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格力电器:2021年年度报告(英文版)2022-06-08  

                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI




GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI

             Annual Report 2021




                   April 2022
                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021




     Section I Important Notice, Table of Contents and Paraphrase


     The Board of Directors, Board of Supervisors, all directors, supervisors and

Senior Management Personnel of the Company hereby guarantee that the

contents are authentic, accurate and complete, and there are no false records,

misleading representations or material omissions in the Annual Report, and

shall take all the joint and several legal responsibilities.

     Dong Mingzhu, the Company's responsible person, Liao Jianxiong,

responsible person in charge of accounting work and Liu Yanzi, in-charge

person of accounting institution (accounting superintendent) hereby declare and

warrant that the financial report in the Report is authentic, accurate and

complete.

     All the directors attended the meeting of the Board of Directors in respect

of deliberation of the Report.

     The forward-looking statements such as future plans and development

strategies in the Report do not constitute a substantive commitment of the

Company to investors. Investors and relevant persons should therefore be aware

of risk factors attendant in investment and understand the differences between

plans, forecasts and commitments.

     The Company's profit distribution proposal passed upon deliberation at the

meeting of the Board of Directors is set out as below: Based on the total number

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                     2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021



of 5,536,677,733 shares of the Company enjoying profit distribution rights as of

April 29, 2022 (the total stock capital of 5,914,469,040 shares excluding the

377,791,307 shares held in the repurchase account of the Company), the

Company plans to distribute all shareholders a cash dividend of RMB 20 (tax

included) per 10 shares, but does not plan to give any bonus share or use any

public reserve funds for capitalization.




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                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021




                                         Table of Contents




Section I Important Notice, Table of Contents and Paraphrase ............................. 1

Section II Company Profile and Main Financial Indices ........................................ 6

Section III Management Discussion and Analysis.................................................. 12

Section IV Corporate Governance ........................................................................... 72

Section V Environmental and Social Responsibility .............................................. 99

Section VI Important Matters .................................................................................111

Section VII Changes in Shares and Shareholders ................................................ 141

Section VIII Related Information of Preferred Share ......................................... 153

Section IX Related Information on Bonds ............................................................ 154

Section X Financial statement ................................................................................ 155




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                                                       References


(I) The accounting statements signed and sealed by Dong Mingzhu, the legal representative, Liao Jianxiong, chief accountant and Liu
Yanzi, head of accounting department.
(II) The original audit report sealed by China Audit Union Power Certified Public Accountants Co., Ltd. and signed and sealed by
certified public accountants Han Zhenping and Qiu Yiwu.
(III) Originals and original drafts of all the Company's documents and announcements published on the newspapers designated by
CSRC and on www.cninfo.com.cn within the Report Period.




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                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021




                                                  Paraphrase


                   Items                     Means                                Contents

Company, the Company, the enterprise, GREE
                                             Means GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI
ELECTRIC APPLIANCES or GREE

GREE GROUP                                   Means Zhuhai Gree Group Co., Ltd.

Zhuhai Mingjun                               Means Zhuhai Mingjun Investment Partnership (Limited Partnership)

Finance Company                              Means Zhuhai Gree Group Finance Company Limited

Jinghai Internet                             Means Jinghai Internet Technology Development Co., Ltd.

GREE Altairnano, GREE Altairnano New                 GREE Altairnano New Energy Inc. (former name: Yinlong New Energy
                                             Means
Energy                                               Co., Ltd.)

CSRC                                         Means China Securities Regulatory Commission

Report Period                                Means January 1, 2021 to December 31, 2021




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               Section II Company Profile and Main Financial Indices

I. Company information

          Stock Abbreviation        GREE ELECTRIC APPLIANCES                     Stock Code           000651

Stock Exchange                      Shenzhen Stock Exchange

Name in Chinese                     珠海格力电器股份有限公司

Name Abbreviation in Chinese        格力电器

Name in Foreign Language (if any) GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI

Name Abbreviation in Foreign
                                    GREE
Language (if any)

Legal Representative                Dong Mingzhu

                                    Room 608, No. 108, Huitong Third Road, Hengqin New Area, Zhuhai City, Guangdong
Registered Address
                                    Province

Post Code of Registered Address     519031

Historical Changes of the           On August 26, 2021, it was changed from Jinji West Road, Qianshan, Zhuhai City, Guangdong
Company's Registered Address        Province to its current registered address

Business Address                    Jinji West Road, Qianshan, Zhuhai City, Guangdong Province

Post Code of Office Address         519070

Website                             http://www.gree.com.cn

Email                               gree0651@cn.gree.com


II. Contacts and contact information

                                                           Board Secretary                    Securities Affairs Representative

Name                                         Deng Xiaobo                               Zhang Zhouhu, Yan Zhangxiang

                                             Jinji West Road, Qianshan, Zhuhai City,   Jinji West Road, Qianshan, Zhuhai City,
Address
                                             Guangdong Province                        Guangdong Province

Tel.                                         0756-8669232                              0756-8669232

Fax                                          0756-8614998                              0756-8614998

Email                                        gree0651@cn.gree.com                      gree0651@cn.gree.com


III. Information disclosure and place of the report

Website of the stock exchange to which the             China Securities Journal, Securities Times, Shanghai Securities News and
Company's Annual Report is disclosed                   Securities Daily

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Media to which the Company's Annual Report is
                                                          http://www.cninfo.com.cn
disclosed and their website

Place where the Annual Report is available for
                                                          Investment Management Department of the Company
inspection


IV. Alteration of registration

Organization code                             91440400192548256N

Changes (if any) in the main business since
                                              No change
listing of the Company

                                              On December 2, 2019, Gree Group and Zhuhai Mingjun signed the Share Transfer
                                              Agreement. Gree Group planned to transfer 902,359,632 shares of the Company with
                                              unlimited sales conditions held by Gree Group to Zhuhai Mingjun at a price of RMB
                                              46.17/share; On December 13, 2019, the Zhuhai Municipal People's Government and
                                              the State-owned Assets Supervision and Administration Commission of the State
Changes (if any) in the controlling           Council (SASAC) of Zhuhai City separately approved the share transfer.
shareholders                                  Gree Group obtained the Transfer Registration Confirmation issued by China
                                              Securities Depository and Clearing Corporation Limited (CSDC) Shenzhen Branch on
                                              February 3, 2020. The share transfer registration procedures for the transfer of this
                                              agreement have been completed, and the transfer date is January 23, 2020. After the
                                              completion of the share transfer registration, the Company has neither a controlling
                                              shareholder nor an actual controller.


V. Other related information

Accounting firm engaged by the Company

Name of the Accounting Firm           Union Power Certified Public Accountants (Special General Partnership)

Office Address                        No. 169 Donghu Road, Wuchang District, Wuhan City

Names of Accountants as
                                      Han Zhenping, Qiu Yiwu
Signatories

Sponsor engaged by the Company to perform continuous supervision during the Report Period
□ Applicable √ Not applicable
Financial adviser engaged by the Company to perform continuous supervision during the Report Period
□ Applicable √ Not applicable


VI. Main accounting data and financial indices

Whether the Company has retroactive adjustment or restatement of previous accounting data
□ Yes √ No

                                                                                        Increase/Decrease over
                                               2021                     2020                                              2019
                                                                                           the previous year

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Operating Revenue (Yuan)                 187,868,874,892.71      168,199,204,404.53                    11.69%      198,153,027,540.35

Net profit attributable to
shareholders of listed Company            23,063,732,372.62        22,175,108,137.32                    4.01%       24,696,641,368.84
(Yuan)

Net profit attributable to
shareholders of listed Company
                                          21,850,050,895.31        20,285,816,036.00                    7.71%       24,171,511,911.32
less non-recurring gains and losses
(Yuan)

Net cash flow generated from
                                           1,894,363,258.72        19,238,637,309.16                  -90.15%       27,893,714,093.59
operating activities (Yuan)

Basic earnings per share (Yuan per
                                                         4.04                    3.71                   8.89%                      4.11
Share)

Diluted earnings per share (Yuan
                                                         4.04                    3.71                   8.89%                      4.11
per Share)

Weighted average return on net
                                                     21.34%                   18.88%                    2.46%                  25.72%
assets

                                                                                        Increase/Decrease over
                                        At the end of 2021      At the end of 2020                                At the end of 2019
                                                                                          the previous year

Total asset (Yuan)                       319,598,183,780.38      279,217,923,628.27                    14.46%      282,972,157,415.28

Net asset attributable to
shareholders of listed Company           103,651,654,599.87       115,190,211,206.76                  -10.02%      110,153,573,282.67
(Yuan)

The net profit of the Company before and after deducting non-recurring profits and losses in the last three fiscal years, whichever is
lower, is negative, and the audit report of the last year shows that the Company's ability to continue as a going concern is uncertain
□ Yes √ No
The net profit before and after deducting non-recurring profits and losses, whichever is lower, is negative
□ Yes √ No


VII. Accounting data differences under domestic and foreign accounting standards

1. Differences in net profit and net assets in the financial report disclosed under international accounting
standards and that disclosed under domestic accounting standards

□ Applicable √ Not applicable
There was no difference in net profit and net assets in the financial report disclosed under international accounting standards and that
disclosed under domestic accounting standards during the Report Period.


2. Differences in net profit and net assets in the financial report disclosed under overseas accounting
standards and that disclosed under domestic accounting standards

□ Applicable √ Not applicable

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There was no difference in net profit and net assets in the financial report disclosed under overseas accounting standards and that
disclosed under domestic accounting standards during the Report Period.


VIII. Quarter-based main financial indicators

                                                                                                                             Unit: Yuan

                                              Quarter 1                Quarter 2              Quarter 3                Quarter 4

Operating revenue                         33,189,408,213.61        57,862,663,732.52        47,082,608,837.26        49,734,194,109.32

Net profit attributable to
                                             3,442,899,755.09         6,013,919,597.77       6,187,957,163.99         7,418,955,855.77
shareholders of listed company

Net profit attributable to
shareholders of listed companies
                                             3,299,482,181.81         5,492,272,396.33       5,970,530,098.50         7,087,766,218.67
after deduction of non-recurring
profit and loss

Net cash flows from operating
                                          -4,265,483,021.72        -1,805,736,890.49        12,533,051,153.77        -4,567,467,982.84
activities

Whether major differences exist between the above financial indicators or their sum and those in the disclosed quarterly report and
semi-annual report
□ Yes √ No


IX. Non-recurring profit and loss items and amounts

√ Applicable □ Not applicable




                                                                                                                             Unit: Yuan

                      Item                        Amount in 2021        Amount in 2020      Amount in 2019            Description

Gains and losses from disposal of                                                                               For details, see Note
non-current assets (including the provision           -7,498,891.48         -4,974,224.62       -9,293,929.38 (V) 63, Note (V) 64,
for asset impairment write-off part)                                                                            and Note (V) 65

Governmental subsidies recorded into the
current gains and losses (excluding the
governmental subsidies closely relating to
                                                                                                                For details, see Note
the normal business operations of the
                                                    875,778,734.20       1,346,168,393.38    1,215,852,371.66 (V) 58 and Note (V)
company, conforming to national policies
                                                                                                                64
and regulations, and enjoyed by a fixed
quota or a fixed amount in accordance with
a certain standard)



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                                     2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Capital occupation fee collected from the
non-financial institution and recorded into              6,234,097.19            883,505.62          359,713.10
the current gains and losses

Gains and losses caused by fair value
changes from the holding of trading
financial assets and trading financial
liabilities, and investment income obtained
from the disposal of trading financial assets,         369,460,356.97       877,450,950.74         1,449,722.86
trading financial liabilities, and
available-for-sale financial assets, except for
the effective hedging business related to the
Company's normal business operations

Reversal of impairment provision for the
accounts receivable for which an                        16,844,984.00
independent impairment test is conducted

                                                                                                                   For details, see Note
Non-operating incomes and expenditures
                                                        58,510,843.19          50,024,914.68   -530,486,147.03 (V) 64 and Note (V)
other than the above items
                                                                                                                   65

Other profit and loss items that conform to
the definition of non-recurring profit and              13,691,263.12          17,915,425.64         997,770.17
loss

Less: Influence amount of income tax                    82,923,289.84       386,974,457.37      147,189,032.83

Influence amount of minority equity                     36,416,620.04          11,202,406.75       6,561,011.03

Total                                                1,213,681,477.31      1,889,292,101.32     525,129,457.52               --

Details of other profit and loss items that conform to the definition of non-recurring profit and loss:
 √ Applicable □ Not Applicable

                    Item                          Amount in    Amount in the                              Reason
                                                 current report same period of
                                                    period      the previous
                                                                    year

Other profit and loss items that conform to 13,691,263.12 17,915,425.64 Returned commission charges of personal income tax, etc.
the definition of non-recurring profit and
loss



The Company has no other profit and loss items that conform to the definition of non-recurring profit and loss.
Description of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and Loss as recurring profit and loss items
□ Applicable √ Not applicable
No non-recurring profit and loss items which are listed in the Explanatory Announcement No. 1 on Information Disclosure for
Companies Offering Their Securities to the Public - Non-recurring Profit and Loss were defined by the Company as recurring profit

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and loss items.




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                 Section III Management Discussion and Analysis

I. Industry of the Company during the report period

(I) Consumption field

    Gree's products in the consumption field cover residential air conditioners, HVAC, refrigerators, washing
machines, water heaters, kitchen appliances, and environment appliances, etc.

     According to the Report on China's Household Appliance Market in 2021 issued by China Center for
Information Industry Development, in 2021, the household appliance market of China recovered in an all-round
way, with the retail scale volume reaching 881.1 billion yuan, a year-on-year increase of 5.7%, basically returning
to the level before the COVID-19 pandemic.

     Sales of air conditioners returned to the level before the COVID-19 pandemic, and exports became the main
growth engine. According to the statistics of ChinaIOL.com, the sales volume of residential air conditioners was
152,590,000 in 2021, a year-on-year increase of 7.9%, which was also slightly higher than that in 2019; export
was the main growth engine of residential air conditioner industry, in 2021, the export volume of residential air
conditioners was 67,890,000, a year-on-year increase of 11.0%; domestic sales volume was 84,700,000, a
year-on-year increase of 5.5%. In 2021, the sales volume of central air conditioner was about RMB 123.2 billion,
with a year-on-year increase of 25.4%.

     The retail sales of household appliances in online channels once again exceeded those in offline channels in
China. The growth rate of online and offline market scale has changed from negative to positive. Moreover, under
the continuous and profound impact of COVID-19 pandemic, the retail sales of online channels in China
accounted for 52.9% of the entire household appliance market in 2021, with a proportion more than 50% for two
consecutive years.

     High quality household appliances are favored, and emerging household appliances continue to sell well.
Among traditional household appliances, products with larger size, larger capacity and higher quality, such as
inverter air conditioners, multi-door refrigerators, high-capacity washing and drying integrated washing machines
and high suction range hoods, are favored. Among the emerging household appliances, the demand for fresh air
conditioners, partitioned washing machines, clothes dryers, water purification and hot water all-in-one machine,
multi-functional high speed blenders, air fryers, integrated stoves, floor scrubbers, cosmetic instruments and pet
appliances is more fine sorted, and the products with improved quality continue to sell well.

      The policy of green intelligent household appliance going to the countryside will be launched, and the
potential of the sinking market is huge. The household appliance market of the sinking market, which accounts for
70% of China's population, reached RMB 277.5 billion in 2021, accounting for 31.5%, with a year-on-year
increase of 8.9%, which is much higher than the overall market, becoming the most important growth pole of the
household appliance market. Universal household appliances are still the main sales in the sinking market, and
there is still a large gap between the number of main household appliances per 100 households in rural areas and
that in cities. For example, the number of air conditioners owned by 100 households in cities is 150, while that in
rural areas is only 74. The penetration rate of kitchen appliances, environment appliances and personal care
appliances in rural areas is lower. With the continuous improvement of rural residents' consumption capacity, the
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                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


gradual improvement of network and logistics infrastructure, and the rapid integration of urban and rural
household appliance consumption concepts, the sinking market has become the household appliance consumption
market with the largest population base, the largest area and the greatest potential in China. On March 5, 2022,
Premier Li Keqiang proposed in the Government Work Report to encourage local governments to carry out the
policy of green intelligent household appliance going to the countryside and old for new service, which will
certainly promote the further growth of the sinking market of household appliances.

(II) Industrial field

     Gree's products in the industrial field cover high-end equipment, precision moulds, compressors, motors,
industrial energy storage, new energy buses, and new energy special vehicles, etc.

      The intelligent equipment sector continues to grow. The combination of post-pandemic economic recovery
and industrial transformation and upgrading, coupled with the promotion of national strategies such as "Made in
China 2025" and the Development Plan on Smart Manufacturing During the "14th Five-Year Plan", China's
intelligent equipment sector has achieved rapid development. According to the data of the National Bureau of
Statistics, the added value of China's equipment manufacturing industry increased by 12.9% year-on-year in 2021,
accounting for 32.4% of the added value of industries above designated size; the output of industrial robots was
366,000 sets, a year-on-year increase of 67.9%.

      Technology-intensive industries drive the development of intelligent equipment. The demand increment of
intelligent equipment in 2021 mainly comes from technology-intensive industries such as new energy vehicles, 3C
electronics and medicine. According to the data of the GGII, in 2021, the sales volume of industrial robots in
China exceeded 261,000 sets, with a year-on-year increase of more than 53%, accounting for more than 50% of
the global sales volume, and China has become the world's largest consumer of industrial robots for 8 consecutive
years.

    The development direction of intelligent equipment is to meet the needs of industrial upgrading. The
development demand of industrial manufacturing is improvement of production efficiency, improvement of
product quality and customized production. Intelligent equipment is the carrier to realize the demand of industrial
manufacturing, and will develop in the direction of high precision, high stability and flexible production.

      China's intelligent manufacturing industry has clear objectives and great growth potential. The development
level of high-end intelligent equipment is not only the standard to measure the development level of a country's
manufacturing industry, but also the basis for industrial upgrading of a manufacturing power. Therefore, it has
been strongly supported by national policies. It is clearly stated in the Development Plan on Smart Manufacturing
During the "14th Five-Year Plan" that by 2025, 70% of manufacturing enterprises above designated size will be
generally digitalized and networked, and build more than 500 intelligent manufacturing demonstration plants
leading the development of the industry. Driven by national policies and industrial upgrading needs, China's
intelligent manufacturing industry has great growth potential in the future.

     Industrial upgrading will accelerate the survival of the fittest in the mould industry. China is a big country in
mould manufacturing and trade in the world. According to the data of Zhongshang Industry Research Institute, the
market scale of China's mould industry is expected to be RMB 302.833 billion in 2021, with a year-on-year
increase of 9.5%. With the implementation of national intelligent manufacturing and industrial upgrading policies,
leading enterprises in the industry will increase R&D investment, accelerate the automation upgrading of
production lines, and improve the development level of new products; the industry will accelerate the survival of
the fittest, and market resources will gradually concentrate on advantageous enterprises in the industry, which is
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conducive to the development of advantageous enterprises.

     The sector of core air conditioning parts returned to growth. Thanks to the effective control of the domestic
COVID-19 pandemic and the comprehensive recovery of the downstream household appliance industry, the
market has improved compared with 2020, but it has not completely recovered. According to the 2021 statistics of
ChinaIOL.com, the sales volume of rotor compressors in China was 238,570,000, a year-on-year increase of
12.8%; the sales volume of air conditioner motor in China was 392,290,000, a year-on-year increase of 10%. With
the implementation of new energy efficiency policy and carbon peaking and carbon neutrality policy, and the
continuous rise of global raw materials, the upgrading of product structure is imperative.

     Under the strong impetus of the national "carbon peaking and carbon neutrality" strategy, green industries
such as energy storage and new energy vehicles have ushered in unprecedented development opportunities.

     The state has made clear the development objectives of the energy storage industry, and the industry will
accelerate its development. In July 2021, the National Development and Reform Commission and the National
Energy Administration jointly issued the Guidance on Accelerating the Development of New Energy Storage,
which defined and quantified the development objectives of the energy storage industry for the first time at the
national level. It is expected that the installed capacity of new energy storage will reach more than 30,000,000
KW (30 GW) by 2025. From 3.28 GW at the end of 2020 to 30 GW in 2025, the scale of the new energy storage
market will be expanded to 10 times the current level in the next five years, with an average annual compound
growth rate of more than 55%. Positive policy signals will guide the inflow of social capital and boost the rapid
arrival of trillion energy storage market.

      The sales volume of new energy special vehicles reached a new high, leading the new energy commercial
vehicle market. Driven by the introduction of new energy logistics vehicle policies, the expansion of urban
distribution scale, the new regulations for blue license plate light trucks and the rise of switching mode for heavy
trucks, new energy special vehicles have achieved explosive growth, according to the terminal license plate
enrolling data, the cumulative sales of new energy special vehicles in 2021 were 160,700, with a year-on-year
growth of 125.6%. Due to the decline of subsidies and the gradual saturation of the market, the sales volume of
new energy buses above 6 meters decreased by 17% year-on-year. Enterprises with new energy special vehicles,
new energy buses, and new energy auto parts simultaneously can quickly adapt to market changes.

II. Major businesses engaged in during the Report Period

      Gree Electric Appliances, Inc. of Zhuhai is a diversified and technological global industrial group and has
three major consumer brands: Gree, TOSOT and KINGHOME, and industrial brands: LANDA, Kaibang, and
Xinyuan, etc. In consumption field, it covers residential air conditioners, HVAC, refrigerators, washing machines,
water heaters, kitchen appliances, environment appliances, communication products, smart buildings, and smart
household appliances; in industrial field, it covers high-end equipment, precision moulds, freezers and
refrigeration equipment, motors, compressors, capacitors, semiconductor devices, precision casting equipment,
basic materials, industrial energy storage, and renewable resources. Gree's products are sold in more than 180
countries and regions, providing global consumers with satisfactory products and services, for the purpose of
creating a better life.

     In 2021, Gree was again listed in the Forbes Global 2000 - World's Best Employers and ranked the 252th,
and listed in the Fortune Global 500 and ranked the 488th by virtue of its outstanding comprehensive strength.


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     According to the data released by HVAC Information, Gree was the only brand with a sales scale of more
than RMB 20 billion in China's central air conditioning industry in 2021 and has maintained the position for ten
consecutive years in the Chinese market, among them, Gree ranked first among national brands with a share of
more than 20% in VRF, and was far ahead of the second with a share of 34.8% in unitary air conditioner.
According to the 2021 domestic sales data of air conditioner published by ChinaIOL.com, Gree air conditioners
ranked the first in the field with a share of 37.4%, taking the lead for 27 years.

     In 2021, Gree continued to enrich the categories of home appliances, strengthened the marketing of new
media channels, and achieved good results. According to the data of All View Cloud, in 2021, Gree's online retail
sales share of electric heaters, electric fans, dehumidifiers, air source water heaters and other products ranked
among the top two in the industry.

     Gree takes "To be Global Leading Air Conditioning Enterprise" as its corporate vision, and "carrying forward
the industrial spirit, mastering core technologies, pursuing perfect quality, providing first-class services, and
achieving ‘Made in China, Loved by the World’" as its mission. By adhering to the management philosophy that
"innovation never stops", Gree focuses on independent innovation and development, in order to grasp the pulse of
the times, build a world brand and create a development model with Chinese characteristics for Chinese
manufacturing enterprises.

III. Core competence analysis

     Facing new opportunities and challenges, Gree takes "mastering core technologies and forging perfect
quality" as the two wheels for driving, transfers and improves the value through unique marketing model, sticks to
independent people cultivation, independent innovation and independent production, and takes "carrying forward
the industrial spirit, mastering core technologies, pursuing perfect quality, providing first-class services, and
achieving Made in China, Loved by the World" as its mission to stride forward.

(I) World famous brand, continuing to create value for the society

     Gree is a diversified technological global industrial group integrating R&D, production, sales and service.
Gree has won a great number of honors such as "World Brand", "Most Competitive Brand in the Market",
"National Quality Award", "Export Inspection Exemption Enterprise" and "China Brand Innovation Award" over
these years.

    In 2021, Gree was again listed in the Forbes Global 2000 and ranked the 252th, and listed in the Fortune
Global 500 and ranked the 488th by virtue of its outstanding comprehensive strength.

    In May 2021, the "2021 China Brand Value Evaluation Information List" jointly sponsored by Xinhua News
Agency, China Council for Brand Development, China Appraisal Society and SASAC News Center was released,
and Gree ranked first in the household appliance industry, with a brand value of RMB 120.778 billion, an increase
of RMB 6.675 billion compared with last year.

    Gree has always been adhering to the core sense of worth of “quality first, customer satisfaction, good faith
management, and win-win situation”, and forging its brands and creating social value, environmental value and
economic value for the society and consumers depending on its perfect quality and world-leading technologies.

(II) Excellent R&D strength, continuously leading technological innovation of the industry

    Gree insists on "independent research and development of core technologies", and has set up a technological
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innovation system of "enterprise regarded as the main player, market as the orientation,
enterprise-university-research cooperation". It insists on innovation driving, cultivates innovative talents,
implements the leader strategy, and constantly consolidates its global leading position in the field of refrigeration.

     Gree boasts the largest R&D center of air conditioners in the world, including 4 national R&D centers, 1
academician workstation, 16 research institutes, nearly 1,000 laboratories. Its national R&D centers are the
National Key Laboratory on Air Conditioning Equipment and Energy-saving System Operation, National
Engineering Research Center of Green Refrigeration Equipment, State Recognized Enterprise Technology Center
and National Industrial Design Center. In 2021, Gree was approved to establish Guangdong Key Laboratory for
Enterprises of High-speed Energy Saving Motor System.

     Gree Electric continued to lead the industry in testing, certification and standards. Gree has built more than
300 professional laboratories for thermal balance, noises, reliability, electrical safety, electromagnetic
compatibility, etc., and has been successively recognized by a variety of national or international organizations
(including CNAS, TUV, UL, CSA, VDE, ITS, SGS, BV, and AHRI, etc.), growing into the largest experimental
center in the industry that can provide the most complete tests and receive the largest number of national and
international recognitions. Gree has actively led or participated in the formulation of more than 570 international
standards and national standards. In terms of international standards, Gree took the lead in formulating two
international standards for photovoltaic direct-drive technology, laying a solid foundation for Gree's photovoltaic
air conditioning products to enter the international market; it participated in the formulation and revision of 13
international standards for household appliances and national standards for air conditioning in the United States
and Canada, and continuously made new breakthroughs and new competitive advantages in international
standardization. Gree has successively become the research and evaluation base of the National Notification
Enquiry Center, the first batch of National Demonstration Base for Standardization of Consumer Goods, the
National Energy Conservation Standardization Demonstration Pilot and the National Pilot Enterprise for
Standardization of High-end Equipment Manufacturing Industry.

     By the end of 2021, Gree had won 99 important awards at the national, provincial and industrial levels; had
accumulatively applied for 96,626 domestic and foreign patents, including 49,549 invention patents, had obtained
13,507 invention patent grants at home and abroad and become the first household appliance enterprise in China
with more than 10,000 invention patents granted; had won 65 Chinese patent awards in total, including two gold
awards for invention and three gold awards for appearance, ranking first in the air conditioning industry in terms
of the total number of awards; had won 11 gold awards at the International Exhibition of Inventions of Geneva
and 6 iENA at the iENA. At the same time, Gree is one of the first batch of national enterprise intellectual
property demonstration unit, "National Patent Operation Pilot Enterprise", and won the China Trademark Gold
Award.

(III) Leading PQAM perfect quality assurance mode, achieving “Made in China, Loved by the World”

     Gree always adheres to the principle of "quality first" and "integrity management", and constantly optimizes
the quality management system and innovates the quality control mode based on customer demand.

     Gree adheres to the quality policy of "pursuing the perfect quality, creating an international brand, and
forging a century enterprise", take "best service not requiring after-sales service" and "zero defect" as the quality
goal, always sticks to the quality culture of "strict, true and new" oriented to customer demand and social
responsibility, with independent talent training as the core, establish an all-round quality education and training
system. In the process of "practice - summary and innovation - practice again - summary and innovation again", a

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comprehensive quality management model of independent innovation with Gree characteristics has been gradually
formed, and the T9 comprehensive quality control system centered on the quality technology innovation cycle
D-CTFP has been created and implemented.

      Quality is related to "two lives", one is the life of consumers and the other is the life of enterprise. The
quality level of Gree's products has been steadily improved by strengthening the internal quality control, and the
after-sale failure rate has been declining for many consecutive years. In March 2021, Gree put forward the
"ten-year free repair policy" for residential air conditioners, which led the progress of domestic air conditioning
service standards and reflected the strength of Gree's air conditioning product quality and after-sales service
beyond national standards.

     Gree adheres to the original intention of "taking consumer demand as the highest standard" and contributes to
the high-quality development of Made-in-China products with the spirit of "conduct self-examination". In 2018,
Gree won the “China Quality Award” issued by the State Administration for Market Regulation relying on its
perfect quality management mode of "Made in China, Loved by the World"; in 2020, based on the "perfect quality
management mode", Gree participated in the drafting and development of the Quality Management - Innovation
Cycle Guide Based on Customer Demand as a national standard, with a view to publicizing Gree's advanced
quality management experience throughout the industry and promoting continuous improvement of the quality
level of the whole industry. In November 2021, Gree won the title of "National Market Quality Credit AAA Grade
User Satisfaction Benchmarking Enterprise", which demonstrated consumers' recognition of Gree's high-quality
products and Gree's strong strength as an industry leader.

(IV) The full series of household appliances, providing consumers with overall solutions for high-quality life

      Gree can provide a full range of household appliances including residential air conditioners, HVAC,
refrigerators, washing machines, environment appliances, kitchen appliances and home appliances, fully meeting
consumers’ all-round needs for high quality life. The new household appliances launched in 2021 include Real
Purify formaldehyde removal air conditioner, Freair series two-way fresh air conditioner, Wisdom Wind air
conditioner for the aged, Painting Era AI audio-visual air conditioner, Kinghome refrigerator with all-round
freshness preservation, Almighty King Shuzun II air source water heater, Automatic Drum Washer&Heat Pump
Clothing Care Dryer, EcoSilence Drive washing machine, Jinghuan Series dishwasher, steam oven, gas stove with
anti-burning protection, sweeping robot, water softener, central water purifier, desktop water dispenser, car air
purifier, tower air cooler with cooling and heating function, graphene baseboard heater, household dryer, sparkling
water maker, air fryer, ultrasonic cleaner, and health pot, etc., facilitating the consumers in their colorful life.

     In addition, under the background of consumption upgrading and seriation becoming the general trend of the
industry, Gree launched five sets of household appliance products, including " Gree Serenity", "Gree Pearl",
"Gree Times", "Gree Stars" and "Gree Brevity", which fully concerned the intelligent, convenient, comfortable
and healthy personalized household needs of consumers, and created a new home experience for consumers with
the ultimate quality and aesthetic perception.

     Gree Smart Home has made in-depth layout in smart home system, smart home network, smart voice
interaction, smart scene scheme and smart product technology, launched a series of smart home products, and
independently created smart IoT technologies such as IoT platform, smart decision system, G-Voice voice
interaction system, smart vision system, G-OS IoT operating system and G-Learning comfort and energy-saving
algorithm, creating a high-quality life of Internet of Everything (IoE) for consumers.

     At present, Gree has laid out six technologies in the field of smart home, including smart connect, smart
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sense, smart interaction, smart cloud platform, smart energy and artificial intelligence. It also has five control
accesses, including "Gree +" App, smart voice control air conditioner, IoT mobile phone, smart door lock and
magic cube, which can cover the whole series of Gree smart products.

     Gree will build Gree's "healthy, smart and comfortable home" ecological home system for consumers from
the all-round multi-system product lines of air conditioner, floor heating, fresh air, water purification and smart,
combined with the six-constant system concept of "constant temperature, constant humidity, constant oxygen,
constant cleanliness, constant mute and constant smart" in the new era.

(V) With the self-controlled new retail system, growth is driven by data

     Gree insists on the sales channel construction and sales model of independent management, mutual benefit
and win-win and creates a solid online and offline business layout. The two channels complement each other and
are deeply integrated to create a full channel sales platform.

     Gree has established an offline sales network covering the whole country, providing service for consumers
through its 27 sales companies and more than 30,000 exclusive stores. “Gree Dong Mingzhu's store” has been
transformed and upgraded into a comprehensive online retail e-commerce platform, selling high quality
commodities of various categories and varieties such as household appliances, food and beverage, beauty and
personal care products, clothing boutiques, and online travel products. As the market environment changes, Gree
has started the "new retail" marketing mode reform of online and offline integration. The online third-party
e-commerce platform and “Gree Dong Mingzhu's store” are deeply integrated with more than 30,000 offline
stores to provide online-offline linkage integrated services including offline experience, online ordering, and
nationwide unified distribution and installation.

      Information, digital and intelligent technologies have been deeply applied to Gree's "new retail" marketing
mode. The whole chain construction and operation of new retail including the shopping mall platform, order
fulfillment system, online wholesale system, and after-sales dispatch system realizes user reaching of Gree’s new
retail online, the informatization capability empowers the channel business to drive the digital upgrade of
marketing. Relying on the Internet engineering technology and integrating the artificial intelligence, Internet of
Things and AR/VR technology, Gree promotes the digital upgrade of terminal stores through the intelligent touch
interaction mode offline, achieves the functions of product sampling, price adjustment, training, user value tag
precipitation and management in the cloud, builds Gree’s characteristic smart shopping guide stores, and
constantly improves consumers' shopping experience; uses the functions of inventory data analysis and early
warning, dynamic display and analysis of sales data and conduct data-driven operation to meet the new needs of
consumers continuously.

(VI) Precise production capacity layout and leading intelligent manufacturing level to response to market
demand rapidly

    At present, according to the market demand characteristics of different products, differences in regional
production factor endowments and other factors, Gree has established production and manufacturing bases for air
conditioners, home appliances and industrial products in Zhuhai, Chongqing, Hefei, Zhongshan, Zhengzhou,
Wuhan, Shijiazhuang, Wuhu, Changsha, Hangzhou, Suqian, Luoyang, Nanjing, Chengdu, Ganzhou, Linyi, Brazil
and Pakistan, forming the highly coordinated development of industrial agglomeration and upstream and
downstream industrial chains, which ensures the independent manufacturing of core parts and drives the
development of local economy.


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     Gree uses the industrial robots, intelligent logistics and warehousing and other intelligent equipment
independently developed and manufactured to continuously upgrade and transform the existing factories and build
demonstration smart household appliance factories. By 2021, Zhuhai base has been recognized as "industrial
Internet platform + green and low-carbon solution pilot demonstration" by the Ministry of Industry and
Information Technology, and Wuhu base, Chongqing base, Hangzhou base and Hefei base have been recognized
as provincial "smart factory" successively.

     Precise production capacity layout and leading intelligent manufacturing level further enhanced Gree's
manufacturing and cost advantages, realized the rapid response to market demand and brought high-quality life
enjoyment to consumers.

(VII) With strong self-research and self-made ability of core components, the comprehensive
competitiveness of products continues to lead the industry

    The core components of products include compressor, air conditioner motor, robot servo system, robot
motion control system, reducer, direct drive motor spindle and linear motor, etc.

      Gree has been deeply engaged in the field of compressor and air conditioner motor for many years, its
capacity, technology and quality of compressor and air conditioner motor have always led the industry, and has
successively won honors such as "National Quality Award", "National High-tech Enterprise", and "National
Quality Benchmark", has built national laboratory testing centers such as "National CNAS Testing Center", "the
first UL-CTDP recognized laboratory in the domestic motor industry", and has obtained 2501 invention patent
grants, showing the hard power and brand influence of Gree's industrial product development.

     10 products independently developed by Gree, including the "high efficiency scroll compressor",
"high-performance linear servo motor and driver", "high-performance servo motor and driver for industrial robot"
and "rare earth free permanent reluctance main drive motor system for new energy bus" were appraised as the
"world-leading" level, indicating that Gree has fully mastered the advanced technology from core components to
products.

     Gree not only has strong R&D capability of core components, but also has excellent processing and
manufacturing capability. For example, Gree five-axis 3D curved surface processing machine tool is suitable for
machining precision parts with complex curved surfaces, with a repeated positioning precision of up to 0.002 mm
and cutting feed rate of up to 80 m/min, which can ensure the high quality of core components such as centrifugal
compressor blades.

     In the diversified sector, the robot servo system currently developed by Gree has covered 600 kg-level
industrial robots, which is a special robot servo system with the largest power range in the industry; Gree's
self-developed multi-axis integrated linear servo system for machine tools has reached the "international leading"
level in key performance indices such as maximum speed, thrust density and thrust fluctuation; Gree's
self-developed precision harmonic reducer has the characteristics of compact structure, high geometric accuracy,
small back clearance and high torque; and Gree has successfully completed the development of Gree's first robot
motion control system with independent intellectual property rights. The research and development of core
components of robots and machine tools has successfully broken the technological monopoly of foreign brands
and improved the competitiveness of national brands.

    The powerful R&D and manufacturing capabilities of core components ensure the high independent rate and
comprehensive competitiveness of Gree's products, and provide vigorous support for the leapfrog development of

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Gree.

(VIII) Advanced cost and supply chain management to provide guarantee for the steady development of the
Company

     Gree adheres to the orientation to market demand, establishes and improves an objective-driven cost
planning and management system in consideration of the Company's business objectives: deepen product cost
control, carry out value chain analysis, decompose and analyze the impact of cost input, conversion and output of
various business links inside and outside the group on the final value of products, so as to improve operations,
reduce costs, realize value-added of value chain and form a sustainable competitive advantage.

     With the goal of building an industry-leading supply chain, Gree plans supply chain management and
optimizes supply chain resources, expands the layout of upstream and downstream industries, carries out strategic
cooperation with leading enterprises in the industry, and establishes in-depth cooperative relations and resource
sharing with high-quality suppliers, so as to maximize the interests of both sides and achieve mutual benefit and
win-win results.

     Promote the optimization of supply chain management with informatization. Gree realizes the automatic
collection, correlation, analysis, monitoring and push of internal and external quality information related to
materials through the technical means of big data, so as to promote the continuous improvement of material
quality. Enhance the competitiveness of the supply chain through mutual promotion with partners.

      In 2021, affected by global trade friction, geopolitics, COVID-19 and other factors, the global economy was
frustrated, the price of bulk raw materials soared, and market competition and cost pressure were transmitted to
the whole supply chain step by step. Gree continued to give full play to the scale advantage of centralized
procurement, and implemented measures such as localization of key imported materials, generalization of
structure and materials, and multi-regional supply, which effectively alleviated the pressure on operation caused
by environmental changes.

     In addition, Gree has further promoted the cost reduction of product design by improving product structure
design, optimizing process links, developing lean models and developing outdoor units in series; reduced the
production cost by improving the utilization rate of materials, improving the automation level and improving the
production process.

(IX) Independent talent training system to realize the supply of high-quality talents

     Gree always adheres to the principle of "focusing on the strategic layout of the Company and adhering to
independent training of talents" and gradually forms an independent talent training mode with independent talent
introduction channel, independent training and development mechanism and all-round incentive and guarantee
system as the core based on the development experience and cultural deposit of the Company, striving to make
employees and the Company make progress and develop together.

     Gree's talent team has been growing, its talent structure has been upgraded over the years. By the end of 2021,
the Company had about 82,000 employees, including 2 leading talents in science and technology innovation under
the National Ten Thousand Talents Program, 4 experts enjoying special allowances from the State Council, 1
winner of the Award of Outstanding Contribution to Nanyue, 1 Outstanding Talent under the Guangdong Special
Support Program, and 95 high-level talents of Zhuhai, 549 outstanding young talents, 1,097 scientific and
technological experts evaluated inside the Company, more than 6,800 intermediate and senior engineers, and more
than 30,000 skilled workers.
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      In order to adapt to the transformation of the production model to automation and intelligence, the Company
accelerates the training of applied-skilled talents. The Company vigorously promoted the spirit of model workers
and craftsmen in the new era, made full use of the resource advantages of Guangdong technicians, skilled master
studios, and technician workstations to deepen the Company's high-skilled personnel training mechanism, and
selected and cultivated a group of "high-tech and cutting-edge" skilled talents through a series of measures such as
skill training, skill competition and skill grade evaluation. Up to now, the Group has 14,000 newly assessed
skilled talents, of which, 10 have won the title of "Guangdong Provincial Technical Expert", 1 has won the title of
"Nanyue Technical Expert", and 5 have won the title of "Zhuhai Municipal Technical Expert", 4 "Zhuhai
Municipal Post Technical Expert Pacesetter", 12 "Zhuhai Municipal Chief Technical Expert", 10 "Zhuhai Special
Artisan", and 233 "Zhuhai Artisan".

     Employees are an important driving force for development of the Company. The Company seeks benefits for
employees through multiple channels including employee stock ownership plan, talent subsidies, talent housing,
Gree school and five-day workweek, improving the employee satisfaction and happiness through continuous
efforts.

IV. Analysis of main business

1. Overview

      In 2021, facing the severe and complex macroeconomic situation such as high raw material cost and repeated
and changeable COVID-19 pandemic situation, the Company adhered to independent innovation, accelerated
diversified layout, strengthened e-commerce operation, implemented the explosion strategy, and made new
breakthroughs one after another on the road of high quality development. 1In 2020, the Company achieved the
total operating revenue of RMB 189.654 billion, an increase of 11.24% year on year, and a net profit attributable
to the parent company of RMB 23.064 billion, an increase of 4.01% year on year.

(I) Center on users, continuously provide users with innovative products

   (1) Residential air conditioner sector

     Gree insists on centering on user needs for development of new products, creates high-quality air
conditioners with "ten-year" free repair and fully considers new needs of users, and has successively arranged and
developed five series of new products, including Flagship, Fresh Air, Formaldehyde removal, Wisdom Wind and
Qingxiang series, and carried out technological innovation and upgrading around the three aspects of "comfort,
health and intelligence". In terms of comfort, Wisdom Wind air conditioner for the aged, the first in the industry to
serve the "silver haired group", is equipped with "constant temperature defrosting technology", which can realize
defrosting without sudden cooling and continuous heating for 10 hours, greatly improving indoor thermal comfort.
In terms of health, Real Purify formaldehyde removal air conditioner has been launched, the formaldehyde
removal grade reaches the national standard C4 grade, the depth of formaldehyde removal reaches 0.01 mg/m
which is 10 times the national standard requirements. In terms of intelligence, a new generation of Gree Painting
Series integrating air conditioning, voice control, entertainment and art appreciation has been launched.

     In addition, the Company has launched a new Charmo split unit, and the final assembly automation rate was
increased by 40% with structural innovation and design; the Company has also launched a new generation of
characteristic Clvia unit, which combines AI intelligent algorithm with frequency conversion controller to save
energy by 15%, it also has a variety of humidity control schemes such as automatic comfortable dehumidification

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and humidity control, so as to meet the various needs of different customers in different environments.

   (2) HVAC equipment sector

     By 2021, Gree has 13 categories of HVAC products, which can meet the customized needs of customers in
different occasions.

      Screw chiller and centrifugal chiller sector. Gree has launched a new generation of high-efficiency super
magnetic inverter screw chiller with high-efficiency falling film evaporator and COP of more than 7.0; high
efficiency dynamic air suspension centrifugal chiller with bearing suspended for 2 seconds; CVE-Plus ultra-high
energy efficiency series frequency conversion unit with double primary energy efficiency of the whole series of
units, modular designed screw chillers and other products.

     Household central air conditioner and duct type air conditioner sector. Gree household central air
conditioner has expanded from single product sales to smart and comfortable home system integration. Gree
launched a new generation of Yiju home central air conditioner with a shell volume reduction of about 20%, high
temperature self-cleaning, motion sensing control and other new functions; Zunshu household central air
conditioner with free combination of five functional modules and ready-to-use feature; Yuxiang and Jingxiang
series air-conditioning and floor-heating household central air conditioner that accurately adjust the floor heating
temperature. In terms of air duct type air conditioners, C3 and D3 series VRV are arranged with new added
functions such as self-cleaning, dust removal and sterilization, temperature and humidity correction, etc.

      Commercial VRF sector. Gree launched the "artificial intelligence VRF" with large capacity of 40HP per
single unit, the VRF indoor unit has a newly laid self-cleaning function, which can be used with VRV fresh air
unit. It also launched an "intelligent air conditioning management system" integrating remote management and
household billing functions.

      Special refrigeration equipment sector. Gree has newly developed high-efficiency heat exchange and
refrigeration equipment for mines, which has overcome a series of problems such as air shortage, water shortage,
electricity shortage, high temperature, high humidity, and explosion hazard; Gree intelligent cold source group
control system integrating ice storage, magnetic bearing, inverter and other high-efficiency, energy-saving
technologies and optimized control strategies; special constant temperature and humidity unit for libraries that can
realize accurate regulation and control (T±0.5°C, RH±3%) and has an absolute moisture content as low as 5.8g/kg.
In terms of precision air conditioning products, JKF series air-cooled close control air conditioner with modular
and flexible combination, high-efficiency integrated outdoor cabinet air conditioner for 5G communication, and
variable-frequency inter column air conditioner for micro module data center has been launched. In terms of
products used for freezing and refrigeration, an integrated intelligent hot fluorine defrosting refrigeration unit has
been launched, with high defrosting efficiency, short defrosting time, and energy saving of about 36%, and a split
vertical air curtain cabinet has also been launched to improve the refrigeration equipment of retail terminals.

     Heat pump water heater sector. Gree has newly developed F-series household heating and cooling
integrated unit, which meets the primary energy efficiency standard of low-temperature heat pump; has launched
Shuzun ultra-high temperature air source water heater with the highest water temperature in the industry (90°C),
which can meet the bathing needs of about 11 people at the same time.

    In addition, the Company has also launched "elevator air conditioner" with efficient sterilization and dust
removal function, wall mounted fresh air unit and engineering fresh air unit. From high-quality energy-saving
products to later maintenance and management, Gree has created a set of comprehensive and perfect central

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air-conditioning solutions for customers, assisting the new development concept of "carbon peaking and carbon
neutrality" with core technology, and opening up a new path of green energy-saving development.

     In 2021, the Company continued to explore the HVAC equipment market and created many model projects in
various fields. In the field of real estate, there were about 40 new and renewed customers in 2021, and the market
share of refined decoration with air conditioners reached 16%, Gree launched the VIP service system mechanism
for exclusive real estate strategic customers; in the field of public buildings, it has successfully delivered
benchmarking projects such as Museum of the Communist Party of China, National Speed Skating Oval and
National Aquatics Center, won the bid for the heating (cooling) project in Rongdong District of Xiongan New
Area, and participated in the brand shortlisting and strategic procurement of more than 10 large state-owned
construction units; in the field of data communication, it has won the bid for many projects such as centralized
purchase of precision air conditioners and chillers of the three major telecom operators, as well as projects with
national influence such as Alibaba National Data Center, Huawei Chengdu Artificial Intelligence Big Data Center
and Beijing Changping Future Science Smart City Project; in the field of transportation facilities, it has
continuously obtained airport, high-speed railway and subway projects in more than 34 cities such as Shanghai,
Guangzhou, Shenzhen, Wuhan, Hangzhou, Chongqing, Xi'an, Changsha and Jinan; in the field of high-end
manufacturing and industry, it has newly developed leading customers in power, electronics, automobile, chemical
industry, semiconductor, optoelectronics, intelligent terminals, new energy, medical devices and other industries,
and successfully won the annual centralized procurement projects of multiple strategic customers; in the field of
clean energy, it has won the bid for Xinzhou coal-to-electricity project, with a bid amount of RMB 500 million,
and has won the bid for photovoltaic air conditioning projects in many commercial squares, urban service centers
and schools; in other fields, it has built a demonstration project of special unit for hospital cleaning, successfully
won the bid for a number of top 100 hospitals, international hotel groups and large commercial complex projects,
and reached strategic cooperation with a number of large financial institutions and leading breeding enterprises.

   (3) Home appliances sector

     In order to improve the quality of life of users, the Company developed home appliances in the direction of
health, intelligence and personalized needs, further enriched the depth and width of our household appliance
product line and formed a systematic layout at the same time.

     Environment appliances: The Company has created a variety of popular fans and launched new products
such as Lasso air purifier, sweeping robot, desktop water dispenser, and folding baseboard heater. In terms of fans,
FS-3015Bh7 series and FD-3515Bh7 series of floor fans adopt multi-concave wing blades and internal and
external double spiral acceleration guard to achieve 44 m/min large air volume and 8 m long-distance air supply,
which is very cost-effective, and obtained an order of 3.7 million sets in the first year, ranking first in the industry.
The production and sales volume of 4L tower cooling fan KS-04X60Dg series, with noise as low as 35 dB, 360
m/h large air volume, 7 m/s high wind speed, V-shaped wet curtain, and 600 ml/h large evaporation capacity, has
exceeded 1,000,000 sets, ranking first in the industry. Gree Lasso 520G air purifier can continuously decompose
formaldehyde into CO2 and H2O at room temperature, with a decomposition rate of 99%, and formaldehyde CCM
of more than 10000 mg, which is 6.6 times the highest level of the national standard. Desktop water dispenser
RJY-T16-1X611B featured with 3-second fast heating, is provided with 3000 L long-life patented four-in-one
composite filter element, intelligent double flushing mode, free combination of four cup sizes and six
temperatures, as well as ultraviolet bacteriostatic action.

    Kitchen appliances: In 2021, dozens of products were launched in five categories: range hood, stove, gas
water heater, steam oven and dishwasher. New products such as sparkling water maker, air fryer and health pot
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were also launched, further enriching the kitchen appliance product line and forming a systematic layout at the
same time. Jinghuan series 302 dishwasher adopts fog free transparent cabinet door and touch color screen, with
the independently developed automatic dirt identification technology, it can realize intelligent washing, with a
sterilization rate of 99.99%; Gree X82 range hood, relying on the large air volume cleaning free technology, the
air volume is increased by 18%, realizing high static pressure and 10-year cleaning free. The embedded steam
oven uses the newly invented self-adaptive temperature control technology based on the temperature
characterization point to realize temperature control with an accuracy of 1°C, which can realize the simultaneous
steaming, baking and cooking of three dishes and rice at the same time; Gree gas water heater adopts three-stage
combustion technology to achieve accurate temperature control with a water temperature fluctuation of as low as
±0.5°C, and keep the water temperature stable when the water pressure fluctuates, with a minimum power of as
low as 3.6 kW.

   (4) Refrigerator and washing machine sector.

     Refrigerator sector. Taking users as the center, Gree continues to innovate in preservation, sterilization,
energy saving, intelligent interaction, etc., of refrigerators, and constantly enriches products with different doors
and different volume segments.

     In 2021, the product layout was improved, and the first Qiyu purple BCD-516WPQG refrigerator was
launched in the cross door series, which is equipped with a brand-new "full-range fresh keeping" function
integrating fruit and vegetable fresh keeping, meat fresh keeping, breast milk fresh keeping and sterilization and
deodorization. This function can reduce the loss of nutrients and vitamins in fruits and vegetables and delay the
deterioration of fruits and vegetables through cell micro dormancy and water moisturizing technology; 15 minutes
quick deodorization to ensure the safety of food materials; precisely controlled constant temperature fresh keeping
technology realizes the constant temperature field of 4°C for breast milk storage with a temperature fluctuation of
within 0.5°C, effectively ensuring the stability of breast milk components; at the same time, it is equipped with
core technologies such as -5°C cell-level freezing and -33°C deep freezing, which meet consumers' ultimate
pursuit of health in the era of COVID-19 pandemic.

     For small families, the newly developed embedded BCD-320WPFCL French four-door refrigerator is
equipped with five fresh-keeping modes of fruits and vegetables, zero degree, partial freezing, soft freezing and
cool fresh (instant freezing), it also adopts efficient intelligent temperature control technology and consumes only
0.69 degrees of electricity per day.

    Washing machine sector. In 2021, Gree launched the upgraded products of Ruxin series washing machine with
clothes care function, which adopts differentiated technologies such as heat pump drying, drying without washing,
and molecular level care, for high-end washer dryer market; it also launched Jingyue series equipped with
pasteurization washing and high-temperature disinfection washing, which has met the demand of generation Z
market with its extreme cost performance, improved the product layout of each array of our washing machine, and
made a breakthrough in the export market.

   (5) Industrial product sector.

    Gree's strong R&D and manufacturing capacity of core components of household appliances has laid a solid
foundation for the development of the Company. In 2021, the representative industrial products developed by
Gree R&D team are as follows:

     A new generation of household VRF rotor compressor. Gree's technical team has developed a new

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generation of household VRF rotor compressor through small-scale, high-efficiency and low-noise technology in
terms of motor and pump. Its size is reduced by 10%, the maximum energy efficiency is increased by 5%, and the
noise is reduced by more than 4 dB. The size of the compressor is the smallest in the industry. It has been mass
produced and applied to Gree's small, efficient and silent household VRF products. The product technology has
applied for 10 national invention patents and formed 4-6HP series products.

     Commercial air conditioner VRF scroll compressor. Through technical breakthroughs in high-frequency
lubrication, scroll profile and broadband motor, Gree's technical team not only ensures the capacity of the
compressor, but also improves the high-frequency operation reliability of the compressor and broadens the
maximum operation frequency to 130 Hz. This series of scroll compressors have been mass produced and applied
to the fifth generation commercial VRF of Gree.

     Air-cooled magnetic bearing compressor. Gree's technical team realized the stable operation of the
air-cooled magnetic bearing compressor with 35000 RPM on load, and the operation accuracy under all working
conditions was within 20 um, and output 1 SCI paper and 1 EI paper. Its successful development indicates that
Gree has broken the monopoly of foreign enterprises on the air-cooled magnetic market and become the only
enterprise in China with independent intellectual property rights of air-cooled magnetic centrifugal compressor.

     High-performance servo system. Gree's original high power density design technology of servo motor
effectively shortens the axial length of the motor, solves the problems of low power density, large volume and
weight of servo motor, and promotes the miniaturization and weight reduction of robot to the greatest extent.

     The special servo driver for robot developed by Gree can synchronously and accurately control multiple
motors, which solves the industrial problems of robot servo driver, such as large volume, low performance, poor
reliability, and complex installation. The robot with Gree servo system runs faster and has better reliability under
the same conditions.

      Permanent magnet auxiliary synchronous reluctance motor. Compared with the asynchronous motor (IE2)
with the same power, the volume of the motor is reduced by 50% and the loss is reduced by 60%, reaching the IE5
ultra-high energy efficiency level, with significant energy-saving effect, and the rotation matrix coefficient is as
low as 5%. It has won the gold award at the International Exhibition of Inventions of Pittsburgh, and obtained
more than 30 invention patent grants.

     Supporting drive motor of air compressor. Gree's technical team has overcome the technical problems of
excessive torque pulsation and large cantilever structure deflection under high speed. The motor has the
advantages of high transmission efficiency, compact structure, maintenance free, higher motor power density, low
vibration and low noise, and makes the whole air compressor reach the primary energy efficiency level. Gree has
completed the development of four series products including 15-75kW, which can meet the needs of a full range
of products for high-end customers. At present, Gree has reached strategic cooperation with domestic front-line air
compressor enterprises.

     In addition, the top mounted integrated parking air conditioner developed by Gree adopts intelligent full
variable frequency control, which has the characteristics of strong refrigeration performance, humanized operation,
high safety protection degree and easy installation, and it has occupied the market rapidly since its launch; large
and small volume cycling compressor using Gree's unique technology can solve the problem of frequent start-stop
of household VRF at low load, which has been mass produced and applied; the special compressor for dryer has
overcome the problem of shutdown in low-frequency operation under steam care mode, and has realized mass
production and application; the electric drive system for special logistics vehicle and the five-in-one controller for
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new energy commercial bus have been successfully mass produced; Gree has made technological breakthroughs
in multi-axis integrated linear servo system, precision harmonic reducer, robot motion control system for machine
tools.

(II) Adhere to independent innovation, constantly make breakthrough in world-leading technologies.

     Major scientific research achievements emerge one after another. In 2021, Gree achieved a series of new
technological achievements through continuous breakthroughs and overcoming of difficulties by R&D personnel.
According to the appraisal of authorities, Gree has added 4 world-leading technologies, namely "high efficiency
catalytic aldehyde removal technology at room temperature and its application in air purifiers", "air source heat
pump continuous heating efficient hot gas defrosting technology", "research and application of key technologies
of home appliances" and "research and application of key technologies of high safety and large energy storage
systems". So far, Gree has a total of 35 world-leading technologies.

      In 2021, Gree won 10 important scientific and technological awards, including 5 first prizes at provincial and
ministerial level. Among them, the air source heat pump high efficiency heating key technology and
industrialization project won the first prize of Guangdong Scientific and Technological Progress Award in 2021. In
this project, Gree has overcome the industrial problems of discontinuous low-temperature heating, low defrosting
efficiency and poor defrosting comfort in winter. The overall technology has reached the "international leading"
level after being identified by China Light Industry Council and other organizations. The project achievements
have been applied and popularized in many "coal-to-electricity" projects in China, and awarded the title of "best
practice case of energy conservation in rural buildings in China". At the same time, they have been applied to the
"application and demonstration of low temperature air source heat pump heating in Mongolia" project, which has
promoted China's efficient heating technology to the world and showed China's strength.

      In 2021, Gree's "zero carbon source" air conditioning technology won the highest award in the "Global
Cooling Prize". This technology integrates advanced technologies such as vapor-compression refrigeration,
photovoltaic direct drive, evaporative cooling and mechanical ventilation. It can make efficient use of solar energy
and natural cold sources (air and water), and intelligently select one or more of the three modes of vapor
compression refrigeration, evaporative cooling and ventilation according to outdoor meteorological conditions, so
as to provide a more energy-saving and comfortable air conditioning scheme for the room. Combined with the use
of environmentally friendly refrigerants, the impact of residential air conditioner power consumption and
refrigerant emission on the climate can be greatly reduced. After the popularization of Gree's "zero carbon source"
air conditioning technology, it will help the global refrigeration industry realize carbon neutrality in advance.

      Actively lead or participate in standard formulation. In June 2021, the first batch of national consumer
goods standardization pilot projects successfully passed the national acceptance, indicating that Gree, as a leading
enterprise in the manufacturing industry, has been recognized by authority in the field of standardization
construction. In October 2021, Gree, as the leader unit, led the establishment of a national DC controller standard
working group to filled in gaps of DC controller standards and assisted the development of DC appliances in
China. In 2021, Gree was listed in 2021 National Enterprise Standard "Leader" with 19 product categories
including air conditioner, refrigerator, washing machine, rice cooker, air purifier, electric fan and water purifier,
etc., more than 300 product models, and 24 standards, and it is the enterprise with the most products included in
the list in the household appliance industry, boosting the high-quality development of products.

     In terms of international standards, in June 2021, Gree took the lead in establishing the IEEE PES DC Power
System Technical Committee (China) Low Voltage DC Technology Subcommittee, assisting the development of

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China's low voltage DC power system. In December 2021, the photovoltaic international standard proposal IEC
TS 63349-2 Photovoltaic Direct-Driven Appliance Controllers - Part 2: Operation Modes and Graphic Display,
led by Gree, was approved and released in IEC/TC82, filling in gaps in the international standard of photovoltaic
direct-driven appliance controller industry and providing the basis for the design, testing and certification of
photovoltaic direct-driven appliance. In 2021, Gree participated in the formulation of three ISO heat pump
international standards, which were affirmed by ISO refrigeration and Air Conditioning Committee and officially
released.

     Strengthen the protection and application of intellectual property rights. The total number of patent applied
by Gree at home and abroad was 13,849 in 2021, including 8,214 invention patents; the number of invention patent grants was 3,128,
including 3,008 domestic invention patent grants, and Gree was the only household appliance enterprise that has entered China's top
ten household appliance enterprises in terms of quantity of invention patent grants for 6 consecutive years. In 2021, Gree again won
major invention awards at home and abroad: Gree won Chinese patent awards, including 1 gold award, 1 silver award and 17
excellence awards, ranking first in terms of the total number of awards, and won the first gold in the invention patent of the central
air conditioning industry; won 2 patent gold awards in provincial level; at the International Exhibition of Inventions of Geneva and
Nuremberg, Gree won 6 gold awards and 2 silver awards, once again demonstrating the power of Gree in creation to the world.

     Continuously improve the capability of product design. Gree continued to increase its investment in the
R&D of new products in new areas, made breakthrough progress in the product series design, CMF planning and
desing, user experience and UI design with product series design and sub-appearance design as the core. Adhering
to the principle of concentration and diversified development, it promoted the development of original products,
and made outstanding achievements in the field of industrial design. Gree received 15 awards of three major
International Design Awards (3 IF Product Design Awards in Germany, 2 Red Dot Awards in Germany, 8 IDEA
Awards in the United States, and 2 Good Design Awards (G-Mark) in Japan), and 8 Canton Fair Design Awards.

(III) Implement the perfect quality assurance mode and put forward the "ten-year free repair policy" for
residential air conditioner

      To meet the consumers' requirement for pursuing a high quality life, Gree has been committed to providing
high quality products. The quality level of Gree's products has been steadily improved by strengthening the
internal quality control, and the after-sale failure rate has been declining for many consecutive years. In March
2021, Gree put forward the "ten-year free repair policy" for residential air conditioners, which led the progress of
domestic air conditioning service standards and reflected the strength of Gree's air conditioning product quality
and after-sales service beyond national standards. In the China Customer Satisfaction Index (C-CSI) issued by
China National Institute of Standardization, Gree ranked first in the category of air conditioners, and has topped
the list for 11 consecutive years.

     In terms of quality management and control, Gree continued to fully implement the PQAM perfect quality
assurance mode and vigorously promote zero defect management in all links of the product life cycle. In 2021, in
the 46th International Convention on Quality Control Circles (ICQCC) competition known as "quality Olympics",
the representative team of Gree's representative team won the highest award - Excellence Award, showing the
world the excellent quality management strength of Gree.

    Gree also improved product quality through digital detection technology. In 2021, Gree's "Research and
Application of Key Technologies for Quality Improvement of Household Appliance Products based on Digital
Twins" Project won the first prize of Quality Technology Award of China Association for Quality.

     Recently, The Air Disinfection and Purification Solution Based on CKER System and its Application of Gree
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won the Quality Innovation Award, which is the best achievement of the current Chinese delegation. As a quality
benchmark of Chinese enterprises, Gree once again demonstrated the strength of Made-in-China products to the
world.

(IV) Accelerate the industry layout and the diversified pattern is gradually emerging

     (1) Intelligent equipment sector

     Zhuhai Gree Intelligent Equipment Co., Ltd. is an intelligent equipment enterprise integrating R&D,
production, sales and service, possessing 15 R&D units, 7 technical service centers and more than 600
technicians.

     Under the general trend of transformation and upgrading from "traditional manufacturing" to "intelligent
manufacturing", Gree has seized the opportunity by making continuous efforts in the front-end cores of the
industrial chain, and has made successive breakthroughs in key technologies such as high-performance servo
systems, direct-drive electric spindles, linear motors, reducers, controllers and drive-control integration, which
have boosted the improvement of core competitiveness in domestic robots and CNC machine tools. At the same
time, it has also made breakthroughs in heavy-duty and highly rigid robot technology, intelligent logistics core
technology, product defect visual inspection and other key technologies.

    Gree has been attaching great importance to the development and accumulation of independent technology,
and has applied for more than 3,180 patents at this stage, in which there are 2,143 invention patents, and it
possesses 1,294 authorized patents, and won one gold medal at the Geneva International Invention Exhibition in
2021. By means of its excellent R&D and manufacturing capability, Zhuhai Gree Intelligent Equipment Co., Ltd.
was awarded such honors as Guangdong Top 500 Manufacturing Enterprise No.247, Guangdong Industrial Robot
Backbone Enterprise, Guangdong Artificial Intelligence Cultivation Enterprise, and Guangdong Intelligent
Manufacturing Ecological Partner.

      Gree Intelligent Equipment focuses on four series of products: CNC machine tools, industrial robots,
intelligent warehousing and logistics, and factory automation, and provides intelligent equipment for many
leading enterprises in the industry at home and abroad, boosting them to upgrade their automation.

     In terms of CNC machine tools, it has optimized and upgraded the existing products, expanded the market
scale in 5G communication, machinery manufacturing and medical treatment fields, focusing on machine tools
that process structural parts of high speed, high torque electric spindle, linear motor, high-speed movement and
high acceleration for new energy vehicles, as well as providing one-stop solutions for global leading enterprises of
new energy vehicle manufacturing in cooperation with renowned parts manufacturing enterprises.

     In terms of intelligent warehousing and logistics, Gree Intelligent Equipment, based on the technical planning
route, has set up demonstration projects of intelligent logistics three-dimensional warehouse in the head
enterprises of electric power, machinery manufacturing, food cold chain, auto parts and other industries in China
and overseas markets, and made project breakthroughs in new fields such as rubber tires, book publishing and
beauty makeup manufacturing.

     In terms of industrial robot and automation solutions, Gree Intelligent Equipment, based on the rich project
experience and application cases accumulated in the manufacturing fields of electric motor, small household
appliance, stamping, machining, etc., has continuously explored external markets. At the same time, it has
expanded application scenarios by timely entering the emerging markets or subdivided fields such as photovoltaic
and wood industry, and as of now, it has provided robot and automation solutions for many famous enterprises,
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which boosted these enterprises to upgrade their intelligent manufacturing.

     (2) Precision mold sector

    Mold is known as the "mother of industry", and the level of its technology is one of the important symbols to
measure the level of a country's manufacturing industry.

     Gree Precision Mold Co., Ltd adheres to the strategy of "Refinement, Standardization, Specialization and
Productization" and continues to make efforts in the fields of molds for intelligent household appliances, motors,
automobiles, medical care, office supplies and new energy components. Now it possesses 4 R&D platforms, 1
national-level skilled master studio, 1 municipal-level skilled master studio, 1 municipal-level skill workstation, 5
manufacturing plants and 12 technical manufacturing service centers, with over 500 technicians.

     Gree Precision Mold Co., Ltd attaches importance to the research and development of cutting-edge
technology and new fields. By 2021, Gree Precision Mold Co., Ltd has applied for 492 patents and obtained 344
authorized patents. It has independently developed core technologies such as 0.001 mm grade mold high-precision
processing technology, near zero degree deformation molding technology, high brightness appearance molding
technology, imitation plating mold technology, and zero defect appearance mold technology.

     The mold company began to face the external market since 2016, dedicated to the production and
manufacturing of precision molds, and now it possesses 1,200 sets of international leading precision processing
equipment, and has mastered five major technologies, namely 3D printing, flash powder + high-gloss injection
molding, RHCM molding technology, two/three color molding technology, optical imitation plating technology,
mainly serving customers in the specialized fields of automotive exterior and lights, consumer electronics, smart
household appliances, motor high impact, multi-cavity precision, and biodegradation.

     (3) Photovoltaic (storage) air conditioning sector

     The business scope of Gree Photovoltaic (Storage) Air Conditioning with Zero Carbon Source includes
photovoltaic (storage) DC air conditioning system, new energy DC appliance, energy storage and near-user side
energy Internet system, etc.

     In 2021, Gree photovoltaic (storage) air conditioning system successively won bids for significant projects
such as Xiong'an New Area Investment Service Center in Hebei, Caidian City Service Center in Wuhan, Jiuli
Center HVAC Station in Jiangsu, and Huijin Commercial Center, etc. The low-carbon technology products and
system solutions launched by Gree Electric Appliances were highly praised by partners and welcomed by the
market.

      In 2021, it implemented 13 model projects and order projects. Suzhou Tonglihujiayuan passive building is
the first passive house project in China, which realizes zero energy consumption by self-generation of electricity,
and also has passive energy storage, room temperature regulation and smart voice control of home appliances, etc.
The project has been certified by both the Science and Technology Development Center of the Ministry of
Housing and Construction of China and the German Energy Agency. Shenzhen Longgang International Low
Carbon City PV Future House Project is a PEDF benchmark that integrates PV power generation, energy storage,
DC power distribution and flexible power consumption. In October 2021, the Hangzhou Asian Games low-carbon
hydrogen-electricity coupling application demonstration project, which is the first "zero-carbon" green park
integrating flexible DC, hydrogen-electricity coupling and multi-energy complementarity in China, was officially
launched by Gree Electric Appliances and State Grid Hangzhou Electric Power Supply Company. The company
has been working with partners to carry out new energy DC application demonstrations and pilots, and promoting
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the research and promotion of new zero-carbon DC technologies, including the Xiong’an New Area
Dianshangfeicui (Wangjiazhai) DC demonstration project, the first multi-station low-voltage DC distribution
network demonstration project in Zhejiang, and the fine grid DC smart house project in Weihai, Shandong
province, etc.. The company is dedicated to achieving carbon peaking and carbon neutrality goals together with
partners in the power and construction industries.

     In terms of platform construction, the company took the lead in establishing Guochuang Energy Internet
Innovation Center (Guangdong) Limited, initiated and hosted the Guangdong Distributed Energy Internet
Innovation and Application Alliance and constructed the Guangdong Energy Internet Innovation Center, and
successfully held the inaugural meeting of IEEE PES DC Power System Technical Committee (China) Low
Voltage DC Sub-Committee with ecological partners, and served as the chairman, showing the company's
milestone role in promoting the rapid and healthy development of China's new energy low-voltage DC technology,
which is of milestone significance to promote the rapid and healthy development of new energy low-voltage DC
technology in China and the construction of international standards in the related fields of zero-carbon DC.

     In terms of new products and technologies, in 2021, Gree launched a new generation of photovoltaic (storage)
DC inverter VRF unit system, household and commercial-grade energy internet storage system, HIEMS energy
internet home/community system, FIEMS energy internet factory/park system, etc. Gree Electric Appliances also
participated in the Energy Foundation's research project "China PEDF Building Research Project" led by Tsinghua
University to establish the key technical framework for DC building appliances in collaboration with partners,
which promoted the development of new energy DC appliances.

     In terms of the honor won in photovoltaic(storage) air conditioning with zero-carbon source system, the
Gree-Tsinghua University joint team won the Global Cooling Prize in April 2021, which marked another core
technological breakthrough in the field of zero-carbon air conditioning technology and provided innovative
Chinese solutions to achieve China's "double carbon" strategic goals and address global climate challenges.

     Gree G-FIEMS Energy Internet Factory System was successfully selected as a pilot demonstration of
Industrial Internet Platform + Green Low Carbon Solution in 2021 by the Ministry of Industry and Information
Technology; Changsha Gree was listed in the sixth batch of "Electricity Demand Side Management
Demonstration Enterprise" in the industrial field by the Ministry of Industry and Information Technology in 2021.
Its plant-level IEMS system solution, which integrates PV, energy storage and energy management, enables a
significant reduction in plant energy consumption and is a successful practice of the Energy Internet Factory. Gree
Energy Environment Technology Co., Ltd was awarded "2021 Best Energy Storage Technology Innovation Award
of China Energy Storage Industry" by China International Energy Storage Conference and "2021 Best Energy
Storage Frequency Modulation Auxiliary Service Project" by EESA.

     (4) New energy vehicle and lithium battery sector

     With the long-term in-depth layout of the new energy sector, and in the context of accelerating the realization
"double carbon" goals, Gree further perfected the layout of new energy industry by acquiring Gree Altairnano in
2021, thus adding lithium-ion batteries, new energy commercial vehicles, special vehicles and other business
fields, and build an integrated industry chain covering lithium battery materials, lithium batteries, modules/PACK,
new energy vehicle core components and downstream new energy vehicles, industrial and commercial energy
storage, photovoltaic (storage) air conditioning and energy internet system. The combination of Gree Altairnano’s
core technologies such as battery and Gree’s multi-dimensional low-carbon technologies such as "Zero Carbon
Source" is conducive to increasing the speed of green change in production and lifestyle and gives full play to the

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overall resource advantages. At present, the business relationship between Gree and Gree Altairnano has been
rationalized and initial results have been achieved, including cooperation in the development of a number of
energy storage system projects in high-altitude and ultra-low temperature areas, the introduction of each other's
advantageous products, etc., and will continue to promote comprehensive integration and synergistic development
in the future.

     Gree Altairnano has always been attaching great importance to the research and development and
accumulation of technology. As of 2021, the company has applied for 3,316 patents, of which 2,211 patents were
granted, covering lithium battery materials, electric vehicle powertrain, intelligent energy storage and other fields.

     New energy vehicle business

      Gree Altairnano’s new energy vehicle business covers a full range of products including buses, road buses,
airport ferries, urban sanitation vehicles, logistics vehicles, cold chain vehicles, mining heavy trucks, nucleic acid
testing vehicles, forklifts, etc., which have been operating in more than 220 cities in China, including Beijing,
Wuhan, Changsha, Qingdao, Hangzhou, Harbin and Haikou.

