Gree's Current Total Market Value Less Than Half of Midea's, Gree Electric Appliances Loses 13.2 Billion in Market Value in One Day
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On the evening of December 19, Gree Electric Appliances Inc. of Zhuhai (hereinafter referred to as "Gree Electric Appliances") announced plans to increase its stake in its subsidiary Gree Titanium New Energy Co., Ltd. (hereinafter referred to as "Gree Titanium") to deepen its new energy strategy. According to the announcement, Gree Electric Appliances intends to invest approximately 1 billion yuan to increase its shares in Gree Titanium.
However, this stake increase plan does not seem to have received a positive response from the market. After opening on December 20, Gree Electric Appliances' stock price fell sharply. By the close of trading, Gree Electric Appliances' market value had evaporated by more than 13.2 billion yuan in a single day. According to the latest financial data, as of the end of June this year, Gree Titanium's total assets were 24.311 billion yuan, while its total liabilities were as high as 24.245 billion yuan, leaving net assets of only 66 million yuan.
Additionally, according to search data from Oriental Finance, Gree Electric's current total market value stands at 177.164 billion yuan. This figure is now less than half of its main competitor Midea Group's market value. This change reflects market concerns about Gree Electric's future prospects.
Despite the pressure from the declining market value, Gree Electric remains steadfast in its determination to increase its stake in Gree Titanium. This move is seen as a crucial step for Gree Electric to deepen its new energy strategy. By increasing its stake in Gree Titanium, Gree Electric will be able to strengthen its control over this new energy company and drive its development in the new energy sector.
However, the market remains cautious about Gree Titanium's financial condition and prospects. Its high debt and meager net assets have raised concerns among investors about its future development. Furthermore, the decline in Gree Electric's own market value has also intensified market worries.
For Gree Electric, achieving breakthroughs in the new energy sector and restoring its market value are critical challenges. In addition to continuing to increase its stake in Gree Titanium, Gree Electric needs to ramp up investments and efforts in new energy technology R&D and market expansion to rebuild investor confidence and achieve sustainable development.
Overall, despite facing pressure from declining market value and market skepticism, Gree Electric remains steadfast in its new energy strategy and plans to deepen its implementation by increasing its stake in Gree Titanium. Moving forward, the company must demonstrate greater capabilities and tangible results in the new energy sector to revitalize market confidence and ensure sustainable growth.