Summary of Liquid Cooling Technology and Industry Developments Industry Overview - Liquid cooling technology is becoming the mainstream choice for data center cooling, improving energy efficiency and reducing PUE (Power Usage Effectiveness) values. Despite higher initial installation costs, long-term economic benefits are expected as penetration rates increase and applications scale up [1][5][4]. Key Insights - The blade-type liquid cooling system industry is experiencing rapid penetration growth, benefiting from the launch of GB300 and the introduction of related designs by North American manufacturers. This sector has significant long-term growth potential, with growth rates outpacing data center installation growth [1][6]. - Infinet, as a core supplier to NVIDIA, offers a comprehensive secondary product line and overall solutions, with strong profitability and good medium to long-term investment value. Revenue is expected to exceed $5 billion and net profit to increase by $800 million by 2026 [1][7]. - Domestic companies such as Shenling Environment, Highlan, and Kexin New Source have relatively comprehensive solution capabilities. Feilong Co. and Huagong New Material have competitive advantages in soldering, while Feilong also excels in electronic pumps and valves, indicating significant space for foreign substitution [1][8]. Market Dynamics - Recent developments include Feilong Co. receiving intention orders from Taiwanese companies, marking its entry into NVIDIA's supply chain. Jianghuai Co. has also received small batch orders from Delta and domestic clients, indicating its entry into the NVIDIA supply chain [1][10]. - The trend towards liquid cooling in data centers is driven by the increasing power requirements of cabinets, with liquid cooling becoming necessary for power levels exceeding 50-60 kW, and modular liquid cooling required for over 200 kW [2]. Economic Considerations - The economic comparison between liquid cooling and air cooling is debated. While liquid cooling hardware costs appear lower initially, total lifecycle costs, including installation and operational expenses, are crucial. Long-term, liquid cooling systems may demonstrate superior economics as penetration increases [5][6]. Competitive Landscape - Companies with strong investment potential in the blade-type liquid cooling system sector include Infinet, which is a core supplier to NVIDIA and has a comprehensive product line. This positioning provides a competitive edge in the future market landscape [7]. - Domestic companies like Shenling Environment, Highlan, and Kexin New Source are noted for their comprehensive solution capabilities in the liquid cooling field, with Feilong Co. and Huagong New Material having competitive advantages in specific segments [8][9]. Future Outlook - Feilong Co. is considered undervalued, with potential profits from approximately 100,000 cabinets expected to reach around $300 million. If it captures a 30% market share, revenues could reach $900 million [16][17]. - The liquid cooling market is projected to grow, with GB200 and GB300 liquid cooling cabinets valued at approximately $150,000 and $170,000, respectively. The market share for liquid cooling is currently around 4-5% [14][15]. Conclusion - Liquid cooling technology is positioned for significant growth, driven by increasing power demands in data centers and the need for higher energy efficiency. Companies like Infinet and Feilong Co. are well-placed to capitalize on these trends, making them attractive investment opportunities in the evolving landscape of data center cooling solutions [20].

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The domestic sales growth of traditional household refrigeration equipment is expected to shift from high - speed to a relatively moderate range, and attention should be paid to factors such as policy impact, raw material costs, and market competition [4][49]. - The overseas expansion potential of domestic household refrigeration equipment enterprises is promising, and emerging markets have broad development prospects [49]. - In the field of dedicated refrigeration equipment, with the development of downstream industries such as data centers, there is a higher demand for the efficiency of refrigeration equipment, and enterprises need to provide comprehensive solutions [41][49]. - Suggest paying attention to industry leaders in the household refrigeration equipment field and domestic companies with rich reserves in data - center refrigeration solutions in the dedicated refrigeration equipment field [49]. 3. Summary According to Relevant Catalogs 3.1 Traditional Household Refrigeration Equipment - **Air Conditioner**: In 2025, the domestic sales of air conditioners maintained a strong trend in the first half of the year, with accelerated shipment growth in the second quarter due to a low base last year and promotional activities. The "trade - in" policy was optimized, with an increased subsidy limit. However, considering the "low - before - high" shipment pattern in 2024, the marginal pulling effect of the "trade - in" policy on short - term shipments may slow down. Attention should be paid to raw material cost changes, and online channels may intensify price competition in segmented markets [4][5]. - **Refrigerator and Freezer**: After relatively rapid growth in 2023 - 2024, the production growth rate of refrigerators and freezers slowed down in 2025. In May 2025, refrigerator production increased by 2.0% year - on - year, with domestic sales increasing by 13.7% and exports decreasing by 6.4%. Freezer production increased by 7.5% year - on - year, with domestic sales and exports increasing by 2.5% and 3.1% respectively. North American exports declined significantly, while African exports grew rapidly. Future production schedules are expected to be adjusted according to market demand and policy changes [23]. 3.2 Comprehensive Leaders and Dedicated Refrigeration Equipment - **Samsung Electronics**: In May 2025, Samsung Electronics acquired the German heating, ventilation, and air - conditioning solutions provider FläktGroup for 1.5 billion euros to strengthen its investment in the HVACR field and enter the data - center refrigeration market [29]. - **Daikin**: In 2023, Daikin acquired the American custom air - handling equipment manufacturer Alliance Air Products to meet the growing demand for data - center cooling solutions. In the fiscal year 2024, Daikin achieved both revenue and profit growth and expects stable profit growth in the fiscal year 2025 [34]. - **Trane Technologies**: The organic revenue of Trane Technologies has been growing for multiple quarters. In the first quarter of the fiscal year 2025, the company's overall organic revenue increased by 11% year - on - year, and the adjusted earnings per share increased by 26% year - on - year. Its commercial HVAC orders in the Americas reached a record high [35]. - **Data Center Refrigeration**: The development of AI and other industries is expected to drive the construction of data centers. By 2025, new and renovated large - scale and super - large - scale data centers are required to reduce their power usage effectiveness (PUE). Efficient refrigeration solutions have become an important R & D direction for relevant enterprises. Different cooling technologies have their own characteristics, and appropriate solutions should be selected according to specific scenarios [41][43]. 3.3 Summary and Investment Suggestions - **Summary**: The traditional household refrigeration equipment industry is facing challenges such as policy changes, cost fluctuations, and market competition, while the dedicated refrigeration equipment industry has opportunities due to the development of downstream industries [49]. - **Investment Suggestions**: In the household refrigeration equipment field, pay attention to industry leaders such as Midea Group, Gree Electric Appliances, and Haier Smart Home, as well as upstream component companies. In the dedicated refrigeration equipment field, focus on domestic companies with rich reserves in data - center refrigeration solutions, such as Invicom and Shenling Environment [49].