Zhengtai Electric Expands Its Expansion

The low-voltage electrical appliance industry is an industry closely related to the national economy. Its demand is driven by investment in various industries, and it is closely related to the investment in fixed assets across the society. The positive correlation between the two is strong. Although the domestic low-voltage electrical appliance industry is not highly concentrated and the competition is decentralized, Zhengtai Electric has been in a relatively fast growth trend in the industry due to its product technical strength and refined management model, and has become the largest low-voltage electrical appliance company with the largest production and sales volume in China. The first in a row for 10 years.

Zhengtai Electric Appliances is the largest low-voltage electrical appliance company in China with the largest production and sales volume at present, and its production and sales volume has been ranked first for 10 consecutive years.

Although the domestic low-voltage electrical appliance industry is not highly concentrated and the competition is decentralized, the company's product technical strength and refined management model have been growing rapidly in the industry, with a compound annual growth rate of 21.20% in revenue and compound net profit growth in the past 6 years. The rate reached 36.38%. In 2012, it achieved revenue of 10.7 billion yuan, and the market share reached nearly 18%.

First of all, the low-voltage electrical appliance industry will continue to maintain steady growth. As the industry leader, the company will benefit from long-term growth in the industry.

Secondly, in terms of the domestic market, the company’s market share has increased year by year and its advantages have gradually expanded. While maintaining the advantage of the low-end market, companies in the high-end market are gradually narrowing the gap with foreign products by virtue of their product upgrading strategies, and the potential for import substitution is huge.

Third, the company has actively expanded overseas markets in recent years. At present, the overseas business has a strong growth momentum. The broad market space will provide an important impetus for the company's future growth.

Extensive expansion accelerates the growth of the company's market value In recent years, the company's expansion has been accelerating, acquisitions have taken place frequently, and new businesses will also bring new market value to the company. Through the continuous injection of parent company assets and the expansion of mergers and acquisitions, such as expansion, the company's overall profit will be leaps and bounds.

Zhengtai Electric Technology - to enhance the company's customer-end comprehensive (quotations market) competitiveness Wenzhou Zhengtai Electric Technology Co., Ltd. mainly engaged in low-voltage electrical appliances and components of R & D design and manufacturing and related technical services. At present, Zhengtai Electric Science and Technology Project is still in an orderly manner. In 2012, the loss was RMB 4,421,700 and it has not yet achieved profitability. With the accelerating progress of the project construction, Zhengtai Electric Technology Company will not only enhance the company's comprehensive competitiveness in the development of smart grid client business, but also can become the company's new profit growth point in the future.

Zhengtai Building Electrical Appliances - a leading company in the field of building electrical appliances Zhejiang Zhengtai Construction Electrical Appliance Co., Ltd. ("Zhengtai Electric") is one of the four pillar industries of the Zhengtai Group affiliated with high and low voltage electrical appliances, power transmission and transformation, instrumentation (quotations market). It is also the only company in the field of building electrical appliances that has been identified by the Ministry of Construction as a "national housing industrialization base." The company mainly produces operating wall switch, socket and other building electrical accessories and intelligent products.

After ten years of development, Zhengtai Electric won the unanimous recognition of customers with its high quality products and good reputation. Its comprehensive strength ranks in the forefront of the national electrician industry. Its products not only have a good reputation in China, but also have entered the international markets of Southeast Asia, Australia and other countries. . In the past two years, the company has intensified the development of new products and seized the middle and high-end market. The peak of China's real estate industry began in 2004, and the general house renovation cycle is about 8 years. The construction electrician products are entering the peak of the second renovation and consumers are bound to New demands are placed on the brand and product quality, and it is right for Zhengtai Electric to enter the mid-to-high end market at this time.

Zhengtai Electric has achieved sales revenue of RMB 649 million and net profit of RMB 76,597,700 in 2012. As a leading company in building electrical appliances, it not only extends the company's business to important areas with huge demand space, but also will become an important source of income for the company in the future.

