuhai
The Company actively practices green economy and promotes
headquarters headquarters
resource conservation. In the air conditioning production process,
During the reporting period, Gree implemented a Gree independently developed a constant pressure control it adopts green and environmentally friendly processes to replace
comprehensive energy efficiency improvement solution system for the air compression station, which uses an traditional production methods. For instance, it changed the heating
for the air conditioning machine room at its Zhuhai automatic adjustment and operation mode to achieve method for pipeline welding from traditional fossil fuel combustion
headquarters. This included seven technical improvement constant pressure control, energy savings, and reduced to green energy heating and ultrasonic vibration welding, reducing
measures such as equipment replacement and optimization consumption. It also introduced high-efficiency energy- the use of fossil fuels and lowering carbon dioxide emissions.
of layout design, resulting in overall energy savings. Through saving equipment to significantly improve the energy The new processes also contribute to improving product quality,
these improvements, the energy efficiency of the machine efficiency of the air compression station and reduce enhancing the production workshop environment, and maintaining
room increased from 3.5 to over 5.0, saving approximately electricity consumption. This technical improvement project a leading position in the industry.
dioxide emissions by about 895 tons. reducing carbon dioxide emissions by about 3,860 tons. The ultrasonic sealing
Case
technology for air conditioners
In January 2023, the Company changed the sealing process
of process tubes in the air conditioning production process
from the traditional flame brazing process to the ultrasonic
sealing process, and changed fossil fuels to environmentally
friendly green electricity, reducing the use of liquefied
petroleum gas (LPG) and natural gas, and decreasing
carbon dioxide emissions.
During the reporting period, the Zhuhai and Wuhu bases of
the Company collectively reduced carbon dioxide emissions
by approximately 400 tons and reduced copper pipe
materials by about 363.18 tons.
Improving energy efficiency in the air conditioning machine room of Improving energy efficiency in the air compression station of Zhuhai Ultrasonic sealing green technology of Gree
Zhuhai headquarters headquarters
Case Creating a smart factory with RFID information technology Case Development of efficient energy-saving technology
In April 2023, as the core backbone platform of the production management of the assembly The Company has developed bidirectional control frequency technology for power feeding
sub-factory, the RFID information system of the assembly sub-factory, through the use of RFID load and frequency converter based on the simulation test of large power frequency converter
technology, configures the corresponding hardware in the key positions of the production line, temperature adjustment. Compared with the traditional motor towing + resistance load mode,
and effectively integrates with enterprise's MES and BOM systems to provide various information this technology has changed the pure energy-based power consumption.
services for assembly production, eliminate the manual data scanning and collection operation,
and realize the automation, digitization, and informatization of the smart factory, enabling
Real-time bi-directional frequency control, full-
comprehensive product lifecycle control. load operation at the optimal operating point,
with feedback efficiency of up to 92%
Master Control
Center
Online Test
System
Power grid
High power frequency converter Energy-fed load
Running
Test
High-efficiency and energy-saving bidirectional frequency control technology of Gree
Reader Writes Data
RF Scanning Equipment
Currently, this technology is being used normally at the Company's
headquarters in Zhuhai, saving 315,560KW·H of electricity annually,
Electronic Label
equivalent to reducing carbon emissions by 179.96 tons per year.
Process Board
First Filling Secondary Filling
RFID information system
The assembly sub-factory achieved paperless management in the production The "High-efficiency PM synchronous frequency Various technologies including permanent
process, saving a significant amount of paper and ink consumables, with the entire conversion centrifugal ice storage dual-mode magnet-assisted reluctance motors technology,
group saving approximately CNY 3 million in consumables annually. unit" has been selected for inclusion in the
National Catalog of Advanced Green and Low-
air conditioning AI energy-saving technology, and
high-efficiency evaporative cooling chillers were
carbon Technology Achievement selected for the 2023 Energy-saving Technology
and Equipment Catalogue of Guangdong Province
Green Product
As a globally renowned air conditioning brand, Gree undertakes
the responsibility of addressing high energy consumption and As of the end of 2023, the company has conducted carbon footprint certification for multiple products
Carbon Footprint Certification
high emissions in air conditioning. The Company continues to and obtained carbon footprint certificates.
develop high-efficiency and energy-saving products through
research and development to reduce fossil fuel emissions and
achieve resource conservation and environmental protection.
Gree Electric Appliances vigorously develops green energy-
related technologies and products. As of the end of January
to provide technical support for promoting comprehensive
development of the green economy and achieving the "dual-
carbon" goal.
Moreover, to further accelerate the achievement of the "dual- Examples of certificates
carbon" goal, Gree made a long-term depth layout of new
energy industry, and added new business areas such as
lithium-ion batteries, new energy commercial vehicles, and Research and application of key technology for low-carbon dynamic operation of inverter air
Case
special vehicles, thus establishing an integrated new energy conditioner
industry chain. The combination of core technologies such as
Gree Titanium's batteries and Gree's multi-dimensional low- In response to the lack of a method for evaluating the dynamic operating efficiency
carbon technologies such as "zero carbon source" of Gree of air conditioners and the uneven actual energy-saving effects, Gree has
subsidiaries helps to increase the speed of green transformation developed the "Key Technology for Low-Carbon Dynamic Operation of Inverter
in production and lifestyle, fully leveraging overall resource Air Conditioner". This includes the invention of a dynamic efficiency optimization
advantages. control technology of air conditioners based on AI algorithms, achieving optimal
dynamic operation of air conditioners; the invention of a room load adaptive
Gree-Cosmos won the "Green Low
technology based on neural network self-learning, realizing rapid temperature
Carbon Award" in the Grand Final of the
control for comfort and energy saving; and the development of an AI chip
highly applicable to dynamic energy saving of air conditioners, establishing a
Development Competition
dynamic energy-saving hardware platform to meet the computational needs of
air conditioners. According to third-party testing, air conditioners equipped with
'Key Technology for Low-Carbon Dynamic Operation of Variable Frequency Air
Conditioners' have achieved a dynamic energy efficiency improvement of over High-efficiency and low-carbon
Central air conditioning assisting Shenzhen Metro Line 12 in energy saving and emission Efficient heat pump technology
Case Case
reduction based on floor heat storage
Shenzhen Metro Line 12 adopted Gree's all-working-condition high-efficiency The existing heat pump floor heating systems in the market
frequency conversion equipment. Through BIM technology, deepened design exhibit significant thermal inertia, leading to the heat pumps'
was conducted for equipment selection, equipment room layout, system inability to respond timely to changes in building heat load,
pipelines, and energy-saving control, achieving prefabrication of pipeline resulting in mismatches between supply and demand of floor
factories and on-site assembly construction at installation sites, reducing heating and significant energy wastage. Additionally, there are
pipeline resistance, achieving zero material consumption, and zero loss. industry challenges such as low actual operating efficiency of air-
According to the data, the average comprehensive refrigeration efficiency of source heat pumps and significant efficiency degradation during
the refrigeration room is above 5.0 per year, and the average comprehensive frosting periods. Gree has optimized the operation time and
refrigeration efficiency of the air conditioning system is above 3.0 per year. It is heating capacity of the heat pump units based on the thermal
estimated that it can save 17.36 million kWh of electricity for Shenzhen Metro storage capacity of building floors and future outdoor conditions,
Line 12 per year, reducing carbon emissions by 13,636 tons. planning both system energy and efficiency simultaneously,
achieving an overall optimization of energy supply-demand
match and efficiency. Tested by national authoritative
institutions, the new generation of heat pump floor heating
Reducing carbon emissions by 13,636 tons Air conditioning unit in Shenzhen Metro
units equipped with this technology have significantly reduced
energy consumption during continuous 24-hour operation,
saving more than 32% electricity compared to traditional floor
heating; indoor temperature fluctuations are reduced by more
than 40% compared to traditional floor heating; under severe
frosting conditions, the operating efficiency is improved by 12%
Case Saudi PV energy-storage air conditioning application project compared to traditional heat pump units. The project results
have reached an "internationally leading" level.
With abundant sunlight and high demand for air conditioners,
Gree's "Zero Carbon Source" PV energy-storage air
conditioning system can fully utilize sunlight resources to meet
cooling needs. At the Saudi Marsha factory, over 100 PV multi-
unit systems were installed, with a PV installed capacity of 850
kWp. The system integrates clean PV power generation, safe
energy storage regulation, efficient air conditioning electricity Local energy-saving
computation based on
Cloud energy-saving
management based on
usage, and intelligent system power management, achieving
real-time data historical data
AI chip Cloud server
integrated complementary functions and multi-dimensional Cloud server Data acquisition Policy update
Heat pump unit
Data packet
Base station
energy saving and emission reduction. Data feedback
Meteorological
data
Local Cloud
Policy upgrade package Policy optimization
Saudi model project Efficient heat pump technology based on floor heat storage
Green Factory
Gree actively engages in green initiatives related to environmental
protection, energy conservation, low carbon, and emission reduction,
leading in the field of green development. Starting from the Company's
environmental actions, Gree adheres to a strategy of balancing
environmental protection with production, continuously optimizes clean
production, selects green raw materials, enhances product energy
efficiency, uses green packaging, and optimizes production processes,
to establish a green supply chain management system.
All subsidiaries of the Company actively pursue green factory
certifications. As of the end of 2023, the Company has obtained a
total of 16 green factory certifications, including 9 national-level green
factory certifications, 4 provincial-level green factory certifications and 3
municipal-level green factory certifications.
List of green factories of Gree
Company Name Award Level Award Date Company Name Award Level Award Date
As of the end of 2023, the Company has National Level 2023 Provincial Level 2020
Gree (Luoyang) Electric Gree (Wuhu) Electric Appliances
Appliances Co., Ltd. Co., Ltd.
Provincial Level 2023 Municipal Level 2019
obtained a total of
Gree TOSOT (Suqian) Home Shijiazhuang Green Resources
Provincial Level 2023 National Level 2019
certifications, including 9 national-level green
Appliances Co., Ltd. Recycling Co., Ltd.
Gree (Nanjing) Electric Gree Changsha HVAC Equipment
Provincial Level 2023 National Level 2018
Appliances Co., Ltd. Co., Ltd.
factory certifications, 4 provincial-level green Gree (Chongqing) Electric Zhuhai Kaibang Motor
National Level 2021
National Level 2022 Manufacture Co., Ltd.
Appliances Co., Ltd.
factory certifications and 3 municipal-level Gree (Hangzhou) Electric Gree (Zhengzhou) Electric
Municipal Level 2022 National Level 2019
Appliances Co., Ltd. Appliances Co., Ltd.
green factory certifications Zhuhai Landa Compressor Co., National Level 2022
National Level 2020 Gree (Shijiazhuang) Electric
Ltd.
Appliances Co., Ltd.
Tianjin Green Resources Provincial Level 2020
Municipal Level 2020
Recycling Co., Ltd
Gree Altairnano New Energy Inc. National Level 2019
Waste Recycling Electronic waste recycling achievements of Gree
Total amount of electronic waste recycled* Disposal of waste electrical and electronic
In electronic waste management, Gree actively responds to national calls, implements (Unit:Kg) products(Unit:10,000 units/sets)
responsibilities for recycling old appliances, integrates social recycling resources for reuse, and
contributes to green and low-carbon development. The Company has independently proposed a
circular development model of "green design—green manufacturing—green recycling" to ensure 2021 4,903.32 2021 649
the entire industry chain is green and efficient. Since 2010, Gree has established six recycling
resource bases in Changsha, Zhengzhou, Shijiazhuang, Wuhu, Tianjin, and Zhuhai, mainly 2022 2,744.42 2022 670
engaged in the recycling and processing of waste electronic products, scrap cars, waste printed
circuit boards, and deep processing of waste plastics. 2023 8,226.06 2023 995
Electronic waste recycling management of Gree
Conversion of recycled copper, iron, aluminum, and plastics (Unit:10,000 tons)
Type of All products and brands are eligible for collection and recycling
recycled
product (including those not manufactured by the company) 2021 8.93
Recycling Changsha, Zhengzhou, Shijiazhuang, Wuhu, Tianjin and Zhuhai,
location all of which are the Company's main operating locations 2023 15.34
Consumers can make an appointment through the website, submit the Note*: The amount of electronic waste recycled is the electronic waste generated by the Company itself.
Consumer
relevant information to obtain the price of recycling, and the staff will
recycling
cost provide door-to-door service
As of the end of 2023, Green Renewable Resources Recycling Co., Ltd. had cumulatively
Recycling Set up recycling points, mail recycling, door-to-door recycling,
method and large-scale sorting and recycling centers processed over 56.64 million units/sets of various waste electrical and electronic
products, saving an estimated 2.402 billion kilowatt-hours of energy, 3.8219
Recycling
Most of the Company's recycling is done by its own facilities, and the million cubic meters of water, reducing carbon dioxide emissions by 876,100
facilities/ rest of the waste is recycled by designated suppliers, on which the
suppliers Company carries out regular reviews and validations to ensure their tons (446 million cubic meters), and effectively avoiding environmental harm caused by
effectiveness, with the supplier review rate reaching 100%. discarded appliances.
In recent years, Gree has continuously carried out company-level greenhouse gas emission inventories
Case Cash for Old Appliances Program by Gree Electric Appliances and implemented carbon reduction measures, including actively developing PV power generation,
continuously investing in energy-saving technological renovations, and deepening the cyclic treatment of
regenerated resources, effectively reducing the total carbon emissions of the Company.
Gree has established a long-lasting green recycling mechanism,
creating the reverse logistics recycling platform for used household Greenhouse gas emissions of Gree in 2021-2023
appliances named 'Mingzhu Green Loop Recycling.' Utilizing an
'Internet + Recycling' approach, the platform offers consumers Index Unit 2021 2022 2023
professional and convenient services for appliance trade-ins and
recycling. Bookings can be easily made with one-click through Direct (scope 1) greenhouse gas
Ton of CO2 equivalent 836,414 709,422 726,654
the WeChat Mini Program, where users can submit relevant emission
information to receive a recycling quote, followed by doorstep
Indirect (scope 2) greenhouse gas
service from staff. Through vigorous online and offline promotion, Ton of CO2 equivalent 830,758 740,658 587,784
emission
the platform has enhanced the accessibility of appliance recycling
for consumers, significantly advancing the management and Ton of CO2 equivalent/
Emission intensity 0.088741 0.076729 0.064113
recycling process of electronic waste, and notably driving the CNY10,000 revenue
development of electronic waste management in the home
appliance industry.
