Distribution Network Automation Policy and Business Trend Analysis

Distribution Network Automation Policy

According to a recent report by the State Grid Corporation of China, the Ministry of Transportation Inspection Department of the State Grid held a launch meeting for the standardization of distribution networks at the end of September. The meeting aimed to outline key tasks and strategies for the ongoing standardization efforts in the distribution network sector. Distribution automation has become a central focus in power grid development. After three rounds of pilot projects, the standardization process is now in full swing. Additional guidelines, equipment standards, and construction plans are expected to be released soon. The overall strategy for the distribution network sector continues to be emphasized as a priority.

Power Equipment Companies

Tracy recently released its 13th quarterly report, showing impressive performance in the first three quarters of the year. The company achieved total revenue of 792 million yuan, representing a 78.20% year-on-year increase. Net profit attributable to shareholders reached 87.37 million yuan, up 53% compared to the same period last year. For 2013, the company projected net profit for listed shareholders to range between 11.66 million and 128.6 million yuan, reflecting an increase of 45% to 60% over the previous year. This strong performance can be attributed to a significant recovery in the railway market bidding and continued expansion in the power grid market. In addition to breakthroughs in provincial networks, the company successfully entered the State Grid market. Through external mergers and acquisitions, it also expanded its sales within the power grid, boosting operating income by 174 million yuan. Meanwhile, Inovance Technology's forecast indicates that its net profit for the period from January to September could increase by 63% to 76% year-on-year, with revenue growth estimated at 28% to 39%.

New Energy Companies

Taisheng Wind Energy expects net profit attributable to shareholders of listed companies for the period from January to September 2013 to be between RMB 55 million and 68 million, marking an increase of 3.48% to 27.94% compared to the previous year. Yinxing Energy, on the other hand, reported losses ranging from RMB 480 million to 580 million during the same period, including a loss of approximately RMB 9.34 million in the third quarter, although it recorded a small profit of RMB 660,000 in that quarter. Xindaxinxin announced its intention to acquire 32% equity in Yicheng New Energy from LDK and then sell 100% of the company's shares to Pingmei Shenma Group, signaling strategic moves in the renewable energy sector.

It is evident that as distribution network construction progresses, various electrical equipment companies are actively positioning themselves and expanding their market presence. This trend highlights the growing importance of automation and standardization in the power industry, offering new opportunities for growth and innovation.