Gree enters the e-commerce business, Dong Mingzhu never admits defeat

Three years ago, Miss Dong bombarded Ma Yun on the stage: E-commerce harms the real economy and cannot be tolerated! Today, her attitude has come a 180 degree turn! Recently, Gree Electric officially announced: the establishment of Gree E-Commerce Co., Ltd., into the e-commerce! Gree e-commerce is headed by Dong Mingzhu and serves as chairman and president. In the high-level, Assistant President of Gree Electric, Hu Wenfeng, who is in charge of sales, served as the director of the new e-commerce company, the general manager of Gree Electric E-commerce served as the manager of the new company, and the other, Liao Jianxiong, as the supervisor of the new company. Although the names of these latter people are unfamiliar, it doesn't matter. You only need to know that Miss Dong brought the few people who can be played by Gree Electric to the new e-commerce company. In addition, there is a very intriguing detail: Before the establishment of the new company, Dong Mingzhu erased the e-commerce from the business scope of Gree Electric Appliance. In other words, the e-commerce is no longer a department of Gree, but An independent company with an independent legal entity and an independent board of directors. Miss Dong’s heart is clear! We moved our eyes forward for 10 days. On October 28, Gree mixed and ended. Gaochun Capital spent 40 billion to win a 15% stake in Gree and became the largest shareholder of Gree Electric.

What is the capital of Gaochun? It is the major shareholder of Tencent, Jingdong and Vipshop, and plays a decisive role in the e-commerce industry. In 2017, Gaochun Capital led the privatization crisis of 53.1 billion Hong Kong dollars. After two years of e-commerce transformation, Belle is now welcoming new students, and the sorghum's wrists are evident. We took things awkwardly, the e-commerce giants took a stake → the company erased the e-commerce business → established an independent e-commerce company, Gree carried out such an intensive and orderly e-commerce process within 10 days, which means long-term stationed offline "After 50" Dong Mingzhu, is fully open to the Internet with open arms! Yes, she no longer sticks to tradition and plunges into the future! Miss Dong’s most fearful three sets of data Dong Mingzhu’s sudden transfer is inseparable from the three sets of data. The first group: In 2018, in China's air-conditioning online sales list, Gree's 17% market share ranked third, far behind the 29% share of Oaks, and they are separated by a beautiful one.

Behind this set of data is the praise of the United States and Oaks for the past few years, and it is a punishment for Gree air-conditioning to exclude e-commerce. The second group: On October 30, 2019, Gree Electric released the third quarterly report. In the first three quarters of this year, the revenue was 155 billion yuan, a slight increase of 4% year-on-year. The net profit was 22.1 billion yuan, which was also a slight increase of 4%. The net profit was 8.172 billion yuan, a year-on-year decline of 6%. In other words, Gree's revenue and net profit growth both fell to single digits. Let's take a look at the achievements of Oaks and Midea. In 2016-2018, the average annual growth rate of Oaks air-conditioning sales exceeded 20%. In 2018, it reached 26%, and the net profit was 86 billion yuan. Not only did sales rank first in Internet air-conditioning, but the growth rate was the first in the industry. . The old rival US's revenue in the first three quarters of 2019 was 220.9 billion yuan, a year-on-year increase of 7%, and a net profit of 21.3 billion yuan, a year-on-year increase of 19%. . Compared with Oaks and the United States, Gree’s performance has been “double-killed” and the status of air-conditioning “one brother” has been shaken.

In the first three quarters of 2019, air-conditioner sales in the domestic market declined, down 1.1 million units from the same period in 2018, a drop of 2%. Although the industry is not good, in the e-commerce channel, air conditioners sold 22.39 million units, a year-on-year increase of 8.7%. This drop has shown that the offline sales of air conditioners are shrinking, and the online sales trend is good. To put it bluntly, consumers now prefer to go to Jingdong and Tmall to buy air conditioners instead of going to physical stores. These three sets of data are three "spikes" tied to Dong Mingzhu. With the increasing online sales channels and the changes in the habits of consumer groups, the impact of e-commerce on Gree will only grow larger and larger. If you do not switch, the market value of Gree will be a high probability.

