Maintenance of special medical pure water equipment in Central China

(Report producer/analyst: Zhao Liangbi, Galaxy Securities Research Institute)

Original title of the report: In-depth report of the communication industry: ICT "double carbon" new infrastructure, IDC temperature control new opportunities.

(1) The construction of computing power is related to the development of digital economy, and all countries are making continuous efforts.

Accelerate the cultivation of the data factor market, and the global computing power competition is constantly improving. On April 9, 2020, in the Opinions of the Central Committee of the Communist Party of China and the State Council on Building a More Perfect System and Mechanism of Factor Marketization, data, as a new production factor, first appeared in the document, alongside traditional factors such as land, labor, capital and technology. Computing power has been closely related to the national economy.

IDC & Tsinghua Industrial Research Institute jointly released the "20021-2022 Global Computing Power Index Evaluation Report", which shows that computing power is a key generating factor in the era of digital economy:

(1) From the overall trend and forecast of 20 16-2025, the proportion of digital economy in GDP of all countries has been increasing continuously, and it is estimated that the proportion will reach 4 1.5% in 2025.

(2) Computing power, as a key productivity factor in the era of digital economy, has become the core supporting force and driving force to tap the value of data elements and promote the development of digital economy.

(3) There is a significant positive correlation between the national computing power index and the trend of GDP. The evaluation results show that the digital economy and GDP of 1 5 key countries will increase by 3.5% and 1.8% respectively for every increase in the computing power index, and this trend is expected to continue in 2026 and 5438+0-2025. At the same time, through the further regression analysis of computing power index and GDP of different echelon countries, it is found that when a country's computing power index reaches more than 40 points, the driving force of GDP growth will increase to 1 .5 times for every increase of its computing power index, while when its computing power index reaches more than 60 points, its GDP will increase for every increase of 65,438 points.

With the continuous advancement of digitalization, the economic growth rate of developing countries is relatively high. According to IDC data, from 20 16 to 2025, the proportion of digital economy has been increasing. In 2025E, the global digital economy accounts for 4 1%, among which the digital economy in developed countries accounts for 48. 10%, which is 17.8 percentage points higher than that in developing countries. The comprehensive evaluation of China-US computing power index is relatively high, and China's computing power development level has increased by 13.5%, which is at a relatively high growth level. On the whole, the contribution of digital economy to the total GDP of all countries has been continuously improved, and the improvement of computing power has promoted the development of digital economy.

The global public cloud user market continues to grow, and the capital expenditure on IT continues to increase. Cloud is an important driving force to promote the digital transformation and upgrading of enterprises, and enterprises continue to increase investment in remote working technologies and infrastructure such as mobile technology and collaboration. IT is estimated that by 2023, user spending will reach nearly $600 billion, and cloud will account for 14.2% of the global enterprise IT consumption market. Software-based services (SaaS) is the largest market segment. It is estimated that the user expenditure in this market will increase to 208.08 billion US dollars in 2023E, an increase of 36.73% compared with 202 1. Cloud infrastructure (IaaS) will reach $65.438+056.276 billion, an increase of 70.53% compared with 2026.5438+0. In order to gain a comparative advantage in the era of digital economy, major countries in the world have made large-scale investment in data center construction. Under the severe influence of COVID-19 epidemic, the construction of data centers has maintained a rapid growth. It is expected that the cooperation between cloud service providers and telecom companies will increase in the next few years, and the global cloud market is expected to grow further.

The market scale of IDC in China is growing rapidly, and it is currently in a period of rapid development. Thanks to China's "new infrastructure" strategy and the rising Internet traffic, the scale of data center construction continued to grow in 20021year. According to the data of China ICT Institute, the scale of IDC industry in China in 20021year was about1500.2 billion yuan. In the past five years, the average annual compound growth rate of IDC market in China is about 30%, which is ahead of the global IDC market growth rate, and the growth rate of IDC market in China is relatively high in the past three years. The rapid growth of IDC industry in China is mainly due to the continuous promotion of 5G construction and the continuous flowering of 5G application projects in China. It is estimated that by 2025, the market size of China data center will reach 595.2 billion yuan. With the acceleration of the "East Computing and West Computing" project in the digital economy, the expanding demand of Internet and cloud computing customers, and the wide application of data centers in the fields of Internet of Things and artificial intelligence, the data center industry has broad development prospects and is expected to maintain rapid growth.

