600869: Smarter Energy Boosts the “13th Five-Year Plan” International Capacity Cooperation

    Recently, the “13th Five-Year Plan” for international capacity cooperation, led by the National Development and Reform Commission of PRC and the Ministry of Commerce of PRC, has taken shape and is expected to be officially released in the near future. International capacity cooperation will focus on key countries of “One Pole Two Wings” and countries along the “Belt and Road”, pay more attention to industries with dominant capacities like transportation, energy, communications, construction machinery, aerospace and marine engineering. International capacity cooperation will also perfect supporting polices including tax and finance for more precise policy support.

    Overseas business of Smarter Energy (600869) has covered more than 60 countries around the world. Its subsidiaries have developed strategic cooperation with a number of foreign enterprises of World Top 500. Among them, Far East Cable has cooperated with Siemens in developing special aluminum alloy power cable for wind tower tube; the project of “GE Locomotive Soft Cable for Transport System” developed by Far East Cable has passed the evaluation for new products and new technology. The success of this project broke the exclusive monopoly of General Cable, filled the domestic gap, thus became the second international strategic cable supplier of General Electric Company; Far East Cable has also established cooperation with ELSEWEDYCABLES, the largest cable company in Egypt, to transport Far East cable to North Africa and the Middle East. It also set up overseas agents in Zambia and Indonesia.

    With the professional Grade A qualification for power transmission and substation, Smarter Energy (600869) Holdings Shanghai Intelligence Power Engineering Co., Ltd. (hereinafter referred to as Intelligence Power) is specializing in survey, design, EPC, project management and engineering technical advisory in thermal power generation, new energy power generation, wind power generation, transmission, substation and distribution / rural power grid projects. It is also the first Level B Power Design Institute in the industry in Shanghai that has achieved the certification of China Electricity Council and obtained the “Three Standards” (ISO9001, ISO14001, and OHSAS18001) system certification. Intelligence Power has sophisticated planning and design capabilities, and has contracted EPC projects for many times. It is one of the most competitive EPC service providers in private new energy field.

    Investors should know that the natural gas distributed energy station project in the core area of Shanghai International Tourism Resort is planned by Intelligence Power, which also provided consulting, design and overall solutions. This is one of the typical cases of “combining Disney Global Standards with the best local practice” achieved by close cooperation between China and the United States. As the world’s only “international tourism resort” powered by a third party, the natural gas distributed energy station project in the core area of Shanghai International Tourism Resort is listed as a demonstration project of Sino-US energy cooperation, which lays a solid foundation for future Sino-US energy cooperation. Therefore, Intelligence Power is expected to be the first to go global through international capacity cooperation.

    The forming of the national “13th Five-Year Plan” indicates the potential development space of industries with dominant capacities. Clean energy is the best direction for power industry upgrading. Recently, China's new energy industry has also showed a trend of rapid development. With policy support, new energy power generation will no doubt be the industry field with the best growth potential in the future medium and long term. As the engineering projects of Intelligence Power getting mature, Smarter Energy will continue to expand overseas business with a full range of energy system solutions.