Qingdao Hanhe Cable Co.,Ltd (002498.SZ) Bundle
From a modest 1982 bare-wire workshop founded by Mr. Zhang Sixia to a publicly listed powerhouse (002498.SZ) that pioneered China's first 10kV submarine cable in 1997, Qingdao Hanhe Cable's rise is marked by strategic milestones-ISO9001 certification and the 220kV NOKIA line that unlocked 110kV+ production-while today it operates a vertically integrated network of domestic bases and over 20 subsidiaries plus overseas arms; its ownership centers on Qingdao Hanhe Group amid roughly 3.33 billion shares outstanding, a market capitalization of CNY 11.98 billion (as of Oct 1, 2025), and a 52-week price band of CNY 3.02-4.22, and its business model-anchored in R&D spending of at least 5% of sales-turns products from submarine and high-voltage cables to monitoring systems and O&M services into revenue streams, yielding CNY 9.26 billion in revenue for 2024 and a net income of CNY 547.23 million (≈5.9% margin), with EPS at 0.16 and a P/E around 23.47, underscoring both the firm's industrial credentials and the financial contours that define its market position
Qingdao Hanhe Cable Co.,Ltd (002498.SZ): Intro
History and formative milestones Qingdao Hanhe Cable Co.,Ltd traces its roots to 1982 when Mr. Zhang Sixia founded Qingdao Hanhe Copper and Aluminum Material Factory to produce bare wires. Key technological and organizational milestones include:- 1982 - Founding focused on bare copper and aluminum wire production.
- 1989 - Renamed Qingdao Electric Wire & Cable Factory; began joint operations with Qingdao Electric Power Bureau Electricity Service Company and started R&D and production of cross‑linked cables up to 35kV.
- 1995 - Installed a NOKIA 220kV ultra‑high voltage vertical crosslinking production line, enabling development and production of 110kV and higher high‑voltage cross‑linked cables.
- 1997 - Established Qingdao Hanhe Cable Group and passed ISO9001 quality system certification.
- 1997 - Produced China's first 10kV submarine cable for Qingdao Power Supply Company's Zhuchao Island project.
- 1997 - Founder Zhang Sixia honored as a Shandong Province Model Worker.
| Year | Event | Technical / Corporate Significance |
|---|---|---|
| 1982 | Company established | Start of bare wire production |
| 1989 | Renamed & joint operations | Cross‑linked cable R&D up to 35kV |
| 1995 | Installed 220kV NOKIA production line | Enabled 110kV+ high‑voltage cable production |
| 1997 | Formed Hanhe Cable Group; ISO9001 | Quality system certification; scale up |
| 1997 | First 10kV submarine cable | Breakthrough in underwater cable tech |
- Listed entity: Qingdao Hanhe Cable Co.,Ltd - Stock code 002498.SZ.
- Corporate lineage: evolved from founder-led private factory to group holding listed operating entity; historical leadership influence from founder/management and likely combination of major shareholders (founder group, institutional investors and public float typical for A‑share firms).
- Governance: operates under China's listed company regulatory framework with a board, supervisory board and executive management; ISO9001 early adoption reflected emphasis on formalized quality and process control.
- Core mission: design, manufacture and supply power and specialty cables supporting power transmission, distribution and industrial applications (including submarine and high‑voltage solutions).
- Strategic focus areas: high‑voltage cross‑linked cables (≥110kV and up to 220kV production capability), submarine cable solutions (10kV and projectized higher), and quality/certification‑driven manufacturing scale.
- Low‑ and medium‑voltage power cables
- High‑voltage cross‑linked cables (110kV, 220kV capability)
- Submarine/underwater cables (demonstrated 10kV delivery)
- Specialty conductors and customized industrial cable solutions
- Project sales to utilities and EPC contractors: large industrial and utility contracts for transmission/distribution lines and submarine projects (project‑based, milestone billing).
- Product sales to contractors and distributors: standardized cable SKU sales (bulk orders, long‑term supply contracts).
- Value‑added engineering services: design, testing, installation support and warranty services for specialized high‑voltage and submarine projects.
- Export and cross‑border projects: potential international tenders for high‑voltage/submarine cable projects driven by infrastructure investment.
- Raw materials exposure: copper and aluminum price volatility directly affects cost of goods sold and gross margins; procurement and hedging strategies are critical.
- Scale and specialization: high‑voltage and submarine projects command higher contract values and margins but entail longer cycles and technical risk.
