Analysis of Hanlan Co., Ltd.'s Market Position in the UHV Sector

Based on collected information, Hanlan Co., Ltd. holds a certain market position in the UHV sector, but it is not an industry leader. A detailed analysis from multiple dimensions is as follows:

Hanlan Co., Ltd. is a high-tech enterprise integrating cable and accessory systems, condition monitoring systems, and general contracting of power transmission and transformation projects. According to 2024 financial data, the company’s main business revenue structure is as follows [0]:

Business Segment	Revenue (100 million yuan)	Proportion
Power Cables	63.11	68.15%
Bare Wires	14.92	16.11%
Wires and Cables for Electrical Equipment	4.345	4.69%
Special Cables	3.428	3.70%

The company’s

businesses are its core revenue sources, accounting for over 84% in total, which lays a foundation for its competition in the UHV sector.

According to industry research reports, Hanlan Co., Ltd. is in the

in the competitive landscape of the domestic wire and cable industry [1][2]:

(Strong competitiveness in EHV and high-end special cable sectors):

• Hengtong Optic-Electric, Zhongtian Technology, Baosheng Co., Ltd., Smart Energy, Jiangnan Group, Shangshang Cable
• Foreign enterprises such as Prysmian, Nexans

(Stronger competitiveness in medium and high-voltage power cable sectors):

• Hanlan Co., Ltd.
  , Hangzhou Cable Co., Ltd., Sun Cable, Oriental Cable, etc.
• Generally have bidding qualifications and supply records for State Grid and China Southern Power Grid

: Other wire and cable manufacturers, mainly producing medium and low-voltage wires and cables.

Hanlan Co., Ltd. has demonstrated certain competitive strength in the UHV sector, mainly reflected in:

• 2022 UHV Project Second Batch Procurement (Line material bidding for projects such as Zhumadian-Wuhan) - Overhead conductor project [3]
• Won multiple bids for State Grid UHV projects in 2023, with a total bid-winning amount of approximately 500 million yuan [4]
• In March 2024, the company and its wholly-owned subsidiary won a State Grid project with a bid amount of approximately 559 million yuan, accounting for about 5.79% of 2023 operating revenue [5]

• The company has technological and market advantages in the high-voltage/EHV cable sectors
• Has a submarine cable production capacity of approximately 2.5-3 billion yuan, and has formed mature delivery performance for 220kV and below submarine cables
• Has accumulated submarine cable orders of over 3 billion yuan since 2018

It should be noted that specific market share data for the UHV cable market is usually not publicly disclosed, but it can be evaluated from the following perspectives:

1. Low overall market concentration
   : The top 10 enterprises in China’s wire and cable industry account for about 20% of the overall market share, and the top five have relatively complete product lines [6].

2. Regional competitive advantage
   : As the only mainstream submarine cable enterprise in Shandong, Hanlan Co., Ltd. has obvious advantages in the Shandong provincial market, and will fully benefit from Shandong’s offshore wind power development plan (8GW to be completed by 2025, no less than 35GW of offshore wind power to be completed by 2030) [1].

3. UHV project participation
   : The company continuously participates in bidding for State Grid UHV projects, but there is still a gap in bid-winning amount compared with industry leaders (e.g., Pinggao Electric’s approximately 2 billion yuan bid-winning amount) [4].

• Hanlan Co., Ltd. is in the
  second echelon
  in the UHV cable sector, and is an important supplier of domestic medium and high-voltage power cables
• Has certain competitiveness in the segmented markets of UHV overhead conductors and 220kV and below submarine cables
• Still has a gap compared with first echelon enterprises (Hengtong Optic-Electric, Zhongtian Technology, Baosheng Co., Ltd., etc.)

• During the “14th Five-Year Plan” period, State Grid plans to invest 2.4 trillion yuan and China Southern Power Grid plans to invest 670 billion yuan. The continuous advancement of UHV construction brings opportunities for the company [4]
• As industry reshuffling accelerates, market concentration is expected to increase, and Hanlan Co., Ltd., as a regional leader, is expected to benefit [1]
• The company has made a forward-looking layout of hydrogen energy business, laying a foundation for long-term development

The chart above shows Hanlan Co., Ltd.'s 2024 main business revenue composition and the hierarchical competitive landscape of China’s wire and cable industry.

[0] Eastmoney - Business Analysis of Hanlan Co., Ltd. (002498.SZ)
https://emweb.eastmoney.com/BusinessAnalysis/Index?type=soft&code=SZ002498

[1] Guosen Securities - Research Report on Hanlan Co., Ltd. (002498.SZ)
https://pdf.dfcfw.com/pdf/H3_AP202208221577453756_1.pdf

[2] Soochow Securities - Market Research Report on Hidden Champions in Wire and Cable Industry
https://pdf.dfcfw.com/pdf/H3_AP202502211643367094_1.pdf

[3] Jiemian News - State Grid Projects Escort Qingdao Hanlan Co., Ltd.'s Annual Performance
https://www.jiemian.com/article/7282660.html

[4] Securities Times - Listed Companies Intensively Disclose Winning Large Power Grid Bids, UHV Industry Chain Benefits Significantly
https://www.stcn.com/article/detail/810166.html

[5] Securities Times - Hanlan Co., Ltd.: The Company and Its Subsidiary Win a Total of 559 Million Yuan in State Grid Projects
https://www.stcn.com/article/detail/1575325.html

[6] Sohu Stocks - 2025 China Wire and Cable Industry Report (Simplified Version)
https://q.stock.sohu.com/cn/news.html?textId=962784415&type=120&tab=120&code=cn_600522&date=2025/1229