Fang Hongbo’s reduction of Dong Mingzhu’s direct air conditioning industry “reaching the top”?

In the second half of this year, the real estate recovery is a big good for home appliances, especially air conditioning. Judging from the two financial reports, air conditioning products failed to continue the momentum of sharp increase in overall performance. Industry question, air conditioning is not sold? In the first three quarters of this year, Gree achieved a revenue of 125.889 billion yuan, a year-on-year decrease of 18.80%, and a net profit of 13.699 billion yuan, a year-on-year decrease of 38.06%. According to the third quarter report of 2020 of Midea Group, the revenue of the first three quarters was 216.761 billion yuan, a year-on-year decrease of 1.88%; the net profit attributable to shareholders of listed companies was 22.018 billion yuan, with a year-on-year increase of 3.29%. In the third quarter, the revenue was 77.694 billion yuan, up 15.71% year-on-year; the net profit attributable to shareholders of listed companies was 8.090 billion yuan, up 32% year-on-year. < p > < p > in the previous half yearly reports, the net profits of Midea Group and Gree Electric Appliance Co., Ltd. both declined year on year. Midea Group declined by 8.29% and Gree Group by 53.73%. In the third quarter, Midea Group made more than 700 million yuan more than Gree Electric. Gree’s performance in the third quarter continued to decline year on year. < p > < p > since this year, Gree Electric has launched channel innovation. On the launch line day, “Gree dongmingzhu store” has held seven live circuit sales nationwide. According to the official data released by Gree, the sales of Dong Mingzhu’s seven live tours totaled 27.309 billion yuan, accounting for 48.43% of the total revenue in the third quarter. However, live delivery with goods is only an online means. How to transform the huge offline dealers into online sales is the focus of Gree’s “new retail”. According to the financial report, Gree’s revenue in the third quarter was 56.387 billion yuan, a decrease of 2.35% compared with the same period last year, and an increase of 14.4% on a month on month basis; the net profit attributable to shareholders of listed companies was 7.337 billion yuan, a decrease of 12.32% compared with the same period of last year, but an increase of 52.71% compared with the second quarter. < / P > < p > transformation is also the main theme of Midea Group in recent years. This year, Midea has proposed a comprehensive “digital, intelligent” transformation strategy. Midea launched its online and multi category product strategy earlier, so it was less affected than gree in the first half of the year. Financial report shows that Midea Group’s domestic air-conditioning line% in the third quarter. In the third quarter, Fang Hongbo, chairman of Midea Group, reduced the reference market value of 1.362 billion yuan. At that time, Midea Group responded that because of Fang Hongbo’s personal asset allocation needs, and it was the first time to reduce holdings. Air conditioning is different from ordinary fast-selling products, and its service life can reach 5-10 years. The air conditioning industry touches “ceiling” is the most discussed topic. From the demand side, the number of 100 households of white power products in China has been very high, and the new demand is obviously insufficient. The superimposed epidemic situation has an obvious inhibitory effect on the demand for upgrading. In the first half of this year, the market demand shrank seriously. In order to stimulate the release of consumer demand, the industry fell into price war. According to AVC data, the average prices of air conditioners, refrigerators, washing machines and freezers in the first half of this year decreased by 14.7%, 5.3%, 6.7% and 11.0% respectively year-on-year. Gree Electric pointed out in the semi annual report that compared with Japan and other mature markets, there is still room for the growth of domestic air conditioning per 100 households. With the gradual expansion of the third and fourth tier cities and rural markets and the release of replacement demand, there is still a large space for growth in the HVAC market where the company’s main business is located. Earlier, Dong Mingzhu said, “air conditioning will always have demand, but short-term abnormal.” < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. 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