HEI: Entry into the World’s High-end Power Station EPC Field within Five Years(International Chapter)

Since the 18th CPC National Congress, HEC has ideologically, politically and behaviorally maintained a high degree of consistency with the CPC Central Committee with Comrade Xi Jinping as the core and followed the "5-in-1" overall layout and the "four comprehensive” strategic layout to make state-owned enterprises strong and excellent with perfect assurance.

Over the past five years, we deeply studied and implemented General Secretary Xi Jinping’s thoughts, views, philosophies and strategies on the governance of China;

Over the past five years, we, as the eldest son of the People’s Republic of China, followed the mission of "bearing the hopes of the national industry and highlighting the glamour of China power", held our original will and advanced continuously.

Over the past five years, we expanded with firm and powerful steps.

Over the past five years, we developed through innovation.

Over the past five years, we worked hard to move ahead with constant development and breakthrough in China’s equipment manufacturing industry.

Over the past five years, we advanced bravely on the road of "Letting the world love Made-in-China products".

The consortium of HE Harbin Electric International Engineering Co., Ltd. (hereafter referred to as "HEI") and Saudi Arabia ACWA Company was officially granted the Letter of Award for two 600MW units for the UAE Dubai Hassyan clean coal-fired power station project (Phase I) by Dubai Electricity and Water Authority (DEWA), through which HEI successfully won the development right of the project and signed the EPC contract, marking that HEI has successfully entered high-end power station EPC market in the Middle East.

Standing high to view the world enables one to experience how things change. Climbing to a summit beyond the limit enables one to feel the joy of success.

Following the tempo of the 18th CPC National Congress, HE Harbin Electric International Engineering Co., Ltd (HEI) embarked on new courses one after another, from upholding party building guidance and focusing on reform and development to intensifying strategy driving and optimizing business structure, from making overall plan for overseas market and advancing localized development to enhancing international cooperation and seizing hot-competition market of investment and from continuous management innovation and cultivating development advantage to building talent tiers and pooling core competitiveness. Over the past five years, HEI shouldered the glory and dream of Harbin Electric brand to advance around the world, successfully established itself in the world’s high-end power station EPC market, and ranked 67th in the list of TOP 250 Global Contractors and 13th among the Chinese enterprises in the list of TOP 250 Global Contractors.

Bhikki 1180MW Combined Cycle Power Station, Pakistan

Data Results Present the Development Acceleration

Over the past five years, HEI witnessed the rising "going out" big data and the rising position in the international market, reported more and more world records in its overseas collection projects, and presented high-speed development overall.

By far, HEI has contracted nearly 50 power station projects in more than 20 countries in Asia, Africa, South America and Europe, with total installed capacity over 38,000MW, total contract value of USD 13.2billion and exchange income of USD 5.127 billion. Particularly in recent five years, HEI has kept expanding its domain in overseas markets, and extended its business to more than 40 countries and regions around the world, with 8 subsidiaries and branches, 11 commercial representative offices and 5 after-sales service centers overseas. It has 18 projects under construction in 10 countries and regions and the total contract amount is USD 8.85 billion.

During the "12th Five-Year Plan" period, HEI kept expanding its development scale, witnessed its increasing scale and benefit indexes, cumulatively realized the operating revenue of RMB 21 billion, total profit of RMB 1.17 billion, the officially contracted amount is RMB 56.6 billion and the foreign exchange revenue through exports is USD 1.828 billion. In 2016, HEI’s operating revenue exceeded RMB 10 billion for the first time, the operating revenue reached RMB 10.029 billion, an increase of 50.99% yoy. The officially contracted amount is RMB 15.8 billion, an increase of 96.52% yoy.

In 2016, HEI ranked 16th in the list of the Top 100 Chinese enterprises in overseas project contract business in terms of the turnover, and 18th in terms of new contract amount in the list of the Top 100 Chinese  Overseas Project Contractors. In 2014, HEI-contracted Banten Project won the Asia-Pacific Power Award of Best Project Financing. In 2013, HEI won the GE Award of Most Valuable Customer.

Nawaz Sharif, Former Prime Minister of Pakistan Visits the Bhikki 1180MW Combined Cycle Power Station Project

Strengthen the Strategy Driving to Develop the High-end Market

With the CPC Central Committee’s efforts to speed up "Going Global" strategy and proposal of the Belt and Road Initiative, HEI identified clearer thought to develop the international market. It actively gave play to the leading role of international pioneers and main force of the Group, comprehensively implemented the three-step strategy of “going out, going into it and going up”, cooperated with brother enterprises in overseas markets and brought Harbin Electric’s units abroad. Facing increasingly fierce competition in overseas markets, HEI has always held the strategic focus, enhanced the strategic execution and realized the progressive development.