The number of IDC cabinets is increasing, and there are more and more IDC centers in East China. In 202 1 year, the number of IDC cabinets increased by 9910.5 million, with a growth rate of 30%. The total number of cabinets reached 4 1.506 million, with an annual growth rate of 3 1.39%. With the continuous penetration of digital economy into all fields of society in the 5G era, the explosive growth of data volume has increased the demand for computing power in the whole society, and it is expected to grow at a rate of more than 20% every year, which is expected to open up new market space. At present, most data centers in China are concentrated in the eastern and coastal areas. According to CDCC data, in 20021year, the number of cabinets in East China, North China and South China accounted for 79% of the national total, while the proportion in Northeast China and Northwest China was relatively low.

The rate of putting IDC on shelves in eastern China is high, and the construction in western China is accelerated. At present, the IDC computer room in China presents a huge difference between the east and the west, reflecting the characteristics of dense in the east and sparse in the west, hot in the east and cold in the west. Compared with 202 1 newly added cabinets, it can be seen that the shelf rate of data centers in eastern and coastal areas is higher, while that in western areas is lower. 202 1, the shelf rate in East China, North China and South China is about 60%-70%, while the shelf rate in Northeast China, Northwest China, Southwest China and Central China is only 30%-40%. In terms of policy layout, the state has continuously promoted the development of digital economy, forming a new pattern of regional coordinated development with data as the link. We will take the lead in transferring construction to the west for businesses that do not require high network delay. Due to the outstanding advantage of low temperature in the west, the implementation of "Dongdian West Computing" is conducive to improving the energy efficiency of data centers, the leap-forward development of western industries, and promoting the effective growth of regional economy.

(2) With the escort of the digital economy policy, the construction of the "East Counting and West Counting" project is expected to exceed expectations.

Grasp the opportunity of digital development and expand the new space of economic development. From June, 5438 to October, 2022 10, the State Council released the Tenth Five-Year Plan, emphasizing that digital economy is the main economic form after agricultural economy and industrial economy, and it is a new economic form with data resources as the key element, modern information network as the main carrier, integrated application of information and communication technology, and digital transformation of all factors as the important driving force to promote fairness and efficiency. At the same time, it is clearly stated in the plan that by 2025, the digital economy will be fully expanded, and the added value of core industries of the digital economy will account for 10% of GDP. Based on the above plan, on May 26, 2022, the Ministry of Industry and Information Technology pointed out at the 2022 China International Big Data Industry Expo that it would persist in moderately promoting the construction of digital infrastructure and accelerate the layout of industrial Internet and vehicle networking.

Promote the construction of green data centers and improve the utilization rate of renewable energy in data centers. China's energy structure is in the process of continuous optimization, and the distribution of new energy resources is uneven, especially hydropower, photovoltaic and wind energy are mainly concentrated in the central and western regions, while users are mainly in the eastern coastal areas. Although the power shortage in the eastern region has been partially alleviated through the "West-to-East Power Transmission" project, as a data center industry with high energy consumption, it is necessary to coordinate the development layout of the eastern and western regions and reduce energy consumption. Various provinces, cities and districts in China have successively issued various policy requirements that emphasize the green energy saving of data centers, which has promoted the intelligent upgrading of energy production, transportation and consumption, and catalyzed the low-carbon transformation of the energy industry.

