Core Viewpoint - The company is in the initial stage of market expansion for liquid cooling-related business, with existing market uncertainties [1] Group 1: Company Developments - The company is actively monitoring the development trends of liquid cooling technology in data centers [1] - The company aims to promote product innovation to adapt to the needs of the data center sector [1] - The company is committed to providing high-reliability solutions for the data center field [1]

Investment Rating - The report maintains an "Increase" rating for the industry, indicating an expected increase of over 10% relative to the benchmark index in the next 6-12 months [3][48]. Core Insights - The North Exchange 50 Index has shown a significant increase of 6.84% this week, closing at 1439.63 points, outperforming major indices such as the Shanghai Composite and the ChiNext [3][14]. - The North Exchange has a total of 268 constituent stocks with an average market capitalization of 3.139 billion [3][14]. - The North Exchange has led the A-share market with a cumulative increase of 38.72% year-to-date, surpassing the Hang Seng Index's increase of 21.06% [43]. Summary by Sections 1. North Exchange Market Overview - The North Exchange 50 Index's performance this week was strong, with a closing increase of 6.84% [3][14]. - The top five performing sectors in the A-share market this week were Computer, Defense Industry, Non-bank Financials, Communication, and Electrical Equipment, with increases of 7.70%, 6.90%, 6.66%, 5.53%, and 5.11% respectively [28][31]. 2. New Stocks on the North Exchange - Guangxin Technology (920037) officially listed on the North Exchange on June 26, becoming the 268th listed company, and saw a remarkable first-day increase of 500% [3][36]. 3. Key News from the North Exchange - The North Exchange has recorded a total of 26 stocks that have doubled in value this year, primarily driven by technology innovation companies [43]. 4. Investment Strategy for the North Exchange - The report suggests focusing on several sectors for the second half of 2025, including: 1. Data Centers: Shuguang Jiaochuang (leading in liquid cooling technology) 2. Robotics: Suzhou Axis (leading in needle roller bearings), Audiwei (ultrasonic sensor "little giant"), JunChuang Technology (benefiting from lightweight trends), and Fuheng New Materials (PEEK materials) 3. Semiconductors: Hualing Co. (leading third-party testing in semiconductors) and Kaide Quartz (domestic leader in 12-inch semiconductor quartz devices) 4. Consumer Goods: Taihu Snow (first silk stock of new national goods), Boshenglong (first creative packaging stock), Lusi Co. (first pet food stock on the North Exchange), Kangbiter (first sports nutrition stock on the North Exchange), and Thunder God Technology (leading in AI + glasses applications) 5. Military Information Technology: Chengdian Guangxin (driven by military aircraft upgrades) and Xingtum Control (rare aerospace measurement and control target benefiting from satellite internet construction) [44].

Core Viewpoint - Company reported a 25.07% year-on-year increase in revenue for Q1 2025, but net profit decreased by 22.53% due to delayed project acceptance affecting revenue recognition [63][34][15]. Group 1: Financial Performance - In Q1 2025, the company's revenue reached 933 million yuan, reflecting a 25.07% increase year-on-year [63]. - The net profit attributable to shareholders was 48.01 million yuan, down 22.53% compared to the previous year [63]. - The gross profit margin for the company was reported at 26.45% [63]. Group 2: Revenue Growth Factors - The company experienced a 30.04% revenue growth in 2024, with some projects not yet accepted impacting revenue recognition [2]. - The company maintains an optimistic outlook for 2025, citing strong demand in its main business areas and solid industry position [9]. Group 3: Market and Operational Insights - The company is closely monitoring changes in U.S. tariff policies, noting that overseas revenue accounted for 14.38% of total revenue in 2024, suggesting limited impact from tariffs [3]. - The company has a stable order book and production capacity across multiple bases, including Shenzhen and Suzhou, to meet current demand [13][52]. Group 4: R&D and Future Prospects - The company is increasing its R&D investments, with a 32.98% rise in R&D expenses in 2024, focusing on innovative products like ultra-thin dehumidifiers [27]. - The liquid cooling business is experiencing growing demand, although it is influenced by chip types [7]. Group 5: Stock Performance and Investor Relations - The company's stock has faced a continuous decline, with management emphasizing the importance of value enhancement and shareholder returns [16][50]. - The company adheres to consistent information disclosure principles and encourages investors to refer to official reports for updates [4][51].

Group 1: Financial Performance - The company's revenue for 2024 increased by 30.04%, with a 25.07% growth in the first quarter, affected by project acceptance delays [1] - The net profit attributable to shareholders decreased by 22.53% in the first quarter due to revenue recognition timing and increased expenses from R&D and marketing [4][11] - The overall business outlook for 2025 is optimistic, with strong demand expected in key sectors [5] Group 2: Impact of External Factors - The impact of U.S. tariff policies on 2025 performance is expected to be minimal, as overseas revenue accounted for 14.38% of total revenue in 2024 [1] - The company is closely monitoring changes in tariff policies but has not made specific assessments of their impact [1] Group 3: Information Disclosure and Investor Relations - The company adheres to consistent information disclosure principles and complies with legal requirements, despite recent stock price declines [1][30] - There is a commitment to improving communication with investors, including potential increases in disclosure frequency [33] Group 4: Operational Insights - The company’s production capacity is currently sufficient to meet existing order demands, with ongoing construction of new facilities progressing as planned [9][56] - The liquid cooling business is experiencing rapid growth, although it is influenced by chip types and market demand [3][13] Group 5: Cost Management and Profitability - Management expenses increased by 28.75% in 2024 due to business expansion, but the company aims to keep cost growth below revenue growth [27] - The gross profit margin decreased by 3.6 percentage points in 2024, primarily due to accounting policy changes and commodity price increases [32][20] Group 6: Market Position and Competitive Advantage - The company maintains a strong competitive position in the cooling and precision environmental control sectors, focusing on innovation and operational efficiency [8][62] - The liquid cooling technology is recognized as a growing trend, although its implementation speed is affected by specific chip categories [46]