Jiuzhou Group: "Wind and solar new energy + intelligent equipment" two-wheel drive, achieving revenue of 1.213 billion yuan

On the evening of April 19, Harbin Jiuzhou Group Co., Ltd. (stock code: 300040. SZ, stock abbreviation: Jiuzhou Group) released its 2023 annual report. During the reporting period, the company achieved operating income of 1.213 billion yuan and net profit attributable to shareholders of listed companies of 94.2149 million yuan.

In 2023, in the face of greater market pressure in the electrical equipment market, Jiuzhou Group effectively implemented the annual business principles, strengthened the incentive mechanism, and realized the stable development of the intelligent manufacturing sector;

It is worth mentioning that in order to improve shareholder returns, Jiuzhou Group continues to increase the proportion of cash dividends, and intends to distribute cash dividends of 0.7 yuan (tax included) to all shareholders for every 10 shares, with a total cash distribution of 41.1383 million yuan.

Leading companies in intelligent electrical equipment will benefit from the growth of the industry

Jiuzhou Group's main business covers the whole industrial chain of "intelligent power distribution equipment, new energy, and comprehensive smart energy", and has formed a dual-engine business pattern of "wind and solar new energy + intelligent equipment".

Among them, intelligent electrical equipment is the company's traditional main business, mainly involved in the field of power transmission and distribution, connecting power generation enterprises and terminal consumption. The company has accumulated 30 years of industry experience in this field, and has formed a relatively complete intelligent equipment manufacturing industry chain, which can provide technology, equipment and services and overall solutions for the fixed asset investment and daily operation of energy and power, rail transit, municipal, infrastructure, petrochemical and other industries and customers.

In 2023, the company's intelligent assembly and manufacturing business will achieve operating income of 404 million yuan, accounting for 33.31% of business revenue. On the one hand, the company enriches its product layout through independent innovation to meet the needs of customers for intelligence and multiple scenarios in two ways: on the other hand, it continues to promote the integration of the industrial chain, and digs deep into the opportunities for the coordinated development of the industrial chain based on the needs of its own and partner power stations, and strives to transform from high investment to high growth.

At present, Jiuzhou Group has Harbin Songbei District Zero Carbon Industrial Park, Harbin Nangang District Haping Road Production Base, Shenyang Haocheng Production Base, the company's products cover all kinds of electric switches and substation equipment below 35kV, high-frequency power supply and high-voltage inverter, high and low voltage reactive power compensation, new energy converters and inverters, lead-carbon energy storage batteries, solid heat storage electric boilers, AC and DC electric vehicle charging piles, etc., the product system is sound, covering a wide range of fields, and has technical advantages and core competitiveness in the industry.

Debang Securities Research Report pointed out that according to the "14th Five-Year Plan" of the State Grid and China Southern Power Grid, the two networks are expected to invest nearly 3 trillion yuan. Among them, about 50% of the 670 billion investment of China Southern Power Grid will be concentrated in the distribution network end, which will be used for the construction of smart distribution grids, and accelerate the construction of digital intelligence and energy storage of power grids. With the increase in demand for UHV and new infrastructure, the pattern of long-distance, large-range, high-capacity and high-voltage is expected to further drive the demand for high-voltage electrical equipment. As one of the leading enterprises in the field of power transmission and distribution manufacturing, Jiuzhou Group is expected to benefit deeply.

The installed capacity of new energy has increased steadily, and the integrated energy management business has achieved breakthroughs

In recent years, with the increasing global attention to environmental protection and sustainable development, the pace of green transformation of the energy structure is accelerating. In this process of transformation, green energy industries such as photovoltaics, wind power, and integrated energy are showing strong growth momentum.

In line with the trend of energy transition, Jiuzhou Group has vigorously developed new energy business and made remarkable progress in the fields of photovoltaic, wind power, and integrated smart energy. On the one hand, the company actively promotes the development of new energy projects, and during the reporting period, a number of new approvals were made, such as the 49.5MW wind power project of Jiuzhou Zero Carbon Industrial Park, the 50MW wind power project of Daowai Jiuzhou No. 2, and the 50MW wind power project of Jiuzhou No. 3 in Binxian County, and reserved a number of high-quality new energy projects. Asia New Energy (Baoying) Wind Power Co., Ltd. 100MW wind power project, etc.

In 2023, the company's new energy power generation business will achieve operating income of 425 million yuan. As of the end of 2023, the company has nearly 1,000MW of grid-connected new energy power stations with an installed capacity, and nearly 2,000MW of equity capacity of new energy power stations under construction and development, and a number of projects have now entered the substantial construction stage, which is expected to bring continuous and stable revenue and cash flow to the company after grid connection.

In addition to the new energy business, Jiuzhou Group continued to consolidate the comprehensive energy management business, achieving an operating income of 299 million yuan. During the reporting period, the company actively deployed distributed wind power heating, energy storage, industrial steam and other businesses. Among them, the distributed wind power projects of Jiuzhou Zero Carbon Industrial Park, Daowai Jiuzhou No. 2, Binxian Jiuzhou No. 3 and Binxian Jiuzhou No. 4 have been successfully approved, Songbei Jiuzhou No. 1, Qi Meilis District, Qi Tiefeng District and other distributed wind power projects have entered the early development stage, and two units of Fufu Jiuzhou Environment's 2*40MW biomass cogeneration project have achieved full-capacity grid-connected power generation. The annual report shows that the company's comprehensive smart energy projects in hand are sufficient, and with the commissioning of the project, the business in this sector is expected to significantly increase the company's profits and become an important source of performance growth for the company in the future.

Recently, the National Energy Administration and other three departments jointly issued the "Notice on Organizing and Carrying out the "Wind Control Action in Thousands of Towns and Villages", proposing that the village will be the basic unit and strive to build a number of wind power projects that can be developed and utilized locally and nearby. Relevant experts in the industry said that the issuance of the "Notice" has a very obvious driving effect on the development of integrated energy management business, and as the mainland continues to increase its support for clean energy, distributed wind power will usher in a broader space for development.

In addition, in order to promote clean heating in winter and reduce air pollution, the company has carried out new energy clean heating demonstration projects in Harbin, Qiqihar, Jiamusi and other places in Heilongjiang. Electric heat storage boilers are driven by wind power generation to replace coal-fired small boilers for heating, which effectively avoids the air pollution caused by coal-fired heating in winter, and further solves the problem of clean energy consumption such as wind power.

In the face of 2024, Jiuzhou Group said that the company will focus on the new energy industry chain, promote the construction of new energy projects in an orderly manner, and carry out asset-light operation and maintenance, engineering construction, power station holding and operation and other businesses. In addition, the company takes new quality productivity as the leading ideology, increases investment in digital marketing, intelligent manufacturing, green manufacturing, etc., deeply empowers the company's intelligent electrical equipment, improves the level of product intelligence, and realizes the expansion of product categories and the increase of downstream orders.