Group 1 - The core viewpoint is that with the accelerated development of AI, liquid cooling is expected to become the mainstream cooling solution for future data centers [1] - The demand for data center construction is driven by the intensive release of AI large models, leading to increased capital expenditure from global cloud providers [1] - Liquid cooling solutions offer significant advantages over traditional air cooling, including lower energy consumption (PUE value of air cooling approximately 1.4-1.6, liquid cooling approximately 1.05-1.2) and higher cooling efficiency (liquid cooling power density in a 2MW data center is approximately 4-9 times that of air cooling) [1] Group 2 - Cold plate liquid cooling is the current mainstream solution due to its maturity and lower initial investment costs, while immersion cooling is expected to meet the needs of supercomputing in the future [2] - The liquid cooling technology includes non-contact (cold plate) and contact (immersion, spray, etc.) types, with cold plate liquid cooling being favored for its compatibility with existing infrastructure [2] Group 3 - The total value of the cold plate liquid cooling system for NVIDIA's GB series products is estimated to be around $70,000 to $100,000 [3] - The secondary side of the cold plate liquid cooling system, which includes components like CDU, piping, valves, and liquid cooling plates, is valued at approximately $600 to $800 per kW [3] Group 4 - It is optimistically projected that the global market for cold plate liquid cooling will exceed $10 billion by 2026, driven by NVIDIA's GPU shipments and the increasing adoption of liquid cooling solutions [4] - The estimated demand for cold plate liquid cooling corresponding to NVIDIA's GPUs is expected to reach $6.9 billion and $17.3 billion in 2025 and 2026, respectively [4] Group 5 - The liquid cooling industry chain includes upstream components, midstream solutions, and downstream applications, with automotive companies entering the market by leveraging their expertise in thermal management [5] - Companies like Sanhua and Yinhong are expanding into the liquid cooling sector by utilizing their existing technology and manufacturing capabilities [5] Group 6 - NVIDIA's continuous iteration of AI chips significantly impacts the development of liquid cooling solutions, with the next generation of AI chips expected to exceed 2000W in power consumption [6] - The thermal power of the Rubin GPU may increase from the previously expected 1.8kW to 2.3kW, necessitating advanced cooling technologies like microchannel liquid cooling plates (MLCP) [6]

Core Viewpoint - The company has successfully established a partnership with Boyd Corporation, a global leader in thermal management solutions, to supply liquid cooling products for data centers in North America and Europe [1] Group 1 - The company is responding to investor inquiries regarding its relationship with Boyd Corporation, which is recognized as an official supplier of liquid cooling components by NVIDIA [1] - The collaboration focuses on providing thermal management solutions, indicating the company's strategic alignment with industry leaders in technology [1]

