Company and Industry Summary Company: 维谛技术 (VIT Technology) Key Financial Performance - The company reported a Q4 2025 revenue of $2.88 billion, representing a year-over-year increase of 22.74% [1] - Net profit for Q4 2025 was $450 million, showing a significant year-over-year growth of 203.13% [1] - For the full year 2025, total revenue reached $10.23 billion, up 27.69% year-over-year, with net profit at $1.33 billion, reflecting a 168.82% increase [1] - The company has raised its revenue guidance for 2026 to a range of $13.25 billion to $13.75 billion, exceeding market expectations of $12.39 billion by 7% to 11% [1] Order Growth and Market Demand - Organic business orders for Q4 2025 increased by 252% year-over-year, leading to a backlog of $15 billion, with a book-to-bill ratio of 2.9x [2] - The demand for AI infrastructure remains strong, with no signs of peak demand, indicating a sustained growth potential in the global liquid cooling market [2] - Major cloud service providers (Amazon, Microsoft, Alphabet, Meta) are maintaining high capital expenditures, with a projected year-over-year growth rate of nearly 60% in 2025 [2] - In AI infrastructure, the value contribution of cooling systems is approximately 5%-8%, with liquid cooling solutions' penetration increasing alongside chip power consumption [2] Industry Insights - The delivery of AI infrastructure has transitioned from early framework agreements to substantial scale order fulfillment [2] - Suggested companies for further attention include 汉钟精机 (Hanzhong Precision), 冰轮环境 (Binglun Environment), 英维克 (Yingweike), 同飞股份 (Tongfei Co.), and 宏盛股份 (Hongsheng Co.) [3]

Core Insights - The company, Jialitu (603912.SH), has developed multiple core technologies, particularly focusing on CPU liquid cooling technology [1] - The main objectives and components of the liquid cooling system development include integration of the liquid cooling system, research on the advantages and disadvantages of cold plate and immersion systems, design of the liquid cooling system, boiling heat transfer research, cooling liquid research, and application studies of the liquid cooling system [1] Product Application - The company's liquid cooling products have already been implemented in various applications, such as in the computer room of National University of Defense Technology, which utilizes a cold plate liquid cooling system [1] - The cooling source for this application consists of three closed cooling towers with a capacity of 325 kW each, and the end configuration includes two 280 kW and two 350 kW cabinet-style CDU units, providing cooling for 37 cabinets, each rated at 20 kW [1] - The end system employs prefabricated stainless steel pipelines [1]

Core Viewpoint - The liquid cooling distribution unit (CDU) is essential for efficient cooling in data centers, especially with the rise of AI and high-density chip architectures, leading to a projected market growth of the liquid CDU to $2.32 billion by 2031 with a CAGR of 18.2% [2][8]. Market Growth - The liquid CDU market is experiencing rapid growth due to the increasing demand for AI-driven applications and high-density computing [1][2]. - The market is expected to reach $2.32 billion by 2031, with a compound annual growth rate (CAGR) of 18.2% [2]. Competitive Landscape - The CDU market is becoming increasingly competitive as more companies enter the space, driven by its significant market potential [2]. - The top three manufacturers hold a combined market share of 56% [7]. Technological Innovation - Continuous innovation is occurring in CDU technology, with a focus on enhancing the performance of liquid CDUs despite their complexity [2]. - Liquid CDUs offer superior cooling performance compared to air-cooled systems, which are limited in handling high-density workloads [8]. Driving Factors - The rise in power density of modern IT equipment, such as high-performance servers and AI accelerators, is a major driver for liquid cooling applications [8]. - Liquid cooling systems provide more efficient heat transfer and dissipation, allowing data centers to maintain optimal operating temperatures [8]. Barriers to Adoption - The installation of liquid cooling systems requires additional resources, such as electricity and water, which can increase costs and pose challenges to market penetration [9]. - Traditional air cooling methods remain prevalent, creating resistance to the adoption of liquid cooling technologies [9]. Industry Opportunities - Growing environmental awareness and stricter energy regulations are pushing data centers to adopt more sustainable practices, with liquid cooling offering a viable solution [10]. - Liquid cooling can reduce overall energy consumption and carbon footprint, providing long-term cost savings for data center operators [10]. Challenges for Chinese Enterprises - Chinese liquid CDU manufacturers face challenges such as increased export costs and supply chain restructuring due to U.S. tariff policies [11]. - Companies are seeking to diversify markets and innovate technologically to navigate these challenges [11].