Author: Rakshasa Haishi
The video of Wang Ziru and Miss Dong being interviewed by the media became popular all over the Internet. The video seems to be a public overturn of Wang Ziru filming Miss Dong's MP, but it actually proves the degeneration of Gree Electric's corporate culture.
The most impressive thing about the video can be described in three words: "arrogant", "greasy", and "Gree's corporate culture is degenerate".
Wang Ziru's output of a rainbow fart, not only PUA young workers, but also by the way, Gree's former colleague Meng Yutong let us see the screen full of greasy, never look at the salary slip + the valuable dzi bracelet on the wrist let us see Wang Ziru's arrogance, Miss Dong enjoyed the emotional value of her subordinates, and the spring breeze made people see the degenerate corporate culture of Gree Electric.
Some people say that this is Gree building momentum for Double 11, but no matter how you look at it, it looks like a collapsed house of Gree's corporate culture, and Wang Ziru finally overturned the character of Miss Dong and Gree's corporate culture with his own strength.
As some netizens commented, it's not your fault to shoot MP, but it's your fault to disgust the public with such a greasy video. Back then, Luo Yonghao poked Wang Ziru's lung tube, and the words were "If you are taken care of, don't talk about independent personality, and it will be popular again, a video made Wang Ziru, Miss Dong and Gree the target of ridicule on the whole network." ”
I have to say that Wang Ziru has already made a splash if he doesn't make a sound, and he threw a small mushroom (nuclear bomb) at Gree and Miss Dong's characters in his first appearance. A Gree with a market value of 180 billion can actually make such a depraved corporate culture and values public in the form of almost self-exposing family scandals, so Gree is no longer an amateur can describe.
Throughout Gree Electric Appliances from an obscure small factory, it has developed into a domestic ranking first in household air conditioning sales and market share for 23 consecutive years, and has become a world-class home appliance enterprise leading the world, mainly due to the establishment of a "payment before goods" trading system, the adoption of "off-season rebates" and "year-end rebates" and other rebate measures to stimulate the sales enthusiasm of dealers, as well as the establishment of a joint-stock regional sales company, which has greatly strengthened the business motivation of dealers and a series of sales innovations. Ms. Dong's rise from an ordinary salesman to the chairman of Gree has also become a good story in Chinese business history.
However, the success of the supplier is also the failure of the supplier. Starting from the Spring Festival in 2020, Dong Mingzhu publicly proposed the strategy of channel reform for the first time, the core of which is to transform the functions of regional sales companies, cancel agents at all levels, and let dealers directly pay and pick up goods from the headquarters. In the process of channel reform, Gree Dong Mingzhu store has become an important online channel for Gree.
According to the dealer, nominally the headquarters of Gree is the superior of all dealers, but the employees under the dealer are actually not the direct employees of Gree, and the personnel and financial rights are not included in the unified jurisdiction of Gree Electric Appliances.
Channel reform is tantamount to cutting feuds. There will inevitably be a rebellion. On August 20, 2022, Xu Zifei, the general agent of Hebei Gree, invited major dealers in the province to gather for discussion. It is said that 2 bottles of 15-year-old Moutai and 100,000 yuan in cash are placed on each table at the banquet, and the hospitality standard is super high. After drinking Moutai with a glass, Xu spontaneously announced loudly, "I won't do Gree in the future." Xu's spontaneous and high-profile defection opened the prelude to the turmoil in Gree's supply and marketing system. Hebei is an important distribution area of Gree, with an annual revenue of tens of billions. Xu Zifa is an old friend of Gree for more than 20 years, and in the early years, he led 10 Gree dealers to establish Hebei Hai Interconnection, becoming the second largest shareholder of Gree.
