Shanghai Electric Reports Strong Growth and Expansion in H1 2023

Shanghai Electric

Shanghai Electric, a global leader in energy and industrial equipment, has announced robust financial results and significant progress in its strategic initiatives for the first half of 2023.

Impressive Financial Performance

Operating revenue for H1 2023 reached RMB 53.078 billion, marking a substantial 5.54 percent increase compared to the previous year. Following a challenging financial year in 2022, the company rebounded strongly, with net profit attributable to shareholders surging to RMB 590 million.

The energy equipment, industrial equipment, and integrated services segments were the driving forces behind this growth, collectively accumulating orders totaling RMB 82.01 billion, a remarkable 38.4 percent year-over-year increase. This surge in orders resulted in an order backlog of RMB 284.18 billion as of June, demonstrating the company’s strong momentum.

Energy Equipment Dominates Growth

Shanghai Electric’s energy equipment business led the charge in revenue growth, with H1 operating revenue reaching RMB 25.677 billion, a 5.8 percent increase. The gross profit margin for this segment stood at an impressive 19.4 percent, and profit soared by 63.4 percent to RMB 518 million.

Notable achievements included receiving RMB 7.815 billion in nuclear orders during H1, reflecting an astounding 182.33 percent increase. The company secured orders for fourth-generation high-temperature gas-cooled reactors, initiated commercial operations of the first Hualong One reactor in western China, and secured bids for nuclear fusion experimental facilities. Additionally, Shanghai Electric quadrupled its orders for coal-fired power generation equipment, reaching RMB 22.679 billion in H1.

Driving the New Energy Transition

Aligned with its Dual-Carbon Action Plan, Shanghai Electric is making significant strides toward its low-carbon goals, including achieving carbon peak before 2035 and carbon neutrality across the value chain by 2055. The company’s commitment to a green future has led to expansion into solar and hydrogen energy, emphasizing China’s dedication to decarbonizing its economy through innovative energy solutions.

Shanghai Electric showcased its expertise by introducing a 500kW/3000kWh vanadium redox flow battery energy storage system, underscoring its proficiency in vanadium redox flow batteries (VRFB). Moreover, the company is at the forefront of next-generation N-type photovoltaic technologies, with increased capacity and R&D efforts in high-efficiency heterojunction solar cells and modules. Several overseas photovoltaic projects successfully connected to the grid during H1 2023, and the company is actively involved in constructing the world’s largest CSP-PV complex in Dubai.

Cutting-Edge Industrial Solutions

In H1 2023, Shanghai Electric’s industrial equipment business achieved an impressive operating income of RMB 19.609 billion, marking a 17 percent year-on-year increase. The gross profit margin stood at 16.8 percent, and the operating profit reached RMB 779 million, up 38.4 percent. The company is delivering advanced manufacturing solutions for the aviation sector, with subsidiary Broetje delivering heavy-duty robots to Gulfstream Aerospace Corporation. Additionally, Thales Transport & Security, another subsidiary, launched an autonomous train control signaling system equipped with 5G and obstacle detection, exemplifying Shanghai Electric’s commitment to cutting-edge industrial solutions.

Integrated Services for a Smarter Future

Shanghai Electric’s integrated services business reported an operating income of RMB 10.265 billion and an operating profit of RMB 581 million in H1. The company is actively engaged in intelligent manufacturing by integrating artificial intelligence, 5G, and the industrial internet, paving the way for a smarter and more efficient future.

Shanghai Electric’s impressive performance and commitment to sustainability underscore its position as a global leader in the energy and industrial equipment sector, driving innovation and progress in the industry.