NARI Technology Co., Ltd. (600406.SS) Bundle
A Brief History of NARI Technology Co., Ltd.
NARI Technology Co., Ltd. was established in 2000, originating from the State Grid Corporation of China. Over the years, it has evolved into a pivotal player in the fields of electric power, automation, and smart grid technology. The company was listed on the Shanghai Stock Exchange in 2010, further enhancing its capital and market reach.
In 2019, NARI reported revenue of approximately ¥20.3 billion (around $2.9 billion), indicating a steady growth trajectory. This was an increase from ¥17.7 billion in 2018, reflecting a year-over-year growth rate of approximately 9.24%.
| Year | Revenue (¥ Billion) | Net Profit (¥ Billion) | Assets (¥ Billion) | Employees |
|---|---|---|---|---|
| 2017 | 15.6 | 1.5 | 24.3 | 5,000 |
| 2018 | 17.7 | 1.8 | 27.5 | 5,200 |
| 2019 | 20.3 | 2.0 | 30.0 | 5,500 |
| 2020 | 22.1 | 2.3 | 33.2 | 5,800 |
| 2021 | 24.4 | 2.5 | 36.5 | 6,000 |
By the end of 2020, NARI's net profit had reached ¥2.3 billion, indicative of a consistent increase in profitability. The company continued to invest heavily in research and development, allocating 6.5% of its total revenue towards R&D in 2019, which was crucial for innovation in smart grid systems.
Strategically, NARI has engaged in various international partnerships, with exports to over 30 countries including the United States, Germany, and Brazil. This global outreach is supported by their portfolio of over 1,000 patented technologies.
In 2021, NARI made headlines with the launch of its advanced integrated smart grid solutions, which positioned it favorably within the growing renewable energy sector. Market analysts noted that the global smart grid market is projected to reach $61.3 billion by 2026, growing at a CAGR of 20.6% from 2021.
As of 2023, NARI Technology Co., Ltd. reported a market capitalization of approximately ¥65 billion (around $9.3 billion), demonstrating its significant standing within the electrical equipment sector in China. The company actively participates in various government-led projects, bolstering its reputation as a key player in China's infrastructure development.
The commitment to sustainability is reflected in its initiatives, where NARI aims for a 30% reduction in carbon emissions in its operations by 2025, aligning with global environmental standards and improving their corporate social responsibility profile.
A Who Owns NARI Technology Co., Ltd.
NARI Technology Co., Ltd., listed on the Shanghai Stock Exchange under the ticker 600406, is a leading company in the electric power and automation industry. As of the latest financial filings, NARI Technology had a market capitalization of approximately RMB 43.9 billion ($6.7 billion) as of October 2023.
The ownership structure of NARI Technology is composed of several key stakeholders, predominantly institutional investors along with individual shareholders. Based on recent data:
| Shareholder | Ownership Percentage | Number of Shares | Investment Amount (RMB) |
|---|---|---|---|
| State Grid Corporation of China | 30.01% | 1,531,620,000 | 13.2 billion |
| China Life Insurance Company | 5.88% | 300,000,000 | 2.65 billion |
| Other Institutional Investors | 25.43% | 1,330,700,000 | 11.7 billion |
| Public Investors | 38.68% | 1,973,160,000 | 17.3 billion |
As a state-controlled enterprise, NARI Technology's largest shareholder is the State Grid Corporation of China, which plays a significant role in influencing the company's strategic decisions. This ownership reflects the broader trend within China's electric utilities sector where state-owned enterprises dominate.
For the fiscal year ended December 31, 2022, NARI Technology reported revenues of RMB 20.5 billion, reflecting a year-over-year increase of 12.4%. Net profit for the same period was approximately RMB 2.1 billion, yielding a net profit margin of around 10.2%.
In terms of dividends, the company declared a dividend of RMB 0.50 per share for the 2022 fiscal year, amounting to a total distribution of RMB 1.8 billion to shareholders.
Recent market performance has shown volatility, with shares trading within a range of RMB 20.00 to RMB 30.00 over the past year. The stock's price-to-earnings (P/E) ratio stands at 20.5, compared to the industry average of 18.0.
The next major corporate event is the upcoming annual general meeting scheduled for December 15, 2023, where shareholders will vote on critical proposals, including executive compensation and future capital expenditures.
NARI Technology Co., Ltd. Mission Statement
NARI Technology Co., Ltd., established in 1994, emphasizes a mission centered around innovation in electrical equipment, smart grid solutions, and energy management. The company aims to enhance efficiency and sustainability in energy production and consumption through cutting-edge technology.
As of 2023, NARI has reported a revenue of approximately RMB 28.1 billion, showcasing a year-on-year growth of 12% from the previous fiscal year. This growth reflects the company's commitment to advancing its core technologies and expanding its market penetration.
The mission statement articulates a dedicated focus on creating value for customers, stakeholders, and society while promoting sustainable development through technological innovation. NARI is deeply invested in research and development, allocating over RMB 2.5 billion in R&D for the last fiscal year, which represents approximately 8.9% of its total revenue.
| Year | Revenue (RMB billions) | R&D Investment (RMB billions) | R&D as % of Revenue |
|---|---|---|---|
| 2021 | 24.5 | 2.1 | 8.6% |
| 2022 | 25.1 | 2.3 | 9.2% |
| 2023 | 28.1 | 2.5 | 8.9% |
NARI aims to become a global leader in the energy industry by fostering innovative partnerships and focusing on the integration of artificial intelligence and renewable energy technologies into its products and services. The company operates in over 60 countries, underscoring its international presence and commitment to global energy solutions.
