Gree Electric Appliances has recently been eventful, before the chairman Dong Mingzhu angrily reprimanded Meng Yutong's incident was frequently discussed, recently due to the increase in the holding subsidiary Gree Titanium's share price plummeted, a single-day decline of 7% almost covered the annual increase, and the market value evaporated more than 13 billion. In the early hours of this morning, the annual performance forecast and the supplementary announcement of the transaction of Greti Titanium shares were continuously released, which once again attracted public attention.
Shen Meng, executive director of Xiangsong Capital, told NetEase Finance, "Although new energy is still a policy outlet, the bubble and homogenization at this stage are becoming more and more prominent. Even if Gree Electric has the ability to control costs, it may not be well copied to the field of new energy vehicles. ”
Spend 101.5 billion yuan to increase its holdings in its holding subsidiary, Gretitanium
In the early morning of December 21, Gree Electric Appliances (SZ000651) issued two announcements after the stock price of **7%, one is a supplement to foreign investment, and at the same time announced the 2023 annual performance forecast, saying that the company's operating performance during the period was stable and upward, and its revenue and profit increased compared with the same period last year. In 2023, the company expects to achieve a total operating income of 205 billion yuan to 210 billion yuan, compared with 1901 in the same period last year5.1 billion yuan;The net profit attributable to shareholders of listed companies was 27 billion yuan to 29.3 billion yuan, an increase of 10 percent over the same period last year2%—19.6%；The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 26.1 billion yuan to 27.8 billion yuan, an increase of 8 over the same period last year8%—15.9%。The overall performance exceeded market expectations.
For the increase in Gree titanium shares, Gree Electric explained that after a long-term in-depth layout, the company has built a new energy product layout including basic devices, chips, capacitors, inverters, control systems, intelligent energy storage systems, motors, electronic controls, thermal management of new energy vehicles, commercial and special vehicles, etc., and has created an industrial ecology from basic components to terminal products, and combined with air conditioning technology to develop photovoltaic (storage) DC air conditioning and household appliance systems, and established a "photovoltaic storage direct flex" A new ecology of integrated zero-carbon energy products. In order to accelerate the implementation of the company's green energy strategy, the company intends to increase its holdings of Gree Titanium New Energy Co., Ltd. by transferring the shares held by existing shareholders, which will help the company strengthen the management and control of Gree Titanium, give full play to the synergy effect of both parties, reduce internal management costs, and respond more actively and proactively to the rapid development and changes of the new energy industry.
On the morning of the 21st, the share price of Gree Electric rose in response, and as of the noon break, Gree's share price was reported at 3121 yuan, up 133%, with a total market value of 175.8 billion yuan.
It is reported that on the evening of December 19, Gree Electric announced that the company intends to increase its holdings of Gree Titanium New Energy Co., Ltd. (hereinafter referred to as "Gree Titanium") shares by transferring the shares held by existing shareholders, and the Gree Titanium shares held by Chairman Dong Mingzhu will not participate in this transaction.
According to the announcement, the company has signed a "share transfer agreement" with 12 counterparties, and intends to transfer its total holdings of 2454% of Gree Titanium shares, the transaction price is about 101.5 billion yuan, the company will control a total of 7247% of Greti shares. In the next 12 months, the company will take the opportunity to carry out the company's agreement to transfer Gree Titanium, with a total of no more than 2753% of the shares. This means that Gree Electric may have full control over Gree Titanium. After this transaction, the shares of Gree Titanium held by Chairman Dong Mingzhu remained unchanged.
From the perspective of the transfer, Gree Titanium is valued at about 4.1 billion yuan, which is nearly 70% lower than the valuation of 13 billion yuan at the peak in 2016.
According to public information, Gree Titanium is a comprehensive new energy industry group integrating lithium titanate battery core materials, batteries, intelligent energy storage systems, new energy vehicle research, production and sales and power electrical equipment echelon utilization.
Gree Electric Appliances and Dong Mingzhu seem to be full of confidence in the prospects of Gree Titanium. In mid-June this year, at the 2022 annual performance briefing of Gree Electric Appliances, Deng Xiaobo, secretary of the board of directors of the company, said that the company continues to make efforts in the field of green energy, and currently mainly focuses on the layout of the photovoltaic (storage) air conditioning sector, new energy vehicle sector and lithium battery sector. Among them, in the new energy vehicle sector, the new energy vehicles produced by Gree Titanium have been operated in more than 230 cities across the country.
