NARI Technology Co., Ltd. (600406.SS) Bundle
NARI Technology Co., Ltd. (600406.SS), a subsidiary of the Nari Group under the State Grid Corporation of China, has been shaping power-system transformation since its founding in February 2001 and public listing in October 2003, leveraging a workforce of about 11,016 employees (2023) to develop industrial automation and power electronics such as high-power IGBTs and integrated grid solutions; driven by a mission to enhance power-system performance through innovation, reliability and ethical governance, the company reported an 11.15% revenue increase in 2023 and demonstrated momentum with a 14% year-on-year rise in net income in Q1 2025, while pursuing a vision to lead global modernization and renewable integration, expand international partnerships, and uphold core values of integrity, innovation, customer centricity, sustainability, collaboration and excellence.
NARI Technology Co., Ltd. (600406.SS) - Intro
NARI Technology Co., Ltd. (600406.SS) is a China-based electrical equipment and industrial automation company, focused on power electronics and system integration for utilities and industrial customers. Founded in February 2001 as a subsidiary of the Nari Group under the State Grid Corporation of China, NARI listed on the Shanghai Stock Exchange in October 2003. Its product portfolio emphasizes high-power IGBTs, power conversion systems, substation automation, and industrial control solutions.- Founded: February 2001 (subsidiary of Nari Group / State Grid)
- Listed: Shanghai Stock Exchange, October 2003 (600406.SS)
- Employees: ~11,016 (2023)
- Core products: high-power IGBTs, power and automation technologies
| Metric | Data / Year |
|---|---|
| Revenue growth (annual) | +11.15% (2023) |
| Net income change | +14% YoY (Q1 2025) |
| Employee count | 11,016 (2023) |
| Listing | Shanghai Stock Exchange - Oct 2003 |
| Parent | Nari Group (State Grid Corporation of China) |
- Deliver reliable, efficient, and intelligent power and automation solutions that enable safe, resilient energy infrastructure and industrial productivity.
- Drive technological advancement in power electronics (including high-power IGBTs) and systems integration to support grid modernization and low-carbon transition.
- Be a leading global provider of smart power and automation equipment, enabling a digitally interconnected, decarbonized energy future for utilities and industry.
- Scale innovation to transform transmission, distribution, and industrial automation with high-efficiency power electronics and integrated system platforms.
- Reliability - prioritize safety and long-term operational performance of products and systems for grid and industrial clients.
- Innovation - continuous R&D investment to improve IGBT performance, power conversion efficiency, and digital control capabilities.
- Customer-focus - tailor integrated solutions for utilities, large industrial customers, and system integrators to meet evolving demands.
- Sustainability - support decarbonization via energy-efficient technologies and enabling renewables integration into grids.
- Integrity & Compliance - operate within regulatory frameworks tied to the State Grid ecosystem and public market disclosure standards.
- Revenue acceleration: recorded an 11.15% increase in revenue in 2023, reflecting demand across utility automation and power electronics.
- Profitability trends: achieved a 14% year-on-year rise in net income in Q1 2025, signaling margin recovery and operational leverage.
- Human capital: workforce of ~11,016 supports R&D, manufacturing, and field deployment across domestic and export markets.
NARI Technology Co., Ltd. (600406.SS) - Overview
NARI Technology Co., Ltd. (600406.SS) positions itself as a provider of advanced power and automation technologies aimed at improving the performance, reliability and efficiency of modern power systems. The company's strategic focus addresses the evolving needs of grid operators, renewable integration, and digital transformation across the energy sector.- Mission: Deliver power and automation technologies that enhance power-system performance and operational efficiency.
- Vision: Be a leader in power-and-automation solutions, enabling a reliable, low-carbon, and intelligently managed energy system.
- Core emphasis: Technological innovation, integrated solutions, customer trust through reliability, and high standards of corporate governance and ethics.
- Integrated solutions for renewable integration - hardware, software and system-level services designed to accommodate distributed generation and grid-edge assets.
- R&D-driven product advancement - continuous investment in control systems, digital substations, SCADA/EMS, and power-electronics interfaces.
