(Yicai Global) June 11 -- Aux Air-Conditioner blasted a statement issued by archrival Gree Electric Appliances denigrating Aux's product quality claims.

Gree is neither a consumer nor a regulator, Ningbo-based Aux countered on its official Twitter-like Weibo account yesterday. Gree's resort to commercial disparagement is clearly an act of unfair competition as the peak sales season for air conditioners looms, Aux said, adding that it has taken up the matter with the police.

Zhuhai-based Gree, the world's biggest maker of home air conditioners, yesterday posted a statement asserting that the energy efficiency of some of Aux's models is significantly lower than the company claims.

Ningbo's market regulator is verifying Gree's claims and said it will issue an official notice later, local news portal Zhejiang Online reported.

"We welcome supervision to jointly build the reputation of a quality national brand," said Aux Group President Zheng Jianjiang.

Aux's online sales rose 56 percent in the first quarter, while Gree suffered a decline of 11 percent in air conditioner sales, according to figures from Big Data visual solutions provider Beijing All View Cloud Data Technology.

Founded in 1986, Aux Group's major products include home and commercial aircons and other household appliances. It had operating income of CNY86 billion (USD12.4 billion) last year.

Gree posted an annual net profit of CNY26.2 billion on operating income of CNY200.2 billion, of which CNY156 billion came from airs, accounting for 77.8 percent of the total.

Today, Gree's shares [SHE:000651] rose 1.7 percent to close at CNY53.95 (USD7.80), while the benchmark Shenzhen Component Index gained 3.7 percent. 

Editor: Ben Armour