Feilong Co.'s revenue and net profit are expected to decline in 2025, despite supplying leading liquid cooling companies like Envicool! The stock price has increased by over 90% in the past year.

Source: Times Weekly
Authors: Song Yiting, Han Xun

On the evening of March 19, veteran auto parts manufacturer Feilong Co., Ltd. (002536.SZ) released its annual report. The company achieved revenue of 4.545 billion yuan in 2025, a 3.77% decrease year-over-year; net profit attributable to shareholders was 317 million yuan, down 3.85% year-over-year.

Feilong stated that in 2025, while consolidating its core position in the automotive sector, it will fully leverage its early-mover advantage in liquid and thermal management technology to vigorously expand into high-growth frontier markets such as server liquid cooling and data center (IDC) liquid cooling. The company has already established close collaborations with over 40 industry-leading companies including InvenSense, Vite, and Cooler Master.

Notably, Feilong’s net profit in the fourth quarter of 2025 declined by 52.07% year-over-year.

Regarding the significant drop in net profit in the fourth quarter, Times Weekly reporters contacted Feilong’s securities department. An employee stated on March 20: “You need to ask the finance staff about that.” As of press time, no further response has been received.

Focusing on the hot liquid cooling track, Feilong’s stock price has surged nearly a year. As of the close on March 19, the stock had increased by 93.09% over the past year.

Image source: TuChong

Fourth-quarter net profit down 52.07% YoY

Feilong is a leading enterprise in China’s thermal management field. In 2025, both revenue and net profit attributable to shareholders declined.

Quarterly analysis shows that in Q4, Feilong experienced “revenue growth but profit decline.” Revenue for the quarter was 1.308 billion yuan, up approximately 6.5% year-over-year, but net profit attributable to shareholders was only 30.18 million yuan, a decrease of 52.07% YoY.

Product-wise, Feilong’s main offerings fall into three categories: critical engine thermal management components, engine energy-saving and emission reduction parts, and components for new energy vehicles and civilian liquid cooling. In 2025, these three product lines achieved revenues of 1.662 billion yuan, 2.107 billion yuan, and 673 million yuan, respectively, with respective YoY changes of -10.47%, -6.17%, and +28.10%. The revenue share from new energy vehicle and civilian liquid cooling components increased from 11.13% in 2024 to 14.81%.

An employee from Feilong’s securities department told Times Weekly: “Engine thermal management still accounts for the majority of revenue, but we are focusing more on developing the new energy sector in the future.”

Feilong stated that the company is gradually transforming from a “supplier of automotive thermal management components” to a “provider of multi-scenario, multi-field thermal management solutions.”

Regarding overseas expansion, in June 2025, Feilong’s foreign manufacturing base, Longtai, completed trial production. Once fully operational, it is expected to have a designed capacity of 1.5 million impellers, 1 million exhaust manifolds, 500,000 mechanical water pumps, and 1 million electronic water pumps annually. However, the proportion of foreign sales revenue in 2025 decreased from about 60% in 2024 to approximately 55%.

An employee from Feilong’s securities department said: “This is because the revenue from our new energy vehicle and civilian liquid cooling sectors grew rapidly in 2025, and these businesses are mainly domestic.”

Supplying major liquid cooling giants

In 2025, Feilong accelerated its layout in the liquid cooling field, focusing on electronic pumps and temperature control valves, which are widely used in server liquid cooling, data center (IDC) liquid cooling, artificial intelligence, charging stations, robotics, and other cutting-edge areas.

In response to the data center thermal management challenges brought by the explosion of AI computing power, server liquid cooling technology has become a critical infrastructure in high-density computing scenarios, with broad market prospects. The annual report shows that Feilong has already established close cooperation with over 40 industry-leading companies including InvenSense, Vite, and Cooler Master, with some customer projects already in mass production.

According to Feilong’s annual report, domestically, the company has deeply integrated with key clients such as InvenSense, Shenling Environment, and Gulang Co., Ltd., penetrating HP project client systems; internationally, with the help of partners, it has secured projects like N, W, and G, successfully entering the supply chain of global tech giants and their core suppliers.

Regarding specific project clients and related business details, the employee said: “It’s not convenient to disclose.”

Feilong indicated that its server and data center liquid cooling products are entering a phased mass supply stage.

China Galaxy Securities’ research report on March 19 noted that NVIDIA’s latest VeraRubin full-stack AI computing platform adopts 100% liquid cooling design, with cable-free trays and 45°C hot water cooling. This reduces compression steps in mechanical cooling, significantly improving energy efficiency, lowering data center cooling costs, and freeing more power for computing.

In the personal computer (PC) sector, Feilong has developed a compact liquid cooling pump tailored to PC product features, balancing low power consumption with high heat dissipation efficiency to effectively address thermal challenges under high loads. Currently, this small liquid cooling pump has entered the terminal customer interface stage, with some projects progressing steadily.

Feilong’s annual report shows that in 2025, the company completed R&D on the HP22K large-scale liquid cooling circulation pump, which features ultra-small size and maintenance-free lifespan, entering the international data center liquid cooling market. Meanwhile, development of a certain thermal management domain controller is also underway.

Feilong also acknowledged that in the new energy thermal management field, continuous investment in technological R&D, faster product iteration, and strict cost control are necessary. The company faces dual challenges of technological upgrading and cost management. It is actively developing new liquid cooling products, expanding into domestic and international markets, broadening the industry chain, and upgrading from single products to integrated modules to reduce risks associated with reliance on individual products or fields.