Gree waste household appliances
recycling platform Carbon reduction approach and corresponding carbon reduction amount of Gree in
Emission Management Energy saving and carbon
Unit
Carbon reduction
Total amount
reduction method
(2021-2023)
Gree strictly complies with environmental protection laws and regulations and adheres to the ISO
PV 13,459 14,571 16,003 44,033
management of emissions and waste pollutants, and conducted systematic environmental protection equivalent
management to ensure that all pollutant emissions from the Company meet environmental protection
Ton of CO2
standards. Nuclear power - - 326,284 326,284
equivalent
Greenhouse gas emissions Green technology (energy-saving Ton of CO2
technical transformation) equivalent
Gree actively responds to the national "dual carbon" strategy. As a leader in domestic "PV energy-
storage" and "zero carbon source" air-conditioning technologies, with the vision of "For the Clearer Sky Resource recycling (electronic
Ton 100,971 93,997 179,502 374,470
and Greener Earth", Gree consistently practices the development philosophy that "lucid waters and lush waste treatment)
mountains are invaluable assets", and is committed to promoting clean and low-carbon energy use in
production and operations, creating a healthy and green life for consumers and society. Gree vigorously Note: 1. The carbon dioxide emissions factor of power is the 2022 annual national grid average carbon emission factor
promotes the Company's green development from the multiple aspects, actively addressing climate of 0.5703 tCO2 / MWh released by MEE (Ministry of Ecology and Environment). 2. The data accounting scope includes
change. the Company headquarters and all its branches and subsidiaries.
The 28th United Nations Climate Change Conference Held | Dong Mingzhu narrated Gree's
Waste gas emission
Case
zero-carbon story The main air pollutants from Gree include particulate matter,
From November 30 to December 12, 2023, the nitrogen oxides, sulfur dioxide, VOCs, etc. The Company manages
Nations Framework Convention on Climate control, and final treatment, and configures facilities including paint
Change" was officially held in Dubai, UAE. During spraying waste gas treatment system, condenser/evaporator drying
the Conference, the Chinese delegation held waste gas treatment system, and spraying waste gas treatment
the "China Corner" series of events in Expo City, system, to ensure that the waste gas emissions meet standards.
Dubai. Dong Mingzhu, Chairman and President The Company strictly follows the requirements of the pollutant
of Gree, attended the meeting as a representative discharge permit, develops testing plans, and entrusts professional
of enterprises from Guangdong on December third parties to monitor these pollutants, with all results complying
the achievements of China's manufacturing
industry in green and low-carbon development
Gree upgraded and transformed
and sharing Gree's zero-carbon story in China's Case
the waste gas treatment equipment
response to climate change.
Gree continuously updates its environmental control
equipment and adopts efficient management technologies
such as regenerative combustion and catalytic combustion
for standard enhancement modifications. For example,
regenerative combustion technology is used to manage the
condenser/evaporator drying waste gas, further enhancing
management efficiency and reducing emissions of pollutants.
Case Gree implemented a green logistics system
While vigorously promoting the development of green products, Gree
places great emphasis on energy-saving and carbon reduction during
transportation, creates a green logistics system and comprehensively
initiates the electrification upgrade of vehicles. By the end of the
reporting period, there were 881 electric forklifts and 272 diesel forklifts,
totaling 1,153 units, with electric forklifts accounting for 76.4%, as well as
buses accounting for 93.4%.
Waste gas treatment equipment
Wastewater discharge Solid waste
The main pollutants in the Company's production wastewater include The solid waste at Gree is mainly categorized into general industrial solid waste, hazardous waste, and household garbage. The
chemical oxygen demand, ammonia nitrogen, and total nitrogen. Company has formulated relevant management methods in accordance with national laws and regulations, carried out targeted
The Company has a dedicated wastewater treatment station to treatment methods according to different types of waste, disposed of waste legally and in compliance with regulations, and
process production wastewater, which is discharged after meeting maximized the recycling rate of waste. Additionally, the Company actively researched and promoted the reduction, harmlessness
the standards. Gree entrusts qualified third-party units to monitor and resourcefulness of hazardous wastes, and carried out projects such as sludge reduction, container reuse and centralized oil
the wastewater pollutants, and all monitoring results comply with the supply to reduce the generation of hazardous waste from the source.
emission standards. Additionally, the Company actively improves
spray production processes by upgrading from phosphating to
ceramic processes, thus eliminating the generation of phosphates
from the source.
Waste types and treatment methods of Gree Gree reduced solid wastes from the
Case
source
Gree actively carrying out solid waste Hazardous waste
Case In order to reduce the overall generation of solid waste, the
reduction work
Company improved the precision of the molds used in the
Gree is proactive in reducing solid waste, such as the sludge Collect, store and transport in accordance with production of injection molded parts at the design stage,
reduction project at the wastewater station, which uses national laws and regulations, and entrust units so that the surface burrs of the final molded parts can be
efficient heat pump technology for low-temperature drying qualified in hazardous waste treatment to carry reduced, thus reducing the solid waste generated from
equipment. This has reduced the moisture content of the out legal disposal disposal.
sludge from 70% before drying to 12% after drying, effectively
reducing the amount of waste sludge disposed of.
General waste
After sorting in the plant, it is handed over to
resource recycling manufacturers for recycling
and disposal
Domestic waste
Transfer to designated sanitation recycling points
for disposal by the sanitation department
Injection molding parts after upgrading
Wastewater treatment equipment
Actively Implementing Green Actions Environmental Protection Training
To further promote the Company's green and sustainable development, Gree has progressively The Company actively carries out environmental protection training, empowers employees with
advanced green financial projects on the foundation of whole lifecycle green management. This the concept of green development, and enhances their knowledge of environmental protection and
approach aims to secure more funding to support sustainable development projects focused on risk resistance. The Company provides basic environmental protection knowledge training for new
environmental protection and energy conservation, continuously driving the Company towards a employees upon their entry; while for current employees, the Company adopts a multi-tiered training
transformation in green and sustainable development. Meanwhile, for many years, the Company model, which first provides special training for the person in charge of environmental protection of
has actively conducted environmental training, to enhance employees' awareness and professional each subsidiary or factory, who then train the employees of their respective subsidiaries or factory
capabilities through diverse environmental cultural education and construction, create a green areas. The training content primarily focuses on environmental laws and regulations as well as typical
corporate atmosphere, and achieve a virtuous cycle between economic growth and ecological societal cases.
balance.
Green Finance
To advance the development of the green economy, during the reporting period, Gree issued its first
tranche of green ultra-short-term financing bonds. These green bonds, amounting to CNY900 million,
were allocated 100% to the manufacture of energy-efficient air conditioners with top-level energy
efficiency.
First tranche of green ultra-short-term financing bonds of Gree in 2023
Bond amount CNY900 million Issuance date March 27, 2023
Project operation The project has now been completed and officially put into operation,
and a total of 6 lines, 3 domestically and 3 internationally, have been
Gree carried out diversified environmental protection training
constructed according to the project plan.
Environmental
protection measures All environmental facilities involved in the project are fully equipped and
of the project functioning properly.
Use of funds raised The amount issued for this period's ultra-short-term financing bonds During the reporting period, the Company conducted 79 environmental protection
trainings for different employee groups, covering 4,786 employees.
is CNY900 million. As of October 2023, it has been fully utilized in the
production of high-efficiency and energy-saving household appliances,
specifically for energy-efficient air conditioners.
Intelligent Manufacturing
and Persistent
Technological Innovation
Gree consistently upholds the philosophy that "innovation is the
primary productive force", and is committed to independently nurturing
talent, deeply cultivating core technologies, and steadfastly pursuing a
path of independent innovative development. In fields such as product
innovation, consumer upgrading, and intelligent manufacturing, the
Company continually contributes value to consumers, society, and the
nation.
Improving the Innovative R&D System 39
Leading the Path to Digital and Intelligent 43
Transformation
Creating A Better Life with Technology 44
SDGs benchmarking
Improving the Innovative R&D System
Gree believes that outstanding product innovation is driven by a robust R&D system. By creating a self-transcendent innovation culture,
Maglev direct-expansion intelligent
building a high-level and highly integrated R&D platform, and implementing innovation incentives and IP protection, the Company is able to Case
ventilation air conditioning system for
continuously lead and compete at the product and technological level, and maintain sustainable competitiveness.
subway stations
All air conditioning environmental control systems in Luoyang
R&D Concept and Achievements subway adopt Gree's independently developed maglev direct-
expansion intelligent ventilation air conditioning system. The
large and small systems feature independent cooling sources
Gree insists on "independent R&D of core technologies" and adheres to the principle of "investing on demand without setting a ceiling". and single-sided air delivery for each unit. Taking the Citizen's
The Company has established a multi-level and high-standard R&D platform system based on national-level scientific research platforms, Home Station as an example, during the cooling season (July 25
and formed a technology innovation system that is enterprise-led, market-oriented, and integrates industry, academy and research. The - September 20), the total refrigeration capacity of the system is
innovation chain drives the value chain, and the value chain supports the innovation chain. 143,550 kWh, the total power consumption is 23,800 kWh, the
energy efficiency of cooling station in the machine room is 7.25,
As of the end of the reporting period, Gree has developed 16 research institutes, 152 research institutions, 1,411 laboratories, and one and the efficiency of the environmental control system reaches
academician workstation (motor and control) around the new energy environment, intelligent equipment, refrigeration, freezing, washing 6.03. This project is the first in the country where the installed
and other technologies, and owns a national key laboratory, a national engineering technology research center, a national industrial design cooling station capacity is less than 500RT, and the energy
center, and a nationally recognized enterprise technology center. Furthermore, the Company has become a research and comment efficiency ratio of the cooling machine room exceeds 7.0. The
base for refrigeration equipment of the National Notification & Enquiry Center and a national standard verification point (energy saving of project outcomes have reached an "internationally leading" level.
refrigeration equipment).
The Company possesses 44 "internationally leading" technologies,
and has cumulatively won 2 National Science and Technology Progress
Awards, 2 National Technological Invention Awards, 3 China Patent
Gold Awards, 3 China Appearance Design Gold Awards, 14 Geneva
Invention Exhibition Gold Awards, and 10 Nuremberg Invention
Exhibition Gold Awards.
Gree maglev direct-expansion intelligent ventilation air conditioning
system for subway stations
Case 120°C+ industrial large-capacity high-efficiency and high- Case COP7.0+ Dual-stage PM inverter screw chiller
temperature centrifugal heat pump
Heat pump is the best way to convert electricity into heat efficiently, and it also meets the The Company broke through the technical bottleneck of the chiller in the small and medium cooling
needs of the development of end-use energy electrification. The Company has independently capacity segment, and pioneered a dual-stage PM inverter water-cooled screw chiller with an energy
developed three major innovative technologies: a 120°C+ high-speed direct-drive high- efficiency level exceeding 7.0. This was the first unit that applies the dual-stage screw compressor
temperature and heat-pump centrifugal compressor, a 60K+ temperature rise dual-compressor technology to the water-cooled chiller. It features interstage air supplementation to enhance system
series connection, and a multi-stage compression air-supplementing efficient industrial heat energy efficiency and is equipped with a new high-efficiency rotor profile with small pressure ratio,
pump unit. It has also developed a low-carbon refrigerant R1233zd(E) based 120°C+ industrial isomeric tooth and constant volume and a position-free identification and accurate adaptive control
large capacity high-efficiency and high-temperature centrifugal heat pump, characterized by system of two-stage pressure ratio to significantly enhance full-operational efficiency. The unit, with
high temperature, high efficiency, low carbon emission, large capacity, and high temperature a single compressor head of 180RT, achieves a nominal cooling performance coefficient (COP)
rise. Compared to traditional industrial boilers, it significantly enhances energy conservation of 7.22, an integrated part-load performance coefficient (IPLV) of 10.1 according to GB standards,
and carbon reduction, meeting the demands in food, pharmaceuticals, distillation, dyeing, and and IPLV of 12.01 according to ARI standards, surpassing the national Level 1 energy efficiency
other industries, supporting low-carbon energy development. This heat pump unit was tested standard by 34.7%, the highest level in the industry for maglev system by 14.5%, and the highest
by the third party, with a heating capacity of 9114 kW at a 60K temperature rise and a 120°C level in the industry for inverter screw system by 11.6%. The energy-saving effects are significant,
condensing temperature, achieving a heating COP of 4.36 W/W. At a 65K temperature rise, the making it widely applicable in various fields such as public buildings, rail transportation, and energy
condensing temperature can reach up to 130°C, with a maximum capacity of 10 MW, reaching renovation. The project outcomes have reached an "internationally leading" level.
an "internationally leading" level.
Scientific Research Communication
and Cooperatio
Through multi-level and multi-dimensional collaborations with over ten
domestic and international universities and research institutions such
as Tsinghua University, Xi'an Jiaotong University, and the International
Energy Agency, Gree actively explores new mechanisms for integrated
development in directions such as system energy saving and high-
efficiency heat exchange. This continuously enhances the project's
collaborative innovation capacity and accelerates the pace of results
transformation.
Gree clinched two gold awards at the Geneva
Case
Research and application of key
technology for fruit, vegetable and meat
Research Incentive Case
International Exhibition of Inventions
preservation in household refrigerator Mechanism
In May 2023, at one of the top three international invention exhibitions, the
Addressing the challenges of preserving fruits and vegetables,
To fully leverage the enthusiasm and creativity of Geneva International Exhibition of Inventions, Gree successfully won two
Gree started research from improving the average humidity and
the extensive scientific and management personnel, gold awards, one silver award, and one bronze award. As a "permanent
reducing humidity fluctuations, and developed a fruit and vegetable
and to promote continuous breakthroughs in core guest" of the exhibition, the Company has won 14 gold invention awards.
preservation technology based on a self-balancing high-permeability
technological areas, Gree, based on the national
membrane and air-source humidification. This technology effectively One of the gold awards was granted for the continuous heating high-
guidance for scientific and technological awards
solves the technical challenges of consistently establishing and efficiency thermal gas defrosting technology of the air source heat pump,
and considering the actual circumstances of the
maintaining high humidity in complex storage scenarios. The which significantly improved the defrosting efficiency, shortened the
Company, has formulated the "Measures for
measured humidity reaches 95% with stable control. Data shows defrosting time, broke through the traditional bottleneck of indoor heat
Administration of Scientific and Technological
that the measured supercooling degree reaches 4.2°C, significantly absorption during air conditioner defrosting, and achieved simultaneous
Progress Award". Each year, high-level incentives
reducing the juice loss and drying rate of meat. Moreover, the outdoor defrosting and indoor heating, keeping the indoors warm and
are awarded to units and individuals who achieve
Company has developed a super-freezing storage technology for comfortable.
outstanding results in the field of technological
meat based on a wide-frequency fully-enclosed piston compressor,
innovation. During this reporting period, 210 award-
addressing the rapid decay of volumetric efficiency and reliability Another gold award was granted to the high-efficiency ambient
winning projects were selected, covering 48 units
issues under ultra-high frequency conditions of temperature catalytic de-formaldehyde air purifier, equipped with a new
and over 2,300 individuals, including two top
existing refrigerator compressors. The R600a generation of formaldehyde decomposition technology. By building an
awards.
fully-enclosed piston compressor can operate active oxygen catalytic composite de-formaldehyde network, it completely
at a maximum frequency of 120Hz, allowing oxidizes formaldehyde into carbon dioxide and water, with a cumulative
the refrigerator to run stably at -38°C for a long purification volume of up to 10,000mg, and paired with an "ultrafiltration"
term. The project outcomes have reached an
"internationally leading" level.
