New Energy and Industrial Development is expected to bring new opportunities

Southern Power (300068) 14 notice published in the first half performance, the company expects net profit during the period 3100-3400 million, up a sharp decline.

According to the announcement, the company first half of 2010 net profit fell sharply two reasons for decline in gross margin. First half of 2009, the company generated higher gross profit margin, well above the 2006-2009 average, in the first half lead and non-lead materials are substantially higher than the same period last year, resulting in gross margin during the first half year 2010 Over the same period dropped significantly. Second, the market prices. Three first half of the domestic operations in 2010 compared to last year drop in investment and lack of market demand, leading to increased competition; also affected by the financial crisis, overseas demand is still to restore and export business competitive market. Lead prices rose less factors, the average transaction value in the first half of 2010, dropped last year.

The adverse impact of a variety of reasons, although the results of the first half of the South have the power not ideal, but the company is not worried about future prospects. Worldwide rise of the new energy industry, is expected to have the power to the South bring new development opportunities.

Analysis of the industry experts, the rise of new energy industries will lead to communication, power, IT, automotive, construction, new material industry and other industries, major changes, and birth a new group of industries, new energy and related industries, the rapid expansion for the battery industry has brought unprecedented opportunities for development. New energy, smart grid and electric cars, is recognized as the future of three major new industries, which are the three major bottlenecks in development of the industry point to the same technology - energy storage technology. Battery energy storage and conversion, as the core component, will become the new energy industry one of the key technologies. Technology leader within the industry will benefit from new energy industries and usher in more development opportunities.

Companies related to official told reporters that the South had the power to focus on the development of batteries in the field, already has 15 years of development, and reserves accumulated rich experience in battery products and technology R & D, is the battery industry's technology leader. The company be based on communications back-up battery industry, and actively follow up the development of solar, wind, power, electric automobiles Xiangguan new energy, efficient energy saving industry, continuous power supply in the field of technology of precursor, dedicated to "innovation" as the driving force, will company to build the world's leading communications back-up and power, energy storage applications power system solutions.

Since listing in April this year, after the company quickly uses listed fund advantage, the company based on many years of accumulation of technology, accelerate the construction of national class technical center to capture new energy Chanye unprecedented opportunity to bring battery industry, Chixujiada on solar energy, wind energy systems and other smart grid applications with battery energy storage technology research and development, and actively develop other new high-capacity flow battery energy storage battery; build electric vehicle battery power system for laboratories for super batteries, lithium iron phosphate New car batteries, battery research and development for the company in the future development of new areas in the technical reserve.

At the same time, the company accumulated over the years R & D and production of lithium-ion batteries based on experience, implementing back-up communications and storage iron phosphate lithium battery with the technological transformation projects. The project is for 3G, 4G communications networks and fiber to the home network up on the battery market needed investment in construction projects, also has a very broad space for development.