Summary of Conference Call Records Industry Overview - **Industry**: Liquid Cooling, Backup Power, UPS, Diesel Generators - **Market Size**: The liquid cooling market is expected to reach a scale of 70 to 80 billion RMB by 2026, with CDU and liquid cooling plates accounting for approximately 40% and over 30% of the total market value respectively [1][5][6]. Key Insights and Arguments - **Liquid Cooling Demand**: The liquid cooling segment benefits from the growing demand for AI servers and the increasing value of liquid cooling solutions. The value of a GB300 liquid cooling cabinet is approximately 700,000 RMB, representing a nearly 20% increase from the GB200 model [1][2]. - **Market Concerns**: Investors express concerns about the sustainability of the current market trend, but the fundamentals are still in the early stages, indicating that the market cycle has not yet ended [1][7]. - **Investment Focus**: Investment in liquid cooling technology should focus on the supply chain and upstream materials, with leading companies and those with strong performance support being more advantageous [1][10]. - **Challenges for Domestic Supply Chain**: Domestic suppliers face challenges in entering international supply lists, particularly with major CSPs like NVIDIA. However, new technology iterations provide opportunities for new suppliers [4][10]. Additional Important Content - **Market Dynamics**: The IDC market is driven by economic conditions, inflation, and expectations for domestic supply chain integration. Increased capital expenditure from overseas CSPs supports the liquid cooling sector [2]. - **Backup Power Market Growth**: The overseas market for IDC backup power is growing rapidly, with lithium battery penetration expected to exceed 250 billion RMB [2][16][17]. - **UPS Market Opportunities**: The overseas UPS market presents significant opportunities for domestic companies like Kehua and Kstar, as traditional UPS manufacturers face capacity constraints [25][27]. - **Technological Advancements**: The importance of HVDC technology is increasing, with Chinese companies expected to enter overseas supply chains [28][29]. - **Diesel Generator Market Expansion**: Domestic diesel generator companies are beginning to secure orders from Europe and the US, marking a significant shift towards international markets [36][40]. Financial Projections - **Profit Margins**: The liquid cooling market is projected to have a profit margin of around 20%, potentially leading to a market capitalization of 400 to 500 billion RMB [5][24]. - **UPS Market Potential**: The global UPS market is valued at approximately 800 billion RMB, with significant revenue potential for domestic companies if they capture a 10% market share [33]. Conclusion - The liquid cooling, backup power, UPS, and diesel generator industries are poised for growth, driven by technological advancements and increasing international demand. Domestic companies are well-positioned to capitalize on these trends, although they must navigate challenges related to international market entry and competition.