During this reporting period, 210 composite filter, achieving sustained high-efficiency formaldehyde
removal.
award-winning projects were selected
IP Protection
Gree has formulated an IP strategy aligned with the Company's development vision, After years of practice, Gree has established an IP management system covering the entire product lifecycle,
planning IP work from the height of the Company's business strategy, making full embedding IP management in all stages from material procurement, product R&D, to sales. This ensures the legal
use of IP information resources, and combining creation, application, protection, and monopoly of self-innovated technologies and stringent risk control.
management of IP to promote corporate technology and management innovation. This
has enabled the Company to achieve and maintain a competitive advantage in the Lifecycle IP management system of Gree
market, leading industry technology trends.
The Company always adheres to a quality-first patent application strategy, ensuring Business
Pre-research Design Procurement Production Sales After-sales
activities
patent quality through pre-application patent search quality checks, in-application
document quality checks, and post-application review response quality checks. This
strict quality control ensures the market value of the company's patents. IP Infringement of Improper use
Repeated inadequately Material Equipment
management of promotional Quality risks
R&D protected infringement infringement materials
risks product
IP control Project search Patent layout Material Equipment Compliance
As of March 2024, Gree and patent avoidance infringement risk infringement risk Solving quality
measures analysis design verification verification Review problems
has applied for a total of
The Company has established an industry-leading full-process IP management system platform, which integrates
including 64,539 invention patents and 21,148 granted invention a patent value assessment system, enterprise product patent navigation, and patent operation processes, and
effectively interfaces with project management platforms, PDM management platforms, and patent agency
patents.
platforms. This aids in shortening the patent application cycle and enhancing the efficiency of patent work.
The Company has won 77 Chinese Patent Awards, including three gold awards for In addition, Gree places high importance on the construction of a high-quality IP personnel team. The Company
has a dedicated IP department with over 800 IP staff, including more than 80 full-time patent administrators with
inventions and three gold awards for designs. patent agent or legal professional qualifications. The quantity and overall quality of personnel lead among Chinese
enterprises. The Company continually enhances the theoretical knowledge and practical skills of the patent talent
It has ranked among the top
ten in invention grant volume nationwide for eight team through internal training, expert training, external commissioned training, and mock courts, among other
multi-channel and multi-form training mechanisms.
consecutive years, consistently leading the household appliance industry.
Gree is committed to promoting the tangible benefits of IP intangible assets. It conducted IP custodianship
and assistance for upstream enterprises to improve patent quality and reduce infringement risks. For peer
Seven subsidiaries have been selected as national IP demonstration enterprises, and
and downstream enterprises, the Company led industry technology development and enhanced consumer
Intellectual Property Alliance of China Air Conditioning Industry and served as the first chairman unit, standardized
the IP competition environment in the air conditioning industry and promoted patent operations in the industry,
demonstrating the responsibility of an industry leader.
Leading the Path to Digital and Intelligent Transformation
The transformation towards digitalization and intelligence is a crucial direction for enhancing the core competitiveness of the manufacturing industry and an important path towards high-end manufacturing. Since 2016,
Gree has vigorously promoted digital development, continuously improved the level of intelligence, and is committed to realizing the data operation and platform operation of the whole value chain, promoting efficiency
improvement, value creation and improvement of business objectives, and creating a new situation of "industrial Internet enterprise". In 2023, the Company accelerated the digital and intelligent transformation across
various segments including production, management, sales, logistics, and supply chain.
The Company carried out supply chain upgrading and restructuring informatization projects focusing on the five objectives of "centralized procurement",
"efficient supply chain collaboration", "supplier digital management", "smart settlement" and "automated pricing verification", realized supply chain
visualization monitoring and comprehensive performance analysis, integrated the technologies of big data, knowledge mapping and remote management,
In the
procurement and applied them in the hidden danger identification, positioning, early warning and efficient disposal of supply chain risks, so as to accelerate the supply
process chain digitalization transformation of the entire lifecycle.
Gree took "unified production system" as its goal, fully applied new information technologies such as industrial Internet, cloud platform, artificial intelligence,
big data, blockchain and 5G, and promoted the design, development and implementation of digital platforms around the management of core modules such
as planning control, material preparation, equipment energy management, and process quality control, to promote the improvement of production efficiency.
In the During the reporting period, the Company's first high-density "automated, intelligent, and digital" integrated production line was put into operation. This line
production
process integrates technologies like automatic assembly, fastening, welding, sticking, testing, hardware integration, and digital integration, featuring capabilities in
identification, measurement, positioning, and testing. Additionally, the Company independently developed its production line management system, achieving
real-time online management of production orders and quality chains.
Gree's offline sales use a "self-built mainline logistics + branch/intercity third-party outsourcing" model, while online sales leverage e-commerce platform
logistics, fully utilizing social resources to effectively reduce logistics losses and enhance response speed. The Company's independently developed AMR
In the sales
process mobile robots, equipped with a self-developed multi-platform integrated scheduling system, are now widely used in production lines and workshop logistics
across multiple bases, significantly enhancing logistics efficiency.
The Company vigorously builds a single logistics/multi-finance integrated system to promote the integration of business and finance. During the reporting
period, under the single logistics/multi-finance architecture of the air-conditioning industry segment, the ERP system was upgraded. Through process and
In the
management data restructuring, it meets the needs of financial group control, multi-party trade, and automated accounting.
process
Case "Dark Factory" Illuminated "Made in China"
Changsha Gree HVAC Equipment Co., Ltd., a subsidiary of Gree, the second-largest comprehensive
base following the Zhuhai headquarters, was established in 2014 with a focus on high-standard
intelligent manufacturing. It employs a large number of leading international and independently
developed intelligent equipment and has developed corresponding management software. Built
and put into operation in 2016, it was recognized the following year by the Ministry of Industry and
Information Technology as a "Pilot Demonstration Enterprise for Intelligent Manufacturing" and "Pilot
Demonstration Enterprise for Industrial Internet Applications". Today, this base fully integrates industrial
robots, CNC machines, 5G, and other advanced equipment and technologies into its production,
management, and logistics scenarios, setting a benchmark for automation and the latest intelligent
technologies in the national appliance manufacturing industry.
Awards received by the Company in the field of digitization in 2023
A demonstration "digital pilot"
Demonstration Initiative development of new generation
information technology and
manufacturing
Main content
Zhuhai Gree Intelligent Manufacturing
Gree All-field Digital Management and
Co., Ltd. was approved as an intelligent
Control Demonstration Project
manufacturing demonstration factory
department
Competent
National Ministry of Industry and National Ministry of Industry and
Information Information
Creating A Better Life with Technology
Gree has always adhered to user-oriented principles, driven by technological innovation. With a commitment to excellence and outstanding control over details, the Company continuously enriches the depth and
breadth of its product line. It uses technology to create clean, safe, intelligent, and efficient living and working environments. During the reporting period, the Company launched the following high-performance and
high-quality new products:
Household consumer goods sector
Supreme air conditioner High-temperature air conditioner - Silent King+
Newly upgraded cooling and heating distribution technology, Coolness upgrade and comfort upgrade: Equipped with the second-generation Gree cold
significantly improving cooling and heating efficiency external unit, it challenges the 65°C high-temperature refrigeration zone and 360° sports
Equipped with a newly upgraded internationally leading large air deflector, and realizes anti-direct blowing in the whole area and a variety of air
distributed air supply technology, it achieves full upper air supply supply angles
for cooling and full lower air supply for heating. The cold air
Equipped with Gree's dynamic power compressor: It has strong performance, and is capable
does not blow on people, but warm air warms the whole body.
of realizing high-frequency, high-pressure, and efficient operation, fearless against high-
This eliminates direct cold air blowing, hot head and cold feet
temperature challenges, and full of power
situations, and upgrades temperature balancing effects, creating
a zero temperature difference balanced space with a vertical Three-ring heat exchange control technology: Through three major technologies, it upgrades
temperature difference in the human activity area of <0.1°C the air-conditioning air duct system, heat conduction system, and temperature control
system, and achieves efficient heat exchange, fearless of "heat" tests
Whole-house climate ecological management: It integrates air
conditioning, fresh air fan, humidifier, dehumidifier, and purifier
functions into one unit, achieves multidimensional climate
regulation optimization and creates a comfortable living climate
for the whole house
Whole-house IoT ecological management: Serving as the
smart central hub of the home, it can connect with all Gree
smart household appliances, providing real-time monitoring of
appliance operation status
Kinghome "Global Freshness" refrigerator 516L Formaldehyde hunter air purifier Ruxin heat pump washing machine
Freezing and fresh 2.0 technology: Realize no freezing at International leading Hi-fresh formaldehyde decomposition Self-developed heat pump washing and care technology:
-5°C, and maintain freshness for two weeks, easy to cut technology: Continuously decompose formaldehyde Achieve gentle drying at 37°C without damaging clothes
with a single knife harmlessly into water and carbon dioxide, with a
Wash, dry, and wear immediately: Integrate washing,
decomposition rate of 99.9%
Realize rapid freezing, minimize cell damage, and Professional-grade purification: Realize digital display of taking only 1 hour for washing and drying
preserve precious nutrients formaldehyde and PM2.5 concentrations, and accurately
Global super-fine steam washing 2.0: Enjoy free clothing
detect formaldehyde concentration up to 0.001 mg/m3
Photosynthetic water moisturizing freshening technology: care at home, soften fibers, and remove wrinkles and
Reduce nutrient loss such as fruit and vegetable moisture Inhibiting bacteria and viruses: Realize double-sided six- fluffiness
and vitamins, and delay fruit and vegetable spoilage layer purification, whole-house 3D purification, H1N1
flu removal rate ≥99.99%, staphylococcus removal rate
HCP full-time antibacterial and deodorizing technology:
>99.99%, and allergen removal rate ≥99%.
Equipped with visual dynamic sterilization module, the
sterilization rate is up to 99%, and the taste is purified in
Provide a safe, healthy and long-lasting storage
environment for all kinds of fresh ingredients
Industrial equipment sector
PV energy-storage flexible air-conditioning system Deep mine refrigeration equipment
Integrated ecology: Using air conditioning as the Efficient cooling and dehumidification: Solve problems such as poor cooling and
energy and information center, it integrates clean PV dehumidification effects, and high resource consumption, significantly improving the
power generation, safe energy storage and power underground working environment
adjustment, efficient air conditioning power saving,
Enhanced mine safety: Reduce failure rates, improve reliability, enhance mine safety levels, and
and smart IEMS power management, creating a
create a good working environment for mine workers
direct current ecological system of "source, storage,
network, and load".
Low-carbon and efficient: Through on-demand
configuration, it provides high-quality energy,
assisting in achieving the national "dual carbon" goal
Air-source heat pump floor heating system High-speed bridge-type (five-axis) gantry CNC machine tool
Substantial energy consumption reduction: The High rigidity and temperature: The bridge-type
new generation of heat pump floor heating unit gantry structure is made of high-quality cast
saves over 32% energy consumption compared to beam, enjoying high rigidity and stability
traditional floor heating during continuous 24-hour
High speed and high precision: The high-
operation
speed direct drive system adopts closed-loop
Outstanding innovation advantage: Optimize control, with X and Y axes driven by high-thrust
heat supply and demand matching, cloud-edge linear motors, with maximum speed up to 80
collaborative control of heat pump floor heating, m/min; the high-speed and high-rigidity electric
achieve efficient energy saving, and adapt to high- spindle has a maximum speed of 20,000rpm,
quality energy needs achieving high-speed cutting
Gree developed the world's first
Case
mine air conditioner
domestic mines, which severely affect miners' health and
hinder efficient and safe production, Gree leveraged over
Efficient compressor design: It is designed for the thermal
load characteristics of data centers, achieving "small
overcome challenges in local mine cooling equipment such
pressure ratio" high-efficiency aerodynamic design in all
as poor refrigeration and dehumidification, high consumption
operating conditions, ensuring compressor operation in the
of fresh air and water resources, ineffective heat exchange
efficient zone
in stagnant air, and narrow operating range of compressors.
Significant energy-saving advantages: It adopts high- The Company successfully innovated a new set of
power permanent magnet synchronous variable frequency refrigeration equipment suitable for deep mine heat control,
motors, with a maximum efficiency of 98.2%, all-load motor significantly improving the working environment for deep
efficiency of above 95%, and the circulation efficiency of mine workers, reducing labor intensity, and minimizing work
dual-stage compression and air replenishment structure stoppages due to high temperatures and humidity during
improved by 5-6% the summer. The project outcome "Key technology and
application of new refrigeration equipment for heat damage
control in deep mines" has reached an "internationally
leading" level.
Industrial centrifugal heat pump with large capacity and high efficiency
High-efficiency centrifugal compressor: It adopts a large-
power high-speed direct drive rotor structure, eliminates
speed-increasing gears, and reduces mechanical losses by
and noise reduced by 8dB(A)
Comprehensive carbon-neutrality solution for all scenarios:
The water outlet temperature can reach 120-140°C, the
micro-pressure steam can be directly flashed, fully meeting
the heat needs of non-process industries, and the annual
Gree 2024 Global Dream Summit themed "Embrace the Present,
single unit operation can reduce carbon dioxide emissions Shape the Future"
by 15,000 tons
Upholding People-
oriented for A Better Life
Gree has always prioritized talent development, attracting talent with
strong capabilities, nurturing talent through independent innovation,
and providing generous benefits to serve talent. The Company
considers talent development as its most important responsibility,
places high importance on protecting employee rights, and enhances
employees' enthusiasm and sense of belonging. Moreover, the
Company actively fulfills social responsibilities, emphasizes
communication and exchange with multiple stakeholders, encourages
employees to participate in voluntary activities, and engages in public
welfare charity activities such as rural revitalization and community
co-creation, striving to contribute to society.
