Core Viewpoint - Gree Electric Appliances is facing significant challenges in 2024, highlighted by the controversial remarks of its chairperson, Dong Mingzhu, regarding overseas returnees, which may reflect deeper concerns about the company's future and market position [2][21]. Group 1: Company Leadership and Governance - Dong Mingzhu has publicly stated that Gree will not hire overseas returnees due to potential espionage risks, a stance that has drawn criticism and may harm the company's image [2][12]. - The recent shareholder meeting saw Dong Mingzhu re-elected as chairperson while stepping down as CEO, indicating a significant leadership transition within the company [10]. - Gree's governance issues include excessive centralization of power under Dong Mingzhu, which poses risks to the brand's reputation and may lead to legal repercussions due to her controversial statements [12][20]. Group 2: Market Position and Competition - Gree's market share in the domestic air conditioning sector has declined, with competitors like Midea surpassing it, indicating a shift in market dynamics [13][20]. - The company's revenue has shown a year-on-year decline of 5.39% in the third quarter of 2024, breaking a trend of continuous growth over the past several quarters [13][20]. - Gree's reliance on traditional markets and its slow adaptation to new sales channels, such as e-commerce and live streaming, have hindered its competitive edge [19][20]. Group 3: Strategic Challenges - Gree is pursuing a diversification strategy to seek new profit growth points, but its efforts in areas like mobile phones and green energy have not been successful, with significant revenue declines reported [17][20]. - The company faces challenges in international expansion, with its export share remaining below that of competitors like Midea and Haier, and limited presence in key markets such as the U.S. and Europe [19][20]. - Gree's approach to talent selection appears to be heavily influenced by personal preferences, raising concerns about the future leadership and succession planning within the company [15][20]. Group 4: Future Directions - To address its challenges, Gree aims to improve governance by balancing power and establishing a more effective talent selection system [23][25]. - The company plans to enhance its diversification strategy by increasing R&D investment and expanding its product categories beyond air conditioning [23][25]. - Gree is also focusing on upgrading its sales channels and enhancing its international presence through strategic partnerships and sponsorships [23][25].