Summary of Conference Call on Liquid Cooling Technology in Data Centers Industry Overview - The conference call focused on the liquid cooling technology in data centers, particularly its application in high-performance computing and the growing demand for efficient cooling solutions due to increasing chip power consumption [1][2]. Key Insights and Arguments - **Market Penetration**: The penetration rate of liquid cooling in GB200 servers is expected to reach 75%, while GB300 is nearing 100%. This indicates a significant increase in liquid cooling adoption by 2026, driven by NVIDIA's GPU series, which is predominantly shipped in liquid-cooled configurations [1][2]. - **Growth Projections**: The GPU cabinet shipment volume is projected to be between 100,000 to 120,000 units by 2026, corresponding to a market size of approximately $10 billion. The ASIC server shipment is expected to reach 8 million units, with a 40% penetration rate translating to a market size of about $3.9 billion. The combined market for GPU and ASIC servers is anticipated to exceed $15 billion, with a compound annual growth rate (CAGR) of around 55% from 2025 to 2026 [1][7]. - **Cooling Technology Trends**: The choice of cooling solutions is primarily based on heat flux density and cabinet power consumption. Liquid cooling is becoming essential for high-power chips, although cost considerations may lead some users to opt for suboptimal solutions like air cooling [1][4]. Important but Overlooked Content - **Supply Chain Dynamics**: The expansion of the liquid cooling market is driving demand for components, with key suppliers such as Chi Hong, Shuang Hong, and Coolmaster ramping up production in Southeast Asia. The main suppliers for CDU (Cooling Distribution Unit) include Weidi and Baode, with Sidecar being the predominant configuration [3][8]. - **Domestic Companies' Prospects**: Domestic firms like Yingweike have entered the supply chains of NVIDIA and Google, positioning themselves as potential leading manufacturers. Yingweike has received order guidance from NVIDIA for 2026, including a 3-4% share of quick connectors, translating to an estimated revenue of $500 million, along with $200 million from CDU contributions [3][9]. - **Technological Advancements**: NVIDIA is developing microchannel liquid cooling technology to enhance cooling efficiency, expected to mature by Q4 2026. Google has implemented advanced cooling techniques that adapt to AI training load fluctuations, ensuring reliable thermal management [5][6]. Conclusion - The liquid cooling technology in data centers is poised for significant growth, driven by increasing power demands of chips and advancements in cooling solutions. The market dynamics indicate a robust expansion of both the technology and the associated supply chain, with domestic players gaining traction in a competitive landscape [1][3][9].

Core Viewpoint - The article emphasizes the rapid growth of global computing power demand driven by advancements in artificial intelligence, cloud computing, and high-performance computing, leading to unprecedented cooling challenges for data centers. Liquid cooling technology is evolving from an optional solution to a necessary one due to its energy efficiency, low power consumption, and noise reduction advantages, especially in light of tightening national PUE (Power Usage Effectiveness) requirements. The article outlines the evolution of liquid cooling technology, market landscape, and future trends, predicting that the global liquid cooling market will exceed 100 billion yuan by 2026, marking the beginning of a liquid cooling revolution driven by technology, policy, and industry collaboration [2]. Group 1: Liquid Cooling Technology - Liquid cooling technology is essential for addressing the cooling pressures of data centers. It utilizes liquid to dissipate heat from components, leveraging the high thermal conductivity and heat capacity of liquids compared to air, resulting in lower energy consumption, higher cooling efficiency, and reduced noise [6][13]. - The core advantages of liquid cooling include low energy consumption, high cooling capacity (4-9 times that of air cooling), low noise levels, and lower total cost of ownership (TCO), with PUE values potentially dropping below 1.2 [13][26]. - The rapid increase in chip power density necessitates the adoption of liquid cooling solutions, as traditional air cooling struggles to meet the demands of next-generation architectures like NVIDIA's Rubin, which anticipates power densities reaching up to 600 kW [14][18]. Group 2: Market Trends and Future Outlook - The liquid cooling market is expected to surpass 100 billion yuan by 2026, driven by technological advancements, policy support, and collaboration across the supply chain [2]. - The evolution of liquid cooling technology is characterized by the emergence of microchannel cold plates and phase change cooling plates, which enhance efficiency and customization [2][14]. - The article highlights the increasing importance of liquid cooling in meeting national PUE requirements, with policies pushing for lower PUE values, thereby promoting the adoption of energy-efficient technologies [22][25]. Group 3: Industry Applications and Solutions - Liquid cooling solutions are categorized into direct contact and indirect contact types, with single-phase immersion cooling being the primary development direction due to its high efficiency and energy savings [30][47]. - Single-phase cold plate cooling is expected to remain the mainstream solution for a considerable time due to its compatibility with existing infrastructure and lower retrofit costs [37]. - Immersion cooling offers high energy efficiency (PUE < 1.13) and supports high-density deployments, although it presents challenges in product design and maintenance [48][49].

