North Star's distribution of power grid news: In the short term, it seems that Jinzhi Technology's efforts in the new energy field cannot fundamentally change its business structure. Today's Jinzhi Technology's biggest business label lies in the field of smart electricity, including new energy generation, thermal power plants, transmission and transformation, distribution automation and protection, power engineering design and general contracting, covering various industrial chains of smart grids except for electricity intelligentization.
Looking back at history, it is not difficult to find that the company also started from the front-end power generation end of the power system. Through a series of capital operations and business cooperation, the company has gradually achieved coverage in the field of smart grids, forming import substitution. To some extent, the growth of Jinzhi Technology from small to large can reflect a basic development path of similar enterprises in China in recent years.
Before going public, Jinzhi Technology had been engaged in fast switching systems for power generation in its early years. Power plants sometimes need to quickly switch from high voltage to low voltage at the power generation end. If the fast switching system is not qualified and causes problems with the buffer link, it can cause physical impact on the power grid, or even power outage, affecting power supply safety.
The fast cutting system is a combination of software and hardware, with software at its core. Originally, it mainly relied on imports, such as General Motors in the United States and Siemens. "The fast switching system was easy to use but not easy to use. The experimental results on the spot were immediate, and the company's similar products had a significant price advantage compared to imported products. Therefore, it quickly broke the foreign monopoly and the company quickly became the industry leader in this area, with a market share of over 90%, basically covering all areas." Li Jian introduced that the company's shortcomings in the power generation field also began to be exposed, Due to the fact that fast switching systems are not consumables and the current environment in China is no longer suitable for the construction of large power plants, the growth potential of this business is inevitably challenged. "At present, the revenue of this type of business is over 200 million yuan per year, with the main increase coming from the construction of new power plants in the thermal power and new energy fields, as well as the construction of new power systems in industries such as petrochemicals, and the upgrading and renovation of existing customers. This type of business will form a relatively stable growth rate of 20% every year, which is not realistic and exceeds expectations."
From the current business structure, it is not excessive to say that the distribution field is the core business of Jinzhi Technology's power sector. This is closely related to the development of Jinzhi Technology and the country's investment in smart grids. The first important time point for the company's business in this category was in 2007, when the company won the bid for the State Grid Corporation of China's key demonstration application project - the Tianjin Chenfu 220kV Intelligent Substation Project. This is the first fully intelligent digital substation in China, and the project was officially put into operation in 2009. Li Jian introduced that the characteristics of intelligent substations are firstly unmanned, fully digital and intelligent operation management, and secondly, faults can be automatically repaired through reserved channels and other methods. At present, the main companies at the same business level as Jinzhi Technology are Sifang Electric and Nanrui Jibao, a subsidiary of Guodian Nanrui Group.
This is also a key area for the country's future investment. According to public information, State Grid of China will build 1400 smart substations in 2015. Industry estimates that during the 13th Five Year Plan period, there will be 8000 intelligent substations of 110KV and above, with 750kV, 500kV, 220kV, and 110kV intelligent substations accounting for 0.5%, 5%, 35%, and 59.5%, respectively. According to the calculation standards of State Grid of China, 750kV, 500kV, 220kV, and 110kV intelligent substations are included in the intelligent investment of the power grid in proportion to 10%, 10%, 16%, and 20% of the static investment of the project. Secondary equipment generally accounts for 10% of the investment in smart substations. According to the conventional investment total and calculated in corresponding proportions, during the 13th Five Year Plan period, the investment in secondary equipment and monitoring equipment of intelligent substations with voltage levels above 110kV will reach a scale of billions. It can be said that Jinzhi Technology will face a relatively certain business cycle in this field.
From the latest merger and acquisition actions of Jinzhi Technology, it can be seen that the company is optimistic about the future of the intelligent substation field and has made significant investments. On September 12, 2015, Jinzhi Technology announced that the company plans to invest 68 million yuan to acquire and increase its capital and shares in Zhongdian Xinyuan. After the acquisition and expansion are completed, the company will hold 51.01% of the equity in Zhongdian Xinyuan and become the controlling shareholder of Zhongdian Xinyuan. According to the data, Zhongdian Xinyuan was established in 2009 and is a professional enterprise engaged in the design, manufacturing, sales, installation, and service of modular substations (including vehicle mounted mobile substations), intelligent high-voltage combination appliances, power automation communication technology, and power system automation devices.
In the view of Jinzhi Technology, the core competitiveness of Zhongdian Xinyuan lies in its further modular transformation on the basis of the current intelligent substation, making it more in line with user needs. Modular substations have been in the industry for a long time and have been widely used in developed countries. However, due to the lack of application scenarios in China before, downstream operations have been delayed. The biggest feature of modularization is that it solves the problem of scattered industrial transformation Electricity demand. " A power system insider pointed out to a reporter from China Securities News that modular substations have much lower construction costs compared to traditional substations as they are all completed on-site. Moreover, due to its modular operation, if the corresponding module encounters problems, it can be replaced directly. The core challenge for enterprises lies in whether the coupling between modules can be smooth, and whether the assembled devices can maximize their utility. However, in the short term, this type of business can only form partial substitution, and it is unlikely to have too much volume.
Modular intelligent substations can be considered as a new phenomenon among new things in China. In the fourth centralized bidding for materials of State Grid Corporation of China in 2013, the first appearance of a standard intelligent substation - prefabricated modular secondary combination equipment. There are a total of 6 stations and 100 sets of equipment in this bidding. Li Jian told a reporter from China Securities News that this type of power station only takes 1-3 months from construction to operation, while the construction period of traditional substations of the same scale is 7-12 months.
Moreover, the investment cost is reduced by nearly 20% compared to the previous intelligent substations. The investment in a substation is around tens of millions or even tens of millions of yuan, and the 20% cost savings are still very considerable. The launch of modular substations has also changed the existing ecology of the industry.
The original construction of the substation was determined by the state, and then it was determined who would provide the primary equipment and who would provide the secondary equipment. Finally, carry out joint debugging. If there is a problem, contact the manufacturer of the primary equipment for the primary equipment, and contact the manufacturer of the secondary equipment for the secondary equipment. This also leads to some situations of mutual buck passing, resulting in low communication efficiency. In fact, some customers have a high demand for customization, such as some industry users and individual development zones. At present, Sifang Electric is also exploring in this field, and Terui De is also involved in similar businesses. However, the products and service characteristics of Zhongdian Xinyuan are very different from those of industry enterprises, and its advantages are also obvious. The industry coverage is also good The high gross profit in the power sector makes it occupy the most important position in Jinzhi Technology's sector. With revenue scale almost equal to the company's other business, Smart City, the power sector contributes 70% of the company's profits.
The Action Plan for Distribution Network Construction and Renovation (2015-2020) proposes that from 2015 to 2020, the investment in distribution network construction and renovation shall not be less than 2 trillion yuan, of which the investment in 2015 shall not be less than 300 billion yuan, and the cumulative investment during the 13th Five Year Plan period shall not be less than 1.7 trillion yuan. Jinzhi Shengdong Company, acquired by the company at the end of 2013, is a high-tech enterprise specializing in distribution network automation business. Its core founder, Professor Liu Dong, is also one of the top experts in the domestic distribution network field. In the future, the development of the company's distribution network automation business may experience explosive growth with the accelerated investment in national distribution network construction.