Winning bid of 9.35 billion yuan in State Grid's procurement! QRUNNINGCABLE wins multiple regional projects

On the evening of June 4th, QRUNNINGCABLE (920682.BJ) announced that it had won a bid from State Grid for a total of 935 million yuan, providing strong support for the company's annual performance. The winning project covers the first round joint procurement of State Grid's East China, Central China, Sichuan-Chongqing, and North China regions, national grid bidding, as well as Zhejiang and Anhui provincial-level electricity market bidding. The products include low-voltage building wires, 1kV/10kV distribution network cables, 35kV, 110kV, 220kV medium and high voltage cables, among others. The winning regions span across multiple core electricity consumption areas. The East China region won a bid of 276 million yuan, Central China-Sichuan-Chongqing won a bid of 217 million yuan, and North China won a bid of 144 million yuan. High, medium, and low voltage products were all awarded, demonstrating the company's full-range supply ability and the increasing market share of top-quality manufacturers after the reform of State Grid's centralized bidding. The company stated in the announcement that after the bidding project, formal business contracts will be signed gradually, and the orders will be gradually converted into revenue, providing substantial support for the company's future annual operating performance. Behind the impressive performance of the orders is the reshaping of the industry landscape brought about by the reform of State Grid's bidding system. In 2025, State Grid officially launched the cross-provincial centralized bidding reform for seven major regions, bidding farewell to the previous decentralized bidding model of each province. By unifying technical standards, scaling up procurement, and regulating supply chain control, the industry entry threshold has been raised, accelerating industry consolidation. Leading cable manufacturers with large-scale production capacity, sound quality control systems, and comprehensive delivery capabilities continue to benefit, and the trend of the strong getting stronger in the industry is accelerating. In the first year of the 2025 reform, the company's winning bid share with State Grid steadily increased, and this 9 billion yuan large order is a concrete result of the continued realization of the benefits from the procurement reform. At the industry level, the "14th Five-Year Plan" for the national power grid investment exceeding 5 trillion yuan has officially started, providing a long-term fertile ground for the company's continuous order acquisition in the future. The State Grid's 14th Five-Year Plan fixed asset investment plan is 4 trillion yuan, an increase of 40% compared to the "13th Five-Year Plan," with an average annual investment of 800 billion yuan; Southern Power Grid's total investment during the same period is about 1 trillion yuan, an increase of over 50%, with a single-year investment reaching 180 billion yuan in 2026, setting a historical record high. The focus of investment from the two major power grids is on the construction of ultra-high voltage backbone grids, smart transformation of urban and rural distribution networks, grid integration of new energy, power supply linkage with computing power facilities, and other areas, driving the demand for high and low voltage cables along the entire chain. QRUNNINGCABLE has historically derived approximately 64% of its revenue from State Grid and Southern Power Grid, making it one of the most direct beneficiaries of the power grid investment dividend. On the same day, QRUNNINGCABLE also disclosed the investor relations activity record form. From June 2nd to 3rd, the company received visits from three institutions: Huayuan Securities, China Financial Merchants Investment Group, and Beijing Zeheng Holding Group, and addressed a series of questions and concerns from the market. The company's investor relations officer and executives answered the questions one by one and introduced the company's business strategy and medium to long-term development plans. The company revealed that the overall production and sales situation is favorable, with sufficient orders on hand, and the operating volume is at its best historical stage. High-voltage cables, as one of the company's main business development directions, currently have a capacity utilization rate of over 85%. The company will continue to upgrade and expand its existing high-voltage production lines and related equipment to increase capacity further to meet the growing demand for high-voltage cables. The new 500kV cables have already completed their type testing. Facing the fiercely competitive electricity market environment, the company will continue to explore the independent foreign trade market to expand its income growth space. In terms of products, in addition to consolidating, optimizing, and enhancing power cables, the company will increase the development of electrical equipment cables, such as cables for new energy vehicle charging piles, Siasun Robot&Automation cables, photovoltaic cables, marine engineering cables, and other products representing the development of new profit growth points. On the market side, accelerating the development of the central enterprise direct procurement market and overseas independent foreign trade market, diversifying channels to counter the increasing competition pressure in the domestic electricity market. Securities industry research points out that the resonant logic of new power system construction, expansion of new energy installations, and the surge in electricity demand caused by computing power infrastructure construction will continue to drive the demand for high and low voltage cables. Under the backdrop of State Grid's continued expansion and procurement, the certainty of orders for leading cable companies with large-scale production, full-range supply, and mature supply chain management continues to rise. The nearly 10 billion yuan State Grid large order landing this time will gradually convert into revenue in the coming years, laying a solid foundation for the company's performance in the second half of this year and next year. Relying on years of deep cultivation of products reputations and supply chain resources in the two major power grids, coupled with the dual drive of high-voltage product iteration and the expansion of new energy cable production, QRUNNINGCABLE will continue to deeply participate in the trillion-dollar investment feast of the "14th Five-Year Plan" for the power grid. With the landing of the 500kV cable trial and the large-scale production of new business products, the company's long-term growth space is expected to be further unleashed.