The "15th Five-Year Plan" releases new opportunities. Siquan New Materials accelerates its layout in AI cooling and global production capacity.

The “Fifteenth Five-Year Plan” outline officially released in March 2026 clearly calls for advancing innovation across entire industry chains, including electronic information and mechanical equipment, developing high-end and scarce products, and accelerating breakthroughs in key components, electronic components, and specialized materials; it also calls for advancing, across the entire chain, major breakthroughs in key core technologies in priority areas such as integrated circuits and advanced materials. At the same time, it calls for comprehensively implementing the “AI+” initiative, strengthening deep integration between artificial intelligence and technology innovation as well as industrial development, seizing the commanding heights of AI industry application, and empowering industries across all sectors in every way.

Policy tailwinds continue to be released, opening clear room for growth for the heat-management functional materials industry. Siqwen New Materials (301489.SZ), a leading domestic company in the consumer electronics heat dissipation sector, aligns its principal products and business layout with the industrial main lines of the “Fifteenth Five-Year Plan” outline. Riding on the momentum of favorable policies, the company is continuously stepping up efforts in areas such as AI terminal heat-dissipation upgrades, liquid-cooling technology R&D, and global capacity construction, accelerating leapfrog development with its corporate vision of “becoming the leader in high-reliability electronic system protection and thermal control technologies.”

AI terminal iteration drives product upgrades; core business performance continues to be delivered

The rapid development of the AI industry is driving ongoing upgrades in heat-dissipation demand for consumer electronics terminals. According to Canalys data, AI phones are expected to achieve a compound annual growth rate (CAGR) of 63% from 2023 to 2028, and AI PCs are expected to achieve a CAGR of 42% from 2024 to 2028. Driven by the trend of integrating artificial intelligence technologies, the evolution of the consumer electronics industry has expanded the heat-dissipation application market, bringing more stringent functional and performance requirements for comprehensive heat-dissipation solutions. Siqwen New Materials is accelerating the implementation of its product strategy of “heat-management materials + heat-management components + heat-management systems,” and the company’s product value per unit has also been enhanced.

Sustained growth on the demand side has directly translated into the company’s operating performance. Financial data shows that in 2024, Siqwen New Materials achieved operating revenue of RMB 656 million, up 51.10% year over year. The key drivers of growth came from a substantial increase in orders from major North American customers and continued improvement in market share. In the first three quarters of 2025, as the company further expanded its markets, its operating revenue reached RMB 670 million, exceeding full-year 2024 levels. It achieved attributable net profit of RMB 63 million, up 52.21% year over year.

The company is currently advancing a follow-on offering. Of the planned funds, RMB 30.16 million will be used for information system construction, deepening data enablement to improve management level and enhance the company’s intelligent manufacturing capability, in line with the policy requirements for digital and intelligent transformation of manufacturing under the “Fifteenth Five-Year Plan.” At the same time, the information system also optimizes the company’s production and manufacturing management model, strengthens process management and control, improves utilization of internal resources, raises work efficiency, and reduces production costs—laying a foundation for the company’s continued improvement in profitability and healthy, steady development.

Stepping up R&D in the liquid-cooling track and laying out a new blue-ocean market for AI compute infrastructure

While consolidating its foundational position in consumer electronics, Siqwen New Materials is actively laying out the AI server liquid-cooling track to build a second growth curve. The company’s related business layout is highly aligned with the policy direction for AI infrastructure development under the “Fifteenth Five-Year Plan.”

Liquid-cooling technology, with higher heat-dissipation efficiency and improved energy savings, has broad applications in high-energy-consumption areas such as data centers and high-performance computing. It is the mainstream direction of industry development. According to company announcements citing data and forecasts from Soochow Securities, the global cold-plate-based liquid-cooling market size will grow from RMB 5.3 billion in 2024 to RMB 105.6 billion in 2028, with a CAGR of 111.27%. China’s cold-plate-based liquid-cooling market size will grow from RMB 1.1 billion to RMB 25.3 billion, with a CAGR of 118.99%, and the industry is in a period of rapid growth.

In 2025, Siqwen New Materials has carried out R&D and product design for 750W–3000W liquid-cooling technology. In its targeted placement plan, the company also plans to invest RMB 31.59 million to build a liquid-cooling heat-dissipation R&D center project, focusing on developing liquid-cooling products and solutions suitable for high-performance servers, edge-computing equipment, and other fields. Through technology upgrades and product iteration, the company will seek to enter the core supplier chain system of server manufacturers and large cloud service providers, optimize its customer structure, enhance product added value and bargaining power, cultivate new growth drivers, and improve profitability.

Meanwhile, for the server and chip sectors, based on its existing synthetic graphite and graphene heat-conducting film work, the company is developing a new generation of ultra-low interfacial thermal resistance, which will establish a comprehensive technical framework in the company’s carbon-based materials field—graphene & vertically oriented synthetic graphite thermal interfacial materials. As the company’s newly emerging industry-related in-progress projects continue to be advanced, the year-over-year growth rate of R&D expenses in the first three quarters of 2025 has reached as high as 62.58%. By mastering core technologies, the company can meet and support downstream customers’ professional heat-management product needs from the R&D stage through to mass production.

Advancing Vietnam capacity construction; the targeted placement strengthens the foundation for global development

The “Fifteenth Five-Year Plan” outline further strengthens policy requirements for global layout of high-end manufacturing and improving the resilience of industrial chains. Siqwen New Materials is accelerating overseas capacity construction, and globalized layout has become one of the company’s core development main lines. In this round of the targeted placement proposal, the company’s largest fund-raising project is the Vietnam Siqwen New Materials heat-dissipation products project. The project’s total investment is RMB 369 million. It mainly produces graphite heat-dissipation materials and heat-conduction interface materials. Its core response is to meet the localized supply-chain supporting needs of Korean and North American leading mobile phone manufacturers for their suppliers, and to deeply integrate into the global supply-chain system of core customers.

The company’s principal products include artificially synthesized graphite heat-dissipation sheets and artificially synthesized graphite heat-dissipation films. The heat-conduction performance of the artificially synthesized graphite heat-dissipation films directly determines the product quality of the artificially synthesized graphite heat-dissipation sheets, which is the company’s main production bottleneck. As of the first half of 2025, the capacity utilization rate of the company’s artificially synthesized graphite heat-dissipation films has reached 97.47%, significantly higher than 78.85% in 2022 and 83.93% in 2023. As of October 31, 2025, the value of orders on hand for the company’s artificially synthesized graphite heat-dissipation materials and heat-conduction interface materials exceeds RMB 80 million, providing solid order support for capacity expansion. On the compliance side, obstacles related to the targeted placement have been gradually cleared. Customs inspection matters have received decisions of no administrative penalty. The related environmental impact assessment and acceptance work for the subsidiaries has been completed. The extension of the previously raised projects has fulfilled the necessary approval procedures. These have laid a compliant foundation for the company’s advancement of refinancing and subsequent capacity expansion.

At present, Siqwen New Materials has gradually expanded from a single graphite heat-dissipation product supplier to a diversified layout of heat-management products including heat pipes, vapor chambers, heat-conductive gels, liquid-cooling cold plates, and other categories. It is steadily advancing its product strategy of “heat-management materials + components + heat-dissipation systems.” With continuous empowerment from a series of national policies under the “Fifteenth Five-Year Plan,” the company is deeply tied to three major development main lines: localization of specialized materials, upgrades of the artificial intelligence industry, and the globalization of high-end manufacturing. The company will continue to explore growth opportunities across all scenarios in the heat-management industry.

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