TBEA has invested nearly 14 billion yuan to expand new energy projects, and has spent 5.1 billion yuan on research and development in five years to help industrial transformation and upgrading

Yangtze River Business Daily News ● Yangtze River Business Daily reporter Jiang Chuya

In order to seize market opportunities and accelerate the development of wind resources, on June 27, TBEA, the "transformer leader" (600089. SH) announced that the holding company Tongchang Company plans to invest in the construction of a 1,000MW wind power and supporting energy storage project in Qiman Wind District, Bazhou, with a total investment of 3.557 billion yuan.

TBEA has been entering the new energy field since about 2000. After years of development, TBEA's new energy business has spread to more than 20 countries and regions. The new energy industry and engineering accounted for the highest proportion of its operating revenue, reaching 28.6% in 2023.

The Yangtze River Business Daily reporter noticed that since February last year, TBEA has invested nearly 14 billion yuan in more than a year to expand new energy projects. The construction of these new energy projects will help accelerate the development of wind and solar resources, have certain economic benefits, and have obvious coal-saving and carbon-reducing effects compared with coal-fired power plants of the same scale, which will reduce pollution to the surrounding environment and protect the ecological environment.

In recent years, TBEA has been actively carrying out industrial transformation and upgrading, expanding from three main businesses to four main businesses for coordinated development. In order to support industrial transformation and upgrading, TBEA spends a lot on research and development. Since 2019, the company's R&D expenses have increased year by year, and from 2019 to 2023, the total R&D expenditure in the five years will be 5.164 billion yuan.

Increase investment in the construction of new energy photovoltaic projects

TBEA has increased its investment in new energy photovoltaic projects.

On June 27, TBEA announced that the holding company Tongchang Company plans to invest in the construction of a 1,000MW wind power and supporting energy storage project in the Qiman Wind Area of Bazhou. The project will be constructed in two phases, of which the first phase will build a 200MW wind power and supporting energy storage project, and the second phase will build an 800MW wind power and supporting energy storage project. The total investment of the Qiman 1000MW wind storage project is 3.557 billion yuan, and the project is mainly constructed by Tongchang Company.

According to the feasibility study report, the average annual operating income of the project is 280 million yuan, and the average annual total profit is 91.5152 million yuan. TBEA said that the project has certain economic benefits, compared with coal-fired power plants of the same scale, it has obvious coal-saving and carbon-reducing effects, will reduce pollution to the surrounding environment, protect the ecological environment, and achieve coordinated development of resources, environment and economy, with obvious social and environmental effects.

Since last year, TBEA has continued to invest heavily in new energy photovoltaic projects. Since February last year, nearly 14 billion yuan has been invested in the expansion of new energy projects in a year.

On February 17, the company's holding company, New Energy Company, planned to invest no more than 4 billion yuan in the construction of the first household distributed photovoltaic project; On September 27, the holding company Zhangye Ganzhou Gante New Energy Co., Ltd. invested in the construction of Pingshan Lake 200MW wind storage project with a total investment of 1.083 billion yuan, on December 22, the company's holding company Chengde Fengsheng Photovoltaic Power Generation Co., Ltd. planned to invest in the construction of Shanggu 200MW agricultural photovoltaic storage project with a total investment of 1.087 billion yuan, and Sixian Mingyuan Guangsheng Wind Power Generation Co., Ltd. planned to invest in the construction of Sixian 100MW wind storage project with a total investment of 836 million yuan. On April 29, 2024, the holding company Tongyang New Energy Co., Ltd. invested in the construction of a 1GW wind storage project with a total investment of 3.39 billion yuan.

The four main businesses are developed in tandem

TBEA was originally mainly engaged in power transmission and transformation business, but with the continuous development of the industry, its industry has increased the new energy industry, energy industry and new material industry, forming a situation where the four main industries go hand in hand, and the four main industries are developing in tandem.

Among them, the new energy industry and engineering business is the largest business of TBEA, accounting for about 30%, which is mainly operated by the holding subsidiary Xinte Energy. Xinte Energy is mainly engaged in the production of upstream polysilicon and the construction and operation of downstream wind and solar power stations.

