FESE: Net Profit after Deduction of Non-Recurring Profit and Loss Increases by over 7 Folds, Trillions Yuan Worth of Airport Industry Helps Leading Cable Producer to Rise to a New High
FESE: Net Profit after Deduction of Non-Recurring Profit and Loss Increases by over 7 Folds, Trillions Yuan Worth of Airport Industry Helps Leading Cable Producer to Rise to a New High
Source: www.stcn.com
On April 25, FESE (stock code: 600869) released its impressive first quarterly bulletin of 2018. In the first quarter, it has achieved a turnover of RMB3.416 billion, an increase of 22.10%. It has earned a net profit of RMB80.7665 million, an increase of 420%. The net profit attributable to the owner of the parent company reached RMB 70.3650 million, an increase of 493%. Its net profit after deduction of non-recurring profit and loss reached RMB 56.9730 million, an increase of 707%. The profitability of the company increased significantly, attaining the highest growth rate in history. Its core competitiveness and market influence continue to improve. The bulletin indicates that FESE (stock code:600869) made use of the superposition advantages of its position as the leading cable producer and its comprehensive power system solutions, and invested in cloud service unicorn Huayun. It is proactively marching towards its strategic goal of developing into a globally-leading smart energy and smart city service provider.
FESE (stock code: 600869) owns Far East Cable, the leading producer of intelligent wire and cable. Its sales in the first quarter are robust, the superposition of leader’s effect and brand advantages continues to expand its market share. In 2017, its wire and cable business has earned a turnover of RMB 14.168 billion, which is a historical new high, an increase of 38.28%. The company makes every effort to engage with industrial strategic clients. In the field of wind power, FESE has engaged in strategic cooperation with Siemens, Goldwind, Sinovel, Acciona Energy. In the field of nuclear power, it has provided intelligent nuclear cable for “Hualong One” Reactor, and it was used in the dome hoisting project of the 5/6 nuclear power unit of the first reactor. In the field of transportation, FESE has signed agreements with metros of Xian, Wuxi and Nanjing, and has finished the supply of intelligent transport cable for the Hong Kong-Zhu Hai-Macao Bridge in 2017. In the field of intelligent building, it has provided intelligent ultra-high rise building hoist cable products and system design support for CITIC Tower and Shanghai Global Financial Hub. In the field of smart grid, FESE has provided products and services for the Power Sky Road to Cloud-Central Tibet Grid Integration Project and a UHVDC project-Jiu Quan-Hunan ±800 kV UHVDC power transmission project. FESE has also signed agreements for the Pakistan Three Gorges Phase II TGS project, Siemens European Wind Power Project and Uthai Thani Bio-Energy Co., Ltd expansion project. In addition, FESE has set up European subsidiary and representative offices in many countries in Africa and Southeast Asia.
In addition, FESE (stock code: 600869) has responded to our country’s planning of aviation infrastructure to the tune of RMB trillions, and entered the field of smart airport. It has increased the investment in a smart airport service provider, Beijing Jinghangan Airport Engineering Co., Ltd by RMB 200 million, and further improved its scale advantage and comprehensive competitiveness in the field of military and civilian integration general airport and aviation. FESE has increased the collaborative sales of intelligent wire and cable, intelligent power equipment, distributed energy resources system and new energy intelligent automobile. In the timeframe of the report, FESE saved no effort to promote the progress of national key projects and “Belt & Road” key projects, including the construction of Beijing new airport, Qingdao new airport, Beijing Capital International Airport, and airports in Angola, Maldives, and Liberia. FESE has also won the bidding to provide navigational lighting aid for Luanda New International Airport in Angola and Rizhao-Shanzihe International Airport. At the same time, FESE proactively applied for the upgrade of its airport runway engineering qualification in order to obtain more market resources. It has earned revenue of RMB 174 million, an increase of 88.44%, among which RMB 26.5658 million are its net profit, an increase of 86.32%.
It is worth noting that in the annual report published on the same day, Beijing Jinghangan Airport Engineering Co., Ltd outperformed its performance target, and has achieved revenue of RMB752 million, an increase of 18.42%, among which RMB 116 million are its net profit, an increase of 40.36%. It has earned a net profit after deduction of non-recurring profit and loss of RMB 112 million and promised that this figure would rise to 143 million and 172 million in the year 2018-2019. It promised that its performance was guaranteed.
FESE (stock code: 600869) is the leading producer of ternary 18650/21700 lithium battery (used by Tesla vehicles). The company continues to improve its new energy intelligent automobile power system technologies, production capacity and shipment. Currently, its lithium battery production capacity has exceeded 12GWh, and its battery pack production capacity has reached 100,000 packs. In 2017, it has made the list of the top 6 companies nationwide in terms of passenger vehicle battery installations, and has established cooperative ties with domestic mainstream new energy intelligent automobile producers including JMC, ZOTYE Auto, and Tongjia Auto. It continues to engage with strategic clients like Brilliance Auto, Chery and Dongfeng Motor. The lithium battery business of FESE has earned a turnover of RMB1.409 billion, an increase of 39.35%. Its market share continues to rise. In addition, the company is making every effort to build lithium battery system whole industry chain. It has joined hands with a lithium carbonate producer named Nanshi Industry in Yichun, the Asian hub of lithium mines. Currently, Nanshi Industry can produce 20,000 metric tons of lithium carbonate every year, and this figure is expected to rise to 60,000 in 2020. At the same time, FESE pushed forward with the plan to produce 20,000 metric tons of high precision ultra-thin lithium electric copper foil to meet its requirement to play a leading role on lithium resource, technology and cost and provide a solid guarantee for the 12GWh lithium electric production capacity expansion in the future and improve its comprehensive competitiveness in the lithium electric industry.
2018 is the beginning of implementing the spirit of the 19th Session of the National Congress of the CPC, the high speed growth of Chinese economy will be transformed to quality development, and this year is also key to the 13th five year plan. As the representative of Chinese real manufacturers, FESE will lead its tens of thousands of staff to embrace new growth drivers. It has made in-depth planning in the links of energy internet including distributed energy resources, smart micro-grid, terminal energy efficiency control flow inlet, energy saving cloud platform and carbon asset management. Its transformation has seen remarkable results. The company is expected to see its revenue increase to RMB20 billion, with its profit reaching RMB600 million, which will be a historical new high.
