On March 8, Gree Electric's chairman Dong Mingzhu responded to Gree and Xiaomi’s 1 billion gamble when interviewed by the media. Dong Mingzhu said, 'His number has no way to confirm that he is not a listed company. He doesn’t say anything. If he is listed, he may be willing to cash it. After listing, he does not look at the market value. It is your sales, and he laughs.
In December 2013, at the CCTV 'China Economic Year People' Awards Ceremony, Lei Jun of the People Awards of the Year stated that if Xiaomi’s operating income beat Gree in 5 years, he hoped that Dong Mingzhu would lose one yuan for himself, and Dong Mingzhu responded strongly on the spot. Road: 'If you don't want to mention one dollar, you have to bet 100 billion yuan.' By the end of 2018, the five-year betting of Lei Jun and Dong Mingzhu had been fulfilled.
' Xiaomi's valuation has exceeded Gree's market value'
Isn't there another year in 2018?” After being asked by the media about the gambling contract with Xiao Lei Lei Jun, Dong Mingzhu responded yesterday and said, 'His figure has no way to confirm. He is not a listed company. He can't say anything. He If you go public, you may be willing to cash in. After listing, you don't look at the market value. It's about your sales. It's laughable. '
Earlier, Lei Jun mentioned in an open letter that Xiaomi had achieved its goal of achieving 100 billion yuan in revenue in advance in October 2017. Gree Financial Report showed that in the first three quarters of 2017, the total revenue of the company has exceeded 112 billion yuan. Personages predict that Gree's annual revenue is expected to reach 155 billion yuan.
When the gambling agreement was established in 2013, Xiaomi’s turnover was RMB 31.6 billion, and Gree’s turnover was RMB 120.043 billion. The two players’ bet will expire at the end of 2018. Will Miller and Gree win even more?
Industry observer Liu Buchen told reporters that if we look at the amount of revenue for both, Gree has a higher probability of winning. 'Greek 2017's revenue is around 150 billion yuan. By the end of 2018, Gree’s revenue target was 200 billion yuan. By the end of this year, Xiaomi, Hard to achieve 200 billion revenue. '
If you look at the market value, it will be another result. Recently, Xiaomi rumors have started listing, a millet Pre-IPO financing project revealed by the media shows that the current assets of Xiaomi's underlying assets are worth 54 billion US dollars. Estimated market value is 100 billion US dollars. Another version of the market value of millet or up to 200 billion US dollars. As of March 8th, Gree market value of 319.796 billion yuan, according to the current exchange rate, about 50.47 billion US dollars.
From the perspective of the growth of the two companies, Liu Buchen believes that Xiaomi’s growth is better. “The problem with Gree is over-reliance on air-conditioning. Others have not cultivated, or even though they are nurturing but have not developed well, Xiaomi’s situation is better. Much more.'
Millet and Gree belong to different fields. Xiaomi's air conditioners and Gree's mobile phones are one of the few companies that generate intersections. Liu Buchen said, 'The performance of millet air conditioners is equivalent to that of Gree mobile phones. Success. In the future, it is not easy for Xiaomi Air Conditioner to do a good job. Gree's mobile phone is now almost failing.
Millet mobile phone rides a roller coaster
For five years, both Xiaomi and Gree have experienced ups and downs.
In 2013, Xiaomi could be said to be a rising star, surpassing Samsung one year later, and becoming the first mobile phone manufacturer in China. At the end of 2014, Xiaomi raised $1 billion and its valuation reached $46 billion, becoming a globally unlisted company. The company with the highest valuation.
Since then, along with the rapid rise of other domestic mobile phone brands and the fading of mobile phone market exchange dividends, millet mobile phones have faced unprecedented challenges. IDC's data report, according to statistics, millet shipments fell the most in 2016, From the domestic market share in 2015, it slipped to the fifth place, with shipments falling by 36% year-on-year.
It was in the year that Xiaomi became the No. 1 in China's mobile phone market. The company established the Xiaomi Ecological Chain Department, led by Liu De, co-founder and vice president of Xiaomi. This department is responsible for excavation, investing in and developing excellent hardware product teams. Eco-chain enterprises. It was this department that was still not known at that time. It became the 'key gentleman' of Xiaomi's mobile business downturn, and exchanged time windows for Xiaomi's mobile phone products.
