(Yicai) June 22 -- Chinese private equity giant Hillhouse Capital has trimmed its stake in Gree Electric Appliance for the first time since becoming the Chinese home appliance maker’s biggest shareholder six years ago, though it disposed of only 38 percent of the shares it had previously intended to sell.

Hillhouse-controlled Zhuhai Mingjun Investment Partnership sold 42.8 million Gree shares, or about 0.8 percent of its outstanding equity, for CNY1.6 billion (USD236.1 million) through a block trade on June 4, Zhuhai-based Gree announced late yesterday.

On Feb. 25, Gree said Zhuhai Mingjun planned to sell up to 111.7 million shares, equivalent to 2 percent of the company's total, during a three-month period beginning 15 trading days after the announcement. The proceeds were earmarked for repaying bank loans. The three months have now ended.

Gree's shares [SHE: 000651] closed 0.7 percent up at CNY36.99 (US5.45) each in Shenzhen today, giving it a market capitalization of CNY207.2 billion (USD30.6 billion). The stock is down 8 percent since the end of last year.

Zhuhai Mingjun, whose shareholders include an investment vehicle controlled by Gree Chairwoman Dong Mingzhu, acquired a 15 percent stake in the firm from state-owned Zhuhai Gree Group for CNY41.7 billion (USD6.1 billion) in January 2020, becoming Gree's largest shareholder.

A series of share buybacks by Gree subsequently reduced its total equity, lifting Zhuhai Mingjun's ownership over time. Even after the latest disposal, the fund still owns about 15.4 percent of the company.

Gree came under financial pressure last year amid weakness in China's air-conditioning market. Net profit and revenue both shrank 10 percent to CNY29 billion and CNY171.1 billion, respectively, from the year before. Earnings have improved this year. First-quarter profit rose 3 percent from a year earlier to CNY6.1 billion, while revenue increased 3.5 percent to CNY43.1 billion.

Editor: Futura Costaglione