Safeguarding the Legitimate Rights and Interests 50
of Employees
Empowering Employees' Career Growth 52
Safeguarding the Health and Safety of 57
Employees
Enhancing Diversified Wellbeing of Employees 60
Bravely Assuming Corporate Social Responsibility 63
SDGs benchmarking
Safeguarding the Legitimate Rights and Interests Collective Bargaining
of Employees Gree constantly continues to improve the skills and level of
collective bargaining, strengthens the collective bargaining
Gree strictly adheres to relevant laws and regulations such as the "Labor Law of the People's Republic of China" and the "Labor Contract Law talent team, promotes collective bargaining, and makes positive
of the People's Republic of China", revises and implements regulations such as the "Measures for Administration of Employee Recruitment", contributions to safeguard the legitimate rights and interests
"Measures for Administration of Attendance", "Measures for Administration of Salary", "Measures for Administration of Performance", and of employees, realize win-win situation for both enterprises
"Measures for Administration of Labor Protection of Female and Underage Workers", effectively safeguarding the legitimate rights and and employees, and construct harmonious labor relations. The
interests of employees. Company has been recognized as a model for enterprise labor and
capital communication and negotiation in Guangdong Province in
Equal Employment 2022, and has won the first prize for excellent cases in collective
bargaining. Furthermore, a collective contract was ratified by the
The Company upholds the principles of "open recruitment, fair competition, and merit-based employment", adheres to equal employment and Workers' Congress, with a signing rate of 100%.
equal pay for equal work, and resolutely eliminates child labor and forced labor. It avoids any discrimination based on employees' ethnicity,
gender, age, disability, marital and parental status, respects employees' rights to freedom of assembly and association under the law. In 2023,
Gree did not experience any incidents of employment discrimination, harassment, child labor, or forced labor violating human rights in labor,
with a 100% employee social security coverage rate. A collective contract was ratified by the Workers'
Additionally, the Company ensures that labor contracts are based on principles of equality and voluntariness, and strictly follows legal
Congress, with a signing rate of 100%
regulations and contractual agreements in the execution, renewal, termination, and ending of labor contracts, regulating employment practices
strictly. In 2023, the labor contract signing rate was 100%.
In 2023, Gree did not experience any incidents of employment
discrimination, harassment, child labor, or forced labor
violating human rights in labor, with a 100% employee
social security coverage rate
In 2023, the labor contract signing rate was 100% Gree has been honored as the most influential employer by Gree was listed on the "2022 Typical List of Collective Negotiation in Zhuhai"
Haitou.cc in 2023 and was listed on Forbes' The World's Best and the "2022 Award List of Collective Bargaining Excellent Case in Zhuhai"
Employers 2023
Employee Communication Women's Rights
Gree always adheres to the "people-oriented" The Company strictly enforces the "Law on the Protection
principle, and vigorously promotes labor of Women's Rights and Interests" and "Provisions on
and capital communication and negotiation. the Scope of Prohibited Work for Female Employees".
By establishing a sound labor-management It legally provides maternity check-up leave, maternity
The Company's Loving
communication mechanism, broadening the leave, special breastfeeding time, dedicated bus lines for
Mother Huts was awarded
channels of employees' demands, listening loving mothers, and flexible working benefits, and reduces
the honor of "Loving Mother
to employees' voices through the labor union workloads for breastfeeding female workers.
Hut in Guangdong Province"
and grass-roots branch unions, intelligent
labor unions, democratic life meetings,
employee satisfaction surveys, etc., the
Company promotes mutual understanding
and support between the enterprise and its
employees, and lays a solid foundation for
the stable development of the enterprise.
In 2023, the Company was honored as a Typical Enterprise for Labor and Interactive
"Typical Enterprise for Labor and Capital Capital Communication and Communication Platform
Communication and Negotiation in Guangdong Negotiation in Guangdong Province of Intelligent Trade Union
in 2023
Province".
The Company provides Loving Mother Huts for pregnant and breastfeeding women
Leave System
Employees are entitled to statutory holidays, paid annual leave, personal leave,
compensatory leave, sick leave, injury leave, marriage leave, bereavement leave,
maternity leave (including obstetric leave), incentive leave, family planning surgery
leave, paternity leave, child-care leave, nursing leave, prenatal check-up leave, and
breastfeeding leave. The Company advocates completing tasks within normal working
hours and, considering the characteristics of production and operations, continuously
promotes work-hour management through enhanced shift management and other
measures, safeguarding employees' rights to rest and leave.
The Company held a grassroots democratic life meeting to listen to employees' opinions
Empowering Employees' Career Growth
Gree has always held the belief that "talent is the first resource", recognizing that genuine self-innovation can only be achieved by valuing and
developing talent. This philosophy has been integral to Gree's development, infusing vitality and energy into the enterprise.
Building Employee Career Development Pathways
In the face of macroeconomic uncertainties and complexities, the Company pays close attention to and safeguards employees' interests,
optimizes and adjusts salary schemes to allow all types of talent to excel. For technical management staff, career development pathways
in "professional, managerial, and comprehensive development" are designed, and for frontline staff, a skill level evaluation mechanism is
established.
The Company constructs career development pathways for employees, and continuously improves a performance-oriented salary mechanism
based on job positions. Focusing on improving work efficiency, enhancing team quality, optimizing personnel structure, boosting employee
vitality, and retaining core talent, the Company implements a job-based and performance-oriented salary development system, conducts
professional level evaluations, and develops a reasonable, flexible, and effective compensation system to foster talent development and
growth.
Employee career development pathways
Company executive Expert designer
Middle-level management New Senior designer
employee
Division supervisor Advanced designer
Team leader Vertical development Junior designer
Management direction Specialist Designer Professional direction
Administrative Business Technology Process Production
functions sales R&D quality operations
Horizontal development
Improving the Talent Development System The 2023 annual company-level training plan takes the
four dimensions of strategic landing support, key group
Gree aims to provide a comprehensive growth platform for the Company's employees, establish cultivation, key business development, and cultural literacy By the end of 2023, all
a culture of utilizing talents effectively, and adhere to the concept of independent talent training. enhancement as the framework. It encompasses 59 projects were successfully completed,
Tailored to the Company's strategy, each unit's business development, and talent training needs,
a company-wide learning (four levels) development plan is devised, organized, and implemented.
The annual needs survey begins with organizational strategy, business development, staff skills,
specialized training projects, jointly implemented by the
training center and various units. The training effectiveness
involving 25,000 participants,
is closely monitored, with each project driven by dedicated with an average annual satisfaction rate
and cultural literacy, employing a "dual-track linkage" approach at both company and unit levels. personnel to ensure a PDCA (Plan-Do-Check-Act) closed-
This process involves a top-down review of strategic goals to identify related training needs and of
loop management, enhancing training outcomes. By the
a bottom-up refinement to distill the training needs related to staff business skills. This results end of 2023, all 59 training projects were successfully
in the formation of a complementary four-level training plan: company-wide, departmental, completed, involving 25,000 participants, with an average
office, and individual levels. Each level's plans are subdivided and complementary, focusing on annual satisfaction rate of 98%.
integrating strategy with performance in learning and development goals.
The Company carried out "Great New Forces" 2023 new graduate
Case
onboarding training
Four-level development plan
The 2023 fresh graduate training camp focuses on the core goal of "strengthening corporate
culture imprint, solidifying professional ethics, and successfully transitioning into Gree
Four-level training plan system for all employees professionals". It aims to nurture a team of growing, responsible, efficient, adventurous, and
team-spirited "Great New Forces". Nearly 800 headquarters-based new graduates underwent
specialized, customized, and distinctive training at the "New Forces" camp, preliminarily
Level Training plan Training focus transitioning from campus life to becoming part of Gree, and embarking on the grand journey of
"devoting to the Gree dream, falling in love with Made in China".
Company-level Strategic support Key group Key business Cultural literacy
Strategic level
plan implementation cultivation development enhancement
Department-level Project-based operation of Cultivation of relevant groups
plan key businesses at a deeper level
Business
level Division-level Business Team Management Technique
innovation and development and experience experience
plan
development construction inheritance inheritance
"New Forces" growth path and the training camp's "3-6-1" learning and development model
Performance Individual- Work performance Career development Knowledge and skill
level level plan improvement challenges reserves
Moreover, the Company places particular emphasis on the independent development of skilled talents, helping ordinary workers become
"Voyage Plan" team leader training high-end industrial talents with skills, knowledge, and aspirations. A self-developed skilled talent system is established, creating a "frontline
Case
camp employee—skilled worker—craftsman" growth pathway. Additionally, aligning with national professional skill standards, the Company
innovatively designs a career development system and incentive application system for the entire group's skilled talents, incorporating a
"Voyage Plan" (2023) team leader development stems from
skilled occupation certification mechanism, skill level re-evaluation system, and a comprehensive incentive system, facilitating the selection,
the "Vanguard" training camp (supervisors + team leaders),
cultivation, application, and retention of skilled talents and promoting a "top-down, bottom-up" mechanism to drive high-quality development of
evolving into a regular initiative targeting supervisors
human resources.
and team leaders among the grassroots management. It
regularly introduces valuable learning materials and ensures
continuous learning for the participants; offline intensive
training employs innovative teaching methods like "flipped
Advancing the Skill Level Evaluation Mechanism
classroom, management games, and sandbox simulation",
Focusing on technical positions, the Company vigorously advances a professional technical level evaluation mechanism, establishes a
stimulating proactive thinking and invigorating team dynamics.
skill development pathway for capable and high-performing "skill-based" and "technical" personnel to become frontline skilled workers, and
Post-camp evaluations show high comprehensive ratings,
successfully completes the full-process system construction of qualification standards, training systems, evaluation systems, and incentive
with course satisfaction averaging 98.8 points and overall
systems. The regular evaluation of skill levels and tiered management of skill allowances reflect the "skill-level-oriented" differentiated
training camp satisfaction reaching 99.6 points.
incentive principle, fostering the formation of skilled talent echelons and enhancing skill levels. The cultivation of skilled talent promotes
the spirit of model workers, labor, and craftsmanship, motivating more workers to pursue a path of skill-based success and strengthening
enterprises through skills.
Structure chart of company-level skilled workers assessment team
Company-level
Skilled Worker
Evaluation Team
Process Equipment Power Quality Control Motor Vehicle
HR Department Department Department Test Center Department Fleet
"Voyage Plan" improvement training camp Results Process Equipment Equipment Quality Logistics and
Maintenance Product Testing
Application Operation Operation Commissioning Inspection Transportation
Occupational Skill Certification Mechanism Implementation Effect of the Skill Development
System
After years of development, Gree has clearly defined the types of skill occupations. The review of skill The overall number of skilled talents in the group has achieved continuous growth. Since a small-
occupations adheres to the principles of "fairness, impartiality, and openness", plays a leading role scale pilot at the Zhuhai headquarters in 2013, through gradual promotion across various branches and
in the company-level skill evaluation group, organizes and carries out the certification work for skill subsidiaries and continuous exploration of new occupations, the number of occupations and skilled
occupations. The specific process is as shown in the following diagram: workers has been increasing year by year. As of the end of 2023, skilled talents cover 78 units at Gree
headquarters and subsidiaries in other regions, with 117 skill occupations and about 14,000 skilled
workers, representing an 8-10-fold increase compared to 2013.
Skill type review process
Skilled Worker Evaluation Process
By the end of 2023, the Company has trained and recommended 110 national, provincial,
Company-level Skilled Position (Work Type)
Employing Unit municipal, and district (county) technical experts and
Worker Evaluation Team Competent Unit
society.
Initiate the identification
of work types
Gree won multiple honors at the Fourth Zhuhai Vocational Skills
Case
Competition
Call for skilled work Submission of skilled
types work types In December 2023, the Fourth Zhuhai Vocational Skills
Competition and the Second "Top of All Trades" Competition
Determine the list of new Material review, on-
work types by comprehensive site research and work concluded. The Competition lasted 14 days, featuring 32
ranking of new work types video evaluation events including CNC lathe work, electrician skills, and
software technology, with over 1,300 high-quality volunteer
talents competing on this grand stage, showcasing their
Conduct a company-level abilities.
evaluation meeting for skilled
work types After intense competition, Wang Peng from Gree's Xiangzhou
Branch ranked first in the electrician competition, earning
the title of "Zhuhai City Technical Expert"; Wu Lisen and Qin
Approve by NG Shujian secured the second and third places respectively;
company leaders
Wan Jinming received the "Excellent Judge" honor; Gree was
awarded the titles "Advanced Unit" and "Champion Participant
Unit" at the Fourth Zhuhai Vocational Skills Competition and The "Top of All Trades"
Release the Second "Top of All Trades" Competition. Competition
High Emphasis on Employee Ideological and Case
The Company organized "Learn from Lei Feng, Be the Successor
Political Education of Lei Feng" themed activities
In 2023, marking the 60th anniversary of senior revolutionaries like Mao Zedong endorsing Lei
While focusing on the professional development of employees, Gree insists on "fostering virtue and
Feng, the Company specially organized the "Learn from Lei Feng, Be the Successor of Lei Feng"
cultivating people", guided by political ideology, actively practices socialist core values, and promotes
themed activities, which are divided into four phases: "Learn, Think, Comprehend, Act". Through
advanced corporate culture, serving the overall development of the Company, and educating employees
widespread and deep mobilization, over 60 units actively participated in the activities, creating a
to enrich their sense of national identity, strengthen professional ethics, and solidify their ideals and
prominent direction and value pursuit where "Lei Feng's spirit can be learned by everyone, and
convictions.
acts of kindness can be done everywhere".
In 2023, the Company organized various activities such as "Learn from Pioneers, Strive for the Forefront,
Create Outstanding Achievements, Establish New Merits" themed education, special training classes
for party members and key leaders, "Learn from Lei Feng, Be the Successor of Lei Feng" themed
education, "Keep the Market during Peak Season" special education, and National Defense Education
Month, carrying out ideological and political education activities in a targeted manner through mass,
thematic, and accessible approaches, enabling employees to enhance their ideological quality and value
pursuit subtly, and striving to cultivate virtuous and talented new-era industrial workers.