From the second quarter of 2017, millet picked up, shipments increased significantly, and market share returned to the top five in the world. IDC’s latest quarterly mobile phone tracking report showed that in the fourth quarter of 2017, Huawei’s shipments increased by approximately 6.5 million year-on-year. %, OPPO, and vivo all showed different degrees of decline. Xiaomi ranked fourth and grew 57.6% year-on-year.
Lei Jun said in an open letter that Xiaomi had realized its revenue of over 100 billion yuan in advance in October 2017.
Xiaomi’s investment in ecological chain companies is close to the 100 targets Lei Jun had originally set. As of June 30 last year, Xiaomi has invested in 89. In February of this year, Huami Technology became the first listed company in the Xiaomi ecological chain. The company successfully landed on the NYSE. With a price of US$11 per ADS (America Depository Shares), Huami Technology made an initial public offering of 10 million shares of ADS with a total financing amount of over US$110 million. Huami Technology’s main products include Xiaomi. Brand smart bracelet and smart scale, self-owned brand AMAZFIT meter series smart bracelet and smart watch.
The Tiger Securities Investment Research Team believes that the listing of Hua Mi is not only an outpost for Xiaomi's listing test, but also a valuation of US$1 billion for Huami, which can be used to derive the valuation of Xiaomi's 100 billion US dollars.
Unsuccessful in making mobile phones, Gree betting new energy smart manufacturing
Gree also faced the problem of the ceiling of the main appliance business. Dong Mingzhu also chose to use a diversified approach to resolve.
Gree morning millet crossed the threshold of billions of dollars in revenue in four years. Where will the next one hundred billion yuan be? Under the guidance of Dong Mingzhu, Gree also started a diversified development path from refrigerators, small household appliances to Gree mobile phones. The effect is not obvious.
Dong Mingzhu has repeatedly served as a platform for Gree mobile phones. The relevant media reported that Dong Mingzhu used to say that 'Geli's mobile phone is of good quality. It is a bit expensive. You don't know who to use, and whoever uses it is good.'
Industry observer Liu Buchen called Gree mobile phone play very amateur. He said that the complete sales system, sales force, and channel promotion required by mobile phone companies are not available for Gree mobile phones. So far, Gree mobile phones have not announced their sales volume and Revenue data. In many people's eyes, Gree mobile phone will inevitably fail in the fiercely competitive smartphone market.
In 2016, Gree Electric Appliances planned to acquire Yinlong to develop new energy and new energy vehicle business, which was later terminated by the opposition of medium and small shareholders. Gree Electric Appliances and Yinlong signed a strategic cooperation agreement. Gree Electric Appliances provided Yinlong with smart equipment. Yinlong supplies Gree with new energy batteries, and the annual transaction volume of both parties does not exceed RMB 20 billion.
According to relevant media reports, Dong Mingzhu once stated that if it is only for the purpose of building a car, for the next 100 billion yuan, the cooperation between Nagri and Yinlong is blind. Some people think that Dong Mingzhu is playing the next big game, Gree wants to From a pure home appliance manufacturing company to 'new energy industry and equipment manufacturing companies' change, and in the new energy field to create a Gree legend.
In January of this year, Gree and the sales headquarters of the Phoenix World Trade Center in Phoenix, Arizona held a signing ceremony for Gree PV Multi-line Project Cooperation. This cooperation is currently the largest photovoltaic air-conditioning project in the United States and even in the world, and employs more than 1,200 air-conditioning units.
Liu Buchen told reporters that in addition to photovoltaic air conditioners, Gree also focuses on smart manufacturing. It is understood that Zhuhai Lingda, a wholly-owned subsidiary of Gree's compressor manufacturer, is the second largest company in the world in terms of production and sales of air compressors. In addition, Gree precision molds Co., Ltd. was also established in 2016. Its product areas include home appliances, automobiles, motor cores, heat exchangers, office equipment, plastic molding, 3C, optical components, stainless steel kitchen utensils, and medical equipment.
From the perspective of the above layout, Gree is not to be outdone. If the main business grows normally and achieves breakthroughs in the field of photovoltaic air-conditioning and smart manufacturing, the goal of revenue of 200 billion yuan in 2018 is very likely to be realized.