Fangsheng Co., Ltd. (920662) Discloses Investor Relations Activities, Clarifies Acquisition Rumors, and Details Business Strategy

Wuxi Fangsheng Heat Exchanger Co., Ltd. announced the Investor Relations Activity Record on March 9, 2026. The announcement states that the company held an investment strategy meeting in Shanghai and Wuxi from March 4 to 5, 2026. Attendees included institutions such as Kaiyuan Securities, Harvest Fund, Mingde Capital, Changjiang Securities, Shangxin Capital, Lianchu Securities, Zheshang Securities, Northeast Securities, Guolian Minsheng Securities, and others. The company’s reception staff was Mr. Zhang Weifeng, Secretary of the Board.

Regarding market rumors, the company clarified: “As of now, there is no acquisition of Danish liquid cooling company Asetek, and related reports are false.” Concerning the expansion of the gas turbine business, the company stated that its plate-fin heat exchangers are not used in the gas turbine intake cooling process. Currently, there is no verification whether waste heat utilization in gas turbines can adopt plate-fin heat exchanger solutions. “At present and in the short term, there will be no business expansion with gas turbine manufacturers.”

In the wind power sector, the company has been involved since 2008 in thermal management products for wind power, providing integrated water cooling systems for wind turbines, and supplying cooling system products for hydraulic lubrication, generators, transformers, inverters, and pump circulation systems. The announcement shows that “the company’s main clients include Goldwind Technology, Envision Energy, Sany Heavy Energy, China Shipbuilding Haiyang, CRRC, Siemens, and other leading companies in the power industry.” Products used on the grid side include integrated water cooling systems for wind power, UHV transmission and transformation, SVG water cooling systems, energy storage-related liquid cooling systems, photovoltaic inverter cooling systems, charging pile water cooling systems, and magnetic levitation blower water cooling systems, covering power generation, energy storage, transmission and distribution, and various electricity usage scenarios.

Regarding new land acquisition plans, the company stated that it is actively promoting the acquisition of state-owned land use rights through “bidding, auction, and listing.” Considering that the “20,000 units (sets) energy-efficient and high-performance heat exchange systems and heat exchanger production base construction project” is expected to be completed and put into production, the current site may not meet future business development needs. The company also considers that land resources in the area are quite scarce, so acquiring land is laying a foundation for future growth. The related projects are still in the preliminary demonstration stage.

For the waste heat recovery heat exchanger business, the announcement pointed out that “recent growth in energy storage demand has driven increased demand for lithium batteries, which in turn has increased procurement of coating machine equipment for lithium batteries. Orders for heat exchangers and heat exchange systems used in coating machines are expected to show a recovery and growth trend.”

Regarding performance changes in 2025, the company explained that the unaudited net profit attributable to shareholders of the listed company in 2025 decreased by 34.69% compared to the previous year. The main reasons include: a decline in gross profit margin, domestic sales facing market competition pressure, lower gross margins in the wind power sector with significant revenue growth, and a decrease in demand from overseas existing customers with higher gross margins; the average market price of aluminum ingots on the procurement side has been steadily rising, and some customers’ sales prices could not be effectively passed on; completion of the fundraising project and trial production preparations led to increased depreciation, amortization, and labor costs; some domestic customers entered litigation due to poor receivables, and specific bad debt provisions were made, resulting in a significant increase in credit impairment losses compared to the previous year.

According to Bibu Finance, the company is a high-tech enterprise specializing in the research, design, production, and sales of heat exchangers and heat exchange systems, providing solutions, professional services, and quality products worldwide. The company’s products are widely used in wind power, waste heat recovery, rail transit, air compressors, engineering machinery, automobiles, and other fields.