Summary of Liquid Cooling Technology Conference Call Industry Overview - Liquid cooling technology is transitioning from an optional solution to a necessary one for data center cooling, with major companies like Meta, Google, Amazon, and Microsoft adopting or preparing to adopt liquid cooling in their self-developed chips [1][2] - The liquid cooling market is expected to reach a scale of hundreds of billions, with the value of liquid cooling per chip estimated between 2000 to 3000 RMB, indicating potential for growth [1][4] Key Insights and Arguments - The market size calculation for liquid cooling is based on two main factors: 1. The value per chip multiplied by the number of chips, suggesting a market space in the hundreds of billions as high-power chips increase [3][4] 2. The cost of complete cabinets, with the ML72 cabinet costing around 500,000 to 600,000 RMB, and a potential market size of approximately 60 billion RMB if 100,000 cabinets are shipped [4] - The liquid cooling industry is currently in an explosive growth phase, with increasing penetration rates and significant growth opportunities for companies across the supply chain, particularly for leading firms like Inveck and others such as Chuanhuan Technology and Highcool [3][8] Company-Specific Insights - Inveck has several advantages in the liquid cooling sector, including a highly experienced management team with backgrounds from Huawei and Emerson, a focus on temperature control, and significant R&D investment, with the number of PhDs doubling last year [5] - Other notable companies in the liquid cooling management supply chain include Chuanhuan Technology, Qiangrui Technology, Shenling Environment, Yinlun Co., Tongfei Co., and Highcool, all of which are positioned to benefit from the burgeoning market [6][8] Product and Market Opportunities - The liquid cooling management supply chain includes various products such as cold plates, quick connectors, CDU pipelines, pumps, and plate heat exchangers, all driven by the demand for efficient heat dissipation [7][9] - Long-term prospects may also see the emergence of immersion cooling as a significant development direction [7] Future Market Outlook - The liquid cooling market is anticipated to experience substantial growth in the coming years, with companies like Meta, Google, and Amazon gradually launching related resource chips, potentially reaching market sizes in the tens of billions or even hundreds of billions [10] - The GB300 model is expected to enhance value compared to the GB200 model, with improvements in cold plate design and cooling capacity, indicating a trend towards more efficient cooling solutions [11] Technological Development and Market Expectations - As chip and cabinet power consumption continues to rise, the overall value of liquid cooling is expected to grow, with new technologies such as phase change cooling plates and new architectures providing additional market opportunities [12] - Recommended companies for investment include Inveck, Highcool, Shenling Environment, Tongfei Co., Kehua Data, and Yinlun Co., all of which are positioned well in the liquid cooling sector [12][13] Competitive Landscape - Companies with competitive advantages in the liquid cooling field include Inveck, Highcool, Shenling Environment, Tongfei Co., Kehua Data, and Yinlun Co., all providing comprehensive solutions and demonstrating strong performance in technological innovation and market expansion [13]

Core Viewpoint - The company emphasizes its commitment to product leadership, technological innovation, and lean management to navigate complex market conditions and drive high-quality development [1]. Group 1: Company Overview - The company, Yingtai Technology, specializes in the research, manufacturing, and sales of high-efficiency heat exchangers, with products widely used in heating, hot water, refrigeration, data centers, and industrial production [1]. - The company has developed core technologies in product design, production processes, and testing analysis, maintaining a leading position in the industry [1]. Group 2: Product Development - The newly developed R290 plate heat exchanger features advantages such as low refrigerant charge, low pressure, and environmental friendliness, aimed at expanding applications in new refrigerant fields [2]. - The performance validation and market development of the new product are progressing as planned [2]. Group 3: Market Position and Strategy - The company has established stable partnerships with well-known domestic and international brands, enhancing its market position and technical strength [3]. - The company holds 152 patents, including 20 invention patents, and has played a significant role in formulating national and industry standards, reflecting its technical influence [3]. Group 4: Future Outlook - The company plans to continue expanding into new application areas such as data centers, energy storage systems, and high-temperature heat pumps, aiming to diversify its business structure and reduce reliance on major clients [2]. - The company will implement a raw material price-locking strategy and customer price linkage mechanism to control cost fluctuations while advancing smart manufacturing to optimize cost structures [4].

Group 1: Company Performance and Financials - The company's revenue for 2024 is 525 million, a year-on-year decrease of 7.40% [9] - Net profit for 2024 is 59.43 million, down 41.25% compared to the previous year [9] - The gross profit margin for 2024 is 23.20%, which has decreased due to fluctuations in raw material costs [8] Group 2: Market Trends and Strategic Plans - The heat pump industry sales are projected to decline by 7.5% in 2024, but the International Energy Agency predicts global heat pump sales will continue to grow [3] - The company is focusing on enhancing its core competitiveness through technology innovation and strategic partnerships [4] - The company plans to expand its overseas market presence and optimize supply chain management to increase gross profit margins [4] Group 3: Product Development and Innovation - The company holds 152 patents, including 20 invention patents, and has participated in the formulation of several national and industry standards [7] - The R290 plate heat exchanger project aims to enhance product competitiveness by utilizing environmentally friendly refrigerants [6] - The company is developing a new production base for evaporative condensers to increase capacity for the data center market [9] Group 4: Investor Relations and Communication - The company acknowledges the need for improved communication with investors and plans to enhance interaction through various platforms [3] - The management is committed to addressing investor concerns regarding stock performance and market strategies [5] - The company is actively working on a comprehensive communication plan to increase engagement with shareholders [3]

Development History of Heat Exchangers - The global development of heat exchangers can be divided into three periods: exploration in the 19th century, preliminary development in the first half of the 20th century, and rapid development from the second half of the 20th century to the present [1][2] - In China, the heat exchanger industry has gone through four stages: initiation in the 1960s, growth in the 1980s, development in the 21st century, and innovation in recent years, with a focus on high efficiency and energy saving [3] Competitive Landscape of the Heat Exchanger Industry - The heat exchanger industry has formed a competitive landscape driven by technological advancement and market orientation, with leading foreign companies like Alfa Laval and domestic companies like Lansi Heavy Industry [4] - The market concentration for spiral tube heat exchangers is relatively high, with domestic companies holding a market share of 63.4% in 2021 [4] Industry Chain Analysis - The upstream of the heat exchanger industry includes raw material supply such as steel, rubber, and graphite, while the midstream focuses on manufacturing, and the downstream encompasses various application fields including petrochemicals and power generation [5][7][11] Market Size of the Heat Exchanger Industry - The market size of China's heat exchanger industry reached 845.6 billion yuan in 2021, with a projected growth from 868.9 billion yuan in 2022 to 992.1 billion yuan by 2026, reflecting a compound annual growth rate of 3.4% [20] - The spiral tube heat exchanger market in China is expected to grow from 19.3 billion yuan in 2022 to 38.1 billion yuan by 2026, with a compound annual growth rate of 18.5% [22] Development Trends in the Heat Exchanger Industry - The industry is moving towards larger, more efficient, and energy-saving products, with significant advancements in heat transfer efficiency and reduced pressure loss [23] - There is a deepening collaboration across the entire industry chain, with suppliers needing to customize products to meet specific client requirements [24] - The pace of domestic substitution is accelerating, with significant breakthroughs in materials and manufacturing processes for spiral tube heat exchangers, supported by national policies [25][26]