Core Viewpoint - Aokai Electric (HK2580) reported a total revenue of 20.085 billion RMB for the first half of 2025, marking a year-on-year increase of 16.7%, with net profit attributable to shareholders reaching 1.873 billion RMB, up 5.1% year-on-year [1][2] Revenue Breakdown - The majority of Aokai's revenue comes from air conditioning, with home air conditioning contributing 17.915 billion RMB, accounting for 89.2% of total revenue, which is a 17.3% increase from the previous year [1][3] - Among home air conditioning sales, wall-mounted units generated 15.386 billion RMB, representing 76.6% of the segment, while cabinet units and mobile air conditioners contributed 2.338 billion RMB and 0.190 billion RMB, respectively [3] - Central air conditioning accounted for 1.922 billion RMB, or 9.6% of total revenue, with a year-on-year growth of 15.0% [3] Brand Performance - Aokai's main brand generated 9.956 billion RMB, making up 49.6% of total revenue, with a year-on-year increase of 15.2% [5] - The sub-brands Huasuan and AUFIT generated 0.503 billion RMB and 0.516 billion RMB, respectively, together accounting for only 5.1% of total revenue, with Huasuan experiencing a significant decline of 39.5% year-on-year [5][4] ODM Business Growth - Aokai's ODM (Original Design Manufacturer) revenue reached 8.861 billion RMB, representing 44.1% of total revenue and an 18.8% increase year-on-year, becoming a key growth driver for the company [4][5] - The overseas market revenue from ODM grew significantly, with Asia (excluding China), Europe, and South America showing increases of 34.5%, 27.8%, and 55.7%, respectively [5][6] Market Dynamics - The Chinese market remains the largest contributor, generating 9.246 billion RMB, accounting for 46.0% of total revenue, although this is a decrease of nearly 5 percentage points year-on-year [6][7] - The overall air conditioning market in China saw a double-digit growth in sales volume and revenue, contrasting with Aokai's slower growth in the domestic market [6] Financial Metrics - Aokai's gross margin for the first half of 2025 was 19.5%, down from 21.1% in the same period of 2024, attributed to a strategic optimization of order mix and increased sales through ODM [7][8] - The company's R&D expenditure remains low, at only 1.6% of total revenue, compared to sales and administrative expenses which are higher [8] Stock Performance - Aokai was listed on the Hong Kong Stock Exchange on September 2, 2023, with a net amount raised of 3.9935 billion HKD, but the stock price has declined approximately 15% since its debut [8][9]

