Sanhe Tongfei Refrigeration Co., Ltd. (Tongfei Co., Ltd.) (300990)

Equity Research Report　|　Industry: Industrial Temperature-Control Equipment　|　Report Date: September 14, 2026　|　As of the September 11, 2026 close; September 14, 2026 is the current date, but complete later closing data was unavailable, so intraday or unconfirmed data is not used.

This report was automatically compiled by AI based on publicly available information and is for reference only; it does not constitute investment advice.

1. Core Summary

Tongfei Co., Ltd. generated revenue of RMB 1.608 billion in the first half of 2026, up 27.27% year on year, while net profit attributable to the parent increased only 2.45% to RMB 128 million, and net profit attributable to the parent excluding non-recurring items increased 2.74%. During the same period, gross margin declined from 23.65% to 22.13%, while net margin was approximately 7.96%, indicating that revenue expansion has not yet translated into corresponding profit growth. In 2025, the company generated revenue of RMB 2.867 billion and net profit attributable to the parent of RMB 253 million, with revenue up 32.75% year on year and net profit attributable to the parent up 64.84% year on year. Its core business remains in an expansion phase.

The company’s core growth sources remain liquid constant-temperature equipment and industrial temperature-control applications in energy storage, power electronics and other fields. In 2025, liquid constant-temperature equipment generated revenue of RMB 2.034 billion, accounting for 70.93% of total revenue and increasing 38.73% year on year. In the first half of 2026, revenue from the energy-storage sector was approximately RMB 925 million, up 36%, while overseas revenue was approximately RMB 351 million, up 344.51%. Data-center liquid cooling, clean-water cooling units and overseas markets represent potential incremental growth, but the company remains a platform-type equipment manufacturer based on industrial temperature control rather than a single-focus data-center liquid-cooling company.

Profitability has been affected jointly by material costs, product price competition and expansion-related investment. The consolidated gross margin was 22.31% in 2025, while the gross margin for liquid constant-temperature equipment was 19.38%. In the first half of 2026, rising raw-material costs, expansion of the data-center liquid-cooling business, increased R&D and administrative spending, and an RMB 12.8976 million foreign-exchange loss all weighed on profit growth. Direct materials accounted for 75.07% to 89.33% of the costs of the company’s major products. Sales to the five largest downstream customers accounted for 42.03% of 2025 revenue, making profit relatively sensitive to costs and pricing by major customers.

As of September 11, 2026, the company’s share price was RMB 86.20, with a PE-TTM of approximately 57.5x to 58.4x. The share price had fallen approximately 31.6% from the 52-week high of RMB 125.99, was below the MA5, MA10 and MA20 in the short term, and had declined approximately 11.7% over the previous five trading days, indicating a high-volatility technical correction. The company has received registration approval for a private placement of no more than RMB 1.140 billion, but the issuance and receipt of funds have not yet been completed. The construction of liquid-cooling capacity and fulfillment of orders still require further validation.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Liquid constant-temperature equipment: Includes water chillers, laser water chillers, oil chillers, cutting-fluid chillers, commercial and industrial variable-frequency liquid-cooling units, containerized variable-frequency liquid-cooling units and fluorinated-liquid chillers. Revenue in 2025 was RMB 2.034 billion, accounting for 70.93% of revenue and increasing 38.73% year on year.
• Electrical cabinet temperature-control equipment: Includes industrial air conditioners, air-to-water heat exchangers, wall-mounted industrial air conditioners and integrated industrial air conditioners. Revenue in 2025 was RMB 365 million, accounting for 12.74% of revenue and increasing 10.90% year on year.
• Clean-water cooling units: Using high-purity water as the cooling medium, these units can be used in new-energy power-generation converters, flexible power-transmission and transformation equipment, electrical drive equipment and liquid-cooling distribution units (CDUs) for data centers. Revenue in 2025 was RMB 231 million, accounting for 8.06% of revenue and increasing 11.98% year on year. The products have a relatively high degree of customization, and gross margin is susceptible to order mix.
• Special heat exchangers: Includes finned heat exchangers, air-to-water heat exchangers and dry coolers, applied in power electronics, CNC equipment, semiconductor manufacturing equipment, industrial washing and data centers. Revenue in 2025 was RMB 92 million, accounting for 3.20% of revenue and declining 3.85% year on year.
• By downstream industry, temperature-control products for power-electronic equipment generated revenue of RMB 1.977 billion in 2025, accounting for 68.94%, with a gross margin of 18.69%; temperature-control products for CNC equipment generated revenue of RMB 785 million, accounting for 27.39%, with a gross margin of 29.27%; other businesses generated revenue of RMB 105 million, accounting for 3.67%.
• The company uses temperature control for power-electronic equipment and CNC equipment as its traditional business framework and is expanding into energy storage, semiconductors, data centers, hydrogen energy, medical devices and new-energy vehicle charging and battery-swapping. It is not a single-focus data-center liquid-cooling company, but rather a platform-type equipment manufacturer expanding from industrial temperature control into emerging applications.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Tongfei Co., Ltd. manufactures complete temperature-control systems, temperature-control modules and heat-exchange components, placing it in the middle of the industrial temperature-control value chain. The company generates profit through temperature-control system design, customization capabilities, customer certification, large-scale procurement, and accumulated liquid-cooling and thermal-management expertise. However, materials account for a relatively high proportion of costs, and certain major downstream customers have relatively strong bargaining power, giving the company the overall profit characteristics of a midstream equipment manufacturer.

