Group 1: Data Center Business - The company focuses on data center cooling solutions through its subsidiary, Shenzhen Chuangyuan Zhihuo Technology Co., Ltd., which specializes in the research, production, and sales of liquid cooling plates for servers [2][3] - The company has made effective breakthroughs with clients in the data center heat management sector, and some projects have entered mass production [3] - In 2026, the company aims to continue promoting liquid cooling technology innovation and industrial application to enhance competitiveness [3] Group 2: Acquisition Progress - The acquisition of Dongguan Zhaoke is complex due to overseas equity restructuring, leading to a longer timeline for completion [4] - A supplementary agreement was signed on November 4, 2025, to extend the exclusivity period and adjust transaction details [4] - The company is actively pushing forward with the acquisition process while adhering to legal and regulatory requirements [4] Group 3: Polymer Materials Business - The company leverages its expertise in polymer materials to produce waterproof sealing materials, fire insulation materials, and moisture-proof sealing materials [4][5] - In 2025, the company and its subsidiary, Wuxi Kuncheng New Materials Technology Co., Ltd., focused on expanding overseas markets, while Wuhu Xianglu concentrated on product process upgrades [5] - The company aims to maintain a stable cash flow and profit contribution from its polymer materials business in sectors like communication, electricity, and automotive [5] Group 4: New Energy Business Growth - The growth in the new energy sector is driven by the increasing number of electric vehicle models, enhanced intelligence, and improved charging infrastructure [5] - The company’s subsidiary, Suzhou Ruitai Technology Co., Ltd., produces high-frequency welded liquid cooling plates that are critical for the efficient operation of Kirin and Shenxing batteries [5] - In 2025, the company strengthened its partnerships with major clients like CATL and expanded its market presence with international clients such as BMW, LG, and Samsung [5]

Core Viewpoint - Jingneng Thermal Power has indicated that it currently does not engage in data center liquid cooling technology, but will comply with disclosure obligations if any related matters arise [2]. Group 1: Company Overview - Jingneng Thermal Power's main business includes heat production and supply, comprehensive energy, and energy-saving technology services [2]. Group 2: Data Center Cooling Technology - The company explained that data center cooling utilizes energy-side cold sources combined with specialized liquid cooling equipment within data centers, effectively removing heat generated by server components through the principle of heat exchange [2].

Core Viewpoint - Jingneng Thermal Power (002893.SZ) has indicated that data center cooling utilizes energy-side cold sources combined with specialized liquid cooling equipment within data centers to effectively remove heat generated by server components during operation [1] Company Overview - The main business of the company includes thermal power production and supply, comprehensive energy services, and energy-saving technology services [1] - Currently, the company has not yet engaged in data center liquid cooling technology-related business [1]

Core Viewpoint - Huashu Technology (301157) is accelerating its layout in the liquid cooling business, becoming a core focus in the market [1] Group 1: Company Developments - On February 6, 2026, the company announced plans to acquire liquid cooling-related operating assets from Hangzhou Jinke Intelligent Technology Co., Ltd. for 8.71 million yuan to deepen its infrastructure industry chain [1] - On February 11, 2026, the company established a wholly-owned subsidiary, Hangzhou Huayu Thermal Control Technology Co., Ltd., with a registered capital of 10 million yuan, focusing on the research, production, and sales of liquid cooling products [1] - These initiatives are expected to transform Huashu Technology from a product supplier to a digital infrastructure system integrator, potentially opening a second growth curve [1] Group 2: Stock Performance - Following the liquid cooling business layout, Huashu Technology's stock price has shown strong performance, closing at 59.52 yuan on February 12, 2026, with a single-day increase of 4.64% and a turnover rate of 24.49% [2] - As of February 13, 2026, the stock price was reported at 58.97 yuan, with a cumulative increase of 11.10% over the past five days and a trading volume of 1.63 billion yuan [2] - The number of shareholders increased to 7,748 as of February 10, 2026, reflecting a 3.2% rise in interest [2] Group 3: Institutional Perspectives - Institutions are optimistic about the prospects of liquid cooling technology, with Guotai Junan Securities reporting that 2025 will be a pivotal year for the technology's implementation in data centers [3] - TrendForce predicts that the penetration rate of liquid cooling in AI data centers will rise significantly from 14% in 2024 to 33% in 2025, indicating ongoing growth and opportunities for related companies [3]

