"Internet Plus" -- the Light of Smart Energy Promotes the Development of Clean Energy

During the 13th Five-Year Plan period, China pays attention to the strategic adjustment of energy structure to actively develop clean energy like natural gas, nuclear power and renewable energy and reduce coal consumption proportion, so as to promote the continuous optimization of energy structure. The 13th Five-Year Plan for Energy Development points out that during the 13th five-year plan period, China aims to raise the share of non-fossil energy in total energy consumption to more than 15%, natural gas energy to 10%, and decrease the share of coal to under 58%. By 2020, the total solar power will reach 110 million KW, of which 60-million KW is generated from distributed photovoltaic, 45-million KW from photovoltaic power station and 5-million KW from solar thermal electric power generation. There is still space for substantial growth in such clean energy as photovoltaic during this period.

Far East Smarter Energy Co., Ltd. (hereinafter referred to as Smarter Energy, stock code: 600869), the whole industry chain service provider of clean energy system, has been following the national strategy of “Internet Plus” Smart Energy closely during the 13th Five-Year Plan period. As for Internet electrics and electronics platform, the company has comprehensively upgraded vertical e-commerce platform and material trading platform, and set up the material trading center. The subsidiary, Far East MMBao Network Technology Co., Ltd., has formed four product lines, namely "wire mall, home to cables, metal fittings, electrics and electronics ". It has also integrated PC end, mobile App and H5, connecting the upstream and downstream enterprise customers through "information + trading + services + finance". At the same time, the company gives strong supports to the development of Shanghai Intelligence Power Engineering Co., Ltd. (hereinafter referred to as “Intelligence Power”) with the establishments of Far East Integrated Technology Co., Ltd. and Far East Energy Services Co., Ltd., as well as the investment in Suzhou Taigu Electric Power Co., Ltd. and Suzhou Forever Instrument Transformer Co., Ltd. The enterprise has improved the system integration platform of development, construction, transport and trade of new energy power station, practicing complete energy Internet closed loop of "power supply, energy storage, transmission, distribution, power sales, energy efficiency management of end user and energy saving cloud platform", and perfecting of strategy layout of "Internet Plus " Smart Energy.

Smarter Energy (600869) has won the Award of Excellent Service Provider for PV Power Station in China and has been shortlisted for the top 20 EPC General Contracting Enterprises of PV Power Plant for two consecutive years, and has obtained reaffirmation by the new high-tech enterprises. As for power design and engineering, it has completed 114 clean energy projects of PV, natural gas and wind power, 889 projects of power grid, and such key projrcts as energy station triple supply 35kV substation access project EPC general contracting project of Shanghai Tencent Cloud Data Center, electrical design of KARUMA transformer substation in Uganda, mobile Red Flag contest winning project of Jiangsu Electric Power Company transmission and transformation projects — Suzhou Shutai Park 220kV substation new project and  the new project of 220kV substations along the Great Canal in Yangzhou. The distributed energy station of the corn zone in Shanghai International Tourism Resort has been awarded the first prize for excellent engineering design in the power industry.

According to the Financial Reporting Disclosure issued by Smarter Energy (600869) in 2016, operating income of the company reached RMB 12,243 billion, with a year-on-year growth of 4.54%, and the net profits belonging to shareholders of the listed company deducted non-recurrent profit and loss rose to RMB 270 million. The profit contribution rate of three major business of Smarter Energy system exceeded 60%, with the average gross margin of 23.78%. The subsidiary Intelligence Power's business income achieved RMB 707 million, a year-on-year increase of 94.12%, and the net profit rose to RMB 46.3408 million at a year-on-year growth of 29.37%, which surpassed the performance commitments in 2016. This transcript has proved the adherence of Smarter Energy (600869) to the strategy layout of "Internet Plus" Smart Energy.

Public information shows that Intelligence Power, the subsidiary of Smarter Energy (600869), is a leading private enterprise of clean energy project and a life-cycle expert in energy engineering, boasting qualification certificates of the Grade-A profession of power transmission and distribution project and the Gade-B professional design of power industry issued by Ministry of Housing and Urban-Rural Development, the Grade-B qualification certificate for professional consulting of project issued by National Development and Reform Commission, and the qualification certificate of outsourcing project issued by Shanghai Commercial Committee, with a business scope covering fields of clean energy engineering, power engineering consulting, planning and design, and general contracting.

In the future, Smarter Energy (600869) will take the whole industry chain service of clean energy system as the foothold, to provide customers with solutions across the entire process, from the supply part to the consumption part, from supplication to services, developing the energy services team and exploring electricity allocation and sales business. With the commitment to become the world's leading system service provider for smart energy and smart city to achieve low-carbon green energy development, the enterprise will continuously focus on the "Internet Plus " Smart Energy strategic layout, and adhere to the "endogenous growth + extensional mergers and acquisitions".