The global energy transition provides a great development opportunity for Shzhel Power.

With a profound industry accumulation of 20 years, Shzhel Power is a comprehensive power service enterprise integrating the research and development, design, manufacturing, sales, and after-sales service of power equipment.

The current global energy transition has had a huge impact on the entire society as well as people's daily work and life. The core of the energy transition is low-carbon and sustainable development. A large number of new energy sources such as wind power and photovoltaic power have emerged, leading to a further increase in the demand for power equipment.

According to the data of the International Energy Agency in 2023, currently, there are 3 billion kilowatts of renewable energy projects globally waiting to be connected to the grid, which is equivalent to five times the newly installed capacity of photovoltaic solar energy and wind power in 2022. It is expected that by 2030, grid investment needs to double, reaching more than 600 billion US dollars per year; by 2040, the world must add or renovate 80 million kilometers of grid lines.

From the perspective of Shzhel Power, this is a very good development opportunity for us. For example, the global energy transition has led to a rapid increase in the demand for transformers. Currently, almost all related industries are expanding their production capacity to meet the surging demand.

In terms of business, Shzhel Power is involved in fields such as power, industry, transportation, data centers, and infrastructure, covering more than 100 countries and regions around the world. Its products cover areas such as transformers, high-voltage products, grid access, and grid automation.

As a globally renowned transformer manufacturer, the export of Shzhel Power's transformer business has been growing rapidly. There are mainly two forms of export, among which the proportion of indirect export is relatively high, that is, exporting by binding with domestic integrators; the other is direct export, that is, directly exporting transformer products. Just in Shzhel Power's base in Henan, it has exported to more than 30 countries and regions.

During the process of transformer export, issues such as additional tariffs are often encountered. In this regard, transformers produced domestically have an inherent cost advantage. Even if tariffs are taken into account, the products are still competitive overseas.

Judging from the overall situation of the industry, the Middle East region is currently vigorously developing the photovoltaic industry, and domestic photovoltaic and wind turbine manufacturers are also gradually "going global". In the future, there is still great room for growth in the export of Chinese transformers.