During the national two sessions in March this year, Dong Mingzhu insisted in an interview with the media that the mobile phone business is not a failure, and Gree will continue to do it. Mobile phones are an important entrance to Grees smart home. Unexpectedly, in just seven months, the wind direction changed.
The outside world guesses one after another, whether this is related to the new shareholder Hillhouse capital joining? As of the press release, Gree Electric did not give further explanation on the adjustment of the articles of association. But in the eyes of Liu buchen, an industry watcher, if Gree appliance really exits the mobile phone business, it is definitely a rational and wise choice..
After entering the era of Hillhouse capital, Gree Electric will definitely make partial strategic adjustment, and it will not be excluded that Gree will withdraw from some current product areas. Liu buchens judgment.
In March this year, Gree put three generations of Gree hands on the shelves in the official mall without any previous publicity. - Gan Jun photo
Gree mobile only sells 16 in a month, and the relationship with Yinlong is fascinating again
It has been more than four years since Dong Mingzhu announced that Gree will make mobile phones in high profile in 2015, and Gree mobile phones have been tepid in the market.
In March this year, in the absence of any previous publicity, Gree put its third generation mobile phone on the shelves of the official mall, with a price of 3600 yuan. According to relevant media reports, the processor of Grees third generation mobile phone is Qualcomm snapdragon 821, which was released three years ago. At the same time, the new Youshang mobile phone has been equipped with snapdragon 855, starting at less than 3000 yuan. Last month, the sales volume of mobile phones on Grees official website was only 16.
In the past four years, no matter the opposition of shareholders, the doubt of public opinion, or the bleak sales data, Dong Mingzhus determination to be a mobile phone is not damaged at all. So far, Gree Electric has never released specific sales data of Gree mobile phones, and even the production line is mysterious.
But Dong has always believed in the value of Gree mobile phones. It is understood that in addition to the mobile phone business, Gree also has a communication research institute, which mainly studies the communication technology related to household appliances. It is not known whether the telecommunication business to be deleted this time includes the Research Institute.
It is worth noting that although Gree Electric intends to delete the telecommunications business, the articles of association will add R & D, manufacturing, sales of new energy power generation products, energy storage system and charging piles in its business scope. According to the analysis, the move shows that Gree Electric has the intention to develop new energy products, and it is possible to continue to cooperate with Yinlong, or even start the acquisition again. After all, when it announced its abandonment of the acquisition of Yinlong in 2016, Gree Electric only made a commitment that it would not plan any major asset restructuring in one month.
In recent two years, the related transactions between Gree Electric and Zhuhai Yinlong have become increasingly close.
Last year, the total amount of connected transactions between Gree Electric and Zhuhai Yinlong reached 2.927 billion yuan. Among them, 272 million yuan is Gree Electrics purchase of new energy vehicles and energy storage equipment from Zhuhai Yinlong; the remaining 2.655 billion yuan is the products and commodities Gree Electric sells to Yinlong, mainly intelligent equipment and bus air conditioning. Gree Electric expects that in 2019, the total amount of daily related transactions between the company and its subsidiaries, such as sales and purchase of products, will not exceed 2.7 billion yuan.
At the companys annual general meeting in June this year, investors asked Gree whether it planned to restart its acquisition plan for Yinlong. At that time, Gree executives responded, not for the time being. The current relationship between the two is only related transaction and industrial coordination in terms of energy storage of air-conditioned vehicles.
But just two months later, Gree Electric Co., Ltd. invested 15.3 million yuan to establish a joint venture with Zhuhai Yinlong, namely Zhuhai Hengqin Gree titanium Energy Development Co., Ltd.
According to tianyancha information, greehua titanium was founded on August 28 with a registered capital of 30 million yuan. Its main business scope includes technology development, technology transfer and technical consultation of new energy, energy saving, electric power, medium and high voltage switchgear, energy storage power station and inverter power supply. It remains to be seen whether Gree Electric and Zhuhai Yinlong can continue their leading edge.
