[PConline Culture] Gree Electric recently announced three quarterly reports. According to the report, in the first three quarters of this year, Gree Electric Appliances realized a total operating income of 110.875 billion yuan, a year-on-year increase of 34.51%; and a total of net profit of 15.614 billion yuan, a year-on-year increase of 37.68%.
Gree, which has a market value of 263.2 billion yuan, is already the industry leader, maintaining an objective growth rate in the new year. As the "Idol" of Gree, Chunlan Group also announced its third quarter report recently.
According to the announcement, Chunlan Group’s operating income for the first three quarters was 439,456,811.38 yuan, an increase of 190.38% year-on-year, and net profit attributable to shareholders of listed companies was 53,707,885.85 yuan, an increase of 46.82% year-on-year.
Chunlan's financial report performance in the third quarter of this year looks very impressive. Operating income increased by 190.38% year-on-year, and net profit attributable to shareholders of the superior company increased by 46.82% year-on-year. However, rapid growth was established on the premise that the company’s income was low in the previous year. Obviously, Not convincing.
The former Chunlan was the leader in the field of air conditioning. In the mid to late 1990s, its air conditioner market share was once as high as 40%, and it was also the first Chinese company to export air-conditioners to the UN headquarters. The extreme decline, Chunlan Group fell from the frontline to the second-tier brands, until the risk of delisting, from the infinite scenery to the current status, it is embarrassing endless.
Blockbuster air-conditioning giant In 1985, Tao Jianxing took over the bankruptcy of Jiangsu Taizhou air-conditioning equipment factory - Chunlan Group's predecessor Shuai Yin, the following year to carry out drastic technical reforms, turning losses into profits. In 1989, Jiangsu Chunlan Refrigeration Equipment Co., Ltd. was formally established. After Chunlan Refrigeration was established, it quickly established a domestic first-class full-performance air-conditioning production line and specialized in producing a series of air-conditioning products with the "Chunlan" brand as its registered trademark. Since then, Chunlan Group has ushered in a period of rapid development, and its market share and brand influence have continued to climb.
At that time, there was no foreign investment in the air-conditioning industry, and local companies were also very few. Chunlan had a deep impression on the market with its “excellent product quality.†Specialized and large-scale air-conditioning plants also laid the foundation for its expansion.
By 1994, Chunlan achieved sales of 5.3 billion yuan and net profit of 600 million yuan. On April 25 of the same year, Chunlan shares, jointly invested by Chunlan Refrigeration Equipment, Chunlan Special Air Conditioning, and Chunlan Sales, successfully entered the secondary market with stock code: 600854.SZ. At the time of listing, Chunlan's production, sales volume and domestic market share ranked first in the country. In contrast, in the same year, Gree air-conditioning sales was only 600 million yuan.
At the time, Chunlan had a thundering moment in the air-conditioning industry. Its market share was as high as 40%. It was almost “every two air conditioners sold, it could be one Chunlanâ€, and the market influence was even greater than today’s Gree. A Chunlan air-conditioning distributor once described the situation of the “Chunlan Golden Age†in the media reports: “Chunlan air-conditioning was not sold before 2000. Before and after 1996, people who wanted to sell Chunlan air-conditioning had to be outside the factory. Long queues, then selling a Chunlan air conditioner can earn more than 500 yuan."
In the same year, after winning the air-conditioner's position, Tao Jianxing believed that only diversified roads can make Chunlan go further, and the Chunlan Group’s vigorous strategy of diversification has also been since. Take a step.
The defeat has begun to emerge: In the year of 1994, the capital operation capacity of the Chunlan Group after IPO has been greatly improved. Chunlan, who can not wait to extend his reach to other fields:
In the same year, Chunlan Group spent nearly 2 billion yuan to start a motorcycle project. At the end of the year, the Chunlan Group launched two high-end motorcycles, Chunlanhu and Chunlanbao.
In 1996, it started a joint venture with Korean LG Group to produce refrigerators and extended its product line to the washing machine and dehumidifier industry.
In 1997, it merged with Nanjing Dongfeng Motor Co., Ltd., which was renamed Nanjing Chunlan and entered the medium truck market.
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In the following years, Chunlan Group was also involved in the fields of energy technology, television, IT, financial investment, automobile chassis and compressors, and the ambition to create the “Chunlan Empire†was evident.
For Chunlan, 2002 was a significant year for the company's diversification strategy. Chunlan's medium trucks put into production in 2001 squeezed into the top three in the market in 2002, and developed a high-energy nickel-metal hydride battery project for 8 years. As a result, the electric bicycle was successfully developed at the end of 2002. Once it was launched, it received orders from dealers from all over the country.
In 2002, the biggest news for the home appliance industry was that Tao Jianxing announced: Chunlan is not just a household appliance company. Although Chunlan lost the title of “Air-condition King†in the household appliance industry, in Tao’s opinion, the third and third may be more valuable than the first. The beautiful blueprint behind home appliances, automobiles, and new energy made Chunlan see the dawn of diversity brought to the company.
But is the actual situation of its business as beautiful as it is? For its once-in-a-lifetime auto industry, the profits generated that year were close to 50% of the total profit of Chunlan Group. However, according to the data from the China Association of Automobile Manufacturers, in 2000 Chunlan produced and sold more than 2,800 trucks, ranking fourth in the industry, and less than half of the third-ranked three-ring group, not to mention FAW and Dongfeng ranked first and second respectively. . As a result of the rapid shift in market demand, Chunlan Motor soon lost its advantage in market survival and went from bad to worse. In July 2008, Chunlan Group sold Chunlan Motors to Xugong Technology, which was a dream to make a difference in the automotive field.
The problem of excessive diversification and expansion strategy is also gradually emerging: In 1996, the company was unable to get a “skilled permit†when it wanted to invest billions of millions in a family car project; in 2000, it voluntarily gave up investing 600 million U.S. dollars because of the rapid changes in technology. Liquid crystal display project; In 2008, in the automotive industry, sales of motorcycles shrank sharply, and Jiangsu Chunlan Motorcycle Co., Ltd., which produces motorcycles, had all stopped production.
Chunlan's proud air-conditioning business is inevitably on the decline: Since 1999, sales of Chunlan air conditioners have begun to decline, and their influence has continued to decline. According to monitored air-conditioning sales data, Chunlan air-conditioning sales volume was 750,000 units in 2005, 700,000 units in 2006, and 550,000 units in 2007. Now Chunlan air-conditioning has fallen out of the top 10 in the industry, and its sales volume is less than 1/10 of the industry's boss.
Chunlan did not make up for the diversification business. Its main business air-conditioning also missed the development of the Blue Ocean period.
Looking back at the diversification of Chunlan, Chunlan entered the automobile/motorcycle industry from the initial air conditioning industry. The gap between the two major industries is so great that it is basically impossible to find any relevance in the value chain. , Cross-domain steps have taken so much, is undoubtedly over-confident to their own brand of charm. Experts in the industry point out that a diversified strategy is certainly correct, but industries are best correlated, so that they can complement each other. Industries that are not related to each other cannot form a “joint forceâ€.
It is gratifying that Chunlan Group has entered the energy field more than a decade ago. Its nickel-metal hydride batteries have accounted for 50% of the domestic market share, and have become the main power supplier for the national “Ten Thousand Cities†new energy vehicles. The director of the News Department of Chunlan Group, Yu Shunnian, once repeatedly stated to the media that the current energy market has achieved good results and the profits have been considerable.
Can the growth of the energy industry help Chunlan's air-conditioning business and even re-emerge? We will wait and see.
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