The new central state-owned enterprise reorganized by power equipment companies such as China Xidian Group, Xuji Group, Pinggao Group, Shandong Diangong Electric and other power equipment companies will soon be listed, and it is expected to be announced in August! The name of the new central enterprise is China Power Equipment Group, and it will become an aircraft carrier-level enterprise in the field of China's power equipment, with total assets exceeding 100 billion yuan.

In response to a reporter’s question on July 16, Peng Huagang, Secretary-General of the State-owned Assets Supervision and Administration Commission, said that he announced the reorganization plan of central enterprises: In terms of strategic restructuring, the reorganization and integration of central enterprises in the steel and transmission and distribution equipment manufacturing industries will be steadily promoted. Related fields actively cultivate the timely formation of new central enterprise groups.

On December 23, 2020, the four listed companies of Xu Ji Electric, Pinggao Electric, China Xidian, and Baoguang Co., Ltd. respectively issued announcements. China Xidian Group is planning with the subsidiary Xu Ji Group and Pinggao Group of the State Grid Corporation of China. For strategic reorganization, the relevant plan has not yet been determined, and the plan needs to be approved by the relevant competent authority.

In addition to the above three groups, Shandong Diangong Electric, a subsidiary of State Grid Corporation of China, will also be included in the scope of reorganization. In addition, a small part of NARI Group's business will also be divested to the new China Power Equipment Group.

China Xidian Group is the only central enterprise in China with a complete power transmission and distribution industry as its main business. It is the most representative enterprise in China's power transmission and distribution equipment manufacturing industry and an important force for going global.

Pinggao Group and Xuji Group are industrial units directly under the State Grid Corporation of China. The former is a leading enterprise in domestic high-voltage switchgear, and the latter is a domestic leader in the fields of DC transmission and smart grid. Shandong Diangong Electric Group's business scope covers R&D, design, manufacturing, testing, and complete equipment of power transmission and distribution equipment. Its core business includes a full range of transformers and parts, high-end iron towers and cable supply.

Several companies have had a certain degree of competition in the past, but their advantageous businesses have no obvious overlap and are highly complementary. If the reorganization can be implemented smoothly, it will undoubtedly form a stronger synergy.

From the perspective of UHV DC, Guodian NARI, Xu Ji Electric and China Xidian have a market share of 93% in the field of converter valves, showing a tripartite trend. The DC control and protection system is divided equally by Guodian NARI and Xu Ji Electric. In the transformer field, TBEA and China Xidian accounted for half of the country. In terms of UHV AC, Pinggao Electric is the absolute overlord of GIS, and TBEA is the leader in transformers.

In terms of different companies, China Xidian has almost all major UHV AC and DC equipment R&D and production capabilities, with a high market share and a relatively balanced overall. Xu Ji Electric focuses on DC converter valves and DC control and protection systems, and both are in the second position in the industry. Pinggao Electric is in a leading position in the fields of AC and DC GIS and AC transformers.

In general, China XD and XJ Electric and Pingao Electric are the leading enterprises in China's electrical equipment. Among them, China XD has comprehensive capabilities, and XJ Electric and Pingao Electric have a prominent position in specific market segments.

In terms of size, the differences between the several groups are not too great. Among the public information, only Pinggao Group has released the latest financial data for 2020, and the other companies can only find past data.

As of the end of 2020, Pinggao Group's total assets were 31.979 billion yuan, a year-on-year increase of 5.66%. In 2020, it achieved operating income of 10.979 billion yuan and total profit of 122 million yuan, successfully turning losses into profits.

As of the end of 2019, Xu Ji Group has total assets of 21.879 billion yuan and net assets of 7.808 billion yuan. In 2019, it achieved operating income of 11.710 billion yuan and net profit of 437 million yuan.

As of the end of 2018, Shandong Electric's total assets were 21.6 billion yuan, and its operating income in 2018 was 13.2 billion yuan.

According to a report previously published by the National Audit Office, in 2016, China XD Group had total assets of 39.244 billion yuan, total liabilities of 15.918 billion yuan, owners' equity of 23.326 billion yuan, and asset-liability ratio of 40.56%; total operating income of the year was 16.457 billion yuan and total profits. 1.232 billion yuan, with a net profit of 1.043 billion yuan. According to the data in the 2019 responsibility report released by China Xidian Group, its total assets in 2019 are about 39.838 billion yuan, operating income is 18.55 billion yuan, and total profits are 720 million yuan.

According to preliminary calculations based on the financial data of the above four enterprise groups, its total assets will be close to 120 billion yuan, and it will become a 100-billion-level power equipment group. It has 4 listed companies under its jurisdiction, namely Xu Ji Electric, Pinggao Electric, China Xidian, and Baosteel. Light shares.

The newly established China Power Equipment Group will have strong international competitiveness.

From the perspective of the domestic market, under the strategic goal of carbon peaking and carbon neutrality, grid investment will continue to grow.

From the perspective of the international market, the construction of countries along the Belt and Road is a major development opportunity for China's equipment manufacturing enterprises. The countries along the route are mainly developing countries, with a weak foundation for power grid construction and huge potential for transformation and upgrading.

The competition pattern in the overseas market of the power transmission and distribution industry is mainly dominated by the three European and American companies of ABB, Siemens, and Areva, and the three companies together account for nearly 50% of the market share.

Keywords: reorganization of central enterprises, engineering news

The long-prepared large-scale reorganization of China's power equipment field is about to be settled. Analysts believe that the countries along the Belt and Road do not have particularly strong local power transmission and distribution companies, and there is no great tendency toward local protectionism. After the large-scale construction of domestic UHV and smart grids, China's power transmission and distribution companies have greatly strengthened themselves, gradually showing their international competitiveness, and their market share in developing countries has gradually increased. The final implementation of the reorganization plan will further enhance China's overseas competitive advantage in the field of power transmission and distribution equipment. Editor/Sang Xiaomei