Traditional Culture Encyclopedia - Traditional culture - Global Arithmetic Competition Intensifies, China's ICT Construction Enters Fast Track

Global Arithmetic Competition Intensifies, China's ICT Construction Enters Fast Track

(Report producer/analyst: Galaxy Securities Research Institute Zhao Liangbi)

The original title of the report: Communication industry in-depth report: ICT "double carbon" new infrastructure, IDC temperature control new opportunities

(a) arithmetic construction is related to the development of digital economy, countries are constantly making efforts

to accelerate the cultivation of data elements market, the global arithmetic competition continues to improve

The global arithmetic competition is constantly improving.

Accelerating the cultivation of the data factor market, the global arithmetic competition is constantly improving. On April 9, 2020, in the "Opinions of the Central Committee and the State Council on building a more perfect institutional mechanism for the market-based allocation of factors", data appeared for the first time as a new type of factor of production in the document, alongside traditional factors such as land, labor, capital and technology. Computing power has become closely related to the national economy.

The 2021-2022 Global Computing Power Index Assessment Report, jointly published by IDC& Tsinghua Institute of Industrial Research, shows that computing power is a key generating factor in the era of the digital economy:

(1) In terms of overall trends and forecasts for 2016-2025, the share of the digital economy in the GDP of each country continues to increase, and is expected to reach 41.5% in 2025. It is expected to reach 41.5% in 2025.

(2) Computing power, as a key productivity factor in the digital economy, has become the core support and driving force for tapping the value of data elements and promoting the development of the digital economy.

(3) The national computing power index shows a significant positive correlation with the trend of GDP. The assessment results show that for every 1-point increase in the computing power index of the fifteen key countries, the country's digital economy and GDP will grow by 3.5% and 1.8%, respectively, and this trend is expected to continue from 2021-2025. Meanwhile, through further regression analysis of the computing power index and GDP for different tiers of countries, the study finds that when a country's computing power index reaches 40 points or more, the driving force for GDP growth increases to 1.5 times for every point increase in the country's computing power index, and when the computing power index reaches 60 points or more, the driving force for GDP growth increases to 2.5 times for every point increase in the country's computing power index. At 60 points and above, for every one point increase in a country's computing power index, its contribution to GDP growth increases to 3.0 times, and its pull on the economy becomes even more significant.

Digitization is advancing and developing countries are experiencing higher rates of economic growth. According to IDC data, from 2016 to 2025, the share of the digital economy has been increasing, and the share of the global digital economy is 41% in 2025E, of which the share of the digital economy in developed countries is 48.10%, 17.8 percentage points higher than that of developing countries. The composite assessment of the computing power index of China and the United States is higher, and the level of China's computing power development has risen by 13.5%, which is at a higher level of growth. Overall, the contribution of the digital economy to the total GDP of each country has been increasing, and the improvement of computing power has pushed the digital economy to a better development.

The global public cloud subscriber market continues to grow, and IT capital expenditures continue to increase. The cloud is a key driver of digital transformation and upgrades, as organizations continue to invest in mobile technology, collaboration, and other remote work technologies and infrastructure. User spending is expected to reach nearly $600 billion by 2023, with cloud accounting for 14.2% of the global enterprise IT consumption market. Software-as-a-Service (SaaS) is the largest segment of the market, which is expected to grow to $208.080 billion in user spending in 2023E, a 36.73% increase compared to 2021, and Cloud Infrastructure (IaaS) will reach $156.276 billion, a 70.53% increase compared to 2021. In order to gain a comparative advantage in the era of digital economy, major countries around the world have made large-scale investments in the construction of data centers, and the global economy has been severely affected by the new crown epidemic, the construction of data centers has maintained a high growth rate, and it is expected that in the next few years the global cloud market is expected to grow further due to the increasing cooperation between cloud service providers and telecommunication companies.

China's IDC market size is growing at a fast pace and is currently in a period of rapid development.

