A capital injection has put Gree and Gao Tiling on the same boat. Zhang Lei's logic of price investment makes him choose Gree, so in the competition between Huper and Galt, how can Gree Electric confirm that Galt Capital is its "best partner"?
The final battle between HWT and HPP
Zhang Lei's determination to give up Midea for Gree, and the many concessions he made, showed everyone Zhang Lei's determination and HWT's strength. Accordingly, why did Greeley choose Goliath Capital? What contributed to this "marriage" of "two-way run to"?
This is a very interesting thing, Gree mixed reform, but in the end, it is not the experience of state-owned mixed reform of the thick Park selected, but a strong market-oriented attributes of the high level of capital came out on top.
The time node is pulled back to 2019, when the competition between high altitude and thick Park is nearly over, before, many people are optimistic about the investment of thick Park, but the results are unexpected. Why?
Sanlin thought, thick Park was indeed established earlier, also has the experience of state-owned enterprises mixed reform, but in the face of Gree such urgent need to transform the traditional enterprises, thick Park advantage is not obvious. In contrast, the high altitude capital to eat the dividends of the Internet development, in the direction of new technology to grasp more forward-looking, whether it is investing in Tencent, Jingdong, Blue Moon or the classic case of privatization of Belle, high altitude advantage full. This Internet gene is exactly what many traditional enterprises are looking for, but not the way to transform.
Experienced the tide of opening up to the outside world, but also in the century without a major change, the traditional home appliance industry, how to seek new changes to adapt to the current trend and future development, is a problem in front of the giants, but also Gree has been criticized for the place. From its inception in 1991 to the present, Gree for the transformation of the exploration can not be said not much.
Earlier, in order to protect the interests of suppliers, Gree weakened the online channel; later, e-commerce has become a trend, especially friendly business Oxy borrowed e-commerce to achieve the sales performance of the situation, Gree also set up a subsidiary specializing in e-commerce business in 2019, and strive to seek a balance between the offline and online channels; in the face of the air conditioning industry, the decline in concentration and the declining performance of the Gree wants to start from the chip business. Start to improve gross margins, pulling revenue; then later, the transition to do high-end equipment, mold manufacturing, renewable resources base ......
In the face of skepticism, Gree has been exploring, but unfortunately blocked everywhere.
The upgrading and improvement of the industrial chain is not an easy task for large enterprises, and Gree is no exception. However, it seems that the presence of high level capital can bring new possibilities. As we all know, Zhang Lei is extremely good at lightweight play, and has made frequent moves in the domestic consumer, mobile Internet and medical fields, almost investing in half of the Internet circle.
In June of this year, High Tide Capital conducted a rare roadshow to set up a special fund for the technology track, with a participation threshold of 100 million yuan. In the roadshow, GLC exposed three investment strategies and four investment tracks, and made no secret of its preference for new technologies. Looking further ahead, in March, Zhang Lei spent 34 billion yuan merger and acquisition of Philips Home Appliances, a moment of investment banking news, many people speculate that Zhang Lei hopes to use Philips in the international market resources and channel advantages, to solve the internationalization of Gree problem, so that the two equally good enterprises to empower each other to achieve complementary resources.
Bringing its own Internet attributes is the advantage of Goliath Capital, so Gree's choice of Goliath is no excuse. In addition, Goliath Capital's deep accumulation and huge advantage in the supply chain end may be another reason. Take the privatization of Belle as an example, Belle as a channel supply chain mature veteran retail enterprises, and Goliath advantages complement each other to create more kinetic energy, which can be illustrated by the listing of Belle's brand Toubo sports, Goliath has helped Belle to create a set of effective C2M model (consumer factory model).
Gree is also actively exploring the new retail model, and Zhang Lei's more than 10 years of research in the consumer goods field is really there, so Gree can get more gains from GHC, such as experience in digital transformation of channels, etc.