      Gree Altairnano’s commercial vehicle series products, including the only 18-meter dolphin bus in the new
energy vehicle industry that won the China Gold Award for appearance design, the first double-decker bus that
became the CCTV live broadcast vehicle after the official opening of the Hong Kong-Zhuhai-Macao Bridge, and
the microbus model that boosted the development of urban-rural integration. In 2021, as a new carrier of red
culture to celebrate the centenary of the founding of the CPC, the antique lam lam bus and the opera face road bus
entered into Xiong’an New Area. Up to now, more than 8,000 buses equipped with Gree Altairnano batteries are
in continuous operation in Beijing. As the only new energy bus supplier of Beijing's busiest bus line "Da 1 Road"
via Chang'an Street and Tiananmen Square, in the past 7 years of operation of the Gree Altairnano buses, battery
safety problems have never occurred, and the power decay rate is less than 5%, and the battery capacity retention
rate is still more than 95%, which successfully solved the problem that new energy buses equipped with
traditional lithium battery packs faced that battery decay is so serious that all-day operation cannot be realized and
the cost of battery replacement needs to be increased.

     Gree Altairnano’s logistics vehicle series products, has served in Guizhou logistics park and other places to
provide distribution services for agricultural and sideline products, fresh food, household appliances, etc.; in 2021,
Gree Altairnano was committed to developing a new generation of micro truck logistics vehicles, providing an
effective solution for the problem that small trucks have a small carrying capacity and large trucks are restricted.

      Gree Altairnano’s electric sanitation vehicle series products that are committed to creating efficient urban
cleaning solution swith electric, intelligent, networked as the core, have served in Wuhan, Luoyang, Linyi and
other places. In 2021, Gree Altairnano’s pure electric multi-functional dust suppression vehicle was awarded the
title of "China Commercial Vehicle Excellence Product Award".

     In 2021, Gree Altairnano’s Airport Ferry received the "Aviation Ground Equipment Inspection Certificate"
issued by the National Construction Machinery Quality Supervision and Inspection Center, becoming a special
vehicle for civil airports certified by the testing agency designated by the Civil Aviation Administration of China.
At present, Gree Altairnano’s new energy vehicles have been operating in Beijing Capital International Airport
and Daxing International Airport, Hangzhou Xiaoshan International Airport and so on, providing safe, fast and
economic services for airport passenger transportation.

     Lithium battery business

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     The safety of Gree Altairnano’s batteries has been leading the industry for a long time, with the
characteristics of high safety, large rate, fast charging and discharging, wide temperature range, long life, etc. In
2021, the lithium titanate battery developed by Gree Altairnano was jointly selected by the Ministry of Industry
and Information Technology and the China Federation of Industrial Economics as the "National Manufacturing
Single Champion Product".

      The company always puts battery safety first, and the developed lithium titanate battery has higher safety
performance than conventional lithium-ion batteries: ① The nano-level lithium titanate material has higher
potential to lithium, which fundamentally eliminates the generation of lithium dendrites and reduces the risk of
internal short circuit; almost no SEI film is generated due to the low reaction activity between lithium titanate and
electrolyte, and low thermal reaction start temperature and high reaction activation energy significantly improve
the stability and safety of the battery; ②The company's lithium titanate battery adopts innovative structural
design such as three-dimensional multi-channel fluid collection and self-constrained poles, which makes the
lithium titanate battery present excellent safety and reliability. In addition to having passed the national mandatory
safety inspection standards for power batteries, the company's lithium titanate batteries have not been subjected to
thermal runaway phenomena such as smoke, fire and explosion under destructive testing conditions such as fire,
nail pricking in water, chainsaw cutting and electric drill impact.

     Except that, lithium titanate battery has the advantages of fast charging speed (up to 50℃ continuous
charging and discharging, supporting 70℃ pulse charging and discharging), excellent low temperature
performance (with the ability to charge and discharge in the temperature range of -50~60℃), and long cycle life
(can be used more than 40,000 cycles). The long cycle life of Gree Altairnano batteries can effectively alleviate
the ecological crisis brought by the "retirement wave" of new energy vehicle batteries.Taking a new energy
vehicle life as 10 years, if the power battery is recycled after the vehicle ends its life, the Gree Altairnano battery
can also be used in major energy storage fields in a gradual manner.

      Gree Altairnano's lithium titanate battery has achieved good results in the market by virtue of its superior
performance, with representative projects including: ① provided batteries and integrated battery management
system services for electric vehicles of global famous transportation companies and port machinery companies,
which are used in AGV intelligent equipment manufacturing enterprises, rail transportation equipment, automated
port terminals and other fields in Denmark, Switzerland, Czech Republic, Finland and other major countries
around the world. ② the company has obtained large power battery export orders for light electric vehicles in
India, creating a new industry of high-end light electric vehicle products in the Asia-Pacific region; ③ provided
lithium titanate products for new application scenarios such as mobile energy storage on the power generation side
in Europe, large rate industrial energy storage for hydroelectric power generation and fast-charging public
transportation in the United Arab Emirates, with broad market prospects in the future.

     Energy storage business

     The "Research and Application of Key Technologies of High Safety and Large Energy Storage Systems"
project, which is independently developed and implemented by Gree Altairnano, has reached the "world leading"
level and has significant economic and social benefits, as assessed by authoritative institutions. Recently, the
project was awarded the 2021 Guangdong Science and Technology Progress Award and the First Prize of
Guangdong Machinery Industry Science and Technology Award, Gree Altairnano energy storage technology’s
another recognition by the authority.

     Gree Altairnano battery energy storage system has expanded many projects by virtue of its high safety, low

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temperature resistance, large rate, long life and so on, and has made significant breakthroughs in the market, with
benchmark projects including: ① successfully applied to the national photovoltaic and energy storage
demonstration experimental platform (Daqing base), which is the first photovoltaic energy storage demonstration
experimental platform in China, promoting industrial technology progress, transformation of achievements and
industrial development; ② ultra-low temperature regional power plant frequency regulation project: jointly
participated in frequency regulation auxiliary services in coordination with thermal power generating units for
Urad power plant in Inner Mongolia, improved the frequency regulation capacity in the power generation side and
promoted the safe and stable operation of the power grid; ③ high altitude ultra-low temperature regional
communications base station project: landed communications base station energy storage system in Sichuan Aba
prefecture and other areas and provide a strong guarantee for the safe work and communications smoothness of
communications base stations with high security, long life, low temperature resistance and other properties; ④
Gas station "photovoltaic storage" project: built photovoltaic storage integrated energy gas stations together with
Qinghai Province gas stations, which provided a strong guarantee for the safety of photovoltaic storage in
ultra-low temperature areas, and provided a green solution for the comprehensive energy transformation of gas
stations.

     In 2021, Gree Altairnano won the awards of "Best Energy Storage Battery Supplier in China Industry" and
"Best Integrated Photovoltaic (storage) and Charging Solution in China Energy Storage Industry" from China
International Energy Storage Conference.

     (5) Renewable resources sector

     Gree Electric Appliances actively practices the producer responsibility extension system and innovatively
proposes the circular development model of "green design-green manufacturing-green recycling" to ensure the
green efficiency of the whole industrial chain. Starting from 2010, Gree Electric Appliances has established six
recycling bases that mainly engage in the recycling of waste electrical and electronic products and end-of-life
vehicles, as well as the intensive processing of waste circuit boards and waste plastics, in Changsha, Zhengzhou,
Shijiazhuang, Wuhu, Tianjin and Zhuhai. Through nearly ten years of rapid development, it has become a leading
enterprise in the industry, and now has the qualification capacity of dismantling 13 million units of used
household appliances, 94,000 vehicles, 180,000 tons of recycled plastic processing capacity, and 60,000 tons of
waste circuit board processing qualification capacity. 6.5 million sets of used household appliances were
processed in 2021.

     By the end of 2021, Gree Recycling Resources Company has processed more than 40 million units (sets) of
various types of waste electrical and electronic products and more than 70,000 tons of end-of-life vehicles, and
has transformed more than 600,000 tons of recycled copper, iron, aluminum and plastic. According to the relevant
estimates, through Gree’s resource regeneration, extraction of crude oil resources was reduced by approximately
1.6 million tons, water was saved by approximately 3.9 million cubic meters, carbon emission was reduced by
approximately 2 million tons, which boosts the realization of carbon peak and carbon neutrality goal.

     Since its establishment, Gree Recycling Resources Company has been awarded the titles of "The First Pilot
Unit of Extended Producer Responsibility for Electrical and Electronic Products", " 2025 China Manufacturing
Green Integrated System Pilot Unit", "Green Factory" and "2020 Green Manufacturing System Solution Provider
" by the Ministry of Industry and Information Technology, and has participated in many national major R&D
projects such as the National High Technology Research and Development Program (863 Program) and the
"Major Solid Waste Special Project of the Ministry of Science and Technology".


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     (6) Semiconductor sector

     Gree Electric Appliances has made significant progress in semiconductor research. In 2021, Gree's
wholly-owned subsidiary Edgeless Integrated Circuit Co., Ltd. achieved over 50% growth in revenue and
shipments of products exceeded 70 million units. Edgeless Integrated Circuit Co., Ltd. has been awarded
"National High-tech Enterprise", "Key IC Design Enterprise Encouraged by the State", "Zhuhai Science and
Technology Small and Medium-sized Enterprise", etc., and relevant products have been evaluated as "Guangdong
High-tech Product", "Zhuhai Innovative Product", "16th 'China Core' Excellent Product", etc. Gree Electric
Appliances and its subsidiaries have applied for a total of 719 semiconductor-related patents, including 292
domestic patents and 71 international patents, and won the 22nd China Patent Excellence Award.

     Gree's semiconductor products mainly include industrial-grade 32-bit series MCUs, AIoT SoCs and power
semiconductors. Among them, the 32-bit MCU series have the advantages of high performance, high reliability,
low power consumption, low cost, etc. and have achieved batch application in series of products such as home air
conditioners, commercial VRF units, bus controllers, remote controls, etc., with the annual consumption over ten
million; it can be widely used in consumer electronics, wearable devices, home products, health care support,
commercial large units, industrial sensing, high-performance motor control, etc.

     Gree Smart Home series chip (AIoT SoC) combines high performance AI computing power and embedded
MCU, and provides intelligent control for image recognition, human-computer interaction, motor drive, security
encryption, etc. It has been applied in smart air conditioners and smart household appliances, and is provided with
complete software and hardware solutions; it can be widely used in smart home, end-side AIot, smart home,
industrial computing, industrial automation and other fields. As for power semiconductors, the development and
mass production of IGBT, IPM and other series of products have been completed, which have been applied in
batch on inverter air conditioners; they can be widely used in household appliances, intelligent equipment, new
energy and other fields.

     (7) Health care sector

     Established in 2020, Gree Chengdu Xin Hui Medical Equipment Co., Ltd is a holding subsidiary of Gree
Electric Appliances, that mainly engages in the research and development, production, sales, technical service and
technical consultation of medical equipment and laboratory equipment.

     In 2021, Gree Chengdu Xin Hui Medical Equipment Co., Ltd., in response to the severe anti-epidemic
situation at home and abroad, actively upgraded the mobile P2+ nucleic acid testing vehicle, which is upgraded to
4th generation so far. The product adopts the fresh air conditioning system independently developed by Gree,
which meets relevant standard requirements of PCR nucleic acid testing laboratory and secondary biosafety
laboratory. The daily testing volume is up to 20,000-60,000 (10/1 mixed sampling), and test result reports can be
issued in 3 hours on average, which effectively relieves the pressure of nucleic acid testing at the outbreak site.
Gree mobile P2+ nucleic acid testing vehicle has been used in the epidemic prevention and control work in
Shanghai, Hong Kong, Guangdong, Anhui, Hunan, Henan, Hebei, Shandong, Shanxi and Sichuan, etc. In 2021,
Gree Chengdu Xin Hui Medical Equipment Co., Ltd. was awarded the title of "Advanced Group in Combating the
COVID-19 Epidemic".

(V) Strengthen e-commerce operations and activate channel advantages

      Gree's "New Retail" is based on 27 sales companies, more than 70 online dealer stores, more than 30,000
offline stores and official flagship stores on third-party e-commerce platforms, and a two-line sales network

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                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


covering the whole country is established. Digital management from procurement, production, stocking,
warehousing, logistics, inventory, sales is achieved through the use of big data, artificial intelligence and other
advanced technology; reduce sales links, reduce the cost of sales, reshape the Gree ecological structure and
ecosystem through the upgrade and transformation of the production, distribution and sales process of goods, thus
achieving a new model of online service, offline experience and deep integration of retail.

     Social e-commerce is growing rapidly and live-streaming e-commerce is becoming mainstream. In 2021,
"Gree Dong Mingzhu's Store" live-streaming e-commerce ushered in the explosive development, and
live-streaming internet celebrity matrix with "Miss Dong" "Yu Tong" as the representative is formed hereafter. In
addition, holding live-streaming events with CCTV expanded new media publicity channels, enriched the product
lines of various categories of household appliances, and comprehensively laid out new energy-efficient products,
and Gree's online sales have achieved rapid growth. In 2021, Gree Electric Appliances fan and air water heater
sales boomed, and sales of new household appliances growed rapidly.

     In 2021, "Gree Dong Mingzhu's Store" was transformed into an open platform, and its brands, product
categories and business models were diversified by the means of investment promotion and multi-channel
cooperation, which also drove the sales to grow. The platform showed a new development pattern of win-win
cooperation.

     Supply chain management and sales support. In 2021, the supply chain of Gree E-Commerce Company has
formed a warehouse network layout covering the whole country, with products of all categories stocked in the
whole network and orders automatically flowing to the nearest warehouse for delivery, which shortens the
delivery time to the maximum extent; at the same time, it promoted the digital transformation of the order
management process, established a unified intelligent customer service platform, strengthened business risk
monitoring, identifies and handled business abnormalities in advance, and improved the level of financial
informationization and risk prevention. This series of measures effectively guaranteed the implementation of
Gree's new retail model.

     Gree's new retail will adhere to digital operation thinking to empower brand expansion; create an efficient
and agile supply chain management system to realize make-to-order and gradually achieve the zero inventory goal;
optimize and upgrade the intelligent customer service platform to improve customer satisfaction; and channel the
flow from online to offline to make the channel burst out more powerful sales energy.

(VI) Improve the competitiveness of export products and vigorously develop independent brands

     In 2021, the global economy continued to recover thanks to the expansion of vaccination coverage for
COVID-19, enhanced outbreak prevention and control measures, and continued fiscal stimulus and monetary
easing. Gree Electric Appliances continued to develop in overseas markets and made an eye-catching performance
in emerging markets. In 2021, Gree products were sold to more than 180 countries and regions, of which 51%
were independent brands, with sales increasing by 23% year-on-year.

     In 2021, Gree won a number of large model projects, such as the 2022 Qatar World Cup Stadium and its
dormitory supporting projects, Indonesia's Samanea Commercial Complex, the Link Group's Hong Kong
Shopping Center, Brazil's The Mall of St Paul, etc. The winning products covered centrifugal units, screw units
and other large commercial products, blossoming in public facilities, industrial parks, commercial buildings and
other fields, which established Gree's brand international image.

     Green development with leading technology as a driving force. Under the double carbon goals, Gree actively

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                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


developed low carbon technologies, products and solutions, and practiced the global comprehensive
carbon-neutral action. In the commercial air conditioner field, Gree launched energy-efficient and environmentally
friendly water heaters for the European market, as well as ultra-low temperature heat pump products and all DC
inverter condensing units for the North American market to meet the diversified needs of overseas consumers. In
the residential air conditioner field, Gree developed localized products to meet different consumer needs, such as
the Middle East high-temperature resistant air conditioners loaded with Gree's unique G-Boost compressor
technology, healthy air conditioners with multi-faceted cleanliness from the inside out, and intelligent products
that integrate AI energy-saving technology and intelligent dehumidification.

     Actively develop online marketing and gradually resume offline promotion. Under the context that offline
activities could not be fully carried out due to the impact of the epidemic, in 2021, the company increased the
operation of overseas online social media to disseminate the Gree brand concept through multiple channels; and
accelerated the construction of overseas e-commerce team to develop sales through e-commerce channels in
several regions. With the increasing rate of vaccination and the gradual recovery of political and economic
activities in overseas markets, the company has gradually resumed participation in offline exhibitions, such as the
West Africa Refrigeration Exhibition, Taipei Electrical and Air Conditioning 3C AV Exhibition, GREENBUILD
Exhibition in the United States, China Consumer Products (Russia) Brand Exhibition, and the 130th Canton Fair.

     Adhering to the user-centered, enhance market service awareness. In 2021, the company launched Gree
global technical support service system that provides one-stop service for product solutions and design of
engineering projects; upgraded after-sales technical service, built Gree global after-sales service center website,
established Gree English website with brand as the core, all of which increased Gree’s brand international
awareness.

(VII) Building the Internet of Everything, Leading Smart and Healthy Life

     In 2021, Gree Smart Home insisted on independent innovation, independent research and development,
independent manufacturing, and built a zero-carbon healthy home using core technologies. On the basis of
continuously upgrading the five intelligent living systems of whole-house energy, air, health, security and light,
Gree developed personalized spatial intelligent solutions for different living spaces such as home living rooms,
bedrooms and kitchens, creating a green, efficient, convenient and safe home everything connected space.

      In terms of intelligent products, in 2021, Gree Electric Appliances launched a new set of household
appliances such as "Gree Mingzhu", with multi-scenario (kitchen, bedroom, living room, bathroom, etc.) and
multi-dimensional (pace, equipment and time) intelligent scenario management functions, creating an overall
solution for intelligent life for consumers; meanwhile, Gree also a variety of intelligent products for different
specific application scenarios: in smart living room scenario, it launched the "Painting Series" wall-mounted air
conditioner that integrates intelligent home central control, audio and video entertainment, air conditioning and
artistic painting screen; intelligent cleaning, it launched the new Ground Gravity sweeper robot equipped with
built-in new generation LDS LIDAR navigation, DM mopping-specific algorithm and self-developed control
system; in intelligent security, it launched the GREE P2 Bluetooth fingerprint door lock, which is equipped with
the highest security level C-class lock core certified by the Ministry of Public Security, and high-precision
fingerprint recognition module; in intelligent health products, it launched the new formaldehyde air conditioner,
two-way fresh air conditioner and formaldehyde air purifier; in intelligent control, it launched the second 5G cell
phone independently developed by Gree, equipped with the independently developed Halo UI 6.0 operating
system, linkable to Gree smart home devices. The launch of Gree series of intelligent health products creates a
high quality of life for consumers.
                                                        36
                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


     In terms of intelligent health technology, Gree has achieved breakthroughs in AI comfort and energy saving
algorithm (G-Learning) and sleep detection technology. G-Learning energy-saving algorithm research uses Gree's
own AI chip and it can actively optimize air conditioner operation control parameters according to room size,
environmental changes and other factors, which has been proven to achieve a comprehensive energy saving of
15%. This study was awarded the world's first AI energy efficiency certificate by the international certification
body INTERTEK. Through PVDF piezoelectric sensing technology, Gree sleep detector can detect physiological
electrical signals during sleep across the mattress, achieving non-sensory detection, and through AI intelligent
algorithm, it can realize sleep staging (light sleep period, deep sleep period, REM period) and generate sleep
report, which is conducive to users' health management.

     In terms of market promotion, in 2021, the company landed Gree Zero Carbon Healthy Home in Beijing,
Jiangxi, Changsha, Sichuan, Chongqing and other regions, which realized the intelligent emission reduction effect
and created an energy-saving, environmentally friendly, comfortable and healthy smart home through six
technologies, five systems and space deployment; the company landed the overall solution for smart apartments in
Zhuhai, Wuhan and other regions, equipped with intelligent door locks and Gree rental management system that
includes online informationization of check-in and check-out, alarm for abnormal security of residents, remote
control and management of apartment appliances, which reduces the operating cost of apartment property
management and improves the living experience of residents.

    According to the "2021 Top 100 Global Smart Home Invention Patents" published by IPRdaily, Gree ranked
second in the world, and its R&D strength in smart homes was once again recognized by professionals.

(VIII) Accelerate the transformation and upgrading of intelligent manufacturing and provide customers
with intelligent factory system solutions

       Gree Electric Appliances promoted the construction of comprehensive digitalization, realized the data
operation and platform operation of the whole value chain, focused on the development of big data, artificial
intelligence and industrial applications, built a new ecology of the manufacturing industry, deeply integrated the
new generation of information technology with the industrial system in all aspects, built an industrial Internet
platform, and established a network foundation connecting machines, materials, people, control systems and
information systems in all aspects. Through the comprehensive and deep perception of industrial data, real-time
dynamic transmission and advanced modeling analysis, intelligent decision-making and control were formed,
which drove the intelligent development of the whole enterprise and promoted the transformation of intelligent
manufacturing.

      In 2021, with the goal of "1 platform, 1 set of standard architecture and 18 domain systems", the company
developed a new generation of industrial Internet platform by coordinating the Group's IT construction resources
and business control applications and utilizing advanced technologies such as industrial Internet, cloud-native,
artificial intelligence and 5G, serving the digital transformation of the company. At the same time, the company's
precipitation of software development achievements lied the foundation for the company's industrial
interconnection platform and industrial software development. Built Gree's independent and controllable
information system to support the construction of the digital factory, realizing data-driven business, and escorting
the company to improve quality and increase efficiency and development.

    Build Gree Smart Factory. In 2021, the company actively built Gaolan Port "Lighthouse" demonstration
smart factory and promoted the upgrade of smart manufacturing technology in the old factory, and the Zhuhai
base was recognized by the Ministry of Industry and Information Technology as a "pilot demonstration of

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                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


industrial internet platform + green low-carbon solutions". Chongqing base, Hangzhou base and Hefei base were
recognized as provincial "Smart Factory".

     Export smart factory system solution. In 2021, Gree's "IoT-based Smart Factory Platform Research and
Industrialization" project was selected in the category of IoT integrated innovation and integration application by
the Ministry of Industry and Information Technology, and the "Industrial Internet Platform for Industry Chain
Collaboration Scenario in Household Appliance Industry" was selected as an industrial Internet benchmark
demonstration project of Guangdong Province. In 2021, the company reached project cooperation with large
enterprises in the electronics, food and electromechanical industries to provide customers with smart factory
system solutions based on intelligent logistics and information technology.

     Cultivating industrial applications. The company carried out research and development of industrial
technology software, cultivated high-quality industrial APPs, designed informatization hardware products,
systematically guided enterprises in the industrial chain to accelerate business and equipment to apply cloud and
promote data interoperability and capability synergy among enterprises in the chain.

      Construction of 5G network project. The first MEC edge cloud + smart manufacturing end-to-end 5G SA
slicing network based on MEC was built in Gree headquarters park, which realized low latency, bandwidth
guarantee and data security in 5G slicing + MEC network. The project not only met the needs of the company's
own industrial Internet, realized intelligent control, operation optimization and production organization changes,
and promoted enterprise upgrading and transformation, but also the new model of enterprise-wide 5G network
deployment architecture and network construction, operation and maintenance, and management had
cross-industry demonstration and promotion value.

(IX) Optimize talent training mechanism and incentive system to boost the company to develop steadily

     To promote the high-quality development, the company built its own training system, constructed a
diversified independent training mechanism, accelerated the construction of Gree Vocational College, and
increased the training of innovative talents in 2021.

     Increase the independent training of innovative talents. According to the growth path of technical R&D
personnel, the company set up multi-level and multi-dimensional training programs and courses, implemented the
special technical training in the manufacturing industry, and promoted employees to develop towards specialized
talents in high, precise and sharp fields; the company made full use of the advantages of resources such as
Guangdong technicians, skilled master studios and technician workstations, and selected and cultivated a number
of "high and precise" skill talents through a series of initiatives such as skill training, skill competitions and skill
level assessment; comprehensively deepened and promoted the whole staff learning and development plan and
formulated thematic training programs at all levels. In 2021, the total number of special training sessions at all
levels was over 20,000, with about 1.2 million participants.

      Deepen the company's core business support. Closely following the company's new retail marketing model
and around the global sales market support, continuously innovated management, and improved after-sales skills
by combining training and management with skills and service, which effectively supported and promoted the
first-line market service upgrade. In 2021, the company's training closely followed the company's large-scale
engineering sales and services, and completed special training support for significant projects such as metro and
nuclear power with high quality; it carried out online training and technical consultation for overseas customers
remotely, and completed 600 times of technical training in 30 countries in total; organized and carried out the first
certification class for star service engineers, which established service benchmarks; organized and carried out
                                                          38
                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


nationwide touring technical training camps, Gree after-sales elite classes, instructor certification and online
special learning activities to improve the professional skills of after-sales personnel. In 2021, the after-sales
service completed 5,200 learning sessions and trained 480,000 people in total.

     Strengthening experience inheritance and cultural dissemination. Through the organization and
implementation of learning programs such as micro-classes for management cadres, lecture halls for technology
experts, lecture halls for skilled craftsmen, and lecture halls for internal lecturers, the company realized
comprehensive Gree experience inheritance and Gree culture dissemination. 2021 Organized approximately 90
extraction activities throughout the year, with more than 4,000 participants. Up to now, the company has dug out
and nurtured 200 group-level quality instructors and developed 800 quality courses.

      Accelerate the construction of Gree Vocational College. The construction of Gree Vocational College campus
officially started in February 2021 and is scheduled to be completed in July 2022. The college upon completion,
as a special private higher education institution, will face the national major development strategy and the demand
for talents in the Greater Bay Area. With majors docked with strategic emerging industries such as intelligent
equipment, artificial intelligence, and the Internet of Things, the college will be built as a Chinese brand of
enterprise schooling with deep integration of industry and education and international characteristics. Over the
years, Gree has deepened the integration of industry and education, and won the 7th Huang Yanpei Award for
Outstanding Contribution to Vocational Education for its advanced exploration and practice in school-enterprise
cooperation, being the only enterprise unit to win the award.

     In 2021, in order to continuously improve employee satisfaction and happiness, the company implemented
the Employee Stock Ownership Plan, allowing employees to share more of the fruits of corporate development;
adjusted the one- and two-day break work system to a two-day break work system, increased more than 20 days of
vacation throughout the year; obtained quality school places in Gree School for non-Zhuhai household registration
of employees' children, which effectively solved the employees' children's schooling problem and further
enhanced employees' happiness and sense of corporate identity.




                                                        39
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


2. Revenue and cost

(1) Composition of operating revenue

                                                                                                                            Unit: Yuan

                                        2021                                           2020
                                                                                                                    Year-on-year
                                               Proportion to the                              Proportion to the
                             Amount                                        Amount                                 increase/decrease
                                             operating revenue                              operating revenue

Total operating
                        187,868,874,892.71                  100% 168,199,204,404.53                        100%              11.69%
revenue

By industry

Manufacturing
                        144,840,537,601.90                  77.10 130,427,766,473.54                     77.54%              11.05%
industry

Other business           43,028,337,290.81                22.90%        37,771,437,930.99                22.46%              13.92%

By product

Air conditioner         131,712,664,218.81                70.11% 115,576,822,921.57                      68.71%              13.96%

生活电器                  4,881,607,693.72                 2.60%         4,521,756,518.81                 2.69%               7.96%

工业制品                  3,194,552,084.04                 1.70%         2,304,816,992.20                 1.37%              38.60%

智能装备                    857,741,120.95                 0.46%          600,778,785.76                  0.36%              42.77%

Green energy              2,907,445,769.91                 1.55%         1,782,282,335.29                 1.06%              63.13%

Other main
                          1,286,526,714.47                 0.68%         5,641,308,919.91                 3.35%             -77.19%
businesses

Other business           43,028,337,290.81                22.90%        37,771,437,930.99                22.46%              13.92%

By region

Domestic sale-main
                        122,305,111,567.10                65.10% 110,407,002,220.87                      65.64%              10.78%
business

Export sales-main
                         22,535,426,034.80                12.00%        20,020,764,252.67                11.90%              12.56%
business

Other business           43,028,337,290.81                22.90%        37,771,437,930.99                22.46%              13.92%


(2) Industries, products and regions that account for more than 10% of the company's operating revenue
or operating profit

√ Applicable □ Not applicable
                                                                                                                            Unit: Yuan




                                                                   40
                                    2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                                                                     Increase or           Increase or        Increase or
                                                                                     decrease in        decrease in         decrease in gross
                                                                       Gross      operating revenue operating costs          profit margin
                      Operating revenue          Operating costs
                                                                      margin       over the same      over the same          over the same
                                                                                    period of the      period of the          period of the
                                                                                    previous year      previous year         previous year

By industry

Manufacturing
                        144,840,537,601.90 101,021,238,221.75          30.25%               11.05%               14.90%               -2.34%
industry

Other business           43,028,337,290.81      41,230,400,368.12         4.18%            13.92%                13.56%                0.31%

By product

Air conditioner         131,712,664,218.81      90,576,252,210.44      31.23%              13.96%                20.14%               -3.54%

Other business           43,028,337,290.81      41,230,400,368.12         4.18%            13.92%                13.56%                0.31%

By region

Domestic
sale-main               122,305,111,567.10      80,703,210,957.38      34.01%              10.78%                14.75%               -2.29%
business

Export sales-main
                         22,535,426,034.80      20,318,027,264.37         9.84%            12.56%                15.50%               -2.29%
business

Other business           43,028,337,290.81      41,230,400,368.12         4.18%            13.92%                13.56%                0.31%

In case the statistical caliber of the company's main business data is adjusted during the report period, the company's main business
data will be adjusted according to the caliber at the end of the report period in the last year.
□ Applicable √ Not applicable


(3) Whether the company's revenue from physical sales is greater than its revenue from labor services

√ Yes □ No
Description of a year-on-year change of 30% or more in relevant data
□ Applicable √ Not applicable


(4) Performance of significant sales contracts and significant purchase contracts entered into by the
Company as of the report period

□ Applicable √ Not applicable


(5) Composition of operating cost

                                                                                                                                    Unit: Yuan

     Industry                                            2021                                       2020                       Year-on-year
                           Item
  classification                             Amount             Proportion to          Amount               Proportion to     increase/decrea

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                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                                                 operating cost                               operating cost              se

                     Raw material          86,226,905,186.28                88.27% 75,879,070,146.39                    86.90%             13.64%
Household
                     Labor costs            4,402,642,502.15                  4.51%   4,261,563,030.87                     4.88%               3.31%
appliance
                     Depreciation           1,734,054,331.37                  1.78%   1,693,963,131.00                     1.94%               2.37%
manufacturing
                     Energy                  708,881,983.14                   0.73%       779,821,409.66                   0.89%           -9.10%


(6) Whether there was a change in the scope of consolidation during the report period

√ Yes □ No


1. Business combinations not under common control

       (1) Business combinations not under common control that occurred during the period
                                                                                                                                       Unit: Yuan

                                                                                           Basis for
 Name of                                                                                                Operating revenue
                Point of                            Equity      Equity                    determining                          Net profit from the
    the                      Equity acquisition                             Acquisition                      from the
               acquisition                        acquisition acquisition                     the                              acquisition date to
Purchased                           cost                                       date                     acquisition date to
                of equity                         proportion method                       acquisition                              statement date
  Party                                                                                                   statement date
                                                                                              date

Gree
Altairnano
             October 31,                                      Purchase October 31, Acquisition
New                           1,828,275,113.56       30.47%                                                694,344,061.76           -416,767,701.45
             2021                                             in cash       2021          of control
Energy
Inc.

       (2) Cost of business combination and goodwill
                                                                                                                                         Unit: Yuan

                                       Cost of business combination                                                            Amount
Cost of business combination                                                                                                       1,828,275,113.56
Less: fair value share of the identifiable net assets acquired                                                                     1,215,497,529.64
Amount of goodwill/combination cost less than the share of fair value of identifiable net asset                                      612,777,583.92
acquired
     [Note 1] As described in Note 5.23 "Goodwill" to the financial statements, Gree Altairnano New Energy
became a subsidiary held by Company on October 31, 2021.
     [Note 2] As of the acquisition date October 31, 2021, the fair value of the identifiable net assets attributable
to the owners of the parent company of Gree Altairnano New Energy was 1,215,497,529.64 yuan, and the fair
value of the corresponding identifiable net assets was appraised by China United Assets Appraisal Group Limited,
which issued appraisal report ZLPBZ [2022] No. 1362.

     The formed goodwill on the combination of Gree Altairnano is mainly due to the fact that the fair value share
of the identifiable net assets of Gree Altairnano acquired by the Company on the acquisition date is lower than the
combined cost. The asset valuation on the date of this purchase used the asset-based method, the value of the
future business growth of Gree Altairnano could not be fully reflected due to the limitations of the valuation
                                                                         42
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


method itself. At present, the business relationship between Gree Electric Appliances and Gree Altairnano has
been rationalized and preliminary results have been achieved. In the future, the company will continue to promote
comprehensive integration and synergistic development, grasp market and industry development opportunities,
further enhance the comprehensive competitiveness and sustainable development capability of Gree Altairnano
and prevent goodwill impairment risk.

     (3) Identifiable assets and liabilities of the acquiree on the acquisition date
                                                                                                                  Unit: Yuan

                                                                     Gree Altairnano New Energy Inc.
                        Item
                                               Fair value on the acquisition date       Book value on the acquisition date
 Assets:
 Monetary funds                                                     1,646,843,953.97                         1,646,843,953.97
 Trading financial liabilities                                             10,000.00                                 10,000.00
 Accounts receivable                                                2,779,548,017.55                         2,779,548,017.55
 Advance payments                                                     215,800,208.73                           215,800,208.73
 Other receivables                                                    234,176,292.67                           234,176,292.67
 Inventory                                                          2,135,766,221.72                         2,135,766,221.72
 Contract assets                                                      996,806,636.13                           996,806,636.13
 Non-current assets due within one year                                 2,810,789.73                              2,810,789.73
 Other current assets                                                 856,356,937.01                           856,356,937.01
 Long-term receivables                                                  3,014,657.86                              3,014,657.86
 Long-term equity investments                                         390,685,789.09                           535,849,709.81
 Other equity instruments investments                                   2,170,000.00                              2,170,000.00
 Investment real estate                                                30,434,649.00                              6,404,970.97
 Fixed assets                                                       9,851,922,127.54                         8,874,157,430.70
 Construction in progress                                           2,341,162,945.24                         2,301,429,874.64
 Intangible assets                                                  3,078,130,531.23                         2,103,825,250.26
 Long-term unamortized expenses                                        18,801,886.89                            18,801,886.89
 Deferred income tax assets                                         1,906,423,128.64                         1,906,423,128.64
 Other non-current assets                                             277,326,714.43                           277,326,714.43
 Subtotal of assets                                                26,768,191,487.43                        24,897,522,681.71
 Liabilities:
 Short-term borrowings                                              2,202,310,244.21                         2,202,310,244.21
 Notes payable                                                      1,382,825,460.48                         1,382,825,460.48
 Accounts payable                                                   4,860,305,562.25                         4,860,305,562.25
 Contract liabilities                                               5,024,137,616.68                         5,024,137,616.68
 Employee pay payable                                                  49,442,281.69                            49,442,281.69
 Taxes and dues payable                                                46,366,595.59                            46,366,595.59
 Other payables                                                     4,233,517,352.93                         4,233,517,352.93
 Non-current liabilities due within one year                           98,518,621.44                            98,518,621.44


                                                              43
                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


 Other current liabilities                                               2,088,457,921.70                               2,088,457,921.70
 Long-term borrowings                                                      850,000,000.00                                 850,000,000.00
 Long-term payables                                                        392,843,262.75                                 392,843,262.75
 Deferred Income                                                         1,186,062,239.50                               1,186,062,239.50
 Deferred income tax liabilities                                             13,873,952.69                                  13,873,952.69
 Subtotal of liabilities                                                22,428,661,111.91                              22,428,661,111.91
 Net assets                                                              4,339,530,375.52                               2,468,861,569.80

     Before the acquisition date, affected by the corporate governance problems caused by the alleged
misappropriation of the interests of Gree Altairnano by the former controlling shareholder of Gree Altairnano,
Gree Altairnano was restricted in the financing, resulting in production capacity not being fully unleashed and in a
continuous loss; after the listed company acquired the control of Gree Altairnano on the acquisition date, Gree
Altairnano was managed in strict accordance with relevant laws and regulations and various corporate systems,
and the annual auditing accountant, China Audit Union Power Certified Public Accountants Co., Ltd. (Special
General Partnership), adjusted the accounting policies of Gree Altairnano based on the operating conditions and
prudent considerations and with reference to the standards of listed companies and made corresponding audit
adjustments. The above situation had an impact on the purchase date book value of the net assets of Gree
Altairnano.

      Gree is committed to building into a more competitive, diversified, technology-based global industrial group
with a long-term, in-depth layout of the new energy sector. The company's participation in the judicial auction to
acquire Gree Altairnano aims to combine the core technologies of Gree Altairnano batteries with the company's
"zero carbon source" and other multi-dimensional low-carbon technologies to give full play to its overall resource
advantages and further improve new energy industry layout. Up to now, the business relationship between Gree
Electric Appliances and Gree Altairnano has been rationalized and preliminary results have been achieved, and the
number of new energy vehicles being made by Gree Altairnano exceeded the level of the same period in 2020 and
2021; lithium titanate battery achieved good results in overseas and domestic markets with its superior
performance, and the relevant patent has recently been selected for the list of China Patent Award, being the only
lithium battery product in the new energy industry that won the gold medal. The performance and yield of
LiFePO4 products have also been greatly improved, and the production capacity will be unleashed gradually. With
the gradual unleashing of production capacity and the recovery of profitability in the future, Gree Altairnano’s
value will also continue to increase.

     (4) Gains or losses arising from the remeasurement of equity held before the purchase date at fair value

                                                                                                                Gains or losses on
                                      Book value of equity held
                                                                       Fair value on the purchase date    remeasurement of previously
  Name of the Purchased Party       before the acquisition date on
                                                                        of share held before that date   held equity interest to fair value
                                         the acquisition date
                                                                                                           before the acquisition date
Gree Altairnano New Energy Inc.                 None                                None                               None

     (5) Methodology and key assumptions for determining fair value on the acquisition date

      1. Valuation determination method: The assets and liabilities were mainly evaluated using the asset-based
          method and the income method.
      2. Key assumptions in the evaluation process.
      A. The appraised entity is capable of making timely adjustments and innovations in line with the
                                                                  44
                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


development of the market and science and technology, while maintaining consistency in its business scope,
business methods and management mode.
     B. Except for the fixed asset investments for which there is definite evidence of changes in production
capacity after the benchmark date of the appraisal, the production capacity of the enterprise's products is estimated
based on the status as of the benchmark date of the appraisal, assuming that the appraised entity will not make any
significant fixed asset investment activities affecting its operation in the future revenue period;
     C. Assuming that the appraised entity will maintain a similar turnover of accounts receivable and accounts
payable in the future earnings period as in historical years, and that there will be no default in payment that is
materially different from historical years;
     D. The assets and liabilities declared by the appraised entity are free from title disputes and other economic
disputes;
     E. The appraised entity's future sources of funding and costs for R&D and production will not have a
material adverse impact on the enterprise.
      3. Reasons for asset appreciation:
     A. Machinery and equipment: the market price of some equipment increased and the depreciable life of the
enterprise's equipment was shorter than the economic life of the equipment;
     B. Housings and buildings: there was a difference between the depreciable life and the actual economic life,
and some buildings were built a long period of time ago, resulting in an increase in replacement costs (labor,
materials, etc.);
     C. Land use rights: the time when the enterprise acquired the land is far from the benchmark date of the
evaluation and the price was low, and the land price increased between the acquisition date and the current
valuation benchmark date.

2. Business combination under the same control
         No.

3. Reverse purchase
        No.




                                                         45
                                                                                        2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


4. Disposal of subsidiaries

                                                                                                                                                                             Unit: Yuan

                                                                                                          The
                                                                                                        differenc
                                                                                                           e
                                                                                                        between
                                                                                                           the                                                                Amount
                                                                                                                                                                  Determin
                                                                                                        disposal                                                              of other
                                                                                                                                                                   ation
                                                                                                        price and                                                            comprehe
                                                                                                                                                                  methods
                                                                                                        the share   Propor                                                      nsive
                                                                                                                                                    Gains or      and main
                                                                                                         of the     tion of    Book        Fair                                income
                                                                                                                                                      losses      assumpti
                                        Equity   Equit                                                  subsidiar   remain    value of   value of                             related to
                                                                                                                                                     arising       ons of
                                        dispos     y                                                     y's net     ing      remainin   remainin                              equity
                              Equity                     Time point                                                                                   from        the fair
                                          al     dispo                Basis for determining the point   assets in   equity    g equity   g equity                            investmen
     Company name             disposa                     of losing                                                                                 remeasure     value of
                                        propor    sal                     at which control is lost         the      on the     on the     on the                               t of the
                              l price                     control                                                                                    ment of        the
                                         tion    meth                                                   consolida   date of   date of    date of                              original
                                                                                                                                                    remaining     remainin
                                         (%)      od                                                       ted      losing     losing     losing                              company
                                                                                                                                                    equity at     g equity
                                                                                                        financial   control   control    control                              transferre
                                                                                                                                                    fair value.    on the
                                                                                                        statement    (%)                                                       d into
                                                                                                                                                                   date of
                                                                                                            s                                                                investmen
                                                                                                                                                                   losing
                                                                                                        correspo                                                               t profit
                                                                                                                                                                  control.
                                                                                                        nding to                                                              and loss.
                                                                                                           the
                                                                                                        disposal
                                                                                                        investme
                                                                                                           nt.

SL Group Jiangwan Rice        255,00      2.00   Sale    August,      Share Transfer Agreement          215,501.     49.00    1,145,00   1,145,00                 Book       None


                                                                                          46
                                                                                        2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
Industry Co., Ltd               0.00                    2021                                                  72            0.00     0.00             value

SL Group Lianhe Ecology       21,000.                   August,                                         -50,939.5                                     Book
                                         21.00   Sale                Share Transfer Agreement                       49.00                                       None
Farm Co., Ltd                     00                    2021                                                   4                                      value

SL Group Yuan Agriculture                               September,   Industrial   and      commercial                                                 Book
                                         40.00   Sale                                                   2,291.72    30.00                                       None
Co., Ltd                                                2021         change registration                                                              value

SL Group Lvzhiyuan                                      September,   Industrial   and      commercial   142,792.                                      Book
                                         40.00   Sale                                                               30.00                                       None
Agriculture Co., Ltd                                    2021         change registration                      55                                      value

SL Group Dongwei Rice                                   September,   Industrial   and      commercial   92,134.3                                      Book
                                         21.00   Sale                                                               30.00                                       None
Industry Co., Ltd                                       2021         change registration                       2                                      value

SL(Ningbo) Grain Sales Co.,                             September,   Industrial   and      commercial   23,927.9                                      Book
                                        100.00   Sale                                                                                                           None
Ltd                                                     2021         change registration                       1                                      value




                                                                                           47
                                    2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021



5. Change of combination scope for other reasons
    (1) Newly established entities for the current period
                                                                                                                            Unit: Yuan

                            Name                              Date of       Net assets at the end of the Net profit from the combination
                                                          establishment               period             date to the end of the period
Zhuhai Gree Electormechanical Engineering (Linyi) March 1, 2021                         36,931,910.01                      6,931,910.01
Co., Ltd.
Wuhu Gree Intelligent Logistics Co., Ltd               March 19, 2021
Gree (Zhuhai Hengqin) GREE Development Co.,
                                                       April 25, 2021                  998,450,036.83                     -1,549,963.17
Ltd.
Gree Electric Appliances (Linyi) Co., Ltd.             May 6, 2021                     194,574,519.31                     -5,425,480.69
Jiangxi Jinrun Real Estate Co., Ltd                    June 16, 2021                    85,809,836.46                    -14,190,163.54
Changsha Kinghome Electrics Co., Ltd                   July 1, 2021                      5,720,175.31                       -279,824.69
Green Electricity New Material (Maanshan)              September 7,
Technology Co., Ltd.                                   2021
Wuhan Yuli Runzhu Real Estate Co., Ltd                 September 26,                     6,723,663.82                       -276,336.18
                                                       2021
Huaxingaodao (Maanshan) Technology Co., Ltd.           October 15, 2021
Zhuhai MinRoad Supply Chain Technology Co.,            November 19,
Ltd                                                    2021
           (2) Other decrease for the current period

    In August 2021, the company cancelled its subsidiaries, SL Group Ermapao Eco-Farm Co., Ltd. and Handan
YingDong New Energy Technology Co., Ltd.

(7) Major changes or adjustments in the Company's business, products or services during the report period

□ Applicable √ Not applicable


(8)Main sales customers and suppliers

Main sales customers of the Company

Total sales amount of the top five customers (yuan)                                                                 30,819,315,606.26

Proportion of total sales amount of 5 top customers to the total annual sales                                                  16.25%

Proportion of sales amount of related party in the sales amount of 5 top customers
                                                                                                                                0.00%
to the total annual sales

Information of top 5 customers

Serial No.                   Customer name                     Amount of sales (yuan)            Proportion to total annual sales

       1       First                                                      7,995,073,996.04                                      4.22%

       2       Second                                                     6,174,062,804.40                                      3.26%

                                                                   48
                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


    3      Third                                                        5,842,521,938.70                                        3.08%

    4      Fourth                                                       5,698,659,582.61                                        3.00%

    5      Fifth                                                        5,108,997,284.51                                        2.69%

  Total                           --                                   30,819,315,606.26                                      16.25%

Other description of major customers
□ Applicable √ Not applicable
Main suppliers of the Company

Total purchase amount of the top five suppliers (yuan)                                                             46,390,746,483.63

Proportion of total purchase amount of 5 top customers to the total annual purchase                                           35.07%

Proportion of related parties' total purchase amount in the amount of purchase of top 5 suppliers
                                                                                                                                0.00%
to the total amount of annual purchase

Information about top 5 suppliers of the Company

 Serial No.                Supplier name                    Amount of purchase (yuan)        Proportion to the total annual purchase

     1        First                                                    15,446,631,024.26                                      11.68%

     2        Second                                                    8,632,767,550.14                                        6.53%

     3        Third                                                     8,472,142,154.67                                        6.40%

     4        Fourth                                                    7,132,269,860.53                                        5.39%

     5        Fifth                                                     6,706,935,894.03                                        5.07%

   Total                           --                                  46,390,746,483.63                                      35.07%

Other description of major suppliers
□ Applicable √ Not applicable


3. Expenses

                                                                                                                             Unit: Yuan

                                                                                                                 Year-on-year
                                                     2021                             2020
                                                                                                               increase/decrease

Sales expense                                        11,581,735,617.31                13,043,241,798.27                      -11.21%

Administrative expense                                4,051,241,003.05                  3,603,782,803.64                     12.42%

Financial expense                                    -2,260,201,997.18                 -1,937,504,660.07                     -16.66%

Research and development expenses                     6,296,715,941.03                  6,052,563,108.10                        4.03%


4. R&D investment

√ Applicable □ Not applicable

  Name of major                                                                                        Expected impact on the future
                          Project purpose          Project Progress      Objectives to be achieved
   R&D projects                                                                                         development of the company


                                                                  49
                                     2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                                                                                          Improve the heating
                                                                                                          performance and thermal
                      Improve customer
Continuous heating                                                       Achieve defrosting without       comfort of air source heat
                      thermal comfort and         Completed, product
high-efficiency hot                                                      sudden cooling and               pumps, achieve green and
                      achieve energy-saving       is available on the
gas defrosting                                                           continuous heating during        low-carbon operation, while
                      and emission-reducing       market
technology                                                               defrosting                       improving the quality of life
                      operation
                                                                                                          of customers in winter
                                                                                                          heating.

Research and
                      Develop environmentally                            Low GWP refrigerant
Application of New
                      friendly refrigerant                               application, achieve a variety
Generation                                        Completed, product
                      products to reduce                                 of functions to improve the      Enhance market
Environmentally                                   is available on the
                      environmental pollution                            user experience through the      competitiveness
Friendly                                          market
                      and improve product                                application of a number of
Refrigerant Air
                      performance                                        technology research.
Duct Machine

                      Expand the product
                      category and
Research on key
                      manufacture a series of                            Improve the competitiveness
technologies for
                      new platform washing                               of Gree washing machine          Enhance market
efficient washing                                 Completed
                      machines with large                                market and meet the market       competitiveness
and drying of
                      capacity and thin size in                          demand.
clothes
                      line with the market
                      mainstream.




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                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                                                           1. Green and environmental
                                                                           protection: remove indoor
                                                                           formaldehyde efficiently, and
                                                                           continuously decompose
                                                                           formaldehyde into CO2 and
                                                                           H2O. 2. Long-lasting
                                                 Completed,                aldehyde removal: purifier
Research and                                     technology identified products’ formaldehyde CCM
application of high                              by academicians of        exceeds 6 times the highest
                      Achieve long-lasting                                                                     Improve product
efficiency room                                  Chinese Academy of level of national standards,
                      green formaldehyde                                                                       performance, meet user needs,
temperature                                      Sciences and air          extending the life of the filter;
                      removal and enhance                                                                      and increase product
catalytic                                        purification industry 3. Energy saving and
                      user comfort experience.                                                                 competitiveness.
formaldehyde                                     experts, reaching         environmental protection: the
removal purifier                                 "international            energy efficiency of the whole
                                                 Leading" level            machine exceeds 30% of the
                                                                           national standards of energy
                                                                           efficiency; 4. Comfortable
                                                                           and quiet: noise at the highest
                                                                           gear as low as 63dB. 5.
                                                                           Technology reached "World
                                                                           Leading" level

                                                                                                               Enhance the company's
                                                 Completed R&D of          Leading technology, series          technological level and
Industrial
                      Provide new technology standard products             products achieve IE5 high           market competitiveness in the
permanent magnet
                      solutions for industrial   and realized the          energy efficiency, while            industrial field through
assisted reluctance
                      motor efficiency           application in the        ensuring high cost                  technological and product
motor R&D
                                                 general machinery         performance                         innovation in industrial
                                                                                                               motors.




                                                                      51
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                                                        Combined the technologies of
                                                                        photovoltaic power
                                                                        generation, energy storage,
                                                                        and efficient and intelligent
                                                                        energy consumption for air
                                                                        conditioners, realized local
                                                                        consumption of photovoltaic
                                                                        power, peak-shaving and
Research on the key
                      Research on the key                               valley-filling, and off-grid
technology of
                      technology of PEDF zero Completed                 operation of the system. The       Provide innovative products
PEDF zero-carbon
                      carbon building                                   application of photovoltaic
building
                                                                        (storage) air conditioner can
                                                                        reduce or get rid of the
                                                                        dependence on the power
                                                                        grid, and it has excellent
                                                                        power regulation performance
                                                                        by double control and double
                                                                        reduction in terms of energy
                                                                        consumption and load.

Company R&D personnel

                                            2021                                  2020                            Change Ratio

Number of R&D personnel
                                                          14,233                               14,458                             -1.56%
(persons)

Proportion of number of R&D
                                                      17.38%                                  17.22%                              0.16%
personnel

Academic structure of R&D
                                              --                                    --                                 --
personnel

Bachelor                                                   8,610                                   9,310                          -7.52%

Master                                                     1,449                                   1,742                         -16.82%

Doctor                                                       34                                      41                          -17.07%

Age composition of R&D
                                              --                                    --                                 --
personnel

Below 30 years old                                         8,855                                   9,515                          -6.94%

30~40 years old                                            4,345                                   4,119                          5.49%




R&D investment of the Company

                                            2021                                  2020                            Change Ratio



                                                                   52
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Investment amount in research
                                               6,528,680,941.53                 6,213,796,926.90                           5.07%
and development (Yuan)

Proportion of investment in
research and development to the                           3.48%                            3.69%                          -0.21%
operating revenue

Capitalization amount of
research and development                         231,965,000.50                   161,233,818.80                          43.87%
investment (yuan)

Proportion of capitalized
research and development
                                                          3.55%                            2.59%                           0.96%
investment to research and
development investment

Reasons and influences of significant changes in the composition of R&D personnel in the company
□ Applicable √ Not applicable
Reasons for significant changes in the proportion of total R&D investment to the operating revenue compared with the previous year
□ Applicable √ Not applicable
Reasons for the large change of capitalization rate of R&D investment and its reasonableness
□ Applicable √ Not applicable


5. Cash flow

                                                                                                                         Unit: Yuan

              Item                            2021                             2020                Year-on-year increase/decrease

Subtotal of cash inflows from
                                             177,201,260,717.00              163,892,764,321.22                            8.12%
operating activities

Subtotal of cash outflows from
                                             175,306,897,458.28              144,654,127,012.06                           21.19%
operating activities

Net cash flows from operating
                                               1,894,363,258.72                19,238,637,309.16                         -90.15%
activities

Subtotal of cash inflows from
                                              55,391,360,332.62                14,155,332,757.58                         291.31%
investment activities

Subtotal of cash outflows from
                                              25,639,376,773.27                14,057,602,607.40                          82.39%
investment activities

Net cash flows from investment
                                              29,751,983,559.35                    97,730,150.18                      30,342.99%
activities

Subtotal of cash inflows from
                                              89,991,092,450.05                37,614,461,534.80                         139.25%
financing activities

Subtotal of cash outflows from
                                             115,321,676,340.53                58,725,959,033.00                      Translation
financing activities


                                                                  53
                                     2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Net cash flow from financing
                                                -25,330,583,890.48               -21,111,497,498.20                        19.98% -19.98
activities

Net increase in cash and cash
                                                  5,726,694,119.85                -2,147,522,183.34                 366.67% Translation
equivalents

Description of the main factors affecting the significant year-on-year change in the relevant data
√ Applicable □ Not applicable
1. Net cash flow from operating activities decreased by 90.15% year-on-year, mainly due to the increase in net increase in cash paid
for goods and services purchased and loans and advances from customers.
2. Net cash flow from investing activities increased by 30,342.99% year-on-year, mainly due to the increase in other cash received in
connection with investing activities.
Reasons for significant differences between net cash flow from operating activities and net profit for the year during the report period
□ Applicable √ Not applicable


V. Analysis of non-main business

□ Applicable √ Not applicable


VI. Analysis of Assets and Liabilities

1. Significant changes in the composition of assets

                                                                                                                                Unit: Yuan

                                           At the end of 2021                       At the beginning of 2021                  Proportion
                                                        Proportion to total                          Proportion to total      increase or
                                     Amount                                       Amount
                                                              assets                                       assets              decrease

Monetary funds                    116,939,298,776.87                36.59%     136,413,143,859.81                48.85%           -12.26%

Accounts receivable                13,840,898,802.76                   4.33%     8,738,230,905.44                   3.13%           1.20%

Contract assets                     1,151,228,472.63                   0.36%        78,545,525.60                   0.03%           0.33%

Inventory                          42,765,598,328.01                13.38%      27,879,505,159.39                   9.98%           3.40%

Investment real estate               454,854,822.63                    0.14%      463,420,861.39                    0.17%          -0.03%

Long-term equity
                                   10,337,008,014.57                   3.23%     8,119,841,062.14                   2.91%           0.32%
investments

Fixed assets                       31,188,726,142.99                   9.76%    18,990,525,087.94                   6.80%           2.96%

Construction in progress            6,481,236,333.38                   2.03%     4,016,082,730.07                   1.44%           0.59%

Usufruct assets                         14,603,282.99                  0.00%        38,952,103.28                   0.01%          -0.01%

Short-term borrowings              27,617,920,548.11                   8.64%    20,304,384,742.34                   7.27%           1.37%

Contract liabilities               15,505,499,178.75                   4.85%    11,678,180,424.65                   4.18%           0.67%

Long-term borrowings                8,960,864,258.30                   2.80%     1,860,713,816.09                   0.67%           2.13%

Lease liabilities                        3,313,452.52                  0.00%         9,410,352.55                   0.00%           0.00%

                                                                       54
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Overseas assets account for a relatively high proportion.
□ Applicable √ Not applicable




                                                            55
                                                                                                 2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
2. Assets and liabilities measured at fair value

√ Applicable □ Not applicable
                                                                                                                                                                                        Unit: Yuan

                                                                  Gains or losses on                          Impairment
                                              Amount at the                              Accumulated fair
                                                                 changes in fair value                        accrued for Purchase amount for Selling amount for     Other    Amount at the end of
                   Item                      beginning of the                             value changes
                                                                    for the current                           the current the current period   the current period   changes        the period
                                                 period                                  included in equity
                                                                        period                                  period

Financial liabilities

1. Trading financial liabilities
                                                370,820,500.00            631,554.78                                          660,611,937.82    1,032,063,992.60
(excluding derivative financial assets)

2. Derivative financial liabilities             285,494,153.96        -86,720,955.31                                                                                               198,773,198.65

3. Other debt investments                       502,202,293.17          9,239,147.26          14,006,555.87                 5,210,000,000.00                                      5,910,056,891.62

4. Other equity instruments investments       7,788,405,891.47      2,389,207,456.95       5,328,875,076.08                    41,680,735.20        85,167,806.45                10,114,246,030.05

5. Receivable financing                      20,973,404,595.49        -10,935,725.15         -82,636,245.91                 4,649,587,822.73                                    25,612,056,693.07

6. Other non-current financial liabilities    2,003,483,333.33          -3,174,005.94                                          81,000,000.00    2,000,000,000.00                     81,309,327.39

7. Others                                        44,822,900.00           -447,304.28          30,939,495.72                12,160,000,000.00                                    12,376,325,374.41

Subtotal of financial liabilities            31,968,633,667.42      2,297,800,168.31       5,291,184,881.76                22,802,880,495.75     3,117,231,799.05               54,292,767,515.19

Total above                                  31,968,633,667.42      2,297,800,168.31       5,291,184,881.76                22,802,880,495.75     3,117,231,799.05               54,292,767,515.19

Financial liabilities



Other changes
None
Whether there were any significant changes in the measurement attributes of the Company's major assets during the report period
□ Yes √ No

                                                                                                  56
                                    2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


3. Restricted rights to assets as of the end of the report period

                                                                                                                           Unit: Yuan

                    Item                        Book value at the end of the period                    Restricted reason

                                                                                            Statutory deposit reserve and
  Monetary funds                                                        37,328,823,349.13
                                                                                            deposits

  Accounts receivable                                                      276,321,025.79   Pledged

  Receivable financing                                                  12,911,461,792.08   Pledged

  Contract assets                                                          422,560,112.06   Pledged

  Other current assets                                                   6,800,000,000.00   Pledged

  Non-current assets due within one
                                                                            60,197,639.98   Pledged
  year

  Other debt investments                                                 4,717,527,970.00   Pledged

  Other          equity       instruments
                                                                         8,938,973,543.22   Restricted shares
  investments

  Long-term equity investments                                             312,711,807.79   Pledged

  Fixed assets                                                             847,908,771.37   Pledged

  Construction in progress                                                 225,701,846.53   Pledged

  Intangible assets                                                        947,343,396.76   Pledged

  Other non-current assets                                                  44,163,315.00   Pledged

                    Total                                               73,833,694,569.71




VII. Analysis of investments

1. Overall review

√ Applicable □ Not applicable

                                                Investment in the same period last
  Investment in the report period(yuan)                                                           Change percentage
                                                           year(yuan)

                            18,154,432,702.74                        3,561,055,956.90                                      409.80%




                                                                57
                                                                                                                         2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
2. Major equity investments obtained during the report period

√ Applicable □ Not applicable
                                                                                                                                                                                                                     Unit: Yuan

                                                                                                                                    Progress as                  Profit and loss
  Name of                                                                                                                                                                          Whether it is
                   Main        Investment     Investment       Shareholding   Capital                Investment                       of the       Expected     on investments                      Disclosure     Disclosure
  investee                                                                                Partner                 Product type                                                     involved in a
                 business         mode          amount          proportion    source                    term                       balance sheet   revenue       for the current                   date (if any) Index (if any)
  company                                                                                                                                                                            lawsuit
                                                                                                                                       date                          period

               Research and
               development
               of new
                                                                                                                                                                                                                 Gree Electric
               energy                                                                                             New energy
                                                                                                                                                                                                                 Appliances:
               technology,                                                                                        vehicles,
Gree                                                                                                                                                                                                             Announcement
               production                                                                                         lithium-ion
Altairnano                                                                                                                                                                                         August 31,    of Foreign
               and sales of    Acquisition 1,828,275,113.56         30.47% Own funds    None        Long term     batteries,       Completed                  - -126,989,002.82 No
New Energy                                                                                                                                                                                         2021          Investment
               lithium-ion                                                                                        energy
Inc.                                                                                                                                                                                                             and Related
               power                                                                                              storage
                                                                                                                                                                                                                 Transactions
               batteries and                                                                                      products, etc.
                                                                                                                                                                                                                 (2021-060)
               energy
               storage
               batteries

Total                --            --       1,828,275,113.56        --          --             --        --             --              --                    -- -126,989,002.82        --                --           --


3. Significant non-equity investments in progress during the report period

□ Applicable √ Not applicable




                                                                                                         58
                                                                                                                                    2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
4. Financial Assets Investments

(1) Securities investment

√ Applicable □ Not applicable




                                                                                                                                                                                                                                  Unit: Yuan

                                                                                                   Gains or losses on
                                                                  Accounting   Book value at the                          Accumulated fair     Purchase       Selling amount    Profit/loss
 Type of     Securities      Securities     Initial investment                                      changes in fair                                                                            Book value at the Accounting         Capital
                                                                 measurement beginning of the                              value changes     amount for the for the current     during the
securities     code         abbreviation          cost                                               value for the                                                                             end of the period     Accounts        source
                                                                     model          period                                included in equity current period       period       report period
                                                                                                     current period

Stocks
listed on
domestic                                                                                                                                                                                                           Other equity
                                                                 Measured at                                                                                                                                                        Own
and          600745       WINGTECH            884,999,996.60                   3,550,040,505.00 1,086,527,548.50 3,751,568,056.90                                               5,916,734.18 4,636,568,053.50 instruments
                                                                 fair value                                                                                                                                                         funds
overseas                                                                                                                                                                                                           investments
stock
exchanges

Stocks
listed on
domestic                                                                                                                                                                                                           Other equity
                          San'an                                 Measured at                                                                                                                                                        Own
and          600703                         2,000,000,000.00                   3,093,928,974.37 1,208,476,515.35 2,302,405,489.72                                              17,182,130.55 4,302,405,489.72 instruments
                          Optoelectronics                        fair value                                                                                                                                                         funds
overseas                                                                                                                                                                                                           investments
stock
exchanges

                                                                                                                     59
                                                                                                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

Stocks
listed on
domestic                                                                                                                                                                                       Other equity
                                                              Measured at                                                                                                                                     Own
and         600619      Highly             1,141,510,131.07                 667,802,216.81   88,370,312.43    -386,430,427.61                                 14,411,825.47   755,079,703.46 instruments
                                                              fair value                                                                                                                                      funds
overseas                                                                                                                                                                                       investments
stock
exchanges

                        16.
                                                              Measured at                                                                                                                      Other debt     Own
Bonds       160017      Interest-bearing    288,405,500.00                  298,866,682.20    4,883,141.17       7,448,985.41                                 14,301,000.00   304,947,682.20
                                                              fair value                                                                                                                       investments    funds
                        treasuries 17

Stocks
listed on
domestic                                                                                                                                                                                       Other equity
                        Xinjiang                              Measured at                                                                                                                                     Own
and         600888                          111,836,005.99                  215,172,336.36   45,737,682.63    105,586,941.75    41,680,735.20 85,167,806.45    3,918,701.49   217,422,947.74 instruments
                        Joinworld                             fair value                                                                                                                                      funds
overseas                                                                                                                                                                                       investments
stock
exchanges

                                                              Measured at                                                                                                                      Other debt     Own
Bonds       200408      20 Nongfa 08        199,203,000.00                  203,335,610.97    3,416,815.03       5,618,379.40                                 10,476,600.00   206,912,210.97
                                                              fair value                                                                                                                       investments    funds

                        21 Huafa Group                        Measured at                                                                                                                      Other debt     Own
Bonds       102101215                       200,000,000.00                                      812,000.00        812,000.00 200,000,000.00                    5,474,739.71   205,576,657.52
                        MTN007                                fair value                                                                                                                       investments    funds

Stocks
listed on
domestic                RS                                                                                                                                                                     Other equity
                                                              Measured at                                                                                                                                     Own
and         01528       MACALLINE-          640,024,820.31                  254,461,858.93   -39,904,601.96   -444,254,984.68                                                 195,769,835.63 instruments
                                                              fair value                                                                                                                                      funds
overseas                H SHS                                                                                                                                                                  investments
stock
exchanges

                                                                                                        60
                                                                                                                       2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                         Ronghui Single
                                                                                                                                                                                               Trading
                         Asset                                Measured at                                                                                                                                     Own
Others      -                                81,000,000.00                                        309,327.39                    81,000,000.00                  309,327.39     81,309,327.39 financial
                         Management                           fair value                                                                                                                                      funds
                                                                                                                                                                                               liabilities
                         Plan

                         19 Huafa Group                       Measured at                                                                                                                      Other debt     Own
Bonds       101901653                        59,587,700.00                                        445,070.72       445,070.72   60,000,000.00                2,287,646.15     60,392,960.52
                         MTN007                               fair value                                                                                                                       investments    funds

Other investment securities held at the
                                               9,996,590.00         --                            127,191.06       127,191.06   10,000,000.00                  391,349.87     10,155,063.15           --         --
end of the period

                                                                                                                                                                            10,976,539,931.8
Total                                     5,616,563,743.97          --      8,283,608,184.64 2,399,201,002.32 5,343,326,702.67 392,680,735.20 85,167,806.45 74,670,054.81                             --         --
                                                                                                                                                                                          0

Securities Investment Approval Board
                                          April 29, 2021
Announcement Disclosure Date

Date of disclosure of announcement of
shareholders' meeting for approval of     June 30, 2021
securities investment (if any)


(2)Investment in derivatives

√ Applicable □ Not applicable




                                                                                                                                                                                                     Unit: 10,000 yuan




                                                                                                          61
                                                                                                                               2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                                                                                                                                                      Proportion of
                                                                       Initial                                                                                                                         the ending     Profits and
   Operation                                                                                                           Investment       Amount                         Amount of
                                      Whether        Types of        investment                                                                       Amount sold                       Ending         investment       losses
    name of         Related                                                                                           amount at the    purchased                      provision for
                                      related      Derivatives       amount of          Start date    Expiry date                                      during the                      investment     amount to net during the
 investment in    relationships                                                                                       beginning of     during the                     impairment (if
                                  transactions     Investments       derivative                                                                       report period                     amount        assets at the     report
   derivative                                                                                                          the period     report period                       any)
                                                                     investment                                                                                                                        end of the       period
                                                                                                                                                                                                      report period

Futures                                          Futures hedging                      January 1,     December 31,
                 Unrelated party No                                        4,482.29                                        4,482.29                                                        4,393.05          0.04% 17,333.51
company                                          contracts                            2021           2021

                                                 Forward
Financial                                                                             January 1,     December 31,
                 Unrelated party No              financial                28,549.42                                       28,549.42                                                       19,877.32          0.19% 26,089.69
institution                                                                           2021           2021
                                                 contracts

Total                                                                     33,031.71          --             --            33,031.71                                                       24,270.37          0.23% 43,423.20

Derivatives investment funding sources                             Own funds

Involvement in lawsuits (if applicable)                            None

Date of Disclosure of Announcement of Board for Approval of
                                                                   April 29, 2021
Derivatives Investment (if any)

Date of Disclosure of Announcement of Shareholders' Meeting
                                                                   July 1, 2021
for Approval of Derivative Investment (if any)




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                                                                                                                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                     I. Risk Analysis
                                                                     1. Market risk: The exchange rate fluctuations in both directions increased significantly, and there was a possibility that the exchange rate of forward and
                                                                     option contracts might differ from the actual exchange rate on the maturity date, which might result in losses. The Company entered into forward and option
                                                                     contracts based on the real import and export trade background and reasonable estimation of future foreign exchange revenue and expenditure, and managed
                                                                     the exchange rate risk of the Company's import and export business and foreign exchange position with the idea of "risk-neutral" and the principle of
                                                                     cost-profit.
                                                                     2. Default risk: The company entered into the above foreign exchange fund transaction contracts based on the real import and export trade background and
                                                                     reasonable estimation of future foreign exchange revenue and expenditure, and there was no performance risk; the company chose commercial banks with

Risk analysis and description of control measures for derivative     good creditworthiness for its foreign exchange contracts, and basically did not need to consider the risk of default caused by their failure.

positions during the report period (including but not limited to     3. Liquidity risk: All foreign exchange fund transactions met the requirements of trade authenticity, and the relevant foreign exchange fund transactions would
market risk, liquidity risk, credit risk, operational risk, legal risk, be operated by means of bank credit, which would not affect the liquidity of the company.
etc.)                                                                II. Risk Management Measures
                                                                     1. Based on the basic situation of foreign exchange derivatives trading business approved by the Board of Directors, the fund operation and management
                                                                     center proposed a reasonable assessment and concrete implementation plan based on the real trade background and reasonable estimation of future foreign
                                                                     exchange revenue and expenditure and business needs.
                                                                     2. Each foreign exchange derivative trading business is subject to a three-tier approval system, i.e. the approval of the head of foreign exchange business of the
                                                                     fund operation and management center, the head of the fund operation and management center and the Finance Chief of the company is required before
                                                                     implementation.
                                                                     3. The fund operation management center paid attention to the risk factors of foreign exchange derivatives trading business in real time, and made timely
                                                                     warning and response plan when the market fluctuation caused a large impact.

Changes in the market price or fair value of the product during
the report period of the invested derivatives, and the analysis of
                                                                     The gains or losses of futures hedging contracts for the report period was 173,335,100 yuan, and the gains or losses of forward financial contracts for the
the fair value of the derivatives should disclose the specific
                                                                     report period was 189,945,200.
methodology used and the setting of relevant assumptions and
parameters




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                                                                                                                               2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

Description of whether there has been any significant change in
the accounting policy and specific accounting principles for
                                                                   No change
derivatives during the report period as compared to the previous
report period

                                                                   The independent directors of the Company are of the view that the Company's hedging business of futures on bulk materials is conducive to locking in
                                                                   production costs, controlling operation risks and improving operation management; through foreign exchange derivatives trading business, it is conducive to
Special Opinion of Independent Directors on the Company's
                                                                   further enhancing the Company's foreign exchange risk management capability and realizing the value preservation and appreciation of foreign exchange
Derivatives Investment and Risk Control
                                                                   assets. The Company has established a corresponding control system for the relevant business, and the approval and implementation are legal and compliant,
                                                                   and the risks are controllable, which is in the interests of the Company and all shareholders.




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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


5. Use of proceeds

□ Applicable √ Not applicable
The Company has no use of proceeds during the report period.


XIII. Major assets and equity sales

1. Sale of Major Assets

□ Applicable √ Not applicable
The Company did not sell any major assets during the report period.


2. Sale of significant equity interests

□ Applicable √ Not applicable




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                                                                                            2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

IX. Analysis of major controlled and invested companies

√ Applicable □ Not applicable
Major subsidiaries and participating companies affecting 10% or more of the company's net profit
                                                                                                                                                                          Unit: Yuan

  Company name            Company Type         Main business      Registered Capital      Total Assets        Net assets       Operating revenue   Operating profit   Net profit

Zhuhai Gree Group
Finance Company       Subsidiary            Financial service    3,000,000,000.00       52,270,241,505.71   6,358,255,750.06    1,904,221,332.12     540,431,914.28   407,512,564.92
Limited

Zhuhai Gree                                 Varnished Wire
                      Subsidiary                                 1,669,315,586.15        9,239,746,829.99   3,071,150,525.96 41,290,134,072.88       274,120,524.26   206,698,823.07
Electrical Co., Ltd                         Manufacturing

Gree (Hefei)
                                            Air Conditioner
Electric Appliances Subsidiary                                   150,000,000.00         10,909,050,309.98   4,816,014,155.88 10,216,765,020.91       552,684,110.77   498,823,394.72
                                            Manufacturing
Co., Ltd.

Zhuhai Landa
                                            Compressor
Compressor Co.,       Subsidiary                                 93,030,000.00          12,080,694,348.10   7,577,290,627.39 17,974,060,009.43     1,049,560,580.92   914,068,600.73
                                            Manufacturing
Ltd.

Zhuhai Gree
                                            Capacitor
Xinyuan Electronics Subsidiary                                   126,180,000.00          2,830,418,996.54   1,336,790,817.55    2,021,499,188.74     309,061,240.34   260,613,682.67
                                            Manufacturing
Co., Ltd.

Zhuhai Kaibang
Motor                                       Motor
                      Subsidiary                                 82,000,000.00           4,287,309,451.51   1,165,954,527.79    3,269,955,270.22     158,995,590.91   138,958,620.72
Manufacturing Co.,                          Manufacturing
Ltd.

Gree (Zhongshan)                            Small household
Small Home            Subsidiary            appliances           30,000,000.00           1,191,788,353.90    557,136,192.42     1,030,600,093.91      91,013,640.49    84,346,186.77
Appliances Co.,                             manufacturing

                                                                                             66
       2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
Ltd.




        67
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Information about acquisition and disposal of subsidiaries during the report period
√ Applicable □ Not applicable

                                              Methods of acquisition and disposal of    Impact on overall production and operation
              Company name
                                                subsidiaries during the report period           and financial results(yuan)

Handan Yingdong New Energy
                                            Cancelled                                                                    -1,148.22
Technology Co., Ltd.

