On November 12, gree Electric Appliances lost 30 billion yuan in market value after selling profits of 3 billion yuan. Gree’s shares closed Tuesday at 59.16 yuan, down 3.29%.

Gree Electric appliances 2 billion remanufactured chips

On the evening of November 11, SAN ‘an photoelectric issued a non-public additional offering plan, plans to raise a total amount of not more than 7 billion yuan, for Quanzhou SAN ‘an “semiconductor RESEARCH and development and industrialization of the first phase of the project.” The private placement price is 90% of the average trading price of the 20 trading days prior to the benchmark pricing date, and the number of private placement shares is about 13.11% of the total current share capital based on the current price. As of Tuesday’s close, SAN ‘an optoelectronics rose nearly 5%.

It is worth noting that Gree Electric Appliances intends to participate in the subscription, as well as Changsha Pioneer High Chip Investment Partnership (limited partnership), a subsidiary of Changsha State Capital.

The non-public offering of No more than 816 million shares of SAN ‘an optoelectronics co., Ltd. is expected to be subscribed by Pioneer High Chip co., Ltd. for 5 billion yuan and Gree Electric Co., Ltd. for 2 billion yuan. According to analysts, this time SAN ‘an optoelectronics is expected to set a record for the amount of money. Home appliance enterprises enter the chip industry, mainly based on supply chain security and their own needs.

The announcement shows that after the completion of the issuance is expected to lead high Chip will newly become the third largest single shareholder of the listed company, the shareholding ratio will not exceed 11.9%. However, the actual controller status will remain unchanged after the issuance, and the total shareholding ratio of Lin Xiucheng, the actual controller of the listed company, through SAN ‘an Group and SAN ‘an Electronics will be reduced from 35.75% to no less than 29.78%.

Why the layout of home appliance enterprisesChip industry?

In the middle of last year, Gree Electric Appliances Dong Mingzhu said at 50 billion yuan research chips. In addition to participating in the private addition of SAN ‘an Optoelectronics, Gree Electric Appliances and zhuhai Ronglin, acting in concert, participated in the acquisition of Anshi Semiconductor project by Wentai Technology, and will become a strategic investor holding 12.33% of the shares without considering the subsequent supporting financing.

In march, a wholly owned subsidiary of midea group and three Ann photoelectric integrated circuit co., LTD in xiamen, xiamen city three Ann held a “joint laboratory of the third generation semiconductor” celebration ceremony, the two sides will carry out strategic cooperation, to promote the innovation and development of the third generation of semiconductor power device, to speed up domestic chip import white goods industry.

In addition, there are kang Jia, TCL, Changhong, chuangwei and other brands have already set foot on the “core” road. What are the reasons for the layout of chips in home appliance enterprises?

Some analysts say that most of the chips used by home appliance enterprises are purchased from overseas, and the era of smart home and the Internet of Things has come, which has brought huge demand for smart chips, and the early layout of the chip and semiconductor industry can avoid being controlled by others. For Gree, it would be more feasible to buy a stake in an established chip semiconductor company than to make its own chips. Gree Electric Appliances has abundant cash flow. In the smart home transformation process, it needs a large number of chips and semiconductors. The active layout of the chip industry is considered from the perspective of its own industrial security, which is conducive to the stability of the upstream chip supply field and increases its voice in the upstream chip industry.

Ping An Securities also said chips in the home appliance industry to occupy a much smaller position than communications equipment industry. At present, the layout of home appliance enterprises chip is inevitable to gather hot spots “follow the trend” suspicion, lack of specific planning for the future development, the implementation of great pressure. Home appliance enterprises and chip manufacturing enterprises “join hands”, through equity, joint ventures and other forms of involvement in this new field, can be regarded as a safe move.

40 billion projects have been postponed

After Hillhouse capital took over Gree Electric Appliances with 40 billion yuan, new changes were made. On the evening of November 11, Gree Electric Appliances announced that zhuhai Mingjun and the controlling shareholders plan to postpone the signing of the share transfer agreement in view of the remaining issues in the share transfer agreement. Tuesday’s sharp drop in Gree’s share price may have something to do with it.

Previously, On October 28, Gree Electric Appliances released the Notice on the Results of the Public Solicitation of Transferees for the Proposed Agreement transfer of Part of the Company’s shares by controlling Shareholders, which said that Zhuhai Mingjun became the final transferee of 15% of gree Electric Appliances’ equity. According to the previous plan, Zhuhai Mingjun should sign the Share transfer Agreement with Gree Group within 10 working days from the date of being confirmed as the final transferee, but wait for the extension 10 working days later.

It is understood that before signing the “Share transfer Agreement”, Zhuhai Mingjun still needs to get gree electric Appliances management’s agreement, the two sides reach an agreement on the specific cooperation plan, and disclose it to the public. Therefore, some market analysts believe that the delay means that the gree management led by Dong Mingzhu, Gree Group and Hillhouse Capital still need time to conduct more in-depth communication.

Information shows that Zhuhai Mingjun Investment was established in May 2017, backed by Hillhouse Capital. Hillhouse Capital is an investment company focusing on long-term structural value investment. Its investment covers scientific and technological innovation, medical and health care, consumer and enterprise services and other fields. Currently, the funds available for trading have exceeded RMB 400 billion.

Hillhouse has invested in hundreds of enterprises in China, and has a broad layout in the ecological circle of smart life and intelligent manufacturing. It is widely believed in the market that the introduction of Hillhouse is expected to help Gree build smart home ecology, and is expected to provide more strategic resources for the company’s intelligent manufacturing and diversified transformation. Huatai securities analysis said that if the mixed reform is steadily promoted, the company is expected to become a state-owned enterprise reform standard. Introducing hillhouse capital is expected to bring company a modern enterprise system reform, improve the corporate governance structure, and is expected to introduce more strategic synergy resources for the company, the company is currently the industrial chain advantage and domestic leading brand force under the condition of solid, mix to big probability to accelerate the company to the global air conditioning industry development, improve future growth space, further highlight the leading value in the future.

Article reprinted from world Manager website