Accelerated Technological Transformation of New Power Systems Unlocks New AI-era Growth Potential for Secondary Equipment Leader

As a leading provider of comprehensive energy internet solutions and a dominant player in power secondary equipment, NARI Technology has maintained robust growth momentum amid the ongoing upgrade of new power systems. Founded in 2001, the company has expanded its business footprint through continuous asset mergers and integrations, evolving into a nationwide leader in power secondary equipment. Backed by State Grid Corporation of China, NARI boasts profound technological accumulation and outstanding market advantages by closely aligning its product development with frontline power grid operational demands. In terms of management, the company adopts flexible organizational structures and differentiated incentive mechanisms to sustain industry-leading human resource efficiency. Financially, it achieved a 12.8% compound annual growth rate (CAGR) in operating revenue and a 10.3% CAGR in net profit from 2018 to 2025, with steadily improving cash flow and dividend payouts.

Smart Grid Business: Secondary Power Equipment Poised for Non-linear Growth During the 15th Five-Year Plan Period

During the 14th Five-Year Plan period, driven by rapid installed capacity growth of new energy sources, State Grid’s winning bid amount for primary power equipment registered a CAGR of 17.6%, significantly outpacing the 7.9% CAGR of secondary equipment. By the end of 2025, the cumulative installed proportion of wind and solar power generation in China reached 47%, approaching the high-penetration threshold for renewable energy integration. The power sector faces mounting pressure on power balance and an urgent need for upgraded power system control mechanisms, indicating that secondary equipment and power electronic devices will enter a non-linear growth phase in the 15th Five-Year Plan period.

NARI consistently maintains top-tier market shares in State Grid centralized procurement for primary equipment such as converter valves, as well as core secondary equipment including DC control and protection systems, grid dispatching systems, power relays and monitoring devices, enabling it to fully benefit from rising grid investment and structural industry upgrades. In the AI sector, the company has developed computing-power-grid collaborative dispatching platforms and AIDC power supply systems, poised to build distinctive competitive advantages by leveraging its profound expertise in large-scale power grid operation and intelligent management.

Digital-energy Integration Business: Leading Digital Transformation for Energy Industry

NARI serves as a core driver of digital transformation across the energy sector, capturing over 40% of State Grid’s digital investment projects during the 14th Five-Year Plan period. As new power systems generate expanding and multi-dimensional operational data, the company is well-positioned to benefit from rebounding digital investment from State Grid. Its subsidiary Ruiteng has laid out comprehensive product portfolios covering AIDC liquid cooling systems, data center construction and intelligent computing dispatching, with relevant solutions scheduled for large-scale deployment among State Grid and other key clients.

Low-carbon Energy Business: Diversified Layout Captures Full-industry Growth Dividends

In traditional energy segments, pumped storage and nuclear power industries maintain strong prosperity, while thermal power and conventional hydropower sectors are undergoing high-quality upgrading. Benefiting from its comprehensive product coverage, NARI is expected to deliver steady traditional energy business growth.

In new energy businesses, the company focuses on central state-owned enterprise clients and large-scale base projects, with its photovoltaic business largely insulated from policy adjustments under Document No.136. Driven by booming offshore wind power installation demand, NARI stands out as a core beneficiary thanks to its technological leadership in flexible DC transmission solutions.

In the energy storage sector, global energy storage installed capacity is projected to grow 45% year-over-year in 2026 and 29% in 2027. Leveraging its technological edge in grid-forming inverters, NARI is ramping up R&D and market expansion efforts to fully capture industry growth opportunities.

Industrial Internet Business: Expanding Emerging Tracks to Drive Steady Long-term Growth

The company’s industrial internet business focuses on industrial control, municipal administration and transportation sectors, with deep market penetration in petroleum and chemical, metallurgy, municipal and traffic industries. Meanwhile, NARI is actively exploring emerging business tracks including low-altitude economy and integrated transportation-energy systems, laying a solid foundation for sustained and diversified business growth.