Core Insights - The fourth South China Liquid Cooling Heat Dissipation Series Annual Conference was held in Dongguan, gathering top companies and technical experts in the liquid cooling field to discuss the latest advancements and application trends in liquid cooling technology [1] - Wanyu Technology, a leader in Friction Stir Welding (FSW) technology, showcased its innovations and hosted a forum on AI high-power electronic cooling and chip liquid cooling technology [1][5] Industry and Company Summary - FSW technology is driving innovation in the liquid cooling sector, with Wanyu Technology successfully applying this technology in the manufacturing of liquid cooling systems [5][7] - The advantages of FSW technology include high-quality welds, minimal deformation, and the absence of pores and cracks, making it particularly suitable for applications requiring high sealing and cooling efficiency [7][10] - Wanyu Technology demonstrated its FSW technology applications across various scenarios, including liquid cooling radiators, server cooling systems, and thermal management systems for new energy vehicles [8][9] - The core advantages of Wanyu Technology's FSW in liquid cooling include: 1. Solid-state welding, which avoids the heat-affected zone of fusion welding, maintaining the mechanical properties of materials [10] 2. High-precision processing that supports complex flow paths, optimizing thermal conductivity [11] 3. Compatibility with multiple materials, allowing for welding of dissimilar metals and addressing brittleness issues in traditional welding [12] 4. Lifecycle cost efficiency, eliminating the need for welding materials and maintenance [13]

Group 1: Business Growth Drivers - The company's business growth is primarily driven by two segments: semiconductor packaging materials and high-margin smart card services, with significant year-on-year increases in both areas [1][2]. - The smart card business is expected to be the main revenue source, with projected revenue of 3.60 billion in 2024, widely used in mobile communications, financial payments, and public services [1][2]. Group 2: Production Capacity and Utilization - The production capacity utilization rate is between 70%-90%, with external sales accounting for over 60% of the business [2]. - The company has four production bases for smart cards located in Shenzhen, Indonesia, India, and Ningbo, with plans to optimize production efficiency and integrate the supply chain [2][3]. Group 3: Semiconductor Packaging Materials - The core customers for semiconductor packaging materials are well-known domestic power semiconductor packaging companies, with ongoing expansion into overseas markets [3][4]. - The sales revenue for semiconductor packaging materials is projected to grow by 467.80% year-on-year in 2024, with a further increase of 236.78% in Q1 2025 [4]. Group 4: Liquid Cooling Technology - The liquid cooling business focuses on AI servers and high-performance computing, with products designed to meet stringent cooling requirements [5][6]. - The global liquid cooling market is expected to grow at an annual rate of over 20% in the next five years, driven by increasing demand for high-performance cooling solutions [6][7]. Group 5: Smart Safety Solutions - The smart safety business includes a safety barrier project aimed at enhancing passenger safety at high-speed rail stations, utilizing a "platform length pricing" model [7]. - The project is expected to create new revenue streams as it aligns with national safety upgrade demands and has significant market value potential [7]. Group 6: Future Business Directions - The company plans to optimize product structure based on market demand, focusing on maintaining a strong market share in smart cards while expanding into semiconductor packaging materials and smart safety technologies [8]. - The company is cautious about mergers and acquisitions, prioritizing stable growth and risk assessment before pursuing any opportunities [8].