The Relationship between Digital Transformation and the Investment Efficiency of Gree Electric Appliances

With the rapid development of the global digital economy, China's traditional manufacturing industry is facing the pressure of accelerated technological iteration and intensified market competition. Gree Electric Appliances (000651), as a leading enterprise in the air conditioning industry, has been affected by China's macroeconomic fluctuations and the impact of emerging enterprises, resulting in a decline in investment efficiency. This research focuses on the relationship between digital transformation and Gree Electric Appliances' investment efficiency. Based on the annual report data of Gree Electric Appliances from 2012 to 2024, through case analysis and empirical analysis, this study reveals how digitalization influences the capital allocation efficiency of Gree Electric Appliances and provides some advice and references for the whole manufacturing industry. This research finds that the digital transformation significantly improves Gree Electric Appliances' investment efficiency, and the degree of digitalization, cash flow level, and financial leverage are positively correlated with the investment efficiency. Profitability has no significant impact on Gree Electric Appliances' investment efficiency. Based on extensive analysis, this research proposes targeted countermeasures, including strengthening support for research and development of intelligent products, deepening the integration of online and offline channels, and strengthening internal management to optimize operational efficiency.