Core Insights - The report by Zhiyan Consulting analyzes the current market status and development prospects of the air conditioning industry in China from 2026 to 2032 [1] Export Data - In September 2025, China's air conditioning exports amounted to 2.38 million units, representing a year-on-year decline of 19.8% [1] - The export value for the same period was $34.9 million, which reflects a year-on-year decrease of 23.2% [1] Industry Analysis - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in in-depth industry research reports, business plans, feasibility studies, and customized services [1] - The firm emphasizes its professional approach, quality services, and keen market insights to provide comprehensive industry solutions that empower investment decisions [1]

Industry Overview - The report by Zhiyan Consulting analyzes the market status and development prospects of the air conditioning industry in China from 2025 to 2031 [1] - According to the National Bureau of Statistics, the production of room air conditioners in China reached 30.83 million units in April 2025, representing a year-on-year growth of 1.6% [1] - Cumulatively, from January to April 2025, the total production of room air conditioners was 105.314 million units, showing a cumulative growth of 7.2% [1] Key Companies - Listed companies in the air conditioning sector include Gree Electric Appliances (000651), Midea Group (000333), Haier Smart Home (600690), Hisense Home Appliances (000921), TCL Technology (000100), and Harbin Air Conditioning (600202) [1]

Group 1 - The core viewpoint of the article highlights the successful IPO of Aux Electric on the Hong Kong Stock Exchange, emphasizing its growth potential and strategic opportunities in the global HVAC market [1][3][6] - Aux Electric's revenue is projected to grow from 19.528 billion RMB in 2022 to 29.759 billion RMB in 2024, with a compound annual growth rate (CAGR) of 23.4%, while net profit is expected to rise from 1.442 billion RMB to 2.910 billion RMB, achieving a CAGR of 42.1% [1][5] - The company's net profit margin is anticipated to increase from 7.4% in 2022 to 9.8% in 2024, further reaching 9.9% in the first three months of 2025, indicating a positive trend [1][5] Group 2 - Aux Electric's dual-market strategy under the "dual circulation" framework has shown remarkable adaptability and growth potential, with overseas revenue share increasing from 42.9% in 2022 to 57.1% in Q1 2025 [2][4] - The company has invested over 1.6 billion RMB in R&D, establishing research centers in Ningbo, Zhuhai, and overseas, and holds over 12,000 registered patents, enhancing its global competitiveness [2][4] - The global air conditioning market is projected to reach 1.3 trillion RMB in 2024 and exceed 1.5 trillion RMB by 2028, with Aux Electric positioned as the fifth-largest air conditioning provider globally, outpacing industry growth rates [4][5] Group 3 - The timing of Aux Electric's IPO aligns with a positive shift in the Hong Kong stock market, with the Hang Seng Index and Hang Seng Tech Index showing strong resilience and growth in 2023 [3][5] - Southbound capital inflows have been significant, with net purchases nearing 98 billion HKD this year, indicating strong investor interest in the Hong Kong market, particularly for new listings and small to mid-cap growth stocks [3][5] - The active IPO market reflects a resurgence in investor enthusiasm, with 54 new listings in the first eight months of the year, raising approximately 132.26 billion HKD, a 567.5% increase year-on-year [3][5] Group 4 - Aux Electric's successful listing is seen as a representation of Chinese manufacturing's advancement in the global value chain, showcasing resilience and innovative vitality under the "dual circulation" strategy [6] - The recognition from the capital market serves as validation of the company's past achievements and future growth potential, positioning Aux Electric as a typical example of a company that creates real value [6]

Core Viewpoint - The recent public dispute between Xiaomi and Gree over air conditioning sales rankings and product quality highlights a significant shift in the industry dynamics, driven by differing business models and market strategies [4][5]. Group 1: Sales and Market Share - A blogger's post revealed that Xiaomi surpassed Gree in online air conditioning sales with a market share of 16.71% compared to Gree's 15.22% for July [2]. - Gree's market director countered with data showing Gree's online market share at 16.41%, significantly higher than Xiaomi's 13.5% [2][3]. - Xiaomi's air conditioning shipments exceeded 5.4 million units in Q2, marking a year-on-year growth of over 60% [5]. Group 2: Channel Power Shift - The air conditioning market is transitioning to a stock competition phase, with online channels becoming the focal point for brand competition [5]. - Xiaomi's strategy combines e-commerce and content marketing, allowing it to rapidly capture market share [5]. - Gree's reliance on offline sales channels, which account for over 85% of its revenue, is facing challenges as online competition increases [5]. Group 3: Strategic Divergence - Gree adheres to a traditional manufacturing model focused on self-research of core components, emphasizing product reliability and durability [6]. - Xiaomi adopts an internet-based ecosystem approach, prioritizing smart connectivity and user experience over heavy investment in core hardware [6]. - The ongoing dispute reflects a broader clash between traditional manufacturing and internet-driven business models [4][6]. Group 4: User Value Creation - Midea has emerged as a leader in the air conditioning market, achieving a retail market share of 25.06% online and 33.4% offline by mid-2025 [7]. - Midea's success is attributed to its deep understanding of user needs and a comprehensive product matrix that addresses various consumer scenarios [8]. - The company has invested over 18 billion yuan in R&D over the past five years, establishing a robust technological foundation [9]. Group 5: Service and Operational Excellence - Midea has built a nationwide service network with over 190,000 certified engineers, ensuring comprehensive coverage and high service quality [9]. - The company reported a revenue of approximately 251.12 billion yuan for the first half of 2025, reflecting a year-on-year increase of 15.58% [9].

