Chengtian Great Industry: Liquid cooling business is still in the early stage of small batch delivery, and gross profit margin is expected to increase with scale.

Chengtian Weiye stated in institutional research that the company's liquid cooling business is currently in the stage of small batch order delivery, and the current gross profit margin level is constrained by the initial production scale, which cannot objectively reflect the scalability of profitability. It is expected that as the order volume breaks through, the gross profit margin is expected to be substantially optimized. The size of the liquid cooling market is large. Although the company's revenue share in this area is currently low, it is expected to grow rapidly with the introduction of customer mass production, and is expected to become an important source of income. In addition, the power consumption of chips is still on the rise, and the demand for liquid cooling for heat dissipation continues to increase. The company closely follows customer demand for technological iterations and actively deploys next-generation liquid cooling technologies such as MLCP.