SL Group Ermapao Eco-Farm Co., Ltd.         Cancelled                                                                   -72,031.20

SL(Ningbo) Grain Sales Co., Ltd             Transfer account                                                             23,927.91

SL Group Jiangwan Rice Industry Co., Ltd Transfer account                                                               215,501.72

SL Group Lianhe Ecology Farm Co., Ltd       Transfer account                                                            -50,939.54

SL Group Yuan Agriculture Co., Ltd          Transfer account                                                              2,291.72

SL Group Lvzhiyuan Agriculture Co., Ltd Transfer account                                                                142,792.55

SL Group Dongwei Rice Industry Co., Ltd Transfer account                                                                 92,134.32

Gree Electric Appliances (Linyi) Co., Ltd. New                                                                       -5,425,480.69

Gree (Zhuhai Hengqin) GREE
                                            New                                                                      -1,549,963.17
Development Co., Ltd.

Changsha Kinghome Electrics Co., Ltd        New                                                                        -279,824.69

Zhuhai MinRoad Supply Chain
                                            New                                                                                  -
Technology Co., Ltd

Zhuhai Gree Electormechanical
                                            New                                                                       6,931,910.01
Engineering (Linyi) Co., Ltd.

Wuhu Gree Intelligent Logistics Co., Ltd    New                                                                                  -

Jiangxi Jinrun Real Estate Co., Ltd         New                                                                     -14,190,163.54

Green Electricity New Material
                                            New                                                                                  -
(Maanshan) Technology Co., Ltd.

Wuhan Yuli Runzhu Real Estate Co., Ltd      New                                                                        -276,336.18

Huaxingaodao (Maanshan) Technology
                                            New                                                                                  -
Co., Ltd.

Description of major holding and participating companies
Not Applicable


X. Details of Company-controlled Structured Entity

□ Applicable √ Not applicable


XI. Prospects for the future development of the company

(I) Corporate development strategies

                                                                  68
                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


      Gree adheres to the corporate vision of "creating a world-class enterprise and achieving a century-long
brand". Driven by technological innovation and guaranteed by perfect quality, it deepens reform and accelerates
digital transformation, based on the household appliance industry, steadily expands new industries such as
intelligent equipment, precision molds, new energy, semiconductors and core components, and builds a more
competitive diversified, technology-based global industrial group.

(II) Key work in 2022

1. Strengthen the leadership of high-quality party building and build a strong base for party organizations
to fight

     Guided by Xi Jinping's thought of socialism with Chinese characteristics in the new era, the company
comprehensively implements the spirit of the 19th Party Congress and the 19th Plenary Session, coordinates
epidemic prevention and control with production and operation, and further deepens the integration of Party
building work with production and operation management, innovative and realistic dedication culture and
personal development of employees.

2. Grasp the new market opportunities and develop a new diversified development pattern

    Actively respond to the national strategy of expanding domestic demand, embrace the trend of upgrading the
consumption structure, continue to deepen the domestic market, deepen the construction of digital channel
marketing service network, expand the business layout of the commercial sector, expand the sales scale of
photovoltaic (storage) air conditioners, energy storage products, intelligent equipment, precision molds, special
compressors, high-end motors and other products, while grasping the "Belt and Road Initiative” and the location
advantage of the Greater Bay Area, so as to enhance the international competitiveness of the brand.

3. Persevere in scientific and technological innovation to generate new development momentum

     Around the major strategic needs of the country, gave full play to the role of national key laboratories,
strengthen the reserve of cutting-edge technologies, accelerate the conquest of "bottleneck" technologies, take the
market as the center, developed high-quality products for consumers, and shape new advantages in development
relying on scientific and technological innovation.

4. Innovate quality control methods and improve quality level

     With quality first as the guiding ideology and quality innovation-driven as the basic policy, lay a soild quality
technology foundation, establish intelligent quality control mechanism, continuously pursue the excellent quality
of products, projects and services, and enhance the corporate brand value and the overall image of Made in China.

5. Accelerate industrial transformation and upgrade, and promote the integration of digital technology and
industry

     With high-quality development as the guide, transform industries in all aspects and chains utilizing new
Internet technologies, seize the first opportunity of the new round of technological revolution and industrial
change and promote the digital transformation of enterprises.

6. Comprehensively deepen reform and improve organizational effectiveness

     Around the keynote of "cost reduction, efficiency improvement and profit creation", promote and deepen
lean management, further dig the potential of cost reduction and efficiency improvement and enhance enterprise
management efficiency through precise measures and targeted efforts.
                                                         69
                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


7. Strengthen the construction of talent echelon and build a highland for talent gathering

      Improve the selection and training mechanism of talents at all levels, provide a platform for the development
of talents through multiple channels, focus our efforts on building a highland of talents, and provide key elements
for industrial development.

8. Build up security risk prevention and strengthen internal control and compliance management

     Build a comprehensive discipline and audit supervision system, further enhancing security awareness, and
focus on investment, finance and other major risks to strengthen monitoring and early warning, and continuously
improve the level of the company's risk prevention and control and emergency response capabilities.

(III) Main Risks to Future Development

1. Macroeconomic fluctuation risk

     The products sold by the company are mainly HVAC and household appliances, whose market demand is
influenced by the macroeconomy. The current recurring and volatile situation of the COVID-19 epidemic, the
complicated and severe geopolitical situation, the real estate market has not yet rebounded, and the uncertainty of
economic development and residents' income increases, which may lead to a slower pace of consumer recovery,
and the company's household appliance market may also face a slowdown in demand.

2. Risk of factor price fluctuations
       The main raw materials for the company's products are copper, steel, aluminum and plastic of various
grades, which account for a large proportion of the cost. Starting from 2020, the prices of copper, aluminum and
other raw materials has risen rapidly and continue to run high, and the resulting cost pressure will have a certain
impact on the company's operating results. As an industry leader with strong centralized purchasing advantages,
the company will reduce the negative impact of raw material fluctuations on its operations through hedging,
advance stocking and material generalization.

3. Risks arising from increased market competition

     With the implementation of the policy of “housing residence instead of vicious speculation”, the slowing
down of urbanization and the aging of the population, the air conditioning industry has bid farewell to the period
of rapid growth, and the industry is becoming increasingly competitive, which may squeeze the company's
profitability.

4. Market risks from overseas wars and trade protectionism

     Geopolitical tensions, such as local wars and economic sanctions, as well as "counter-globalization" and
trade protectionism, will have a negative impact on global economic recovery and international trade, which will
not be conducive to the Company's export business.

5. Export market risk and exchange loss due to exchange rate fluctuation

    The company's products are exported to more than 180 countries and regions. As the company continues to
expand its overseas markets, exchange rate fluctuations may not only adversely affect the export of the company's
products, but also cause exchange losses and increase financial costs.




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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


XII. Reception, research, communication, interviews and other activities during the report
period

√ Applicable □ Not applicable

                                                                                         Contents
                                                                                                            Index of basic
    Time of           Place of        Method of                                        discussed and
                                                    Reception type Reception object                       information of the
   reception          reception       reception                                           material
                                                                                                              research
                                                                                         provided

                                                                                                       For more details, please
                                                                                                       refer to "Gree: 000651
                                                                   Total number of                     Gree Performance
                  Company
                                                                   institutional and Company           Presentation, Roadshow
May 24, 2021      Conference       Field research   Others
                                                                   individual         operations       Activity Information
                  Room
                                                                   investors: 127                      20210525" disclosed on
                                                                                                       www.cninfo.com.cn on
                                                                                                       May 25, 2021.

                                                                                                       For more details, please
                                                                                                       refer to "Gree: 000651
                                                                   Total number of                     Gree Performance
                  Company
                                   Telephone                       institutional and Company           Presentation, Roadshow
June 26, 2021     Conference                        Others
                                   communication                   individual         operations       Event Information
                  Room
                                                                   investors: 226                      20210627" disclosed on
                                                                                                       www.cninfo.com.cn on
                                                                                                       June 27, 2021.




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                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021




                                   Section IV Corporate Governance

I. Basic status of corporate governance

     The Company, In strict accordance with the Company Law, Securities Law and other relevant national laws
and regulations and the Guidelines for Standardized Operation of Companies Listed on the Main Board of
Shenzhen Stock Exchange, established the normative corporate governance structure and the rules of procedure
for the General Meeting of Shareholders, Board of Directors and Board of Supervisors, clarified the
responsibilities and authorities in decision-making, performance and supervision, formed effective division of
responsibilities and balance mechanism, continuously promoted the level of normal operation and safeguarded the
interests of investors and the Company.

     The Company's governance complied with the Company Law of the People's Republic of China and the
requirements of the China Securities Regulatory Commission regarding the governance of listed companies.

Whether there were any significant differences between the actual state of corporate governance and the regulations on governance of
listed companies issued by laws, administrative regulations and the CSRC
□ Yes √ No
The actual state of corporate governance did not differ materially from the laws, administrative regulations and the regulations on
governance of listed companies issued by the CSRC.


II. The independence of the company from the controlling shareholder and the actual
controller in terms of assets, personnel, finance, organization and business of the company

     The Company has a sound corporate governance structure and completely separates from Zhuhai Mingjun as
the largest shareholder in business operation, personnel, assets, organization and finance, and the Company has
independent and complete business operation and independent management capability.

III. Horizontal competition

□ Applicable √ Not applicable


IV. Convening of the annual general meeting of shareholders and interim general meeting of
shareholders during the report period

1. General meetings of shareholders for the report period


                                                Proportion of
 Session of meeting      Type of meeting         participating      Date of convening      Date of disclosure   Meeting resolutions
                                                  investors

2020 Annual General Annual General                                                                              Announcement of
                                                          54.58% June 30, 2021           July 1, 2021
Meeting of            Meeting of                                                                                Resolutions of the


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                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Shareholders          Shareholders                                                                 2020 Annual
                                                                                                   General Meeting of
                                                                                                   Shareholders", etc.
                                                                                                   on
                                                                                                   www.cninfo.com.cn

                                                                                                   The Announcement
                                                                                                   on Resolutions of the
The First Interim
                      Interim General                                                              First Interim General
General Meeting of
                      Meeting of                      51.70% August 20, 2021    August 21, 2021    Meeting of
Shareholders for
                      Shareholders                                                                 Shareholders for the
Year 2021
                                                                                                   Year 2021, etc. on
                                                                                                   www.cninfo.com.cn

                                                                                                   The Announcement
                                                                                                   on Resolutions of the
The Second Interim
                      Interim General                                                              Second Interim
General Meeting of
                      Meeting of                      46.64% September 29, 2021 September 30, 2021 General Meeting of
Shareholders for
                      Shareholders                                                                 Shareholders for the
Year 2021
                                                                                                   Year 2021, etc. on
                                                                                                   www.cninfo.com.cn


2.Convening of an interim general meeting of shareholders requested by the preferred shareholders whose
voting rights have been restored

□ Applicable √ Not applicable




                                                            73
                                                                                       2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

V. Directors, supervisors and senior management personnel

1. Basic Information


                                                                                                                Number of      Number of
                                                                                                Number of                                                        Number of
                                                                                                                held stocks    held stocks                                       Reasons for
                                                                                               shares held at                                     Other         shares held at
                              Employment                                                                        increased for reduced for                                        increase or
   Name              Title                 Gender Age    Term start date     Term end date     the end of the                                increase/decrease the end of the
                                 status                                                                          the current   the current                                       decrease of
                                                                                                  period                                     changes (shares)      period
                                                                                                                   period        period                                            shares
                                                                                                 (shares)                                                          (share)
                                                                                                                  (shares)      (shares)

Dong          Chairperson
                              Incumbent    Female   67 May 25, 2012        February 28, 2025     44,488,492                                                       44,488,492
Mingzhu       & President

              Chairman
              and secretary
Zhang Wei                     Incumbent    Male     45 January 16, 2019    February 28, 2025
              of the Party
              Committee

Guo Shuzhan Director          Incumbent    Male     65 January 16, 2019    February 28, 2025

Zhang Jundu Director          Incumbent    Male     61 May 25, 2012        February 28, 2025

              Director,
              Vice
              President,
Deng Xiaobo                   Incumbent    Male     46 December 26, 2020 February 28, 2025
              Secretary of
              the Board of
              Directors

              Independent
Liu Shuwei                    Incumbent    Female   69 January 16, 2019    February 28, 2025
              director




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                                                                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

Wang           Independent
                               Incumbent   Male     60 January 16, 2019   February 28, 2025
Xiaohua        director

               Independent
Xing Ziwen                     Incumbent   Male     59 January 16, 2019   February 28, 2025
               director

Zhang          Independent
                               Incumbent   Male     54 March 1, 2022      February 28, 2025
Qiusheng       director

Cheng Min      Supervisor      Incumbent   Female   41 November 2, 2020   February 28, 2025

Duan                                                                                                                                                          Reduced
               Supervisor      Incumbent   Male     58 January 16, 2019   February 28, 2025      596,700                149,175                    447,525
Xiufeng                                                                                                                                                       holding-shares

               Employee
Wang Fawen                     Incumbent   Female   38 January 16, 2019   February 28, 2025
               supervisor

               Vice
Zhuang Pei                     Incumbent   Male     57 May 25, 2012       February 28, 2025    5,955,202                                          5,955,202
               president

               Vice
               President and
Tan Jianming                   Incumbent   Male     57 August 31, 2017    February 28, 2025    1,297,300                                          1,297,300
               Chief
               Engineer

               Vice
Shu Lizhi                      Incumbent   Male     52 December 26, 2020 February 28, 2025
               president

               Finance
Liao           Chief,
                               Incumbent   Male     48 August 6, 2020     February 28, 2025
Jianxiong      Assistant to
               President

Fang           Vice
                               Incumbent   Male     44 November 19, 2021 February 28, 2025       167,400                                           167,400
Xiangjian      president



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                                                                                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

               Director,
                                                                                                                                                                                  Reduced
Huang Hui      Executive     Resigned       Male           58 May 25, 2012      February 19, 2021        7,380,000                   1,845,000                        5,535,000
                                                                                                                                                                                  holding-shares
               President

Total                --            --            --   --              --                 --            59,885,094               0    1,994,175                       57,890,919         --

Whether there are cases of departure of directors and supervisors and dismissal of senior management during the report period
√ Yes □ No
Mr. Huang Hui, the director and executive president of the Company, submitted a written resignation report to the Board of Directors of the Company on February 19, 2021, and he applied for
resignation as the director and executive president of the Company for personal reasons. After his resignation, Mr. Huang Hui no longer holds any position in the Company.


Changes in the Company's directors, supervisors and senior management
√ Applicable □ Not applicable

          Name                    Position held                   Type                    Date                                                   Reason

                           Director, Executive
Huang Hui                                             Resigned                  February 19, 2021          Resignation for personal reasons
                           President

Fang Xiangjian             Vice president             Hire                      November 19, 2021          Hired by the Board of Directors




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                            2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


2. Employment Status

     Professional background, major work experience and current major responsibilities of the Company's current
directors, supervisors and senior management

    Ms. Dong Mingzhu, with a master's degree, serves as the chairperson and president of Gree Electric
Appliances, Inc of Zhuhai. She successively held the posts of salesperson, Vice Director and Director of Sales
Department, Vice General Manager, Vice Chairperson of the Board and President of Gree Electric Appliances, etc.

     She was successively elected as a member of the 10th, 11th, 12th and 13th National People's Congress, a
member of the 10th, 11th and 12th Executive Committee of the All-China Women's Federation, a member of the
13th Five-Year Plan Expert Committee of the National Development and Reform Commission, a member of the
Advisory Committee of the All-China Federation of Industry and Commerce, a United Nations Ambassador for
Sustainable Urban Development, and the first rotating chair of the UNDP Commission on Sustainable
Development.

     She was awarded the "National Model Worker", "National May 1 Labor Medal", "National March 8th Red
Banner Pacesetter", China Patent Gold Award, the Third China Quality Award, Liu Yuanzhang Quality
Technology Contribution Award, Fudan University Outstanding Contribution to Enterprise Management Award,
Tsinghua University Top 10 Management Innovation Leaders-Practitioners, and "China Outstanding Quality
People (National Quality Award)" and other honors and titles, and three times selected by CCTV as "CCTV China
Economic and were listed in Fortune Magazine's "World's Most Influential Women in Business" for 14 times. In
2020, she was awarded the honorary title of "Advanced Individual of Private Economy in the Fight against the
COVID-19 Epidemic" by the Central United Front Work Department, the Ministry of Industry and Information
Technology, the General Administration of Market Supervision and the All-China Federation of Industry and
Commerce for her scientific and technological fight against the epidemic. In 2021, she chaired the Sub-Committee
on Experimentation and Evaluation of Refrigeration Compressors (ISO/TC86/SC4) of the International
Organization for Standardization Technical Committee on Refrigeration and Air Conditioning.

    Mr. Zhang Wei, a senior economist with a bachelor's degree, serves as the Secretary of the Party Committee
and Director of Gree Electric Appliances, Inc of Zhuhai.

     He joined Gree in 1999 and successively held the posts of the head of Gree Electric Appliances Pipeline
Sub-Factory, Material Supply Department, Outsourcing Quality Management Department, Enterprise
Management Department, and Assistant to President, and served as Vice President of Gree Group from 2013 to
2020, and has served as Secretary of the Party Committee of Gree Electric Appliances from September 2020 to
the present

    Mr. Guo Shuzhan, with a junior college degree, serves as a director of Gree Electric Appliances, Inc of
Zhuhai.

     From August 2006 to the present, he has served as the chairman and general manager of Jinghai Internet
Technology Development Co., Ltd.; from August 2012 to the present, he has served as the general manager of
Henan Shengshi Xinxing Gree Trading Co., Ltd.; From May 2012 to January 2019, he served as a supervisor of
the company, and from January 2019 to the present, he has served as a director of the company.

    Mr. Zhang Jundu, with a junior college degree, serves as a director of Gree Electric Appliances, Inc of
Zhuhai.

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                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


     From September 1999 to the present, he has served as the Chairman of Zhejiang Tongcheng Gree Electric
Appliances Co., Ltd From August 2012 to the present, he has concurrently served as the General Manager of
Zhejiang Shengshi Xinxing Gree Trading Co., Ltd, and has served as director of the company from May 2012 to
the present.

     Mr. Deng Xiaobo, with a bachelor's degree, serves as a director, vice president and secretary of the Board of
Directors of Gree Electric Appliances, Inc of Zhuhai.

     From July 2015 to November 2020, he served as the chairman of Shaanxi Coal and Chemical Group Finance
Co., Ltd He joined Gree Electric Appliances, Inc of Zhuhai in November 2020 and successively held the posts of
Vice President and Secretary to the Board of Directors of the company, and he has served as Director, Vice
President and Secretary to the Board of Directors of Gree Electric Appliances, Inc of Zhuhai from February 2022
to the present.

     Ms. Liu Shuwei, with a master's degree, serves as an independent director of Gree Electric Appliances, Inc
of Zhuhai.

      Ms. Liu graduated from Peking University with a master's degree in economics in 1986 and studied under the
tutelage of Professor Chen Daisun and Professor Li Yining, who are renowned scholars in finance. In 2002, she
was awarded "Economic Personality of the Year" and "Touching China - 2002 Person of the Year" by CCTV. She
serves as an independent director of Vanke Enterprise Co., Ltd, an independent director of Henan Costar Group
Co., Ltd., an independent director of Royole Corporation and a director and a researcher at the China Enterprise
Research Center of Central University of Finance and Economics. She has served as an independent Director of
the Company from January 2019 to the present.

     Mr. Xing Ziwen, with a doctoral degree, serves as an independent director of Gree Electric Appliances, Inc
of Zhuhai.

     He is currently a professor at Xi'an Jiaotong University, a Distinguished Professor under the Changjiang
Scholars Award Program of the Ministry of Education, a national candidate for the Hundred Million Talents
Project in the New Century, and a recipient of a special allowance from the State Council. Prof. Xing Ziwen was
the head of the Department of Refrigeration and Cryogenic Engineering and the director of the Compressor
Research Institute in the School of Energy and Power Engineering of Xi'an Jiaotong University, and is currently
the deputy director of the National Engineering Center for Fluid Machinery and Compressors of Xi'an Jiaotong
University. He has been awarded two National Science and Technology Progress Awards, seven Provincial and
Ministerial Science and Technology Progress Awards, and the Special Award for Science and Technology Progress
of the Chinese Society of Refrigeration, the Special Award for Invention and Entrepreneurship of the China
Invention Association, the Distinguished Professor Award of the Xia Anshi Education Foundation, and the Youth
Innovation Award of the Ho Leung Ho Lee Foundation, etc.

     Mr. Wang Xiaohua, a first-class lawyer with a master's degree, serves as an independent director of Gree
Electric Appliances, Inc of Zhuhai.

     Mr. Wang Xiaohua has been working in Guangdong Guangxin Junda Law Firm since January 1993, and is
currently the director of the firm. He is also a member of the Standing Committee of the Guangdong Provincial
Committee of the Chinese People's Political Consultative Conference, a member of the Judges and Prosecutors
Selection Committee of Guangdong Province, a member of the Legal Advisory Service Team of Guangdong
Provincial People's Government, and a legal advisor of Guangdong Provincial Public Security Department. In

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                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


addition, Mr. Wang concurrently serves as an independent director of Guangdong Shirong Zhaoye Co., Ltd.,
Guangzhou Tower Tourism and Culture Development Co., Ltd. and Guangdong Guangxin Information Industry
Co., Ltd. He served as a councilor of the National Lawyers Association, a legal advisor to the Organizing
Committee of the 16th Asian Games, a member of the 9th National Youth Federation, the president of Guangzhou
Lawyers Association, and a legal consultant and advisor to the Guangzhou Municipal People's Government. Over
the past 33 years of practice, he has handled more than 1,000 litigation, arbitration, and non-litigation cases and
projects individually or with his team, having rich experience in legal services.

    Mr. Wang Xiaohua has published four monographs and co-authored four books, published more than 30
papers and articles, and submitted more than 50 proposals, and was praised by the Nanfang Daily News as a major
proposal writer.

     Mr. Zhang Qiusheng, with a doctoral degree, serves as an independent director of Gree Electric Appliances,
Inc of Zhuhai.

     Mr. Zhang Qiusheng is a non-practicing member of the Chinese CPA. He is currently a professor at the
School of Economics and Management of Beijing Jiaotong University, the director of the National Institute of
Transportation Development, the director of the China Center for Corporate Mergers and Acquisitions, and an
independent director of Jinneng Holdings Shanxi Coal Co., Ltd Mr. Zhang Qiusheng has undertaken various
provincial and ministerial research projects, including the National Natural Science Foundation of China, the
National Social Science Foundation of China, the National Soft Science Program, as well as the Ministry of
Education, the Ministry of Finance, the State-owned Assets Supervision and Administration Commission, the
Securities and Futures Commission, etc. He has published more than 30 monographs, books (translations) and
more than 100 academic and professional papers, and has won one second prize for national teaching
achievements, four provincial and ministerial research achievements, and two first prizes for Beijing teaching
achievements.

     Ms. Cheng Min, with a bachelor's degree, serves as a supervisor of Gree Electric Appliances, Inc of Zhuhai.

    Ms. Cheng serves as the Assistant to the President of Zhuhai Gree Group Co., Ltd, and Chairperson and
General Manager of Zhuhai Gexin Development Co., Ltd. She successively held the posts of the head of the
Planning Department of Zhuhai Exhibition and Convention Bureau, a member of the Party Group of Zhuhai
Exhibition and Convention Bureau, and the office director and secretary of the Board of Directors of Zhuhai Gree
Group Co., Ltd.

     Mr. Duan Xiufeng serves as a supervisor of Gree Electric Appliances, Inc of Zhuhai.

     He graduated from Shandong Party School in 1999 and successively held the posts of Deputy General
Manager and General Manager of Shandong Gree Marketing Co., Ltd and General Manager of Shandong
Shengshixinxing Gree Trading Co., Ltd. He has served as a supervisor of the Company from January 2019 to the
present.

     Ms. Wang Fawen, wirh a master's degree a mid-level economist and human resources manager, serves as the
supervisor of the staff representative of Gree Electric Appliances, Inc of Zhuhai.

     From 2007 to 2019, she successively held the posts of Human Resources Specialist of the Human Resources
Department, Director of the Personnel General Office, Supervisor of the Performance Section, Supervisor of the
Training Section, Assistant Director of the Training Department, Human Resources Department and Director of
the Training Department; from January 2019 to the present, she has served as a Supervisor of the Employee
                                                        79
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Representative of the Company, and from February 2019 to the present, she has served as Vice Director of the
Human Resources Department of the Company.

     Mr. Zhuang Pei, with a bachelor’s degree, engineer, serves as the vice president of Gree Electric Appliances,
Inc of Zhuhai.

    He served as Assistant to the President from 2002 to April 2003 and has served as Vice President from April
2003 to the present.

    Mr. Tan Jianming, with a master's degree, serves as the Chief Engineer and Vice President of Gree Electric
Appliances, Inc of Zhuhai.

      From 1982 to 1986, he studied refrigeration and low-temperature technology at Huazhong University of
Science and Technology and received his bachelor's degree; from 1986 to 1989, he continued his studies in
refrigeration and low-temperature technology at Huazhong University of Science and Technology and received his
master's degree; after graduation in 1989, he joined Gree Electric Appliances, Inc of Zhuhai and successively held
the posts of Designer, Director, Assistant to President, Deputy Chief Engineer, etc. He has served as Chief
Engineer and Vice President of the Company from August 2017 to the present.

    Mr. Shu Lizhi, with a master's degree, serves as the Vice President of Gree Electric Appliances, Inc of
Zhuhai.

    He served as the deputy director and director of Wuhan Special Commission Office of the State Audit Office.
He joined Gree Electric Appliances, Inc of Zhuhai in December 2019. He has served as Vice President of the
Company from December 2020 to the present.

    Mr. Fang Xiangjian, a senior engineer with a master’s degree, serves as the Vice President of Gree Electric
Appliances, Inc of Zhuhai.

     From July 2004 to December 2016, he successively held the posts of assistant to factory manager, deputy
factory manager and factory manager of the screening branch of Gree Electric Appliances, Inc of Zhuhai. He has
served as the Assistant to President of Gree Electric Appliances, Inc of Zhuhai from December 2016 to the present
and has served as the vice president of Gree Electric Appliances, Inc of Zhuhai from November, 2021 to the
present; He is the recipient of Guangdong May Day Labor Medal, Liu Yuan Zhang Quality Technology Talent
Award, and the Management Excellence Award of the Chinese Academy of Management Science; he is the vice
president of China Quality Inspection Association, a professional member of China Fire Protection Association, a
member of the 7th Academic Committee of China Quality Association, and a vice chairman of the Green and
Efficient Energy-Using Products Professional Committee of China Energy Conservation Association.

     Mr. Liao Jianxiong serves as the Finance Chief and Assistant to President of Gree Electric Appliances, Inc
of Zhuhai.

     He joined Gree in May 1993 and successively held the posts of the head of the Financial Department of Gree
Electric Appliances (Chongqing) Co., Ltd, head of the Financial Department of Gree Electric Appliances, Inc of
Zhuhai and Assistant to the President. He has served as the Finance Chief and assistant to the president of the
company from August 2020 to the present.

Employment in shareholder's companies
√ Applicable □ Not applicable


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                                    2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                                                                                                   Whether to receive
                                                               Position held
      Name of                                                                                                      remuneration and
                               Name of shareholder                   at the      Term start date   Term end date
  incumbent                                                                                                        allowance from the
                                                                   shareholder
                                                                                                                         shareholder

                                                               Assistant to
Cheng Min          Zhuhai Gree Group Co., Ltd.                                   March 1, 2020                     Yes
                                                               President

                                                               President and
                   Jinghai Internet Technology Development     Legal
Guo Shuzhan                                                                      August 1, 2006                    No
                   Co., Ltd.                                   Representativ
                                                               e

Description of
incumbent in
the                None
shareholder's
companies

Employment in other companies
√ Applicable □ Not applicable

                                                                                                                             Whether to
                                                                                                                               receive
                                                                                                                             remunerati
 Name of                                                 Position held in the
                        Name of other companies                                     Term start date      Term end date         on and
incumbent                                                    other companies
                                                                                                                             allowance
                                                                                                                             from other
                                                                                                                             companies

Dong        Zhuhai Gezhen Investment Management
                                                         Executive Partner September 26, 2019                                No
Mingzhu     Partnership (Limited Partnership)

Dong                                                     Director and
            Zhuhai Xima Pearl New Media Co., Ltd.                                October 1, 2015                             No
Mingzhu                                                  Manager

Guo         Beijing Qianyuan Hengjiuhe Liquor Co.,
                                                         Director                April 25, 2014                              No
Shuzhan     Ltd.

Guo
            Xiahe Hengsheng Hydropower Co., Ltd.         Director                May 1, 2007                                 No
Shuzhan

Guo         Henan Shengshi Xinxing Gree Trading Co.,
                                                         Executive Director August 1, 2010                                   Yes
Shuzhan     Ltd.

                                                         Executive Director
Guo         Luoyang Gree Electric Appliances Logistics
                                                         and General             June 1, 2010                                No
Shuzhan     Co., Ltd.
                                                         Manager

Guo
            Xiahe Hengfa Hydropower Co., Ltd.            Director                June 1, 2005                                No
Shuzhan

Guo         Henan Gree Installation Engineering Co.,     Executive Director March 10, 2021                                   No

                                                                     81
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Shuzhan    Ltd.

Guo
           Luqu Hengfa Hydropower Co., Ltd.           Supervisor           September 9, 2021                    No
Shuzhan

Guo        Henan Sanli Real Estate Development Co.,
                                                      Supervisor           November 6, 2006                     No
Shuzhan    Ltd.

Guo
           Henan Ruige Storage Co., Ltd.              Other personnel      July 1, 2005                         No
Shuzhan

Zhang      Zhejiang Tongcheng Gree Electric
                                                      Chairman             September 1, 1999                    Yes
Jundu      Appliances Co., Ltd.

Zhang      Ningbo Tongcheng Gree Electric
                                                      Director             July 1, 2013                         No
Jundu      Appliances Co., Ltd.

                                                      Executive Director
Zhang      Zhejiang Shengshi Xinxing Gree Trading
                                                      and General          January 1, 2017                      Yes
Jundu      Co., Ltd.
                                                      Manager

Zhang
           Zhejiang Ruitong Automobile Co., Ltd.      Director             December 1, 2014                     No
Jundu

Zhang      Wenzhou Tongcheng Economic and Trade
                                                      Director             April 1, 2012                        No
Jundu      Co., Ltd.

Zhang      Huzhou Tongcheng Gree Electric
                                                      Director             November 1, 2008                     No
Jundu      Appliances Co., Ltd.

Liu                                                   Independent
           Vanke Enterprise Co., Ltd                                       June 30, 2017       June 29, 2023    Yes
Shuwei                                                director

Liu                                                   Independent
           Royole Corporation                                              June 23, 2020                        Yes
Shuwei                                                director

Liu                                                   Independent
           Costar Group Co., Ltd.                                          April 10, 2019      April 10, 2022   Yes
Shuwei                                                director

Wang
           Guangdong Guangxin Junda Law Firm          Partner chairman     June 1, 2017                         Yes
Xiaohua

Wang                                                  Independent
           Arrow Home Furnishing Group Co., Ltd                            December 18, 2019                    Yes
Xiaohua                                               director

Wang       Guangzhou Tower Tourism and Culture        Independent
                                                                           April 27, 2021                       Yes
Xiaohua    Development Co., Ltd.                      director

Wang       Guangdong Guangxin Information Industry Independent
                                                                           March 26, 2019      March 26, 2022   Yes
Xiaohua    Co., Ltd.                                  director

Zhang                                                 Independent
           Jinneng Holdings Shanxi Coal Co., Ltd                           June 5, 2020                         Yes
Qiusheng                                              director

                                                      Executive Director
Zhang      Beijing Langxin Yicheng Consulting Co.,
                                                      and General          May 19, 2021                         No
Qiusheng   Ltd.
                                                      Manager

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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Zhang
           Tianjin Lishen Battery Co., Ltd           Director             December 25, 1997             No
Qiusheng

Duan
           Beijing Detai Hengrun Investment Co., Ltd. Manager             July 3, 2014                  No
Xiufeng

Duan       Beijing Rongzhi Xingwei Management
                                                     Manager              July 2, 2013                  No
Xiufeng    Consulting Co., Ltd

                                                     Executive Director
Duan
           Shandong Jierui Logistics Co., Ltd.       and General          August 11, 2010               No
Xiufeng
                                                     Manager

Duan
           Jinan Qihui Microfinance Co., Ltd.        Director             February 4, 2009              No
Xiufeng

                                                     Executive Director
Duan       Shandong Gree Electric Appliances
                                                     and General          August 2, 2012                Yes
Xiufeng    Customer Service Co., Ltd.
                                                     Manager

Duan       Shandong Binzhou Dongsheng Real Estate
                                                     Executive Director June 26, 2009                   No
Xiufeng    Co., Ltd.

Duan       Shandong Blue Economy Industrial Fund
                                                     Chairman             November 5, 2014              No
Xiufeng    Management Co., Ltd.

Duan       Shandong Youbu Network Technology Co.,
                                                     Executive Director October 27, 2015                No
Xiufeng    Ltd.

                                                     Executive Director
Duan       Jinan Jierui New Energy Technology Co.,
                                                     and General          December 21, 2016             No
Xiufeng    Ltd.
                                                     Manager

                                                     Executive Director
Duan       Shandong Red April Brand Management
                                                     and General          August 1, 2017                No
Xiufeng    Co., Ltd.
                                                     Manager

                                                     Executive Director
Duan
           Shandong Red April E-commerce Co., Ltd. and General            August 30, 2017               No
Xiufeng
                                                     Manager

Duan       Zhongfu Huaxia Management Consulting
                                                     Chairman             December 23, 2005             No
Xiufeng    Co., Ltd.

                                                     Executive Director
Duan       Shandong Red April Holdings Group Co.,
                                                     and General          May 5, 2015                   No
Xiufeng    Ltd.
                                                     Manager

                                                     Executive Director
Duan       Shandong Red April Venture Capital Co.,
                                                     and General          April 24, 2017                No
Xiufeng    Ltd.
                                                     Manager

                                                     Executive Director
Duan       Shandong Red April New Energy
                                                     and General          December 13, 2017             No
Xiufeng    Technology Co., Ltd.
                                                     Manager

                                                            83
                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Duan
               Jinan Rural Commercial Bank Co., Ltd       Supervisor             May 22, 2020                               No
Xiufeng

                                                          Chairman and
Cheng Min Zhuhai Gexin Development Co., Ltd.                                     September 1, 2018                          Yes
                                                          General Manager

Descriptio
n of
employme
               None
nt in the
other
companies

Punishments imposed by the securities regulatory institution to the incumbent directors, supervisors and senior management
personnel or those who resigned in the report period in the recent three years
□ Applicable √ Not applicable


3. Remuneration of directors, supervisors and senior management

Decision-making procedures, determination basis, and actual payment regarding the remunerations of directors, supervisors and
senior management personnel

     During the report period, the Board of Directors of the Company appraised the performance and performance
of senior management personnel on an annual basis and implemented an appraisal system based on the results of
their work in ethics, competence, diligence and performance. The Company adhered to the principle of
reasonableness, fairness and justice and laid emphasis on combination of material incentive and spiritual incentive.
As for the material incentive, the Company paid attention to reasonably controlling reward grade and properly
widening the reward gap and emphasized the time and frequency of reward. As for the spiritual incentive, the
Company paid attention to combining the corporate objectives with the spirit of dedication, sense of social
responsibility and career achievement of the senior management personnel.


Remunerations of the directors, supervisors and senior management personnel in the report period
                                                                                                                     Unit: 10,000 yuan

                                                                                                                         Whether to
                                                                                                 Total amount of
                                                                                                                           receive
                                                                                                       pre-tax
                                                                                 Employment                          remuneration
        Name                 Title              Gender           Age                                 remuneration
                                                                                    status                           from a related
                                                                                                received from the
                                                                                                                         party of the
                                                                                                      Company
                                                                                                                          Company

                      Chairperson &
Dong Mingzhu                             Female                          67 Incumbent                         1,098 No
                      President

                      Chairman and
Zhang Wei             secretary of the   Male                            45 Incumbent                        366.67 No
                      Party Committee

Guo Shuzhan           Director           Male                            65 Incumbent                               Yes

                                                                  84
                                    2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Zhang Jundu       Director            Male                            61 Incumbent                              Yes

                  Director, Vice
                  President,
Deng Xiaobo       Secretary of the    Male                            46 Incumbent                       46.67 No
                  Board of
                  Directors

                  Independent
Liu Shuwei                            Female                          69 Incumbent                          15 Yes
                  director

                  Independent
Wang Xiaohua                          Male                            60 Incumbent                          15 Yes
                  director

                  Independent
Xing Ziwen                            Male                            59 Incumbent                          15 No
                  director

                  Independent
Zhang Qiusheng                        Male                            54 Incumbent                              No
                  director

Cheng Min         Supervisor          Female                          41 Incumbent                              Yes

Duan Xiufeng      Supervisor          Male                            58 Incumbent                              Yes

                  Employee
Wang Fawen                            Female                          38 Incumbent                       98.02 No
                  supervisor

Zhuang Pei        Vice president      Male                            57 Incumbent                        260 No

                  Vice President
Tan Jianming      and Chief           Male                            57 Incumbent                        400 No
                  Engineer

Shu Lizhi         Vice president      Male                            52 Incumbent                        150 No

                  Finance Chief,
Liao Jianxiong    Assistant to        Male                            48 Incumbent                     122.89 No
                  President

Fang Xiangjian    Vice president      Male                            44 Incumbent                        280 No

                  Director,
Huang Hui         Executive           Male                            58 Resigned                        10.42 No
                  President

Total                        --                --              --                --                  2,877.67          --


VI. Performance of directors' duties during the report period

1. The Board of Directors for the report period


        Session of meeting            Date of convening   Date of disclosure                  Meeting resolutions

The 30th Meeting of the 11th                                                   For details, please refer to Announcement of
                                     November 19, 2021 November 20, 2021
Session of the Board of Directors                                              Resolutions of the 30th Meeting of the 11th

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                                                                            Session of the Board of Directors (Announcement
                                                                            No. 2021-079) on www.cninfo.com.cn

                                                                            For details, please refer to Announcement of
The 29th Meeting of the 6th Board                                           Resolutions of the 29th Meeting of the 11th Board
                                    November 16, 2021 November 17, 2021
of Directors                                                                of Directors (Announcement No. 2021-075) on
                                                                            www.cninfo.com.cn

                                                                            For details, please refer to "Third Quarterly Report
The 28th Meeting of the 6th Board
                                    October 26, 2021   October 27, 2021     2021" (Announcement No. 2021-071) on
of Directors
                                                                            www.cninfo.com.cn

                                                                            For details, please refer to Announcement of
The 27th Meeting of the 11th                                                Resolutions of the 27th Meeting of the 11th Board
                                    September 28, 2021 September 29, 2021
Board of Directors                                                          of Directors (Announcement No. 2021-066) on
                                                                            www.cninfo.com.cn

                                                                            For details, please refer to Announcement of
The 26th Meeting of the 11th                                                Resolutions of the 26th Meeting of the 11th Board
                                    August 30, 2021    August 31, 2021
Board of Directors                                                          of Directors (Announcement No. 2021-058) on
                                                                            www.cninfo.com.cn

The 25th Meeting of the 11th                                                For details, please refer to "2021 Semi-Annual
                                    August 20, 2021    August 23, 2021
Board of Directors                                                          Report" on www.cninfo.com.cn.

                                                                            For details, please refer to "Announcement of
The 24th Meeting of the 11th                                                Resolutions of the 24th Meeting of the 11th Board
                                    August 2, 2021     August 4, 2021
Board of Directors                                                          of Directors" (Announcement No. 2021-050) on
                                                                            www.cninfo.com.cn

                                                                            For details, please refer to "Announcement of
The 23rd Meeting of the 11th                                                Resolutions of the 23rd Meeting of the 11th Board
                                    June 27, 2021      June 28, 2021
Board of Directors                                                          of Directors" (Announcement No. 2021-041) on
                                                                            www.cninfo.com.cn

                                                                            For details, please refer to Announcement of
The 22nd Meeting of the 11th                                                Resolutions of the 22nd Meeting of the 11th
                                    June 18, 2021      June 21, 2021
Board of Directors                                                          Session of the Board of Directors (Announcement
                                                                            No. 2021-038) on www.cninfo.com.cn

                                                                            For details, please refer to "Announcement of
The 21st Meeting of the 11th                                                Resolutions of the 21st Meeting of the 11th Board
                                    May 26, 2021       May 27, 2021
Board of Directors                                                          of Directors" (Announcement No. 2021-030) on
                                                                            www.cninfo.com.cn

The 29th Meeting of the 6th Board                                           For more details, please refer to "First Quarterly
                                    April 28, 2021     April 29, 2021
of Directors                                                                Report 2021" on www.cninfo.com.cn.

                                                                            For details, please refer "Announcement of
The 19th Meeting of the 11th                                                Resolutions of the Nineteenth Meeting of the 11th
                                    April 28, 2021     April 29, 2021
Board of Directors                                                          Session of the Board of Directors"
                                                                            (Announcement No. 2021-015) on

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                                                                                              www.cninfo.com.cn.


2. Attendance of directors at meetings of the Board of Directors and general meetings of shareholders


                 Attendance of directors at meetings of the Board of Directors and general meetings of shareholders

                                                                                                                   Whether to fail
                      Number of
                                                              Times of                                              to personally
                      meetings of         Times of                               Times of
                                                              attending                              Times of        attend the        Times of
                     the Board of         attending                              attending
                                                             meetings of                           absence from      meetings of     attending the
   Name of the         Directors         meetings of                            meetings of
                                                            the Board of                           meetings of      the Board of       general
     director          requiring         the Board of                           the Board of
                                                            Directors via                          the Board of     Directors for    meetings of
                    attendance for       Directors on                           Directors by
                                                            communicatio                            Directors             two        Shareholders
                       the report          the field                             entrusting
                                                               n tools                                              consecutive
                        period
                                                                                                                         times?

Dong Mingzhu                        12                  2                 10                   0                  0 No                             3

Zhang Wei                           12                  2                 10                   0                  0 No                             3

Guo Shuzhan                         12                  0                 12                   0                  0 No                             3

Zhang Jundu                         12                  1                 11                   0                  0 No                             3

Liu Shuwei                          12                  2                 10                   0                  0 No                             3

Wang Xiaohua                        12                  2                 10                   0                  0 No                             3

Xing Ziwen                          12                  2                 10                   0                  0 No                             3

Huang Hui                           0                   0                  0                   0                  0 No                             0

Description of absence from the Board of Directors for two consecutive two times
Not Applicable


3. Directors' objection to relevant matters of the company

Whether directors raised objection to relevant issues of the Company?
□ Yes √ No
The directors didn't raise any objection to relevant issues of the Company.


4. Other descriptions for performance of duties by directors

Whether the relevant suggestions on the Company by directors were adopted
√ Yes □ No
Description of the relevant suggestions on the Company by directors that were adopted or not adopted

     During the report period, the directors of the Company were able to take the best interests of the Company
and shareholders as their code of conduct, faithfully performed their duties in accordance with the relevant
regulations, attended the meetings of the Board of Directors, carefully deliberated the proposals and made
suggestions and comments on the management of the Company, which played a positive role in the effective

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decision-making of the Board of Directors, improving the management level and standardizing the operation of
the Company.




VII. Specialized Committees under the Board of Directors during the report period

                                                                                                    Important
                               Numbe                                                                              Other
                                                                                                    comments               Disagreem
  Committee                     r of                                                                             perform
               Member Status                 Date of convening           Conference content            and                 ent details
      Name                     meetin                                                                            ance of
                                                                                                    suggestion              (if any)
                               gs held                                                                           duties
                                                                                                     s made

                                                                 Deliberated the "Company's
                                           October 26, 2021      Report for the Third Quarter of
                                                                 2021"

                                                                 Deliberated the "Half-Yearly
                                           August 20, 2021       Report for 2021 and its
                                                                 Summary"
               Liu Shuwei,                                       Deliberated the "Annual
Audit
               Wang Xiaohua,           4                         Financial Statement for 2020",
Committee
               Zhang Jundu                                       "Annual Report for 2020 and
                                           April 28, 2021
                                                                 its Summary" and "Proposal on
                                                                 Hiring the Company's Auditors
                                                                 for 2021

                                                                 Deliberated the "Report for the
                                           April 28, 2021        First Quarterly of for 2021 and
                                                                 Its Text"

                                                                 Deliberated the "Remuneration
                                                                 Distribution Plan for Directors,
                                           April 28, 2021        Supervisors and Senior
                                                                 Management Personnel for
Remuneration                                                     2020"
               Wang Xiaohua,
and                                                              Agreed to submit the
               Liu Shuwei,             2
Assessment                                                       "Employee Stock Ownership
               Zhang Wei
Committee                                                        Plan Phase I of Gree Electric
                                           June 17, 2021         Appliances, Inc of Zhuhai
                                                                 (Draft)" to the Board of
                                                                 Directors of the Company for
                                                                 deliberation



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Nomination                                                          Deliberated the "Proposal on
                  Xing Ziwen,
Committee of                                                        Mr. Fang Xiangjian's
                  Wang Xiaohua,          1 November 19, 2021
the Board of                                                        Qualification as the Vice
                  Zhang Wei
Directors                                                           President of the Company"


VIII. Work of the Board of Supervisors

Whether the Board of Supervisors has identified any risks in the company during its supervision activities during the report period
□ Yes √ No
The Board of Supervisors has no objection to the supervision matters during the report period.


IX. Company's staff

1. Number of employees, their specialties and education level


Number (person) of on-the-job employees of the parent company                                                                  24,453

Number (person) of on-the-job employees of the main
                                                                                                                               57,431
subsidiaries

Total number (person) of on-the-job employees                                                                                  81,884

Total number (person) of employees receiving salaries for the
                                                                                                                               81,884
current period

Number (person) of retired employees for whom the parent
                                                                                                                                 386
company and main subsidiaries need to bear expenses

                                                        Formation of specialties

                 Category of formation of specialties                          Number (person) of employees in the formation

Manufacturing Personnel                                                                                                        59,973

Sales Personnel                                                                                                                 2,964

Technicians                                                                                                                    14,233

Financial Personnel                                                                                                             1,104

Administrative Personnel                                                                                                        3,610

Total                                                                                                                          81,884

                                                           Educational level

Education level category                                            Number (person) of employees

Bachelor degree or above                                                                                                       17,274

College Degree                                                                                                                 13,095

Technical Secondary School Education and below                                                                                 51,515

Total                                                                                                                          81,884




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2. Remuneration Policy

     In 2021, the Company implemented Employee Stock Ownership Plan Phase I. The scope of participants
included directors (excluding independent directors), supervisors and senior management of the Company, as well
as middle-level cadres and core employees of the Company and its holding subsidiaries who played an important
role in the overall performance and medium- and long-term development of the Company, covering a wide area
and a large scale. The implementation of the Employee Stock Ownership Plan was conducive to improving the
long-term incentive mechanism of the Company, attracting and retaining outstanding talents, enhancing the
cohesiveness and core competitiveness of the Company, forming a benefit-sharing and risk-sharing mechanism
between shareholders and management, middle-level cadres and core employees, and ensuring the realization of
the Company's future development strategy and promoting business objectives.

     Facing the uncertainty and complexity of the epidemic prevention and control and macroeconomic
environment, the company attached great attention to and protected the immediate interests of employees,
optimized and adjusted the remuneration plan accordingly, and continuously improved the job-based and
performance-oriented remuneration mechanism. At the same time, focused on high-quality talent, continued to
implement the project-based evaluation mechanism for scientific and technological talent, incentives for scientific
and technical personnel and R&D technology to make breakthroughs; strengthened the main responsibility of the
employer, implemented wage reform pilot, stable retention of the core team, optimized the construction of talent
ladder, and promoted the improvement of organizational effectiveness.

3. Training plan

     Talent is the key to innovation. Gree has always adhered to the principle of "focus on the company's strategic
layout and insist on independent cultivation of talents", and has taken the initiative of talent cultivation by
independently building a training system, and increased the cultivation of innovative talents, and has realized the
supply of high-quality talents by constructing a diversified independent cultivation mechanism and accelerating
the construction of Gree Vocational College.

I. Increase the training of innovative talents to meet the supply of high-quality talents for the production
and operation of the company

     Gree's talent team has been growing over the years, and in 2021, the company continued to increase internal
talent training, accelerated the continuous upgrade of the talent structure, and created a young team of officers and
entrepreneurs.

     Independently training innovative scientific and technological talents. The key to enhancing the independent
innovation ability of enterprises lies in cultivating innovative scientific and technological talents. According to the
growth path of technical R&D personnel, the company set up multi-level and multi-dimensional training programs
and courses, and specially implemented practical technical training for the manufacturing industry, which was
carried out monthly and uninterruptedly according to needs, so as to realize the continuous deepening training of
technical talents and promote the development of employees to professional talents in high, precise and advanced
fields.

    Cultivating skilled craftsmen for precision manufacturing. In order to adapt to the transformation of the
production model to automation and intelligence, the Company accelerates the training of applied-skilled talents.
The company vigorously carried forward the model worker and craftsman spirit of the new era, made full use of
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                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


the advantages of resources such as Guangdong technician, skilled master studio and technician workstation,
deepened the cultivation mechanism of the company's highly skilled talents, continued to optimize the cultivation
path of the company's employees growing from common people to skilled talents through a series of initiatives
such as skill training, skill competition and skill level assessment. At the same time realizing normalization of job
training, normalized professional training and effective upgrading training, the company selected and cultivated a
number of "high-tech and cutting-edge" skilled talents.

     Creating a management team that makes a difference. Deepened and promoted the whole staff learning and
development plan, and focused on the development of all levels of management cadres, core cadres, supervisors,
team leaders, college students and other thematic training programs. Through the design of thematic projects,
strengthened the training effect, drove the overall training quality to improve and strove to forge a passionate,
capable, entrepreneurial, capable staff, to add talent for the development of enterprises. The total number of
special training sessions conducted at all levels in 2021 exceeds 20,000, with about 1.2 million participants.

II. Strengthening the ideological education and cultural dissemination, gathering the centripetal force of
the staff to work and start a business

     The company attached great importance to the ideological education work of the staff, in-depth and solid
organization of the regular military training work of the whole staff, and promoted the general staff's spiritual
outlook, hammering organizational discipline through the regular big training special military training evaluation.
Carried out the flag-raising ceremony on a regular basis to uphold the sacred mission of national flag dignity and
to educate patriotism. Organized and carried out the cultural construction and evaluation activities in the factory
area to give full play to the effect of subtle influence and cohesion of the cultural construction in the factory area.
Strengthened the ideological education of party members, carefully edited, planned and designed the special party
building magazine "East" to promote the majority of employees, especially the party members to arm their minds,
guide practice and promote work.

     Further deepened the value of Gree culture dissemination. The company built an internal knowledge and
information sharing system around Gree's practical experience in production, operation and management, and
promoted internal experience extraction and inheritance activities. Through the organization and implementation
of learning programs such as micro-classes for management cadres, lecture halls for technology experts, lecture
halls for skilled craftsmen, and lecture halls for internal lecturers, the company realized comprehensive Gree
experience inheritance and Gree culture dissemination. 2021 Organized approximately 90 extraction activities
throughout the year, with more than 4,000 participants. Up to now, the company has dug out and nurtured 200
group-level quality instructors and developed 800 quality courses.

III. Accelerated the construction of Gree Vocational College and promoted the diversification of training to
vocational education

     The construction of Gree Vocational College campus officially started in February 2021 and is scheduled to
be completed in July 2022. The college upon completion, as a special private higher education institution, will
face the national major development strategy and the demand for talents in the Greater Bay Area. With majors
docked with strategic emerging industries such as intelligent equipment, artificial intelligence, Internet of Things,
build a number of major clusters with high market demand and strong competitiveness and development potential
in high quality, making student training more suitable for economic and social development needs.

    The college will, set a benchmark and industry model for talent training in China's manufacturing industry
based on Gree, build a highland for cultivating high-quality technical skills talents based on the Greater Bay Area
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and set new standards for talent training based on the manufacturing industry. In about five years, the college will
form the characteristics and talent cultivation mechanism that connects the education chain with the industry chain,
the value chain with the innovation chain, and create a Chinese brand of enterprise school with international
characteristics that deeply integrates industry and education.

    Over the years, Gree has deepened the integration of industry and education, and won the 7th Huang Yanpei
Award for Outstanding Contribution to Vocational Education for its advanced exploration and practice in
school-enterprise cooperation, being the only enterprise unit to receive the award.

IV. Closely following the company's new retail mode marketing layout, supporting to upgrade the
company's first-line market service

      Closely following the company's new retail marketing model and around the global sales market support,
continuously innovated management, and improved after-sales skills by combining training and management with
skills and service, which effectively supported and promoted the first-line market service upgrade.

     In 2021, the training followed the business more actively, followed the company's large-scale engineering
sales and services, and completed the special training support for significant projects such as metro and military
industry with high quality.

     The company innovated means and forms and conducted overseas customer training and technical
consultation remotely online to support overseas market development and services due to the impact of the
epidemic. The company completed 600 technical training sessions in 30 countries and trained 5000 customers
throughout the year.

     The company continued to develop and innovate to bring into play the dual effectiveness of training and
management. Organized the first class of Star Service Engineer Certification, establishing the service benchmark.
Carried out safety education activities themed “Alarm Bells Ring, Remember Safety” to prevent and reduce
service safety hazards. Facing domestic market demand, precipitated quality training program brands. Organized
national touring technical training camp, Gree after-sales elite class, instructor certification and online special
learning activities to improve the professional skills of after-sales personnel. In 2021, the after-sales service
completed 5,200 learning sessions and trained 480,000 people in total.

4. Labor outsourcing

□ Applicable √ Not applicable


X. Distribution of profits and capitalization of capital reserve by the Company

Profit distribution policy during the report period, especially the formulation, implementation or adjustment of the cash dividend
policy
√ Applicable □ Not applicable

     2020 Annual Equity Distribution Plan: cash dividends of 30 yuan (tax included) per 10 shares to all
shareholders based on 5,584,177,165 shares (total share capital of the Company of 6,015,730,878 shares, less
431,553,713 shares repurchased up to the disclosure date of the 2020 Annual Equity Distribution Implementation
Announcement), no bonus shares and no transfer of share capital by way of reserve. The total cash dividend was
16,752,531,495 yuan.
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      The cash dividend distribution proportion of the Company since its listing is in line with the provisions of the
Articles of Association of Gree Electric Appliances, Inc of Zhuhai and cash dividend distribution policy of the
Company is in line with the provisions of laws and regulations such as the Articles of Association of Gree Electric
Appliances, Inc of Zhuhai and the requirements of the resolutions of the general meeting of shareholders. The
criteria for dividend distribution and the dividend distribution ratio are clear and unambiguous, the relevant
decision-making procedures and mechanisms are complete, and the independent directors have performed their
duties and responsibilities with due diligence and have played their roles. Minority shareholders have adequate
opportunities to express their opinions and demands on profit distribution, and the legitimate rights and interests
of minority shareholders are fully protected.


                                              Special description of cash dividend policy

Whether to comply with the provisions of the Articles of
Association or the requirements of the general meeting's              Yes
resolution:

Whether the dividend criteria and ratio are clear and
                                                                      Yes
unambiguous:

Whether the relevant decision-making procedures and
                                                                      Yes
mechanisms are complete:

Whether independent directors perform their duties and play
                                                                      Yes
their due roles:

Whether minority shareholders have the opportunity to fully
express their opinions and demands, and whether their legitimate Yes
rights and interests are adequately protected:

The conditions and procedures are transparent and comply with
                                                                      Not Applicable
regulations if the cash dividend policy is adjusted or changed:

The Company is profitable during the report period and the parent company has positive profit available for distribution to
shareholders but no cash dividend distribution plan has been proposed.
□ Applicable √ Not applicable
Profit distribution and capitalisation of capital reserves for the report period
√ Applicable □ Not applicable

Number of dividend shares per ten shares (shares)                                                                                0

Number of dividends per ten shares (yuan) (tax
                                                                                                                              20.00
included)

Share capital base for the distribution proposal
                                                                                                                      5,536,677,733
(shares)

Cash dividend amount (yuan) (tax included)                                                                        11,073,355,466.00

Amount of cash dividends by other means (e.g.
                                                                                                                  21,817,510,524.13
share repurchase) (yuan)




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Total cash dividends (including other methods)
                                                                                                                       32,890,865,990.13
(Yuan)

Distributable profit (yuan)                                                                                            60,491,410,176.15

Proportion of total cash dividends (including other
                                                                                                                                    100%
methods) to total profit distribution

                                                              Cash Dividend

If the Company is in a maturity stage and there are no significant capital expenditure arrangements, the cash dividends in the
current profit distribution shall account for at least 80% of the profit distribution

                         Detailed description of profit distribution or capitalization of capital reserve preplan

The Company intends to pay a cash dividend of 20 yuan (tax included) per 10 shares to all shareholders based on the total number
of 5,536,677,733 shares (the total share capital of the Company 5,914,469,040 shares less 377,791,307 shares in the special account
for repurchase) entitled to profit distribution as of April 29, 2022, without bonus shares and without capitalization of capital
reserve.
According to "Self-regulatory Guideline No. 9 - Share Repurchase for Listed Companies on Shenzhen Stock Exchange", the shares
in the repurchase account are not entitled to profit distribution. If during the period from the date of disclosure of this
announcement to the date of registration of the implementation of the equity distribution, the total amount of shares entitled to
profit distribution of the Company changes due to the exercise of equity incentive, conversion of convertible bonds, share
repurchase, etc., the Company will adjust the total amount of dividend accordingly on the principle that the distribution ratio per
share remains unchanged.




XI. Implementation of the company's Equity Incentive Plan, Employee Stock Ownership Plan,
or other employee incentive measures

√ Applicable □ Not applicable


1. Equity Incentive

Not Applicable
Equity Incentives Received by Directors and Senior Management of the Company
□ Applicable √ Not applicable
Appraisal mechanism and motivation of senior management
Not Applicable


2. Implementation of Employee Stock Ownership Plan

√ Applicable □ Not applicable
All Employee Stock Ownership Plans in effect during the report period

                                            Number of      Total number of                    Proportion to the      Source of funding
           Scope of employees                                                    Changes
                                             employees        shares held                    total share capital of for implementation

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                                     2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                                                 (shares)                      listed companies             of the plan

Directors (excluding independent
directors), supervisors and senior                                                                                     Legal remuneration
management of the Company, as well as                                                                                  of employees and
middle-level cadres and core employees                                                                                 self-financing funds
of the Company and its subsidiaries who                                                                                obtained through
                                                  4,845            46,334,473 None                             0.78%
have been identified by the Board of                                                                                   other means as
Directors as playing an important role in                                                                              permitted by laws
the overall performance and medium-                                                                                    and administrative
and long-term development of the                                                                                       regulations
Company

Shareholdings of Directors, Supervisors and Senior Management in the Employee Stock Ownership Plan during the report period

                                                       Number of shares held at Number of shares held at          Proportion to the total
            Name                       Title                the beginning of the       the end of the report      share capital of listed
                                                          report period (shares)         period (shares)                  companies

Dong Mingzhu               Chairperson & President                                 0               10,000,000                           0.17%

                           Vice President and Chief
Tan Jianming                                                                       0                  488,469                           0.01%
                           Engineer

Zhuang Pei                 Vice president                                          0                  420,253                           0.01%

Fang Xiangjian             Vice president                                          0                  391,890                           0.01%

                           Chairman and secretary
Zhang Wei                                                                          0                  183,328                           0.00%
                           of the Party Committee

                           Director, Vice President,
Deng Xiaobo                Secretary of the Board of                               0                  107,600                           0.00%
                           Directors

Shu Lizhi                  Vice president                                          0                   99,719                           0.00%

                           Finance Chief, Assistant
Liao Jianxiong                                                                     0                   77,663                           0.00%
                           to President

                           Employee representative
Wang Fawen                                                                         0                   51,355                           0.00%
                           supervisors

Changes in asset management institutions during the report period
□ Applicable √ Not applicable
Changes in equity during the report period due to disposal of shares by holders, etc.
□ Applicable √ Not applicable
Exercise of shareholders' rights during the report period
None
Other relevant circumstances and explanations of the Employee Stock Ownership Plan during the report period
□ Applicable √ Not applicable
Change in membership of the Employee Stock Ownership Plan Management Committee


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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


□ Applicable √ Not applicable
Financial Impact of Employee Stock Ownership Plan on Listed Companies and Related Accounting Treatment during the report
period
√ Applicable □ Not applicable
In accordance with Accounting Standards for Business Enterprises No. 11 "Share-based Payment", the Company's equity-settled
share-based payment expense for Year 2021 was 31,002,910.71 yuan.
Termination of Employee Stock Ownership Plan during the report period
□ Applicable √ Not applicable
Other statements
None


3. Other Employee Incentives

□ Applicable √ Not applicable


XII. Construction and implementation of the internal control system during the report period

1. Construction and implementation of internal control

     The company continued to improve the construction of internal control system and improved the
management mechanism of rules and regulations. The company regularly reviewed the internal control system and
process, and improved and re-improves the system and process. At the same time, the company strictly
implemented the rules and regulations, continuously strengthened compliance management and risk management,
and built a perfect internal control system and process system.

     The Company continued to pay attention to and strengthen the control of high-risk areas such as financial
management, asset management, capital activities, procurement business, production management, sales business
and engineering projects, and effectively improved the awareness of compliance management and the ability to
prevent and control major risks.

     During the report period, the Company updated and improved its internal control system in a timely manner
in accordance with the provisions of the Basic Standard for Enterprise Internal Control and its accompanying
guidelines, taking into account changes in the Company's internal and external environment, internal organization
and management requirements.

     Based on the determination of significant defects in internal control, the Company did not have any
significant defects or material defects in internal control in the financial reporting and non-financial reporting in
2021. Through the operation, analysis and evaluation of the internal control system, the Company effectively
prevented the risks in operation and management and promoted the achievement of internal control objectives. In
the future, the Company will continue to perfect the internal control system, standardize the implementation of the
internal control system, strengthen the supervision and inspection of internal control, and promote the healthy and
sustainable development of the Company.




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2. Details of significant defects in internal control identified during the report period

□ Yes √ No


XIII. Management and control of the subsidiaries during the report period

      During the report period, the subsidiaries included in the scope of consolidation by way of business
combination not under the same control include the holding subsidiary Gree Altairnano New Energy Inc. The
Company strictly followed the Internal Control System in the internal management and risk control of its
subsidiaries, and the subsidiaries reported their operations to the Company, and there were no undisclosed matters
that should be disclosed and no loss of control of the subsidiaries.

XIV. Internal Control Self-Evaluation Report or Internal Control Audit Report

1. Internal Control Self-Evaluation Report


Date of Disclosure of the Full Internal
                                              April 30, 2022
Control Evaluation Report

Index of full text disclosure of internal
                                              www.cninfo.com.cn
control evaluation reports

Total assets of the units included in the
scope of evaluation as a proportion to the
                                                                                                                               97.00%
total assets of the company's consolidated
financial statements

Operating revenues of the units included in
the scope of evaluation as a proportion to
                                                                                                                               98.00%
the operating revenues of the company's
consolidated financial statements

                                                     Defect identification criteria

                  Category                                Financial statements                       Non-Financial statement

                                              For details, please refer to the "2021 Annual For details, please refer to the "2021
                                              Internal Control Self-Evaluation Report of    Annual Internal Control Self-Evaluation
Qualitative standard                          Gree Electric Appliances, Inc of Zhuhai       Report of Gree Electric Appliances, Inc
                                              disclosed on www.cninfo.com.cn on April       of Zhuhai disclosed on
                                              30, 2022                                      www.cninfo.com.cn on April 30, 2022

                                              For details, please refer to the "2021 Annual For details, please refer to the "2021
                                              Internal Control Self-Evaluation Report of    Annual Internal Control Self-Evaluation
Quantitative standard                         Gree Electric Appliances, Inc of Zhuhai       Report of Gree Electric Appliances, Inc
                                              disclosed on www.cninfo.com.cn on April       of Zhuhai disclosed on
                                              30, 2022                                      www.cninfo.com.cn on April 30, 2022

Number of significant defects in the
                                                                                                                                      0
financial reporting (Nos)

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                                       2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Number of significant defects in the
                                                                                                                                    0
non-financial reporting (Nos)

Number of material defects in the financial
                                                                                                                                    0
reporting (Nos)

Number of material defects in the
                                                                                                                                    0
non-financial reporting (Nos)


2. Internal Control Audit Report

√ Applicable □ Not applicable

                                       Deliberation opinion section in the internal control audit report

We hold that the Company has maintained effective internal control of financial statements in accordance with the Basic Rules for
Internal Control of Enterprises and relevant regulations.

Disclosure of Internal Control
                                         Disclosure
Audit Report

Date of Disclosure of Full Internal
                                         April 30, 2022
Control Audit Report

Index of Full Text Disclosure of
                                         www.cninfo.com.cn
Internal Control Audit Report

Type of Internal Control Audit
                                         Standard unqualified audit opinion
Report Opinions

Is there a significant defect in the
                                         No
non-financial reporting?

