(14 March 2017, Hong Kong) Sun.King Power Electronics Group Limited ("Sun.King Electronics" or the "Company", together with its subsidiaries collectively known as the "Group") (Stock Code: 580.HK) announced its annual results for the twelve months ended 31 December 2016 (the "Period"). Profit attributable to owners of the Company for the Period surged by 131% year-on-year to approximately RMB 143 million on the rapid growth in revenue from power transmission sector. Basic earnings per share amounted to RMB 10.37 fen, representing a significant increase of 129% from a year ago.
Revenue from power transmission sector in the Period climbed 84% year-on-year to approximately RMB550 million, as revenue from ultra high-voltage direct current ("UHVDC") transmission and flexible direct current ("DC") and alternating current ("AC") transmission operations jumped 106% and 122% respectively from the previous year. As revenue from this higher margin business accounted for 64% of the Group’s total revenue, its overall gross profit margin increased from 34% in 2015 to 39% in 2016.
Investment in UHVDC transmission projects has increased rapidly since 2015. As a result, the Group's our UHVDC transmission projects, i.e., "Jinbei-Nanjing", "Jiuquan-Hunan", "Ximeng-Taizhou" and "Shanghai Temple-Shandong", were delivered in 2016. Moreover, it signed the contracts for three new projects ("Zhundong-Wannan", "Dianxibei-Guangdong" and "Jarud-Shandong") in 2016.
Meanwhile, continued breakthroughs were made in China's flexible power transmission technology in 2016. They included successful development of the first domestically-produced high-voltage direct current (HVDC) circuit breakers, the commencement of development in the Unified Power Flow Controller (UPFC) with the highest voltage and the largest capacity in the world. Such developments created a new market for the Group's power and electrical components.
Mr. Xiang Jie, Chairman of Sun.King Electronics, commented, "While China steps up efforts in developing clean energy and promoting its generation and applications, power electronics technology becomes a pivotal factor for energy technology development. As an influential supplier and integrator of electric power system solutions, Sun.King Electronics will capture tremendous opportunities arising in the market and leverage our technological leadership to sustain rapid growth of our operations."
According to the "13th Five-year Plan for Power Industry Development", the "Roadmapfor Made in China 2025" and the "Action Plan for Energy Technology Innovation (2016-2030)", China will accelerate the development of UHVDC transmission network, vigorously expand intelligent power grids and promote the development of a global energy network.
During the "13th Five-year Plan Period", China will strive to construct the UHVDC transmission grid lines for the "West-to-East Power Transmission Project", which will supply additional power of 130 million kW per year to the country. Moreover, domestic grid companies have planned to develop a number of cross-border UHVDC transmission grid lines in coherent with the “One Belt and One Road” strategy. These favourable developments will drive robust growth in UHVDC transmission projects over the prolonged period.
Meanwhile, in view of the needs for grid connection and clean energy consumption, the number and scale of flexible DC transmission projects are expected to expand significantly in the future. With growing importance of clean energy in power generation, power grids in different regions will face the decline in regulating peak capacity. Flexible DC transmission technology facilitates interconnection between AC grids and their power adjustment.
Therefore, investment in flexible DC transmission projects are set to thrive in the “13th Five-year Plan Period”. The Group is expected to get the orders from Zhangbei-Beijing flexible DC transmission project, a demonstration project of energy Internet, and Jinsha River downstream mixed DC transmission project this year. They are scheduled to be delivered in 2018.
Mr. Xiang Jie said, “The Group strives to help China enhance its electric energy efficiency and attaches great importance to technology research and development. We established a power electronics technology research and development center in Europe and Intelligent Power Grid Research Institute in Wuhan. In addition, we cooperated with various famous research institutions, such as Tsinghua – China Smart Energy Network Research Institutes. While carrying on the research and development of existing products, the Group steps up efforts to enhance the standards of power system design and project execution capabilities. During the reporting period, remarkable progress was made in the research and development of anode saturation resistors, IGBT drivers, low to medium-voltage DC circuit breakers, grid online monitoring systems and power supply devices of electric railways between regions.”