Smarter Energy: Taking Advantage of the Booming Construction of General Aviation Airports, the Company Signed another Smart Airport Contract worth RMB 160 Million
Recently, Far East Smarter Energy Co., Ltd. (referred to as “Smarter Energy”, stock code: 600869) issued a notice about the bid-winning projects of its subsidiary corporations. During the 13th to 24th in December 2017, the gross amount of its ten-million-yuan contracts signed by the subsidiary corporations is RMB 190 million. Among them, the contract amount signed by Beijing Jinghangan Airport Engineering Co., Ltd. (referred to as “Jinghangan”) is RMB 160 million. The project focuses on the new airport construction in Qingdao, the major hub of the New Eurasian Land Bridge economic corridor and the strategic pivot city of maritime cooperation. With the implementation of the new airport construction supported by Jinghangan, Qingdao will comprehensively reshape its traffic pattern and set an “all-around connectivity” example of the convenient and efficient land, sea and air transportation in the domestic aviation field.
In August this year, Smarter Energy (600869) invested and took over Jinghangan based on its strategic planning and the target to play a leading role in connectivity. And Jinghangan promised to make its commitment deduction of non-net profit surpass RMB 110 million, RMB 143 million and RMB 172 million respectively in 2017, 2018 and 2019. After the M&A, the accumulated amount of the released ten-million-yuan orders of Jinghangan has exceeded RMB 900 million, covering lighting, air traffic control engineering, security engineering and other domestic and overseas professional airport projects. The achievement reflects the professional construction and technical abilities of Jinghangan in various engineering construction fields, manifests its brand reputation and influence, and will positively influence the business acceptance in airport construction. In 2016, China had 2,096 listed general aircrafts, 5,672 listed aviators, and 64 general aviation airports. With the release and implementation of various national policies, especially The 13th Five-Year Plan of General Aviation issued in February 2017, governments of all regions have involved in the trend to develop general aviation and accelerate to build aviation industrial parks. According to the Plan, China will build over 500 general aviation airports, hold over 5,000 general aircrafts, and realize the annual flight volume of 2 million hours and overall industry size of RMB 1 trillion. With the accelerated development of general aviation airports during the 13th Five-Year Plan, Jinghangan will consolidate its position as the comprehensive solution provider of smart airport and lay a solid foundation for Smarter Energy (600869) to reach an impressive achievement.
According to public information, Smarter Energy (600869) is striving to grow into a leading provider of smart energy and smart city globally. During its development, the company never ceases to engage in China’s Belt and Road initiative and promote the course of internationalization. In September this year, the civil airport lighting project undertaken by Jinghangan in Tacheng Airport of Xinjiang, the core region of the Silk Road Economic Belt, passed the industry acceptance, with the airport in official operation. It is noteworthy that Far East Cable Co., Ltd. (referred to as “Far East Cable”), the subsidiary of Smarter Energy (600869) has provided all the cable products for the smart airport and the system design. In the final debugging phase before industry acceptance, Smarter Energy (600869) sent its cable technological engineer from the service department to participate in the on-site debugging to ensure the smooth acceptance and success delivering. The project of Tacheng Airport is the first one under the cooperation between Smarter Energy and its subsidiary corporation to respond the Belt and Road initiative after the join of Jinghangan.
In 2015, Smarter Energy (600869) has established the multi-brand coordinated marketing strategy and kept promoting the cooperation with its subsidiary corporations to develop internal driving force. In the practices, the terminal power distribution products of Far East Cable and Beijing Semeureka Electric Co., Ltd. (referred to as “Semeureka”) have won the bidding of the power distribution network demonstration project of the State Grid (Shandong) with RMB 40.3073 million and RMB 23.1549 million respectively. As the State Grid is paying high attention to the development of power distribution network and regarding it as the key solution to the problem of “two kinds of weakness” (the weak backbone UHV grid and weak power distribution network), Smarter Energy (600869) has seized the opportunity, provided integrated distribution automation solution and thus contributed its share to the automation construction of the power distribution network in Shandong. New Far East Cable Co., Ltd. (referred to as “New Far East”) and Shanghai Intelligence Power Electric Power Engineering Co., Ltd. (referred to as “Intelligence Power”) have engaged in Shandong Wudi Qingneng Liubao first-phase 120MWP hydro-photovoltaic complementary project, realized the total factor output of product, technique and service, and thus supported the development and use of clean energy. Far East First New Energy Co., Ltd. (referred to as “Far East First”) has cooperated with Semeureka in investing the micro-grid power storage station systems of 3MWh and 16 MWh, playing a demonstration and leading role in promoting the utilization of clean and renewable energy, reducing power consumption cost and improving the safety of high voltage power supply.
In the future, based on the internal platform of shared market resources, Jinghangan is expected to help Smarter Energy (600869) to expand its cable, power storage, and distributed energy resource in airport field. It will also give play to its full industry chain and strengthen the competitiveness of smart airport in aviation field, thus laying a solid foundation to tap into the infrastructure construction market under the Belt and Road initiative and reinforcing the company’s strategy to be “the leading service provider of smart energy and smart city globally”.