On June 24 last year, Gree Electric announced that it received the "Share Reduction Notification Letter" from Tokyo Sea Interconnection, which held more than 5% of the shares, and Jinghai Internet reduced its holdings of 110,219,217 shares of the company through block trading on June 24, 2022, accounting for 1.86% of the total share capital of Gree Electric Appliances, and cashed out 3.5 billion yuan, and the shareholding ratio of Jinghai Internet decreased to 6.47% after the reduction. On September 18, 2023, the equity information of Jinghai Internet Technology Development Co., Ltd. was changed, and the 15.55% held by Hebei Gree Electric Appliance Marketing Co., Ltd. showed withdrawal, which marked that Hebei Xu Zifa has completely broken off from Gree since then.
Gree's simultaneous promotion in the dealership is to start online sales and make efforts in live broadcast to try to achieve channel reform. In 2018, Gree Electric Appliances first mentioned "live broadcast" in its annual report; At the same time, Haier and Midea only mentioned "live broadcast" for the first time in 2019. In 2019, "Dong Mingzhu's store" was launched, and in 2020, after Dong Mingzhu made his first live broadcast debut of 260,000 yuan, he began to join hands with Kuaishou's head anchor Erdonkey couple and Internet celebrity Wang Ziru to bring goods in the live broadcast room. Dong Mingzhu's 13 live broadcasts that year sold a total of 47.6 billion yuan, accounting for a quarter of Gree's revenue in the same year. After taking the lead in live broadcasting, Gree also made efforts on various platforms: during the Double 11 in 2018, Gree Air Conditioner achieved sales of 1.259 billion yuan on the whole network, accounting for 28.1% of the market, and the proportion of sales and sales volume was the first; The household appliances of the whole network increased by 45.7% year-on-year. During the Double 11 period in 2019, the sales of Gree electrical products exceeded 4.1 billion yuan, a year-on-year increase of 200%, of which the third-party platform for the sales of air conditioning exceeded 3.64 billion yuan throughout the day, a year-on-year increase of 178%, ranking first in the sales of air conditioning products in the whole network; The sales volume of the self-owned platform "Dong Mingzhu's Store" was 363 million yuan, a year-on-year increase of 48 times. In 2021, Gree, who continues to make efforts in live broadcasting, met Meng Yutong, and the IP of "Pearl Yutong" is tightly bound, and the annual report discloses: In 2021, the live broadcast of "Gree Dong Mingzhu Store" ushered in explosive development, forming a live broadcast Internet celebrity matrix represented by "Miss Dong" and "Yutong". According to data, during the 618 promotion last year, the sales of Gree Douyin live broadcast matrix exceeded 40 million yuan, of which the sales of Pearl Yutong Select Account exceeded 30 million yuan, accounting for more than 70%. However, Meng Yutong, who was pinned on by Dong Mingzhu, was rumored to have been fired last year for violating company discipline and broke up with Gree.
Although the first-mover advantage has brought a lot of traffic to Gree, Gree's financial report data has not caught up with its peers due to live broadcasts. After the live broadcast, Gree's revenue and net profit attributable to the parent company have not changed much. In recent years, the revenue has been between 180 billion and 200 billion yuan, and the net profit attributable to the parent company has also hovered around 22 billion to 24 billion yuan. I have to say that Gree Electric's revenue and net profit in the past 5 years have really regressed:
Data source: Gree Electric Annual Report
In fact, Gree Electric has to face the reality that its revenue has been surpassed by Midea and other peers one after another: Gree Electric released its annual report for the first half of 2023 on the evening of August 30, achieving operating income of 99.237 billion yuan in the first half of the year, a year-on-year increase of 4.22%; The net profit attributable to the parent company was 12.673 billion yuan, a year-on-year increase of 10.52%. On the same day, Midea Group released its 2023 semi-annual performance report, showing that the company's total operating income reached 197.8 billion yuan, a year-on-year increase of 7.84%; The net profit attributable to the parent company exceeded 18.2 billion yuan, a year-on-year increase of 13.98%. Among them, Midea Group's total revenue in the second quarter reached 101.2 billion yuan, breaking the 100 billion mark for the first time, setting a record high for Midea in a single quarter. In addition, Midea Group's HVAC in the first half of the year was 92.007 billion yuan, a year-on-year increase of 10.54%.
