Sieyuan Electric Co., Ltd. (002028.SZ) Bundle
From its founding in December 1993 to a Shenzhen Stock Exchange debut on August 5, 2004 (stock code 002028), Sieyuan Electric has grown into an international power-technology player whose trajectory includes a 25.8% CAGR since listing and 12.12 billion RMB of new contract orders in 2022; restructured into a joint‑stock company in December 2000 with a registered capital of 766.042782 million yuan and 769,926,532 shares issued by the end of 2022, the firm now combines five R&D hubs and over ten manufacturing sites across China, exports to more than 100 countries, and in 2024 reported annual revenue exceeding 3.2 billion USD while ramping R&D spending (notably 150 million USD in 2024) and expanding into energy storage through the 2023 acquisition of GMCC-positioning its product mix (transformers, switchgear, EPC, batteries, supercapacitors) and integrated services to serve utilities, new energy, rail, petrochemical and data center customers worldwide.
Sieyuan Electric Co., Ltd. (002028.SZ): Intro
History- Founded in December 1993, Sieyuan Electric Co., Ltd. (002028.SZ) began as a specialist in power technology R&D, equipment manufacturing, and engineering services.
- In December 2000 the business restructured into a joint-stock limited company to strengthen corporate governance and operational efficiency.
- Sieyuan Electric was listed on the Shenzhen Stock Exchange on August 5, 2004 (stock code: 002028), a major milestone enabling capital access and accelerated growth.
- From listing through 2022 the company recorded a compound annual growth rate (CAGR) of 25.8%, reflecting sustained expansion and market penetration.
- In 2022 Sieyuan secured new contract orders totaling RMB 12.12 billion, signaling robust demand for its products and engineering services.
- Recognitions include National Key Torch Plan High-tech Enterprise and designation among China's Top Ten Energy Equipment Private Companies.
- Corporate form: Joint-stock limited company (post-2000 restructuring) with shares traded on the Shenzhen Stock Exchange (002028.SZ).
- Shareholder mix: a combination of strategic/industry investors, institutional shareholders, management/founders and public/free float on the exchange.
- Governance: board of directors, supervisory board and standardized compliance systems consistent with listed-company rules; restructuring in 2000 strengthened governance frameworks.
- Mission: Deliver advanced power system equipment, integrated solutions and engineering services that enhance grid reliability and operational efficiency.
- Vision: Be a leading global supplier of intelligent power transmission and distribution equipment and systems.
- Core values: innovation-driven R&D, quality manufacturing, customer-focused engineering services, safety and sustainability.
- Product categories: medium- and high-voltage switchgear and transformers, automated substation equipment, power distribution automation, and turnkey engineering packages.
- R&D model: in-house research centers focused on power electronics, intelligent control, digital substations and customization for utility/industry clients.
- Manufacturing & quality: vertically integrated production lines for key components, standardized quality control and test laboratories to meet grid and industry standards.
- Engineering & services: project design, EPC (engineering, procurement, construction) execution, installation, commissioning and long‑term O&M/service contracts.
- Equipment sales: primary revenue from manufacturing and selling switchgear, transformers and substation components to utilities, industrial and new-energy customers.
- Project contracting: revenue from EPC and turnkey projects (design + supply + installation + commissioning) for substations and grid upgrades.
- After-sales & services: maintenance, spare parts, upgrades, long-term O&M contracts and performance guarantees.
- Technology & system solutions: software, digital substation systems, automation platforms and integration services that carry higher margin profiles.
| Metric | Value / Note |
|---|---|
| Listing date | August 5, 2004 (Shenzhen Stock Exchange, 002028.SZ) |
| CAGR since listing (to 2022) | 25.8% |
| New contract orders (2022) | RMB 12.12 billion |
| Corporate form | Joint-stock limited company (since Dec 2000) |
| Industry recognitions | National Key Torch Plan High-tech Enterprise; China's Top Ten Energy Equipment Private Company |
- Market drivers: grid modernization, renewable integration, distributed generation, and electrification demand large-volume substation and automation investments.
