New stock news | AUX Electrical submits application to Hong Kong Stock Exchange to become the world's fifth-largest air conditioner provider.

According to the disclosure from the Hong Kong Stock Exchange on January 15th, AUX Group Limited (hereinafter referred to as "AUX Group") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC as its sole sponsor. According to the prospectus, AUX Group is a leading global specialized air conditioning provider that designs, develops, manufactures, sells, and services high-quality household and central air conditioning units. AUX Group's air conditioning business covers over 140 countries and regions. According to Frost & Sullivan data, as of 2023, the company is the fifth largest air conditioning provider globally in terms of sales volume. AUX Group has become one of the fastest-growing air conditioning brands globally. During the performance record period, the company maintained a high growth trend, with a sales growth rate of 38.6% from 2022 to 2023. According to Frost & Sullivan data, the company had the highest sales growth rate among the top five air conditioning companies globally during that period. The same data source indicates that the company's sales growth rate during that period was significantly higher than the 3.9% global air conditioning market sales growth rate. According to Frost & Sullivan data, based on sales volume in 2023, AUX Group is the number one brand in the Chinese mass market for household air conditioners. In the smart air conditioning segment, according to Frost & Sullivan data, AUX Group ranks first globally in terms of sales volume of smart voice-controlled air conditioners in 2023. Since 2018, the company has been promoting its globalization strategy by establishing production bases and research centers overseas, followed by setting up overseas sales companies and forming local teams in regions such as Malaysia, Thailand, the United States, the United Arab Emirates, Vietnam, and Saudi Arabia to expand its sales in those areas. AUX Group's product matrix focuses on household air conditioners and central air conditioners, with a deep emphasis on energy efficiency, comfort, health, and intelligence. The company's household air conditioners include wall-mounted, cabinet, and portable units, while central air conditioners include multiple unit systems, single unit systems, heat pumps, module systems, and end devices. The company rapidly iterates its products and continues to enrich its product matrix to cover various application scenarios such as residential homes, office buildings, shopping malls, hotels, hospitals, and industrial parks. Financially, as of the nine months ending on September 30th for 2022, 2023, and 2024, AUX Group recorded revenues of approximately 19.528 billion yuan, 24.832 billion yuan, and 24.278 billion yuan respectively, with profits of approximately 1.442 billion yuan, 2.487 billion yuan, and 2.716 billion yuan during the same periods. According to AUX Group's statement in the prospectus, the company's air conditioning business faces intense competition in both the Chinese and overseas markets. Global competition in the air conditioning market is based on various factors including product pricing, features and design, quality, performance, product upgrades, innovation, reputation, energy efficiency, distribution, and financial incentives (such as cooperative advertising, cooperative marketing funds, sales incentives for employees, sales discounts, and after-sales services). Additionally, the global air conditioning market is relatively mature, with characteristics such as intense price competition, frequent product launches, rapid technological and product upgrades by competitors, and differences in personal preferences of end customers. Significant new competition or intensified competition from existing competitors may have adverse effects on the company's business, operational performance, and financial condition.