On December 20, the share price of Gree Electric Appliances, which has thick eyebrows and big eyes, fell by as much as 709%, and the market value evaporated more than 13.2 billion yuan in one day.
In the short term, the main culprit of the sharp drop in stock prices is Gree's intention to increase the capital operation of Gree Titanium, however, many investors in the stock bar vented their anger on Dong Mingzhu, believing that Dong Mingzhu had previously criticized Meng Yutong for causing the trouble. Some investors even voiced the "de-dongization".
The stock price plummeted, but investors let Dong Mingzhu take the blame. Behind this, it may reflect Gree's transformation dilemma.
Blame Dong Mingzhu?
On December 20, the stock price of Gree Electric Appliances, the former white horse stock, fell at the opening, and the decline was fixed at 709%, 13.2 billion market value disappeared.
As for the reason for the stock price, some investors believe that this is related to Dong Mingzhu's criticism of Meng Yutong's words. Some investors even expressed the meaning of "de-dongization" in the stock bar.
To tell the truth, the stock price of Gree Electric Appliances has plummeted this time, and Dong Mingzhu should not be responsible for it.
Once upon a time, Dong Mingzhu interacted closely with his former secretary Meng Yutong, earning enough traffic and eyeballs. But after Meng Yutong resigned, Dong Mingzhu expressed his dissatisfaction several times. Since December, Dong Mingzhu has talked about Meng Yutong twice. On December 13, Dong Mingzhu said, "When a secretary can't even write an article, I don't know what secretary it is, and becoming an Internet celebrity with the help of our platform has played a bad role in the company, so I fired her." ”
On December 18, Dong Mingzhu said, "A person's behavior is impossible to see through his life, if he uses the wrong person, it is called making a mistake, choosing Meng Yutong is not called using the wrong person, it is her own choice, and the path of life is her own choice." ”
Toutiaojun found that Dong Mingzhu's two speeches against Meng Yutong did not have much impact on Gree's stock price except for Li Guoqing's suggestion. If you have to find a reason for the sharp drop in Gree's stock price, the announcement on December 19 may be the "culprit".
According to the announcement, Gree Electric intends to transfer about 27.1 billion shares to increase the holdings of Gree Titanium, the transaction price is about 101.5 billion yuan. Dong Mingzhu's shares in Gree Titanium do not participate in this transaction. After the completion of the transaction, Gree Electric will control the total share capital of Gree Titanium 7247% of the voting rights, of which 55 are directly held by Greti01% of the shares.
Does Gree Titanium have a "way to make money"?
In the eyes of many professionals, capital is not optimistic about Gree plus Gree Titanium. The 7% drop in a single day is also the attitude of secondary market investors to this transaction. Some people in the industry even believe that if the precipice is not reined in, Gree may have to go to a new low. In fact, investors in the secondary market have not been very optimistic about Gree's acquisition of Gree Titanium.
As early as 2016, Dong Mingzhu once promoted Gree Electric to plan to acquire 100% of the shares of Gree Titanium (still called Zhuhai Yinlong New Energy at that time) for 13 billion yuan. However, the deal did not pass the approval of Gree's shareholders' meeting. Subsequently, Dong Mingzhu invested in shares in his personal name and became the second shareholder.
I have to say that Dong Mingzhu is true love for Yinlong New Energy. When the company went through "many disasters", Gree Electric chose to "take over" in August 2021 and spent 182.8 billion yuan was 30 percent of the company47% of the shares, became the controlling shareholder of Yinlong New Energy, and renamed it Gretitanium.
Although there is Dong Mingzhu's endorsement, Greti's performance does not satisfy investors. In 2022, Gree Titanium will achieve revenue of 258.7 billion yuan, with a net profit loss of 190.5 billion yuan. In the first half of this year, Gree Titanium still did not stop the loss trend, although it achieved revenue of 14400 million yuan, but the net profit is still a loss of 17.1 billion yuan.
For Gree Titanium, Dong Mingzhu still said at the shareholders' meeting in June that there is absolutely no problem with the technology of this enterprise, and if it were not for the former boss digging a pit, this is a very good company. In Dong Mingzhu's view, Gree Electric's optical storage and air storage are used by Gree Titanium's batteries.
However, most investors are obviously dissatisfied with Gree Electric Appliances taking real money to continue to increase its holdings in a company that cannot contribute net profits. In the face of investors' "voting with their feet", Gree Electric released a 2023 performance forecast that exceeded expectations at more than 1 am on December 21.
Gree needs to change
The share price of Gree Electric Appliances fell by 7%, why do some investors blame Dong Mingzhu in the stock bar?Behind this, it may reflect Gree's transformation dilemma.
Once upon a time, with the products of "mastering core technology" and the dealer network of cross-shareholding, Gree Electric Appliances dominated the air conditioning market for more than 20 years in the era when the channel was king. Nowadays, as the air conditioning market enters the stock era, Gree Electric Appliances is becoming more and more difficult to play.
Whether it is Meng Yutong or Wang Ziru, it is Gree's efforts to get closer to youth. However, cultivating an Internet celebrity is only a process of brand rejuvenation, and it does not mean that the product is younger. So far, Meng Yutong has not become Gree's "Li Jiaqi". Many of Wang Ziru's remarks were also ridiculed by netizens.
Toutiaojun believes that when Li Jiaqi's sales on Double 11 can be worth the annual revenue of thousands of A-share listed companies, when Dong Yuhui can still be promoted after the "small composition" incident, and when Gome Electric is already empty, the business logic of this world is being reconstructed. For Dong Mingzhu and Gree, digital and online transformation is the trend of the times, but this is not simply relying on shocking words to win attention, nor is it relying on gimmicks to get traffic.
Toutiaojun believes that Gree's top priority, first, is to understand the changes in business logic in the digital ageThe second is to understand the user and be able to launch disruptive products. You see, Huawei, which really "masters the core technology", doesn't even need to open a press conference, and the mobile phone can be sold out on the whole network. Looking at it again, Pinduoduo is invincible in overseas markets by virtue of its first-chain integration capabilities.
In any case, in the context of diversification attempts are still not improving, Gree Electric, which has been established for 34 years, needs to make changes.