Benefiting from China's "new infrastructure" strategy and rising Internet traffic, the scale of data center construction will continue to grow in 2021. According to the China Academy of Information and Communications Technology data, China's IDC industry scale in 2021 is about 150.2 billion yuan, the average annual compound growth rate of China's IDC market in the past five years is about 30%, ahead of the global IDC market growth rate, of which the past three years China's IDC market has a high growth rate. China's IDC industry growth rate is mainly due to China's 5G construction continues to promote, 5G application projects continue to blossom and land, it is expected that by 2025, China's data center market size reached 595.2 billion yuan. With the accelerated advancement of the digital economy "east counting west counting" project, the Internet and cloud computing customer demand continues to expand and data center in the Internet of Things, artificial intelligence and other areas of wide application, the data center industry has broad prospects for development, is expected to maintain high growth.

The number of IDC cabinets is growing, and there are more IDC centers in eastern China. In 2021, the number of IDC cabinets increased by 991,500, with a growth rate of 30%, and the total number of cabinets reached 4,150,600, with an annual growth rate of 31.39%. With the continuous penetration of digital economy into all fields of society in the 5G era, the explosive growth of data volume makes the whole society's demand for computing power increase, and it is expected that the annual growth rate will still be more than 20%, which is expected to open up new space in the market. At present, most of China's data centers are concentrated in the eastern and coastal regions, according to CDCC data, in 2021, the number of cabinets in East China, North China and South China accounted for 79% of the total number of the country, while the Northeast and Northwest regions accounted for a relatively low proportion.

China's eastern region has a high rate of IDC shelving, and the western region is accelerating construction.


Currently, the IDC server room in China's east and west show a large difference in the development of the east and west, reflecting the east is dense and the west is sparse, the east is hot and the west is cold characteristics. 2021 new cabinets compared to the east and coastal areas of the data center shelves rate is high, and the western shelves rate is relatively low. 2021, East China, North China, South China, three on the shelves rate of about 60% -70%, and the northeastern, northwestern, southwestern, and Central China shelves rate of only 30% -40%. 30%-40%. In terms of policy layout, the country continues to promote the development of digital economy, forming a new pattern of coordinated regional development with data as the link. For the network delay requirements are not high business, take the lead in the west to transfer the construction, due to the advantages of lower temperatures in the western region, the implementation of the "East counts west counts" is conducive to the data center to improve energy efficiency, the western region industrial leapfrog development, and to promote the effective growth of the regional economy.

(B) digital economy policy escort, "East counts west counts" project construction is expected to exceed expectations

grasp the opportunity of digital development, expanding the new space of economic development. 2022 January, the State Council issued the "14th Five-Year Plan" digital economy development plan, the plan emphasizes the digital economy development plan, the plan emphasizes the digital economy development plan, the plan emphasizes the digital economy development plan, the digital economy development plan, the plan emphasizes the digital economy development plan. In January 2022, the State Council issued the "14th Five-Year Plan for the Development of the Digital Economy", which emphasizes that the digital economy is the main economic form after the agricultural economy and industrial economy, and that it is a new economic form that promotes greater unity between equity and efficiency with data resources as the key element, modern information networks as the main carrier, and the integration of the application of information and communication technologies and the digital transformation of all elements as the important driving force. At the same time, the plan clearly puts forward that by 2025, the digital economy will move towards a comprehensive expansion period, and the added value of core industries of the digital economy will account for 10% of GDP. Based on the above plan, on May 26, 2022, the Ministry of Industry and Information Technology pointed out in the 2022 China International Big Data Industry Expo, adhere to the appropriate ahead of the construction of digital infrastructure, accelerate the layout of the industrial Internet, the Internet of Vehicles and so on.

Promote the construction of green data centers, and improve the utilization rate of renewable energy in data centers. China's energy structure is in the process of continuous optimization, the new energy regional distribution is uneven, especially hydro, photovoltaic, wind power, mainly concentrated in the central and western regions, while the use of the end of the main in the eastern coastal areas, although through the "Western Electricity East" project partially alleviate the problem of electricity tension in the eastern region, but the As a high energy-consuming data center industry, it is necessary to coordinate the development layout of the east and west and reduce energy consumption. All provinces, cities, and regions across the country have introduced a variety of data center green, energy-saving policy requirements to promote energy production, transportation, consumption and other aspects of intelligent upgrading, catalyzing the low-carbon transformation of the energy industry.

