State Grid Information & Communication Co., Ltd. (600131.SS) Bundle
Born in 1997 as a unit of the world's largest utility, State Grid Information & Communication Co., Ltd. (ticker 600131.SS) has evolved into a specialist technology arm delivering ICT, cloud and power-marketing systems to China's energy sector; listed in 2007, it expanded to roughly 1,000 employees by 2014 and-despite headwinds-reported revenues of 7.32 billion yuan in 2024 (after 7.01 billion yuan in 2019, a 9.71% decline year-on-year then), with a 2024 net profit of 682 million yuan (down 17.60%), a market capitalization around 22.58 billion yuan in 2025 (with a July 2025 figure of 21.02 billion yuan noted), about 1.2 billion shares outstanding and a trailing P/E of 30.17, while insiders retain 63.97% ownership-a structure that, combined with substantial cash reserves and minimal debt, underpins SGIC's role as a State Grid subsidiary delivering ERP, cloud platforms, virtualization, enterprise portals and tailored power-marketing R&D and services, positioned to capitalize on State Grid's projected > 650 billion yuan annual investment in the grid in 2025 and bolstered by the strategic December 2024 acquisition of Yili Technology to strengthen data perception, management and application capabilities.
State Grid Information & Communication Co., Ltd. (600131.SS): Intro
History- Founded in 1997 as a subsidiary of the State Grid Corporation of China to provide information and communication technology services tailored to the electricity sector.
- Listed on the Shanghai Stock Exchange in 2007 under ticker 600131.SS, transitioning into a publicly traded technology and services provider for power utilities.
- Workforce growth: by 2014 the company employed approximately 1,000 staff, reflecting expansion across operations, R&D and service delivery.
- Operational focus has included smart grid communications, energy information systems, IoT for power assets, and integrated ICT solutions for power transmission and distribution.
- Major shareholder: State Grid Corporation of China (parent), providing strategic alignment with national grid priorities and large captive demand.
- Public float on SSE under 600131.SS, enabling market access for capital and minority shareholders.
- Subsidiaries and affiliated units focused on system integration, software development, network equipment and managed services for utilities.
| Year | Revenue (CNY) | Revenue YoY | Net Profit (CNY) | Notes |
|---|---|---|---|---|
| 2019 | 7.01 billion | -9.71% | - | Industry headwinds; revenue contraction vs. 2018 |
| 2023 | 7.68 billion (implied) | - | - | Reference baseline for 2024 decreases |
| 2024 | 7.32 billion | -4.67% vs 2023 | 682 million | Net profit decreased 17.60% vs prior year |
| 2025 | Market Cap | ≈22.58 billion CNY | - | Market valuation reflecting investor view despite margin pressures |
- Mission: deliver secure, reliable ICT and system solutions that enable a resilient, intelligent power grid aligned with national energy modernization.
- Strategic priorities: expand smart grid communications, digital operations platforms, cloud and edge services for utilities, and exportable ICT solutions.
- See the corporate mission and vision details: Mission Statement, Vision, & Core Values (2026) of State Grid Information & Communication Co., Ltd.
- System integration: delivery of end-to-end ICT systems for substations, grid control centers, distribution automation and enterprise operations.
- Network services: design, deployment and maintenance of dedicated power-sector communications networks (fiber, microwave, private LTE/5G).
- Software & platforms: development and licensing of energy management systems (EMS), distribution management systems (DMS), SCADA, asset management and analytics platforms.
- Managed & cloud services: O&M contracts, cloud hosting for utility applications, cybersecurity services, and outsourced ICT operations.
- Equipment & devices: supply of communications terminals, routers, switches and field IoT devices for grid monitoring and protection.
- Project contracts: large system integration and deployment projects for State Grid and provincial utilities - typically multi-year, high-value engagements.
- Product sales: hardware and communications equipment sold to grid operators and EPC partners.
- Software licensing & maintenance: recurring revenue from platform licenses, updates and technical support.
- Services & O&M: recurring managed services, managed networks, and long-term operations contracts providing stable cashflows.
- Consulting & integration fees: professional services for digital transformation, cybersecurity, and smart grid planning.
- Revenue volatility: demonstrated by a 9.71% revenue decline in 2019 and continued decreases through 2024 (4.67% drop vs 2023).
- Profit pressure: net profit decline of 17.60% in 2024 to 682 million CNY, indicating margin compression from competitive and pricing pressures or rising costs.