The resources of the east and the west are effectively matched, and a national integrated collaborative innovation system is established. The "East-to-West Calculation" project is another major national strategic project after the South-to-North Water Transfer Project, the West-to-East Gas Transmission Project and the West-to-East Power Transmission Project. It guides massive data to flow from the east to the west in an orderly manner, optimizes the layout of data center construction, narrows the economic gap between the east and the west, and promotes the coordinated development of the east and the west. On February 7, 2022, the National Development and Reform Commission, the Central Information Office, the Ministry of Industry and Information Technology and the National Energy Administration jointly issued a notice, agreeing to start the construction of national computing hub nodes in Beijing-Tianjin-Hebei, the Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and plan 10 national data center clusters. The overall layout design of the national comprehensive big data center system was completed, and the "East Computing and West Computing" project was officially launched. Relying on "east-to-west computing", the country continues to promote the coordinated development of data centers, computing power, cloud, network, data elements, data applications, security, etc., forming a new pattern of regional coordinated development with data as a link, and helping the digital economy to develop continuously.

The competitiveness of global computing networks is prominent, and the ICT industry chain is expected to usher in new development space. Through the construction of the national comprehensive data center, expanding the scale of computing facilities, improving the efficiency of computing capacity, and realizing the large-scale and intensive development of national computing capacity, it is expected to further enhance the level of national computing capacity and global competitiveness. At the same time, expanding the coverage of data centers in the central and western regions can absorb new green energy in the central and western regions and continuously optimize the energy efficiency of data centers. Through the construction of computing hub and data center cluster, it will effectively promote upstream and downstream investment in related industries, promote data circulation and value transfer in the east and west, extend the development space in the east, promote the development of the west, and form a new pattern of balanced development in the country.

(3) The goal of double carbon emission reduction is clear, and green energy saving becomes a necessity for development.

Energy reform is constantly innovating and upgrading, and low-carbon transformation is integrated into social and economic development. Since the last century, people have gradually realized the adverse effects of carbon emissions. Through unremitting efforts and extensive consultations, governments and international organizations have reached a series of important understandings under the framework of the United Nations and the World Climate Conference, forming the United Nations Framework Convention on Climate Change (signed in 1992, entered into force in 1994), the Kyoto Protocol (reached in 1997, entered into force in 2005) and the Kyoto Protocol.

Promote the energy revolution and implement the action plan for peak carbon dioxide emissions. In order to achieve the goal stipulated in the Paris Agreement, the government of China has also put forward the "Double Carbon Action Plan" which is in line with China's reality. On September 22nd, 2020, China announced at the 75th UN General Assembly that China will strive to reach the peak of carbon dioxide emission in 2030 and achieve the goal of carbon neutrality in 2060. The goal of "double carbon" in China has been formally established, which shows the determination and confidence of the China government in dealing with global climate change. At the same time, the government work report of 202 1 points out that we should do a good job in peak carbon dioxide emission and carbon neutrality, and formulate an action plan for peak carbon emission before 2030. Optimize the industrial structure and energy structure. Promote clean and efficient utilization of coal, vigorously develop new energy sources, and actively and orderly develop nuclear power on the premise of ensuring safety. Expand the scope of preferential income tax catalogue for environmental protection, energy-saving and water-saving enterprises, promote the research and development and application of new technologies, equipment and products for energy conservation and environmental protection, cultivate and expand energy conservation and environmental protection industries, and promote the efficient use of resources. Implement the goal of national independent contribution to climate change in 2030. Accelerate the green transformation of development mode, promote high-quality economic development and high-level protection of ecological environment, and reduce energy consumption and carbon dioxide emissions per unit of GDP by 13.5% and 18% respectively.

Focus on the low-carbon development of data center and realize the development of dual-carbon industry. Under the background of double carbon, the data center in the project of "Computing East and Computing West" moves west, and the PUE value is expected to decrease, which will lead to the efficient utilization of energy and electricity consumption. Energy efficiency, energy saving, innovation and upgrading are the general trend and inevitable requirements.

(1) The energy consumption of data centers is outstanding, and green energy saving is the development trend.

