Summary of Refrigerant Industry Conference Call Industry Overview - The refrigerant industry in China is experiencing stable quota policies, with the total quota for 2026 remaining the same as in 2025, while quotas for R25 and R41 are increased to compensate for the exit of 141B from the market, leading to an expected continuous rise in overall prices [1][3][18]. Key Points and Arguments Quota Adjustments and Price Trends - The quota for 232 types of refrigerants can be flexibly adjusted between 10% and 30%, allowing companies to respond to market demand while maintaining overall price increases under national control [1][4]. - The average price of third-generation refrigerants is approximately 50,000 yuan, with a long-term stable upward trend, although short-term volatility is expected for products like R32 [1][6]. Demand from Downstream Sectors - Despite a downturn in the global real estate market, demand for refrigerants in downstream sectors such as air conditioning and refrigeration continues to grow, with annual growth in new air conditioning units projected at 8% to 15% [1][7][12]. - Approximately 80% of new air conditioning units still utilize third-generation refrigerants, indicating a stable demand growth in the air conditioning market [8][12]. Future Production Capacity - An estimated 100,000 tons of new production capacity is expected to be launched in the Middle East and India by 2026, which could alleviate supply-demand tensions, although the success rate of these projects is anticipated to be below 40% [1][9][11]. Liquid Cooling Technology Impact - Liquid cooling technology is significantly increasing the demand for third-generation refrigerants, particularly in the semiconductor industry, with expected annual demand reaching tens of thousands of tons [1][14]. Second and Fourth Generation Refrigerants - The second-generation refrigerants are facing quota reductions, while the fourth-generation refrigerants currently lack formal domestic production capacity, with large-scale production expected only after 2030 [2][15]. - The price of second-generation refrigerants is expected to stabilize, while fourth-generation refrigerants are projected to see a rapid increase in application in air conditioning systems, reaching 20% by 2025 [20][21]. Additional Important Insights - The actual usage of refrigerants globally is around 23,000 tons, with a mismatch between planned production capacity and actual demand [17]. - The overall price trend for refrigerants is expected to maintain a 30% increase before 2029, driven by technological advancements and market demand changes [25]. - The current average price for second and third-generation refrigerants is about 80,000 yuan per ton, nearing a peak, with a potential ceiling at 100,000 yuan [23][24]. This summary encapsulates the key insights from the refrigerant industry conference call, highlighting the current state, future expectations, and underlying dynamics affecting the market.

Core Viewpoint - The refrigerant industry is experiencing a continuous upward trend in prosperity due to supply reductions and steady recovery in demand, leading to significant profit growth for leading companies in the sector [3]. Group 1: Supply and Demand Dynamics - In 2025, the production quotas for second-generation fluorinated refrigerants will be further reduced, and third-generation refrigerants will implement production quotas, tightening the supply side of the industry [3]. - The steady recovery in downstream demand is optimizing the supply-demand landscape for refrigerants, resulting in continuous price increases for refrigerant products [3]. Group 2: Profit Growth of Leading Companies - In the first half of 2025, leading domestic refrigerant companies reported substantial year-on-year net profit growth: Juhua Co. +146.97%, Sanmei Co. +159.22%, Yonghe Co. +140.80%, and Dongyue Group +153.28% [3]. Group 3: AI Computing Power and Liquid Cooling Demand - The rapid growth in AI computing power demand is driving the need for liquid cooling solutions, prompting fluorochemical companies to accelerate their layout in the liquid cooling industry [4]. - Juhua Co. is advancing the "Juxin Cooling Liquid" project with a planned capacity of 5,000 tons/year, while Sanmei Co. is enhancing its integrated fluorochemical project in Chongqing [4]. Group 4: Liquid Cooling Technology Overview - Liquid cooling technology is an efficient heat dissipation solution using liquid as a cooling medium, offering advantages such as energy savings (PUE 1.1-1.25) and high-density cooling (supporting 30kW/rack) compared to air cooling [5]. - The main forms of liquid cooling technology are cold plate and immersion cooling, which are expected to see rapid growth as computing power continues to increase [6]. Group 5: Market Growth Projections - The global liquid cooling market is projected to grow significantly, with expected market sizes of $2.9 billion in 2023 and $3.6 billion in 2024, reaching $4.5 billion by 2025 and $19.4 billion by 2032, indicating a CAGR of 23% from 2025 to 2032 [6].