Investment Rating - The report suggests that cold plate liquid cooling is expected to become the mainstream cooling solution for data centers, with significant potential in 3D printing for liquid cooling plate manufacturing [5]. Core Insights - Cold plate liquid cooling is anticipated to dominate the data center cooling market due to its higher efficiency compared to traditional air cooling, especially as GPU power design continues to increase [1][12]. - The liquid cooling market in China is projected to grow significantly, reaching 184 billion yuan in 2024 and 1.3 trillion yuan by 2029, with a compound annual growth rate (CAGR) of 48% [20][22]. - 3D printing technology is identified as the optimal manufacturing route for liquid cooling plates, offering advantages such as design freedom and cost-effectiveness compared to traditional machining methods [2][54]. - Microchannel liquid cooling plates are becoming a new trend, with 3D printing further enhancing their performance by allowing for complex designs that improve heat dissipation [3][66]. - The report highlights the challenges and breakthroughs in 3D printing of copper materials, which are crucial for effective heat transfer in liquid cooling applications [4][80]. Summary by Sections 1. Cold Plate Liquid Cooling as a Mainstream Solution - The cooling process in data centers can be categorized into air cooling and liquid cooling, with liquid cooling being more efficient due to its higher heat transfer capabilities [12][18]. - Cold plate liquid cooling, as an indirect cooling method, does not require direct contact with liquids, making it more operationally feasible and widely applicable [28][33]. 2. 3D Printing as the Optimal Manufacturing Technology - 3D printing offers unique advantages over traditional machining, such as the ability to create complex geometries and reduce production costs [2][54]. - The technology allows for continuous optimization of flow channel designs, which significantly impacts the cooling performance of liquid cooling plates [60][64]. 3. Emerging Trends in Microchannel Liquid Cooling - Microchannel liquid cooling plates are defined by their small channel diameters, which enhance heat transfer efficiency, and 3D printing is expected to play a crucial role in their production [3][67]. - The report notes that traditional manufacturing methods face limitations in producing microchannel structures, making 3D printing a more viable option [71][79]. 4. Investment Recommendations - The report recommends focusing on companies with strong technological capabilities in metal 3D printing, particularly those specializing in copper 3D printing [5][97]. - Specific companies highlighted include Nanfeng Co., Ltd., Plitec, and Huazhu High-Tech, which are actively engaged in the development and production of 3D printed liquid cooling plates [97].

Core Viewpoint - The article emphasizes that liquid cooling is becoming the mainstream cooling technology for intelligent computing centers due to the increasing power density of AI chips and the limitations of traditional air cooling methods. The global liquid cooling market is expected to experience significant growth, with a projected market size of over $10 billion by 2026 [3][46]. Investment Summary - The rise in AI chip power and cabinet density is driving the adoption of liquid cooling solutions, with leading overseas companies advancing full liquid cooling solutions [4][5]. - The liquid cooling market in North America is projected to reach $10 billion by 2026, driven by the demand for NVIDIA GPUs and the adoption of liquid cooling by CSP cloud manufacturers [5][57]. - In China, the liquid cooling market is expected to reach approximately 21.1 billion yuan by 2027, with a significant increase in penetration rates [52]. Liquid Cooling Technology - Liquid cooling offers advantages over air cooling, including faster temperature transfer, higher heat removal capacity, lower noise, and energy savings [6][12]. - The liquid cooling architecture can be divided into two parts: the room side (including primary and secondary equipment) and the ICT equipment side [8][30]. - The main types of liquid cooling include cold plate, immersion, and spray cooling, with cold plate technology currently being the most widely used [28][30]. Market Drivers - The increasing power density of computing chips necessitates liquid cooling as a primary solution for heat dissipation in intelligent computing centers [15][23]. - Stricter energy efficiency regulations for data centers, such as PUE requirements, are pushing the adoption of liquid cooling to reduce overall energy consumption [23][26]. - Major CSP cloud manufacturers are designing and implementing liquid cooling solutions, further driving market growth [26][27]. Component Analysis - The liquid cooling system consists of primary and secondary components, with significant value attributed to components like CDU, liquid cooling cabinets, and air conditioning systems [53][56]. - The value of liquid cooling components is expected to increase as the market grows, with specific components like CDU accounting for about 30% of the total value [56][57]. Future Outlook - The liquid cooling market is anticipated to grow rapidly, with projections indicating that by 2026, the global market could exceed $10 billion, driven by advancements in AI technology and increasing demand for efficient cooling solutions [46][57]. - The article suggests that companies with system-level understanding and specialized cooling capabilities will benefit the most from this industry development [4].