• Major purchases include compressors, water pumps, fans, copper, aluminum, steel, metal components related to heat exchangers, controllers, electrical components, sensors and other supporting parts. The company’s early IPO application materials explicitly stated that compressors, water pumps, fans, copper and steel were the major raw materials with relatively high procurement values.
• Direct materials accounted for a relatively high proportion of product costs in 2025: 86.13% for liquid constant-temperature equipment, 75.07% for electrical cabinet temperature-control equipment, 89.33% for clean-water cooling units and 83.86% for special heat exchangers. The company’s costs are relatively sensitive to the prices of compressors, pumps, fans, copper, aluminum, steel and electronic components.
• Prices of copper, aluminum and other metal materials are affected by commodity-price fluctuations, and the company generally purchases opportunistically based on its market outlook. The company does not possess complete upstream bargaining power over core raw materials and primarily controls costs through scale procurement, supplier diversification and inventory management.
• Procurement from the five largest suppliers in 2025 amounted to RMB 383 million, accounting for 20.19% of total annual procurement; the largest single supplier accounted for 5.18%. Concentration among the five largest suppliers was relatively limited, but the annual report did not disclose the suppliers’ names, making it impossible to determine whether procurement was concentrated among suppliers of particular key components.
• Downstream customers mainly include energy-storage system integrators, battery and PCS manufacturers, new-energy power-generation and power-transmission companies, electrical-drive companies, CNC machine-tool and laser-equipment manufacturers, semiconductor-equipment manufacturers, data-center and liquid-cooling-system customers, as well as customers in hydrogen energy, medical devices, new-energy vehicle charging and battery-swapping, and industrial washing equipment.
• Disclosed customers include CATL, BYD, Sungrow, CRRC, CALB, HyperStrong, Canadian Solar, JinkoSolar, Kinergy, NAURA, Haitian Precision, Ningbo Neway, Siyuan Electric, Sinexcel, TBEA, Hopewind, Inovance, XJ Electric, Kehua Data, ZTE and United Imaging Healthcare. However, the customer list is mainly intended to demonstrate customer resources and does not indicate that all these companies were among the five largest customers or generated stable, large orders.
• Sales to the five largest customers in 2025 amounted to RMB 1.205 billion, accounting for 42.03% of annual revenue; the largest customer accounted for 16.76% and the second-largest customer for 11.06%. These figures are for 2025. The annual report did not disclose the names of the five largest customers, making it impossible to determine whether they were primarily concentrated in the energy-storage sector.
• Industrial temperature-control equipment generally requires customer technical testing, supplier certification and long-term validation, creating a certain entry barrier. However, competition in energy-storage temperature control is intense, and major customers have relatively strong bargaining power. Declining order prices directly compress the company’s gross margin. In 2024, the company already experienced declines in energy-storage order prices and in the gross margin of temperature-control products for power-electronic equipment.
• The company operates in industrial equipment and key temperature-control components and does not possess the benchmark pricing power of a resource company. Downstream bargaining relationships are mainly reflected in project pricing by major customers, technical validation and order-price competition, rather than simple end-brand premiums.
• As of December 31, 2025, accounts receivable had a book balance of RMB 920 million, with a bad-debt provision of RMB 46 million and a book value of RMB 873 million, equivalent to approximately 30.45% of 2025 revenue. At the end of 2025, accounts receivable and contract assets attributable to the five customers with the largest balances accounted for 38.33% of total accounts receivable and contract assets, below 44.23% at the end of 2024. Prepayments at the end of 2025 were approximately RMB 19.95 million, with the five largest prepayment recipients accounting for 78.48% in aggregate; the book value of inventories was approximately RMB 279 million. Accounts receivable, inventories and capital tied up during project delivery indicate that the company does not have a completely dominant cash-collection position, and that certain major customers and project-based orders affect working-capital turnover.
• On the supply side, procurement from the five largest suppliers in 2025 accounted for 20.19% of total annual procurement, while the largest single supplier accounted for 5.18%, indicating relatively limited concentration. On the demand side, sales to the five largest customers accounted for 42.03% of revenue, with the largest customer accounting for 16.76%, clearly higher than supplier concentration. The specific names of customers and suppliers were not disclosed in the 2025 annual report. The concentration data only reflects the 2025 structure and cannot be used to further determine concentration by specific industry or key component.

