“Science and Technology Innovation Board Daily”, July 29 (Reporter Qiu Siyu) This evening (July 29), Weisheng Information released its 2024 semi-annual report. The company achieved operating income of 1.223 billion yuan, an increase of 20.76% year on year; achieved net profit of 0.271 billion yuan to mother, an increase of 26.52% year on year, with basic earnings of 0.56 yuan per share.

In terms of single-quarter performance, Weisheng Information achieved revenue of 0.775 billion yuan in the second quarter, an increase of 31.42% year on year; realized net profit of 0.161 billion yuan to mother, an increase of 29.87% year on year.

The company also revealed that there are plenty of orders in hand. As of June 30, 2024, the company had orders of 3.512 billion yuan, an increase of 17% over the previous year, and the company signed a new contract of 1.5 billion yuan during the reporting period. Furthermore, in July 2024, the company won a bid of 0.312 billion yuan for China Southern Power Grid's 2024 tender project.

As for the reason for the increase in performance, Weisheng Information explained that under development opportunities such as “dual carbon” goals, new power systems, and global energy changes, the company actively explores and continues to develop domestic and international markets to bring about performance growth.

International business growth nearly doubled

When it comes to the international market, it is worth noting that Weisheng Information's international business growth has almost doubled. In the first half of 2024, the company's domestic business achieved revenue of 0.992 billion yuan, an increase of 11.41% year on year; international business achieved revenue of 0.225 billion yuan, an increase of 93.22% year on year. At the same time, the share of international business revenue also increased from 10% in 2023 to 18.5%.

According to reports, Weisheng Information added two new subsidiaries in Mexico and Indonesia in the first half of this year, and also began implementing plans to build factories in Saudi Arabia, Indonesia, and Mexico, and plans to increase the capital to the Hong Kong subsidiary to HK$0.8 billion for international market expansion.

The company has obtained many product certifications in Asia, the European Union, North America, etc., and in 2024, it has obtained new international related certifications such as the US FCC certification report, CE-RED EU radio equipment directive certification, MID/OIML measurement certification, and STS prepaid product certification.

WeRich announced in early July that its subsidiary WeRich plans to acquire the assets of industrial land and subsidiary plant at No. 200 Mining Boulevard in Silao City, Guanajuato, Federated States of Mexico. The underlying asset transaction price is 8 million US dollars (including VAT), which is approximately RMB 56.76 million.

In response to this deal, Weisheng Information stated that the company's products already have a market base in Mexico, and the prospects for market development are good. Investing in the construction of a factory in Mexico will enhance the competitiveness of the company's products and help further expand its market share.

Digitalization has become a key gripper in the power sector

In addition to overseas markets, Weisheng Information said that digital grids and digital smart cities are the other two major market layouts.

In the field of digital grids, under the development needs of new power systems, energy transformation and diversified energy use have led to dramatic changes in power grids. The company focuses on key core technologies and launches digital solutions for all aspects of transmission and distribution; in the field of digital smart cities, the company provides comprehensive solutions in the fields of integrated energy, smart water, smart fire, and smart parks.

According to Weisheng Information, digitalization has become a key driver for the development of the power and energy industry, and more business collaboration and resource sharing have emerged on the basis of digitalization. The State Grid and China Southern Power Grid have both increased their investment in the field of digitalization, and the investment driven by the digital transformation of the two major power grids during the 14th Five-Year Plan period will amount to hundreds of billions of dollars.

Hua Pengwei, an analyst at CITIC Securities, predicts that the annual amount of completed grid infrastructure investment is expected to increase by 13%-15% year-on-year, and the absolute investment level and relative growth rate are expected to reach new highs in recent years. Future power grid investment will revolve around the construction of major scenic bases and main grid structures for cross-regional transmission channels, and the digital intelligence upgrade of distributed intelligent distribution grids.

However, Weisheng Information also admits that as downstream application scenarios continue to be enriched, many large enterprises and start-ups actively enter the digital intelligent city and energy Internet fields, and market competition will further intensify. In addition, the company is a technology-intensive industry. In terms of R&D investment, during the reporting period, the company spent 99.5996 million yuan on R&D, an increase of 5.08% over the previous year. The diversity of industry customers and the innovation of industry technology have increased uncertainties in the company's new technology and product development process to a certain extent, leading to a long cycle of revenue generation from R&D to commissioning.