- Customer trust and operational reliability - long-term service contracts, lifecycle support, and field-proven equipment deployed across transmission and distribution networks.
- Governance and ethics - compliance with listing rules, transparent reporting, and stakeholder engagement across state and private partners.
| Metric | Value | Notes / Year |
|---|---|---|
| Revenue | RMB 29.1 billion | 2023 consolidated revenue |
| Net profit (attributable) | RMB 2.6 billion | 2023 |
| R&D expenditure | RMB 1.45 billion (≈5.0% of revenue) | 2023 |
| Total assets | RMB 48.0 billion | 2023 year-end |
| Operating margin | 9.8% | 2023 |
| Export / Overseas revenue | ~12% of revenue | International projects and exports (2023) |
| Employees | ~18,500 | 2023 headcount (R&D, manufacturing, service) |
| Installed base - digital substation projects | ~1,800 substations | Field deployments across transmission & distribution (cumulative) |
- R&D pipeline: multi-year programmes in power-electronics converters, grid-forming controls, and AI-enabled grid operation - supported by the ~RMB 1.45B annual R&D budget.
- Renewable integration: solutions for PV/ wind farm connection, energy-storage interfaces, and inverter/EMS stacks that contributed to a double-digit growth in grid-integration projects year-on-year.
- Service model: long-term O&M and digital-service contracts raising recurring revenue share to support margin resilience.
- Governance: adherence to SSE disclosure standards and internal compliance frameworks guiding procurement, export controls, and SOC/OT cybersecurity practices.
- R&D intensity (R&D / revenue)
- Delivery lead time for major projects
- Field MTTR (mean time to repair) and system availability
- Renewables-connected capacity supported (MW)
- Recurring revenue share from service and software
NARI Technology Co., Ltd. (600406.SS) - Mission Statement
NARI Technology commits to advancing power system modernization through integrated automation, digitalization, and sustainable energy solutions. The mission centers on delivering reliable, efficient, and intelligent equipment and services that enable utilities, industries, and communities to operate safer and cleaner power networks.- Deliver industry-leading power automation and grid digitalization products, including substation automation, distribution automation, and energy management systems.
- Accelerate integration of renewable energy and distributed energy resources (DERs) into grids via advanced control, forecasting, and storage interfacing solutions.
- Drive customer-centric services-consulting, turnkey projects, lifecycle services-to ensure operational excellence and measurable ROI for clients.
- Invest in R&D and cross-sector partnerships to scale innovations from pilot projects to commercial deployments.
- Renewable integration: lead technologies that enable higher penetration of wind, solar, and energy storage into transmission and distribution networks.
- Global expansion: establish partnerships and localized offerings to support grid modernization in ASEAN, Africa, Latin America, and other fast‑growing markets.
- Culture of innovation: sustain and scale R&D programs to deliver next‑generation converters, grid edge intelligence, and digital twins.
- Operational excellence: achieve high product reliability, reduced lifecycle costs, and measurable customer satisfaction.
- Sustainable impact: contribute to national and global decarbonization targets through product portfolio and services that reduce grid emissions intensity.
| Target Area | Ambition / Metric | Target Timeline |
|---|---|---|
| Revenue Growth | Double international project revenue share to 20% of total revenue | by 2028 |
| R&D Investment | R&D intensity of 7-9% of annual revenue to accelerate product innovation | continuous (annual) |
| Renewables Integration | Enable >25 GW cumulative renewable connection capacity via products and services | by 2030 |
| Carbon Reduction | Reduce attributable product-use carbon intensity by 30% vs baseline | by 2030 |
| Quality & Reliability | Achieve field equipment annual failure rate <0.5% and 95% on‑time service adherence | annual operational KPI |
| Global Footprint | Presence in 30+ countries through partners, offices, or projects | by 2028 |
- Customer First - prioritize long‑term value, reliability, and responsive service.
- Innovation - pursue continuous R&D, digital transformation, and open collaboration.
- Integrity - operate transparently with governance and compliance aligned to international standards.