Tongfei Co., Ltd. is positioned in the middle of the industrial temperature-control value chain. It is neither an upstream resource or basic-materials company nor a consumer-facing company with strong brand premiums. Further margin improvement will depend mainly on better pricing for energy-storage and power-electronics orders, product-mix optimization, customization premiums, upgrades to liquid-cooling and thermal-management products, material-cost control, scale procurement and higher capacity utilization, rather than simply on industry demand growth.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest formal financial report is the 2026 interim report, covering the period through June 30, 2026. Net profit attributable to the parent excluding non-recurring items in the first half of 2026 was approximately RMB 125 million, up 2.74% year on year; basic EPS was RMB 0.75, compared with RMB 0.74 in the same period of the prior year. Gross margin in the first half of 2026 was 22.13%, compared with 23.65% in the same period of the prior year; net margin was approximately 7.96%, compared with 9.88%; weighted average ROE was 5.98%, compared with 6.50%; and the asset-liability ratio was 25.64%. Net profit attributable to the parent excluding non-recurring items for full-year 2025 was approximately RMB 248 million, up 70.09% year on year.

In the first half of 2026, the company maintained relatively rapid revenue growth, but net-profit growth was significantly below revenue growth. Gross margin and net margin declined year on year, mainly due to higher bulk raw-material costs, increased R&D and administrative spending, overseas business expansion and investment during the expansion phase of the data-center liquid-cooling business. Profit growth in the second quarter of 2026 improved from the first quarter but remained below revenue growth. CICC disclosed that first-half 2026 revenue from the energy-storage sector was approximately RMB 925 million, up 36% year on year; revenue from the CNC equipment segment was approximately RMB 474 million, up 21.78%; and overseas revenue was approximately RMB 351 million, up 344.51%.

3.2 Earnings Forecasts

According to the institutional compilation by Tonghuashun as of September 10, 2026, nine institutions participated in forecasts over the previous six months. Representative brokerage forecasts include Guosheng Securities (August 16, 2026), Central China Securities (September 10, 2026), Guolian Minsheng Securities (September 9, 2026) and CICC (August 31, 2026). These forecasts are institutional or brokerage scenario assumptions, not formal company earnings commitments, and do not constitute a strictly consistent consensus estimate under a unified methodology.

3.3 Valuation and Institutional Ratings

As of September 11, 2026, the company’s closing price was RMB 86.20. Based on an approximate total share count of 171 million shares, total market capitalization was approximately RMB 14.76 billion. According to Lixinger, when the share price was RMB 89.56 as of September 10, 2026, PE-TTM was approximately 59.91x, at a historical percentile of approximately 81.27%; the recent 50th and 80th percentiles were approximately 48.15x and 59.60x, respectively. Based on the September 11 closing price, PE-TTM was approximately 57.9x. Based on Tonghuashun’s institutional average earnings forecasts, forward PEs for 2026–2028 were approximately 37.3x, 22.2x and 15.6x, respectively. Using CICC’s forecast of approximately RMB 340 million in 2026 net profit attributable to the parent, 2026 PE was approximately 45x; using Guosheng Securities’ or Central China Securities’ forecasts of approximately RMB 410 million to RMB 470 million, 2026 PE was approximately 31x to 36x. The current valuation is not inexpensive based on 2026 earnings, and the market has already priced in substantial expectations for the ramp-up of the data-center liquid-cooling business and profit growth in 2027–2028. Public information shows that CICC’s target price is RMB 116.91, implying theoretical upside of approximately 35.6% from the September 11 closing price. However, this target price comes mainly from CICC’s series of research reports and should not be regarded as a broadly diversified market-consensus target price. Whether the valuation can be sustained depends on the fulfillment of liquid-cooling orders, capacity release and margin improvement. Risks related to raw-material costs, competition in energy-storage temperature control, overseas business and the ramp-up of private-placement expansion projects also require attention. Closing-price and valuation data for September 14, 2026 were unavailable; the valuation section therefore uses the latest retrievable data as of September 11, 2026.

4. Recent News and Announcements

4.1 Private Placement Received CSRC Registration Approval

On August 28, 2026, the company disclosed that its application for a private placement had received registration approval from the China Securities Regulatory Commission. The approval is valid for 12 months from the date of registration consent, and the issuance must be implemented in accordance with the application documents submitted to the Shenzhen Stock Exchange and the issuance plan. The proposed fundraising amount is no more than RMB 1.140 billion, and the number of shares to be issued is no more than 51.17 million. The final issue price, number of shares and issuing entities will be determined at the time of issuance. The transaction is currently at the stage after registration approval but before implementation, and no actual proceeds have yet been received.

