Sichuan Chuanhuan Technology Co Ltd

Chuanhuan Technology released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 626 million yuan, down 9.04 percent year on year. Net profit attributable to the parent company was 75.11 million yuan, down 23.85 percent. Non-GAAP net profit was 70.47 million yuan, down 26.02 percent. Despite earnings pressure, net cash flow from operating activities reached 152 million yuan, a sharp increase of 369.81 percent from negative 56.5 million yuan in the same period last year. The company's core revenue still comes from its automotive rubber hose business. Affected by declining domestic auto sales and shrinking demand for traditional fuel vehicles, main business revenue fell by about 63.69 million yuan. However, the liquid cooling business became a bright spot, achieving sales of 30.22 million yuan including tax during the reporting period, up 96.97 percent year on year, accounting for about 4.27 percent of total sales. The company has already cooperated with leading enterprises such as Inspur, Tencent, Alibaba, and FinDreams Battery, and multiple projects have entered the mass production and delivery stage. The company said that the liquid cooling business is still small in scale and has not been able to fully offset the decline in the main business. But in the future, as the penetration rate of new energy vehicles rises and data center PUE policies become stricter, liquid cooling technology will provide new growth space. Investors need to be alert to risks from macroeconomic fluctuations, raw material price changes, and the absorption of new production capacity.