Investment Rating - The report maintains an "Outperform" rating for the fluorochemical industry [5][8]. Core Insights - The fluorochemical industry has shown strong performance, with the fluorochemical index rising by 16.75% in August, outperforming major indices [1][15]. - Main refrigerant prices are expected to continue stable growth, driven by limited supply and strong demand, particularly for R32 and R134a [2][22]. - The development of liquid cooling technology is anticipated to significantly boost demand for fluorinated liquids and refrigerants, as traditional cooling methods become inadequate [4][62]. Summary by Sections 1. Industry Performance - As of August 29, 2025, the fluorochemical index reached 1681.54 points, up 16.75% from the end of July, outperforming the Shenwan Chemical Index by 7.77 percentage points [1][15]. 2. Refrigerant Market Review - R32 prices are projected to rise to 62,000 CNY/ton by November, while R134a is expected to reach 54,000 CNY/ton [2][22]. - Export prices for R32, R22, and R134a as of July 2025 were 46,576 CNY/ton, 26,480 CNY/ton, and 44,598 CNY/ton respectively [2][35]. 3. Liquid Cooling Demand - The shift towards liquid cooling in data centers is driven by increasing power densities, with a projected market size exceeding 100 billion CNY by 2027 [62][66]. - Companies such as Juhua Co., Dongyue Group, and Sanmei Co. are highlighted as key players benefiting from this trend [4][70]. 4. Regulatory Environment - The report discusses China's compliance with the Montreal Protocol, with significant reductions in HCFCs and HFCs production and usage planned for 2025-2030 [71][74]. - The production quota for R22 is set to decrease by 28% compared to 2024, reflecting ongoing regulatory pressures [74][76]. 5. Key Company Forecasts - Juhua Co., Dongyue Group, and Sanmei Co. are recommended as investment targets due to their strong market positions and growth potential in the refrigerant sector [5][8].

Core Viewpoint - BYD Electronics (00285) is adjusting its product mix, with an increase in contributions from the automotive business, but this is offset by underperformance in the components business, leading to an overall gross margin below expectations [1] Group 1: Business Performance - The automotive business is showing an upward contribution, indicating a positive trend in this segment [1] - The components business is performing below expectations, which negatively impacts the overall financial performance [1] Group 2: Future Outlook - The growth outlook for the second half of the year and beyond remains solid, driven by the momentum from the launch of the new foldable iPhone [1] - The AI server business is expected to continue benefiting from the widespread adoption of liquid cooling technology [1] Group 3: Analyst Rating - The firm maintains a "Buy" rating for BYD Electronics, with the target price raised from HKD 41.2 to HKD 51.8 [1]

Core Viewpoint - BYD Electronics (00285) is experiencing a product mix adjustment, with automotive business contributions increasing, but the performance of the components business is below expectations, leading to an overall gross margin that is lower than anticipated [1] Group 1: Business Performance - The automotive segment is showing improved contributions, which is a positive sign for the company's growth [1] - The components business is underperforming, which is negatively impacting the overall gross margin [1] Group 2: Future Outlook - The growth outlook for the second half of the year and beyond remains solid, driven by the momentum from the launch of the new foldable iPhone [1] - The AI server business is expected to continue benefiting from the widespread adoption of liquid cooling technology [1] Group 3: Analyst Rating - The firm maintains a "Buy" rating for BYD Electronics, with the target price raised from HKD 41.2 to HKD 51.8 [1]

Financial Performance - Prologis China reported strong financial performance for the first half of 2025, with revenue reaching 4.224 billion yuan, a 10% increase year-on-year [1] - The core operating profit, measured by EBITDA, was 2.027 billion yuan, showing an increase of over 20% compared to the same period last year [1] - The public REIT, CICC Prologis REIT, generated approximately 216 million yuan in revenue, with a distributable amount of about 167 million yuan, maintaining robust operations [1] Expansion and Development - Prologis is expanding its computing power center, with a significant revenue increase of over 48% year-on-year in the second quarter [2] - The company efficiently delivered multiple intelligent computing projects, including upgrades to data centers in Dongguan and Beijing, enhancing service capabilities for major internet clients [2] - Prologis is actively promoting the standardization of liquid cooling technology and participating in industry standards development [2] Strategic Focus - The company emphasizes efficient, smart, and green operations, focusing on industrial upgrades and zero-carbon transformation to enhance service capabilities [3] - Prologis aims to solidify its delivery and service capabilities, leveraging leading infrastructure to empower clients' high-quality growth and create long-term value for investors [3]

