“No.2 person” of Gree Electric resigns

On the afternoon of February 21, Gree Electric (000651, SZ) announced by announcement that the board of directors of the company received a written resignation report from Huang Hui, the director and CEO of Gree Electric, on February 19. Huang Hui applied to resign from the position of director and CEO of Gree Electric for personal reasons. After resigning, Huang Hui will no longer hold any position in the company.

"No.2 person" of Gree Electric resigns

So far, Huang Hui holds 7.38 million shares of Gree Electric, accounting for 0.12% of the company’s total share capital. According to the closing price of Gree Electric on February 19 (61.03 yuan / share), Huang Hui’s stock market value is about 450 million yuan.


“Daily economic news” reporter noted that before, Huang Hui has been regarded as the “successor” of Dong Mingzhu, chairman and President of Gree Electric.


Liu buchen, an analyst in the home appliance industry, said in an interview that Huang Hui was mainly responsible for R & D and technical work in Gree Electric, and was also one of the objects promoted by Dong Mingzhu in the past. This resignation is expected to “expand the concerns of investors and the public about the future development of Gree Electric.” Zhang Yanbin, an industry observer, believes that the impact of Huang Hui’s resignation on Gree Electric “will be more or less, but not too great.”


CEO Huang Hui resigns


The reporter learned that Huang Hui is 58 years old. According to the announcement of Gree Electric, Huang Hui joined Gree Electric in 1992, only two years later than Dong Mingzhu. Up to now, he has worked in Gree for 29 years and is a real “senior figure” of Gree.


From 2000 to 2014, Huang Hui served as the vice president of Gree Electric; from 2014 to 2017, he served as the executive vice president of the company; in August 2017, nominated by Dong Mingzhu, the board of directors of Gree Electric agreed to set up the position of executive president and appointed Huang Hui as the Executive president of the company. It is worth noting that it was the first time that Gree Electric set up the post of CEO in the company; from 2007 to 2017, Huang Hui was also the chief engineer of Gree Electric; since 2012, Huang Hui has been the director of the company.


Photo by reporter Chen Pengli


For Huang Hui’s resignation reasons, Gree Electric only expressed in the announcement as “personal reasons”. The reporter noted that since last year, Gree Electric has changed its core executives twice.


On August 17 last year, Wang Jingdong, director, vice president and Secretary of the board of directors of Gree Electric, resigned from all his positions in Gree Electric for personal reasons. However, in November, an administrative punishment decision of Guangdong Securities Regulatory Bureau showed that Yu Yun was punished for insider trading of Haili shares, and Wang Jingdong, then Secretary of Gree Electric, was also involved.


Liu buchen told the daily economic news that in his opinion, Huang Hui’s resignation is unexpected. Huang Hui’s position and status in Gree Electric are higher than Wang Jingdong’s, “I feel that Huang Hui’s resignation has a greater impact on Gree.”


He said that at present, Gree Electric is at a time when it needs internal concerted efforts to tide over the difficulties. At this time, the person in charge of the core position resigns, “it is worth Gree Electric’s reflection.” He predicted that after the news of Huang Hui’s resignation was issued, investors and the public would be more worried about the future development of Gree Electric.


Zhang Yanbin also told reporters that Huang Hui’s resignation surprised the industry. In the past, Huang Hui has been regarded as the “No.2 person” of Gree Electric and the successor of Dong Mingzhu, “whether it is or not, at least there is such a saying.” Moreover, Huang Hui is a technical background, Gree Electric is a combination of technology and Dong Mingzhu’s marketing ability, dominating the air conditioning industry. However, on the whole, Huang Hui’s resignation will not have a great impact on Gree Electric. “As long as Dong Mingzhu, the helmsman, has not changed, Gree’s strategy and style will not change. Gree is already a mature enterprise, and two new Vice Presidents joined in December last year, which may also bring new ideas to Gree Electric. ”


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The reporter learned that Huang Hui has been regarded by the outside world as Dong Mingzhu’s “most likely” successor.


At the provisional general meeting of shareholders of Gree Electric in January 2019, when asked by the shareholders about when to retire and whether there is a successor, Dong Mingzhu looked at Wang Jingdong and Huang Hui sitting next to him and replied, “my inner thought is that I want to retire now.” as for the successor question, she said, “I actually have an assessment in my heart. Who is the future of Gree Electric “I’m in charge of the exhibition.”


Now, Huang Hui’s resignation also means that Dong Mingzhu’s “successor” is one less. However, Zhang Yanbin stressed to reporters that it is too early to say that “Dong Mingzhu has no successor”. Maybe Gree has other internal arrangements and preparations.


The reporter learned that at present, the board members of Gree Electric are still the “team” in the general election in January 2019, namely: Dong Mingzhu, Zhang Wei, Zhang Jundu and Guo shuzhan, as well as Liu Shuwei, Xing Ziwen and Wang Xiaohua.


The specific reasons for Huang Hui’s resignation are unknown to the outside world. The reporter also noted that after Wang Jingdong left, in December last year, Gree Electric announced the appointment of Deng Xiaobo as vice president and Secretary of the board of directors of the company, and Shu Lizhi as vice president of the company. Up to now, the largest shareholder, Hillhead capital, has not sent directors to the board of directors of Gree Electric.


From the fundamental point of view of Gree Electric, from January to September last year, the company realized an operating revenue of 125.89 billion yuan, a year-on-year decrease of 18.8%; and realized a net profit of 13.7 billion yuan, a year-on-year decrease of 38.06%. Last year, Dong Mingzhu has been vigorously promoting the reform of channels. Throughout the year, he personally launched 13 live broadcast activities, bringing a total of 47.6 billion yuan of goods.