Recently, over 140 domestic and overseas institutions conducted intensive research on Feilong Auto Components, with the focus almost entirely on liquid cooling. During the research, the company disclosed that as of August 20, its backlog of liquid cooling pumps exceeded 60,000 units. It has been just over a year since Feilong Auto Components expanded from automotive water pumps into AI data center liquid cooling. What the market really wants to figure out is: how is this second growth curve developing, and at what stage is the electronic canned motor pump track it operates in?
01. Financial Statement Divergence: Profits are Contracting, but the Highlights Lie Elsewhere
Feilong Auto Components is a leading domestic automotive water pump manufacturer, having deeply engaged in thermal management for over 70 years; its profit decline is hardly new news. In 2024, the company's revenue and net profit attributable to shareholders still grew by 15.34% and 25.92%, respectively. However, starting in 2025, as the ICE vehicle industry chain saw a downturn in prosperity, both indicators turned negative. In the first half of 2026, the revenue side barely returned to growth, while the profit side accelerated its contraction. The company attributed this in its semi-annual report to exchange losses, sustained high raw material prices, and intensified competition in the automotive industry, with the gross profit margin dropping by about 5 percentage points year-on-year. For a company whose main business is engine thermal management, the pressure behind this stems from the overall downturn in the ICE vehicle industry chain, a result that was within expectations.
Performance of Feilong Auto Components from 2024 to the First Half of 2026
Data source: Feilong Auto Components financial reports, collected and organized by MIR
The truly noteworthy changes lie in the structure of the financial statements. In the first half of 2026, the company's NEV and non-automotive components achieved an operating revenue of CNY 380 million, a year-on-year increase of 67.72%, accounting for about 17% of total revenue; the revenue from other traditional automotive businesses contracted slightly year-on-year. The company's revenue side has already shown two diverging trends: downward in the main engine thermal management business, and upward in NEV and non-automotive sectors. Liquid cooling is precisely the fastest-growing and most market-watched segment within the non-automotive sector.
02. Underlying New Business: Small Revenue Share, but Orders Leading the Way
Feilong Auto Components' liquid cooling business is undertaken by Honye Technology, a holding subsidiary established in July 2025. Its products are divided into four platforms—μ, S, M, and L—based on power, adaptable to various CDU (Coolant Distribution Unit) architectures ranging from node-level, in-rack, to row-level. From the company's perspective, the current financial scale of liquid cooling is not yet large. During the research, the company frankly stated that the proportion of liquid cooling revenue is relatively low, and its impact on operating performance is still minimal.
However, a few figures are sufficient to illustrate its speed. In the first half of 2026, the company's NEV and non-automotive business revenue grew by 67.72% year-on-year; research disclosed in August revealed that the backlog of liquid cooling pumps exceeded 60,000 units in total, with nearly 10,000 units for the high-power L platform. Some projects are about to enter mass delivery, with orders executed on a rolling basis over a 3- to 5-month cycle. The company expects that in 2026, liquid cooling-related revenue will account for over 30% of NEV thermal management revenue and more than 5% of total revenue—liquid cooling is moving from the periphery of the financial statements into a visible volume expansion zone.
Supporting this volume expansion is the depth of its customer and project reserves. As of the end of July 2026, the company has established contact with over 80 customers and is advancing more than 120 projects. The customer list covers leading liquid cooling integrators such as Envicool, Delta, and Cooler Master, as well as end-user manufacturers like ByteDance, Alibaba, Tencent, and China Mobile. Overseas and Japanese customer projects are also in progress. Among them, leading integrators such as Envicool, Delta, Schneider, Tongfei Shares, and Shenling Environment are themselves important participants in the liquid cooling supply chains of NVIDIA and Google. This customer list is equivalent to a ticket to the world's leading computing power manufacturers.
Position of Feilong Auto Components' Major Liquid Cooling Customers in the NVIDIA/Google Supply Chain
Information source: MIR, collected and organized
Interpreting the significance of this chain requires looking at two links: one is that Feilong's direct supply targets are integrators rather than chip manufacturers—currently, there has been no company announcement of direct supply to NVIDIA or Google; the other is that the downstream of these integrators is already connected to global leading computing power manufacturers—Delta's 1.5MW liquid cooling CDU has entered NVIDIA's RVL/AVL list, and Envicool's Coolinside liquid cooling solution and Schneider's liquid cooling data center solution have entered Google's supply chain. In other words, Feilong's backlog of over 60,000 units is embedded in a supply chain route leading to North America. Once customers scale up, the demand will be transmitted to the pump segment through the integrators; however, the realization pace of this chain depends on integrator orders, not directly on Feilong's relationship with end-users.
During the research, Feilong Auto Components claimed to have a first-mover advantage: the customer certification cycle for electronic canned motor pumps is about 1 to 2 years, overseas pump companies have not yet entered on a large scale, and domestic companies have not been in the game for long, allowing the company to deeply intervene in customers' early-stage design. Currently, the high-power CDU pump market is dominated by foreign companies such as Denmark's Grundfos and Germany's Wilo. Domestic manufacturers are entering the substitution window leveraging their advantages in price and delivery cycle—Feilong Auto Components is among the first to form a relatively full product spectrum and secure large-scale orders.