Efficient matching of resources between East and West to establish an integrated national collaborative innovation system.


The "East Counts West" project is another major project in China following the "South-to-North Water Diversion", "West-to-East Gas Transmission", "West-to-East Electricity Transmission". After "South-to-North Water Transfer", "West-to-East Gas Transfer" and "West-to-East Electricity Transfer", "East-to-West Digital and West Computing" project is another major national strategic project in China, which guides massive data from the east to the west in an orderly manner, optimizes the layout of the construction of data centers, reduces the economic disparity between east and west and promotes the collaborative development of east and west, Guangdong, Hong Kong and Macao Bay Area, Chengdu-Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and 10 national data center clusters were planned. The overall layout and design of the national integrated big data center system was completed, and the "East Counts, West Counts" project was officially launched. Based on the "Eastern and Western Computing", the country continues to promote the synergistic development of data centers and computing power, cloud, network, data elements, data applications and security, forming a new pattern of coordinated regional development with data as a link, and assisting the continuous development of the digital economy.

The competitiveness of the global computing network has been highlighted, and the ICT industry chain is expected to usher in a new space for development.

Through the construction of the national integrated data center layout, expanding the scale of arithmetic facilities, improving the efficiency of arithmetic use, and realizing the scale and intensive development of national arithmetic, it is expected to further enhance the level of national arithmetic and the ability to compete globally. At the same time, expanding the coverage of data centers in the central and western regions can consume new green energy in the central and western regions nearby, and continuously optimize the efficiency of data center energy use. Through the construction of arithmetic hubs and data center clusters, the upstream and downstream investment in related industries will be strongly driven to promote the circulation of data between the east and the west, the value transfer, the extension of the eastern development space, and the promotion of the development of the western region to form a balanced development of the country's new pattern.

(C) Dual-carbon emission reduction targets are clear, green energy saving has become a development necessity

Energy changes continue to innovate and upgrade, low-carbon transformation into social and economic development.

Since the last century, mankind has gradually recognized the adverse effects of carbon emissions, governments and international organizations continue to cooperate, through unremitting efforts, extensive consultations, in the United Nations and the World Climate Conference under the framework of a series of important **** knowledge, the formation of the United Nations Framework Convention on Climate Change (signed in 1992, entered into force in 1994), the Kyoto Protocol (1997, entered into force in 2005), the United Nations Framework Convention on Climate Change (signed in 1997, entered into force in 2005). The United Nations Framework Convention on Climate Change (signed in 1992 and entered into force in 1994), the Kyoto Protocol (concluded in 1997 and entered into force in 2005) and the Paris Agreement (concluded in 2015 and entered into force in 2016), among other documents, of which the Paris Agreement stipulates the basic objective of "limiting the increase in global average temperature to less than 2% above pre-industrial levels" and the objective of "limiting the temperature increase to less than 1 % above pre-industrial levels". The Paris Agreement sets the base goal of "limiting the increase in global average temperature to less than 2°C above pre-industrial levels" and the effort goal of "limiting the increase in temperature to 1.5°C above pre-industrial levels.

Promoting the energy revolution and implementing the Peak Carbon Action Plan.

Promoting the energy revolution and implementing the Peak Carbon Action Plan

In order to achieve the goals set out in the Paris Agreement, the Chinese government has also put forward a dual-carbon action plan to meet the actual situation in China, and on September 22, 2020, China announced at the 75th session of the United Nations General Assembly that it would strive to peak carbon dioxide emissions by 2030, and strive to achieve the goal of carbon neutrality by 2060. The formalization of China's "dual carbon" goal demonstrates the Chinese government's determination and confidence in addressing global climate change. Meanwhile, the Government Work Report for 2021 states that China will do a good job in achieving carbon peak and carbon neutrality, and formulate an action plan to achieve carbon peak by 2030. Optimize the industrial structure and energy structure. Promote the clean and efficient use of coal, vigorously develop new energy sources, and actively and orderly develop nuclear power under the premise of ensuring safety. Expand the scope of the preferential income tax catalog for enterprises engaged in environmental protection, energy and water conservation, promote the research, development and application of new energy-saving and environmental protection technologies, equipment and products, cultivate and grow the energy-saving and environmental protection industry, and promote the economical and efficient use of resources. Implementing the 2030 national goal of autonomous contribution to addressing climate change. It will accelerate the green transformation of the development mode, synergize the promotion of high-quality economic development and high-level protection of the ecological environment, and reduce energy consumption and carbon dioxide emissions per unit of GDP by 13.5% and 18%, respectively.