Miss Dong’s wrist, one word: hard! Gree air-conditioning has always had a strong control over the online channel. You may not know that Gree's second largest shareholder, Beijing Haihai Guarantee Investment Co., Ltd., is a company formed by Gree dealers. In other words, dealers play an important role in Gree. This unique phenomenon is closely related to the rise of Gree and Dong Mingzhu. Gree air-conditioning sales model is different from other brands' sales models. Other brands are dealers who have sold out the products, and then return the goods to the manufacturers, while Gree is the dealer to pay the products and then pull the products away. This model was explored by Dong Mingzhu. She used this sword to attack the city and became a sales queen. She finally stood on the top of Gree.

Benefiting from this model, Gree's cash flow has been very healthy and there has never been a dead debt. Why is this model a calf? Because the dealers are paying first, so they are very desperate when selling, Gree air-conditioner's offline sales results are so played out, and Gree Electric is highly bound to the dealer's interests over time. In 2006, Gree Electric Appliances carried out the largest shareholding restructuring in history. Gree Group transferred a 10% stake to Beijing Haihai, which was jointly established by the dealer team. This is equivalent to binding Gree and the dealer once again, and the two parties directly became the community of interest. . There is no doubt that this community is a double-edged sword. On the one hand, dealers are working harder. On the other hand, dealers representing offline forces oppose the Internet, because one more online, one less. . As a result, Gree's e-commerce road is extremely difficult.

In the past few years, Midea and Oaks have been working on e-commerce, and even Xiaomi has sold air conditioners, and the development momentum is very good. Gree's e-commerce strategy is always small, Dong Mingzhu opened a micro store for a while, and later built a Gree distribution mall, and finally ended up in a hurry. Dong Ming Zhu Nan! As a business leader, she wants to work as an e-commerce provider. As a professional manager, she must reflect the will of shareholders. She is in a dilemma. After a year of meditation, she finally found a two-pronged strategy to get rid of the dealer's containment without damaging Gree: the introduction of a strong third party, that is, the high-sounding capital with high voice in the electric business circle. The 40 billion capital injection plus the stock market is good enough to make the dealers sneak; the establishment of an independent e-commerce company that is not controlled by Gree Electric can finally let go. Miss Dong has a good hand! So what should we see? Sun Yat-sen said: The general trend of the world is vast, and it is good, but it is dead. The general trend of the Internet is not reversed by the resistance of Gree dealers. The 65-year-old Dong Mingzhu can be transferred to the old age, and we are so young, why not? To be a person who adapts to the trend, history will prove that the trend of compliance is greater than personal efforts!

"Gree needs a company that is sincerely willing to help Gree Electric's development........ This transaction will never accept the participation of barbarians." At the investor meeting on May 22 this year, Dong Mingzhu said strongly. In the curtain of the Gree Group's mixed reforms, Dong Mingzhu issued a voice from time to time. Chairman Dong Mingzhu, Gree Group and Gaochun Capital's three parties, the competition against Gree who came to control, reached its climax on November 11. On October 28th, Gree Group issued a letter, which was reviewed by the judging panel for the two intentional transferees who participated in the public solicitation to determine Zhuhai Mingjun Investment Partnership (Limited Partnership) as the ultimate transferee. According to the data, the fund manager behind Zhuhai Mingjun is Zhuhai Gaochun Equity Investment Management Co., Ltd. In other words, Gaochun Capital will become the largest shareholder of Gree Electric.

