The share price of "Home Appliances Mao" Gree Appliances fell back to two years ago.

On Sept. 16, Gree Electric Appliances fell another 2% to a new low for the year to 38.21 yuan per share, with a total market capitalization of 229.9 billion. From a high of 66.79 yuan per share in early December, the share price has fallen as much as 43%, and the market capitalization has shrunk by 170 billion.

In this context, many investors recently exposed that financing to buy Gree Electric Appliances encountered a bust.

The netizen said: "I guarantee that the proportion is less than 130%, and additional collateral must be added to keep the guarantee ratio at least 140%." But now, I am penniless, I called the brokerage to plead, it is still not possible, only passively sold more than 10,000 shares, and then if Gree Electric Appliances continues to plummet, I will continue to be levelled until the debt is insolvent. "

Another investor also said that he was forced to sell tens of thousands of shares of Gree Electric Appliances to meet the credit account guarantee ratio required by securities companies.

Industry insiders said that the financing ratio of general securities companies is 1:1. If he has 1 million yuan in cash in his account, he can raise 1 million yuan. Excluding interest and other related expenses, when customers bought 2 million yuan worth of shares in full financing positions, the stocks lost money in their accounts. when the share prices fell 35 percent, the market capitalization of the shares was 1.3 million, equivalent to 130 percent of the 1 million raised funds. This is the case.

In fact, big white horses such as Gree Electric Appliances are not 100% safe, and it is hard to avoid falling fate in this year's structural market. Investors need to be careful with leverage and awe of the market.

This year, all kinds of "grass" have experienced a sharp pullback. This year, the "Youmao" golden arowana, "medicinal grass" Hengrui medicine, and "soy sauce grass" Haitian flavor industry have all dropped by about 50%, all of which are halved.

Even Gree's star shareholder, Hillhouse Capital, is currently at a floating loss and in a "trapped" state. Hillhouse Capital bought shares at a price of 46.17 yuan per share in 2019, or about 41.66 billion of the total price transferred to take a 15% stake in Gree Electric Appliances. Now Hillhouse Capital has changed from floating profit to floating loss.

Not only are investors losing money, but Gree itself is caught in the "buyback" trap. Gree has bought back its own shares many times this year, but it is difficult to stop the share price from falling. The latest buyback cost nearly 15 billion yuan. At present, the cumulative repurchase amount of Gree Electric Appliances has reached 26.589 billion yuan, the highest scale in A-share history.

According to Gree's semi-annual report, the company achieved revenue of 91.05 billion yuan and net profit of 8.79 billion yuan in the first half of the year, up 31% and 46.6% respectively compared with the same period in 2019 and down 6.4% and 34.4% respectively compared with the same period in 2019.

At the same time, Gree's diversification strategy did not work. In the second quarter of this year, the air conditioning business contributed 73.80% of the revenue, while other businesses, including small household appliances and smart equipment, accounted for less than 30% of the total revenue.

Some analysts believe that the company's gross profit margin is under pressure due to the rise in the price of raw materials and the appreciation of the RMB. Since the second half of last year, the prices of commodities such as copper, steel and plastics have soared, which has become a major driver of air-conditioning price adjustment, and the rise in raw materials has affected the performance of air-conditioning products. Gree's semi-annual report showed that the company's air-conditioning gross profit margin fell 2.3 percentage points to 29.8% in the first half of the year compared with the

Some people in the industry believe that, on the one hand, Gree Electric Appliances is now facing the ceiling of the growth of the air-conditioning industry, on the other hand, it is also facing fierce competition from Midea, Haier Smart Home and other household appliance leaders, and the original advantage index is lost.

Some organizations have also lowered their profit forecasts for Gree Electric Appliances.

Shen Wanhongyuan Securities believes that in view of the lower-than-expected sales of air conditioners in this year's peak season, the company is expected to return to its parent net profit of 252289 / 31.9 billion in 2021-2023 (the original value is 265max 305 / 33.6 billion), a year-on-year increase of 14%, 15% and 10%, respectively, corresponding to a valuation of only 11X/10X/9X for 21-23 years.