Core Viewpoint - The energy sector is experiencing significant policy support, with recent guidelines from the National Development and Reform Commission and the National Energy Administration aimed at promoting high-quality development in the renewable energy industry during the 14th Five-Year Plan period. This is expected to create abundant investment opportunities in clean energy sources and new grid construction over the next 3-5 years, driven by global electricity shortages and carbon reduction demands [2]. Energy Storage - The guidelines emphasize the necessity of a capacity electricity price mechanism. Inner Mongolia has set an independent energy storage discharge compensation standard of 0.28 yuan/kWh for 2026, which is better than expected. Haibo has signed a three-year long-term contract for 200GWh with Ningde, indicating strong demand for energy storage and optimistic expectations for battery supply tightness [2][5]. Lithium Battery - According to Xinluo Lithium Battery, global energy storage battery shipments reached 428GWh in the first three quarters of 2025, representing a year-on-year increase of 90.7%. In November, there is a significant supply shortage of VC, leading to a sharp price increase. Leading electrolyte companies have only 10-15 days of VC inventory, which is far below the safety stock level. The high production enthusiasm and price increase expectations continue to support a positive outlook for the entire lithium battery industry chain [1][2]. Wind Power - Inner Mongolia plans to add 150GW of new energy installations over the next five years and has initiated a competitive bidding process for 15GW of wind power in 2025. There is optimism for sustained high levels of wind power bidding in the short term and strong demand in the medium to long term. The pricing policies for offshore wind in Zhejiang and Jiangsu show clear policy support, suggesting that domestic offshore wind is likely to see significant growth during the 14th Five-Year Plan period [3]. Photovoltaics - Perovskite technology is receiving policy support and industrial progress, with ongoing recommendations to focus on equipment and core materials. CSIQ (the parent company of Aters) has released a strong guidance for 2026 energy storage shipment volumes. There is a continued recommendation for bottom-fishing in the photovoltaic sector, including leaders in energy storage, glass, low-cost silicon materials, high-efficiency batteries/modules, and new technologies like perovskite and tandem cells [3]. Hydrogen Energy and Fuel Cells - The national level has continuously issued strategic policy documents to promote the maturity of the green hydrogen and ammonia industry from multiple dimensions, including system positioning and development pathways. The demand for solid oxide fuel cells (SOFC) is strongly determined, and the industry development trend is clear, showing resilience against short-term fluctuations [3]. Electric Grid - The State Grid has opened bidding for three batches of metering equipment, with new standards leading to price increases of over 30% for A-D grade meters, which is expected to significantly enhance profit margins for leading companies. The sixth round of bidding for transmission and transformation projects by the State Grid in 2025 maintains a high volume [4]. New Energy Vehicles - The automotive market entered a negative growth phase in October due to the continuous decline of local subsidies and high base figures from the same period last year. The penetration rate continues to rise, validating the impact of the reduction in purchase tax exemptions. It is expected that Q4 market sales will remain flat year-on-year, with the penetration rate continuing to break new highs, but closer observation of demand in Q1 2026 is necessary [4]. Important Industry Events - The Ministry of Industry and Information Technology has included perovskite in the "Frontier Materials Pilot Platform." Inner Mongolia has clarified the independent energy storage compensation standard for 2026 at 0.28 yuan/kWh. The region has also initiated competitive bidding for 15GW of wind power projects in 2025. Longi Green Energy has acquired Suzhou Jingkong Energy to enter the energy storage industry, and Goldwind Technology has opened a solution factory in South Africa. The State Grid has opened bidding for metering equipment and announced the sixth round of bidding for transmission and transformation projects [5].

