This article**: Times Business School Author: Huang Rui Chen Jiaxin
* |Times Business School.
Author |Huang Rui, Chen Jiaxin.
Edit |Chen Jiaxin.
Gree Electric (000651.)SZ) has been frequently searched recently, first Chairman Dong Mingzhu angrily reprimanded former employee Meng Yutong, and then increased his holdings of Gree Titanium New Energy Shares by 1 billion yuan, hereinafter referred to as "Gree Titanium") shares were voted by shareholders, and then clarified the rumors of infringement Oaks.
However, from the perspective of operation, the biggest impact is still the 1 billion yuan increase in Gree titanium shares. The day after the announcement of the increase in holdings, on December 20, the share price of Gree Electric fell by 709%, the market value evaporated 13.2 billion yuan, as of December 29**, the market value is still 5.5 billion yuan lower than before the announcement of the increase.
According to the announcement, behind the 12 shareholders of Gree Titanium's equity, Jingdong (JD.) emergedo), Wanda Group (Dalian Wanda Group Co., Ltd., Shaanxi Coal Group (Shaanxi Coal Chemical Group Co., Ltd.) and other well-known enterprises. Gree Electric also said in the announcement that it will continue to communicate with other shareholders about the transaction of the remaining shares of Gree Titanium.
From the perspective of the situation, Gree Titanium's equity is in a situation of "Gree advances, capital retreats", and Gree Electric Appliances and the capital market may have a large difference in the future value of Gree Titanium.
No matter how the outside world reacts, the management of Gree Electric is still optimistic about Gree Titanium as always, and in the view of Gree Electric Appliances, Gree Titanium is an important part of its "green energy ambition".
Gree's green energy ambition
In the 2022 annual report, when introducing the green energy strategy, Gree Electric said that the company continues to make efforts in the field of green energy, is committed to the research and product development of key technologies of new energy appliances and near-user energy Internet systems, and collaboratively builds a new ecology of energy informatization and DC, and promotes the transformation of the green economy.
Judging from the layout of Gree Electric's official website, Gree Electric attaches great importance to its green energy strategy. As shown in the figure below, Gree Electric takes "New Energy Ecology" as one of the top five columns on the official website, alongside the company introduction and the online ** column.
Click on the "New Energy Ecology" page, and you can see two parts: "Gree Zero-carbon Healthy Home" and "Optical Storage Air Conditioning System".
Among them, "Gree Zero Carbon Healthy Home" introduces a set of smart home solutions, which focus on energy conservation and environmental protection, comfortable and healthy life, including energy management system, air management system, health management system, etc.
The main content of the "photovoltaic storage and air conditioning system" is "the seamless combination of photovoltaic and air conditioning, the power consumption of the unit is self-sufficient, and the surplus electricity is connected to the Internet in real time".
In the 2022 annual report, Gree Electric said that the company's photovoltaic (storage) air conditioning system sector has achieved full coverage of multi-line, screw machine, centrifuge, condensing machine, module machine, and split machine, which effectively fits more application scenarios;It covers many types of typical climate zones around the world, serves many countries and regions, and has more than 12,000 landing projects.
The battery technology of Gree Titanium has an important value for the "storage" part of Gree Electric's "optical storage and air conditioning system".
Gree Electric said in a supplementary announcement on foreign investment issued on December 21 that the acquisition of Gree Titanium was to "accelerate the implementation of the company's green energy strategy".
According to the data of Gree Titanium ** and Polaris Energy Storage Network, the lithium titanate material used in Gree titanium batteries is safer and longer than conventional lithium batteries, and its shortcomings "low energy density" do not have much negative impact on the demand for household energy storage, and can form a good synergy with Gree Electric's new energy vision.
Is Gree titanium "gold" or "sand"?
Dong Mingzhu once said in public: "Yinlong (Gree Titanium) is gold buried in the sand, and Gree wants to remove the sand through acquisition and let it shine." ”
Gree Electric Appliances has also said in public that the acquisition of Yinlong New Energy (Gree Titanium's former name) is not mainly for the purpose of building cars, but the development of Gree Electric Appliances needs battery technology, Gree Electric Appliances believes that energy storage is a necessary product for families in the future, and it is also the current development direction of Gree Electric Appliances, no matter from the perspective of safety or operating costs, Yinlong New Energy has advantages.
Nowadays, the development prospects of energy storage batteries are still unanimously optimistic about the outside world, but the choice of battery technology route is different.
According to the announcement of Gree Electric Appliances, Gree Titanium takes "lithium titanate" as its main battery technology route, and public information shows that lithium titanate batteries have the advantages of long life and safety compared with other types of lithium batteries.
