Ball Crown Cable Annual Report Insights: Steady and Improving Operating Fundamentals, Seizing the Power Grid Growth Cycle

How does QiuGuan Cable leverage power grid investment dividends to achieve steady performance growth?

On the evening of March 31, QiuGuan Cable (920682.BJ) released its 2025 annual report. In 2025, QiuGuan Cable’s operating scale maintained steady growth, with total revenue of 3.81B yuan, a year-on-year increase of 6.35%; net profit attributable to shareholders of the listed company was 96.6225 million yuan.

Steady revenue growth, continuous contribution from the main power grid track

In 2025, the overall wire and cable industry showed a “steady progress” trend: on one hand, traditional demands such as power grid investment remained stable; on the other hand, rising raw material prices and intensified internal competition also brought certain challenges to the industry.

Under this market development environment, QiuGuan Cable steadily advanced various operational efforts, with market expansion, technological innovation, and operational management all progressing in an orderly manner, maintaining a stable and positive development rhythm across core businesses.

From a business segment perspective, the core growth driver of QiuGuan Cable still comes from the main power grid track. The annual report shows that in 2025, the company set new records in bidding and sales in the two major markets of State Grid and China Southern Power Grid. Looking at the customer structure, State Grid accounted for 1.95B yuan in sales and 51.21% of annual sales, making it the company’s largest customer; China Southern Power Grid achieved 477 million yuan in sales, accounting for 12.52%, ranking second. The two major grids together contributed over 63% of revenue, forming the company’s performance foundation. At the beginning of 2026, QiuGuan Cable won a bid for a framework project for distribution network with over 350 million yuan from China Southern Power Grid, further consolidating its competitiveness in the power grid track.

Meanwhile, QiuGuan Cable also made breakthroughs in expanding new markets: the company successfully qualified as a supplier for large state-owned enterprises such as China National Petroleum Corporation and Zhejiang Mechanical & Electrical Design Institute, expanding cooperation with engineering companies like China Power Construction and China Communications Construction. Throughout the year, contract signing (including tax) exceeded 5.5 billion yuan, a 29% increase year-on-year, laying a solid foundation for performance growth.

Rich innovation achievements, continuous strengthening of core competitiveness

In the context of intensified industry competition, technological innovation and product quality are key to corporate breakthroughs. In 2025, QiuGuan Cable achieved multiple breakthroughs in R&D and quality control. By the end of the reporting period, the company held a total of 71 patents, including 16 invention patents.

During the reporting period, the company successfully completed R&D for seven new products, including Australian standard 33kV aluminum core cables, new energy vehicle charging gun cables, and medium-voltage polypropylene cables; the 500kV polyethylene cable passed type test certification, and frontier R&D projects such as ultra-high voltage flat aluminum sheath cables and medium-voltage marine engineering cables advanced steadily with phased breakthroughs. The key project in Beilun District passed mid-term acceptance smoothly, and 12 technical breakthroughs were implemented. Additionally, the company participated in drafting the group standard for “Cross-linked Polyethylene Insulation Material for HVDC Cables,” which was officially released, further enhancing industry technical discourse power.

Hardware R&D platform construction accelerated simultaneously. The company built a 500kV high-voltage cable impact test system, and the central laboratory passed CNAS accreditation, elevating comprehensive testing and R&D capabilities. Multiple patents aimed at promoting sales growth, increasing corporate profits, and improving production efficiency.

During the period, the company completed re-certification of quality, environment, and occupational health management systems, passed multiple authoritative industry certifications, and received seven quality-related honors, steadily enhancing product quality and brand reputation.

Significant increase in power grid investment, three clear industry trends

As a core supporting industry of the national economy, the cable industry has a solid and stable long-term development foundation. Continuous high-level investment in power grids provides stable support for industry growth. In 2025, nationwide power grid project investments steadily increased, with State Grid’s fixed asset investments remaining robust. Looking at the medium and long term, during the “14th Five-Year Plan,” investment plans for the two major grids expanded significantly: State Grid planned a 4 trillion yuan investment, and China Southern Power Grid planned 1 trillion yuan, both showing substantial growth; in 2026, capital expenditure for the two grids reached new highs, focusing on ultra-high voltage grid deployment, distribution network upgrades, and digital intelligence transformation, continuously opening long-term demand space.

The industry’s standardized development process accelerated. The reform of the State Grid procurement regional system was implemented, further standardizing procurement systems; the launch of special cable laboratories promoted high-end technological breakthroughs; new product certification regulations accelerated industry standardization and consolidation. Meanwhile, domestically developed high-end environmentally friendly cable technologies achieved multiple independent breakthroughs, pushing the industry toward high-quality transformation.

Currently, the cable industry has entered a critical stage of high-quality upgrading, with ample long-term development opportunities. Emerging industries drive high-end cable demand expansion; energy security needs further reinforce grid upgrades; regulatory policies promote industry consolidation; leading companies leverage technological and brand advantages to steadily increase market share. The industry overall shows three clear development trends: high-end, intelligent, and green, with high-quality enterprises continuing to enjoy industry dividends.

QiuGuan Cable ranked 26th among China’s most competitive cable companies in 2025, setting a new industry high, further confirming its leading position within the industry.

Anchoring power grid dividends, advancing high-end and digital transformation

Looking to the future, QiuGuan Cable has also formulated a clear and prudent operational plan: on the market side, continuously consolidating core advantages in the two grids, seizing opportunities from power grid expansion investments, and improving the nationwide power grid layout; deepening local and central enterprise incremental markets, steadily expanding overseas trade; optimizing product structure, increasing the proportion of high-voltage and special cables, promoting new product commercialization, and improving overall profitability through higher-margin products.

In production and R&D, continuously advancing equipment upgrades and capacity expansion for special cables, deepening digital factory construction; increasing R&D efforts on high-voltage cables, new energy cables, and smart equipment cables; implementing key scientific research projects, improving R&D incentive mechanisms, and aligning technological innovation with market needs to enhance product premium capabilities.

In management, deepening digital integration across the system, introducing intelligent tools to improve management efficiency; initiating ESG system construction, promoting the creation of national green factories…

Throughout the year, QiuGuan Cable’s various operational efforts in 2025 were steadily implemented, with market expansion progressing smoothly, technological innovation yielding fruitful results, and brand strength and industry position continuously improving. Relying on the long-term positive outlook of the cable industry and the policy dividends from ongoing power grid expansion, QiuGuan Cable, with its solid operational foundation, comprehensive technological reserves, and clear development plan, steadily advances its strategic layout, deepens its core business, and accumulates momentum for long-term growth.