Focusing on the low-carbon development of data centers to achieve dual-carbon industrial development. In the dual-carbon context, the western migration of data centers in the "East Counts, West Counts" project is expected to reduce the PUE value to bring about efficient use of energy and power consumption. Energy efficient, energy saving, innovation and upgrading has been the trend and inevitable requirements.

(a) Data center energy consumption is prominent, green energy is the development trend

Green power to become the development trend, low-carbon development plays an important role. With the vigorous development of the data center industry, the proportion of data center energy consumption in the national economy is also increasing. Research shows that the total energy consumption of data centers is expected to reach 395.2 billion kW-h in 2025, accounting for 4.05% of the total electricity consumption of the whole society, with the proportion climbing year by year. Overall, the power consumption of IT equipment systems, such as servers, storage and network communication equipment, accounts for about 45% of the total power consumption of data centers. The air conditioning system is also a key part of data centers to improve energy efficiency, and the power consumption generated accounts for about 40% of the total power consumption of data centers. Reducing PUE will be a future trend, mainly from the cooling aspect.

Continuing to control carbon emissions in the data center, the PUE value continues to improve.

According to the National Energy Board in 2020, the national electric power industry statistics 6000 kilowatts and above power plant power supply standard coal consumption per kilowatt of electricity with 305.5 grams of coal, carbon dioxide emissions per ton of standard coal emissions 2.7 tons of carbon dioxide to calculate the national data center in 2021 carbon dioxide emissions of 78.3 million tons in 2030 is expected to emit about 150 million tons of carbon dioxide.

Quantitative metrics to assess data center energy efficiency.

In order to evaluate the energy efficiency of data centers, PUE (Power Usage Effectiveness) is widely used as an important evaluation index, which is the ratio of all the energy consumed by the data center to the energy consumed by the IT loads.

The PUE is usually measured on an annual basis, where the total energy consumption of the data center includes the energy consumption of the IT equipment and the energy consumption of the cooling, PUE is usually measured on an annual basis, where the total energy consumption of the data center includes the energy consumption of IT equipment and systems such as cooling, power distribution, and so on.

Data center air conditioning systems and server systems account for a large portion of energy consumption. The energy-consuming parts of a data center mainly include IT equipment, cooling systems, power supply and distribution systems, lighting systems, and other facilities (including security equipment, fire suppression, waterproofing, sensors, and management systems of the relevant data center buildings, etc.). As a whole, the power consumption of IT equipment systems consisting of servers, storage and network communication equipment accounts for about 45% of the total power consumption of the data center. Among them, server systems account for about 50%, storage systems for about 35% and network communication equipment for about 15%. Air conditioning system is still the key link to improve energy efficiency in data centers, and the power consumption it generates accounts for about 40% of the total power consumption in data centers. Power systems and lighting systems account for 10% and 5% of total data center power consumption, respectively.

(C) temperature control system continues to optimize, energy-saving technology changes open up new opportunities

temperature control system diversification trends, energy-saving technology breakthroughs. The current mainstream refrigeration methods include air-cooled, water-cooled, indirect evaporative cooling and liquid-cooled technology, according to the size of the data center, the environmental characteristics of the choice of appropriate refrigeration technology. Improve the energy efficiency of the data center, especially the energy efficiency of the air conditioning and refrigeration system has become the focus of research. At present, the improvement of the energy efficiency ratio of air conditioning and refrigeration in data centers mainly starts from two aspects: liquid cooling and natural cold source. From the perspective of refrigeration methods, air cooling will gradually be replaced by liquid cooling methods with flexible installation and higher efficiency. Liquid-cooling technology is currently used in 5G scenarios, usually for backbone network OTN equipment, bearer network equipment and 5G BBU equipment. Liquid-cooling technology can be used to take the heat away from the heating element through the liquid, realizing the natural heat dissipation of the server, which is more efficient and energy-saving compared to the traditional refrigeration methods.

