Core Viewpoint - Company has achieved significant recognition for its environmentally friendly new materials, particularly in the organic silicon sector, following four years of high investment in R&D [2][3] Group 1: Financial Performance - The company reported a revenue growth of 7.93% and a net profit growth of 21.42% in its latest quarterly report, indicating strong performance within the organic silicon industry [2] Group 2: New Material Development - The company focuses on developing new organic silicon products that are both environmentally friendly and economically viable, addressing the growing restrictions on fluorinated compounds (PFAS) due to their environmental persistence [3] - The company has introduced ultra-low viscosity cooling liquids and three-proof paints made from non-toxic organic silicon, which can replicate the functions of fluorinated materials [3] Group 3: Market Opportunities - The company is positioned as a provider of comprehensive solutions for immersion cooling, with products already on the market that meet safety standards for electric vehicle batteries, which will be enforced starting July 2026 [4] - The market for organic silicon immersion cooling liquids is expected to grow significantly, driven by the rapid development of the new energy industry and increasing cooling demands from data centers [5] Group 4: Regulatory Environment - Upcoming regulations in the U.S. and China are set to restrict the use of PFAS in electronic products, creating a pressing demand for alternative materials such as the company's three-proof paints [6] - The company’s three-proof paint products are designed to meet the protective needs of various electronic applications, offering advantages in moisture resistance, insulation, and heat resistance [6] Group 5: Medical Applications - The company has also ventured into the medical and personal care sectors with its silicone gel products, which can aid in scar treatment and skin adhesion [7] - Recent regulatory actions against multinational companies in the medical silicone gel market present an opportunity for domestic companies to capture market share [7]

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) has officially released the GB38031-2025 safety requirements for power batteries used in electric vehicles, mandating "non-flammability and non-explosion" as a compulsory requirement, effective from July 1, 2026 [1] Group 1: Regulatory Developments - The MIIT, along with eight other departments, issued an action plan for the high-quality development of the new energy storage manufacturing industry, emphasizing the need for safety standards that prevent thermal runaway and overcharging [1] - The new regulations include the establishment of a safety risk assessment system and the classification of energy storage battery standards, with a focus on "fully immersed fire prevention" technology [1] Group 2: Company Opportunities - Runhe Materials has successfully passed national standard tests for its immersion cooling lithium batteries and electric bicycle solutions, achieving "no smoke, no fire, no explosion" [1] - The company has introduced at least seven types of ultra-low viscosity cooling liquids suitable for various applications, including data centers, energy storage, and electric vehicles [1][2] Group 3: Product Features and Market Position - Runhe Materials' ultra-low viscosity cooling liquid can operate in temperature ranges from -78°C to 200°C, addressing issues related to battery freezing in cold environments [3] - The product is significantly cheaper than fluorinated liquids and increases battery cycle life by 33%, meeting cost control demands from battery and vehicle manufacturers [3] - The company has established a stable operation of indoor energy storage cabinets since November last year, providing empirical data for expanding from energy storage batteries to power batteries [3]

Core Viewpoint - The organic silicon materials industry is entering a new growth cycle driven by the digital economy and "dual carbon" strategy, with Runhe Materials (300727) making significant advancements in liquid cooling technology and expanding its overseas market presence [1][9]. Group 1: Liquid Cooling Technology - Runhe Materials has achieved mass production in the immersion liquid cooling sector, with a customized three-in-one solution receiving positive market feedback and multiple customer pilot collaborations [1][2]. - The company's liquid cooling technology has demonstrated superior performance in viscosity, heat dissipation efficiency, stability, insulation, and compatibility under low-temperature conditions, making it suitable for energy storage and data center applications [2][3]. - The immersion cooling method significantly reduces energy consumption by 90%-95% compared to traditional air cooling systems, while also minimizing space requirements [3]. Group 2: Product Development and Innovation - Runhe Materials has introduced several ultra-low viscosity cooling liquids suitable for data centers, energy storage, electric vehicles, and base stations, with temperature ranges from -78°C to 200°C [5]. - The company has a strong patent portfolio with 75 patents, of which nearly 80% are invention patents, supporting its research and development capabilities [2][6]. - The ultra-low viscosity cooling liquids are competitively priced at a fraction of the cost of fluorinated liquids, while meeting national safety standards for non-flammability and non-explosiveness [6]. Group 3: Overseas Market Expansion - Runhe Materials has shown resilience in expanding its overseas business, achieving sales of 383 million yuan in 2024, accounting for 28.87% of total revenue, with a focus on localizing services to enhance customer loyalty [8]. - The company has strategically avoided significant exposure to international trade friction by limiting its revenue from the U.S. market to 1.14% [8]. Group 4: Financial Performance - In 2024, Runhe Materials reported a revenue of 1.327 billion yuan, a year-on-year increase of 16.96%, and a net profit of 96.24 million yuan, reflecting a growth of 17.06% [9]. - The company aims to balance capacity expansion with shareholder returns, emphasizing the importance of enhancing market competitiveness and efficient use of raised funds [9].