Why do you think Gree Group invested 3.5 billion in Xiaomi?

? Why do you think Gree Group invested 3.5 billion in Xiaomi?

On September 3, Gree Group signed a strategic cooperation agreement with Xiaomi Group and China CITIC Bank. The three parties agreed to carry out in-depth cooperation in industrial funds, financial services, industrial investment, project cooperation and resource enjoyment.

a

Gree Group is an international household appliance enterprise integrating R&D, production, sales and service, mainly engaged in household air conditioners, central air conditioners, air energy water heaters and mobile phones. Xiaomi Group is a global mobile internet enterprise focusing on the research and development of intelligent hardware and electronic products, and also an innovative technology enterprise focusing on the construction of high-end smart phones, Internet TV and smart home ecological chain.

Gree Group invested 3.545 billion yuan to participate in the investment and management of Xiaomi Industrial Fund initiated by Xiaomi Group, and made in-depth layout around high-quality suppliers in the fields of Xiaomi ecological chain and integrated circuits, artificial intelligence, industrial Internet, core equipment and cutting-edge technologies. With the rich accumulation of Xiaomi Group in the industrial field and the capital and platform advantages of Gree Group as a state-owned capital investment and operation platform, we will deeply connect and introduce Xiaomi ecological chain enterprises. And through industrial investment, we will introduce high-quality industrial projects in line with Zhuhai's development strategy into Zhuhai, help Zhuhai accelerate the construction of intelligent manufacturing industrial clusters, and bring new kinetic energy to Zhuhai's economic and social development.

b

It is reported that Gree Group invested heavily in Xiaomi this time, not Gree Electric at the helm of Dong Mingzhu. Gree Group, which originally controlled Gree Electric, lost its absolute control over Gree Electric as early as a previous capital operation. So, actually, at least on the surface, Gree Group and Gree Electric are not as close as before. Therefore, it is speculated that this Gree is different from other Gree, which will actually increase the competitive pressure in Gree Electric.

However, this may not be the case. It is reported that Gree Group invested heavily in Xiaomi this time, not Gree Electric at the helm of Dong Mingzhu. Gree Group, which originally controlled Gree Electric, lost its absolute control over Gree Electric as early as a previous capital operation. So, actually, at least on the surface, Gree Group and Gree Electric are not as close as before. Therefore, it is speculated that this Gree is different from other Gree, which will actually increase the competitive pressure in Gree Electric.

In the home appliance industry, Gree Group abandoned "electrical appliances" as "millet", which reflected its value judgment on two different enterprise models. Judging from the current situation, it seems to be a "wise move" for Gree Group to transfer cash at a high level at the end of last year. Observers in the home appliance industry said that compared with Gree Electric, Xiaomi has a more comprehensive and broader smart home ecological chain, and has formed a closed-loop industry with a broader space.

c

Because Xiaomi is also making household appliances such as air conditioners, this will naturally help Xiaomi and Gree compete in air conditioners and face more fierce competition. And obviously Xiaomi, who is an air conditioner, is more adept than Gree, who is a mobile phone. Therefore, if this is the case, it is tantamount to adding insult to injury to Gree, who already has this big "foreign invasion" of beauty.