At the opening of the market on December 20, the main forces chose to sell, and the share price of Gree Electric Appliances was sharply **. As of **, the company's share price closed at 3080 yuan shares, down 709%, which is close to the lowest point of the year's stock price of 30$78 shares. The turnover for the day was 388.5 billion yuan, with a turnover rate of 222%, and the market value evaporated by 13.2 billion yuan.
Investors don't seem to be "buying" this increase. Shen Meng, executive director of Xiangsong Capital, told NetEase Finance, "Gree Titanium was finally pulled into the listed company by Gree executives in disguise, and Gree Titanium, which was originally called Yinlong New Energy, was rejected by the minority shareholders of Gree Electric Appliances. With the current situation of intensified competition, it is likely that there will be a wave of uncompetitive market players in the process of clearing out in the future, so it is not a good opportunity for listed companies. ”
Dong Mingzhu has been persistently deploying new energy for seven years
In March 2016, Dong Mingzhu announced that Gree Electric planned to reorganize Yinlong New Energy (hereinafter referred to as Zhuhai Yinlong) and planned to use 13 billion yuan to acquire 100% of Zhuhai Yinlong's equity.
At that time, Zhuhai Yinlong was infinitely beautiful: in September 2010, Yinlong New Energy signed an acquisition agreement with the United States Titanium Nanotechnology, and in July of the following year, it strategically controlled the company. After that, Yinlong New Energy chose lithium titanate battery as the technical route, and regarded lithium titanate battery as the core advantage in the official **. In 2011, he won the first 2With an investment of 1.6 billion yuan, it has successively acquired Zhuhai Guangtong Automobile and Shijiazhuang Zhongbo AutomobileIn 2015, it turned losses into profits, and the net profit of that year was as high as 41.6 billion yuan, there was a view that lithium titanate battery technology is the reason why Wei Yincang, the founder of Yinlong New Energy, attracted Dong Mingzhu, chairman of Gree Electric Appliances, to join, and the latter has also talked about lithium titanate battery technology on many occasions. At the October 2016 shareholders' meeting, Dong Mingzhu said that lithium titanate buses are expected to occupy half of China's market, and there are conservative estimates of at least 100,000 bus orders worldwide. However, the third largest shareholder of Gree Electric Appliances, the Securities Finance Company, and a large number of small and medium-sized investors voted against the acquisition, and the acquisition failed to pass.
The opposition did not stop Dong Mingzhu's determination to enter the field of new energy. In December of the same year, Dong Mingzhu in his personal name, Wang Jianlin, Lei Jun together into the shares, according to the announcement at the time, Dong Mingzhu and Dalian Wanda Group shares *** CIMC, Jiangsu Jingdong Bangneng Investment Management *** Beijing Yanzhao Huijin International Investment Co., Ltd., and Yinlong signed a capital increase agreement, jointly increased capital by 3 billion, and obtained Zhuhai Yinlong 22388% equity. Dong Mingzhu personally invested about 1 billion yuan and held 7 shares in Yinlong46%。
Subsequently, in 2017, Dong Mingzhu made great progress all the way, and increased his capital and shares twice in his personal name, with a total of 23 "contributions" before and after400 million yuan, won Zhuhai Yinlong 1746% equity.
In the next two years, Yinlong ushered in a short period of glory. In 2017, Yinlong new energy buses ranked fourth in the country with annual sales of 6,626 units, and 7,278 units were sold in 2018, ranking third after Yutong and BYD.
At the end of August 2021, the three companies held Zhuhai Yinlong 3361.9 billion shares were auctioned on the Jingdong judicial auction platform, with a starting price of 18$2.8 billion. Gree used the starting price to auction Zhuhai Yinlong 3047% of the shares, becoming the largest shareholder of Zhuhai Yinlong. At the same time, Dong Mingzhu will also hold his own 1746% of the voting rights were delegated to Gree Electric. So far, Zhuhai Yinlong New Energy has officially changed its name to "Gree Titanium New Energy Co., Ltd., and has become a subsidiary of Gree Electric Appliance Holdings."
Gree Electric said in its 2021 annual report that in 2021, it will further improve the layout of the new energy industry through the acquisition of Gree Titanium, add lithium-ion batteries, new energy commercial vehicles, special vehicles and other business areas, and build an integrated industrial chain covering lithium battery materials, lithium batteries, module packs, core components of new energy vehicles, and downstream new energy vehicles, industrial and commercial energy storage, photovoltaic (storage) air conditioning, and energy Internet systems.
