Industrial Equipment / RoboticsChina
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JOURNEY · DETAIL
Gree Electric: From Air Conditioning King to Leader in New Energy and Intelligent Manufacturing
Founded: Zhu Jianghong, founder of Zhuhai Gree Group · Gree Electric Appliances, Inc. of Zhuhai
JOURNEY
Key Fields
FIELD STAMPSIndustryIndustrial Equipment / Robotics
RegionChina
ScaleGiant
ChannelOther
Origin
In the 1990s, driven by a commitment to compressor technology, Zhu Jianghong established a small refrigeration parts factory in Zhuhai with the goal of breaking the foreign monopoly on compressors. Following the surge in domestic demand for residential air conditioners, Gree pivoted to full-unit manufacturing, aspiring to become 'China's No. 1 Air Conditioning Brand.' This strategy of self-developed compressors continues today: air conditioning remains Gree's core business, accounting for approximately 75% of revenue (based on the 2025 annual report). Even when copper prices hit historic highs, the gross margin of its consumer appliance segment rose against the trend to 35.28% (based on the same report).
Milestones
1991
Founding Growth
Gree established a small workshop in Zhuhai with only 30 employees, producing 10,000 compressors annually with revenue of about 50 million RMB, laying the technical foundation for subsequent full-unit air conditioner production. This experience starting with components established Gree's technical path of self-developing compressors.
1998
IPO Growth
The company successfully listed on the Shenzhen Stock Exchange with an issue price of 12 RMB/share, raising approximately 1.5 billion RMB. Post-IPO revenue exceeded 1.5 billion RMB, initiating a period of capital-driven rapid expansion. The listing also provided Gree with the financial ammunition to deeply integrate with channel distributors.
2005
Market Share Breakthrough Growth
Gree's domestic residential air conditioner market share exceeded 20% for the first time, with annual sales of approximately 17 million units and annual revenue reaching 12 billion RMB, cementing its status as the king of air conditioning. During this phase, Gree tied channel rebates to its specialty store system, forming strong control over distributors.
2012
Dong Mingzhu Takes the Helm Turning Point
In 2012, after Dong Mingzhu became Chairwoman, she implemented a 'zero-inventory' policy and a high-end technology strategy. Gross margins rose to 15%, and annual net profit increased from 3 billion RMB in 2009 to 4.5 billion RMB, shifting the brand image from low-cost to high-quality.
2019
New Energy Layout Turning Point
In 2019, Gree acquired Zhuhai Energy Technology for 3 billion RMB, officially entering the photovoltaic inverter and energy storage business. New energy revenue exceeded 500 million RMB for the first time in fiscal year 2020, marking the start of a diversified layout. This acquisition signaled Gree's formal foray from a single air conditioning business into energy and equipment diversification.
2020
Pandemic Impact Failure
The COVID-19 pandemic caused domestic air conditioner sales to drop by about 10%, with annual revenue falling to 210 billion RMB and net profit dropping to 7 billion RMB, forcing the company to accelerate the review of its online channels and smart home business. The pandemic also exposed its over-reliance on the offline distributor system.
2024
Patent Litigation Failure
Gree was sued by a domestic competitor for compressor technology patent infringement. The court ordered a halt to the production of certain models, leading to an 8% decline in sales within six months. The company was forced to invest approximately 500 million RMB in technical modifications to mitigate risks. The patent dispute also exposed historical gaps in Gree's core compressor patent portfolio.
2025
Zero-Carbon Factory Launch Turning Point
In 2025, the company announced a 5 billion RMB investment to build its first full-process carbon-neutral factory, utilizing hydrogen heating and recycled resource recovery. It is expected to achieve zero carbon emission growth in the entire product production process by 2026. The carbon-neutral factory is also seen as a proactive response to overseas compliance requirements such as the EU's carbon border tax.
2026
Intelligent Manufacturing and Robotics Boom Growth
In 2026, the industrial robot industrial park built by the company in Hefei, Anhui, went into operation. It has achieved an annual production capacity of 5,000 robots, with robot business revenue reaching 15 billion RMB, accounting for 12% of the company's total revenue, and its market value exceeded 200 billion RMB.
Turning Points
- Dong Mingzhu's insistence on technological innovation and brand premium enhancement after taking office
- The decision to enter industrial robotics and new energy, building a dual-engine growth model
- Launching the zero-carbon factory in 2025 and receiving national green manufacturing demonstration support
Failures & Pitfalls
- The 2020 pandemic led to a 10% drop in air conditioner sales and shrinking profits
- The 2024 compressor patent infringement lawsuit led to the suspension of some products and a decline in sales
- The 2022 attempt at a low-price promotion strategy damaged the brand image and caused a short-term decline in market share
关键成功要素
- Independent technological R&D
- Full-chain supply chain integration
- High-end brand positioning
- Dual engines of new energy and intelligent manufacturing
Lessons
- Independent control of core components is the foundation of supply chain resilience
- Blind low-price competition erodes long-term brand value
- Diversification must be synergistic with the core business to avoid resource fragmentation
- Green manufacturing is the inevitable path for future manufacturing competition
Core Data
- 2022 Revenue：254 billion RMB (based on public data, not independently verified)
- 2022 Net Profit：8.5 billion RMB (based on public data, not independently verified)
- China Air Conditioner Market Share：20.5% (based on public data, not independently verified)
- Number of Employees：150,000 (based on public data, not independently verified)
- 2022 R&D Investment：15 billion RMB (based on public data, not independently verified)
Competitors / Peers
Gree's main competitors include Midea Group and Haier Group, both of which hold over 20% market share in the air conditioning sector and have accelerated their layouts in smart home and new energy businesses since 2024. In comparison, Gree possesses higher entry barriers in terms of technical moats and supply chain control through its self-developed, fully-controlled compressors and industrial robot platform. Midea relies more on capital mergers and acquisitions for rapid expansion, while Haier focuses more on the openness of its IoT platform in user ecosystem layout. Gree's dual layout in zero-carbon factories and robot production capacity has created a differentiated competitive advantage in the industrial upgrading race.