- Competitive advantages: integrated R&D-to-manufacturing capability, proven EPC execution, specialized products for intelligent substations and recognized industry credentials.
- Risks: project concentration, commodity price exposure for major components, execution/timing risks on large-capital projects, and competitive pressure from domestic and international suppliers.
Sieyuan Electric Co., Ltd. (002028.SZ): History
Sieyuan Electric Co., Ltd. (002028.SZ) traces its evolution from a regional power-equipment manufacturer to a diversified energy-technology group with growing emphasis on energy storage and sustainable solutions. Strategic moves since 2020 have combined organic product development with targeted acquisitions to expand market reach and technology capabilities.- Registered capital (as of 2022-12-31): 766.042782 million yuan
- Total shares issued (as of 2022-12-31): 769,926,532 shares
- Public listing: Shenzhen Stock Exchange (ticker 002028.SZ)
- 2023: Became controlling shareholder of GMCC to enter/strengthen the supercapacitor and energy-storage segment
| Metric | Value | Reporting Date / Note |
|---|---|---|
| Registered capital | 766.042782 million CNY | As of 2022-12-31 |
| Shares outstanding | 769,926,532 | As of 2022-12-31 |
| Exchange | Shenzhen Stock Exchange | Ticker 002028.SZ |
| Key acquisition | Controlling stake in GMCC | Completed in 2023 - strategic for supercapacitors/energy storage |
- Ownership structure: decentralized - diverse mix of institutional and individual investors providing liquidity and governance balance
- Strategic impact: GMCC acquisition expected to bolster capabilities in supercapacitors and broader energy-storage solutions, aligning with sustainable-energy focus
- Corporate flexibility: Public listing and dispersed shareholding support capital access for expansion and adaptable decision-making
Sieyuan Electric Co., Ltd. (002028.SZ): Ownership Structure
Sieyuan Electric's mission - 'Smarter Power, Better Life' - drives product and market choices, R&D priorities and customer engagement. The company explicitly aims to become a global leader in the electrical industry by advancing power technology and infrastructure, guided by core values that shape its culture and decision-making.- Mission: Smarter Power, Better Life - customer-centric, innovation-led solutions.
- Vision: Global leadership in power technology and infrastructure.
- Core values:
- Delivering success to customers
- Fostering innovation
- Honesty and integrity
- Openness and collaboration
- Self-criticism and reflection
- Diligence and perseverance
- R&D commitment: invested 150 million USD in 2024 to accelerate product development and digitalization of grid solutions.
| Attribute | Detail |
|---|---|
| Listing | Shenzhen Stock Exchange - 002028.SZ |
| R&D spend (2024) | 150 million USD |
| Strategic focus areas | High-voltage switchgear, grid automation, renewable-integration equipment |
| Corporate culture drivers | Customer success, innovation, integrity, collaboration, reflection, perseverance |
- How the mission and values influence operations:
- Product roadmaps prioritize efficiency and digital grid compatibility.
- Customer-centric services and O&M offerings support long-term contracts and recurring revenue.
- Continuous R&D funding (150M USD in 2024) underpins new product introductions and intellectual property growth.
Sieyuan Electric Co., Ltd. (002028.SZ): Mission and Values
Sieyuan Electric Co., Ltd. (002028.SZ) positions itself as a full‑spectrum provider of power system equipment and integrated engineering services, with a mission to 'enable safe, efficient and green power transmission and distribution through independent innovation and system integration.' Core values center on safety, reliability, technological leadership, customer focus and sustainable development. How It Works Sieyuan operates an integrated model combining R&D, manufacturing, EPC and lifecycle services to deliver turnkey power solutions for utility and industrial clients worldwide.- R&D and innovation: Five principal R&D hubs located in Shanghai, Beijing, Nanjing, Nantong and Changzhou drive product development, testing and system integration.
- Manufacturing footprint: Over ten manufacturing and assembly facilities across Shanghai, Beijing, Nanjing, Nantong, Changzhou and Wuxi enable localized production and scale.
- Product portfolio: Comprehensive offering including primary equipment (transformers, switchgear), secondary equipment (protection, relays, control cabinets), power electronics (STATCOM, converters), and EPC services.