Core Insights - The report emphasizes the critical role of liquid cooling technology in data centers, particularly in AI-driven environments, as power density of computing chips continues to rise, surpassing the limits of traditional air cooling methods [1][6][8] - Liquid cooling is becoming mainstream due to its advantages such as rapid temperature transfer, high heat dissipation capacity, low noise, energy efficiency, and space-saving features [1][6][10] - The global market for liquid cooling is projected to exceed $10 billion by 2026, driven by increasing demand from AI chip manufacturers and data center operators [1][6][7] Group 1: Liquid Cooling Technology - Liquid cooling systems are categorized into two main sides: the room side (including primary and secondary components) and the ICT equipment side (such as cold plates and immersion systems) [1][12] - The current dominant technology is cold plate cooling, with Nvidia's GB200 series utilizing a fully liquid-cooled architecture [1][10] - Immersion cooling is seen as a long-term direction, offering lower PUE (<1.05) but at a higher cost compared to cold plate systems [1][6][10] Group 2: Market Size and Growth - The North American market for cold plate liquid cooling is valued at approximately $1,040 per kW, with expectations to reach $10 billion by 2026, driven by CSP cloud manufacturers and Nvidia's GPU demand [1][7] - In China, the unit value for cold plate liquid cooling is around 5,000 RMB per kW, with market sizes projected to be 11.3 billion RMB in 2026 and 23.8 billion RMB in 2027 [1][7] - The liquid cooling market is expected to accelerate due to stricter PUE regulations globally, with China mandating new large data centers to maintain a PUE ≤ 1.25 [1][25] Group 3: Industry Chain Analysis - The upstream of the liquid cooling industry consists of components like cooling towers and cold plates, while the midstream includes system integrators such as Vertiv and Envicool, and the downstream comprises AIDC service providers and operators [1][6][7] - Overseas and Taiwanese companies have a first-mover advantage in component manufacturing, but domestic manufacturers are gradually gaining ground due to cost-effectiveness and responsiveness [1][6][7] - The report highlights that established temperature control manufacturers are likely to benefit from the industry's growth, with a recommendation to focus on companies like Envicool [1][6][7] Group 4: Technological Developments - The evolution of cold plate technology is moving towards two-phase systems, which can enhance cooling capacity by over 150%, and micro-channel technology, which offers lower thermal resistance [1][6][40] - Companies like Microsoft are exploring microfluidic cooling technologies that significantly improve cooling efficiency compared to existing solutions [1][40] - Future trends indicate a shift towards high integration, low power consumption, and standardization in liquid cooling technologies [1][6][40]