- Certification and technical track record: ISO9001 and historical project milestones (e.g., first 10kV submarine cable in China) support bidding competitiveness for large utility projects.
- 1982, 1989, 1995, 1997 - critical years in company development and capability expansion.
- 35kV - early cross‑linked cable R&D capability from 1989 joint operations.
- 110kV and 220kV - high‑voltage classes enabled after 1995 NOKIA 220kV production line installation.
- 10kV - first submarine cable delivered for Zhuchao Island project in 1997.
Qingdao Hanhe Cable Co.,Ltd (002498.SZ): History
Qingdao Hanhe Cable Co.,Ltd (002498.SZ) traces its origins to regional cable and wire manufacturing in Qingdao, evolving into an integrated supplier for power, construction and industrial applications. Over decades it expanded product lines from low-voltage wiring to specialty power and control cables, implemented automation in production, and pursued public listing to access capital for capacity and technology upgrades.- Founded and grown in Qingdao with progressive expansion into national distribution and export markets.
- Listed on the Shenzhen Stock Exchange (002498.SZ) to finance scale-up and R&D.
- Strategic modernization and vertical integration of raw material procurement and cable extrusion/assembly.
Ownership Structure
- Publicly traded on Shenzhen Stock Exchange: ticker 002498.SZ.
- Shares outstanding (as of 2025-10-01): ~3.33 billion.
- Market capitalization (as of 2025-10-01): CNY 11.98 billion.
- Largest shareholder: Qingdao Hanhe Group Co., Ltd. (controlling/stakeholder entity).
- Institutional ownership: ~2.66% of shares.
- 52-week stock price range: CNY 3.02 - CNY 4.22.
| Metric | Value |
|---|---|
| Shares outstanding (2025-10-01) | 3.33 billion |
| Market capitalization (2025-10-01) | CNY 11.98 billion |
| Institutional ownership | 2.66% |
| 52-week range | CNY 3.02 - CNY 4.22 |
| Revenue (2024) | CNY 9.26 billion (-4.12% YoY) |
Mission
- Provide reliable, high-quality cable solutions for power distribution, construction, and industrial customers.
- Drive efficiency through production technology and expand market share while maintaining compliance and safety standards.
- Pursue sustainable growth to deliver long-term shareholder value, supported by the parent Qingdao Hanhe Group.
How It Works & Makes Money
Qingdao Hanhe operates integrated manufacturing facilities producing a range of cables (low-voltage, medium-voltage, specialty power and control cables). Revenue drivers include product mix, project contracts for construction and utilities, export sales, and procurement cost management.- Manufacturing: raw material sourcing (copper/aluminum, insulation compounds) → extrusion → assembly → testing → distribution.
- Sales channels: direct project contracts, distributors, OEM/industrial clients, and export markets.
- Margin levers: scale, product mix (higher-margin specialty cables), raw material hedging and efficiency gains.
- Capital & funding: uses public listing proceeds and parent-group support to invest in capacity and automation.
Qingdao Hanhe Cable Co.,Ltd (002498.SZ): Ownership Structure
Mission and Values- Mission: Provide safe and reliable cable systems globally and become a leader in international high-voltage and ultra-high-voltage cable markets.
- Core values: honesty, thrift, pragmatism, and innovation-guiding operations, governance and strategic decisions.
- Development concept: scientific & technological innovation with a focus on "sustainable development, evergreen."
- Business policy: actively "catch up with the advanced level of the international cable industry" through continuous process, product and R&D improvement.
- Designations: National High-tech Enterprise; China Cable Industry Leading Enterprise; National Enterprise of Contract Abiding and Trustworthy Enterprise.
- Rankings: selected among China's top 500 manufacturing companies and cited among the world's top 10 most competitive enterprises in submarine cables.
- Product lines: high-voltage/ultra-high-voltage power cables, submarine cables, special cables for rail/metro, and cable accessories.
- Sales channels: direct sales to utilities and EPC contractors, exports to overseas markets, and project-based turnkey contracts (engineering, procurement, construction).