Beyond liquid cooling, the company is also extending its pump technology to backup power supplies for AI data centers (ultra-high-power mechanical pumps over 90 liters, already connected with customers such as Cummins and Doosan) and micro-pumps for edge AI PCs. The track for the second growth curve is widening.
03. Electronic Canned Motor Pump: The True Fulcrum for New Business Prospects
First, let's look at the position of the pump in the entire liquid cooling system. A data center liquid cooling system can be divided into two sections: the external cold source is responsible for exhausting heat outdoors, and the heat exchange circuit inside the cabinet is responsible for taking away the heat from the chips. About 70% of the value is concentrated in this internal circuit. The CDU (Coolant Distribution Unit) is the hub of this circuit, which can be understood as a heat exchange station—one end connects to the server cold plate, and the other end connects to the external cold source. Through built-in heat exchangers, circulation pumps, valves, sensors, and control systems, it delivers the coolant to where heat dissipation is needed and regulates flow and temperature. The value of the CDU itself accounts for about 25% of the internal circuit.
In the CDU, the pump is the only component that keeps the coolant flowing: whether the liquid can circulate and whether the flow rate is sufficient entirely depend on the pressure provided by the pump. Industry estimates show that the pump accounts for about 35% of the CDU's value, making it the single most valuable component in the CDU; once the pump stops, the entire cooling cycle is interrupted. This is why discussing liquid cooling starts with discussing the pump.
Data source: NVIDIA, CoolIT, MIR
The status of the pump in the CDU determines its technological evolution direction. Data centers have zero tolerance for leaks, making pump reliability the top priority; the drastic fluctuations in computing power loads also require the pump to be capable of dynamic speed regulation, where efficiency and response speed directly affect the PUE. Consequently, pump types have evolved along the path of mechanical pumps, canned motor pumps, and electronic canned motor pumps. The essence of the trade-off is the balance between reliability and adjustability: mechanical seal pumps were the first to give way in high-reliability CDUs and cooling circuits due to leakage risks, but they are not eliminated in all scenarios; canned motor pumps solve leakage risks with static seals, becoming the mainstream for existing installations; electronic canned motor pumps, combined with electronic control for speed regulation, are becoming the mainstream choice for new projects.
Information source: MIR, collected and organized
The substitution of electronic canned motor pumps is approaching an explosive node, driven by three aspects.
First, liquid leakage is the primary risk in the scaling of AI liquid cooling. Once a leak occurs in a cluster, servers and optical modules will instantly short-circuit and be destroyed, with losses counted in tens of millions of CNY. Therefore, zero leakage has become the first threshold for leading computing power manufacturers to screen CDU fluid components. Electronic canned motor pumps have no mechanical seals and are leak-free throughout their entire lifecycle, naturally crossing this threshold.
Second, pumps are beginning to be co-designed with the power supply architecture. The new generation of electronic canned motor pumps is compatible with both 380V AC and 800V DC power supplies. They can operate directly when connected to the 800V high-voltage busbar in the machine room, eliminating the need for intermediate frequency conversion and power conversion equipment—one less conversion link means one less loss and failure risk. NVIDIA's next-generation 800V HVDC architecture CDU is adopting high-voltage DC electronic canned motor pumps for the first time, and has listed water pumps separately in its official computing power supply chain map; Google's new generation 2MW high-power CDU has also confirmed its adoption. The choice of leading platforms is equivalent to writing electronic canned motor pumps into the default configuration of next-generation CDUs.
Third, the power ceiling has been broken, and electronic canned motor pumps are entering the high-power segment. Liquid cooling pumps are classified by power. Rack-mounted CDUs only need small pumps ranging from hundreds of watts to 2kW, while cabinet-type and centralized CDUs require large pumps over 10kW—a segment that used to be the territory of centrifugal pumps. Today, electronic canned motor pumps are already being delivered in the high-power segment—the 37kW water pumps reflected in Feilong's liquid cooling pump orders belong to the high-power segment above 10kW. When leak-free electronic canned motor pumps can also cover high-power demands, the concerns of CDU manufacturers are eliminated accordingly, and orders begin to scale up.
It should be noted that the electronic canned motor pump track is not exclusively enjoyed by one company. Domestic pump companies such as Jianke and Jiangsu Leili are also advancing their layouts, and competition will intensify as the market scale expands.
Final Thoughts
Feilong Auto Components' liquid cooling revenue scale is still small. In a year when net profit attributable to shareholders dropped by 64% year-on-year, it cannot offset the profit fluctuations of its main business. The market's attention to the company stems more from volume expansion expectations; between orders and revenue, there are still mass delivery, capacity ramp-up, and customer certification pace. Any link falling short of expectations will delay the realization.