Gree and Wuhan Huazhong Embroiled in Annual Report Dispute

Gree (000651) denies information in the annual report of Wuhan Huanzhong Numerical Control (300161), which states the latter sold complete robots to the former.
EO: 格力否认从华中数控购买机器人 华中数控2015年报涉虚假陈述

NC Central 2015 annual report this year on February 23 release. Questioned the expression in the "Report on business development" on page 14 of the Annual Report - Part 2 namely "industrial robots and automation business", the annual report of the original words were: "At present, Huazhong CNC has been Gree Group Zhuhai factory and Wuhan plant to provide the hundreds of truss robot, equipped with home appliances production lines, with favorable results, saving artificial. "

For Huazhong CNC annual report saying the face of economic Observer inquiries, May 6, responded that Gree Group, Gree procurement in 2014 had been a number of controllers and other parts of central NC, these parts only about 30% of the cost of the machine. 2015 did not buy any of these products.

Economic Observer newspaper reporter to central NC company responsible person confirmation, it is also clear: Gree Group had never purchased from Huazhong CNC truss robot, part of its purchase of only truss robot. And the year 2015, Gree has not bought any such device central NC. This is obviously a far cry from Huazhong CNC annual report presentation content.

"A truss robot and part of the truss robot, are an entirely different concept." An anonymous person on the Economic Observer newspaper bluntly.

The Gree representative is saying the firm purchased components for the robot, but not the entire robot itself. The next part gives more detail, stating the robots in question are cartesian or gantry robots. Gree says they bought some components, Wuhan Huazhong says they sold the key components and Gree build the body.

Recently released 2015 annual report, in which an industrial robot and automation business representation, let Huazhong CNC caught in the whirlpool of false statements in annual report.

Question is, in the end for the NC Central Gree Group provides is only part of the robot truss robot, happened in the end was a couple of years ago or purchase occurred in 2015, or until there is cooperation extended to 2015?

The so-called truss robot also called Cartesian robots and gantry robots. Industrial applications, it can carry objects, operating tools to complete a variety of jobs.

NC Central Division, general manager of the robot Huangtong Jun told the Economic Observer reported, Gree about 600 or 800 around the truss-type robot, the control system, servo drives, servo motors and other sets of products are all provided by the NC Central.

NC Central China subsidiary management has several robots have about the same expression, but it is said that the number of about 600.

In other words, a lot of Gree truss robot software, as well as servo motor supplied by NC Central.

But in addition, the robot body structure truss structure and mechanical drive system of the body, but also the support base and actuators of the robot. The important part of the truss robot is central NC has to offer?

"Gree robot body's own production." Huang Tongjun and management subsidiary of China Huazhong CNC robot number are on the Economic Observer reported.

Huangtong Jun told the Economic Observer reported that the robot body is estimated to trusses, rail, etc. produced by the Gree, but the entire electric control part of all is the central NC provided, including controllers, servo drives and motors.

Reporters learned from the confirmation stakeholders Gree Group, Gree truss-type robot is used pre Huazhong CNC and servo motor control system, but not purchase robots, and 2015 did not purchase any of the truss robots and other equipment from NC Central.

What's the big deal here? Gree builds household electronics, who cares if Gree bought the whole robot or the key components? Well, it turns out in its annual report, Gree said its entered the field of robotics...

The truth come out. The new question is, Gree provide robotic equipment presentation and disclosure in 2015 annual report, "Report of business development," a chapter. For a report on the 2015 Annual Report, the "Reporting Period", obviously referring to the year 2015.

Original writing in this section is:. "Currently, Huazhong CNC has provided for the Gree Group, Zhuhai factory and Wuhan factories with hundreds of truss-type robot, equipped with home appliances production lines, with favorable results, saving artificial" However, Huang Tongjun when the economic Observer reported, the company provides these products Geli time, two or three years ago, Gree has just started doing this automated production lines, and the reporter Gree aspects confirmation also confirms the above that pile of business does not happen in 2015. But even earlier, "It was a long time ago things, did not buy Gree 2015 from Huazhong CNC anything about robotics and truss member." Another insider said Gree.

Questions one by one to unlock the same time, a new question has been born: Why in the NC Central to the majority of investors in a supposed most authoritative "report card", stated in the 2015 annual report, there does not match with the facts above Case?

Case for the existence of false statements in the annual report, and in the end is a typo or intentional, Huazhong CNC as well as the number of China's robot several executives chose silence, Huangtong Jun said, "do not know.

It appears the evidence favors Gree. As for why a company would want to misrepresent its robotics business, see Rent Seeking in China's Robotics Industry