Summary of Liquid Cooling Materials Industry Report Industry Overview - The report focuses on the liquid cooling materials industry, particularly in the context of increasing power consumption in AI chips and the demand for hybrid liquid cooling solutions [1][2]. Key Points and Arguments - **Server Cooling Demand Upgrade**: The power consumption of GPUs has increased from 1.2 kW to 1.8 kW, leading to total cabinet power consumption reaching 250-300 kW. Traditional single-phase cold plates are inadequate, necessitating an upgrade to liquid cooling solutions, with hybrid liquid cooling likely becoming mainstream, especially for high-power products like Rubin Ultra [1][2]. - **Advantages of Hybrid Liquid Cooling**: Compared to silent liquid cooling, hybrid solutions retain cold plates covering CPUs/GPUs, removing 60%-70% of heat, reducing the requirements for silent loops, enhancing system stability, allowing for single-point maintenance, and significantly lowering the amount of fluorinated fluids used, thus reducing costs [1][4]. - **Market Potential for Fluorinated Materials**: If hybrid liquid cooling solutions can be scaled, they could significantly drive demand for fluorinated materials, with a potential market size reaching 20 billion yuan, compared to the current demand of around 1,000 tons and a market capacity of 3 billion yuan [1][5]. - **NVIDIA Cooling Architecture Optimization**: The GB200 architecture uses one liquid cooling plate for two GPUs and one CPU, while the GB300 architecture provides individual cooling plates for each GPU and CPU, achieving more precise cooling and controlling total cabinet power consumption to approximately 132 kW. Higher power products like the Shadow series will require upgrades to bidirectional or phase change medium solutions [1][6]. Additional Important Insights - **Liquid Medium Choices**: Different cooling solutions utilize various liquid mediums. Single-phase cold plates typically use ethylene glycol, while bidirectional systems require low-boiling-point fluorinated fluids like R134A, hydrofluoroethers, and hexapropylene dimer [2][10]. - **New Zobon’s Liquid Cooling Strategy**: New Zobon is actively expanding in the liquid cooling sector, planning to add nearly 12,000 tons of capacity, including about 5,000 tons of perfluoropolyether capacity. The company aims to capture 50% of the semiconductor etching and temperature control market share [2][18]. - **Future Prospects for New Zobon**: The company expects its main business revenue to reach around 1.4 billion yuan by 2025-2026 and potentially 1.8-1.9 billion yuan by 2027. If the liquid cooling business materializes, the long-term market potential could reach 20 billion yuan, positioning the company for a valuation exceeding 20 billion yuan, with a short-term target market cap close to 50 billion yuan [2][20]. - **Challenges in Silent vs. Hybrid Solutions**: Silent solutions face high costs and reliability issues, while hybrid solutions enhance reliability and maintainability, significantly reducing the amount of medium required and overall costs [2][7]. - **Market Potential for Liquid Cooling Solutions**: The liquid cooling market has substantial potential, with estimates suggesting that if 100,000 cabinets are sold, the market space could approach 20 billion yuan, indicating significant growth elasticity compared to the current demand and market capacity [2][17]. This summary encapsulates the critical insights and projections regarding the liquid cooling materials industry, highlighting the evolving technology landscape and market opportunities.

Core Viewpoint - The liquid cooling sector is gaining traction due to the increasing demand for cooling solutions in AI and high-performance computing, with significant growth expected in the market over the next few years [6][7][9]. Group 1: Market Trends - The global AI liquid cooling market is projected to reach $8.6 billion by 2026, indicating rapid market growth [7]. - In China, the liquid cooling market for intelligent computing centers is expected to reach 18.4 billion yuan in 2024, a 66.1% increase from 2023, and could grow to approximately 130 billion yuan by 2029 [7]. Group 2: Company Performance - Silver Wheel Co. (银轮股份) has the highest institutional ratings at 29, with a stock price increase of over 114% this year. The company is expected to see net profit growth of 35.29% in 2025 and 26.16% in 2026 [9]. - Other companies like Inspur Information (浪潮信息) and Invech (英维克) are also projected to have net profit growth rates exceeding 20% in the coming years [9]. Group 3: Technological Developments - NVIDIA is pushing suppliers to develop microchannel liquid cooling plates (MLCP) to address the rising heat from AI GPU chips, with prices 3 to 5 times higher than traditional cooling solutions [6]. - Liquid cooling is becoming the mainstream solution due to its efficiency and ability to handle the increasing power density of chips, as traditional air cooling methods are no longer sufficient [6][7]. Group 4: Company Initiatives - New Zobang (新宙邦) is actively participating in setting standards for liquid cooling and has developed mature products for various data center applications [8]. - High Lan Co. (高澜股份) offers a range of liquid cooling solutions and aims to maintain a Power Usage Effectiveness (PUE) of below 1.1 [8].

