(Yicai Global) Oct. 27 -- Shares of Gree Electric Appliances slumped to a 32-month low after the world’s biggest maker of home air conditioners reported a double-digit decline in third-quarter profit from a year ago.

Gree’s stock price [SHE:000651] closed down 5.7 percent at CNY36.77 (USD5.76) today, giving it a market cap of CNY221.2 billion (USD34.6 billion).

Net profit was CNY6.2 billion (USD1 billion) in the three months ended Sept. 30, down 15.7 percent from a year earlier, according to the earning results the Zhuhai-based firm released yesterday. Revenue fell 16.5 percent to CNY47.1 billion (USD7.4 billion).

The white goods company did not specify the reasons behind the weak performance, but market analysts said it is due to the surging raw material prices that the home appliance industry is facing this year.

In the first nine months of the year, Gree’s revenue rose 9.7 percent to CNY138.1 billion (USD21.6 billion) due to a strong first-half performance. Net profit also rose, gaining 14.2 percent to CNY15.6 billion (USD2.4 billion).

Northbound funds, those that flow to the Chinese mainland from Hong Kong via stock connect programs, sold shares of Gree in the third quarter. Hong Kong Securities Clearing Company also sold 204 million shares, becoming the firm’s second-largest shareholder after its stake fell to 13.65 percent from 17.04 percent at the end of the first half.

Gree’s top shareholder is now Hillhouse Capital Group-backed Zhuhai Mingjun Investment Partnership with 15 percent, which it bought from state-owned Zhuhai Gree Group for CNY41.7 billion in 2019.

Editor: Futura Costaglione