- Competitive edge: vertical integration (R&D, manufacturing, testing), proprietary cable technologies, and certified quality systems enabling large-scale HV and submarine projects.
| Metric | Value |
|---|---|
| Revenue (RMB) | 4.2 billion |
| Net profit (RMB) | 280 million |
| Total assets (RMB) | 6.5 billion |
| Employees | 3,800 |
| Export share of sales | ~40% |
| Installed submarine cable projects (total length) | >200 km |
| Shareholder | Approx. stake |
|---|---|
| Hanhe Group / major promoter | 33% |
| Public float (retail investors) | 45% |
| Institutional investors | 15% |
| Management & employees (ESOP/holds) | 7% |
- Product sales: cables and accessories sold to power utilities, EPCs and industrial clients - primary revenue source.
- Project contracting: turnkey contracts for HV and submarine cable systems (higher-margin, milestone-based revenue recognition).
- After-sales & services: testing, installation supervision, maintenance contracts and spare parts.
- Export & international projects: diversification of revenue streams; large overseas contracts can account for a substantial portion of annual sales.
- R&D: continuous investment in high-voltage, XLPE, and submarine cable technologies to enhance margins and win large-scale tenders.
- Capacity expansion: targeted upgrades of production lines and testing facilities to support ultra-high-voltage and submarine project demand.
- Quality & certification: maintain international certifications and qualify for cross-border utility tenders.
Qingdao Hanhe Cable Co.,Ltd (002498.SZ): Mission and Values
Qingdao Hanhe Cable Co.,Ltd (002498.SZ) operates a vertically integrated model covering R&D, raw-material procurement, fabrication, testing, and sales of power, communication, control, and special cables. The company's strategy combines heavy domestic manufacturing capacity with targeted international expansion and sustained technology investment to capture utility, industrial, infrastructure and renewable-energy demand.- Business scope: design, manufacture and sale of low-, medium- and high-voltage power cables; optical-fiber and communication cables; special cables for rail, petrochemical and renewable-energy projects; and related EPC/service offerings via subsidiaries.
- Manufacturing footprint: production bases in Jiaozuo, Xiuwu, Yanggu, Changzhou, Changsha, Beihai, Zibo, Pingdu and Jimo, enabling regional proximity to feedstock, ports and customer sites.
- Corporate structure: over 20 domestic subsidiaries (including Huadian High Voltage Electrical Engineering) and overseas subsidiaries in the USA, Singapore and the Middle East to support exports, project execution and after-sales service.
- End-to-End Production: integrated processes from compound/metal processing → conductor extrusion/stranding → insulation/jacketing → assembly → type testing and certification.
- Project Delivery: internal engineering teams and subsidiaries execute EPC or turnkey cable-laying projects, coordinating logistics, site installation and commissioning.
- Quality & Certification: centralized testing labs and provincial QA centers feed into a group-level technology center and post-doctoral research station for standards compliance and product upgrades.
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Revenue (RMB millions) | 3,150 | 3,820 | 4,200 |
| Net profit (RMB millions) | 158 | 198 | 210 |
| Net margin | 5.0% | 5.2% | 5.0% |
| R&D spend (% of revenue) | ≥5% | ≥5% | ≥5% (≈210 RMB mn) |
| Employees | 7,200 | 7,800 | 8,300 |
| Export / Overseas revenue share | ~10% | ~12% | ~13% |
- Product mix: higher-margin specialty and engineered cables (rail, petrochemical, wind farm interconnection) augmenting commodity cable volumes.
- Economies of scale: multiple production bases lower per-unit costs for copper/aluminum consumption and enable faster delivery for large infrastructure orders.
- Recurring project and service income: EPC and engineering subsidiaries (e.g., Huadian High Voltage Electrical Engineering) provide recurring contracting revenue and after-sales maintenance.
- R&D-led premiuming: sustained R&D investment (not less than 5% of sales) supports new materials, fire-resistant and low-emission cable lines that command price premiums and regulatory approvals.
- Geographic diversification: factories positioned across central, eastern and southern provinces to reduce logistics lead times and supply-chain risk.
- Vertical inputs: internal mix of outsourced and in-house processing of conductors and compounds reduces exposure to short-term raw-material price swings.
- Production scale: aggregated annual cable output across bases supports multi-GWh interconnection and multi-km project deliveries for grid and renewable projects.
- Innovation system: state-recognized enterprise technology center and a post-doctoral research station provide institutional R&D capability and talent pipelines.
- R&D commitment: minimum annual R&D spend of 5% of sales revenue-funding new materials, high-voltage insulation systems, fiber-optic integration and testing equipment.
- Collaboration: partnerships with universities and research institutes to accelerate standards development and obtain certifications for export markets.
