[Epoch Times November 11, 2021](Epoch Times reporter Li Bing comprehensive report) China’s largest air-conditioning company Gree Electric’s share price hit a new low this year. The company’s market value has shrunk by nearly 200 billion yuan (RMB, the same below). The largest shareholder, Hillhouse, may lose more than 10 billion yuan.
On November 10, Gree Electric, China’s largest air-conditioning company, plunged during the intraday trading session. As of the close, it fell 2.61% to 34.67 yuan per share, with a total market value of 208.6 billion yuan. After reaching a new high in December 2020, Gree Electric’s share price has fallen all the way. So far, the share price has nearly halved. In just one year, Gree’s market value has evaporated by nearly 200 billion yuan.
According to a report by the China Caitong News Agency, Gree’s largest shareholder may have lost 10.37 billion yuan, based on the closing price on November 10, regardless of dividends and other factors.
On October 27th, Gree Electric disclosed its three quarterly reports this year. According to the financial report, Gree’s operating income in the third quarter was 47 billion yuan, down 15% year-on-year, and its net profit was 6.188 billion yuan, down 15.66% year-on-year. Compared with previous years, the third quarter is the peak season for air-conditioning sales.
Data show that the total shareholding ratio of institutions has dropped to a new low in more than a decade. As early as the mid-term report, the well-known investment bank Goldman Sachs Group liquidated Gree Electric.
Some private equity sources believe that Gree Electric is currently facing a continued downturn in upstream real estate and its growth has encountered a ceiling problem.
In addition, since the second half of last year, the prices of commodities such as copper, steel, and plastics have soared, which has become a major driver of air-conditioning price adjustments. Affected by rising raw material prices, Gree Electric’s net profit in the first half of 2021 has dropped by nearly 30% compared to the same period in 2019.
It is worth mentioning that since the beginning of this year, the share prices of Gree Electric, Midea Group and Haier Zhijia have generally fallen. The decline of Midea Group ranked first among the three white power giants. According to a report by Sohu Finance and Economics in August, the market value of Midea has evaporated by more than 300 billion yuan compared with the historical high set in February this year.
Editor in charge: Sun Yun#
.