Ann: Introduction to DUG webinar and investor briefing, page-34

One of our takeaways from DUG’s 101 yesterday was the commercialising of DUG Cool – DUG’s industrial liquid cooling solution for HPCs. To this end, DUG has engaged distribution partners (data centre construction consultants) to assist in the commercialisation. We also note that from our recent meeting with SKS, data centres for the past year have been trending away from air cooling towards liquid cooling. Morgan Stanley’s China tech hardware team has broken down the economics for liquid cooling v air cooling, saving 10-15% capex and 30-40% opex on annualised basis, as below. We have not accounted for the commercialisation of DUG Cool in our assumptions, and believe it provides upside optionality, particularly given the capital-light commercialisation/distribution model and would not distract mgmt’s time from core business.