Cooling systems are constantly being optimized.

In order to objectively evaluate these cooling technologies to further improve energy efficiency, the China Institute of Refrigeration Data Center Cooling Working Group concluded that it would be more reasonable to use the GCOP (Gross Coefficient of Performance) of the cooling system of the data center as an evaluation index.

Among them, GCOP is the data center cooling system comprehensive performance coefficient index, used to evaluate the energy efficiency of the data center cooling system.

In practice, in order to make the energy efficiency evaluation results more convincing and comparable. The Cooling Working Group recommends the use of the data center yearly average number of composite energy systems (GCOPA) metric and the data center cooling system composite energy factor for specific operating conditions (GCOPS) as evaluation criteria.

The Cooling Working Group analyzed high-efficiency data centers from Hohhot, Inner Mongolia; Shenzhen, Guangdong; and Langfang, Hebei based on the above criteria. These data centers are located in different building climate zones and use different system forms and operation strategies, such as high-efficiency terminals, natural cooling, and AI-controlled operation optimization. The data show that the construction of new data center cooling energy consumption is better in the western region. There is a great difference in the energy efficiency of China's data center cooling system, to improve the energy efficiency of China's data center cooling system is of greater significance, the cooling system there is still a huge potential for energy saving.

Data center capacity continues to expand, with more contributions from China and the United States. According to the latest data from Synergy Research Group, the number of large data centers operated by large providers has grown to 700, with the US accounting for 49% of this data center capacity as measured by critical IT load, and China being the second largest contributor to mega data center capacity after the US, accounting for 15% of the total. The remaining capacity is spread across Asia Pacific (13%), EMEA (19%) and Canada/Latin America (4%). It took five years to double the number of hyperscale data centers, but less than four years to double the capacity.

Air conditioning systems cost more to build. According to IBM, air conditioning systems account for 16.7% of data center construction costs. Overall, the total spending on data center infrastructure equipment in 2021 was $185 billion, and the energy side of the construction capital expenditure accounted for a larger share of the energy construction and utilization efficiency is expected to be further improved.

Data center capital is growing steadily, and the temperature control market is opening up new space. According to Synergy Research, total data center infrastructure equipment spending (including cloud/non-cloud hardware and software) was $185 billion in 2021, with public cloud infrastructure equipment spending accounting for 47%. Hardware-oriented servers, storage, and networking together account for 77% of the data center infrastructure market.

Operating systems, virtualization software, cloud management, and network security make up the rest. With reference to the reality of 10% growth in global data center capital expenditure in 2021, and assuming that data center capital expenditure maintains 10% growth each year for the next four years, China's data center temperature control system market size will be $30.1 billion in 2021, and could reach $44.1 billion in 2025.

(a) Invicta: to build temperature control industry chain, the industry high boom leader benefit

domestic technology leading precision temperature control leader, focusing on precision temperature control energy-saving products and solutions.
Since its inception, the company has been focusing on the data room and other precision environmental control technology research and development, is committed to the cloud computing data center, communication networks, Internet of Things infrastructure and a variety of professional environmental control field to provide solutions, "East counts west counts" project to provide energy-saving technology.

The company's revenue is growing at a high rate and profitability is good. 2022Q1, the company realized revenue of 400 million yuan, an increase of 17.10% year-on-year, net profit of 0.13 billion yuan, a year-on-year decline of 59.26%, mainly due to the impact of rising raw material prices, repeated epidemics and other factors. 2021 Invicta realized revenue of 2,228 million yuan, an increase of 29.71% year-on-year, and the CAGR since 2017 amounted to 34.65%, mainly due to the acceptance and confirmation of some large projects of computer room temperature control, as well as the revenue growth of energy-saving products of cabinet temperature control. Benefiting from the boom of the whole industry, the full-year net profit of RMB205 million was realized, up 12.86% year-on-year, with a CAGR of 24.25% since 2017, which was mainly derived from the continuous growth of the data center and outdoor cabinet air conditioning business.

