Gree Electric's largest shareholder, Zhuhai Mingjun, plans to reduce their holdings by no more than 2% of the company's shares

Gree Electric Appliances (000651) announced on the evening of February 25th that it recently received a “Notice of Share Reduction Plan from the Shareholder” from its largest shareholder, Zhuhai Mingjun Investment Partnership (Limited Partnership) (hereinafter referred to as “Zhuhai Mingjun”). Zhuhai Mingjun plans to reduce its holdings by no more than 112 million shares (no more than 2% of the company’s total share capital excluding shares held in the repurchase account) through block trades within three months after 15 trading days from the announcement. The proceeds from the sale will be used to repay bank loans.

The announcement shows that Zhuhai Mingjun holds approximately 902 million shares, accounting for 16.11% of the company’s total share capital. The shares were acquired through an agreement transfer from Gree Group on January 23, 2020.

Gree Electric Appliances stated that there are uncertainties and risks associated with the implementation of this reduction plan. Zhuhai Mingjun may decide whether to proceed based on market conditions, the company’s stock price, and other factors. Some of the shares to be reduced are pledged and registered as collateral, and Zhuhai Mingjun needs to解除质押 (release pledge) on some shares before the reduction.

Market data shows that on February 25th, Gree Electric Appliances closed up 0.16%, at 38.49 yuan per share, with a total market value of 215.6 billion yuan.