On March 8, 2025, HEC and Innolight held a signing ceremony for a liquid cooling project cooperation in Suzhou and established a joint venture, Guangdong TeraCule Technology Co., Ltd. The joint venture is committed to integrating the advantageous resources of both parties, focusing on the global market promotion of integrated liquid cooling heat dissipation solutions, and building a full-chain competitiveness from the formulation of technical standards to commercial implementation.

This signing marks a further deepening of the comprehensive cooperation between the two parties in the strategic emerging industry of liquid cooling, opening a new chapter of all-around and in-depth cooperation. Through this cooperation, the two parties will jointly provide solid support for ensuring the stability of the industrial and supply chains of the liquid cooling industry, and inject new impetus into the high-quality development of the liquid cooling industry.

Mr Zhang Yushuai, Chairman of HEC Group, Mr Zhang Hongwei, Chairman of HEC (600673.SH), and Mr Liu sheng, Chairman of Innolight (300308.SZ), attended the signing ceremony.

With the rapid iteration of AI technology and the explosive growth of computing power demand, liquid cooling technology, boasting advantages such as ultra-high energy efficiency and high heat density heat dissipation capacity, is gradually becoming a must-have thermal control solution for AI Data Centers (AIDC). The liquid cooling industry is expected to evolve from the technological reserve stage to the full promotion stage, the heat dissipation field is poised to enter the era of full liquid cooling, and the global liquid cooling industry is ushering in a hundred-billion-level market increment space.

Having deeply cultivated the new materials and electronic components fields for more than 20 years, the company has seized a leading global position in core sectors including capacitors, fluorochemicals and high-end aluminum foil. Focusing on the liquid cooling industrial chain, the company, with a forward-looking vision, started from heat dissipation materials and components, and has completed the layout of the entire industrial chain covering upstream materials, midstream core components and downstream integrated liquid cooling solutions, emerging as one of the few enterprises worldwide with independent full-chain capabilities in liquid cooling technology.

Under the background of the national "Eastern Data and Western Computing" strategy, the company has seized the strategic development opportunities and carried out strategic cooperation with the Shaoguan Municipal Government. It plans to settle in the Shaoguan Data Center Cluster, the only national-level data center cluster in South China, and build a manufacturing base for data center liquid cooling equipment. The company will continue to invest R&D resources to optimize coolant formulations and heat dissipation system design. Leveraging the strategic position and policy advantages of the Shaoguan national-level data center cluster, it will conduct in-depth cooperation with upstream and downstream industrial chain enterprises to form an industrial cluster effect. This will support the Shaoguan Municipal Government in targeting a hundred-billion-level South China computing power industrial cluster and building a world-class computing power city.

Chairman of Innolight stated that with the rapid iteration of AI technology and the explosive growth of computing power demand, the heat dissipation of intelligent computing centers is accelerating its upgrade to more efficient liquid cooling solutions. The in-depth cooperation between Innolight (300308.SZ) and HEC (600673.SH) aims to integrate the synergistic advantages of both parties in R&D, industrial resources and customer resources in the liquid cooling thermal management field. Guided by a global vision, an open mindset and the concept of ecological win-win, the two parties will pursue win-win cooperation and promote the global market promotion of integrated liquid cooling heat dissipation solutions.

Chairman of HEC Group indicated that this in-depth cooperation between HEC (600673.SH) and Innolight (300308.SZ) will integrate the advantages of both parties in materials, optical communication, liquid cooling solutions and customer resources, helping them jointly seize the core high ground of the global liquid cooling industrial chain. In the future, the joint venture will focus on integrated liquid cooling heat dissipation solutions, deploy the full ecosystem of cold plate liquid cooling and immersion liquid cooling in an all-around way, and build core competitiveness from technical standards to commercial implementation. It strives to become a leading enterprise in the global liquid cooling thermal management field within 5 to 8 years, provide safe, efficient and low-carbon thermal management solutions for global AI computing power infrastructure, and lead the green revolution in the data age.

Looking ahead, HEC takes building a world-class international supplier of liquid cooling core components, materials and solutions with a sound layout and core competitiveness as its corporate vision, and aspires to become the industry leader in integrated solutions for the liquid cooling field.