Core Viewpoint - Hanzhong Precision Machinery (002158.SZ) stock price increased by 3.49% to 27.60 yuan, driven by market sentiment recovery, capital inflow, institutional holdings, and industry growth expectations [1] Group 1: Stock Performance - The A-share market showed a broad upward trend, indicating a clear recovery in market sentiment. Hanzhong Precision Machinery's stock has seen multiple consecutive days of increase, with a significant cumulative rise attracting capital attention [2] - On the day of the report, the stock experienced a net inflow of 4.0548 million yuan from major funds, indicating a certain level of capital momentum [2] Group 2: Institutional Holdings - Several public funds are among the top ten circulating shareholders of Hanzhong Precision Machinery, including Southern CSI 1000 ETF, Penghua Innovation Growth Mixed A, and products under Morgan Stanley Fund, holding a considerable number of shares. The significant floating profits from these institutional holdings during the stock's continuous rise may have enhanced market attention [3] Group 3: Industry Policy Status - Although the company's Q3 2025 report indicates short-term pressure on performance due to a decline in demand for photovoltaic vacuum pumps, institutional research reports suggest growth potential in the semiconductor vacuum pump domestic substitution and data center (AIDC) refrigeration compressor sectors. The growth in AI-driven computing power demand is expected to promote the development of liquid cooling technology in data centers, benefiting the company's related product lines [4]

Summary of AIDC Liquid Cooling Conference Call Industry Overview - The discussion revolves around the AIDC (Artificial Intelligence Data Center) industry, focusing on liquid cooling technologies and their application in data centers [1][2][3]. Key Points and Arguments - **Importance of Cooling Systems**: Data center safety is paramount, necessitating backup cooling systems like chillers to handle extreme temperatures, even if primary systems can support high-temperature cooling liquids [1][2]. - **Temperature Specifications**: The optimal operating temperature for cooling liquids is often lower than the maximum stated. For instance, while 45 degrees Celsius is mentioned, actual operating conditions typically require lower temperatures to ensure safety and efficiency [2][3]. - **Market Dynamics**: The VeriWAVE platform is a new product with uncertain market acceptance, while the GB300 remains the mainstream option in the short term, operating at temperatures requiring significant supplemental cooling [1][3]. - **Regional Variations in Cooling Equipment**: In North America, the configuration of cooling equipment varies by climate. Northern regions can reduce chiller configurations, while southern areas require a higher percentage of chillers (80%-90%) to ensure reliability under extreme heat [6][7]. - **N+1 Redundancy Design**: For a 100 MW AIDC, an N+1 redundancy design necessitates a total power configuration of 110 MW to ensure system stability under peak conditions [7]. Additional Important Insights - **Profit Margins**: The gross margin for chillers in North America is approximately 45%-50%, while in the domestic market, it is around 30% due to pricing and non-standard factors [12]. - **Equipment Pricing**: Domestic equipment prices are about 75%-80% of overseas prices, influenced by tariffs and certification costs [11]. - **Future Trends in Liquid Cooling**: The development of liquid cooling technology in China will vary by region, with water-scarce areas favoring air cooling solutions, while water-rich regions will lean towards liquid cooling systems [13]. - **Challenges for Chinese Companies in North America**: Chinese companies face challenges such as low brand recognition and competition from established local brands, necessitating strategies to enhance brand awareness and local service networks [17]. - **Production Capacity and Delivery Times**: The production cycle for magnetic centrifugal compressors is about 2.5 to 3 months, and the company expects to reach a delivery target of around 2 billion RMB in 2026, with current capacity nearing 4 billion RMB [20][30]. Conclusion The AIDC industry is navigating complex challenges related to cooling technology, market dynamics, and regional variations. The emphasis on safety, efficiency, and adaptability in cooling solutions is critical for future growth and stability in data center operations.

