Guangdong Hec Technology Holding (600673.SH) intends to establish a joint venture with Zhongji Innolight to focus on the global promotion of overall liquid cooling solutions for heat dissipation.

Guangdong Hec Technology Holding (600673.SH) announced that its wholly-owned subsidiary, Guangdong Hec Technology Holding Liquid Cooling Technology Co., Ltd. (referred to as "Guangdong Hec Technology Holding Liquid Cooling Technology") and Zhongji Innolight Co., Ltd. (referred to as "Zhongji Innolight") plan to jointly invest in setting up a joint venture company named Guangdong Shenlin Zhileng Technology Co., Ltd. (tentative name, subject to approval by the corporate registration authority) in Guangzhou. The registered capital of the joint venture company is 100 million RMB, with Guangdong Hec Technology Holding Liquid Cooling Technology committing to invest 49 million RMB, accounting for 49% of the total committed investment. It is reported that the joint venture company will focus on the global market promotion of overall solutions for liquid cooling heat dissipation, build a full-chain competitive advantage from setting technical standards to commercialization, and seize the core links of the global liquid cooling industry chain in scenarios such as data centers, becoming a leading enterprise in liquid cooling heat management field to maximize commercial value. The company stated that this external investment will help the company explore new profit growth opportunities in the liquid cooling field, further strengthen its full-cycle support capabilities from technology research and development to large-scale application, enhance the company's market share and core competitiveness in the liquid cooling heat management field. In partnership with Zhongji Innolight, the company will be able to better integrate resources, optimize industrial chain layout, and build a complete ecological system covering technology research and development, resource coordination, and market expansion, laying a solid foundation for the future continuous development in the field of AI, in line with the company's long-term development strategy and the interests of all shareholders.