Economic Observer reporter Huang YifanOn the evening of December 19, Gree Electric (000651SZ) announced that the company has signed the "Share Transfer Agreement" with 12 counterparties on December 19, 2023, and intends to transfer the total shares of Gree Titanium New Energy held by them*** hereinafter referred to as "Gree Titanium").7.1 billion shares, which accounts for 24 of Greti's total share capital54% with a transaction consideration of 101.5 billion yuan, Gree titanium shares held by Dong Mingzhu, chairman of Gree Electric Appliances, did not participate in this transaction.
Based on this calculation, in this round of transactions, the overall valuation of Gree Titanium is 413.6 billion yuan.
Gree Electric also said in the announcement that in addition to the 12 counterparties mentioned above, the board of directors of Gree authorized the management to not exceed the valuation of this transaction in the next 12 months, and to choose the opportunity to carry out the company's agreement to transfer Gree Titanium in total0.4 billion shares (accounting for 27.7 of Greti's total share capital.)53%）。
Gree Electric said in the announcement, "Gree Titanium is an important part of the company's new energy sector, as the controlling shareholder of Gree Titanium, the company is full of confidence in the future development of Gree Titanium, this transaction is an important measure for the company to practice the concept of green and sustainable development, which will help the company strengthen the management and control of Gree Titanium, give full play to the synergy between the two sides, reduce internal management costs, accelerate the implementation of Gree Electric's green energy strategy, and help achieve the goal of 'carbon neutrality'."
Investors, however, are "voting with their feet". On the first trading day after the above announcement (December 20), ** Gree Electric fell by -709%, and the stock price is 30$8 shares. This ** has set a new low in the share price of Gree Electric in 2023.
The reporter called the secretary office of the board of directors of Gree Electric Appliances to ask the company about the reasons for the company's continuous investment in Gree titanium and its views on the current stock price. A person from Gree Electric said, "The reasons that can be disclosed, we have already disclosed in the announcement." As for the impact of this investment on the stock price, the person said, "We are a listed company, we can't control the stock price, ** There will be some fluctuations due to many factors." ”
Year-to-date Gree Electric stock price action (**wind).
"Love" Gree Titanium
According to industrial and commercial data, Gree Titanium was once known as Yinlong New Energy Co., Ltd., located in Zhuhai City, Guangdong Province.
In December 2016, Dong Mingzhu announced in a high-profile manner that he would personally invest 1 billion yuan in Gree Titanium (note: at the time, it was called Yinlong New Energy Co., Ltd., she also pulled Wanda Wang Jianlin, Jingdong Liu Qiangdong, CIMC and other bigwigs and enterprises, and invested a total of 3 billion yuan in Gree Titanium, and then obtained Gree Titanium 2239% equity.
At the end of August 2021, Gree Electric Appliances won 182.8 billion yuan to obtain Gree titanium 3047% equity.
Tianyancha shows that the largest shareholder of Gree Titanium is Gree Electric Appliances, with a shareholding ratio of 3047%；The second shareholder is Dong Mingzhu, with a shareholding ratio of 1746%。
It is worth mentioning that according to Gree Electric's 2023 semi-annual report, Dong Mingzhu will hold 1746% is entrusted to Gree Electric Appliances, so before this transaction, Gree Electric Appliances held a total of 4793% of the voting rights.
*: Gree Electric's 2023 semi-annual report.
According to the announcement, after this transaction, Gree Electric will directly hold Gree Titanium 60.7 billion shares, which account for 55% of Greti's total share capital01%。At the same time, Gree Electric Appliances has arranged to own Gree Titanium 1. held by Dong Mingzhu through voting rights entrustmentVoting rights corresponding to 9.3 billion shares. Combined, Gree Electric will control Gree Titanium 7247% of the voting rights.
It is worth mentioning that Gree Electric also said in this transaction announcement that it will continue to increase its holdings in Gree Titanium in the next 12 months. If the announcement says, "no more than 30.4 billion shares" is 2753% of the top grid calculation, Gree Electric Appliances and Dong Mingzhu will hold a total of 100% of the equity of Gree Titanium.
However, Gree Electric also said in the announcement that there is a certain uncertainty in the proportion of Gree titanium shares that will be transferred in the end, and the actual transaction will be subject to the share transfer agreement signed at that time.
The target Gree Titanium lost 1.9 billion yuan last year
Gree Electric told reporters that this foreign investment does not need to be submitted to the company's general meeting of shareholders for deliberation.
What is the charm of Gree Titanium, which makes Gree Electric "have a soft spot".
The above-mentioned Gree Electric Appliances said that at present, Gree Titanium's main products are divided into two parts: new energy and energy storage systems.
In the announcement of Gree Electric Appliances, 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 appliances.
According to Gree Electric Appliances, "the lithium titanate battery developed by Gree Titanium has outstanding safety, and has been selected as the 'National Manufacturing Single Champion Product' by virtue of its high safety, large rate, fast charging and discharging, wide temperature resistance, long life and other characteristics, and is widely used in new energy vehicles and industrial and commercial parks, communication base stations, power grid frequency modulation, rail transit, wind and solar consumption, ship shore power, family housing, military scientific research and other energy storage fields, with broad market prospects and application value." Gree Titanium adheres to independent innovation and research and development, and has launched two series of new energy commercial vehicle products for commercial vehicles and special vehicles.
Zheng Dandan, an analyst of power equipment and new energy at Zheshang, pointed out in the research report that compared with the currently widely used lithium iron phosphate batteries and ternary lithium batteries, lithium titanate batteries have more advantages in cycle life and fast charging efficiency, and can be used in suitable scenarios (such as buses with fixed lines) to avoid the shortcomings of low energy density.
An executive of a battery application research and development company in the field of energy storage told reporters that the company did not consider lithium titanate batteries before developing products. The reason is "low energy density (note: energy density, refers to the energy emitted per unit mass or unit volume of battery), *high". He said: "Lithium titanate is said to have better performance at low temperatures, and the technology will be better in the field of fast charging. However, the energy density is too low, which makes it very difficult to apply."
Greti is not yet profitable.
According to the announcement, in 2022, Greti's operating income will be 258.7 billion yuan, operating profit of -196.9 billion yuan, net profit of -190.5 billion yuan, net cash flow from operating activities was 04.5 billion yuan, with a total owner's equity of 23.8 billion yuan.
The unaudited financial data of Gree Titanium in the first half of 2023 shows that from January to June 2023, Gree Titanium's operating income was 14400 million yuan, operating profit of -14.2 billion yuan, net profit of -17.1 billion yuan, net cash flow from operating activities from January to June 2023 was 20.9 billion yuan, the total owner's equity is 06.6 billion yuan.