Summary of the Conference Call for Su Lian Co., Ltd. Industry Overview - The global liquid cooling market is expected to reach 200 billion RMB by 2030, driven primarily by the growth of domestic computing power [2][4] - The UQD (Quick Disconnect) market is projected to reach 20 billion RMB by 2030, with current dominance by Western companies like Parker Hannifin and Stäubli [2][5] Company Insights - Su Lian Co., Ltd. is actively positioning itself in the data center liquid cooling sector, having developed UQD products that meet OCP standards and established connections with domestic server manufacturers and international thermal management companies [2][7] - The company has extensive experience in automotive nylon piping and connectors, particularly in thermal management systems, providing a technological and cost control advantage for its transition to the server liquid cooling market [2][8] Financial Performance - Su Lian Co., Ltd. has maintained a gross margin of approximately 22% over the past two years, attributed to its strong cost control capabilities [2][10] - Revenue growth is expected to be around 25% in the coming years, with performance growth potentially reaching 35%, although risks such as UQD development falling short of expectations and rising raw material prices need to be monitored [3][14][15] Market Trends - The server liquid cooling market is anticipated to grow significantly, with global computing power expected to reach 700 billion FLOPS by 2030, leading to a corresponding increase in the liquid cooling system market [4] - UQD is crucial in the server liquid cooling market, with its complexity increasing alongside computing power, which in turn raises the average selling price (ASP) of UQD products [5][6] Competitive Advantages - Su Lian Co., Ltd. leverages its experience in nylon connectors and high-precision manufacturing to explore new materials and processes, such as using engineering plastics instead of metals, which could lower costs and enhance production efficiency [8][9] - The company's system engineering capabilities allow for rapid product adjustments in response to market changes, a critical factor in the fast-evolving data center liquid cooling market [11] Risks and Challenges - Key risks include the potential underdevelopment of the UQD market and significant increases in raw material prices, which could impact profitability and market performance [15]