On the evening of October 30, Gree Electric released its third quarter 2019 report, which showed that the company’s revenue in the first three quarters was RMB155,039 million, up 4.26% YoY, while net profit was RMB22.117 billion, up 4.73% YoY, and net profit in the third quarter was RMB8.367 billion, up 0.66% YoY. At a shareholder meeting earlier this year, Dong Mingzhu, chairman of Gree Electric, said: Gree Electric can still maintain annual growth of more than 10%.
“We think it ’10 percent’ is not enough, and a 50 percent increase is not enough, maybe it can be achieved, but it can’t be blown, but 10 percent is still pretty sure.” ”
However, in the first three quarters, Gree Electric’s revenue was 40,548 million, 56.749 billion and 57.742 billion, respectively, with an increase of 2.49 percent, 10.38 percent and 0.03 percent year-on-year, and there is still a lot of pressure to achieve the guaranteed growth rate of 10 percent of annual revenue.
In 2018, Gree achieved its goal of 200 billion yuan in annual revenue, and Dong Mingzhu also said that in 2023, five years later, Gree’s annual revenue will reach 600 billion yuan.
Although Gree occupies 20% of the global air conditioning market, but the current air conditioning industry is not depressed, and Gree has been facing a single product structure problems, to achieve the revenue target of 600 billion yuan must expand the new business scope.
Also on the evening of October 30, Changyuan Group announced that Gree Group has increased its holding stake by another 5%, and that Gree currently holds a 10% stake in Changyuan Group.
It is reported that Changyuan Group to industrial and power system intelligent digitalization, electric vehicle-related materials as a supplement, focusing on the layout of the development of the company’s advantages of the smart grid and intelligent manufacturing field. Gree is mainly looking at the development of The New Energy Vehicle and Smart Equipment Business of The Central Long Garden Group.
This is an important step in Gree’s path to transformation.
As early as 2018, Gree Group made an offer for no more than 20% of changyuan Group’s shares. But then, without the approval of Zhuhai SASAC, the shareholder behind the Group, Gree Group finally terminated the acquisition.
On the evening of October 28th, the dust settled on the half-year-old “Gree Electric’s 40 billion equity transfer”, and Gao’s capital will take 15% of Gree Electric’s shares from Gree Group.
How to achieve Gree’s goal of breaking through 600 billion yuan in revenue in five years is also a difficult problem for Gree’s future largest shareholder, Gao Yuan Capital.