On the evening of October 27, Gree Electric Appliances, Inc. of Zhuhai (hereinafter referred to as Gree Electric) issued an announcement stating that Jinghai Internet Technology Development Co., Ltd. (hereinafter referred to as Jinghai Hulian), a shareholder holding more than 5% of the company's shares, plans to increase its holdings of the company's shares within 6 months from the date of the announcement disclosure, using its own funds and special loans from financial institutions for the share increase, through centralized bidding transactions and block trades. The total proposed increase amount shall be no less than RMB 600 million and no more than RMB 1.2 billion.
The announcement showed that this share increase is based on Jinghai Hulian's confidence in the company's future sustainable development and recognition of the company's long-term value. The increase plan does not set a price range and will be implemented by comprehensively considering factors such as the intrinsic value of the company's stock and market price trends. As of the date of the announcement disclosure, Jinghai Hulian held approximately 439 million shares of Gree Electric, accounting for 7.83% of the company's total share capital. Within 12 months prior to the announcement disclosure, Jinghai Hulian had no previously disclosed share increase plans; within 6 months prior to the announcement disclosure, there was no situation of reducing the company's shares.
In terms of financial support, the Shenzhen Branch of Bohai Bank Co., Ltd. has issued a loan commitment letter to Jinghai Hulian, providing special loan funds of no more than RMB 990 million for this share increase, with a term of no more than 3 years. Jinghai Hulian has committed to completing the share increase plan within the aforementioned implementation period and not reducing the company's shares during the implementation period of the increase plan and within the statutory period. If the company's stock is suspended during the implementation period, the increase period may be extended, and whether to extend the implementation will be disclosed in a timely manner.
Gree Electric stated that the implementation of this share increase plan will not cause the company's equity distribution to fail to meet listing conditions and will not cause a change in the company's control rights. The increase plan may be subject to the risk that implementation cannot meet expectations due to changes in capital market conditions or other risk factors that cannot currently be predicted.
Ding Shaojiang, chief analyst of the Qianqu GKURC (Global Key User Research Center) industrial economics think tank, told a reporter from Securities Daily: "As a consortium of core dealers of Gree Electric, Jinghai Hulian's proposed increase through its own funds and special loans for the share increase conveys confidence in the company's fundamentals from the channel side and also helps strengthen the interest connection between the enterprise and dealers. In the short term, the increase plan is expected to stabilize market expectations and boost investor confidence; in the medium to long term, the company's value still depends on the operation of its core air conditioning business, the progress of diversified businesses, and the continuous improvement of corporate governance."
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