# Zheng Jianjiang
Latest news and articles about Zheng Jianjiang
Total: 2 articles found
The Price Butcher’s Blunt Blade: Aux and the Crisis of China’s Low-Cost Model
Aux Electrical, once the dominant low-cost disruptor in China’s air conditioning market, is facing a severe profit crunch as its 'Price Butcher' strategy fails to combat rising raw material costs and technological stagnation. Despite a 2025 IPO, the company’s reliance on low-margin ODM sales and a lack of R&D investment has left it vulnerable to more integrated competitors like Xiaomi and Midea.
The Blunt Blade: Why China’s 'Price Butcher' Is Losing the Air Conditioning War
AUX Electric, once famous for its aggressive price-cutting strategy in the Chinese air conditioning market, is facing a severe crisis as rising material costs and low R&D investment gut its profitability. Despite a recent IPO, the company's net profit has plummeted 24.4%, highlighting the failure of its low-margin model in an era of premium, smart home transitions.