In the past 5 years, Gree seems to have been in reverse: from verbally criticizing peers for stealing technology, to hiring high-priced independent directors who were questioned about not abdicating, and then to a 1 billion gamble with Xiaomi Lei Jun - Dong Mingzhu won Lei Jun, but Gree lost to Xiaomi; Dong Mingzhu was displeased because the shareholders' meeting was not applauded, and he was angry with the shareholders; The secretary left, and Wang Ziru's channel reform was one by one.
Looking back, Gree has been making mistakes for five years, and its income and profits are not even as good as they were five years ago. Worth 7 billion, Miss Dong, who has an annual salary of 10 million yuan, suffered Waterloo in car building and mobile phones, and institutional investors such as northbound funds and public funds voted with their feet, and Gree's share price continued to be bleak, falling by half from the peak in 21 years.
It's not the first time that Gree and Miss Dong have operated like this. Let's review one of Miss Dong and Gree's famous Waterloo scenes: the Yinlong new energy vehicle dream that made Gree vomit blood
According to the surging news report: The 2022 annual report disclosed by Gree Electric Appliances on April 28 shows that Yinlong New Energy Co., Ltd., which was renamed Gree Titanium New Energy Co., Ltd. (hereinafter referred to as "Gree Titanium"), has a net loss of 1.905 billion yuan in 2022, and its net assets have shrunk from 2.147 billion yuan at the beginning of the year to 237 million yuan. In 2016, Dong Mingzhu, chairman of Gree Electric Appliances, tried to acquire Yinlong for 13 billion yuan, but was opposed by the board of directors. In 2021, Gree spent 1.828 billion yuan to auction 30.47% of Yinlong's equity and became the controlling shareholder. However, since the acquisition on October 31, 2021, Yinlong's net book assets have shrunk by more than 2.2 billion yuan from 2.469 billion yuan. In addition, in 2022, the listed company will make a goodwill impairment provision of 150 million yuan for Gree Titanium.
In December 2015, Sunshine Insurance increased its capital in Zhuhai Yinlong by 1 billion yuan and agreed on a performance VAM. Later, due to the failure of Zhuhai Yinlong's performance to meet the standard, Sunshine Insurance demanded that Zhuhai Yinlong and the original shareholders bear the liability for compensation, and the amount claimed was the original principal of 1 billion yuan and interest of 150 million yuan, totaling 1.15 billion yuan. Similar to Sunshine Insurance, there are 7 other shareholders who have a performance VAM capital increase agreement, with an investment principal of 1.11 billion yuan. Gree Electric's 22-year annual report shows that after two hearings and many written exchanges of opinions, the case is still in the stage of waiting for the arbitral tribunal to investigate and collect evidence and adjudicate, and the amount of litigation that Gree Titanium needs to bear cannot be estimated.
Miss Dong and Gree's Waterloo Famous Scene No. 2: Funny Yinlong Effie
In 2019, the "Yinlong Effie" commercial vehicle under the leadership of Miss Dong was launched. The "Yinlong Effie" logo is a flower composed of five rings together. Seeing this car logo always makes people's ears involuntarily sound Xiao Yueyue's "Song of the Five Rings" "Ah, ah, five rings, you have one more ring than the fourth ring, ah, five rings, you have one less ring of six rings" funny picture. As a domestic version of the MPV business car, the "Yinlong Effie" amazes everyone not only with the car logo, but also with its positioning and price - the top version costs 430,000 yuan, and its price is comparable to Mercedes-Benz E-class, Infiniti and other models. In the face of this price reason, many netizens shouted that they couldn't afford it, and in the first year of Yinlong Effie's listing, the sales volume was only more than 2,700 units, and in 2020, Yinlong Effie was uncared for.
Let's take a look at the more than 300,000 Wenjie M9 produced by Huawei and Seris, and 258,000 Zhijie S7. Yinlong Effie, are you sure you're not here to be funny?