After six months of wrestling, Gaochun Capital Distance became the final winner, and only the final step was signed. According to the announcement, the ultimate transferee will sign a “share transfer agreement” with Gree within 10 working days, that is, at the latest on November 11, Gao will complete the agreement. However, at the last moment of the signing date, Gree Electric announced a paper, and returned to the initial state of what was almost already nailed. "In view of the fact that there are still unfinished matters in the share transfer agreement, Zhuhai Mingjun and Gree Group are still negotiating, and both parties agree to postpone the planned signing date of the share transfer agreement." For the long 10 days, Gaochun did not wait for the appointment. Gree's shares, but return to the negotiation period. Following 2016, Dong Mingzhu has resigned as chairman, director and legal representative of Gree Group for the past three years. However, Dong Mingzhu, who still has absolute decision-making power over Gree Electric Appliances, remains a key player in the transfer of Gree shares. Who will become the ultimate clerk of Gree Electric's 40 billion stake, everything is full of variables.

All the stories must be told from a notice from the Gree Group earlier this year. On April 1, Gree Electric said that it received a notice from the controlling shareholder Gree Group that Gree Group plans to transfer some of the shares of Gree Electric Appliances held by the company, which may involve changes in the company's control. A week later, Gree Group announced that it plans to transfer 15% of Gree Electric's equity held by the company. According to industry estimates, the equity transfer value is nearly 40 billion yuan, and the shareholders and actual controllers of Gree Electric Appliances may change after the transfer. As the leader of the air-conditioning industry, Gree Electric's 15% control is a lot of capital, and they have rolled up their sleeves and tried to fight for it. According to media reports, an investment institution in order to participate in the Gree Electric Appliances Investor Meeting on May 22, asked the registration method the next day after Gree announced the announcement, and occupied a pit early. And Gree employees also reported that since April, many visitors have asked to visit Dong Mingzhu.

The rise of Gree is inseparable from Dong Mingzhu. Therefore, in order to successfully acquire equity, it is necessary to pass the Dong Mingzhu first. This is beyond doubt. What led to this triangular contradiction is the management of Gree Electric represented by Gree Group, Gaochun Capital, and Dong Mingzhu. "This Gree electric appliance hybrid reform will introduce effective strategic resources for Gree Electric Appliances to achieve further improvement of the governance structure of listed companies. After the buyer purchases the stock, the lock-up period is not less than 36 months." Gree Electric expressed this time in the announcement. The requirements for equity transfer. Zhuhai Mingjun also issued a written cooperation invitation to the management of Gree Electric Appliances in due course.

Judging from the announcement on November 11, Gree Electric's management has not accepted this invitation, and Dong Mingzhu, the core figure of Gree Electric's management, has already expressed his attitude at the investor conference. "To see the truth, refuse barbarian". Zhang Lei, the CEO of Gaochun Capital, who has strong qualifications, has already expected Dong Mingzhu’s personality and publicly stated that “let entrepreneurs sit in C position”, but at present it is not enough to impress Gree’s “Iron Lady” Dong Mingzhu. Judging from the previous acquisition of Gaochun Capital, Zhang Lei may have intentionally used the "Belle Model" to transform Gree Electric.

In July 2017, Belle International delisted from the privatization of Hong Kong stocks. Gaochun Capital holds 57.6% of its shares and becomes the new controlling shareholder of Belle. Zhang Lei has carried out a two-year digital transformation and upgrade of Belle. Previously, Dong Mingzhu, who was quite vocal about the Internet and more optimistic about the real economy, has now recognized the digitalization of enterprises. Therefore, according to industry analysts, the contradiction between Dong Mingzhu and Zhang Lei lies in the dispute over the control of Gree. This 40 billion shares will affect the future direction of Gree. Today's Gree Electric Appliances, Dong Mingzhu can almost be said to be "one word and nine tripods". Gao Gao will eventually be treated with a sincerity to influence Dong Mingzhu, or to be regarded as a "barbarians" to expel far away. decision.