Group 1 - The demand for liquid cooling technology in data centers is rapidly increasing, transitioning from an optional to a necessary solution due to the explosive growth of AI computing power requirements [1] - Liquid cooling technology offers significant advantages such as efficient heat dissipation, energy savings, and noise reduction, making it suitable for high-density computing scenarios [1] - Trend Force predicts that the global adoption rate of liquid cooling in data centers will rise from 14% in 2024 to 26% in 2025, with the liquid cooling market in China expected to exceed 100 billion yuan by 2027 [1] Group 2 - The liquid cooling data center industry chain includes upstream components, midstream servers and infrastructure, and downstream data centers [2] - Several listed companies are actively investing in and promoting liquid cooling technology, with some offering comprehensive liquid cooling solutions across the entire value chain [2] - Companies like Kehua Data Co., Ltd. and Guangzhou High Cloud Energy Saving Technology Co., Ltd. are developing and providing various liquid cooling solutions, emphasizing their commitment to capturing market opportunities and driving growth in liquid cooling business [2]

Group 1: Company Overview and Market Position - Gaolan Co. provides various liquid cooling solutions for data centers, including cold plate and immersion cooling technologies, with a focus on comprehensive solutions from design to operation [2][10] - As of June 30, 2025, the company has an order backlog of approximately 1.139 billion yuan [2][11] - The company has established operational subsidiaries in Singapore and the United States to expand its overseas market presence, targeting Southeast Asia and North America [3][8] Group 2: Financial Performance - In the first half of 2025, the company achieved a net profit of 22.93 million yuan, representing a year-on-year increase of 1438.57% [4] - Revenue from high-power density thermal management solutions in the data center and energy storage sectors reached 136,958,047.52 yuan, accounting for 32.78% of total revenue [3] Group 3: Technological Capabilities - The company has over 20 years of experience in the liquid cooling sector, with products that meet domestic and some international advanced standards [4][8] - Gaolan Co. emphasizes its independent innovation capabilities and has a complete R&D, design, manufacturing, marketing, and after-sales service system [6][8] Group 4: Market Strategy and Future Plans - The company plans to leverage its first-mover advantage in liquid cooling technology to enhance product performance and quality while increasing overseas market investments [8] - Future expansions will focus on direct current transmission, offshore wind power, data centers, and new energy storage sectors [3][8] Group 5: Customer Engagement and Orders - The company is actively pursuing orders in the North American market, particularly in the computing power sector, through its newly established subsidiary [8] - Specific customer relationships and order details are to be disclosed in future company announcements [5][6][10]

Group 1 - The company held a performance briefing on September 19, engaging with investors regarding capacity, product evaluation, utilization rates, AI layout, and revenue [1] - The company is currently constructing fundraising projects expected to be operational by the first half of next year, with sufficient orders and normal production operations [1] - The company’s AI-related products, such as data communication connectors, have been certified by major clients like AMD and Lenovo, indicating progress in domestic substitution [1] Group 2 - The main products of the company include consumer electronics connectors, new energy vehicle connectors, data communication connectors, and optical lenses, aimed at various sectors including consumer electronics and new energy vehicles [2] - The company plans to enhance its core competitiveness through stable operations and the release of capacity from convertible bond fundraising projects, focusing on technology upgrades and market demand [2]

Investment Rating - The industry investment rating is "Overweight," indicating that the industry is expected to outperform the overall market [9]. Core Insights - The report highlights the emergence of Micro-Channel Liquid Cooling Plate (MLCP) technology as a critical solution for managing the heat generated by high-power chips, particularly in the context of Nvidia's new platforms [3][4]. - MLCP technology utilizes micro-scale fluid channels to achieve efficient heat exchange, capable of handling over 2000W of thermal power and extreme heat flux densities exceeding 1kW/cm², surpassing traditional cooling methods [4]. - The report identifies several companies that are well-positioned to benefit from advancements in liquid cooling technology, including Jiangshun Technology, Yingweike, and Kangsheng Co., among others [4]. Summary by Sections Industry Overview - The MLCP technology is designed to address the challenges posed by ultra-high power chips, featuring micro-channel designs that enhance heat dissipation efficiency [4]. - The manufacturing processes for MLCP include etching, 3D printing, and stamping, each with its advantages and limitations regarding precision and cost [4]. Key Companies - Jiangshun Technology: Expected to expand into data center cooling solutions [4]. - Yingweike: A leading enterprise in the liquid cooling industry with a patent for micro-channel cooling plates [4]. - Kangsheng Co.: A leader in heat exchangers and micro-channel technology [4]. - Other notable companies include Nanfeng Co., Huazhu High-Tech, and Yinhong Co., which are also making strides in this sector [4]. Financial Projections - Jiangshun Technology is projected to have a net profit of 1.55 billion in 2024, with a PE ratio of 31 [5]. - Yingweike's net profit is expected to rise to 6.36 billion in 2025, with a PE ratio of 119 [5]. - Other companies like Yinhong Co. and Nanfeng Co. are also forecasted to show significant growth in net profits over the coming years [5].

