Summary of Key Points from the Conference Call Industry Overview - **Industry**: Data Center Equipment in China - **Key Companies**: Kstar and Megmeet Core Insights 1. **Accelerating Shipment Growth**: Both Kstar and Megmeet expect significant growth in AIDC power equipment shipments starting from 2026, driven by an increase in AIDC capital expenditures [2][3] 2. **Market Share Gains**: There is potential for both companies to gain market share from US hyperscalers due to slow capacity expansion among global power equipment manufacturers and the introduction of new power technologies [2] 3. **Next-Generation Technology**: The ramp-up of 800VDC technology is anticipated to begin by the end of 2026, with commercialization of SST expected around 2028 [2] Company-Specific Insights Kstar 1. **US Orders Growth**: Kstar is experiencing positive progress in US-related UPS orders, which are expected to contribute to earnings in 2026 [3] 2. **Product Demand**: The company anticipates a strong demand for UPS systems, particularly the 600kW models, while also expecting to increase shipments of products over 1MW starting in 2026 [3] 3. **New Customer Acquisition**: Kstar plans to expand its customer base domestically, targeting companies like Bytedance, Kuaishou, and JD [3] 4. **HVDC Prototype**: A HVDC prototype is expected to be delivered in February 2026, with validation and delivery commencing in the second half of 2026 [3] 5. **BESS Shipment Recovery**: Kstar expects a recovery in BESS shipments and margins into 2026, driven by demand in Europe and Southeast Asia [3] Megmeet 1. **Strong Order Backlog**: Megmeet has a solid order book, which supports its optimistic outlook for overseas shipment growth and market share gains starting in 2026 [4] 2. **Supplier Selection Involvement**: US CSPs are increasingly involved in the supplier selection process for AIDC power equipment, which could benefit Megmeet [4] 3. **Cost Management**: Management expects R&D and SG&A expenses as a percentage of revenue to decrease as the AIDC power equipment business scales, leading to a recovery in net margins [4] 4. **800VDC Product Showcase**: Megmeet showcased its 800VDC product at the 2025 OCP, with plans to send a prototype for trial testing in mid-2026 [4] Risks and Considerations 1. **Downside Risks**: Major risks for the data center equipment sector include slower-than-expected growth in AI data center capacity, slower penetration of high-power density products, and challenges in gaining market share in the overseas AIDC equipment supply chain [6]