Dong Mingzhu has cracked down on fakes, and this time the target is Lei Jun, the founder of Xiaomi! Open Xiaomi's "air conditioning first", with sharp words and high-profile response! Is she really "not high-profile"?
On June 28, at the annual general meeting of shareholders of Gree Electric Appliances, a debate on competition in the air conditioning industry kicked off. Dong Mingzhu, chairman of Gree Electric Appliances, directly "started a war" against Xiaomi air conditioners, questioning that it does not have its own core technology. This statement once again pushed the competition between Gree and Xiaomi to the forefront of public opinion.
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In recent years, the rise of Xiaomi air conditioners has gained momentum. According to the data of Aowei Cloud Network, from January to May 2024, the online sales of Xiaomi air conditioners accounted for 9.09%, a year-on-year increase of 84.46%; Offline sales have achieved an astonishing growth of 8344.41%. Although there is still a gap with Gree in terms of overall sales, such a growth rate is enough to arouse the vigilance of the industry.
What's more, on the eve of the shareholders' meeting, an article titled "China's air conditioning market "shuffle", Gree fell out of the top three, the new dark horse is a "layman"" article widely spread on the Internet, pointing to Xiaomi air conditioning has surpassed Gree, Midea, Haier, and become the new leader in the industry. In this regard, Gree Electric attaches great importance to it, reports to the relevant state departments, and says that it will take legal measures to protect the company's rights and interests.
In the face of the "menacing" of Xiaomi air conditioners, Dong Mingzhu chose to fight back head-on at the shareholders' meeting. She bluntly said that Xiaomi air conditioners rely on OEM and do not have their own core technology, questioning where its "first" title comes from. This remark can be described as a stone that stirred up a thousand waves, once again pushing the competition between the two companies to a white heat.
However, in the eyes of some investors who have held Gree shares for a long time, the rise of Xiaomi air conditioners is not to be feared. They believe that Xiaomi air conditioners are currently seizing more of the market of second- and third-tier brands, and there is still a certain distance from Gree's core market.
These topics at the shareholders' meeting undoubtedly provide important clues for the capital market to judge the future of Gree Electric Appliances. On the one hand, in the face of the impact of emerging brands such as Xiaomi, Gree Electric chose to "go to war" head-on, demonstrating the confidence and determination of leading enterprises. On the other hand, the rapid development of new businesses such as ice washing has also opened up new growth space for Gree Electric Appliances. As for the much-questioned Gretitanium, although it is still facing loss pressure in the short term, in the long run, its layout in the field of new energy is expected to contribute new profit growth points to the company.
Of course, for the majority of investors, whether Gree Electric can maintain a dominant position in the fierce market competition also needs to continue to pay attention to its performance and strategic layout. However, it is foreseeable that under the leadership of Dong Mingzhu, Gree Electric will continue to play an important role in the home appliance industry, and every time it makes a move, it will affect the nerves of the capital market.
Gree Electric Appliances "Change of Commander" Turmoil: Dong Mingzhu's era is about to end?
On June 28, a piece of news caused an uproar in the A-share market. At the shareholders' meeting of Gree Electric Appliances, Dong Mingzhu, the "Iron Lady" who has been at the helm for many years, made it clear for the first time: "Maybe I will retire next year...... "One stone stirred up a thousand waves, and the market exploded in an instant.
As soon as the news came out, the stock price of Gree Electric fell in response. Investors have speculated whether this means that the "Dong Mingzhu era" of Gree Electric is about to come to an end? After all, this business legend has been at the helm of Gree for many years, and her every move touches the nerves of the market.
According to the shareholders who attended the meeting, Dong Mingzhu did say this at the meeting. If the news is true, then the market is bound to reassess the value of Gree Electric. After all, Dong Mingzhu's personal charm and leadership ability have been deeply integrated into Gree's brand image. Without her, is Gree still the original Gree?
However, attentive investors found that the news did not come without warning. As early as last year, there was gossip that the successor of Gree Electric was already in the pipeline. There are various indications that Dong Mingzhu's retirement plan may have reached a consensus at the board level.
More well-informed sources revealed that Gree Titanium New Energy Company, a subsidiary of Gree Electric Appliances, has achieved profitability. This undoubtedly cleared the last obstacle for Dong Mingzhu's retirement. You must know that Gree Titanium has always been the focus of doubts from the outside world, and now it has finally turned losses into profits, and Dong Mingzhu can hand over the baton with peace of mind.
Looking back on Dong Mingzhu's years at the helm, Gree Electric can be said to have made great progress all the way. Under her leadership, Gree continues to explore new business areas, from air conditioners to mobile phones, from home appliances to chips, Gree's tentacles extend to various fields. Especially in the field of photovoltaic, energy storage, and air conditioning integration (optical energy storage), Gree is even more ambitious in the Middle East.
However, with the diversification and expansion of Gree, some problems have gradually emerged. In recent years, the revenue growth rate of Gree Electric has slowed down significantly, and it has been overtaken by competitors such as Midea and Haier. At the same time, the price-earnings ratio of Gree Electric has been at a low level for a long time, and the dividend policy has also been criticized. In addition, Dong Mingzhu himself is constantly thundering and recruiting black physique, which has become the focus of investors' attention.
There is no doubt that Dong Mingzhu's personal style has deeply influenced the development trajectory of Gree Electric. Her iron-fisted policy, her thunderous style, and her strong style have all become the labels of Gree Electric. This kind of personal charm is not only the advantage of Gree Electric, but also its burden.
With the end of the Dong Mingzhu era, whether Gree Electric can achieve a smooth transition and rejuvenate itself under the new leader will be a matter of great concern to the market. Regardless of the outcome, it is certain that Gree Electric will continue to play an important role in the stage of China's and even the global home appliance industry.
For every investor who pays attention to Gree Electric, this is destined to be a sleepless night. How the sun will rise tomorrow, how the stock price of Gree Electric will go, and who Dong Mingzhu's successor will be, all of this is still unknown. But one thing is certain, that is, Gree Electric has entered a new era, an era full of variables and challenges.
[Information sources: 1. Talking about market competition and development path Li Shufu and Dong Mingzhu respond to concerns. Beijing News 2.Red Star Live Broadcast: 70-year-old Dong Mingzhu talks about retirement again]