4.2 First-Half 2026 Report Disclosed, with Revenue Growing Faster than Profit

On August 28, 2026, the company disclosed its 2026 interim report, covering January 1, 2026 to June 30, 2026. During the reporting period, revenue was RMB 1,608.0385 million, up 27.27% year on year; net profit attributable to shareholders of the listed company was RMB 127.9566 million, up 2.45% year on year; and net profit after deducting non-recurring items was RMB 125.2263 million, up 2.74% year on year. The company will not distribute cash dividends, issue bonus shares or increase share capital through capital-reserve conversion for the interim period. The company stated that overseas revenue grew rapidly and that it continued to increase market-development, R&D and talent investment in data centers, liquid cooling and other businesses.

4.3 Expenses and Foreign-Exchange Losses Weighed on First-Half Profit Growth

As of September 11, 2026, the company stated in a response on the investor-interaction platform that selling, administrative and R&D expenses increased by a combined RMB 31.4146 million year on year in the first half of 2026. The increase was mainly used to expand markets such as data centers, recruit talent, increase R&D investment and improve domestic and overseas market services. The company also disclosed that foreign-exchange fluctuations resulted in a foreign-exchange loss of RMB 12.8976 million in the first half of 2026.

4.4 Progress on the “Dual Improvement in Quality and Returns” Initiative and Dividend Arrangements

On August 28, 2026, the company disclosed an announcement on progress under its “dual improvement in quality and returns” initiative. The company continues to focus on the R&D, manufacturing, sales and servicing of industrial temperature-control equipment. Its main products include liquid constant-temperature equipment, electrical cabinet temperature-control equipment, clean-water cooling units and special heat exchangers, which are used in CNC equipment, power electronics, energy storage, semiconductors, data centers, hydrogen energy and new-energy vehicle charging and battery-swapping. The company formulated the Shareholder Dividend Return Plan for the Next Three Years (2026–2028). On January 7, 2026, the company implemented the 2025 first-three-quarter equity distribution, paying a cash dividend of RMB 2.00 per 10 shares, for a total distribution of RMB 34.1158 million. On May 8, 2026, it implemented the 2025 annual equity distribution, paying a cash dividend of RMB 3.00 per 10 shares, for a total distribution of RMB 51.1737 million. The announcement did not disclose any new share-repurchase arrangement.

4.5 Institutional Research Focused on Liquid-Cooling Business and Capacity Expansion

On August 31, 2026, the company disclosed an investor-relations management activity record. Participating institutions included Zheshang Securities, Xinhua Fund, China AMC, Tianhong Asset Management, China Post Fund and CCB Fund. The company stated that demand in the liquid-cooling industry continues to grow, that it is increasing talent investment and marketing, and that it is accelerating related capacity deployment in conjunction with projects funded by the private placement. These statements were directional explanations made during institutional research exchanges. They do not constitute signed and disclosed major orders or completed capacity commissioning. Whether private-placement funds will actually be received, the construction progress of funded projects and the fulfillment of liquid-cooling orders remain subject to further confirmation.

4.6 Board Re-election Completed and Senior Management Adjusted

On August 10, 2026, the company held its third extraordinary general meeting of shareholders in 2026 and completed the board re-election. The new board consists of five non-independent directors, three independent directors and one employee representative director, with a term from August 10, 2026 to August 9, 2029. On the same day, the company completed the appointment of its management team: Zhang Guoshan continued as chairman; Zhang Haolei became general manager; Gao Yu became executive deputy general manager and chief financial officer; Song Peng became board secretary; Zhao Ying became securities affairs representative; and Zhang Junqi became head of the audit department. Gao Yu no longer serves as board secretary but continues to serve as director, executive deputy general manager and chief financial officer. Wu Guorong’s term expired and he no longer serves as deputy general manager, but continues to hold another position at the company.

4.7 Arrangement for the Interim Results Presentation

On September 10, 2026, the company disclosed that it would participate in the 2026 online collective reception day for investors of listed companies in Hebei and the 2026 interim results presentation. The event is scheduled for September 16, 2026 from 14:00 to 17:00, with online interaction between the company and investors from 15:30 to 17:00. Chairman Zhang Guoshan, General Manager Zhang Haolei, Executive Deputy General Manager and CFO Gao Yu, Board Secretary Song Peng and others will participate. As of September 14, 2026, the presentation had not yet been held, and the investor Q&A content remains pending disclosure.

4.8 Third Restricted Stock Incentive Plan Approved by Shareholders

The company’s third restricted stock incentive plan was reviewed by the board on June 18, 2026 and approved by the second extraordinary general meeting of shareholders in 2026 on July 9, 2026. This is an employee incentive arrangement, not a share repurchase or ordinary-shareholder disposal. As of September 14, 2026, no complete subsequent announcement on the grant or share-registration results had been retrieved. The specific number of shares granted, grant price and actual vesting progress remain subject to subsequent formal announcements.