Omdia Research数据显示，到2028年，全球数据中心液冷市场将达到168亿美元，年复合增长率为25%。 而在中国，据科智咨询预计，到2027年，随着Al系列应用的规模化落地以及液冷生态的日趋成熟，市场 规模有望突破千亿大关。 此外，中信证券研报中曾提到，在数据中心算力提升和能耗降低推动下，液冷技术将加速替代风冷技 术，成为新的技术发展方向。 伴随着液冷在数据中心中的发展，液冷产业也逐渐趋于细分化，产业链逐渐得以完善。最明显的一个变 化就是，原先各类数据中心大会上，很少有出现液冷技术的身影，即便有出现，也大多存在于演讲PPT 之中，以及一些整机柜的展示环节中。 但从去年开始，各类数据中心相关的大会上，除了液冷机柜的展示之外，越来越多产业上下游的零部件 厂商开始活跃起来，冷却液、UQD接头、水凝管等液冷下游的零部件厂商也在不断的更新迭代自己的 产品。 数据中心步入液冷时代 液冷在数据中心开始大范围应用的起点，可以追溯到2020年前后。在ChatGPT尚未问世之前，数据中心 还是以通用的CPU服务器为主，功率基本集中在3kW左右。 彼时的数据中心在刚刚起步的"双碳"战略的推动下，刚刚开始绿色化技术，而供 ...

Summary of Industrial Fulian Conference Call Industry and Company Overview - The conference call focuses on **Industrial Fulian**, a company benefiting from the surge in demand for **AI servers**, particularly those utilizing **NVIDIA GPU** technology. [2][4] Key Points and Arguments 1. **Profit Contribution from AI Servers**: Industrial Fulian is expected to generate a net profit of **350-400 billion CNY** from AI servers by **2026**, significantly supporting its target market capitalization of **1.2-1.5 trillion CNY**. [2][3] 2. **NVIDIA's Blackwell Platform**: The demand for NVIDIA's **Blackwell platform** is strong, with production capacity reaching **1,000 cabinets per week**. The transition to the **GB300** model is expected to be smooth, with additional capacity coming online in the third quarter of **2025**. [4] 3. **Market Demand Forecast**: NVIDIA anticipates **650-700 million** chips to be shipped in **2025**, with over **80%** of these being from the Blackwell architecture. The overall industry shipment is projected to be between **96,000 to 120,000 units** in **2026**. [5] 4. **Liquid Cooling Technology**: The introduction of **liquid cooling technology** is accelerating, with the **GPU300** power consumption exceeding **3,000 watts**. This is expected to benefit Industrial Fulian and related server manufacturers. [6] 5. **AMD's AI Developments**: AMD plans to launch its first AI rack, named **"Black Bull"**, in **2026**, with expectations of over **$10 billion** in AI revenue for the year, indicating a competitive landscape in the AI sector. [7] 6. **Google's ASIC Products**: Red Sea is expected to introduce Google’s **ASIC products** in **2026**, expanding its partnerships and benefiting from Google's growth in the ASIC market. [8][9] 7. **Major Players' Market Expectations**: Google forecasts a demand for **1.5-2 million** GPUs in **2025**, while Meta and Amazon have similar ambitious targets, indicating a rapidly growing market. [11] 8. **Internet Giants' CAPEX Expectations**: Major internet companies have reported better-than-expected earnings and have raised their **CAPEX** forecasts for **2025**, with Google increasing its CAPEX from **$75 billion to $85 billion**. [12] 9. **Sovereign Investment in AI**: Sovereign nations are significantly investing in AI, with NVIDIA projecting **$20 billion** in sovereign AI revenue for **2025**, and the EU planning to invest **€20 billion** in AI factories. [13] Additional Important Insights - **Cabinet Production and Profitability**: Industrial Fulian's expected cabinet shipments for **2026** range from **80,000 to 100,000 units**, with a potential net profit per cabinet exceeding **900,000 CNY** due to the introduction of liquid cooling and new materials. [16] - **Risks and Challenges**: The company faces risks from macroeconomic factors affecting downstream demand, the competitive landscape in the AI industry, and potential market disruptions. [16]