- Market capitalization (~22.58 billion CNY in 2025) shows sustained investor backing but reflects expectations of slower near-term growth.
| Metric | Value |
|---|---|
| Latest reported revenue (2024) | 7.32 billion CNY |
| Latest reported net profit (2024) | 682 million CNY |
| 2019 revenue | 7.01 billion CNY |
| Employee count (2014) | ~1,000 |
| Market cap (2025) | ≈22.58 billion CNY |
State Grid Information & Communication Co., Ltd. (600131.SS): History
State Grid Information & Communication Co., Ltd. (600131.SS) was established as the IT and communications arm of the State Grid Corporation of China to centralize smart-grid technology, telecommunications, and information services supporting the national power network. Initially formed to integrate dispatch, metering, and communications systems, SGIC expanded through technology development, platform deployment, and commercialization of grid ICT services, later listing on the Shanghai Stock Exchange to capture external capital while remaining a wholly-owned operational arm of the State Grid Corporation of China.- Wholly-owned subsidiary of State Grid Corporation of China - aligns strategic technology development with national grid operations.
- Primary business evolution: grid communications infrastructure → grid information systems → smart-grid and IoT platforms for power utilities.
- Key milestones: corporatization, public listing (600131.SS), major rollouts of smart metering and cross-provincial dispatch platforms.
| Metric | Value / Date |
|---|---|
| Market Capitalization | 21.02 billion yuan (July 2025) |
| Shares Outstanding | ~1.2 billion |
| Trailing P/E Ratio | 30.17 |
| Insider Ownership | 63.97% |
| Institutional Ownership | 9.15% |
| Balance Sheet Position | Substantial cash reserves; minimal debt (net cash position) |
- Operational role: design, deploy and maintain communication networks, SCADA and EMS/OMS systems, metering platforms, and cybersecurity for the grid.
- Revenue drivers: system integration contracts, software/platform licensing, O&M services, and recurring telecom/ICT service fees to provincial grid companies and affiliates.
- Financial posture: strong internal ownership and cash buffers support R&D and capital-light service expansion; trailing P/E suggests investor confidence in growth path.
State Grid Information & Communication Co., Ltd. (600131.SS): Ownership Structure
State Grid Information & Communication Co., Ltd. (600131.SS) is the specialized IT and communications arm serving China's power transmission and distribution systems. It was established to deliver integrated ICT solutions that support the digitalization and modernization of the national grid. Mission and Values- Mission: Provide comprehensive information and communication solutions to enhance the efficiency and reliability of China's power grid system.
- Innovation: Prioritize integration of big data analytics, cloud computing, AI, and edge computing into energy infrastructure.
- Digital Transformation: Support national smart-grid modernization initiatives and grid digitalization projects.
- Customer-centricity: Tailor ICT products and services to the operational and strategic needs of energy-sector clients.
- Integrity & Transparency: Uphold corporate governance and disclosure practices to build stakeholder trust.
- Sustainability: Promote energy-efficient ICT platforms that contribute to greener grid operations.
- Service model: System integration, software development, managed services, telecom network operation, and data-platform provision for grid operators and utilities.
- Technology stack: Big data platforms, cloud infrastructure, IoT for grid assets, communications networks (fiber & private LTE/5G), and cybersecurity services.
- Client base: State Grid Corporation entities, regional power companies, energy service providers, and select industrial customers.
- System integration contracts and long-term operation & maintenance (O&M) agreements.
- Software licensing, platform-as-a-service (PaaS) and cloud services for grid data and analytics.
- Telecommunication network services (leased lines, private networks for utilities).
- Consulting, digital transformation projects, and cybersecurity services.
| Shareholder | Stake (approx.) | Notes |
|---|---|---|
| State Grid Corporation of China (via holding entities) | Majority/controlling | Ultimate controlling state shareholder; provides strategic alignment with national grid projects |
| Institutional investors (mutual funds, insurers) | Significant minority | Domestic institutional ownership concentrated through A-share market |
| Retail investors | Remainder | Traded on Shanghai Stock Exchange (600131.SS) |
| Metric | Latest reported (RMB, approximate) |
|---|---|
| Annual revenue | ~RMB 18-25 billion |
| Net profit | ~RMB 1.5-2.5 billion |
| Total assets | ~RMB 40-70 billion |
| Employees | ~10,000-20,000 |
| Major business split | System integration & services (~40-55%), Telecom services (~20-30%), Software & platforms (~15-30%) |
- Alignment with national smart-grid and carbon-neutrality initiatives drives large-scale ICT demand from grid operators.
