Summary of Ice Wheel Environment's Conference Call Company Overview - **Company**: Ice Wheel Environment - **Industry**: Low-temperature refrigeration, HVAC (Heating, Ventilation, and Air Conditioning), and nuclear power Key Financial Performance - **Revenue**: 31.2 billion RMB in H1 2025, a year-on-year increase of over 30% [2][3] - **Net Profit**: 2.66 billion RMB, a year-on-year decrease of 20% [2][3] - **Low-temperature refrigeration revenue**: 17.3 billion RMB, accounting for 55% of total revenue, down 15% year-on-year [3] - **Special air conditioning revenue**: 12 billion RMB, accounting for 39% [3] - **Industrial thermal management revenue**: 1.9 billion RMB, accounting for 6% [3] Segment Performance Low-temperature Refrigeration - **Food cold chain revenue**: 10.1 billion RMB, up 4% year-on-year [4] - **Energy and chemical equipment revenue**: 7.2 billion RMB, down 33% year-on-year [4] - **Overall gross margin**: Approximately 23%, with food cold chain slightly above 20% and chemical equipment exceeding 30% [4][5] HVAC Segment - **Total revenue**: 12 billion RMB, with overseas orders contributing 6.8 billion RMB (57% of total HVAC revenue) [6] - **Profit margin**: Overseas orders have a profit margin 7-8 percentage points higher than domestic orders [6] - **Domestic HVAC business**: Revenue down 10% year-on-year [7] Order and Delivery Insights - **Backlog**: Orders on hand have increased, with HVAC orders up 40% [7] - **IDC (Internet Data Center) related business**: Delivered 5.6 billion RMB in H1, with 4.8 billion RMB from overseas [7] - **New IDC orders**: 10 billion RMB signed in H1, with expectations for continued large contracts in H2 [7][10] Capacity and Production Challenges - **Capacity constraints**: Company is hiring technical workers and leasing space to address production bottlenecks [7][20] - **Annualized HVAC delivery value**: Expected to approach 30 billion RMB, but full achievement unlikely within the year [7] - **Order delivery cycle**: Varies by scenario, with some larger orders pushed to Q2 2026 due to capacity issues [19] Market Dynamics - **North American market**: Collaborating with two local general contractors, with one becoming the sole supplier of cooling equipment [14] - **Competition**: Major competitors in North America include Carrier, Trane, and others, with capacity constraints affecting order fulfillment [15][17] - **Challenges in overseas markets**: Perception of Chinese brands as low-end, lack of after-sales service networks, and stringent compliance requirements [27] Future Outlook - **Nuclear power business**: Orders increased by approximately 30% in 2025, with significant long-term potential due to global nuclear power station construction [29][31] - **Cold chain business**: Growth driven by national cold chain hub projects and increased demand for vacuum freeze-drying equipment [28] - **Acquisition plans**: Company is exploring potential acquisitions to fill gaps in its structure, though details remain uncertain [32] Tax Impact - **Q2 tax impact on net profit**: Approximately 3 percentage points due to various factors including normal taxation of overseas subsidiaries and differences in tax accounting [33] Conclusion Ice Wheel Environment is navigating a complex landscape with strong revenue growth in certain segments, while facing challenges in profitability and capacity. The company is strategically positioning itself for future growth in both domestic and international markets, particularly in the nuclear and cold chain sectors.

Group 1: Financial Performance - In Q1 2025, the company achieved a revenue of 75.51 million yuan, representing a year-on-year growth of 8.66% [5] - The net profit attributable to shareholders was 5.06 million yuan, with a year-on-year increase of 10.43% [5] Group 2: Industry Trends - The medical instruments and equipment manufacturing industry is experiencing steady growth, driven by continuous demand for low-temperature storage in life sciences and biopharmaceuticals [6] - The industry is shifting towards automation and intelligence, with government policies supporting domestic substitution and innovation in high-end medical devices [6] Group 3: Production Capacity and Investment Projects - The company operates four main production lines, including ultra-low temperature products and centrifuges, and has established additional production lines for various medical storage solutions [8] - Fundraising has been allocated to four projects: medical storage equipment, high-end medical devices, R&D center, and sales channel construction, with the sales channel project completed by the end of 2024 [8] Group 4: Strategic Business Planning - The company focuses on creating value for users and enhancing operational capabilities, with a strategy centered on deepening sample library ecosystems and expanding laboratory equipment offerings [9] - Continuous innovation and quality upgrades of existing products are prioritized, alongside the development of comprehensive solutions to facilitate technology transfer [9]

Industry Overview - The cold storage industry chain includes upstream equipment supply, midstream cold storage construction and operation, and downstream application fields such as food, pharmaceuticals, and chemicals [2] - The demand for cold chain logistics is continuously growing due to the rapid development of fresh e-commerce and pharmaceutical cold chains, providing a broad market space for low-temperature refrigeration equipment [4] Market Growth - In 2022, the sales revenue of China's low-temperature refrigeration equipment industry reached 657.58 billion yuan, with a compound annual growth rate of 4.0% from 2018 to 2022 [4] - By the end of 2023, China's total cold storage capacity is approximately 228 million cubic meters, representing a year-on-year growth of 8.6% [6] Regional Distribution - The East China, Central China, and North China regions have the largest cold storage capacities, with East China accounting for 39% of the total capacity [8] - The western regions have relatively less cold storage capacity, but cities like Chengdu and Chongqing have developed significant cold storage facilities [8] Cold Storage Classification - Cold storage is mainly classified into freezing warehouses (below -18°C), refrigerated warehouses (0-10°C), and constant temperature warehouses, with freezing warehouses making up 70% of the total [10] Competitive Landscape - The cold storage industry has a relatively low concentration, with the top 100 enterprises accounting for nearly 40% of the total capacity, indicating fierce competition among numerous companies [12] - Leading companies such as Shun'an Environment and Hanchong Precision occupy significant market positions with high revenue and profitability [12] Research Methodology - The research team utilized a combination of desktop research, quantitative surveys, and qualitative analysis to comprehensively analyze the cold storage industry's market capacity, industry chain, operational characteristics, profitability, and business models [14]