According to the Zhitong Finance App, Dongfang Electric (01072) announced its 2024 interim results. The group achieved total operating income of 33.457 billion yuan (RMB, same below) during the period, an increase of 11.84% over the previous year; net profit to mother was 1.691 billion yuan, a year-on-year decrease of 15.52%; and a basic income of 0.54 yuan per share.

According to the announcement, revenue increased by 41.03% year-on-year in the main clean and efficient energy equipment sector.

1. In-depth promotion of industrial development

From January to June 2024, the company achieved an additional effective order of 56.073 billion yuan, an increase of 14.77% over the previous year. In terms of traditional industries, nuclear power achieved a breakthrough in the spent fuel storage and transportation container market, and the civil nuclear safety equipment manufacturing license was re-approved; the domestic market share of gas and electricity remained leading, and self-technology gas turbines received the first market-based order; coal power achieved a “double breakthrough” in the 600 MW and 1000 MW tower furnace markets; and new efficiency orders for the power plant service industry reached 4.69 billion yuan, a record high during the same period in history. In terms of fighting new industries, wind power won orders of 7 million kilowatts or more, and 10 MW onshore wind turbines achieved mass output in the first half of the year; scientific and technological innovation application practices in the entire hydrogen energy industry chain were selected as a typical example of green and low-carbon energy transformation by the National Energy Administration; at the same time, the company vigorously promoted the integrated development of the industrial chain and successfully hosted the Small and Medium Gas Engine Modern Industry Chain Co-Chain Conference and the 2024 Gas Engine Industry Development Conference. The company signed a memorandum of understanding to deepen cooperation with Sanryo Heavy Industries Co., Ltd. Of the newly effective orders, clean and efficient energy equipment accounted for 45.19%, renewable energy equipment accounted for 25.07%, engineering and trade accounted for 10.22%, modern manufacturing services accounted for 8.70%, and emerging growth industries accounted for 10.83%.

2. Remarkable results in scientific and technological innovation

The company continuously optimizes the selection mechanism for major scientific and technological projects, and implements classification management for major technical research, key product development, and major engineering applications. Deepen mutually beneficial cooperation and establish the Chengdu Innovation Research Institute and the Japan Energy Research Institute. It was selected by the Ministry of Industry and Information Technology as the main enterprise in the “Forged Long Board” chain of the three key industrial chains of wind power, nuclear power, and hydrogen energy. In the first half of 2024, the company saw a number of important innovations. The “Safe and Efficient Development of Complete Technology, Equipment and Industrialization of Offshore Wind Power” project won the first prize of the 2023 National Science and Technology Progress Award; 18 MW offshore wind turbines connected to the grid, setting the world record for the largest stand-alone capacity of a grid-connected wind turbine; self-developed 15 MW heavy gas turbine assembly and offline; the world's largest 500 MW impact hydroelectric turbine completed hydraulic research and development; a major breakthrough in hedging tower boiler technology; the world's first (set) 300 MW compressed air energy storage turbine connected to the grid for the first time; Taiwan megawatt natural gas differential pressure generator set Successfully put into operation.

3. Comprehensive deepening of various reforms

Continue to push for reforms, deepening and upgrading actions. Innovate and carry out pilot internal reforms, focus on key difficult areas, organize all second-level enterprises to launch a “merit competition list”, and achieve new breakthroughs in the decentralization and empowerment of scientific and technological innovation and the construction of a new management responsibility system. Policies were issued to support and encourage “science reform enterprises”, “double hundred enterprises” and “leading professional enterprises” to step up their reform and innovation efforts, and continue to provide policy support to pilot demonstration enterprises in terms of equity investment, board building, and medium- to long-term incentives. Strengthen “one enterprise, one policy” and improve the management performance assessment system for subsidiaries.

4. Risk prevention and control is constantly being strengthened

Carry out special work to improve compliance for the year, and formulate and publish compliance guidelines on foreign-related intellectual property rights and China's export control risks. Deepen online audit supervision, further expand intelligent audit paths, and optimize the functions of the capital business supervision platform. Strengthen basic quality management capabilities at the grassroots level, and innovatively build a leading quality evaluation model and index system. The system improved the security level of supply chain management and successfully launched the “Oriental e-Commerce” e-commerce platform. Firmly push forward the three-year campaign to address the root causes of production safety, strengthen supervision and inspection of the implementation of safety systems, and tighten responsibility for production safety. There were no major safety, quality, or environmental incidents in the first half of the year.