The third quarterly report of ① Jiangsu Guoxin shows that the net profit has increased by more than 2 times compared with the same period last year, and the company's two main businesses are showing signs of improvement, of which investment income accounts for 86% of the net profit. ②, with the sharp fall in coal prices this year, the profits of the industrial chain are shifting from upstream to downstream, and Jiangsu Guoxin's power generation costs have declined. ③ Company strengthens the layout of ultra-supercritical. Recently, millions of kilowatt ultra-supercritical units have been put into operation, and there are many units waiting for operation.
Financial Associated Press, October 26 (Reporter Wu Chao)As a "energy + finance" two-wheel drive company, Jiangsu Guoxin (002608.SZ) has performed well in both main industries this year, with three quarterly reports showing that net profit has more than tripled compared with the same period last year. Industry insiders told the Financial Associated Press that after the fall in coal prices this year, there has been a "big reversal" in the performance of coal and power enterprises, and the performance of power enterprises has generally improved. In addition, Jiangsu Guoxin has further expanded its ultra-supercritical units, and recently millions of kilowatt ultra-supercritical units have been put into operation.
According to the financial report released by Jiangsu Guoxin, the revenue in the first three quarters of 2023 was about 24.933 billion yuan, an increase of 2.17% over the same period last year; the net profit belonging to shareholders of listed companies was about 1.963 billion yuan, an increase of 221.8% over the same period last year.
Jiangsu Guoxin mentioned the main reasons for the increase in net profit compared with the same period last year: first, the price of the coal market fell, at the same time, the company strengthened fuel management, promoted cost reduction and efficiency measures, strictly controlled costs and expenses, and enhanced the profitability of the energy sector; second, the income of the financial sector grew steadily, and the company's non-recurrent profit and loss mainly included changes in the fair value of trading financial assets and government subsidies.
Some industry analysts told the Financial Associated Press that the deadliest factor affecting the profits of thermal power enterprises is the price of coal. In the past two years, due to the sharp rise in coal prices, the electric power industry chain generally presents the situation of "eating meat" upstream and "eating soil" downstream. Even the more power generation, the more losses, Jiangsu Guoxin also suffered continuous losses deducting non-net profits in 2021 and 2022. However, with the sharp fall in coal prices, the profits of the industrial chain are being transferred from upstream to downstream.
It is understood that since the third quarter, coal prices have shown a continuous downward trend due to the loose supply and demand of the market. According to Wind data, the average price of thermal coal in Qinhuangdao was 869 yuan / ton as of October 25, compared with about 1000 yuan / ton at the beginning of March.
A reporter from the Financial Associated Press is concerned that investment income is the core profit source of Jiangsu Guoxin financial sector. in the first three quarters, Jiangsu Guoxin made an investment income of 1.682 billion yuan, contributing 86% of the net profit. It is reported that Jiangsu Guoxin is now the largest shareholder of Jiangsu Bank of Jiangsu (600919.SH), the largest corporate bank in Jiangsu Province, and the largest shareholder of Lian Life, a national life insurance company.
According to the released financial results, Jiangsu Bank achieved a net profit of 17.02 billion yuan in the first half of this year, an increase of 27.20 percent over the same period last year, and Jiangsu Bank also implemented a total dividend of 7.615 billion yuan during July. Public data also show that Lian Life has significantly reduced its losses this year compared with the same period last year.
In addition, driven by the environmental protection industry policy and double carbon goals, ultra-supercritical power generation, as one of the advanced technologies of thermal power energy saving and emission reduction, has attracted market attention in the past two years. Jiangsu Guoxin is one of the leading enterprises in the layout of ultra-supercritical power plants.
Jiangsu Guoxin announced at the end of September that Unit 1 of the Sheyang Port Power Plant 2 × 1 million kilowatt coal-fired power plant expansion project successfully passed the 168-hour full-load trial operation and was officially put into commercial operation. The project is the first coal-fired power unit to be put into production in Jiangsu Province during the 14th five-year Plan period, and it is also the only new thermal power source in Jiangsu Province this year.
It has been disclosed that Jiangsu Guoxin has another million kilowatt ultra-supercritical secondary reheat coal-fired generating units to be put into production, including two million-class units in the Binhai Port project to achieve double investment by the end of 2024, two million-class units in the Shazhou project are expected to be put into production in 2025, and Jingjiang Phase II one-control and one-parameter unit is expected to be put into production by the end of 2025. Waiting for the above units to be put into production one after another, it is expected to help the company's energy industry structure to be continuously optimized.