Far East in Davos: The Fourth Industrial Revolution — Turing Point of Manufacturing Industry
On June 27, the 2017 Summer Davos solemnly opened in Dalian. On the forum, more than 2,000 participants from more than 80 countries came together and discussed on “Achieving Inclusive Growth in the Fourth Industrial Revolution”. In the following over 200 meetings, participants discussed the impact of the industrial revolution, explored new approaches to innovative and inclusive development, and put forward inspiring suggestions for the sustainable development of the world economy.
As the representative of Chinese manufacturing industry, Far East Holding Group Co., Ltd. also attended the forum and briefed participants on the Far East Smarter Energy Co., Ltd. (hereinafter referred to as “Smarter Energy”, stock code: 600869) and its experience of the transformation from a traditional manufacturing factor to “the world leading service provider of smart energy and smart city system”. It was learnt that Smarter Energy focused on smart energy system and eco-service system by centering on “Internet Plus”, and built its business structure ranging from planning, designing, product manufacturing, operation, maintenance, monitoring, energy efficiency management and outsourcing. The business covers the whole life cycle of the construction and service of energy system. All efforts done by Smarter Energy have established a new benchmark for transformation and upgrading of the manufacturing industry.
To draft a prospective layout for Smarter Energy by leveraging the Fourth Industrial Revolution
As is known, Industrial Revolution is the engine to drive the development of human society. In the First Industrial Revolution, steam engine has been invented as the driving force that helped to realize mechanized production. In the Second Industrial Revolution, electricity has been generated to make mass production come true. And in the Third Industrial Revolution, electric equipment and information technologies have been used for automatic manufacturing. In this connection, every revolution can make the productivity rocket up. As the times never stop going forward, innovation is the ever-lasting pursuit of dynamic and enthusiasm of the society.
Based on achievements of the Third Industrial Revolution, the Fourth Industrial Revolution proposes stricter standards: more intelligent, more environmentally-friendly and more reasonable. In 2003, following the strategy of “Industry 4.0” proposed by German government, China and other countries put forward “Industry 4.0” development plans conforming to the trend of the times and their national realities. In those plans, “smart manufacturing”, “smart factory” and “Internet of Things technology” have drawn the attention of the world.
With the approaching of the Fourth Industrial Revolution, Far East Holding Group Co., Ltd. takes a lead in transforming towards smart energy. As early as 2014, the listed Far East Cable Co. Ltd. has been renamed Far East Smarter Energy Co., Ltd. by Far East Holding Group Co., Ltd. In order to build an effective closed loop for energy system, the company has been seeking for opportunities to integrate different fields including “power supply, energy storage, power transmission, power distribution, power marketing and energy management of terminal users” by applying big data to design and plan of energy projects, distributed generation projects, and smart operation and maintenance projects.
To transform from “Created in China”to “Intelligent Manufacturing in China” by following the innovation-driven path and seizing the opportunities
In the current Fourth Industrial Revolution, advanced technologies such as the Internet of Things, big data and artificial intelligence are emerging to change people’s life and outdate the development space and model of conventional industries. In the sharp development of the economy, we have to rise to challenges if we do not want to be pushed backwards and want to survive in the long course of the economic development. Therefore, opportunities brought by the Fourth Industrial Revolution impel the manufacturing industry of China to transform from “Made in China” to “Created in China”.
And it is amid the Fourth Industrial Revolution that Far East Holding Group Co., Ltd. founded the listed subsidiary—Smarter Energy in accordance with the national development strategy of “Adjusting the Structure, Promoting the Transformation”. The Smarter Energy devotes itself to “the world leading service provider of smart energy and smart city system”, transforming from “Made in China” to “Created in China and Intelligent Manufacturing in China”.
To establish a model of transformation in manufacturing industry by further optimizing industrial pattern
In 2014, Smarter Energy started to set foot in distributed generation by acquiring Intelligent Power, a leading private power engineering enterprise with Class-A certification of design. And since 2015, it has begun to shift its eyes to Engineering-Procurement-Construction (EPC), has transformed to “solution provider of clean energy and smart grid” and has shared the market of selling electricity. Besides, Smarter Energy started to distribute electricity by acquiring SEMEUREKA Electrics, a high-tech enterprise integrating first and secondary equipment terminals to detect faults and analyze data.
In 2015, by wholly acquiring First New Energy, Smarter Energy became a part of the industry chain of new energy vehicles, distributed business of energy storage and developed battery cloud platform. By investing Beijing Traffic Date, Smarter Energy positioned itself for data traffic entrance of smart city and smart traffic to build traffic cloud platform and collect the data of traffic users; by investing TOAERO whose unmanned aerial vehicles (UAV) are applied for power line inspection, fault monitoring and data collection in the industry, Smarter Energy optimized its business layout of operation and maintenance monitoring, and energy efficiency management and control. In 2017, Far East entered into the finished electric vehicle sector by cooperating with Detroit Electric to found a joint venture, thus building the resources and advantages in the new energy vehicle industry chain.
Up to now, Smarter Energy has formed four major business sectors, that are, smart electric products, power system of new energy vehicles and power storage equipment, clean/new energy system, and online platform for electronic and electrical power and equipment. Relying on the four sectors, Smarter Energy built the whole service industry chain of smarter energy system covering power generation, energy storage, power transmission, power distribution, power marketing, and energy efficiency management of terminal users, thus providing one-stop energy system service for the clients.
At present, Far East Holding Group Co., Ltd. takes the “main business + investment” as its strategic positioning. And its annual operating income has increased to nearly RMB 40 billion. In 2016, its brand value has reached RMB 35.268 billion. In more and more intense momentum of the Fourth Industrial Revolution, Far East Holding Group will seize opportunities of transforming given by the times. By further optimizing the industrial structure and developing the smart energy industry, Far East will become more and more thriving while injecting more impetus into the transformation from “Made in China” to “Created in China and Intelligent Manufacturing in China”.