Core Viewpoint - The company, Xinzhou Bang, emphasizes its battery chemicals business as one of its three core operations, showcasing significant growth and a diverse application range in various industries [1] Group 1: Business Overview - The battery chemicals business includes products such as lithium-ion battery electrolytes, additives, new lithium salts, carbonate solvents, supercapacitor chemicals, primary lithium battery chemicals, sodium-ion battery chemicals, and solid-state battery materials [1] - The downstream markets for these products encompass power batteries, energy storage batteries, and consumer batteries, with applications in electric vehicles, power systems, data centers, rail transportation, wind and solar energy, laptops, tablets, smartphones, smart wearable devices, consumer drones, robots, smart appliances, electric tools, and various portable electronic products [1] Group 2: Financial Performance - In the first half of 2025, the battery chemicals business achieved operating revenue of 2.815 billion yuan, representing a year-on-year growth of 22.77%, accounting for 66.27% of the total operating revenue during the reporting period [1] Group 3: Competitive Advantages - The company possesses significant advantages in research and development innovation, quality control, integrated supply chain, customer structure, international layout, and brand value, positioning it as one of the major suppliers in the industry [1]

Group 1 - The company emphasizes the importance of research and innovation in coolant technology and has developed multiple technical routes for composite coolant products [2] - The company has a strong technical foundation in fluorinated liquids and has established a mature quality management system, participating in the formulation of several standards and specifications in the liquid cooling field [2] - The company has successfully mass-produced products for various scenarios in IDC data centers and is actively promoting certification work with major domestic and international manufacturers [2] Group 2 - The company is currently validating and testing new types of coolants with domestic and international clients, although specific details about client certification stages are confidential [2] - The company plans to continuously enhance the competitiveness of its liquid cooling products, capacity assurance, and customer service levels in the future [2]

Core Insights - The article highlights the successful delivery of orders by Nolite Technology (Malaysia) Co., Ltd., marking it as the first electrolyte manufacturer from China to achieve order delivery in Southeast Asia [1] Group 1: Company Milestones - Nolite Technology (Malaysia) was officially registered in February 2025, initiating the expansion of Xinluo Bang into the Southeast Asian market [1] - The company signed a memorandum of understanding with Invest Kedah in April 2025, which significantly supported the internationalization strategy of Xinluo Bang [1] - The successful delivery from the first factory coincides with the upcoming full-scale construction of the second factory, laying a solid foundation for future capacity release [1] Group 2: Strategic Developments - The establishment of the first factory in Kulim Hi-Tech Park has accelerated the integration of technology, production capacity, and localized operations [1] - The support from Invest Kedah has played a crucial role in expediting the project’s implementation [1]

Group 1 - The core viewpoint highlights the mixed performance of the ChiNext New Energy Index, with notable gains from companies like Zhenyu Technology and Feirongda, while Jinli Permanent Magnet led the declines [1] - The ChiNext New Energy ETF has shown a slight increase of 0.14%, with the latest price at 1.45 yuan, indicating a stable market interest in new energy stocks [1] - The recent milestone of the Mercedes EQS solid-state test vehicle achieving a range of 1205 kilometers signifies significant advancements in the global new energy vehicle industry, with China's Ministry of Industry and Information Technology approaching a project review deadline [1] Group 2 - As of August 29, 2025, the top ten weighted stocks in the ChiNext New Energy Index account for 64.15% of the index, with companies like CATL and Sungrow leading the list [2] - The ChiNext New Energy ETF closely tracks the performance of the ChiNext New Energy Index, reflecting the operational characteristics of listed companies in the new energy sector on the Shenzhen Stock Exchange [2]

Core Viewpoint - The company is actively developing composite cooling liquids for next-generation servers and is involved in the certification process for these products, while also participating in the supply chain for North American supercomputing centers [2]. Group 1: Product Development and Certification - The company emphasizes the importance of research and innovation in cooling liquid technology and has developed multiple technical routes for composite cooling liquid products [2]. - The company has a strong technical foundation in fluorinated liquids and has established a mature quality management system, contributing to the formulation of several standards and specifications in the liquid cooling field [2]. - Various products for different scenarios in IDC data centers have reached mature mass production, and the company is actively promoting certification work with major domestic and international manufacturers [2]. Group 2: Market Position and Future Plans - The company is currently engaged in verification testing of some new cooling liquid products with domestic and international clients, although specific details about the certification stages are confidential [2]. - The company plans to continuously enhance the competitiveness of its liquid cooling products, ensure production capacity, and improve customer service levels [2]. - Investors are encouraged to follow the company's periodic reports on the Giant Tide Information Network for updates on product layout [2].