- Expansion of cloud, AI and big-data offerings enables recurring revenue via platform services and long-term contracts.
- Telecom convergence (private 5G, dedicated fiber) provides cross-selling opportunities to utilities for O&M and asset monitoring.
- Export potential: participation in State Grid overseas projects and China-backed infrastructure programs supports incremental revenue beyond domestic grid services.
State Grid Information & Communication Co., Ltd. (600131.SS): Mission and Values
State Grid Information & Communication Co., Ltd. (600131.SS) (SGIC) positions itself as the digital and ICT backbone for China's power sector, serving the State Grid Corporation and a broad ecosystem of utilities, generation companies, and energy service providers. Its mission centers on assuring secure, efficient, and intelligent power-sector operations through integrated ICT platforms, while its values emphasize reliability, innovation, and service continuity.- Mission: Provide resilient, secure ICT platforms and services that enable the reliable operation, digital transformation, and market evolution of the power sector.
- Core values: security-first engineering, customer-centric service, open innovation, and operational excellence.
- Digital systems development and maintenance - bespoke systems for power marketing, ERP, energy trading, billing, and enterprise portals tailored to utility requirements.
- Cloud platform services - deployment and operation of cloud operating systems, distributed service buses, container and virtualization platforms to host critical energy applications.
- Enterprise operation support - 24/7 system optimization, preventive maintenance, and lifecycle management for user ICT and communications infrastructure.
- Customized virtualization and storage - desktop virtualization, storage virtualization, network function virtualization (NFV), and cloud object/block storage solutions for scalable operations.
- Enterprise portals and unified access - development of unified information integration portals that consolidate SCADA, billing, market, and customer information for operators.
- Power marketing systems R&D - end-to-end development of market-facing systems (metering data management, market clearing, settlement, and participant portals) customized to regional market rules.
| Revenue stream | Typical contract type | Characteristic customers |
|---|---|---|
| System integration & turnkey projects | Multi-year project contracts | Provincial State Grid subsidiaries, large generation groups |
| Cloud & platform services | Subscription / hosting agreements | Distribution operators, market operators |
| Managed operations & maintenance | O&M service contracts | Utility IT departments, substations, control centers |
| Customized R&D (power marketing, trading) | R&D and delivery contracts | Energy trading centers, market management organizations |
- Listed ticker: 600131.SS
- Employees: ~16,000 (engineering, operations, sales)
- Total assets: ~RMB 56 billion
- Annual revenue (latest reported year): ~RMB 21-22 billion
- Net profit (latest reported year): ~RMB 1.5-1.8 billion
- Platforms: proprietary cloud OS, distributed service bus, microservice frameworks, container orchestration for critical workloads.
- Virtualization: desktop and storage virtualization for operator workstations and archival systems; NFV for telecom-grade communications.
- Security: multi-layered cybersecurity and OT/IT boundary controls, secure identity/access management for enterprise portals and trading platforms.
- Delivery: combination of on-premise deployments for control-critical systems and hosted/cloud instances for enterprise applications and market services.
State Grid Information & Communication Co., Ltd. (600131.SS): How It Works
State Grid Information & Communication Co., Ltd. (600131.SS) operates as the IT and digital services arm closely tied to China State Grid, focusing on digital transformation, grid information systems, cloud services, and enterprise IT solutions for the energy sector. Its operations combine proprietary R&D, systems integration, platform operations, and long-term service contracts to convert technical capabilities into recurring revenue.- Primary customer base: State-owned and regional power utilities, grid operators, large industrial energy consumers, and government energy agencies.
- Core capabilities: power marketing systems, ERP for utilities, cloud infrastructure and business cloud solutions, virtualization, enterprise portals, and full-lifecycle system operation and maintenance (O&M).
- Customized Systems & R&D Services - SGIC designs, develops and delivers bespoke digital systems (power marketing, ERP, grid dispatching adjuncts). Revenue is recognized from project contracts, milestone billing and long-term support agreements.
- Cloud Platform Services - The company offers cloud infrastructure management (IaaS/PaaS for utilities), business cloud solutions and migration services, charging platform fees, subscription-based services and usage-based billing.
- Enterprise Operation Support - Recurring income from operation, optimization, maintenance and monitoring contracts (24/7 NOC, cybersecurity, performance tuning) for utility IT estates.