In the process of going out, relying on the products independently researched and developed by HE and HE’s world-leading technical strength, HEI has very well completed its contracted overseas projects and they have been praised widely. HEI has constantly accumulated good reputation and brand notability internationally.

In the process of going deeply into the local markets, HEI made painstaking efforts to develop overseas markets, gradually expanded its overseas market network layout, and followed a well-designed plan to increase overseas branches in key regional markets and emerging markets, forming the largest overseas marketing network of the sector consisting of "overseas commercial representative offices, overseas subsidiaries (branches) and overseas 4S after-sales service centers".

In the process of going up to a high-end field, HEI centered on the development thought of "all-around marketing and high-end positioning", insisted on the high-end line and developed mainstream and high-end markets. In 2016, HEI won the project of UAE Dubai Hassyan 4X600MW clean coal-fired power station with the contract amount of USD 2.35 billion, successfully entered the high-end power market in the Middle East and further expanded HE’s notability and influence in the Middle East even in the world’s power market.

Hassyan 4×600MW Clean Coal-fired Power Station, Dubai

Speed up Business Optimization and Upgrade Overseas Business

In the process of building the global development pattern, HEI not only establishes its brand, but also makes its brand famous. Facing the severe situation of the international market, HEI gradually adjusted and optimized its international business structure, formed the four major business segments of "EPC, After-sales Service, Finance and Investment". After HEI conducted a serious study and judgment of the market situation, HEI put forward the wholly-new "Investment plus EPC plus O&M" project development mode, drove the EPC business with its investment business and directed the upgrading of its overseas business. Over the past five years, from in-advance exploration of BOT and BOO projects to locking and winning the first electric power investment project — Hassyan project with the worldwide influence, HEI created a precedent for Chinese companies entering the international power market in the Middle East in manner of investment, financing and EPC for the first time, marking that HEI has advanced towards the new stage of fine and further development from the planning and layout stage in the investment business segment.

Balloki 1223MW Combined Cycle Power Station, Pakistan

Stick to Brand Value and Make the Brand of HE Group Brilliant

Adhering to the philosophy of "Contracting a Project, Building a Brand", at present, HEI is carrying out 18 overseas projects. Multiple world-level key projects and landmark projects along the "Belt and Road" that have been completed by HEI have won high praise in the international market, highlighted the brand of HE and furthermore made the brand of HE brilliant.

HEI-contracted Dubai Hassyan 4X600MW Clean Coal-fired Power Station Project is a typical project in implementing China’s Belt and Road Initiative, for successful realization of China enterprises’ "going out" strategy and through the mode of international production cooperation. Hassyan project, as the first coal-fired power station in the Middle East, presents strong demonstration effect and the role of stimulating surrounding areas. The project executes the highest standards in the world, adopts the international project management system standard integrating the highest requirements stipulated in American standards, European standards, German standards, Japanese standards, etc., and it is characterized by high ecological, environmental and EHS requirements, many international enterprises’ participation in the project execution, and combination of China-offered investment and financing, EPC and design by Chinese enterprises, Made-in-China equipment and construction by Chinese contractor. The first unit of the project is planned to be put into commercial operation in March 2020, to provide EXPO 2020 Dubai with power guarantee. After completion, Hassyan power plant will provide Dubai with 20% of the power supply and greatly lower local residents’ electricity cost.

China-Uzbekistan "Belt and Road” landmark project — Angren 150MW Coal-Fired Power Plant Project

The HEI-contracted Pakistan Bhikki 1180MW Combined Cycle Power Station Project and Balloki 1223MW Combined Cycle Power Station Project are completely EPC-based turnkey projects, both of which are large gas-fired power generation projects developed by the Pakistan government. The two projects are equipped with 9HA gas turbines manufactured by GE. 9HA gas turbines, with the world’s largest capacity, the highest efficiency and the most advanced technology, were first used in the power station in the world and the first 9HA gas turbine in Asia was used in Bhikki Project. Bhikki Project was started on September 22, 2015 and Balloki Project on November 2, 2015. It took only 17 months and a half from when 1# gas turbine of Bhikki Project was started to when it was synchronized, setting a world record in the field of the heavy-duty gas turbine power station construction. Balloki Project has set a series of world records in terms of installation and commissioning of the H-class gas turbine. For example, 1# gas turbine successfully passed the performance test and completed the commercial operation declaration (COD) on August 13, 2017. It only took 104 days to finish the installation and commissioning of the 9H gas turbine, while the average cycle of installation and commissioning would be about 180 days under normal conditions. Previously, the shortest cycle of installation and commissioning of the 9H gas turbine was about 120 days. Therefore, Balloki Project sets a new record in terms of the shortest cycle of installation and commissioning of the 9H gas turbine, providing a perfect demonstration of “China Speed”. Meanwhile, in the 168h reliability run test, 2# gas turbine of Balloki Project generated net electricity of 397MW, far more than the contract guaranteed output of 380MW, which fully demonstrated HEI’s brand value of “Give Priority to Quality and Keep Improving”.