- End‑to‑end delivery: Design → manufacturing → installation → commissioning → operation & maintenance, plus EPC contracting for substations, distribution projects and new energy interconnection.
- Target industries: Electric power utilities, new energy (wind/solar), metallurgy, rail transit, petrochemical, coal, ports and data centers.
- Products sales: High‑voltage and medium‑voltage equipment sold to utilities and industrial customers.
- EPC contracts: Turnkey substation and distribution projects covering design, civil works coordination, equipment supply and commissioning.
- After‑sales services: Long‑term O&M contracts, spare parts and retrofit/upgrades.
- Power electronics and systems integration: Higher‑margin modules for renewable interconnection, reactive power management and data center power quality.
| Metric | Figure |
|---|---|
| R&D hubs | 5 (Shanghai, Beijing, Nanjing, Nantong, Changzhou) |
| Manufacturing & assembly sites | 10+ (including Wuxi) |
| Employees | ~6,500 |
| Annual revenue (approx.) | RMB 8.2 billion |
| Net profit (approx.) | RMB 350 million |
| R&D spend (approx.) | RMB 400 million (~4.9% of revenue) |
| Market exposure | Domestic utilities, renewables, industrials, export projects across Asia/Africa/Latin America |
- Investment focus: Significant annual R&D allocation drives development of advanced protection systems, digital substations, power electronics and converter technologies.
- Intellectual property: Portfolio includes patents in high‑voltage equipment, converter topologies and protection algorithms that differentiate product capabilities and allow higher value capture.
- Collaborations: Joint projects with universities and research institutes to accelerate technology transfer and certification for grid codes and renewable integration standards.
- Pre‑project: Site studies, grid connection analysis, feasibility and customized design.
- Execution: In‑house manufacturing, factory acceptance testing, coordinated logistics and on‑site installation teams.
- Post‑commissioning: Performance testing, warranty support, predictive maintenance using condition monitoring systems and long‑term service agreements.
- Utilities: Substation equipment, grid automation and large EPC substation packages.
- New energy developers: Converter stations, reactive power compensation, and grid‑code compliance solutions for wind/solar farms.
- Industrial & critical facilities: Power quality systems for metallurgy, petrochemical plants and data centers.
- Transportation: Electrification and traction substations for rail transit projects.
Sieyuan Electric Co., Ltd. (002028.SZ): How It Works
Sieyuan Electric Co., Ltd. (002028.SZ) operates as an integrated power equipment and solutions provider. Its business model combines manufacturing of core power hardware, project delivery via EPC, and growing involvement in energy storage and new-energy components. Revenue is generated across multiple product lines, services and geographies, enabling exposure to different segments of the power sector.- Core equipment sales: transformers, switchgear, circuit breakers and protection & control systems sold to utilities, industrial and commercial customers.
- EPC services: turnkey engineering, procurement and construction for power transmission, distribution and substation projects.
- Energy storage & batteries: lithium-ion battery energy storage systems (BESS) and automotive low-voltage lithium-ion batteries.
- Advanced components: supercapacitors and related power electronics following the 2023 acquisition of GMCC.
- Export business: products and project services delivered to more than 100 countries and regions.
- Equipment manufacturing - volume + unit ASP: large orders for transformers/switchgear drive predictable bookings; margins depend on scale, materials and product mix.
- EPC contracting - project-based revenue recognition: margins reflect engineering complexity, supply chain execution and contract terms.
- Energy storage & automotive batteries - systems & modules: recurring revenue from systems integration, plus aftermarket/service and cell/module sales.
- New components (supercapacitors) - technology-driven markets: growth-oriented revenue with higher R&D intensity and strategic partnerships.
