Sanhua Intelligent Controls: Liquid cooling in data centers is accelerating penetration and becoming a new growth pole; the volume-and-price-rise logic for the automotive components segment is clear.

An investor asked Sanhua Intelligent Controls whether exchange rate fluctuations affect performance, how the slowdown in downstream automotive and home appliance growth impacts the company, and whether there are new growth drivers. On November 3, the company responded on its interactive platform: 1. Regarding the impact of exchange gains and losses on the company's performance, please refer to the disclosures in the company's periodic reports. 2. From an industry perspective, periodic fluctuations in overall growth rates have not changed the long-term development logic of the refrigeration and automotive thermal management sectors. 1) Refrigeration segment: Global warming, rising air conditioner penetration, energy-efficiency upgrades, and the trend toward heat pump applications remain unchanged; energy-efficiency upgrades and smart features are raising product technical requirements and per-unit value. Sub-sectors such as refrigerators, kitchen appliances, industrial refrigeration, and cold chain also maintain steady demand driven by replacement cycles, higher energy-efficiency standards, and cold chain infrastructure development. Meanwhile, the rapid growth of AI computing power is driving accelerated adoption of data center liquid cooling, which is becoming a new growth driver. 2) Automotive components segment: The logic of rising volume and price is clear: continued increases in overseas new energy vehicle penetration are driving growth in thermal management demand; a higher proportion of heat pump applications, continued revenue growth from integrated products, and new business opportunities brought by autonomous driving are jointly pushing up per-vehicle value, and the company is actively expanding into emerging areas such as commercial vehicles and energy storage. Overall, the company is full of confidence in the long-term development of its two main businesses and is cultivating its robotics business as a third growth curve to build momentum for long-term development.