Struggling with a generic listing FBA and unrealistic prices

So I have a generic listing for a USB c hub 6 in 1 with different port capabilities and I have obtained it for a considerably low price from the manufacturer and it’s a great quality.

However I’m struggling with a particular competition who are selling for an impossible lower price almost half.

(I’m selling for 45 AED and they are selling for 27 AED) Considering that material cost with shipping is 23 AED without Amazon fees or Ads.

After doing some calculations they cannot be profitable at all at thier pricing level and they are using FBA too.

What are your advice in such situations, considering that Amazon Ads did not help at all.

How can they sell for so low or are they getting rid of their stock ?