Miss Dong and Gree's Waterloo Famous Scene No. 3: Known as killing Xiaomi in seconds, the Gree mobile phone that does not lose to Apple is yellow
Around 2019, Gree's mobile phone business moved its core team to Shenzhen, including development, testing, and administrative human resources departments, with nearly 100 people at its peak. On May 19, 2023, news from various sources showed that the core team of Gree Electric's mobile phone was yellow.
Netizens with good things turned out the famous remarks made by Miss Dong, chairman of Gree, on her mobile phone back then:
1. Gree makes a mobile phone to extinguish Xiaomi in minutes.
2. Gree has 6 research institutes, and many functions of electrical appliances are closely related to mobile phones. ”
3. Huawei sells first, and we sell second.
4. The mobile phone I make now is no worse than Apple.
5. Gree has no failure in making mobile phones.
The ideal is very plump, and the reality is very skinny. The sales of Gree mobile phones are really a slap in the face:
In March 2015, the first-generation Gree mobile phone was released, and sales were dismal; In June 2016, the second-generation Gree mobile phone was released, and sales were dismal; In June 2017, the third-generation Gree mobile phone priced at 3200 yuan called "Color World" was released, which was on sale for a year and a half, and the sales volume of the official mall was up to more than 3800 units, and all models added up to less than 10,000 units; In March 2019, the 3rd generation of Gree mobile phone was released, and on December 18, 2020, he died; Since 2020, Gree mobile phone has changed its name to Dasong, and has successively released Dasong G5 and G7 mobile phones. Today, the highest sales volume of a single model is 14,000 units, and the lowest is less than 400 units. This is also due to the achievements made by Gree in the past two years driven by the live broadcast business. So I understand everything. And then there is no later.
If Huawei is professional in making cars and mobile phones, then Gree is really funny when it comes to making cars and mobile phones. Such honey operations have been staged again and again for Gree's 100 billion listed companies, and in the end it hurts the hearts of investors.
In fact, institutional investors have been voting with their feet since 2021. According to Oriental Wealth data, the northbound capital, which has always been fond of Gree, has dropped from 17.46% to 10.76% in 2021. The day of the reduction of holdings in the north is when Gree's share price peaks. Also voting with their feet are public funds.
The data shows that the market value of Gree held by public funds is 12.5 billion, accounting for 6.18% of the outstanding shares, a decrease of 31.31% from the previous period.
The result of the public fund voting with its feet is that the share price of Gree Electric has not only underperformed the CSI 300 in the past month, but also far underperformed its peers.
From 2018 to 2022, Gree Electric's revenue and profits have declined. Compared with 2018, Gree Electric's revenue has dropped by 10 billion, and its profits have shrunk by nearly 2 billion. In the past 5 years, Gree Electric has not grown, but has continued to repeat various rollover accidents of making cars and mobile phones. Even if the video delivery had just improved, the bloody plot between Miss Dong's assistant Meng Yutong and Gree appeared, which made Gree's online live broadcast come to an abrupt end. Looking back, all of them seem to be providential. Now, Wang Ziru's nuclear bomb-level performance is more like the climax of the entire script, freezing Gree's 5-year drama in the public's mind in a weird and sensationalist way, and clearing the public's last good impression of Gree and Miss Dong.
The culture of leadership is the culture of the enterprise, and the vitality of the corporate culture determines the fate of the enterprise.
Finally, let's talk about this paragraph. One day after Tang Seng obtained the scriptures, he asked Tang Seng: "Among your three apprentices, which one do you like the most?" Tang Seng replied: "Eight precepts." "Bajie's personal ability is the worst, and there are shortcomings such as irresponsibility. Why do you like him the most? Rulai asked puzzled. Tang Seng replied: "The most important reason I like him is that he prefers to wear whiskers and shoot horses. A leader will inevitably develop a favorable impression and even a sense of dependence on a subordinate who is always praising him. "If you are an employee like Monkey King, do you like the corporate culture of Gree Electric?