Gree interested in investing in Meizu?
Fans of mobile phone brand Meizu were recently allowed a rare glimpse of J. Wong, the reclusive founder of the brand of sleek Android-powered smartphones based in Zhuhai, Guangdong province. In a two-hour speech posted online, Wong announced that he was going to resume his daily work routine at his company office, which he had stopped visiting following his semi-retirement in 2011.
Wong also talked about an incentive program, which aims to transform employees into shareholders as well as bring external strategic shareholders to raise one billion yuan in capital. Gree, China’s leading home appliance brand, was mentioned as one potentially interested investor. Wong also commented positively on Lenovo’s recent deal to buy Motorola, which he believes will help the company gain headway in overseas markets.
Meizu, a pioneer in the Mainland Chinese smartphone market, has been surpassed in terms of sales by its competitors in recent years. Xiaomi, for example, outsold Meizu by a factor of three in 2013. While some industry commentators believe that Wong’s return is an effort to save the company from crisis, others suggest that the prospective cooperation between Gree and Meizu, if it occurs, will help Gree, a traditional industry manufacturer, to establish its Internet pedigree and tap into the smart appliances market.
Companies and brands affected
Gree Electric Appliances Inc. of Zhuhai (SHE:000651)