Gree's more than $90 million fine from the United States has attracted sustained attention. Gree this time is really a house leak in the overnight rain, the third quarter performance declined, to know that the third quarter should be the peak season of air conditioning sales, Gree performance does not rise but declines.
Gree's market value has fallen from the highest of more than 400 billion to about 200 billion now, and has evaporated by more than 50%, not only many retail investors have been trapped, but even the major shareholder Hillhouse Capital has also been trapped. Hillhouse Capital's investment in Gree has lost billions.
So is Gree still worth investing in now? Will Gree still pick up? Gree's current market value is not as good as 200 billion, but Gree's cash reserves alone are as high as more than 130 billion, of which more than 90 billion exist in the bank to eat interest. If you want to know what it's like to have more than 90 billion in the bank, you can ask Dong Mingzhu.
Dong Mingzhu deposited more than 90 billion of Gree's more than 130 billion yuan of cash reserves in the bank, and the interest alone can get more than 3 billion yuan every year. Gree's annual profit is now around 20 billion, in other words, more than 3 billion of them come from bank interest.
Guo Guangchang, shanghai's richest man, had predicted that Dong Mingzhu might open a bank. Guo Guangchang predicted this because Gree itself has a huge cash pool, and it definitely has the strength to open a bank, but Dong Mingzhu did not do so.
In fact, Dong Mingzhu is still a relatively conservative entrepreneur, which is actually not a bad thing. In addition to gree cash reserves, in fact, the technical advantages are still very large. The key point is that Dong Mingzhu is still actively stockpiling future technologies. Gree is currently developing a light storage air conditioner, this air conditioner can make its own mobile phone solar energy, and use this to generate electricity, and then use this power to drive the air conditioner, the key is that the remaining electricity can also be stored and provided to other electrical appliances.
Dong Mingzhu said that Gree will completely change air conditioning, so that air conditioning from a large energy consumer to an energy-saving pioneer. At present, Gree this air conditioner is about to be successfully developed, if the real research and development is successful, then this will definitely subvert the air conditioning market.
Recently, Tesla's market value has soared all the way, breaking through $1 trillion, Tesla's market value has risen sharply because of new energy vehicles, Tesla has proved the power of science and technology. Entities that want to be recognized by the capital market must stay ahead of the curve in technological innovation.
Many people think that Gree should engage in mergers and acquisitions, to expand overseas markets, etc., in fact, they are not the core, the most important thing is that Dong Mingzhu should learn from Ren Zhengfei, reserve a lot of cash, and then engage in research and development. Huawei's success is because of research and development, so that Huawei reserves a large number of core technologies, and is the world's leading technology.
If a product wants to occupy a larger market, it must be technologically ahead of the curve, and it must have disruptive technologies. Taking this more than 130 billion yuan of cash to engage in mergers and acquisitions may help Gree in the short term, but in the long run, such an approach is useless. Some companies have spent tens of billions of dollars to acquire cars, and the final purchases are non-core technologies, and the cars have not been made so far.
Some people say that with more than 130 billion in cash to open a bank, or to engage in real estate, although this can make money, but what help is it for the main business? And there is no connection between banks. In fact, many companies that blindly diversify do not end up very well.
Dong Mingzhu can be so calm, and can resist the pressure of the capital market, but it shows that she is an excellent entrepreneur, but also more shows that Gree is a company worth holding for a long time. If Dong Mingzhu blindly caters to the capital market, then in the end it shows that Gree is not a good company. Nowadays, there are not many entrepreneurs like Dong Mingzhu.
Dong Mingzhu recently talked about the decline in gree market value, Dong Mingzhu said that she hopes that investors will not profit because of the rise in the market value of Gree electric appliances, she hopes that shareholders will profit because of the company's long-term dividends. Dong Mingzhu herself has also gained a lot of benefits from Gree dividends for many years, and the dividends and salaries she has received from Gree have exceeded 300 million.
Some people are optimistic about Dong Mingzhu, some people are not optimistic about Dong Mingzhu, at least for Dong Mingzhu not blindly diversified, bent on research and development, it shows that Dong Mingzhu is definitely a good entrepreneur. Gree's tomorrow is definitely more than 400 billion market value.