GHC is also actively exploring the new retail model, and Zhang Lei's more than 10 years of research in the consumer goods field is really there. For all these reasons, Goliath Capital seems to be more advantageous, and unlike Hauppauge's speculative approach, the latter seems to be more "practical".
In addition to the resources and vitality that Goliath can bring to the company, I'm afraid that part of the reason why Mingzhu agreed to this deal is because of Goliath's and Zhang Lei's reputation and influence in the capital circle, or in other words, Zhang Lei's own style of investing is to the liking of her sister Dong.
Zhang Lei once said in an interview, "We have always insisted on long-term investment, which means that we identify with entrepreneurs who create long-term value. At the same time, Gao Tiling puts entrepreneurs in the C position, and will not do things that affect the stability of the management, which is also unfavorable to the enterprise." This is very much in line with the demands of Dong Mingzhu, who is not willing to capitalize on the management to lose the right to speak.
Dong Mingzhu has ambitions.
For Dong Mingzhu such a lifetime of blood spilled in Gree entrepreneurs, Gree's development has become the focus of life, is an important part of her life inseparable, but also her strong fighting place. Whether or not for the name of profit, can make Gree go farther and better is bound to be Dong's important goal, bowing and scraping for many years, Gree if the slippery slope, Dong Mingzhu feared that the first one does not agree. Who would like to decades of hard work to torch, late in life notoriety?
The market is always biased against tough women at the helm.
Dong Mingzhu wants to restore Gree to its former glory and become a business card of Made in China, there is no doubt about it. As for the outside world clouds (such as the outside world speculation, Gree's equity incentives is Dong Mingzhu for the cash to leave the field to pave the way; some people speculate that the Belle privatization is the future of Gree's road, Dong big sister and Gree's depth of bondage, Gree last name is Dong sooner or later ...)
The current market reaction to the stability of Gree is not as good as before, the business is difficult to support the future of the long-term capital story, semiconductor and car transformation road is not smooth enough, in such a "dangerous period", Gree extraordinarily need confidence. The presence of institutions is like a shot of cardiotonic, boosting the market's confidence in Gree. 2019, Gree shares briefly rose 80%. Does this mean that the resources brought by Zhang Lei, the role of boosting the stock price, has become an important reason for his recognition by Dong Mingzhu.
Under a number of factors, Zhang Lei entered Gree with an investment of nearly 40 billion yuan from Gao Tong Capital. This classic case of mixed reform of state-owned enterprises, a colorful stroke in the history of capital, and what kind of benefits can be brought?
Gree this change is a three-way benefit thing. In addition to the aforementioned benefits that Gree can obtain, it is not a losing deal for Gao Ting and state-owned capital.
The reason why Gree's hybridization is called a "real sense of hybridization" stems from the state-owned capital's letting go. This is not easy to let go, after all, Gree as Zhuhai's business card, from the annual dividend to tax are large. However, under the market-oriented mechanism, it is difficult to give Gree more help without letting go.
Nowadays, the reform of state-owned enterprises has entered a deep-water zone, the introduction of social capital in order to enhance the vitality of the enterprise, to help Gree this air-conditioning leading enterprises to go further, and create a steady stream of social benefits. From this point of view, letting go is for achievement, which is why this mixed reform of Gree is known as a successful case of transformation of state-owned assets.
"Three-year action of state-owned enterprise reform" has entered the second half, the reform released a signal: China is forming its own modern enterprise system. This system puts more emphasis on market dynamics, and focuses on getting rid of the disease of the past. In other words, the old model is difficult to go through, whether state-owned enterprises or private enterprises, unchanged will not be able to survive in this era of change. After 43 years of reform and opening up, the modern economy depends on the modernization of enterprises to support, from the current important strategic time window, Gree is both inevitable and necessary to seek new changes.
It is also cost-effective for Goliath to enter the market. At the moment, China has made carbon neutrality a top priority for future sustainable development, and the traditional manufacturing industry has to transform in order to take the initiative in the market. Goliath's three main investment areas - consumer services, healthcare, and hard technology - are mostly in line with this trend.