Core Viewpoint - The public dispute between Gree Electric Appliances and Xiaomi Group over air conditioning technology highlights the clash between traditional manufacturing and internet business models, revealing underlying market anxieties and competitive dynamics [2][3][4] Group 1: Market Dynamics - As of July 2025, Xiaomi's online air conditioning market share reached 16.71%, a year-on-year increase of 2.83%, while Gree held 15.22% in third place [3] - Gree claims its online market share is 17.71% as of August 17, surpassing Xiaomi's 15.77%, indicating a discrepancy in data reporting and market positioning [3] - Xiaomi's air conditioning shipments exceeded 5.4 million units in Q2 2023, marking a 60% year-on-year increase, while Gree is forced to reduce prices and channel costs to maintain competitiveness [3][4] Group 2: Technological Debate - Gree emphasizes the importance of self-developed core components, while Xiaomi focuses on supply chain integration for rapid iteration, reflecting a deeper industry transformation [4] - The technical dispute centers around Gree's claim of superior technology with its CAN system and Xiaomi's choice of RS485 interface for smart upgrades, showcasing differing priorities in consumer experience and technical specifications [4] Group 3: Consumer Experience - The essence of air conditioning lies in cooling efficiency, noise reduction, and durability, which may be overlooked in the ongoing technical debate [5] - Both companies need to balance their strengths: Xiaomi must enhance its manufacturing capabilities, while Gree should embrace innovation alongside its technical expertise [5]

Group 1 - The core point of the article highlights a significant decline in China's air conditioning exports in June 2025, with a total of 4.59 million units exported, representing a year-on-year decrease of 25.1% [1] - The export value for the same period was $717 million, which also reflects a year-on-year decline of 24.5% [1] - The data is sourced from Chinese customs and organized by Zhiyan Consulting, indicating a comprehensive analysis of the air conditioning industry [3]

Core Insights - The article emphasizes the importance of cleaning air conditioning units that have not been used for a year before turning them on, as neglecting this can lead to health issues such as Legionnaires' disease. Group 1: Industry Overview - As of now, there are 1.6442 million existing air conditioning-related enterprises in China, with 40.77% located in the East China region [3] - In 2024, the registration volume for air conditioning-related enterprises reached 228,100, showing a year-on-year decrease of 9.57%. However, 10.88 million enterprises have been registered this year, with 96,800 registered in the first four months, reflecting a year-on-year growth of 32.78% [2] Group 2: Regional Distribution - The majority of air conditioning-related enterprises are concentrated in East China, followed by South China (14.06%), North China (13.6%), and Central China (11.89%) [3] Group 3: Industry Segmentation - The air conditioning-related enterprises are primarily engaged in wholesale and retail, accounting for 71.22 million enterprises, which is 43.31% of the total. Other significant sectors include construction, scientific research and technical services, and manufacturing [4]

Core Perspective - The article highlights the transformation of Dong Mingzhu from a gentle and warm woman to a powerful and decisive leader in the business world, showcasing her resilience and strength in overcoming personal and professional challenges [1][13]. Group 1: Early Life and Background - Dong Mingzhu was born in Nanjing to an ordinary family, where she was cherished as a "pearl" by her parents [5]. - She initially led a conventional life, marrying at a suitable age and focusing on family responsibilities [5]. - The death of her husband when she was 30 forced her to become the primary breadwinner for her family, significantly altering her life trajectory [5]. Group 2: Career Development - In 1990, at the age of 36, Dong Mingzhu joined the then-unknown Haier Air Conditioning Factory (the predecessor of Gree) as a saleswoman [7]. - She demonstrated remarkable tenacity by successfully recovering a debt of 420,000 yuan after 40 days of persistence, marking her entry into the competitive business environment [7]. - Within two years, she achieved sales of 16 million yuan in the Anhui market, accounting for one-eighth of Gree's total revenue at that time [9]. Group 3: Leadership and Management Style - Dong Mingzhu's management style evolved from a gentle demeanor to a strong and decisive approach, characterized by her iron-fisted management and refusal to tolerate any actions that could harm the brand [11]. - She became known for her strong stance in internal corruption issues and her fierce competition with rival companies, particularly in the distribution channel disputes with Gome's Huang Guangyu [11]. - Her journey illustrates that true beauty lies in personal growth and resilience, inspiring many to face life's challenges with courage [13].