28 Billion Yuan! Leading Chemical New Materials Supplier of Kingfa Sci & Tech Makes Largest Liquid Cooling Mergers & Acquisitions (M&A) Deal

[DT New Materials] learned that Dongyangguang announced the company and its related party, Shenzhen Dongyangguang Industrial, jointly increased the capital of Yichang Dongshu No. 1 Investment Co., Ltd., with amounts of 3.5 billion yuan and 4 billion yuan respectively. At the same time, Dongshu No. 1, through its subsidiary, plans to acquire 100% equity of ChinData's China business entity, with a transaction price of 28 billion yuan. This transaction not only sets a new record for mergers and acquisitions in China's data center industry but also marks a crucial step for Dongyangguang in transitioning from a traditional manufacturing giant to a player in the digital economy and artificial intelligence.

More noteworthy is that the core logic behind this acquisition is not merely a capital operation, but a strategic layout centered around liquid cooling technology and materials. Dongyangguang has long been deeply involved in the fields of electronic chemicals, fluorochemical materials, and energy. Its advantages in new material segments such as fluorinated cooling liquids and cold plate components, combined with ChinData's ultra-large-scale data centers and liquid cooling operational capabilities, are building a "full-stack liquid cooling ecosystem" from materials to computing power.

(01) From Materials to Computing Power: Dongyangguang's Strategic Transformation

Dongyangguang's main businesses include six major sectors: electronic components, high-end aluminum foil, new chemical materials, energy materials, liquid cooling technology, and embodied intelligence. It is a leading enterprise in the fields of fluorochemical and refrigerants, aluminum foil and electronic materials, and capacitors in China. It is also one of the few domestic companies that simultaneously master mass production technologies for lithium iron phosphate, ternary materials, lithium iron phosphate, and ternary precursors.

Among them, the new chemical materials sector covers chlor-alkali chemical products and new environmentally friendly refrigerants, and has established cooperative relationships with companies such as Blue Moon, Capchem, Kingfa Sci & Tech, Gree, Midea, Haier, Hisense, Daikin (Japan), Samsung (Korea), and Honeywell (USA).

In 2024, Dongyangguang's revenue reached 12.199 billion yuan, a year-on-year increase of 12.40%; in the first half of 2025, revenue grew by 18.48% year-on-year, with a net profit increase of 170.57%, indicating continuous business growth.

In recent years, as the company accelerates its expansion in emerging fields such as embodied intelligent robots, the demand for computing power has surged. The acquisition of ChinData is not only an inevitable choice in response to the AI wave but also a strategic opportunity to leverage its technical accumulation in materials and energy to enter the downstream market.

Dongyangguang covers material systems such as hydrofluoroether (HFE), perfluoropolyether (PFPE), and hydrofluoroolefin (HFO) in the field of immersion cooling liquids, and has the capability for research and large-scale production. These materials possess high insulation, non-flammability, and excellent thermal stability, which are key components for liquid-cooled data centers.

Currently, the major share of the global high-performance fluorinated cooling fluids is held by international giants such as 3M, Solvay, AGC, and Chemours. With 3M exiting the production of PFASs due to environmental regulation issues, Chinese fluorinated liquid companies have encountered significant development opportunities. Currently, domestic companies such as Zhongji Bango, Juhua Co., Yonghe Co., and Yongtai Technology have already established production capacities for fluorinated liquids, including hydrofluoroethers, perfluoropolyethers, and perfluoroolefins.

In addition, Dongyangguang owns clean energy assets in Shaoguan, Ulanqab, and Yichang, which can directly support the low-carbon operation of data centers. By 2025, the company, in collaboration with Shanghai Zhiyuan, Beiwuyuan, and Lingchu Intelligent, will establish Guanggu Dongzhi to develop embodied intelligent robotics. The first phase of the factory in Hubei has been put into production, and the second phase is in preparation. It currently has an annual production capacity of 300 robots, making it the first robot manufacturing base in Hubei capable of large-scale production. The intelligent robotics business inherently has a strong demand for high-density computing power, providing a stable "anchor customer" for the data center business.

(02) Liquid Cooling: The Core Value of M&A Cases

With the advancement of AI large models, the power consumption and heat flux density of computing chips continue to rise. For example, NVIDIA's core product, the GB200 super chip, in the GB200 NVL72 rack system, has a rack thermal design power of up to 130 to 140 kW. Traditional air cooling systems are increasingly unable to support this heat density, making liquid cooling, with its high heat transfer efficiency and low energy consumption, the inevitable choice for the new generation of data centers.

From vertical integration from materials to systems, the material and process accumulation of Dongyangguang in fluorinated cooling liquid and cold plate components, deeply integrated with Qinhuai Data's liquid-cooled data center operations, can provide a complete solution of "liquid cooling materials - components - systems - applications."

The liquid cooling plate components of the currently popular NVIDIA GB200 Grace Blackwell superchip are mainly led by AVC, Auras, Cooler Master, and Boyd. There is a significant change in the supplier system for the GB300, which is still dominated by Cooler Master, AVC, and Auras. However, due to the large production workload, Cooler Master collaborates with mainland manufacturers such as Invt and Chuanhuan for the contract manufacturing of the liquid cooling plates.

The application of liquid cooling technology can reduce the PUE value of data centers to 1.2 or even below, far surpassing air cooling modes. Under the "dual carbon" policy and the requirement that newly built data centers have a PUE not exceeding 1.3, liquid cooling is shifting from an "optional" solution to a "necessity." Dongyangguang's advantage lies in directly optimizing PUE through material innovation.

Dongyangguang’s robotics and AI application business requires large-scale computing power for training, while Chinadata’s liquid-cooled intelligent computing center can provide customized liquid-cooled cabinets and power distribution systems. This “internal absorption” model not only offers stable scenarios for new businesses, but also serves as a testing ground for the rapid iteration of liquid cooling technology.

(03) Market Background: The Inflection Point of Liquid Cooling

According to IDC data, the scale of the liquid-cooled server market in China reached $1.26 billion in the first half of 2024, with a year-on-year growth of 98.3%. It is expected that by 2029, the compound annual growth rate will reach 46.8%, with the market size exceeding $16 billion. In terms of technology routes, cold plate liquid cooling occupies more than 95% of the market share, while immersion liquid cooling and spray liquid cooling are being explored for breakthroughs. It can be foreseen that future innovations in liquid cooling materials and components (such as coolant stability, thermal conductivity of interface materials, and corrosion inhibitors) will become the core competitive points in the industry.

The 28 billion yuan acquisition not only made Dongyangguang the focus of China's data center industry but also established a new paradigm in the liquid cooling sector. For the chemical new materials industry, this case reveals a potential path for materials companies to transition to the digital economy. For Dongyangguang, this capital operation is a profound strategic reshaping. Whether it can truly complete the "liquid cooling materials—intelligent computing center—AI application" loop in the future is worthy of continued attention from the industry.

Liquid cooling is not just a heat dissipation technology, but also a key support empowered by new materials in the era of computing power. From technological collaboration to industrial synergy—we need a platform for collective reflection. The challenges of fully integrated liquid cooling are not merely the accumulation of technical details, but a true test of system engineering coordination. From chips to cold plates, from distributed pumps to heat exchangers, every link in the chain affects the whole system. The real implementation of liquid cooling is not simply the iteration of a certain type of product, but rather a fundamental reshaping of data center design logic.