GREE(SZ:000651) Sou Hu Cai Jing·2025-09-02 20:20Core Viewpoint - Aux Electric Co., Ltd., led by entrepreneur Zheng Jianjiang, has successfully listed on the Hong Kong Stock Exchange after seven years of preparation, marking a significant milestone for the company in the air conditioning industry [1][5] Company Overview - Aux Electric primarily focuses on air conditioning manufacturing and was officially listed on September 2, 2025, with an initial share price of HKD 17.42. However, the stock price fell by 7% on its first day, closing at HKD 16.73, giving the company a market capitalization of approximately HKD 257.27 billion [1] - Zheng Jianjiang, at 64 years old, has now taken his third company public, having previously listed SamSung Medical and Aux International [1] Industry Context - Aux has rapidly risen in the air conditioning sector through smart products and competitive pricing strategies, gaining positive consumer feedback, particularly for its mobile app remote control features [3] - The company has been embroiled in a long-standing patent dispute with Gree Electric, which has filed 27 lawsuits against Aux for patent infringement since 2013, winning all cases [3] - Despite the ongoing legal challenges, Aux has demonstrated strong financial growth, with revenue increasing from CNY 19.528 billion in 2022 to CNY 29.759 billion in 2024, and net profit rising from CNY 1.442 billion to CNY 2.91 billion during the same period [3] - In Q1 2025, Aux reported revenue of CNY 9.352 billion, a 27% year-on-year increase, and a net profit of CNY 0.925 billion, up 23% year-on-year [3] Market Positioning - Aux's journey to listing has been marked by several attempts, including a brief stint on the New Third Board in 2016 and an unsuccessful bid for A-share listing in 2023. The company finally turned to the Hong Kong market, submitting its application in January 2025 and successfully passing the hearing in August [5] - The competition between Aux and Gree represents a broader market struggle, with Gree maintaining a stronghold in first- and second-tier cities, while Aux has adopted a "rural encirclement of cities" strategy, leveraging low prices and e-commerce channels to capture market share [5] - Despite Aux's impressive growth, it still lags behind Gree, which reported revenue of CNY 190.038 billion in 2024 compared to Aux's CNY 29.759 billion. However, Aux's successful listing is expected to provide the necessary capital to enhance its competitive position and address ongoing patent disputes [5]