Asia Electrical Power International Group, Inc. (Asia Electrical) is the U.S. parent of a major Chinese electrical equipment manufacturer, Asia Electrical Power Equipment (Shenzhen) Co. Ltd., known as AEPE. Since 2007, Asia Electrical stock has traded in the U.S. under the OTC Bulletin Board symbol AEPW.
Through AEPE, established in 1994, Asia Electrical has established a track record of consistent revenue growth and profitability, with a domestic customer base spanning more than 30 Chinese provinces. Asia Electrical recently expanded its production facilities with the opening of its new 330,000 sq. ft. state-of-the-art facilities which increased manufacturing capacity by more than tenfold. Its successful entry in the international arena in January of 2008 was highlighted with over $3 million in orders in the first month alone. Its products, primarily for the medium-voltage network system, include cabinet-type substations, outdoor switching stations, cable branch stations and switching elements such as load break switches and circuit breakers.
As one of the leading suppliers of crucial electrical gear in China, Asia Electrical benefits directly from the Chinese government’s aggressive efforts to expand the power grid in less-developed regions. The nation’s current five-year plan for economic development, launched in 2007, calls for spending approximately $65 billion on medium-voltage infrastructure.
Asia Electrical’s growth strategy is based on expansion within China, spurred by government investment, and on new business overseas. Outside China, Asia Electrical has begun marketing its switching products to power suppliers in South and East Asia and the Americas. It expects to increase its revenues substantially in coming years through internal sales growth as well as accretive acquisitions.
Asia Electrical Power Equipment (Shenzhen) Co. Ltd. (AEPE) specializes in the manufacturing and marketing of complete high, medium and low voltage power distribution equipment focused on the secondary power distribution industry (12-24KV) which has been experiencing tremendous domestic growth in China due to the country's recent phenomenal economic vitality. The company's principal products include cabinet-type substations, outdoor switching stations, cable branch stations and switching elements such as load break switches and circuit breakers.
AEPE has well established and long standing cooperative relationships with such world renowned high and medium voltage switch-gear manufacturers as the ABB Group of Switzerland and Schneider Electric of France, and served as each company’s distribution partner in China in its early years. Today AEPE retains the authorization to use the products of, and work closely with, these major European companies, each of which is a global leader in its industry, to assemble switchgears and other products.
In 1996, AEPE succeeded in developing the first medium voltage AGN15-12 (I) SF6 ring main unit in China, the core part of which is the ABB SF6 load break switch that optionally can be replaced by circuit breakers and insulating switches. Subsequently, AEPE completed R&D for the first medium voltage SF6 load break switch, AFL-12D (FLN36- 12), and the first vacuum circuit breaker in China, the VDM6. Both of these products fully comply with the GB/IEC standards.
By combining high level technology with advanced equipment, an experienced management team, effective sales administration, strict quality control systems and a philosophy centered on customer satisfaction, AEPE has realized consistent double digit growth in annual sales. With the recent expansion of its production facilities, AEPE is well positioned to take full advantage of the overwhelming increase in domestic demand due to recent
AEPE has implemented an ISO9001-certified quality control system and attained industry recognition by being granted the Chinese National compulsive CCC certificate. The Company recently attained the National Power Authority of China’s certification as a "Key Manufacturer" and the Designated Manufacturer status.
- AEPE recently completing construction of a new 330,000 square foot state-of-the-art industrial facility (including manufacturing capacity totaling 158,000 square feet) in Shenzhen, Guangdong Province, which will accommodate a workforce exceeding 300 employees. Current personnel strength includes support from electrical experts and engineers with strong backgrounds in such advanced equipment as digital control punch machines, computerized laser cutting, engraving and corresponding measuring, to ensure each product is manufactured with superior quality.
- AEPE is growing into one of the leading companies in its industry in China, driven by a corporate commitment towards manufacturing the finest products inspired by continuous innovation in electrical technology, its application and its management. Its products have proven highly successful in various applications - from electricity distribution to mining and infrastructure for industrial districts, from civic buildings and residential communities to the natural gas, coal and oil field construction sectors.
