More than three months have passed since Gree Titanium New Energy Co.'s 100% equity stake in Zhuhai Guangtong Automobile Co. was frozen by the court, and so far, Gree Titanium has not taken any new action. The background of this incident is worth examining.
The freeze originated from a violation by Wei Yincang, the former actual controller of Gree Titanium, who misused the company seal in December 2015 to improperly endorse a supplementary capital increase agreement with Sunshine Life Insurance Co., constituting illegal guarantees. Since Gree Electric Appliances, Inc. of Zhuhai (Gree) became the controlling shareholder in 2021, Gree Titanium has repeatedly been embroiled in equity-related disputes.
Business registration records show that Gree Titanium’s 1.806 billion yuan equity stake in Zhuhai Guangtong Automobile Co. has been frozen, effective from June 4, 2025, to June 3, 2028. According to Tianyancha, Gree Titanium has been involved in 28 equity freeze cases.
Beyond equity issues, Gree Titanium’s financial performance has also drawn attention. Financial data reveals net losses of 417 million yuan in 2021 and 1.91 billion yuan in 2022. By June 30, 2024, its total liabilities had surged to 24.786 billion yuan, with a net loss of 1.905 billion yuan.
The acquisition of Gree Titanium was spearheaded by Dong Mingzhu, Chairwoman of Gree. Currently, Gree holds a 55.01% stake in Gree Titanium as the largest shareholder, while Dong personally owns 17.46% and indirectly controls another 0.85%, making her the second-largest shareholder.
Addressing the company’s persistent losses, Dong stated, “Gree Titanium is a significant R&D achievement, but we acknowledge its existing challenges. We will address these issues and work to resolve them promptly.”
Gree’s 2025 financial report further disclosed that Gree Titanium has outstanding financial loans to former shareholders and related parties, including Wei Yincang, Sun Guohua, Zhuhai Yinlong Investment Holding Group, and Zhuhai Rongte Technology Co., with amounts ranging from tens of thousands to over 20 million yuan.
Regarding the equity freeze, the company stated it would actively negotiate with the court and initiate legal proceedings to hold responsible parties accountable, emphasizing that the incident would not impact its operations. The future performance of Gree Titanium remains under close watch.
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