As we witness a surge in Chinese enterprises venturing globally, several outstanding power manufacturing companies have successfully established a global presence, leveraging the advantages of the Chinese supply chain. It is exhilarating to be part of this significant trend in the power industry. The saying goes, “In a group of three, there is always one who can teach me something.” During uncertain times, we can look to successful companies that have expanded internationally, examining their products and market strategies, which may illuminate our path forward. Understanding and learning from these enterprises is invaluable.
Overview of Companies (Ranked by Overseas Revenue)
| No. | Company Name | Overseas Revenue (Billion Yuan) | Overseas Revenue Share | Overseas Revenue Growth Rate | Overseas Gross Margin | Comments |
|---|---|---|---|---|---|---|
| 1 | TDK Electric | 119.75 | 12.24% | 29.27% | 18.15% | Engaged in electrical equipment, cables, and EPC projects, with lower gross margins; impacted by industry downturn in new energy products. |
| 2 | Hengtong Optic-electric | 113.21 | 18.87% | 38.86% | 13.43% | Strong overseas growth, but low gross margins in the cable sector. |
| 3 | Chint Electric | 100.48 | 15.57% | 21.53% | 29.74% | Moderate growth and gross margin, steadily expanding. |
| 4 | ZTT | 73.28 | 15.25% | -0.89% | 20.14% | Stagnant overseas growth, but higher gross margin compared to Hengtong. |
| 5 | State Grid NARI | 32.79 | 5.71% | 135.14% | 19.02% | Small overseas revenue share, but rapid expansion underway. |
| 6 | Si Yuan Electric | 31.22 | 20.20% | 44.67% | 37.06% | Focus on high-voltage products with rapid overseas growth and high gross margins. |
| 7 | Haixing Electric | 30.62 | 64.91% | 9.68% | 42.87% | Stable overseas growth with excellent gross margin performance. |
| 8 | China XD Electric | 28.25 | 12.68% | 6.52% | 13.79% | Modest overseas revenue growth with low gross margin. |
| 9 | Samsung Medical | 27.14 | 18.59% | 38.40% | 35.45% | Strong overseas growth with relatively high gross margin. |
1. TDK Electric
Global Status: Among the top three manufacturers of transformers worldwide, with over 30% market share in ultra-high voltage transformers domestically. The company specializes in power transmission and transformation, new energy, and new materials.
Competitive Advantages:
- Scale Advantage: TDK leads in high-end power transmission equipment, producing 420 million kVA of transformers and reactors.
- Equipment Advantage: Established quality assurance systems and state-of-the-art production capabilities for ultra-high voltage products.
- International Layout: Accelerating the development of international platforms and major projects, with confirmed international project revenues exceeding $5 billion.
Comment: TDK has evolved into a comprehensive company, no longer limited to power transmission products, achieving remarkable revenue growth despite challenges in the new energy sector.
2. Hengtong Optic-electric
Global Status: Among the top five global suppliers of submarine cables, with over 40% market share in domestic offshore wind energy.
Main Business:
- Communication Network: Focused on next-generation communication technologies and expanding into marine communication and optical modules.
- Energy Interconnection: Aims to become a leading global provider of energy interconnection solutions.
Comment: Hengtong has effectively implemented a global production strategy, mitigating geopolitical risks.
3. Chint Electric
Global Status: A market leader in low-voltage electrical equipment in China, ranking among the top five globally.
Competitive Advantages:
- Channel Advantage: Strong distribution networks and global expansion strategies.
- Innovation Advantage: Focus on R&D and maintaining competitive advantages through technology and cost control.
Comment: Chint has effectively built a robust sales and service network, enabling it to compete effectively in both domestic and overseas markets.
4. ZTT
Global Status: Ranked among the top three global suppliers of submarine cables and a key supplier of ultra-high voltage cables in China.
Main Business: Focused on energy networks and communication technology.
Competitive Advantages:
- Innovation in Energy Solutions: Developing wind, solar, and hydrogen solutions to meet diverse customer needs.
- Strong Technical Capabilities: Advanced testing and research capabilities ensure top-tier product quality.
Comment: ZTT has a solid foundation and is well-positioned for future growth in the global market.
5. State Grid NARI
Global Status: A leader in secondary equipment for power grids in China, with an over 80% market share in dispatch automation systems.
Comment: NARI is actively expanding into international markets, particularly in Saudi Arabia and Brazil, enhancing its global footprint.
6. Si Yuan Electric
Global Status: The top domestic provider of dynamic reactive power compensation (SVG) and among the top five globally.
Competitive Advantages:
- Comprehensive Product Range: Offering a wide variety of products related to power transmission and quality management.
- Focus on New Energy Systems: Aligning product development with the evolving energy landscape.
Comment: Si Yuan is positioned for strong growth as it continues to innovate and expand its product offerings.
7. Haixing Electric
Global Status: A leading exporter of smart meters, with over 60% of its revenue coming from international markets.
Comment: Haixing’s extensive overseas operations and local manufacturing capabilities enhance its market competitiveness.
8. China XD Electric
Global Status: The second-largest domestic supplier of ultra-high voltage GIS equipment and an EPC project partner.
Comment: XD Electric’s international business is growing, with substantial contracts secured in Turkey and Brazil.
9. Samsung Medical
Global Status: Among the top five exporters of electric meters in China, with approximately 35% of its revenue derived from overseas markets.
Comment: Samsung has successfully leveraged its supply chain advantages and acquired foreign brands to expand its market presence.
Conclusion
As companies venture abroad, they should consider acquiring local brands while leveraging domestic supply chains to penetrate local markets effectively. A comprehensive product range enables a one-stop service, and prioritizing revenue growth over immediate profit margins can lead to sustainable advantages in the long run.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/analysis-of-annual-reports-from-nine-chinese-power-manufacturing-companies-venturing-abroad/
