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Zhengtai Electric’s solar energy sector is in full bloom, with revenue of 5.62 billion RMB in the first half of 2019 and a 47% year-on-year increase

by Energy1media

· ENGLISH

In August 30, Zhengtai Electric (601877.SH) announced the first half of the year 2019 financial report. Among the company’s groups, the “solar segment”, which is based on Chint New Energy, a subsidiary of the company, achieved revenues of up to 5.619 billion RMB, a sharp increase of 46.67% over the same period last year. Another core segment, the “Low-Voltage Division”, generated revenue of 8.642 billion, which was also higher than the same period last year.

During the reporting period, Zhengtai Electric achieved a total revenue of 14.428 billion RMB yuan, a year-on-year increase of 21.22%; net profit attributable to shareholders of listed companies was 1.784 billion, an increase of nearly 1% over the same period of the previous year. Excluding the impact of the power plant equity sale on net profit for the same period last year, net profit increased by 19.35% than last year.

From the financial report data, Energy No. 1 saw that Zhengtai Electric achieved a revenue of 8.7 billion RMB in the first half of this year, on the basis of the low-voltage sector revenue of 7.83 billion RMB.

What is more noteworthy is that the company's revenue in the solar segment was 5.619 billion, a year-on-year increase of 47%. The sector's assets totaled 34.136 billion and the gross profit margin was 18%.

According to the situation that Chinese PV startup and overseas market continued to sell momentum in the second half of this year, the revenue of Zhengtai New Energy and other PV-related sectors will not be lower than that of 2018, and the growth will be strong.

In the first half of the year, the newly installed households of Zhengtai Electric installed 343MW. At the same time, the company's shipments in Europe, the Middle East, Latin America and Southeast Asia all exceeded the target at the beginning of the year. Especially in the emerging Vietnam market, Chint has achieved a high component sales share. In the same period, the company also won the bid for 350.68MW distributed power station and 300MW ground power station, totaling 650.68MW, which accumulated high-quality and abundant project reserves for power plant investment and construction in the second half of 2019.

On May 30, the National Energy Administration officially issued the "2019 Photovoltaic Power Generation Construction Management Work Plan". Among them, the bidding project clearly adopts the method of “intra-provincial bidding + national queuing”. In the overall bidding system, the benchmarking price is changed to the guiding price, and each manufacturer issues the quotes directly. With the new policy landing, China's PV domestic demand will be changed to the parity and bidding model in 2019.

By making full use of resources, channels, services and other advantages, on the basis of maintaining the scale of power plant operations, Zhengtai New Energy accelerates the development of the overseas market layout and EPC projects. The enterprises are also magnifying the cost-effective advantages, promoting the company's PV business to develop a performance of high quality.

In terms of technology improvement, the company further achieved cost optimization and strengthened the international influence of component brands.

In the first half of 2019, Chint increased its R&D investment and introduced a number of new technologies through upgrades, such as multi-main-grid MBB, SE, etc. The high-efficiency battery has been mass produced, whose efficiency has exceeded 22.5%. Half-chip, double-sided component power has exceeded 400W, leading in the industry level. The factory has established a special research team, focusing on customer’s quality requirements, maintaining close communication with customers, responding quickly to continuous customer demands. Therefore, product yield is close to 99.8%, and non-silicon manufacturing cost of batteries and components is much lower than the industry average level, which lay a solid foundation for the company’s manufacturing sector profits.

Energy1media​ is the top media from china, focusing on energy, auto, science, and technology.

Mail to:nengyuanyihao@126.com ;Tel: 086 183 2141 1670

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