Performance Summary - In Q3 2025, the company reported revenue of 14.53 billion yuan, a year-on-year increase of 25.34%, and a net profit attributable to shareholders of 1.83 billion yuan, up 8.35% year-on-year [1] - For the first nine months of 2025, the company achieved revenue of 40.28 billion yuan, representing a year-on-year growth of 40.19%, and a net profit of 3.99 billion yuan, an increase of 13.13% year-on-year [1] Operational Analysis - Revenue growth was slightly below market expectations, attributed to the delivery and acceptance rhythm of project-based orders; Q3 revenue was 40.3 billion yuan, up 25% year-on-year but down 11% quarter-on-quarter [2] - The inventory at the end of Q3 reached 12.32 billion yuan, a 39.32% increase from the beginning of the year, but a slight decrease of 0.56% from Q2 [2] - The company’s gross margin in Q3 was 29.4%, recovering by 3.4 percentage points quarter-on-quarter, although it decreased by 3.4 percentage points year-on-year; the improvement was due to the recovery of gross margin alongside the growth of liquid cooling products in AI data centers [2] Strategic Partnerships - The company is closely collaborating with major CSPs and will showcase its jointly developed Dechutes 5CDU with Google at the OCP conference, with expectations of new large client acquisitions [3] - The company is also exhibiting quick connectors designed for NVIDIA's MGX, indicating significant potential in the liquid cooling market driven by the AI wave [3] Financial Forecast and Valuation - Projected revenues for 2025, 2026, and 2027 are 63.34 billion yuan, 88.87 billion yuan, and 117.48 billion yuan, respectively, with net profits of 9.14 billion yuan, 13.52 billion yuan, and 19.60 billion yuan [4] - The current stock price corresponds to a PE valuation of 83.35, 56.34, and 38.87 times for the years 2025, 2026, and 2027, respectively, maintaining a "buy" rating [4]

Core Insights - Liou Co., Ltd. is advancing its capital structure optimization and international market integration by applying for a listing on the Hong Kong Stock Exchange, focusing on its dual core businesses of AI digital marketing and smart pumps and systems [1] Group 1: AI Digital Marketing - The AI digital marketing sector is experiencing explosive growth driven by the deepening of the digital economy and advancements in AI technology, positioning Liou Co., Ltd. as a leading player in the domestic market [2] - Liou Co., Ltd.'s AI digital marketing business has achieved the largest revenue scale in China's digital marketing market and has consistently ranked first in the China Academy of Sciences' digital marketing company rankings [2] - The company has developed proprietary models such as "LEOAIAD" and "Liou Unified," embedding them into various marketing workflows to enhance data acquisition and profitability [2] Group 2: Smart Pumps and Systems - Liou Co., Ltd. ranks second in China's pump and system industry and thirteenth globally based on projected 2024 revenue, while being the top exporter in the domestic civil pump sector [3] - The company is innovating in key components like motors and controllers, enhancing its product offerings and creating comprehensive solutions in smart pumps and systems [3] - The liquid cooling market, driven by the surge in data center computing power demand, is projected to grow at a compound annual growth rate of over 32.4% from 2024 to 2029, with liquid cooling pumps expected to grow at 31.8% [4] Group 3: Strategic Initiatives - The listing on the Hong Kong Stock Exchange is a strategic move to enhance the dual core business model, with funds aimed at AI infrastructure, manufacturing technology R&D, and global expansion [4] - The integration of AI technology into smart pumps and systems is expected to position Liou Co., Ltd. as a leading benchmark in the industry, leveraging technological advantages and cost control [4]

Summary of Chuanhuan Technology Conference Call Company Overview - **Company**: Chuanhuan Technology - **Industry**: Liquid Cooling Solutions, Automotive Components Key Points Business Expansion and Revenue Growth - Chuanhuan Technology is actively expanding its liquid cooling pipeline business, collaborating with suppliers such as Electric, Feirongda, and Baode Huannan, and entering markets including energy storage, data centers, rail transportation, oil and gas exploration, and shipping [2][3] - In the first half of 2025, the company reported revenue close to 700 million RMB, an approximate 8% year-on-year increase, with net profit attributable to shareholders around 100 million RMB, remaining stable year-on-year [2][4] - The revenue for Q2 2025 reached 372 million RMB, showing nearly a 10% year-on-year increase and an 18% quarter-on-quarter increase [5] Profitability Metrics - The gross margin for the company is approximately 25%, while the net profit margin is around 14% [5] - The automotive thermal management business is the primary contributor to the company's performance in the first half of the year, aligning with the growth of new energy vehicles and pricing pressures in automotive components [2][5] Market Position and Competitive Advantage - Chuanhuan Technology holds a leading position in the server liquid cooling EPDM pipeline market, benefiting from its experience in new energy vehicle thermal management components and early collaborations with international liquid cooling system giants [2][6] - The company has established strong partnerships with several leading new energy vehicle manufacturers, demonstrating robust cost control capabilities and early engagement with international liquid cooling system manufacturers [6] Future Growth Projections - The company anticipates a compound annual growth rate (CAGR) of approximately 20% in revenue over the next few years, with profit growth expected to reach a CAGR of 25% to 30%, driven by the growth of new energy vehicles and export business, as well as contributions from the liquid cooling business [4][7] - By 2030, the global liquid cooling market for data centers and high-end servers is projected to exceed 100 billion RMB, with Chuanhuan's expertise in EPDM pipelines expected to capture a significant share [4][8] Market Outlook - The overall liquid cooling market is expected to reach 200 billion RMB by 2030, with rapid penetration of liquid cooling in both overseas and domestic computing power sectors [8] - If Chuanhuan Technology successfully enters additional niche markets, such as UQD quick-connect fittings and cold plates, the market potential will further expand [8]

