Gree Electric and Dong Mingzhu’s 2019: Change of ownership, re-election, struggle
2019 is an extraordinary year for Gree Electric.In April of that year, Gree Electric opened the curtain of mixed reform, and Gree Group publicly transferred the shares of Gree Electric held by it.In December of that year, Gree Electric distributed and ushered in a “big ending”.Zhuhai Mingjun eventually took 416.6.2 billion yuan to obtain a 15% stake in Gree Electric.Gao Leng Capital behind Zhuhai Mingjun officially became the largest shareholder of Gree Electric.2019 is also an extraordinary year for Dong Mingzhu.In January of that year, the 65-year-old Dong Mingzhu was re-elected as a director. With this re-election success, Gree will still be Dong Mingzhu’s era.During his current term, Dong Mingzhu and “good girlfriends” Liu Shuwei led the white electric giant Gree Electric.In this year, Dong Mingzhu once again showed the “aggressive” temperament.In June of that year, Gree publicly reported that Oaks air-conditioning products were unqualified, and subsequently launched a “price war” in the air-conditioning industry.In the face of market fluctuations in the air-conditioning industry, Dong Mingzhu’s move also “stabilized” Gree Electric’s performance that year.On April 30, Gree Electric released its 2019 financial report showing that it achieved a total operating income of 2005.0.24%; realized net profit attributable to mother 246.9.7 billion, down by 5 every year.75%.The air-conditioning business is affected by the scope of the industry, the diversification effect is beginning to appear, and the proportion of household electrical appliances revenue continues to increase.Revenue from air-conditioning revenue and growth of the household electrical appliance business. The domestic retail market of the home appliance industry in 2019 was US $ 803.2 billion, a year-on-year decrease of 2.2%; of which the retail sales of the air-conditioning market was 191.2 billion US dollars, a continuous decrease of 3.4%.The entire air-conditioning industry is aware of the pressure from the market.The financial report shows that Gree ‘s air-conditioning business has replaced less than 70% of its revenue. In 2019, Gree ‘s air-conditioning business generated 1386 revenue.6.5 billion, a decrease of 10 every year.93%, accounting for 69% of revenue.99%, 78% in the same period last year.58%; gross margin 37.12%, a slight increase of 0 a year.64%.In 2019, the topic of the air-conditioning industry is very high. Gree Electric reported that the products of Oaks were unqualified in the middle of the year. The industry will start a price war in the second half of the year.On the evening of November 9, 2019, Gree Electric announced that Double Eleven made a profit of 3 billion to combat low-quality and inferior products.Gree inverter air conditioner has a minimum of 1599 yuan and fixed frequency air conditioner has a minimum of 1399 yuan, with a total profit of 3 billion yuan.As soon as the news came out, it triggered other players in the industry to follow up.Midea, Haier, Hisense, Skyworth, Gome, Suning and other brands have also started to cut prices.Platforms such as Haier and Skyworth even slogan “eliminate old energy efficiency”, meaning that players in some industries are clearing their inventory at low prices.Gree Electric said that in 2019, many brands in the online consumer market still adopt low-price strategies, and Gree adheres to the development path of “quality e-commerce”. In a market environment where competition is tending to be fierce, Gree Electric ‘s online air-conditioning sales have increased by 16%.The category grew by 13%.At the beginning of 2019, “Dong Mingzhu’s stores” registered and distributed more than 100,000 stores, gradually reorganized and exceeded 1.4 billion, an increase of 660%.Among them, during the Double 11th period in 2019, Gree’s electrical product network sales exceeded 4.1 billion yuan, an increase of 200%. Among them, third-party platforms for air-conditioning category sales exceeded 36 throughout the day.400 million US dollars, an annual increase of 178%, the entire network of air-conditioning categories for the first time; its own platform “Dong Mingzhu’s store” full category of goods3.6.3 billion yuan, an increase of 48 times per year.In 2019, Gree Electric Adjustment Company outlined that the industry covers four major areas such as air conditioning, household appliances, high-end equipment, and communication equipment, which means that the company continues to diversify.In 2019, Gree Electric will continue to develop in the business of kitchen appliances and small household appliances, and the revenue of household appliances is 55.7.6 billion, accounting for 2% of revenue.81%, an annual increase of 46.96%.The first quarter was the most difficult quarter in the past 30 years, affecting the home appliance industry. Aowei Cloud’s total data showed that the overall first-quarter retail sales of white power declined by about 45%.Among them, the scale of the air-conditioning industry is 149.2 trillion, down 58 a year.1%; the entire air-conditioning market industry is sluggish, with severe sales.On April 30, Gree Electric released its first quarterly report for 2020, showing revenue of 203.9.6 billion, a decrease of 49 per year.70%, the net profit attributable to shareholders of listed companies.5.8 billion US dollars, an average of 72 years.53%.Air Force Gree Electric announced that due to the impact of the new coronavirus pneumonia epidemic, the terminal market of the air-conditioning industry was sold, and the installation activities were almost impossible to achieve. The company and upstream and downstream enterprises could not resume work in time. In the first quarter, the terminal consumer demand in the air-conditioning industry shrank and newThe expected impact of the implementation of energy utility standards has further intensified industry competition, and the company continues to implement active promotional policies.In the evening of April 29, Dong Mingzhu said in an interview with Sauna Nightnet, “This year is the hardest quarter of my 30 years in Gree.This epidemic is the first time in history that such a severe disaster has occurred. Gree Electric Appliances lost 30 billion sales in the first quarter, which was a big shock.”Dong Mingzhu told the sauna, Yewang,” To face the difficulties positively, even if the government has given us more resources, if we just lie there, we still can’t get back to life.When the government gives enterprises resources, enterprises must exert their own efforts.Therefore, we established Gree Health Medical Equipment Company.”Gree Electric, which has few stock repurchases, has also started a repurchase plan.On the evening of April 12, Gree Electric announced that it planned to use its own funds to repurchase the company’s shares in a centralized auction transaction, with a total capital of not less than 3 billion and not more than 6 billion.On April 9, Gree Electric ‘s debt financing tool with a maximum of US $ 18 billion was approved.The epidemic is currently slowing, but the aftermath is still rippling.Dong Mingzhu told the sauna, Yewang, “Despite the resumption of production in April, the liquidity is still very small. We were affected in the first quarter and still affected before the second quarter.”In the face of the industry and the impact of the epidemic, will the revenue target be adjusted?Dong Mingzhu said that revenue of 600 billion yuan is still the target, unchanged.”If the goal is changed because something happened, there is no direction and the goal must not change.I’m doing my best. If the goal is not achieved, it’s just a little bit harder.If you now set what you can get at hand, it is not called a target.”Sauna, Ye Wang Chen Weicheng editor Sun Yong proofreading He Yan