Ideological and political education and training system of the Company
Establishing virtue
and empowering people
The Company organized "Learn from Lei Feng, Be the Successor of Lei Feng" themed activities
national sentiment
Strengthening family and
ethics
Establish professional
principles
Maintain firm ideals and
Lead by political thought
socialist core values
Actively practice
culture of the enterprise
Promote the advanced
development
situation of enterprise
Serve the overall
Cultivate new-age industrial workers who
are both virtuous and talented
Coordinate and guide at the
Educational system
company level
pattern
Implement at the unit level
Determine the theme of ideological and political education every year
Adopt mass, thematic, and accessible education method
Organize and carry out various ideological and political education
activities in a targeted manner
Safeguarding the Health Case Gree conducted a Group Fire Safety Skills Competition
and Safety of Employees In October 2023, the Fourth Gree Group Fire Safety Skills
Competition was grandly held. The Competition focused
Gree strictly adheres to laws and regulations including the "Work Safety Law of the People's
on assessing operational skills to enhance job-specific
Republic of China", "Law of the People's Republic of China on Prevention and Control
skills on the premise of daily training and job-specific
of Occupational Diseases" and "Fire Control Law of the People's Republic of China",
drills, ensuring that all participants met the requirements
and formulates systems such as the "Measures for Administration of Safety Production
of "preventing fire routinely and rescuing in case of fire". A
Responsibility System", "Measures for Administration of Work Injury", "Measures for
total of 76 participants from 19 fire brigades across Gree
Prevention and Control of Occupational Diseases", "Measures for Administration of Special
headquarters and its branches competed fiercely, with The Fourth Gree Group Fire Safety Skills Competition site
Equipment Safety", "Measures for Administration of 'Three Simultaneities' for Construction
Hefei Gree winning the first prize, Changsha Gree the
Projects", "Measures for Administration and Assessment of Fire Safety", "Measures for
second, and Hangzhou Gree the third.
Administration of Personnel, Vehicle, and Traffic Safety", "Measures for Administration of Fire
and Explosion Safety", etc. Gree consistently upholds the safety production management
philosophy of "equally emphasizing safety and production", focusing on filling gaps and
Promoting learning and enhancing skills through competition, and promoting
strengthening weaknesses in safety responsibilities, standards, technology, and quality. The Case
application and empowering employees through learning
Company actively promotes the systematization and standardization of safety production
work, striving to cultivate a real culture of safety. It has obtained the Occupational Health and In December 2023, the Company held the final round of "Gree Safety Cup" Safety Production Knowledge
Safety Management System Certificate. Competition. Since the launch of the knowledge competition, all units of the Group have responded
enthusiastically, and leading cadres have personally organized and deployed. Over the course of 78 days,
Construction of Safety Cultures production safety. After rigorous selection through internal competitions within each unit and preliminary
rounds at the headquarters, eight teams excelled and advanced to this final competition. Through four rounds
Gree has established a corporate culture of "People-Oriented, Safe Production, Health of competition, Gree Changsha HVAC Equipment Co., Ltd. won the first prize, Gree (Shijiazhuang) Electric
Assurance, and Life Care". It has set up a Safety Production Committee, which is chaired by Appliances Co., Ltd., and the Sheet Metal Spraying Plant (headquarters) won the second prize, and the
the Chairman and responsible for coordinating, guiding, and supervising safety production Prototype Center (headquarters), Hefei Kinghome Electrical Co., Ltd., and the Western Region Household
work; and established a comprehensive safety production system. Each year, it signs the "EHS Assembly Factory (headquarters) won the third prize, with the Quality Control Department (headquarters) and
Responsibility Agreement" with units at all levels, further consolidating the responsibility for Zhuhai Kaibang Motor Manufacture Co., Ltd. receiving the Excellent Organization Award.
safety production. Gree invests as needed without setting limits in improving safety production
and occupational health. In addition to the standard investment in necessary labor protection
supplies and safety facilities, the Company actively promotes technological upgrades and the
automation of manual operations to improve the working environment for employees.
Gree conducted the "Gree Safety Cup" 2023 Safety Production Knowledge Competition
In 2023, Gree organized multiple safety production-related activities, such as fire-fighting
This "Gree Safety Cup" Safety Production Knowledge Competition, with its innovative approach to safety knowledge
skills competitions, safety production knowledge contests, training sessions to enhance the
education and training, enhanced the interest in learning safety knowledge, increased the enthusiasm of employees
management capabilities of key responsible persons and safety officers, Safety Production
for learning about safety, and sparked a wave of safety knowledge learning across the Group. Through this
Month series activities, new employee fire theory training, and comprehensive safety training,
Competition, not only were the safety awareness and skills of the Company's employees enhanced, but the safety
which have enhanced the safety awareness of employees and their emergency response
production "real" culture was also deeply embedded in the hearts of the people.
capabilities in dealing with sudden incidents.
Safety and Health Monitoring Employee Psychological Care
The Company places a high emphasis on the prevention and In active response to the spirit of the "Implementation Plan
management of occupational diseases and has established the of Guangdong Federation of Trade Unions to Promote
"Measures for Prevention and Control of Occupational Diseases". Psychological Health Services for Workers throughout the
Appropriate labor protection supplies are provided to employees in Province", the Company is piloting the construction of the
positions with occupational hazards, such as safety shoes, earplugs, Gree Psychological Services System, explores models
protective masks, AED defibrillators, and medical kits. The Company and mechanisms for psychological services for employees
organizes regular occupational health examinations and inspections at Gree, improves the mental health service system
of hazardous job positions annually, effectively preventing various for employees, safeguards and protects the physical
occupational risks and injuries, thereby maximally ensuring the and mental health of employees, and cultivates a good
health and safety of employees In 2023, the company achieved a Unveiling ceremony of Gree's Psychological Service Station
psychological quality of the employees. The Gree Trade
establishes the "Employee Soul Station" at the Kangle
Park Phase I Employee Activity Center.
AED
installation
site
The Company regularly invites professional psychologists from the Soul Home Psychological Counseling Center in Nanshan District,
Shenzhen, to provide rich psychological health services, including psychological assessments and interpretation of assessment
reports, every week.
Gree Employee Soul Station
Medicine box photo
Case The Company invited teachers from South China Sunshine Fund Subsidy
Normal University to conduct psychological lectures for
employees The "Sunshine Fund" was established by Gree in the second half of 2009 to ensure the health of Gree
employees, creating a comprehensive system for major medical assistance for employees. The Fund, which
The Company organizes the Employee Lecture Hall, specially inviting professional
has a history of 15 years, involves the trade union auditing Sunshine Mutual Aid Fund materials monthly. It
teachers from the School of Psychology of South China Normal University to
provides secondary reimbursement after social security claims for outpatient and inpatient treatments needed
provide training and psychological counseling lectures, helping alleviate the
by employees, their spouses, and children under 18.
stress of work and life, managing emotions, and enhancing the Company’s
overall attention to employee psychological issues, enabling timely prevention,
identification, and resolution of these issues.
Enhancing Diversified Wellbeing of
Employees
Gree adheres to the concept of creating a "comprehensive incentive system", covering all employees with a
performance incentive system. Moreover, the Company is dedicated to building a "safe haven" for employees'
happiness, allowing them to focus on career development without worries. Gree has set the goal of "creating
a comprehensive welfare system for employees". Substantial investments have been made to construct
comfortable living areas with complete facilities for employees—Kangle Park Phases I and II projects.
Teachers from South China Normal University conducting psychological lectures at Gree
Staff living area of Gree Kangle Park Phase I
In terms of daily employee life, the Company's internal canteens cater to both northern and southern tastes, providing three
meals a day for over 30,000 headquarters staff; in terms of accommodation, Gree provides fully furnished employee dormitories
that are move-in ready upon employment; regarding transportation, there are free shuttle buses covering major areas of Zhuhai Employee Stock Ownership Plan
for commuting; additionally, the Company offers customized work uniforms, communication packages for all employees, and
comprehensive health check-ups, thereby creating a system of welfare measures that ensures the happiness of Gree employees.
The Company has established a long-term and effective incentive
mechanism, launched employee stock ownership plans to
attract and retain talented individuals, realized the incentive and
stable retention of middle and senior management and core and
backbone employees, formed a community of interests between
employees and the Company, and enhanced employees' sense
of belonging and responsibility. Since 2021, the Company has
introduced two phases of stock incentive plans. As of Dec.31,
employees.
As of December 31, 2023, the first phase
of employee stock ownership plan covered
covered 3,170 employees
Huge Gree shuttle system Staff canteen covering north and south flavors
Support for Employees in Need Enriching Employee Activities
Gree consistently implements the care system of "visiting all who are injured, comforting all who are seriously ill, and caring for all Gree advocates for healthy work and happy living, strives to create
who are hospitalized", making support and warmth a normal, frequent, and everyday occurrence. The Company actively explores a relaxed and active work atmosphere, and enhances employees'
effective ways and measures to assist employees in need, ensuring precise and dynamic management, enhancing employees' sense job satisfaction. The Company, in line with its own circumstances,
of achievement, happiness, and satisfaction, and truly making the employees in need feel the warmth of their "family". has hosted various unique cultural and sports activities.
The Company organized the "Made
Case
Case Gree organized Mid-Autumn and National Day Sympathy Visits for employees in need in China, Loved by the World"
Singing Competition
At the end of September 2023, the Company's Trade Union, department leaders, and branch unions visited employees In early November 2023, Gree's Party Committee and the
with documented difficulties and serious illnesses before the festival. They went together to the homes of these employees, Trade Union initiated a Singing Competition, which was
engaging in face-to-face conversations with the employees and their families, listening to their concerns and practical needs responded to by various factories, departments, subsidiaries,
in life, and delivering festive blessings and sympathy gifts. and domestic and overseas dealers, sparking a wave of
enthusiasm for singing. Since the Competition began, the
song "Made in China, Loved by the World" has become
the exclusive BGM for Gree employees striving at the front
lines, fostering innovation and making the dream of "Made in
China" shine in every corner. After several rounds, 12 teams
from 16 units stood out and entered to the finals.
"We take mission on our shoulders and keep original
aspirations in mind", the singing voiced the passionate
achievements of Gree over the past five years. As expressed
in the lyrics of "Made in China, Loved by the World", Gree
has always adhered to independent innovation, using
wisdom and strength to forge national pride.
Caring for employees in need
"Made in China, Loved by the World" Singing Competition site
Case The Ninth "Gree Cup" Fun Sports Meeting held successfully Case Zhuhai Cultural Center's "Full Art Camp" entered Gree
In November 2023, the ninth "Gree Cup" Fun Sports In November 2023, the "Full Art Camp"
Meeting heatedly commenced. The event attracted visited the employee living area of Gree
over 800 employees from 40 departments of the Electric Appliances, Inc., where 60 Gree
Company, who competed in six events, demonstrating employees embarked on a relaxed and
the enterprising spirit of Gree people through concerted joyful journey of art. This event was
efforts. guided by the Zhuhai Municipal Bureau
of Culture, Radio, Television, Tourism,
and Sports, hosted by the Zhuhai City
Cultural Center, and co-organized by
the Trade Union Committee of Gree
Electric Appliances, Inc. of Zhuhai. With
the "cocoon" in hand as the storyline,
the activity extended from the classroom
to the outdoors, experiencing holding
paintbrushes and coffee handles, and
"Full Art Camp" employee activity site
enjoying the ease and happiness brought
The Ninth "Gree Cup" Fun Sports Meeting site
by public welfare culture and art.
Case Gree Cheongsam Class officially concluded: Beauty never fades with time
In June 2023, the "Lingnan Cheongsam • Beautiful
Embrace" Gree Cheongsam and Physical
Training Class celebrated its completion day. The
instructors led the Gree participants to the Zhuhai
Yuanming New Garden for the closing ceremony,
which included an outdoor catwalk and photo
shoots. Xiao Xiaolong, Party Group Secretary and
Executive Vice President of Xiangzhou District
Federation of Trade Unions, attended the closing
Gree Cheongsam Class officially concluded
ceremony.
Other diverse cultural and recreational activities organized by the Company,
such as theater performances, table tennis matches, basketball matches,
and esports competitions, etc.
Case
Gree's 2023 College Graduate Technology Empowering Agriculture
Bravely Assuming
Induction Ceremony held in Zhuhai
In December 2023, Gree held the induction ceremony for To consolidate the achievements in poverty alleviation and strengthen the foundation
Corporate Social the 2023 college graduates. The Chairman and President
Dong Mingzhu, Party Secretary Zhang Wei, and 1,067
of specialized industries, technology is the indisputable primary driver. As a national
enterprise committed to "mastering core technologies", Gree has repeatedly set
Responsibility new graduates attended the ceremony. Chairman Dong
Mingzhu delivered a speech, mentioning that during
examples in leveraging innovative technology to boost rural revitalization.
the General Secretary's inspection of Gree in 2018, he
Behind the success of a business, there must be a
described Gree as "genuinely learning, understanding, The first unit of Gree's independently developed
contribution to society, only realized through practice
believing, and applying", which not only affirms Gree's Case
lychee-specific mobile preservation equipment
can the true value of a business be shown. Gree has
past achievements but also serves as motivation for Gree successfully rolled off the production line
always upheld the philosophy of "taking from society
employees. She expressed hope that generation after
and giving back to society", actively participating in In June 2023, the first unit of lychee-specific mobile preservation equipment,
generation of young people would carry forward Gree's
various public welfare activities, and investing significant independently developed by Gree, was successfully launched. This unit has
cause and make it a world-class brand.
resources in charitable causes. Whether providing an effective internal volume of 20 cubic meters, capable of storing 5 tons of
assistance during natural disasters or supporting lychees. The equipment uses a full-domain permeation air delivery design,
education, medical care, and sports public welfare which keeps the dehydration rate of lychees as low as 0.51%, maintaining
projects, Gree has demonstrated the social responsibility a healthy fruit rate of 99.8% even after 20 days of storage. The integrated
expected of a large corporation. In 2023, the Company anti-vibration structure design enhances convenience in installation,
contributed approximately CNY17.6 billion in taxes, transportation, and construction, extending the supply period for beautiful
making a significant contribution to the national economic rural areas with lychees as their primary industry, facilitating staggered
development. sales, increasing farmers' income, and adding value to the industry, thereby
injecting relentless energy into advancing industry development and rural
Stabilizing and revitalization.
Protecting Employment
Gree firmly implements policies and measures for
stabilizing and protecting employment, continuously
secures and expands jobs, and has insisted on no layoffs
during the pandemic, ensuring normal distribution of year-
end bonuses, and continuously recruiting outstanding
talent from universities. Over the past five years, nearly
Gree established the "Veterans Base", incorporating 560
veterans into Gree's workforce. In 2023, it was selected
Gree's 2023 College Graduate Induction Launch ceremony of the first unit of Gree's independently developed lychee-specific
as one of the first "National Socialized Military Support
Ceremony site preservation equipment
Enterprise" honors.
