When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

On August 19th, Caixin reported that the performance of listed companies in the smart grid industry has generally improved due to domestic and foreign demand resonance. In the second quarter, one of the representative companies, Hexing Electrical (603556.SH), achieved accelerated growth in performance. The net profit attributable to shareholders of the listed company in a single quarter reached 0.319 billion yuan, a year-on-year increase of 22.32% and a sequential increase of 49.07%, setting a new high for the same period in history.

Earlier tonight, Hexing Electrical released its semi-annual report, achieving revenue of 2.255 billion yuan in the first half of the year, an increase of 20.04% year on year, and a net income attributable to shareholders of 0.533 billion yuan, a year-on-year increase of 22.00%. Prior to this, several brokerages predicted that Hexing Electrical's annual revenue and net income attributable to shareholders in 2024 would increase by approximately 25.65% and 23.00% year on year, respectively.

Looking at each quarter, Hexing Electrical's performance continued to grow each quarter. In the second quarter of this year, the company achieved a quarter-on-quarter increase of 50% and 49.07% in revenue and net profit attributable to shareholders respectively. In the first quarter, Hexing Electrical achieved revenue and net profit attributable to shareholders of 0.902 billion yuan and 214 million yuan, respectively. By the second quarter, these two figures increased to 1.353 billion yuan and 319 million yuan, respectively.

As an export-oriented company, Hexing Electrical's performance growth is mainly attributed to overseas markets. The financial report shows that in the first half of this year, the company's overseas projects bloomed, winning large-scale user fee control device projects in the African market and heavy-duty switch projects in Brazil. The first AMI gas meter solution EPC project implemented in Asia was successfully delivered and accepted. Meanwhile, the company's overseas production capacity layout is still progressing, with successful trial production at its European factory, orderly construction at its factory in Mexico, and planning for the construction of a new joint venture factory in Africa.

Previously, when interviewed by Caixin, the company secretary, Jin Yi, said, "With the accelerated expansion of overseas production capacity and market layout, the market share of domestic leading companies in the global smart meter industry will continue to increase." In her opinion, the competitiveness of overseas markets is the key difference of Hexing Electrical from its peers. Among the major meter exporting companies, about 66% of Hexing Electrical's revenue comes from overseas, significantly surpassing Ningbo Sanxing Medical Electric (601567.SH) and Wasion Holdings (03393.HK).

In terms of the domestic market, Hexing Electrical has significantly benefited from the expansion of the grid bidding scale. According to the State Grid Corporation of China, this year's investment in the grid will exceed 600 billion yuan for the first time, an increase of 71.1 billion yuan from last year. Against this background, in the first half of 2024, Hexing Electrical won bids of 0.302 billion yuan and 2.52 billion yuan respectively from the State Grid Corporation of China and Southern Power Grid for electric measurement products, which increased by about 21.56% and 224.91% respectively compared with the same period last year. The domestic electricity sector will usher in steady growth.