KAORI HEAT TREATMENT Business Summary

Kaori Heat Treatment Ltd. (8996.TW) operates a diversified industrial manufacturing model, generating revenue primarily through the production and global sale of Brazed Plate Heat Exchangers (BPHE), hydrogen fuel cell components, and specialized metal heat treatment services. The company is strategically segmented into Heat Exchange Products, Thermal Products, and a newly established subsidiary, Kaori Thermal Technology, which was spun off in late 2024 to focus exclusively on liquid cooling solutions for AI data centers, including coolant distribution units (CDUs) and manifolds. Kaori maintains a dominant position in the green energy and thermal management sectors by leveraging its proprietary vacuum brazing technology to serve the HVAC, semiconductor, and renewable energy industries. In the competitive landscape, Kaori competes directly with global leaders like Alfa Laval and Kelvion in the BPHE market, while locally contending with industrial peers such as Kinik Company, Hiwin Technologies, and Syntec Technology, positioning itself as a high-growth specialist in the AI-driven thermal transition. The leadership team is currently led by Chairman and CEO Dr. Allen C.H. Wu, who was appointed in early 2025 and brings a Ph.D. in Materials Science and Engineering from the University of Illinois, along with extensive executive experience from Motech Industries. He is supported by General Manager Wu Chih-Hsyong, who oversees the core operational divisions, and Vice President Wang Hsin-Wu, who serves as the primary corporate spokesperson. The company’s strategic direction is further influenced by Honorary Chairman and founder Han Hsien-Son, whose technical pedigree in metallurgy established the firm's foundational brazing expertise. Notable institutional backing includes Norges Bank (via Citibank Taiwan) and significant insider ownership by the Han and Wu families, ensuring a stable governance structure as the company pivots toward high-margin AI cooling and hydrogen infrastructure.