4.9 No New Recent Disposals, Repurchases, M&A or Major Regulatory Matters Identified

As of September 14, 2026, no new disclosed plans for centralized-bidding share disposals, completed disposal announcements or announcements of changes in shareholdings reaching 1% were identified for the controlling shareholder, actual controller or parties acting in concert with them. No new share-repurchase proposal, repurchase report or repurchase-progress announcement was retrieved. No announcement of major asset purchases, disposals, mergers, external acquisitions or changes in control was retrieved. No announcement was retrieved indicating that the company had recently been subject to public penalties, a formal investigation, disciplinary action or major regulatory measures by the CSRC or Shenzhen Stock Exchange. These conclusions are based on the public information retrieved in this review. If inquiry letters, letters of concern or regulatory measures subsequently emerge, the formal disclosures of the relevant regulators and the company shall prevail.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of the September 11, 2026 close, Tongfei Co., Ltd. closed at RMB 86.20. The short-term price was below the self-calculated MA5, MA10 and MA20, and declined approximately 11.7% over the latest five trading days, indicating a weak technical pattern. The price is close to the MA20 and MA100 reference levels, but no effective stabilization signal has formed. MACD and RSI differ across platforms due to methodological differences. At present, the only confirmation is weak short-term momentum and a high-volatility price correction; these indicators cannot confirm a reversal. In terms of capital flows, third-party data as of September 10 showed consecutive net main-force outflows. Recent trading value gradually declined from approximately RMB 1.534 billion on September 4 to approximately RMB 601 million on September 11, indicating that trading activity had fallen from its peak. The shareholder structure shows relatively high concentration among the ten largest shareholders, but the data are as of June 30, 2026 and cannot be regarded as real-time holdings.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data, historical prices and technical indicators. It does not constitute investment advice or a single-point price forecast.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 50% to 60%; this is a subjective heuristic judgment based on the current technical picture, trading volume and capital flows, not a statistical probability): The reference range is RMB 82.5~92.0. Triggering conditions include the price holding around RMB 82.5, trading value falling to approximately RMB 500 million~RMB 800 million with marginal selling pressure easing, and the share price attempting to recover MA20 at approximately RMB 87.0 without effectively breaking through MA5 and short-term resistance around RMB 92. If this scenario occurs, it would more closely resemble high-volatility consolidation following a rapid rise and should not be viewed as confirmation of a trend reversal
• Weak decline (medium weight, approximately 30%; this is a subjective heuristic judgment, not a statistical probability): The reference range is RMB 78.0~85.5. Triggering conditions include a daily close effectively breaking below RMB 82.5, continued net main-force outflows, trading value expanding again to more than RMB 800 million while the close remains near the intraday low, or continued weakness in machinery equipment and the ChiNext market overall. If support around RMB 82 is lost, the RMB 78~80 area may be observed. If a high-volume long bearish candle appears with trading value above RMB 1 billion and limited buying support, the risk of a further retest of the RMB 67.3~70.0 area should be monitored
• Strengthening rebound (low weight, approximately 10% to 20%; this is a subjective heuristic judgment, not a statistical probability): The reference range is RMB 90.0~98.0. Triggering conditions include the share price regaining the RMB 89.5~92.0 area, daily trading value expanding to more than RMB 1 billion while closing relatively close to the intraday high, continued improvement in the MACD histogram, RSI14 returning above 40~50, and a further break above the MA10 reference resistance near RMB 96. If the price only rebounds toward RMB 90 on low trading volume, it may still be a weak rebound rather than a trend reversal

③ Capital and Liquidity Background

As of September 11, 2026, the daily turnover rate was approximately 8.52%, and trading value over the previous five trading days was approximately RMB 600 million to RMB 1.070 billion. Trading value reached approximately RMB 1.534 billion during the high-level phase on September 4. Following high-volume trading at elevated levels, trading value has gradually contracted, indicating that short-term trading activity has cooled. However, a daily turnover rate of approximately 8.5% remains relatively high, and positions have not fully settled. As of June 30, 2026, the ten largest shareholders held approximately 73.61% of total shares, while the controlling shareholder and related family shareholders held approximately 68.55% in aggregate; the ten largest tradable shareholders accounted for approximately 45.89% of the free float. Tonghuashun data for the same period showed some participation by public funds, QFII and other institutions, but the overall structure was not dominated by public funds. Because the shareholder data are approximately two and a half months older than the latest market data, trading, lock-up expirations, refinancing or institutional rebalancing may have occurred in the interim, and the data cannot be regarded as real-time. Higher ownership concentration means that actually tradable shares may be relatively concentrated, potentially amplifying price elasticity and short-term shocks in a high-volatility market. These data only describe trading activity and the shareholder background and cannot independently determine the subsequent direction.