Social Welfare Donations Fulfilling Overseas Responsibilities
Gree is not just a company but also a citizen with social responsibilities. The Company has Gree Electric is committed to contributing to the sustainable development of the global economy,
repeatedly demonstrated its commitment to social responsibility by radiating positive energy implementing the national "Belt and Road" initiative, respecting the culture and customs of the project
through its actions. sites, vigorously absorbing local employment, caring for local employees, and focusing on the positive
impact on the local community and the environment. It actively integrates its development into local
economic and social development, actively creates economic and social values, and promotes the
Gree donated a thousand sets of electric heaters to aid the prosperous development of the local economy together with the host government, business partners and
Case local residents.
earthquake-stricken area of Jishishan, Gansu
On the winter solstice of 2023, an emergency
vehicle loaded with a thousand sets of Gree Case Training for local air-conditioning professionals by Gree in Brazil
electric heaters departed from Xi'an to the
earthquake-stricken Jishishan area in Gansu, In 2023, to enhance the quality of services across the entire supply chain, Gree Brazil actively
and then quickly distributed to the severely conducted training for local air-conditioning professionals, covering installers and repair
affected town of Dahejia. The heaters not only technicians. The training sessions were held across Brazil's five major regions (Northeast,
brought warmth to the people in the disaster Southeast, North, South, Central-West), totaling 128 sessions with 7,195 participants. By co-
area but also brought them confidence in life. hosting training sessions with customers and using real cases and technical explanations, Gree
significantly improved the technical skills in air-conditioning maintenance and installation among
participants, strengthened Gree's competitiveness in the Brazilian market, enhanced employment
capabilities, and positively contributed to Brazilian vocational education.
Gree's northwest branch aided the earthquake-stricken area of Jishishan, Gansu Training for local air-conditioning professionals by Gree in Brazil
Gree Qatar sponsored Qatar National Sports Festival
Case Gree Vietnam sponsored the local CSC Award
Since its establishment in 2011 by the FSC Fund
— a fund supporting outstanding construction
students — the CSC Award has been aimed
at encouraging and creating conditions for the
comprehensive development of students, meeting
the demands and challenges of Vietnam's national
integration process. For three consecutive years,
Gree Vietnam has been a gold sponsor of the
CSC Award, supporting outstanding students in
Vietnam's construction industry and contributing to
the development of local talents. Gree Vietnam sponsored the local CSC Award
Gree Brazil sponsored racing sports
Striving for Excellence
and Creating Shared
Value
For over thirty years, Gree has consistently pursued
perfect product quality and customer satisfaction. The
Company tirelessly works to build a responsible and
sustainable supply chain. By continuously promoting
industry collaboration and upgrades, Gree progresses
alongside consumers, partners, and peers, sharing the
values of high-quality development.
Building A Sustainable Supply Chain 67
Creating Extraordinary Products with 70
Craftsmanship
Improving User Experience 72
Promoting the Healthy Development of the 77
Industry
SDGs benchmarking
Building A Sustainable Supply Chain
Gree is committed to the organic integration of ESG concepts and supply chain management. While executing honest, righteous,
professional and efficient procurement, Gree strengthens value chain risk control and leads sustainable value creation in the industry
chain through a perfect supplier management mechanism and leading supplier empowerment programs.
Supplier Management
Gree's supplier audit includes the following social
To fully guarantee the Company's production and tirelessly pursue perfect quality to meet customer demands, Gree places great responsibility aspects:
emphasis on the quality of procurement. The Company has established a perfect supplier development and management system, and
through in-depth communication and interaction with suppliers, to achieve mutual benefit and win-win situation with partners and common
development. No employment of children under the age of 16
No forced labor, physical punishment, abuse, or verbal
As of 2023, a total of five subsidiaries of Gree have been selected as green supply chain management enterprises in the Green
insult of employees
Manufacturing List of the Ministry of Industry and Information Technology: Gree (Shijiazhuang) Electric Appliances Co., Ltd., Gree
Changsha HVAC Equipment Co., Ltd., Gree (Zhongshan) Small Home Appliances Co., Ltd., Gree (Chongqing) Electric Appliances Co.,
No discrimination based on age or gender in hiring or
Ltd., and Gree Altairnano New Energy Inc.
promotion processes
Employees enjoy freedom of association and the right to
collective bargaining on remuneration
Provide a safe and healthy work environment, including
fire safety and facilities, regular maintenance and
For new supplier admission For suppliers that have been put into storage reporting for special equipment, personal protective
equipment, and timely medical check-ups for employees
Gree implements a stringent review process. After Gree implements a strict regular audit and elimination mechanism. in hazardous positions, with prompt feedback on health
meeting the quality or technical level, potential suppliers The Company's supplier audit plan annually selects a proportion of anomalies
must also meet the Company's layout of the industry and suppliers for documentation review and on-site evaluation, focusing
supply chain, etc., and be evaluated and screened by primarily on first and second-tier suppliers. The review covers various Comply with legal or industry standards for maximum
the Company's evaluation team, which consists of the aspects including changes in the supplier entity (shareholders, allowable working hours within a week, pay overtime at
purchasing, external management and quality departments. managers, etc.), changes in production sites, expiration of production the premium rate and ensure that employees take time off
If the supplier submits more than the specified number qualifications (production licenses, pollution discharge permits, etc.),
of samples for sample review and small batch trial or the changes in raw materials (brands, processes, etc.), implementation Provide social security for employees and arrange leave
samples are unqualified, its candidacy as a new supplier of production process quality control requirements, compliance with as per national legal requirements
will be cancelled. Moreover, all new suppliers are required safety protections for production staff, timely calibration of inspection
to commit to adhering to the code of conduct of "Business equipment, inspection capabilities meeting Gree's testing requirements,
Social Compliance Initiative" (BSCI). and compliance of finished goods warehousing.
Gree's supplier audit includes the following environmental Case Motor supplier training
protection aspects:
In recent years, inverter air conditioners have increasingly dominated the household air conditioner market. While
inverter DC motors offer advantages such as quiet operation, energy efficiency, and precise control, there has also
Products do not contain toxic and hazardous substances
been a notable increase in motor failure rates. Through analysis of post-sales reviews of inverter air conditioners,
restricted under the "Directive on Restriction of
Gree has identified reducing the failure rate of DC motor control boards as a pressing issue.
Hazardous Substances (RoHS)" and the "EU Regulation
on Registration, Evaluation, Authorization, and Restriction In October 2023, the Company invited control experts from the ROHM Semiconductor Group to provide in-depth
of Chemicals (REACH)", with relevant testing reports training on clean electricity and overvoltage management. Along with internal technical personnel, general managers,
provided technical directors, and quality directors from various DC motor suppliers participated in the training, collectively
promoting the improvement of DC motor product quality.
Possess hazardous substance testing equipment
Identify and segregate toxic and non-toxic materials in
warehousing, material handling, and production lines, with
risk identification for potential pollution in the production
process
Establish green supplier certification procedures and
green supplier lists, sign agreements related to hazardous
substance control with such suppliers, or require suppliers
to provide relevant commitments, with suppliers having
valid testing reports from authoritative third-party testing
institutions on the content of hazardous substances
Motor supplier training
Gree also highly values supplier empowerment. For suppliers identified Gree consistently strives to create an open, fair, and clean
as non-compliant or potentially risky during regular reviews, proactive competitive environment in the supply chain. The Company
assistance is provided for timely rectification. Additionally, the Company has opened a self-recommendation platform for suppliers,
with all suppliers and procurement and external management During the reporting period,
regularly holds supplier training and exchange events to continuously
improve suppliers' awareness and levels of quality control and sustainable personnel signing integrity agreements, and regularly conducts Gree's procurement personnel completed
development. anti-corruption and anti-bribery education and training for training on sustainable procurement.
procurement and external management personnel, solidifying a
foundation of business ethics.
Contractor Management
To ensure that the new construction, expansion and alteration projects are completed on schedule and with quality and quantity, Gree
always adheres to a high standard of contractor management, and executes the whole process of control from planning, budgeting, Conflict Mineral Management
bidding to construction and acceptance.
Gree strictly does not tolerate any involvement in, or incitement
For potential engineering contractors, departments such as the Company's Infrastructure Office conduct on-site audits to systematically of, human rights abuses or environmental degradation due to
assess construction quality and operational safety. Only those who pass the audit are included in the contractor database. Construction armed conflicts. To this end, the Company has formulated a strict
contracts signed with contractors include an integrity agreement and clauses related to the contractor's environmental and social conflict minerals policy and management system in compliance
responsibilities, such as not using equipment that pollutes the environment, managing dust emissions, and requiring construction personnel with domestic and international laws, regulations and standards,
to be certified. During the construction process, the Infrastructure Office conducts weekly site inspections and mandates timely rectification such as the "Dodd–Frank Wall Street Reform and Consumer
of any issues found. Moreover, the Company regularly organizes contractor training, conducts quarterly evaluations of contractors, and Protection Act" and "EU Conflict Minerals Regulation" of the US
promptly disengages those not meeting standards to strictly ensure project quality and safety. Securities and Exchange Commission, as well as the "OECD
Due Diligence Guidance for Responsible Mineral Supply Chains
from Conflict-Affected and High Risk Areas" and "Chinese Due
Case "Zero Safety Accident" initiative for infrastructure project
Diligence Guidelines for Minerals Supply Chains".
In November 2023, the Company held the kickoff meeting for the "Fourth Quarter Zero Safety Accident in Infrastructure Project" Gree commits to not purchasing or using minerals and raw
initiative, issuing the corresponding action plan. Department leaders, project engineering teams, engineering technology teams, materials directly or indirectly sourced from regions affected by
internal control teams, project managers, regional managers, and infrastructure base managers participated both online and armed conflicts, including but not limited to metals such as tin,
offline. tantalum, tungsten, and gold. The Company requires suppliers
to adhere to this commitment, confirming via written statements
During the initiative, the Company focused on eliminating safety hazards and enhancing the safety assurance for frontline that their products supplied to the Company do not contain the
production staff. It required all units to actively conduct hazard identification and special management, reinforce the implementation aforementioned conflict minerals. A traceability mechanism for
of the safety accountability system at all levels of the project, advance the establishment of a safety culture, prevent industrial raw materials is established, and Gree's conflict mineral policy is
safety accidents rigorously, and ensure that the annual safety control targets for projects are achieved. actively communicated to its suppliers.
During the reporting period, the Company conducted extensive
research on suppliers whose products might contain conflict
minerals. Out of more than 500 suppliers surveyed, 45 were
confirmed to use metals such as tin, tantalum, tungsten, and
gold, and some suppliers have already declared in writing that
there are no risks of conflict minerals in their upstream supply
chains. Currently, the Company is exploring the use of tools
provided by the Responsible Minerals Initiative (RMI), such as
the CMRT/CRT survey forms, to regularly conduct due diligence
Kickoff meeting for the "Fourth Quarter Zero Safety Accident in Infrastructure Project" initiative on suppliers for conflict minerals and to gradually introduce
requirements for conflict minerals compliance certification.
Creating Extraordinary Products
with Craftsmanship A company A company
A company
Product quality is crucial not only for consumer safety and health but without core without premium
Business without innovation
also for the sustainable development of the Company. Gree has always technology is a products is a
philosophy is a company
regarded product quality as the lifeblood of the enterprise, forging perfect company without company without
without a soul
quality with craftsmanship, and contributing to the strategy construction of a backbone a future
"Country Strong on Quality" with its own actions.
Quality Management System Gree's "Perfect Quality" management model diagram of "Made in China, Loved by the World"
Gree continuously advances quality management reform by establishing a Made in China,
comprehensive quality management system to deepen the construction of an Loved by the World
enterprise strong on quality. In recent years, the Company has developed a
"Perfect Quality" management model of "Made in China, Loved by the World" Perfect quality
centered around the "Five Steps to Quality Prevention" and the "D-CTFP
Procurement Manufacturing Sales & service
Quality Technology Innovation Cycle". The "D-CTFP Quality Technology R&D process
process process process
Innovation Cycle" has been successfully transformed into the national
standard GB/T 38356-2019 "Quality Management - Guideline for Customer- Target driven Integrated Guarantee
oriented Innovation Cycle", implemented since 2020. innovation prevention
Internal and external
The "Five Steps to Quality Prevention" promotes the quality plan positively Customer Process
with quality objectives, encompassing demand research, planning, execution, demand 1.C 4.P system 4.Inspection check
driven optimization
inspection, and improvement to strictly control processes across R&D,
procurement, manufacturing, and after-sales service, eliminating quality issues
Inspection Failure
before consumer use. The "D-CTFP Quality Technology Innovation Cycle" technology mechanism 2.Plan development
is a reverse quality drive led by customer needs, continuously driving quality driven research
technology innovation to meet customer demands through actions such as
collection and analysis of customer needs (C), inspection technology drive (T), Feedback Support
failure mechanism research (F), and process system optimization (P), with
standards closing the loop. The two are interlocking and organically combined Target Organizational Technical Standard Information
to jointly promote the steady improvement of the Company's product quality. management system system system system
Quality Control Action Case Held the national Quality Month improvement activities
Gree's pursuit of perfect quality has a starting point but
The Quality Month improvement activity, regularly held by Gree, have become a hallmark quality brand event within
no end; and has standards but no limits. As early as
the Company. By organizing regular quality month improvement activities, Gree creates a strong quality atmosphere in
the Company, strengthens employees' quality awareness in a subtle way, and motivates employees to contribute to the
Factory" within the industry, screening every component
improvement of Gree's quality level.
entering the factory to ensure they meet production
line standards. Since then, a quality control system Quality Month improvement activities are organized annually by the Quality Control Department, and led by the active
has evolved, including the External Parts Management participation of subsidiaries, production bases and branch factories, with the aim of comprehensively enhancing the staff's
Department, Screening Factory, and Quality Control quality awareness and improving the quality level, and jointly casting the enterprise's quality cornerstone to create a century-
Department, of which the Quality Control Department old brand of Gree. Quality Month improvement activities are divided into three stages: mobilization and publicity, activity
has set up 31 departments to strictly control the quality implementation and activity summary, including quality culture atmosphere publicity, quality thematic training, quality
of the whole process of the Company's products. challenge activities, and staff skills competition.
