Analysis of Envicool 2025 Financial Report: Revenue Exceeds 6 Billion, Liquid Cooling Business Steadily Advances, 2026 Q1 Shows Phased Pressure

Envicool is a provider of precision temperature control and energy-saving solutions and products. The company is committed to offering equipment cooling solutions and precision environment control solutions for data centers, intelligent computing centers, computing power equipment, electrochemical energy storage systems, communication networks and other fields. It also provides air conditioners, refrigeration units and related products and services for subways and various electric commercial vehicles.

According to Envicool’s 2025 annual report, the company achieved operating revenue of 6.068 billion yuan, a year-on-year increase of 32.2%. Net profit attributable to parent company was 522 million yuan, up 15.3% year-on-year. Net profit attributable to parent company after deducting non-recurring gains and losses was 504 million yuan, a year-on-year increase of 17.2%. In the fourth quarter alone, the company’s operating revenue reached 2.042 billion yuan, up 18.9% year-on-year, and net profit attributable to parent company was 123 million yuan, rising 23.0% year-on-year.Based on Envicool’s financial performance over the years, its overall performance maintained steady growth in 2025, with annual revenue growth staying at a relatively high level. The 15.3% profit growth rate was relatively moderate compared with the previous three years, which was normal given the company’s relatively high spending on R&D and production capacity construction in 2025.

In accordance with the disclosure in Envicool’s official financial report, its main business is divided into five core segments: computer room temperature control, outdoor cabinet temperature control, rail transit temperature control, bus air conditioning, and power electronics temperature control. This report focuses on computer room temperature control, outdoor cabinet temperature control and power electronics temperature control, with detailed introduction of their product coverage.Computer room temperature control products mainly provide room-specific temperature control and energy-saving solutions for data centers, intelligent computing centers, communication equipment rooms, high-precision laboratories and other scenarios. They are used for equipment cooling and precise control of temperature, humidity and cleanliness in equipment rooms, manufacturing and testing equipment, and laboratory spaces. Products such as data center air cooling, data center liquid cooling, server liquid cooling integrated cabinet accessories, and liquid cooling testing equipment fall into this business category.

Outdoor cabinet temperature control products provide temperature control solutions for outdoor cabinets or containers including wireless communication base stations, energy storage power stations, power transmission and distribution equipment cabinets, electric vehicle charging stations, and drone airports, as well as cabinet temperature control products for intelligent manufacturing equipment.Power electronics cooling business covers heat dissipation products for server chips, semiconductors and power devices. Cold plates, UQD, CDU long-acting liquid cooling fluids, and liquid leakage detection products are also included in this business.In terms of revenue structure, Envicool’s main business income was highly concentrated in 2025. Computer room temperature control accounted for 56.83% of total revenue, making it the company’s largest core business. Outdoor cabinet temperature control contributed 32.59% as the second largest revenue source, supporting steady performance growth. Other businesses accounted for 8.35%. The company has formed a revenue structure driven by dual core businesses: data center computing power temperature control and energy storage & communication outdoor temperature control.From the perspective of data centers and liquid cooling, Envicool’s business has been dominated by computer room temperature control in both 2024 and 2025, with the proportion exceeding 50%. Driven by the expanded revenue base, the company’s data center business revenue reached 3.409 billion yuan in 2025, an increase of 1 billion yuan compared with 2.389 billion yuan in 2024. It can be seen that Envicool achieved substantial growth in data center temperature control products in 2025. Amid the transition from air cooling to liquid cooling in data centers, the company’s liquid cooling product revenue also grew notably, generally in line with industry expectations.

According to Envicool’s 2025 annual report and verified industrial chain progress, the company’s data center business has established a global customer base with a solid presence in the domestic market and steady development in the North American high-end market.As the core market for Envicool’s data center business, the domestic market covers a wide range of customers. The company provides a full range of liquid cooling products from traditional precision air conditioners and indirect evaporative cooling equipment to cold plates, CDU, liquid cooling cabinets and integrated solutions. By the end of 2025, the cumulative delivery scale of domestic liquid cooling projects reached 1.2GW.

The North American market has become an important growth segment for the company with high gross margin. Envicool has entered the supply chain of global leading computing power customers, obtained relevant product certifications, and achieved small-batch deliveries of core liquid cooling components. The North American business focuses on exporting high value-added liquid cooling parts, with favorable gross margin performance. The business is progressing steadily and is expected to enter large-scale delivery in 2026.Following the release of the 2025 annual report, Envicool also released its first-quarter performance. In Q1 2026, the company achieved operating revenue of 1.175 billion yuan, a year-on-year increase of 26.03%, maintaining growth in its main business. However, net profit attributable to parent company was only 8.66 million yuan, down 81.97% year-on-year. Net profit after deducting non-recurring gains and losses was 5.39 million yuan, down 87.10% year-on-year. Gross margin decreased by 2.16 percentage points year-on-year, and net operating cash flow was -386 million yuan.The short-term profit pressure mainly came from concentrated expenses during the expansion of liquid cooling and overseas businesses, construction of overseas factories, continuous high investment in R&D and sales, and mismatched schedules between project delivery and revenue recognition. This is a typical phased financial challenge during the expansion of a high-growth industry, rather than a decline in core competitiveness. Performance is expected to recover gradually with large-scale delivery and improved quarterly rhythm.

Summary and Industry Outlook

Envicool achieved steady growth in overall revenue and profit in 2025. Data center temperature control and liquid cooling business became major growth drivers, with both scale and proportion reaching new highs, which also reflected that liquid cooling has moved from pilot applications to large-scale deployment.The domestic market remains solid with optimized liquid cooling delivery and customer structure. Supported by the accelerated construction of domestic AIDC intelligent computing centers, Envicool is well-positioned with its full-chain liquid cooling capabilities.The North American market has made steady breakthroughs with clear customer structure and established technical barriers. It is currently in the stage of small-batch supply and gradual volume growth.The short-term pressure in Q1 2026 is a normal phased phenomenon during business expansion. With the recovery of project deliveries and the release of production capacity, performance is expected to improve gradually.In the long run, driven by the booming demand for domestic intelligent computing centers and the gradual implementation of overseas orders, Envicool’s liquid cooling business is expected to enter a stage of accelerated development. With solid fundamentals, favorable industry trends, and continuous optimization of customer and product structure, the company maintains a stable long-term growth outlook.

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