In terms of performance, from 2019 to 2022, the company's operating income increased from 37.03 billion yuan to 95.887 billion yuan, an increase of 1.59 times in three years, and its net profit increased from 2.018 billion yuan to 15.883 billion yuan, an increase of 6.87 times in three years.

TBEA said in its 2022 annual report that the company's business goal in 2023 is to plan to achieve operating income of 110 billion yuan, and operating costs to be controlled within 80 billion yuan.

In the 2023 annual report, the company achieved operating income of 98.123 billion yuan, operating profit of 16.909 billion yuan, total profit of 16.901 billion yuan, net profit of 14.093 billion yuan, and net profit attributable to shareholders of listed companies of 10.703 billion yuan, of which the revenue scale increased by 1.79%, breaking through the record high again.

In terms of business, the traditional transformer business and telecom cable business have always been TBEA's traditional advantageous businesses, accounting for 18.8% and 13.8% of the total revenue in 2023, respectively, and the operating income has increased significantly year-on-year.

In the photovoltaic sector, TBEA's new energy industry and engineering business achieved revenue of 28.052 billion yuan, a year-on-year decrease of 18.39%; The gross profit margin was 31.95%, a decrease of 25.87 percentage points. Among them, the output of polysilicon was 191,300 tons, the sales volume was 202,900 tons, and the production and sales rate reached 106.06%. At the same time, the installed capacity of wind energy and photovoltaic construction projects completed and recognized revenue is about 2.19GW, and the installed capacity of wind energy and photovoltaic operating power stations connected to the grid for power generation is about 3.41GW.

In terms of production capacity, TBEA's 200,000-ton high-end electronic-grade polysilicon green low-carbon circular economy phase I 100,000-ton project has been completed and put into operation, and by the end of 2023, the company's polysilicon production capacity will reach 300,000 tons/year, ranking first in the industry.

In terms of international business, the international power transmission and transformation project is executing unrecognized revenue contracts and outstanding contracts with a contract value of approximately US$5.3 billion. During the reporting period, the export contracts of power transmission and transformation, inverters and other products exceeded 700 million US dollars.

The high-quality development of TBEA's four major industries is inseparable from the empowerment of scientific and technological innovation. Since 2019, the company's R&D expenses have increased year by year, and in the five years from 2019 to 2023, the total R&D expenditure will be 5.11 billion yuan.

Recently, the 2023 National Science and Technology Award was announced in Beijing. TBEA Xinjiang New Energy Co., Ltd.'s "Key Technology and Industrialization of Digital Intelligent Testing and Control of Large-capacity Battery Energy Storage System" and Xinjiang Zhonghe Co., Ltd.'s "Development and Application of Key Common Technologies for Electromagnetic Control in the Preparation of Large Metal Blanks" both won the second prize of the National Science and Technology Progress Award.

Up to now, TBEA has won 2 special prizes, 4 first prizes and 5 second prizes of the National Science and Technology Progress Award. It has built 16 major national scientific and technological innovation platforms, carried out 168 industry-university-research projects, obtained 2,427 authorized patents, and participated in the formulation and revision of 369 standards. On June 15, 23 new products of TBEA have just successfully passed the national appraisal, of which 10 products have reached the international leading level and 13 new products have reached the international advanced level.

In 2024, the company will adhere to the general development tone of "seeking progress while maintaining stability, cash is king, stock optimization, and incremental guidance", and make every effort to ensure the realization of key work goals in 2024. In 2024, the company plans to achieve operating income of 100 billion yuan, and the operating cost will be controlled within 80 billion yuan.

However, the performance in the first quarter of this year declined due to the decline in the average sales price of polysilicon products and coal products. In the first quarter of 2024, the company achieved operating income of 23.543 billion yuan, a year-on-year decrease of 11.12%, and the net profit attributable to the parent company was 1.994 billion yuan, a year-on-year decrease of 57.89%.

The industry believes that since the second half of last year, with the gradual release of new polysilicon production capacity and the increase in market supply, polysilicon prices have fallen sharply. In the face of a phased and structural oversupply situation in the market, TBEA can cope with the impact of price fluctuations by virtue of its scale advantages, cost advantages and the synergistic effect of the "coal-electricity-silicon" integrated industrial chain.