Core Viewpoint - Xiangxin Technology held an online performance briefing on September 19, 2025, discussing its business strategies and future outlook, particularly in the energy storage and robotics sectors [1] Group 1: Energy Storage and Robotics - The company signed energy storage orders focusing on commercial energy storage needs, emphasizing safety and longevity, with a competitive edge in a growing market over the next six years, but did not specifically compare its products to Tesla's [1] - Xiangxin Technology holds a 1.25% stake in Nuwa Robotics, which combines software tools with cost-effective hardware to provide multi-scenario solutions, having secured partnerships with major firms like SoftBank [1] - The second-generation dexterous hand is ready for mass production, designed to adapt to production line needs, but the monthly shipment volume was not disclosed [1] Group 2: Capacity Expansion and Production Planning - The company is implementing a dual-engine mechanism focusing on core business improvement and capturing emerging opportunities, with strategic directions including low-altitude economy [1] - Xiangxin Technology is establishing dedicated production lines for liquid cooling technology and dexterous hands, preparing for large-scale production [1] - The company supplies lightweight automotive structural components to clients in China and Mexico, while also focusing on the development of the robotics industry [1] Group 3: Financial Performance and Market Strategy - Specific details regarding the orders and revenue proportions for robotics and liquid cooling products were not disclosed due to confidentiality [1] - The company has developed a micro-channel liquid cooling module for servers, featuring a 0.15mm channel width and a 250% increase in heat exchange area [1] - The company aims to enhance operational efficiency and resilience against risks by focusing on core business and optimizing product structure in the second half of the year [1] Group 4: Future Business Outlook - The company plans to solidify its automotive and photovoltaic storage businesses while expanding into computing servers and humanoid robotics, currently engaging with leading companies in these sectors [1] - Future revenue contributions from humanoid robotics and liquid cooling products over the next three to five years were not specified [1] - The company is collaborating with major international clients, including Benteler and Faurecia, across various industries, but specific order details remain undisclosed [1]

Core Viewpoint - Xiangxin Technology (002965.SZ) is focusing on the robotics sector, particularly in dexterous hands and lightweight robotic arms, and has successfully launched its second-generation dexterous hand product [1] Group 1: Robotics Business - The company has established deep partnerships with leading domestic and international robotics firms [1] - To meet future market demands, the company is constructing dedicated production lines for dexterous hands and specialized factories for computing power servers [1] - The company has successfully launched a second-generation dexterous hand product [1] Group 2: Liquid Cooling Solutions - The company supplies liquid cooling server products to firms such as Super Fusion, Huakun Zhenyu, and ZTE Kangxun [1] - It has developed liquid cooling solutions suitable for both vehicle-mounted and computing power servers, with the vehicle-mounted liquid cooling system already achieving large-scale application [1]

Group 1: Company Overview and Activities - The company is named Chongqing Meilixin Technology Co., Ltd., with stock code 301307 [1][2] - The investor relations activity took place on September 18, 2025, in the company meeting room [3] Group 2: Robotics and Semiconductor Development - The company is actively developing humanoid robot shells and components, aligning with industry demand and customer needs [3] - In May 2025, the company established Chongqing Yulai Sheng Precision Technology Co., Ltd. to provide precision components for the semiconductor sector [4] Group 3: North American Operations - The North American factory is preparing for production, including facility renovations and equipment procurement [5] Group 4: Liquid Cooling Technology - The company has developed aluminum alloy components for liquid cooling, primarily used in charging stations and next-generation communication products [6] Group 5: Customer Expansion in 2025 - In the first half of 2025, the company entered the supply chain of major clients like Nokia in the communication sector and secured contracts in the semiconductor and energy storage fields [7] Group 6: Shanghai Operations - Shanghai Meilixin is providing thermal management solutions, including liquid cooling technology, tailored to customer requirements [8]

Core Insights - The construction of electric vehicle charging infrastructure in China is experiencing significant growth, with a total of 17.348 million charging points as of August 2025, representing a year-on-year increase of 53.5% [2] - Public charging facilities have reached 4.316 million, up 37.8% year-on-year, while private charging facilities have surged to 13.032 million, marking a 59.6% increase [2][3] Infrastructure Development - The rapid development of charging infrastructure is alleviating "range anxiety" and "charging anxiety" for electric vehicle users, moving towards a scenario where charging is as convenient as refueling [3] - China has established the world's largest electric vehicle charging network, with public and private charging points developing in tandem [3][4] - Key cities like Shenzhen, Shanghai, and Beijing are leading the way in building a comprehensive charging network that includes supercharging stations, community chargers, and destination charging points [4] Market Dynamics - The domestic electric vehicle market is witnessing substantial growth, with cumulative sales surpassing 40 million units, maintaining the world's highest production and sales for ten consecutive years [5] - Car manufacturers are incentivizing consumers by offering free home charging stations as part of vehicle purchase packages, thereby increasing the installation rate of private charging points [5] Technological Advancements - The electrification of public transport and logistics vehicles is driving the demand for specialized charging stations, while advancements in liquid cooling technology are enhancing charging efficiency and user experience [6] - The charging infrastructure industry is thriving due to collaboration across the supply chain, with upstream material and equipment suppliers focusing on improving technology and reliability [6] Policy and Regulation - A unified national charging infrastructure information monitoring platform has been established to optimize resource allocation and enhance the efficiency of charging station operations [7] - The integration of AI algorithms in charging facility operations is improving service quality and operational efficiency [7] Future Outlook - Experts predict ongoing advancements in charging technology and the integration of big data and IoT, leading to transformative changes in operational models [8] - The commercialization of vehicle-to-grid (V2G) technology is expected to create a new era of energy interaction, where users can also act as energy producers [9] - The successful experience of China's charging infrastructure development reflects the broader transition of the electric vehicle industry from follower to leader on the global stage [9]