IntelliTech (301399.SZ), a Chinese supplier of high-efficiency heat exchangers, reported first-half 2026 revenue of 243 million yuan (approximately $36.1 million), up 20.51% from a year earlier, but swung to a net loss attributable to shareholders of 4.28 million yuan (approximately $630,000), a 125.93% year-on-year decline. Net loss excluding non-recurring items widened to 7.57 million yuan (approximately $1.1 million), down 161.14%, while net cash flow from operating activities was negative 12.22 million yuan (approximately negative $1.8 million), down 21.17%. Basic loss per share was 0.02 yuan negative, and total assets stood at 1.52 billion yuan (approximately $225.8 million) at period-end. The company said revenue growth was supported by continued national policy backing for heat pump technology and rising demand for liquid-cooling products as artificial intelligence and cloud computing drove data center construction. IntelliTech said it has built a relatively stable customer base with major Chinese home appliance and HVAC companies including Haier, Midea and Gree, and had 175 patents at the end of the period, including 27 invention patents. Profitability, however, was hit by intensifying competition, raw material price fluctuations and sustained pricing pressure, particularly in mature heat exchanger products where large downstream customers have strong bargaining power and new entrants have pushed down unit prices. IntelliTech is positioned in liquid-cooling radiators, a fast-growing segment as higher server power density strains traditional air-cooling systems, but the interim report did not separately disclose the segment’s revenue contribution or gross margin. That leaves open whether growth in newer liquid-cooling products can offset margin erosion in its traditional business in the second half.