Gree Electric Appliances Inc. of Zhuhai: Recent Developments and Market Context

Gree Electric Appliances Inc. of Zhuhai, a leading Chinese manufacturer of household air‑conditioning equipment, has experienced a series of noteworthy events and market movements in the first week of November 2025. While the company’s share price has slipped below its 52‑week low, recent corporate disclosures and sector‑wide trends paint a nuanced picture of its operational stance and shareholder value initiatives.

Share Price and Valuation Snapshot

  • Closing price (2025‑11‑20): CNY 40.25
  • 52‑week range: CNY 39.20 – 48.47
  • Market capitalization: CNY 223 billion
  • Price‑to‑earnings ratio: 7.06

The stock’s recent dip reflects broader market volatility, with the Shenzhen Composite Index and the broader consumer‑discretionary sector recording declines. Notably, the Gree share fell by 0.42 % on 21 November, in line with the modest decline of the Deep Value ETF and the Selective Consumption ETF, both of which list Gree as a significant holding.

Corporate Actions: Share Buybacks and Capital Management

On 21 November, Gree’s corporate secretary released a Q&A addressing investor concerns about the sustained decline in the share price. Key points include:

  1. Historical buyback activity – Since 2020, Gree has repurchased approximately 617 million shares (≈ 300 billion CNY) and has cancelled 415 million shares (≈ 6.89 % of the pre‑cancelled share‑capital).
  2. Future plans – The company stated that it will evaluate additional buyback or cancellation measures “in combination with market conditions, operating performance, and cash‑flow planning,” and that any such plans will be disclosed in accordance with regulatory requirements.
  3. Investor confidence – The response emphasized that Gree prioritises shareholder value through a mix of dividends, buybacks, and share cancellations, and that management remains committed to improving operating efficiency and profitability.

These statements come against a backdrop of a market where shareholders have been actively seeking reassurance that the company is not merely reacting to price pressure but is instead pursuing a sustainable, value‑enhancing strategy.

Industry‑Wide Context

The recent industry report from Guolian Minsheng Securities on 20 November highlighted that domestic demand for air‑conditioners in China is largely stabilised, with a modest year‑on‑year decline in October. In contrast, exports have shown resilience, registering a 12 % compound annual growth rate over the past two years and a projected 47 % increase in November‑December sales.

For Gree specifically, the same report noted that the company’s sales in October were down by 7.69 % compared with the previous year, mirroring the overall industry trend of domestic demand softening. However, the report also pointed to the company’s robust export performance, suggesting that international markets continue to provide a stabilising force for its revenue streams.

Broader Market Dynamics

  • ETF performance:
  • The Deep Value ETF (159913) opened lower by 0.38 %, with Gree declining by 0.42 %.
  • The Selective Consumption ETF (562580) remained flat at open, but Gree still fell by 0.42 %.
  • Peer comparisons:
  • The Midea Group recently announced a mid‑term dividend of 5 CNY per 10 shares (≈ 38 billion CNY in total), signalling a commitment to returning cash to shareholders.
  • Other household durables such as Haier and Hisense also faced downward pressure, reflecting a sector‑wide challenge rather than a company‑specific issue.

Conclusion

Gree Electric Appliances Inc. of Zhuhai’s recent share price decline appears to be a function of macro‑economic headwinds and sector‑wide softness in domestic air‑conditioner demand, rather than a sign of fundamental deterioration. The company’s active buyback history and willingness to consider further capital‑return measures suggest that it remains focused on protecting and enhancing shareholder value. Meanwhile, the resilience of its export business and the broader consumer‑discretionary ETF performance indicate potential upside as the market normalises.