Core Viewpoint - The liquid cooling market is expected to experience rapid growth due to advancements in AI chip power and density, with domestic manufacturers having opportunities to penetrate overseas markets, particularly through the entire liquid cooling industry chain, with a focus on Envicool (002837.SZ) [1] Group 1: Liquid Cooling Technology - In the AI era, data center heat density is increasing, making liquid cooling a mainstream cooling technology for intelligent computing centers [2] - Liquid cooling offers advantages over traditional air cooling, including faster temperature transfer, higher heat removal capacity, lower noise, energy savings, and space efficiency [2] - The current phase of liquid cooling primarily utilizes cold plate technology, with NVIDIA's latest commercial B-series GPUs adopting 100% liquid cooling architecture [2] Group 2: Market Potential - The global market for liquid cooling in data centers is projected to reach $10 billion by 2026, with North America expected to contribute significantly [3] - In North America, the unit value of cold plate liquid cooling is approximately $1,040/kW, with a potential market size of $3 billion driven by CSP cloud providers adopting liquid cooling solutions [3] - The domestic market's unit value for cold plate liquid cooling is around ¥5,000/kW, with expectations for accelerated penetration by 2025 and projected market sizes of ¥11.3 billion and ¥23.8 billion for 2026 and 2027, respectively [3] Group 3: Competitive Landscape - Traditional overseas cooling companies have early advantages, but domestic manufacturers can benefit from high cost-performance ratios, rapid response, customized services, and industrial capabilities [3][4] - Key players in the liquid cooling supply chain include component manufacturers, system solution providers, and end customers such as AIDC service providers and internet companies [3] - System integrators require comprehensive capabilities, with established companies like Vertiv and Envicool having advantages in temperature control stability [3] Group 4: Component Manufacturers - Component manufacturers face technical and customer barriers, with early partnerships with NVIDIA providing a competitive edge [4] - Domestic suppliers are expected to seize development opportunities as CSP cloud providers pursue higher cost-performance decoupled solutions [4]

Group 1: Investment Projects - The company has invested in a data center liquid cooling project through Hangyuan Photothermal (Beijing) Technology Co., Ltd., which utilizes advanced aerospace cooling technology, achieving a PUE of 1.1 and a WUE of less than 0.05 kg/kWh [2] - The company has invested 1,200,000 yuan in Chengdu Shuzhilian Technology Co., Ltd., holding a 0.915% stake as of August 31, 2025 [2] Group 2: Product Development - The company has developed a high-performance T1 AC SPD (surge protective device) for domestic photolithography machines, currently in the sample stage [2] - A new multifunctional protective device against lightning and electromagnetic pulses has been successfully validated in several defense projects [3] Group 3: Financial Performance and Shareholder Returns - Since its listing in 2015, the company has consistently prioritized investor interests, with a total cash dividend amounting to 9,878.11 million yuan over the years, representing 68.52% of the average net profit over the last three fiscal years [3] - The controlling shareholder has not reduced their stake since the company's listing and completed a share increase plan in August 2018, amounting to 1,000.22 million yuan [3] Group 4: Market Confidence and Management - The management expresses confidence in the company's future development despite market fluctuations, attributing any personal share reductions to individual financial needs [3]

Core Viewpoint - The development of AI is driving a significant increase in chip power consumption, leading to an accelerated shift from air cooling to liquid cooling solutions in data centers [5][6][10]. Group 1: Market Dynamics - The global liquid cooling market is expected to exceed 150 billion yuan, with a projected CAGR of 33.2% from 2025 to 2032, reaching approximately 211.4 billion USD (about 1517.7 billion yuan) by 2032 [3][38]. - The current liquid cooling market is primarily dominated by foreign and Taiwanese manufacturers, with a potential shift towards a more decentralized decision-making process as ODM manufacturers enter the market [3][35][36]. Group 2: Technological Advancements - The transition to liquid cooling is driven by the increasing power demands of AI chips, with NVIDIA's GB300 chip reaching a power consumption of 1400W, necessitating advanced cooling solutions [6][17]. - The liquid cooling architecture consists of a primary side (heat transfer) and a secondary side (IT equipment cooling), which are crucial for effective thermal management in high-density computing environments [11][30]. Group 3: Investment Opportunities - Investment opportunities are anticipated in the AIDC liquid cooling sector, particularly as domestic liquid cooling chains are expected to penetrate the market due to breakthroughs in domestic chip technology [2][3]. - Companies are encouraged to focus on segments benefiting from the rising capital expenditures in North America and the upgrade of GB300 liquid cooling solutions [3][40]. Group 4: Industry Trends - The demand for liquid cooling solutions is expected to grow significantly as data centers face stricter energy efficiency regulations globally, with PUE targets becoming increasingly stringent [8][9]. - The liquid cooling supply chain is currently characterized by a low concentration of market share, with no single company exceeding 15% market share, indicating a fragmented market landscape [31][34].