- AEPE has become a leading player in its market, focused on manufacturing and marketing of high, medium and low voltage complete-set equipment: cabinet-type electric substations, outdoor switching-mechanisms, cable feeder pillars and switching elements. Based on its increasing sales over the last few years (in which the company's customer net covered more that 30 provinces and cities), AEPE is aggressively expanding its penetration of the electrical equipment market throughout the western provinces of China, as well as actively participating in the development policy established for the country’s inner provinces.
NEW STATE-OF-THE-ART FACILITIES
To meet the pending challenge of obtaining a larger market share from supplying the booming domestic electrical infrastructure market under the economic development stimulus of the Chinese Government's 11th "5-Year Plan", it was critical for the company to improve its production capacity. The result is Asia Electrical's new Industrial Park, which opened in early 2008. Comprising manufacturing facilities totaling more than 330,000 square feet, this Industrial Park was designed to deliver more comprehensive production scope through an enlarged physical plant housing improved machinery and equipment as well as greater personnel resources. In launching this expansion project, management's goal has been to significantly enhance the Company's manufacturing capability in order to satisfy the anticipated drastic increase in both domestic and international demand.
CURRENT AND TARGET INTERNATIONAL MARKETS
MANAGEMENT TEAM
To meet the pending challenge of obtaining a larger market share from supplying the booming domestic electrical infrastructure market under the economic development stimulus of the Chinese
Mr. Yulong Guo, Chairman & Chief Executive Officer
Mr. Guo is 48 years old and has been the President, a Director and the Chairman of Asia Electrical Power International Group Inc. since inception. From 1983 until 1993 Mr. Guo was a senior manager in charge of transportation and storage for the Shenzhen Far East Biscuit (China) Company. During 1993-1997 he was the Managing Director of Schenzhen Tongke Co. Ltd., a trading enterprise focused on manufacturing and marketing. As the founder in 1993 of Asia Electrical's current operating subsidiary - Asia Electrical Power Equipment (Shenzhen) Co. Ltd. (for which he also still serves as President), Mr. Guo has used previous electrical engineering background to successfully shift the Company from being an equipment dealer to becoming a manufacturer. Over the last 14 years, as the Company developed a complete range of products in the Medium Voltage Electrical Power distribution industry, thanks to Mr. Guo’s adept leadership in business development, Asia Electrical has achieved a remarkable market share increase in this rapidly growing industry in China.
Mrs. Xiaoling Chen, Chief Financial Officer
Mrs. Chen is 44 years old and has been Chief Financial Officer, a Director and Board Secretary of Asia Electrical Power International Group Inc. from its inception in 2002. Since 2000, as Vice-President and Board Director Mrs. Chen has been in charge of operations for Asia Electrical Power Equipment (Shenzhen) Co., Ltd. She contributes more than 20 years' experience in corporate financing and handling government relationships that are so critical in China. Her efforts concerning government tenders and governmental financial support for R&D projects have been vital to the growth and capabilities of the Company. From 1995-2000 Mrs. Chen was Administrative Officer for the Shenzhen Libao Electronic Equipment Development Co., Ltd., a security integration system Company developing both software and hardware for security systems used in the Financial, Public Security and Transportation sectors. Mrs. Chen was responsible for all general administrative affairs, including human resources, public relations and communication with Government. From 1983 to 1993 she served as Administrative Officer at the Shenzhen Far East Biscuit (China) Company, where her responsibilities included general administration, communications specifically with government agencies, and human resources.
Mr. Dudley Delapenha, Director
Mr. Dudley Delapenha is a Director of Asia Electrical Power and the Operations Director of Magnum Group International, Inc. His past experience includes serving as Marketing Director for Avani Water Company and Regional Manager of Franchises for Western Canada for Canada Dry Ltd. He is a graduate of the Field Sales Management Institute of New York as well as the Graduate School of Sales Management and Marketing of Syracuse University, New York. Mr. Delapenha is a Canadian resident and serves as Asia Electrical Power’s North American representative.