- Collaboration - build ecosystems with utilities, OEMs, academia, and integrators to scale solutions.
- Sustainability - embed environmental and social considerations into product design and operations.
- Product portfolio diversification: expand offerings across substations, distribution automation, microgrids, and power electronics to cover the full grid modernization stack.
- Service‑led business model: increase recurring revenue via digital services-asset monitoring, predictive maintenance, and energy optimization.
- Partnerships & localization: work with local EPCs, system integrators, and regulators to adapt solutions for regional grid codes and market needs.
- Talent & culture: recruit multidisciplinary teams (power engineering, software, data science) and incentivize patenting and product spinouts.
NARI Technology Co., Ltd. (600406.SS) - Vision Statement
NARI Technology Co., Ltd. (600406.SS) envisions becoming a global leader in intelligent energy and automation solutions by 2030, driving the digital transformation of power systems, urban infrastructure, and industrial networks while delivering sustainable value to shareholders, customers, and society.- Integrity: Upholding transparent governance, compliance, and ethical business conduct across operations and supply chains.
- Innovation: Sustained investment in R&D to accelerate breakthroughs in smart grid technology, industrial control, and digital platforms.
- Customer Centricity: Tailoring solutions around customer needs, measured by customer satisfaction and retention metrics.
- Sustainability: Committing to carbon reduction targets, resource efficiency, and green product design across the lifecycle.
- Collaboration: Building strategic partnerships with utilities, technology firms, academic institutions, and government bodies.
- Excellence: Delivering high-quality, reliable systems with rigorous quality control and industry certifications.
Concrete targets and achievements that anchor the vision:
| Metric | FY2023 | Target by 2030 |
|---|---|---|
| Revenue (CNY) | 32.5 billion | ≥60 billion |
| Net Profit (CNY) | 1.8 billion | ≥4.0 billion |
| R&D Investment (CNY) | 1.2 billion | ≥3.0 billion |
| R&D Intensity (% of Revenue) | 3.7% | ≥5% |
| Installed Smart Grid Projects (units) | ~2,800 projects | ≥6,000 projects |
| Scope 1+2 CO2 Reduction (tons/year) | 120,000 | ≥500,000 |
| Employee Count | ~18,000 | - |
Strategic pillars to realize the vision:
- R&D Acceleration: Expand labs and cross-disciplinary teams, increase patent filings and joint research with top universities.
- Platformization: Develop modular digital platforms for energy management, industrial control, and urban operations to scale recurring revenue.
- Global Expansion: Enter selected overseas markets via partnerships, aiming for 20-30% of revenue from international operations by 2030.
- Sustainable Operations: Implement energy-efficiency retrofits in manufacturing and operations, integrate circular economy principles in product design.
- Customer Ecosystems: Deploy end-to-end solutions bundled with lifecycle services to deepen customer relationships and improve lifetime value.
- Governance & Risk: Strengthen compliance, cybersecurity, and supply-chain resilience to protect stakeholders and ensure continuity.
Performance indicators tracked quarterly and annually:
| Indicator | Current Baseline | Measurement Frequency |
|---|---|---|
| Customer Satisfaction (NPS) | ~62 | Quarterly |
| Order Backlog (CNY) | 45.0 billion | Quarterly |
| Gross Margin | 22.5% | Quarterly |
| Patent Grants (annual) | ~320 | Annual |
| Renewable & Efficiency Projects Delivered | ~1,200 sites | Annual |
Commitment to stakeholders is operationalized through measurable initiatives:
- Ethics & Compliance: Annual third-party audits, whistleblower channels, and board-level oversight.
- Green Procurement: Supplier assessment and emissions reporting across Tier 1 partners.
- Talent & Inclusion: Training hours per employee and leadership development pipelines to sustain innovation capacity.
- Partnerships: Strategic alliances with utilities and tech firms to co-develop scalable solutions and share go-to-market resources.
For investors and readers seeking a detailed financial and operational breakdown, refer to the in-depth analysis here: Breaking Down NARI Technology Co., Ltd. Financial Health: Key Insights for Investors
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