Sino-Singapore Jingwei Client, October 31st (Zhang Yanzheng) On the evening of October 30th, Gree Electric (hereinafter referred to as Gree) and Midea Group (hereinafter referred to as Midea) released the third quarter report of 2020 on the same day.

The report shows that Gree achieved revenue of 125.889 billion yuan in the first three quarters, a year-on-year decrease of 18.8%, and its parent net profit was 13.699 billion yuan, a year-on-year decrease of 38.06%.

Among them, the net profit attributable to the parent in the third quarter was 7.337 billion yuan, a year-on-year decrease of 12.32%.

　　As Gree’s old rival for more than 20 years, Midea Group’s net profit has turned losses into profits.

In the first three quarters, Midea achieved revenue of 216.76 billion yuan, a year-on-year decrease of 1.88%; net profit attributable to the parent company was 22.018 billion yuan, a year-on-year increase of 3.29%.

Among them, the net profit attributable to the parent in the third quarter was 8.09 billion yuan, a year-on-year increase of 32%.

According to the previous semi-annual report, in the first half of 2020, Midea's total revenue was 139.719 billion yuan, a year-on-year decrease of 9.47%; net profit attributable to the parent was 13.928 billion yuan, a year-on-year decrease of 8.29%.

　　Neither Gree nor Midea announced the specific sales of their operating businesses.

However, the forecasts of the two major home appliances giants for 2020 operating performance are exactly the same. Both said that "the cumulative net profit from the beginning of the year to the end of the next reporting period may be a loss or a substantial change compared to the same period last year."

　　It is worth noting that the major shareholders of Midea and Gree are pledged to varying degrees.

According to the financial report, during the reporting period, Midea Holdings Co., Ltd. held 31.1% as the largest shareholder of Midea, and Hong Kong Securities Clearing Co., Ltd. held 15.96% as the company's second largest shareholder.

At present, the 2.185 billion shares held by Midea Holdings, the largest shareholder of Midea Group, have 215 million shares pledged, accounting for 9.84% of the total number of shares held by Midea Group.

　　Shareholders of Gree Electric Appliances Source: Gree Electric Appliances Financial Report

　　Regarding Gree, during the reporting period, Hong Kong Securities Clearing Co., Ltd. and Zhuhai Mingjun Investment Partnership were Gree's largest shareholder and second largest shareholder, holding 16.85% and 15%, respectively.

Dong Mingzhu, chairman and president of Gree Electric, is the ninth largest shareholder of the company, holding 0.74% of the shares.

However, at present, Gree's second largest shareholder has pledged all of its 902 million shares, accounting for 100% of its total holdings of Gree Electric Appliances.

The 44.488 million shares of Gree held by Dong Mingzhu have been pledged with 43.633 million shares, accounting for 98.09% of the total shares of Gree held by him.

　　According to Wind data, Midea Group Co., Ltd. was established in 2000 and was listed on the Shenzhen main board in 2013. The total revenue in 2019 was 279.381 billion yuan, of which HVAC revenue accounted for 42.81%, and the legal representative was Fang Hongbo.

Zhuhai Gree Electric Appliance Co., Ltd. was established in 1989 and was listed on the Shenzhen main board in 1996. In 2019, its total revenue was 200.508 billion yuan, of which air-conditioning revenue accounted for 69.16%. The legal representative is Dong Mingzhu.

　　As of the close of October 30, Gree Electric had a market value of 351.5 billion yuan, and Midea Group had a market value of 546.8 billion yuan. The difference in market value between the two was 195.3 billion yuan.

At the beginning of January 2020, the market value of Midea Group was 409 billion yuan, and that of Gree Electric was 394.5 billion yuan. The gap between the two parties was only 14.5 billion yuan.

(Zhongxin Jingwei APP)

(The opinions in the article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)

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