“Science and Technology Innovation Board Daily”, August 9 (Reporter Yu Jiaxin) This evening (August 9), Jinpan Technology released its performance report for the first half of 2024.

In the first half of this year, Jinpan Technology achieved revenue of 2.916 billion yuan, an increase of 0.79% over the previous year; realized net profit of 0.222 billion yuan, an increase of 16.43% over the previous year.

Looking at the single quarter, the company's net profit for the second quarter was 0.128 billion yuan, up 23.02% year on year and about 35.04% month on month.

Jinpan Technology said that, on the one hand, it has benefited from the increase in the proportion of high-quality customers and orders, and on the other hand, increased accounts receivable and inventory management, reduced credit impairment losses and asset impairment losses compared to the same period last year, and benefited from factors such as additional input taxes.

In terms of gross margin, during the reporting period, the company achieved a gross sales margin of 23.36%, an increase of 1.60 percentage points over the same period last year.

▍ Domestic and foreign business differentiation, overseas business is improving

As a global power equipment supplier, Jinpan Technology develops, produces and sells transformer series, complete series, energy storage series and other products to provide power supply solutions and high-end equipment for all scenarios such as new energy (including wind energy, photovoltaics, energy storage, hydrogen energy, etc.), new infrastructure, energy efficiency, and rail transit.

As of June 30 this year, the company's dry-type transformer products have been successfully used in a total of 137 wind farm projects, 217 photovoltaic power plants, and 170 rail transit projects in 44 cities in China. In the international market, the company's products have been sold to about 86 countries and regions around the world, used in more than 500 overseas power station projects and 14 rail transit projects, and exported indirectly or directly to about 0.016 million overseas wind farm projects.

However, judging from the revenue structure and on-hand orders, Jinpan Technology's domestic and foreign business was divided, and its overseas business continued to improve, while due to the new energy business, the company's domestic performance, which is the main revenue force, declined.

Specifically, from January to June 2024, Jinpan Technology's export sales revenue was 0.791 billion yuan, up 48.53% year on year; domestic sales revenue was 2.11 billion yuan, down 10.02% year on year, mainly due to the company's domestic new energy sales revenue falling 19.29% year on year.

As of the end of June 2024, the company's on-hand orders were 6.562 billion yuan (excluding tax), up 29.88% year on year, of which domestic sales orders were 3.713 billion yuan, down 7.98% year on year; export sales orders were 2.849 billion yuan, up 180.16% year on year.

Unlike the new energy business, the company is currently showing varying degrees of growth in downstream sales revenue in the non-energy sector. Among them, sales revenue of critical infrastructure increased 104.69% year on year; sales revenue of power generation and power supply increased 67.41% year on year; and sales revenue of new infrastructure increased 83.38% year on year.

▍ Continue to develop new businesses such as energy storage

Currently, power grid construction is generally underdeveloped in global power systems. As a key carrier for the consumption of new energy sources, there is an urgent need for supporting upgrading and transformation, and the continuous increase in electricity demand is also increasingly promoting the requirements for grid expansion and intelligent transformation.

New energy storage has become a major force in regulating power grid systems. Currently, Jinpan Technology is continuing to develop the energy storage business. During the reporting period, Jinpan Technology's energy storage series products achieved revenue of 0.284 billion yuan. Jinpan Technology said that the company's products cover applications in all scenarios of energy storage, including power generation side, power grid side, industrial and commercial side, and household side.

“The company has mastered core technologies such as high-voltage direct-mounted SVG and direct-mounted energy storage PCS, and has deep accumulation in the fields of power grid support, power electronics, and electrochemistry. In 2024, the company established an RTLab laboratory and a 10kV direct-mounted energy storage demonstration platform at the Wuhan base, and completed prototype manufacturing and supporting equipment for the second-generation 35kV 25mW/50MWh high-voltage direct-mounted energy storage system, and obtained relevant certifications.” It was stated in the semi-annual report.

According to the semi-annual report, the company is currently developing a total of 29 projects. Among them, the “R&D and industrialization of grid-structured high-voltage direct-mounted energy storage systems” is estimated to have a total investment scale of 56.2 million yuan.

An industry insider told the “Science and Technology Innovation Board Daily” reporter, “Currently, grid-based energy storage is still in its early stages, but with policy support, future grid-based energy storage is just needed for new power systems, and the development prospects are broad.”

At the same time, digital solutions are another driving force for the company. In 2024, Jinpan Technology launched a training program to explore the big model of artificial intelligence. The project aims to comprehensively optimize enterprise R&D, design, production, and sales through artificial intelligence technology. In the first half of 2024, the company signed a total order amount of 0.476 billion yuan (excluding tax) for its overall digital solutions business.