Why did the share price of Gree Electric Appliances fall sharply

Mondo Finance Updated on 2024-01-30

Gree Electric ushered in a greater crisis than Wang Ziru, the last time Gree never looked at the salary slip because of Wang Ziru's sentence, the market value evaporated 50 billion, and today Gree hurt even more, the market value evaporated 11 billion, the stock price **7%, and the valuation was smashed to only 65 times, such a cheap valuation, small and medium-sized shareholders still turn a blind eye and continue to smash the market.

The main reason for the smashing is the announcement issued by Gree last night that it intends to continue to increase new energy and invest 1 billion to acquire Gree Titanium 2700 million shares, institutions heard the wind and smashed the market. The predecessor of Gree Titanium was the notorious Yinlong, and now it is almost insolvent. In 2016, Sister Dong planned to acquire Yinlong for 13 billion, but was strongly opposed by small and medium-sized shareholders. The reason is simple, it's too expensive. At that time, Yinlong's net worth was only 3.9 billion, and Sister Dong had to spend 13 billion to acquire it. What's more critical is that the performance is completely dependent on subsidies and is fundamentally unstable, and investors are rational not to agree.

But Dong Mingzhu was unwilling, since the company did not invest, Dong Mingzhu personally invested. So he pulled Liu Qiangdong and Wang Jianlin to form a bureau, and invested 3 billion together to win 22% of Yinlong's equity. Among them, Sister Dong alone invested 2.6 billion, Dong Mingzhu was so generous, she wanted to prove that some people were blind, but who would have thought that she was looking at people by herself. A year later, Yinlong's true form was revealed, not only was it revealed that he owed 1 billion to the ** business, but the founder Wei Yincang had already fled to Hawaii to bask in the sun with 1.4 billion, leaving only a bunch of messes for Dong Mingzhu.

Although Yinlong has now changed its name to Gree Titanium, it is still sparse inside, with losses of 21 in 2021, 2022, and the first half of 2023500 million, 19500 million, 1700 million. And, as of June 30, its assets are 243100 million, the debt is 242500 million, but if you lose a little more in the second half of the year, you will be insolvent immediately, and anyone with a clear eye can see that this is a junk asset, why does Gree still have to collect it?And the ** collected is not cheap as always.

According to Gree's latest purchase price**, the valuation of Gree Titanium is 4 billion, and investors feel that the valuation given is too expensive. lost a billion a year, and his net worth was only 0A company with 600 million is even worth 4 billion?The key is that in the next year, Gree will spend almost one billion yuan to acquire another 300 million shares of Gree Titanium.

In fact, what made Gree so passive was that Sister Dong was the sassy operation to acquire Yinlong, and the shareholders' meeting did not agree, so she asked Wanda, Jingdong and other bosses to buy Yinlong, and after many years, she lost all her money, and now she will use Gree Electric to buy the remaining shares of Gree Titanium, and untie the major shareholders such as Jingdong. That's why shareholders will vote with their feet and smash their own **. Where will Gree go in the future?When will a white knight appear to save Gree and have a de-Donghua.

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