If daily trading value expands continuously to more than RMB 1 billion over the next week, while the closing price regains the area around RMB 92 and main-force capital no longer shows consecutive net outflows, this may serve as an observable short-term signal of improved buying support. If trading value expands but the closing price continues to fall below RMB 82, the pattern would more closely resemble high-volume distribution or risk release.

④ Key Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observation framework, not a trading instruction: Monitor whether the RMB 85.5~87.2 area can again form closing-price support, particularly the level around MA20 at approximately RMB 87.09.
• Observation framework, not a trading instruction: Monitor whether the strong-support area of RMB 81.5~83.5 is effectively broken. If it breaks, the RMB 78.0~80.0 area may be observed further.
• Observation framework, not a trading instruction: Monitor whether the RMB 89.0~93.5 resistance area can be recovered with support from trading value. If not, the rebound may remain a technical repair.
• Observation framework, not a trading instruction: Monitor whether daily trading value again exceeds RMB 1 billion and whether this occurs alongside a recovery of the area around RMB 92. Also note that complete main-force capital data for September 11 has not yet been cross-verified.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news flow, capital flows, the broader market environment and other factors. Technical indicators themselves have lagging characteristics and limitations. This analysis does not guarantee future actual performance and does not constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and bear their own investment risks.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The underlying refrigeration, heat-exchange and control technologies of the industrial temperature-control industry are relatively mature. However, different downstream applications have different requirements for temperature-control precision, reliability, response speed, environmental adaptability and system-integration capabilities, creating technological, experience-based and customer-certification barriers. Temperature-control technologies in different subsectors share some common characteristics, allowing companies to expand applications through platform-based R&D capabilities. Emerging markets such as energy-storage temperature control and data-center liquid cooling are attracting traditional industrial temperature-control, precision-air-conditioning and power-electronics thermal-management companies.

6.2 Competitive Landscape

• Competition in the industry is not entirely homogeneous, and companies differ in customer industries, product forms and technology routes.
• Downstream customers generally require long-term testing and multiple rounds of technical validation for temperature-control equipment, creating brand, technology and service barriers to supplier entry.
• Energy-storage temperature control and data-center liquid cooling are emerging applications that the company is prioritizing, but its core business remains industrial temperature control. It should not be directly defined as a single-focus data-center liquid-cooling company or a pure “AI liquid-cooling” play.
• Concentration in the energy-storage temperature-control market remains relatively low. Envicool, Tongfei Co., Ltd. and Shuangliang Environment have formed a relatively clear leading group. Third-party materials state that the five largest companies in China’s energy-storage temperature-control market in 2023 included Envicool, Tongfei Co., Ltd., Shuangliang Environment, Goaland and Songz. This market-share information was not independently cross-verified in the company’s annual report, and specific shares should be used cautiously.
• Tongfei Co., Ltd.’s capacity-utilization rates from 2023 to 2025 were 117.37%, 124.70% and 121.36%, respectively, indicating expansion pressure in the existing production system. However, the company has not fully disclosed absolute designed capacity for each product under a consistent methodology, and capacity utilization cannot simply be equated with sales volume.
• The company plans to add annual capacity of 180,000 units through the Southern Headquarters and Industrial Cooling Equipment and Components project and 90,000 units through the liquid-cooling temperature-control project, for a total planned increase of 270,000 units. These projects are planned and fund-raising-related capacity and should not be regarded as fully operational effective capacity as of the present.

6.3 Major Competitors

Tongfei Co., Ltd.’s differentiated positioning is based on industrial temperature control, covering power electronics, energy storage, CNC equipment, semiconductors and data centers, with liquid constant-temperature equipment now its core product. Envicool has greater exposure to data centers, communications and precision air conditioning; Goaland focuses more on high-power power electronics and liquid cooling; Shuangliang Environment covers a broader range of special-environment control and data-center applications; Canatal focuses more on data-center room environmental control; and Songz has traditional strengths in vehicle air conditioning and automotive thermal management. The company’s main competitive pressures come from price competition in energy-storage temperature control, the high proportion of direct materials, relatively high concentration among the five largest customers, and the entry of multiple companies into data-center liquid cooling.

