Affected by the “private network communication” and Evergrande Thunderstorm Event, Shanghai Electric Group Company Limited(601727) (hereinafter referred to as ” Shanghai Electric Group Company Limited(601727) “, Shanghai Electric Group Company Limited(601727) . SH) had a performance loss of nearly 10 billion in 2021.
Recently, Shanghai Electric Group Company Limited(601727) released the performance express for 2021. During the reporting period, Shanghai Electric Group Company Limited(601727) achieved an operating revenue of 131388 billion yuan, a year-on-year decrease of 4.30%, a net profit loss attributable to shareholders of listed companies of 9.988 billion yuan, a year-on-year decrease of 365.76%, and a net profit loss attributable to shareholders of listed companies of 11.889 billion yuan, a year-on-year decrease of 124121%.
Before that, Shanghai Electric Group Company Limited(601727) had received the supervision letter from Shanghai stock exchange due to the release of 2021 performance advance loss report. The Shanghai Stock Exchange asked the company to explain the reasons for the large impairment losses of accounts receivable and inventories of the holding subsidiary Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd. (hereinafter referred to as “communication company”) and the reasons for the large losses of Dubai photovoltaic and optical thermal power plant projects undertaken by the company.
In view of the performance loss of Shanghai Electric Group Company Limited(601727) 2021 and its relevant layout in the green and low-carbon fields, the reporter of Huaxia times called Shanghai Electric Group Company Limited(601727) board secretary office and sent an interview outline to its email. As of the press time, no response has been received.
performance large loss
In the performance loss of Shanghai Electric Group Company Limited(601727) 9988 billion yuan in 2021, 8-8.3 billion yuan was dragged down by Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd.
According to the performance forecast of Shanghai Electric Group Company Limited(601727) in 2021, during the reporting period, Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd. had risk events, and the company accrued large impairment losses on its accounts receivable and inventory, which had a negative impact on Shanghai Electric Group Company Limited(601727) net profit in 2021 of RMB 8-83 billion.
Before that, Shanghai Electric Group Company Limited(601727) performance has maintained a relatively stable growth. Statistics show that Shanghai Electric Group Company Limited(601727) as one of the three major equipment manufacturers in China, its main business involves industrial equipment, energy equipment and integrated services. Since 2012, the performance of Shanghai Electric Group Company Limited(601727) has maintained a relatively stable growth, its operating revenue has increased from 101.2 billion yuan in 2018 to 1373 billion yuan in 2020, and the net profit attributable to listed companies has increased from 3.017 billion yuan to 3.758 billion yuan.
Affected by the “private network communication” incident in 2021, Shanghai Electric Group Company Limited(601727) had a direct loss of nearly 10 billion in net profit. Back in May 2021, Shanghai Electric Group Company Limited(601727) announced that the accounts receivable of Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd., the holding subsidiary within the scope of the company’s consolidated statements, were generally overdue, and there was a risk that large accounts receivable could not be recovered. As of the announcement date, the balance of accounts receivable of communication technology company was RMB 8.672 billion, the balance of book inventory was RMB 2.230 billion, and the balance of shareholder loans provided by the company to communication technology company was RMB 7.766 billion, There are significant risk losses.
Wang Yaowu, general partner and certified public accountant of Shenzhen Huicheng certified public accountants, told the Huaxia times: “the provision of impairment losses for associated enterprises shows that the price of investment in shares in that year is too high, Shanghai Electric Group Company Limited(601727) illegal trade financing, and large-scale impairment of receivables is inevitable.”
In addition to the great impact of the “private network communication” incident on the performance of Shanghai Electric Group Company Limited(601727) 2021, the rise in the operating costs of overseas projects, the fluctuation of raw material prices, and the provision of credit impairment losses on the assets related to Evergrande group held by some subordinate enterprises also had an adverse impact on the net profit of Shanghai Electric Group Company Limited(601727) 2021.
Accelerate the layout of new energy
As a traditional energy company, Shanghai Electric Group Company Limited(601727) in recent years, it has accelerated its transformation to new energy fields such as wind power, hydrogen energy and energy storage.
According to the performance express of Shanghai Electric Group Company Limited(601727) 2021, during the reporting period, the demonstration project of Huaneng Shidaowan high temperature gas cooled reactor nuclear power plant, the world’s first spherical bed modular high temperature gas cooled reactor nuclear power plant, which Shanghai Electric Group Company Limited(601727) participated in the construction, was successfully connected to the grid for the first time, and the No. 5 unit of Fuqing nuclear power plant, the world’s first reactor of “hualong-1” was officially put into commercial operation.
According to the semi annual report of Shanghai Electric Group Company Limited(601727) 2021, during the reporting period, its new installed capacity in the field of wind power equipment was the seventh in the world, and the new installed capacity at sea was the second in the world. In May 2021, Shanghai Electric Group Company Limited(601727) also spun off its holding subsidiary Shanghai Electric Wind Power Group Co.Ltd(688660) and listed on the science and innovation board, while Shanghai Electric Wind Power Group Co.Ltd(688660) is mainly engaged in the production, sales and engineering installation of wind power equipment.
Shanghai Electric Group Company Limited(601727) has also made early attempts in the field of energy storage. It has layout in four fields: lithium battery, liquid flow battery, fuel cell and retired battery system. In 2020, Shanghai Electric Group Company Limited(601727) acquired 28.39% of its equity by means of directional capital increase of 2 billion yuan to Shenzhen Yinghe Technology Co.Ltd(300457) which was interpreted by the industry as Shanghai Electric Group Company Limited(601727) plans to make efforts to the new energy sector. At the end of 2021, the Shanghai Electric Group Company Limited(601727) first fire storage combined frequency modulation project – Guangdong Yuedian Dapu power plant energy storage frequency modulation project was officially put into operation.
In addition, according to the enterprise investigation, at the beginning of this year, Shanghai Electric Group Company Limited(601727) also invested and established Shanghai SHENDIAN Green Power Technology Development Co., Ltd. with Shenneng group, which is jointly committed to the development of Hainan green power.
According to the data released by the national energy administration, the new installed capacity of thermal power in 2021 was 46.28 million KW, while that of wind power and photovoltaic exceeded 100 million KW. The future development trend of the energy industry will be to build a new power system with new energy as the main body.
Master supervisor of Xiamen University School of management Wu Wei, assistant professor of China Energy Policy Research Institute, said in an interview with Huaxia times: ” Shanghai Electric Group Company Limited(601727) in recent years, its layout in the field of new energy is mainly related to the energy transformation under the dual carbon goal. Shanghai Electric Group Company Limited(601727) currently occupies a certain market share in the field of wind power equipment, but it also faces fierce competition. There are two main considerations in the layout of energy storage: first, the energy storage industry is in the early stage of commercialization, with huge market growth potential, which may become a new growth point of the company’s business in the future, and second, there are already existing More than 20 provinces have made it clear that newly invested wind power generation projects need to be forcibly equipped with energy storage, and Shanghai Electric Group Company Limited(601727) can effectively coordinate the energy storage business with the existing wind power equipment business and launch a new solution of wind power + energy storage. “