To meet new shareholders
On the evening of October 28, Gree Electric announced to the public that after the review committee conducted a comprehensive review on the two intended transferees participating in the public collection, Zhuhai Mingjun investment partnership (limited partnership) was determined as the final transferee. This means that Hillhouse capital has finally won Hopu capital and captured the heart of Gree Group.
At present, Zhuhai Mingjun has put forward an invitation for cooperation to Gree Electric Appliance Management including Dong Mingzhu in the form of written invitation to the letter of intent. If Dong Mingzhu and others finally accept, they shall cooperate according to the invitation scheme proposed in the letter of intent to accept, and disclose the specific cooperation scheme of both parties.
It is worth noting that on September 26, one month before the announcement of the final recipient, Dong Mingzhu and 17 Gree executives registered a company called Zhuhai Gezhen investment management partnership (limited partnership). In the list of shareholders of the company, Dong Mingzhu holds 95.2% of the shares, while Wang Kai, Huang Hui, Zhuang Pei, Tan Jianming, Wang Jingdong, Zhao Zhiwei, Hu Yusheng, Fang Xiangjian, Zhang Hui, Liu Hua, Hu Wenfeng, Wen Hui, Xie Dongbo, Chen Weicai, Li Shaobin, Xia Guanghui and Zhang long hold 0.08% to 0.97% respectively.
What is the intersection between Mingjun Zhuhai and Gezhen Investment Funded by Gree management has become a major focus of the outside world.
The reporter found from the articles of association to be revised that in terms of the establishment conditions for the acquisition of the companys shares, the original point 3 of article 3.2.3 award shares to employees of the company was to be changed to use shares for employee stock ownership plan or equity incentive, in addition, the content of use shares to convert convertible corporate bonds issued by listed companies was added. This may be in preparation for future executive incentives.
In addition, article 5.1.2 to be amended relates to the election and replacement of directors. Previously, the term of office of the directors was three years. A director may be reelected and reappointed upon expiration of his term of office. Before the expiration of a directors term of office, the general meeting of shareholders shall not dismiss him without cause. It is changed to: the directors shall be elected or replaced by the general meeting of shareholders, and may be removed from their posts by the general meeting of shareholders before the expiration of their term of office. The term of office of the directors shall be three years, and they may be re elected and reappointed upon expiration.
At the same time, the companys articles of association to be revised specially emphasizes the removal of directors, that is, before the expiration of their term of office, the general meeting of shareholders shall remove their duties. In addition, article 6.3 of the companys articles of association to be revised adds a new clause that the controlling shareholder can serve as the supervisor of the company. That is to say, after the amendment of the articles of association is completed, if Hillhouse capital takes over 15% of the shares of Gree Group, it will have the right to send personnel to serve as the supervisor of the company.
As it seems, Gree Electric is fully prepared for the arrival of new shareholders. According to the latest three quarterly reports:
From January to September this year, Gree Electric realized a revenue of 155.039 billion yuan, an increase of 4.26% year on year; the net profit attributable to shareholders of listed companies was 22.117 billion yuan, an increase of 4.73% year on year.
This is the third quarter report with the lowest growth rate of net profit attributable to the parent company in recent four years, which was 12.82%, 37.68% and 36.59% respectively in the previous three years.
This year, Gree will not only face the challenges from the downturn of home appliances environment, but also experience the changes brought about by the change of major shareholders. From the current performance, although Gree has increased the frequency of new product launches of ice washing, kitchen and bathroom, and small home appliances this year, and launched new channels such as Dong Mingzhus Micro store, the pressure is still not small.
According to Liu buchen, the most advantageous business of Gree Electric is still air conditioning, including central air conditioning; intelligent equipment has more development potential, followed by small appliances. However, due to the late entry and layout, it is difficult to establish market competitiveness, including other home appliances such as ice washing, kitchen and bathroom.
Its unwise to spread the net in all areas of household appliances. There must be a selection for the exit. Just like the telecom / mobile business to be withdrawn this time, no matter how reluctant Dong Mingzhu is, he should give up decisively if he is not suitable.