Seagull (603269) released the 2021 semi-annual report on the evening of August 29, the company achieved operating revenue of 423 million yuan, a year-on-year growth of 83.38%; Net profit attributable to shareholders of listed companies reached 20.1091 million yuan, a year-on-year increase of 1594.41%; Net profit of 18.7143 million yuan after deducting non-recurring profit and loss attributable to shareholders of the listed companies; Basic earnings per share of 0.18 yuan. In the first half of the year, the company’s performance hit a record high for the same period.

The financial report shows that in the first half of 2021, Jiangsu Seagull increased R&D investment, expanded the product research and development field, make breakthroughs in the field of energy-saving and environment-friendly cooling towers, achieved rapid growth in performance, and total orders on-hand reach 2.055 billion yuan. In addition, according to the announcement, due to long term cooperative relationship with Siemens in the past, the company strengthen its cooperation by expanding into gas turbine division, which later could be the company’s new growth engine.

Rapid Growth of Domestic and International Market, On-hand Order to Exceed 2 Billion Yuan

In recent years, the cooling tower market has put forward on higher requirements for product quality, technical performance, energy saving, and environmental protection material. Seagull has always attached great importance to the research and development of new products and the research of cutting-edge technology of cooling tower, and has continued to guarantee the investment in research and development field. Up to now, the Company owned a total of 188 patents. Realization of patented products onto market application has played a positive role in promoting the Company’s business expansion and efficiency improvement.

In the first half of 2021, Seagull increased its efforts in the research and development of plume abatement water saving cooling tower – C tower optimization, plume abatement series cooling tower – D tower optimization, SMC fan stack with sheet moulding compounds, high heat transfer trickle fill, high heat transfer and low resistance film fill. Enlargement of closed-circuit tower, standardization of large heat bundle modular, single fan close circuit tower enlargement has been completed in stages.

It is noteworthy that in the first half of this year, sales booking of domestic and international market of Seagull have grown rapidly, and the Company has the highest number of on-hand orders. By June 30 2021, the total number of sales booking held by the Company is 2.055 billion yuan, an increase of 21.75% compared with the end of 2020. Among them, high performance environmental friendly tower and closed-circuit tower business shown increased in sales volume.

Expansion of Gas Turbine Division Welcome New Business Opportunities

The announcement stated that while continuing to maintain the existing position in the industry, the Company will explore more new areas of cooperation with the well-known international organizations, aiming to develop new business opportunities for the Company. As a Siemens supplier, the Company has long cooperated in many major cooling tower projects and accumulated rich cooperation experience. Two companies complement each other with advantages. In 2019, Siemens proposed cooperation in the field of distributed energy; In 2020, the Company and Siemens Energy started their first formal cooperation on gas turbine projects. On August 18 2021, the assembly and commissioning of the Company’s first SGT-700 gas turbine was completed successfully and has delivered to Siemens Energy accordingly.

Currently, Seagull has completed the assembly and commissioning of second gas turbine, which will soon to be delivered to Siemens Energy. In this initial successful cooperation for two gas turbines projects, the Company’s gas turbine division has gained valuable experiences and thus creating conditions for more promising collaboration in future.

The industry analysts believed that with the announcement of semi-annual report by Jiangsu Seagull, significant growth in sales performance and high in sales booking could lay a solid foundation for the long term growth of the Company. From the industry perspective, the global trend to promote environmental protection and energy conservation, low noise, environmental friendly and high efficiency Cooling tower and closed circuit tower would embrace into new emerging market.

Jiangsu Seagull emphasized that, as a market leader in cooling tower industry and in A-share market, the Company has major competitive advantages in high performance environmental friendly and closed circuit tower. Meanwhile, the Company is actively exploring into international market and is expected to be benefited from the business development. In addition, Seagull’s new gas turbine division also allows the Company expanding new market opportunity.