Green power has become a development trend and plays an important role in low-carbon development. With the development of data center industry, the proportion of data center energy consumption in the national economy is also increasing. The research shows that in 2025, the total energy consumption of data centers will reach 395.2 billion kW·h, accounting for 4.05% of the total electricity consumption of the whole society, and the proportion is increasing year by year. Overall, the power consumption generated by the IT equipment system consisting of servers, storage and network communication equipment accounts for about 45% of the total power consumption of the data center. Air conditioning system is also the key link to improve the energy efficiency of data center, and the power consumption generated accounts for about 40% of the total power consumption of data center. Reducing PUE will become the future development trend, mainly starting from refrigeration.

The carbon emissions of data centers have been continuously controlled, and the PUE value has been continuously improved. According to the statistics of the national electric power industry of the National Energy Administration in 2020, the consumption of standard coal in power plants with kilowatts and above is 305.5g, and the carbon dioxide emission is calculated at 2.7 tons per ton of standard coal. In 20021year, the national data center will emit 78.3 million tons of carbon dioxide, and in 2030, it is expected to emit about/kloc-0.50 billion tons of carbon dioxide.

Quantitative indicators for evaluating data center energy efficiency. In order to evaluate the energy efficiency of data center, PUE(Power Usage Effectiveness) is widely used as an important evaluation index, which is the ratio of all energy consumed by data center to energy consumed by IT load. PUE usually takes years as the measurement interval, in which the total energy consumption of data center includes energy consumption of IT equipment and energy consumption of refrigeration, power distribution and other systems, and its value is greater than 1. The closer to 1, the less energy consumption of non-IT equipment, that is, the better the energy efficiency level.

The energy consumption of air conditioning system and server system in data center accounts for a large proportion. The energy consumption of the data center mainly includes IT equipment, refrigeration system, power supply and distribution system, lighting system and other facilities (including security equipment, fire protection, waterproofing, sensors and related data center building management systems, etc.). ). Overall, the power consumption generated by the IT equipment system consisting of servers, storage and network communication equipment accounts for about 45% of the total power consumption of the data center. Among them, server system accounts for about 50%, storage system accounts for about 35%, and network communication equipment accounts for about 15%. Air conditioning system is still the key link to improve the energy efficiency of data center, and its power consumption accounts for about 40% of the total power consumption of data center. The power supply system and lighting system account for 10% and 5% of the total power consumption of the data center respectively.

(3) The temperature control system is continuously optimized, and the technological change of energy saving opens up new opportunities.

The trend of temperature control system diversification, energy-saving technology continues to break through. At present, the mainstream refrigeration methods include air cooling, water cooling, indirect evaporative cooling and liquid cooling. Choose the appropriate refrigeration technology according to the scale and environmental characteristics of the data center. Improving the energy efficiency of data center, especially the energy efficiency of air conditioning and refrigeration system, has become a research hotspot. At present, the improvement of energy efficiency ratio of air conditioning and refrigeration in data center mainly starts from two aspects: liquid cooling and natural cold source. From the point of view of refrigeration mode, air cooling will gradually be replaced by liquid cooling mode with flexible installation and higher efficiency. At present, liquid cooling technology is applied to 5G scenes, which usually cools backbone OTN equipment, bearer network equipment and 5G BBU equipment. Using liquid cooling technology, the heat of the heating element can be taken away by the liquid, realizing the natural heat dissipation of the server. Compared with traditional cooling methods, liquid cooling technology is more efficient and energy-saving.

The cooling system is constantly optimized. In order to objectively evaluate these refrigeration technologies and further improve the efficiency of energy saving and emission reduction, the refrigeration working group of data center of China Refrigeration Society thinks that it is more reasonable to use the comprehensive performance coefficient (GCOP) of data center refrigeration system as the evaluation index.

Among them, GCOP is the comprehensive performance coefficient index of data center cooling system, which is used to evaluate the energy efficiency of data center cooling system. The total energy consumption of the data center includes not only the power supply of the data center, but also the power supply of the generators configured in the data center. The energy consumption of refrigeration system includes the energy consumption of refrigeration system outside the machine room and the energy consumption generated by refrigeration equipment such as refrigeration fans, key pumps and fans in the cabinet powered by UPS.

