Far East Smart System boosts China’s Nuclear Power Renaissance
Recently, China’s nuclear power industry has seen a new round of recovery with the approval of four nuclear power units that are planned to adopt fusion Hualong One and put an end to three years of zero approvals. It is reported that the approved projects are No. 1 and No. 2 units of phase I of Zhangzhou nuclear power project, China National Nuclear Corporation (CNNC), and No. 1 and No. 2 units of phase I of Huizhou Taipingling nuclear power project, China General Nuclear Power Corporation (CGN). If the investment of one nuclear power unit is 20 billion, then, 4 units will bring 80 billion. Thus, nuclear power industrial chain company is expected to usher in new opportunities for industry development.
Smarter Energy participated in the construction of Hualong One
Hualong One is a masterpiece of China’s nuclear power technology and experience over the years. Anhui Cable Co., Ltd. (Anhui Cable for short), a subsidiary of Far East Smarter Energy Co., Ltd. (Smarter Energy for short, stock code: 600869) has continuously promoted the construction of the first unit of “Hualong One” with the intelligent manufacturing technology and innovation ability of the whole series of nuclear class cables, broken the technical barriers of nuclear class cables, and helped to realize the localization of key equipment in nuclear power plants. At the same time, Anhui Cable seized the national strategic opportunities of the Belt and Road Initiative and successfully exported Hualong One nuclear class cable to Pakistan, becoming the first order of globalization of China’s third generation nuclear power. On New Year’s Eve last year, Anhui Cable received a letter of thanks from project department in Fuqing, China Nuclear Power Engineering Co., Ltd., expressing their special thanks for Anhui Cable’s escort for dome installation of Unit 5 and Unit 6 of the first reactor of Hualong One.
Delivery and transportation of Smarter Energy’s nuclear class cable products
It is reported that since 2013, Anhui Cable have cooperated with China Nuclear Power Engineering Co., Ltd. to carry out the R&D, test and verification of nuclear class cables for Hualong One for nearly three years. They have successfully overcome the technical difficulties of nuclear class cables used in the third generation nuclear power plant, developed the Hualong One nuclear cables for reactor inside and outside the containment, and passed the appraisal of achievements in national defense science and technology organized by the department of science and technology of CNNC, and filled the technical gap in China.
At present, medium and low voltage power cables, control cables and instrument cables of Class 1E and Non-1E Class used in nuclear power plants produced by Anhui Cable have been widely adopted in power transmission, control and measurement systems inside and outside the second and third generation nuclear power plants’ containments, have contributed to the construction of key projects such as Qinshan Nuclear Power Plant, Guangxi Fangchenggang Nuclear Power Plant, Tianwan Nuclear Power Plant, Fujian Fuqing Nuclear Power Plant, Hainan Changjiang Nuclear Power Plant, Pakistan Chashma Nuclear Power Plant and Pakistan Karachi Nuclear Power Plant, and have been exported to Pakistan, Iran, the Philippines, Vietnam, Sudan, Bangladesh and more than 20 countries and regions. Meanwhile, obtaining the Class 1E (K1, K2, K3) cable design and manufacturing permission from the National Nuclear Safety Administration, Anhui Cable has also independently carried out the innovation and development of the cables for offshore floating nuclear power plants and the traveling wave reactor cables for the fourth generation nuclear energy technology, established a more complete R & D and reserve system, and made every effort to become a senior service provider of nuclear power cables.
As of November 2018, 42.98GW of nuclear power installed in China was being transported; the installed capacity of nuclear power under construction was 12.84GW. There was still a gap of 32.18GW of installed capacity in operation and construction compared with the national plan by the end of 2020, and the total investment in corresponding equipment will exceed RMB 200 billion. From the perspective of reserve projects, there are 43 units to be approved in China, with an installed capacity of 50.90GW. And 92 units are under planning, with the corresponding installed capacity of 109.40GW and 76 units are under the long-term planning. With abundant reserve projects and broad development space, the nuclear power industry has the foundation for continuous promotion. Against this background, as the core supplier of Hualong One, Smarter Energy (600869) will continue to make persistent efforts and make greater contributions to China’"s nuclear power industry.
It is worth mentioning that, according to Smarter Energy (600869) in the recently investors communication meeting, in 2018, the company deeply extended businesses in the intelligent research and development and manufacturing centering upon the intelligent manufacturing of cables, power products, ternary lithium battery in order to provide industry solutions. In intelligent R&D and manufacturing of cable and power products, Far East Cable is the only brand that is billed as China Quality Award and Top 100 Chinese Brands, and has been highly recognized by customers. Meanwhile, its strategic industry and customer scale continue to expand, along with its growing market influence; in smart airport construction, the company bought the residual equity of Beijing Jinghangan Airport Engineering Co., Ltd., and the smart airport business has been developing steadily, boosting the implementation of the Belt and Road Initiative; in intelligent manufacturing of new energy automobile power system and energy storage device, the company has upgraded its role from the domestic leading enterprise of 18650 lithium battery (model adopted by Tesla) to the manufacturer of new type 21700 battery and planned to exceed 17GWh in ternary lithium capacity. Therefore, after deducting RMB 135 million of goodwill impairment of M & A assets, the company is expected to achieved RMB 250 million to RMB 340 of net profit attributable to the parent company in 2018, with a year-on-year increase of 389% to 566%. Net profit attributable to the parent company after deducting non-recurrent gains and losses is about RMB 190 million to RMB 270 million, with a year-on-year increase of 768%-1134%.