Market Performance - In the first half of 2025, the retail volume of household air conditioners in China increased by 15.6% year-on-year to 38.45 million units, while retail sales rose by 12.4% to RMB 126.3 billion[16]. - The central air conditioning market faced significant challenges, with an overall market capacity decrease of 15.9% year-on-year in the first half of 2025[17]. - The export volume of air conditioners from China reached 41.1 million units in the first half of 2025, an increase of 6.8% compared to the same period last year[18]. - The demand for air conditioning products in Europe surged due to unprecedented heat waves, with temperatures exceeding 40 degrees Celsius in several regions[18]. - Revenue from household air conditioners reached RMB 17,914.6 million, a 17.3% increase from RMB 15,266.7 million in the previous year[45]. - Central air conditioning sales increased by 15.0% to RMB 1,921.7 million from RMB 1,670.8 million in the previous year[45]. - Revenue from the Asian market (excluding China) grew by 34.5% to RMB 6,063.8 million, contributing significantly to overall revenue growth[49]. - Revenue from the Asia region (excluding mainland China) increased by 34.4% to RMB 6,063,792 from RMB 4,510,039 in the previous year[122]. Financial Performance - Total revenue for the first half of 2025 reached RMB 20 billion, representing a year-on-year growth of 16.7%[19]. - In the first half of 2025, the company recorded sales revenue of RMB 20,085.1 million, an increase of 16.7% compared to the same period in 2024[31]. - Profit attributable to shareholders was approximately RMB 1,872.7 million, up 5.1% from RMB 1,782.0 million in the first half of 2024[42]. - The net profit attributable to shareholders for the first half of 2025 reached RMB 1,872.7 million, an increase of 5.1% compared to the same period in 2024[33]. - Gross profit for the same period was RMB 3,922,880 thousand, up from RMB 3,626,397 thousand, indicating a gross margin improvement[104]. - Profit before tax increased by 7.3% to RMB 2,365,315 thousand compared to RMB 2,203,830 thousand in the previous year[104]. - The total comprehensive income for the six months ended June 30, 2025, was RMB 1,892,939,000, compared to RMB 1,781,979,000 for the same period in 2024, reflecting an increase of approximately 6.2%[112]. Research and Development - The company is focusing on product development in four key areas: energy efficiency, comfort, health, and intelligence[13]. - The company participated in the formulation or revision of 17 technical standards in the first half of 2025, including 8 national standards[20]. - The global patent application volume exceeded 18,000, with over 2,900 granted invention patents as of June 2025[20]. - The company’s investment in research and development costs was RMB 312,115, up from RMB 279,471 in the previous year, reflecting a commitment to innovation[127]. Strategic Initiatives - The company plans to enhance market penetration through a multi-brand strategy, including the introduction of a high-end brand to reach a broader consumer base[12]. - The company aims to strengthen its market share and brand influence by leveraging a wide sales network and high cost-performance products[12]. - The company plans to optimize its brand and product matrix by implementing a multi-brand strategy to cater to diverse consumer needs globally[35]. - The company will continue to expand its global sales network and establish partnerships with multinational companies to enhance brand recognition internationally[39]. - The company plans to leverage the "AUX" brand to enhance its market presence and diversify its product offerings[40]. Operational Efficiency - The company's gross profit margin for the first half of 2025 was 19.5%, down from 21.1% in the same period of 2024, primarily due to a strategic optimization of the order mix[31]. - Administrative expenses increased by RMB 37.9 million or 7.5% in the first half of 2025 compared to the same period in 2024, mainly due to the expansion of logistics offices[32]. - R&D expenses rose by RMB 32.6 million or 11.7% in the first half of 2025 compared to the same period in 2024, attributed to the expansion of the R&D team[32]. - The company recognizes ongoing challenges in the market environment and will focus on improving operational efficiency and product quality standards in the second half of 2025[38]. Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal control procedures[89]. - The company has complied with all applicable corporate governance codes since its listing on September 2, 2025[87]. - The independent review report by Ernst & Young confirms that no issues were found that would lead to a belief that the interim financial data was not prepared in accordance with Hong Kong Accounting Standard 34[101]. Shareholder Information - Mr. Zheng Jianjiang holds a controlled interest in the company with 1,300,921,250 shares, representing approximately 81.91% of the total shares[97]. - The company has a total of 1,300,921,250 shares held by major shareholders, indicating a strong ownership concentration[97]. - The company did not recommend any interim dividend for the six months ended June 30, 2025, consistent with the previous period[85]. Cash Flow and Assets - Net cash flow from operating activities for the first half of 2025 was RMB 1,482.3 million, compared to RMB 2,295.3 million in the same period of 2024[60]. - Cash and cash equivalents increased from RMB 2,907.8 million at the beginning of the year to RMB 3,101.2 million at the end of June 30, 2025, reflecting a net increase of RMB 158.1 million[60]. - Current assets increased from RMB 15,783.3 million as of December 31, 2024, to RMB 20,310.5 million as of June 30, 2025, mainly due to an increase in trade receivables and notes receivable of RMB 3,178.8 million[58]. - The company’s total liabilities as of June 30, 2025, were approximately RMB 752,000,000, indicating a manageable level of debt relative to its financial resources[120].