In practice, in order to make the results of energy efficiency evaluation more convincing and comparable. The cooling working group suggested that the average comprehensive performance system of data center (GCOPA) and the comprehensive performance coefficient of data center cooling system (GCOPS) under specific working conditions should be used as evaluation criteria.

According to the above standards, the cooling working group analyzed the efficient data centers from Hohhot, Inner Mongolia, Shenzhen, Guangdong and Langfang, Hebei. These data centers are distributed in different building climate zones and use different system forms and operation strategies, such as efficient terminal, natural cooling, AI-controlled operation optimization, etc. The data shows that the new data center in the western region has better cooling energy consumption. The energy efficiency of data center cooling systems in China is quite different, so it is of great significance to improve the energy efficiency of data center cooling systems in China, and the cooling systems still have great energy-saving potential.

The capacity of data centers has been expanding, with greater contributions from China and the United States. According to the latest data of Synergy Research Group, the number of large data centers operated by large suppliers has increased to 700. In terms of critical IT load, the United States accounts for 49% of the capacity of these data centers, and China is the second largest contributor to the capacity of super-large data centers after the United States, accounting for 65,438+05% of the total. The remaining production capacity is distributed in Asia Pacific (13%), EMEA (19%) and Canada/Latin America (4%). It took five years to double the number of very large data centers, but it took less than four years to double the capacity.

The construction cost of air conditioning system is more. According to the data of IBM, the proportion of air conditioning system in the construction cost of data center is 16.7%. Overall, in 20021year, the total expenditure on data center infrastructure and equipment was185 billion US dollars, of which capital expenditure on energy accounted for a large share, and the efficiency of energy construction and utilization is expected to be further improved.

The capital of data center has grown steadily, and the temperature control market has opened up new space. According to the data of Synergy Research, in 20021year, the total expenditure of data center infrastructure equipment (including cloud/Feiyun software and hardware) was USD 654.38+85 billion, and the expenditure of public cloud infrastructure equipment accounted for 47%. Hardware-oriented servers, storage and networks account for 77% of the data center infrastructure market.

The rest are operating system, virtualization software, cloud management and network security. With reference to the global data center capital expenditure growth of 10% in 200210, assuming that the annual capital expenditure of data centers will increase by 10% in the next four years, the market size of temperature control system in China data center will be RMB 30 1 000 million in 2002/0, and will reach 44/0 in 2025.

(1) Invik: Building the whole industrial chain of temperature control, and benefiting the leaders of high-prosperity industries.

Leading precision temperature control faucet in China, focusing on precision temperature control and energy-saving products and solutions. Since its establishment, the company has been focusing on the research and development of precise environmental control technologies such as data rooms, and is committed to providing solutions for cloud computing data centers, communication networks, Internet of Things infrastructure and various professional environmental control fields, and providing energy-saving technologies in the "East Computing and West Computing" project.

The company's operating income has grown rapidly and its profitability has performed well. In 2022Q 1, the company realized revenue of 400 million yuan, up by 17. 10% year-on-year, and net profit returned to the mother was130,000 yuan, down by 59.26% year-on-year, which was mainly affected by factors such as rising raw material prices and repeated epidemics. In 20021year, invik realized an operating income of 2.228 billion yuan, up by 29.7 1% year-on-year. Since 20 17, the CAGR has reached 34.65%, mainly due to the acceptance and confirmation of some major projects of temperature control in the machine room, and the income of energy-saving products with temperature control in the cabinet has increased. Benefiting from the prosperity of the whole industry, the annual net profit was 205 million yuan, up 65,438+02.86% year-on-year. Since 2065,438+07, CAGR has reached 24.25%, mainly due to the continuous growth of air conditioning business in data centers and outdoor cabinets.

The gross profit margin of the company is generally stable and it is expected to stop falling and rebound in the future. In 20021year, the gross profit margin of the company's sales was 29.35%, down 9.50% year-on-year, mainly due to the rising cost of upstream raw materials and the great pressure on the company's overall profit. Overall, the net profit rate decreased, and the net profit rate of sales was 8.92%, down 15.85% year-on-year. With the company's continuous research and development of precision environmental control technologies such as data room, the technology platform has been reused and the scale effect has become more and more obvious. The company's future gross profit margin and net profit margin are expected to stabilize and rebound.