Summary of Conference Call on Liquid Cooling Solutions Industry Overview - The conference call primarily discusses the advancements in liquid cooling technology, particularly focusing on NVIDIA's upcoming product lines, including the Rubin and Archer series, which are set to be showcased and mass-produced in 2026 and 2027 respectively [1][2][7]. Key Points and Arguments - **Liquid Cooling Technology Adoption**: NVIDIA's Rubin series will utilize liquid cooling technology, including electronic fluorinated liquids and phase change cooling plates, with expected mass production of the Ruby series in late 2026 and Archer series in late 2027 [1][2][4]. - **Power Density Achievements**: The B200 and B300 NVL72 cabinets achieve power densities of 132 kW and 142 kW respectively, with potential future enhancements to exceed 300 kW through immersion cooling methods [1][4]. - **Cooling Medium Usage**: The Rubin dual-side cooling plates will use propylene glycol as a cooling medium, with a volume requirement of 60-70 liters. The main application will be polyether electronic fluorinated liquids, which are environmentally friendly [3][14][15]. - **Cost Structure**: NVIDIA maintains the cost of liquid cooling systems at 6%-7% of total system costs. For example, the liquid cooling portion of the B200 NVL72 cabinet is estimated at $100,000 to $110,000, while the total cabinet price is around $3 million [21]. - **Market Share and Partnerships**: Delta is projected to increase its market share in the CDU market from 0% to 2% in 2024 through collaboration with NVIDIA. The B300 cabinet is expected to have a shipment volume of 30,000 to 35,000 units, with Delta aiming for a 5% share [23][29]. Additional Important Insights - **Technological Variations**: The Rubin series may adopt electronic fluorinated liquids and phase change cooling technology, while the Archer series is exploring various cooling methods, including immersion cooling [4][7]. - **Environmental Considerations**: The use of electronic fluorinated liquids is highlighted for its low boiling point and favorable environmental indicators, contrasting with other cooling mediums like silicone oil, which, while cheaper, has higher viscosity and energy demands [19][20]. - **Future Developments**: The finalization of cooling solutions is expected by early 2026, with ongoing testing of various technologies by leading manufacturers [7][8]. - **Domestic Market Dynamics**: The domestic electronic fluorinated liquid market is still developing, with new entrants like Sinochem and Dongyangguang showing promise, although environmental concerns exist with some products [22][30]. This summary encapsulates the critical aspects of the conference call, focusing on the advancements in liquid cooling technology, market dynamics, and environmental considerations.

Summary of Conference Call on Liquid Cooling Technology Industry Overview - The liquid cooling technology is emerging as a key driver in the energy sector, following light modules and PCBs, with a consensus that the liquid cooling segment is about to explode, presenting a vast market opportunity [1][2][3] Key Insights and Arguments - The liquid cooling market is expected to reach a scale of hundreds of billions by 2026, with the energy market potentially expanding to thousands of billions by 2027, indicating significant investment opportunities [2][4] - Taiwanese companies currently hold a competitive advantage in the liquid cooling product segment, particularly in the cold plate area, capturing 30%-40% of the value. However, A-share listed companies have opportunities in the remaining 60%-70% of the market, including CPU connectors and piping [1][5] - Domestic companies like Alibaba and ByteDance are actively investing in liquid cooling technology, with Invec being highlighted as a leading player with a comprehensive product range and significant market share in GPU and Ethereum sectors [1][6][7] Market Dynamics - The main market debate centers around the competitive landscape of the energy sector and whether A-share companies can secure a significant market share. As the liquid cooling industry continues to evolve, A-share companies are expected to gain competitive advantages [3][4] - The demand for liquid cooling technology is driven by the increasing power consumption of new generation chips, such as the GB300, which has a power consumption close to 2000 watts, necessitating advanced cooling solutions [9][10] Technological Developments - Current liquid cooling solutions primarily utilize water-based solutions, but future applications may shift towards fluorinated liquids due to their higher boiling points and stability compared to flammable organic silicone oils [10] - The development of the Robin chip and its associated equipment is underway, with production ramping up for related devices, indicating a growing need for advanced cooling technologies [8] Future Trends - The liquid cooling market is projected to grow rapidly, with estimates suggesting it could reach several hundred million RMB this year, close to a thousand billion next year, and potentially several thousand billion in the following years [4][13] - Domestic manufacturers across various segments, including cold plates, CDU piping, quick connectors, and data center operators, are expected to benefit from this growth trend, making them attractive investment targets [13] Additional Insights - The domestic computing power industry is undergoing rapid iteration, with significant capital expenditures reported by major players like Alibaba, which saw a 219% year-on-year increase in Q2 capital expenditures to 38.676 billion RMB [4][11] - The introduction of protocols like OSI2.0 by China Mobile is expected to accelerate the development of domestic super node clusters, further enhancing the liquid cooling market's potential [11][12]