For example, household air conditioning products
undergo nearly a thousand rigorous quality inspection Seizing the opportunity of the Quality Month improvement activities, Gree not only strengthens the quality and craftsmanship
procedures from component production to assembly to awareness of all employees but also enhances production and manufacturing process skills, motivating all employees to
market distribution, which increases year by year with contribute to quality improvements.
the continuous improvement of the Company's quality
standards. Three stages of Gree Quality Month improvement activities
In recent years, the Company has continuously
pushed product quality upgrades with higher
standards and stricter requirements, leading to
continuous improvements in the first-pass yield
of product processes and a decline in post-sales
fault rates, with customer satisfaction topping the Mobilization and promotion Activity implementation Activity summary stage
air conditioner industry rankings for 11 consecutive stage stage
years. The Company's projects such as "Disinfection
Initiate the quality kick-off Conduct basic quality training Review the situation and
and Purification Technology and Product Application
meeting Conduct quality critique summarize the outcomes
Based on CKER System", "Research and Application
activities
of High-precision Maglev System", and "Research and
Hold quality skills competitions
Application of PV Direct-drive Inverter Air Conditioning
System" have won many awards in international quality
innovation competitions.
Case The "Find Faults Within" initiative Improving User Experience
To further enhance overall work quality, Gree has launched the Gree strictly adheres to the "Law of the People's Republic of China on Protection of Consumer
"Find Faults Within" initiative across the Company, departments, Rights and Interests", the "Product Quality Law of the People's Republic of China", and the
and business processes. This initiative involves mutual "Provisions on the Liability for the Repair, Replacement and Return of Some Commodities",
supervision and identification of deficiencies within and between and other laws and regulations. Based on these, the Company continually develops and
units, identifying deficiencies and organizing corrective actions to refines its management systems and operational standards for after-sales service. The In recent years,
deepen quality management and accelerate the improvement of Company firmly upholds the service philosophy that "every minor detail for the user is a major the number of
business capacity and enterprise management level by solving matter for Gree", and persists in providing professional and meticulous pre-sale and post-sale complaints about
key and difficult problems. services to consumers and corporate customers. In recent years, the number of complaints products or services
about products or services has continuously decreased, with the complaint resolution rate has continuously
The "Find Faults Within" initiative focuses on market development,
maintaining 100% for several consecutive years. decreased, with the
product development, efficiency improvement, quality control,
cost control, safety management, administrative management, complaint resolution rate
Moreover, the Company's customer service adheres to the principle of "customer satisfaction",
system process optimization and other aspects of the specific
work, extensively sorts and investigates problems, and promotes
regularly conducts customer satisfaction surveys and closely monitors customer evaluations
of the Company's products and services. Each month, the Company extracts service order
maintaining 100%
for several consecutive
the rectification and resolution of problems. satisfaction data from its self-developed cloud-based after-sales service platform, and years.
annually employs third-party agencies to conduct customer satisfaction market research.
The "Find Faults Within" initiative is divided into four phases.
Initially, each unit conducts internal reviews and self-corrections
to collect all kinds of problems or suggestions raised by its
employees, and the rectifying unit develops the corresponding
plan. Next, the rectifying unit summarizes and organizes the "Find
Faults Within" feedback according to the devised plans, conducts
cross-checks with upstream and downstream units to identify key
projects and designates responsible units to follow up and ensure
implementation. Subsequently, each rectifying responsibility unit
completes the rectifications as per the milestone requirements,
with the initial acceptance conducted by the rectifying unit. Finally,
a joint acceptance team, consisting of the Business Management
Department, Quality Control Department, and others, performs
the acceptance check and evaluation of the work of the rectifying
units and their respective responsible units.
Under the spirit of the "Find Faults Within" initiative, Gree
actively identifies and resolves quality issues, optimizes quality
management mechanisms, and vigorously promotes employee
participation in quality improvement efforts, continuously
advancing quality enhancement.
In the 2023 customer satisfaction survey of thirteen product categories released by the Customer Customer Service Management System
Satisfaction Measurement Center of the China National Institute of Standardization, Gree ranked first in
the air conditioning category and received high praise from consumers in aspects such as brand image,
In 2005, Gree was the first in the industry to propose and implement a policy of "six years of free
cost-effectiveness, degree of needs satisfaction, product reliability, and service quality. This marks
comprehensive warranty for household air conditioners", which far exceeds the national legal warranty
the twelfth consecutive year since 2011 that the Company has received this honor, demonstrating its
period. Since 2021, the Company has further advanced this policy to "ten years of free comprehensive
unwavering commitment to the quality of customer service.
warranty for household air conditioners", currently the longest warranty period in China's household air
conditioning industry.
Customer satisfaction ranking of air conditioning products
Customer satisfaction score Additionally, Gree continuously improves its customer service management system, ensuring high-
customer service centers) overseeing more than 12,000 service outlets at the first, second, and third
levels, with over 100,000 frontline service personnel. Each level of service outlet must pass a dual
Gree Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 review by the headquarters and regional sales companies to receive service certification authorization.
During service provision, the service personnel strictly implement the "Installation Specifications
During the reporting period, the Company also received several major honors in the customer service for Household and Similar Air- conditioning" (GB17790-2008), "Full-process Manual for After-sales
field, including the "National Standard Five-Star After-sales Service Enterprise" from the National Maintenance of Gree's Household Air Conditioner", "Full-process Manual for After-sales Installation
Commodity After-Service Conformity Certification Evaluation Committee, the "Top 10 National After- of Gree's Household Air Conditioner" and other national and corporate standards to carry out the
sales Service" from the National Commodity After-sales Service Compliance Certification Agency, and services such as installation, cleaning, maintenance, repair and removal of the machine.
the "2022 Brand Example Enterprise in the Chinese Refrigeration and Air Conditioning After-market
Regulation Service Industry" from the China Refrigeration and Air-Conditioning Industry Association. The
Company also received letters of thanks from customers such as the Shanghai Nuclear Engineering
Research and Design Institute's Model Project No. 1, Shulan (Anji) Hospital Co., Ltd., and Fujian Fuqing The Company's customer service network
Nuclear Power Co., Ltd.
covers the entire nation. By the end of
the reporting period, there were 31
regional sales companies (i.e., regional
customer service centers) overseeing
more than 12,000 service outlets
at the first, second, and third levels, with
over 100,000 frontline service
personnel.
Gree's after-sales service capabilities received a five- Significant honors received by Gree in the Gree's after-sales service system
star rating under the GB/T27922-2011 "Evaluation customer service field during the reporting period achieved a twelve-star (exceptional)
System for After-sales Service of Commodity" certification
Customer Information Confidentiality System
While advancing the informatization and intelligentization of customer service, Gree places high
importance on the confidentiality of customer information to ensure that customer information
handling is lawful and compliant, and effectively protect customer rights and interests. During the
reporting period, the Company newly formulated the "Measures for Administration of User Privacy
Protection" and actively carried out the ISO/IEC 27701:2019 Privacy Information Management
System certification, and as disclosed in this report, the Company has obtained such certification.
When customers submit requirements through any of
Gree's public information communication channels,
To ensure close contact with customers and promptly address their needs, Gree has they can read the customer privacy protection policy
established dedicated channels such as hotlines, e-mail, and letters, and has designated implemented by the Company. The Company encrypts
areas on its WeChat official account and online store platforms to accept customer inquiries, and backs up sensitive customer information and other
installation and repair requests, complaints, and suggestions in real time. After acceptance, important data offsite, and extensively uses network
customer service information is entered into the Company's cloud-based after-sales service security equipment or systems such as firewalls, gateways,
platform, triggering the corresponding after-sales service response mechanisms. WAF, endpoint security control, antivirus, threat perception,
code scanning, vulnerability scanning, SDP, and security
For instance, once a work order is created on the cloud-based after-sales service platform, sandboxes. Additionally, the Company employs a large
it is assigned to frontline service personnel through sales centers and service outlets, with number of network security professionals to formulate
acceptance SMS, appointment SMS, and rescheduling SMS pushed to the client side. The security strategies, analyze alerts, conduct penetration
Company requires service outlets to contact the customer within two hours to schedule a visit, testing and emergency drills on critical business systems
and typically, household air conditioner repairs are completed within 24 hours. After repairs, annually, and promptly identify and block vulnerabilities.
the cloud-based after-sales service platform sends a completion satisfaction SMS, and the Moreover, the Company also regularly conducts information
Company monthly evaluates the service quality of service providers based on customer security training to continuously strengthen and enhance
feedback, notifying and mandating rectification for those failing the evaluation. Additionally, the the employees' awareness and level of protecting customer
cloud-based after-sales service platform also facilitates the collection, monitoring, and analysis information. No incidents of customer privacy infringement
of after-sales data. Through big data analysis, the Company has developed the installation and or customer information loss have occurred.
repair demand prediction models, enabling more rational and intelligent allocation of service
personnel and tools, thereby making customer service more precise and efficient.
After-sales Service Model of the Company's after-sales talent training system
Talent Training
Headquarters resources
A professional after-sales service team is essential
for maintaining customer satisfaction and the
brand's high-quality reputation. Gree continuously
perfects its after-sales talent training system, Leading promotion Operation supervision
with a focus on customer needs and business
development. It builds its training system, team, System construction System operation
instructors, courses, and platforms through learning
project design innovation, deepening training
models and mechanisms, linking management Training Training management Training instructor Training course Hardware Demand Training Training Effectiveness Incentive
benefits enhancement, and promoting talent system team system system system platform system research program implementation evaluation improvement
training upgrades, thus constructing a diversified After-sales training
autonomous after-sales talent training mechanism. management method
Continuous improvement and enhancement
After-sales instructor management method
After-sales course management method
Learning platform management method
After-sales network management team
Sales company management team
Incentives for assessment results
Headquarters management team
Hardware platform management
Hardware platform improvement
Hardware platform construction
Hardware platform operation
Behavioral level assessment
Response level assessment
Key performance indicators
Outcome level assessment
Learning level assessment
Quarterly training program
Special demand research
In 2023, after-sales talent
Annual training program
Interim training program
After-sales rectification
Annual demand study
Lecturer appointment
Lecturer motivation
Skill enhancement
Lecturer selection
Induction training
Level 2/3 training
Lecturer training
Level 1 training
training activities were orderly
Key products
carried out in combination
with the Company's diverse
product demands, overseas
customer training needs, and
after-sales training system
construction needs, following
the development directives of
the refrigeration industry, with
Incentive implementation Training implementation
over
instances conducted throughout
the year.
Sales company resources
The Company conducted the 9th "Journey to Excellence · Gree conducted the 2023 "Ever Vigilant, Safety First" after-sales
Case Case
Building the Future" after-sales technical training camp safety education series of activities
With the purpose of "Linking Training Innovation Mechanisms and Integrating Resources for From April to May 2023, as the peak season for after-sales services approached, the Company
Targeted Training", this training camp kicked off at 41 sites across 18 regions, including 16 in the organized the "Ever Vigilant, Safety First" special after-sales safety education activities,
commercial segment, 17 in the household segment, and 8 in the household electric appliances strengthening the safety awareness and skills of customer service employees through safety
segment, completing over 50,000 training instances, meeting the personalized training needs of promotions, safety courses, and safety skills competitions. Moreover, safety supervision
different sales companies, solidly advancing the cultivation of highly skilled talents, and building inspections were conducted through a three-tier linkage mechanism led by the headquarters,
a team of professionals who are rigorous, innovative, and committed to excellence. guided by sales companies, and implemented at service points to identify and rectify safety risks,
fully implementing safety responsibilities, not only safeguarding the safety of frontline service
personnel but also protecting the safety of customers.
"Journey to Excellence · Building the Future" training camp Gree conducted the 2023 "Ever Vigilant, Safety First" after-sales safety education series of activities
Case The 3rd "Gree Cup" Commercial Service Skills Competition
In March 2023, Gree held the third "Gree Cup" Commercial Service Skills Competition, with representatives from 31 regional
sales companies across the country participating. The Company invited members from professional associations such as the
Refrigeration and Air Conditioning Engineering Committee of China Refrigeration and Air-Conditioning Industry Association and
Sichuan Association of Refrigeration, as well as teachers from Southwest Jiaotong University and Chengdu Textile College, to
serve as judges and guests.
The Competition was divided into installation and maintenance categories. The installation competition utilized standardized
auxiliary material packages throughout the process to better reflect the details of the installation work. The maintenance
competition set up faults in air conditioning equipment that were in normal use at the practical base, fully testing the contestants'
ability to handle issues quickly in real scenarios. Additionally, this Competition was the first to implement live electrical operations
throughout the process, further testing the contestants' skills and psychological quality. The teams demonstrated solid service
skills during the intense competition, highlighting the outstanding brand image of Gree's customer service. Intense Service Skills Competition site
Sticking to Responsible Promoting the Healthy Development of the Industry
Marketing Concept
As a representative of Chinese manufacturing enterprises, Gree continues to drive innovation and set standards, actively participating in
Gree has always adhered to marketing and sales practices that industry exchanges to foster industry optimization and upgrading. In the transition from "Made in China" to "Created in China", Gree is
comply with the "Advertising Law of the People's Republic of China" committed to changing the world with its core technologies and serving the world with high-quality products, making the products made
and other legal regulations, industry standards, and social ethical in China loved by the world.
norms. The Company engages in honest, accurate, and scientifically
factual communication with customers, strictly prohibiting any false
or misleading promotions. All marketing practices of the Company
undergo a three-level review process by the respective Technology Leading Standard Strategy
Department, Legal Department, and IP Department to ensure
that marketing activities and content are neither exaggerated nor
infringe on IP rights. Furthermore, the Company actively conducts Gree implements a "Leading Standard" strategy, oriented towards
customer education initiatives to enhance customers' abilities to consumer needs and social responsibility, taking international and
evaluate and compare different products, thereby guiding them national standards as thresholds, and consumer demands as the
towards making rational and responsible purchasing decisions. The highest benchmark. The Company continually pioneers on the path
Company also strives to provide products and services that benefit of standardization, leading the enterprise and industry towards high-
society and the environment. quality development, and contributing to the sustainable development
of all humanity.
Internally, the Company has established a Technical Standards
Rejecting "Fancy Marketing Tricks" to Committee and a Standard Management Department, with nearly
Case
purify customer service environment a thousand full-time and part-time standardization employees.
In recent years, some household appliance brands and Standards permeate all processes from design and development,
merchants have exploited consumers' unclear understanding procurement management, manufacturing, to after-sales installation
of the concepts of "warranty" and "guarantee", falsely and repair, requiring compliance in all aspects. Externally, combining
promoting "free repairs" while engaging in unnecessary its advanced and core technologies, the Company actively leads or
repairs, major repairs for minor issues, substituting inferior participates in the setting of standards.
parts, and non-transparent pricing. Gree has established the
By the end of the reporting period, Gree has authored or contributed
"Charging Standards for Maintenance and Services Outside
to 831 international, national, industry, local, and group standards,
the Warranty Period" to strictly regulate uniform charges for
adding 69 new standards during the reporting period alone.
after-sales services, and established a service supervision
The Company also actively undertakes or participates in as
department to rigorously address any fabricated faults or
many as 140 standardization organizations in the domestic and
fraudulent charges by service providers and personnel,
international household appliance industry, including 37 international
striving to maintain market order and protect customer rights
organizations, and holds 38 expert positions in organizations such
effectively.
as the International Organization for Standardization (ISO) and the
International Electrotechnical Commission (IEC).
