GREE(SZ:000651) Di Yi Cai Jing·2026-02-26 07:13Core Viewpoint - Hillhouse Capital plans to reduce its stake in Gree Electric Appliances by 2%, leading to a 2.1% drop in the company's stock price, reflecting concerns about the company's future performance amid rising costs and declining sales in the air conditioning market [1][2]. Group 1: Shareholder Actions - Hillhouse Capital's major shareholder, Zhuhai Mingjun Investment Partnership, intends to sell up to approximately 111.7 million shares, representing 2% of Gree's total share capital, to repay bank loans [2]. - Hillhouse Capital acquired shares at approximately 46 yuan per share in 2019, but the stock price has since declined nearly 20%, resulting in a low overall investment return despite annual cash dividends [2][3]. Group 2: Market Conditions - The air conditioning market is facing challenges due to saturated demand, increased competition, and rising raw material costs, particularly copper, which is expected to exceed 100,000 yuan per ton by 2026 [4][5]. - Gree Electric has committed to not raising air conditioning prices despite rising copper costs, which may lead to significant pressure on profit margins [4][6]. Group 3: Financial Performance - Gree Electric's revenue and net profit have shown declines, with a 15.09% drop in revenue to 39.855 billion yuan and a 9.92% decrease in net profit to 7.049 billion yuan in the third quarter [7]. - The company reported a total revenue of 137.18 billion yuan for the first three quarters, down 6.50% year-on-year, and a net profit of 21.461 billion yuan, down 2.27% [7]. Group 4: Future Outlook - Analysts express concerns about Gree Electric's reliance on the real estate market, which is currently in a downturn, and the transition from a growth market to a saturated market poses additional challenges [5][6]. - Despite the current pressures, there are opportunities for Gree Electric through technological innovation, product upgrades, and expansion into emerging markets [5][6].