- International sales - currency exposure & localization: higher-margin markets and diversified demand profiles across transmission/distribution and renewables.
| Revenue Stream | Primary Products/Services | Revenue Drivers | Typical Margin Profile |
|---|---|---|---|
| Power Equipment | Transformers, switchgear, circuit breakers | Utility CAPEX, grid upgrades, industrial demand | Mid-range gross margins (equipment scale dependent) |
| EPC Services | Substations, distribution networks, turnkey projects | Project wins, engineering capability, procurement efficiency | Lower gross margin but higher EBITDA contribution via scale |
| Energy Storage & Batteries | BESS, automotive low-voltage Li-ion batteries | Renewables integration, peak-shaving, EV ecosystem | Variable - improving with scale and vertical integration |
| Supercapacitors & Components | Supercapacitor modules, power electronics (post-GMCC) | New applications in power stabilization, transport, industry | High-growth, investment-heavy, margin expansion expected over time |
| International Sales | All product lines exported | Global project wins, dealer/distributor networks | Can be higher due to specialization and fewer domestic price constraints |
- Export footprint: products sold to over 100 countries and regions, supporting diversified top-line growth.
- 2023 strategic M&A: acquisition of GMCC to bolster supercapacitor and advanced energy component capabilities.
- Energy storage investment: active commercialization of lithium battery energy storage systems and participation in utility-scale BESS tenders.
- Product breadth: from EHV transformers and GIS to medium-voltage switchgear, low-voltage distribution, and battery systems - enabling cross-selling within projects.
- Order intake → production & procurement → delivery/installation → final acceptance → invoicing & collections; EPC contracts often include staged payments and retention.
- After-sales & service contracts (maintenance, spare parts, performance guarantees) provide recurring revenue and improve life-cycle margins.
- Localization and global supply chains reduce lead times and input cost volatility for export projects, protecting margins.
- R&D and acquisitions (e.g., GMCC) create pathway to higher-margin, technology-led product lines (supercapacitors, power electronics).
Sieyuan Electric Co., Ltd. (002028.SZ): How It Makes Money
History & Ownership- Founded in 1988, Sieyuan Electric grew from a regional switchgear manufacturer into a global energy equipment and automation provider.
- Publicly listed on the Shenzhen Stock Exchange (002028.SZ) in 2007; major shareholders include institutional investors and company insiders, with free float representing roughly 55-65% of shares.
- Management emphasizes R&D-led expansion and strategic partnerships with utilities, OEMs, and EPC contractors.
- Core revenue drivers: grid equipment sales, turnkey substation projects, renewable integration solutions, and industrial automation systems.
- Services and recurring revenue: long-term maintenance contracts, system upgrades, digital grid software subscriptions and consulting.
- International project contracting contributes materially - installations in more than 100 countries provide geographic diversification and export revenues.
| Metric | Value (2024) |
|---|---|
| Revenue | USD 3.2+ billion |
| Gross Margin | ~25-28% |
| Operating Margin | ~8-12% |
| R&D Spend | ~4-6% of revenue |
| Export / Overseas Revenue | ~30-35% of total |
| Installed Countries | More than 100 |
- Equipment manufacturing: sale of transformers, switchgear (including AIS/GIS), ultra-high-voltage components and protection & control devices.
- Project EPC and turnkey contracts: end-to-end substation construction, UHV transmission projects and microgrid deployments billed as milestone payments.
- Renewable integration: inverters, HVDC interfaces, energy storage systems and grid-stabilization solutions sold to wind, solar and storage developers.
- Software & Services: SCADA/DMS platforms, digital twin services, predictive maintenance subscriptions and multi-year O&M contracts.
- Recognized global leader in smart grid, ultra-high-voltage systems, renewable energy integration and industrial automation.
- Strong presence: installations across utilities, renewable developers and industrial clients in 100+ countries.
- Quality and compliance: products and projects adhere to IEEE, CSA and IEC standards, facilitating international bidding and certification.
- Innovation focus: sustained R&D investment positions the company to capture growth in grid modernization, electrification and decarbonization programs.
- Energy transition tailwinds: accelerating renewable builds, transmission upgrades and storage deployments globally.
- Digitalization: rising demand for grid automation, software-as-a-service and asset-management solutions increases recurring revenue potential.
- International expansion: proactive market entry strategies in Africa, Southeast Asia, Latin America and the Middle East supporting export revenue growth.
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