Evaporative cooling and liquid cooling technology are the future development trends. The company has sufficient technical reserves and comprehensive product coverage. At present, air cooling and chilled water are still the main temperature control methods in domestic data centers. Due to the improvement of heat density and energy consumption, the traditional scheme can no longer meet the market demand. The heat dissipation mode has gradually developed from the traditional air cooling mode to the new heat dissipation modes such as backplane air conditioning and liquid cooling. The cooling system of data center shows the trend that the cooling equipment is close to the server and the core heating equipment, and the advantages of liquid cooling and evaporative cooling technology are obvious.

R&D has continuously increased its investment, enhanced its core competitiveness, and continuously optimized its temperature control system. The company regards technological innovation as the main driving force of enterprise development and continuously increases investment in research and development. Despite the adverse impact of the rapid rise in upstream raw material prices and repeated epidemics, the company has always insisted on increasing research and development efforts to provide technical support for the company's subsequent development. As a leader in sub-sectors, Invik captures the market development trend in time and regards technological innovation as the main driving force of enterprise development.

The company has a rich product line and flexible solutions to highlight its competitive advantage. Invik's computer room temperature control and energy-saving products are mainly aimed at computer room-level special temperature control and energy-saving solutions in data centers, server rooms, communication rooms, high-precision laboratories and other fields, which are used to control and adjust the precision temperature, humidity and cleanliness of computer rooms or laboratory spaces. These include the special air conditioner for CyberMate computer room &; Products and solutions, such as laboratory special air conditioner, iFreecooling multi-pump circulating natural cooling unit, XRow inter-train air conditioner, XFlex modular indirect evaporative cooling unit, XStorm direct evaporative high-efficiency air wall cooling system, XSpace micro-module data center, XRack micro-module cabinet solution, XGlacier liquid cooling temperature control system, etc.

The company's products are provided to data center owners, IDC operators and large Internet companies directly or through system integrators. Over the years, the company has provided a large number of high-efficiency and energy-saving refrigeration products and systems for large data centers of users such as Tencent, Alibaba, Qinhuai Data, Wanguo, Dataport, China Mobile, China Telecom and China Unicom. In addition, Invik also provides cabinet temperature control and energy-saving products, mainly providing temperature control and energy-saving solutions for outdoor cabinets or containers such as wireless communication base stations, energy storage power stations, power transmission and distribution equipment cabinets at all levels of smart grids, and electric vehicle charging pile ETC gantry system, and providing cabinet temperature control products for intelligent manufacturing equipment.

(b) Good efforts: the operator market has stabilized, the Internet market has broken through, and the performance is expected to improve marginally.

Precision environmental temperature control faucet to create a constant temperature and humidity solution. The company's products are used in the precise environment of constant temperature and humidity, such as data center computer room and communication base station. Company customers cover government departments and communication, finance, Internet, medical care, rail transit, aviation, energy and other industries. Our products serve well-known enterprises such as China Telecom, China Unicom, China Mobile and Huawei. At present, the company has two categories of precision air conditioning equipment and water chillers, and 13 series of product lines. The advanced nature, reliability, energy saving and environmental protection advantages of products always maintain the leading position in the industry. At the same time, the company relies on the advantages of environmental control technology and energy-saving technology to provide energy-saving transformation services for the data center.

The company's operating income maintained growth and its net profit decreased. In 2022Q 1, the company achieved revenue of 65,438+22 million yuan, down 10.69% year-on-year, and net profit returned to the mother140,000 yuan, down 36.68% year-on-year, which was mainly affected by factors such as rising raw material prices, repeated epidemics and intensified competition.

