Analysis of China Electric Transmission and Transformation Equipment Industry 2008

Analysis of China Electric Transmission and Transformation Equipment Industry 2008

In terms of the Chinese economic development and growing electricity consumption in urban and rural, the growth of China's electricity consumption has continued increasing. The power consumption in China recorded 3.2 trillion kwh, an increase of 14.42 per cent year-on-year in 2007 and 523.9 billion kwh in the first two months 2008, up 11.93 per cent year-on-year. The rising volume of power consumption has driven the installed power generation capacity continued to grow, additional capacity 107 million kilowatts in 2006 and 117 million kilowatts in 2007, and 95 million kilowatts is expected in 2008.

The development of power station has fulfilled a significant achievement in China in the last 30 years, which also promoted the progress of China's power grid construction. In addition, the sustainable development of extra high-voltage AC-DC large-capacity transmission technology has established a significant foundation for a long-time development of power grids construction. According to the forecast, the total investment of China’s power grid will be 290 billion yuan in 2008, 350 billion yuan in 2009 and 420 billion yuan in 2010, the average annual growth rate of 20 per cent.

According to the State Grid Corporation of China’s planning (SGCC), in the "11th Five-Year Plan" period, 1.3 trillion yuan will be invested on power grid construction, which is double than the "10th Five-Year plan" period; an average 200 billion yuan per year will invest on state power grid, which will bring more opportunities for the development of transformers, mutual inductor, high voltage switches, surge arrester, electric wire and cable manufacturing sections. In 2007 the additional extra above 220-kilovolt transmission line was 41,500 km, and above 220-kilovolt substation equipments capacity was 188.48 million KVA. In the first two months of 2008, the additional extra above 220-kilovolt substation equipment capacity was 13.68 million KVA and transmission line was 1,110 km.

In 2007, the pressure of gross profit margin on electric transmission and transformation equipment sector was less than power generation equipment sector. The gross profit margin of electric transmission was relatively stable in 2007 and a slight increase in the fourth quarter 2007. But, the gross margin of power generation equipment sector in the fourth quarter of 2007 dropped significantly from 25 per cent to 19 per cent.

Contents

1 Overview of China's power industry development

2 Analysis of China electric transmission and transformation equipment industry
2.1 Brief of China electric transmission and transformation equipment
2.2 The cost of transmission equipment

3 The great investment of power grids improves the performance of transformation equipment sector
3.1 The extra investment of power grid
3.2 The UHV power transmission project
3.2.1 The project of power transmission from West to East during "11th Five-Year Plan" period
3.2.2 The sustainable development of extra high-voltage AC-DC large-capacity transmission technology
3.2.3 The broad market of UHV equipment
3.3 The advantage of leading power transmission equipment enterprises
3.3.1 The large market share
3.3.2 The high status in China electric transmission and transformation equipment industry
3.4 The reconstruction of disaster area’ power grid after Southern China heavily snowstorm in Feb 2008

4 The impact of rising raw material prices on power equipment industry
4.1 Power equipment
4.2 Transmission and Transformation equipment
4.3 Power generation equipment

5 Key Companies
5.1 Shanghai Zhixin Electric
5.2 Sieyuan Electric
5.3 TBEA
5.3.1 Performance 2007
5.3.2 Transformer sector


Figure Index
The Growth of China's Electricity Consumption
Comparison the Growth Ratio of Electricity Generation of Different Industries
Proportion of Electricity Consumption of Different Industries
The Growth of China's Installed Power Generation Capacity
Category of Power Equipment Industry
The Growth of above 220-kilovolt Transmission Line and Substation Capacity
The Growth of Power Grid Investment
The Market Share of Transformer Manufacturers in the State Grid Bid Inviting
The Market Share of Combination Electrical Appliance manufacturers in the State Grid Bid Inviting
The Market Share of Isolation Switch Manufacturers in the State Grid Bid Inviting
The Price Trend of LME Copper and Aluminium in Every Three-Months
The Price of Oriented Silicon Steel
The Gross Profit Margin of Power Generating Equipment and Transmission Equipment Sectors 2007
The Main Business Revenue Structure of TBEA 2007
The Main Business Profit Structure of TBEA 2007
The Market Share of State Power Grid transformer Bid Inviting 2006-2007


Table Index

The UHV Demonstration Project
The Sensitivity analysis between Raw Materials Price and Cost of products
The Operating Revenue and Net Profit of TBEA
The TBEA’s Successful Bid of UHV projects