Research on Financial Statement Analysis and Operational Issues of Gree Electric: Evidence on the Audit Perspective

Abstract

This paper examines Gree Electric Appliances through financial statement analysis from an enterprise strategy perspective, offering a comprehensive review of the company’s financial health and operational issues. Despite a stable overall financial position, Gree Electric faced a slight decline in net profit in 2023, suggesting underlying market challenges. The analysis highlights significant operational problems, including weak profitability, inadequate supply chain management, and elevated operating costs. These issues are attributed to a single business model, insufficient internal organization, and poor asset management. To address these challenges, the paper recommends diversifying the business model, enhancing internal processes, and improving asset management practices. Strategic initiatives such as bolstering research and development, optimizing supply chain management, and reducing operational costs are crucial for boosting profitability and securing a competitive edge. By implementing these strategies, Gree Electric can enhance its market position and effectively navigate future economic uncertainties, thereby strengthening its long-term financial stability and operational efficiency.