In this regard, Shen Meng said, "Transformation is one of the means for Gree Electric to find a new growth curve, but it is not the only means, nor can it only choose new energy, after all, in the electrical industry, especially based on the intelligent and networked direction of R&D and innovation, the current electrical industry still has great potential to be tapped." On the other hand, new energy, although it is still a policy outlet, but the current bubble, homogenization is becoming more and more prominent, the new energy industry has entered a period of competition, and it is not conducive to enterprises like Gree Electric Appliances that do not have relevant experience and capabilities. Even if Gree Electric has the ability to control costs, it may not be well copied to the field of new energy vehicles. ”
Gree Titanium's "money" geometry under the debt
It is understood that the advantages of lithium titanate batteries are fast charging and long cycle life, but the disadvantages are low energy density, short mileage and high cost. Some industry insiders said that electric vehicles pay more attention to the cost and range of batteries. In 2016, Yinlong's single-vehicle subsidy reached 500,000 yuan. However, the new energy subsidy has gradually "slipped" since 2017, and in 2017 and 2018, Yinlong's single-vehicle subsidies were 200,000 and 120,000 respectively. From 2023 onwards, the new energy "national subsidy" policy will officially withdraw from history, and under the pressure of high costs, Yinlong's competitiveness will be wiped out.
In 2019, Yinlong's sales showed a cliff-like **, with annual sales of only 2,708 vehicles, a year-on-year decrease of 6276%。By 2022, the sales volume of passenger cars above 6 meters will be 1,789 units, a year-on-year decrease of 1165%；After the investment in 2016, the valuation of Zhuhai Yinlong reached about 13.4 billion yuan, and when Gree Electric increased its holdings in Gree Titanium, the overall appraisal price of the company was only about 413.8 billion yuan, which is 69 percent higher than in 201612%。
At the same time, Yinlong's management has also experienced some turmoil.
At the beginning of 2018, Zhuhai Yinlong was exposed to owe more than 1 billion yuan to a number of ** merchants;On January 17, 2018, the counseling status column of Zhuhai Yinlong New Energy has been displayed as "Counseling Terminated";In November, the major shareholder Yinlong Group, the actual controller of Yinlong Group, Wei Yincang, and the former executive Sun Guohua were suspected of embezzling more than 1 billion yuan of the company's interests. In April 2019, Yinlong's official Weibo issued a statement that Wei Yincang had fled, and six people, including Sun Guohua, had been criminally detained, involving a total of more than 1.4 billion yuan in embezzlement of the company's interests. According to the 2022 annual report of Gree Electric Appliances, Wei Yincang, Sun Guohua, Zhuhai Yinlong Investment Holding Group Co., Ltd., and Zhuhai Rongte Technology *** respectively provided loans of 9420,000 yuan, 68140,000 yuan, 2301980,000 yuan, 1The financial loan of 720,000 yuan has not been recovered. Yinlong has had many equity auctions, and the average equity price has increased from the initial 35 yuan per share all the way to 543 yuan.
And 11The compensation of 500 million yuan in VAM agreement is another mountain on the shoulders of Gree Titanium.
In December 2015, Sunshine Life Insurance Co., Ltd. (hereinafter referred to as Sunshine Insurance) increased its capital to Zhuhai Yinlong by 1 billion yuan, and agreed on a performance VAM. Later, due to the substandard performance of Zhuhai Yinlong, Sunshine Insurance required Zhuhai Yinlong and the original shareholders to bear the compensation liability, and the amount claimed was the original principal of 1 billion yuan and interest 1500 million yuan, a total of 11500 million yuan.
According to Gree Electric's 2022 annual report, after two ** and multiple written exchanges of opinions, the case is still in the stage of waiting for the arbitral tribunal to investigate and collect evidence and make a ruling, and the amount of litigation that Gree Titanium needs to bear cannot be estimated.
The announcement disclosed the latest financial data of Greti, as of December 31, 2022, the total assets of Gree Titanium were 2502.4 billion yuan, with total liabilities of 2478.6 billion yuan, with a total owner's equity of 23.8 billion yuan;In 2022, the target company achieved an operating income of 258.7 billion yuan, operating profit loss of 196.9 billion yuan, with a net profit loss of 190.5 billion yuan, and the net cash flow from operating activities in 2022 was 04.5 billion yuan.
In the first half of this year, Greti's performance improved. As of June 30, 2023, the total assets of the target company are 2431.1 billion yuan, total liabilities 24.2 billion4.5 billion yuan, accounts receivable 270.3 billion yuan, with a total owner's equity of 06.6 billion yuan;From January to June 2023, the target company achieved operating income of 144 billion yuan, operating profit -14.2 billion yuan, net profit -17.1 billion yuan, net cash flow from operating activities from January to June 20230.9 billion yuan.
Authors: Zheng Haoyuan, Wu Ziyuan.
Editor-in-Chief: Chen Junhong.