Summary of Liquid Cooling Market Insights and Immersion Solutions Outlook Industry Overview - The report focuses on the liquid cooling market, particularly in data centers, highlighting the transition from air cooling to liquid cooling due to increasing power density and energy efficiency needs [1][4]. Key Insights and Arguments - **NVIDIA's GB300 Cabinet**: The acceleration in the deployment of NVIDIA's GB300 cabinets is a significant driver for the liquid cooling market, with each cabinet's cold plate value exceeding 250,000 RMB due to enhanced cooling efficiency [1][2]. - **Market Growth**: The global liquid cooling market is projected to reach 80 billion RMB in 2026 and 140 billion RMB in 2027, with cold plate solutions currently dominating the market [1][6]. - **Cooling System Architecture**: Liquid cooling systems are divided into primary and secondary sides, with key components including cooling towers, chillers (40%-45% of primary side costs), CDU, and cold plates [1][5]. - **Power Density and PUE**: The transition to liquid cooling is driven by the need to reduce Power Usage Effectiveness (PUE), as 43% of data center energy is used for cooling [4]. Emerging Trends - **Shift to Immersion Cooling**: The introduction of NVIDIA's RUC series cabinets is expected to expand the market for immersion cooling solutions, which offer better heat dissipation but come with risks such as liquid leakage and environmental concerns [3][11]. - **Domestic Companies' Performance**: Domestic liquid cooling companies like Shunling Environment and Tongfei Co. are transitioning from other temperature control industries and are showing strong performance in the CDU sector [3][9]. Market Dynamics - **Catalysts for Growth**: The recent surge in market sentiment for liquid cooling is attributed to clearer capital expenditure guidance from major cloud providers like Google, Microsoft, and Meta, alongside the rapid growth in global liquid cooling material demand [2][10]. - **Competitive Landscape**: Taiwanese companies have advantages due to established relationships with top overseas chip clients, but domestic companies are poised to expand internationally, leveraging their technological strengths [10]. Cost Considerations - **Cooling Liquid Costs**: Each cabinet requires approximately 1,000 liters of cooling liquid, costing around 400 to 500 RMB per liter, leading to significant overall costs for liquid cooling systems [8]. Environmental Considerations - **Cooling Liquid Types**: The report discusses various types of cooling liquids, including hydrocarbon, organosilicon, and fluorocarbon compounds, highlighting the environmental challenges associated with fluorinated compounds [12][13]. Future Outlook - **Investment Opportunities**: The liquid cooling sector is expected to present long-term investment opportunities due to evolving supplier dynamics, new project increments, and technological advancements [14][15].

Summary of Key Points from the Conference Call Records Industry and Company Involved - The conference call records focus on Alibaba and the domestic AI industry, particularly the cloud computing and AI infrastructure sectors. Core Insights and Arguments - Alibaba Cloud's revenue growth in Q2 reached 26%, significantly up from 18% in Q1, driven primarily by AI-related public cloud growth, indicating a positive cycle in domestic AI investment [1][2][6] - Alibaba's total capital expenditure for Q1 of FY2026 was 38.676 billion yuan, a year-on-year increase of 219.79%, far exceeding market expectations, showcasing the company's strong commitment to AI investment [2][3][7] - The company plans to invest over 380 billion yuan in the next three years to build cloud computing and AI infrastructure, reflecting its confidence in AI development despite previous challenges like chip shortages [3][4][7] - Global AI development is experiencing a resonant trend, with major tech giants like Google, Meta, and Alibaba showing strong momentum, indicating a maturing demand side for AI [5] Additional Important Content - Alibaba Cloud's AI-related product revenue has seen triple-digit year-on-year growth for eight consecutive quarters, with the global infrastructure expanding to 29 regions and 89 availability zones [1][6] - The self-developed PPU chip by Alibaba has high power consumption, leading to the adoption of liquid cooling technology, which is expected to see explosive growth starting in 2026, with a total market size projected to reach hundreds of billions [1][9] - Domestic companies related to the AI supply chain, such as Ruijie Networks, Kete Power, and Huagong Technology, have reported strong performance, benefiting from Alibaba's significant investments [1][13] - Key suppliers for Alibaba in various sectors include: - Power supply: Zhongheng Electric for HVDC, Kete Power, and Weichai Heavy Industry for diesel generators [10] - Networking: Ruijie Networks as a core supplier for switches, along with other companies like Ziguang and ZTE [11] - IT equipment: Partnerships with Haiguang Information and Cambrian for AI chips, and Inspur for AI servers [12]