Whether the accounting firm issued a non-standard opinion on the internal control audit report
□ Yes √ No
Whether the internal control audit report issued by the accounting firm is consistent with the opinion of the Board of Directors'
Self-evaluation Report
√ Yes □ No


XV. Self-examination and rectification of listed company governance special action

Not Applicable




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                                                Section V Environmental and Social Responsibility

I. Major environmental problems

Whether the listed company and its subsidiaries are listed as key pollutant discharge units published by the environmental protection department
√ Yes □ No

                            Names of
                                                           Number
            Name of           Major
Serial                                       Discharge        of           Distribution of              Discharge    Pollutant Discharge                     Total Approved Over-standard
          Company or Pollutants and                                                                                                        Total Emission
 No.                                          Method       discharge       discharge ports         Concentration Standard Implemented                           Emission       Emission
           Subsidiary       Particular
                                                             ports
                            Pollutants

                                                                       Phase III sewage station         49 mg/L
                                                                                                                    Level 2 limit of the
         GREE                  COD                             3       Phase IV sewage station          22 mg/L                            8.058 tons/year    26.4 tons/year
                                                                                                                    second period
         ELECTRIC
                                            Intermittent               Phase VI sewage station          20 mg/L     specified in the
   1     APPLIANCES,                                                                                                                                                            None
                                            discharge                  Phase III sewage station     0.300 mg/L Discharge Limits of
         INC. OF
                             Ammonia                                                                           Water Pollutants
         ZHUHAI                                                3       Phase IV sewage station      0.526 mg/L                             0.114 tons/year     3.6 tons/year
                              nitrogen                                                                         (DB44/26-2001)
                                                                       Phase VI sewage station      0.365 mg/L

                           Total Nitrogen                                                               5.25 mg/L                          1.424 tons/year    4.41 tons/year
                                                                                                                    Pollutant Discharge
         Zhuhai Landa          COD                                                                  20.545 mg/L                            3.113 tons/year    14.7 tons/year
                                            Continuous                                                              Standard for
   2     Compressor Co.,     Ammonia                           1       Area C sewage station                                                                                    None
                                            discharge                                               0.753 mg/L Electroplating Water        0.088 tons/year    2.35 tons/year
         Ltd.                 nitrogen
                                                                                                               (DB44/1597-2015)
                             Total Zinc                                                             0.074 mg/L                             0.0194 ton/year     0.29 ton/year



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                               General assembly
Total Nickel               1   pretreatment discharge 0.0136 mg/L                             0.00034 ton/year      0.015 ton/year
                               port

                               Electrophoresis drying                  Emission Standard
                                                           5.255 mg/m
                               waste gas vent 1                        for Volatile Organic
                               Electrophoresis drying                  Compounds in
                                                           5.37 mg/m
                               waste gas vent 2                        Printing Industry
                                                                       DB44/815-2010
                           6   B3 spray paint room waste                                      2.088 tons/year       2.49 tons/year
                                                           5.375 mg/m Emission Standard
                               gas vent
                                                                       for Volatile Organic
                               Spraying waste gas vent 1 10.38 mg/mCompounds in

                               Spraying waste gas vent 2 9.72 mg/m Furniture
                                                                       Manufacturing
                               Spraying waste gas vent 3 12.825 mg/m
                                                                       Industry
               Organized
Total value                    Silk screen printing
               discharge                                    1.5 mg/m DB44/814-2010
                               waste gas vent                           Emission Limits
                               RCO catalytic                           For Air Pollutants
                               regeneration system         1.485 mg/mDB44/ 27-2001
                               emission outlet                          Emission Standard
                                                                       For Electroplating                        2021 emission permit
                           6   Injection molding waste                                        3.615 tons/year
                                                           3.64 mg/m Pollutants GB                                  not approved
                               gas vent
                                                                       21900-2008
                               Hydrocarbon cleaning
                                                           2.24 mg/m Emission Standard
                               emission outlet
                                                                       For Air Pollutants
                               Paint dipping waste gas                 From Industrial
                                                            3.6 mg/m
                               vent                                    Furnaces GB




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                                                                                       2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                                                            9078-1996
                                                                                                             Emission Standard
                                                                                                            of Volatile Organic
                                                             Pre-treatment waste gas                        Compounds For
                                                                                            4.815 mg/m
                                                             vent                                           Surface Coating
                                                                                                            (automobile
                                                                                                            Manufacturing)
                                                                                                            DB44/816-2010

                                                             Household                       10.6 mg/L Hefei West Group             0.8832602
                            COD                          2                                                                                       208.704209 tons/year
                                                             Commercial                          9.9 mg/L   Wastewater               tons/year
                                                                                                            Treatment Plant
                                                             Household                       4.45 mg/L                              0.3966359
    Gree Electric          NH3-N                         2                                                  Connection                           20.869721 tons/year
                                                             Commercial                      4.80 mg/L Standards and                 tons/year
    Appliances                            Intermittent
3                                                                                                                                                                       None
    Appliance                             discharge          Household                       5.39 mg/L "Comprehensive               0.49550824
    (Hefei) Co., Ltd         TN                          2                                                  Sewage Discharge                      29.815077 ton/year
                                                             Commercial                      6.19 mg/L                               ton/year
                                                                                                            Standards"
                                                             Household                       0.18 mg/L (GB8978-1996)                0.01507446
                             TP                          2                                                                                        3.578266 tons/year
                                                             Commercial                      0.17 mg/L Level III Criteria            ton/year

                                                             Industrial effluent outfall                    Level I
                                                                                                   7.8
                                          Intermittent       WS-39214A                                       Criteria of Class II
                          pH value                       2                                                                               /
                                          discharge          Domestic sewage outfall                        Pollutants (Second
    Zhuhai Kaibang
                                                                                                   8.2      Period) Maximum
    Motor                                                    DW002                                                                               2021 emission permit
4                                                                                                           Allowable Discharge                                         None
    Manufacturing                         Intermittent       Industrial effluent outfall                                                            not approved
                         Chromaticity                    1                                          2       Concentration of             /
    Co., Ltd                              discharge          WS-39214A
                                                                                                            Water Pollutant
                                          Intermittent       Industrial effluent outfall                    Discharge Limits of
                       Suspended matter                  2                                   4(L) mg/L                                   /
                                          discharge          WS-39214A                                      Guangdong (DB



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                                     Domestic sewage outfall                        44/26-2001)
                                                                     4(L) mg/L
                                     DW002

                                     Industrial effluent outfall
                                                                          8mg/L
Chemical oxygen Intermittent         WS-39214A                                                    1.719857136
                                 2
    demand        discharge          Domestic sewage outfall                                       tons/year
                                                                          4mg/L
                                     DW002

                                     Industrial effluent outfall
    Five-day                                                             3.2 mg/L
                  Intermittent       WS-39214A                                                    0.83084764
  biochemical                    2
                  discharge          Domestic sewage outfall                                       tons/year
oxygen demand                                                            1.8 mg/L
                                     DW002

                                     Industrial effluent outfall
                                                                         0.3 mg/L
                  Intermittent       WS-39214A                                                    0.007172309
   Phosphate                     2
                  discharge          Domestic sewage outfall                                       tons/year
                                                                     0.02 mg/L
                                     DW002

                                     Industrial effluent outfall
                                                                     0.068 mg/L
   Ammonia        Intermittent       WS-39214A                                                    0.11884688
                                 2
    nitrogen      discharge          Domestic sewage outfall                                       tons/year
                                                                     0.063 mg/L
                                     DW002

                                     Industrial effluent outfall
                                                                     2.36 mg/L
                  Intermittent       WS-39214A                                                    0.150982587
 Total Nitrogen                  2
                  discharge          Domestic sewage outfall                                       tons/year
                                                                     1.27 mg/L
                                     DW002

                  Intermittent       Industrial effluent outfall
   Petroleum                     1                                  0.06(L) mg/L                       /
                  discharge          WS-39214A

  Animal and      Intermittent       Domestic sewage outfall
                                 1                                  0.06(L) mg/L                       /
  vegetable oil   discharge          DW002
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                                                        Die-casting waste gas vent
                                                                                       5 mg/m
                                                        FQ-39214A
                                       Organized
                  Particulate matter               2    Melting aluminum waste                                            2.1148 tons/year
                                       discharge
                                                        waste gas vent               5.4 mg/m
                                                        FQ-39214A1
                                                                                                 Process Waste Gas Air
                                                        Die-casting waste gas vent               Pollutant Emission
                                                                                     15 mg/m
                                                        FQ-39214A                                Limits (Second Period)
                                       Organized
                   Sulfur dioxide                  2    Melting aluminum waste                   of Air Pollutant         3.3875 tons/year
                                       discharge
                                                        waste gas vent               11 mg/m Emission Limits of
                                                        FQ-39214A1                           Guangdong (DB
                                                                                                 44/27-2001)
                                                        Die-casting waste gas vent
                                                                                     17 mg/m
                                                        FQ-39214A
                                       Organized
                   Nitrogen Oxide                  2    Melting aluminum waste                                             5.254 tons/year
                                       discharge
                                                        waste gas vent               17 mg/m
                                                        FQ-39214A1

                                                                                                 Emission Limit of
                                       Organized        Immersion paint waste gas                                             0.005984
                      Benzene                      1                                 0.09 mg/m VOCs from waste
                                       discharge        vent FQ-39214B                                                        tons/year
                                                                                                 gas cylinder of
                                       Organized        Immersion paint waste gas                Guangdong Surface            0.602552
                  Toluene+Xylene                   1                                 2.27 mg/m
                                       discharge        vent FQ-39214B                           Coating                      tons/year
                                                                                                 (Automobile
                                                                                                 Manufacturing)
                                       Organized        Immersion paint waste gas                Volatile Organic
                    Total VOCs                     1                                 5.31 mg/m                            2.08756 tons/year
                                       discharge        vent FQ-39214B                           Compound Emission
                                                                                                 Standard(DB
                                                                                                 44/816-2010)

5   Zhuhai Gree       Benzene          Organized   12   Plant No.1 FQ113913A01 4.51 mg/m Second Period Level               0.017 ton/year     2021 emission permit   None

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                                                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

Electrical Co.,             discharge        Plant No.1 FQ113913A02 0.01 mg/m II Criteria of                               not approved
Ltd                                                                              Guangdong "Air
                                             Plant No.1 FQ113913A03 0.02 mg/m
                                                                                 Pollutant Emission
                                             Plant No.1 FQ113913A04 0.01 mg/m Limits" (DB

                                             Plant No.1 FQ113913A05 0.053 mg/m44/27-2001)

                                             Plant No.1 FQ113913A06 0.04 mg/m

                                             Plant No.1 FQ113913A07 0.38 mg/m

                                             Plant No.1
                                                                     0.01 mg/m
                                             FQ113913A08

                                             Plant No.3 FQ113913A09 0.02 mg/m

                                             Plant No.3 FQ113913A10 0.02 mg/m

                                             Plant No.3 FQ113913A11 0.01 mg/m

                                             Plant No.3 FQ113913A12 0.01 mg/m

                                             Plant No.1 FQ113913A01 0.53 mg/m

                                             Plant No.1 FQ113913A02 0.037 mg/m
                                                                                 Second Period Level
                                             Plant No.1 FQ113913A03 0.07 mg/m II Criteria of
                            Organized                                            Guangdong "Air                         2021 emission permit
                  Toluene               12   Plant No.1 FQ113913A04 0.03 mg/m                          0.013 ton/year                          None
                            discharge                                            Pollutant Emission                        not approved
                                             Plant No.1 FQ113913A05 0.047 mg/mLimits" (DB
                                                                                 44/27-2001)
                                             Plant No.1 FQ113913A06 0.02 mg/m

                                             Plant No.1 FQ113913A07 0.22 mg/m



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                                               2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                          Plant No.1
                                                      ND
                          FQ113913A08

                          Plant No.3 FQ113913A09 0.17 mg/m

                          Plant No.3 FQ113913A10 0.09 mg/m

                          Plant No.3 FQ113913A11 0.03 mg/m

                          Plant No.3 FQ113913A12 0.08 mg/m

                          Plant No.1 FQ113913A01 0.28 mg/m

                          Plant No.1 FQ113913A02 0.16 mg/m

                          Plant No.1 FQ113913A03 0.18 mg/m

                          Plant No.1 FQ113913A04 0.03 mg/m

                          Plant No.1 FQ113913A05 1.21 mg/m Second Period Level

                                                              II Criteria of
                          Plant No.1 FQ113913A06 0.34 mg/m
         Organized                                            Guangdong "Air                      2021 emission permit
Xylene               12                                                          1.63 tons/year                          None
         discharge        Plant No.1 FQ113913A07 4.86 mg/m Pollutant Emission                        not approved
                                                              Limits" (DB
                          Plant No.1
                                                   0.11 mg/m 44/27-2001)
                          FQ113913A08

                          Plant No.3 FQ113913A09 22.7 mg/m

                          Plant No.3 FQ113913A10 22.9 mg/m

                          Plant No.3 FQ113913A11   2.4 mg/m

                          Plant No.3 FQ113913A12 16.9 mg/m



                                               105
                                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                  Plant No.1 FQ113913A01 10.9 mg/m

                                  Plant No.1 FQ113913A02 3.05 mg/m

                                  Plant No.1 FQ113913A03 1.83 mg/m

                                  Plant No.1 FQ113913A04 0.76 mg/m
                                                                       Second Period of
                                  Plant No.1 FQ113913A05 6.37 mg/m
                                                                       Guangdong
                                  Plant No.1 FQ113913A06 2.15 mg/m "Emission Standards
Total volatile                                                         for Volatile Organic
                 Organized        Plant No.1 FQ113913A07 13.3 mg/m                                              2021 emission permit
   organic                   13                                        Compounds in           2.317 tons/year                          None
                 discharge                                                                                         not approved
compounds                         Plant No.1                           Furniture
                                                           6.06 mg/m
                                  FQ113913A08                          Manufacturing
                                                                       Industry" (DB
                                  Plant No.3 FQ113913A09 28.1 mg/m
                                                                       44/814-2010)
                                  Plant No.3 FQ113913A10 28.1 mg/m

                                  Plant No.3 FQ113913A11 6.46 mg/m

                                  Plant No.3 FQ113913A12 20.5 mg/m

                                  Plant No.2 FQ113913B01 2.81 mg/m

                                  Plant No.1 FQ113913A01     ND        Second Period Level
                                                                       II Standard in Table
                                  Plant No.1 FQ113913A02     ND
                                                                       2 of Guangdong Air
                 Organized                                                                                      2021 emission permit
  Phenols                    12   Plant No.1 FQ113913A03     ND        Pollutant Emission            /                                 None
                 discharge                                                                                         not approved
                                                                       Limit Value
                                  Plant No.1 FQ113913A04     ND
                                                                       Standard(DB
                                  Plant No.1 FQ113913A05     ND        44/27-2001)


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                                                               2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                       Plant No.1 FQ113913A06          ND

                                       Plant No.1 FQ113913A07          ND

                                       Plant No.1
                                                                       ND
                                       FQ113913A08

                                       Plant No.3 FQ113913A09          ND

                                       Plant No.3 FQ113913A10          ND

                                       Plant No.3 FQ113913A11          ND

                                       Plant No.3 FQ113913A12          ND

                                                                               Second Period Level
                                                                               II Criteria of
   Tin and its      Organized                                                  Guangdong "Air                              2021 emission permit
                                   1   Plant No.2 FQ113913B01 0.908 mg/m                               0.60192 tons/year                          None
  compounds         discharge                                                  Pollutant Emission                             not approved
                                                                               Limits" (DB
                                                                               44/27-2001)

Suspended matter                   1                                 12 mg/L                            0.022 tons/year

  Animal and                                                                                             0.00070059
                                   1                              0.29 mg/L Second Period Level
  vegetable oil                                                                                            ton/year
                                                                               III Standard in Table
                                                                               4 of Guangdong           0.0001050885
   Petroleum        Intermittent   1                              0.33 mg/L                                                2021 emission permit
                                       Plant No.2 gate DW001                   Water Pollution             ton/year                               None
                    discharge                                                                                                 not approved
 Total Nitrogen                                                                Discharge Limit           0.008337021
                                   1                              6.14 mg/L Value (DB
(calculated as N)                                                                                          Ton/Year
                                                                               44/26-2001)
Chemical oxygen                                                                                          0.02872419
                                   1                                 30 mg/L
    demand                                                                                                 ton/year



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                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

   Anionic                                              0.00050722716
                  1     0.159 mg/L
  surfactant                                               ton/year

    Total
 phosphorus                                             0.0003082596
                  1      0.35 mg/L
(calculated as                                            tons/year
      P)

  Ammonia
                                                         0.005254425
   Nitrogen       1      3.35 mg/L
                                                          tons/year
  (NH3-N)

   Five-day
                                                         0.00770649
 biochemical      1      10.7 mg/L
                                                          tons/year
oxygen demand

                                                          0.000035
Volatile phenol   1      0.05 mg/L
                                                          tons/year

  pH value        1         7.70                              /




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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


The construction and operation of pollution prevention and control facilities

     1. Wastewater pollution prevention and control facilities

     Each subsidiary of the company is equipped with corresponding wastewater treatment facilities and full-time
environmental management, operation and monitoring personnel in accordance with the environmental protection
requirements of the construction project. So far, the systems are in normal operation and have been discharged in a
stable manner without over-standard discharge.

     2. Waste gas pollution prevention and control facilities

     The waste gas pollution prevention and control facilities of the Company's subsidiaries operated normally,
and the indicators of waste gas monitoring were in compliance with national and local emission standards, without
over-standard discharge.

     3. Solid waste treatment and disposal facilities:

     The company implemented the classification and collection system of hazardous waste and entrusted the
disposal to the unit with the corresponding disposal qualification, and no illegal disposal occurred.


Assessment of environmental impact from construction projects and other administrative permits for environmental protection

     The construction project of the company carried out the environmental impact assessment, obtained
environmental impact assessment, passed the environmental acceptance and obtained the emission permit in
accordance with the requirements of the Environmental Protection Bureau.


Contingency plan for environmental emergencies

     In order to implement the requirements of the national "Measures on Emergency Management of
Environmental Emergencies" and related laws and regulations, and to ensure environmental emergencies to be
dealt with in a timely, orderly, efficient and appropriate manner, to protect the personal safety of the employees
and to reduce property losses, each subsidiary of the company formulated an emergency plan for environmental
emergencies and reported it to the environmental protection department for filing.


Environment self-monitoring scheme

     Formulated the self-monitoring scheme in accordance with the requirements of environmental impact
assessment, inspected wastewater pollutants once a day and inspected air pollutants air pollutants.


Administrative penalties for environmental problems during the report period

                                                                                             Impact on the
 Name of Company                                                                            production and            Company's
                       Reason for penalty          Violation             Penalty results
   or Subsidiary                                                                           operation of listed   corrective measures
                                                                                              companies

                      Violation of Article   Waste gas control                                                   Installed waste gas
Hefei Kinghome                                                      Fine of 10,000 yuan None
                      45 of the Air          facilities were not                                                 treatment facilities
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                                     2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Electrics Co., Ltd    Pollution Prevention installed for the                                       for processes that
                      and Control Law of     processes of                                          generate organic
                      the People's           extrusion, plastic                                    volatile gases.
                      Republic of China      absorption, foam,                                     Rectified and
                      and Article 45 of the injection and                                          accepted by Hefei
                      Anhui Air Pollution spraying, which                                          Ecological
                      Prevention and         generate organic                                      Environment
                      Control Regulations volatile gases.                                          Bureau.

Other environmental information that should be disclosed
None
Measures and effects taken to reduce its carbon emissions during the report period
□ Applicable √ Not applicable
Other environmental related information
None


II. Social Responsibility

      Gree actively fulfilled its social responsibility, effectively safeguarded the legitimate rights and interests of
all stakeholders, used its strength to win the recognition of the capital market and consumer market for its
enterprise, brand and products, and used its actions to promote the green and low-carbon development of the
industry (for details, please refer to the "2021 Annual Social Responsibility Report" published on
www.cninfo.com.cn on April 30, 2022).




III. Consolidating and expanding the results of poverty alleviation and rural revitalization

     During the report period, the company did not carry out any work related to consolidating and expanding the
results of poverty alleviation and rural revitalization.




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                                                                                                2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021



                                                                     Section VI Important Matters

I. Fulfillment of commitments

1. Commitments made by the Company's actual controller(s), shareholders, related parties, acquirers, the Company and other related commitments that
have been fulfilled during the report period and have not been fulfilled as at the end of the report period

√ Applicable □ Not applicable

  Reason for      Commitment Commitment                                                                                                                     Committed Commitment Implementation
                                                                                        Commitment Content
 commitment          Party        Type                                                                                                                        Time         Period        Status

Share-Splitting
Commitment

                                                                                                                                                                      36 months
                                            1. The transferee commits to lock up all Gree shares acquired as a result of the transfer upon completion
                                                                                                                                                                      from the
Commitments                                 of the registration of the transfer and not to transfer them for 36 months from the date of completion of the
                                                                                                                                                                      date of
in the                                      registration of the transfer; if there are relevant laws and regulations requiring the lock-up period of the
                              Share Sale                                                                                                                              completion
acquisition       Zhuhai                    transferred shares to exceed the above lock-up period committed by the transferee, the transferee agrees to December
                              Restriction                                                                                                                             of             In progress
report or         Mingjun                   extend the lock-up period of the shares accordingly to comply with the prescribed period. 2.Upon                2, 2019
                              Commitment                                                                                                                              registration
equity change                               completion of this share transfer, the transferee shall comply with the above share lock-up undertaking for
                                                                                                                                                                      of the
report                                      the shares acquired by the transferee as a result of the share bonus and capital increase of the listed
                                                                                                                                                                      transfer of
                                            company.
                                                                                                                                                                      shares




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                                                                          2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                       1. The transferee commits that it will maintain the overall stability of the management team of Gree
                       Electric Appliances within the scope of its authority upon completion of the transfer and that there will be
                       no significant changes in the governance structure of Gree Electric Appliances. 2. The transferee commits
                       not to initiate any proposal or proposal to relocate the headquarters and registered office of Gree Electric
                       Appliances from Zhuhai during the period of direct or indirect shareholding of Gree Electric Appliances,
                       and to actively urge all parties to ensure that the headquarters and registered office of Gree Electric
                       Appliances will not be relocated from Zhuhai; if any shareholder proposes any suggestion or proposal to
Zhuhai    Other        relocate the headquarters and registered office of Gree Electric Appliances from Zhuhai, the transferee        December Long-term
                                                                                                                                                           In progress
Mingjun   commitments commits to attend the shareholders' meeting and to vote against such proposal. 3. The Transferee commits 2, 2019         effective
                       to make its best effort and ability to make effective industrial investment and strategic resource
                       introduction for the economic development of Zhuhai, and to promote Gree to make new contribution to
                       the sustainable and healthy economic development of Zhuhai. 4. Zhuhai Mingjun commits to actively
                       exercise the shareholders' voting right in the shareholders' meeting of the listed company involving
                       dividend payment and to urge its nominated directors to vote in favor of the resolution of the Board of
                       Directors on the dividend payment ratio of not less than 50% of the annual net profit of the listed
                       company.




                                                                           112
                                                                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                          Letter of Commitment on Maintaining the Independence of the Listed Company: In order to ensure the
                          independent operation of the listed company after this equity transfer, Zhuhai Mingjun, Zhuhai Xianying
                          and Zhuhai Yuxiu make the following commitments: (i) To ensure asset independence and completeness
                          of the listed company: 1. To ensure that Gree Electric Appliances will be equipped with the relevant
                          production system, auxiliary production system as well as supporting facilities corresponding to its
                          business operations, have the right to own or use the land, workshop and machines and facilities relating
                          to its business operations as well as the ownership or use right to its trademarks, patent technologies and
                          know-how, and have an independent purchase system of raw materials and sales system of products. 2. To
                          ensure that Gree has independent and complete assets, and all of its assets are under the control of Gree
                          and are independently owned and operated by Gree. 3. To ensure that Zhuhai Mingjun and other
                          enterprises controlled by Zhuhai Mingjun will not illegally occupy the assets of Gree Electric Appliances
                          in any way; and will not use the assets of Gree Electric Appliances, or provide guarantee for the debts of
                          Zhuhai Mingjun and other enterprises controlled by the enterprise with Gree Electric Appliances' assets.
                          (ii) To ensure the independence of the personnel of the listed company: 1. To ensure that the labor,
                          personnel and remuneration management of Gree Electric Appliances is completely independent from its
                          related enterprises. 2. The recommendation of directors, supervisors and senior management by the
                          enterprise to Gree Electric Appliances is made through legal procedures and does not exceed the decisions
                          on personnel appointment and removal made by the Board of Directors and the General Meeting of
                          Shareholders of Gree. T (iii) To ensure the financial independence of the listed company: 1. to ensure that
Zhuhai                    Gree Electric Appliances will establish an independent financial department and an independent financial
Mingjun,    Maintain      accounting system, and will have a standardized and independent financial accounting system. 2. To
Zhuhai      independence ensure that Gree Electric Appliances will open bank accounts independently and will not share bank             December Long-term
                                                                                                                                                             In progress
Xianying,   of public     accounts with its related enterprises. 3. To ensure that the financial personnel of Gree Electric Appliances 2, 2019   effective
Zhuhai      companies     will not work part-time in its related companies. 4. To ensure that Gree Electric Appliances will be
Yuxiu                     independent in paying taxes according to the law. 5. To ensure that Gree Electric Appliances can make
                          independent financial decisions and that the intended transferee will not unlawfully interfere with Gree
                          Electric Appliances's fund utilization and scheduling. (iv) To ensure the independence of the listed
                          company: 1. To ensure that Gree Electric Appliances will establish a sound corporate governance structure
                          of the joint stock company and will have an independent and complete organizational structure. 2. To
                          ensure that the internal management bodies of Gree Electric Appliances will exercise their powers and
                                                                            113
                          functions independently in accordance with laws, regulations and the Articles of Association of the
                          Company. (v) To ensure the business independence of the listed company: 1. To ensure Gree Electric
                          Appliances will have the assets, personnel, qualification and ability to carry out business activities
                          independently and will have the ability to operate independently and independently and continuously in
                                                                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                          Letter of Commitment on Avoiding Horizontal Competition: In order to avoid horizontal competition with
                          the listed company, Zhuhai Mingjun, Zhuhai Xianying and Zhuhai Yuxiu make the following
                          commitments: 1. The enterprise and other enterprises controlled by the enterprise, the controlling
                          shareholder and the actual controller of the enterprise will not engage in the same or similar business as
                          Gree and its subsidiaries in a direct or indirect manner in the future, so as to avoid constituting direct or
                          indirect business competition with the business of Gree and its subsidiaries. 2. If other enterprises
                          controlled by the enterprise further expand their business scope, the other enterprises controlled by the
Zhuhai
                          enterprise will take all possible measures to avoid horizontal competition with Gree Electric Appliances
Mingjun,
            Avoiding      and its subsidiaries on the principle of giving priority to safeguarding the rights and interests of Gree
Zhuhai                                                                                                                                       December Long-term
            horizontal    Electric Appliances. 3.If Gree Electric Appliances and its subsidiaries or related regulatory authorities                                In progress
Xianying,                                                                                                                                    2, 2019   effective
            competition   determine that the enterprise and other enterprises controlled by the enterprise are engaging in or will
Zhuhai
                          engage in any business which constitutes horizontal competition with Gree Electric Appliances and its
Yuxiu
                          subsidiaries, the enterprise will give up or cause the enterprises which its subsidiaries directly or indirectly
                          hold to give up any business or business opportunities that may result in horizontal competition, or cause
                          such business or business opportunities to be provided with a priority to Gree Electric Appliances or its
                          wholly-owned and holding subsidiaries on a fair and reasonable basis or to be transferred to other
                          unrelated third parties. 4. If any one of the above commitments is violated, the enterprise will be willing to
                          bear all the responsibilities arising therefrom, and fully compensate or reimburse all direct or indirect
                          losses caused to Gree Electric Appliances.




                                                                               114
                                                                               2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                           Letter of Commitment on Regulating Related Transactions: In order to protect the interests of public
                           shareholders and maintain the sustainable and healthy development of the listed company, Zhuhai
                           Mingjun, Zhuhai Xianying and Zhuhai Yuxiu make the following commitments: 1. To ensure the related
                           transactions between the enterprise and other enterprises controlled by the enterprise and Gree Electric
                           Appliances in the future will be conducted in fair and in accordance with the normal code of business
                           conduct; the enterprise commits to further regulate the related transactions with Gree Electric Appliances
                           and its subsidiaries. 2. The Company will perform its obligations as a shareholder of Gree Electric
Zhuhai                     Appliances in good faith and in goodwill, and for related transactions that cannot be avoided or exist on
Mingjun,                   reasonable grounds, it will sign a standard related transaction agreement with Gree Electric Appliances in
            Regulating
Zhuhai                     accordance with the law, and fulfill the approval procedures in accordance with relevant laws, regulations, December Long-term
            Affiliate                                                                                                                                          In progress
Xianying,                  rules, other regulatory documents and the Articles of Association and; the price of related transactions will 2, 2019   effective
            Transactions
Zhuhai                     be determined in accordance with fair and reasonable market prices, and the price of related transactions
Yuxiu                      will be fair; it will perform the information disclosure obligations of related transactions in accordance
                           with relevant laws, regulations and the Articles of Association; it will not use related transactions to
                           illegally transfer the funds and profits of Gree Electric Appliances or damage the interests of Gree Electric
                           Appliances and related shareholders. 3. To ensure that the enterprise and other enterprises controlled by
                           the enterprise will, in accordance with the provisions of laws, regulations and the Articles of Association,
                           when deliberating related transactions involving the enterprise and other enterprises controlled by the
                           enterprise, effectively abide by the avoidance procedure during the voting on related transactions at the
                           meeting of the board of shareholders or the general meeting of shareholders of Gree Electric Appliances.




                                                                               115
                                                                           2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                        Letter of Commitment on Maintaining the Independence of the Listed Company: In order to guarantee the
                        independent operation of the listed company after this equity transfer, I make the following commitments:
                        (i) To ensure asset independence and completeness of the listed company: 1. To ensure that Gree Electric
                        Appliances will be equipped with the relevant production system, auxiliary production system as well as
                        supporting facilities corresponding to its business operations, have the right to own or use the land,
                        workshop and machines and facilities relating to its business operations as well as the ownership or use
                        right to its trademarks, patent technologies and know-how, and have an independent purchase system of
                        raw materials and sales system of products. 2. To ensure that Gree has independent and complete assets,
                        and all of its assets are under the control of Gree and are independently owned and operated by Gree. 3.
                        To ensure that Zhuhai Mingjun and other enterprises controlled by Zhuhai Mingjun will not illegally
                        occupy the assets of Gree Electric Appliances in any way; and will not use the assets of Gree Electric
                        Appliances, or provide guarantee for the debts of Zhuhai Mingjun and other enterprises controlled by the
                        enterprise with Gree Electric Appliances' assets. (ii) To ensure the independence of the personnel of the
                        listed company: 1. To ensure that the labor, personnel and remuneration management of Gree Electric
                        Appliances is completely independent from its related enterprises. 2. To ensure that the recommendation
                        of senior management personnel by me to Gree Electric Appliances is conducted in accordance with legal
                        procedures. T (iii) To ensure the financial independence of the listed company: 1. to ensure that Gree
                        Electric Appliances will establish an independent financial department and an independent financial
                        accounting system, and will have a standardized and independent financial accounting system. 2. To
          Maintain      ensure that Gree Electric Appliances will open bank accounts independently and will not share bank
Dong      independence accounts with its related enterprises. 3. To ensure that the financial personnel of Gree Electric Appliances December Long-term
                                                                                                                                                          In progress
Mingzhu   of public     will not work part-time in its related companies. 4. To ensure that Gree Electric Appliances will be        2, 2019   effective
          companies     independent in paying taxes according to the law. 5. To ensure that Gree Electric Appliances can make
                        independent financial decisions and that the intended transferee will not unlawfully interfere with Gree
                        Electric Appliances's fund utilization and scheduling. (iv) To ensure the independence of the listed
                        company: 1. To ensure that Gree Electric Appliances will establish a sound corporate governance structure
                        of the joint stock company and will have an independent and complete organizational structure. 2. To
                        ensure that the internal management bodies of Gree Electric Appliances will exercise their powers and
                        functions independently in accordance with laws, regulations and the Articles of Association of the
                        Company. (v) To ensure the business independence of the listed company: 1. To ensure Gree Electric
                                                                            116
                        Appliances will have the assets, personnel, qualification and ability to carry out business activities
                        independently and will have the ability to operate independently and independently and continuously in
                        the market. 2. To ensure that, except through the exercise of shareholders' rights and the performance of
                        functions and duties of board chairman / senior management personnel of the listed company, I will not
                                                                            2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                        Letter of Commitment on Avoiding Horizontal Competition: I make the following commitments: 1. I and
                        other enterprises controlled by me will not engage in the same or similar business with Gree Electric
                        Appliances and its subsidiaries in a direct or indirect manner in the future, so as to avoid possible direct or
                        indirect business competition with Gree Electric Appliances and its subsidiaries. 2. If other enterprises
                        under my control further expand their business scope, the other enterprises under my control will take all
                        possible measures to avoid horizontal competition with Gree Electric Appliances and its subsidiaries on
                        the principle of giving priority to safeguarding the rights and interests of Gree Electric Appliances. 3. If
          Avoiding
Dong                    Gree Electric Appliances and its subsidiaries or related regulatory authorities determine that I and other        December Long-term
          horizontal                                                                                                                                            In progress
Mingzhu                 enterprises controlled by me are engaging in or will engage in any business which constitutes horizontal          2, 2019   effective
          competition
                        competition with Gree Electric Appliances and its subsidiaries, I will give up or cause the enterprises
                        which its subsidiaries directly or indirectly hold to give up any business or business opportunities that may
                        result in horizontal competition, or cause such business or business opportunities to be provided with a
                        priority to Gree Electric Appliances or its wholly-owned and holding subsidiaries on a fair and reasonable
                        basis or to be transferred to other unrelated third parties. 4. If any one of the above commitments is
                        violated, I will be willing to bear all the responsibilities arising therefrom, and fully compensate or
                        reimburse all direct or indirect losses caused to Gree Electric Appliances.




                                                                            117
                                                                                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                          Letter of Commitment on Regulating Related Transactions: I make the following commitments: 1. To
                                          ensure that the future related transactions between I and other enterprises controlled by me and Gree
                                          Electric Appliances will be fair and conducted in accordance with the normal business conduct standards;
                                          and that I commit to further regulate related transactions with Gree Electric Appliances and its
                                          subsidiaries. 2. To ensure that I will perform my obligations as a shareholder of Gree Electric Appliances
                                          in good faith and in goodwill, and for related transactions that cannot be avoided or exist on reasonable
                                          grounds, I will sign a standard related transaction agreement with Gree Electric Appliances in accordance
                                          with the law, and fulfill the approval procedures in accordance with relevant laws, regulations, rules, other
                           Regulating
                 Dong                     regulatory documents and the Articles of Association; the price of related transactions will be determined         December Long-term
                           Affiliate                                                                                                                                               In progress
                 Mingzhu                  in accordance with fair and reasonable market prices, and the price of related transactions will be fair; I        2, 2019   effective
                           Transactions
                                          will perform the information disclosure obligations of related transactions in accordance with relevant
                                          laws, regulations and the Articles of Association; I will not use related transactions to illegally transfer the
                                          funds and profits of Gree Electric Appliances or damage the interests of Gree Electric Appliances and
                                          related shareholders. 3. To ensure that I and other enterprises controlled by me will, in accordance with the
                                          provisions of laws, regulations and the Articles of Association, when deliberating related transactions
                                          involving me and other enterprises controlled by me, effectively abide by the avoidance procedure during
                                          the voting on related transactions at the meeting of the board of shareholders or the general meeting of
                                          shareholders of Gree Electric Appliances.

Commitments
made during
asset
reorganization

Commitments
made during
initial public
offering or
refinancing




                                                                                               118
                                                                                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                                                                                                             During the
                                                                                                                                                             period of
Equity                                       During the period of holding shares of Gree Electric Appliances, the Company will fully assume all              being a
                   GREE        Other                                                                                                              June 14,
Incentive                                    reasonable expenses and economic losses (if any) incurred by Gree Electric Appliance due to the                 shareholder In progress
                   GROUP       commitments                                                                                                        2019
Commitment                                   Company's termination of the remaining Equity Incentive Plan.                                                   of Gree
                                                                                                                                                             Electric
                                                                                                                                                             Appliances

Other
commitments
to the
Company's
minority
shareholders

Whether
commitments
                   Yes
are fulfilled in
time

If
commitments
are not
fulfilled in
time, detail the
                   Not Applicable
specific reason
of fulfillment
failure and the
work plan for
the next step



                                                                                              119
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


2. The Company's assets or projects involve earnings forecast and the report period is still in the earnings
forecast period and the Company explains the assets or projects that achieve the original earnings forecast
and the relevant reasons

□ Applicable √ Not applicable


II. The listed company's non-operating funds occupied by the controlling shareholders and
their related parties

□ Applicable √ Not applicable
No controlling shareholder or its related party occupied non-operating funds of the listed company in the report period of the
Company.


III. Violation of external guarantees

□ Applicable √ Not applicable
The company has no violation of external guarantees during the report period.


IV. Statement by the Board of Directors on the latest "Non-standard Audit Report"

□ Applicable √ Not applicable


V. Description of the "Non-standard Audit Report" of the accounting firm for the report
period by the Board of Directors, Board of Supervisors and independent director (if any)

□ Applicable √ Not applicable


VI. Description of changes in accounting policies, accounting estimates or corrections of
significant accounting errors compared to the previous year's financial statement

√ Applicable □ Not applicable

1. Changes of major accounting policies

     The Ministry of Finance issued the Accounting Standards for Business Enterprises No. 21 - Leases (Finance
and Accounting [2018] No. 35) on December 7, 2018, requiring companies listed at home and abroad at the same
time and companies listed overseas and adopting IFRS or Accounting Standards for Business Accounting to
prepare financial statements to implement from January 1, 2019; and requiring other domestic listed companies
implementing Accounting Standards for Business Enterprises to implement from January 1, 2021. The Company
made corresponding changes to its accounting policies in accordance with the requirements of the standard.

     In accordance with the new lease standard, the Group chose not to reassess whether a contract that existed
prior to the date of the first implementation was a lease or contained a lease. Only the retained earnings at the
beginning of the period and other related statement items were adjusted on first-time implementation, and no
adjustments were made to comparable period information. The change in accounting policy did not have a
significant impact on the financial indicators of total assets, total liabilities, net assets and net profit of the
                                                                 120
                                        2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Company.

    The following shows adjustments to the financial statements at the beginning of the period of the first
implementation of the new lease standard for the first time starting from 2021:

                                                                                                                                          Unit: Yuan

                                        Amount as at 31 December, 2020 (before change)           Amount as at January 1, 2021 (after change)
            Report Item                                              Parent company's                                           Parent company's
                                        Consolidated Statements                               Consolidated Statements
                                                                             statement                                             statement
Non-current assets:
Usufruct assets                                                                                            38,952,103.28
Long-term                unamortized                8,567,923.50                                            1,954,062.19
expenses
Total non-current assets                     65,584,936,463.61           49,231,239,643.63            65,617,274,705.58           49,231,239,643.63
Total assets                                279,217,923,628.27         239,626,991,300.20            279,250,261,870.24          239,626,991,300.20
Current liabilities:
Non-current         liabilities   due                                                                      22,927,889.42
within one year
Total current liabilities                   158,478,718,130.74         157,595,121,705.31            158,501,646,020.16          157,595,121,705.31
Non-current liabilities:
Lease liabilities                                                                                           9,410,352.55
Total non-current liabilities                 3,858,718,409.39            1,216,835,596.58               3,868,128,761.94          1,216,835,596.58
Total liabilities                           162,337,436,540.13         158,811,957,301.89            162,369,774,782.10          158,811,957,301.89
Total liabilities and owner's               279,217,923,628.27         239,626,991,300.20            279,250,261,870.24          239,626,991,300.20
equity

2. Changes in major accounting estimates

      No.


VII. Description of changes in the consolidated statement scope in comparison with the
financial statement of last year

√ Applicable □ Not applicable


1. Business combinations not under common control

     (1) Business combinations not under common control that occurred during the period
                                                                                                                                       Unit: Yuan

                                                                                            Basis for
 Name of                                                                                                  Operating revenue
                Point of                             Equity     Equity                     determining                          Net profit from the
    the                       Equity acquisition                             Acquisition                       from the
               acquisition                         acquisition acquisition                     the                               acquisition date to
Purchased                            cost                                        date                     acquisition date to
                of equity                          proportion method                       acquisition                             statement date
  Party                                                                                                     statement date
                                                                                              date


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                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Gree
Altairnano
             October 31,                                  Purchase October 31, Acquisition
New                         1,828,275,113.56     30.47%                                            694,344,061.76       -416,767,701.45
             2021                                         in cash    2021         of control
Energy
Inc.

       (2) Cost of business combination and goodwill
                                                                                                                              Unit: Yuan

                                     Cost of business combination                                                    Amount
Cost of business combination                                                                                           1,828,275,113.56
Less: fair value share of the identifiable net assets acquired                                                         1,215,497,529.64
Amount of goodwill/combination cost less than the share of fair value of identifiable net asset                          612,777,583.92
acquired
     [Note 1] As mentioned in Note V.23 "Goodwill" to the financial statement, Gree Altairnano New Energy
became a holding subsidiary of the Company on October 31, 2021.
     [Note 2] As of the acquisition date October 31, 2021, the fair value of the identifiable net assets attributable
to the owners of the parent company of Gree Altairnano New Energy was 1,215,497,529.64 yuan, and the fair
value of the corresponding identifiable net assets was appraised by China United Assets Appraisal Group Limited,
which issued appraisal report ZLPBZ [2022] No. 1362.

     The formed goodwill on the combination of Gree Altairnano is mainly due to the fact that the fair value share
of the identifiable net assets of Gree Altairnano acquired by the Company on the acquisition date is lower than the
combined cost. The asset valuation on the date of this purchase used the asset-based method, the value of the
future business growth of Gree Altairnano could not be fully reflected due to the limitations of the valuation
method itself. At present, the business relationship between Gree Electric Appliances and Gree Altairnano has
been rationalized and preliminary results have been achieved. In the future, the company will continue to promote
comprehensive integration and synergistic development, grasp market and industry development opportunities,
further enhance the comprehensive competitiveness and sustainable development capability of Gree Altairnano
and prevent goodwill impairment risk.

       (3) Identifiable assets and liabilities of the acquiree on the acquisition date
                                                                                                                            Unit: Yuan

                                                                            Gree Altairnano New Energy Inc.
                     Item
                                                     Fair value on the acquisition date           Book value on the acquisition date
 Assets:
 Monetary funds                                                           1,646,843,953.97                             1,646,843,953.97
 Trading financial liabilities                                                   10,000.00                                     10,000.00
 Accounts receivable                                                      2,779,548,017.55                             2,779,548,017.55
 Advance payments                                                           215,800,208.73                               215,800,208.73
 Other receivables                                                          234,176,292.67                               234,176,292.67
 Inventory                                                                2,135,766,221.72                             2,135,766,221.72
 Contract assets                                                            996,806,636.13                               996,806,636.13


                                                                    122
                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


 Non-current assets due within one year                                2,810,789.73                      2,810,789.73
 Other current assets                                               856,356,937.01                     856,356,937.01
 Long-term receivables                                                 3,014,657.86                      3,014,657.86
 Long-term equity investments                                       390,685,789.09                     535,849,709.81
 Other equity instruments investments                                  2,170,000.00                      2,170,000.00
 Investment real estate                                              30,434,649.00                       6,404,970.97
 Fixed assets                                                      9,851,922,127.54                  8,874,157,430.70
 Construction in progress                                          2,341,162,945.24                  2,301,429,874.64
 Intangible assets                                                 3,078,130,531.23                  2,103,825,250.26
 Long-term unamortized expenses                                      18,801,886.89                      18,801,886.89
 Deferred income tax assets                                        1,906,423,128.64                  1,906,423,128.64
 Other non-current assets                                           277,326,714.43                     277,326,714.43
 Subtotal of assets                                               26,768,191,487.43                 24,897,522,681.71
 Liabilities:
 Short-term borrowings                                             2,202,310,244.21                  2,202,310,244.21
 Notes payable                                                     1,382,825,460.48                  1,382,825,460.48
 Accounts payable                                                  4,860,305,562.25                  4,860,305,562.25
 Contract liabilities                                              5,024,137,616.68                  5,024,137,616.68
 Employee pay payable                                                49,442,281.69                      49,442,281.69
 Taxes and dues payable                                              46,366,595.59                      46,366,595.59
 Other payables                                                    4,233,517,352.93                  4,233,517,352.93
 Non-current liabilities due within one year                         98,518,621.44                      98,518,621.44
 Other current liabilities                                         2,088,457,921.70                  2,088,457,921.70
 Long-term borrowings                                               850,000,000.00                     850,000,000.00
 Long-term payables                                                 392,843,262.75                     392,843,262.75
 Deferred Income                                                   1,186,062,239.50                  1,186,062,239.50
 Deferred income tax liabilities                                     13,873,952.69                      13,873,952.69
 Subtotal of liabilities                                          22,428,661,111.91                 22,428,661,111.91
 Net assets                                                        4,339,530,375.52                  2,468,861,569.80

     Before the acquisition date, affected by the corporate governance problems caused by the alleged
misappropriation of the interests of Gree Altairnano by the former controlling shareholder of Gree Altairnano,
Gree Altairnano was restricted in the financing, resulting in production capacity not being fully unleashed and in a
continuous loss; after the listed company acquired the control of Gree Altairnano on the acquisition date, Gree
Altairnano was managed in strict accordance with relevant laws and regulations and various corporate systems,
and the annual auditing accountant, China Audit Union Power Certified Public Accountants Co., Ltd. (Special
General Partnership), adjusted the accounting policies of Gree Altairnano based on the operating conditions and
prudent considerations and with reference to the standards of listed companies and made corresponding audit
adjustments. The above situation had an impact on the purchase date book value of the net assets of Gree
Altairnano.

      Gree is committed to building into a more competitive, diversified, technology-based global industrial group
                                                            123
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


with a long-term, in-depth layout of the new energy sector. The company's participation in the judicial auction to
acquire Gree Altairnano aims to combine the core technologies of Gree Altairnano batteries with the company's
"zero carbon source" and other multi-dimensional low-carbon technologies to give full play to its overall resource
advantages and further improve new energy industry layout. Up to now, the business relationship between Gree
Electric Appliances and Gree Altairnano has been rationalized and preliminary results have been achieved, and the
number of new energy vehicles being made by Gree Altairnano exceeded the level of the same period in 2020 and
2021; lithium titanate battery achieved good results in overseas and domestic markets with its superior
performance, and the relevant patent has recently been selected for the list of China Patent Award, being the only
lithium battery product in the new energy industry that won the gold medal. The performance and yield of
LiFePO4 products have also been greatly improved, and the production capacity will be unleashed gradually. With
the gradual unleashing of production capacity and the recovery of profitability in the future, Gree Altairnano’s
value will also continue to increase.

    (4) Gains or losses arising from the remeasurement of equity held before the purchase date at fair value

                                                                                                               Gains or losses on
                                     Book value of equity held
                                                                    Fair value on the purchase date      remeasurement of previously
  Name of the Purchased Party      before the acquisition date on
                                                                       of share held before that date   held equity interest to fair value
                                        the acquisition date
                                                                                                          before the acquisition date
Gree Altairnano New Energy Inc.                None                                None                               None

    (5) Method and key assumptions for determining fair value on the acquisition date

      1. Valuation determination method: The assets and liabilities were mainly evaluated using the asset-based
           method and the income method.
      2. Key assumptions in the evaluation process.
     A. The appraised entity is capable of making timely adjustments and innovations in line with the
development of the market and science and technology, while maintaining consistency in its business scope,
business methods and management mode.
     B. Except for the fixed-asset investment on the evaluation benchmark date that there is definite evidence
showing that the production capacity will change in the future, it is assumed that the evaluated unit will not carry
out major fixed-asset investment activities that affect its operations in the future income period, and the
production capacity of the enterprise is estimated according to the condition on the evaluation benchmark date;
     C. It is assumed that in the future earnings period, the evaluated unit will maintain the turnover of accounts
receivable and accounts payable similar to the historical years, with no payment in arrears that is significantly
different from the historical years;
     D. The assets and liabilities declared by the appraised entity are free from title disputes and other economic
disputes;
     E. The appraised entity's future sources of funding and costs for R&D and production will not have a
material adverse impact on the enterprise.
      3. Reasons for asset appreciation:
     A. Machinery and equipment: the market price of some equipment increased and the depreciable life of the
     enterprise's equipment was shorter than the economic life of the equipment;
     B. Housings and buildings: there was a difference between the depreciable life and the actual economic life,
     and some buildings were built a long period of time ago, resulting in an increase in replacement costs (labor,
     materials, etc.);

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    C. Land use rights: the time when the enterprise acquired the land is far from the benchmark date of the
    evaluation and the price was low, and the land price increased between the acquisition date and the current
    valuation benchmark date.

2. Business combination under the same control
         No.

3. Reverse purchase
        No.




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4. Disposal of subsidiaries

                                                                                                                                                                             Unit: Yuan

                                                                                                          The
                                                                                                        differenc
                                                                                                           e
                                                                                                        between
                                                                                                           the                                                                Amount
                                                                                                                                                                  Determin
                                                                                                        disposal                                                              of other
                                                                                                                                                                   ation
                                                                                                        price and                                                            comprehe
                                                                                                                                                                  methods
                                                                                                        the share   Propor                                                      nsive
                                                                                                                                                    Gains or      and main
                                                                                                         of the     tion of    Book        Fair                                income
                                                                                                                                                      losses      assumpti
                                        Equity   Equit                                                  subsidiar   remain    value of   value of                             related to
                                                                                                                                                     arising       ons of
                                        dispos     y                                                     y's net     ing      remainin   remainin                              equity
                              Equity                     Time point                                                                                   from        the fair
                                          al     dispo                Basis for determining the point   assets in   equity    g equity   g equity                            investmen
     Company name             disposa                     of losing                                                                                 remeasure     value of
                                        propor    sal                     at which control is lost         the      on the     on the     on the                               t of the
                              l price                     control                                                                                    ment of        the
                                         tion    meth                                                   consolida   date of   date of    date of                              original
                                                                                                                                                    remaining     remainin
                                         (%)      od                                                       ted      losing     losing     losing                              company
                                                                                                                                                    equity at     g equity
                                                                                                        financial   control   control    control                              transferre
                                                                                                                                                    fair value.    on the
                                                                                                        statement    (%)                                                       d into
                                                                                                                                                                   date of
                                                                                                            s                                                                investmen
                                                                                                                                                                   losing
                                                                                                        correspo                                                               t profit
                                                                                                                                                                  control.
                                                                                                        nding to                                                              and loss.
                                                                                                           the
                                                                                                        disposal
                                                                                                        investme
                                                                                                           nt.

SL Group Jiangwan Rice        255,00      2.00   Sale    August,      Share Transfer Agreement          215,501.     49.00    1,145,00   1,145,00                 Book       None


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Industry Co., Ltd               0.00                    2021                                                  72            0.00     0.00             value

SL Group Lianhe Ecology       21,000.                   August,                                         -50,939.5                                     Book
                                         21.00   Sale                Share Transfer Agreement                       49.00                                       None
Farm Co., Ltd                     00                    2021                                                   4                                      value

SL Group Yuan Agriculture                               September,   Industrial   and      commercial                                                 Book
                                         40.00   Sale                                                   2,291.72    30.00                                       None
Co., Ltd                                                2021         change registration                                                              value

SL Group Lvzhiyuan                                      September,   Industrial   and      commercial   142,792.                                      Book
                                         40.00   Sale                                                               30.00                                       None
Agriculture Co., Ltd                                    2021         change registration                      55                                      value

SL Group Dongwei Rice                                   September,   Industrial   and      commercial   92,134.3                                      Book
                                         21.00   Sale                                                               30.00                                       None
Industry Co., Ltd                                       2021         change registration                       2                                      value

SL(Ningbo) Grain Sales Co.,                             September,   Industrial   and      commercial   23,927.9                                      Book
                                        100.00   Sale                                                                                                           None
Ltd                                                     2021         change registration                       1                                      value




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5. Change of combination scope for other reasons
    (1) Newly established entities for the current period
                                                                                                                    Unit: Yuan

                        Name                             Date of    Net assets at the end of the Net profit from the combination
                                                    establishment             period             date to the end of the period
Zhuhai Gree Electormechanical Engineering (Linyi) March 1, 2021                 36,931,910.01                      6,931,910.01
Co., Ltd.
Wuhu Gree Intelligent Logistics Co., Ltd          March 19, 2021

Gree (Zhuhai Hengqin) Development Co., Ltd.       April 25, 2021               998,450,036.83                     -1,549,963.17

Gree Electric Appliances (Linyi) Co., Ltd.        May 6, 2021                  194,574,519.31                     -5,425,480.69
Jiangxi Jinrun Real Estate Co., Ltd               June 16, 2021                 85,809,836.46                    -14,190,163.54
Changsha Kinghome Electrics Co., Ltd              July 1, 2021                   5,720,175.31                       -279,824.69
Green Electricity New Material (Maanshan)         September 7,
Technology Co., Ltd.                              2021
Wuhan Yuli Runzhu Real Estate Co., Ltd            September 26,                  6,723,663.82                       -276,336.18
                                                  2021
Hua Hin High Conductivity (Maanshan) Technology October 12, 2021
Co., Ltd.
Zhuhai MinRoad Supply Chain Technology Co.,       November 19,
Ltd                                               2021
      (2)Other decrease for the current period

    The company cancelled its subsidiaries, SL Group Ermapao Eco-Farm Co., Ltd. and Handan Yingdong New
Energy Technology Co., Ltd.




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VIII. Engagement and disengagement of accounting firms

Accounting firms currently hired

                                                                   Union Power Certified Public Accountants (Special General
Name of domestic accounting firm
                                                                   Partnership)

Remuneration for the domestic accounting firm (10,000 yuan)        396

Consecutive years for the domestic accounting firm to render
                                                                   7 years
audit service

Name of Certified Public Accountant of Domestic Accounting
                                                                   Han Zhenping, Qiu Yiwu
Firm

Names of certified public accountants of the domestic accounting
                                                                   2 years, 1 year
firm

Whether a new accounting firm was hired for the current period
□ Yes √ No
Engagement of an accounting firm for internal control auditing, financial adviser or sponsor
√ Applicable □ Not applicable
During the year, the Company hired Union Power CPAs Co., Ltd. (special general partnership) as its internal control accounting firm.


IX. Delisting after disclosure of the Annual Report

□ Applicable √ Not applicable


X. Matters related to bankruptcy reorganization

□ Applicable √ Not applicable
The Company was not involved in any matter related to bankruptcy reorganization in the report period.


XI. Major legal action or arbitration

□ Applicable √ Not applicable
The Company was not involved in any major legal action or arbitration for the report period.


XII. Punishment and rectification

□ Applicable √ Not applicable
The Company was not involved in any punishment or rectification during the report period.


XIII. Integrity status of the Company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable




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XIV. Significant related transactions

1. Related transactions associated with day-to-day operation

√ Applicable □ Not applicable

                                                                                            Amount of                    Approved                                  Available
                                                                Related                                   Proportion                   Exceeding
                                   Related      Content of                     Price of      related                     transaction               Settlement       market
   Related         Related                                    transactions                                 to amount                      the                                      Date of
                                 transaction      related                    related-party transactions                   amount                    of related      price of                    Disclosure Index
       parties   relationships                                  pricing                                    of similar                  approved                                   disclosure
                                    types      transactions                  transactions    (10,000                      (10,000                  transactions     similar
                                                               principles                                 transactions                  amount
                                                                                              yuan)                        yuan)                                  transactions

                 Companies
                                                              Based on
                 where
                                                              the market
                 directors of
Zhejiang                                                      price, to be                                                                                                                     Disclosed on
                 the
Shengshi                                                      determined                                                                           Payment                                     www.cninfo.com.cn
                 Company         Sale of       Sale of                       Market                                                                               Market         April 29,
Xinxing Gree                                                  subject to                    617,406.28          4.26%       720,000 No             before                                      on April 29, 2021,
                 act as          goods         products                      Price                                                                                Price          2021
Trading Co.,                                                  the                                                                                  delivery                                    Announcement No.
                 executive
Ltd.                                                          negotiation                                                                                                                      2021-018
                 directors
                                                              between
                 and general
                                                              two parties
                 managers

                                                              Based on
                 Companies
                                                              the market
                 where
Henan                                                         price, to be                                                                                                                     Disclosed on
                 directors of
Shengshi                                                      determined                                                                           Payment                                     www.cninfo.com.cn
                 the             Sale of       Sale of                       Market                                                                               Market         April 29,
Xinxing Gree                                                  subject to                    281,758.29           1.95       680,000 No             before                                      on April 29, 2021,
                 Company         goods         products                      Price                                                                                Price          2021
Trading Co.,                                                  the                                                                                  delivery                                    Announcement No.
                 act as
Ltd.                                                          negotiation                                                                                                                      2021-018
                 executive
                                                              between
                 directors
                                                              two parties
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                                                                                                 2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                Companies
                and their                                   Based on
                                            Sales of
Gree            subsidiaries                                the market
                                            intelligent
Altairnano      and holding                                 price, to be                                                                                                   Disclosed on
                                            equipment,
New Energy      subsidiaries                                determined                                                                                                     www.cninfo.com.cn
                               Sale of      molds,                         Market                                                     Settlement Market        April 29,
Inc. and its    where the                                   subject to                   70,903.27         0.49%    300,000 No                                             on April 29, 2021,
                               goods        vehicle air                    Price                                                      by progress Price        2021
subsidiaries    chairman of                                 the                                                                                                            Announcement No.
                                            conditioners,
and holding     the                                         negotiation                                                                                                    2021-018
                                            power
subsidiaries    Company                                     between
                                            systems, etc.
                serves as a                                 two parties
                director

                Companies
                and their                                   Based on
                                            Batteries,
Gree            subsidiaries                                the market
                                            energy
Altairnano      and holding                                 price, to be                                                                                                   Disclosed on
                                            storage
New Energy      subsidiaries                                determined                                                                                                     www.cninfo.com.cn
                               Material     components,                    Market                                                     Settlement Market        April 29,
Inc. and its    where the                                   subject to                   10,861.18         0.08%     30,000 No                                             on April 29, 2021,
                               Procurement new energy                      Price                                                      by progress Price        2021
subsidiaries    chairman of                                 the                                                                                                            Announcement No.
                                            vehicles and
and holding     the                                         negotiation                                                                                                    2021-018
                                            accessories,
subsidiaries    Company                                     between
                                            etc.
                serves as a                                 two parties
                director

Total                                                             --               --   980,929.02         --      1,730,000     --       --              --          --            --

Details of large-amount sales return                        Not Applicable

Actual fulfillment (if any) in the report period when the
total amount is estimated by category for the daily         Implementation is within the limit
related transaction to take place for the current period



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                                                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

Cause for the large difference between transaction
                                                     Not Applicable
price and market reference price (if applicable)




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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


2. Related transactions of acquisition or sales of assets or equity

□ Applicable √ Not applicable
The Company was not involved in any related transaction of acquisition or sales of assets or equity in the report period.


3. Related transactions of common foreign investment

□ Applicable √ Not applicable
The Company was not involved in any related transaction of common foreign investment during the report period.


4. Associated credits and liabilities

□ Applicable √ Not applicable
The Company was not involved in any associated credit or liability in the report period.


5. Transactions with finance companies with which the company has related relationships

□ Applicable √ Not applicable
There is no deposit, loan, credit or other financial business between the company and the finance company and related parties with
which the company has related relationships.


6. Transactions between the financial company controlled by the enterprise and related parties

□ Applicable √ Not applicable
There is no significant deposit, loan, credit or other financial business between the finance company controlled by the enterprise and
related parties.


7. Other significant related transactions

□ Applicable √ Not applicable
The Company was not involved in other significant related party transactions during the report period.


XV. Significant contracts and their fulfillment

1. Information about trusteeship, contracting and lease

(1) Trusteeship

□ Applicable √ Not applicable
The Company was not involved in any trusteeship during the report period.


(2) Contracting

□ Applicable √ Not applicable

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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


The Company was not involved in any contracting matter during the report period.


(3) Lease

□ Applicable √ Not applicable
The Company was not involved in any lease during the report period.




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2. Significant guarantee

√ Applicable □ Not applicable
                                                                                                                                                                                 Unit: 10,000 yuan

                                                    External guarantees of the company and its subsidiaries (excluding guarantees to subsidiaries)

                   Date of disclosure                                                                                                                                    Whether
                                                                                                                                                                                       Whether
                         of the                                                                                                                                            the
  Name of the                           Guarantee        Actual date of     Actual amount                        Collateral (if   Counter-guarantee                                  guarantee is
                     announcement                                                             Guarantee type                                          Guarantee period fulfillment
guarantee object                         amount           occurrence         of occurrence                           any)              (if any)                                       for related
                      related to the                                                                                                                                        is
                                                                                                                                                                                       parties
                   guarantee amount                                                                                                                                     completed

None

                                                                            Guarantee of the Company to its subsidiaries

                   Date of disclosure                                                                                                                                    Whether
                                                                                                                                                                                       Whether
                         of the                                                                                                                                            the
  Name of the                           Guarantee        Actual date of     Actual amount                        Collateral (if   Counter-guarantee                                  guarantee is
                     announcement                                                             Guarantee type                                          Guarantee period fulfillment
guarantee object                         amount           occurrence         of occurrence                           any)              (if any)                                       for related
                      related to the                                                                                                                                        is
                                                                                                                                                                                       parties
                   guarantee amount                                                                                                                                     completed

None

                                                                              Guarantee of subsidiaries to subsidiaries

                   Date of disclosure                                                                                                                                    Whether
                                                                                                                                                                                       Whether
                         of the                                                                                                                                            the
  Name of the                           Guarantee        Actual date of     Actual amount                        Collateral (if   Counter-guarantee                                  guarantee is
                     announcement                                                             Guarantee type                                          Guarantee period fulfillment
guarantee object                         amount           occurrence         of occurrence                           any)              (if any)                                       for related
                      related to the                                                                                                                                        is
                                                                                                                                                                                       parties
                   guarantee amount                                                                                                                                     completed




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                                                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                                                                From the effective
                                                                                                                date of the
                                                                                                                guarantee contract
                                                                                                                to three years after
Gree Altairnano December 24,
                                  65,000 December 29, 2021   65,000 General warranty None       None            the date of             No   No
New Energy Inc. 2021
                                                                                                                expiration of the
                                                                                                                performance period
                                                                                                                of the debt under
                                                                                                                the main contract

                                                                                                                From the effective
                                                                                                                date of the
                                                                                                                guarantee contract
Tianjin
                                                                                                                to three years after
Guangtong          December 24,
                                  35,000 December 29, 2021   35,000 General warranty None       None            the date of             No   No
Automobile Co., 2021
                                                                                                                expiration of the
Ltd.
                                                                                                                performance period
                                                                                                                of the debt under
                                                                                                                the main contract

                                                                                                                From the effective
                                                                                                                date of the
Zhuhai Gree
                                                                                                                guarantee contract
Altairnano
                   December 24,                                                                                 to three years after
Electric                          10,000 December 28, 2021   10,000 General warranty None       None                                    No   No
                   2021                                                                                         the expiration of the
Appliances, Co.,
                                                                                                                performance period
Ltd
                                                                                                                of the debt under
                                                                                                                the main contract




                                                                       136
                                                                                                 2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

Zhuhai
Guangtong           December 24,
                                             30,000
Automobile Co., 2021
Ltd.

Total amount of guarantees to                                               Total occurrence amount of
subsidiaries approved during the                                   140,000 guarantees to subsidiaries during                                                               110,000
report period(C1)                                                           the report period(C2)

Total amount of guarantees to                                               Total actual guarantee balance to
subsidiaries approved at the end of                                140,000 subsidiaries at the end of the                                                                  110,000
the report period(C3)                                                       report period (C4)

Total company guarantees (i.e. total of the first three major items)

                                                                            Total occurrence amount of
Total amount of guarantee approved during
                                                                   140,000 guarantees incurred during the                                                                  110,000
the report period (A1+B1+C1)
                                                                            report period (A2+B2+C2)

                                                                            Total actual guarantee balance at
Total amount of approved guarantees at the
                                                                   140,000 the end of the report period                                                                    110,000
end of the report period (A3+B3+C3)
                                                                            (A4+B4+C4)

Proportion of actual total guarantees (i.e. A4+B4+C4) to the company's
                                                                                                                                                                            1.06%
net assets

Among them:

Balance of guarantees provided by shareholders, effective controllers
                                                                                                                                                                                0
and their related parties (D)

Debt guarantee balance for guaranteed parties whose direct or indirect
                                                                                                                                                                           110,000
asset-liability ratio is over 70% (E)

Total guarantee amount exceeding 50% of the net assets (F)                                                                                                                      0

Total amount of the foregoing three items (D+E+F)                                                                                                                          110,000

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                                                                                             2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

For unexpired guarantee contracts, a description of the guarantee
liability has been incurred during the report period or there is evidence   Not Applicable
of the possibility of joint and several liabilities

Description of external guarantees provided in violation of prescribed
                                                                            Not Applicable
procedures (if any)




                                                                                             138
                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


3. Entrusting others to execute any cash asset management

(1) Entrusted financing

√ Applicable □ Not applicable
Overview of entrusted wealth management during the report period
                                                                                                                      Unit: 10,000 yuan

                       Source of funds for    Occurrence amount                                                   Impaired amount for
                                                                                            Amount overdue but
   Specific type         entrusted wealth     of entrusted wealth    Outstanding balance                            overdue wealth
                                                                                              not recovered yet
                          management             management                                                          management

Bank wealth
management            Own funds                          50,156.41
products

Trust wealth
management            Own funds                           5,078.35
products

Broke wealth
management            Own funds                           8,130.93               8,130.93
products

Total                                                    63,365.69               8,130.93

Specific situation of high-risk entrusted wealth management with large single amount or low security and poor liquidity
□ Applicable √ Not applicable
Entrusted wealth management has the circumstance that it is expected to be unable to recover the principal or other circumstances
that may cause impairment
□ Applicable √ Not applicable


(2) Entrusted loan

□ Applicable √ Not applicable
The Company was not involved in any entrusted loan during the report period.


4. Other significant contracts

□ Applicable √ Not applicable
The Company did not enter into any other significant contract during the report period.


XVI. Description of other significant matters

□ Applicable √ Not applicable
There were no other significant matters that need to be explained during the report period.




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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


XVII. Significant Matters of the Company's Subsidiaries

□ Applicable √ Not applicable




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                                                Section Ⅶ Changes in Shares and Shareholders

I. Changes in shares
1. Changes in share capital
                                                                                                                                                                        Unit: shares

                                                  Before this change                         Increase and decrease of this change (+, -)                    After this change

                                                                                                            Shares
                                                                               New
                                                Quantity         Percentage              Bonus Issue   converted from        Others        Subtotal      Quantity      Percentage
                                                                               Issue
                                                                                                        reserved funds

I. Shares with trading restriction conditions       45,822,044         0.76%                                                   -244,719       -244,719   45,577,325             0.77%

  1. Shares held by the State

  2. Shares held by the state-owned legal
person

  3. Shares held by other domestic capital          45,822,044         0.76%                                                   -244,719       -244,719   45,577,325             0.77%

     Among them: Shares held by the
domestic legal person

          Shares held by the domestic
                                                    45,822,044         0.76%                                                   -244,719       -244,719   45,577,325             0.77%
natural person

  4. Shares held by the foreign capital

     Among them: Shares held by the
foreign legal person

          Shares held by the foreign natural
person


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II. Shares without trading restriction
                                          5,969,908,834   99.24%                                  -101,017,119   -101,017,119 5,868,891,715   99.23%
conditions

  1. RMB common stocks                    5,969,908,834   99.24%                                  -101,017,119   -101,017,119 5,868,891,715   99.23%

  2. Domestically listed foreign shares

  3. Overseas listed foreign shares

  4. Others

III. Total of shares                      6,015,730,878   100.00%                                 -101,261,838   -101,261,838 5,914,469,040   100.00%




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                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Causes for changes in share capital
√ Applicable □ Not applicable

     On November 9, 2021, the total share capital of the Company and the number of circulating shares with
unlimited sale conditions changed from 6,015,730,878 shares to 5,914,469,040 shares as a result of the
cancellation of shares in the special securities account for the repurchase, please refer to "Announcement of
Zhuhai Gree Electric Appliances, Inc. Announcement No.: 2021-073) on www.cninfo.com.cn.

Approval of share changes
√ Applicable □ Not applicable

     The Company held the 23th Meeting of the 11th Board of Directors and the 17th Meeting of the 11th Board
of Supervisors on June 27, 2021. The Second Interim General Meeting of 2021 held on September 29, 2021
deliberated and approved the "Proposal on Changing the Use of Repurchased Shares and Cancellation" and
decided to adjust the use of the second phase of repurchased shares from the original plan of "Repurchased shares
will be used for Employee Stock Ownership Plan or equity incentive" to "Repurchased shares will be used for
cancellation to reduce registered capital". After this change and cancellation, the total share capital of the
Company was changed from 6,015,730,878 shares to 5,914,469,040 shares. For details, please refer to
"Announcement of Zhuhai Gree Electric Appliances, Inc. on the Completion of Cancellation of Repurchased
Shares and Changes in Shares" (Announcement No. 2021-073) on www.cninfo.com.cn.


Transfer of share changes
□ Applicable √ Not applicable
Effect of share changes on financial indicators such as basic earnings per share, diluted earnings per share and net assets per share
attributable to common shareholders of the Company for the latest year and the latest period
√ Applicable □ Not applicable

     The Company's net profit attributable to shareholders of the parent company in 2021 was 23,063,732,372.62
yuan, and the equity attributable to owners of the parent company was 103,651,654,599.87 yuan as of the end of
the report period. Based on the weighted average number of 5,714,951,366.88 common shares outstanding in
2021, corresponded earnings per share and diluted earnings per share were 4.04 yuan, and net asset per share was
18.14 yuan; Based on the weighted average number of 5,983,797,083.90 common shares outstanding in 2020,
earnings per share and diluted earnings per share were 3.85 yuan and the net asset value per share was 17.32 yuan.

Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory authority
□ Applicable √ Not applicable


2. Changes in restricted shares

√ Applicable □ Not applicable
                                                                                                                            Unit: shares

                        Number of          Number of           Number of           Number of
     Name of         restricted shares   restricted shares   restricted shares   restricted shares   Reasons for
                                                                                                                       Release date
   shareholders      at the beginning increased for the       released from      at the end of the   restriction
                       of the period      current period     lock-up for the          period

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                                                          current period

                                                                                         Outgoing Senior
Wang Jingdong                     884,674                        221,169       663,505 Management          July 16, 2022
                                                                                         Share Lock-Up

                                                                                         Senior
Duan Xiufeng                      596,625                        149,100       447,525 Management          -
                                                                                         Lock-Up Shares

                                                                                         Senior
Fang Xiangjian                         0        125,550                        125,550 Management          -
                                                                                         Lock-Up Shares

Total                        1,481,299          125,550          370,269     1,236,580            --              --


II. Issuance and listing of securities

1. Issuance of securities (excluding preferred shares) during the report period

□ Applicable √ Not applicable


2. Description of changes in the Company's total number of shares and shareholder structure, and assets
and liability structure

√ Applicable □ Not applicable

     The Company held the 23th Meeting of the 11th Board of Directors and the 17th Meeting of the 11th Board
of Supervisors on June 27, 2021. The Second interim General Meeting of 2021 held on September 29, 2021
deliberated and approved the "Proposal on Changing the Use of Repurchased Shares and Cancellation", and
decided to adjust the use of the second phase of repurchased shares from the original plan of "repurchased shares
will be used for employee stock ownership plan or equity incentive" to "repurchased shares will be used for
cancellation to reduce registered capital". After this change and cancellation, the total share capital of the
Company was changed from 6,015,730,878 shares to 5,914,469,040 shares.

     On November 9, 2021, the total share capital of the Company and the number of circulating shares with
unlimited sale conditions changed from 6,015,730,878 shares to 5,914,469,040 shares as a result of the
cancellation of shares in the special securities account for the repurchase, please refer to "Announcement of
Zhuhai Gree Electric Appliances, Inc. Announcement No.: 2021-073) on www.cninfo.com.cn.

3.Existing internal employee stock

□ Applicable √ Not applicable




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III. Information about the shareholders and actual controllers

1. Number of shareholders and their shareholding status

                                                                                                                                                                                                Unit: shares

                                                                                                                                                             Total number of preferred
                                                                                                                                                             shareholders (if any)
                                              Total number of common                                Total number of preferred
Total number of                                                                                                                                              whose voting rights were
                                              shareholders at the end of                            shareholders (if any) whose
common shareholders                                                                                                                                          restored at the end of last
                                     949,288 last month before the                          926,919 voting rights were restored at                      0                                                 0
at the end of the report                                                                                                                                     month before the
                                              disclosure date of the                                the end of report period (See
period                                                                                                                                                       disclosure date of the
                                              annual report                                         Note 8)
                                                                                                                                                             annual report (See Note
                                                                                                                                                             8)

                                      Shareholding of the shareholders holding more than 5% of total stocks or shareholding of the top 10 shareholders

                                                                                                                 Number of                                        Pledged, tagged or frozen
                                                                                                                                    Number of
                                                                            Number of                            shares with
                                                                                             Increase/decrease                  shares without
                                                        Shareholding shares held at                                trading
   Name of shareholders       Nature of shareholder                                          during the report                        trading
                                                          proportion       the end of the                        restriction                             Stock status                      Quantity
                                                                                                  period                             restriction
                                                                              period                             conditions
                                                                                                                                conditions held
                                                                                                                    held

Zhuhai Mingjun Investment
                            Domestic non-state-owned
Partnership (Limited                                           15.26%       902,359,632                                                            Pledged                                     902,359,632
                            legal person
Partnership)

Hong Kong Securities
                            Foreign legal person               11.15%       659,345,659          -465,565,385
Clearing Company Ltd.

Jinghai Internet Technology Domestic non-state-owned
                                                                8.34%       493,140,455
Development Co., Ltd.       legal person


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China Securities Finance
                              State-owned legal person                3.04%   179,870,800
Co., Ltd.

Zhuhai Gree Group Co.,
                              State-owned legal person                2.87%   169,519,792      -24,376,200
Ltd.

Foresea Life Insurance Co.,
                              Others                                  0.79%    46,660,192      -13,426,669
Ltd. – Hai Li Nian Nian

Zhuhai Gree Electric
Appliances, Inc.- Employee
                              Others                                  0.78%    46,334,473      46,334,473
Stock Ownership Plan
Phase I

Dong Mingzhu                  Domestic natural person                  0.75    44,488,492                      33,366,369      11,122,123 Pledged                                   17,162,750

HHLR Management
Limited - HHLR China          Foreign legal person                    0.73%    43,396,407
Fund

Abu Dhabi Investment
                              Foreign legal person                    0.48%    28,401,951        3,051,813
Authority

Situation (if any) where a strategic investor or general
legal person becomes one of top 10 shareholders due to None
placement of new shares (see Note 3)

                                                           Zhuhai Mingjun Investment Partnership (Limited Partnership) and Dong Mingzhu are the persons acting in concert. Except for that, the
Description for related relationship or concerted action
                                                           Company does not know whether there is related relationship between the above shareholders or whether they are persons acting in
of the above shareholders
                                                           concert.

Description of above-mentioned shareholders’
entrusting/being entrusted with and waiving voting         None
rights




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Special Note on the existence of repurchase accounts
                                                            Zhuhai Gree Electric Appliances, Inc. held 377,791,307 shares, or 6.39% of the shares at the end of the report period.
among the top 10 shareholders (if any) (see Note 10)

                                                       Shareholding of the top 10 shareholders of shares without trading restriction conditions

                                                              Number of shares without trading restriction conditions held at the end of the                      Type of stocks
                  Name of shareholders
                                                                                              report period                                         Type of stocks                   Quantity

Zhuhai Mingjun Investment Partnership (Limited
                                                                                                                                 902,359,632 RMB common stocks                           902,359,632
Partnership)

Hong Kong Securities Clearing Company Ltd.                                                                                       659,345,659 RMB common stocks                           659,345,659

Jinghai Internet Technology Development Co., Ltd.                                                                                493,140,455 RMB common stocks                           493,140,455

China Securities Finance Co., Ltd.                                                                                               179,870,800 RMB common stocks                           179,870,800

Zhuhai Gree Group Co., Ltd.                                                                                                      169,519,792 RMB common stocks                           169,519,792

Foresea Life Insurance Co., Ltd. – Hai Li Nian Nian                                                                              46,660,192 RMB common stocks                            46,660,192

Zhuhai Gree Electric Appliances, Inc.- Employee Stock
                                                                                                                                  46,334,473 RMB common stocks                            46,334,473
Ownership Plan Phase I

HHLR Management Limited - HHLR China Fund                                                                                         43,396,407 RMB common stocks                            43,396,407

Abu Dhabi Investment Authority                                                                                                    28,401,951 RMB common stocks                            28,401,951

Central Huijin Asset Management Co., Ltd                                                                                          26,291,256 RMB common stocks                            26,291,256

Description for related relationship or concerted action
among the top 10 shareholders holding circulating
                                                            Zhuhai Mingjun Investment Partnership (Limited Partnership) and Dong Mingzhu are the persons acting in concert. Except for that, the
shares without trading restriction conditions and
                                                            Company does not know whether there is related relationship between the above shareholders or whether they are persons acting in
between the top 10 shareholders holding circulating
                                                            concert.
shares without trading restriction conditions and the top
10 shareholders




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Description of the participation in margin trading
business of the top 10 common shareholders (if any)     None
(see Note 4)

Whether the top 10 common shareholders and top 10 common shareholders without trading restriction conditions of the Company conducted agreed repurchase transactions in the report period
□ Yes √ No
The top 10 common shareholders and top 10 common shareholders without trading restriction conditions of the Company didn't conduct agreed repurchase transactions in the report period.




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2. Company's controlling shareholder

Nature of controlling shareholder: No controlling entity
Type of controlling shareholder: No controlling shareholder
Description of the situation that the Company has no controlling shareholder

     On December 2, 2019, Gree Group and Zhuhai Mingjun signed the Share Transfer Agreement between
Zhuhai Gree Group Co., Ltd. and Zhuhai Mingjun Investment Partnership (Limited Partnership) Concerning 15%
of the Shares of Zhuhai Gree Electric Appliances, Inc., pursuant to which Gree Group transferred its 902,359,632
held in the Company (accounting for 15.00% of the Company's total equity) to Zhuhai Mingjun. After the
transaction was completed, the single largest shareholder Zhuhai Mingjun and its person acting in concert Dong
Mingzhu cannot approve the specific proposals with their voting rights on the shares of listed companies that are
actually at their disposal, which are not enough to have a significant impact on the resolutions of the shareholders'
meeting of the listed company, and cannot decide the selection of more than half of the members of the Board of
Directors of the listed company. Therefore, the listed company has no controlling shareholders and no actual
controllers. For more details, please refer to the "Reply to the Inquiry Letter from Shenzhen Stock Exchange"
disclosed by the Company on www.cninfo.com.cn on January 18, 2020.


Change in controlling shareholder during the report period
□ Applicable √ Not applicable
There was no change in the controlling shareholder of the Company during the report period.


3. Actual controller of the Company and its person acting in concert

Nature of the actual controller: No actual controller
Type of the actual controller: No actual controller
Description of the situation that the Company has no actual controller

     On December 2, 2019, Gree Group and Zhuhai Mingjun signed the Share Transfer Agreement between
Zhuhai Gree Group Co., Ltd. and Zhuhai Mingjun Investment Partnership (Limited Partnership) Concerning 15%
of the Shares of Zhuhai Gree Electric Appliances, Inc., pursuant to which Gree Group transferred its 902,359,632
held in the Company (accounting for 15.00% of the Company's total equity) to Zhuhai Mingjun. After the
transaction was completed, the single largest shareholder Zhuhai Mingjun and its person acting in concert Dong
Mingzhu cannot approve the specific proposals with their voting rights on the shares of listed companies that are
actually at their disposal, which are not enough to have a significant impact on the resolutions of the shareholders'
meeting of the listed company, and cannot decide the selection of more than half of the members of the Board of
Directors of the listed company. Therefore, the listed company has no controlling shareholders and no actual
controllers. For more details, please refer to the "Reply to the Inquiry Letter from Shenzhen Stock Exchange"
disclosed by the Company on www.cninfo.com.cn on January 18, 2020.