The company's gross profit margin is generally stable, and is expected to stop falling and rise in the future. Net interest rate declined overall, net sales margin of 8.92%, down 15.85% year-on-year. With the company's continued data room and other precision environmental control technology research and development, technology platform to be reused, the scale effect is more and more significant, the company's future gross profit margin and net interest rate is expected to stabilize and rebound.

Evaporative cooling, liquid cooling technology for the future development trend, the company's technology reserves sufficient, comprehensive product coverage. At present, the domestic data center temperature control method is still air-cooled, chilled water-based, due to heat density, energy consumption, the traditional program has been unable to meet the market demand, the cooling method gradually from the traditional air-cooled mode to the development of the backplane air conditioning, liquid cooling, and other new cooling methods, the cooling system of the data center presents the cooling equipment close to the server, the core of the trend of heating equipment, liquid cooling, evaporative cooling The advantages of liquid cooling and evaporative cooling technology are obvious.

Investment in R&D continues to increase to improve core competitiveness, and the temperature control system is constantly optimized. Although adversely affected by the rapid rise in prices of upstream raw materials and the recurrence of epidemics, the company has always insisted on increasing R&D efforts to provide technical support for the company's subsequent development. As the leader of the industry segment, Invicor captures the market development trend in time, and takes technological innovation as the main driving force of enterprise development.

The company's product line is rich, flexible program highlights the competitive advantage. Inventec's room temperature control and energy saving products are mainly for data centers, server rooms, communication rooms, high-precision laboratories and other areas of the room-level dedicated temperature control and energy saving solutions for the equipment room or laboratory space for precision temperature, humidity and cleanliness control and adjustment. These solutions include CyberMate air conditioners for computer rooms & laboratories, iFreecooling multi-connected pump circulating natural cooling units, XRow column air conditioners, XFlex modular indirect evaporative cooling units, XStorm direct evaporative high-efficiency air-wall cooling systems, XSpace micro-module data centers, XRack micro-module cabinet solutions, XGlacier liquid cooling systems, and XGlacier liquid cooling systems. XSpace micro-module data centers, XRack micro-module cabinet solutions, XGlacier liquid-cooled temperature control systems and other products and solutions.

The company's products are provided directly or through system integrators to data center owners, IDC operators, and large Internet companies. Over the years, the company has provided a large number of high-efficiency and energy-saving refrigeration products and systems for large-scale data centers of Tencent, Alibaba, Qinhuai Data, Universal Data, DataPort, China Mobile, China Telecom, China Unicom, and other users. In addition, INVIC also provides cabinet temperature control and energy saving products mainly for wireless communication base stations, energy storage power stations, smart grids at all levels of transmission and distribution equipment cabinets, electric vehicle charging piles, ETC gantry systems and other outdoor cabinets or containers in the application of temperature control and energy-saving solutions, as well as cabinet temperature control products for intelligent manufacturing equipment.

(B) Jia Litu: operator market stabilized Internet market breakthrough, performance is expected to marginal improvement

Precision environment temperature control leader, to create constant temperature and humidity solutions. The company's products are used in data center server rooms, communication base stations and other constant temperature and humidity and other precision environments, the company's customers cover government departments and communications, finance, Internet, medical, rail transportation, aviation, energy and many other industries. The company's products serve China Telecom, China Unicom, China Mobile, Huawei and other well-known enterprises. At present, the company has two categories of precision air conditioning equipment, chiller units, thirteen series of product lines, the advanced nature of the product, reliability and energy saving and environmental protection advantages in the industry has always maintained a dominant position, at the same time the company relies on the environmental control technology and energy saving technology advantages, for the data center to provide energy saving transformation services.

The company's revenue maintained growth, net profit declined. 2022Q1, the company realized revenue of 122 million yuan, down 10.69% year-on-year, net profit of 0.14 billion yuan, down 36.68% year-on-year, mainly due to the impact of rising raw material prices, recurring epidemics, intensified competition and other factors.

