GREE(SZ:000651) Sou Hu Cai Jing·2025-05-22 12:54Core Viewpoint - Gree Electric's net profit remains high, but its revenue for 2024 has declined by 7.31%, indicating diminishing growth potential for the company [1][14]. Group 1: Company Actions and Strategies - Gree's chairman, Dong Mingzhu, has undertaken a series of controversial actions to capture more internet traffic during the peak air conditioning season, including rebranding Gree stores to "Dong Mingzhu Health Home" [3][5]. - Dong has publicly stated her commitment to her personal reputation and criticized others for prioritizing stock prices over shareholder returns, which has generated significant online discussion [3][5]. - The recent reconciliation with former secretary Meng Yutong, including a planned live-stream event, appears to be a strategic move to generate buzz and potentially boost sales amid stagnant revenue growth [5][11]. Group 2: Financial Performance - Gree's total revenue for 2024 is reported at 1900.38 billion, down from 2050.18 billion in 2023, marking the first negative growth in four years [13]. - The company's total costs have also decreased, with total operating costs for 2024 at 1548.68 billion compared to 1707.74 billion in 2023 [13]. - Despite the drop in revenue, Gree's competitors, such as Midea and Haier, continue to show growth, highlighting Gree's challenges in its core air conditioning business and diversification efforts [14]. Group 3: Market Position and Challenges - Gree's stagnation is attributed to a lack of innovation and a clear strategic direction, rather than merely a deficiency in traffic [15][19]. - The collaboration with Meng Yutong may generate short-term attention, but it does not address the fundamental issues of product innovation and business model adaptation that Gree faces [14][19].