Gree Electric, a brand that has allowed countless Chinese families to enjoy comfortable air conditioning, has frequently appeared in various controversies and questions in recent years. From the "air conditioning war" with Oaks, to the "mobile phone war" with Xiaomi, and then to the "chip war" with Huawei, Gree Electric always seems to be running counter to its core business, constantly stepping into new areas, causing confusion and concern in the market.
Recently, Gree Electric has made a big move: it is planned to take 101.5 billion yuan to acquire Gree Titanium New Energy Co., Ltd. *** hereinafter referred to as Gree Titanium) 2454% stake. Gree Titanium is a high-tech enterprise focusing on lithium battery materials and power batteries, which is considered to be an important supporting industry for new energy vehicles. This move is undoubtedly another layout of Gree Electric in the field of new energy, and it is also another prediction of Dong Mingzhu's future market.
However, as soon as this news was announced, it triggered a strong reaction from shareholders. At the opening of trading on December 20, the stock price of Gree Electric immediately plummeted. By the 20th**, the stock price of Gree Electric Appliances fell by 7 in a single day09%, with a cumulative decline of more than 13.2 billion yuan in market value.
Shareholders have sold Gree Electric's **, saying that they are not optimistic about Gree Electric's new energy road, believing that this is a wrong investment decision, which will lead to a decline in Gree Electric's performance and loss of market share. So, is this big move of Gree Electric Appliances Dong Mingzhu's foresight or the short-sightedness of shareholders?Why does Gree Electric invest in Gree Titanium?
The reason why Gree Electric invested in Gree Titanium is mainly to comply with the development trend of new energy vehicles and seize the market opportunity of lithium batteries. New energy vehicles refer to automobiles with new power systems as the main power, or new power systems and traditional power systems as joint power, mainly including pure electric vehicles, hybrid vehicles, fuel cell vehicles, etc. New energy vehicles are considered to be an effective way to solve the problems of environmental pollution, energy consumption and dependence on imports of traditional automobiles, and they are also the future development direction of the automobile industry.
According to the International Energy Agency, global sales of new energy vehicles will reach 12 million units in 2023, accounting for 10% of total vehicle sales. It is estimated that by 2030, the global sales of new energy vehicles will reach 50 million, accounting for 30% of the total vehicle sales. China, as the world's largest automobile market, is also the world's largest new energy vehicle market.
In 2023, China's NEV sales will reach 5 million units, accounting for 40% of global NEV sales. It is estimated that by 2030, China's new energy vehicle sales will reach 20 million, accounting for 40% of global new energy vehicle sales.
Lithium battery is one of the core components of new energy vehicles, and it is also a key factor affecting the performance, cost, safety and life of new energy vehicles. Lithium battery refers to a rechargeable battery with lithium as the anode material and different cathode materials and electrolytes as the components. Lithium batteries have the advantages of high energy density, low self-discharge rate, long cycle life, and no pollution, and are widely used in new energy vehicles, mobile phones, laptops and other fields.
According to the International Energy Agency, the global demand for lithium batteries will reach 20 million tons in 2023, of which new energy vehicles account for 60%. It is estimated that by 2030, the global demand for lithium batteries will reach 80 million tons, of which the demand for new energy vehicles accounts for 80%.
It can be seen that the market prospect of new energy vehicles and lithium batteries is very broad, and it is also the future development trend. Gree Electric invests in Gree Titanium in order to seize this opportunity, enter the supporting industry of new energy vehicles, and obtain the market share and profit margin of lithium batteries. Gree Titanium is a high-tech enterprise focusing on lithium battery materials and power batteries, with a number of patented technologies and production lines for lithium batteries, and is one of the leading lithium battery manufacturers in China.
Gree Electric Appliances received 2454% of the shares, equivalent to becoming the second largest shareholder of Greti, can play an important role in Greeti's business decision-making, technology research and development, market expansion, etc., and can also use Greeti's resources and channels to further expand its new energy vehicle business.
Gree Electric's investment in Gree Titanium is a decision with both advantages and disadvantages, both risks and opportunities. Gree Electric's investment in Gree Titanium is Dong Mingzhu's foresight or the short-sightedness of shareholders, only time can tell. However, in any case, we should respect the choice of Gree Electric, support the innovation of Gree Electric, and look forward to the development of Gree Electric. The market value of Gree Electric Appliances evaporated by more than 13 billion in a single day