Summary of the Conference Call for 欧陆通 Company Overview - **Company Name**: 欧陆通 - **Industry**: Data Center Power Supply Key Financial Metrics - **Revenue**: - H1 2025 revenue reached 21.20 billion, a year-on-year increase of 32.59% [4] - Q2 2025 revenue was 12.3 billion, exceeding 30% growth year-on-year [2][4] - **Net Profit**: - H1 2025 net profit was 1.34 billion, up 55% year-on-year [2][4] - Operating net profit was 1.57 billion, a significant increase of 82.36% [2][4] - **Gross Margin**: - Overall gross margin was 20.31%, a slight decrease of 0.64 percentage points year-on-year [4] - Q2 gross margin improved to 21.17%, an increase of 2.07 percentage points quarter-on-quarter [2][4] - **Expenses**: - Total expenses decreased by 25.39% year-on-year to 2.55 billion [4] - R&D expenses were 1.32 billion, up 28.26% year-on-year, with an R&D expense ratio of 6.21% [2][4] Business Segments - **Data Center Power Supply**: - Became the largest business segment with revenue of 9.62 billion, a 94% increase year-on-year [2][4] - High-power server power supply (2 kW and above) revenue reached 6.6 billion, a substantial growth of 216% [2][4] - High-power segment gross margin maintained at 27%-28%, while mid-low power margins decreased due to market competition [2][4][6] - **Customer Base**: - Major clients include leading domestic server manufacturers such as Inspur, Foxconn, Lenovo, and internet giants like Alibaba, Tencent, and ByteDance [6] Market Dynamics - **Order Visibility**: - Server power supply order visibility is low, with expectations of a 15-20% revenue decline in Q3 due to domestic GPU supply constraints [2][13] - **Future Growth**: - The company is actively developing higher power supplies (8 kW, 10 kW) but expects mainstream demand to remain around 5.5 kW in the short term [5][14] - Plans to expand into overseas markets, with potential orders expected by H2 2026 [5][10] Product Development and Challenges - **New Product Introduction**: - New products like the 5 kW PSU and 33 kW PowerShift are anticipated to boost margins, but short-term supply chain issues may hinder their rollout [8][11] - **High Voltage Direct Current (HVDC) Products**: - Development of high voltage direct current products is ongoing, but no specific customer demand has been established yet [15] - **Liquid Cooling Power Supply**: - Currently low penetration in the market, with potential for growth as GPU power consumption increases, but large-scale adoption is unlikely in the next 2-3 years [18] Strategic Outlook - **Revenue Goals**: - The company aims for total revenue of 45 billion for the year, with a target growth of 5-10% in consumer products [22] - **Market Adaptation**: - Future growth will depend on customer demand and order patterns, particularly in the AI server market [9][10] Conclusion - 欧陆通 is experiencing strong growth in its data center power supply segment, driven by high-power products. However, challenges such as order visibility and market competition may impact future performance. The company is focused on innovation and expanding its market presence, particularly overseas, while navigating supply chain constraints.