Jinfu Technology Co Ltd

On August 31, liquid cooling was a hot concept in the A-share market, and Jinfu Technology surged to its daily limit up, with the latest quote at 49.38 yuan per share. The company has crossed over from food packaging into the liquid cooling industry. Thanks to the acquisition of liquid cooling assets, it achieved attributable net profit of 96.18 million yuan in the first half of 2026, up 93.87% year on year. In April 2026, the company successfully acquired 51% stakes in Zhuohui Metal and Lianyi Thermal Energy, entering the server liquid cooling track and establishing a development strategy of "stabilizing the packaging main business as the foundation while building liquid cooling as a new growth engine." The semi-annual report shows that the company achieved operating revenue of 738 million yuan in the first half, up 82.38% year on year. According to MarketsandMarkets data, the global liquid cooling market is expected to grow from about 2.84 billion US dollars in 2025 to about 21.15 billion US dollars by 2032, with a compound annual growth rate of about 33.2%. In addition, the company is advancing a simplified procedure to issue shares to specific investors to raise total proceeds of no more than 300 million yuan, for projects such as a liquid cooling plate production base, further expanding its liquid cooling business.

Jinfu Technology released its 2026 interim report on August 29, 2026. During the reporting period, the company achieved total operating revenue of 738 million yuan, with net profit attributable to the parent company of 96.181 million yuan. Net cash inflow from operating activities was 17.6944 million yuan, a decrease of 15.3483 million yuan compared with the same period last year, down 46.45 percent year on year. The company's asset-liability ratio was 40.92 percent, up 19.47 percentage points from the previous quarter and up 23.67 percentage points from the same period last year. Gross margin was 36.00 percent, return on equity was 5.85 percent, and diluted earnings per share was 0.31 yuan. The company had 23,400 shareholders, with the top ten shareholders holding 73.77 percent of total share capital.

Jinfu Technology's application for a non-public share issuance under the simplified procedure has had its review status changed to submitted for registration. The company plans to issue no more than 8.5276 million shares to specific investors, with expected proceeds of 300 million yuan. The sponsor is Everbright Securities.

Jinfu Technology released a revised draft of its 2026 simplified procedure private placement plan, intending to raise total proceeds of no more than 300 million yuan. After deducting issuance expenses, all funds will go to a liquid cooling plate production base project, the Zhuohui Metal liquid cooling component expansion and renovation project, and the Lianyi Thermal Energy liquid cooling component expansion and renovation project. The issuance targets are Guo Weisong, Tibet Ruihua Commercial Management Company Limited, Chen Qiongge, Huaan Securities Asset Management Company Limited, and Nuode Fund Management Company Limited. The issue price is 35.18 yuan per share, with 8,527,572 shares to be issued. Subscribed shares may not be transferred for six months from the completion of the issuance. The company completed the acquisition of 51 percent stakes in Zhuohui Metal and Lianyi Thermal Energy in early 2026, entering the liquid cooling heat dissipation sector and establishing a dual-driver strategy of food and beverage packaging plus liquid cooling heat dissipation. The revised draft also flags risks including acquisition integration, goodwill impairment, declining gross margins for liquid cooling products, and investment project returns falling short of expectations. The company previously estimated net profit attributable to the parent for the first half of 2026 at 90 million to 100 million yuan, up 81.41 percent to 101.57 percent year on year.

Over the past six months, at least six A-share listed companies have entered the liquid cooling sector through mergers, acquisitions, or capital increases, all with ties to Dongguan. These include Wuyang Automation planning to acquire 51 percent of Dongguan Kesyu Liquid Cooling Technology for 681 million yuan in cash, Lucky Harvest Technology planning to acquire 51 percent of Suzhou Coolchip Technology, Jinfu Technology acquiring 51 percent of two liquid cooling targets for 571 million yuan, and Lingyi iTech acquiring 35 percent of Dongguan Liminda Electronic Technology for 875 million yuan to gain control. This wave is driven by soaring chip power in the AI computing era, as traditional air cooling approaches its physical limits and liquid cooling becomes the inevitable choice. Nvidia's intelligent computing chip single-card power has risen from 400 watts for the A100 to 1,400 watts for the B300. Dongguan, with its precision manufacturing base, has become a focal point for the liquid cooling industry. Qishi Town has gathered 33 core heat dissipation companies and 53 upstream and downstream supporting enterprises. In 2025, the town's total AI heat dissipation industry output reached 7.494 billion yuan, and it was selected as a provincial-level small and medium-sized enterprise characteristic cluster for 2026 by the Guangdong Provincial Department of Industry and Information Technology. Dongguan's server production in 2025 approached 600,000 units, with the entire industry chain output nearing 100 billion yuan. The city has issued its first special support policy for the AI server industry, proposing that the output of related industries exceed 500 billion yuan by 2030. In the regional competitive landscape of the liquid cooling industry, North American system integrators lead, Taiwan region of China dominates in large-scale manufacturing, and mainland China is rapidly catching up. Dongguan is narrowing the gap through its industrial cluster but faces fierce competition from cities like Shenzhen and Suzhou.

Jinfu Technology has disclosed its 2026 semi-annual earnings forecast, projecting net profit attributable to shareholders of the listed company at 90 million to 100 million yuan, representing a year-on-year increase of 81.41% to 101.57%. The sharp rise in performance is mainly driven by the strategic deployment of its liquid cooling business. In early April this year, the company completed the acquisition of 51% equity stakes in Foshan Zhuohui Metal Products Co., Ltd. and Foshan Lianyi Thermal Energy Technology Co., Ltd., which have been consolidated into the financial statements since April 1. Revenue and profit from the liquid cooling heat dissipation business have grown rapidly. Meanwhile, the traditional packaging business also achieved steady revenue growth.

Jinfu Technology disclosed a performance forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 90 million and 100 million yuan, a year-on-year increase of 81.41% to 101.57%. Deducted non-recurring net profit is expected to be between 90.8 million and 101 million yuan, a year-on-year increase of 103.46% to 125.87%. The significant growth in performance is mainly due to the company's strategic advancement in the liquid cooling business. In early April 2026, it completed the acquisition of 51% equity stakes in Foshan Zhuohui Metal Products Co., Ltd. and Foshan Lianyi Thermal Energy Technology Co., Ltd., which were consolidated into the financial statements from April 1. The liquid cooling heat dissipation business saw rapid growth in revenue and profit. At the same time, the packaging business achieved steady growth in revenue scale.