On the evening of April 28, Jinbei Electric (002533.SZ) released its Q1 2025 report, revealing that the company achieved operating revenue of RMB 4.097 billion in Q1, up 16.32% YoY, and net profit attributable to shareholders of RMB 136 million, up 1.84% YoY. The financial report showed that, as of the end of Q1, excluding orders that had been awarded but not yet signed, the company's orders on hand exceeded RMB 3.3 billion.
A company executive told a reporter from Cailian Press that the company's dual main businesses of magnetic wire and wire and cable had achieved economies of scale. Additionally, through copper semis hedging and production process optimization, the company maintained stable profitability amidst sharp fluctuations in raw material prices. Benefiting from power grid upgrades and the robust new energy vehicle (NEV) industry, there is currently robust demand for flat magnetic wire and wire and cable both domestically and overseas.
In terms of business segments, for Jinbei Electric's cable business, the company secured eight packages in State Grid tenders in Q1, achieving full-category awards for ground wires, control cables, overhead insulated conductors, and power cables.
The company's other main business, magnetic wire, experienced rapid growth. Its Wuxi base secured a 34,500-mt order for flat magnetic wire for transformers in the "China Electric Equipment Group's Concentrated Procurement Project for Magnetic Wire," accounting for 70% of the Wuxi base's 2024 sales. The estimated value of the order, based on copper prices at the time of award, reached RMB 2.754 billion.
The Q1 report indicated that the company's construction in progress at the end of the period increased by 30.14% compared to the end of the previous year, primarily due to the addition of plant and equipment for the third-phase expansion project of Jinbei Electric Magnetic Wire's dedicated flat magnetic wire for NEV motors, as well as the plant and equipment for the intelligent cable workshop of Jinbei Electric Hengyang Cable's intelligent equipment line.
The aforementioned company executive stated that the overall progress of the third-phase expansion project for flat magnetic wire for NEV drive motors at the Xiangtan base is going smoothly, with the first batch of 6,000 mt of capacity expected to be gradually released in Q2 2025. Once the base reaches full production, the annual capacity for flat magnetic wire for NEVs will reach 50,000 mt.
He also noted that due to early electrification in developed regions of Europe and the United States, the previous round of power investments was concentrated in the 1970s-1990s, resulting in widespread aging of existing power grid equipment and significant demand for upgrades. Coupled with the increasing share of new energy power generation, this has jointly driven a concentrated surge in overseas power equipment demand.
This year, the company is intensifying its overseas business expansion. In Q1, the company's direct export shipments of magnetic wire increased by 10% YoY, covering markets in Europe, the Middle East, and East Asia. The cable business has opened up market space through mining projects in Central Asia, PV projects in the Middle East, and power transmission projects in Southeast Asia.
