CATL participates, another state-owned energy storage enterprise established
Enterprise search data show that on February 21, China Electrical Equipment Group Energy Storage Technology Co., Ltd. was formally established, with a registered capital of 2 billion yuan, located in Shanghai Jing'an District, Jiangchang Road, the legal representative for Ji Kan. Its main business covers energy storage technology services, battery manufacturing, charging pile sales, transmission and distribution business.
The company has eight shareholders, namely, China Electrical Equipment Group, China Electrical Equipment Group Science and Technology Research Institute Co., Ltd, Pinggao Group, Shandong Electrician and Electrician Group, Xuji Group, CATL New Energy Industry Investment Co., Ltd, Soyo Electric, and CLP Power Borealis (which is held by the private equity fund, Beijing Hongzhou Investment), and none of their shareholdings have been disclosed to the public.
Earlier on January 16, China Electrical Equipment Group Limited (hereinafter referred to as "China Electrical Equipment") an inconspicuous recruitment announcement has triggered vibrations in the energy storage industry.
On the same day, the company's official microblogging for the first time open recruitment of China Electrical Equipment Group Energy Storage Technology Company Limited (Preparation) Vice President, the demand for 1-2, the prototype of this energy storage giant thus exposed in front of the public.
It is reported that China Electrical Equipment Group Energy Storage Technology Co., Ltd. will be Xuji Group's electric energy storage, Pinggao Group's energy storage science and technology, Shandong Electrician Electric's Electrician Times as the basis for the reorganization of the establishment of the company, to be registered in Shanghai. The core business of the energy storage company includes energy storage technology research and development, energy storage equipment research and development, project EPC, etc., is committed to research and development of energy storage all technology routes and the whole industry chain of efficient new energy storage technology and equipment.
The above recruitment announcement will China Electrical Equipment's ambition is revealed - aiming at the industry's first, "to build the central energy storage business head of the enterprise as the goal", "to drive the energy storage industry toward the world-class level! thereby becoming the cross-border energy storage strength of the strongest state-owned enterprises players.
In fact, China's electrical equipment was established less than 3 years ago, it is exactly how to line to the pinnacle of the energy storage industry?
Backed by an electrical juggernaut
Energy storage is naturally indistinguishable from power grids and power equipment.
And on September 25, 2021, an electrical juggernaut shocked the debut of China Electric Equipment was incorporated in Shanghai, destined to start the sailing and breaking waves in the field of energy storage.
The company is approved by the State Council, by the China Western Electricity Group Co., Ltd. and the State Grid Corporation's former subordinate Pinggao Group Co., Ltd. and Xuji Group Co., Ltd. as well as Shandong Electricity Group Co.
The above four groups are electrical equipment leaders: China Xidian in the transformer and high-voltage switches and other power transmission and distribution areas with the world's leading level; Pinggao Electric for the country's largest AC and DC switch manufacturer; Xuji Electric is the domestic converter valves and relay protection, the leading intelligent substation; Shandong Electric Electric has a transformer, towers and wires and cables of three core products, ranked in the forefront of the industry. With the four kingpins united, they are invincible.
Since 2022, Xidian Group, Pinggao Group and Xuji Group have transferred all the shares of China Xidian, Pinggao Electric and Xuji Electric held by them respectively to China Electric Equipment without compensation. As at the end of June 2023, China Electric Equipment directly held 51.87%, 41.42% and 38.31% of the shares of Xidian, Pinggao Electric and Xuji Electric, respectively. As a result, China Electric Equipment owns five listed companies, including China Xidian, Xuji Electric, Pinggao Electric, Baoguang Stock and Xigao institute .
Strong combination of Chinese electrical equipment, since then among the domestic electrical equipment hegemony, in the high-voltage, ultra-high voltage and ultra-high voltage and other high-end electrical equipment, such as the establishment of barriers to dominance. Its main business is power transmission and distribution equipment, as well as power system solutions, power project leasing, power engineering general contracting and other integrated services.
As of December 31, 2022, China Electrical Equipment had total assets of RMB 141.685 billion and net assets of RMB 64.963 billion, with operating revenue of RMB 80.175 billion and net profit of RMB 2.627 billion in 2022.
China Electrical Equipment credit rating report shows that its core customers are State Grid Corporation and South China Network Corporation, and the combined sales to the two account for about 40% in 2022.
After the birth of China Electrical Equipment, in addition to continuing to consolidate the traditional business advantages of electrical equipment, it also focuses on expanding comprehensive energy services, energy storage, rail transportation, industrial automation and other strategic emerging industries, and continues to enhance the diversified layout.
Although plowing into the power grid system for many years, but China Electrical Equipment is not without anxiety. The credit rating report of China Chengxin International commented that the electrical equipment industry is also facing the pressure of product homogenization, and under the single project bidding and sales model, the industry price competition is fierce, especially in recent years, the gross margin fluctuates at a low level, and the profit margin is shrinking.
Undoubtedly, the fast-growing energy storage industry has become a key point of breakthrough for China Electric Equipment's business growth.
Overall, China Electric Equipment's end customers cover power grid enterprises, energy, engineering and construction of central state-owned enterprises, etc., benefiting from the deep customer base, the company was able to quickly win orders in the new energy, energy storage business.
China Electric Equipment disclosed financial data, the company's first half of 2023 charging and energy storage business revenue of 5.215 billion yuan, 2020-2022 were 1.774 billion yuan, 2.088 billion yuan, 6.701 billion yuan, a total of 15.778 billion yuan, revenue from 2.26% steadily increased to the first half of 2023, 6.22%.
As of the first half of 2023, China Electric Equipment has built and put into operation more than 130 energy storage power stations, ranking among the industry leaders in terms of market share, energy storage capacity and storage power, and its energy storage products and services are spread both at home and abroad. More than 9GWh of energy storage projects are under construction and in operation, which is one of the largest energy storage service providers in the world and can be called the invisible master.
In fact, China's electrical equipment under the four major industrial groups are eyeing the energy storage business, Pinggao Group, Xuji Group, Shandong Electric have set up energy storage subsidiaries.
Although not into the reorganization of the energy storage company's shareholders, China Western Electric Group also from time to time rumors of heavy action.
In recent years, China Xidian Group has continued to expand its new track, and developed a number of key technologies and major equipment to support the construction of a new type of power system, including the successful independent development of the first 1500V energy storage converter-booster integrated machine, the first string-type energy storage integrated cabinet and so on.
Since 2023, its Xidian New Energy and Xidian Intelligent Energy have had a number of projects connected to the grid and put into operation across the country, including Xidian New Energy's first energy storage power plant project - a 100MW agricultural and solar complementary project in Qidong County, Hunan.
It is worth noting that from January to June 2023, Ningde Times and Jiangsu Dechun Power became Top 10 suppliers of China Electrical Equipment, and the amount of electric core/battery system purchased by China Electrical Equipment from these two companies amounted to 1.081 billion yuan, accounting for 3.29%; 482 million yuan, accounting for 1.47%. This is also the first time that China Electric Equipment disclosed the procurement of electric core.
In the 2024 New Year's greeting, Bai Zhongquan, party secretary and chairman of the board of directors of China Electric Equipment, said, "Actively support the construction of new power systems, increase the investment in new energy, energy storage, integrated energy, charging and switching, and other emerging industries, and deepen and expand the layout of strategic emerging industries."
This further releases the signal that the company will increase the energy storage business.