Whether there are shareholders with a shareholding ratio of more than 10% at the ultimate control level of the Company
√ Yes □ No
Legal person
Particulars on shareholding at the ultimate control level
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                                          Legal
 Name of shareholder at the                                      Date of
                                  representative/Person                                Organization code             Principal business
    ultimate control level                                   establishment
                                         in charge

                                                                                                                Business scope recorded in
                                                                                                                the agreement: Equity
                                  Zhuhai Xianying                                                               investment. (Items that
Zhuhai Mingjun Investment
                                  Equity Investment                                                             need to be approved in
Partnership (Limited                                      May 11, 2017          91440400MA4WJBCR4W
                                  Partnership (Limited                                                          accordance with law can
Partnership)
                                  Partnership)                                                                  only be operated after
                                                                                                                approval by relevant
                                                                                                                departments)

Particulars on equity of other
domestic and overseas listed
companies controlled by the
                                  None
shareholder at the ultimate
control level during the report
period

Change in the actual controller in the report period
□ Applicable √ Not applicable

The company has no actual controller.

The actual controller controls the Company through a trust or other asset management methods
□ Applicable √ Not applicable


4. The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of
the Company and its concert parties reached 80% of the number of shares held by them in the Company.

√ Applicable □ Not applicable

                                                                                                                                 Whether it
                                     Total amount                                                          Whether there
                                                                                            Source of                            affects the
                       Type of      of stock pledge       Specific         Repayment                       is a risk of debt
     Name                                                                                  repayment                           stability of the
                  shareholders        financing           purpose           Period                            service or
                                                                                              funds                            control of the
                                    (10,000 yuan)                                                            liquidation
                                                                                                                                    company

Zhuhai
Mingjun
Investment       The largest                          Repayment of                       Own funds and
                                          1,897,400                    April 30, 2027                      No                  No
Partnership      shareholder                          original loan                      self-financing
(Limited
Partnership)

                 Persons acting
                                                      Personal         March 18,         Own funds and
Dong Mingzhu in concert with                 45,000                                                        No                  No
                                                      capital demand 2022                self-financing
                 the largest

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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                  shareholder


5. Other corporate shareholders holding more than 10% of shares

□ Applicable √ Not applicable


6. Restrictions on shareholding reduction by controlling shareholders, actual controllers, restructuring
parties and other committed entities

□ Applicable √ Not applicable


IV. Specific implementation of share repurchase during the report period

Progress of implementation of share repurchase
√ Applicable □ Not applicable

                                                                                                                          Number of
                                                                                                                          repurchased
                                                                                                                          shares as a
                    Number of     Proportio                                                                Number of
                                                                       Proposed                                          proportion to
   Program            shares      n to total Proposed repurchase                        Repurchase           shares
                                                                      repurchase                                         the underlying
disclosure time    proposing to     share          amount                                 purpose          repurchased
                                                                        period                                           shares covered
                    repurchase     capital                                                                  (shares)
                                                                                                                         by the Equity
                                                                                                                         Incentive Plan
                                                                                                                            (if any)

                                                                                     The original
                                                                                     purpose of the
                                                                                     plan was
                                                                                     Employee Stock
                                                                    No more than
                                                                                     Ownership Plan or
                                                                    12 months
April 13, 2020     108,365,753      1.80%        5,999,591,034.74                    equity incentive,     108,365,753
                                                                    from April 10,
                                                                                     but after approval,
                                                                    2020
                                                                                     part of it was
                                                                                     changed to
                                                                                     cancellation
                                                                                     purpose




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                                                                                 The original
                                                                                 purpose of the
                                                                                 plan was
                                                                                 Employee Stock
                                                                  No more than
                                                                                 Ownership Plan or
October 14,                                                       12 months
                101,261,838        1.68%       5,999,520,920.65                  equity incentive,     101,261,838
2020                                                              from October
                                                                                 but after approval,
                                                                  13, 2020
                                                                                 part of it was
                                                                                 changed to
                                                                                 cancellation
                                                                                 purpose

                                                                                 The original
                                                                                 purpose of the
                                                                                 plan was
                                                                                 Employee Stock
                                                                  No more than
                                                                                 Ownership Plan or
                                                                  12 months
May 27, 2021    315,760,027        5.25%     14,999,985,072.39                   equity incentive,     315,760,027
                                                                  from May 26,
                                                                                 but after approval,
                                                                  2021
                                                                                 part of it was
                                                                                 changed to
                                                                                 cancellation
                                                                                 purpose

Progress of reducing shares repurchased by centralized bidding
□ Applicable √ Not applicable




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                 Section VIII Related Information of Preferred Share

□ Applicable √ Not applicable
The company did not have any preferred shares during the report period.




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                           Section IX Related Information on Bonds

□ Applicable √ Not Applicable




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                                   Section X Financial statement


I. Audit Report

Type of audit opinion                                                Standard unqualified opinion
Signing date of audit report                                         April 29, 2022
                                                                     Union Power Certified Public Accountants (Special General
Name of audit agency
                                                                     Partnership)
Document number of audit report                                      Union Power Audit (2022) No.0510054
Name of certified public accountant                                  Han Zhenping, Qiu Yiwu
                                                        Audit report text



                                                  Audit Report
                                                                                        Union Power Audit (2022) No.0510054

All shareholders of Zhuhai Gree Electric Appliances, Inc.:

Ⅰ Audit opinion

     We have audited the financial statements of Zhuhai GREE Electric Appliances, Inc.(hereinafter referred to as "your
company"), including the consolidated and parent company's balance sheets ended December 31, 2021 and consolidated and
parent company's income statements, consolidated and parent company's cash flow statements and consolidated and parent
company's statements of changes in shareholders' equity and notes to financial statements for the year 2021.

     In our opinion, the accompanying financial statements have been prepared in all material aspects in accordance with the
Accounting Standards for Business Enterprises and fairly reflected the consolidated and parent company's financial position
of your company ended December 31, 2021 and consolidated and parent company's operating results and cash flows for the
year 2021.

Ⅱ Basis for forming audit opinions

     We have conducted our audit work according to the provisions of Audit Standards for Certified Public Accountants of
China. The part related to "CPA's responsibility for the audit of financial statements" in the audit report further elaborates our
responsibilities under these standards. In accordance with the China Code of Ethics for Certified Public Account, we are
independent of your company and performed other responsibilities in respect of professional ethics. We believe the audit
evidences obtained by us are sufficient and proper and shall provide the basis for expressing our audit opinion.

Ⅲ Key audit items

     The key audit items are the items that are deemed to be the most important ones in the current financial statement audit
according to our professional judgment. The response to these items is based on the overall audit of the financial statements
and the formation of audit opinions. We do not give separate opinions on these items.




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(Ⅰ) Revenue recognition

                   Key audit items                                        How this item is dealt with in auditing?

     Please refer to "Note III, 31", "Note V, 51" and        1.   We understood the internal control of key financial statements

"Note XIV, 4" in the financial statements.                        related to revenue recognition, and evaluated the effectiveness of


     In FY2021 and FY2020 consolidated financial                  its design and operation;


statements of your company, the revenue from selling         2.   We asked about the revenue recognition policy adopted by the


goods was 187,886,874,900 yuan and 168,190,244,000                management, checked the sales contract sample, understood the


yuan respectively, representing an increase of 11.69%             delivery terms of the transaction, evaluated whether the business


year-on-year.                                                     model was consistent with revenue recognition, evaluated whether

                                                                  the terms of the sales contract comply with industry practices, and
     Since the amount is significant and revenue is one
                                                                  whether the revenue recognition accounting policy meets the
of the key business indicators of your company, and
                                                                  requirements of the accounting standards for business enterprises;
whether it is based on real transactions and whether it is
                                                             3.   On the basis of audit sampling, we inspected the original
included in the appropriate accounting period has a
                                                                  supporting documents related to revenue recognition, such as
significant impact on the financial statements, we
                                                                  orders, delivery orders, and arrival receipts, to evaluate whether the
consider revenue recognition as a key audit matter.
                                                                  revenue actually occurred and whether it was recognized in

                                                                  accordance with the accounting policies;

                                                             4.   On the basis of audit sampling, we implemented the letter

                                                                  verification procedure, and checked the original documents of the

                                                                  difference in the response letter and the situation of the payment, to

                                                                  evaluate the accuracy and authenticity of the occurrence amount of

                                                                  revenue;

                                                             5.   We implemented an analysis procedure to analyze different

                                                                  dimensions such as monthly fluctuations, sales regions, product

                                                                  categories, and product gross profit margins to verify the

                                                                  reasonableness of the transaction;

                                                             6.   We carried out a cut-off test procedure and expanded the scope of

                                                                  post-period inspections to check whether there was inter-period and

                                                                  a sales return to deal with revenue inter-period;

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Key audit items                              How this item is dealt with in auditing?

                                 7.   We also reviewed the adequacy of the information disclosure

                                      related to revenue recognition in "Note III. 31", "Note V. 51" and

                                      "Note XIV. 4" in the financial statements.




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(Ⅱ) Related party relationships and transactions

                    Key audit items                                       How this item is dealt with in auditing?

     Please refer to "Note X, 4", "Note X, 5", "Note X,      1.   We understood, evaluated and tested the internal control related to

6" and "Note X, 8" in the financial statements. ".                the identification and disclosure of related party relationships and


     In 2021, your company purchased 2,750,068,000                their transactions, and reviewed effectiveness of the corresponding


yuan of raw materials, fixed assets and other products            internal control design and implementation


and leased 22,011,300 yuan of fixed assets from the          2.   We obtained the management's statement on integrity of the related


related parties, totaling 2,772,749,300 yuan; sold                party relationships and their transactions, obtained a list of related


1,085,655,200 yuan of air conditioners, intelligent               party relationships provided by management, and checked it


equipment and other products and leased 900 yuan of               against the information obtained from other public channels;


fixed assets to the related parties, totaling 1,085,655.71   3.   We reviewed the major procurement, sales and other contracts to


yuan.                                                             identify whether there was an undisclosed related party, and also

                                                                  obtained the resolution of the Board of Directors and the resolution
     Because of the significant transaction amount of
                                                                  of the shareholders' meeting related to the related transaction,
your company with related parties, the related party
                                                                  checked the permissions and procedure of the related transaction
relationships and integrity of its transaction disclosure
                                                                  decision, judged the legality and compliance of related transactions,
and the fairness of the related transaction will have a
                                                                  and checked if it was authorized and approved appropriately
significant impact on the business performance and
                                                             4.   We carried out the sampling inspection procedure, checked the
disclosure of information. Therefore, we regard the
                                                                  corresponding transaction agreement, delivery order, receipt
related party relationships and their transactions as key
                                                                  document, sales invoice, purchase invoice, sales receipt and
audit items.
                                                                  purchase payment voucher, analyzed the purpose of transaction to

                                                                  determine whether the way of obtaining cash flow of the two

                                                                  parties before and after the transaction, amount and risks were

                                                                  substantially changed, and whether the transaction has commercial

                                                                  substance, and combined other audit procedures such as letters to

                                                                  verify authenticity of the related transaction

                                                             5.   We compared the sale and purchase prices of the related party with

                                                                  the sale and purchase prices of similar products of the non-related

                                                                  parties or the market prices of similar products, and judged fairness

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Key audit items                               How this item is dealt with in auditing?

                                      of the related transaction price;

                                 6.   We expanded the scope of the post-period test procedure and

                                      checked whether there was a sales return;

                                 7.   We also reviewed adequacy of the information disclosure related to

                                      the related relationship and related transaction in "Note X, 4",

                                      "Note X, 5", "Note X, 6" and "Note X, 8" in the financial

                                      statement.




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(Ⅲ) Provision of inventory falling price reserves

                       Key audit items                                         How this item is dealt with in auditing?

     Refer to the description in "Note III. 13", "Note V.
                                                                 1.   We tested implementation of the internal control related to
8" and "Note V. 62" in the financial statement.
                                                                      recognition of provision for inventory falling price reserves

     As of December 31, 2021, the book value of
                                                                 2.   We evaluated the significant judgments, assumptions and estimates
inventory in your company's consolidated balance sheet
                                                                      involved in management's calculation of net realizable value, and
was 4,276,559.83 yuan, wherein the book balance of
                                                                      we reviewed the basis and documentation on which management
inventory was 4,490,657.00 yuan and the provision for
                                                                      determined the future selling price of the inventory and the costs
inventory falling price reserves was 2,140,971.16 yuan.
                                                                      incurred to completion (if relevant), selling expenses and related

     Recognition of the provision for inventory falling               taxes.

price reserves depends on estimation of the net
                                                                 3.   We carried out the auditing procedures such as checking and
realizable value of the inventory. For recognition of the
                                                                      recalculation, and particularly we recalculated to determine the net
net realizable value of the inventory, the management
                                                                      realizable value of the inventory according to the related data;
should estimate the future selling price of inventory, cost
                                                                 4.   We perform an analytical review of the ageing of inventories to
(e.g., the related cost) to be incurred, selling expenses,
                                                                      determine the adequacy of the corresponding provision for
and related taxes by the time of completion.
                                                                      inventory falling price reserves.
     In consideration of the importance of recognition of
                                                                 5.   We conducted supervision of inventory taking. During supervision
the inventory and provision for inventory falling price
                                                                      of inventory taking, we focused on authenticity and accuracy of the
reserves to the consolidated financial statements and the
                                                                      inventory and use of the inventory, checked for slow moving
complicated calculation process of provision for
                                                                      inventory and defective inventory so as to evaluate adequacy of the
inventory    falling    price   reserves,   and    significant
                                                                      provision for inventory falling price reserves;
judgments,     assumptions      and    estimates     of   the

management involved when the net realizable value of             6.   We also checked the adequacy of the information disclosure related

the inventory is determined, there may be error or                    to the provision for falling price reserves in "Note III. 13", "Note V.

potential management bias. Therefore, we identified it as             8" and "Note V. 62" in the financial statement.

a key audit item of your company.




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Ⅳ Other information

     The management of your company is responsible for other information. Other information includes the information covered in

the 2021 annual report of your company, excluding the financial statements and our audit reports.


     Our audit opinions published on financial statements do not cover any other information, and we will not publish any form of

forensic conclusion on other information.


     In connection with our audit of the financial statements, our responsibility is to read the other information identified above, and,

in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained

in the audit, or otherwise appears to be materially misstated.



     If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we


conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report


in this regard.



Ⅴ Responsibilities of management and those charged with governance for financial statements

     The management of your company is responsible for preparing the financial statements in accordance with the requirements of

Accounting Standards to achieve a fair presentation, and for the designing, implementing and maintaining internal control that is

necessary to ensure that the financial statements are free from material misstatements, whether due to frauds or errors.


     In preparing the financial statements, the management of your company is responsible for accessing your company's ability to

continue as a going concern, disclosing matters related to going concern and using the going concern basis of accounting unless

management either intends to liquidate your company or to cease operation, or has no realistic alternative but to do so.


     Those charged with governance are responsible for overseeing your company's financial reporting process.


Ⅵ Auditor's responsibilities for the audit of the financial statements

     Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high

level of assurance, but is not a guarantee that an audit conducted in accordance with the audit standards will always detect a material

misstatement when it exits. Misstatements may arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
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statements.


     As part of an audit in accordance with the audit standards, we exercise professional judgment and maintain professional

skepticism throughout the audit. We also:


     (I) Identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, designed

and performed audit procedures responsive to those risks, and obtained audit evidence that was sufficient and appropriate to provide

a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from

error, as fraud may involve collusion, forgery, omissions, misrepresentations, or the override of internal control.


     (II) Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate.


     (III) Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related

disclosure made by management of your company.


     (IV) Concluded on the appropriateness of using the going concern assumption by the management of your company, and

concluded, based on the audit evidence obtained, whether a material uncertainty exited related to events or conditions that might cast

significant doubt on our company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we were

required to draw attention in our auditor's report to the related disclosure in the financial statements or, if such disclosures were

inadequate, we should issue a non-unqualified opinion. Our conclusions were based on the audit evidence obtained up the date of our

auditor's report. However, future events or conditions might cause your company to cease to continue as a going concern.


     (V) Evaluated the overall presentation, structure and content of the financial statements, including the disclosure, and evaluate

whether the financial statements fairly reflected the underlying transactions and events.


     (VI) Obtained sufficient and appropriate audit evidence for the financial information of your company's entity or business

activities so as to express opinions on the financial statements. We are responsible for guiding, supervising and implementing group

audits. We assume full responsibility for the audit opinions.


     We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the

audit and significant audit matters, including any significant defects in internal control that we identify during our audit.


     We also provided a statement to those charged with governance regarding the observed professional moral requirements related

to independence, and communicated with those charged with governance about all the relationships and other matters that might be

reasonably considered to affect our independence, as well as the related countermeasures (if applicable).


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                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021



     The matters we communicated with governance, we determine the matters that were most important to audit of the current

period financial statements, thus constituting key audit matters. We described these matters in the audit report, unless laws and

regulations prohibit public disclosure of these matters, or, in a few cases, we confirmed that the matter should not be communicated

in the audit report if it was reasonably anticipated that the negative consequence caused by communicating a matter in the audit

report exceeds the benefit generated in terms of public interests.


  Union Power Certified Public Accountants (Special General                Chinese Certified Public
                        Partnership)                                            Accountant:
                                                                            (engagement partner)

                                                                                                                 Han Zhenping



                                                                           Chinese Certified Public
                                                                                Accountant:

                                                                                                                  Qiu Yiwu



                         Wuhan, China                                                           April 29, 2022




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                                    2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                               Consolidated Balance Sheet
                                          December 31, 2021
 Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI Unit: Yuan
                        Item                        Note    December 31, 2021        January 1, 2021     December 31, 2020
    Current assets:
    Monetary funds                                  V. 1    116,939,298,776.87      136,413,143,859.81   136,413,143,859.81
    Lending funds
    Trading financial liabilities                   V. 2                               370,820,500.00        370,820,500.00
    Derivative financial assets                     V. 3           198,773,198.65      285,494,153.96        285,494,153.96
    Bills receivable
    Accounts receivable                             V. 4     13,840,898,802.76        8,738,230,905.44     8,738,230,905.44
    Receivable financing                            V. 5     25,612,056,693.07       20,973,404,595.49    20,973,404,595.49
    Advance payments                                V. 6      4,591,886,517.34        3,129,202,003.24     3,129,202,003.24
    Other receivables                               V. 7           334,161,870.18      147,338,547.86        147,338,547.86
    Including: Interests receivable
            Dividends receivable                                      615,115.33
    Buying back the sale of financial assets
    Inventory                                       V. 8     42,765,598,328.01       27,879,505,159.39    27,879,505,159.39
    Contract assets                                 V. 9      1,151,228,472.63           78,545,525.60        78,545,525.60
    Assets held for sale
    Non-current assets due within one year          V. 10    11,033,571,932.60
    Other current assets                            V. 11     9,382,177,587.07       15,617,301,913.87    15,617,301,913.87
    Total current assets                                    225,849,652,179.18      213,632,987,164.66   213,632,987,164.66
    Non-current assets:
    Disbursement of loans statements and
                                                    V. 12     4,142,652,901.85        5,273,805,581.52     5,273,805,581.52
advances
    Debt investment
    Other debt investments                          V. 13     5,910,056,891.62         502,202,293.17        502,202,293.17
    Long-term receivables                           V. 14            2,419,031.07
    Long-term equity investments                    V. 15    10,337,008,014.57        8,119,841,062.14     8,119,841,062.14
    Other equity instruments investments            V. 16    10,114,246,030.05        7,788,405,891.47     7,788,405,891.47
    Other non-current financial assets              V. 17           81,309,327.39     2,003,483,333.33     2,003,483,333.33
    Investment real estate                          V. 18          454,854,822.63      463,420,861.39        463,420,861.39
    Fixed assets                                    V. 19    31,188,726,142.99       18,990,525,087.94    18,990,525,087.94
    Construction in progress                        V. 20     6,481,236,333.38        4,016,082,730.07     4,016,082,730.07
    Usufruct assets                                 V. 21           14,603,282.99        38,952,103.28
    Intangible assets                               V. 22     9,916,967,208.10        5,878,288,762.64     5,878,288,762.64
    Development expenditures
    Goodwill                                        V. 23          707,629,136.24      201,902,704.02        201,902,704.02
    Long-term unamortized expenses                                  18,724,025.74         1,954,062.19         8,567,923.50
    Deferred income tax assets                      V. 24    13,661,849,772.68       11,550,292,201.02    11,550,292,201.02
    Other non-current assets                        V. 25          716,248,679.90      788,118,031.40        788,118,031.40
    Total non-current assets                                 93,748,531,601.20       65,617,274,705.58    65,584,936,463.61
    Total assets                                            319,598,183,780.38      279,250,261,870.24   279,217,923,628.27

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                            2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


Legal Representative: Dong Mingzhu   Chief Accountant: Liao Jianxiong   Head of Accounting Department: Liu Yanzi




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                                                 Consolidated Balance Sheet (Continued)
                                                            December 31, 2021

Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI Unit: Yuan

                               Item                               Note   December 31, 2021        January 1, 2021     December 31, 2020

   Current liabilities:

   Short-term borrowings                                         V. 26     27,617,920,548.11      20,304,384,742.34    20,304,384,742.34

   Loans from other banks                                        V. 27          300,021,500.00      300,020,250.00       300,020,250.00

   Trading financial liabilities

   Derivative financial liabilities

   Notes payable                                                 V. 30    40,743,984,514.42       21,427,071,950.32    21,427,071,950.32

   Accounts payable                                              V. 31    35,875,090,911.05       31,604,659,166.88    31,604,659,166.88

   Advances from customers

   Contract liabilities                                          V. 32    15,505,499,178.75       11,678,180,424.65    11,678,180,424.65

   Financial assets sold for repurchase                          V. 28          746,564,041.09      475,033,835.62       475,033,835.62

   Deposits from customers and interbank                         V. 29          182,681,905.74      261,006,708.24       261,006,708.24

   Employee pay payable                                          V. 33      3,466,630,401.73       3,365,355,468.69     3,365,355,468.69

   Taxes and dues payable                                        V. 34      2,230,471,191.49       2,301,355,583.02     2,301,355,583.02

   Other payables                                                V. 35      6,763,119,937.14       2,379,395,717.44     2,379,395,717.44

     Including: Interests payable

                 Dividends payable                                                2,367,112.94         6,986,645.96         6,986,645.96

   Liabilities held for sale

   Non-current liabilities due within one year                   V. 36      1,255,294,034.84          22,927,889.42

   Other current liabilities                                     V. 37    62,414,107,264.20       64,382,254,283.54    64,382,254,283.54

   Total current liabilities                                             197,101,385,428.56      158,501,646,020.16   158,478,718,130.74

   Non-current liabilities:

   Long-term borrowings                                          V. 38      8,960,864,258.30       1,860,713,816.09     1,860,713,816.09

   Bonds payable

     Including: Preferred stock

                  Perpetual bond

   Lease liabilities                                             V. 39            3,313,452.52         9,410,352.55

   Long-term payables                                            V. 40          446,194,591.92

   Long-term payroll payable                                     V. 41          164,408,471.00      149,859,788.00       149,859,788.00

   Accrued liabilities

   Deferred Income                                               V. 42      2,702,653,897.78        437,033,702.46       437,033,702.46

   Deferred income tax liabilities                               V. 24      2,293,912,513.79       1,411,111,102.84     1,411,111,102.84

   Other non-current liabilities

   Total non-current liabilities                                          14,571,347,185.31        3,868,128,761.94     3,858,718,409.39

   Total liabilities                                                     211,672,732,613.87      162,369,774,782.10   162,337,436,540.13

   Shareholders’ equity:


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   Capital stock                                                 V. 43     5,914,469,040.00     6,015,730,878.00     6,015,730,878.00

   Other equity instruments

     Including: Preferred stock

             Perpetual bond

   Capital reserves                                              V. 44      125,874,127.56       121,850,280.68       121,850,280.68

   Less: Treasury stock                                          V. 45    19,579,646,233.43     5,182,273,853.90     5,182,273,853.90

   Other comprehensive income                                    V. 46    11,204,004,355.27     7,396,060,195.47     7,396,060,195.47

   Special reserve                                               V. 47        22,403,846.26

   Surplus reserve                                               V. 48     1,983,727,107.74     3,499,671,556.59     3,499,671,556.59

   General risk provisions                                       V. 49      505,599,356.30       497,575,772.26       497,575,772.26

   Undistributed profit                                          V. 50   103,475,223,000.17   102,841,596,377.66   102,841,596,377.66

   Equity total attributable to the shareholders of the parent
                                                                         103,651,654,599.87   115,190,211,206.76   115,190,211,206.76
company

   Minority equity                                                         4,273,796,566.64     1,690,275,881.38     1,690,275,881.38

   Equity total of the shareholders                                      107,925,451,166.51   116,880,487,088.14   116,880,487,088.14

   Total liabilities and shareholders' equity                            319,598,183,780.38   279,250,261,870.24   279,217,923,628.27

 Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




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                                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
                                                                  Consolidated Income Statement
                                                                            January to December in 2021

 Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI                                                                                          Unit: Yuan

                                                        Item                                              Note    For the Year 2021      For the Year 2020

I. Total operating revenues                                                                                        189,654,033,523.50     170,497,415,702.41

    Including: Operating Revenue                                                                          V. 51    187,868,874,892.71     168,199,204,404.53

            Interest revenue                                                                              V. 52      1,785,060,001.28       2,295,972,686.55

            Fee and commission income                                                                                       98,629.51           2,238,611.33

II. Total operating costs                                                                                          163,521,848,332.24     146,260,681,865.34

    Including: Operating Cost                                                                             V. 51    142,251,638,589.87     124,229,033,680.92

            Interest expense                                                                              V. 52        523,238,956.03         304,448,121.92

            Handling charges and commission expenses                                                                       815,760.35             516,318.75

            Taxes and surcharges                                                                          V. 53      1,076,664,461.78         964,600,693.81

            Sales expense                                                                                 V. 54     11,581,735,617.31      13,043,241,798.27

            Administrative expense                                                                        V. 55      4,051,241,003.05       3,603,782,803.64

            Research and development expenses                                                             V. 56      6,296,715,941.03       6,052,563,108.10

            Financial expense                                                                             V. 57      -2,260,201,997.18      -1,937,504,660.07

                 Including: Interest expense                                                                         1,752,112,003.72       1,088,369,394.87

                         Interest revenue                                                                            4,242,449,764.06       3,708,312,903.06

      Add: Other incomes                                                                                  V. 58        832,177,253.43       1,164,120,111.04

           Income from investments (losses expressed with "-")                                            V. 59        522,063,222.58         713,010,071.67

                Including: Investment incomes from joint ventures or associates                                         51,594,928.82          35,314,343.21

                        Income from derecognition of financial assets measured at amortization costs

           Income from changes in fair value (losses expressed with "-")                                  V. 60         -58,130,545.10        200,153,472.05

           Credit impairment losses (losses expressed with "-")                                           V. 61       -150,980,869.74         192,824,692.53

           Asset impairment losses (losses expressed with "-")                                            V. 62       -606,161,255.62        -466,270,321.67

           Income from disposal of assets (losses expressed with "-")                                     V. 63          6,212,295.19           2,945,975.01

III. Operating profit (losses expressed with "-")                                                                   26,677,365,292.00      26,043,517,837.70

      Add: Non-operating revenues                                                                         V. 64        154,321,776.87         287,160,721.97

      Less: Non-operating expenses                                                                        V. 65         28,449,570.30          21,741,130.88

IV. Total profit (total losses expressed with "-")                                                                  26,803,237,498.57      26,308,937,428.79

      Less: Income tax expenses                                                                           V. 66      3,971,343,865.68       4,029,695,233.52

V. Net profit (net loss expressed with "-")                                                                         22,831,893,632.89      22,279,242,195.27

  (I) Classification by business sustainability

         1. Continuous operating net profit (net loss expressed with "-")                                           22,831,895,323.32      22,279,523,503.64

         2. Discontinued operation net profit (net loss expressed with "-")                                                  -1,690.43           -281,308.37

  (II) Classification by ownership

         1. Net profits attributable to shareholders of the parent company ("-" stands for net losses)              23,063,732,372.62      22,175,108,137.32

         2. Minority shareholders' gains and losses ("-" stands for net losses)                                       -231,838,739.73         104,134,057.95

VI. Net of tax of other comprehensive income                                                              V. 46      3,923,057,187.22       1,135,981,683.99


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                                               2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
  (I) Net of tax of other comprehensive income attributable shareholders of the parent company                      3,922,893,977.40    1,135,768,214.34

         1. Other comprehensive income which cannot be reclassified into profits and losses                         3,977,359,915.54    1,242,966,688.50

            (1) Changes arising from remeasurement of the defined benefit plan                                        -12,391,783.00       -6,851,653.00

            (2) Other comprehensive income which cannot be transferred to profit or loss under the equity method    1,849,833,156.32     215,136,201.85

            (3) Changes in fair value of other equity instrument investments                                        2,139,918,542.22    1,034,682,139.65

            (4) Changes in fair value of the company's own credit risk

            (5) Others

         2. Other comprehensive income which will be reclassified into profits and losses in the future               -54,465,938.14     -107,198,474.16

            (1) Other comprehensive income that can be transferred to profit or loss under the equity method             -208,819.44         -182,758.17

            (2) Changes in fair value of other debt investments                                                        -2,346,134.55       -1,862,050.54

            (3) Amount of financial assets reclassified and included into other comprehensive income

            (4) Provision for credit impairment of other debt investments

            (5) Cash flow hedge reserve                                                                                 6,966,706.25      13,739,102.50

            (6) Difference arising from translation of financial statements in foreign currency                       -58,877,690.40     -118,892,767.95

  (II) Net of tax of other comprehensive income attributable to minority shareholders                                    163,209.82          213,469.65

VII. Total comprehensive income                                                                                    26,754,950,820.11   23,415,223,879.26

  (I) Total comprehensive income attributable to shareholders of the parent company                                26,986,626,350.02   23,310,876,351.66

  (II) Total comprehensive income attributable to minority shareholders                                              -231,675,529.91     104,347,527.60

VIII. Earnings per share:

  (I) Basic earnings per share (Yuan per Share)                                                                                 4.04                3.71

  (II) Diluted earnings per share (Yuan per Share)
                                                                                                                                4.04                3.71



 Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




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                                        2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
                                                       Consolidated Cash Flow Statement
                                                               January to December in 2021

 Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI Unit: Yuan

                                          Item                                               Note    For the Year 2021    For the Year 2020

I. Cash flows from operating activities:

Cash received from sale of goods or rendering of services                                            169,646,517,565.79   155,890,384,313.86

Net increase in deposits and due from banks                                                              -78,563,388.63       -92,506,750.32

Net increase in borrowings from central bank

Net increase in placements from other financial institutions                                                                 -700,000,000.00

Cash received from interests, fees and commissions                                                       955,723,978.81     1,137,265,615.92

Net increase in placements from other financial institutions

Net increase in repurchase business capital                                                              271,500,000.00       475,000,000.00

Refund of tax and levies                                                                               2,467,381,243.01     2,484,293,128.44

Other cash received relating to operating activities                                     V 67. (1)     3,938,701,318.02     4,698,328,013.32

     Subtotal of cash inflows from operating activities                                              177,201,260,717.00   163,892,764,321.22

Cash payments for goods acquired and services received                                               145,601,518,405.47   121,793,121,343.62

Net increase in loans and advances to customers                                                       -1,131,768,349.46    -9,091,377,401.54

Net increase in deposits with central bank and other financial institutions                             -633,908,556.69      -976,192,487.64

Net increase in lending funds

Cash paid for interests, fees and commissions                                                            525,419,503.63       312,753,420.49

Cash paid to and on behalf of employees                                                                9,848,593,392.99     8,901,277,136.77

Payments of all types of taxes                                                                         8,371,839,466.55     8,184,052,900.55

Other cash paid relating to operating activities                                         V 67. (2)    12,725,203,595.79    15,530,492,099.81

     Subtotal of cash outflows from operating activities                                             175,306,897,458.28   144,654,127,012.06

     Net cash flows from operating activities                                                          1,894,363,258.72    19,238,637,309.16

II. Cash flows from investing activities:

Cash received from recovery of investments                                                             7,349,802,107.98     9,520,639,757.24

Cash received from return of investments                                                                 161,515,418.96       305,411,730.38

Net cash received from disposal of fixed assets, intangible assets and other long-term
                                                                                                          14,956,809.63         6,631,829.54
assets

Net cash received from disposal of subsidiaries and other business units                                  13,498,800.00

Other cash received relating to investing activities                                     V 67. (3)    47,851,587,196.05     4,322,649,440.42

     Subtotal of cash inflows from investment activities                                              55,391,360,332.62    14,155,332,757.58

Cash paid for purchase and construction of fixed assets, intangible assets and other
                                                                                                       5,727,074,800.44     4,528,646,805.03
long-term assets

Cash paid for investments                                                                             18,154,432,702.74     3,561,055,956.90

Net cash paid for acquisition of subsidiaries and other business units                   V 68. (2)     1,747,336,403.99       425,875,376.81

Other cash paid relating to investing activities                                         V 67. (4)        10,532,866.10     5,542,024,468.66

     Subtotal of cash outflows from investment activities                                             25,639,376,773.27    14,057,602,607.40

     Net cash flows from investment activities                                                        29,751,983,559.35        97,730,150.18


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                                        2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
III. Cash flows from financing activities:

Cash received from absorbing investment                                                           45,113,614.81       14,670,000.00

Including: Cash received from minority shareholder investment by subsidiary                       45,113,614.81       14,670,000.00

Cash received from borrowings                                                                 88,802,444,041.60   37,599,791,534.80

Other cash received relating to financing activities                             V 67. (5)     1,143,534,793.64

     Subtotal of cash inflows from financing activities                                       89,991,092,450.05   37,614,461,534.80

Cash repayments of amounts borrowed                                                           57,868,429,527.67   29,475,431,119.54

Cash paid for dividend and profit distribution or interest payment                            17,546,695,095.00   14,236,014,439.83

Including: Dividends and profits paid to minority shareholders by subsidiaries                                       411,607,065.23

Other cash paid relating to financing activities                                 V 67. (6)    39,906,551,717.86   15,014,513,473.63

     Subtotal of cash outflows from financing activities                                     115,321,676,340.53   58,725,959,033.00

     Net cash flow from financing activities                                                 -25,330,583,890.48   -21,111,497,498.20

IV. Effect of foreign exchange rate changes on cash and cash equivalents                        -589,068,807.74     -372,392,144.48

V. Net increase in cash and cash equivalents                                                   5,726,694,119.85   -2,147,522,183.34

Add: Beginning balance of cash and cash equivalents                                           24,225,049,638.15   26,372,571,821.49

VI. Ending balance of cash and cash equivalents                                               29,951,743,758.00   24,225,049,638.15

 Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




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                                                                                                                                                        2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
                                                                                                Consolidated Statement of Changes in Shareholders' Equity
                                                              January to December in 2021
  Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI Unit: Yuan
                                                                                                                                                                   For the year 2021
                                                                                                                      Equity attributable to the shareholders of the parent company
                Item                                            Other equity instruments                                                        Other                                                                                                                    Minority       Equity total of the
                                                                                                     Capital       Less: Treasury                                    Special               Surplus        General risk       Undistributed
                                       Capital stock    Preferred       Perpetual                                                         comprehensive                                                                                               Subtotal           equity          shareholders
                                                                                       Others      reserves            stock                                       reserves               reserve         provisions            profit
                                                        stock           bond                                                                  income
 I. Ending balance for the
                                     6,015,730,878.00                                            121,850,280.68    5,182,273,853.90         7,396,060,195.47                          3,499,671,556.59    497,575,772.26   102,841,596,377.66   115,190,211,206.76   1,690,275,881.38   116,880,487,088.14
previous year
           Add: Changes in
accounting policies
                Early error
correction
                Business
combination involving
enterprises under common
control
 II. Beginning balance for
                                     6,015,730,878.00                                            121,850,280.68    5,182,273,853.90         7,396,060,195.47                          3,499,671,556.59    497,575,772.26   102,841,596,377.66   115,190,211,206.76   1,690,275,881.38   116,880,487,088.14
the current year
 III. Increase or decrease in
the current year (decrease           -101,261,838.00                                               4,023,846.88   14,397,372,379.53         3,807,944,159.80      22,403,846.26       -1,515,944,448.85     8,023,584.04      633,626,622.51    -11,538,556,606.89   2,583,520,685.26     -8,955,035,921.63
expressed with "-")
 (I) Total comprehensive
                                                                                                                                            3,922,893,977.40                                                                23,063,732,372.62    26,986,626,350.02   -231,675,529.91     26,754,950,820.11
income
 (II) Capital invested by
shareholders and capital             -101,261,838.00                                               4,023,846.88   14,397,372,379.53                               21,259,298.20       -3,499,671,556.59                     -3,794,252,950.50   -21,767,275,579.54   2,864,813,072.60   -18,902,462,506.94
decrease
           1. Ordinary stocks
                                                                                                                                                                                                                                                                       49,331,294.00         49,331,294.00
invested by shareholders
          2. Capital invested by
holders of other equity
           3. Amounts of
share-based payments
                                                                                                  31,002,910.71                                                                                                                                      31,002,910.71                           31,002,910.71
recognized into shareholders'
equity
           4. Others                 -101,261,838.00                                             -26,979,063.83   14,397,372,379.53                               21,259,298.20       -3,499,671,556.59                     -3,794,252,950.50   -21,798,278,490.25   2,815,481,778.60   -18,982,796,711.65
 (III) Profit distribution                                                                                                                                                            1,983,727,107.74      8,023,584.04   -18,744,282,186.78   -16,752,531,495.00     -49,903,893.39   -16,802,435,388.39
           1. Appropriation to
                                                                                                                                                                                      1,983,727,107.74                      -1,983,727,107.74
surplus reserves
           2. Appropriation to
                                                                                                                                                                                                            8,023,584.04        -8,023,584.04
general risk provisions
           3. Allocation to
                                                                                                                                                                                                                           -16,752,531,495.00   -16,752,531,495.00     -49,903,893.39   -16,802,435,388.39
shareholders
           4. Others
 (IV) Internal carry-over of
                                                                                                                                             -114,949,817.60                                                                  108,429,387.17         -6,520,430.43                            -6,520,430.43
shareholders' equity
           1. Transfer of capital
reserves into capital (or stock
capital)
           2. Transfer of surplus
reserves into capital (or stock
capital)
           3. Surplus reserves for
making up losses
           4. Defined benefit
plan change carried over into
retained earnings

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       5. Other
comprehensive income
                                                                                          -114,949,817.60                                                          108,429,387.17         -6,520,430.43                           -6,520,430.43
carried forward to retained
earnings
       6. Others
 (V) Special reserves                                                                                        1,144,548.06                                                                  1,144,548.06        287,035.96          1,431,584.02
       1. Amount withdrawn
                                                                                                             2,404,215.46                                                                  2,404,215.46        552,286.62          2,956,502.08
for the period
       2. Amount used for
                                                                                                             1,259,667.40                                                                  1,259,667.40        265,250.66          1,524,918.06
the period
 (VI) Others
 IV. Ending balance for the
                              5,914,469,040.00     125,874,127.56   19,579,646,233.43   11,204,004,355.27   22,403,846.26   1,983,727,107.74   505,599,356.30   103,475,223,000.17   103,651,654,599.87   4,273,796,566.64   107,925,451,166.51
current year

Legal Representative: Dong Mingzhu               Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




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                                                                               Consolidated Statement of Changes in Shareholders’ Equity (Continued)
                                                                                                   January to December in 2020
  Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI                                                                                                                                                                                                                    Unit: Yuan
                                                                                                                                                          For the Year 2020
                                                                                                              Equity attributable to shareholders of the parent company
             Item                                             Other equity instruments                                                     Other                                                                                                                            Equity total of the
                                                      Preferred      Perpetual     O thers      Capital        Less: Treasury                                Special          Surplus        General risk       Undistributed                           Minority equity
                                     Capital stock                                                                                    comprehensive                                                                                     Subtotal                              shareholders
                                                        stock          bond                    reserves          s tock                  income
                                                                                                                                                             reserve          reserve        provisions           profit
 I. Ending balance for the
                                   6,015,730,878.00                                           93,379,500.71                            6,260,291,981.13                   3,499,671,556.59   489,855,826.75    93,794,643,539.49   110,153,573,282.67   1,894,083,240.41     112,047,656,523.08
previous year
         Add: Changes in
accounting policies
              Early error
correction
              Business
combination involving
enterprises under common
control
 II. Beginning balance for the
                                   6,015,730,878.00                                           93,379,500.71                            6,260,291,981.13                   3,499,671,556.59   489,855,826.75    93,794,643,539.49   110,153,573,282.67   1,894,083,240.41     112,047,656,523.08
current year
 III. Increase or decrease in
the current year (decrease                                                                    28,470,779.97    5,182,273,853.90        1,135,768,214.34                                        7,719,945.51     9,046,952,838.17     5,036,637,924.09   -203,807,359.03        4,832,830,565.06
expressed with “-”)
 (I) Total comprehensive
                                                                                                                                       1,135,768,214.34                                                        22,175,108,137.32    23,310,876,351.66    104,347,527.60       23,415,223,879.26
income
 (II) Capital invested by
shareholders and capital                                                                       2,966,412.88    5,182,273,853.90                                                                                                     -5,179,307,441.02    128,956,545.69       -5,050,350,895.33
decrease
         1. Ordinary stocks
                                                                                                                                                                                                                                                          14,670,000.00           14,670,000.00
invested by shareholders
         2. Capital invested by
holders of other equity
         3. Amounts of
share-based payments
recognized into shareholders'
equity
         4. Others                                                                             2,966,412.88    5,182,273,853.90                                                                                                     -5,179,307,441.02    114,286,545.69       -5,065,020,895.33
 (III) Profit distribution                                                                                                                                                                     7,719,945.51   -13,148,143,215.11   -13,140,423,269.60   -411,607,065.23      -13,552,030,334.83
         1. Appropriation to
surplus reserves
         2. Appropriation to
                                                                                                                                                                                               7,719,945.51        -7,719,945.51
general risk provisions
         3. Allocation to
                                                                                                                                                                                                              -13,140,423,269.60   -13,140,423,269.60   -411,607,065.23      -13,552,030,334.83
shareholders
         4. Others
 (IV) Internal carry-over of
                                                                                              25,504,367.09                                                                                                        19,987,915.96        45,492,283.05     -25,504,367.09          19,987,915.96
shareholders' equity
         1. Transfer of capital
reserves into capital (or stock
capital)
         2. Transfer of surplus
reserves into capital (or stock
capital)
         3. Surplus reserves for
making up losses
         4. Defined benefit plan
change carried over into
retained earnings
         5. Other comprehensive
income carried forward to                                                                                                                                                                                          19,987,915.96        19,987,915.96                             19,987,915.96
retained earnings
   6. Others                                                                                  25,504,367.09                                                                                                                             25,504,367.09     -25,504,367.09
 (V) Special reserves
         1. Amount withdrawn
for the period
         2. Amount used for the
period
 (VI) Others
 IV. Ending balance for the                                                                                   5,182,273,853.90
                                   6,015,730,878.00                                          121,850,280.68                            7,396,060,195.47                   3,499,671,556.59   497,575,772.26   102,841,596,377.66   115,190,211,206.76   1,690,275,881.38     116,880,487,088.14
current year


  Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi



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                                      Balance Sheet of Parent Company
                                                      December 31, 2021
Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI                                                      Unit: Yuan

                    Item                      Note       December 31, 2021     January 1, 2021      December 31, 2020

  Current assets:
  Monetary funds                                          100,413,441,304.10   123,828,677,860.41    123,828,677,860.41
  Trading financial liabilities                                                   370,820,500.00        370,820,500.00
  Derivative financial assets                                  21,610,541.29        76,680,617.45         76,680,617.45
  Bills receivable
  Accounts receivable                        XIV. 1         3,685,619,949.29     3,548,791,695.27      3,548,791,695.27
  Receivable financing                                     21,973,920,103.73    18,642,206,012.24     18,642,206,012.24
  Advance payments                                         23,689,469,573.43    17,963,607,702.38     17,963,607,702.38
  Other receivables                          XIV. 2         2,076,879,180.43     2,307,154,984.66      2,307,154,984.66
    Including: Interests receivable
              Dividends receivable                                                   2,932,373.42          2,932,373.42
  Inventory                                                10,215,532,982.28    13,884,110,379.81     13,884,110,379.81
  Contract assets                                                                                        Not Applicable
  Assets held for sale
  Non-current assets due within one year                   10,969,772,555.56
  Other current assets                                      5,506,040,199.45     9,773,701,904.35      9,773,701,904.35
  Total current assets                                    178,552,286,389.56   190,395,751,656.57    190,395,751,656.57
  Non-current assets:
  Debt investment
  Other debt investments                                    5,182,465,277.78
  Long-term receivables
  Long-term equity investments               XIV. 3        29,888,588,986.29    24,619,357,367.01     24,619,357,367.01
  Other equity instruments investments                      9,889,910,814.28     7,505,139,669.97      7,505,139,669.97
  Other non-current financial assets                           81,309,327.39     2,003,483,333.33      2,003,483,333.33
  Investment real estate                                       19,871,480.80        22,173,605.79         22,173,605.79
  Fixed assets                                              2,535,403,625.71     2,706,217,465.90      2,706,217,465.90
  Construction in progress                                   907,483,903.01       570,077,306.55        570,077,306.55
  Usufruct assets
  Intangible assets                                          843,960,439.75       780,743,893.31        780,743,893.31
  Development expenditures
  Goodwill
  Long-term unamortized expenses
  Deferred income tax assets                               10,730,613,644.43    10,926,393,867.16     10,926,393,867.16
  Other non-current assets                                     86,616,430.09        97,653,134.61         97,653,134.61

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                              2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


   Total non-current assets                          60,166,223,929.53      49,231,239,643.63      49,231,239,643.63
   Total assets                                     238,718,510,319.09     239,626,991,300.20     239,626,991,300.20

Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




                                                       176
                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


                                      Balance Sheet of Parent Company (Continued)
                                                   December 31, 2021
Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI                                                     Unit: Yuan
                       Item                      Note    December 31, 2021     January 1, 2021      December 31, 2020
   Current liabilities:
   Short-term borrowings                                   18,068,823,304.24    15,862,663,592.40     15,862,663,592.40
   Trading financial liabilities
   Derivative financial liabilities
   Notes payable                                           35,673,937,662.52    19,177,017,664.74     19,177,017,664.74
   Accounts payable                                        33,677,905,272.50    44,365,200,963.00     44,365,200,963.00
   Advances from customers
   Contract liabilities                                    12,219,603,424.23    14,594,653,911.45     14,594,653,911.45
   Employee pay payable                                     1,464,834,311.62     1,306,897,769.56      1,306,897,769.56
   Taxes and dues payable                                   1,067,213,552.76      777,604,964.68        777,604,964.68
   Other payables                                           2,470,038,943.73     1,773,107,761.34      1,773,107,761.34
     Including: Interests payable
              Dividends payable                                   602,881.87          602,881.87            602,881.87
   Liabilities held for sale
   Non-current liabilities due within one year               135,037,104.90
   Other current liabilities                               59,674,216,467.38    59,737,975,078.14     59,737,975,078.14
   Total current liabilities                              164,451,610,043.88   157,595,121,705.31   157,595,121,705.31
   Non-current liabilities:
   Long-term borrowings                                     6,606,444,166.67      143,254,262.42        143,254,262.42
   Bonds payable
     Including: Preferred stock
              Perpetual bond
   Lease liabilities
   Long-term payables
   Long-term payroll payable                                 164,408,471.00       149,859,788.00        149,859,788.00
   Accrued liabilities
   Deferred Income                                             85,326,589.00        74,814,702.48         74,814,702.48
   Deferred income tax liabilities                          1,291,446,408.46      848,906,843.68        848,906,843.68
   Other non-current liabilities
   Total non-current liabilities                            8,147,625,635.13     1,216,835,596.58      1,216,835,596.58
   Total liabilities                                      172,599,235,679.01   158,811,957,301.89    158,811,957,301.89
   Shareholders’ equity:
   Capital stock                                            5,914,469,040.00     6,015,730,878.00      6,015,730,878.00
   Other equity instruments
     Including: Preferred stock
              Perpetual bond
   Capital reserves                                          109,621,222.84       184,850,281.86        184,850,281.86
   Less: Treasury stock                                    19,579,646,233.43     5,182,273,853.90      5,182,273,853.90
   Other comprehensive income                              11,663,015,593.78     7,763,409,043.86      7,763,409,043.86
   Special reserve
   Surplus reserve                                          1,983,727,107.74     3,497,114,024.31      3,497,114,024.31
   Undistributed profit                                    66,028,087,909.15    68,536,203,624.18     68,536,203,624.18
   Equity total of the shareholders                        66,119,274,640.08    80,815,033,998.31     80,815,033,998.31
   Total liabilities and shareholders' equity             238,718,510,319.09   239,626,991,300.20   239,626,991,300.20
Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi

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                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021



                                      Income Statement of Parent Company
                                                       January to December in 2021
 Prepared by: GREE ELECTRIC APPLIANCES, INC. OF
                                                                                                                 Unit: Yuan
ZHUHAI

                                    Item                                    Note     For the Year 2021    For the Year 2020
I. Operating revenues                                                       XIV. 4   117,502,214,959.15   107,841,790,174.49
     Less: Operating Cost                                                   XIV. 4    84,576,440,398.57    76,008,352,345.28
             Taxes and surcharges                                                        268,607,695.48       174,392,631.24
             Sales expense                                                             9,733,828,322.47    11,169,691,825.61
             Administrative expense                                                      875,539,864.96       808,715,696.48
             Research and development expenses                                         4,964,928,966.97     4,811,036,302.94
             Financial expense                                                        -3,058,810,928.42    -2,919,245,870.62
               Including: Interest expense                                             1,312,749,932.63       840,469,134.14
                       Interest revenue                                                4,719,654,050.92     4,434,457,504.91
       Add: Other incomes                                                                 98,992,747.91       233,757,468.48
            Income from investments (losses expressed with "-")             XIV. 5     2,960,166,670.54    12,402,627,036.29
              Including: Investment incomes from joint ventures or                       -12,905,170.50       -12,168,894.57
associates            Income from derecognition of financial assets
measuredIncome from net costs hedging (losses expressed with
"-")        Income from changes in fair value (losses expressed with "-")                -57,612,527.32        56,685,742.93
            Credit impairment losses (losses expressed with "-")                          47,932,902.68         2,282,469.02
            Asset impairment losses (losses expressed with "-")                         -482,109,320.46      -178,340,890.13
            Income from disposal of assets (losses expressed with "-")                     1,775,599.93         1,733,177.13
II. Operating profit (losses expressed with "-")                                      22,710,826,712.40    30,307,592,247.28
       Add: Non-operating revenues                                                        19,734,701.84        46,252,800.73
       Less: Non-operating expenses                                                        2,241,847.84         9,176,432.87
III. Total profit (total losses expressed with "-")                                   22,728,319,566.40    30,344,668,615.14
       Less: Income tax expenses                                                       2,891,048,488.98     2,659,156,932.61
IV. Net profit (net loss expressed with "-")                                          19,837,271,077.42    27,685,511,682.53
       (I) Net profit from continuing operations (net loss expressed with             19,837,271,077.42    27,685,511,682.53
"-") (II) Net profit from discontinued operations (net loss expressed
withNet"-")of tax of other comprehensive income                                        4,014,556,367.52     1,301,384,947.45
       (I) Other comprehensive income not to be reclassified to profit or              4,016,410,674.15     1,294,557,343.46
loss          1. Changes arising from remeasurement of the defined                       -12,391,783.00        -6,851,653.00
benefit plan2. Other comprehensive income which cannot be                              1,849,833,156.32       215,136,201.85
transferred 3. Changes in fair value of other equity instrument                        2,178,969,300.83     1,086,272,794.61
investments4. Changes in fair value of the company's own credit risk
           5. Others
       (II) Other comprehensive income to be reclassified to profit or                    -1,854,306.63         6,827,603.99
loss          1. Other comprehensive income that can be transferred to                                           -182,758.17
profit or loss2. under the inequityvalue of other debt investments                        -8,821,012.88        -6,728,740.34
            3. Amount of financial assets reclassified and included
into other comprehensiveforincome impairment of other debt
investments5. Cash flow hedge reserve                                                      6,966,706.25        13,739,102.50
              6. Difference arising from translation of financial
statements in foreign currency
VI. Total comprehensive income                                                        23,851,827,444.94    28,986,896,629.98

                                                                      178
                                   2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021


 Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi

                                             Cash Flow Statements of Parent Company
                                                        January to December in 2021
 Prepared by: GREE ELECTRIC APPLIANCES, INC. OF
                                                                                                                  Unit: Yuan
ZHUHAI
                                      Item                                     Note   For the Year 2021    For the Year 2020
I. Cash flows from operating activities:
     Cash received from sale of goods or rendering of services                         96,059,533,928.05    93,602,519,755.19
     Refund of tax and levies                                                           2,115,966,444.28     2,108,659,339.52
     Other cash received relating to operating activities                              50,710,080,340.57    35,640,698,959.97
     Subtotal of cash inflows from operating activities                               148,885,580,712.90   131,351,878,054.68
     Cash payments for goods acquired and services received                           116,836,791,145.16    88,931,239,009.32
     Cash paid to and on behalf of employees                                            3,576,725,919.34     3,521,483,800.64
     Payments of all types of taxes                                                     4,278,081,434.78     3,915,413,842.97
     Other cash paid relating to operating activities                                  18,436,681,133.15    18,625,111,285.52
     Subtotal of cash outflows from operating activities                              143,128,279,632.43   114,993,247,938.45
     Net cash flows from operating activities                                           5,757,301,080.47    16,358,630,116.23
II. Cash flows from investing activities:
     Cash received from recovery of investments                                         7,204,261,026.83     1,154,839,757.24
     Cash received from return of investments                                              93,574,837.20     3,616,084,603.45
     Net cash received from disposal of fixed assets, intangible assets and                   668,332.00         2,552,696.74
otherNet cash received from disposal of subsidiaries and other business
units Other cash received relating to investing activities                             44,645,766,820.10     5,376,248,383.05
     Subtotal of cash inflows from investment activities                               51,944,271,016.13    10,149,725,440.48
     Cash paid for purchase and construction of fixed assets, intangible                  791,819,639.99       806,766,396.66
assetsCash paid forlong-term assets                                                    19,474,047,673.02     6,623,118,162.38
      Net cash paid for acquisition of subsidiaries and other business units            1,828,275,113.56       150,000,000.00
     Other cash paid relating to investing activities                                   1,693,811,425.80     8,155,280,838.65
     Subtotal of cash outflows from investment activities                              23,787,953,852.37    15,735,165,397.69
     Net cash flows from investment activities                                         28,156,317,163.76    -5,585,439,957.21
III. Cash flows from financing activities:
     Cash received from absorbing investment
     Cash received from borrowings                                                     63,139,445,175.64    29,395,517,581.94
     Other cash received relating to financing activities                               2,441,352,006.04       878,448,565.19
     Subtotal of cash inflows from financing activities                                65,580,797,181.68    30,273,966,147.13
     Cash repayments of amounts borrowed                                               50,350,925,464.00    24,568,052,850.00
     Cash paid for dividend and profit distribution or interest payment                17,449,330,238.22    13,662,321,384.07
     Other cash paid relating to financing activities                                  28,618,739,788.45    15,508,240,629.89
     Subtotal of cash outflows from financing activities                               96,418,995,490.67    53,738,614,863.96
     Net cash flow from financing activities                                          -30,838,198,308.99   -23,464,648,716.83
IV. Effect of foreign exchange rate changes on cash and cash                             -228,723,815.38      -548,526,629.60
equivalents   in cash and cash equivalents                                              2,846,696,119.86   -13,239,985,187.41
     Add: Beginning balance of cash and cash equivalents                               17,119,780,780.05    30,359,765,967.46
VI. Ending balance of cash and cash equivalents                                        19,966,476,899.91    17,119,780,780.05
 Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




                                                                   179
                                                                                                                                                       2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
                                                                                             Statement of Changes in Shareholders’ Equity of Parent Company
                                                                                                                                     January to December in 2021
  Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI                                                                                                                                                                                                            Unit: Yuan
                                                                                                                                                                                 For the year 2021
                                                                                                     Other equity instruments
                                  Item                                                                                                   Capital                                    Other comprehensive      Special                         Undistributed      Equity total of the
                                                                             Capital stock      Preferred      Perpetual                                 Less: Treasury stock                                           Surplus reserve
                                                                                                                            Others      reserves                                          income             reserve                           profit            shareholders
                                                                                                 stock           bond

 I. Ending balance for the previous year                                   6,015,730,878.00                                           184,850,281.86          5,182,273,853.90            7,763,409,043.86             3,497,114,024.31    68,536,203,624.18        80,815,033,998.31
       Add: Changes in accounting policies
            Early error correction
            Others
 II. Beginning balance for the current year                                6,015,730,878.00                                           184,850,281.86          5,182,273,853.90            7,763,409,043.86             3,497,114,024.31    68,536,203,624.18        80,815,033,998.31
 III. Increase or decrease in the current year (decrease
                                                                           -101,261,838.00                                            -75,229,059.02         14,397,372,379.53            3,899,606,549.92             -1,513,386,916.57    -2,508,115,715.03       -14,695,759,358.23
expressed with “-”)
 (I) Total comprehensive income                                                                                                                                                           4,014,556,367.52                                 19,837,271,077.42         23,851,827,444.94
 (II) Capital invested by shareholders and capital decrease                -101,261,838.00                                            -75,229,059.02         14,397,372,379.53                                         -3,497,114,024.31   -3,717,557,576.88        -21,788,534,877.74
         1. Ordinary stocks invested by shareholders
         2. Capital invested by holders of other equity
         3. Amounts of share-based payments recognized into
                                                                                                                                       31,002,910.71                                                                                                                     31,002,910.71
shareholders' equity
         4. Others                                                         -101,261,838.00                                           -106,231,969.73         14,397,372,379.53                                         -3,497,114,024.31    -3,717,557,576.88       -21,819,537,788.45
 (III) Profit distribution                                                                                                                                                                                              1,983,727,107.74   -18,736,258,602.74       -16,752,531,495.00
         1. Appropriation to surplus reserves                                                                                                                                                                           1,983,727,107.74    -1,983,727,107.74
         2. Allocation to shareholders                                                                                                                                                                                                     -16,752,531,495.00       -16,752,531,495.00
         3. Others
 (IV) Internal carry-over of shareholders' equity                                                                                                                                          -114,949,817.60                                    108,429,387.17             -6,520,430.43
         1. Transfer of capital reserves into capital (or stock capital)
         2. Transfer of surplus reserves into capital (or stock capital)
         3. Surplus reserves for making up losses
         4. Defined benefit plan change carried over into retained
earnings
         5. Other comprehensive income carried forward to retained
                                                                                                                                                                                           -114,949,817.60                                    108,429,387.17             -6,520,430.43
earnings
         6. Others
 (V) Special reserves
         1. Amount withdrawn for the period
         2. Amount used for the period
 (VI) Others
IV. Ending balance for the current year                                    5,914,469,040.00                                           109,621,222.84         19,579,646,233.43           11,663,015,593.78             1,983,727,107.74    66,028,087,909.15        66,119,274,640.08

  Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




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                                                                       Statement of Changes in Shareholders’ Equity of Parent Company (Continued)
                                                                                                                               January to December in 2020
  Prepared by: GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI Unit: Yuan
                                                                                                                                                                           For the Year 2020
                                                                                                 Other equity instruments
                               Item                                                                                                     Capital         Less: Treasury          Other comprehensive      Special                        Undistributed      Equity total of the
                                                                        Capital stock    Preferred          Perpetual                                                                                               Surplus reserve
                                                                                                                            Others     reserves             stock                     income             reserve                          profit            shareholders
                                                                                         stock                bond
 I. Ending balance for the previous year                              6,015,730,878.00                                               179,564,695.55                                   6,462,024,096.41             3,497,114,024.31   53,971,127,295.29        70,125,560,989.56
         Add: Changes in accounting policies
              Early error correction
              Others
 II. Beginning balance for the current year                           6,015,730,878.00                                               179,564,695.55                                   6,462,024,096.41             3,497,114,024.31   53,971,127,295.29        70,125,560,989.56
 III. Increase or decrease in the current year (decrease
                                                                                                                                       5,285,586.31     5,182,273,853.90              1,301,384,947.45                                14,565,076,328.89        10,689,473,008.75
expressed with “-”)
 (I) Total comprehensive income                                                                                                                                                       1,301,384,947.45                                27,685,511,682.53        28,986,896,629.98
 (II) Capital invested by shareholders and capital decrease                                                                            5,285,586.31     5,182,273,853.90                                                                                       -5,176,988,267.59
          1. Ordinary stocks invested by shareholders
          2. Capital invested by holders of other equity
          3. Amounts of share-based payments recognized into
shareholders' equity
          4. Others                                                                                                                    5,285,586.31     5,182,273,853.90                                                                                       -5,176,988,267.59
 (III) Profit distribution                                                                                                                                                                                                            -13,140,423,269.60      -13,140,423,269.60
          1. Appropriation to surplus reserves
          2. Allocation to shareholders                                                                                                                                                                                               -13,140,423,269.60      -13,140,423,269.60
          3. Others
 (IV) Internal carry-over of shareholders' equity                                                                                                                                                                                         19,987,915.96             19,987,915.96
          1. Transfer of capital reserves into capital (or stock
capital)
          2. Transfer of surplus reserves into capital (or stock
capital)
          3. Surplus reserves for making up losses
          4. Defined benefit plan change carried over into retained
earnings
          5. Other comprehensive income carried forward to
                                                                                                                                                                                                                                          19,987,915.96             19,987,915.96
retained earnings
          6. Others
 (V) Special reserves
          1. Amount withdrawn for the period
          2. Amount used for the period
 (VI) Others
 IV. Ending balance for the current year                              6,015,730,878.00                                               184,850,281.86     5,182,273,853.90              7,763,409,043.86             3,497,114,024.31   68,536,203,624.18        80,815,033,998.31

  Legal Representative: Dong Mingzhu Chief Accountant: Liao Jianxiong Head of Accounting Department: Liu Yanzi




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                 GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI

                         Notes Financial Statements for the Year 2021
Ⅰ Basic information of the Company

     Gree Electric Appliances, Inc. of Zhuhai (hereinafter referred to as "the Company") was established in
December 1989, with the unified social credit code 91440400192548256N.
     The registered capital and equity of the Company was RMB 5,914,469,040.00 by the end of December 31, 2021.
For the specific equity, see Note (V) 43 "Equity".

    1.    Registered address, organizational form and address of the Company
     Organizational form of the Company: joint stock limited company
     The Company's registration place and office address: Office 608, No. 108, Huitong Third Road, Hengqin New
Area, Zhuhai City, Guangdong Province.

    2.    Nature of business and main business activities of the Company
     The Company is a manufacturing enterprise mainly engaging in the production and sales of air-conditioners and
their accessories and home appliances and their accessories.

    3.    Names of the parent company and the ultimate parent company
     As of December 31, 2021, the Company had no actual controller.

    4.    Scope of consolidated financial statements of the current period and its change
     As of the end of the report period, there were a total of 156 subsidiaries included in the scope of the consolidated
financial statements. Among them, please see Note VII. 1 "Rights and interests in the subsidiary" for first-level
subsidiaries and Note VI "Changes in the consolidation scope" for the changes in the scope of consolidated financial
statements in this period.

    5.    Approved submitter and approved submission date of the financial report
     This financial report was submitted under approval the Board of Directors of the Company as of April 29, 2022.

Ⅱ Preparation basis of financial statements

    1.   Preparation basis of financial statements
     The Company prepares the financial statements on the basis of a going concern and according to the transactions
and events actually incurred and the disclosure provisions in the Accounting Standards for Business Enterprises -
Basic Standards (promulgated by the Ministry of Finance Order No. 33, revised by the Ministry of Finance Order
No.76) and the specific accounting standards, the Implementation Guide for the Accounting Standards for Business
Enterprises, the Interpretations of the Accounting Standards for Business Enterprises and other applicable regulations
promulgated and revised by the Ministry of Finance on and after February 15, 2006 (collectively referred to as the
"Accounting Standards for Business Enterprises"), as well as the Preparation Rules for Information Disclosure by
Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports (2014 Revision)

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promulgated by China Securities Regulatory Commission ("CSRC"). According to the relevant provisions of the
Enterprise Accounting Standards, the Company's accounting is based on the accrual basis. Except for certain
financial instruments, the financial statements are measured on the basis of historical cost. If an asset is impaired, the
corresponding impairment provision shall be made in accordance with relevant regulations.
     According to the relevant provisions of the Enterprise Accounting Standards, the Company's accounting is based
on the accrual basis. Except for certain financial instruments, the financial statements are measured on the basis of
historical cost. If an asset is impaired, the corresponding impairment provision shall be made in accordance with
relevant regulations.

     2.   Going concern
     This financial statement was presented on a going concern basis. The management carefully evaluated factors of
the Company in the future 12 months commencing from December 31, 2021 such as the macropolicy risk, market
operation risk, current and long-term profitability and solvency of the enterprise, financial flexibility, and the
management's intention of changing the operation policy, and held that there was no event that can generate
significant influence on the Company's ability to continue as a going concern.

Ⅲ Major accounting policies and accounting estimates

     Specific accounting policies and accounting estimate suggestions:
     The Company and each subsidiary are mainly engaged in production and sales of air-conditioners and their
accessories, and domestic appliances and their accessories. The Company has prepared several specific accounting
policies and accounting estimates for transactions and events such as revenue recognition based on the actual
production management characteristics and in accordance with provisions of the related Accounting Standards for
Business Enterprises. For details, see the detailed description in Note III herein.

1.   Statements regarding observance of the Accounting Standards for Business Enterprises
     The financial statements prepared by the Company conform to the requirements of the Accounting Standards for
Business Enterprises and give a true and complete view of the financial position of the Company on December 31,
2021, and the related information such as operating results and cash flows in the year 2021. Besides, the financial
statements prepared by the Company, in all the major aspects, also conform to the disclosure requirements of
financial statements and their notes in the Preparation Rules for Information Disclosure by Companies Offering
Securities to the Public No. 15 - General Provisions on Financial Reports revised by the China Securities Regulatory
Commission in 2014.

2.   Accounting period
     Accounting period of the Company includes one year and interim periods. An interim period covers six-month, a
quarter and a month. The accounting year of the Company commences on January 1 and ends on December 31 of
each year.

3.   Operating cycle
     The normal operating cycle refers to the period from the Company's purchase of assets used for processing to
achieving of cash or cash equivalent. The Company regards 12 months as one operating cycle and uses it as the
liquidity classification standard for assets and liabilities.
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4.   Functional currency

     RMB is the functional currency used by the Company. Some subsidiaries of the Company adopt currencies other
than Renminbi as the functional currency.

5.   Accounting treatment of business combination involving enterprises under common control and business
combination not involving enterprises under common control
     Business combination refers to the transaction or event of combining two or more independent enterprises to
form a reporting entity. Business combination is classified into business combination involving enterprises under
common control and business combination not involving enterprises under common control.

     (1) Business combination under common control

     A business combination under common control is a business combination in which the enterprises participating
in the combination are ultimately controlled by the same party or parties before and after the combination, and the
control is not temporary. For business combination involving enterprises under common control, the party that
obtains the right to control other enterprises participating in the combination on the combination date is the
combining party, and other enterprises participating in the combination are the combined party. The combination date
refers to the date on which the combining party actually obtains the right to control the combined party.
     Where business combination involving enterprises under common control arises from one transaction or equities
of invested entities under common control are obtained step by step through multiple transactions and these
transactions belong to a package deal, the Company will recognize the cost of combination according to the share of
carrying amount of net assets obtained for the combined party in the ultimate controlling party's consolidated
financial statements on the combination date. The difference between the carrying amount of the consideration paid
for the combination (or total par value of the issued stocks) and the combination cost is adjusted to capital reserve; if
the capital reserve is not sufficient to absorb the difference, any excess is adjusted against retained earnings.
     Costs incurred that are attributable to the business combination made by the Company, including intermediary
costs such as the audit fee, legal service charge and appraisal and consultation costs, and other related overhead
expenses are charged to profits or losses in the period in which they are incurred; the transaction expenses directly
attributable to the consideration paid for the combination through issuance of equity instruments are credited against
the capital reserve; if the capital reserve is not sufficient, any excess is adjusted against retained earnings; the
transaction expenses directly attributable to the consideration paid for the combination through issuance of debt
instruments are recorded into the initially recognized amount of debt instruments. Where the equities of invested
entities under common control are obtained step by step through multiple transactions to achieve business
combination but these transactions do not belong to a package deal, the Company will recognize the cost of
combination according to the share of carrying amount of net assets to be enjoyed by the combined party after the
combination in the ultimate controlling party's consolidated financial statements on the combination date. The
difference between the combination cost and the sum of the carrying amount of long-term equity investments prior to
the combination plus the carrying amount of the consideration newly paid for further acquisition of shares on the date
of combination is adjusted to capital reserve (capital premium or capital stock premium); if the capital reserve is not
sufficient to absorb the difference, any excess is adjusted against retained earnings. For the equity investment held
before the date of combination, accounting treatment is not performed temporarily for other comprehensive incomes

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that are accounted using the equity method or recognized using financial instruments and accounted according to the
measurement standard for recognition. When this investment is disposed of, accounting treatment is conducted using
the basis the same as that used by the invested entity to directly dispose of relevant assets or liabilities. For other
changes in owners' equities other than the net profits/losses, other comprehensive income and profit distribution in
net assets of the invested entity that are recognized because of accounting using the equity method, accounting
treatment is not conducted temporarily; they shall be transferred to the profits and losses of the current period at the
time of disposing of this investment.

     (2) Business combination not under common control

     A business combination not involving enterprises under common control is a business combination in which all
of combining enterprises are not ultimately controlled by the same party or parties both before and after the
combination. For business combination not involving enterprises under common control, the party that obtains the
right to control other enterprises participating in the combination on the date of combination is the acquiring party,
and other enterprises participating in the combination are the acquired party. The date of acquisition refers to the date
on which the acquiring party actually obtains the right to control the acquired party.
     For the business combination implemented through one transaction, the cost of business combination refers to
the fair value of assets paid, liabilities incurred or assumed and equity securities issued by the Company on the date
of acquisition for obtaining the right to control the acquired party. On the date of acquisition, the assets, liabilities and
contingent liabilities obtained by the Company from the acquired party are recognized at the fair value.
     For a business combination realized by two or more transactions of exchange, the accounting treatment for the
combination costs shall be made by distinguishing individual financial statements and consolidated financial
statements:
     In the individual financial statements, where the held stocks are accounted using the equity method prior to the
date of acquisition, the cost of combination of the investment is the aggregate of the carrying amount of the equity
investment of the acquired party held before the date of acquisition and the investment cost newly increased on the
date of acquisition. For other related comprehensive income, accounting treatment is performed during disposal of the
investment using the basis the same as that used by the invested entity to directly dispose of relevant assets or
liabilities; the owner's equity that is recognized due to other changes in owners' equities other than the net
profits/losses, other comprehensive income and profit distribution of the invested entity is accordingly transferred to
the profits and losses of the current period at the time of disposing of this investment. Where the equity investment
held before the date of acquisition is recognized using financial instruments and undergoes accounting treatment
according to the measurement standard, the cost of combination of the investment is the aggregate of the fair value of
the equity investment recognized according to this standard and the newly increased investment cost. The difference
between the fair value of the originally held stocks and the carrying amount and all the cumulative fair value changes
originally recorded into other comprehensive income are transferred to the investment income of the current period.
     In the consolidated financial statements, the stocks of the acquired party held before the date of acquisition shall
be remeasured based on the fair value of such stocks on the date of acquisition, and the difference between their fair
value and carrying amount shall be charged to the investment income of the current period; where the stocks of the
acquired party held before the date of acquisition involve other comprehensive income under accounting of the equity
method and other changes in owners' equities other than the net profits/losses, other comprehensive income and profit

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                                  2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021
distribution, other comprehensive income and other changes in owners' equities concerned with them shall be
transferred to the investment income in the period in which the date of acquisition is included (excluding other
comprehensive income arising from changes in the net assets or net liabilities of the benefit plan remeasured and
redefined by the invested entity). The summation of the fair value of the stocks of the acquired party held before the
date of acquisition on the date of acquisition and newly increased investment costs on the date of acquisition shall be
the combination cost of the investment.
     Costs incurred that are attributable to the business combination made by the Company, including intermediary
costs such as the audit fee, legal service charge, and appraisal and consultation costs, and other related overhead
expenses are charged to profits or losses in the period in which they are incurred. The transaction expenses directly
attributable to the consideration paid for the combination through issuance of equity instruments are credited against
the capital reserve; if the capital reserve is not sufficient, any excess is adjusted against retained earnings; the
transaction expenses directly attributable to the consideration paid for the combination through issuance of debt
instruments are recorded into the initially recognized amount of debt instruments.
     In the Company, the positive balance between the business combination cost and the fair value of the
identifiable net assets obtained by the Company from the acquired party shall be recognized as goodwill and
subsequently measured after the accumulated provision for impairment is deducted from the cost; the negative
balance between the business combination cost and the fair value of the identifiable net assets obtained by the
Company from the acquired party shall be charged to profits or losses of the current period after being checked.