Shanghai Xinhua Control Technology - Helping the company transform into a system integrator Shanghai Xinhua Control Technology Co., Ltd. was founded in 1985. It is the pioneer in the localization of China's thermal power equipment control system, and started with the localization of digital electrohydraulic control system (DEH). 90 In the mid-decade, it involved the decentralized control system (DCS) field and was the first domestic DCS system supplier. After more than 20 years of development, Xinhua Control has strong hardware and software development capabilities and engineering capabilities. Its products used to account for more than 90% of the DEH market share in thermal power units and 72% of DCS market share in thermal power units. Has a good reputation, but also has a complete process control system solutions and engineering implementation capabilities, product application performance.

Since October 2010, Xinhua Control has re-employed the DEH and DCS businesses of thermal power plants. In recent years, the business has covered 300 MW or more large-scale units, small and medium-sized units of 200 MW or below, waste incineration power generation, waste heat power generation and circulating fluidized bed units. , MCS, DEH, desulfurization control, denitration control, and other automated control systems.

In 2012, Xinhua achieved a sales income of 277 million yuan and a net profit of -695.63 million yuan. Although Xinhua Control is still at a loss, in the long run, advanced technologies represented by automation technology will play an extremely important role in the adjustment of China's industrial structure. The field of automation control is a key business for Zhengtai Electric to realize the upgrading of the electrical industry in the future. With the three strategic and emerging industries of energy saving and environmental protection, high-end equipment and new energy, the company’s acquisition of Xinhua’s control will not only help strengthen the company’s competitiveness in the power market and industrial automation, but also form a solution for the integration of power distribution, driving and control. Architecture, but also will help the company to complete the transformation from a single component manufacturer to a system integrator, to achieve the hardware upgrade to hardware and software industries.

From the perspective of gross margins, the current gross profit margin of the control system is 40.91%, which is a typical high-value-added product. The addition of high-margin business will further enhance the overall profitability of the company.

Zhejiang Zhengtai Instrumentation - become an important profitable point for the company Zhejiang Zhengtai Instrument & Meter Co., Ltd. has always been one of the core industries of Zhengtai Group. It is a leading professional supplier of energy measurement products, systems and solutions, and a national high-tech enterprise. The company currently employs more than 2,100 people and more than 500 professional and technical personnel.

Chint Instrumentation entered the State Grid Smart Meter Tendering System in 2010 and has become a fixed successful bidder. The number of successful bids has continued to grow, with a total of 3.11 million bids in 12 years, a year-on-year increase of 26.64%, and the first batch of 13 years (4 batches in total). ) Totaled 800,000 bidders. Instrumentation company achieved revenue of 975 million yuan in 12 years, net profit of 9898.87 million yuan, an increase of 7.38% and 45.76% respectively, and was incorporated into the company's financial report in September last year.

The addition of instrumentation will not only increase the company's profit, but also significantly enhance the company's competitiveness in the smart grid field. Under the premise of rapid development of smart grid, this block of assets will have far-reaching significance for the future development of listed companies. A sustained development for several years will bring greater contribution to the company.

Yueqing Chint Microfinance - Improve the company's ability to prevent financial risks Since the establishment of Zhengtai Small Loan Co., Ltd. in 2008, after three and a half years, the current operating performance has been at the forefront of Wenzhou City Small Loan Co., Ltd., achieving net profit in 2011. 50.55 million yuan. Under the current background of Wenzhou's financial reform, microfinance companies are expected to turn into rural banks in the future. Chint has a good development prospect. The company’s acquisition of a 22.5% equity interest in Zhengtai Microloan is to seize the historical opportunity of Wenzhou’s financial reforms and actively enter the financial sector. While gaining revenue through the provision of external financing services, it can also rely on experience accumulated in the management and investment of the financial sector. , improve the company's ability to prevent and deal with financial risks.