Financial Performance - In Q3 2025, the company achieved revenue of 1.72 billion CNY, a year-on-year increase of 6.88%, and a net profit attributable to shareholders of 160 million CNY, up 13.54% [3] - For the first three quarters, total revenue was 4.83 billion CNY, a decline of 2.45%, with net profit down 9.68% to 428 million CNY [3] Business Overview - The company focuses on advanced system solutions and lifecycle services in the energy and power sectors, with products including compressors and heat exchangers, operating in a temperature range of -271°C to 200°C [3] - Key product categories include screw compressors, centrifugal compressors, absorption chillers, piston compressors, and industrial heat pumps [3] Market Applications - Products are widely used in various sectors such as food processing, cold chain logistics, industrial cooling, commercial air conditioning, and energy recovery systems [4] - The low-temperature refrigeration segment saw a slight decline, while special air conditioning and thermal management segments experienced growth [4] Data Center Solutions - The company provides cooling equipment for data centers, including liquid cooling systems, through its subsidiaries [4][6] - Dunham-Bush, a subsidiary, has a strong presence in the HVAC market and has successfully served numerous data center projects across China [5] Nuclear Power Sector - The company is actively involved in the nuclear power industry, focusing on core applications such as nuclear island cooling and heat recovery [6][7] - Recent projects include cooling systems for various nuclear power stations in China, supporting the country's nuclear energy initiatives [7] Thermal Management and Energy Recovery - The company is committed to energy management through industrial heat pumps and has developed several patented technologies [8][9] - The thermal management segment is positioned as a key growth area, benefiting from urban renewal and heat network upgrades [9] Solid Oxide Fuel Cell (SOFC) Research - Since 2022, the company has collaborated with Xi'an Jiaotong University on SOFC technology, achieving significant advancements in output characteristics and integration techniques [10] - The project has led to the development of new sealing materials and successful performance testing of SOFC modules [10]

Financial Performance - In Q3 2025, the company achieved revenue of 1.72 billion CNY, a year-on-year increase of 6.88%, and a net profit of 160 million CNY, up 13.54% [3] - For the first three quarters, total revenue was 4.83 billion CNY, a decline of 2.45%, with net profit at 428 million CNY, down 9.68% [3] Business Overview - The company focuses on advanced system solutions and lifecycle services in the energy and power sectors, with products including compressors and heat exchangers, operating in a temperature range of -271℃ to 200℃ [3] - Key product categories include screw compressors, centrifugal compressors, absorption chillers, piston compressors, and industrial heat pumps [3] Market Applications - Products are widely used in various sectors such as food processing, cold chain logistics, industrial refrigeration, and special air conditioning for data centers and nuclear power [4] - The low-temperature refrigeration segment saw a slight decline, while special air conditioning and thermal management segments experienced growth [4] Data Center Solutions - The company provides cooling equipment for data centers, including evaporative condensers and closed cooling towers, with significant projects completed in China and overseas [5][6] - The proportion of centrifugal chillers, especially magnetic levitation types, is increasing in the IDC chiller market [6] Nuclear Power Sector - The company is actively involved in nuclear power cooling solutions, focusing on core scenarios such as nuclear island cooling and heat recovery [7] - Recent projects include supplying cooling systems for various nuclear power stations across China [7] Thermal Management Initiatives - The company is enhancing its thermal management capabilities, particularly through industrial heat pumps, and has been recognized as a national-level "little giant" enterprise [8][9] - The focus is on technologies that recover waste heat and reduce carbon emissions, aligning with national carbon neutrality goals [9] SOFC Research and Development - Since 2022, the company has collaborated with Xi'an Jiaotong University on solid oxide fuel cell (SOFC) technology, achieving significant advancements in output characteristics and sealing materials [10] - The project has led to the successful design and testing of a 5kW stack module and the development of high-stability SOFCs [10]