The mission also includes a pledge to uphold high standards of corporate social responsibility (CSR). For instance, in 2022, NARI was recognized with the "China Excellent Corporate Citizen" award, reflecting its commitment to ethical business practices and community engagement. The company’s initiatives in sustainability led to a reduction of carbon emissions by approximately 30% over three years, aligning with global environmental goals.
Furthermore, NARI’s strategic goals align with the national agenda for smart grid development in China, forecasting total investments in smart grid technology to reach over RMB 1 trillion by 2030. The company’s technological innovations are positioned to capitalize on this market growth.
In conclusion, NARI Technology Co., Ltd. advocates for a mission that not only focuses on financial profitability but also emphasizes sustainable practices, innovation, and global expansion within the energy sector. Its comprehensive approach combines financial performance with a strong commitment to environmental stewardship and social responsibility.
How NARI Technology Co., Ltd. Works
NARI Technology Co., Ltd., a publicly traded company on the Shanghai Stock Exchange under the ticker 600406, focuses on power system automation and smart grid technology. The company integrates research and development, manufacturing, and service to enhance energy efficiency and reliability across various sectors.
As of 2023, NARI Technology reported revenue of approximately RMB 10.35 billion, reflecting a year-over-year growth of 8.6%. The company's net profit attributable to shareholders for the financial year was around RMB 1.18 billion, marking an increase of 12.5% from the previous year.
| Financial Metrics | 2023 | 2022 | Year-over-Year Change |
|---|---|---|---|
| Revenue (RMB billion) | 10.35 | 9.52 | +8.6% |
| Net Profit (RMB billion) | 1.18 | 1.05 | +12.5% |
| Gross Margin | 30% | 29% | +1% |
| Operating Income (RMB billion) | 1.45 | 1.30 | +11.5% |
NARI Technology's operations are split across several key business segments: power automation, electrical engineering, and smart grid systems. The power automation segment is the largest, contributing approximately 65% of total revenue, while electrical engineering accounts for around 25% and smart grid systems make up 10%.
The company's investment in R&D is significant, with approximately RMB 1.02 billion allocated in 2023, representing about 9.8% of total revenue. This commitment to innovation has resulted in over 200 patents filed in recent years, strengthening NARI's competitive edge in the smart grid market.
Furthermore, NARI Technology has established partnerships with major companies and research institutions, enhancing its capabilities. For instance, collaborations with State Grid Corporation of China and various universities serve to bolster its technological advancements in automation and grid management.
Geographically, NARI's revenue streams are diverse, with a significant portion derived from international markets. As of 2023, approximately 30% of its revenue comes from overseas operations, particularly in Southeast Asia and Europe, where demand for smart grid solutions is rapidly increasing.
The company’s stock performance has been robust, with shares increasing by over 35% in the last two years, reflecting confidence in its growth trajectory and solid financial performance. The P/E ratio currently stands at around 28.5, indicating a premium valuation relative to its earnings growth potential.
NARI Technology's ability to adapt to market trends and technological advancements positions it favorably within the energy sector. The continued push towards renewable energy and smart grid integration suggests a promising outlook for the company in the upcoming years.
How NARI Technology Co., Ltd. Makes Money
NARI Technology Co., Ltd. generates revenue primarily through the design, manufacturing, and sales of electrical equipment and smart grid solutions. The company operates in various segments, including power automation, power quality, and energy management, which contribute to its financial performance.
Revenue Breakdown
As of the latest fiscal year, NARI reported a total revenue of approximately RMB 28.12 billion (around $4.3 billion USD). The breakdown by segment is as follows:
- Power Automation: RMB 11.5 billion (around $1.77 billion USD)
- Smart Grid Solutions: RMB 9.8 billion (around $1.5 billion USD)
- Power Quality: RMB 4.2 billion (around $650 million USD)
- Energy Management: RMB 2.62 billion (around $400 million USD)
Key Financial Metrics
For the financial year ended December 2022, the company reported the following key financial metrics:
| Financial Metric | Value |
|---|---|
| Total Revenue | RMB 28.12 billion (approximately $4.3 billion USD) |
| Net Income | RMB 3.45 billion (approximately $536 million USD) |
| Gross Margin | 34.5% |
| Operating Margin | 14.5% |
| Total Assets | RMB 50.4 billion (approximately $7.77 billion USD) |
| Total Liabilities | RMB 32.5 billion (approximately $5.04 billion USD) |
Market Position
NARI has established itself as a market leader in China, holding approximately 17% of the domestic market share in power automation solutions. The company has increased its international footprint, with exports accounting for around 25% of total revenue as of 2022.
Strategic Partnerships and Innovations
The company has strategically partnered with various tech firms to enhance its smart grid offerings. In 2022, NARI implemented over 150 projects focused on the Internet of Things (IoT) in energy management, contributing significantly to revenue growth. These innovations are expected to drive a projected revenue increase of 15% annually over the next five years.
Investments in R&D
NARI invests heavily in research and development, with approximately RMB 1.2 billion (around $185 million USD) allocated in 2022 alone, focusing on smart technologies and sustainable energy solutions.
Industry Challenges and Opportunities
While facing competition from other power companies, NARI leverages its technological advancements to expand its service portfolio. The global push towards renewable energy provides a substantial opportunity, with the company anticipating that the segment will grow by 20% in the next few years.
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