Targeting AI training/inference data centers, we provide a complete hardware + control solution from cold plates to CDU, secondary-side piping, and intelligent monitoring. The core product, XWall Cold Plate Liquid Cooling System, supports single-cabinet power density of 30kW~120kW and has been adapted to mainstream GPU servers including NVIDIA H100/B200 and Huawei Ascend. In 2024, this business segment generated revenue exceeding RMB 800 million, representing a year-over-year growth of 120%.
Focused on precision air conditioning for data center rooms and indirect evaporative cooling, serving traditional data centers and telecommunication base stations. This business provides stable cash flow and accumulates channel and customer resources for the new liquid cooling business.
Covering energy storage thermal management, charging pile liquid cooling, and 5G base station heat dissipation, among which energy storage liquid cooling serves as the second growth curve.
| Business Line | Revenue Share | Core Customers | Gross Margin |
|---|---|---|---|
| Data Center Liquid Cooling System | ~45% | Alibaba, Tencent, ByteDance, China Telecom | ~32% |
| Precision Temperature Control & Energy Saving | ~35% | Three major telecom operators, data center operators | ~28% |
| Other Heat Dissipation & New Energy | ~20% | CATL, State Power Investment Corp, etc. | ~25% |
Technology Moats
Moat 1: Microchannel Cold Plate Design and Manufacturing
Envicool has independently developed brazed microchannel cold plates. By optimizing flow channel topology and fin density, it achieves 15% lower thermal resistance than conventional solutions at the same flow rate. Targeting the B200 chip's per-card power consumption of 1000W+, its fourth-generation cold plate keeps chip junction temperature below 75°C, meeting ASIC reliability requirements. Patents cover cold plate flow channel structures, sealing processes, and anti-corrosion coatings.
Moat 2: Full-System Integration and Engineering Expertise
The core challenge of cold plate liquid cooling lies in system-level reliability (leak-free operation, low flow rates, high energy efficiency). Envicool has delivered over 300 liquid cooling projects to date, accumulating extensive expertise in CDU flow distribution strategies, pipeline pressure drop models, and O&M SOPs, forming a closed-loop "design-simulation-construction-tuning" capability. The company operates China's first third-party liquid cooling validation laboratory, capable of simulating long-term operating conditions under varying climates and loads.
Moat 3: Deep Engagement with Tier-1 Customers
Envicool has been placed on the liquid cooling product whitelists of internet giants such as Alibaba, Tencent, and ByteDance, and holds a leading share in carrier centralized procurement. In 2024, it became one of NVIDIA's partners, serving as a liquid cooling system integrator on NVIDIA's recommended supplier list.
| Dimension | Data |
|---|---|
| Global Data Center Liquid Cooling Market Share (including immersion cooling) | Approximately 8% (Envicool, 2024) |
| Domestic Cold Plate Liquid Cooling Market Share | Approximately 18% (Ranked second, only behind Sugon Data Energy at approximately 22%) |
| Industry Ranking | Top 2 domestically, Top 5 globally |
| Key Competitors | Sugon Data Energy (A-share listed), Golong Technology, Vertiv, CoolIT (unlisted) |
| Downstream Customers | Alibaba, Tencent, ByteDance, the three major telecom operators, GDS, Chindata |
Market Drivers: Single GPU power consumption has exceeded 1,000W, making it difficult for air cooling to achieve a PUE below 1.2. Cold plate liquid cooling can reduce PUE to below 1.1 without requiring changes to server motherboard design, making it the most mainstream high-density heat dissipation solution from 2024 to 2027. The domestic data center liquid cooling market is projected to exceed RMB 20 billion by 2027.
Financials & Growth
| Metric | Data (2024 Annual Report/Estimate) |
|---|---|
| Revenue | Approximately RMB 2.7 billion (liquid cooling business approximately RMB 800 million) |
| Gross Margin | Approximately 30% (liquid cooling business approximately 32%) |
| Net Margin | Approximately 12% |
| Core Growth Logic | AI computing power investment drives liquid cooling penetration rate from 5% to 40%; Envicool, leveraging its full-stack capabilities, is expected to increase its market share to 25% |
Recent Highlights: Newly signed liquid cooling orders in Q3 2024 increased +150% YoY, with orders on hand exceeding RMB 2 billion; energy storage liquid cooling business shipments are expected to double in 2025.
Key Risks:
- Technology substitution risk: If immersion liquid cooling costs decline rapidly, it could squeeze the market space for cold plate solutions.
- Raw material price volatility: Price increases in commodities such as copper and aluminum may impact gross margins.
- Customer concentration risk: Revenue from the top two customers accounts for approximately 40%.
- Valuation volatility: AI concept stocks carry high valuations; if compute investment slows, earnings growth may fall short of expectations.
Core Investment Thesis / Industry Value Summary:
Cold plate liquid cooling is the most definitive thermal management solution in the era of high-power AI chips. Leveraging its triple moat of "self-developed liquid cooling plates + system integration + endorsement by leading customers," Envicool is well positioned to fully benefit from the explosive growth of liquid cooling penetration in AI data centers from 5% to 50%. In the short term, focus on orders; in the medium term, on production capacity; in the long term, on technology iteration.