Gree is already at the crossroads of transformation, and has already conducted many explorations.
"An important direction of research is to look at the industry pattern, and the pattern determines the ending." Zhang Lei said in an early interview, "Gree Electric, as a business card of China's manufacturing industry, is what we want to support in the long term."
It can be seen that under the favorable policy, "give up the child in order to set the wolf". Not only is the policy favorable, Gree itself also has its irreplaceable advantages, such as supply chain, management, after-sales and so on. With Gree's existing strengths and HighTech's years of experience in the retail industry, the two are likely to create a 1+1>2 effect.
Recently, the online education fire has been reduced, so we can see the strong link between national livelihood and capital. Education is so, so is the appliance industry, corporate social responsibility should always be placed in the first place, which is why large enterprises will do their own CSR (Corporate social responsibility Corporate social responsibility)
Online education is cool, a lot of organizations turn to quality education, after-school hosting, vocational education and other directions to transform. So for the home appliance industry, how should traditional home appliance companies transform to avoid elimination? Or to put it another way, where does Gree have to shift from?
Made in China is a good card. How well this card can be played, look at Huawei to know.
Currently, globalization is blocked, many Chinese companies are facing siege, and the public's recognition and expectation of national products has reached an unprecedented high. This should be Gree's opportunity, but Gree is facing a lot of problems, whether it is criticized diversification, and Dong Mingzhu's personal IP is strongly associated with the marketing approach, or the supplier system, the slow growth of overseas markets, which need to be resolved. The direction of the correction and problem solving need time, but some time once missed will be difficult to have.
Gao Tiling Capital's presence gives Gree buffer time and more resources, but from the current performance, how to make good use of Zhang Lei's resources at hand, Gree seems to have not felt the direction.
On August 16, Gree's intraday price fell to 46.17 yuan, only one point away from the lowest in history. From the trend point of view, the last year or so, the stock price hard from the highest period of 70 yuan all the way down to 47 yuan today, a drop of nearly 30%.
Gree has a cold. Zhang Lei, of course, shrewd, will not do business at a loss, but the shareholders are not necessarily buy, Gree can no longer "wait".
Time is tight, the situation is difficult, but Sanlin thought Gree still have a chance. Although criticized a lot, but few people doubt the brand power of Greeley. Gree for the cultivation of consumers or brand marketing to do quite successful, brand awareness is strong and clear, almost few people doubt the quality of Gree air conditioning. Gree has accumulated enough consumer trust in the first 20 years, and this invisible wealth of trust is Gree's important bargaining chip.
Air conditioning is not like black power, kitchen appliances is a strong real estate cycle industry, in the case of household air conditioning, for example, a family can be configured in each room. In addition to the family, shopping malls, office buildings, clubs, hotels, car air conditioning, industrial sites and other places need air conditioning, air conditioning industry is far from the ceiling. Along with the development of the economy, the air conditioning industry will also stretch to the sun.
Gree still has a chance, but as said earlier, timing is important. The United States has been challenging Gree air conditioning industry boss position, Dong Mingzhu can lead the management of fast and rhythmic reforms, the past problems one by one correct, one by one breakthrough, which is the face of the United States, Haier and a host of other brands under the sniper key point.
To seize the policy favor, from Zhuhai's business card into China's business card, Gree still has a hard battle.
The development of the enterprise has always been through the ups and downs, and some people questioned that there are few centuries-old enterprises in China known to outsiders, partly because there are not many of them that have survived the wars of the last century. The good news is that the times have given China more opportunities, and in the current 5G Internet era, China is playing catch-up to make up for the past gap, which is gradually narrowing after decades of hard work.
Who said that China does not have a hundred years of enterprises, no Chinese intellectual property, the future, is bound to be the era of China and Chinese enterprises shine. Sanlin is willing to believe that Gree, the representative of Chinese manufacturing enterprises will have a bright future, but if the time is too long, I am afraid that the capital market patience is limited.