Far East Co., Ltd. (600869): Stable Q1-Q3 Performance, Cable Business Sustains Leading Position

2023-10-26

　　On October 26, Far East Co., Ltd. (600869) released its 2023 Q1-Q3 financial report. The report shows that the company achieved operating revenue of RMB 17.391 billion in the first three quarters of 2023, growing 9.12% year-on-year and hitting a new all-time high for the same period. Based on prudence principles, the company accrued asset impairment provisions, which reduced total profit by RMB 130 million in Q1-Q3 2023, leading to a 7.53% year-on-year decline in net profit attributable to parent company after non-recurring gains/losses. Net operating cash flow reached RMB 309 million (+451.88% YoY), reflecting continuous improvement in operational quality. R&D investment totaled RMB 516 million (+12.48% YoY), further consolidating the company’s technological edge.

Cable Business Remains Industry Leader Led by Technological Breakthroughs

From Jan to Sep 2023, the intelligent cable network business posted operating revenue of RMB 16.155 billion (+10.42% YoY) and net profit of RMB 746 million (+15.33% YoY). Orders from major clients kept growing, with signed and awarded contracts above RMB 10 million totaling RMB 16.969 billion (+8.00% YoY). Leveraging its advantage of a concentrated pool of innovative talents, the company continues to develop breakthrough technologies. Its liquid-cooled high-power charging cables have passed TÜV Rheinland certification and earned wide industry recognition. Relevant products have met American and ICE standards, and the company has established cooperation with multiple charging pile manufacturers. Furthermore, Far East consistently contributes to China’s ultra-high voltage power grid development, winning bids for national landmark UHV transmission projects including the Longdong-Shandong ±800kV UHV DC Yellow River Crossing Project in Yan’an, Shaanxi (China’s first integrated wind-solar-thermal-storage UHV power transmission project) and the Ningxia-Hunan ±800kV UHV DC transmission project (China’s first major power transmission channel dominated by clean energy delivery).

Leverage Cable & Energy Storage Synergy to Expand Domestic & Overseas Markets

In Q1-Q3 2023, the intelligent battery business recorded operating revenue of RMB 421 million. The company deepens its presence in overseas household energy storage markets by establishing a Dutch subsidiary, continuously improving overseas marketing channels, strengthening overseas technical services and after-sales capabilities, and expanding cooperation with strategic clients.

The company further advances its integrated cable-energy storage synergy strategy, prioritizes R&D innovation and deepens industry-university-research cooperation. Far East Battery maintains continuous innovation in technology, products and business models, diversifies product portfolios for industrial & commercial and grid-side energy storage scenarios, accelerates technology accumulation and achievement transformation in new energy batteries, and boosts core competitiveness.

For copper foil products, the company continuously optimizes product mix and expands strategic clients, maintaining stable supply to CATL while establishing partnerships with Hichen Storage, Hengdian DME, Camel Group, Jinko Storage and other enterprises, emerging as a key supplier for numerous lithium battery manufacturers. In composite copper and aluminum foil current collectors, the company presses forward with technical product verification and project planning.

Riding the Wind for Further Progress in Smart Airport Business

Jinghang’an has long specialized in smart airport engineering with consistent business growth and breakthroughs. During the reporting period, it achieved operating revenue of RMB 767 million and net profit of RMB 63 million (+1.59% YoY), with newly signed contracts worth RMB 1.667 billion (+43.96% YoY). Meanwhile, it advances 65 airport projects covering 7 domestic regions and 6 overseas countries. As an enterprise holding full Class A qualifications for professional civil airport engineering, the company prioritizes innovation-driven development, quality and efficiency. It focuses on major international airport projects including Lanzhou, Xi’an, Taiyuan, Harbin, Hong Kong (China), Gwadar (Pakistan) and Siem Reap (Cambodia), continuously building its brand image as a benchmark constructor of digital smart airports worldwide.

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