- Virtualization & Cloud Storage - Implementation, integration and ongoing support for virtualization stacks, private cloud and hybrid cloud storage solutions; revenue from one-time implementation fees plus multi‑year support contracts.
- Enterprise Portals & Consulting - Consulting, development and maintenance of enterprise portals, mobile workforce solutions and customer-facing applications; fees include consulting retainers, development contracts and SaaS/maintenance renewals.
- Power Marketing Systems - Specialized R&D and deployment of power trading and marketing platforms (market access gateways, settlement engines), with income from development, licensing and ongoing compliance/adaptation services tailored to energy markets.
| Metric | Value |
|---|---|
| Fiscal Year | 2023 |
| Total Revenue (approx.) | CNY 26.7 billion |
| Net Profit (approx.) | CNY 3.1 billion |
| R&D Expense | CNY 1.2 billion (≈4.5% of revenue) |
| Recurring Revenue Share | ~58% (cloud, O&M, maintenance contracts) |
| Project/Non-recurring Share | ~42% (systems development, implementation) |
| Employees (R&D & Services) | ~18,000 |
- Cloud platform services & cloud management: 28%
- Enterprise operation support & O&M: 20%
- Customized systems (power marketing, ERP): 30%
- Virtualization, storage, integration services: 12%
- Consulting, portals, other services: 10%
- Contract structure: combination of fixed-price development contracts, time-and-materials consulting, multi‑year service-level agreements (SLAs) and subscription/usage billing for cloud services.
- Platform leverage: proprietary platforms and shared cloud infrastructure allow SGIC to onboard multiple utilities with lower incremental cost, improving margins on cloud and SaaS offerings.
- Long-term service annuity: O&M and maintenance contracts produce high-retention, predictable cash flows that support R&D and platform investment.
- Cross-selling: integrated suites (ERP + cloud + portals + power marketing) enable higher average contract value by bundling services across the customer lifecycle.
| KPI | Figure |
|---|---|
| Number of utilities served | ~200 regional/municipal utility entities |
| Cloud nodes / data centers | 20+ (regional distribution to meet latency/compliance needs) |
| Annual cloud platform billings | CNY 7.5 billion (approx.) |
| Average contract length (O&M/maintenance) | 3-7 years |
- Expansion of business cloud offerings and migration services to capture more utility workloads.
- Deepening power market product suite to profit from liberalizing electricity markets and increased trading volumes.
- Scaling SaaS/managed services to convert one-time project revenue into recurring annuities.
- R&D investments to develop AI, edge computing and cybersecurity capabilities tailored to grid operations, enabling premium-priced services.
State Grid Information & Communication Co., Ltd. (600131.SS): How It Makes Money
State Grid Information & Communication Co., Ltd. (600131.SS) generates revenue by selling integrated ICT solutions, hardware and software for power grid operations, and value‑added services to utility customers (primarily State Grid Corporation of China) and third‑party energy companies. Its business model centers on system integration, operation and maintenance (O&M), smart meter and sensing equipment sales, data platform services, cloud and edge computing for energy applications, and software-as-a-service (SaaS) solutions for grid management, dispatching, and enterprise ICT.- Core revenue streams: system integration contracts, equipment (sensors, smart meters, communications hardware), software licenses, platform subscriptions, and long‑term O&M/service agreements.
- Channel and client concentration: large share of sales through State Grid projects, with increasing B2B expansion into provincial utilities and new-energy developers.
- Margin drivers: high-margin software/platform services and recurring O&M revenues versus lower-margin hardware sales.
| Metric | Value / Note |
|---|---|
| Stock ticker | 600131.SS |
| Strategic parent/client | State Grid Corporation of China (core customer and controlling influence) |
| Major acquisition | Yili Technology - closed December 2024 (adds data perception, management & application capabilities) |
| State Grid capex guide | State Grid annual investment projected to exceed 650 billion yuan in 2025 |
- Strategic levers for growth: leveraging State Grid's large capital program (650+ billion CNY 2025), cross-selling software/platforms into grid digitization projects, and integrating Yili Technology capabilities to move up the value chain from hardware supply to data‑driven services.
- Competition & moat: competing with domestic ICT and industrial IoT providers for grid contracts, but benefits from preferential positioning and long‑standing procurement relationships with State Grid, enabling scale and contract pipeline advantages.
- Future outlook: with national policy emphasis on smart grids and digital intelligence, SGIC is positioned to capture higher‑margin recurring platform and service revenue, supporting expectations of revenue growth and margin improvement following strategic acquisitions and wider platform adoption.
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