AUX Electric (02580) announced its initial public offering from August 25 to August 28, 2025. The company plans to globally offer 207 million shares, with 5% allocated for Hong Kong offering and 95% for international offering, plus an additional 15% over-allotment option. The offering price ranges from HK$16.00 to HK$17.42 per share, with a board lot of 200 shares. Trading is expected to commence on the Stock Exchange of Hong Kong at 9:00 a.m. Hong Kong time on Tuesday, September 2, 2025.
The company is one of the world's top five air conditioner providers, integrating design, research and development, production, sales, and services for both residential and commercial air conditioning systems. Operating in the global air conditioning industry with a 2024 market size of RMB 1,312.8 billion, the company has expanded from China to serve over 150 countries and regions worldwide.
According to Frost & Sullivan data, AUX Electric ranked as the world's fifth-largest air conditioner provider by sales volume in 2024, capturing a 7.1% market share. During the track record period, the company maintained rapid growth momentum with a compound annual growth rate of 30.0% in sales volume from 2022 to 2024, significantly outpacing the global air conditioning market's 4.6% growth rate during the same period.
The company demonstrated strong revenue and net profit growth throughout the performance period. Revenue increased 27.2% from RMB 19.528 billion in 2022 to RMB 24.832 billion in 2023, and further rose 19.8% to RMB 29.759 billion in 2024. Additionally, revenue grew 27.0% from RMB 7.363 billion for the three months ended March 31, 2024, to RMB 9.352 billion for the three months ended March 31, 2025.
Net profit surged 72.5% from RMB 1.442 billion in 2022 to RMB 2.487 billion in 2023, and continued growing 17.0% to RMB 2.91 billion in 2024. Furthermore, net profit increased 23.0% from RMB 752 million for the three months ended March 31, 2024, to RMB 925 million for the three months ended March 31, 2025. Net profit margins for 2022, 2023, 2024, and the three-month periods ended March 31, 2024 and 2025 were 7.4%, 10.0%, 9.8%, 10.2%, and 9.9%, respectively.
The company has entered into cornerstone investment agreements with China Post Insurance, China Post Wealth Management, Waling Hong Kong, Tibet Yuanlesheng and CICCFT (regarding Tibet Yuanlesheng's over-the-counter swap), Shenzhen Yongxin and Guotai Junan Investment (regarding Shenzhen Yongxin's over-the-counter swap). These cornerstone investors have agreed to subscribe for, or arrange for their designated entities to subscribe for, offering shares worth approximately $124 million at the offering price, subject to certain conditions.
Assuming an offering price of HK$16.71 per share and that the offering size adjustment right and over-allotment option remain unexercised, the company estimates net proceeds from the global offering to be approximately HK$3.287 billion. The proceeds allocation plan includes: approximately 20% for global research and development; approximately 50% for upgrading intelligent manufacturing systems and supply chain management; approximately 20% for strengthening sales and distribution channels; and approximately 10% for working capital and general corporate purposes.