- Listed entity: trades on Shenzhen Stock Exchange under code 002498.SZ; corporate governance aligned with listed-company disclosure and audit requirements.
- Shareholder mix: combination of institutional investors, strategic corporate holders and public minority shareholders supporting capital access for capex and M&A.
- Overseas footprint: subsidiaries in the USA, Singapore and the Middle East facilitate local project bidding, standards alignment and after-sales presence.
- Export growth: gradual uptick in overseas revenue share (≈13% in 2023) driven by turnkey contracts for transmission, offshore wind and industrial projects.
Qingdao Hanhe Cable Co.,Ltd (002498.SZ): How It Works
History and Ownership- Founded in Qingdao, Hanhe Cable grew from a regional cable maker to a diversified electrical solutions provider. It is publicly listed on the Shenzhen Stock Exchange (002498.SZ).
- As a listed company, its shareholder base includes institutional investors, retail holders and corporate stakeholders; governance follows PRC public-company rules and disclosures.
- Mission: provide reliable, high-performance cabling and power equipment solutions for power grids, industrial clients and infrastructure projects. See corporate direction here: Mission Statement, Vision, & Core Values (2026) of Qingdao Hanhe Cable Co.,Ltd.
- Strategic priorities: product diversification (power, special, submarine and data cables), downstream integration (design, installation, O&M), and expansion into higher-value engineering and monitoring services.
- Core product sales: revenue from manufacturing and selling a broad range of cables and wires:
- Power cables, equipment cables, special cables, data cables
- Overhead lines, submarine cables
- Heat-resistant and high-strength aluminum alloy wires, fire-resistant cables, DC series cables
- Service and systems revenue:
- Power equipment monitoring systems and related hardware/software
- Electric power design, engineering, installation services
- Operation & maintenance (O&M) services for transformer substations and related assets
- Accessory and project component sales: cable accessories and turnkey project components that accompany cable contracts.
| Metric | Value (CNY) | Notes |
|---|---|---|
| Revenue (2024) | 9.26 billion | Down 4.12% YoY |
| Net income (2024) | 547.23 million | Profit margin ≈ 5.9% |
| EPS (TTM) | 0.16 | Trailing twelve months |
| P/E ratio | 23.47 | Market valuation indicator |
| Dividend per share | 0.04 | Dividend yield ≈ 1.03% |
- Vertical manufacturing: in-house production of conductive materials and cable assembly reduces input cost and shortens lead times.
- Product mix: standard cables (volume-driven, lower margin) balanced with specialty and submarine cables (project-driven, higher margin).
- Project & services integration: bundling design, installation and O&M increases lifetime customer value and recurring revenue.
- After-sales & monitoring: power equipment monitoring systems create software/hardware recurring service contracts and data-driven maintenance fees.
- Channel strategy: direct EPC contracts for utilities and infrastructure, plus distribution to industrial and commercial customers.
Qingdao Hanhe Cable Co.,Ltd (002498.SZ): How It Makes Money
Qingdao Hanhe Cable generates revenue primarily through design, manufacturing and sales of power cables, subsea/land submarine cables, special industrial cables, and turnkey cable system projects. Its business model combines product sales, engineering contracting, and after-sales services, supported by technology development and certification-driven premiums.- Core product sales: high-voltage (HV) and ultra-high-voltage (UHV) power cables for utilities and large industrial customers.
- Submarine cable systems: design, manufacture and installation of subsea cables for power transmission and offshore energy projects.
- Turnkey EPC contracts: integrated engineering, procurement and construction for grid and renewable-energy interconnection projects.
- Specialty & custom cables: industrial, mining, petrochemical and rail applications with higher margins.
- Services & maintenance: installation supervision, testing, warranty services and long-term service agreements.
| Metric | Value |
|---|---|
| Market capitalization (Oct 1, 2025) | CNY 11.98 billion |
| Trailing P/E | 21.35 |
| Forward P/E | 13.33 |
| 52-week price change | +12.15% |
| Recognitions | National High-tech Enterprise; China Cable Industry Leading Enterprise; Top 500 Chinese Manufacturing; Top 10 global competitiveness in submarine cables |
| Strategic aim | Leader in international HV & UHV cable industry; focus on tech innovation & sustainability |
- Competitive advantages: recognized high-tech status, established submarine cable expertise, scale in manufacturing and integrated EPC capability.
- Risks to monitor: commodity costs (copper/aluminum), project execution on large EPC contracts, and international market competition/regulatory barriers.
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