Zetes Phase III 2×660MW Supercritical Thermal Power Project, Turkey

The HEI-contracted Turkey Zetes Phase III 2×660MW Coal-fired Power Station Project is HEI’s first landmark project in Turkey’s thermal power market, and the first major project of Chinese EPC contractors in the European market, which is related to China’s Belt and Road Initiative. The 2 units in the project were the HE-manufactured 660MW supercritical thermal power units, and were completed 67 days and 36 days prior to the contract time limit, creating the record of the shortest construction cycle in Turkey’s 2×600MW projects.

The HEI-contracted Indonesia Banten Phase I 670MW Supercritical Coal-fired Power Station Project adopted the HE-manufactured equipment for all of its units. The project entered the commercial operation (COD) on March 28, 2017. It is the first task in the five-year 35,000 MW electricity plan (2015-2019) for launched by the Indonesian government, and also the only IPP power plant project to be put into commercial operation. On April 16, 2017, the project successfully passed the 720h continuous reliability test run in the first trial, fully proving high quality and reliability of HE’s power generation equipment and highlighting the strength of "Made in China" and "Constructed by China" around the world.

Banten 670MW Supercritical Coal-Fired Power Station, Indonesia

Our Innovation Cooperation Mode Expands Our Circle of Friends for in International Cooperation

Over the past five years, HEI made constant efforts to enhance international cooperation, and actively explored the way of "uniting"-to-"integrating" with international famous enterprises to accelerate international cooperation. By far, HEI has developed the best cooperation partners around the world in business fields of investment, financing, legal affairs, taxation, finance, equipment supply, quality control and engineering design, including cooperative enterprises of GE, SIEMENS, American BV(design), American Worley Parsons (design), Bureau Veritas (BV) and Japanese Toshiba; international power investors of Saudi Arabia ACWA, French EDF, French GDF, Malaysia Genting Group , UAE DUBAL, and China GCL-Poly; financial cooperators of China Export & Credit Insurance Corporation, Agricultural Bank of China, Bank of China, China Development Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, China Construction Bank, China Merchants Bank, Standard Chartered Bank and the Hongkong and Shanghai Banking Corporation Limited. With the increasing friend circle for the international cooperation, HEI’s market competitive force has been enhanced obviously.

Cooperating with the Ecuadorian people to overcome difficulties together

Continue Management Innovation and Advance from System Construction to Culture Construction

As an international enterprise, HEI is destined to take a diversified development road. With its continuous expansion in the medium/high-end overseas markets, HEI enhanced its management mode innovation and optimization. It introduced the PMS project management system, conduced its organization change, built the leadership "7E" model, established a statistical statement system, upgraded the project management system and built a unique enterprise culture, making its management level comprehensively geared into international companies of its kind.

In recent years, HEI has established the organization mode and management mode of the business division system, formulated 96 company-level management systems, established the corresponding financial management system and statistical statement analysis system, solved four bottlenecks influencing enterprise development in design management, HR management, risk management and project standardization management, etc., established the standard project management systems, flows, methods and templates and improved the execution and standardization of the business division management and project management.

Our corporate culture, as a reflection of enterprise’s comprehensive strength, has become the core and lasting competitive force in HEI’s development. While publicizing and implementing "7 unified things" of the Group culture, HEI further enriched the connotation of its enterprise culture, and formed the corporate culture system suitable for international development taking the "5 spirits" as the foundation, "5 cultural ideas" as the fundamental and employees’ core values of "Courtesy, Tolerance, Credit, Action and Favor" as the core, laying a solid foundation for enhancing the Company’s core competitive force and fueling healthy and rapid development of the Company.

500KV & 230KV Transformation Lines and Substations Project, Ecuador

The Sudanese government held a ceremony at the work site of the Sudan Upper Atbara Hydropower Project to solemnly celebrate that the first unit of the Upper Atbara Hydropower Project manufactured and constructed by HE was successfully synchronized for power generation and put into commercial operation.

Barapukuria 275MW Coal-Fired Thermal Power Project, Bangladesh

Facing new situations, tasks and requirements, HEI will follow the requirements of "righteously making state-owned enterprises strong and excellent” as instructed by General Secretary Xi Jinping, continue to strengthen its main business, optimize its brand, expand its market and improve its comprehensive competitive force. It will further give play to the role of HEC as a main force in "going out" and boosting the "Belt and Road", keep its original intention, continue to move forward and mark the successful opening of the coming 19th CPC National Congress with excellent achievements.

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