Summary of the Conference Call on Hongsheng Co., Ltd. Industry Overview - The liquid cooling industry is entering its first year in 2026, with major data centers expected to fully adopt liquid cooling technology, including the GB200 model already in use [2][3] - The domestic supply chain is accelerating its entry into the market, with frequent mergers and acquisitions, such as Lianyi acquiring Limin Da and Lens Technology acquiring Dongyangguang [2] - The investment logic in the liquid cooling sector emphasizes performance realization, prioritizing companies that can secure orders from overseas supply chains [2][4] Company Performance - Hongsheng Co., Ltd. has shown outstanding performance in its data center business, with significant investment returns expected to increase from Q4 2025, reaching a growth peak in Q2 2026 [2][6] - The company is a contract manufacturer for Quanta and is expanding its partnerships with other Taiwanese manufacturers, developing complete CDU (Cooling Distribution Unit) solutions [2][6] - Profit projections for Hongsheng in 2026 are estimated to be around 250 to 300 million yuan, with a potential market capitalization of 10 billion yuan, indicating a doubling in value [2][7] Financial Projections - The liquid cooling market is projected to grow rapidly, with an estimated market size of approximately 100 billion yuan, driven by the increase in server cabinets and the rise in unit prices [4][11] - Hongsheng's revenue from its partnership with Quanta is expected to contribute significantly, with projections of delivering 10,000 computing cabinets in 2026, translating to revenues of 1.2 to 1.6 billion yuan [4][14] - The company aims to achieve a net profit margin of 25% to 30% if revenues exceed 1 billion yuan in 2026, potentially resulting in net profits of 250 to 480 million yuan [14] Market Trends - The demand for liquid cooling technology is driven by increased power density, with major players like Google and GB300 set to adopt liquid cooling solutions starting in 2026 [10][11] - The current liquid cooling market is valued at around 100 billion yuan, with expectations for rapid growth as the number of server cabinets increases and prices rise [11] - The industry is witnessing a significant increase in value, with components like the GB300 and GB200 seeing value increases of over 20% [12][13] Strategic Positioning - Hongsheng is strategically positioned to benefit from the growing liquid cooling market, with plans to extend its offerings beyond component supply to complete CDU solutions [15][16] - The company is not solely reliant on Quanta, as it is also engaging with other Taiwanese manufacturers like Delta and Inventec, indicating a diversified customer base [15][16] - Current market conditions are favorable for investing in Hongsheng, as the company is transitioning from a smaller player to a more established entity with proven performance [16][17] Conclusion - Hongsheng Co., Ltd. is poised for significant growth in the liquid cooling sector, with strong financial projections and a strategic approach to expanding its market presence. The anticipated adoption of liquid cooling technology by major data centers in 2026 presents a substantial opportunity for the company to capitalize on this emerging trend [2][3][4][7][10][11][15][16]

Group 1 - Huadian Technology signed a contract worth approximately 3.415 billion RMB for an offshore wind power project, which accounts for about 45.29% of the company's latest audited revenue, positively impacting its performance [1] - Huadian Energy plans to invest 12.043 billion RMB in a wind power project to align with national industrial policies and promote the company's transformation [2] - Founder Technology's subsidiary is investing 1.364 billion RMB to expand its Chongqing production base for high-end PCBs, addressing capacity bottlenecks and enhancing competitiveness in strategic emerging fields [3] Group 2 - Aifang China reported a consolidated revenue of 587 million RMB for January to October 2025, a decrease of 23.91% year-on-year [4] - Zhongji Oil and Gas's shareholder is under investigation by the China Securities Regulatory Commission for failing to halt trading when their combined shareholding reached 5% [5] - Meihua Biological's controlling shareholder was sentenced to three years in prison for market manipulation, but this does not affect the company's operations [6] Group 3 - ST Huatuo applied to revoke other risk warnings after receiving a notice from the China Securities Regulatory Commission regarding false records in annual reports from 2018 to 2022 [7] - Bayi Steel and its controlling shareholder are under investigation for suspected violations of information disclosure regulations, but their operations remain normal [8] - Xinpeng Co. signed a memorandum of cooperation with Grundfos to innovate in data center liquid cooling technology and expand into global markets [9] Group 4 - Shanghai Washba's board members are under investigation for suspected short-term trading, but this will not significantly impact the company's operations [10] - Great Wall Technology terminated plans for a change in control due to a lack of consensus with the transaction party, and its stock will resume trading on November 10, 2025 [11] - ST Chang Pharmaceutical is under investigation for suspected false records in periodic reports, which could lead to significant penalties [12]

Group 1 - Morgan Stanley initiates coverage on Sanhua Intelligent Control (02050) with an "Overweight" rating and a 12-month target price of HKD 41, indicating a potential upside of approximately 30% from current levels [1] - The firm maintains an "Overweight" rating for Sanhua's A-shares (002050.SZ) with a target price of CNY 43, suggesting that the additional potential of robotics technology and data center liquid cooling technology has not been fully reflected in its forecasts [1] - The core assumption is that Sanhua will expand its humanoid robot business while maintaining its leadership in refrigeration and electric vehicle thermal management, driving a compound annual growth rate (CAGR) of 15% in earnings per share from fiscal years 2026 to 2027, supporting further valuation re-rating [1]

Core Viewpoint - Morgan Stanley initiates coverage on Sanhua Intelligent Control (002050) with an "Overweight" rating and a 12-month target price of HKD 41, indicating a potential upside of approximately 30% from current levels [1] Company Summary - The firm maintains an "Overweight" rating for Sanhua Intelligent Control's A-shares (002050.SZ) with a target price of RMB 43, suggesting that the additional potential of robotics technology and data center liquid cooling technology has not been fully reflected in its forecasts [1] - The core assumption is that Sanhua Intelligent Control will expand its humanoid robot business while maintaining its leadership in refrigeration and electric vehicle thermal management, which is expected to drive a compound annual growth rate (CAGR) of 15% in earnings per share from fiscal years 2026 to 2027, supporting further valuation re-rating of the stock [1]