Core Viewpoint - The company, Inveck, reported a significant increase in revenue and net profit in Q2 2025, driven by strong demand in data centers, energy storage, and AI servers, despite facing challenges such as declining gross margins and increased cash flow pressure [2][3][7]. Financial Performance - Q2 2025 revenue reached 16.41 billion, a year-on-year increase of 69.67% [4][3]. - Net profit attributable to shareholders was 1.68 billion, reflecting a 37.98% increase year-on-year [5][3]. - For the first half of 2025, total revenue was 25.73 billion, up 50.25% from the previous year [7][17]. - Gross margin for Q2 was 25.97%, down 19 percentage points compared to the previous year [6][8]. Operational Insights - The company generated over 2 billion in revenue from liquid cooling related to computing equipment and data centers during the reporting period [7][17]. - R&D expenses amounted to 1.96 billion, representing 7.6% of revenue, focusing on advanced technologies like liquid cooling and high-density heat dissipation [17]. - The company’s construction in progress balance increased to 2.24 billion, indicating capacity expansion to meet market demand [17]. Cash Flow and Working Capital - The net cash flow from operating activities was -2.34 billion, with a significant increase in inventory and accounts receivable [21][19]. - Accounts receivable rose to 28.1 billion, with an increase in turnover days, indicating potential collection challenges [19][18]. - Inventory surged to 12.39 billion, up 40.10% from the beginning of the year, reflecting strong order intake but increased turnover pressure [15][17]. Market Demand and Product Performance - Demand for data center temperature control equipment remains a key growth driver, benefiting from AI computing needs [13][16]. - The cabinet temperature control energy-saving products performed well, with a low bad debt provision ratio of 1.18%, indicating high customer quality [14][20].

Core Insights - The company reported a significant revenue growth of 69.67% year-on-year in Q2, reaching 1.641 billion yuan, driven by strong demand from data centers, energy storage, and AI servers [1][3] - The net profit attributable to the parent company for Q2 was 168 million yuan, reflecting a year-on-year increase of 37.98% [1] - The gross profit margin for Q2 was 25.97%, a decrease of 19 percentage points compared to the previous year [1] Financial Performance - For the first half of 2025, the company achieved a revenue of 2.573 billion yuan, a 50.25% increase from 1.713 billion yuan in the same period last year [3] - The net profit for the first half of 2025 was 216 million yuan, up 17.54% year-on-year [1][3] - The gross profit margin for the first half of 2025 was approximately 26.16%, down from 28.48% in the previous year, indicating increased cost pressures [3] Operational Highlights - The company’s cash flow from operating activities was negative 234 million yuan, with a significant increase in inventory and accounts receivable [4] - Accounts receivable increased to 2.81 billion yuan, with a turnover period extending, indicating potential collection challenges [4] - The company’s inventory rose to 1.239 billion yuan, a 40.1% increase from the beginning of the year, reflecting strong order demand but increased turnover pressure [2][3] Business Development - The data center temperature control equipment remains a key growth driver, benefiting from AI computing power demand [2][3] - The company invested 196 million yuan in R&D, accounting for 7.6% of revenue, focusing on advanced technologies such as liquid cooling and high-density heat dissipation [3] - The company is actively expanding capacity, with construction in progress amounting to 224 million yuan, indicating a commitment to meet market demand [3]