Investment Summary - Company reported a revenue of 13.33 billion yuan for H1 2025, a year-on-year increase of 10.36% [1] - Net profit attributable to shareholders reached 2.05 billion yuan, up 148.72% year-on-year [1] - The second quarter saw a revenue of 7.53 billion yuan, a 13.93% increase year-on-year and a 29.84% increase quarter-on-quarter [1] Price Surge Impact - The average price of refrigerant products increased to 39,372.45 yuan per ton, a rise of 61.88% year-on-year [2] - The price increase in fluorinated refrigerants contributed 2.13 billion yuan to profit, accounting for 73.49% of the profit increase [2] - The company is positioned as a global leader in HFCs production capacity and quotas, indicating a potential for sustained profitability [2] High-Value Product Development - The company leads in the production of fluorinated polymers, which are crucial for high-end applications in aerospace and 5G communications [3] - Plans for expansion include a 10,000 tons/year high-quality melt fluororesin project and a 1,000 tons/year capacity for electronic fluorinated liquids [4] - The company is advancing in the development of fourth-generation refrigerants (HFOs) with a production capacity of approximately 8,000 tons/year [4] Future Growth Projections - Revenue forecasts for 2025, 2026, and 2027 are 26.99 billion yuan, 30.05 billion yuan, and 34.21 billion yuan, respectively, with growth rates of 10.3%, 11.3%, and 13.8% [5] - Net profit projections for the same years are 4.41 billion yuan, 5.09 billion yuan, and 5.83 billion yuan, with growth rates of 125.1%, 15.5%, and 14.5% [5]

Core Viewpoint - The company has not yet entered the liquid cooling market but is closely monitoring developments in this area as AI computing power demands surge [1] Group 1: Market Opportunity - Investors inquired about the rapid growth of the liquid cooling market due to the explosion in AI computing power demand [1] - The company expressed gratitude for the inquiry and indicated that it is paying close attention to market progress [1] Group 2: Technology and Development Plans - The company has not established a presence in the liquid cooling board coating sector and did not provide specific details on its technology layout or development plans in this field [1] - There was no information provided regarding the application of coating technology in liquid cooling servers or its potential to help data centers reduce PUE values [1] - The company did not elaborate on the advantages of its low-energy coating technology in the context of green data center construction [1]

Core Viewpoint - Yongjie New Materials (603271.SH) is actively participating in the liquid cooling market, which includes applications in electric vehicle battery thermal management, energy storage system thermal management, and data center cooling solutions [1] Group 1: Company Developments - The company has achieved stable mass production of liquid cooling plate materials [1] - Yongjie New Materials has entered the supply chain of major domestic manufacturers such as Sanhua Intelligent Controls and Kexin New Energy [1] - The specific end-user applications for these materials are not fully understood by the company [1] Group 2: Industry Insights - The liquid cooling market encompasses various cooling applications, including those for new energy vehicles, energy storage systems, and data centers [1]

