Shanghai Electric Showcases Robust Mid-Year Financial Performance, Recording High-Speed Growth for Low-Carbon and Renewable Energy Businesses

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09/06/2023 - 10:25 PM

SHANGHAI, Sept. 6, 2023 /PRNewswire/ -- Shanghai Electric (SEHK:2727, SSE:601727) leveraged market opportunities across key sectors to grow significantly in H1 2023 while optimizing its corporate strategy to address global economic challenges.

Shanghai Electric advanced low-carbon transformation and clean and renewable energy pledges to support China's "Dual-Carbon" goal during the reporting period. In H1, new orders for nuclear and high-efficiency clean thermal power equipment increased 182.33% and 386.67%, respectively, driving revenue and profit to record highs.

Operating revenue was RMB 53.078 billion in H1 2023, up 5.54% from the previous year. After losing money in 2022, net profit attributable to shareholders rose to RMB 590 million. Energy equipment, industrial equipment, and integrated services orders totaled RMB 82.01 billion, up 38.4% year-over-year, bringing the order backlog to RMB 284.18 billion as of June, up 5.8%.

Energy Equipment Business Leads Growth

A global leader in energy equipment, the company has been upgrading its industrial structure to help clients go green. Energy equipment business H1 operating revenue was RMB 25.677 billion, up 5.8%, and gross profit margin was 19.4%. Profit rose 63.4% to RMB 518 million.

Shanghai Electric received RMB 7.815 billion in nuclear orders in H1, up 182.33%. Achievements include fourth-generation high-temperature gas-cooled reactor orders, commercial operation of the first Hualong One reactor in western China, and nuclear fusion experimental facility bids.

Last year's record for orders for coal-fired power generation equipment was quadrupled, reaching RMB 22.679 billion in H1.

Driving New Energy Transition

With its Dual-Carbon Action Plan, Shanghai Electric made significant progress towards its low-carbon goals of carbon peak before 2035 and carbon neutrality across the value chain by 2055. This opens the door to expanding into solar and hydrogen energy, demonstrating China's commitment to decarbonize its economy with new energy system solutions.

Shanghai Electric demonstrated its expertise with a 500kW/3000kWh vanadium redox flow battery energy storage system, showcasing its technical prowess in vanadium redox flow batteries (VRFB).

The company is also leading the way in next-generation N-type photovoltaic technologies by increasing capacity and R&D for high-efficiency heterojunction solar cells and modules this year. H1 2023 saw several overseas photovoltaic projects connect to the grid. Shanghai Electric is also constructing the world's largest CSP-PV complex in Dubai.

Cutting-Edge Industrial Solutions

In H1 2023, Shanghai Electric's industrial equipment business had an operating income of RMB 19.609 billion, up 17% year-on-year. The gross profit margin was 16.8% and an operating profit reached RMB 779 million, up 38.4%.

Shanghai Electric is delivering advanced manufacturing solutions for aviation, with subsidiary Broetje recently delivering heavy-duty robots to Gulfstream Aerospace Corporation. Another subsidiary, Thales Transport & Security, recently launched an autonomous train control signaling system equipped with 5G and obstacle detection.

Integrated Services Ushers Smarter Future

Shanghai Electric's integrated services business achieved an operating income of RMB 10.265 billion and an operating profit of RMB 581 million in H1. The company is also working on intelligent manufacturing through integrating artificial intelligence, 5G, and the industrial internet.