     (3) Principle of judging whether multiple transactions are "a package deal"

     When the terms and conditions of multiple transactions and the economic impact thereof accord with one or
more of the following cases, usually it indicates that these transactions shall undergo accounting treatment as "a
package deal":
          1) These transactions are concluded at the same time or concluded in consideration of mutual influence;
          2) Only the whole of these transactions can achieve a complete business result;
          3) Occurrence of one transaction depends on occurrence of at least one of the other transactions;
          4) One transaction is not economical when considered separately, but economical when taken into account
     together with other transactions.

6.   Preparation of consolidated financial statements

     (1) Principles for determining the scope of consolidated financial statements

     The consolidation scope of consolidated financial statements shall be determined on the basis of control. Control
means that the Company owns the power to the invested entity, enjoys variable return by participating relevant
activities of the invested entity, and has the capacity of using the power to the invested entity to affect its return
amount.

     (2) Preparation of consolidated financial statements

     The consolidated financial statements of the Company are prepared by the Company based on individual
financial statements of the Company and subsidiaries and according to other relevant data. During preparation of
consolidated financial statements, the accounting policy and accounting period of the Company shall be consistent

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with those of subsidiaries, and the inter-company major transactions and balances shall be offset.
     For the subsidiary added due to business combination involving enterprises under common control in the Report
Period, the Company adjusts the amount at the beginning of the period in the consolidated balance sheet, incorporates
the revenue, expense and profit of this subsidiary from the beginning of the period for consolidation to the end of the
report period into the consolidated profit statement, includes its cash flow into the consolidated cash flow statement,
and adjusts relevant items in the comparative statements; for the subsidiary added due to business combination not
involving enterprises under common control, the Company does not adjust the amount at the beginning of the period
in the consolidated balance sheet, but only incorporates the revenue, expense and profit of this subsidiary from the
date of acquisition to the end of report period into the consolidated profit statement and its cash flow into the
consolidated cash flow statement.
     The portion of owners' equity of the subsidiaries that isn't attributable to the Company shall be separately
presented as the minority shareholders' equity under the owners' equity in the consolidated balance sheet. The share
of comprehensive income of the subsidiaries in the current period that is attributable to the minority shareholders'
equity shall be presented as the item of "Total comprehensive income attributable to minority shareholders" under the
total comprehensive income in the consolidated profit statement. The share of comprehensive income of the
subsidiaries in the current period that is attributable to the minority shareholders' equity shall be presented as the item
of "Total comprehensive income attributable to minority shareholders" under the total comprehensive income in the
consolidated profit statement. Where the losses of a subsidiary undertaken by minority shareholders exceed the share
enjoyed by minority shareholders in the owners' equities of this subsidiary at the beginning of the period, the balance
shall be still adjusted against the minority shareholders' equity.
     For acquisition of the subsidiary's stocks owned by minority shareholders thereof, in the consolidated financial
statements, the difference between the long-term equity investment newly obtained because of acquisition of minority
shareholders' stocks and the share of net assets of the subsidiary to be enjoyed and continuously calculated according
to the proportion of newly added shares from the acquisition date or consolidation date is adjusted to capital reserve;
if the capital reserve is not sufficient to absorb the difference, any excess is adjusted against retained earnings.
     For the transaction for which a part of equity investment is disposed of but the right to control this subsidiary is
not lost, in the consolidated financial statements, the difference between the disposal price and the share of net assets
of the subsidiary to be enjoyed accordingly for disposal of the long-term equity investment and continuously
calculated from the acquisition date or consolidation date is adjusted to capital reserve (capital premium or capital
stock premium); if the capital reserve is not sufficient to absorb the difference, any excess is adjusted against retained
earnings.
     Where the right to control the original subsidiary is lost due to disposal of a part of equity investment or other
reasons, the remaining stocks shall be remeasured at their fair value on the date of losing the control right; the result
of the sum of the consideration obtained from the equity disposal plus the fair value of remaining stocks, minus the
share of net assets of the original subsidiary that should be enjoyed and is continuously calculated according to the
original proportion of held shares from the acquisition date, shall be charged to the investment income in the period
when the control right is lost, and adjusted against the goodwill at the same time; other comprehensive income related
to the original subsidiary's equity investment shall be transferred to the investment income of the current period when
the control right is lost.
     Where the equity investment for a subsidiary is disposed of step by step through multiple transactions till the
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control right is lost and all the transactions belong to a package deal, accounting treatment shall be performed for the
transactions by deeming all the transactions as one item for disposing of the subsidiary and losing the control right;
however, prior to loss of the control right, the difference between every disposal price and the share of net assets of
this subsidiary to be enjoyed accordingly for investment disposal shall be recognized as other comprehensive income
in the consolidated financial statements and, at the time of losing the control right, be jointly transferred to the profits
or losses in the period when the control right is lost.
     Where the equity investment for a subsidiary is disposed of step by step through multiple transactions till the
control right is lost and the transactions do not belong to a package deal, all the transactions before loss of the right to
control the subsidiary shall be handled according to the regulations of the Company on partial disposal of the
subsidiary's long-term equity investment provided that the Company does not lose the right to control the subsidiary.
     This report period does not involve buying-in and selling-out of the same subsidiary's stocks, or selling-out and
buying-in turn.

7.   Classification of joint arrangements and accounting treatment of co-management

     Joint arrangement refers to the arrangement for joint control by two or more participants.

     (1) Joint arrangement classification

     Joint arrangement is classified into co-management and joint venture. Co-management refers to the joint
arrangement where the parties to the venture enjoy relevant assets of this arrangement and assume relevant liabilities
of this arrangement. Joint venture refers to the joint arrangement where the parties to the venture only enjoy rights to
net assets of this arrangement.

     (2) Accounting treatment of co-management

     1) The Company recognizes the following items related to quantum of interest in co-management and performs
accounting treatment in accordance with provisions of the corresponding Accounting Standards for Business
Enterprises:

     a. Independently held assets, as well as the jointly held assets to be recognized according to the share of the
Company;

     b. Independently undertaken liabilities, as well as the jointly undertaken liabilities to be recognized according to
the share of the Company;

     c. Revenue generated by selling the output share of co-management that is enjoyed by the Company;

     d. Revenue that is generated by selling the output during co-management and recognized according to the share
of the Company;

     e. Independently incurred expense, as well as the expense incurred by co-management and recognized according
to the share of the Company.

          2) Where the Company puts assets into or sells assets to the parties to co-management (except that the assets
     constitute business), before the said assets are sold to a third party by the parties to co-management, the
     Company recognizes only the part in the profits or losses arising from this transaction that is attributable to other
     participants in the co-management. In case that the put or sold assets involve the asset impairment loss
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     complying with provisions in the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets,
     the Company shall recognize the said loss in full.
          3) Where the Company purchases assets from the parties to co-management (except that the assets
     constitute business), before said assets are sold to a third party, the Company recognizes only the part in the
     profits or losses arising from this transaction that is attributable to other participants in the co-management. In
     case that the purchased assets involve the asset impairment loss complying with provisions in the Accounting
     Standards for Business Enterprises No. 8 - Impairment of Assets, the Company shall recognize this part of loss
     according to the share to undertake.

8.   Criteria for cash and cash equivalents
     The cash refers to the enterprise's money on hand and deposits for payment at any time. Cash equivalents refer
to investments held by the enterprise which are short in term (generally referring to those expiring within not more
than 3 months from the date of acquisition), high in liquidity, convertible to the known amount of cash and
insignificant in risk of change of value.

9.   Foreign currency transactions and translation of financial statements in foreign currency

     (1) Method of translation for foreign currency transactions

     At the time of initial recognition of a foreign currency transaction of the Company, the amount in the foreign
currency shall be translated into the amount in RMB currency at the spot exchange rate of the transaction date
(generally referring to the medial rate of foreign exchange quotation published by the People's Bank of China at the
date of transaction, the same below).

     (2) Treatment of monetary items of foreign currencies and non-monetary items of foreign currencies on the
     balance sheet date

     For the monetary items of foreign currencies, the translation is done according to spot rate of the balance sheet
date. The exchange difference generated from the difference of spot rate of the current balance sheet date and the
time of initial recognition of a foreign currency or the previous balance sheet date is charged to the profit or loss of
the current period except that the exchange difference generated from foreign currency borrowings relating to assets
of which the acquisition or production satisfies the capitalization conditions is capitalized in accordance with the
Accounting Standards for Business Enterprises No. 17 - Borrowing Costs. For the non-monetary items of foreign
currencies measured by historical cost, translation is done according to spot rate of the transaction date without
change in their amount in functional currency. Non-monetary items of foreign currencies such as stocks and funds
measured at their fair value are translated as per the spot rate on the date when their fair value is confirmed. The
differences between the translated amounts in functional currency and the original amounts in functional currency are
recorded into current profits and losses as fluctuation in fair value (including fluctuation in exchange rates).

     (3) Translation of foreign currency financial statements

     The Company translates the financial statements expressed in foreign currency into ones expressed in RMB
currency according to the following provisions.
     The assets and liabilities in the balance sheet shall be converted at the spot exchange rate on the balance sheet
date, except for the "undistributed profit" item, other items of owners' equity are converted at the spot exchange rate
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at the time of occurrence. The asset and liability items in the balance sheets shall be translated at an average exchange
rate. The balance arisen from the translation of foreign currency financial statements in compliance with the aforesaid
method shall be presented separately under the owners' equity item of the balance sheets. The foreign currency cash
flow statement shall be translated at the average exchange rate on the cash flow date. The amount of influence of the
exchange rate change on cashes shall be presented separately under the adjusted item in the cash flow statement.

    10. Financial instruments
     A financial asset or financial liability can be recognized when the Company becomes one party of financial
instrument contract.

     (1) Classification, recognition, and measurement of financial assets

     According to the business mode for management of the financial assets and the characteristics of the contractual
cash flows of the financial assets, the Company classifies the financial assets into those measured at amortized cost,
those measured at fair value with changes included in the comprehensive income, and those measured at fair value
with changes included in the current profits and losses.
     The financial assets initially recognized by the Company shall be measured at their fair values. For the financial
assets which are measured at their fair values and of which the changes are included into the current profits and losses,
the transaction expenses thereof are directly included into the current profits and losses; for other categories of
financial assets, the transaction expenses thereof are included into the initially recognized amount. For the accounts
receivable or notes receivable arising from the sale of products or the provision of services that do not contain or do
not consider significant financing components, the Company shall use the amount of consideration expected to be
entitled to be charged as the initial confirmation amount.
     1) Financial assets measured at amortization costs
     The Company's business model for managing financial assets measured at amortization cost is to collect
contractual cash flows, and the contractual cash flow characteristics of such financial assets are consistent with basic
borrowing arrangements, that is, cash flows generated on a specific date, are for the payment of principal and interest
based on the outstanding principal amount. The Company adopts the effective interest rate method for such financial
assets and performs subsequent measurement based on amortization cost. The gains or losses arising from their
amortization or impairment are included into the current profits and losses.
         2) Financial assets measured at fair value with changes included in other comprehensive income
     GDG's business model for managing such financial assets aims at collection of contractual cash flows and sales,
and the contractual cash flow characteristics of such financial assets are consistent with the basic lending
arrangements. The Company measures such financial assets at fair value and includes the changes of fair value are
included in other comprehensive income, but impairment losses or gains, exchange gains and losses and interest
income calculated according to the actual interest rate method are included into the current profits and losses.
     In addition, the Company designates some non-trading equity instrument investments as financial assets which
are measured at their fair values and of which the changes are included into other comprehensive income. The
Company includes the relevant dividend income of such financial assets into the current profits and losses, and
includes the changes of fair value in other comprehensive income. When the financial assets are derecognized, the
cumulative gains or losses previously included into other comprehensive income will be transferred from other
comprehensive income to retained income, but will not be included into the current profits and losses.
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          3) Financial assets which are measured at their fair values and of which the changes are included into other
    comprehensive income
     The Company classifies the financial assets other than the above financial assets measured at amortization cost
and financial assets which are measured at their fair values and of which the changes are included into other
comprehensive income as financial assets which are measured at their fair values and of which the changes are
included into the current profits and losses. In addition, in the initial recognition, in order to eliminate or significantly
reduce the accounting mismatch, the Company designates some financial assets as financial assets which are
measured at fair value and of which the changes are included into the current profits and losses. For such financial
assets, the Company uses fair value for subsequent measurement, and the changes of fair value are included in the
current profits and losses.

     (2) Classification, recognition, and measurement of financial liabilities

     Financial liabilities are initially classified as financial liabilities which are measured at fair value and of which
the changes are included in the current profits or losses and other financial liabilities. For the financial liabilities
which are measured at their fair values and of which the changes are included into the current profits and losses, the
transaction expenses thereof are directly included into the current profits and losses; for other financial liabilities, the
transaction expenses thereof are included into the initially recognized amount.
     1) Financial liabilities measured at their fair values and of which the changes are recorded into the current profits
          and losses
     Financial liabilities which are measured at fair value and of which the changes are included in the current profits
or losses include trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities
designated as those which are measured at fair value at the initial recognition and of which changes are included in
the current profits or losses.
     Trading financial liabilities (including derivatives that are financial liabilities) are subsequently measured at fair
value. Except for hedge accounting, the changes in fair value are included in current profits or losses.
     For financial liabilities designated as those which are measured at fair value at the initial recognition and of
which changes are included in the current profits or losses, the changes of fair value caused by changes in the
Company's own credit risk are included in other comprehensive income, and when the recognition of the liabilities is
terminated, the cumulative changes in fair value caused by changes in own credit risk included in other
comprehensive income are transferred to retained earnings. Other changes in fair value are included in current profits
or losses. If the accounting mismatch in profits and losses may be caused or expanded as the effects of changes in the
own credit risk of such financial liabilities are processed in the above manner, the Company will include all gains or
losses of such financial liabilities (including the amount affected by changes in the Company's own credit risk)
included in the current profit and loss.
          2) Other financial liabilities
     Except for the transfer of financial assets that does not meet the conditions for derecognition or continued
involvement in the financial liabilities and financial guarantee contracts formed by the transferred financial assets,
other financial liabilities are classified as financial liabilities measured at amortization cost, which are subsequently
measured at amortization cost. Gains or losses arising from derecognition or amortization are included in the current
profits and losses.

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     (3) Basis for the recognition and method for the measurement of financial assets

     Financial assets that meet one of the following conditions shall be derecognized:
     1) The contract right to receive the cash flow of the financial assets is terminated;
     2) The financial assets have been transferred, and almost all the risks and rewards of ownership of the financial
assets are transferred to the transferring party;
     3) The financial assets have been transferred, although the enterprise has neither transferred nor retained almost
all the risks and rewards of the ownership of the financial assets, it has given up control over the financial assets.
     If the enterprise has neither transferred nor retained almost all the risks and rewards of the ownership of the
financial assets, and has not given up control over the financial assets, the relevant financial assets shall be
recognized according to the extent of continued involvement in the transferred financial assets, and the relevant
liabilities shall be recognized accordingly. The extent of continued involvement in the transferred financial assets
refers to the level of risk that the changes in the value of the financial assets expose the enterprise to.
     If the overall transfer of financial assets meets the conditions for derecognition, the difference between the book
value of the transferred financial assets and the sum of the consideration received due to the transfer and the
cumulative amount of changes in fair value originally included in other comprehensive income is included in the
current profits and losses.
     If the partial transfer of financial assets satisfies the conditions for derecognition, the book value of the
transferred financial assets will be apportioned between the portion derecognized and the portion not derecognized
according to their relative fair values, and the difference between the sum of the consideration received for the
transfer and the amount of cumulative changes in the fair value which was previously directly recognized in owner's
equity and which should be apportioned to the portion derecognized and the above book amount apportioned will be
included in the current profits and losses.
     The Company must determine whether almost all the risks and rewards of ownership of the financial assets have
been transferred before endorsing the transfer of financial assets sold by means of recourse and financial assets held.
If almost all the risks and rewards of ownership of the financial asset have been transferred to the transferee, the
financial asset will be derecognized; if the risks and rewards of the ownership of the financial asset have been
retained, the financial asset will not be derecognized; if almost all the risks and rewards of ownership of the financial
asset have not been transferred or retained, the enterprise needs to continue to determine whether it retains control
over the asset and performs accounting treatment in accordance with the principles described in the preceding
paragraphs.

     (4) Derecognition of financial liabilities

     If the present obligation for a financial liability has been fully or partially discharged, the financial liability or
the relevant portion thereof will be derecognized. If the Company (borrower) signs an agreement with the lender to
replace the original financial liability by assuming a new financial liability, and the contract terms of the new
financial liability and the original financial liability are substantially different, the original financial liability will be
derecognized and the new financial liability will be recognized at the same time. If a material amendment is made to
the contractual terms for the original financial liability or the relevant portion thereof, the original financial liability
will be derecognized, and the new financial liability will be recognized according to the amended terms at the same
time.
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     If the financial liability or the relevant portion thereof is derecognized, the difference between the book value of
the financial liability derecognized and the consideration paid for it (including the non-cash asset transferred or the
liability assumed) will be included in the current profits or losses.

     (5) Offsetting financial assets with financial liabilities

     When the Company has the legal right to offset the financial asset and the financial liability with recognized
amount, and such legal rights are currently enforceable, and the Company plans to settle in net or simultaneously
realize the financial asset and liquidate the financial liability, the financial asset and the financial liability will be
presented in the balance sheet in net amounts after mutual offset. In addition, financial assets and financial liabilities
are presented separately in the balance sheet, and are not offset against each other.

     (6) Method for determining the fair value of financial assets and financial liabilities

     Fair value refers to the price that a market participant can receive for the sale of an asset or need to pay for the
transfer of a liability in the orderly transaction that occurs on the measurement date. For financial instruments for
which there is an active market, the fair value thereof will be determined by the Company based on the quotation in
the active market. Quotation in the active market refers to the price that is easily obtained from exchanges, brokers,
industry associations, pricing service agencies, etc. on a regular basis, and represents the price of market transactions
that actually occur in fair trading. For financial instruments for which there is no active market, the fair value thereof
will be determined by the Company using the valuation techniques. The value appraisal techniques include the prices
adopted by the parties, who are familiar with the condition, in the latest market transaction upon their own free will,
the current fair value obtained by referring to other financial instruments of the same essential nature, the cash flow
capitalization method and the option pricing model, etc. At the time of valuation, the Company adopts a valuation
technique that is applicable in the current circumstances and that there is sufficient available data and other
information to support, selects the input values consistent with the asset or liability characteristics considered by the
market participants in the transaction of the underlying asset or liability, and as far as possible uses relevant
observable input values. Unobservable input values are used where the relevant observable input values are not
available or are not practicable.

     (7) Equity instruments

     Equity instruments refer to contracts that can prove ownership of the residual equity in assets of the Company
after deduction of all the liabilities. The Company treats issue (including refinancing), repurchases, sale or
cancellation of equity instruments as changes in equity, and transaction expenses related to equity transactions are
deducted from equity. The Company does not recognize changes in the fair value of equity instruments.
     If the Company's equity instruments distribute dividends (including "interest" generated by instruments
classified as equity instruments) during the existence period, such dividends will be treated as profit distribution.

    11. Impairment of financial assets
     Financial assets of which the Company needs to recognize impairment losses include financial assets measured
at amortization cost, and debt instrument investments which are measured at fair value and of which changes
included in other comprehensive income, mainly including receivables financing, accounts receivable, contract assets,
other receivables, loans and advances, debt investment, other debt investment, long-term receivables, etc.

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     (1) Recognition methods of provision for impairment

     Based on the expected credit loss, the Company makes impairment provision and recognizes credit impairment
loss according to the applicable expected credit loss measurement method (general method or simplified method) for
the above items.
     Credit loss refers to the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the
original effective interest rate. Among them, for purchased or originated credit-impaired financial assets, the
Company discounts the difference at the credit-adjusted effective interest rate of the financial assets.
     The general method for measuring expected credit losses is that the Company assesses on each balance sheet
date whether the credit risk of financial assets has increased significantly since initial recognition. If the credit risk
has increased significantly since initial recognition, the Company measures the loss provisions according to the
amount equal to lifetime expected credit losses. If the credit risk has not increased significantly since initial
recognition, the Company measures the loss provisions according to the amount equal to 12-month expected credit
losses. The Company considers all reasonable and valid information, including forward-looking information, when
assessing expected credit losses.
     For financial instruments with lower credit risk on the balance sheet date, the Company assumes that their credit
risk has not increased significantly since initial recognition.

     (2) Judgment standards for whether the credit risks have increased significantly since the initial recognition

     If the probability of default of a financial asset in the expected lifetime determined on the balance sheet date is
significantly higher than the probability of default in the expected lifetime determined at the time of initial
recognition, it indicates that the credit risk of the financial asset has increased significantly. Except for special
circumstances, the Company uses the change in default risk that occurs within the next 12 months as a reasonable
estimate of the change in default risk that occurs throughout the lifetime to determine whether the credit risk has
increased significantly since initial recognition.

     (3) Assessment methods of the expected credit risks based on combinations

     The Company assesses the credit risks of the financial assets with significantly different credit risks respectively,
such as accounts receivable from disputes with the other party or litigation and arbitration, and receivables with
obvious signs indicating that the debtor is likely to be unable to fulfill the repayment obligation, etc.
     In addition to the financial assets whose credit risks are assessed respectively, the Company divides the financial
assets into different groups based on their common risk characteristics, and assesses the credit risks on the basis of
combinations.

     (4) Accounting treatment methods of financial assets impairment

     At the end of the period, the Company calculates the estimated credit losses of various financial assets. If the
estimated credit losses are greater than the book value of the current impairment provisions, the difference is
recognized as an impairment loss; If the estimated credit losses are smaller than the book value of the current
impairment provisions, the difference is recognized as an impairment gain.

     (5) Recognition methods of the credit losses of all kinds of financial assets

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         1) Notes receivable and receivables financing
     For notes receivable and receivables financing, the company measures the loss reserves according to the amount
of the expected credit losses during the whole duration. Based on the credit risk characteristics of notes receivable
and receivables financing, financial assets are divided into different combinations:

              Item                                                 Basis for recognition of combinations

Banker's acceptance bill           The acceptor is a bank institution or a financial company

Trade acceptance draft             The acceptor is a company other than a bank institution or financial company

          2) Accounts receivable and contract assets
     For accounts receivable and contract assets that do not contain significant financing components and contain
significant financing components, the Company measures the loss provision based on the lifetime expected credit loss
amount. Expected credit losses related to contract assets are included in asset impairment losses.
     In addition to accounts receivable of which credit risk is individually assessed, the Company divides accounts
receivable into different combinations based on their credit risk characteristics:

            Item                                                  Basis for recognition of combinations
Combination 1: Account age
                                 The combination takes the account age of accounts receivable as the basis for the combination
combination
Combination 2: Low risk          The combination takes the dismantling subsidy of waste electrical and electronic products receivable
combination                      from government departments and new energy vehicle subsidies as the basis for the combination
Combination 3: None risk         The combination takes the receivables from related units within the scope of consolidation as the basis
combination                      for the combination
          3) Disbursement of loans statements and advances
     Based on the internal assessment results of the credit risk management system of the relevant financial
instruments, the Company defines whether credit impairment has occurred: the Company calculates the expected
credit loss of the financial assets at the expected credit loss rate of different categories, according to the five-level
classification of the financial industry (normal, concerned, secondary, suspicious and loss) based on the borrower's
actual repayment ability.
          4) Other receivables
     The Company measures impairment losses using an amount equivalent to 12-month or lifetime expected credit
losses, based on whether the credit risk of other receivables has increased significantly since initial recognition. In
addition to other receivables of which credit risk is individually assessed, the Company divides other receivables into
different combinations based on their credit risk characteristics:

               Item                                                  Basis for recognition of combinations
Combination    1:     Account   age
                                       The combination takes the account age of other receivables as the basis for the combination
combination
Combination     2:       Low    risk
                                       The combination takes the receivable government grain deposits as the basis for the combination
combination
Combination     3:     None     risk   The combination takes the receivables from related units within the scope of consolidation as the
combination                            basis for the combination
          5) Debt investment
     Debt investment mainly accounts for bond investment measured at amortization cost. The Company measures
impairment losses using an amount equivalent to 12-month or lifetime expected credit losses, based on whether the
credit risk of other debt investments has increased significantly since initial recognition.
          6) Other debt investments
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     Other debt investments mainly accounts for the debt instrument investments which are measured at their fair
values and of which the changes are included into other comprehensive income. The Company measures impairment
losses using an amount equivalent to 12-month or lifetime expected credit losses, based on whether the credit risk of
other debt investments has increased significantly since initial recognition.
         7) Long-term receivables
     The Company's long-term receivables are incomes from the sales of goods collected in installments. The
company measures the loss reserves according to the amount of the expected credit losses during the whole duration.

    12. Receivable financing
     For notes receivable and accounts receivable classified as measured at fair value and of which changes are
included in other comprehensive income, the portion within one year (including one year) from the date of
acquisition is presented as receivables financing; while the portion beyond one year is presented as other debt
investment. For related accounting policies, please refer to Note III. 10 "Financial Instruments" and Note III. 11
"Impairment of Financial Assets".

    13. Inventory

     (1) Inventory classification

     The Company's inventories mainly include raw materials, work in progress and contract performance costs,
finished products, development costs, and development products.
     Development cost refers to the property that has not been completed and is for sale; the Company accounts for
the land use rights purchased and used for commercial housing development as the development cost. Development
product refers to the property that has been completed and is to be sold.

     (2) Valuation for delivered inventories

     Valuation for delivered inventories: When various kinds of inventories of the Company are delivered, they shall
be valuated at planned costs, and the planned costs shall be adjusted into actual costs based on the difference of costs
of the current month at the end of the month.
     Development cost and product development cost include land transfer fees, infrastructure expenditures,
construction and installation engineering expenditures, borrowing costs incurred before the development project is
completed, and other related costs incurred in the development process. When developing product is carried forward
the cost, the total cost is allocated between the sold and unsold properties in proportion to the construction area.

     (3) Recognition of the net realizable value and measurement of provision for decline in value of inventories

     At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost of
inventories is higher than the net realizable value, a provision for decline in value of inventories shall be made and
shall be recorded into the profits and losses of the current period, where a provision for decline in value of inventories
has been made, if the value of the said inventories is resumed later, the said value shall be reversed from the provision
for decline in value of the inventories. Net realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and the estimated costs necessary to make the sale and relevant taxes.

     (4) Stock count system for inventories

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     The Company's inventory adopts the perpetual inventory system.

     (5) Amortization methods of low-value consumables and packaging materials

     Low-value consumables and packaging materials are written off in full when issued for use.

    14. Contract assets
     The Company presented the right to collect payments from customers which the customers have not yet paid the
contract consideration, but the Company has fulfilled its performance obligations in accordance with the contract, and
which is not unconditional (that is, only depending on the passage of time) as contract assets in the balance sheet.
Contract assets and contract liabilities under the same contract are presented in net amount, and contract assets and
contract liabilities under different contracts are not offset.
     For the determination and accounting treatment of expected credit losses of contract assets, please refer to Note
III. 11 "Impairment of Financial Assets".

    15. Contract costs

     (1) Determination of asset amount related to contract costs

     The Company's asset related to contract costs includes contract acquisition cost and contract obtain cost.
     If the incremental cost incurred by the Company to obtain the contract is expected to be recovered, it will be
recognized as an asset as contract acquisition cost. However, if the amortization period of the asset does not exceed
one year, it will be included in current profits or losses when it occurs.
     If the cost incurred by the Company for the performance of the contract does not fall within the scope specified
in the accounting standards for business enterprises other than the Accounting Standards for Business Enterprises No.
14 - Revenues (Revised in 2017), it shall be recognized as an asset as the contract performance cost when the
following conditions are met simultaneously: ① the cost is directly related to a current or expected contract,
including direct labor cost, direct material cost, manufacturing expense (or similar expense), cost clearly borne by the
customer, and other costs incurred only due to the contract; ② the cost increases the Company's future resources for
fulfilling its performance obligations; and ③ the cost is expected to be recovered.

     (2) Amortization of assets related to contract costs

     The Company’s assets related to contract costs are amortized on the same basis as the recognition of goods
income related to the asset and included in the current profit and loss.

     (3) Impairment of assets related to contract costs

     When recognizing the impairment loss of assets related to the contract cost, the Company shall first recognize
the impairment loss of other assets related to the contract and recognized in accordance with other relevant corporate
accounting standards; then, based on the fact that the book value is higher than the difference between the residual
consideration expected to be obtained by the Company due to the transfer of the goods related to the asset and the
estimated cost to be incurred for the transfer of the relevant goods, the excess part shall be withdrawn for impairment
provision and recognized as asset impairment loss.
     If the depreciation factors in the previous period change later, causing the aforementioned difference is higher
than the book value of the asset, the Company will reverse the previously-made provision for impairment and include
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it in the current profits or losses, but the book value of the asset after the reversal can not exceed the book value of the
asset at the date of reversal under the assumption that no provision is made for the impairment.

    16. Assets held for sale

     (1) Recognition standard

     Where the Company recovers its book value by selling (including the non-monetary asset exchange with
commercial substance; it is the same below), not continuously using a non-current asset or disposal group, it shall be
classified into the category of assets held for sale. The non-current asset or disposal group to be classified into the
category of assets held for sale shall meet the following conditions at the same time:
     According to the practice of selling such assets or disposal groups in similar transactions, they can be sold
immediately under the current circumstances;
     Selling is extremely likely to happen, that is to say that GDG has make decision for a selling plan and has
obtained recognized purchase commitment and selling is expected to be completed within one year. If it can be sold
only after being approved by relevant authority organization or supervision department of GDG according to relevant
requirements, it should have been approved. Recognized purchase commitment refers to purchase agreement with
legal binding force that the Company concludes with other parties, which includes important clauses of transaction
price, time and enough strict default punishment, etc., with which, possibility to lead to major adjustment or
cancellation of agreement is tiny.
     The non-current asset or disposal group acquired by the Company for resale shall be classified as the held for
sale on the acquisition date if it meets the requirements of “expected to be sold within one year” on the acquisition
date, and it is likely to meet the other classification conditions for holding for sale in the short term (usually three
months).
     The disposal group refers to a group of assets that are disposed of as a whole in a transaction through sale or
other means, and the liabilities that are directly related to these assets and transferred in the transaction. Where the
goodwill obtained in the merger of enterprises is apportioned for the asset group or asset group combination to which
the disposal group belongs according to Accounting Standards for Enterprises No.8 - Impairment of Assets, this
disposal group should contain the goodwill apportioned to the disposal group.

     (2) Accounting treatment

     For the non-current asset and disposal group that is classified as the category held for sale, the Company carries
out initial measurement or re-measurement according to the smaller result of the net value of the book value and the
fair value minus the net amount of the disposal expense. Where the net value of the fair value minus the disposal cost
is lower than the original book value, the difference is confirmed as assets impairment loss and include in the current
profits and losses, and the provision for impairment of the assets held for sale is made at the same time; for the
amount of assets impairment loss confirmed by the disposal group held for sale, the book value of the goodwill in the
disposal group is deducted first, and then its book value is deducted in proportion according to the ratios of the book
values of various non-current assets applicable to measurement of the category held for sales in the disposal group.
     Where the net value of the fair value of non-current assets held for sale on the balance sheet date minus the
selling expense increases subsequently, the previous write-down amount is restored and will be reversed in the
amount of assets impairment loss after classification as the category held for sales is confirmed, and the reversed
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amount shall be included in the current profits and losses. Asset impairment losses recognized before the
classification are not reversed.
     Where the net value of the fair value of disposal group held for sale on the balance sheet date minus the selling
expense increases subsequently, the previous write-down amount is restored and will be reversed in the amount of
assets impairment loss confirmed for non-current assets applicable to the measurement provisions of the category
held for sale after classification as the category held for sales, and the reversed amount shall be included in the
current profits and losses.
     For the deducted book value of goodwill and the non-current assets applicable to the measurement provisions of
the category held for sale, the asset impairment loss confirmed before classification as the category held for sales
shall not be reversed. For the subsequently reversed amount of assets impairment loss confirmed for the disposal
group held for sale, its book value is increased in proportion according to the ratios of the book values of various
non-current assets applicable to measurement provisions of the category held for sales in the disposal group
excluding the goodwill. The non-current assets held for sale or non-current assets in the disposal group are not made
for provision for impairment or amortized, and the interests on debts and other expenses in the disposal group held
for sale will be confirmed continuously.
     The measurement methods of the category held for sale do not apply to the deferred income tax assets, financial
assets complying with the specifications of Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments, investment real estate and biological assets measured at fair value, contract
rights produced in the insurance contract, and the assets produced in the welfare of the workers, and they are
measured according to the relevant criteria or corresponding accounting policies formulated by the Company. Where
the disposal group contains the non-current assets applicable to the measurement method of the category held for sale,
the measurement method of the category held for sale is applicable to the whole disposal group. The related
accounting standards apply to measurement of liabilities in the disposal group.
     When the non-current assets or disposal group is removed from the disposal group held for sale because it does
not meet the classification condition of the category held for sale anymore and will not be classified as the category
held for sale or non-current assets, it shall be measured according to the smaller one of the following two:
     1) In case of the book value before being classified into the held for sale category, the amount adjusted
according to the depreciation, amortization or impairment that should have been recognized under the assumption
that it is not classified as held for sale category;
     2) Recoverable amount.

    17. Long-term equity investments
     The long-term equity investments mainly include the equity investment held by the Company that can take
control over the invested entity and have a significant impact, as well as the equity investment in its joint venture.

     (1) Judgment standards of control and significant influence

     Judgment standards of control:

     1) The Company owns the power to the invested entity;
          2) The Company enjoys variable return by participating relevant activities of the invested entity;



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         3) The Company has the ability to use the power over the invested entity to influence the Company's return
    amount;
         4) The Company acknowledges the control force for the invested entity that meets the above three
    conditions.

     Judgment standards of significant influence:

     1) The Company has the power to participate in the decision-making of the investee's financial and operating
policies, but does not control, or jointly control the formulation of these policies with other parties;
         2) Where GDG is able to exert significant impact on the investee, it is the associated enterprise of GDG;
         3) The invested entity under common control by the Company and other participants is a joint venture of the
    Company. Common control means that any participant cannot independently control this arrangement, and any
    participant with the right to common control on this arrangement can prevent other participants or the
    combination of participants from independently controlling this arrangement.

     (2) Determination of the investment cost of the long-term equity investment

     The long-term equity investment of the Company is measured at the investment cost at the time of acquisition.
Normally the investment cost refers to the assets paid, liabilities incurred or undertaken, and the fair value of equity
securities issued for the acquisition of this investment, including the costs directly attributable to the acquisition.
However, for the long-term equity investment formed by business combination involving enterprises under common
control, the investment cost is the share of carrying amount of the combined party's net assets acquired on the
combination date in the ultimate controlling party's consolidated financial statements.

     (3) Subsequent measurement of long-term equity investments and methods of profit or loss recognition

     The company adopts the cost method to calculate the long-term equity investment that can control the investee,
and the equity method to calculate the investment of associated enterprise and joint venture.
     The price of a long-term equity investment accounted by employing the cost method shall be included at its
initial investment cost. If there are additional investments or disinvestments, the cost of the long-term equity
investment shall be adjusted. The cash dividends or profits declared to distribute by the invested entity shall be
recognized as investment income and charged to profits or losses of the current period.
     When the Company employs the equity method for accounting of the long-term equity investment, if the
investment cost of a long-term equity investment is more than the investing enterprise' attributable share of the fair
value of the invested entity's identifiable net assets for the investment, the investment cost of the long-term equity
investment may not be adjusted; if the investment cost of a long-term equity investment is less than the investing
enterprise' attributable share of the fair value of the invested entity's identifiable net assets for the investment, the
carrying amount of the long-term equity investment shall be adjusted, and the difference shall be recorded into the
profits or losses of the current period.
     When the Company employs the equity method for accounting of the long-term equity investment, the Company
first adjusts the invested entity's net profits or losses and other comprehensive income in the aspects such as the fair
value of the invested entity's identifiable net assets at the time of investment acquisition, accounting policy and
accounting period, and then recognizes the current-period investment profits or losses and other comprehensive
income according to the investing enterprise' attributable or shareable share of the invested entity's net profits or
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losses and other comprehensive income. For other changes in owners' equities other than the net profits or losses,
other comprehensive income and profit distribution, the carrying amount of the long-term equity investment shall be
adjusted and recorded into the owners' equities.
     For the unrealized internal transaction profits/losses that arise between the Company and the associates and joint
ventures, the part attributable to the Company shall be calculated according to the shareholding proportion, and the
investment profits/losses shall be recognized on the basis of offsetting.
     For the long-term equity investments held already prior to January 1, 2007 for the associates and joint ventures,
if there is any equity investment difference on the debit side, the investment profits/losses shall be recognized after
deduction of the equity investment difference on the debit side amortized by the straight-line method according to the
original residual maturity.

     (4) Recognition of common control and significant influences on the invested entity

     Common control is recognized as the control which does not exist unless the investing parties unanimously
agree on sharing the control power over the relevant important financial and operating decisions of the invested entity
according to the provisions of the contract.
     Significant influences will be recognized where there is power to participate in making decisions on the financial
and operating policies of the invested entity, but not to control or do joint control together with other parties over the
formulation of these policies. When the Company holds more than 20.00% (included) but less than 50.00% of voting
shares of the invested entity directly or indirectly through a subsidiary, significant influences on the invested entity
shall be recognized, unless there is clear evidence indicating that the Company cannot participate in production and
management decision-making of the invested entity in this situation and therefore cannot generate significant
influences; if the Company holds less than 20.00% (excluded) of voting shares of the invested entity, usually the
Company is not deemed to have a significant influence on the invested entity, unless there is clear evidence indicating
that the Company can participate in production and management decision-making of the invested entity in this
situation and therefore can generate significant influences.

     (5) Conversion of accounting method of long-term equity investment

     Where the equity investment originally held by the Company, which is unable to control, is not under common
control with or has no significant influences on the invested entity, is converted into an investment for an associate or
joint venture due to additional investment, the investment shall be accounted by the equity method instead, and the
Company shall use the fair value of the original equity investment plus the fair value of the consideration paid to
acquire the newly added investment as the initial investment cost accounted by the equity method instead. The
difference between the fair value and carrying amount of the originally held equity investment prior to the additional
investment, and the cumulative fair value changes originally recorded into other comprehensive income shall be
transferred to the current-period profits or losses accounted by the equity method instead.
     For the originally held investments for associates and joint ventures, if they are not able to be under common
control with or have significant influences on the invested entity, if they are not able to be under common control
with or have significant influences on the invested entity due to reason such as partial disposal, accounting treatment
must be performed for remaining equity investments according to the recognition and measurement standards for
financial instruments, and the difference between the fair value and carrying amount on the date on which the
common control or significant influence is lost shall be charged to profits or losses of the current period. When
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accounting based on the equity method is terminated for other related comprehensive income originally subject to
accounting of equity method, accounting treatment is performed using the basis the same as that used by the invested
entity to directly dispose of relevant assets or liabilities; all the owners' equities that are recognized due to other
changes in owners' equities other than the net profits/losses, other comprehensive income and profit distribution of
the invested entity shall be transferred to the profits or losses of the current period when accounting based on the
equity method is terminated.
     Where the originally held investments for associates or joint ventures are converted to investments for
subsidiaries due to additional investment, in the individual financial statements, the sum of the carrying value of the
acquired party's equity investment held prior to the acquisition date and the investment cost newly added on the
acquisition date shall be used as the initial investment cost of such an investment; for the equity investment held prior
to the acquisition date, other comprehensive income recognized due to accounting of the equity method shall undergo
accounting treatment using the basis the same as that used by the invested entity to directly dispose of relevant assets
or liabilities when such an investment is disposed of.
     When the influencing capability on the invested entity is converted from control to a significant influence or
common control together with other investors due to investment disposal, the long-term equity investment cost, for
which recognition shall be terminated, is first carried over according to the proportion of investment disposal. On
such a basis, the remaining long-term equity investment cost is compared with the share attributable to the Company
in the fair value of the invested entity's identifiable net assets at the time of original investment, which is calculated
according to the remaining shareholding proportion. For the goodwill part to be embodied in the investment
evaluation, the carrying amount of long-term equity investment shall not be adjusted; where the investment cost is
less than the share attributable to the Company in the fair value of the invested entity's identifiable net assets at the
time of original investment, any excess shall be adjusted against retained earnings when the long-term equity
investment cost is adjusted. For the share attributable to the Company in the invested entity's realized net
profits/losses between acquisition of the original investment and conversion to accounting of the equity method due
to investment disposal, the carrying amount of the long-term equity investment shall be adjusted, meanwhile, any
excess shall be adjusted against retained earnings for the share attributable to the Company in the invested entity's
realized net profits/losses (excluding the cash dividends or profits distributed or declared to distribute) from
acquisition of the original investment to the beginning of the period in which the investment is disposed of, and the
current-period profits or losses shall be adjusted for the share attributable to the Company in the invested entity's
realized net profits/losses from the beginning of the period in which the investment is disposed of to the investment
disposal date; the share attributable to the Company in the invested entity's changes in other comprehensive income
shall be recorded into other comprehensive income when the carrying amount of the long-term equity investment is
adjusted; the share attributable to the Company in the invested entity's other changes in owners' equities arising from
reasons other than the net profits or losses, other comprehensive income and profit distribution shall be recorded into
"Capital reserves -- Other capital reserves" when the carrying amount of the long-term equity investment is adjusted.
After the cost method is converted to the equity method for the long-term equity investment, the share attributable to
the Company in the invested entity's realized net profits/losses, other comprehensive income and other changes in
owners' equities shall be calculated and recognized according to provisions of the standard in the future period.
     For the originally held long-term equity investment that is able to control the invested entity, if the shareholding
proportion declines due to reasons such as partial disposal and the investment cannot be able to control, be under
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common control with or have significant influences on the invested entity, accounting treatment must be performed
for remaining equity investments according to the recognition and measurement standards for financial instruments.
The difference between the fair value and carrying amount on the date of control loss shall be recorded into the
investment income of the current period.
     In the process of holding the long-term equity investment, if the Company decides to sell all or part of held
stocks of the invested entity in consideration of all aspects, the carrying amount of the long-term equity investment
corresponding to the sold stocks shall be carried over accordingly, and the difference between the selling price and
the carrying amount of long-term equity investment for disposal shall be recognized as disposal profit or loss.
     If the Company disposes of all the long-term equity investments accounted by the equity method, when
accounting based on the equity method is terminated for other related comprehensive income originally subject to
accounting of equity method, accounting treatment is performed using the basis the same as that used by the invested
entity to directly dispose of relevant assets or liabilities; all the owners' equities that are recognized due to changes in
other owners' equities other than the net profits/losses, other comprehensive income and profit distribution of the
invested entity shall be transferred to the investment income of the current period when accounting based on the
equity method is terminated; if a part of the long-term equity investment accounted by the equity method is disposed
of and the remaining stocks are still accounted using the equity method, other related comprehensive income
originally subject to accounting of equity method shall be handled using the basis the same as that used by the
invested entity to directly dispose of relevant assets or liabilities and be carried over by proportion, and the owners'
equities that are recognized due to other changes in owners' equities other than the net profits/losses, other
comprehensive income and profit distribution of the invested entity shall be carried over to the investment income of
the current period according to the proportion.

    18. Investment real estate
     The Company's investment real estate includes a land use right that is leased out, a land use right held for
transfer upon capital appreciation and a building that is leased out.
     The Company's investment real estate is measured at its cost, and the Company uses the cost model for a
subsequent measurement of its investment real estate. The depreciation and amortization of the investment real estate
shall be made in accordance with the accounting policies of fixed assets or intangible assets of the Company.
     When the Company changes the purpose of the investment real estate, such as for self-use, it shall transfer the
relevant investment real estate to other assets.
     See 24 “Long-term asset impairment” of the Note III for the impairment test method and impairment reserve
accrual method of investment real estate.

    19. Fixed assets

     (1) Recognition standard of fixed assets

     The Company's fixed assets refer to tangible assets held for the production of commodities, provision of labor
services, lease or operation and management, with a service life exceeding one accounting year. Fixed assets can not
be recognized unless they simultaneously meet the conditions as follows:

     1) The economic interests related to the fixed assets are likely to flow into the enterprise;
         2) The cost of this fixed asset can be measured reliably.
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     (2) Measurement of fixed assets

     The fixed assets are measured at cost.

     1) The cost of a purchased fixed asset consists of the purchase price, the relevant taxes, freight, loading and
unloading fees, professional service fees and other expenses that bring the fixed asset to the expected conditions for
use and that may be relegated to the fixed asset.
          2) If the payment for a fixed asset is delayed beyond the normal credit conditions and it is of financing
    nature in effect, the cost of the fixed asset shall be recognized based on the present value of the purchase price.
    The difference between the actual payment and the present value of the purchase price shall be included in the
    current profits and losses within the credit period, unless it shall be capitalized in accordance with the Accounting
    Standards No. 17 - Borrowing Costs.
          3) The cost of self-constructed fixed assets consists of the necessary expenditures incurred before the assets
    reaching the predetermined usable state.
          4) The cost invested to a fixed asset by the investor shall be recognized in accordance with the value as
    stipulated in the investment contract or agreement, other than those of unfair value as stipulated in the contract or
    agreement.
          5) The costs of fixed assets acquired through the exchange of non-monetary assets, recombination of
    liabilities, merger of enterprises shall be respectively recognized in accordance with the Accounting Standards No.
    7 - Exchange of Non-monetary Assets, Accounting Standards for Enterprises No. 12 - Debt Restructuring,
    Accounting Standards for Enterprises No. 20 - Merger of Enterprises and Accounting Standards for Enterprises
    No. 21 - Leases.

     (3) Classification of fixed assets

     The Company's fixed assets are classified into houses and buildings, machinery equipment, electronic equipment
and transportation equipment and otherwise.

     (4) Depreciation of fixed assets

     1) Recognition of depreciation method and service life, expected net salvage value rate and annual depreciation
           rate:

     The depreciation of fixed assets shall be made by the straight-line method. The annual depreciation rate
recognized according to the category, service life and expected net salvage value rate of fixed assets is as follows:

                                          Expected net salvage value                                      Annual depreciation
         Category of fixed asset                                          Expected service Life (year)
                                                  rate (%)                                                     rate (%)
Houses and buildings                                               5.00                           20.00                   4.75

Machinery equipment                                                5.00                      6.00-10.00             9.50-15.83

Electronic equipment                                               5.00                       2.00-3.00            31.67-47.50

Transportation equipment                                           5.00                       3.00-4.00            23.75-31.67

Others                                                             5.00                       3.00-5.00            19.00-31.67

     Depreciation of fixed assets of which a provision for impairment has been made: For a fixed asset of which a
provision for impairment has been made, the depreciation of the fixed asset shall be made based on the amount of
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deducting its expected net salvage value, depreciation amount and provision for impairment from the original price of
the fixed asset and remaining service life of the fixed asset.

     For the fixed assets that have reached intended usable condition but not prepared the final account for
completion, their costs shall be recognized at their estimated value, and their depreciation shall be made accordingly;
After completion of the final account for completion, the original estimated value of the fixed assets shall be adjusted
by their actual costs, but the original depreciation amount does not require adjusting.

         2) Check of service life, expected net salvage value and depreciation method of fixed assets:

     The Company shall, at least at the end of each year, have a check on the service life, expected net salvage value,
and the depreciation method of the fixed assets. If the Company finds that there is any difference between the
expected service life and the previously estimated service life of a fixed asset, the expected service life of the fixed
asset shall be adjusted; If there is any difference between the amount of expected net salvage value and the previously
estimated amount of the net salvage value, the expected net salvage value shall be adjusted; If any significant change
is made on the form of the realization of the expected economic benefits concerning a fixed asset, the method for the
depreciation of the fixed asset shall be changed. If any change is made to the service life, expected net salvage value
or the depreciation method of a fixed asset, it shall be regarded as a change of the accounting estimates.

     (5) Treatment of subsequent expenditures for fixed assets

     Subsequent expenditures incurred on a fixed asset refer to repair expenses, renovation expenses, repair costs and
decoration expenses and otherwise incurred in the course of use of the fixed asset. Their accounting treatment is as
follows: Where subsequent expenditures of a fixed asset such as renovation expenses meet the conditions of
recognizing the fixed asset, they shall be recorded into the cost of the fixed asset, and the carrying amount of the
replaced part of the subsequent expenditures shall be deducted; Where subsequent expenditures of a fixed asset such
as repair costs do not meet the conditions of recognizing the fixed asset, they shall be recorded into the profits and
losses of the current period in which they are incurred; Where the decoration expenses of a fixed asset meet the
conditions of recognizing the fixed asset, they shall be measured in a single detail account of "Fixed Assets", and the
depreciation of the fixed asset shall be made separately by the straight-line method in a shorter time of the period of
two decorations and remaining usable life of the fixed asset.

     The improvement expenditures incurred on a fixed asset leased by operating lease shall be capitalized and
reasonably amortized as long-term prepaid expenses.

     (6) Impairment test method and accounting and drawing method for impairment provision of fixed assets

     See 24 “Long-term Assets Impairment” of the Note III for the impairment test method and impairment provision
method of fixed assets.

    20. Construction in progress
     The term "construction in progress" refers to all necessary expenditures incurred before the acquired fixed assets
enable the project to reach expected usable condition, including project direct materials, direct employee
remunerations, installation costs for equipment to be installed and project construction, project management fees, net
profits and losses of project commissioning and approved capitalized borrowing costs.

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     (1) Valuation of construction in progress

     The Company's construction in progress shall be measured individually by construction project and shall be
valuated at actual cost.

     (2) Time when construction in process is carried forward to fixed assets

     When the construction in progress reaches the expected usable condition, they shall be transferred to fixed asset
at their actual cost. For the fixed assets that have reached expected usable condition but not prepared the final account
for completion, they shall be charged to the account at their estimated value and shall be adjusted after their actual
value is recognized.
     See 24 “Long-term Asset Impairment” in the Note III for the impairment test method and impairment provision
method of construction in process.

    21. Borrowing costs
     Borrowing costs are interests and other costs incurred by the Company in connection with the borrowing of the
funds, including interests, amortization of discounts or premiums related to borrowings, ancillary costs incurred in
connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings.

     (1) Recognition of capitalization of borrowing costs

     The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset shall be capitalized, and the amounts of other borrowing costs incurred shall be recorded into the profits and
losses of the period in which they are incurred. Qualifying assets are fixed assets, investment real estate and
inventories and otherwise that necessarily take a substantial period of time for acquisition, construction or production
to get ready for their intended use or sale.

     (2) Period of capitalization of borrowing costs

     1) Time point of capitalization of borrowing costs.
     The capitalization of borrowing costs commences only when all the following conditions are satisfied:
     a. Expenditures for the asset have been incurred;
     b. Borrowing costs have been incurred; and
     c. Activities relating to the acquisition, construction or production of the asset that are necessary to prepare the
asset for its intended use or sale have commenced.
         2) Time point of ceasing capitalization of borrowing costs:
     Capitalization of borrowing costs ceases when the qualifying asset acquired, constructed or produced becomes
ready for its intended use or sale. The subsequent borrowing costs shall be recorded into the profits and losses of the
current period.
         3) Recognition of suspending capitalization of borrowing costs:
     When an abnormal interruption occurs during the construction or production of an asset which satisfies the
conditions for capitalization and the interruption continues for more than three months consecutively, the
capitalization of borrowing expense will be paused, the borrowing expense incurred during the suspension will be
included in the current profits and losses.

     (3) Computing method of capitalizing amount of borrowing costs
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     During the capitalization period, the amount of interest (including amortization of discounts or premiums) to be
capitalized for each accounting period shall be recognized as follows:
     1) Where special funds are borrowed for the acquisition, construction or production of a qualifying asset, the
amount of interest to be capitalized shall be the actual interest expense incurred on that borrowing for the period less
any bank interest earned from depositing the borrowed funds before being used on the asset or any investment
income on the temporary investment of those funds.
           2) Where general funds are borrowed for the acquisition, construction or production of a qualifying asset,
    the amount of interest to be capitalized on such general borrowings shall be calculated and recognized by
    applying a capitalization rate of such general borrowings to the weighted average of the excess amounts of
    accumulated expenditures on the asset over and above the amounts of special borrowings. The capitalization rate
    shall be calculated and recognized by the weighted average interest rate of general borrowings.
     Where there is any discount or premium, the amount of discounts or premiums that shall be amortized during
each accounting period shall be recognized by the real interest rate method, and an adjustment shall be made to the
amount of interests in each period. During the period of capitalization, the amount of interest capitalized during each
accounting period shall not exceed the amount of interest actually incurred to the relevant borrowings in the current
period.
     Ancillary costs in connection with special borrowings that are incurred before the qualifying asset acquired,
constructed or produced becomes ready for its intended use or sale shall be capitalized on the basis of the incurred
amount when they are incurred, and they shall be recorded into the cost of qualifying asset; those incurred after the
qualifying asset acquired, constructed or produced becomes ready for its intended use or sale shall be recognized as
expenses on the basis of the incurred amount when they are incurred, and shall be recorded into the profits and losses
of the current period. The ancillary costs arising from a general borrowing shall be recognized as expenses at their
incurred amount when they are incurred, and shall be recorded into the profits and losses of the current period.

    22. Usufruct assets
     For the determination method of right-of-use asset and accounting treatment method, please see Note III. 34
"Lease".

    23. Intangible assets
     An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company. Intangible assets can be recognized only when they meet the conditions simultaneously as follows:
     a. They are consistent with the definition of intangible assets;
     b. The economic benefits related to intangible assets are likely to flow into the Company; and
     c. The cost of intangible assets can be measured reliably.

     (1) Measurement of intangible assets

     The intangible assets shall be measured according to their cost or fair value (if increased through business
combination not involving enterprises under common control).

     (2) Subsequent measurement

     The Company shall analyze and judge the service life of intangible assets when it obtains intangible assets. If the

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Company is unable to forecast the period when the intangible asset can bring economic benefits to it, it shall be
regarded as an intangible asset with uncertain service life.
      With regard to an intangible asset with limited service life, its amortization amount shall be amortized by
expected realization pattern of its economic benefits, if the Company is unable to recognize the expected realization
pattern reliably, intangible assets shall be amortized by the straight-line method.
      The Company shall, at least at the end of each year, check the service life and the amortization method of
intangible assets with limited service life. If necessary, it shall adjust the said service life and amortization method.
      With regard to an intangible asset with uncertain service life, its amortization amount shall not be amortized, but
the Company shall check the service life of the said intangible asset every year and shall carry out an impairment test
for it.

      (3) Estimation of service life

      As for intangible assets with limited service life, the estimation of their service life generally considers the
following factors:

      1) General life cycle of products manufactured by using the assets and information about service life of similar
           assets available;
          2) Present situation of technologies and process and estimation for future development trends;
          3) Market demand of products manufactured or services rendered by using the assets;
          4) Expected actions of present or potential competitors;
          5) Expected maintenance expenses for economic capacity from the assets and the Company's expected
     capability to pay relevant expenses;
          6) Laws and regulations or similar restrictions relating to the control period of the assets, such as concession
     period and lease period;
          7) Relevance with service life of other assets held by the Company, etc.

      (4) Division of research expenditures and development expenditures included in expenditures for internal
research and development projects

      1) Research expenditures in internal research and development projects shall be recorded into the profits and
           losses of the current period when they are incurred.
          2) The expenditures for the development stage of internal R&D projects shall be recognized as intangible
     assets when the following conditions are met at the same time:

      a. The development of the intangible asset is completed to make the use or sale of the intangible assets feasible
technically;

      b. Have the intent to complete the intangible assets and use or sell them;

      c. How the intangible asset will generate economic benefits, including the ability to demonstrate the existence of
a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the
usefulness of the intangible asset;

      d. Availability of adequate technical, financial and other resources to complete the development and to use or
sell the intangible asset;
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     e. Ability to measure reliably the expenditure that is attributable to the intangible asset during its development.

     Where the expenditures at research stage or at development stage cannot be distinguished, all expenditures to
research and development shall be included in the current profits and losses.

     (5) Impairment test method and accounting and drawing method of impairment provision for intangible assets

     See 24 “Long-term Assets Impairment” of the Note III for the impairment test method and impairment provision
method of intangible assets.

    24. Impairment of long-term assets
     On the balance sheet date, if there is any sign showing possible impairment of assets (referring to the assets
other than inventories, equity instruments that have no quoted price and reliable fair value measurement in active
market, investment real estate measured by fair value model, consumable biological assets, assets formed under
construction contract, deferred income tax assets, residual value not guaranteed by the renter in the financing lease
and financial assets), their recoverable amount shall be estimated on the basis of single item assets; Where it is
difficult to estimate the recoverable amount of the single item assets, the recoverable amount of the assets shall be
recognized on the basis of their asset group or combination of asset groups.
     The recoverable amount shall be recognized in light of the higher one of the net amount of the fair value of the
single item assets, asset group or combination of asset groups less the disposal expenses and the present value of the
expected future cash flow of the single item assets, asset group or combination of asset groups.
     Where the recoverable amount of the single item assets is lower than their carrying amount, a provision for the
asset impairment shall be made accordingly on the basis of the difference between the carrying amount of the single
item assets and their recoverable amount. Where the recoverable amount of an asset group or a combination of asset
groups is lower than its carrying amount, it shall be recognized as the corresponding impairment loss. The amount of
the impairment loss shall first charge against the carrying amount of goodwill which is apportioned to the asset group
or combination of asset groups, then charge it against the carrying amount of other assets in proportion to the weight
of other assets in the asset group or combination of asset groups with the goodwill excluded. The charges against the
carrying amount of the assets above shall be treated as the impairment loss of the single item assets (including the
goodwill), and a provision for impairment of the single item assets shall be made accordingly.
     Once the above loss of asset impairment is recognized, it shall not be switched back in future accounting
periods.

    25. Long-term unamortized expenses
     Long-term deferred expenses refer to the expenses incurred by the Company but attributable to the current and
subsequent accounting periods of more than one year (excluding one year), including the expenses for improvement
of fixed assets leased by operating lease.
     Long-term deferred expenses shall be recorded into the account based on their actual amount of expenditure and
shall be averagely amortized by their beneficial period, if long-term deferred expenses can not benefit subsequent
accounting periods, the unamortized value of the project shall be all transferred to the profits and losses of the current
period.

    26. Contract liabilities
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     Contract liability refers to the Company's obligation to transfer goods to customers for consideration received or
receivable from customers. If before the Company transfers the goods to the customer, the customer has paid the
contract consideration or the Company has obtained the unconditional right to receive payment, the Company will, at
the earlier time point between the actual payment by the customer and the payment due, present the amount received
or receivables as contract liabilities. Contract assets and contract liabilities under the same contract are presented in
net amount, and contract assets and contract liabilities under different contracts are not offset.

    27. Employees' wages and salaries

     (1) Accounting treatment of short-term wages and salaries

     In the accounting period during which employees provide services to the Company, the Company recognizes the
short-term wages and salaries actually incurred as liabilities and charges them to the current-period profits and losses
or relevant asset costs.

     (2) Accounting treatment of separation benefits

     The severance benefit plans can be divided into the defined contribution plan and the defined benefit plan
     1) In the accounting period during which employees provide services to the Company, the Company recognizes
the amount to be deposited (calculated according to the defined contribution plan) as liabilities and charges it to the
current-period profits and losses or relevant asset costs.
         2) The accounting treatment for defined benefit plan generally includes the following steps:
     a. The Company will estimate the relevant demographic statistical variables and financial variables with
unbiased and consistent actuarial assumptions by using the projected unit credit method, and then measure the
obligations arising from the defined benefit plan, and the period in which the obligations incurred is determined
accordingly;
     b. The present value of obligation under the defined benefit plan minus the deficit or surplus formed by the fair
value of asset under the defined benefit plan shall be recognized as the net liabilities or net assets under a defined
benefit plan. If the defined benefit plan had surplus, the Company should measure the net asset under the defined
benefit plan with the surplus or asset caps of the defined benefit plan, whichever is lower. The upper asset limit refers
to the present value of the economic interest that can be obtained by the Company from refund of the defined benefit
plan or by reducing the fund to be deposited for the defined benefit plan in the future;
     c. At the end of the period, recognize the costs of employees' wages and salaries arising from the defined benefit
plan as the service costs, net interests of net liabilities or net assets of the defined benefit plan, and changes arising
from remeasurement of net liabilities or net assets of the defined benefit plan, wherein the service costs and net
interests of net liabilities or net assets of the defined benefit plan are recorded into the current-period profits/losses or
relevant asset costs, changes arising from remeasurement of net liabilities or net assets of the defined benefit plan are
recorded into other comprehensive income and cannot be reversed to profits/losses in the subsequent accounting
period, but such amount recognized in other comprehensive income can be transferred within the equity scope;
     d. Recognize a settlement gain or loss during settlement of the defined benefit plan.

     (3) Accounting treatment of dismiss welfare

     The liability of employees' wages and salaries that arises from the dismiss welfare shall be recognized on the

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earlier one of the following two dates and charged to the current-period profits/losses:
     1) When the Company cannot unilaterally cancel the dismissal welfare provided for the labor relationship
          cancellation plan or staff reduction suggestion;
         2) When the Company recognizes the cost or expense related to reconstruction involving dismiss welfare
    payment.

     (4) Accounting treatment of other long-term employee welfares

     If other long-term employee welfares offered by the Company to employees comply with the defined
contribution plan, accounting treatment will be conducted according to the defined contribution plan; the long-term
benefits other than these will undergo accounting treatment according to the defined benefit plan. However, "changes
arising from remeasurement of net liabilities or net assets of the defined benefit plan" under relevant employees'
wages and salaries will be included into the current profits or losses or relevant asset costs.

    28. Lease liabilities
    For the determination method of lease liability and accounting treatment method, please see Note III. 34 "Lease".

    29. Accrued liabilities

     (1) Recognition criteria of estimated liabilities

     When the businesses related to contingencies such as external guarantee, pending action or arbitration, product
quality assurance, plan for layoffs, loss contract, restructuring obligations and fixed asset disposal obligations meet
all following conditions, they shall be recognized as liabilities:
     1) The liabilities are present liabilities assumed by the Company;
         2) The fulfillment of the liabilities might cause outflow of economic benefits from the enterprise;
         3) The amount of the liabilities can be reliably measured.

     (2) Measurement methods of estimated liabilities

     The estimated liabilities shall be measured in accordance with the best estimate of the necessary expenses for the
performance of the current obligation. If there is a sequent range for the necessary expenses and if all the outcomes
within this range are equally likely to occur, the best estimate shall be recognized in accordance with the middle
estimate within the range. In other cases, the best estimate shall be recognized in accordance with the following
methods, respectively:
     1) When a contingency involves a single item, the best estimate shall be determined according to the most
          probable amount;
         2) If the contingencies concern two or more items, the best estimate shall be calculated and recognized in
    accordance with all possible outcomes and the relevant probabilities.
     When all or some of the expenses necessary for the liquidation of estimated liabilities of the company is
expected to be compensated by a third party or other parties, the compensation shall be separately recognized as an
asset only when it is virtually certain that the reimbursement will be obtained. The amount recognized for the
reimbursement shall not exceed the carrying amount of the recognized estimated liabilities.

    30. Share-based payments

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     (1) Accounting treatment method of share-based payment

     Share-based payment refers to the transaction of granting equity instruments or bearing liabilities recognized on
the basis of equity instrument for obtaining services from employees or other parties. The share-based payment is
classified into equity-settled share-based payment and cash-settled share-based payment.
     1) Equity-settled share-based payments
     The equity-settled share-based payment in return for employee services is measured at the fair value of the
equity instruments on the day granted to the employees. The fair value is measured based on the best estimate of the
number of vesting equity instruments in the waiting period and included in the relevant costs or expenses by the
straight-line method when its right is exercised only after the service in the waiting period is completed or the
specified performance conditions are met. When the vesting is exercised immediately after granted, the relevant cost
or fee is included on the date of the granting date, and the capital reserve is increased accordingly.
     On each balance sheet date during the vesting period, the Company makes the best estimate of subsequent
information such as the latest change in number of vesting employees to correct the estimated number of vested
equity instruments. The aforementioned estimated influences are included in current relevant costs or expenses, and
the capital reserves are adjusted correspondingly.
     The equity-settled share-based payment used to exchange for the services of other parties shall be measured
according to the fair value of the services of other parties on the obtaining date if the services of other parties can be
measured reliably; the equity-settled share-based payment shall be measured according to the fair value of the equity
instruments on the obtaining date of the services of other parties if the fair value of the services of other parties
cannot be measured reliably but the fair value of the equity instruments can be measured reliably, and be included in
the relevant costs or expenses, and the stockholders' equity shall be increased correspondingly.
     2) Cash-settled share-based payments
     The cash-settled share payment is measured according to the fair value of liabilities determined based on shares
or other equity instruments undertaken by the Company. When it is vested immediately after grant, it is included in
relevant costs or expenses as granted, and the liabilities are increased correspondingly; if it is vested after completing
the services in the vesting period or reaching the specified performance terms, the current obtained services are
included in costs or expenses based on the best estimate of vesting and at fair value of liabilities borne by the
Company on each balance sheet date of the vesting period, and the liabilities are increased correspondingly.
     In each balance sheet date and the date of settlement before the settlement of the relevant liabilities, re measure
the fair value of liabilities, the changes recorded in the current profits and losses.

     (2) Relevant accounting treatment for amending and terminating share-based payment plan

     When the Company amends the share-based payment plan, if the fair value of equity instruments granted is
increased due to the amendment, the increase of the services obtained will be recognized correspondingly according
to the increase of the fair value of equity instruments. The increase of the fair value of equity instruments refers to the
difference between the fair values on the amendment date of equity instruments before and after amendment. If the
amendment reduces the total fair value of the share-based payment or adopts other unfavorable methods to the
employees, the accounting treatment of the obtained services will be continued as if the modification has never
occurred, unless the Company cancels part or all of the equity instruments granted.

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     During the waiting period, if the granted equity instrument is canceled, the Company will handle the
cancellation as an accelerated exercise of rights, the amount that shall be recognized during the remaining vesting
period is immediately included in current profits and losses with the capital reserves recognized at the same time. If
an employee or other party can choose to meet the non-vesting conditions but fails to meet them during the vesting
period, the Company handles the failure as the cancellation of granted equity instrument.

    31. Revenue
     For the contract between the Company and the customer, the Company recognizes the revenue at the point when
the customer obtains control over the relevant goods and the following conditions are met simultaneously: the parties
to the contract have approved the contract and promised to perform their respective obligations; the contract clarifies
the rights and obligations of the parties to the contract in relation to the transferred goods or the provided services; the
contract has clear payment terms related to the transferred goods; the contract has commercial substance, that is, the
performance of the contract will change the risk, time distribution or amount of the Company's future cash flow; and
the consideration that the Company is entitled to obtain due to its transfer of goods to customers is likely to be
recovered.
     At the commencement date of the contract, the Company identifies each individual performance obligation in
the contract, and allocates the transaction price to each individual performance obligation in accordance with the
relative proportion of the stand-alone selling price of the goods promised by each individual performance obligation.
When determining the transaction price, the Company considers the impact of out a variable consideration, major
financing components in the contract, non-cash consideration, consideration payable to customers and other factors.
     The Company recognizes the transaction price allocated to each individual performance obligation as revenue at
the point when the customer obtains control over the relevant goods. When judging whether the customer has
obtained control over the goods, the Company considers the following signs: where the Company has the current
right to receive payment for the goods, that is, the customer has the current payment obligation for the goods; where
the Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal
ownership of the goods; where the Company has transferred the goods to the customer in kind, that is, the customer
has taken possession of the goods in kind; where the Company has transferred the main risks and rewards of the
ownership of the goods to the customer, that is, the customer has obtained the main risks and rewards of the
ownership of the goods; where the customer has accepted the goods; and other signs that the customer has obtained
control over the goods.
     The Company's main sales of air conditioners and related products usually only include the performance
obligations of the transferred goods.

     (1) Income from selling goods

     1) For the income from domestic sales of products, the Company mainly adopts the form of payment in advance.
The Company recognizes the income when the product is outbound and delivered to the purchaser, the shipping
document is issued or the customer's receipt bill is obtained, and the amount of income from product sales is
determined;
         2) In terms of the export sales income, the Company completes the customs declaration and port departure
    procedures for the products according to the contract and obtains the bill of lading. The income is confirmed
    when the amount of the sales revenue is determined.
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     (2) Income from rendering labor services

     1) For the income from storage services, after the relevant labor services are provided, the Company will settle
the income on a monthly basis when the amount of income has been determined according to the working hours and
standard wages of the services provided, facilities used and related expenses;
         2) For the income from material processing services, the Company will recognize the income when it
    processes the materials according to the contract and delivers it to the customer to obtain the customer's receipt
    document, and the amount of income is determined;
         3) The Company's service charge and commission income include the service charge income of acceptance
    business, service charge income of loan by mandate, etc.
     For the service charge and commission income, the completion time point of the contractual performance
obligations is determined according to the business settlement sheet formulated through settlement with the customer
when the business is completed, and the specific amount of revenue is recognized according to the terms and ratios
stipulated in the business contract or agreement.

     (3) Income from alienating of right to use assets

     The income from abalienating the right to use assets includes the interest income, leasehold income, etc.
     The Company confirms the income from abalienating the right to use assets when the income amount can be
reliably measured and the relevant economic benefits are likely to flow into the enterprise.
     1) The interest income of the Company includes the income from the interest of the money deposited at a
financial enterprise and loan interest income. The income from the interest of the money deposited at a financial
enterprise is recognized by period according to the time of depositing and the actual interest rate. The loan interest
income is recognized when the Company grants self-operating loan and the interest is accrued by period. The loan
interest income is recognized according to the effective interest rate method.
     The effective interest rate method means that the amortization cost of a financial asset or financial liability and
interest income or interest expenditure of each period are calculated according to its effective rate of interest. The
effective rate of interest refers to the interest rate used to discount the future cash flow of a financial asset or financial
liability within the expected period of existence or a shorter period to the current book value of the financial asset or
financial liability. When determining the effective rate of interest, the Company predicts the future cash flow on the
basis of considering all the contract terms of financial asset or financial liability, but does not consider the loss of
future credits. All the charges paid or collected by the Company and becoming a constituent part of the effective rate
of interest, transaction expense and transaction premium or discount shall be considered when the effective rate of
interest is determined.
         2) The leasehold revenue recognition conditions of the Company are as follows:

     a. The lease contract, agreement or other settlement notices recognized by the lessee are available;

     b. The obligations stipulated in the contract are fulfilled, the lease invoice is issued, and the price has been
obtained or will be obtained for sure;

     c. The rental cost can be measured reliably.

    32. Government subsidies

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        A government subsidy means the monetary and non-monetary assets obtained free by the Company from the
government, but excluding the capital invested by the government as the owner. Government subsidies consist of the
government subsidies pertinent to assets and government subsidies pertinent to income.
        The Company defines the obtained government subsidies used for purchase or construction, or forming the
long-term assets by other ways as government subsidies pertinent to assets, and all the other government subsidies as
government subsidies pertinent to income. If the government document does not specify the subsidy object, the
following mode is adopted to classify the subsidies into government subsidies pertinent to income and government
subsidies pertinent to assets:
        (1) If the government document specifies the project to which the subsidy aims, the amount is divided according
to the relative proportion of the paid amount to form assets to the paid amount to be recorded into expenses in the
budget of this specific project, and this division proportion needs to be checked on every balance sheet date and be
changed when necessary;
        (2) If the government document provides only a general presentation of the purpose without specifying the
specific project, the subsidy shall be regarded as government subsidy pertinent to income.
        The government subsidies pertinent to assets shall be recognized as deferred income and included in the profits
and losses by period according to the reasonable and systematic methods in the service life of the relevant asset when
this asset reaches the intended state of use. Where the relevant asset is sold, transferred, scrapped or damaged before
the service life ends, the related deferred income balance unallocated is transferred to the profits and losses of the
current period of asset disposal.
        If the government subsidies pertinent to incomes are used for compensating the related expenses or losses in the
later period, they shall be recognized as deferred income when being obtained and shall be recorded into the
current-period profits and losses in the period when the relevant expenses or losses are recognized; if the government
subsidies pertinent to incomes are used for compensating the related cost expenses or losses incurred, they shall be
recorded into the current-period profits and losses directly when being obtained.
        The government subsidies pertinent to daily activities shall be recorded in other incomes; the government
subsidies not pertinent to daily activities shall be recorded in the non-operating incomes and expenditures.
        (3) The obtained subsidized interest of policy preference undergoes accounting treatment by differentiating the
following two obtaining ways:
        a. Where the financial department disburses the discount fund to the loan bank so that the loan bank provides a
loan to the Company at the policy-based preferential interest rate, the fair value of loan is used as the entry value of
loan, the borrowing cost is calculated according to the effective interest rate method, and the difference between the
actual amount received and the fair value of borrowing is recognized as deferred income. The deferred income is
amortized using the effective interest rate method in the borrowing remaining period to offset the relevant borrowing
cost;
        b. Where the financial department disburses the discount fund to the Company directly, the corresponding
discount is used to offset the relevant borrowing cost.
        (4) Where the government subsidies are monetary assets, they shall be measured according to the amount
received or receivable. Where the government subsidies of non-monetary assets, they shall be measured at the fair
value; if the fair value cannot be obtained in a reliable way, the subsidies shall be measured at the nominal amount.
When a government subsidy is actually received, the Company usually recognizes and measures it according to the
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actually received amount. At the end of the period, however, if there is any exact evidence showing that the Company
complies with relevant conditions provided in the financial supporting policy, and it is expected to receive the capital
support from the government, this subsidy shall be measured according to the amount receivable. The government
subsidy measured according to the amount receivable shall comply with all the following conditions:
     1) The amount of receivable subsidy has been confirmed by the authoritative government department by issuing
a document, or the subsidy can be independently and reasonably measured and calculated in accordance with relevant
provisions of the formally issued financial fund management measures, and it is predicted that its amount does not
involve significant uncertainty;
     2) The subsidy is based on the financially supported project that is formally released by the local financial
department and initiatively disclosed according to provisions of the Regulation of the People's Republic of China on
the Disclosure of Government Information, as well as its financial fund management measures, and the management
measures must be generous (any enterprise meeting the defined conditions can apply for the subsidy) and are not
formulated specially for specific enterprises;
     3) Other conditions that shall be matched according to specific conditions of the Company and this matter of
subsidy.