Summary of SOFC Industry Conference Call Industry Overview - The conference call focused on the Solid Oxide Fuel Cell (SOFC) industry, particularly the advancements in metal-supported SOFC technology, which operates at lower temperatures (600-650°C) and offers advantages in material selection, cost reduction, and rapid start-up times [1][5][36]. Key Points and Arguments - **Technological Advancements**: The company has partnered with Chris to gain key technology licenses for stack design and cell manufacturing, aiming to complete pilot line construction by the end of 2026 and achieve annual production capacity in the tens of megawatts by 2027 [1][10]. - **Cost Structure**: The current cost of the B1 model SOFC device is approximately 20,000 to 30,000 RMB per kilowatt, with plans to reduce this to below 10,000 RMB per kilowatt through mass production and in-house stack manufacturing. The long-term goal is to reach a cost of 900 USD per kilowatt by 2030 [1][21][23]. - **Market Strategy**: The company intends to focus on selling complete SOFC systems rather than just stacks, providing a more competitive and sustainable solution. This strategy is expected to leverage economies of scale to significantly reduce processing costs [1][22][23]. - **Application Areas**: SOFC technology is particularly promising in data centers and combined heat and power (CHP) applications, offering nearly double the efficiency of gas turbines, despite higher initial construction costs [3][36][38]. Technical Considerations - **Support Structures**: There are three main support types for SOFC: anode-supported, electrolyte-supported, and metal-supported. Metal-supported SOFCs are advantageous due to their lower operating temperatures and ability to use cheaper materials [2][5]. - **Performance Metrics**: The company aims for a lifespan of over 30,000 hours for its SOFC systems, with industry standards targeting 50,000 to 60,000 hours by 2030 [14][25]. - **Production Strategy**: The company plans to produce key components in-house while sourcing raw materials externally. The production methods for components include stamping, etching, and laser cutting, with a focus on cost-effective techniques [8][20]. Competitive Landscape - **Market Position**: The company holds a significant advantage in the SOFC market due to its extensive experience in supporting systems, which account for 60% of the total system cost, compared to competitors who focus primarily on stack sales [17][28]. - **Challenges in North America**: The primary challenge in the North American market is product certification rather than trade friction, emphasizing the importance of product stability and certification capabilities [3][32][36]. Future Outlook - **Expansion Plans**: The company anticipates completing pilot line construction by the end of 2026 and achieving small-scale production by 2027. The potential for scaling up to 1 GW capacity will depend on market demand [15][35]. - **Technological Development**: The company is also exploring the development of Solid Oxide Electrolysis Cells (SOEC) for hydrogen production, indicating a strategic shift towards broader applications of its technology [19][38]. Additional Insights - **Cost Reduction Strategies**: The company aims to achieve cost reductions primarily through economies of scale and in-house production of stacks, which will lower procurement costs and overall system prices [23][24]. - **Market Dynamics**: The competitive landscape includes companies like Delta and Dou Shan, which are still in the early stages of developing supporting systems, while the company has established itself as a leader in this area [27][33]. This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the company's position and future plans within the SOFC industry.

Core Viewpoint - The company is responding to heightened investor interest in its Solid Oxide Fuel Cell (SOFC) project by organizing a specialized communication meeting with analysts on November 11, 2025 [1] Group 1: Project Development - The company initiated the SOFC project in 2020 and has established a dedicated R&D team focused on the development of solid oxide battery technology [1] - Research and development efforts are concentrated on key areas of the supply chain, including critical powder materials, single cells, stacks, and systems, which have been ongoing for five years [1] Group 2: Supply Chain and Cost Management - As of now, the company has achieved self-sufficiency in core segments of the SOFC supply chain, including key powder materials, single cells, stacks, and critical components [1] - This self-sufficiency is expected to lower production costs and ensure stable quality, laying a solid foundation for gradual industrialization [1] Group 3: Competitive Advantage - The company's SOFC product architecture differs from competitors by utilizing conventional stainless steel for the main connecting materials, significantly reducing the amount of chromium used [1] - Consequently, fluctuations in the price of metallic chromium have a minimal impact on the cost of the company's SOFC products [1]

Core Viewpoint - The company is actively developing metal-supported solid oxide fuel cells (MS-SOC) in collaboration with leading domestic research institutions, focusing on key materials and production processes [1] Group 1 - The company has achieved stable integration of metal-ceramic interfaces and has mastered the full-process independent production technology for single cells [1] - The company is currently advancing process scaling and system adaptation work, although it has not yet generated operating revenue [1]

Core Insights - The article highlights the rapid deployment of AI data center SOFC (Solid Oxide Fuel Cell) power supply projects, which are attracting major companies like Oracle and Intel due to their high efficiency, continuous operation, and modular construction [1] Group 1: Market Opportunity - SOFC currently has a penetration rate of only about 1.1% in the data center power market, indicating significant growth potential [1] - The average selling price of leading suppliers has decreased by 50%, approaching a critical point for large-scale commercialization [1] Group 2: Industry Structure - The SOFC industry chain is divided into three main segments: upstream materials, midstream components and stacks, and downstream system integration [1] - The company mentioned is the largest single-cell SOFC supplier in the European market, positioning itself strongly within the industry [1]

Company News - China Heavy Industry announced on August 14 that it has submitted an application for voluntary termination of its A-share listing [7] - China Telecom reported a net profit of 23.02 billion yuan for the first half of the year and plans to distribute an interim dividend of 16.58 billion yuan [8] - Tianpu Co. announced that its actual controller is planning a change in company control, and its stock will be suspended from trading starting tomorrow [9] Industry News - The number of investors participating in margin trading reached 523,400 on August 13, marking a new high for the year, with an increase of 46,100 from the previous trading day, a 9.67% month-on-month growth [4] - The China Chemical and Physical Power Industry Association released a draft proposal on August 14 to maintain fair competition and promote healthy development in the energy storage industry, with 152 energy storage companies participating in the initiative [6] - Jiangsu Province announced on August 14 that it will waive towing and lifting fees for vehicle rescue services on highways starting in September, making it the first province to fully exempt these fees [6] - The Guizhou Provincial Government issued a three-year action plan for the high-quality development of the low-altitude economy, aiming to establish a basic low-altitude management mechanism by 2027 [6] Global Market - The U.S. stock market saw most indices rise, with the S&P 500 index reaching a new record closing high for three consecutive trading days, up 0.03% [10] - International crude oil futures prices increased by approximately 2%, with WTI crude oil futures for September rising by 2.09% [11] - COMEX gold futures fell by 0.77%, settling at $3,382 per ounce, while silver futures dropped by 1.46% to $38.04 per ounce [11]