Group 1 - The demand for liquid cooling technology in data centers is rapidly increasing, transitioning from an optional to a necessary solution due to the explosive growth of AI computing power requirements [1] - Liquid cooling technology offers significant advantages such as efficient heat dissipation, energy savings, and noise reduction, making it suitable for high-density computing scenarios [1] - Trend Force predicts that the global adoption rate of liquid cooling in data centers will rise from 14% in 2024 to 26% in 2025, with the liquid cooling market in China expected to exceed 100 billion yuan by 2027 [1] Group 2 - The liquid cooling data center industry chain includes upstream components, midstream servers and infrastructure, and downstream data centers [2] - Several listed companies are actively investing in and promoting liquid cooling technology, with some offering comprehensive liquid cooling solutions across the entire value chain [2] - Companies like Kehua Data Co., Ltd. and Guangzhou High Cloud Energy Saving Technology Co., Ltd. are developing and providing various liquid cooling solutions, emphasizing their commitment to capturing market opportunities and driving growth in liquid cooling business [2]

Group 1 - The company reported Q2 2025 earnings that exceeded expectations, with H1 revenue of 3.733 billion yuan, a year-on-year increase of 0.06%, and a net profit attributable to shareholders of 244 million yuan, a year-on-year increase of 7.94% [1] - In Q2 2025, the company achieved a single-quarter revenue of 2.516 billion yuan, a year-on-year decrease of 1.19% but a quarter-on-quarter increase of 106.88%, with a net profit of 175 million yuan, a year-on-year increase of 14.81% and a quarter-on-quarter increase of 153.24% [1] - The company made asset impairment provisions of 41 million yuan and credit impairment provisions of 47 million yuan in Q2 2025, resulting in a net profit of approximately 263 million yuan after adjusting for impairment impacts, which was above expectations [1] Group 2 - The data center product revenue grew rapidly, with H1 revenue of 1.398 billion yuan, a year-on-year increase of 16.77%, and a gross margin of 29.35%, down 1.4 percentage points year-on-year [2] - Data center product revenue reached 784 million yuan in H1, a year-on-year increase of 34.19%, with a gross margin of 36.06%, up 0.11 percentage points year-on-year [2] - The company’s liquid cooling products made significant progress, with overseas exports of liquid cooling containers and a joint launch of high-density liquid cooling PODs with Muxi Co., indicating continued growth in data center product revenue [2] Group 3 - The overall gross margin improved structurally, with H1 gross margin increasing by 0.52 percentage points to 25.02%, and Q2 gross margin at 22.54%, up 1.65 percentage points year-on-year but down 7.61 percentage points quarter-on-quarter [3] - The company maintained good control over expense ratios, with sales, management, R&D, and financial expense ratios at 6.99%, 3.17%, 5.86%, and 0.07%, respectively, with financial expenses decreasing due to reduced convertible bond interest and increased exchange gains [3] - The net profit margin for H1 decreased by 0.56 percentage points to 4.45%, with Q2 net profit margin at 7.04%, an increase of 0.95 percentage points year-on-year and 1.13 percentage points quarter-on-quarter [3] Group 4 - The company maintains a "buy" rating, with expectations for net profits attributable to shareholders of 706 million yuan, 1.2 billion yuan, and 1.821 billion yuan for 2025-2027, representing year-on-year growth of 124.1%, 70.0%, and 51.7% respectively [3]

Core Insights - The company, Kehua Data, is a pioneer in the liquid cooling sector, having launched a full lifecycle service for liquid cooling data centers [1] - The company has developed cold plate and immersion liquid cooling products, with liquid cooling containers already exported overseas [1] - Kehua Data has implemented a decoupled liquid cooling pilot project for China Mobile's data center in Suzhou and is constructing a highly decoupled system architecture for the Nanjing Intelligent Computing Center [1] - The company is enhancing its liquid cooling technology R&D, collaborating with Muxi Co. to introduce a high-density liquid cooling POD specifically designed for high-performance GPU server clusters [1] - Kehua Data is actively integrating industry resources and collaborating with ecosystem partners to promote the development of a liquid cooling intelligent computing center ecosystem, aiming for a green and low-carbon industry transition [1]

Domestic Financial Market - The Ministry of Finance and the State Taxation Administration announced that starting from August 8, 2025, interest income from newly issued national bonds, local government bonds, and financial bonds will be subject to value-added tax [4] - The Hong Kong "Stablecoin Ordinance" has officially come into effect, aiming to improve the regulation of virtual asset activities, maintain financial stability, and promote innovation [4] - The central bank is developing the offshore RMB market to promote a stable and comprehensive liquidity supply channel while continuing to implement a moderately loose monetary policy [4] Industry Updates - The Ministry of Industry and Information Technology issued a notice on the 2025 annual special energy-saving inspection task list for the polysilicon industry, with related stocks including Tongwei Co., Ltd. and Daqo New Energy [5] - The progress of autonomous driving in Guangzhou is accelerating, actively cultivating component enterprises, with related stocks including Wanji Technology and Desay SV [5] - A treatment plan for Chikungunya fever has been released, leading to a significant increase in sales of mosquito repellent products, with related stocks including Kangzhi Pharmaceutical and Runben Co., Ltd. [5] Company Focus - Kehua Data has launched a full lifecycle service for liquid-cooled data centers, with liquid-cooled containers already exported overseas [6] - New Aluminum Era plans to invest no less than 500 million yuan to build a project with an annual production capacity of 800,000 lightweight high-strength auto parts [6] - Hongxin Electronics' subsidiary is co-building a green intelligent digital infrastructure project with the Qingyang government, with a total investment expected to be 12.8 billion yuan [6] - Hikvision reported a revenue of 41.818 billion yuan for the first half of the year, a year-on-year increase of 1.48%, and a net profit attributable to shareholders of 5.657 billion yuan, a year-on-year increase of 11.71% [6] Market Review and Outlook - On August 1, the market opened lower but experienced a small rebound, followed by a day of continued downward fluctuation, with total trading volume in the Shanghai and Shenzhen markets at 1.6 trillion yuan, a decrease of 33.7 billion yuan from the previous trading day [7] - Sectors such as traditional Chinese medicine, education, photovoltaic, pharmaceuticals, logistics, and software development saw significant gains, while sectors like shipping, insurance, and semiconductors experienced varying degrees of pullback [7] - Despite the index decline, the number of rising stocks increased, with only 9 stocks hitting the limit down, indicating no signs of risk expansion [7] - The overall A-share market is showing signs of capital switching between high and low, with important support zones below the index, suggesting a potential balance between bulls and bears [7] - Structural market conditions are expected to remain a key feature, with recommendations to avoid overvalued dividend sectors and focus on low-position stocks benefiting from "anti-involution" policy-driven rebound opportunities [7]

Core Insights - The company has launched a full lifecycle service for liquid-cooled data centers, indicating a strategic move towards advanced cooling solutions in the data center industry [1] - The company has developed both cold plate and immersion liquid cooling products, with liquid-cooled computing containers already exported overseas, showcasing its international market reach [1] - A pilot project for a decoupled liquid cooling system has been established for China Mobile's Yangtze River Delta (Suzhou) data center, highlighting the company's innovative approach to infrastructure [1] - The company has created a highly decoupled system architecture for China Mobile's Intelligent Computing Center (Nanjing), which aligns with leading domestic liquid cooling servers, further establishing industry benchmarks [1] - In collaboration with Muxi Co., the company has introduced a high-density liquid-cooled computing POD, specifically designed for high-performance GPU server clusters, demonstrating its commitment to R&D in next-generation infrastructure [1]