    33. Deferred income tax assets/deferred income tax liabilities
     The deferred income tax assets and deferred income tax liabilities are calculated and recognized based on the
difference between the tax base of assets and liabilities and their book values (temporary differences). For deductible
losses that can be deducted from taxable income in subsequent years in accordance with the provisions of the tax law,
the corresponding deferred income tax assets are recognized. For temporary differences arising from the initial
recognition of goodwill, the corresponding deferred income tax liabilities are not recognized. For temporary
differences arising from the initial recognition of assets or liabilities arising from non-business combination
transactions that neither affect accounting profits nor taxable income (or deductible losses), the corresponding
deferred income tax assets and deferred income tax liabilities are not recognized. At the balance sheet date, the
deferred income tax assets and deferred income tax liabilities are measured at the tax rate applicable to the period
during which the assets are expected to be recovered or the liabilities are expected to be settled.
     The Company recognizes the deferred income tax assets to the extent of the amount of the taxable income which
it is most likely to obtain and which can be deducted from the deductible temporary differences, deductible losses and
tax deductions.
     Deferred income tax liabilities are recognized for all taxable temporary differences arising from the investments
in subsidiaries, joint ventures and associates, except to the extent that both of the following conditions are satisfied:
the Company is able to control the timing of the reversal of the temporary differences; and it is likely that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible
temporary differences associated with investments in subsidiaries, joint ventures and associates if all of the following
conditions are satisfied: it is likely that the deductible temporary difference will reverse in the foreseeable future and
it is likely that taxable profit in the future will be available against which the deductible temporary difference can be
utilized.
     The deferred tax assets and the deferred tax liabilities are offset and presented on a net basis when all of
conditions are satisfied:

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     a. deferred income tax assets and deferred income tax liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity of the Company; and
     b. the taxable entity of the Company has a legal right to settle current tax assets and liabilities on a net basis.

    34. Lease
     Lease refers to a contract in which the Company transfered or obtained the right to control the use of one or
more of recognized assets within a certain period of time in exchange for or pay consideration. On the contract
commencement date, the Company evaluates whether the contract is a lease or includes a lease.

     (1) With the Company as the lessee

       1) Initial measurement

     On the beginning of the lease term, the Company will recognize the right to use the leased assets during the lease
term as the right-of-use asset and the current value of the lease payment amount that has not been paid as lease
liability, except for short-term lease and low-value asset lease. When calculating the current value of the lease
payment amount, the Company uses the implied interest rate in lease as a discount rate. If the implied interest rate in
lease cannot be determined, the lessee incremental borrowing interest rate is used as the discount rate.
     The Company should initially measure right-of-use assets according to the cost. The cost includes:
     a. The initially measured amount of the lease liabilities;
     b. The lease payments minus the enjoyed lease incentives made by the Company on or before the start date of
the lease term;
     c. The initial direct cost of the Company;
     d. The estimated cost incurred by the Company to disassemble and remove the leased assets, restore the site of
the leased assets to the original condition or restore the leased assets to the condition agreed in the lease contract.


     2) Subsequent measurement
     The Company calculates and distills depreciation by referring to fixed asset depreciation policies (see Note III.
19 "Fixed assets"). If the Company can reasonably determine the obtaining of the ownership of the leasing assets
when the lease term expires, it will calculate and distill depreciation within the remaining service life of the leasing
asset. Where it is impossible to reasonably determine if the ownership of the leased asset can be acquired upon the
expiration of the lease term, the Company will make depreciation within a shorter period between the lease term and
the remaining service life of the leased asset.
     For lease liability, the Company calculates its interests during the lease term according to a fixed periodic
interest rate and includes them in the current profit or loss or the cost of related assets. The variable lease payment
amount that is not included in the lease liability is included in the current profit or loss or cost of related assets when
it actually occurs.
     After the lease term starts, in case of changes in the substantial fixed payment amount, the estimated amount
payable of the guarantee residual value, the index or ratio used for determining the lease payment amount, the call
option, renewal option or the assessment result or actual vesting of the termination option, the Company re-measures
the lease liability according to the current value of the lease payment amount after the change and adjusts the book

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value of the right-of-use asset accordingly. The book value of the right-of-use assets has been reduced to zero, but the
lease liabilities still need to be further reduced, the Company will include the remaining amount into the current
profits and losses.


     3) Short-term leases and low value asset leases
     For short-term lease (with a lease term of no more than 12 months from the beginning of the lease) and
low-value asset lease, the Company adopts a simplified processing method to include the lease payment amount into
the cost of relevant assets or current profit and loss during the lease term according to the straight line method or
other systematic and reasonable methods instead of recognizing the right-of-use asset and lease liability.

     (2) With the Company as the Lessor

     Based on the substance of transaction, the Company classifies the lease as finance lease and operating lease on
the lease commencement date. Finance lease refers to the lease that transfers substantially almost all risks and
rewards associated with the ownership of the assets. Operating lease refers to the lease other than the finance lease.
     1) Operating leases
     The Company adopts the straight line method to recognize the lease payment amount of the operating lease as
the rental income during the lease term. Variable lease payments in connection with the operating lease that are not
included in lease receipts are included in the current profits and losses when actually incurred.
      2) Finance lease
     On the beginning date of the lease term, the Company recognizes the financial lease receivables and terminates
the recognition of the financial lease assets. The financial lease receivables are initially measured by the net lease
investment (the sum of present value the discounted implied interest rate in lease for the non-guaranteed residual
value and the lease payments that have not been received on the beginning date of the lease term) and the interests
during the lease term are calculated according to a fixed periodic interest rate. The variable rental payments obtained
by the Company that are not included in the net lease investment are included in the current profit and loss when they
actually occur.

    35. Discontinued operation
     Discontinued operation refers to a constituent part that meets one of the following conditions and can be
distinguished separately, and this constituent part has been disposed of or classified into the category held for sale:
     (1) This constituent part represents an independent main business or a separate main business area;
     (2) This constituent part is one part of an associated plan for disposing of an independent main business or a
separate main business area;
     (3) This constituent part is a subsidiary specially acquired for resale.
     The Company lists the continuous operation profit and loss and discontinued operation profit and loss in the
consolidated income statement and the income statement respectively. For the non-current asset or disposal group
held for sale that does not comply with the definition of discontinued operation, its impairment loss and reversed
amount and profit and loss from disposal shall be listed as continuous operation profit and loss. The impairment loss
and reversed amount of discontinued operation and other operation profits and losses and profits and losses from
disposal shall be listed as discontinued operation profits and losses.

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     For the discontinued operation listed in the current period, in the current financial statements, the information
originally listed as continuous operation profit and loss is re-listed as discontinued operation profits and losses of the
comparable accounting period. Where the disposal group for discontinued use that is not for sale meets the condition
of the relevant constituent part in the definition of discontinued operation, it shall be listed as discontinued operation
from the date of discontinued use. Where the control right of a subsidiary is lost due to reasons such as selling the
investment into the subsidiary and this subsidiary complies with the definition of discontinued operation, the relevant
discontinued operation profits and losses shall be listed in the consolidated income statement.

    36. Segment report
     The Company determines the operating segment based on the internal organizational structure, management
requirements and internal reporting system, determines the report segment based on the operating segment, and
discloses the segment information.
     The operating segment refers to the constituent part in the Company that meets the following conditions at the
same time:
     (1) This constituent part can generate income and cost in daily activities;
     (2) The management of the Company can regularly evaluate the operating results of the constituent part so as to
decide configuration of resources to it and evaluate its performance;
     (3) The Company can obtain the relevant accounting information of this constituent part such as its financial
status, operating results and cash flows. If two or more operating segments have similar economic characteristics and
satisfy certain conditions, they can be combined into one operating segment.

    37. Repurchase share
     If the Company's shares are acquired due to the reduction of registered capital or employee rewards, the amount
actually paid shall be treated as the treasury share and registered at the same time for future reference. If the
repurchased share is canceled, the difference between the total share face value and amount paid for actual repurchase
calculated by the face value of the canceled share and number of shares canceled is used to offset the capital reserve.
If the capital reserve is insufficient to offset, the retained earnings shall be offset;
     If the repurchased shares are used to reward the Company's employees as equity-settled share-based payment,
please refer to Note III. 30 "Share-based payment" for the corresponding accounting treatment.

    38. Hedging
     To avoid certain risks, the Company hedges certain financial instruments as hedging instruments. Hedge that
meets the prescribed conditions will be handled by the Company using hedge accounting methods. The Company's
hedging includes fair value hedge, cash flow hedge and hedge of net investment in overseas operations.
     At the beginning of the hedging, the Company officially designates the hedging tool and the hedged item, and
prepares written documents on the hedging relationship and the risk management strategy and risk management
objectives of the Company engages in hedging. In addition, the Company will continue to assess the effectiveness of
the hedging when and after the hedging begins.
     (1) Fair value hedge
     For eligible hedging instruments designated as fair value hedge, the gains or losses generated thereby are
included in the current profits and losses. If a hedging instrument is hedged on a non-trading equity instrument
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investment (or its component) that is selected to be measured at fair value and of which changes are included in other
comprehensive income, the gains and losses generated thereby are included in other comprehensive income. Gain or
loss of a hedged item due to hedging risk exposure is included in the current profits and losses, while adjusting the
book value of the hedged item. If a hedged item is measured at fair value, the gain or loss of the hedged item due to
hedging risk exposure does not need to adjust the book value of the hedged item, and the related gain and loss are
included in the current profits or losses or other comprehensive income.
     When the Company revokes the designation of the hedging relationship, the hedging instrument has expired or is
sold, the contract is terminated or exercised, or the conditions for the use of hedging accounting is no longer met, the
use of hedging accounting is terminated.
     (2) Cash flow hedging
     For eligible hedging instruments designated as cash flow hedge, the portion of the gains or losses generated
thereby that is determined to be an effective hedge is included in other comprehensive income, while the portion that
is determined to be an ineffective hedge is included in the current profits and losses.
     If the expected transaction causes the Company to subsequently recognize a non-financial asset or non-financial
liability, or the expected transaction of the non-financial asset or non-financial liability forms a firm commitment
applicable to fair value hedge accounting, the Company will transfer out the amount of cash flow hedge reserve
originally recognized in other comprehensive income and includes it in the initial recognition amount of the asset or
liability. For other cash flow hedging, the Company will, during the same period in which the hedged expected cash
flow affects the profit or loss, transfer out the amount of cash flow hedge reserve originally recognized in other
comprehensive income and includes it in the current profits and losses.
     If it is expected that all or part of the net loss originally included in other comprehensive income cannot be
compensated in the future accounting period, the portion which cannot be compensated will be transferred out and
included in the current profits and losses.
     When the Company terminates the use of hedging accounting for cash flow hedges, the accumulated cash flow
hedge reserve that has been included in other comprehensive income will be retained when future cash flow
expectations still occur, and will be transferred out of other comprehensive income and included in the current profits
and losses when future cash flow expectations no longer occur.
     (3) Hedge of net investment in an overseas operation
     Hedge of net investment in overseas operations is accounted for using a method similar to the cash flow hedge.
Among the gains or losses of hedging instruments, the portion that is determined to be an effective hedge is included
in other comprehensive income, while the portion that is determined to be an ineffective hedge is included in the
current profits and losses.
     Gains and losses that have been included in other comprehensive income will be transferred out of other
comprehensive income and included in the current profits and losses when disposing of overseas operations.

    39. Safe production expense
     Some subsidiaries of the Company withdraw the safety production costs in accordance with national regulations
and include them in the costs of related products or current profit or loss.
     Where the expenses for production safety extracted are of a cost nature, the special reserves shall be directly
written off. If the expenses for safety production extracted are used to form fixed assets, the expenses incurred by the

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account collection of "construction in progress" shall be recognized as fixed assets when the safety project is
completed and reaches the expected serviceable state; at the same time, according to the cost of forming fixed assets,
special reserves shall be written down, and the same amount of accumulated depreciation shall be confirmed. The
fixed asset is no longer depreciated at a later stage.

     40. Risk reserve
      In accordance with the Administrative Measures for the Reserve Accrual of Financial Enterprises ("Accrual
Measures") (CJ [2012] No. 20) promulgated by the Ministry of Finance, the financial industry subsidiaries under the
Company establish general risk provisions on the basis of provision for preparation for the impairment of assets to
make up for potential losses related to risk assets that have not yet been recognized. This general risk preparation will
be treated as distribution of profits. It is an integral part of the owner's equity. In principle, it should not be less than
1.5% of the ending balance of risk assets. According to the requirements of the accrual measures, if the proportion of
the general preparation balance of financial enterprises in the ending balance of risk assets is difficult to reach 1.5%
at one time, it can be in place in years. In principle, it should not exceed 5 years.

     41. Major accounting policies and accounting estimate changes

      (1) Changes in important accounting policies

      The Ministry of Finance issued the Accounting Standards for Business Enterprises No. 21 - Leases (Finance and
Accounting [2018] No. 35) on December 7, 2018, requiring companies listed at home and abroad at the same time
and companies listed overseas and adopting IFRS or Accounting Standards for Business Accounting to prepare
financial statements to implement from January 1, 2019; and requiring other domestic listed companies implementing
Accounting Standards for Business Enterprises to implement from January 1, 2021. The Company made
corresponding changes to its accounting policies in accordance with the requirements of the standard.
      According to the provisions of the new lease criteria, for the contract that has existed prior to the first execution
date, the Company chooses not to re-evaluate whether it is lease or includes lease. Only the retained earnings at the
beginning of the period and other related statement items were adjusted on first-time implementation, and no
adjustments were made to comparable period information. The change in accounting policy did not have a significant
impact on the financial indicators of total assets, total liabilities, net assets and net profit of the Company.
       The following shows adjustments to the financial statements at the beginning of the period of the first
implementation of the new lease standard for the first time starting from 2021:

                                     Amount as at 31 December, 2020 (before change)   Amount as at January 1, 2021 (after change)
          Report Item
                                         Consolidated           Parent company's        Consolidated           Parent company's
                                          Statements                statement            Statements                statement
Non-current assets:

Usufruct assets                                                                             38,952,103.28
Long-term              unamortized
                                              8,567,923.50                                   1,954,062.19
expenses
Total non-current assets                 65,584,936,463.61       49,231,239,643.63     65,617,274,705.58         49,231,239,643.63

Total assets                            279,217,923,628.27      239,626,991,300.20    279,250,261,870.24        239,626,991,300.20

Current liabilities:

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                                     Amount as at 31 December, 2020 (before change)        Amount as at January 1, 2021 (after change)
          Report Item
                                          Consolidated           Parent company's            Consolidated            Parent company's
                                           Statements                statement                Statements                 statement
Non-current liabilities       due
                                                                                                 22,927,889.42
within one year
Total current liabilities               158,478,718,130.74       157,595,121,705.31        158,501,646,020.16         157,595,121,705.31

Non-current liabilities:

Lease liabilities                                                                                 9,410,352.55

Total non-current liabilities              3,858,718,409.39        1,216,835,596.58           3,868,128,761.94           1,216,835,596.58

Total liabilities                       162,337,436,540.13       158,811,957,301.89        162,369,774,782.10         158,811,957,301.89
Total liabilities and owner's
                                        279,217,923,628.27       239,626,991,300.20        279,250,261,870.24         239,626,991,300.20
equity

      (2) Changes of major accounting estimates

      No.

Ⅵ Taxes

     1.     Main tax categories and tax rates

       Category                              Tax Base                                               Tax Rate
                            Added value from sales of goods or
Added-value tax                                                                                                13.00%, 9.00%, 6.00%, etc.
                            provision of labor services
Urban maintenance &
                            Payable circulation tax                                                                         7.00%, 5.00%
construction tax
Educational
                            Payable circulation tax                                                                                3.00%
surcharges
Local education
                            Payable circulation tax                                                                                2.00%
surcharge
Business income tax         Taxable income                                                34.00%, 25.00%, 20.00%, 16.50%, 15.00%, etc.

      [Note] The place of business of the Company's subsidiary Hong Kong Gree Electric Appliances Sales Limited is
Hong Kong Special Administrative Region, and the profit tax rate of Hong Kong is 16.50%; the place of business of
the Company's subsidiaries Gree (Brazil) Electric Appliances Co., Ltd. and Brazil United Electric Appliances
Industry and Commerce Co., Ltd. is Brazil, and the federal enterprise income tax rate of Brazil is 34.00%.

     2.     Tax preferences
      (1) The Company was registered in Zhuhai, Guangdong, and has been enjoying the preferential policy for the
high and new tech enterprises (High-tech Enterprise Certificate No. GR202044007307). The Company applied the
income tax rate of 15.00%, which is valid for 3 years.
      (2) Deemed to be high and new tech enterprises, the following subsidiaries of the Company applied the
enterprise income tax rate of 15.00% in 2021
No                                                                                              Time for acquiring the          Valid
                            Name of tax payer                        Certificate number
 .                                                                                                    certificate               period
                                                                                                                                 Three
 1     Zhuhai Landa Compressor Co., Ltd.                             GR202044007788                     December 9, 2020
                                                                                                                                 years
                                                                                                                                 Three
 2     Zhuhai Gree Xinyuan Electronics Co., Ltd.                     GR201944009719                    November 30, 2019
                                                                                                                                 years
                                                                   222
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No                                                                                   Time for acquiring the      Valid
                        Name of tax payer                       Certificate number
 .                                                                                         certificate           period
                                                                                                                 Three
3    Zhuhai Kaibang Motor Manufacture Co., Ltd.                 GR202144007599              December 20, 2021
                                                                                                                 years
                                                                                                                 Three
4    Zhuhai Gree Daikin Precision Mold Co., Ltd.                GR201944005454               December 2, 2019
                                                                                                                 years
                                                                                                                 Three
5    Gree Electric Appliances Appliance (Hefei) Co., Ltd        GR202034000570                 August 17, 2020
                                                                                                                 years
     Gree Green Refrigeration Technology Center Co., Ltd. of                                                     Three
6                                                               GR202044006403               December 9, 2020
     Zhuhai                                                                                                      years
                                                                                                                 Three
7    Gree (Wuhan) Electric Appliances Co., Ltd.                 GR201942003097             November 28, 2019
                                                                                                                 years
                                                                                                                 Three
8    Gree (Zhengzhou) Electric Appliances Co., Ltd.             GR202041001002              September 9, 2020
                                                                                                                 years
                                                                                                                 Three
9    Gree (Wuhu) Electric Appliances Co., Ltd.                  GR202034002197                 August 17, 2020
                                                                                                                 years
                                                                                                                 Three
10   Gree (Shi Jiazhuang) Electric Appliances Co., Ltd.         GR201913002804               December 2, 2019
                                                                                                                 years
                                                                                                                 Three
11   Zhuhai EWP Information Technology Co., Ltd.                GR201944005394               December 2, 2019
                                                                                                                 years
                                                                                                                 Three
12   Changsha Gree HVAC Equipment Co., Ltd.                     GR202043000055             September 11, 2020
                                                                                                                 years
                                                                                                                 Three
13   Zhuhai Gree Precision Mold Co., Ltd.                       GR202044007901               December 9, 2020
                                                                                                                 years
                                                                                                                 Three
14   GREE (Zhongshan) Household Appliances Co., Ltd.            GR202044011848               December 9, 2020
                                                                                                                 years
                                                                                                                 Three
15   Hefei Kinghome Electrics Co., Ltd                          GR202134001678             September 18, 2021
                                                                                                                 years
                                                                                                                 Three
16   Zhuhai Gree New Material Co., Ltd.                         GR201944009559               December 2, 2019
                                                                                                                 years
                                                                                                                 Three
17   Gree (Shijiazhuang) Small Home Appliances Co., Ltd.        GR201913002825               December 2, 2019
                                                                                                                 years
                                                                                                                 Three
18   Zhuhai Gree Dakin Device Co., Ltd.                         GR202144007849              December 20, 2021
                                                                                                                 years
                                                                                                                 Three
19   Zhuhai Gree Electormechanical Engineering Co., Ltd.         GR202044011411              December 9, 2020
                                                                                                                 years
                                                                                                                 Three
20   Gree TOSOT (Suqian) Home Appliances Co., Ltd.              GR202032012986               December 2, 2020
                                                                                                                 years
                                                                                                                 Three
21   Gree (Hangzhou) Electric Appliances Co., Ltd.              GR202033001006               December 1, 2020
                                                                                                                 years
                                                                                                                 Three
22   Hefei Landa Compressor Co., Ltd.                           GR202034001654                 August 17, 2020
                                                                                                                 years
                                                                                                                 Three
23   Zhengzhou Landa Compressor Co., Ltd.                       GR202041001848               December 4, 2020
                                                                                                                 years
                                                                                                                 Three
24   Wuhan Landa Compressor Co., Ltd.                           GR202042001716               December 1, 2020
                                                                                                                 years
                                                                                                                 Three
25   Hefei Kaibang Motor Manufacture Co., Ltd.                  GR202034002198                 August 17, 2020
                                                                                                                 years
                                                                                                                 Three
26   Henan Kaibang Motor Manufacture Co., Ltd.                  GR202041000105              September 9, 2020
                                                                                                                 years
                                                                                                                 Three
27   Gree Electric Enterprises (Ma'anshan) Ltd.                 GR202034001625                 August 17, 2020
                                                                                                                 years
                                                                                                                 Three
28   Gree Altairnano New Energy Inc.                            GR202144004177              December 20, 2021
                                                                                                                 years
                                                                                                                 Three
29   Zhuhai Guangtong Automobile Co., Ltd.                      GR202044009236               December 9, 2020
                                                                                                                 years


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No                                                                                              Time for acquiring the            Valid
                          Name of tax payer                          Certificate number
 .                                                                                                    certificate                 period
                                                                                                                                      Three
30    Zhuhai Gree Altairnano Electric Appliances, Inc.               GR202144006478                    December 20, 2021
                                                                                                                                      years
                                                                                                                                      Three
31    Chengdu Gree Titanium New Energy Inc.                          GR201951002380                    November 28, 2019
                                                                                                                                      years
                                                                                                                                      Three
32    Hebei Gree Titanium New Energy Inc.                            GR201913001838                      October 30, 2019
                                                                                                                                      years
                                                                                                                                      Three
33    Northern Aotai Nanotechnology Co., Ltd.                         GR202113001126                   September 18, 2021
                                                                                                                                      years

     (3) The following subsidiaries of the Company enjoy the country's western development policy, and applied the
income tax rate of 15.00%.

     No.                                            Name of tax payer                                                    Start time

       1           Gree (Chongqing) Electric Appliances Co., Ltd.                                                  January 1, 2008

       2           Chongqing Landa Compressor Co., Ltd.                                                            January 1, 2015

       3           Chongqing Kaibang Motor Manufacture Co., Ltd.                                                   January 1, 2013

       4           Chengdu Gree Xinhui Medical Equipment Co., Ltd.                                                  April 8, 2020

       5           Chengdu Guangtong Automobile Co., Ltd.                                                           June 13, 2017

Ⅴ Items in consolidated financial statements

     For the following note items (including notes to the main items of the parent company's financial statements),
unless otherwise specified, "the beginning of the period" means January 1, 2021, "the end of the period" means
December 31, 2021, and "the end of the previous year" means December 31, 2020, "the current year" refers to 2021,
and "the previous year" refers to 2020. Unless otherwise stated, the amount unit is Yuan.

     1.    Monetary funds

                              Item                                  Balance at the end of the period          Beginning balance

Cash on hand                                                                           1,021,935.16                             468,623.79

Bank deposits                                                                     37,248,838,390.03                      78,022,377,237.18

Other monetary capital [Note 1]                                                   36,207,001,226.17                      18,693,373,853.14

Deposits in central bank [Note 2]                                                  1,406,034,172.78                       2,039,998,699.60

Deposits in other banks                                                           38,791,111,355.15                      35,190,517,674.79

                             Subtotal                                           113,654,007,079.29                   133,946,736,088.50

Accrued interest                                                                   3,285,291,697.58                       2,466,407,771.31

                              Total                                              116,939,298,776.87                  136,413,143,859.81

Including: Total amount deposited abroad                                             341,734,386.47                         637,626,876.23

     [Note 1] The balance at the end of the period of other monetary capital refers to banks' acceptance bill deposits,
guarantee deposits, letter of credit deposits, etc., where the restricted fund was RMB 35,924,841,935.70;
     [Note 2] The statutory deposit reserve in the Company's deposits in central bank are RMB 1,403,981,413.43,
and its use is restricted;
     [Note 3] Except the above situations, there are no other funds in the end-of-period balance of monetary funds
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that have limited use and potential recovery risks due to mortgage, pledge or freezing.

     2.      Trading financial liabilities
                                                                                        Balance at the end of
                                         Item                                                                           Beginning balance
                                                                                             the period
Financial assets which are measured at their fair values and of which the changes
                                                                                                                             370,820,500.00
are included into other comprehensive income
Including: Debt instrument investment                                                                                        370,820,500.00

                                         Total                                                                               370,820,500.00


     3.      Derivative financial assets

                  Item                           Balance at the end of the period                           Beginning balance
Forward foreign exchange
                                                                          198,773,198.65                                     285,494,153.96
settlement/sale
                  Total                                                   198,773,198.65                                     285,494,153.96


     4.      Accounts receivable

      (1) Accounts receivables are disclosed by account age

                  Account age                                                Balance at the end of the period

Within 1 year                                                                                                             12,223,311,908.11

1 ~ 2 years                                                                                                                1,097,130,089.53

2 to 3 years                                                                                                                 654,718,975.22

Over 3 years                                                                                                               2,131,328,023.16

                    Subtotal                                                                                              16,106,488,996.02

Less: Bad debt provisions                                                                                                  2,265,590,193.26

                     Total                                                                                                13,840,898,802.76

      [Note] The Company's accounts receivable with the account age of over 1 year are mainly subsidy receivables
for dismantling waste electrical and electronic products and payment for new energy vehicles.

      (2) Disclosure of accounts receivable classification

                                                                        Balance at the end of the period

               Category                          Book balance                          Bad debt provision
                                                                                                                             Book value
                                                                Percentage                            Credit loss
                                             Amount                                  Amount
                                                                   (%)                                 rate (%)
Accounts receivable with bad debt
                                           1,293,262,223.96           8.03      1,029,353,603.16                79.59        263,908,620.80
provisions accrued separately
Accounts receivable with bad debt
provisions accrued according to           14,813,226,772.06         91.97       1,236,236,590.10                 8.35     13,576,990,181.96
the combination
Including:        account        age
                                          12,433,046,350.06         77.19       1,041,853,417.60                 8.38     11,391,192,932.46
combination
          Low risk combination             2,380,180,422.00         14.78           194,383,172.50               8.17      2,185,797,249.50


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                                                                          Balance at the end of the period

                Category                           Book balance                         Bad debt provision
                                                                                                                                  Book value
                                                                  Percentage                              Credit loss
                                              Amount                                 Amount
                                                                     (%)                                   rate (%)
                 Total                    16,106,488,996.02          100.00       2,265,590,193.26               14.07         13,840,898,802.76

      (Continued)

                                                                                Beginning balance

                Category                        Book balance                           Bad debt provision
                                                                                                                                  Book value
                                                             Percentage                               Credit loss rate
                                           Amount                                 Amount
                                                                (%)                                        (%)
Accounts receivable with bad debt
                                         125,518,248.51              1.32       125,518,248.51                  100.00
provisions accrued separately
Accounts receivable with bad debt
provisions accrued according to the    9,365,829,735.59             98.68       627,598,830.15                    6.70          8,738,230,905.44
combination
Including: account age
                                       7,773,779,870.59             81.91       484,681,830.93                    6.23          7,289,098,039.66
combination
        Low risk combination           1,592,049,865.00             16.77       142,916,999.22                    8.98          1,449,132,865.78

                 Total                 9,491,347,984.10            100.00       753,117,078.66                    7.93          8,738,230,905.44

      1) Accounts receivable for which bad debt reserves are accrued individually:

                                                                   Balance at the end of the period
         Name
                                                                                                                               Reason for
                               Book balance               Bad debt provision            Credit loss rate (%)
                                                                                                                              appropriation
                                                                                                                         It is expected to be
43 units in total                1,293,262,223.96             1,029,353,603.16                               79.59       difficult to recover in
                                                                                                                         full
         Total                   1,293,262,223.96             1,029,353,603.16                               79.59

      2) In the combination, the accounts receivable with bad debt provisions accrued by account age combination:

    Account age                     Book balance                          Bad debt provision                      Credit loss rate (%)

Within 1 year                            11,116,991,920.25                           555,849,596.19                                            5.00

1 ~ 2 years                                 475,779,000.79                            86,302,607.06                                          18.14

2 to 3 years                                223,686,004.19                            62,249,391.62                                          27.83

Over 3 years                                616,589,424.83                           337,451,822.73                                          54.73

        Total                            12,433,046,350.06                         1,041,853,417.60                                            8.38

      [Note] The changes in the expected credit loss rate of aging combination in this period are caused by the
company combination not under the same control.
           3) In the combination, the accounts receivable with bad debt provisions accrued by low risk combination

                                                                     Balance at the end of the period
          Name
                                        Book balance                        Bad debt provision                       Credit loss rate (%)

Low risk combination                           2,380,180,422.00                       194,383,172.50                                           8.17

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                                                                           Balance at the end of the period
             Name
                                               Book balance                       Bad debt provision                    Credit loss rate (%)

              Total                                  2,380,180,422.00                       194,383,172.50                                     8.17

        (3) Changes in the bad-debt provision in this period

                                                                     Change of the current period
                        Beginning                                                                                               Balance at the end
  Category                                Changes in the
                         balance                                                       Recovered or                               of the period
                                             scope of            Appropriation                                Wrote-off
                                                                                         reversed
                                           combination
Single
                      125,518,248.51           906,365,112.59                           2,529,757.94                              1,029,353,603.16
accrual
Account age
                      484,681,830.93           406,611,041.33    150,772,299.04                                  211,753.70       1,041,853,417.60
combination
Low risk
                      142,916,999.22            28,462,574.33        23,003,598.95                                                  194,383,172.50
combination
    Total             753,117,078.66      1,341,438,728.25       173,775,897.99         2,529,757.94             211,753.70       2,265,590,193.26

        [Note] There was no significant recovery or reversal of bad debt provisions during the current period.

        (4) Particulars on accounts receivable actually wrote-off in the current period

                                       Item                                                                 Wrote-off amount

6 units in total                                                                                                                        211,753.70

                                       Total                                                                                            211,753.70

        (5) Accounts receivable of top 5 debtors in the balance at the end of the period collected by the debtor

                                                                          Percentage (%) in the total
                                Balance at the end of the period                                              Balance of provision for bad debts at
        Name of entity                                                  balance at the end of the period
                                    of accounts receivable                                                           the end of the period
                                                                            of accounts receivable
First                                             1,610,790,135.00                                  10.00                           165,143,601.52

Second                                            1,099,252,494.86                                   6.82                            54,962,624.56

Third                                              769,390,287.00                                    4.78                            29,239,570.98

Fourth                                             497,718,000.00                                    3.09                            24,885,900.00

Fifth                                              368,451,389.27                                    2.29                            18,422,569.45

              Total                               4,345,602,306.13                                  26.98                           292,654,266.51

        (6) Accounts receivable derecognized due to the transfer of financial assets

        No.

        (7) Assets and liabilities formed due to the transfer and continuous involvement of accounts receivable

        No.

        5.    Receivable financing

        (1) Receivables financing classified and listed


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                                                                                  Balance at the end of the
                                 Item                                                                                    Beginning balance
                                                                                          period
Notes receivable measured at fair value

Including: Bank acceptance bills                                                           25,612,056,693.07                  20,972,269,154.21

          Including: Notes accepted by Gree Finance Company                                   804,781,351.78                   1,105,774,342.96

          Commercial acceptance bill                                                                                               1,135,441.28

                                 Total                                                     25,612,056,693.07                  20,973,404,595.49

      (2) Receivables financing pledged by the Company at the end of the period

                             Item                                                      Pledged amount at the end of the period

Bank acceptance bills                                                                                                         12,911,461,792.08

                             Total                                                                                            12,911,461,792.08

      (3) Receivables financing that has been endorsed or discounted by the Company at the end of the period but
      not yet due at the balance sheet date

                                                          Amount whose recognition is              Amount whose recognition is not terminated
                      Item
                                                       terminated at the end of the period                 at the end of the period
Bank acceptance bills                                                     23,818,750,252.14                                      840,000,000.00

Commercial acceptance bill                                                                                                        12,128,009.63

                     Total                                                23,818,750,252.14                                      852,128,009.63

      (4) Receivables financing transferred by the Company into accounts receivable due to the note issuer's failure
      of performance

      No.

      (5) Receivables financing actually wrote off in the current period

      No.

     6.      Advance payments

               (1) The prepayments are listed by account age as follows

                                     Balance at the end of the period                                     Beginning balance
  Account age
                                 Amount                       Percentage (%)                       Amount                     Percentage (%)

Within 1 year                         4,500,793,847.23                         98.02                 3,103,519,802.42                        99.18

1 ~ 2 years                              21,906,080.13                          0.48                    17,658,164.08                         0.56

2 to 3 years                             24,927,433.26                          0.54                      5,665,338.67                        0.18

Over 3 years                             44,259,156.72                          0.96                      2,358,698.07                        0.08

      Total                           4,591,886,517.34                        100.00                 3,129,202,003.24                    100.00
      [Note] The changes in the age structure of advance payment in this period are caused by business combination
not under the same control.

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     (2) Advance payment aged over one year and significant amount in this period

     No.

     (3) Prepayments of top 5 prepayment objects in the balance at the end of the period collected by the
prepayment object

     The aggregate balance amount of prepayments of top 5 suppliers in the balance at the end of the period collected
by the supplier was RMB 2,496,164,550.08, accounting for 54.36% of the total balance of prepayments at the end of
the period.

    7.     Other receivables

                Item                           Balance at the end of the period                         Beginning balance

Dividends receivable                                                       615,115.33

Other receivables [Note 1]                                             333,546,754.85                                    147,338,547.86

                Total                                                  334,161,870.18                                    147,338,547.86

     [Note 1] Other receivables in the table above refer to other receivables after deduction of interest receivables and
dividends receivable;
     [Note 2] The Company has no interest receivable balance at the end and the beginning of the period.

     (1) Dividends receivable

         1) Classification of dividends receivable

                                                      Balance at the end of the
                        Item                                                                         Beginning balance
                                                              period
 Dividends receivable                                                  615,115.33

                        Total                                          615,115.33

         2) Significant dividends receivable aged over 1 year

     No.

     (2) Other receivables

         1) Other receivables classified by nature

                                                      Balance at the end of the
                 Nature of money                                                                     Beginning balance
                                                              period
Current and low-risk payments                                     487,589,373.01                                         165,954,624.87

Less: Bad debt provisions                                         154,042,618.16                                          18,616,077.01

                        Total                                     333,546,754.85                                         147,338,547.86

         2) Accrual of bad debt reserves

                                     Phase I                    Phase 2                           Phase 3
     Bad debt provision          Expected credit      Expected credit loss for the      Expected credit loss for the         Total
                                losses in the next     entire duration (no credit         entire duration (credit
                                   12 months            impairment occurred)              impairment occurred)

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                                           Phase I                    Phase 2                           Phase 3
      Bad debt provision             Expected credit        Expected credit loss for the      Expected credit loss for the         Total
                                    losses in the next       entire duration (no credit         entire duration (credit
                                       12 months              impairment occurred)              impairment occurred)
Balance as at January 1, 2021              7,377,897.43                                                     11,238,179.58      18,616,077.01
Changes in the scope of
                                           6,744,383.37                                                    124,278,371.61     131,022,754.98
combination in this period
Appropriation for the current
                                                                                                              7,620,570.28       7,620,570.28
period
Reserved in the current
                                           3,158,127.91                                                                          3,158,127.91
period
Wrote-off in the current
                                              36,392.38                                                           22,263.82         58,656.20
period
Balance on December 31,
                                          10,927,760.51                                                    143,114,857.65     154,042,618.16
2021

        3) Disclosure by aging

                              Account age                                                              Book balance

Within 1 year                                                                                                                 223,370,210.02

1 ~ 2 years                                                                                                                    66,464,345.41

2 to 3 years                                                                                                                   95,316,990.94

Over 3 years                                                                                                                  102,437,826.64

                                 Subtotal                                                                                     487,589,373.01

Less: Bad debt provisions                                                                                                     154,042,618.16

                                  Total                                                                                       333,546,754.85

         4) Bad debt reserves accrued, recovered or reversed in the current period

                                                                    Change of the current period
                                                                                                                        Balance at the end of
     Category             Beginning balance
                                                     Changes in the scope                                                    the period
                                                                                Accrual/reversal       Wrote-off
                                                       of combination
Single accrual                                              73,373,158.79           2,527,264.75                               75,900,423.54
Account age
                                17,944,577.01               57,649,596.19           2,547,427.62          58,656.20            78,082,944.62
combination
Low risk
                                  671,500.00                                         -612,250.00                                    59,250.00
combination
       Total                    18,616,077.01              131,022,754.98           4,462,442.37          58,656.20           154,042,618.16

      [Note] There is no significant recovery or reversal of bad debt provisions during the current period.

        5) Other receivables actually wrote off in the current period

                                  Item                                                               Wrote-off amount

4 units in total                                                                                                                    58,656.20

      [Note] There was no significant writing-off of other receivables during the current period.

        6) Other receivables of top 5 debtors in the balance at the end of the period collected by the debtor


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                                                                                             Proportion to the total          Balance of
                             Nature of       Balance at the                                     balance of other           provision for bad
   Name of entity                                                    Account age
                              money         end of the period                               receivables at the end of      debts at the end of
                                                                                                 the period (%)                the period
                           Intercourse
First                                         77,016,600.00     2 to 3 years                                    15.80          19,255,186.18
                           funds
                           Intercourse                          1 to 3 years, 3 years
Second                                        40,312,312.68                                                       8.27         40,312,312.68
                           funds                                or more
                           Intercourse
Third                                         36,017,222.73     Within 1 year                                     7.39          1,800,861.14
                           funds
                           Intercourse
Fourth                                        23,019,791.78     Over 3 years                                      4.72         23,019,791.78
                           funds
                           Intercourse
Fifth                                         20,050,000.00     Within 1 year                                     4.11          1,002,500.00
                           funds
             Total                           196,415,927.19                                                     40.29          85,390,651.78

             7) Receivables involving government subsidies

        No.

             8) Other receivables derecognized due to the transfer of financial assets

        No.

             9) Assets and liabilities formed due to the transfer and continuous involvement of other receivables

        No.

        8.     Inventory

        (1) Classification of inventories

                                                                       Balance at the end of the period
                                                                             Inventory depreciation
                 Item                                                              provision or
                                             Book balance                                                               Book value
                                                                           provision for impairment of
                                                                            contract performance cost
Raw material                                     11,013,706,175.31                       844,318,692.51                   10,169,387,482.80
Goods in process and contract
                                                  1,974,184,596.76                                                          1,974,184,596.76
performance cost
Finished goods                                   27,845,565,162.22                      1,296,652,950.63                  26,548,912,211.59

Development cost                                  4,073,114,036.86                                                          4,073,114,036.86

                 Total                           44,906,569,971.15                      2,140,971,643.14                  42,765,598,328.01

        (Continued)

                                                                                Beginning balance
                                                                             Falling price reserve of
                 Item
                                                                            inventory or impairment
                                             Book balance                                                               Book value
                                                                              reserves of contract
                                                                                performance cost
Raw material                                      8,959,268,217.85                       388,954,526.10                     8,570,313,691.75
Goods in process and contract
                                                  2,046,139,363.33                                                          2,046,139,363.33
performance cost

                                                                     231
                                            2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                                  Beginning balance
                                                                               Falling price reserve of
               Item
                                                                              inventory or impairment
                                                Book balance                                                               Book value
                                                                                reserves of contract
                                                                                  performance cost
Finished goods                                     15,761,579,871.16                         108,259,680.25                    15,653,320,190.91

Development cost                                    1,609,731,913.40                                                             1,609,731,913.40

               Total                               28,376,719,365.74                         497,214,206.35                    27,879,505,159.39

      (2) Provision for the loss on decline in value of inventories

                                                                         Increased amount in      Decreased amount in
                                                    Increase in the       the current period       the current period        Balance at the end
      Item               Beginning balance
                                                  combination scope                                                            of the period
                                                                             Appropriation          Write-off amount

Raw material                 388,954,526.10          450,926,043.68           120,560,679.83              116,122,557.10          844,318,692.51

Finished goods               108,259,680.25          866,222,164.30           349,919,336.20               27,748,230.12         1,296,652,950.63

      Total                  497,214,206.35         1,317,148,207.98          470,480,016.03              143,870,787.22         2,140,971,643.14

      Specific bases for making a provision for decline in value of inventories and reasons of reversing or writing off
the provision for decline in value of inventories in the current period:

                            Specific basis for making a provision for decline in value of         Writing off the provision for decline in value
      Item
                                                    inventories                                        of inventories in the current period

Raw material           The lower of the inventory cost and net realizable value                   Applied for or sold in the current period

Finished goods         The lower of the inventory cost and net realizable value                   Sold in the current period

      (3) The inventory balance at the end of the period did contain capitalized amounts of borrowing costs

      No.

      (4) Amortization amount of the current period of contract performance cost: The amortized contract
performance cost in the current period is 109,805,808.67 yuan.

     9.      Contract assets

      (1) Contract assets are disclosed by account age

                              Account age                                                     Balance at the end of the period

Within 1 year                                                                                                                     417,335,707.89

1 ~ 2 years                                                                                                                       279,122,410.83

2 to 3 years                                                                                                                      368,013,139.80

Over 3 years                                                                                                                      480,647,482.82

                                 Subtotal                                                                                        1,545,118,741.34

Less: provision for impairment                                                                                                    393,890,268.71

                                  Total                                                                                          1,151,228,472.63

      (2) Contract assets are disclosed by category
                                                                       232
                                        2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                Balance at the end of the period                                       Beginning balance
    Item
                                         Provision for                                                   Provision for
                   Book balance                                Book value           Book balance                              Book value
                                          impairment                                                      impairment
Account age
                    721,024,117.34       115,256,697.58        605,767,419.76        91,786,834.71        13,241,309.11       78,545,525.60
combination
Low     risk
                    824,094,624.00       278,633,571.13        545,461,052.87
combination
   Total           1,545,118,741.34      393,890,268.71      1,151,228,472.63        91,786,834.71        13,241,309.11       78,545,525.60

     (3) Particulars on impairment provisions accrued for contract assets in the current period:

                                                           Increase in the        Appropriation for      Reserved in the     Balance at the
           Item               Beginning balance
                                                         combination scope        the current period     current period     end of the period
Low risk combination                                          279,915,098.02                                1,281,526.89     278,633,571.13
Account age
                                   13,241,309.11               72,146,394.86          29,868,993.61                          115,256,697.58
combination
           Total                   13,241,309.11              352,061,492.88          29,868,993.61         1,281,526.89     393,890,268.71


     10. Non-current assets due within one year

                      Item                            Balance at the end of the period           Beginning balance              Remark

Other debt investments due within one year                            10,860,197,639.98

Long-term receivables due within one year                                     3,406,416.52

                    Subtotal                                          10,863,604,056.50
Accrued interest of other debt investments due
                                                                           169,967,876.10
within one year
                     Total                                            11,033,571,932.60


     11. Other current assets

                      Item                            Balance at the end of the period                      Beginning balance

Monetary investment products                                           5,460,000,000.00                                     8,274,000,000.00

Input tax to be deducted and prepaid tax                               2,786,329,636.97                                     2,532,692,156.12
Notes which have been endorsed or discounted
                                                                           852,128,009.63                                   4,588,589,780.94
but not yet due
Others                                                                     282,434,079.34                                    104,308,689.13

                    Subtotal                                           9,380,891,725.94                                    15,499,590,626.19

Add: Accrued interests                                                       21,626,670.32                                    117,711,287.68
Less: Preparation for impairment of other
                                                                             20,340,809.19
mobile assets
                      Total                                            9,382,177,587.07                                    15,617,301,913.87


     12. Disbursement of loans statements and advances

     (1) Distribution of enterprises and individuals

                      Item                            Balance at the end of the period                      Beginning balance


                                                                     233
                                       2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                       Item                             Balance at the end of the period                    Beginning balance
Disbursement of loans statements and
advances measured at amortized costs:
Disbursement of corporate loans and advances                             4,247,674,817.07                                  5,403,251,177.80

Including: (1) Loan                                                      1,052,040,000.00                                  3,857,680,000.00

      (2) Discount                                                       3,195,634,817.07                                  1,545,571,177.80
             Including: discount asset interest
                                                                            -31,355,182.93                                      -7,547,171.66
adjustment
Less: loan loss provision                                                   106,975,750.00                                    135,269,958.74

     Including: combined appropriation                                      106,975,750.00                                    135,269,958.74

                     Subtotal                                            4,140,699,067.07                                  5,267,981,219.06

Accrued interest                                                              1,953,834.78                                       5,824,362.46
Book value of disbursement of corporate loans
                                                                         4,142,652,901.85                                  5,273,805,581.52
and advances

     (2) Changes in loss provision for loans

                       Item                             Balance at the end of the period                    Beginning balance
Disbursement of loans statements             and
advances measured at amortized costs:
Beginning balance                                                           135,269,958.74                                    369,304,393.78

Appropriation for the current period                                        -28,294,208.74                                    -234,034,435.04

Balance at the end of the period                                            106,975,750.00                                    135,269,958.74


     13. Other debt investments

     (1) Particulars on other debt investments

                                                                                Balance at the end of the period
                                                                                                                                Accumulated
                                                                                                                                     loss
                     Items                                                                                                        provisions
                                                                        Accrued              Fair value
                                                        Cost                                                  Book value        recognized in
                                                                        interest              changes
                                                                                                                                    other
                                                                                                                                comprehensi
                                                                                                                                  ve income
Treasuries                                         294,120,614.59      3,378,082.20          7,448,985.41    304,947,682.20

Corporate bonds                                    469,153,368.80      6,880,882.18          7,002,641.18    483,036,892.16
                                                   17,100,000,000.    354,467,166.6                         17,454,467,166.
Transferable certificate of deposit [Note]
                                                                00                7                                      67
                                                   17,863,273,983.    364,726,131.0                         18,242,451,741.
                   Subtotal                                                                14,451,626.59
                                                                39                5                                      03
Less: Other debt investment due within one         10,859,752,569.    169,967,876.1                         11,030,165,516.
                                                                                               445,070.72
                   year                                         26                0                                      08
                                                   1,300,000,000.0                                          1,302,229,333.3
Less: Other current assets                                             2,229,333.33
                                                                 0                                                        3
                                                   5,703,521,414.1    192,528,921.6                         5,910,056,891.6
                     Total                                                                 14,006,555.87
                                                                 3                2                                       2

     (Continued)
                                                                      234
                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                             Beginning balance

                                                                                                                             Accumulated loss
                                                                                                                                 provisions
             Item                                                                                                              recognized in
                                       Cost            Accrued interest      Fair value changes          Book value
                                                                                                                                   other
                                                                                                                              comprehensive
                                                                                                                                  income

Treasuries                          292,922,755.76          3,378,082.20             2,565,844.24        298,866,682.20

Corporate bonds                     199,243,635.63          1,890,410.97             2,201,564.37        203,335,610.97

             Total                  492,166,391.39          5,268,493.17             4,767,408.61        502,202,293.17

      [Note] The transferable certificate of deposit held by the Company is classified as financial assets measured at
fair value and whose changes are included in other comprehensive income according to the management's intention
and the cash flow of contract, and listed as other debt investment, other mobile assets, and non-current assets due
within one year according to its liquidity. On December 31, 2021, there was no significant difference between the
cost of the Company's transferable certificate of deposit and fair value.

      (2) Important debt investment

                                      Balance at the end of the period                                     Beginning balance
                                                                                                                            Real
   Other debt items                                            Real                                          Coupon
                                               Coupon                                                                     interest
                            Face value                       interest      Date due         Face value        rate                    Date due
                                               rate (%)                                                                     rate
                                                             rate (%)                                         (%)
                                                                                                                            (%)
16. Interest-bearing                                                       August 4,                                                  August 4,
                            200,000,000.00           2.74        3.10                     200,000,000.00        2.74         3.10
treasuries 17                                                                 2026                                                       2026
16. Interest-bearing                                                       August 4,                                                  August 4,
                            100,000,000.00           2.74        3.44                     100,000,000.00        2.74         3.44
treasuries 17                                                                 2026                                                       2026
                                                                           September                                                 September
20 Nongfa 08                200,000,000.00           3.45        3.54                     200,000,000.00        3.45         3.54
                                                                            23, 2025                                                  23, 2025
19 Huafa Group                                                             December
                             50,000,000.00           4.57        5.00
MTN007                                                                       6, 2022
19 Huafa Group                                                             December
                             10,000,000.00           4.57        5.10
MTN007                                                                       6, 2022
19 Huafa Group                                                             December
                             10,000,000.00           5.30        5.31
MTN008B                                                                     11, 2024
21 Huafa Group                                                              June 28,
                            200,000,000.00           4.65        4.65
MTN007                                                                         2024
                                                                              January
Transferable                                                              14, 2022 to
                         17,100,000,000.00    3.35-4.18     3.35-4.18
certificate of deposit                                                     December
                                                                              9, 2024
         Total           17,870,000,000.00                                                500,000,000.00


     14. Long-term receivables

                                                                                     Balance at the end of the period
                         Item
                                                               Book balance                Bad debt provision                 Book value

Goods sold on installment                                          38,157,391.25                    20,340,809.19                17,816,582.06

Less: Unrealized financing income                                       844,248.07                                                   844,248.07



                                                                  235
                                      2021 Annual Report of GREE ELECTRIC APPLIANCES, INC. OF ZHUHAI.Annual Report 2021

                                                                             Balance at the end of the period
                          Item
                                                          Book balance             Bad debt provision           Book value

Less: Long-term account receivable due within one year        3,406,416.52                                         3,406,416.52

Less: Reclassified to other mobile assets                    31,487,695.59                  20,340,809.19         11,146,886.40

                         Total                                2,419,031.07                                         2,419,031.07




                                                             236
     15. Long-term equity investments

                                            Beginning balance                                   Increase/Decrease in the current period                          Balance at the end of the period
                                                                                                            Investment
                                                                                                             gains and       Adjustment of     Declaration and
      Name of invested entities                                          Changes in the                        losses
                                                         Provision for                     Decreased                              other        distribution of                       Provision for
                                       Original value                       scope of                        recognized                                           Original value
                                                          impairment                       investment                        comprehensive     cash dividends                         impairment
                                                                          combination
                                                                                                           under equity         incomes           or profits
                                                                                                                law
I. Joint venture
Six companies including Songyuan
Grain Group Jiangwan Rice Industry                                         1,145,000.00                        75,914.19                                             1,220,914.19
Co., Ltd. [Note]
                 Subtotal                                                  1,145,000.00                        75,914.19                                             1,220,914.19

Ⅱ. Associates
Gree (Vietnam) Electric Appliances,
                                         1,940,009.35    1,940,009.35                                                                                                1,940,009.35    1,940,009.35
Inc.
Liaowang All Media Communication
                                        36,052,960.09                                                       1,332,591.91                                           37,385,552.00
Co., Ltd.
Beijing Gree Technology Co., Ltd.        2,294,251.09                                                        -237,069.32                         2,057,181.77
Chongqing Pargo Mechanical
                                        11,249,230.03                                     13,498,800.00     2,249,569.97
Equipment Co., Ltd.
Wuhan Digital Design and
Manufacturing Innovation Center         14,729,087.92                                                        212,951.68                                            14,942,039.60
Co., Ltd.
Hunan Guoxin Semiconductor
                                        20,099,845.47                                                          13,817.45                           108,922.33      20,004,740.59
Technology Co., Ltd.
Zhuhai Ronglin Equity Investment
                                      7,061,709,059.56                                                    -18,046,764.90    1,849,833,156.32                     8,893,495,450.98
Partnership (Limited Partnership)
Henan Yuze Finance Leasing Co.,
                                        51,286,191.75                                                       1,569,732.71                         1,106,576.00      51,749,348.46
Ltd.
Zhuhai Hanling Equity Investment
                                       922,420,436.23                                                     53,187,718.56                         55,127,991.72     920,480,163.07
Partnership (Limited Partnership)

                                                                                              237
                                         Beginning balance                                   Increase/Decrease in the current period                           Balance at the end of the period
                                                                                                         Investment
                                                                                                          gains and       Adjustment of     Declaration and
      Name of invested entities                                       Changes in the                        losses
                                                      Provision for                     Decreased                              other        distribution of                        Provision for
                                    Original value                       scope of                        recognized                                            Original value
                                                       impairment                       investment                        comprehensive     cash dividends                          impairment
                                                                       combination
                                                                                                        under equity         incomes           or profits
                                                                                                             law
Lanzhou Guangtong New Energy
                                                                      101,054,678.56                     8,076,320.55         -685,328.00                       108,445,671.11
Automobile Co., Ltd.
Guizhou Qianzhixing New Energy
                                                                        2,682,419.83                        92,796.23                                              2,775,216.06
Co., Ltd.
Ningxia Nenggu New Energy
                                                                         443,125.41                        -99,262.34                                                343,863.07
Technology Co., Ltd.
Eocell Limited                                                          7,284,782.90                    -2,144,270.51                                              5,140,512.39
Beijing Liyin Automobile
                                                                        4,605,056.55                                                                               4,605,056.55
Technology Co., Ltd.
Sichuan Jinshi Leasing Co., Ltd.                                      271,108,603.86                     5,310,882.64                                           276,419,486.50

              Subtotal             8,121,781,071.49   1,940,009.35    387,178,667.11   13,498,800.00   51,519,014.63     1,849,147,828.32    58,400,671.82    10,337,727,109.73    1,940,009.35

                 Total             8,121,781,071.49   1,940,009.35    388,323,667.11   13,498,800.00   51,594,928.82     1,849,147,828.32    58,400,671.82    10,338,948,023.92    1,940,009.35

     [Note] For the disposal of 6 companies including Songyuan Grain Group Jiangwan Rice Industry Co., Ltd., please refer to Note VI. 4 "Disposal of subsidiaries".




                                                                                           238
     16. Other equity instruments investments

     (1) Particulars on other equity instrument investments

                     Item                           Balance at the end of the period                   Beginning balance

Shanghai Highly (Group) Co., Ltd.                                       755,079,703.46                                 667,802,216.81

Xinjiang Joinworld Company Limited                                      217,422,947.74                                 215,172,336.36

Wingtech Technology Co., Ltd. [Note 1]                                 4,636,568,053.50                               3,550,040,505.00

RSMACALLINE-HSHS                                                        195,769,835.63                                 254,461,858.93

San'an Optoelectronics Co., Ltd. [Note 2]                              4,302,405,489.72                               3,093,928,974.37
COFCO Trading (Suibin) Agricultural
                                                                           7,000,000.00                                  7,000,000.00
Development Co., Ltd.
                    Total                                             10,114,246,030.05                               7,788,405,891.47

     [Note 1] The Company directly holds 35,858,995 shares of Wingtech Technology Co., Ltd., and the sale of such
shares is restricted for 36 months from October 2019.
     [Note 2] The Company directly holds 114,547,537 shares of San'an Optoelectronics Co., Ltd., and the sale of
such shares is restricted for 36 months from June 2020.

     (2) Particulars on non-trading equity instrument investment

                                                                                                                       Reason for the
                                                                                                                           amount
                                                                                       Other                             transferred
                                                                                  comprehensive        Reason for        from other
                                                                                      income        designation as     comprehensive
                              Dividend
                                             Accumulated         Cumulative                           at fair value     income into
      Item Name                income                                                 Amount
                                                gains              losses                            through other         retained
                             recognized                                            transferred to   comprehensive          earnings
                                                                                      retained           income
                                                                                      earnings



                                                                                                    According to
                                                                                                    the
Shanghai          Highly                                                                            management's
                            14,411,825.47                      386,430,427.61
(Group) Co., Ltd.                                                                                   intention and
                                                                                                    contractual
                                                                                                    cash flow
                                                                                                    According to
                                                                                                    the
                                                                                                    management's
RSMACALLINE-HSHS                                               444,254,984.68
                                                                                                    intention and
                                                                                                    contractual
                                                                                                    cash flow
                                                                                                    According to
                                                                                                    the
Wingtech Technology                                                                                 management's
                             5,916,734.18   3,751,568,056.90
Co., Ltd.                                                                                           intention and
                                                                                                    contractual
                                                                                                    cash flow
                                                                                                    According to
Xinjiang    Joinworld                                                                               the                Sales of some
                             3,918,701.49    105,586,941.75                      114,949,817.60
Company Limited                                                                                     management's       stocks
                                                                                                    intention and
                                                                239
                                                                                                                          Reason for the
                                                                                                                              amount
                                                                                         Other                              transferred
                                                                                    comprehensive        Reason for         from other
                                                                                        income        designation as      comprehensive
                               Dividend
                                                 Accumulated        Cumulative                          at fair value      income into
       Item Name                income                                                  Amount
                                                    gains             losses                           through other          retained
                              recognized                                             transferred to   comprehensive           earnings
                                                                                        retained           income
                                                                                        earnings


                                                                                                      contractual
                                                                                                      cash flow
                                                                                                      According to
                                                                                                      the
San'an Optoelectronics                                                                                management's
                            17,182,130.55      2,302,405,489.72
Co., Ltd.                                                                                             intention and
                                                                                                      contractual
                                                                                                      cash flow
                                                                                                      According to
                                                                                                      the
COFCO Trading
                                                                                                      management's
(Suibin) Agricultural        1,448,000.00
                                                                                                      intention and
Development Co., Ltd.
                                                                                                      contractual
                                                                                                      cash flow
          Total             42,877,391.69      6,159,560,488.37   830,685,412.29    114,949,817.60


     17. Other non-current financial assets
                                                                                   Balance at the end of the
                                       Item                                                                         Beginning balance
                                                                                           period
Financial assets which are measured at their fair values and of which the
                                                                                              81,309,327.39             2,003,483,333.33
changes are included into other comprehensive income
                                       Total                                                  81,309,327.39             2,003,483,333.33


     18. Investment real estate

     Investment real estate using cost measurement model

                                       Item                                         Houses and buildings                  Total

I. Total of original carrying amount

     1. Beginning balance                                                                    706,658,435.30               706,658,435.30

     2. Increased amount in current period                                                    67,357,852.46                67,357,852.46

     Including: Transfer-in from construction in progress                                       3,856,543.64                3,856,543.64

               Business combination increase                                                  63,501,308.82                63,501,308.82

     3. Amount decreased in the current period

     4. Ending balance                                                                       774,016,287.76               774,016,287.76

II. Accumulated depreciation and accumulated amortization

     1. Beginning balance                                                                    243,237,573.91               243,237,573.91

     2. Increased amount in current period                                                    75,923,891.22                75,923,891.22


                                                                   240
                                     Item                             Houses and buildings          Total

     Including: appropriation or amortization                                  42,857,231.40         42,857,231.40

               Business combination increase                                   33,066,659.82         33,066,659.82

     3. Amount decreased in the current period

     4. Ending balance                                                        319,161,465.13        319,161,465.13

III. Provision for impairment

IV. Carrying amount

     1. Book value at the end of the period                                   454,854,822.63        454,854,822.63

     2. Book value at the beginning of the period                             463,420,861.39        463,420,861.39

     [Note] As of December 31, 2021, the book value of investment real estate - houses and buildings of which the
Company has not obtained the property ownership certificates was RMB 46,525,035.59.




                                                       241
     19. Fixed assets

                      Item                                           Balance at the end of the period                                              Beginning balance

Fixed assets [Note]                                                                                     31,183,285,286.03                                              18,983,485,128.88

Fixed assets in liquidation                                                                                  5,440,856.96                                                   7,039,959.06

                      Total                                                                             31,188,726,142.99                                              18,990,525,087.94
      [Note] The fixed assets in the table above refer to the fixed assets after deduction of the fixed assets in liquidation.

      (1) Information of fixed assets

                                                                                                        Transportation
                      Item                        Houses and buildings    Machinery equipment                               Electronic equipment   Other equipment        Total
                                                                                                          equipment
I. Total of original carrying amount:

  1. Beginning balance                               17,304,790,191.65         16,739,570,987.42         1,168,546,991.86       1,696,626,020.86      502,623,927.59   37,412,158,119.38

  2. Increased amount in current period                9,710,894,812.73         8,246,492,826.56           180,145,760.74         450,112,870.37      280,075,404.66   18,867,721,675.06

     Including: (1) Purchase                               4,453,637.33           929,053,433.28            62,106,561.69         287,036,850.51       83,056,784.42    1,365,707,267.23
    (2) Transfer-in from construction in
                                                       3,977,111,042.23           460,072,431.30                                                                        4,437,183,473.53
progress
           (3) Increase by business combination        5,729,330,133.17         6,857,366,961.98           118,039,199.05         163,076,019.86      197,018,620.24   13,064,830,934.30

  3. Decreased amount in current period                                           130,197,050.73            19,918,270.13          18,282,517.97        8,397,536.00     176,795,374.83

     Including: Disposal or scrapping                                             130,197,050.73            19,918,270.13          18,282,517.97        8,397,536.00     176,795,374.83
   4. Difference arising from translation of
                                                          -9,510,888.19             -4,391,313.92             -195,041.33            -262,606.71         -167,273.80      -14,527,123.95
financial statements in foreign currency
  5. Ending balance                                   27,006,174,116.19        24,851,475,449.33         1,328,579,441.14       2,128,193,766.55      774,134,522.45   56,088,557,295.66

II. Accumulated depreciation

  1. Beginning balance                                 5,471,702,676.23        10,176,319,528.39           862,969,705.20       1,522,777,567.14      378,141,308.28   18,411,910,785.24

  2. Increased amount in current period                1,971,102,824.69         3,835,185,358.72           240,475,124.77         351,525,719.45      218,242,927.57    6,616,531,955.20

                                                                                               242
                                                                                                Transportation
                      Item                      Houses and buildings    Machinery equipment                         Electronic equipment   Other equipment          Total
                                                                                                  equipment
     Including: (1) Appropriation                    1,021,472,481.42       1,903,203,855.74      156,246,465.72          235,321,835.34      87,378,510.22       3,403,623,148.44

           (2) Business combination increased         949,630,343.27        1,931,981,502.98        84,228,659.05         116,203,884.11     130,864,417.35       3,212,908,806.76

  3. Decreased amount in current period                                        96,268,974.60        18,383,962.97          16,965,952.05       4,983,671.65        136,602,561.27

     Including: Disposal or scrapping                                          96,268,974.60        18,383,962.97          16,965,952.05       4,983,671.65        136,602,561.27
   4. Difference arising from translation of
                                                          -600,096.15           -2,168,714.12         -124,183.41            -133,129.70          -78,543.50         -3,104,666.88
financial statements in foreign currency
  5. Ending balance                                  7,442,205,404.77      13,913,067,198.39     1,084,936,683.59       1,857,204,204.84     591,322,020.70      24,888,735,512.29

III. Provision for impairment

  1. Beginning balance                                  13,788,472.27           2,694,962.53             8,282.39             131,160.63         139,327.44         16,762,205.26

  2. Increased amount in current period

  3. Decreased amount in current period                                            34,136.43             8,282.39              95,587.13                     -         138,005.95

     Including: Disposal or scrapping                                              34,136.43             8,282.39              95,587.13                     -         138,005.95
   4. Difference arising from translation of
                                                                                  -87,701.97                                                                            -87,701.97
financial statements in foreign currency
  5. Ending balance                                     13,788,472.27           2,573,124.13                                   35,573.50         139,327.44         16,536,497.34

IV. Carrying amount

  1. Ending book value                             19,550,180,239.15       10,935,835,126.81      243,642,757.55          270,953,988.21     182,673,174.31      31,183,285,286.03

  2. Beginning book value                           11,819,299,043.15       6,560,556,496.50      305,569,004.27          173,717,293.09     124,343,291.87      18,983,485,128.88
      [Note] As of December 31, 2021, the book value of fixed assets - houses and buildings that the Company has not obtained the property ownership certificates was RMB
10,961,925,644.13.




                                                                                          243
      (2) Information of temporary idle fixed assets

      No.

      (3) Information of fixed assets leased out through operating leases

      No.

      (4) Fixed assets in liquidation

                   Item                            Balance at the end of the period                         Beginning balance

Fixed assets in liquidation                                               5,440,856.96                                            7,039,959.06

                   Total                                                  5,440,856.96                                            7,039,959.06


     20. Construction in progress

                   Item                            Balance at the end of the period                         Beginning balance

Construction in Progress [Note]                                     6,481,236,333.38                                         4,016,082,730.07

                   Total                                            6,481,236,333.38                                         4,016,082,730.07

      [Note] The construction in progress in the above table refers to the construction in progress after deduction of
engineering materials.

      (1) Construction in Progress

                                     Balance at the end of the period                                    Beginning balance
         Item                                                                                                 Provision
                                               Provision for
                           Book balance                            Book value             Book balance           for            Book value
                                                impairment
                                                                                                             impairment
Gree Altairnano
                           2,267,183,174.63        54,413.75     2,267,128,760.88
Project
Gree HQ project             907,483,903.01                         907,483,903.01         570,077,306.55                        570,077,306.55
Gree Gaolan Port
                            661,759,431.04                         661,759,431.04          62,939,878.48                         62,939,878.48
Project
Gree Nanjing
                            579,446,466.90                         579,446,466.90        1,141,086,342.69                    1,141,086,342.69
Project
Gree Chengdu
                            419,085,010.72                         419,085,010.72         260,766,823.26                        260,766,823.26
Project
Intelligent
Equipment                   293,302,450.67                         293,302,450.67           2,003,175.80                          2,003,175.80
Project
Gree Energy
                            258,133,665.03                         258,133,665.03         150,133,461.00                        150,133,461.00
Project
Gree Ganzhou
                            244,948,297.47                         244,948,297.47
Project
Gree Luoyang
                            192,443,288.72                         192,443,288.72        1,046,021,393.89                    1,046,021,393.89
Project
Zhuhai Green
Prevention and                115,158,283.10                       115,158,283.10          23,108,375.54                         23,108,375.54
Control Project
Others                      542,346,775.84                         542,346,775.84         759,945,972.86                        759,945,972.86

                                                                        244
                 Balance at the end of the period                               Beginning balance
Item                                                                                Provision
                           Provision for
        Book balance                           Book value        Book balance          for            Book value
                            impairment
                                                                                   impairment
Total   6,481,290,747.13       54,413.75     6,481,236,333.38   4,016,082,730.07                    4,016,082,730.07




                                                    245
     (2) Current-period changes in important construction projects in progress

                                                                                                      Amount                                                                   Including:
                                                                                                                         Transfer to
                                                                                                  transferred into                                                             Amount of
                                          Increase in the scope of the    Increased amount in                         investment real
   Item Name          Beginning balance                                                             fixed assets                         Balance at the end of the period   capitalization of
                                           combination in this period      the current period                           estate in this
                                                                                                 during the current                                                         interests for the
                                                                                                                           period
                                                                                                       period                                                                current period
Gree Altairnano
                                                       2,341,162,945.24         49,560,244.17      123,540,014.78                                       2,267,183,174.63
Project
Gree HQ project         570,077,306.55                                         458,200,283.61      120,793,687.15                                         907,483,903.01
Gree Gaolan Port
                         62,939,878.48                                         598,819,552.56                                                             661,759,431.04
Project
Gree        Nanjing
                                                                               736,808,586.56                                                             579,446,466.90       53,871,154.40
Project                1,141,086,342.69                                                          1,298,448,462.35
Gree       Chengdu
                        260,766,823.26                                         379,308,256.58      220,990,069.12                                         419,085,010.72        5,778,289.15
Project
Intelligent
                           2,003,175.80                                        291,442,864.61           143,589.74                                        293,302,450.67
Equipment Project
Gree         Energy
                        150,133,461.00                                         108,000,204.03                                                             258,133,665.03
Project
Gree       Ganzhou
                                                                               244,948,297.47                                                             244,948,297.47
Project
Gree       Luoyang
                                                                               764,232,702.64                                                             192,443,288.72
Project                1,046,021,393.89                                                          1,617,810,807.81
Zhuhai      Green
Prevention     and       23,108,375.54                                          92,049,907.56                                                             115,158,283.10
Control Project

Others                  759,945,972.86                                         841,714,189.20                             3,856,543.64                    542,346,775.84        8,880,935.92
                                                                                                 1,055,456,842.58

         Total                                         2,341,162,945.24      4,565,085,088.99    4,437,183,473.53         3,856,543.64                  6,481,290,747.13       68,530,379.47
                       4,016,082,730.07




                                                                                           246
     (3) Appropriation of provisions for impairment of construction in progress during the current period

                                   Increase in
                       Beginning                       Decrease in the      Balance at the end of the   Reason for amount calculated and
      Item                         the current
                        balance                         current year                period                         withdrawn
                                      year
Gree Altairnano
                                       54,413.75                                           54,413.75
Project
      Total                            54,413.75                                           54,413.75


     21. Usufruct assets

               Item                           Housing and buildings               Machinery equipment                    Total

I. Total of original carrying amount

     1. Beginning balance                                   32,338,241.97                        6,613,861.31              38,952,103.28
     2. Increased amount in current
                                                             5,307,937.09                                                   5,307,937.09
period
       Including: renting                                    5,307,937.09                                                   5,307,937.09
     3. Decreased amount in
current period
     4. Ending balance                                      37,646,179.06                        6,613,861.31              44,260,040.37

II. Accumulated depreciation

     1. Beginning balance
     2. Increased amount in current
                                                            25,532,820.33                        4,123,937.05              29,656,757.38
period
     Including: appropriation                               25,532,820.33                        4,123,937.05              29,656,757.38
     3. Amount decreased in the
current period
     4. Ending balance                                      25,532,820.33                        4,123,937.05              29,656,757.38

III. Provision for impairment

IV. Carrying amount
     1. Book value at the end of the
                                                            12,113,358.73                        2,489,924.26              14,603,282.99
period
     2. Book value at the beginning
                                                            32,338,241.97                        6,613,861.31              38,952,103.28
of the period


     22. Intangible assets
     Information of intangible assets

                Item                               Land use rights               Patent rights and others                Total

I. Total of original carrying amount

     1. Beginning balance                               6,579,859,889.53                      910,035,623.63            7,489,895,513.16
     2. Increased amount in current
                                                        4,054,952,283.34                      985,780,299.92            5,040,732,583.26
period
       Including: purchase                              1,136,180,177.63                       13,024,545.35            1,149,204,722.98
               Business combination
                                                        2,918,772,105.71                      972,755,754.57            3,891,527,860.28
increase

                                                                      247
                Item                    Land use rights             Patent rights and others                 Total
     3. Amount decreased in the
                                                                                     22,373,120.00             22,373,120.00
current period
     Including: writing off [Note 1]                                                 22,373,120.00             22,373,120.00

     4. Ending balance                      10,634,812,172.87                      1,873,442,803.55        12,508,254,976.42

II. Accumulated amortization

     1. Beginning balance                       811,406,456.89                       76,470,097.45            887,876,554.34
     2. Increased amount in current
                                                395,290,707.77                      628,182,641.55          1,023,473,349.32
period
     Including: appropriation                   161,076,502.06                       48,999,518.21            210,076,020.27
               Business combination
                                                234,214,205.71                      579,183,123.34            813,397,329.05
increase
     3. Amount decreased in the
                                                                                     22,373,120.00             22,373,120.00
current period
       Including: writing off                                                        22,373,120.00             22,373,120.00

     4. Ending balance                       1,206,697,164.66                       682,279,619.00          1,888,976,783.66

III. Provision for impairment

     1. Beginning balance                                                           723,730,196.18            723,730,196.18
     2. Increased amount in current
period
     3. Amount decreased in the
                                                                                     21,419,211.52             21,419,211.52
current period
     Including: writing off                                                          21,419,211.52             21,419,211.52

     4. Ending balance                                                              702,310,984.66            702,310,984.66

IV. Carrying amount
     1. Book value at the end of the
                                             9,428,115,008.21                       488,852,199.89          9,916,967,208.10
period
     2. Book value at the beginning
                                             5,768,453,432.64                       109,835,330.00          5,878,288,762.64
of the period
     [Note 1] Write-off amounts of intangible assets - patented technology and others in the current period were the
used quota licensing rights;
     [Note 2] As of December 31, 2021, the book value of intangible assets of which the Company has not obtained
the property ownership certificates was RMB 32,599.95.
     [Note 3] There were no intangible assets formed through the Company's internal research and development
during the current period.

