Gree Electric 2025Q3 Results Decline on Both Fronts: Market Pessimism Coexists with Value Dividend Opportunities

Reddit users reacted strongly to Gree Electric’s dual decline in 2025Q3 results, criticizing management’s strategic mistakes and calling its valuation a ‘liquidation price’ (close to bank valuation levels) [ref5]. Users generally worry about three major issues: first, the downturn in the real estate industry has led to a contraction in new air conditioner demand and intensified price wars in the stock market; second, the diversification strategy is lagging—air conditioning business contributes over 90% of profits but has not formed a second growth curve; third, uncertainty about Dong Mingzhu’s succession, as her personal IP is too closely tied to the company, bringing governance risks [ref5]. Some users acknowledge the value of high dividends and ample cash flow but lack confidence in short-term stock price increases [ref5].

• Financial Performance
  : 2025Q3 revenue decreased by 15.09% YoY, net profit decreased by 9.92% YoY; 2025 Jan-Sept revenue was 137.654 billion yuan (-6.62% YoY), net profit was 21.461 billion yuan (-2.27% YoY) [ref1].
• Business Structure
  : Air conditioning business accounts for 78% of revenue, significantly affected by real estate downturn pressure; diversified businesses (new energy equipment, intelligent equipment, etc.) contribute limitedly and have not yet formed a second growth curve [ref2].
• Governance and R&D
  : Dong Mingzhu still serves as chairman; the board of directors was re-elected in April 2025, but specific succession arrangements are not yet clear [ref4]; the R&D team has grown from hundreds to 20,000 people, adhering to independent innovation [ref6].
• Shareholder Returns
  : Dividend yield remains at 6-7%, cash flow is ample (monetary funds far exceed interest-bearing liabilities), providing stable returns to shareholders [ref1].

• Alignment Points
  : Both Reddit discussions and research reports point to three core issues: real estate downturn, delayed diversification, and management succession risks; both recognize the safety margin brought by high dividends and ample cash flow [ref1,5].
• Impact
  : Short-term market sentiment is negative; Gree’s stock has a negative return of 11% so far this year, and the capital market votes with its feet [ref3,5]; long-term value depends on the successful establishment of a second growth curve, such as breakthroughs in diversified businesses like new energy equipment [ref2].

• Risks
  : Sustained downturn in the real estate industry may further intensify air conditioner demand contraction; slow progress of diversification strategy; uncertainty about management succession brings governance risks [ref1,2,4].
• Opportunities
  : Historical low valuation provides a safety margin; a high dividend yield of 6-7% is suitable for value dividend investors; the 20,000-person R&D team lays the foundation for technological innovation and business expansion [ref1,6].

The current investment logic for Gree Electric is shifting from growth to value dividend income. In the short term, focus on stable returns from high dividends; in the long term, track the progress of the second growth curve [ref1,2].