Hunan Aihua Group Co Ltd

After market close on September 18, Aihua Group disclosed its 2026 plan to issue A-shares to specific investors, aiming to raise no more than 1.88 billion yuan for an integrated high-end capacitor capacity expansion project and to supplement working capital. This marks the company's first refinancing in eight years. The previous fundraising was through publicly issued convertible corporate bonds in 2018, with net proceeds of about 677 million yuan, all of which have been fully used. The number of subscribers will not exceed 35, and the number of shares to be issued will not exceed 30 percent of the company's total share capital before the issuance, namely 119,633,958 shares. The integrated high-end capacitor capacity expansion project has a total investment of about 1.507 billion yuan and a construction period of 24 months, located in the Electronic Information Industrial Park in Heshan District, Yiyang City, Hunan Province. In the first half of 2026, the company achieved operating revenue of 2.27 billion yuan, up 15.35 percent year on year, and net profit attributable to the parent company of 170 million yuan, up 17.21 percent year on year. Revenue from industrial control and new energy products has risen to 54 percent of the total. The issuance still needs to be approved by the company's shareholders' meeting, reviewed and approved by the Shanghai Stock Exchange, and registered with the China Securities Regulatory Commission before implementation.

Aihua Group released its 2026 interim report, with total operating revenue of 2.27 billion yuan and net profit attributable to the parent company of 170 million yuan. Net cash inflow from operating activities was 36.9082 million yuan, ranking 43rd among disclosed peer companies. The company's latest asset-liability ratio was 36.71%, up 0.65 percentage points from the previous quarter and up 0.98 percentage points from the same period last year. Gross margin was 20.20%, down 2.42 percentage points from the previous quarter. ROE was 4.27%, and diluted earnings per share was 0.43 yuan. The number of shareholders was 35,400, and the top ten shareholders held 71.48% of the total share capital.

On the morning of August 14, the liquid cooling server concept sector was active. Jones Tech hit the 20 percent daily limit up, Aihua Group and Kangsheng Co. also hit limit up, while Jintian Copper, Siquan New Materials, and Yidong Electronics followed higher. On the news front, China's first national standard for data center liquid cooling, GB/T48023-2026 Technical Specification for Cold Plate Liquid Cooling Systems in Data Centers, led by Sugon Data Energy under Sugon, was officially approved and released, and will take effect on February 1, 2027. The standard systematically regulates technical requirements and testing methods for cold plate liquid cooling systems and key components for the first time, covering the entire process from system design, component requirements, hydraulic calculations, testing and verification, to deployment and operation and maintenance. Guotai Haitong Securities analysis pointed out that generative AI and large model training are driving server rack power density steadily higher, traditional air cooling is gradually hitting physical limits, and liquid cooling has shifted from an alternative for high-performance computing to a core support for next-generation computing infrastructure. China continues to tighten PUE control indicators for data centers, with new large and ultra-large data centers required to gradually reduce PUE to below 1.3, and energy-saving policies are shifting from advocacy to mandatory access constraints, forcing intelligent computing centers to increase liquid cooling deployment. Multiple institutions view the third quarter of this year as a watershed for industry performance. Zheshang Securities judges that large-scale shipments of Nvidia VR200 cabinets are the core driver, and upstream component makers are expected to receive concentrated batch orders in the third quarter. Overseas leaders' earnings also released positive signals. Vertiv reported second-quarter revenue of 3.274 billion US dollars, up 24 percent year on year, adjusted operating profit jumped 51 percent year on year, and backlog reached 15 billion US dollars. The company raised its full-year guidance and said liquid cooling order demand is strong.