7. Risk Factors

• Raw-material cost and gross-margin risk: Direct materials account for a high proportion of the costs of the company’s major products, including 86.13% for liquid constant-temperature equipment and 89.33% for clean-water cooling units. If the costs of compressors, water pumps, fans, copper, aluminum and steel rise and the company cannot pass through the increases to customers, gross margin may remain under pressure. Gross margin in the first half of 2026 had already declined from 23.65% in the same period of the prior year to 22.13%.
• Price-competition risk in energy-storage and power-electronics businesses: Liquid constant-temperature equipment accounted for 70.93% of 2025 revenue, while temperature-control products for power-electronic equipment accounted for 68.94%. The company has disclosed declining energy-storage order prices and relatively low gross margins on large customer orders. If competition intensifies, revenue growth may not translate into corresponding profit growth.
• Customer concentration and collection risk: Sales to the five largest customers accounted for 42.03% of 2025 revenue, with the largest customer accounting for 16.76%. The book value of accounts receivable at period-end was RMB 873 million, equivalent to approximately 30.45% of 2025 revenue. Bargaining by major customers and changes in project delivery schedules or collection periods may affect cash flow and asset impairment.
• Data-center liquid-cooling execution risk: The company is increasing talent, R&D and market investment in data-center liquid cooling, but institutional research content is directional and does not constitute signed major orders or completed capacity commissioning. If customer validation, order introduction or project-construction progress falls below expectations, the related investment may temporarily weigh on profit.
• Private-placement and capacity-expansion execution risk: Although the private placement has received CSRC registration approval, with proposed proceeds of no more than RMB 1.140 billion, the issuance and receipt of funds have not yet been completed. New capacity and fund-raising projects remain subject to risks related to issue price, number of shares issued, construction progress, capacity ramp-up and utilization falling below expectations.
• Overseas operating risk: Overseas revenue increased 269.92% year on year in 2025 and approximately 344.51% in the first half of 2026, but the company incurred a foreign-exchange loss of RMB 12.8976 million in the first half of the year. Overseas market expansion, exchange-rate fluctuations and overseas service investment may result in a mismatch between revenue growth and profit contribution.
• Valuation and share-price volatility risk: As of September 11, 2026, the company’s PE-TTM was approximately 57.5x to 58.4x. The share price had fallen approximately 31.6% from the 52-week high, was recently below MA5, MA10 and MA20, and third-party data showed consecutive net main-force outflows. If liquid-cooling orders, margin recovery or expansion fail to meet market expectations, valuation volatility may increase further.
• Capacity-utilization and operating-efficiency risk: The company’s capacity-utilization rates exceeded 117% from 2023 to 2025, indicating expansion pressure in the existing system. If demand, customer certification or order mix do not improve in tandem after new capacity is deployed, the company may face capacity-ramp-up challenges, insufficient fixed-cost dilution, or increased inventory and working-capital utilization.

8. Conclusion and Outlook

Tongfei Co., Ltd.’s growth thesis is primarily based on expansion of its industrial temperature-control base, growth in demand for energy-storage and power-electronics temperature control, overseas market expansion, and R&D and capacity investment in new applications such as data-center liquid cooling. The company’s capacity-utilization rates from 2023 to 2025 were 117.37%, 124.70% and 121.36%, respectively, indicating expansion pressure in the existing production system. The planned Southern Headquarters and related projects are expected to add 270,000 units of capacity in aggregate. If the issuance, capacity construction and customer introduction proceed smoothly, they may support medium-term revenue growth.

However, first-half 2026 revenue growth was significantly higher than profit growth, reflecting continued gross-margin pressure, expense investment and foreign-exchange volatility alongside scale expansion. Further earnings release will depend on energy-storage and power-electronics order prices, material-cost control, data-center liquid-cooling orders and capacity utilization, and whether overseas business investment can be converted into stable profits. The wide range of institutional earnings forecasts for 2026–2028 indicates continued uncertainty regarding earnings delivery.

Valuation and trading conditions are also in a highly sensitive range. Based on the September 11, 2026 closing price, the company’s PE-TTM was approximately 57.9x, indicating that the market has already priced in substantial expectations for liquid-cooling volume growth and subsequent profit expansion. Meanwhile, the share price has recently fallen below several short-term moving averages, and main-force capital data show consecutive net outflows. No clear short-term stabilization signal has yet formed. The degree of alignment among fundamental expansion, valuation digestion, margin recovery and technical repair will therefore be a key focus going forward.

Data Sources

• Tongfei Co., Ltd. (300990)_Company Announcements_Tongfei Co., Ltd.: 2025 Annual Report Summary_Sina Finance_Sina.com
• https://pdf.dfcfw.com/pdf/H2_AN202603311820920637_1.pdf
• Tongfei Co., Ltd.
• From 2023 to 2025, the company’s capacity-utilization rates were 117.37%, 124.70% and 121.36%, respectively. To alleviate capacity pressure and ensure production stability, the company is expanding industrial temperature-control equipment capacity by constructing new buildings and purchasing equipment. This decision was made based on actual development needs. The area of the new buildings matches the output value per unit and is necessary and reasonable.
• [Question 2

According to the application materials, this issuance proposes to raise RMB 1.2 billion through a competitive offering, to be used for the Southern Headquarters and Industrial Cooling Equipment and Components project](https://static.cninfo.com.cn/finalpage/2026-05-26/1225331693.PDF?utm_source=openai)