Gree also serves as the only industry representative at China's WTO/TBT-SPS National Notification Center for Refrigeration Equipment Research and Evaluation, leveraging its technological advantages to represent
China in reviewing international technical standards and regulations. By the end of the reporting period, the Company participated in the revision of the American and Canadian national standards for air conditioner
electrical safety, as well as the setting of standards in key "Belt and Road" countries such as Brazil and Laos. By projecting "China's voice" on the international standards stage and timely transmitting China's new
concepts and technologies abroad, Gree promoted Chinese brands internationally, achieving "standards go global" to drive "products go global".
During the reporting period, Gree achieved the following results in standardization construction:
Led the formulation of IEC 63349-1 "Photovoltaic Direct-Drive Served as the vice-chair of the domestic counterpart unit for Selected as one of the first batch of national standard
Appliance Controllers - Part 1: General Requirements", and IEC/TC59/SC59N (IEC Technical Committee on Performance verification points, undertaking the national standard
also led the establishment of six ISO international standards of Household and Similar Electrical Appliances, Subcommittee verification work for energy-saving refrigeration equipment,
including multifunctional heat pump water heaters and on Electric Air Cleaners for Household and Similar Uses), and being the only enterprise selected in the refrigeration
refrigeration compressors, all of which have been successfully being the first household appliance manufacturer among over industry
initiated and are expected to be released post-2025 200 IEC domestic counterpart units
Chairman Dong Mingzhu was honored with the highest national standardization award - the The research and evaluation base for technical trade measures for refrigeration equipment
"China Standard Innovation Contribution Award" for Outstanding Contribution (2022), being passed the annual assessment of the General Administration of Customs and was rated as one
the only entrepreneur to receive this award during the year of the five outstanding evaluation bases in China
Consistently ranked in the "Leader in Enterprise Standards" list for six consecutive years, 11 corporate standards were shortlisted for the 2023 "Leader in Enterprise Standards" list guided
leading the industry in corporate standards for the past four years, accumulating a total of 88 by the National Development and Reform Commission and the State Administration for Market
"Leader in Enterprise Standards" certificates, leading the household appliance industry Regulation and selected by a third-party organization, leading the household appliance industry
in the number of standards shortlisted
Gree hosted the "2023 Zhuhai · International Standardization Industry Exchange and Cooperation
Case
Conference"
On May 26, 2023, Gree successfully hosted the "2023 Zhuhai · International Gree values exchanges and communications with global peers, actively joining industry organizations,
Standardization Conference", themed "Standards Lead High-Quality Development · participating in industry expos, engaging in industry seminars, and co-editing industry white papers.
Innovation Empowers Manufacturing". The Conference was attended by 21 foreign While demonstrating and leveraging the Company's technical advantages and innovation capabilities
experts from nine countries including the USA, Germany, the UK, Switzerland, India, as an industry-leading brand, Gree also learns from the advanced concepts and experiences of industry
Brazil, Saudi Arabia, Bangladesh, and Japan, and over 200 representatives from peers, tirelessly striving to make the world love "Made by China" and "Made by Gree".
standard certification and testing institutions, standardization organizations, universities,
and industrial chain enterprises. The event aimed to share international standardization Gree's positions in industry associations (partial)
practices and explore ideas for green, high-quality, and innovative development in
manufacturing, supporting Chinese standards in gaining global recognition. International level National Level
Chair of the Subcommittee on Refrigeration Vice Chair Unit of the China
Compressor Testing and Evaluation, ISO Machinery Industry Federation
Committee on Refrigeration and Air Conditioning
Technologies, ISO/TC86/SC4 Vice Chair Unit of the China
National Light Industry Council
Chair of the Low Voltage DC Technology
Subcommittee, IEEE PES DC Power Systems Vice Chair Unit of the China
Technology Committee (China) Energy Conservation Association
During the reporting period, Gree participated in various industry
seminars such as the International Standardization Conference, the Leading the development of international standards! The 12th General Assembly of ISO/
Case
Annual Conference of 2023 Chinese Association of Refrigeration, TC 86/SC 4 held successfully in Zhuhai
the 2023 China Heat Pump Forum, and the Appliance Science &
Technology Conference, and its core products and technologies On May 25, 2023, the Subcommittee for Refrigeration Compressors of ISO/TC 86/SC 4 convened its 12th General Assembly,
have appeared in the major exhibitions both domestically and attended by domestic and international experts and representatives. Dong Mingzhu, Chairman and President of Gree,
internationally, such as the 2023 Air-Conditioning, Heating, participated in the meeting as the Chair of the Subcommittee ISO/TC 86/SC 4 and delivered a speech. Participants at the
Refrigerating Expo (AHR), the 34th International Exhibition For meeting shared their insights and suggestions in the field of refrigeration compressor standards.
Refrigeration, Air-Conditioning, Heating and Ventilation, Frozen
Food Processing, Packaging and Storage (China Refrigeration
Expo), the 133rd China Import and Export Fair (Canton Fair), the
International Machine Tool Show.
Gree featured at the 2023 Air-Conditioning, Heating, Refrigerating Expo
under the theme "Gree: Heat Pump Specialist"
Gree launched a new product - industrial large capacity high-temperature
centrifugal heat pump at the 34th International Exhibition for Refrigeration,
Air-Conditioning, Heating and Ventilation, Frozen Food Processing,
Packaging and Storage
Key Performance Wastewater discharge
Index Unit 2021 2022 2023
Economic performance Total wastewater discharge m 3
Chemical oxygen demand
Index Unit 2021 2022 2023 mg/L 79.37 79.01 76.56
(COD)
Total operating revenue CNY '0000 18,965,403.35 19,015,067.25 20,501,812.38 Five-day bod (BOD5) mg/L 28.45 30.84 32.68
Net profit attributable to Suspended matter mg/L 29.15 23.11 22.60
CNY '0000 2,306,373.24 2,450,662.38 2,901,738.76
shareholders of listed companies
Ammonia nitrogen mg/L 7.36 7.51 8.00
Total Cash Dividends (tax included) CNY '0000 1,661,003.32 1,122,768.32 1,314,222.59
Total phosphorus mg/L 0.94 1.01 1.16
Cash dividend for every 10 shares CNY 30.00 20.00 23.80
pH - 7.52 7.57 7.54
Environmental performance
Waste gas emission
Greenhouse gas emissions
Index Unit 2021 2022 2023
Index Unit 2021 2022 2023
Total waste gas 3
Direct (scope 1) Ton of CO2 m 35,195,892,237.12 28,284,810,418.03 28,114,666,183.08
Greenhouse gas emissions equivalent
Particles mg/m3 6.81 5.40 5.52
Energy indirect (scope 2) Ton of CO2
greenhouse gas emission equivalent mg/m 3
hydrocarbon
Ton of CO2
equivalent/ Nitrogen oxides mg/m3 23.56 18.32 17.55
Emission intensity 0.088741 0.076729 0.064113
CNY10,000 3
Sulfur oxide mg/m 4.76 4.31 4.79
revenue
Greenhouse gas emissions directly VOC emissions mg/m3 3.43 3.45 5.20
Ton of CO2
reduced as a result of emission 153,594 113,088 566,831
equivalent
reduction initiatives
Water resources utilization
Waste emission
Index Unit 2021 2022 2023
Index Unit 2021 2022 2023 Purchased municipal water m3 10,324,508.00 9,374,763.00 10,191,754.00
Total general solid wastes Ton 392,865.20 323,848.72 466,865.10
Total hazardous waste Ton 19,448.15 15,375.74 17,571.34
Index Unit 2021 2022 2023
Total electronic waste Kg 1,424,536.35 1,016,992.83 1,010,240.31 Number of incidents resulting
Total amount of electronic waste from violations of environmental / 0 0 0
Kg 4,903.32 2,744.42 8,226.06 protection laws and regulations
recycled
Social performance
Employee composition Employee volunteer activity
Index Unit 2021 2022 2023 Index Unit 2021 2022 2023
Total number of employees Person 81,884 72,380 72,610 Number of participants in
Person-times 96 1,140 113
employee volunteer activities
By gender
Average time spent on employee
Male Person 58,129 50,829 51,923 h/person 0.60 0.48 0.73
volunteer activities
Female Person 23,755 21,551 20,687
By educational background
Intellectual property and innovation
Bachelor's Degree and Above Person 17,274 16,893 16,507
Index Unit 2021 2022 2023
Associate Degree Person 13,095 11,999 12,894
R&D investment CNY 6,528,680,942 6,429,702,080 7,006,497,353
Secondary School Graduates
Person 51,515 43,488 43,209 Number of patents owned
and Below PCS 52,951 61,601 68,055
(authorized)
By professional composition category Number of invention patents
PCS 13,087 16,159 19,568
Production staff Person 59,973 51,931 50,292 owned (authorized)
Annual number of new patents
Administrative staff Person 3,610 3,344 3,393 PCS 9,425 8,650 6,454
(authorized)
Sales staff Person 2,964 3,002 2,528 Number of patents under
PCS 32,439 32,806 33,845
Financial staff Person 1,104 1,126 1,115 examination
Number of copyrights owned PCS 15 10 12
Technical staff Person 14,233 12,977 15,282
Product responsibility and services
Index Unit 2021 2022 2023
Complaint resolution rate % 100 100 100
Index of Indicators
SZSE Content Index
Guidelines No. 1 of the Shenzhen Stock Exchange for the Self-regulation of Listed Companies - Standard Operation of Companies Listed on the Main Board (2022)
Term and Disclosure Sections of the Report Term and Disclosure Sections of the Report
Environmental Investment and Environmental Deepening the Implementation of Environmental
Solidifying Corporate Governance 8.7: (3)
Technology Development Management
Standardizing Business Ethical Behavior 8.7: (4) Pollutant Discharge Management Promoting Green Development Throughout the Life Cycle
Standardizing Business Ethical Behavior Construction and Operation of Environmental
Deepening the Implementation of Environmental Management Protection Facilities
Mechanism Safeguarding the Legitimate Rights and Interests of Employees 8.7: (6) Promoting Green Development Throughout the Life Cycle
Comprehensive Utilization of Waste Products
Empowering Employees' Career Growth
Bravely Assuming Corporate Social Responsibility 8.7: (9) Other Voluntary Disclosures Actively Implementing Green Actions
Management
Safeguarding the Legitimate Rights and Interests of Employees Deepening the Implementation of Environmental
Management
Enhancing Diversified Wellbeing of Employees
Product Safety Laws, Regulations and Industry
Compliance with Environmental 8.10: (1) Creating Extraordinary Products with Craftsmanship
Deepening the Implementation of Environmental Management Standards
Promoting Green Development Throughout the Life Cycle 8.10: (2) Production Environment and Process Creating Extraordinary Products with Craftsmanship
Industry Standards
Product Quality and Safety Guarantee Mechanism
and Accident Emergency Plan
Employee Management System and Measures for
Pollution Prevention and Control Prevention of Occupational Hazards and Related
Facilities Safety Measures
Other Responsibilities for Protecting Employee Rights Safeguarding the Legitimate Rights and Interests of
Other Environmental Protection and Interests Employees
Responsibilities
Environmental Protection Policy,
Objectives and Effectiveness
GRI Standards Index
Instructions for Use Gree reported in accordance with the GRI standards during the period from January 1, 2023, to December 31, 2023.
Use of GRI 1 GRI1: Foundation 2021
GRI GRI
Disclosed item Chapter Index Disclosed item Chapter Index
Standards Standards
GRI 1: Foundation 2021 GRI 203: Indirect Economic Impacts 2016
Bravely Assuming Corporate
GRI 2: General Disclosures 2021 203-1 Infrastructure investments and services supported
Social Responsibility
Behavior
GRI 301: Materials 2016
Promoting Green Development
Upholding People-oriented for A 301-2 Recycled input materials used
Better Life
Promoting Green Development
Throughout the Life Cycle
Role of the highest governance body in overseeing the management of Promoting Green Development
impacts Throughout the Life Cycle
Throughout the Life Cycle
Empowering Employees' Career
Growth 303-2 Management of water discharge-related impacts
Throughout the Life Cycle
Promoting Green Development
Improving Compliance and Risk Throughout the Life Cycle
Control System
Standardizing Business Ethical
Behavior
Promoting the Healthy
Development of the Industry 305-2 Energy indirect (Scope 2) GHG emissions Key Performance
GRI 201: Economic Performance 2016 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air Promoting Green Development
emissions Throughout the Life Cycle
GRI 306: Effluents and Waste 2020
Enhancing Diversified Wellbeing
of Employees 306-2 Management of significant waste-related impacts
Throughout the Life Cycle
GRI GRI
Disclosed item Chapter Index Disclosed item Chapter Index
Standards Standards
Promoting Green Development GRI 404: Training and Education 2016
Throughout the Life Cycle
Promoting Green Development Empowering Employees' Career
Throughout the Life Cycle Growth
GRI 308: Supplier Environmental Assessment 2016 GRI 405: Diversity and Equal Opportunity 2016
Building A Responsible Supply 405-1 Diversity of governance bodies and employees Solidifying Corporate Governance
Chain
GRI 401: Employment 2016 GRI 413: Local Communities 2016
Benefits provided to full-time employees that are not provided to temporary Enhancing Diversified Wellbeing Operations with local community engagement, impact assessments, and Bravely Assuming Corporate
or part-time employees of Employees development programs Social Responsibility
GRI 403: Occupational Health and Safety 2018 GRI 414: Supplier Social Assessment 2016
Safeguarding the Health and Building A Responsible Supply
Safety of Employees Chain
Safeguarding the Health and
Safety of Employees
Safeguarding the Health and Assessment of the health and safety impacts of product and service Creating Extraordinary Products
Safety of Employees categories with Craftsmanship
Safeguarding the Health and GRI 417: Marketing and Labeling 2016
Safety of Employees
Improving the Innovative R&D
Prevention and mitigation of occupational health and safety impacts directly Safeguarding the Health and 417-1 Requirements for product and service information and labeling
linked by business relationships Safety of Employees
Safeguarding the Legitimate
Rights and Interests of Employees
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