In 20021year, Jiaotoe tried to realize an operating income of 667 million yuan, a year-on-year increase of 6.68%. Since 20 17, CAGR has reached 9.73%, and the annual net profit attributable to the mother was 85 million yuan, down 26.35% year-on-year. 202 1, the company's profit decline is mainly affected by the following factors, (65433. (2) With the continuous expansion of the market scale, the competition in the domestic computer room air conditioning market is fierce; (3) The prices of raw materials, especially bulk commodities, continue to rise. The average cost of raw materials accounts for more than 70% of the company's operating costs, which is the main component of the company's product costs. Copper and galvanized steel plate 202 1 has been on the rise, and the purchase price is 20%-40% higher than that in 2020, which leads to a large proportion of company costs.

Figure 17. The decline of the company's gross profit margin is influenced by many factors (unit:%).

The company has rich products and advanced technology in the field of precision environment. The company's products are used in the precise environment of constant temperature and humidity, such as data center computer room and communication base station. Company customers cover government departments and communication, finance, Internet, medical care, rail transit, aviation, energy and other industries. Our products serve well-known enterprises such as China Telecom, China Unicom, China Mobile and Huawei.

At present, the company has two categories of precision air conditioning equipment and water chillers, and 13 series of product lines. The advanced nature, reliability, energy saving and environmental protection advantages of products always maintain the leading position in the industry. At the same time, the company relies on the advantages of environmental control technology and energy-saving technology to provide energy-saving transformation services for the data center.

R&D investment has been continuously invested, and the efficiency of air conditioning has been continuously improved. Despite the adverse impact of the rapid rise of upstream raw material prices and repeated outbreaks, the company has always strengthened the construction of technical R&D team, strengthened cooperation with institutions and people such as universities and industry experts, promoted cutting-edge theoretical research and practice, and fully exerted the technical advantages in energy-saving control by relying on the existing R&D system to accelerate the development of intelligent energy-saving management system for computer rooms. The performance index of the company's products has been further improved, the basic research strength in improving the efficiency of air-conditioning heat exchangers and power supply and distribution technology has been strengthened, and the overall solution for environmental control of the company's computer room has been comprehensively improved.

The company's core technologies are constantly highlighted. At the end of 20021,the company had 36 core technologies and 28 projects under research, including communication module of closed and efficient refrigeration cycle, centralized control system of data center refrigeration station, VRF system of computer room air conditioning, liquid cooling technology of CPU, and preliminary application of VRF technology in the field of computer room air conditioning.

(III) Information of other energy-saving related companies

Shen Ling Environment is a leading enterprise in China, which provides overall solutions for artificial environment regulation, serving scene numerical control center, electric power, chemical industry, energy, rail transit, environmental protection, military industry and other fields. Products can be divided into three parts: data service air conditioning, industrial air conditioning and special air conditioning. The company is the main supplier of air conditioners for Huawei's data business and has cooperated with Huawei for many years. In addition to the rapid growth of Huawei's business, it has also been recognized by leading Internet companies such as Tencent. In addition, Shen Ling's environment also has a layout in energy storage.

Yimikang is committed to providing customers with products and overall solutions in the fields of communication room, data center, intelligent building and energy management, including the design, production and operation and maintenance services from hardware to software, from indoor precision air conditioning to outdoor magnetic suspension mainframe, from all-in-one machine and micro-module to large data center, so as to help customers face energy and ecological challenges. The company's key equipment, intelligent engineering, IOT software and intelligent services in the field of information and data can provide products and services for the data center industry chain.

Gaolan Co., Ltd. is a leading professional supplier of pure water cooling equipment in China and a national "little giant" enterprise. Starting with pure water cooling equipment and control system for high-power power electronic devices, the products are widely used in power electronic devices in all aspects of power generation, transmission, distribution and electricity consumption. Since 2020, through the merger and acquisition of the company, its new energy vehicle business income has increased substantially, and the income of power battery thermal management products and new energy vehicle electronic manufacturing products has increased substantially, accounting for 48.88% of the total income, surpassing pure water cooling equipment for the first time to become the company's largest source of income.

The breakthrough of energy-saving technology is less than expected, which leads to the slow release of supply-side capacity;

Raw materials are in short supply and prices are rising;

Market competition has intensified;

The growth rate of downstream data center market is less than expected.