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Analysis of the Current Development Status of the Electrical Industry

After more than 50 years of development, the Chinese electrical industry has formed a relatively complete system

Nov 09,2021

After more than 50 years of development, the Chinese electrical industry has formed a relatively complete system, and the variety, output, technical performance, and quality of products can basically meet the needs of national economic development. Its products are transitioning towards the development of a new generation of products characterized by intelligence, miniaturization, modularity, and communication. Under the trend of stability oriented, new energy, new technology and new service modes of electric power, such as energy storage, micro grid, grid security, energy Internet, electric power Internet, etc., will be popular in the market in the future.

Electrical, electrical power and equipment is a general term for the production, transmission, distribution, use, and manufacturing of electrical equipment and other disciplines or engineering fields of electrical energy. It is a science that uses electrical energy, electrical equipment, and electrical technology as means to create, maintain, and improve confined spaces and environments. It covers three aspects: the conversion, utilization, and research of electrical energy, including basic theory, applied technology, and facility equipment.

Analysis of the current development status of the electrical industry and market research on the electrical industry in 2022

The completed investment in power grid engineering construction in China in 2021 was 495.1 billion yuan, an increase of 1.10% year-on-year. The completed investment in power grid engineering construction in China in 2020 was 469.9 billion yuan, an increase of 6.20% year-on-year.

Data shows that in the third quarter of 2021, a total of 25 A-share listed companies in China's other power equipment industry disclosed their third quarter reports, with a total revenue of 158.7 billion yuan and a net profit loss attributable to the parent company of 50 million yuan. The 25 other power equipment listed companies are mainly distributed in Guangdong (7), Sichuan (4), Beijing (2), Jiangsu (2), and Zhejiang (2), including the Shenzhen Main Board (10), ChiNext (9), and Shanghai Main Board (5). Shanghai Electric's revenue was approximately 93.53 billion yuan, a year-on-year increase of 13.3%, accounting for 58.94% of the total revenue of listed companies in the entire other power equipment industry. Dongfang Electric, Huaguang Huaneng, and Hangguo Shares once again ranked in the top three.

According to data, on August 8, 2022, among the 28 primary industries to which Shenwan belongs, a total of 18 industry sectors received net financing purchases on August 17, with 6 sectors having a net purchase amount of over 100 million yuan. Among them, the electrical equipment industry received the highest net purchase amount from financing, with a net purchase of 1.216 billion yuan on the same day; Industries such as chemical, automotive, machinery and equipment, agriculture, forestry, animal husbandry, and fishery, as well as non bank finance, have also received net financing purchases.

According to the report "Market Analysis and Investment Research Report on China's Electrical Industry from 2022 to 2027" published by China Research Institute Puhua, it is shown that:

The development of the electrical industry is closely related to the production and development of all industries. The current focus of industry development is on third-generation products, aiming to increase the market share of high-quality domestic low-voltage electrical products; Meet the needs of low-voltage distribution, control systems and devices, as well as supporting national key projects; Significantly improve the reliability and appearance quality of China's major low-voltage electrical products.

The tremendous progress in the electrical industry has driven the arrival of the information age based on computer networks and will change the way humans live and work. The development prospects of electrical engineering are also very promising, resulting in a consistently high employment rate for students today. The on grid electricity price will continue to be formed in the form of "guidance price+competitive allocation".

The expectation of continuous cost reduction in the wind power industry is clear, especially in offshore wind power. With the improvement of lifting efficiency and the integration and optimization of the wind power supply chain, there is great potential for cost reduction. The "14th Five Year Plan" for renewable energy in coastal provinces will be released one after another. According to the draft for soliciting opinions, the five-year new installed capacity target for sea breeze in Zhejiang, Jiangsu, and Guangdong provinces has exceeded 30GW. Since the implementation of the "dual carbon" strategy by the country, the electrical industry policy has been constantly improving, and in the various sub sectors of traditional energy transformation and new energy, it has ushered in vast market space of billions or even trillions of yuan.

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