Summary of the Conference Call for Aux Group Company Overview - **Company**: Aux Group - **Industry**: Air Conditioning and Home Appliances Key Points and Arguments 1. **Financial Performance**: Aux reported a revenue growth of 15% and a profit growth of 8%, with a valuation of 6.6 times earnings, which is lower than Hisense's 7.7 times valuation, indicating significant investment value [2][3] 2. **Dividend Commitment**: The company has committed to a dividend payout ratio of no less than 70% from 2025 to 2027, with an expected dividend yield of 10.6% in 2025, surpassing Hisense's 7% [2][3] 3. **Net Profit Margin**: Aux achieved a net profit margin close to 10%, attributed to its domestic sales model reducing channel markups and high-profit contributions from overseas OEM (Original Equipment Manufacturer) business [2][4] 4. **Market Expansion**: The company is actively expanding into emerging air conditioning markets such as Europe, the Middle East, Africa, and Southeast Asia, where penetration rates are low but demand growth potential is high [2][5] 5. **Stock Price Decline**: Recent stock price declines were influenced by both fundamental and financial factors, including downward adjustments in annual forecasts and challenges in domestic and overseas markets [2][6] 6. **Operational Challenges**: The company faced operational challenges post-IPO, including a price war in the domestic market and supply chain issues in overseas markets due to geopolitical tensions [3][7] 7. **Competitive Position**: Aux's competitive position is bolstered by its direct sales model, which minimizes price discrepancies compared to competitors like Gree [4][5] 8. **Future Growth Potential**: The company has significant growth potential in the global air conditioning market, with a current overseas market share of less than 10% and opportunities to capture market share from Japanese and Korean brands [12][16] 9. **Investor Sentiment**: Despite short-term selling pressure from retail investors, long-term prospects remain attractive due to the company's high dividend yield and potential for valuation recovery [15][17] Additional Important Insights 1. **Emerging Market Focus**: Aux's strategy includes focusing on emerging markets, with a significant portion of its revenue coming from OEM business, which constitutes 30% of its total OEM income [10][11] 2. **ODM and OBM Strategies**: The company emphasizes ODM (Original Design Manufacturer) and OBM (Original Brand Manufacturer) strategies to enhance responsiveness and meet diverse market needs [11] 3. **Market Share Growth Logic**: The growth logic for Aux is primarily based on increasing market share, which is expected to offset various adverse factors [14][16] 4. **Potential Index Inclusion**: Aux is likely to be included in the OCI index, which could attract more attention and investment due to its high dividend yield in the white goods sector [16] This summary encapsulates the essential insights from the conference call, highlighting Aux Group's financial performance, market strategies, and future growth potential in the air conditioning industry.

Core Viewpoint - Aokang Electric's stock has experienced significant declines since its listing, reaching a record low, indicating potential challenges in market performance and investor confidence [1][2]. Group 1: Stock Performance - Aokang Electric's stock closed at HKD 14.20, down 6.58%, marking a new low since its listing [1]. - The stock had previously closed at HKD 15.20, down 3.31%, and HKD 15.72, down 2.36%, both also setting new lows [1]. - The stock was listed on September 2 at HKD 16.48, with an initial drop of 5.4% on the first day [1]. Group 2: IPO Details - Aokang Electric issued a total of 238,235,200 shares, with 83,382,400 shares allocated for public offering and 154,852,800 shares for international offering [1]. - The final offer price was set at HKD 17.42, raising a total of HKD 4,150.1 million, with a net amount of HKD 3,993.5 million after deducting estimated listing expenses of HKD 156.5 million [2]. - Key cornerstone investors included China Post Insurance, China Post Wealth Management, and several others, receiving a total of 55,921,400 shares [2].

Group 1 - The core viewpoint is that Aux Electric's stock has been declining since its listing, reaching a new low of HKD 15.20, which is a 3.31% drop [1] - Aux Electric's stock price on September 10 was HKD 15.72, down 2.36%, with an intraday low of HKD 15.40, marking a new low since its listing [1] - The company was listed on the Hong Kong Stock Exchange on September 2, with an initial closing price of HKD 16.48, reflecting a 5.4% decline on the first day [1] Group 2 - Aux Electric's final offer price was HKD 17.42, raising a total of HKD 4,150.1 million, with a net amount of HKD 3,993.5 million after deducting estimated listing expenses of HKD 156.5 million [2] - The cornerstone investors included China Post Insurance, China Post Wealth Management, and several others, with a total allocation of 55,921,400 shares [2]

Core Viewpoint - Aokang Electric's stock price has declined significantly since its listing, reaching a new low of 15.40 HKD, indicating a bearish market sentiment towards the company [1]. Group 1: Stock Performance - Aokang Electric's stock closed at 15.72 HKD, down 2.36% on the day [1]. - The stock hit a record low of 15.40 HKD since its listing on September 2, when it debuted at 16.48 HKD, reflecting a drop of 5.4% on the first day [1]. Group 2: IPO Details - Aokang Electric issued a total of 238,235,200 shares, with 83,382,400 shares allocated for public offering and 154,852,800 shares for international offering [1]. - The final offer price was set at 17.42 HKD, raising a total of 4,150.1 million HKD, with a net amount of 3,993.5 million HKD after deducting estimated listing expenses of 156.5 million HKD [2]. Group 3: Key Investors - Major cornerstone investors included China Post Insurance, China Post Financial Management, and Huayun Group (Hong Kong) International Trade Co., among others, with a total allocation of 55,921,400 shares [2].