Core Viewpoint - Yongjie New Materials (603271.SH) is actively participating in the liquid cooling market, which includes applications in electric vehicle battery thermal management, energy storage system thermal management, and data center cooling solutions [1] Group 1: Company Developments - The company has achieved stable mass production of liquid cooling plate materials [1] - Yongjie New Materials has entered the supply chain of major domestic manufacturers such as Sanhua Intelligent Control and Kechuang New Source [1] - The specific end-user applications for these materials are not fully understood by the company [1] Group 2: Industry Insights - The liquid cooling market encompasses various cooling applications, including those for new energy vehicles, energy storage systems, and data centers [1]

Group 1 - The liquid cooling server concept stocks have strengthened, with significant gains observed in companies such as Shenling Environment, Xinpeng Co., Dayuan Pump Industry, and others [1] - According to Zheshang Securities, the liquid cooling market is expected to grow rapidly, with projected market sizes of approximately 354 billion, 716 billion, and 1082 billion yuan from 2025 to 2027, respectively, and is anticipated to exceed 1000 billion yuan by 2027 [1] - IDC forecasts that the annual compound growth rate of China's liquid cooling server market will reach about 48% from 2025 to 2029, with a market size of approximately 16.2 billion USD by 2028 [1] Group 2 - CITIC Securities indicates that the demand for liquid cooling is driven by the increased thermal design power density of AI servers from companies like Google, Meta, Microsoft, and AWS, along with the continuous release of ASIC chips and NVIDIA GPUs [2] - The penetration rate of liquid cooling is expected to rise significantly, expanding market space as domestic liquid cooling companies demonstrate strong capabilities in technology, product quality, cost, and service [2] - Everbright Securities highlights that with the rapid development of the AI industry, HVDC (High Voltage Direct Current) technology is becoming increasingly advantageous in AI data centers, suggesting a sustained increase in its penetration rate [2]

Summary of Conference Call Records Industry Overview - The liquid cooling market is expected to reach a scale of over 100 billion, driven by advancements in chip technology and increasing computing power demands [1][2] - Liquid cooling technology is gradually replacing air cooling, expanding its application from GPUs to switches and large-scale overseas data centers [2] Key Points and Arguments - **Demand and Supply Dynamics**: - Profit expectations have been revised upwards, leading to changes in supply dynamics. Taiwanese manufacturers are seeking outsourcing opportunities in mainland China, reflecting an urgent demand shift [3][4] - The liquid cooling technology is projected to see rapid penetration in data centers due to lower operational costs (OPEX) and strict energy consumption policies [3][8] - **Market Performance**: - The liquid crystal sector has shown strong performance, with leading companies reaching new highs and new entrants emerging [5] - Companies providing complete product solutions, such as Invec and Shengjing Environment, are seen as having greater commercial potential compared to those offering only a full range of products [5] - **Key Players in the Domestic Liquid Crystal Industry**: - The largest and most comprehensive supplier in the domestic liquid crystal industry has clear overseas order expectations, indicating significant performance elasticity [6] - Adaptation Environment, while smaller than Invec, has potential for growth through Southeast Asian orders and gradual entry into the North American market [6] - **Future Prospects of Key Companies**: - Keke New Source is expected to enter the AV product field and has a partnership with Dongguan Zhaoke for thermal materials, with projected performance exceeding 200 million after integration [7] Additional Important Insights - **Liquid Cooling in Data Centers**: - The application of liquid cooling technology in data centers is essential due to the increasing thermal power of AI chips and the need for lower PUE values [8][9] - The global trend towards stricter energy efficiency standards is pushing the adoption of liquid cooling solutions [8] - **NVIDIA's Liquid Cooling Supply Chain**: - NVIDIA's supply chain is structured in a pyramid, with NVIDIA at the top, followed by OEM and ODM manufacturers, and specialized cooling module suppliers at the base [12] - **Market Trends in North America**: - Major North American cloud providers are accelerating the adoption of liquid cooling solutions, with companies like Meta and Google leading the way [16] - **Impact of Domestic Chip Clusters**: - The iteration of domestic chip clusters is opening new liquid cooling solutions, significantly impacting the global market [17] - **Liquid Cooling in Energy Storage**: - Liquid cooling temperature control systems are becoming mainstream in the energy storage sector, with market share expected to reach 53% by 2024 [20] - **Potential for Data Center Liquid Cooling**: - Data center liquid cooling technology is expected to see both volume and price increases, with companies like Invec and Shengjing Kecai recommended for significant growth [21]