Core Viewpoint - Aux Electric Co., Ltd. has successfully listed on the Hong Kong Stock Exchange, marking a significant milestone in its development journey, with a total market capitalization exceeding HKD 25 billion at the IPO [1][3]. Company Overview - Aux Electric, established in 1994, specializes in the design, research and development, production, sales, and service of high-quality home and central air conditioning systems [1][3]. - The company offers a range of products including wall-mounted air conditioners, cabinet air conditioners, portable air conditioners, multi-split systems, unitary systems, heat pumps, modular units, and terminal equipment [1]. IPO Details - The IPO price was set at HKD 17.42 per share, with approximately 238 million shares offered globally [1]. - On its first trading day, the stock closed at HKD 16.48 per share, reflecting a decline of 5.40% with a turnover rate of 3.30% and a transaction volume of HKD 857 million [1]. Shareholding Structure - Prior to the IPO, Aux Holdings owned 96.36% of Aux Electric, with other shareholders holding minor stakes [3]. - The major shareholder of Aux Holdings is the founder Zheng Jianjiang, who holds 85% of the shares [3]. Financial Performance - Aux Electric's revenue increased from CNY 19.528 billion in 2022 to CNY 29.759 billion in 2024, representing a compound annual growth rate (CAGR) of 23.4% [6]. - Net profit grew from CNY 1.442 billion to CNY 2.910 billion during the same period, with a CAGR of approximately 42% [6]. - In 2024, home air conditioning accounted for over CNY 25.9 billion in revenue, representing 87.1% of total revenue, with sales of 17.1 million units [6]. Future Plans - The funds raised from the IPO will be allocated to three main areas: CNY 5 billion for building smart factories in Vietnam and Mexico, CNY 3 billion for research and development of new environmentally friendly refrigerants and AI energy-saving algorithms, and CNY 2 billion for an industrial acquisition fund focusing on smart home ecosystem companies [6]. - Aux Electric aims to achieve comprehensive globalization in capital, research and development, production, and sales, thereby expanding its overseas business and operational scale [7]. Market Position - According to Frost & Sullivan, Aux Electric is projected to be the fifth-largest air conditioning provider globally by sales volume in 2024, with a market share of 7.1% [4]. - The company's overseas market revenue has shown significant growth, increasing from CNY 8.386 billion in 2022 to CNY 14.681 billion in 2024, accounting for 49.3% of total revenue [6].

Core Viewpoint - The competition between Xiaomi and Gree has intensified, with Xiaomi's recent growth in the home appliance sector and its stock performance outpacing Gree, leading to discussions about Xiaomi potentially overtaking Gree in market position [2][7][19]. Group 1: Xiaomi's Growth and Strategy - Xiaomi's air conditioner shipments reached 4.4 million units in 2023, a year-on-year increase of 49%, and are projected to grow to 6.8 million units in 2024, with a target of 10 million units by 2025 [8][9]. - The company's revenue from home appliances during the June 18 sales event reached 33.5 billion yuan, an increase of nearly 80% compared to 18.7 billion yuan in the same period of 2022 [9]. - Xiaomi's total revenue for 2024 was 365.9 billion yuan, a year-on-year growth of 35%, with a net profit of 27.2 billion yuan, up 41.3% [19][21]. Group 2: Comparison with Gree - Gree's revenue for 2024 was 190 billion yuan, a decline of 7.31%, while its net profit was 32.18 billion yuan, an increase of 10.91% [19][21]. - Gree's market share in air conditioning dropped by 2.3% in 2024, while Xiaomi's air conditioning sales grew by 50% [12][23]. - Xiaomi's average price for air conditioners is 2,353 yuan, which is 68% of Gree's average price of 3,440 yuan, indicating a difference in profitability and market positioning [23]. Group 3: Industry Dynamics and Future Outlook - The relationship between Xiaomi and Midea is characterized by mutual respect and learning, with Midea's chairman expressing a positive attitude towards Xiaomi's entry into the home appliance market [9][12]. - Xiaomi's R&D investment for 2024 was 24.1 billion yuan, a 25.9% increase, compared to Gree's 6.9 billion yuan, which grew only 2.1% [23][24]. - The ongoing competition and Xiaomi's strategic learning from Midea and Haier suggest a potential restructuring of the industry landscape, with Xiaomi aiming to challenge Gree's dominance in the near future [25].