Gree Electric purchased the corresponding equity of Gree Titanium at a premium of 16 times, and the transferor involved Wanda Group, JD.com, Chinese-funded Group, etc.
Text: Ne-Salon New Energy Gathering Group
Recently, Gree Electric, a well-known domestic home appliance giant, has risen again and again. The discussion between Chairman Dong Mingzhu and Meng Yutong has not had time to subside, and today, the news of the sharp drop in the share price of Gree Electric Appliances has caused heated discussions in the market, especially on the "new energy dream" involved in it and the increase in the shareholding plan of the subsidiary Gree Titanium.
According to the latest data, since the opening of the market on December 20, 2023, the share price of Gree Electric has been **, and finally closed at 308 yuan shares, **709%, the total market value fell to 173.4 billion yuan, evaporating more than 13 billion yuan from the previous day's market value.
According to industry analysis, the sharp drop in stock prices is likely to be related to the "big move" announced yesterday. Yesterday, Gree Electric issued an announcement on foreign investment and related party transactions, and the company intends to increase its holdings of Gree Titanium New Energy shares by transferring the shares held by existing shareholders to increase the transaction price of about 101.5 billion yuan, the trading shares account for 24 of Greti's total share capital54%。The transaction does not involve shares in Dong Mingzhu, chairman of Gree Electric Appliances. This means that after the completion of the transaction, Gree Electric will control a total of 72 of the total share capital of Gree Titanium47% of the corresponding voting rights. Among them, the corresponding voting rights of Gree Titanium shares directly held by Gree Electric Appliances account for 55% of Gree Titanium's total share capital01%, the voting rights corresponding to the shares of Gree Titanium held by Dong Mingzhu account for 17 of the total share capital of Gree Titanium46%。
In addition, according to the announcement, Gree Electric also plans to continue to increase its stake in Gree Titanium in the next 12 months, and may even choose the opportunity to acquire the remaining shares, and finally realize the wholly-owned acquisition of Gree Titanium. This move was interpreted by the market as Gree to further increase its energy storage business and increase investment in the new energy track.
It is also worth noting that the transaction price is 101.5 billion yuan, the intermediary took December 31, 2022 as the valuation base date, and according to the valuation results of the income method, the value of 100% of Greti's equity was 413.8 billion yuan. As of December 31, 2022, Greti's net assets were 23.8 billion yuan. Based on this calculation, the appraised value is 3.9 billion yuan, and the value-added rate is 163865%。According to this analysis, Gree Electric Appliances purchased the corresponding equity of Gree Titanium at a premium of 16 times.
According to public information, Gree Titanium, formerly known as Yinlong New Energy, was established in 2008 and is a global comprehensive new energy industry group integrating lithium titanate core materials, batteries, motor electronic control, charging equipment, intelligent energy storage systems, pure electric vehicle research and development, production, sales and power battery echelon utilization. In the past few years, Gree Electric has been seeking to control Gree Titanium, and in 2021 it spent 182.8 billion yuan, won the company 3047% of the shares, became the controlling shareholder. The transferor of the transaction announced on December 19, 2023 involves Wanda Group, JD.com, and Chinese-funded groups.
The data shows that in 2022, Greti's revenue will be 258.8 billion yuan, with a net profit loss of more than 1.9 billion. In the first half of 2023, Greti's revenue will be 14400 million, net profit of 1700 million yuan, compared with a loss of 6 in the same period last yearCompared with 5.8 billion yuan, although it has improved, it is still not profitable. As of June 30, 2023, Greti's total assets were 2431.1 billion yuan, with total liabilities of 24.2 billion4.5 billion yuan, net assets 06.6 billion yuan, and net assets shrank by more than 5 billion yuan compared with before the acquisition.
Dong Mingzhu, chairman of Gree Electric Appliances, has always had high hopes for Gree Titanium's new energy business. At this year's shareholders' meeting of Gree Electric Appliances, Dong Mingzhu expressed full confidence in Gree Titanium's technology and development potential, and looked forward to making it a very independent subsidiary at the fastest speed, able to support itself. She expressed her belief that Gree Titanium will bring a lot of industrial linkage to Gree Electric Appliances and bring a butterfly effect. However, judging from today's sharp drop in the stock price of Gree Electric Appliances, investors do not seem to recognize this, and how to achieve profitability in the future will become an important topic for Gree Electric Appliances and Gree Titanium.
In addition, it is particularly worth mentioning that Dong Mingzhu has repeatedly mentioned "optical air storage" products. The combination of photovoltaic, energy storage and air conditioning "optical air storage" products is the business that Gree Electric focuses on. However, the "optical air storage" products actively pursued by Gree Electric Appliances do not seem to have brought the expected returns to the company. Although products such as optical storage air conditioners and optical storage all-in-one machines have covered many fields, including industrial, commercial, household, etc., and serve more than 35 countries and regions around the world, this has not driven the stock price of Gree Electric Appliances, and perhaps the market still needs time to observe whether this new business can bring stable growth to the company.
Yesterday's announcement and today's ups and downs are not only related to the interests of shareholders, but also reflect the challenges experienced by an enterprise on the road to pursuing their dreams. I hope that the future road of Gree Electric Appliances can be wider and broader and bring us more surprises! **NE-SALON