Nanjing Canatal Data Centre Environmental Tech Co Ltd Class A

Jia Li Tu has responded to the Shanghai Stock Exchange's inquiry letter regarding its 2025 annual report, explaining the reasons for its first annual loss since listing. The company's 2025 revenue was 739 million yuan, down 8.34 percent year-on-year, with a net loss attributable to the parent company of 54 million yuan, a sharp decline of 251.95 percent year-on-year. Precision air conditioning revenue reached 517 million yuan, up 12.37 percent year-on-year, benefiting from demand in AI and energy storage equipment rooms. Integrated product revenue was 172 million yuan, down 38.15 percent year-on-year, mainly due to changes in the centralized procurement model of telecom operators and the company's proactive reduction of general contracting orders from China Mobile. Gross margins continued to decline. On one hand, the prices of core raw materials such as copper and steel rose by over 30 percent for the full year, while operator centralized procurement pricing remained rigid. On the other hand, the revenue share of high-margin liquid cooling and overseas businesses was relatively low. The shift to a loss was also affected by increased financial and R&D expenses, as well as a full-year loss of 24.5209 million yuan from the Kaide Youyun data center project.

Jialitu disclosed its earnings forecast, expecting a net loss attributable to the parent company of 63 million to 75 million yuan in the first half of 2026, compared with a loss of 17.7716 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 68 million to 80 million yuan, compared with a loss of 25.3275 million yuan a year earlier. The company stated that the change in performance was mainly due to intense industry competition and rising upstream procurement costs, which led to a sharp decline in the gross margin of its integrated business. The profitability of precision air conditioning and maintenance services also weakened simultaneously, causing a significant contraction in overall main business gross profit. In addition, extended project cycles have resulted in a backlog of shipped goods, some project orders incurred losses, and customer payment collection slowed down. The company made substantial provisions for inventory and credit impairment, which dragged down short-term profits. After its subsidiary Kaide Youyun Data Center was converted to fixed assets and began operations, depreciation, electricity costs, and operation and maintenance expenses increased significantly year-on-year. The company is accelerating customer signings and rack deployments to boost revenue, and this segment is expected to contribute to profits once capacity is fully utilized.