Core Viewpoint - Aokai Electric Co., Ltd. has passed the listing hearing on August 12, 2025, with CICC as the sponsor, despite facing significant challenges in market share and competition in the home appliance industry [1][3]. Company Overview - Aokai was established in 1994, with over 95% of its revenue coming from air conditioning business. It was known as a "price killer" in the domestic air conditioning market, achieving the top online position and third in the industry, becoming a leading second-tier brand [1]. - In recent years, Aokai's online market share has dropped to sixth place, overtaken by brands like Xiaomi and Hualing, while its offline market share is below 1%, indicating a trend towards marginalization [3]. Financial Performance - According to the prospectus, Aokai's revenue is projected to grow from 19.528 billion in 2022 to 29.759 billion in 2024, with a compound annual growth rate (CAGR) of 23.45%. Net profit is expected to increase from 1.442 billion to 2.910 billion during the same period, with a CAGR of 42.07% [3]. - Despite these growth figures, Aokai's scale is significantly smaller than industry leaders, with Midea Group achieving 372.037 billion in revenue and 33.720 billion in net profit in 2023, and Gree Electric achieving 205.018 billion in revenue and 29.017 billion in net profit [3]. Competitive Landscape - Aokai has been viewed as a competitor by Gree Electric, with ongoing disputes and accusations dating back to 2013, highlighting the intense rivalry in the industry [3]. - The white goods industry has entered a phase of stock competition, where relying solely on price wars is unsustainable. Aokai's challenge lies in transitioning from a "price-driven" to a "value-driven" model to find new growth engines [5]. Financial Health - Aokai's debt-to-asset ratio has consistently remained above 80%, significantly higher than the approximately 60% ratio of leading competitors like Midea and Gree. As of 2024, Aokai's total liabilities reached 19.269 billion, with a debt-to-asset ratio of 84.1% [5]. - The total liabilities increased by approximately 29.7% from 14.850 billion in 2023 to 19.269 billion in 2024, indicating a concerning trend in financial health [5]. - Prior to the IPO, the founder's family distributed a substantial dividend of 3.79 billion, raising market concerns as it nearly equaled the net profit of 3.929 billion for 2022 and 2023 combined [5].