Core Viewpoint - The company is focusing on providing AI server testing equipment to overseas major clients, incorporating self-developed liquid cooling solutions and accumulating relevant technical reserves and solutions [1] Group 1 - The company is actively engaging with customer feedback regarding component needs and collaboratively researching to develop solutions [1] - The strategy aims to fulfill customer demands and implement the company's service strategy for major clients [1] - The company is seeking a strategic transition from equipment supply to component supply [1]

Core Viewpoint - The company plans to issue shares to a limited number of specific investors, raising up to 466 million yuan for various projects and working capital [1] Group 1: Share Issuance Details - The company intends to issue shares to no more than 35 specific investors, including securities investment fund management companies, securities companies, and trust companies [1] - The issuance price will not be lower than 80% of the average trading price of the company's shares over the 20 trading days prior to the pricing benchmark [1] - The total amount of funds raised will not exceed 466 million yuan [1] Group 2: Use of Proceeds - The funds will be allocated to the Vietnam thermal products project, the liquid cooling research and development center project, the information system construction project, and to supplement working capital [1] Group 3: Control and Ownership - The completion of this issuance will not result in any changes to the company's controlling shareholder or actual controller [1]

Group 1 - The overall Server market is stabilizing, with ODMs focusing on AI Server development, particularly with NVIDIA's new Blackwell platform products [1] - TrendForce estimates that Blackwell GPUs will account for over 80% of NVIDIA's high-end GPU shipments this year [1] Group 2 - North American CSP giant Oracle is expanding its AI data centers, benefiting companies like Foxconn, Supermicro, and Quanta [2] - Supermicro's growth this year is primarily driven by AI Servers, having secured some GB200 Rack projects [2] - Quanta has successfully expanded its GB200/GB300 Rack business due to collaborations with major clients like Meta, AWS, and Google, along with Oracle orders [2] - Wiwynn is deepening its partnerships with Meta and Microsoft, expecting performance growth in the second half of the year, focusing on ASIC AI Servers [2] Group 3 - The expansion of AI data centers will be crucial for the scaling of the liquid cooling industry [2] - Liquid cooling solutions are increasingly being adopted for high-end AI chips, with new data centers incorporating "Liquid Cooling Ready" designs to enhance thermal management efficiency [2] Group 4 - Liquid cooling is becoming a standard configuration for high-performance AI data centers, driving demand for cooling components [4] - Fositek has begun shipping components for the GB300 platform, competing with Danfoss in the supply of quick connectors for AWS ASIC liquid cooling [4] - Auras is actively entering the data center liquid cooling market, with its business becoming a core growth driver, serving major clients like Oracle, Supermicro, and HPE [4] - Auras has started supplying liquid cooling products to Meta, establishing a foundation for future participation in the GB200 platform's liquid cooling supply chain [4]

Investment Rating - The investment rating for the company is maintained as "Buy" [2] Core Views - The company is expected to achieve a significant increase in net profit for the first half of 2025, with estimates ranging from 583 to 663 million yuan, representing a year-on-year growth of 157% to 193% [7] - The price of refrigerants continues to rise, supported by strong demand and improved industry dynamics, which is expected to enhance profitability [7] - The company has launched an employee stock ownership plan to boost employee motivation and long-term development [7] - The company is actively expanding into the liquid cooling and robotics sectors, with established partnerships and initial revenue generation from these new business lines [7] Financial Data and Profit Forecast - Total revenue is projected to grow from 12,199 million yuan in 2024 to 16,965 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 10.1% [6] - The net profit attributable to the parent company is forecasted to increase from 1,415 million yuan in 2025 to 2,137 million yuan in 2027, reflecting a strong growth trajectory [6] - The earnings per share (EPS) is expected to rise from 0.47 yuan in 2025 to 0.71 yuan in 2027 [6] Business Developments - The company has established a joint venture to focus on integrated liquid cooling solutions, leveraging its capabilities in core materials and components [7] - The company has entered the humanoid robotics market, achieving initial revenue and securing significant orders for its products [7] - The production capacity for laminated and formed foils is steadily increasing, benefiting from the growing demand in the data center and energy storage sectors [7]

Group 1: Company Overview and R&D Investment - The company positions technological innovation as its core competitiveness, maintaining a certain proportion of investment in basic research and core technologies based on business development needs [1] - R&D investment has shown a declining trend over the past three years, with future allocations to be dynamically optimized based on market feedback, technological advancements, and financial conditions [1][2] Group 2: Semiconductor Business - The semiconductor product capacity utilization rate is currently low, with revenue primarily dependent on smart card business; future plans include increasing capacity utilization and revenue from semiconductor packaging materials [2] - In 2024, semiconductor and packaging materials are expected to account for approximately 10% of total revenue, with significant revenue growth anticipated in Q1 2025 [2] Group 3: Profitability and Market Strategy - Different semiconductor products exhibit varying gross profit margins, with lead frames around 20% and copper bases reaching 20%-30% [2] - The company aims to promote high-performance products like copper needle-type heat dissipation bases to leading power module clients, adjusting order volumes based on client project timelines [2] Group 4: Smart Safety and Super SIM Card Business - The smart safety business focuses on digital information security, targeting transportation safety applications with multiple patents and a high industry entry barrier [3] - The super SIM card business leverages long-term experience in smart cards, showing advantages in speed, convenience, and system integration, with stable partnerships established with major domestic operators [4][5] Group 5: Liquid Cooling Technology - The liquid cooling products utilize self-developed high-performance manufacturing processes, showing advantages in structure integration, thermal conductivity, and pressure resistance [5] - The company is preparing for mass production of liquid cooling products, with market demand driven by AI servers and high-performance computing [6][7] Group 6: Future Plans and Market Position - The company plans to continue optimizing product structure based on market demand, focusing on semiconductor packaging materials, digital and energy thermal management, and smart safety technologies for new growth points [10] - Future liquid cooling business will explore chip-level thermal management solutions, aiming for deep applications in high-performance computing and advanced packaging [9][10] Group 7: Risk Management - The company acknowledges potential technical, market, and application validation risks in new business and product development, emphasizing the importance of timely information disclosure in compliance with legal regulations [10]