GREE(SZ:000651) Sou Hu Cai Jing·2026-02-25 13:55Core Viewpoint - Gree Electric Appliances' largest shareholder, Zhuhai Mingjun, plans to reduce its stake by up to 2% within three months, citing the need to repay bank loans as the reason for the sell-off [1][3]. Group 1: Shareholder Actions - Zhuhai Mingjun intends to sell no more than 111.7 million shares, representing 2% of the total share capital after excluding shares in the repurchase account [1]. - This marks the first time in six years that Zhuhai Mingjun has disclosed a plan to reduce its holdings since becoming the largest shareholder [3]. - The sale is expected to generate approximately 4.3 billion yuan based on the current share price of 38.49 yuan per share [4]. Group 2: Background on Zhuhai Mingjun - Zhuhai Mingjun is backed by Hillhouse Capital, a major private equity firm in China, and has a significant relationship with Gree's chairperson, Dong Mingzhu, as they are considered to be acting in concert [3]. - As of now, Zhuhai Mingjun holds 902 million shares of Gree Electric, accounting for about 16.11% of the company, while Dong Mingzhu owns 10.08 million shares, making her the sixth-largest shareholder [3]. Group 3: Financial Performance and Investment - Hillhouse Capital acquired a 15% stake in Gree Electric for 41.662 billion yuan at a price of 46.17 yuan per share, with the deal finalized in December 2019 [6]. - Since the acquisition, Gree Electric's stock price has not significantly increased, with the current market value of Zhuhai Mingjun's holdings at approximately 34.718 billion yuan [7]. - Despite the lack of substantial capital gains, Zhuhai Mingjun has received around 15.7 billion yuan in dividends, bringing the total value of its investment to about 50.4 billion yuan over six years, resulting in a floating profit of over 8.7 billion yuan [7][8].