"Absolutely not allow capital to undermine the development of the enterprise," Dong Mingzhu said in an interview. No one will regard this as the rumor that Dong Mingzhu released, because the two labels of domineering and toughness have always followed her. In 1990, 36-year-old single mother Dong Mingzhu and Nanxia Zhuhai became a salesperson of Haili (formerly Gree). She did not have any sales experience across the line, but she believed that she could do it if she tried enough. Two years later, Dong Mingzhu achieved sales of up to 16 million, which accounted for one-eighth of sales in Gree. According to Gree internal rumors, Dong Mingzhu basically did not take annual leave, and her mind only works. "I will be in this position for a lifetime, until there are more suitable people than me." Dong Mingzhu, 65 years old, is still in the front line of the battle, but the Iron Maiden's "狠" is not just for himself, but It is for everyone.

Around 2000, Gree Electric developed so much that it contributed more than 90% of its business revenue to Gree Group, and it is likely to become Gree's long-term “cash cow” and the situation of “sub-strong father and weak” has been formed. With the increasing brand effect of Gree Electric Appliances, Gree Group also tried to promote the development of other products through the popularity of Gree. After Gree Electric gradually developed and expanded, Dong Mingzhu always hoped to be isolated from Gree Group. "If Gree does not call Gree, I believe that no one will pay more attention to it."

Dong Mingzhu once admitted in a television interview. For the Gree Group and Gree Electric's "father and son" trademark dispute. Gree Electric also issued a statement: the use of "Gree small appliances" brand infringement, "father and son" between the war escalation. The compromise was fruitless, and the Gree Group even forced Zhu Jianghong, the then chairman of Gree Electric Appliances, to “retire”. According to rumors, Dong Mingzhu found the Zhuhai Municipal Party Committee Secretary in charge of the industry, and retained Zhu Jianghong at the Gree Electric's general meeting of shareholders. Finally, in December 2005, Gree Group and Gree Electric signed a contract for the free transfer of trademarks, and everyone also saw Miss Dong’s wrist.

"I am very overbearing, not easy to be changed by others, but I am very persistent in my work and stick to my own principles." Miss Dong’s principle has caused a lot of friction with Gree Group and Zhuhai SASAC. In 2006, some leaders of the Zhuhai Municipal Government planned to sell Gree Electric Appliances, which was in full swing, and returned funds. At that time, Dong Mingzhu was appointed as the vice chairman of Gree Electric, and was informed that Gree Electric Appliances would be sold to the world's largest supplier of HVAC and refrigeration equipment, the "father of air conditioning" Willis Carrie founded by the United States Carrier During the group, Dong Mingzhu went straight to the province to report to the secretary. "Although we are more than 1.3 billion, I told him that we have a future in Gree." After Dong Mingzhu's "national brand" Lobbying, the Guangdong investigation team entered Zhuhai to investigate the acquisition of Gree Electric Appliances. "After half a month, the investigation team came to the province. After the investigation, it was decided not to sell." The domestic brands that were sold to foreign companies in the details are now Forgotten. Dong Mingzhu once again turned the tide and pulled Gree back from the line of life and death.

Dong Mingzhu, who is regarded as a soul by Gree Electric Appliances, is not popular at the Zhuhai State-owned Assets Supervision and Administration Commission. In a subsequent interview, Dong Mingzhu said frankly: "I am ready to fight with them. We must adhere to the principle. Otherwise, our industry is a fully competitive industry. Maybe we have already been hit." Gree Group with state-owned background, two In the year, he changed three chairmanships, but as a subsidiary of Gree Electric, the chairman of the board of directors, Dong Mingzhu, sat for seven years. After several battles, everyone saw Dong Mingzhu’s “iron fist policy” and realized that this woman was not good at it. Anyone who challenges the control of Dong Mingzhu Gree is an ending. Since then, no one has dared to challenge the status of Dong Mingzhu in Gree Electric. "I am offended by these people, I am not guilty of them, I have no Gree today." In the face of the question of financial writer Wu Xiaobo, Dong Mingzhu is still poised. For Gree, the "Iron Lady" can do anything.

