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TAIPEI, November 12, 2024 – Kaori Heat Treatment Co. Ltd. (8996. TW) ("Kaori" or the "Company"), a leading provider of brazed plate heat exchangers and hydrogen technologies, today announces that the data center cooling solution business will be assigned to its new wholly-owned subsidiary, Kaori Thermal Technology Co., Ltd. ("Kaori Thermal"). This strategic move is designed to enhance operational flexibility, further strengthen collaboration within the group, and capitalize on growth opportunities in the AI data center cooling industry.

This strategic restructuring does not affect the interest of Kaori shareholders because Kaori will receive all the outstanding shares of Kaori Thermal as considerations for the value of the assigned business. The split plan was approved in a shareholders' meeting held on November 12.

The split will further streamline operations between the parent and subsidiary companies, fostering synergies. Kaori Thermal will focus on the Information and Communication Technology (ICT) sector, developing liquid cooling systems for data centers and providing OEM/ODM design and manufacturing services. Meanwhile, Kaori, the parent company, will continue to expand its market presence in brazed plate heat exchangers, grow its fuel cell business, and accelerate its efforts in hydrogen energy, Power-to-X, and other new energy ventures.

Since 2015, the Thermal Division of Kaori has entered the server liquid cooling technology sector, accumulating extensive experience in R&D, product manufacturing, and customer service. The division has developed the expertise in designing, co-developing, and mass-producing liquid cooling systems tailored to client specifications. To date, Kaori has become a trusted partner to global leaders in the AI server industry. As the rise of generative AI drives new applications, the demand for data center computing continues to soar, further increasing the need for advanced liquid cooling solutions. The formation of Kaori Thermal will strengthen its core competitiveness by leveraging professional, innovative, flexible, and efficient approaches, expediting its integration into the ICT industry ecosystem. Kaori Thermal is committed to delivering exceptional service to its customers while capitalizing on growth opportunities in the AI cooling sector.

Kaori is a global leader in brazed plate heat exchangers, with large vacuum brazing capacity in Asia. Kaori's brazed plate heat exchangers are key components of Kaori Thermal’s liquid cooling systems; the vacuum brazing capacity may support certain processes in Kaori Thermal’s coolant distribution manifolds (CDM), enhancing utilization and production efficiency. This synergy enables both the parent company and its subsidiary to collaborate closely while focusing on their respective industries, driving long-term growth.

We expect that this organizational change will accelerate the growth of the Company's various businesses and attract more talents to join Kaori group. The Company has full confidence in the future development of Kaori Thermal and is committed to working alongside all employees to achieve more successes and create greater value for all shareholders.

Contact

Investor
Gilbert Wu, VP, Finance & Investment Division
+886.34527005#325   
gilbert_wu@kaori.com.tw

Media
Sunny Chen, PR Manager
+886.34527005#213
pr@kaori.com.tw