• Tongfei Co., Ltd. (300990)_Company Announcements_1-1 Prospectus (Updated Response to Registration-Stage Feedback) (Registration Draft)_Sina Finance_Sina.com
• Tongfei Co., Ltd. (300990): Deep Industrial Temperature-Control Expertise; Expansion into Data Centers and Other Emerging Industries May Unlock New Growth
• Company Announcements_Tongfei Co., Ltd.: Financial Report for the Most Recent Year and Audit Report and Financial Report for the Latest Period_Sina Finance_Sina.com
• [The comparison is shown in the following table:

<table id="e1">

<tr>

<th>Company Name</th>

<th](https://static.cninfo.com.cn/finalpage/2026-06-30/1225399429.PDF?utm_source=openai)

• Interactive Easy Cloud Interview
• Sanhe Tongfei Refrigeration Co., Ltd. 2026 Private Placement Prospectus (Revised Draft)
• Sanhe Tongfei Refrigeration Co., Ltd. 2026 Private Placement Prospectus (Registration Draft)
• [Industry Outlook! China’s Energy-Storage Temperature-Control Industry Chain, Industry Environment, Market Size and Future Prospects in 2025: Increasing New-Energy Storage Installations Continue to Drive Industry Development [Chart]_Zhiyan Consulting](https://www.chyxx.com/industry/1208869.html?utm_source=openai)
• Tongfei Co., Ltd. (300990)_Company Announcements_Tongfei Co., Ltd.: 2026 Interim Report_Sina Finance_Sina.com
• Tongfei Co., Ltd. (300990): Traditional Business Fundamentals Remain Solid; Accelerating Data-Center R&D and Capacity Construction_Sina Finance_Sina.com
• Tongfei Co., Ltd. (300990)_Company Announcements_Tongfei Co., Ltd.: 2025 Annual Report_Sina Finance_Sina.com
• Tongfei Co., Ltd. (300990) Earnings Forecast_F10_Tonghuashun Financial Services
• Tongfei Co., Ltd. (300990) Earnings Forecast_F10_Tonghuashun Financial Services
• Tongfei Co., Ltd. (300990) First-Half 2026 Results Review: Energy-Storage Temperature Control Continues to Grow; Data-Center Liquid Cooling Opens New Growth Space_Sina Finance_Sina.com
• Tongfei Co., Ltd. (300990.SZ) Stock Quotes_Historical Data_Main-Force Capital - Dawave Data
• Tongfei Co., Ltd. (300990) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Tongfei Co., Ltd. (300990) PE|Valuation|Fundamentals - Lixinger
• Tongfei Co., Ltd. (300990)_Company Announcements_Tongfei Co., Ltd.: 2026 Interim Report Summary_Sina Finance_Sina.com
• Tongfei Co., Ltd. (300990)_Company Announcements_Tongfei Co., Ltd.: Announcement on Participation in the 2026 Online Collective Reception Day for Investors of Listed Companies in Hebei and the 2026 Interim Results Presentation_Sina Finance_Sina.com
• Tongfei Co., Ltd.: Selling, Administrative and R&D Expenses Increased by RMB 31.4146 Million Year on Year_Finance Headlines_Sina Finance
• Tongfei Co., Ltd.: Private Placement Received CSRC Registration Approval_Eastmoney
• Tongfei Co., Ltd. (300990)_Company Announcements_Tongfei Co., Ltd.: Investor Relations Management Information 20260831_Sina Finance_Sina.com
• Tongfei Co., Ltd.: Announcement on Progress under the “Dual Improvement in Quality and Returns” Initiative
• Company Announcements_Tongfei Co., Ltd.: Announcement on Completion of Board Re-election and Appointment of Senior Management, Securities Affairs Representative and Head of Audit Department_Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2025-09-16/1224664127.PDF?utm_source=openai
• Tongfei Co., Ltd. (300990): Share Price, News, Quotes and Charts_Futubull
• Tongfei Co., Ltd. (300990) Technical Analysis of Share Price, Trends, Forecasts and Trading Suggestions_Investing.com
• Tongfei Co., Ltd. (300990) Technical Analysis of Share Price, Trends, Forecasts and Trading Suggestions_Investing.com
• Tongfei Co., Ltd. (300990.SZ) Stock Quotes_Historical Data_Main-Force Capital - Dawave Data
• Tongfei Co., Ltd. (300990) Shareholder Research_F10_Tonghuashun Financial Services
• Tongfei Co., Ltd. (300990) Latest Developments_F10_Tonghuashun Financial Services

This report was automatically retrieved, compiled and generated by AI based on information from public channels. The information is current as of the September 11, 2026 close; September 14, 2026 is the current date, but complete later closing data was unavailable, so intraday or unconfirmed data is not used. Timing differences may exist. Specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only, does not constitute investment advice, and investors should make independent judgments and bear their own investment risks.