Dong Mingzhu never thought that he would miss it, and there would be no regrets. "I didn't say anything wrong, I didn't make a mistake." In the face of the question from the CCTV reporter Dong Qian, Dong Mingzhu answered the question. In Dong Mingzhu's concept, manufacturing has always been more important than the Internet, but with the industry and the Internet closely linked, Dong Mingzhu began to experiment in the Internet field. However, Miss Dong, who first entered the Internet, seems to have not found "Greek in the Internet." At the 2013 CCTV Economics Annual Persons Awards Ceremony, Dong Mingzhu and Lei Jun set aside 1 billion gambling on the “high and low turnover after 5 years”. Although the final result of the gambling was that Dong Mingzhu was successful, Ms. Dong began to build Gree mobile phones in 2015, claiming to “kill millet in minutes” and “sell 100 million units”.

The three mobile phones that Gree launched continuously did not start to worry about anything. Recently, Gree Electric in the company's new charter, deleted the operation of telecommunications business and value-added telecommunications business, this may be the signal that Dong Mingzhu gave up the mobile phone business. Missing the bonus of the smartphone, Dong Mingzhu aimed at the emerging new energy field in 2016. In order to convince shareholders to buy the new energy car company Yinlong, Dong Mingzhu once again screamed at the table, and for the huge purchase of 13 billion, the shareholders did not obey as before. The stubborn Dong Mingzhu will be brought to Wang Jianlin, Liu Qiangdong and others to sign a capital increase agreement with Yinlong New Energy, and jointly increase the capital of 3 billion yuan into the official Yinlong New Energy. Later, with continuous capital increase, the company became the second largest shareholder of Yinlong New Energy, and soon the Gree Department began to take over the company. In 2017, it was promised to plan to produce 30,000 new energy vehicles per year, and finally completed only one-fifth of the target. Dong Mingzhu also fell into a financial crisis.

Dong Mingzhu, who has been "solid and stable" in manufacturing, has also encountered a slap in the face of making mobile phones and making cars. On the contrary, Haier, the United States and other competitive brands, on the smart air conditioner, the market share has already stood in the same echelon with Gree. Since 2015, smart air conditioners have gradually become a new growth point in the air conditioning industry. According to the "2018 Air Conditioning Market Analysis Report" released by the National Information Center, Haier Air Conditioning has surpassed Gree in sales and sales in 2018, ranking first in the industry's smart air conditioners. Dong Mingzhu had to re-examine the importance of the Internet. At this time, Zhang Lei led Gaochun Capital into Gree Electric Appliances, which was particularly timely and necessary for Dong Mingzhu. For Gree, Dong Mingzhu not only needs Zhang Lei's experience in digitization, but also the rich e-commerce and flow resources in the hands of Gaochun Capital. According to the data of Ovi Cloud, Gree has the largest market share in domestic offline sales, but online sales have not been as good as Oaks and Midea. Gao Hao has invested in e-commerce companies such as Jingdong, or will help Gree Electric to stabilize online sales.

However, Dong Mingzhu is not an entrepreneur. From entering Gree in 1990 to the present, Dong Mingzhu, who is used to controlling everything, can tolerate Gao Hao’s taking away his “great power”? The signing date of the "Share Transfer Agreement" between Gaochun Capital and Gree was delayed again at the last moment. It also indicated that the core equity agreement did not reach an agreement, and the final result was difficult to predict. However, the business expansion of Gree Electric is still on the road. In late October, Yinlong New Energy 18m Dolphin Bus was the first 5G bus in Northeast China, and it was first run on the urban rapid transit line in Songshan New District, Jinzhou City, Liaoning Province. On November 5th, Gree Electric established a company called “Geli E-Commerce Co., Ltd.”, which is wholly-owned by Gree Electric Appliances. Dong Mingzhu is the legal representative and chairman. Dong Mingzhu, who has been on the cusp for a long time, is still trying new fields. Whether or not the company will accept the work of Gaochun Capital will need to be weighed again.