Core Viewpoint - The article highlights the dynamic changes in Malaysia's position as a key node in Southeast Asia's electric vehicle supply chain, with companies like Xinzhoubang and KedaLi making strategic decisions based on regional advantages and market conditions [3][8]. Group 1: Company Developments - Xinzhoubang's factory in Malaysia has successfully commenced operations, marking it as the first Chinese electrolyte manufacturer to achieve localized production and delivery in Southeast Asia [3]. - The factory, located in Kedah's Kulim Hi-Tech Park, took approximately seven months from registration to delivery, supported by the Kedah State Investment Development Corporation [3]. - Star Source Materials has also launched its first phase of production in Malaysia, with an annual capacity of 2 billion square meters and an investment close to 5 billion RMB, indicating strong market demand from global battery manufacturers [5]. Group 2: Investment Trends - Several lithium battery material companies are investing in Malaysia, including Shantai Technology, which plans to invest $154 million to build a 50,000-ton annual capacity for anode materials [6]. - Other companies, such as Jinyang Co. and Hunan Youneng, have announced plans to establish production facilities in Malaysia, contributing to a relatively complete battery supply chain in the region [6]. Group 3: Strategic Shifts - KedaLi announced a shift of its planned investment from Malaysia to Thailand, reducing the investment from up to 600 million RMB to 210 million RMB, citing better location conditions, policy support, and industrial chain collaboration in Thailand [7][8]. - This decision reflects a broader trend of companies dynamically assessing and comparing investment environments and benefits across different countries and regions [8].

Core Viewpoint - The demand for AI data centers is increasing, driven by high heat dissipation and high energy consumption, leading to a growing need for liquid cooling solutions [2][3]. Group 1: AI Data Center Capacity and Growth - According to Semianalysis, the global AI computing center installed capacity is expected to reach 7 GW in 2024, with further growth anticipated by 2028 [1][2]. Group 2: Liquid Cooling Solutions - The two main types of liquid cooling solutions for data centers are cold plate cooling and immersion cooling [3][4]. - Cold plate cooling can be further divided into single-phase and phase-change types, with single-phase primarily using deionized water and phase-change using fluorinated fluids [3]. - Immersion cooling liquids are categorized into synthetic oils and fluorinated liquids, with synthetic oils including hydrocarbon and silicone oils, and fluorinated liquids being ideal due to their chemical stability and low dielectric constant [4]. Group 3: Recommended Companies - For cold plate cooling, recommended companies include Haohua Technology (600378.SH), Juhua Co., Ltd. (600160.SH), and Sanmei Co., Ltd. (603379.SH) [3]. - For synthetic oils, Satellite Chemical (002648.SZ) is highlighted, while for silicone oil, the recommended company is Huamao Technology (603181.SH) [4]. - For fluorinated liquids, recommended companies include Sinoma Science & Technology (300037.SZ), Juhua Co., Ltd., Hualu Group (600623.SH), and Yonghe Co., Ltd. (605020.SH) [4].

Financial Performance - The company reported a revenue of 4.248 billion yuan for the first half of 2025, representing a year-over-year increase of 18.58% [1] - The net profit attributable to shareholders was 484 million yuan, up 16.36% year-over-year, while the net profit excluding non-recurring items was 466 million yuan, reflecting an 8.16% increase [1] - In Q2 2025, the company achieved a revenue of 2.246 billion yuan, which is an 8.65% year-over-year increase and a 12.16% quarter-over-quarter increase [1] Cost and Margin Analysis - The average price of battery-grade lithium carbonate fell to approximately 64,500 yuan per ton in Q2 2025, a decrease of 14.73% quarter-over-quarter, significantly impacting the profitability of the electrolyte business [2] - The gross margin for the electrolyte business was reported at 9.71% for the first half of 2025, down 3.94 percentage points year-over-year [2] - The company's Q2 2025 gross margin for the electrolyte business was 25.5%, showing a year-over-year decline of 2.87 percentage points but a quarter-over-quarter increase of 0.95 percentage points [1] Strategic Developments - The company is enhancing its global layout for electrolyte production, with the launch of a lithium-ion battery electrolyte project in Poland, contributing to a revenue of 2.815 billion yuan in the first half of 2025, a 22.77% increase year-over-year [2] - The acquisition of Shilei Fluorine Materials aims to fill the supply gap for hexafluorophosphate lithium, with planned production capacity expanding to 33,000 tons, aligning with the company's annual demand of 37,500 tons [2] Market Outlook - The liquid cooling technology is identified as a key solution for data center heat dissipation, with a projected global demand for fluorinated liquids reaching approximately 4,000 tons, translating to a market space of around 10 billion yuan based on a price of 250,000 yuan per ton [4] - The company is expected to maintain its profit forecasts for 2025-2027, with projected net profits of 1.178 billion yuan, 1.499 billion yuan, and 1.916 billion yuan, corresponding to PE valuations of 30X, 24X, and 18X respectively [4]