Gree Electric's former major shareholder may invest 3.5 billion in Xiaomi

     Information Times (Reporter Yuan Chan) After Gree Group transferred 15% of its equity to Hillhouse Capital and cashed out more than 40 billion yuan, it invested 3.545 billion yuan in Xiaomi. According to the news released by Gree Group’s WeChat official account, Gree Group recently signed a strategic cooperation agreement with Xiaomi Group and CITIC Bank. The three parties agreed to carry out in-depth cooperation in industrial funds, financial services, industrial investment, project cooperation, resource sharing and other aspects.

　　It is understood that on December 2, 2019, Gree Group and Zhuhai Mingjun Investment Partnership (Limited Partnership) signed a share transfer agreement. On the evening of December 2, it was agreed that Zhuhai Mingjun would acquire 902,359,632 shares of Gree Electric Appliances held by Gree Group (accounting for 15% of Gree Electric Appliances' total share capital) at a price of 46.17 yuan per share. The total transfer price was 41.661 billion yuan.

　　After the transfer of Gree Electric Appliances, Gree Group turned around and embraced Xiaomi. According to the agreement, Gree Group invested 3.545 billion yuan to participate in the investment and management of the Xiaomi Industrial Fund initiated by Xiaomi Group, and made in-depth layout around the Xiaomi ecological chain and high-quality suppliers in the fields of integrated circuits, artificial intelligence, industrial Internet, core equipment, cutting-edge technology, etc., and made in-depth docking and introduction of Xiaomi ecological chain enterprises with the help of Xiaomi Group's rich accumulation in the industrial field and Gree Group's capital and platform advantages as a state-owned capital investment and operation platform, and introduced high-quality industrial projects that meet Zhuhai's development strategy into Zhuhai through industrial investment, helping Zhuhai to accelerate the creation of an intelligent manufacturing industry cluster and bring new momentum to Zhuhai's economic and social development.

　　Home appliance industry observers said that compared with Gree Electric Appliances, Xiaomi has a more comprehensive and wider range of smart home ecosystems, and has formed an industrial closed loop with a broader space; Gree Group can fill in more industrial tracks with the help of Xiaomi's rich accumulation in the industrial field, and at the same time, it can also introduce high-quality industrial projects that are in line with Zhuhai's development strategy into Zhuhai through industrial investment.