However, many other types of lithium batteries today have increased the number of charge and discharge times, and the safety design has become more and more mature, which has led to the weakening of the advantages of lithium titanate batteries.
For cost-conscious energy storage batteries, the disadvantages of lithium titanate batteries may be more fatal. According to the data released by Ofweek Lithium Power Grid in January 2022, lithium titanate batteries are about 2 3 times that of lithium iron phosphate, and they are not competitive.
From the perspective of market share, although it has been developed for many years, lithium titanate batteries are still niche lithium battery products. According to data from the China Automotive Power Battery Industry Innovation Alliance, from January to July 2023, the output of lithium titanate batteries (power and energy storage batteries) will be 642 MWh, with a market share of only 0 in the power and energy storage battery market0186%, less than 01%。
As a supporter of the lithium titanate battery route, Gretitanium's performance is also poor.
According to the "Report on Issuing Shares to Purchase Assets and Raising Matching Funds and Related Party Transactions" issued by Gree Electric in 2016, in 2015, Zhuhai Yinlong's operating income was 386.2 billion yuan, with a net profit of 41.6 billion yuan, and the total owner's equity at the end of June 2016 was 4.2 billion yuan.
According to the "Announcement on Foreign Investment and Related Party Transactions" issued by Gree Electric Appliances on December 19, 2023, in 2022, Gree Titanium's operating income will be 258.7 billion yuan, with a net profit of -190.5 billion yuan;At the end of June 2023, the owner's equity was only 06.6 billion yuan.
That is to say, after many years, Greti's operating income, net profit, and owner's equity have not increased but decreased.
As for whether Gree titanium is "gold" or "sand", Gree and the capital market may have big differences.
Gree advances, capital retreats
In October 2016, at the extraordinary general meeting of shareholders held by Gree Electric Appliances, the proposal to acquire Zhuhai Yinlong New Energy *** hereinafter referred to as "Zhuhai Yinlong", Gree Titanium's former name) was vetoed, Dong Mingzhu was exposed to frenzy on the spot, angrily reprimanding shareholders for "looking at the three points in front of them".
After the turmoil, in December 2016, Dong Mingzhu found Wang Jianlin, Liu Qiangdong and other partners, and announced that he would cooperate with Wanda Group and CIMC Group (000039SZ), Beijing Yanzhao Huijin International Investment Co., Ltd., and Suqian Hanbang Investment Management, a subsidiary of JD.com, jointly invested 3 billion yuan and obtained Zhuhai Yinlong 2239% of the shares, of which Dong Mingzhu holds 784%。
Behind the 12 investment institutions of Gree Titanium Co., Ltd., well-known enterprises such as Jingdong and Wanda Group have emerged. Among them, Beijing Honghang Cultural and Creative *** transferred all its holdings of Gree Titanium 373% equity, the company is 100% indirectly owned by Wanda Group;Beijing Automobile Guangxing Information Technology *** transferred all its holdings of Gree Titanium 224% equity, the company is indirectly owned by JD Hong Kong International*** 100%.
It is worth mentioning that, judging from the valuation of Greti, investors such as JD.com and Wanda Group, which invested in 2016, are expected to suffer heavy losses. In terms of transaction consideration and equity ratio, the valuation of Gree Titanium was as high as 13 billion yuan when the capital increase was increased in 2016, and the valuation of Gree Titanium in this transaction was only 4.1 billion yuan.
In addition to the 12 trading parties who have signed the share transfer agreement, Gree Electric made it clear in the announcement that the company will continue to communicate with other Gree Titanium shareholders (excluding Dong Mingzhu) on the transfer of their Gree Titanium shares.
References] 1"Gree Electric Appliances: Announcement on Foreign Investment and Related Party Transactions".Company Announcement 2023-12-19
2."Gree Electric Appliances: Zhuhai Gree Electric Appliances Co., Ltd. *** Foreign Investment and Related Party Transactions Supplementary Announcement".Company Announcement 2023-12-21
3."Gree Electric Appliances 2022 Annual Report".Company Announcement 2023-04-28
4."Gree Electric Appliances: Issuing Shares to Purchase Assets and Raising Matching Funds and Related Party Transaction Report (Draft) Revised Draft".Company Announcement 2016-09-01
5."Gree Electric Appliances: Announcement on the Issuance of Shares to Purchase Assets and Raise Matching Funds and Related Party Transactions".Company Announcement 2016-08-24
6."Fengqi Lithium Battery Energy Storage Lithium Titanate New War".Polaris Energy Storage Network. 2021-01-07
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