Core Viewpoint - The data center dry-type transformer industry is experiencing unprecedented growth opportunities and technological innovations driven by the acceleration of global digitalization and the explosive development of artificial intelligence (AI) technology [5][7]. Product Definition - Data center transformers are crucial devices designed for power distribution systems, responsible for voltage conversion, electrical isolation, and power protection. They are essential for reducing high or medium voltage electricity to the low voltage required by servers and related loads [2]. - Compared to ordinary transformers, data center transformers emphasize high reliability, low energy consumption, fire safety, and environmental adaptability. Common types include dry-type transformers and oil-immersed transformers, each suited for different power supply stages and environmental needs [2][3]. Industry Development Overview - The dry-type transformer market for data centers is projected to grow significantly, with global sales expected to reach $888 million in 2024 and $2.463 billion by 2031, reflecting a compound annual growth rate (CAGR) of 14.53% from 2025 to 2031. The Chinese market is anticipated to account for 31.46% of the global market in 2024, increasing to 33.62% by 2031 [7][8]. - Major international manufacturers include Schneider Electric, Siemens Energy, GE Vernova, Hitachi Energy, and Hyosung Heavy Industries, which collectively hold 56.80% of the market share in 2024 [7]. Industry Growth Drivers - The demand for data centers is surging due to advancements in cloud computing, AI, and big data technologies, particularly with the rise of hyperscale data centers. In 2023, over 300 data centers are under construction globally [10]. - China's "East Data West Computing" initiative is expected to drive over 100 billion yuan in new infrastructure investments annually, significantly increasing transformer demand in western hub nodes [11]. - The need for energy efficiency upgrades is pressing, with the EU's Energy Efficiency Directive mandating that new data centers achieve a Power Usage Effectiveness (PUE) of ≤1.3 by 2025, and China's requirement for eastern hubs set at ≤1.25 [11]. Technological Innovations - The industry is focusing on new materials like amorphous alloys and optimizing designs to reduce no-load and load losses, meeting higher energy efficiency standards [15]. - Integration of sensors and monitoring systems for real-time parameter tracking is becoming standard, enabling predictive maintenance and remote management [16]. - Modular designs are increasingly favored for their rapid deployment and scalability, catering to the dynamic needs of data centers [17]. Market Challenges - Fluctuations in raw material prices, such as copper and silicon steel, can directly impact manufacturing costs and profit margins [19]. - High R&D costs for developing energy-efficient and intelligent transformers pose significant challenges, especially for small and medium-sized enterprises [19]. - The tightening delivery timelines for data center construction necessitate optimized supply chain management to meet customer demands [19]. Competitive Landscape - The market is characterized by high entry barriers due to stringent efficiency, safety, and environmental standards that transformers must meet [20]. - Established brands enjoy strong customer loyalty and trust, making it difficult for new entrants to gain market share despite potential price advantages [20].

Core Viewpoint - Igor Electric Co., Ltd. held a targeted on-site research event with over 40 institutional representatives, discussing key topics such as overseas factory capacity layout, new energy customer expansion, data center power business trends, and future strategic planning [1] Group 1: Research Event Overview - The investor relations activity was categorized as a targeted research event, conducted on-site in Jijiang District, Ji'an City, Jiangxi Province [2] - Participating institutions included a diverse range of entities such as securities firms, funds, private equity, and proprietary trading, with notable representatives from firms like Ping An Fund, Huaxia Fund, and CICC [3] Group 2: Key Research Insights - **Overseas Factory Capacity**: The company has established production facilities in Thailand and Mexico, with Thailand's factory fully operational at a monthly capacity of 700 new energy transformers. The Mexican factory is in the testing phase and is expected to reach a monthly capacity of 500 transformers by mid-2026. The U.S. factory focuses on distribution transformers with an annual capacity of 21,000 units [4] - **Overseas Customer Expansion**: The company has formed partnerships with leading EPC clients in North America and is gradually establishing collaborations with energy storage customers in Europe and the U.S. This expansion is driven by the gradual release of overseas capacity and increasing global demand for transformers, particularly in new energy applications [5] - **Data Center Power Solutions**: The company noted that current global data center power solutions primarily use UPS, with some adopting HVDC solutions. The release of NVIDIA's 800V architecture is expected to enhance the penetration of HVDC solutions. The company has focused on developing phase-shifting transformers and dry-type transformers for data centers, with production capacity expected to be released by mid-2025, expanding sales to markets in Japan, the U.S., and Malaysia [6] Group 3: Strategic Goals and H-Share Issuance - The management highlighted the strategic significance of issuing H-shares to enhance brand recognition and support overseas business expansion. The raised funds will be allocated for R&D, production facility construction, global manufacturing system layout, and operational capital [7] - The current operational goals focus on building and releasing domestic and overseas capacity, enriching the product matrix, and enhancing core competitiveness, with specific performance targets referenced in the 2024 stock option and restricted stock incentive plan [7]