TBEA's revenue and net profit both grew steadily, in line with our expectation of a stable overall growth of the equipment in the first half of the year. Among them, in terms of products, the revenue of transformer products was 5.061 billion, up 16.33% year-on-year, the gross profit margin was 28.29%, the revenue of wire and cable products was 1.635 billion, up 42.77% year-on-year, and the gross profit margin was 14.7%. The increase in wire and cable business revenue was apparently due to the company's adjustment of its revenue product structure and the capture of more emerging and non-electric markets.
The comprehensive gross profit margin of TBEA was 22.62%, down 0.95% year-on-year. The reason for the decrease in the company's gross profit margin is that in addition to the income structure, the revenue of wire and cable products with lower gross profit margins has increased significantly, which has lowered the comprehensive gross profit margin. The R&D expenses and employee salary increase have caused management and financial expenses. A large increase, while in the long run, the centralized bidding system adopted by the State Grid to bid for equipment once again will keep the company's gross profit margin level stable and low.
In the first half of the year, TBEA's domestic business income was 6.613 billion, a year-on-year increase of 24.51%. The company's exports were 1.85 billion, a year-on-year increase of 17.62%. The reason for the increase in exports was the new breakthrough in the company's complete project contracting market and the increase in the company's solar PV module exports. At present, the company's foreign complete sets of projects are full of orders, what are the data from the published data?
(1) Khartoum North and other substation projects in Sudan: The total contract value of the project is 34.14 million Euros. The company has received 15% of the advance payment and the first two progress payments, and is currently undergoing civil construction.
(2) The Eastern Sudan Power Grid Project, with a total contract value of 94.19 million Euros. The company has received a 10% advance payment and is conducting civil works.
(3) Indian State Grid Corporation 765kV reactor project: the total contract amount is 68,017,963 euros + 461,691,754 Indian rupees. The company has received advance payment of 6,824,300 euros. We think that overall, compared with the annual export of 2.789 billion in 2009, this year is expected to increase export by more than 30%.
TBEA's investment funds mainly invest in 7 projects of super (special) high-voltage power transmission and transformation equipment production and R&D projects and foreign engineering contracting. We believe that the progress of the fundraising will further help to consolidate the company. Leading position in the high-end UHV transformer market and the company's development of export business.
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