Group 1 - The listing of Aux Electric Co., Ltd. on the Hong Kong Stock Exchange marks the largest IPO project in the Hong Kong market this year, excluding A-share companies issuing H-shares [2] - The total issuance scale is approximately HKD 41.50 billion before the green shoe option and approximately HKD 47.73 billion after the green shoe option, assuming full exercise [2] - CICC acted as the sole sponsor and lead coordinator for the project, leveraging its deep understanding of Aux Electric's business to highlight its investment value and potential [2] Group 2 - Aux Electric is a leading and rapidly growing professional air conditioning provider, ranking among the top five in the global air conditioning market and first in the Chinese mass air conditioning market [5] - The company utilizes an innovative "online and offline integration" model to capture growth opportunities, particularly in lower-tier markets in China [5] - Aux Electric operates in over 150 countries, with more than 50% of its revenue coming from overseas, enhancing its market share through high cost-performance products and quality delivery [5] Group 3 - CICC's involvement in this project exemplifies its commitment to supporting Chinese manufacturing enterprises in enhancing their competitiveness through capital operations [3] - The company aims to continue its mission of "rooted in China, connecting with the world," leveraging its professional capabilities and international business advantages to assist Chinese enterprises in improving global competitiveness [3]

Group 1: Market Overview - The Hong Kong stock market is thriving in 2025, with the Hang Seng Index up 28.76% year-to-date, reaching a nearly three-year high [1] - The IPO market in Hong Kong raised HKD 107.1 billion in the first half of the year, a nearly sevenfold increase year-on-year, surpassing the total fundraising for the previous year [1] Group 2: Industry Growth - The global air conditioning market is experiencing sustained demand growth due to rising living standards and urbanization in emerging markets like India and Brazil [2] - In developed countries, the air conditioning market continues to grow due to product upgrades and increasing consumer demand for energy-efficient and smart products [3] - The global air conditioning market is projected to reach RMB 1.3 trillion by 2024 and exceed RMB 1.5 trillion by 2028 [3] Group 3: Company Performance - Aux's revenue is expected to grow from RMB 19.528 billion in 2022 to RMB 29.759 billion in 2024, with a compound annual growth rate (CAGR) of 23.4% [3] - The net profit of Aux is projected to increase from RMB 1.442 billion to RMB 2.91 billion during the same period, with a CAGR of 42% [3] - Aux has become the fifth-largest air conditioning provider globally, with a market share of 7.1% as of 2024 [3] Group 4: Competitive Advantages - Aux targets the mass market with high cost-performance products, optimizing production processes to lower costs and enhance consumer access [4] - The company's global strategy allows it to expand market boundaries and reduce risks associated with single markets [5] - Aux's air conditioning business has expanded to over 150 countries, with overseas sales accounting for 57.1% of total revenue in the first quarter of 2025 [6] Group 5: Technological Innovation - Aux has invested over RMB 1.6 billion in R&D over the past three years, establishing research centers in Ningbo, Zhuhai, and Japan [7] - The company holds over 12,000 registered patents, including more than 2,800 invention patents, and has participated in the formulation of over 160 national and industry standards [7] - Aux has implemented smart manufacturing technologies, significantly improving production efficiency and product quality [8] Group 6: Sales and Distribution Strategy - Aux has innovatively developed a "new retail" model that integrates online and offline resources, reducing costs and enhancing market competitiveness [9] - The "Xiao Ao Direct Sales" ecosystem allows for direct consumer engagement, streamlining the sales process and improving efficiency [9] Group 7: Conclusion - Aux's listing on the Hong Kong stock market exemplifies high-quality development in Chinese manufacturing, driven by deep insights into industry trends and a global strategy [11] - The company's strong profitability is supported by collaborative efforts in R&D, smart manufacturing, and channel innovation, creating a competitive barrier [11]