     23. Goodwill

     (1) Original carrying amount of goodwill

                                                                                        Decrease for
   Name of invested entity or matter                             Increase in the                       Balance at the end of
                                        Beginning balance                                the current
        generating goodwill                                      current period                             the period
                                                                                           period



                                                          248
                                                                     Formed by
                                                                      business         Disposal
                                                                    combination
Hefei Kinghome Electrics Co., Ltd                51,804,350.47                                                51,804,350.47
Nanjing Walsin Nonferrous Metal Co.,
                                                274,115,040.11                                               274,115,040.11
Ltd.
Gree Altairnano New Energy Inc.                                    612,777,583.92                           612,777,583.92

                 Total                          325,919,390.58     612,777,583.92                           938,696,974.50

     [Note] On August 31, 2021, the Company obtained 336,197,406 shares of Zhuhai Yinlong New Energy Co., Ltd.
(hereinafter referred to as "Yinlong New Energy") through participating in the public auction of judicial sale,
accounting for 30.47% equity of Yinlong New Energy. At the same time, Ms. Dong Mingzhu, chairman of the
Company, entrusted 17.46% of the voting rights corresponding to 192,672,001 shares of Yinlong New Energy to the
Company for exercising. The Company controls the voting rights corresponding to 528,869,407 shares of Yinlong
New Energy in total, accounting for 47.93% of the total share capital of Yinlong New Energy. Yinlong New Energy
became the Company's holding subsidiary. On November 9, 2021, Yinlong New Energy was renamed Gree
Altairnano New Energy Inc. (hereinafter referred to as "Gree Altairnano New Energy").
     As of the purchase date on October 31, 2021, the fair value of the recognizable net assets attributable to the
owner of the parent company was 1,215,497,529.64 yuan. The fair value of the corresponding recognizable net assets
was evaluated by China United Assets Appraisal Group Co., Ltd., and China United Appraisal Report Zi [2022] No.
1362 Appraisal Report was issued. The difference between the acquisition cost of 1,828,275,113.56 yuan and the fair
value of Gree Altairnano New Energy's recognizable net assets formed a goodwill of 612,777,583.92 yuan.

     (2) Goodwill impairment provision of Nanjing Walsin Nonferrous Metal Co., Ltd.

                                                          Increase in the current     Decrease for the
   Name of invested entity or matter     Beginning                period               current period       Balance at the
        generating goodwill               balance                                                          end of the period
                                                         Appropriation      Others   Disposal     Others
Nanjing Walsin Nonferrous Metal Co.,
                                       124,016,686.56    107,051,151.70                                     231,067,838.26
Ltd.
                 Total                 124,016,686.56    107,051,151.70                                     231,067,838.26

     [Note] The Company acquired 94.30% of the equity of Nanjing Walsin Nonferrous Metal Co., Ltd., forming a
goodwill of RMB 274,115,040.11. According to the Appraisal Report on the Asset Group Recoverable Amount
Evaluation Project Related to Goodwill Involved by Zhuhai Gree Electrical Co., Ltd. for the Goodwill Impairment
Test Due to Merger and Acquisition of Nanjing Walsin Nonferrous Metal Co., Ltd. with the report number of China
Alliance Appraisal Report Zi [2022] No. 040218 issued by China Alliance Appraisal Co., Ltd., RMB 107,051,151.70
of impairment provision was accrued for the above-mentioned goodwill formed due to the acquisition in the current
period.
     Goodwill asset group and impairment test
     1) Information about the asset or asset group combination in which the goodwill is located
     The Company tested the impairment of goodwill by combining the asset group related to goodwill that can
benefit from the synergistic effect of business combination. Because it was difficult to directly obtain the fair market
value of the asset group containing goodwill, the Company calculated the recoverable amount of the asset group by

                                                          249
using the method of predicting the present value of future cash flow. After comprehensively considering factors such
as production and operation activities management, monitoring methods, continuous use and disposal, the asset group
containing goodwill was finally determined. At the end of the period, the asset group where the goodwill was located
was consistent with the assets group determined when the goodwill was formed on the acquisition date, and its
composition has not changed. The information on the asset group including goodwill was as follows:
                                                                                                               Unit: 10,000 Yuan

      Serial No.                             Name of asset                                 Book value of asset group

           1             Fixed assets                                                                                  11,798.77

           2             Construction in progress                                                                        736.71

           3             Intangible assets                                                                             10,099.60

           4             Goodwill [Note]                                                                               15,917.11

                                                 Total                                                                 38,552.19
     [Note] The goodwill shown in the above table included the part attributable to minority shareholders.
     2) Important assumptions and key parameters of goodwill impairment test:
     A. Assumption of orderly transactions: orderly transactions refer to transactions where the relevant assets or
liabilities have usual market activities during a period of time before the measurement date;
     B. Assumption of going concern: assumption of going concern refers to the assumption that the asset group will
be used normally and continuously according to the purpose and use method of the benchmark date, and there will be
no unforeseen factors that will cause it to fail to continue operations, and the valuation method, parameters and basis
will be determined accordingly;
     C. It is assumed that the Company has no major changes in the core management team, technical team, and
marketing team based on the existing management methods and levels, and no other human force majeure and
unforeseen factors have a major adverse impact on the Company;
     D. Given the Company's operation and production are mainly to earn processing profits, the fluctuation of raw
material prices does not have a substantial impact on the Company's operating profits, therefore, it is assumed that the
raw material prices will remain unchanged in the coming years in the evaluation.
     When conducting the asset impairment test, the Company estimated the expected return on investment of
property rights holders based on the analysis and calculation of selected and compared companies. After the
calculation, the pre-tax discount rate used in the impairment test was 12.30%.
     3) Evaluation results of goodwill impairment test
                                                                                                               Unit: 10,000 Yuan

                                                                          Recoverable amount of asset     Goodwill impairment
            Company name                     Book value of asset group
                                                                                    group                      amount
Nanjing Walsin Nonferrous Metal Co.,
                                                              38,552.19                     27,200.00                  11,352.19
Ltd.
     [Note] According to the Appraisal Report on the Appraisal Report on the Asset Group Recoverable Amount
Evaluation Project Related to Goodwill Involved by Zhuhai Gree Electrical Co., Ltd. for the Goodwill Impairment
Test Due to Merger and Acquisition of Nanjing Walsin Nonferrous Metal Co., Ltd. with the report number of China
Alliance Appraisal Report Zi [2022] No. 040218 issued by China Alliance Appraisal Co., Ltd., the asset group

                                                                250
including goodwill should be provided with a goodwill impairment loss of RMB 113,521,900.00, of which the
goodwill impairment loss attributable to shareholders of the parent company should be RMB 107,051,151.70.

      (3) Goodwill impairment preparation of Gree Altairnano New Energy Inc.

      From Gree Altairnano New Energy's evaluation base date of October 31, 2021 to the balance sheet date of
December 31, 2021, the production and operation of the company has not changed significantly, the goodwill
impairment preparation was not accrued.

     24. Deferred income tax assets/deferred income tax liabilities

      (1) Deferred income tax assets not offset

                                      Balance at the end of the period                             Beginning balance
         Item
                              Deductible temporary         Deferred income tax       Deductible temporary      Deferred income tax
                                  differences                     assets                 differences                  assets
Assets depreciation
                                    5,526,051,132.93              934,860,835.60           1,945,939,722.60              331,079,465.72
reserves
Deductible loss                     6,783,704,724.84            1,426,651,977.24             929,716,127.83              200,650,142.61

Accrued expenses                   70,642,488,124.58           10,603,767,691.88          70,734,519,794.58        10,612,752,964.88
Employee pay
                                    1,342,012,620.97              207,941,829.63           1,138,661,981.04              177,276,992.60
payable
Assets amortization                   282,882,015.47               43,093,274.62             277,892,654.00               42,292,876.53

Others                              2,866,665,758.43              445,534,163.71           1,051,311,939.85              186,239,758.68

         Total                     87,443,804,377.22           13,661,849,772.68          76,078,042,219.90        11,550,292,201.02

      (2) Deferred income tax liabilities not offset

                                           Balance at the end of the period                         Beginning balance
             Item
                                       Taxable temporary          Deferred income      Taxable temporary       Deferred income tax
                                          differences              tax liabilities        differences               liabilities
Fair value changes in
                                              282,767,966.53         47,017,208.48          894,532,218.27               172,009,915.29
derivative financial assets
Accrued interest                            3,671,369,000.39        696,523,997.54        2,595,212,306.29               481,753,397.01

Assets amortization                         1,395,006,607.26        228,029,140.30        1,150,514,923.85               188,338,452.95
Changes in fair value of
other equity instrument                     5,788,793,612.15        868,319,041.82        3,360,535,396.59               504,080,309.49
investments
Appraisal and appreciation
for consolidated assets of
                                            2,005,971,524.03        320,359,752.22          274,949,344.47                63,085,772.95
enterprises not under the
same control
Others                                        535,300,948.02        133,663,373.43            8,513,732.04                 1,843,255.15

             Total                         13,679,209,658.38      2,293,912,513.79        8,284,257,921.51              1,411,111,102.84

      (3) Details of deferred income tax assets which were not recognized

             Item                          Balance at the end of the period                         Beginning balance

                                                                     251
             Item                   Balance at the end of the period                           Beginning balance
Deductible temporary
                                                           2,649,057,873.48                                          741,969,846.84
differences
Deductible loss                                            1,999,613,109.29                                          202,245,092.25

            Total                                          4,648,670,982.77                                          944,214,939.09

       (4) The deductible losses of deferred income tax assets not recognized will become due in the following years

             Year                    Amount at the end of the period                 Amount at the beginning of the period

2022                                                            14,111,337.16

2023                                                            58,759,679.60                                         30,888,536.25

2024                                                            37,615,022.30                                           196,543.53

2025                                                            37,836,203.73                                          8,502,385.16

2026                                                            73,328,698.01

Open-ended                                                   1,777,962,168.49                                        162,657,627.31

            Total                                            1,999,613,109.29                                        202,245,092.25


       25. Other non-current assets

                                    Balance at the end of the period                           Beginning balance
            Item                              Provision                                             Provision
                             Book balance        for          Book value        Book balance           for           Book value
                                             impairment                                            impairment
Advance payment for
                            319,558,426.19                   319,558,426.19     642,531,256.64                       642,531,256.64
equipment
Prepaid project funds and
                            357,562,564.75                   357,562,564.75     111,813,697.80                       111,813,697.80
deposit
Prepaid land-transferring
                             39,127,688.96                     39,127,688.96     33,773,076.96                        33,773,076.96
fees and others
            Total           716,248,679.90                   716,248,679.90     788,118,031.40                       788,118,031.40


       26. Short-term borrowings

       (1) Classification of short-term borrowings

             Item                    Balance at the end of the period                            Beginning balance

Pledge loans                                               12,624,147,777.77                                    10,050,000,000.00

Mortgaged borrowings                                         2,252,700,000.00                                         92,999,987.80

Guaranteed loan                                                                                                       58,000,000.00

Borrowing on credit                                        12,586,183,086.85                                     9,991,044,455.36

           Subtotal                                        27,463,030,864.62                                    20,192,044,443.16

Accrued interest                                               154,889,683.49                                        112,340,299.18

            Total                                           27,617,920,548.11                                   20,304,384,742.34


                                                              252
     (2) Short-term borrowings that have been overdue but not yet repaid

     No.

     27. Loans from other banks

            Item                  Balance at the end of the period            Beginning balance

Credit lending                                             300,000,000.00                         300,000,000.00

Accrued interest                                                  21,500.00                            20,250.00

            Total                                          300,021,500.00                         300,020,250.00


     28. Funds from financial assets sold for repurchase

            Item                   Balance at the end of the period           Beginning balance
Bonds (pledge-style
                                                             746,564,041.09                       475,033,835.62
repurchase)
            Total                                            746,564,041.09                       475,033,835.62


     29. Deposits from customers and interbank

            Item                   Balance at the end of the period           Beginning balance

Current deposits                                              34,023,561.14                        40,660,078.51

Time deposits                                                142,684,338.50                       153,847,631.94

Draft deposits                                                                                     60,763,500.00

           Subtotal                                          176,707,899.64                       255,271,210.45

Accrued interest                                               5,974,006.10                         5,735,497.79

            Total                                            182,681,905.74                       261,006,708.24


     30. Notes payable

            Type                   Balance at the end of the period           Beginning balance

Banker's acceptance bill                                 40,737,984,514.42                   21,416,071,950.32

Trade acceptance draft                                         6,000,000.00                        11,000,000.00

            Total                                        40,743,984,514.42                   21,427,071,950.32


     31. Accounts payable

     (1) Listing of accounts payable

            Item                   Balance at the end of the period           Beginning balance
Payment for goods and
                                                         33,845,824,271.75                   30,675,053,443.18
service charges
Others                                                     2,029,266,639.30                       929,605,723.70

            Total                                         35,875,090,911.05                  31,604,659,166.88


                                                            253
      (2) Important payables with account age exceeding 1 year

      No.

     32. Contract liabilities

            Item                           Balance at the end of the period                              Beginning balance

Loans                                                             15,505,499,178.75                                      11,678,180,424.65

            Total                                                 15,505,499,178.75                                      11,678,180,424.65

      [Note] Contract liabilities are mainly the payment for goods of dealers received in advance.

     33. Employee pay payable

      (1) Presentation of employees' wages and salaries payable

                                                                              Increase in the         Decrease for the     Balance at the
                    Item                           Beginning balance
                                                                              current period           current period     end of the period
I. Short-term wages and salaries                      3,362,509,189.13         9,694,087,979.57       9,595,005,228.57    3,461,591,940.13
II. Separation benefits - defined
                                                          2,846,279.56             615,473,128.68       613,280,946.64         5,038,461.60
contribution plan
                    Total                             3,365,355,468.69        10,309,561,108.25      10,208,286,175.21    3,466,630,401.73

      (2) Listing of short-term wages and salaries

                                                          Beginning           Increase in the        Decrease for the      Balance at the
                       Item
                                                           balance            current period          current period      end of the period
1. Wages, bonuses, subsidies and allowances            2,454,866,944.76       8,183,052,058.41        8,153,762,416.21    2,484,156,586.96

2. Employee welfares                                                               849,219,795.07      849,219,795.07

3. Social insurance premiums                                 760,334.68            229,759,614.44      229,687,133.56           832,815.56

     Including: medical insurance premiums                   725,202.12            201,971,778.90      201,893,360.85           803,620.17
             Work-related injury insurance
                                                              14,221.87             13,183,884.99        13,169,857.67            28,249.19
premiums
             Maternity insurance premiums                     20,910.69             14,603,950.55        14,623,915.04               946.20

4. Housing accumulation funds                              1,503,063.69            190,249,506.59      189,153,654.03          2,598,916.25
5. Labor union expenditures and employee
                                                         905,378,846.00            241,807,005.06      173,182,229.70        974,003,621.36
education funds
                       Total                           3,362,509,189.13       9,694,087,979.57        9,595,005,228.57    3,461,591,940.13

      (3) Presentation of separation benefits - defined contribution plan

                                                         Increase in the current           Decrease for the       Balance at the end of the
         Item                  Beginning balance
                                                                 period                     current period                period
1. Basic endowment
                                      2,515,822.87                 593,679,622.25               592,311,212.16                 3,884,232.96
insurance premiums
2. Unemployment
                                       330,456.69                   21,793,506.43                20,969,734.48                 1,154,228.64
insurance premium
         Total                        2,846,279.56                 615,473,128.68               613,280,946.64                 5,038,461.60


                                                                    254
     34. Taxes and dues payable

         Item                          Balance at the end of the period                               Beginning balance

Added-value tax                                                       1,015,503,640.35                               1,188,975,420.12

Business income tax                                                    961,029,463.82                                  785,653,809.28

Others                                                                 253,938,087.32                                  326,726,353.62

         Total                                                        2,230,471,191.49                               2,301,355,583.02


     35. Other payables

                      Item                          Balance at the end of the period                  Beginning balance

Dividends payable                                                          2,367,112.94                                   6,986,645.96

Other payables [Note 1]                                               6,760,752,824.20                               2,372,409,071.48

                      Total                                           6,763,119,937.14                               2,379,395,717.44

     [Note 1] Other payables in the table above refer to other payables after deduction of interest payable and
dividends payable;
     [Note 2] The Company has no interest payable at the end and the beginning of the period.

     (1) Other payables are presented by amount nature

                      Item                          Balance at the end of the period                  Beginning balance

Intercourse funds                                                     3,018,271,527.82                               1,527,670,503.18

Margin and deposit                                                    1,010,801,182.18                                 844,738,568.30

Enterprise borrowing and interest                                     2,731,680,114.20

                      Total                                           6,760,752,824.20                               2,372,409,071.48

     (2) Other important payables with account age exceeding 1 year

                      Item                          Balance at the end of the period         Cause of failing to repay or carry over

Unit 1                                                                1,313,486,008.35    Unsatisfied repayment conditions

Unit 2                                                                 455,928,100.00     Unsatisfied repayment conditions

                      Total                                           1,769,414,108.35


     36. Non-current liabilities due within one year

                      Item                          Balance at the end of the period                  Beginning balance

Long-term borrowing due within one year                               1,226,863,474.75
Long-term payable to be matured within one
                                                                          16,958,747.82
year
Lease liability due within 1 year                                         11,471,812.27                                  22,927,889.42

                      Total                                           1,255,294,034.84                                   22,927,889.42


     37. Other current liabilities
                                                                255
                         Item                  Balance at the end of the period     Beginning balance

Repair cost                                                      1,913,804,227.53                1,893,012,124.81

Sale's returned profit                                        52,669,278,982.00                 55,808,250,764.80
Obligation to pay commercial papers which is
                                                                  852,128,009.63                 4,588,589,780.94
not derecognized
Output tax to be wrote-off                                       1,925,767,413.76                1,469,269,506.13

Short-term bonds payable [Note]                                  4,048,840,948.73

Others                                                           1,004,287,682.55                  623,132,106.86

                         Total                                62,414,107,264.20                 64,382,254,283.54




                                                           256
    [Note] The following is the change in short-term bonds payable of the Company in this period:
                                                                                                                                                 Amortization
                                                                                                                                                    of the
Abbreviation of                           Issuing      Bond                             Beginning                             Accrued interest                                       Balance at the
                       Face value                                  Amount issued                          Current issuance                        premiums      Current payment
    bonds                                   date      duration                           balance                              at nominal value                                      end of the period
                                                                                                                                                     and
                                                                                                                                                  discounts
21 Gree Electric
                                           January
Appliances          3,000,000,000.00                  35 days      3,000,000,000.00                        3,000,000,000.00       6,817,808.22                  3,006,817,808.22
                                          21, 2021
SCP001
21 Gree Electric
                                          February
Appliances          3,000,000,000.00                  43 days      3,000,000,000.00                        3,000,000,000.00       8,482,191.78                  3,008,482,191.78
                                          24, 2021
SCP002
21 Gree Electric
                                         March 19,
Appliances          2,000,000,000.00                  96 days      2,000,000,000.00                        2,000,000,000.00      14,465,753.42                  2,014,465,753.42
                                             2021
SCP003
21 Gree Electric
                                         March 29,
Appliances          4,000,000,000.00                  98 days      4,000,000,000.00                        4,000,000,000.00      28,997,260.27                  4,028,997,260.27
                                             2021
SCP004
21 Gree Electric
                                          April 16,
Appliances          3,000,000,000.00                  44 days      3,000,000,000.00                        3,000,000,000.00       8,534,794.52                  3,008,534,794.52
                                             2021
SCP005
21 Gree Electric
                                          June 17,
Appliances          3,000,000,000.00                  48 days      3,000,000,000.00                        3,000,000,000.00       9,271,232.88                  3,009,271,232.88
                                             2021
SCP006
21 Gree Electric
                                          June 17,     169
Appliances          1,000,000,000.00                               1,000,000,000.00                        1,000,000,000.00      12,038,356.16                  1,012,038,356.16
                                             2021      days
SCP007
21 Gree Electric
                                          June 29,     162
Appliances          2,000,000,000.00                               2,000,000,000.00                        2,000,000,000.00      23,079,452.05                  2,023,079,452.05
                                             2021      days
SCP008
21 Gree Electric
                                            July 9,    177
Appliances          4,000,000,000.00                               4,000,000,000.00                        4,000,000,000.00      49,008,219.18    -167,270.45                       4,048,840,948.73
                                              2021     days
SCP009
      Total        25,000,000,000.00                              25,000,000,000.00                       25,000,000,000.00    160,695,068.48     -167,270.45   21,111,686,849.30   4,048,840,948.73




                                                                                                    257
     38. Long-term borrowings

                     Item                             Balance at the end of the period                       Beginning balance

Pledge loans                                                                  133,082,315.96                                 142,481,242.20

Mortgaged borrowings                                                         2,303,590,315.07                              1,561,190,447.00

Borrowing on credit                                                          7,726,847,919.32                                152,752,584.38

                    Subtotal                                                10,163,520,550.35                              1,856,424,273.58

Accrued interest                                                               24,207,182.70                                     4,289,542.51
Less: Long-term borrowing due within one
                                                                             1,226,863,474.75
year
                     Total                                                   8,960,864,258.30                              1,860,713,816.09


     39. Lease liabilities


                     Item                              Balance at the end of the period                        Beginning balance


Lease liabilities                                                                14,785,264.79                                32,338,241.97

Less: Lease liability due within 1 year                                          11,471,812.27                                22,927,889.42

                     Total                                                        3,313,452.52                                   9,410,352.55


     40. Long-term payables

                     Item                             Balance at the end of the period                       Beginning balance

Financial liabilities formed after repurchase                                 463,153,339.74
Less: Long-term payables due within 1
                                                                               16,958,747.82
year
                     Total                                                    446,194,591.92


     41. Long-term payroll payable

     (1)    Table of long-term payroll payable

                     Item                              Balance at the end of the period                        Beginning balance
Separation benefits - net liabilities of
                                                                               164,408,471.00                                149,859,788.00
defined benefit plan
                     Total                                                     164,408,471.00                                149,859,788.00

     (2)    Changes in the defined benefit plan

      1) Present value of obligations under the defined benefit plan:

                                                                                      Amount for the current       Amount for the previous
                                      Item
                                                                                            period                        period
I. Beginning balance                                                                             149,859,788.00              141,021,228.00

II. Defined benefit cost recorded in the current profits and losses                                7,930,751.00                  7,441,863.00


                                                                      258
                                                                               Amount for the current     Amount for the previous
                                      Item
                                                                                     period                      period
     1. Service cost of the current period                                                2,611,662.00                 2,312,128.00

     2. Net interest                                                                      5,141,391.00                 4,837,059.00

     3. Impact on new personnel                                                             177,698.00                   292,676.00

III. Cost of the defined benefit plan included in other comprehensive income             12,391,783.00                 6,851,653.00

     Including: actuarial gains (losses are listed with "-")                             12,391,783.00                 6,851,653.00

IV. Other changes                                                                        -5,773,851.00                -5,454,956.00

     Including: paid benefits                                                            -5,773,851.00                -5,454,956.00

V. Balance at the end of the period                                                     164,408,471.00              149,859,788.00

      2) Net liabilities (net assets) of the defined benefit plan:
                                                                               Amount for the current     Amount for the previous
                                       Item
                                                                                     period                      period
I. Beginning balance                                                                  149,859,788.00                141,021,228.00

II. Defined benefit cost recorded in the current profits and losses                     7,930,751.00                   7,441,863.00

III. Cost of the defined benefit plan included in other comprehensive income           12,391,783.00                   6,851,653.00

IV. Other changes                                                                      -5,773,851.00                  -5,454,956.00

V. Balance at the end of the period                                                   164,408,471.00                149,859,788.00

     (3)    Contents and associated risks of the defined benefit plan, and its influences on the Company’s future cash
flow, time and uncertainty:

            1) Contents and associated risks of the defined benefit plan, and its influences on the Company’s future
            cash flow, time and uncertainty:

      The Company’s defined benefit plan is a supplementary post-retirement pension plan for some retirees, early
retirees and serving officers after normal retirement. This defined benefit plan didn’t involve big amount, so it didn’t
lead to significant influence on the future cash flow the Company.

           2) Significant actuarial assumptions and sensitivity analysis results of the defined benefit plan

      According to requirements of the Accounting Standards for Business Enterprises No. 9 - Employee
Compensation, the discount rate adopted by the Company at the time of discount is recognized by the market yields
of high-quality corporate bonds in the treasury bonds or active market that match the obligatory term and currency of
the defined benefit plan on the balance sheet date; the annual growth rates and annual dismissal rates of all benefits
are based on the actual measurement data of the Company; the death rate is recognized by referring to the experience
life table for insurance business of China Life Insurance (Group) Company.

     (4)    Quantitative sensitivity analysis of all the used major assumptions by the end of the Report Period:

                                                                                               Influence on the amount at the end of
                                Sensitivity analysis of discount rate
                                                                                                             the period


                                                                        259
                                                                                                       Influence on the amount at the end of
                                Sensitivity analysis of discount rate
                                                                                                                     the period
Influence on the present obligation value of defined welfare benefit by increase of one
                                                                                                                              -21,612,508.00
percentage point
Influence on the present obligation value of defined welfare benefit by decrease of one
                                                                                                                               27,344,235.00
percentage point
Influence on the service cost by increase of one percentage point                                                                -686,100.00

Influence on the service cost by decrease of one percentage point                                                                 730,522.00


            42.      Deferred Income

     (1) Classification of deferred income

                                  Beginning            Increase in the         Increase in the       Decrease for the      Balance at the end
             Item
                                   balance           combination scope         current period         current period         of the period
Government subsidies            437,033,702.46          1,179,257,549.38       1,206,207,782.75         126,411,065.89      2,696,087,968.70

Others                                                      6,804,690.12                                      238,761.04        6,565,929.08

             Total              437,033,702.46          1,186,062,239.50       1,206,207,782.75         126,649,826.93      2,702,653,897.78

     (2) Projects involved in government subsidies

                                   Beginning            Increase in the         Increase in the      Decrease for the      Balance at the end
             Item
                                    balance           combination scope         current period        current period         of the period
I. Government subsidies
                                  181,089,774.04                                     67,387,011.32     37,124,718.37          211,352,066.99
pertinent to incomes
Including: environmental
                                    2,656,866.22                                     24,833,400.00       2,196,632.83          25,293,633.39
protection upgrade project
          Scientific research
project     of refrigerating      115,014,244.49                                     35,491,861.32     25,268,671.05          125,237,434.76
field
          Others                   63,418,663.33                                      7,061,750.00       9,659,414.49          60,820,998.84
II. Government subsidies
                                  255,943,928.42        1,179,257,549.38       1,138,820,771.43        89,286,347.52        2,484,735,901.71
pertinent to assets
Including: environmental
                                   13,707,325.37                                     14,759,808.25       2,038,753.26          26,428,380.36
protection upgrade project
          Scientific research
project     of refrigerating      210,623,822.17                               1,075,495,434.86        56,482,290.10        1,229,636,966.93
field
          Energy      vehicle
                                                        1,179,257,549.38               210,528.32      10,494,868.66        1,168,973,209.04
project
          Others                   31,612,780.88                                     48,355,000.00     20,270,435.50           59,697,345.38

             Total                437,033,702.46        1,179,257,549.38       1,206,207,782.75       126,411,065.89        2,696,087,968.70


                            43. Capital stock
                                                                   Increase in the         Decrease for the        Balance at the end of the
             Item                   Beginning balance
                                                                   current period           current period                 period
Total number of stocks                   6,015,730,878.00                                     101,261,838.00                5,914,469,040.00

             Total                       6,015,730,878.00                                     101,261,838.00                5,914,469,040.00

     [Note] For the reasons for changes in the share capital in this period, please refer to Note V. 45 "Treasury stock" for details.

                                                                        260
                             44. Capital reserves

                                                                  Increase in the       Decrease for the current      Balance at the end of
            Item                   Beginning balance
                                                                  current period                period                     the period
Capital stock premium                        26,979,063.83                                        26,979,063.83

Other capital reserves                       94,871,216.85            31,002,910.71                                           125,874,127.56

            Total                           121,850,280.68            31,002,910.71               26,979,063.83               125,874,127.56

     [Note] For the reasons for changes in the capital reserve in this period, please refer to Note V. 45 "Treasury stock" for details.


                             45. Treasury stock

                                                                                       Decrease for the current     Balance at the end of the
    Item            Beginning balance            Increase in the current period
                                                                                               period                       period
Repurchase
                         5,182,273,853.90                       22,963,072,582.09              8,565,700,202.56            19,579,646,233.43
share
    Total                5,182,273,853.90                       22,963,072,582.09              8,565,700,202.56            19,579,646,233.43

     [Note 1] As of December 31, 2021, the Company has cumulatively repurchased 431,202,956 shares in this
period, of which 14,181,091 shares were repurchased in the first period, 101,261,838 were repurchased in the second
period, and 315,760,027 shares were repurchased in the third period, which was completed on September 9, 2021.The
three-period repurchase funds totaled 21,819,537,788.45 yuan.The repurchased treasury stock accounts for 7.17% of
the Company's total share capital at that time, all of which were stored in the Company's special securities account.
During the storage period, the right to voting, profit distribution, provident fund converted into share capital,
allotment of shares, pledge and other related rights are not enjoyed during the storage period.
     [Note 2] The repurchased 101,261,838 shares in the second period were canceled on November 9, 2021, with an
amount of 6,000,083,145.56 yuan, reducing the Company's share capital of 101,261,838 yuan, the corresponding
capital stock premium by of 26,979,063.83 yuan, the statutory surplus reserve of 2,530,583,291.14 yuan,
discretionary surplus reserve of 969,088,265.45 yuan, and undistributed profit of 2,372,170,687.14 yuan;
     [Note 3] On December 13, 2021, transferred 46,334,473 shares from the Company's special securities account
for repurchase by the non-trading transfer method to Gree Electric Appliances, Inc. of Zhuhai - special account for
the first phase of the employee shareholding plan of 2,565,617,057.00 yuan, accounting for 0.78% of the Company's
total share capital at that time, which reduced the undistributed profit of 1,422,082,263.36 yuan. At the same time, the
recognition of stock repurchase obligations in this period increased the treasury stock of 1,143,534,793.64 yuan and
the apportion of stock ownership incentive - employee shareholding holding plan fees increased other capital reserves
of 31,002,910.71 yuan.




                                                                     261
                            46. Other comprehensive income

                                                                                                         Amount for the current period
                                                                                  Less: Amount
                                                                                                        Less: Amount
                                                                                 recognized into
                                                                                                     included into other
                                                                                       other
                                                                                                       comprehensive                                                   Amount
                                             Beginning       Amount incurred     comprehensive                                                      Amount                            Balance at the end
                 Item                                                                                   income in the                                               attributable to
                                              balance        before income tax      income in                              Less: Income tax   attributable to the                       of the period
                                                                                                       previous period                                                 minority
                                                               in the current    previous period                              expenses         parent company
                                                                                                      and transferred to                                             shareholders
                                                                   period        and transferred                                                    after tax
                                                                                                      retained earnings                                                after tax
                                                                                  to the current
                                                                                                        in the current
                                                                                   profits and
                                                                                                            period
                                                                                      losses
I. Other comprehensive income
which cannot be reclassified into         7,384,141,428.99   4,341,598,647.87                            114,949,817.60      364,238,732.33   3,862,410,097.94                        11,246,551,526.93
profits and losses
 Changes arising from
remeasurement of the defined benefit        -51,014,494.00      -12,391,783.00                                                                   -12,391,783.00                          -63,406,277.00
plan
 Other comprehensive income which
cannot be transferred to profit or loss   4,999,568,613.35   1,849,833,156.32                                                                 1,849,833,156.32                         6,849,401,769.67
under the equity method
 Changes in fair value of other equity
                                          2,435,587,309.64   2,504,157,274.55                            114,949,817.60      364,238,732.33    202,4968,724.62                         4,460,556,034.26
instrument investments
II. Other comprehensive income
which will be reclassified into profits     11,918,766.48       -30,049,881.26    22,298,300.00                                1,954,547.06      -54,465,938.14        163,209.82        -42,547,171.66
and losses in the future
 Other comprehensive income that
can be transferred to profit or loss                               -685,328.00                                                                      -208,819.44       -476,508.56           -208,819.44
under the equity method
 Changes in fair value of other debt
                                            -57,643,029.12       -1,251,507.19                                                   725,128.31       -2,346,134.55        369,499.05        -59,989,163.67
investments
 Cash flow hedge reserve                    18,953,555.00       30,494,425.00     22,298,300.00                                1,229,418.75        6,966,706.25                           25,920,261.25
 Difference arising from translation
of financial statements in foreign          50,608,240.60       -58,607,471.07                                                                   -58,877,690.40        270,219.33         -8,269,449.80
currency


                                                                                                   262
                                                                                                  Amount for the current period
                                                                           Less: Amount
                                                                                                 Less: Amount
                                                                          recognized into
                                                                                              included into other
                                                                                other
                                                                                                comprehensive                                                   Amount
                                      Beginning       Amount incurred     comprehensive                                                      Amount                            Balance at the end
              Item                                                                               income in the                                               attributable to
                                       balance        before income tax      income in                              Less: Income tax   attributable to the                       of the period
                                                                                                previous period                                                 minority
                                                        in the current    previous period                              expenses         parent company
                                                                                               and transferred to                                             shareholders
                                                            period        and transferred                                                    after tax
                                                                                               retained earnings                                                after tax
                                                                           to the current
                                                                                                 in the current
                                                                            profits and
                                                                                                     period
                                                                               losses
Total other comprehensive income   7,396,060,195.47    4,311,548,766.61    22,298,300.00          114,949,817.60      366,193,279.39   3,807,944,159.80         163,209.82     11,204,004,355.27




                                                                                            263
                              47. Special reserve
                                                                                                                               Balance at the
                            Beginning       Increase within the    Increase in the current      Decrease for the current
       Item                                                                                                                     end of the
                             balance        combination scope              period                       period
                                                                                                                                  period
Safe production
                                                 21,259,298.20               2,404,215.46                   1,259,667.40        22,403,846.26
expense
       Total                                     21,259,298.20               2,404,215.46                   1,259,667.40        22,403,846.26


                              48. Surplus reserve

                                                                       Increase in the         Decrease for the current       Balance at the
               Item                     Beginning balance
                                                                       current period                  period                end of the period
Statutory surplus reserve                       2,530,583,291.14       1,983,727,107.74                2,530,583,291.14      1,983,727,107.74
Discretionary surplus
                                                 969,088,265.45                                          969,088,265.45
reserve
               Total                            3,499,671,556.59       1,983,727,107.74                3,499,671,556.59      1,983,727,107.74

     [Note 1] According to the regulations, the Company accrues the legal reserve at 10% of the net profits of the parent company in this
period;
     [Note 2] For the reasons for decrease in the surplus public accumulation in this period, please refer to Note V. 45 "Treasury stock"
for details.


                              49. General risk provisions
                                                                       Increase in the          Decrease for the current      Balance at the
               Item                     Beginning balance
                                                                       current period                   period               end of the period
General risk provisions                          497,575,772.26             8,023,584.04                                      505,599,356.30

               Total                             497,575,772.26             8,023,584.04                                      505,599,356.30

     [Note] The subsidiaries of the financial enterprise under the Company withdraws general risk preparation with their respective
annual net profits or risk assets at the end of the year according to the "Administrative Measures for the Accrual of Reserve Funds of the
Financial Enterprises" and other relevant provisions.


                              50. Undistributed profit

                               Item                                   Amount for the current period          Amount for the previous period

Undistributed profit at the beginning of the period                                 102,841,596,377.66                      93,794,643,539.49
Undistributed profit at the beginning of the period after
                                                                                    102,841,596,377.66                      93,794,643,539.49
adjustment
Add: Net profit attributable to owners of the parent company
                                                                                     23,063,732,372.62                      22,175,108,137.32
for the current period
Less: Withdrawal of statutory surplus reserves                                           1,983,727,107.74

     Appropriation of general risk provisions                                                8,023,584.04                        7,719,945.51

     Ordinary stock dividends payable [Notes 1]                                      16,752,531,495.00                      13,140,423,269.60
    Influence of share-based payment and share cancellation
                                                                                         3,794,252,950.50
[Note 2]
Add: Other comprehensive income carried forward to retained
                                                                                          108,429,387.17                        19,987,915.96
earnings
Undistributed profit at the end of the period                                       103,475,223,000.17                     102,841,596,377.66
                                                                    264
      [Note 1] According to the resolutions of the general meeting of shareholders on June 30, 2021, the Company
distributed cash dividends to all shareholders at a rate of RMB 30.00 (including tax) per 10 shares. Based on the
deduction of repurchased shares (the Company has cumulatively repurchased a total of 431,553,713 shares) in the
special account for repurchase from the Company's total share capitals of 6,015,730,878 shares, RMB
16,752,531,495.00 of cash dividends were actually distributed.
      [Note 2] For the influence of the Company's share-based payment and share cancellation in this period on the
undistributed profits, please refer to Note V. 45 "Treasury stock" for details.

                           51. Operating revenues and operating costs

                                   Amount for the current period                      Amount for the previous period
         Item
                                Revenue                      Cost                 Revenue                      Cost

Main business                 144,840,537,601.90        101,021,238,221.75   130,427,766,473.54              87,921,191,886.69

Other business                 43,028,337,290.81         41,230,400,368.12    37,771,437,930.99              36,307,841,794.23

        Total                 187,868,874,892.71        142,251,638,589.87   168,199,204,404.53             124,229,033,680.92

      Information related to the main business incomes:

                                  Amount for the current period                       Amount for the previous period
        Item
                               Revenue                       Cost                  Revenue                       Cost
Classified by
industry
Manufacturing
                              144,840,537,601.90        101,021,238,221.75        130,427,766,473.54         87,921,191,886.69
industry
        Total                 144,840,537,601.90        101,021,238,221.75        130,427,766,473.54         87,921,191,886.69
Classified by
product type
Including:           air
                              131,712,664,218.81         90,576,252,210.44        115,576,822,921.57         75,391,437,042.70
conditioner
      Home
                                4,881,607,693.72          3,262,705,849.18          4,521,756,518.81          3,083,266,840.17
appliances
       Industrial
                                3,194,552,084.04          2,604,593,659.63          2,304,816,992.20          2,038,896,719.43
products
      Intelligent
                                 857,741,120.95             606,116,653.12           600,778,785.76             425,337,854.62
equipment
       Green energy             2,907,445,769.91          2,729,740,202.70          1,782,282,335.29          1,488,663,827.16

       Others                   1,286,526,714.47          1,241,829,646.68          5,641,308,919.91          5,493,589,602.61

        Total                 144,840,537,601.90        101,021,238,221.75        130,427,766,473.54         87,921,191,886.69

Classified by region
Including: sale in
                              122,305,111,567.10         80,703,210,957.38        110,407,002,220.87         70,329,850,923.05
domestic market
       Export sales            22,535,426,034.80         20,318,027,264.37         20,020,764,252.67         17,591,340,963.64

        Total                 144,840,537,601.90        101,021,238,221.75        130,427,766,473.54         87,921,191,886.69


                           52. Interest incomes, interest expenditures
                                                                  265
                         Item                           Amount for the current period         Amount for the previous period

Interest revenue                                                           1,785,060,001.28                  2,295,972,686.55
Including: interest revenue from deposits in other
                                                                            967,523,971.58                   1,395,939,587.36
banks and central banks
       Interest revenue from disbursement of
                                                                            642,933,336.95                     762,577,244.28
loans and advances
         Others                                                             174,602,692.75                     137,455,854.91

Interest expenses                                                           523,238,956.03                     304,448,121.92
Including: expenses       from   transactions   with
                                                                            492,270,450.54                     290,237,534.52
financial institutions
         Others                                                               30,968,505.49                     14,210,587.40

Net interest revenue                                                       1,261,821,045.25                  1,991,524,564.63


                             53. Taxes and surcharges

                         Item                           Amount for the current period         Amount for the previous period

Urban maintenance & construction tax                                         192,741,080.66                    181,452,425.09

Educational surcharges                                                       140,987,749.25                    136,118,810.46

House property tax                                                           182,944,167.04                    141,422,302.62

Land use tax                                                                 114,448,407.21                     98,229,736.11
Commodity circulation tax and industrial product
                                                                              93,622,542.23                     82,095,878.99
tax of Brazil
Funds from processing of waste electric appliances                           189,225,358.89                    203,651,307.67

Others                                                                       162,695,156.50                    121,630,232.87

                         Total                                             1,076,664,461.78                    964,600,693.81


                             54. Sales expense

                         Item                           Amount for the current period         Amount for the previous period

Sales expense                                                             11,581,735,617.31                 13,043,241,798.27

                         Total                                            11,581,735,617.31                 13,043,241,798.27

     [Note] In 2021, the selling expenses mainly included the installation and maintenance cost, transportation and
warehousing fee and loading and unloading fee, and promotion fee, accounting for more than 80% of the total selling
expenses.

                             55. Administrative expense

                         Item                           Amount for the current period         Amount for the previous period

Administrative expense                                                     4,051,241,003.05                  3,603,782,803.64

                         Total                                             4,051,241,003.05                  3,603,782,803.64

     [Note] In 2021, the overhead expenses included the employees' wages and salaries, material consumption,
depreciation and amortization, accounting for more than 80% of the total overhead expenses.

                                                             266
                            56. Research and development expenses

                       Item                                  Amount for the current period          Amount for the previous period

Research and development expenses                                               6,296,715,941.03                    6,052,563,108.10

                       Total                                                    6,296,715,941.03                    6,052,563,108.10

     [Note] In 2021, the R&D expenses included the employees' labor cost and direct investment cost, accounting for
more than 80% of the total R&D expenses.

                            57. Financial expense

                       Item                                  Amount for the current period          Amount for the previous period

Interest expense [Note 1]                                                       1,752,112,003.72                    1,088,369,394.87

Less: Interest income [Note 2]                                                  4,242,449,764.06                    3,708,312,903.06

Exchange gain and loss                                                             99,198,910.38                      598,702,350.00

Bank charges                                                                      125,651,596.78                          76,682,416.86
Interest charges for defined welfare benefit
                                                                                    5,141,391.00                           4,837,059.00
obligations
Others                                                                                143,865.00                           2,217,022.26

                       Total                                                   -2,260,201,997.18                   -1,937,504,660.07

     [Note 1] The above interest expenses included the long-term and short-term borrowing interest expenses and the
note discount interest expense immediately recognized upon the derecognition of notes;
     [Note 2] Both the above interest income and the "Interest income, interest expenditure" in Note V. 52 were
capital gains.

                            58. Other incomes

     (1) Classification of other incomes

                                                                                                   Amount recorded in non-recurring
                                        Amount for the current
     Sources of other incomes                                     Amount for the previous period     profit and loss of the current
                                              period
                                                                                                                 period
Government subsidies                            818,485,990.31                  1,146,204,685.40                      790,604,956.72
Handling charge refund of
                                                 13,691,263.12                     17,915,425.64                          13,691,263.12
individual income tax and others
               Total                            832,177,253.43                  1,164,120,111.04                      804,296,219.84

     (2) Government subsidies recorded in the profits and losses of current period

                                        Amount for the current
          Subsidy items                                           Amount for the previous period      Asset-related/income-related
                                              period
Financial rewards                               268,054,381.05                    450,465,248.34   Pertinent to assets and incomes
Capital      allowance           for
                                                157,603,446.43                    137,091,175.26   Pertinent to assets and incomes
development projects
Technological            innovation
                                                  99,160,068.06                   149,409,503.16   Pertinent to assets and incomes
subsidies income
Human resources subsidy                          117,247,050.67                   230,407,062.27   Pertinent to incomes

                                                                  267
                                         Amount for the current
          Subsidy items                                           Amount for the previous period           Asset-related/income-related
                                               period
Others                                           176,421,044.10                     178,831,696.37      Pertinent to assets and incomes

               Total                             818,485,990.31                   1,146,204,685.40


                               59. Income from investment

                                Item                              Amount for the current period          Amount for the previous period
Long-term equity investment income calculated by the equity
                                                                                     51,594,928.82                          35,314,343.21
method
Investment income from derivative financial instruments                             260,896,892.48                         325,129,297.18

Investment income recognized from trading financial assets                           35,466,278.80                         213,050,762.46

Others                                                                              174,105,122.48                         139,515,668.82

                                Total                                               522,063,222.58                         713,010,071.67


                               60. Incomes from changes in fair value

          Sources of incomes from changes in fair value                 Amount for the current period      Amount for the previous period

Trading financial assets and instruments                                                -2,542,451.16                      -19,994,874.52

Derivative financial instruments                                                       -70,951,646.94                      245,563,316.57

Others                                                                                  15,363,553.00                      -25,414,970.00

                                 Total                                                 -58,130,545.10                      200,153,472.05


                               61. Credit impairment losses

                                  Item                                  Amount for the current period      Amount for the previous period

Loss on bad debt                                                                      -179,275,078.48                      -41,209,742.51

Impairment losses of loans and advances                                                 28,294,208.74                      234,034,435.04

                                 Total                                                -150,980,869.74                      192,824,692.53


                               62. Asset impairment loss

                                  Item                                  Amount for the current period      Amount for the previous period

Impairment losses of contract assets                                                   -28,587,466.72                        -5,036,930.75

Inventory falling price loss                                                          -470,468,223.45                     -337,216,704.36

Impairment losses of business reputation                                              -107,051,151.70                     -124,016,686.56

Impairment losses on the construction in progress                                          -54,413.75

                                 Total                                                -606,161,255.62                     -466,270,321.67


                               63. Income from disposal of assets

             Source of income from disposal of assets                   Amount for the current period      Amount for the previous period



                                                                  268
             Source of income from disposal of assets                      Amount for the current period       Amount for the previous period
Profit from disposal of non-current assets (losses indicated with
                                                                                              6,212,295.19                       2,945,975.01
"-")
                               Total                                                          6,212,295.19                       2,945,975.01


                             64. Non-operating revenues

                                                                                                             Amount recorded in non-recurring
                                                Amount for the             Amount for the previous
                    Item                                                                                       profit and loss of the current
                                                current period                    period
                                                                                                                           period
Government subsidies not pertinent to
                                                    83,322,120.02                      223,314,876.04                          83,322,120.02
operation
Net profit from destruction scrap of
                                                        737,924.23                           414,312.82                           737,924.23
non-current assets
Including: Gains from disposal of fixed
                                                        737,924.23                           414,312.82                           737,924.23
assets
Others                                              70,261,732.62                       63,431,533.11                          70,261,732.62

                    Total                          154,321,776.87                      287,160,721.97                         154,321,776.87

     Government subsidies recorded in current profits or losses:
                                                Amount for the             Amount for the          Amount recorded in non-recurring profit
              Subsidy items
                                                current period             previous period             and loss of the current period
Financial rewards                                   83,289,185.02             223,268,715.18                                   83,289,185.02

Others                                                  32,935.00                   46,160.86                                       32,935.00

                    Total                           83,322,120.02             223,314,876.04                                   83,322,120.02


                             65. Non-operating expenses

                                                Amount for the             Amount for the          Amount recorded in non-recurring profit
                    Item
                                                current period             previous period             and loss of the current period
Net loss from destruction scrap of
                                                    16,698,680.87                8,334,512.45                                  16,698,680.87
non-current assets
Including: net losses from destruction
                                                    16,698,680.87                8,334,512.45                                  16,698,680.87
scrap of fixed assets
Others                                              11,750,889.43               13,406,618.43                                   11,750,889.43

                    Total                           28,449,570.30               21,741,130.88                                  28,449,570.30


                             66. Income tax expenses

     (1) Table of income tax expenses

                     Item                             Amount for the current period                   Amount for the previous period

Income tax expenses of the current period                                  3,952,404,363.46                                  2,745,896,993.46

Deferred income tax expenses                                                  18,939,502.22                                  1,283,798,240.06

                     Total                                                 3,971,343,865.68                                  4,029,695,233.52

     (2) Adjustment process of accounting profits and income tax expenses



                                                                     269
                                           Item                                                         Amount for the current period

Total profits                                                                                                             26,803,237,498.57

Income tax expenses calculated by the statutory/applicable tax rate                                                        4,020,485,624.79

Impact by different tax rates applicable to subsidiaries                                                                     194,827,963.39

Impact by non-deductible costs, expenses and losses                                                                           56,839,496.07
Impact by deductible temporary differences or deductible losses of deferred income tax
                                                                                                                             234,302,496.48
assets not recognized in the current period
Others                                                                                                                      -535,111,715.05

Income tax expenses                                                                                                        3,971,343,865.68


                             67. Items of cash flow statement

      (1) Other cash received relating to operating activities

                     Item                                  Amount for the current period                Amount for the previous period

Government subsidies                                                         1,975,966,016.65                              1,521,419,832.12

Interest revenue                                                               188,322,311.64                                 83,834,745.40
Net decrease in bill pledge deposits and
                                                                               377,056,472.79                              1,833,792,536.95
guarantee deposits
Margin, deposit and others                                                   1,397,356,516.94                              1,259,280,898.85

                    Total                                                    3,938,701,318.02                              4,698,328,013.32

      (2) Other cash payment related to operating activities

                                                                                                                 Amount for the previous
                                  Item                                       Amount for the current period
                                                                                                                        period
Cash repayments for selling expenses                                                        9,807,177,220.69              13,357,256,381.18

Cash repayments for overhead expenses and R&D expenses                                      1,355,681,755.66               1,591,137,889.61

Return of advance project funds                                                              166,827,066.61                   73,050,795.30

Others                                                                                      1,395,517,552.83                 509,047,033.72

                                  Total                                                    12,725,203,595.79              15,530,492,099.81

      (3) Other cash received relating to investing activities

                                                                                                                 Amount for the previous
                                  Item                                        Amount for the current period
                                                                                                                        period
Receipts from forward foreign exchange settlement and purchasing                            2,659,865,473.92                 342,260,149.12

Net decrease in fixed deposit and others                                                   45,191,721,722.13               3,980,389,291.30

                                  Total                                                    47,851,587,196.05               4,322,649,440.42

      (4) Other cash paid relating to investing activities

                                                                                                                 Amount for the previous
                                  Item                                        Amount for the current period
                                                                                                                        period

                                                                      270
                                                                                                               Amount for the previous
                                     Item                                      Amount for the current period
                                                                                                                      period
Net increase in time deposits and payment for forward foreign
                                                                                                                        5,542,024,468.66
exchange settlement and sales
Others                                                                                        10,532,866.10

                                     Total                                                    10,532,866.10             5,542,024,468.66

         (5) Other cash paid relating to financing activities

                                                                                                               Amount for the previous
                                     Item                                      Amount for the current period
                                                                                                                      period
Received subscriptions for employee stock ownership plan                                   1,143,534,793.64

                                     Total                                                 1,143,534,793.64

         (6) Other cash paid relating to financing activities

                                                                                                               Amount for the previous
                                     Item                                      Amount for the current period
                                                                                                                      period
Net increase in pledge margin on borrowings                                               16,441,927,495.00             9,825,529,906.65

Cash paid for repurchase of stocks                                                        21,819,537,788.45             5,182,273,853.90

Others                                                                                     1,645,086,434.41                 6,709,713.08

                                     Total                                                39,906,551,717.86           15,014,513,473.63


                               68. Supplementary information about cash flow statement

         (1) Supplementary information about cash flow statement

                                                                                                               Amount in the previous
                          Supplementary information                            Amount in the current period
                                                                                                                      period
1. Convert net profit to cash flow from operating activities:

Net profit                                                                                22,831,893,632.89            22,279,242,195.27

Add: Assets depreciation reserves                                                            757,142,125.36              273,445,629.14
    Fixed asset depreciation, oil and gas assets accumulated
                                                                                            3,476,137,137.22            3,377,378,887.04
depreciation, productive biological assets accumulated depreciation
         Amortization of intangible assets                                                   168,287,721.43               211,327,446.74
     Losses on disposal of fixed assets, intangible assets and other
                                                                                               -6,212,295.19               -2,945,975.01
long-term assets (incomes marked with “-”)
         Loss from retirement of fixed assets (earnings are marked with
                                                                                               15,960,756.64                7,920,199.63
"-")
         Losses from changes in fair value (incomes marked with “-”)                         58,130,545.10             -200,153,472.05

         Financial expenses (incomes marked with “-”)                                    -2,206,918,302.50           -3,117,118,954.25

         Investment losses (earnings are marked with "-")                                    -522,063,222.58             -713,010,071.67

         Decrease in deferred income tax assets (increase marked with “-”)                 -201,498,429.60             993,661,744.02
         Increase in deferred income tax liabilities (decrease marked with
                                                                                             220,437,931.82              290,136,496.04
“-”)
         Decrease of inventories (increase marked with “-”)                             -13,233,904,716.97           -3,734,232,466.37

                                                                         271
                                                                                                                  Amount in the previous
                        Supplementary information                             Amount in the current period
                                                                                                                         period
       Decrease in operating receivables (increase marked with “-”)                     -2,983,553,411.83              15,242,828,006.57

       Increase in operating payables (decrease marked with “-”)                        -7,479,006,628.48             -18,480,942,047.82

       Others [Note]                                                                        999,530,415.41                2,811,099,691.88

Net cash flows from operating activities                                                   1,894,363,258.72              19,238,637,309.16
2. Major investing and financing activities not involving cash receipts
                                                                                                                                           --
and payment:
       Conversion of debt into capital

       Convertible bonds expiring within one year

       Fixed assets acquired under finance leases

3. Net changes in cash and cash equivalents:                                                                                               --

       Ending balance of cash                                                            29,951,743,758.00               24,225,049,638.15

       Less: Beginning balance of cash                                                   24,225,049,638.15               26,372,571,821.49

       Add: Ending balance of cash equivalents

       Less: Beginning balance of cash equivalents

       Net increase in cash and cash equivalents                                           5,726,694,119.85              -2,147,522,183.34

       [Note] "Others" includes the decreased amount RMB 633,908,556.69 of statutory deposit reserve and the net
decreased amount RMB 365,621,858.72 of bill margin.

       (2) Net cash paid for acquisition of subsidiaries in the current period

                                   Item                                                                  Amount
Cash or cash equivalent paid in the current period for business
                                                                                                                          1,828,275,113.56
combination that occurred in the current period
       Including: Bank deposits                                                                                           1,828,275,113.56
Less: Cash and cash equivalents held by the subsidiary on the date of
                                                                                                                             80,938,709.57
purchase
Net cash paid for acquisition of subsidiaries                                                                             1,747,336,403.99

       (3) Composition of cash and cash equivalents

                                   Item                                       Balance at the end of the period       Beginning balance

I. Monetary capital                                                                       116,939,298,776.87           136,413,143,859.81

       Including: Cash on hand                                                                   1,021,935.16                   468,623.79

              Bank deposit for payment at any time                                           7,036,671,283.79             7,302,375,145.99

              Other monetary capital for payment at any time                                   282,159,290.47               395,860,332.07
              Deposits in the central bank available for payment at any
                                                                                                 2,052,759.35                 2,108,729.48
time
              Deposits in other banks available for payment at any time                    22,629,838,489.23             16,524,236,806.82
            Fixed deposits and accrued interest not in the category of
                                                                                           49,658,731,669.74             91,852,690,730.47
cash and cash equivalents
                                                                        272
               Deposits with restricted use                                                   37,328,823,349.13             20,335,403,491.19

II. Cash equivalents
III. Balance of monetary funds and cash equivalents at the end of the
                                                                                             116,939,298,776.87            136,413,143,859.81
year
     Less: Fixed deposits and accrued interest not in the category of
                                                                                              49,658,731,669.74             91,852,690,730.47
cash and cash equivalents
     Less: Deposits with restricted use                                                       37,328,823,349.13             20,335,403,491.19

          Including: Statutory deposit reserve                                                 1,403,981,413.43              2,037,889,970.12

                    Bill, letter of credit and other deposits                                 35,924,841,935.70             18,297,513,521.07

VI. Ending balance of cash and cash equivalents                                               29,951,743,758.00             24,225,049,638.15


                              69. Assets with restricted ownership or use rights

                    Item                               Book value at the end of the period                        Restricted reason

Monetary funds                                                                 37,328,823,349.13    Statutory deposit reserve and deposits

Accounts receivable                                                               276,321,025.79    Pledged

Receivable financing                                                           12,911,461,792.08    Pledged

Contract assets                                                                   422,560,112.06    Pledged

Other current assets                                                            6,800,000,000.00    Pledged

Non-current assets due within one year                                             60,197,639.98    Pledged

Other debt investments                                                          4,717,527,970.00    Pledged

Other equity instruments investments                                            8,938,973,543.22    Restricted shares

Long-term equity investments                                                      312,711,807.79    Pledged

Fixed assets                                                                      847,908,771.37    Pledged

Construction in progress                                                          225,701,846.53    Pledged

Intangible assets                                                                 947,343,396.76    Pledged

Other non-current assets                                                           44,163,315.00    Pledged

                    Total                                                      73,833,694,569.71




                                                                       273
                              70. Monetary items of foreign currencies

     (1) Monetary items of foreign currencies

                                                 USD                BRL               Pounds               HKD                 Euro           Other currencies        Total
                    Item                     Converted into     Converted into     Converted into       Converted into     Converted into     Converted into      Converted into
                                                RMB                RMB                 RMB                 RMB                RMB                  RMB               RMB

Exchange rate as of December 31, 2021                  6.3757             1.1436               8.6064             0.8176             7.2197      Not Applicable      Not Applicable

Monetary assets of foreign currency          9,492,070,463.82     806,164,007.51     173,373,191.16        44,135,425.85      25,148,047.82          279,730.59   10,541,170,866.75

  Monetary funds                             6,449,482,697.58     227,528,885.95                            8,164,571.28       1,805,651.37           42,484.88    6,687,024,291.06

  Accounts receivable                        3,038,709,912.61     578,403,260.59     173,295,647.50        35,619,564.10      23,279,901.21          237,245.71    3,849,545,531.72

  Contract assets                                3,383,169.57                                                                                                          3,383,169.57

  Other receivables                                494,684.06         231,860.97          77,543.66           351,290.47          62,495.24                            1,217,874.40

Monetary liabilities of foreign currency     4,730,180,826.38      33,430,777.93                           20,305,305.31      79,517,507.35       28,279,931.74    4,891,714,348.71

  Short-term borrowings                      4,178,592,622.67                                                                                                      4,178,592,622.67

  Accounts payable                             277,410,941.36      31,466,447.77                           20,192,476.51       4,331,820.00       28,256,476.40     361,658,162.04

  Other payables                               176,789,758.72       1,964,330.16                              112,828.80       6,730,436.09           23,455.34     185,620,809.11

  Non-current liabilities due within one
                                                66,581,853.64                                                                 68,455,251.26                         135,037,104.90
year

  Other current liabilities                     30,805,649.99                                                                                                        30,805,649.99

     (2) Description of overseas operating entities

     No.


                                                                                         274
      Ⅵ Change in the consolidation scope

     1.      Business combinations not under common control

      (1) Business combination involving enterprises not under common control in the current period

                                                                                             Basis for       Operating
 Name of       Point of                            Equity                                                                    Net profit from
                                                                  Equity                    determinin     revenue from
   the        acquisitio         Equity          acquisitio                    Acquisitio                                    the acquisition
                                                                 acquisitio                    g the      the acquisition
Purchased        n of        acquisition cost        n                          n date                                           date to
                                                                 n method                   acquisition       date to
  Party         equity                           proportion                                                                  statement date
                                                                                               date       statement date
Gree
Altairnan
              October        1,828,275,113.5                     Purchase      October      Acquisition   694,344,061.7       -416,767,701.4
o New                                               30.47%
              31, 2021                     6                     in cash       31, 2021     of control                6                    5
Energy
Inc.

      (2) Combination cost and goodwill

                                 Cost of business combination                                                     Amount

Cost of business combination                                                                                                1,828,275,113.56

Less: fair value share of the identifiable net assets acquired                                                              1,215,497,529.64
Amount of goodwill/combination cost less than the share of fair value of identifiable net
                                                                                                                             612,777,583.92
asset acquired
      [Note 1] As described in Remark V-23 "Goodwill", GREE Titanium New Energy became a holding subsidiary
of the Company on October 31, 2021.
      [Note 2] As of the acquisition date October 31, 2021, the fair value of the identifiable net assets attributable to
the owners of the parent company of Gree Altairnano New Energy was 1,215,497,529.64 yuan, and the fair value of
the corresponding identifiable net assets was appraised by China United Assets Appraisal Group Limited, which
issued appraisal report ZLPBZ [2022] No. 1362.

      (3) Identifiable assets and liabilities of the acquired party on the date of purchase

                                                                                Gree Altairnano New Energy Inc.
                     Item
                                                       Fair value on the acquisition date            Book value on the acquisition date

 Assets:

 Monetary funds                                                               1,646,843,953.97                              1,646,843,953.97

 Trading financial liabilities                                                      10,000.00                                     10,000.00

 Accounts receivable                                                          2,779,548,017.55                              2,779,548,017.55

 Advance payments                                                              215,800,208.73                                215,800,208.73

 Other receivables                                                             234,176,292.67                                234,176,292.67

 Inventory                                                                    2,135,766,221.72                              2,135,766,221.72

 Contract assets                                                               996,806,636.13                                996,806,636.13

 Non-current assets due within one year                                           2,810,789.73                                  2,810,789.73

 Other current assets                                                          856,356,937.01                                856,356,937.01

                                                                      275
                                                                               Gree Altairnano New Energy Inc.
                       Item
                                                   Fair value on the acquisition date                Book value on the acquisition date

Long-term receivables                                                            3,014,657.86                                 3,014,657.86

Long-term equity investments                                                  390,685,789.09                                535,849,709.81

Other equity instruments investments                                             2,170,000.00                                 2,170,000.00

Investment real estate                                                         30,434,649.00                                  6,404,970.97

Fixed assets                                                                9,851,922,127.54                              8,874,157,430.70

Construction in progress                                                    2,341,162,945.24                              2,301,429,874.64

Intangible assets                                                           3,078,130,531.23                              2,103,825,250.26

Long-term unamortized expenses                                                 18,801,886.89                                 18,801,886.89

Deferred income tax assets                                                  1,906,423,128.64                              1,906,423,128.64

Other non-current assets                                                      277,326,714.43                                277,326,714.43

Subtotal of assets                                                         26,768,191,487.43                             24,897,522,681.71

Liabilities:

Short-term borrowings                                                       2,202,310,244.21                              2,202,310,244.21

Notes payable                                                               1,382,825,460.48                              1,382,825,460.48

Accounts payable                                                            4,860,305,562.25                              4,860,305,562.25

Contract liabilities                                                        5,024,137,616.68                              5,024,137,616.68

Employee pay payable                                                           49,442,281.69                                 49,442,281.69

Taxes and dues payable                                                         46,366,595.59                                 46,366,595.59

Other payables                                                              4,233,517,352.93                              4,233,517,352.93

Non-current liabilities due within one year                                    98,518,621.44                                 98,518,621.44

Other current liabilities                                                   2,088,457,921.70                              2,088,457,921.70

Long-term borrowings                                                          850,000,000.00                                850,000,000.00

Long-term payables                                                            392,843,262.75                                392,843,262.75

Deferred Income                                                             1,186,062,239.50                              1,186,062,239.50

Deferred income tax liabilities                                                13,873,952.69                                 13,873,952.69

Subtotal of liabilities                                                    22,428,661,111.91                             22,428,661,111.91

Net assets                                                                  4,339,530,375.52                              2,468,861,569.80

     (4) Profit or loss arising from the remeasurement of equity held before the purchase date at fair value

                                                                                                                   Gains or losses on
                                     Book value of equity held                                               remeasurement of previously
                                                                           Fair value on the purchase date
Name of the Purchased Party         before the acquisition date on                                             held equity interest to fair
                                                                            of share held before that date
                                         the acquisition date                                                 value before the acquisition
                                                                                                                          date



                                                                     276
                                                                                                                 Gains or losses on
                                   Book value of equity held                                               remeasurement of previously
                                                                         Fair value on the purchase date
 Name of the Purchased Party      before the acquisition date on                                             held equity interest to fair
                                                                          of share held before that date
                                       the acquisition date                                                 value before the acquisition
                                                                                                                        date
Gree Altairnano New Energy
                                              None                                   None                              None
Inc.

     (5) Method and main assumptions for determining the fair value on the date of purchase

     1) Valuation determination method: The assets and liabilities were mainly evaluated using the asset-based
            method and the income method.
     1) Key assumptions in the evaluation process.
     A. The appraised entity is capable of making timely adjustments and innovations in line with the development of
the market and science and technology, while maintaining consistency in its business scope, business methods and
management mode.
     B. Except for the fixed-asset investment on the evaluation benchmark date that there is definite evidence
showing that the production capacity will change in the future, it is assumed that the evaluated unit will not carry out
major fixed-asset investment activities that affect its operations in the future income period, and the production
capacity of the enterprise is estimated according to the condition on the evaluation benchmark date;
     C. It is assumed that in the future earnings period, the evaluated unit will maintain the turnover of accounts
receivable and accounts payable similar to the historical years, with no payment in arrears that is significantly
different from the historical years;
     D. The assets and liabilities declared by the appraised entity are free from title disputes and other economic
disputes;
     E. The appraised entity's future sources of funding and costs for R&D and production will not have a material
adverse impact on the enterprise.
     2) Reasons for asset appreciation:
     A. Machinery and equipment: the market price of some equipment increased and the depreciable life of the
     enterprise's equipment was shorter than the economic life of the equipment;
     B. Housings and buildings: there was a difference between the depreciable life and the actual economic life, and
            some buildings were built a long period of time ago, resulting in an increase in replacement costs (labor,
            materials, etc.);
     C. Land use rights: the time when the enterprise acquired the land is far from the benchmark date of the
            evaluation and the price was low, and the land price increased between the acquisition date and the current
            valuation benchmark date.

    2.      Business combination under common control
     No.

    3.      Counterpurchase
     No.


                                                                   277
    4.     Disposal of subsidiaries
                                                                                                                  The
                                                                                                             difference
                                                                                                               between
                                                                                                                   the
                                                                                                                                                                                       Amount of
                                                                                                               disposal
                                                                                                                                                                                          other
                                                                                                              price and                                                  Determina
                                                                                                                                                                                        comprehe
                                                                                                              the share                                                      tion
                                                                                                                           Proport                                                        nsive
                                                                                                                 of the                                     Gains or       methods
                                                                                                                            ion of     Book       Fair                                   income
                                                                                                             subsidiary                                      losses       and main
                                                   Equit                                                                   remaini   value of   value of                                related to
                                          Equity                                                                 's net                                      arising     assumptio
                                                     y                                                                        ng     remainin   remainin                                  equity
                              Equity     disposa           Time point                                          assets in                                      from         ns of the
                                                   dispo                Basis for determining the point at                  equity   g equity   g equity                               investment
     Company name            disposal       l               of losing                                              the                                     remeasure      fair value
                                                    sal                        which control is lost                        on the    on the     on the                                   of the
                               price     proport             control                                         consolidat                                     ment of         of the
                                                   meth                                                                    date of    date of    date of                                 original
                                         ion (%)                                                                    ed                                     remaining     remaining
                                                    od                                                                      losing    losing     losing                                 company
                                                                                                              financial                                     equity at     equity on
                                                                                                                           control    control    control                               transferred
                                                                                                              statement                                    fair value.   the date of
                                                                                                                             (%)                                                           into
                                                                                                                     s                                                      losing
                                                                                                                                                                                       investment
                                                                                                             correspon                                                     control.
                                                                                                                                                                                        profit and
                                                                                                                ding to
                                                                                                                                                                                           loss.
                                                                                                                   the
                                                                                                               disposal
                                                                                                             investmen
                                                                                                                    t.
SL Group Jiangwan Rice                                     August,                                           215,501.7               1,145,00   1,145,00                 Book
                            255,000.00      2.00   Sale                 Share Transfer Agreement                            49.00                                                      None
Industry Co., Ltd                                          2021                                                      2                   0.00       0.00                 value
SL Group Lianhe Ecology                                    August,                                           -50,939.5                                                   Book
                             21,000.00    21.00    Sale                 Share Transfer Agreement                            49.00                                                      None
Farm Co., Ltd                                              2021                                                      4                                                   value
SL Group Yuan Agriculture                                  September,   Industrial    and      commercial                                                                Book
                                          40.00    Sale                                                       2,291.72      30.00                                                      None
Co., Ltd                                                   2021         change registration                                                                              value
SL Group Lvzhiyuan                                         September,   Industrial    and      commercial    142,792.5                                                   Book
                                          40.00    Sale                                                                     30.00                                                      None
Agriculture Co., Ltd                                       2021         change registration                          5                                                   value
SL Group Dongwei Rice                                      September,   Industrial    and      commercial                                                                Book
                                          21.00    Sale                                                      92,134.32      30.00                                                      None
Industry Co., Ltd                                          2021         change registration                                                                              value
SL(Ningbo) Grain Sales                                     September,   Industrial    and      commercial                                                                Book
                                         100.00    Sale                                                      23,927.91                                                                 None
Co., Ltd                                                   2021         change registration                                                                              value


                                                                                              278
     5.    Change of consolidation scope for other reasons
     (1) Newly established entities for the current period
                                                      Date of      Net assets at the end of   Net profit from the combination
                        Name
                                                   establishment         the period            date to the end of the period
Zhuhai Gree Appliancesal and Mechanical
                                                 March 1, 2021               36,931,910.01                      6,931,910.01
Engineering (Linyi) Co., Ltd.
Wuhu Gree Intelligent Logistics Co., Ltd         March 19, 2021
Gree (Zhuhai Hengqin) GREE Development Co.,
                                                 April 25, 2021             998,450,036.83                     -1,549,963.17
Ltd.
Gree Electric Appliances (Linyi) Co., Ltd.       May 6, 2021                194,574,519.31                     -5,425,480.69

Jiangxi Jinrun Real Estate Co., Ltd              June 16, 2021               85,809,836.46                    -14,190,163.54

Changsha Kinghome Electrics Co., Ltd             July 1, 2021                 5,720,175.31                       -279,824.69
Green Electricity New Material (Maanshan)        September 7,
Technology Co., Ltd.                             2021
                                                 September 26,
Wuhan Yuli Runzhu Real Estate Co., Ltd                                        6,723,663.82                       -276,336.18
                                                 2021
                                                 October 12,
Huaxingaodao (Maanshan) Technology Co., Ltd.
                                                 2021
Zhuhai MinRoad Supply Chain Technology Co.,      November 19,
Ltd                                              2021

     (2) Other decrease for the current period

     The company cancelled its subsidiaries, SL Group Ermapao Eco-Farm Co., Ltd. and Handan YingDong New
Energy Technology Co., Ltd.




                                                             279
      Ⅶ Equity in other subjects

      1.     Equity in subsidiaries

      (1) Composition of the enterprise group

                                                                                                                        Shareholding ratio
Serial                                                               Main location      Place of            Nature of         (%)              Voting right
                              Name of subsidiary                                                                                                                       Acquisition mode
 No.                                                                 of operation     registration          business                          percentage (%)
                                                                                                                        Direct     Indirect
                                                                     Chongqing       Chongqing           Industrial
  1        Gree (Chongqing) Electric Appliances Co., Ltd.                                                                  97.00                          97.00   Establishment
                                                                     City            City                manufacture
                                                                                                                                                                  Business        combination
                                                                                                         Industrial
  2        Zhuhai Landa Compressor Co., Ltd.                         Zhuhai City     Zhuhai City                         100.00                          100.00   involving enterprises under
                                                                                                         manufacture
                                                                                                                                                                  common control
                                                                                                                                                                  Business        combination
                                                                                                         Industrial
  3        Zhuhai Gree Electrical Co., Ltd                           Zhuhai City     Zhuhai City                         100.00                          100.00   involving enterprises under
                                                                                                         manufacture
                                                                                                                                                                  common control
                                                                                                                                                                  Business        combination
                                                                                                         Industrial
  4        Zhuhai Gree Xinyuan Electronics Co., Ltd.                 Zhuhai City     Zhuhai City                         100.00                          100.00   involving enterprises under