2021 Jialitu realized operating income of 667 million yuan, an increase of 6.68% year-on-year, since 2017 CAGR of 9.73%, the annual net profit of 0.85 billion yuan of attributable net profit, a year-on-year decline of 26.35%, 2021, the company is mainly affected by the following factors led to the decline in profits, (1) the Nanjing epidemic shutdown to wait for the production of the power supply restrictions, epidemic Delayed delivery and acceptance of various difficulties; (2) with the continuous expansion of the market scale, the domestic machine room air conditioning market competition is more intense; (3) raw material prices, especially commodity prices continue to rise, raw material costs accounted for the company's operating costs on average more than 70% of the proportion of the company's product cost is the main component of the company's product costs, copper, galvanized steel has been showing an upward trend in the year 2021, the purchase price of 20% - 20% higher than 2020, the purchase price is higher than 20% - 20% higher than 2020. Copper, galvanized steel in 2021 has been showing a rising trend, the purchase price of 20%-40% higher than in 2020, resulting in a large proportion of the company's cost growth.

Figure 17. The company's gross profit margin decreased due to many factors (unit: %)

The company's products in the field of precision environment are abundant and technologically advanced.

The company's products are used in data center server rooms, communication base stations and other constant temperature and humidity and other precision environments, the company's customers cover the government departments and communications, finance, Internet, medical, rail transportation, aviation, energy and many other industries. The company's products serve China Telecom, China Unicom, China Mobile, Huawei and other well-known enterprises.

At present, the company has two categories of precision air conditioning equipment, chiller, thirteen series of product lines, the product's advanced, reliable and energy saving and environmental protection advantages in the industry has always maintained a dominant position, and at the same time the company relying on the environmental control technology and energy saving technology advantages, for the data center to provide energy saving transformation services.

Investment in R&D continues to be invested, and air conditioning efficiency continues to improve. Although adversely affected by the rapid rise in prices of upstream raw materials and the recurrence of epidemics, the company has always maintained to strengthen the construction of the technical research and development team, strengthened cooperation with institutions of higher learning, industry experts and other organizations, people, to promote cutting-edge theoretical research and practice, relying on the existing R & D system, give full play to the technical advantages of energy-saving control, to accelerate the development of the intelligent energy-saving management system of the server room. Further improve the performance index of the company's products, strengthen the basic research strength in the air conditioning heat exchanger efficiency, power supply and distribution technology, and comprehensively enhance the company's innovative ability in the computer room environment control integrated solutions.

The company's core technology continues to highlight. At the end of 2021, the company has 36 core technologies, and 28 research projects in progress, including communication modules with closed high-efficiency cooling cycles, centralized control systems for data center refrigeration stations, VRF systems for server room air conditioning, CPU liquid cooling technology, and the primary application of VRF technology in the field of server room air conditioning.

(C) other energy-saving related companies

Shenling environment is a leading enterprise in China to provide overall solutions for the regulation of the artificial environment, the service scene of the numerical value of the center, electric power, chemical industry, energy, rail transportation, environmental protection, military and other fields. Products can be divided into data service air conditioning, industrial air conditioning, special air conditioning three parts. The company is the main supplier of Huawei's data service air conditioner, and Huawei exists for many years of cooperation. In addition to the rapid growth of Huawei's business, it has also been recognized by leading Internet companies such as Tencent. In addition, Shenling Environment also has a layout in energy storage.

Imicom is committed to providing customers with products and total solutions in the field of communication rooms, data centers, intelligent construction, and energy management, including the design, production, and operation and maintenance services from hardware to software, from indoor precision air conditioning to outdoor magnetic levitation mainframe, and from all-in-one machines and micro-modules to large-scale data centers, helping customers face energy and ecological challenges. The company's four business segments in the field of information and data: key equipment, intelligent engineering, IOT software, and intelligent services can all provide products and services for the data center industry chain.

Golan is a leading professional supplier of pure water cooling equipment in China, and is a national specialized and new "small giant" enterprise, starting from pure water cooling equipment and control system for high-power power electronic devices, and its products are widely used in power generation, transmission, distribution, and power consumption of power electronic devices in all aspects.

Energy-saving technology breakthroughs are less than expected, resulting in the slow release of supply-side capacity;

Raw material shortages and price increases;

Increased market competition;

The downstream data center market growth rate is less than expected.