Core Viewpoint - Aoxin Electric (02580.HK) announced that it will hold a board meeting on September 18, 2025, to consider and approve the interim report for the six months ending June 30, 2025, and to discuss the potential payment of an interim dividend, among other matters [1] Group 1 - The board meeting is scheduled for September 18, 2025 [1] - The meeting will focus on the interim report for the period ending June 30, 2025 [1] - The company will consider the payment of an interim dividend, if applicable [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不會就因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 奧克斯電氣有限公司（「本公司」及其附屬公司，統稱為「本集團」）董事（「董事」）會 （「董事會」）謹此宣佈，本集團將於二零二五年九月十八日（星期四）召開董事會會 議，藉以（其中包括）考慮及批准本集團截至二零二五年六月三十日止六個月之中 期報告及其發佈，考慮派付中期股息（如有）及處理任何其他事項。 承董事會命 奧克斯電氣有限公司 鄭堅江 董事會主席兼執行董事 香港，二零二五年九月八日 AUX ELECTRIC CO., LTD. 奥 克 斯 电 气 有 限 公 司 （ 根 據 開 曼 群 島 法 律 註 冊 成 立 的 有 限 公 司 ） （股份代號：2580） 董事會會議日期 於本公告日期，執行董事為鄭堅江先生及忻寧先生；非執行董事為鄭江先生、何 錫萬先生及李健女士；以及獨立非執行董事為項偉先生、荊嫻博士及陶勝文先生。 ...

Core Insights - The total number of financing events in the domestic primary market this week is 91, a decrease of 70 compared to last week, with a total disclosed financing amount of 3.812 billion RMB [2] - The most active sectors in financing events are intelligent manufacturing, artificial intelligence, and healthcare, with 21, 18, and 11 events respectively [4] - The highest disclosed financing amount comes from the intelligent manufacturing sector, totaling approximately 1.763 billion RMB, with "Xizhi Technology" completing a C round financing of over 1.5 billion RMB [4][13] - The artificial intelligence sector follows with a disclosed financing total of 720 million RMB, where "Ruilong Surgery" completed a D round financing of 67 million USD [4][14] Industry Distribution - Intelligent manufacturing leads with 21 financing events, followed by artificial intelligence with 18 events, and healthcare with 11 events [4] - "Xizhi Technology," focused on optical computing technology, is a notable player in intelligent manufacturing [4] - "Ruilong Surgery," specializing in minimally invasive and digital surgical solutions, is a key player in the artificial intelligence sector [4] Regional Distribution - The majority of disclosed financing events are concentrated in Jiangsu and Guangdong, each with 20 events, followed by Shanghai with 13 events [7][9] - Jiangsu's disclosed financing amounts to 270 million RMB from 7 events, while Shanghai has a significant disclosed amount of 2.473 billion RMB from 7 events [9] Stage Distribution - The majority of financing events are in the early stage, with 69 events, followed by 15 in the growth stage and 7 in the late stage [10] Major Financing Events - "Xizhi Technology" completed a C round financing of over 1.5 billion RMB [13] - "Ruilong Surgery" completed a D round financing of 67 million USD [14] - "Shuimu Medical," a medical device certification service provider, completed an A round financing of 280 million RMB [14] M&A Activity - There were 14 disclosed M&A events this week, an increase of 3 compared to last week, with notable transactions including Zijin Mining's acquisition of 84% of Jiangsu Jinsha Molybdenum for 5.91 billion RMB [25] - Other significant acquisitions include "Zhangtai Zhirun" being acquired for 827 million RMB and "Niwei Automotive" for 666 million RMB [26]

Core Viewpoint - Aokai Electric (2580.HK) listed in Hong Kong on September 2, 2023, and closed up 3.12% at HKD 16.19, reflecting strong market interest and confidence in the company's long-term value [1] Group 1: IPO Details - Aokai Electric's global offering consisted of 238,235,200 shares, with 83,382,400 shares available in Hong Kong and 154,852,800 shares in international offerings [1] - The net proceeds from the IPO amounted to HKD 3.994 billion [1] - The public subscription in Hong Kong saw a staggering oversubscription rate of 557.2 times, while the international offering had an oversubscription rate of 8.3 times [1] Group 2: Investor Support - Cornerstone investors were allocated 55,921,400 shares, accounting for 23.47% of the total offering, indicating strong backing from institutional investors [1] - The high oversubscription rates and cornerstone investor support reflect market confidence in Aokai Electric's long-term growth potential [1] Group 3: Company Performance and Future Plans - Aokai Electric is recognized as a leading global provider of air conditioning solutions, with a solid market position [1] - The company has demonstrated significant revenue and net profit growth from 2022 to 2024 [1] - The funds raised from the IPO will be utilized for global research and development, upgrading smart manufacturing systems, supply chain management, and expanding sales channels to support long-term growth [1]