Hengshun Electric’s development plan

1. The company’s strategic goals

(1) Company vision and business philosophy

Vision: fulfill the social responsibilities of Hengshun Electric and build Hengshun A century-old electrical brand.

Business philosophy: We regard the safety and efficiency of the power grid as our own responsibility, strive for energy conservation and environmental protection of the power grid, meet the needs of customer development and improvement with advanced technology, excellent quality, and good services, and continuously enhance the company's competition. strength and profitability.

(2) The company’s strategic goals

Give full play to the company’s technical, management and product advantages, seize the opportunity of the country’s development of clean energy and smart grids, and use technology to Research and development continuously enriches the company's product sequence, optimizes product structure, further expands product market share, enhances the brand awareness of the company's products, and builds the company into a company integrating R&D, design, manufacturing and sales, specializing in power grid energy conservation, environmental protection and power quality optimization. Solutions supplier of power equipment. The company's specific strategic goals include:

1. Professional development strategy

Since the company's establishment, its main business and main products have not changed. The company always aims to meet customer needs as its first goal, firmly grasps the trend of reactive power compensation and filtering technology, and provides customers with a diverse selection of reactive power compensation and filtering devices; at the same time, it has developed related products such as current transformers and voltage transformers. , cultivating new profit growth points. Through the implementation of R&D plans and investment projects, the company is developing towards specialization and scale at a high technical level, and strives to improve the market competitiveness of its products.

2. Technological innovation strategy

The company continues to clarify the dual-power technology innovation strategy of technology and market, emphasizing that the market orientation of products is the basis for enterprise survival. In-depth analysis of market demand, continuous R&D and innovation of related technologies and products, while meeting market demand, leading and cultivating the market, forming a good interaction between technological innovation and market demand.

3. Market expansion strategy

Seize the market opportunities arising from the development of smart grids, UHV transmission, wind power, and electrified railways, and consolidate the company’s traditional reactive power compensation device market At the same time, it continues to develop the market of static dynamic reactive power compensation devices represented by SVC. Closely link technology research and development with market demand, use high-quality products to open up markets, continuously improve the marketing network, and gradually build a multi-level marketing system covering the domestic market with the State Grid, China Southern Power Grid and enterprises outside the power system as the core, and actively expand overseas market and continue to increase market share.

4. Talent training strategy

The company will continue to build a human resources structure that conforms to the characteristics of innovative enterprises, improve the training and incentive mechanisms for internal employees, and encourage employees to cooperate with the company Develop simultaneously, and at the same time increase the introduction of external personnel, so as to achieve sustainable development of the career of the company's employees while the company is growing innovatively.

(3) The company’s development goals in the past three years

1. In the next three years, the company will continue to maintain its advantages in the field of high-voltage reactive power compensation and filtering, making the company Products are developing in the direction of intelligence, environmental protection, stable performance, higher voltage levels, and larger capacity; relying on power electronics technology, improving the technical level of primary equipment and realizing the integration of primary equipment and secondary equipment; implementing high-voltage reactive power compensation devices Product upgrades and industrialization provide reactive power compensation and filtering management products for smart grids and UHV transmission.

(1) Through the implementation of fundraising projects, the industrialization of MCR-type SVC and TCR-type SVC is realized. The company’s product structure tends to be optimized and profitability is stronger.

(2) Continue strategic cooperation with Xi’an Jiaotong University and other institutions to promote parallel and filter capacitor devices for ultra-high voltage and UHV DC transmission systems, ultra-high voltage series compensation devices and large-capacity UHV AC transmission Research, development and industrialization of parallel compensation devices.

(3) Independently develop electronic transformers for ultra-high voltage and ultra-high voltage power grids to achieve industrialization.

2. Build a unified technology development platform with the R&D center as the core, integrate various scientific research resources of the enterprise, and realize the ultimate sharing of test sites, test equipment, research data and basic research results; and Many well-known domestic scientific research institutes have established a stable and win-win R&D cooperation mechanism to accelerate the research progress of ongoing research projects and promote the industrialization implementation process of R&D results; they have completed the construction of experimental testing centers to provide basic testing and experimental projects for the company. ensure.

3. Increase the construction of marketing network and realize the transformation of the company's sales model. In the next three years, we will build a marketing network system including the sales headquarters, Beijing, Xi'an, Guangzhou, Shanghai, Chengdu, and Xinjiang marketing centers (branch offices), and establish a three-level management of sales headquarters-sales branches-local offices. Institutions, get closer to the market and customers, quickly obtain market information, respond to customer needs, and provide customers with more targeted products and services.

4. Strengthen internal management and talent training. Further improve the company's various management systems and promote the implementation of the 6S management model. Based on the company's existing personnel base, we will increase the introduction of external talents, implement a talent strategy of both internal training and external absorption, and build an efficient, capable and professional management team and technical team.

II. Measures to be taken to enhance growth, enhance independent innovation capabilities, and enhance core competitive advantages

(1) Technology R&D development plan

< /strong>Further rationalize the company's R&D mechanism, enhance the interaction between R&D and marketing departments, and implement market-oriented R&D strategies. Establish an experimental testing center, improve the company's R&D infrastructure, provide experimental support for the company's R&D projects, accelerate the practical application and industrialization of new technologies, and at the same time improve the company's basic testing level to further improve R&D efficiency and R&D quality. Equip a certain amount of technical research and development force in the marketing network to respond to the personalized needs of customers in a timely manner. When the time is right, set up a research and development base in the Xi'an branch to attract outstanding research and development technical talents and further enhance the company's research and development strength.

Strengthen joint R&D and innovation work with well-known scientific research institutes in the industry such as State Grid Electric Power Research Institute, Xi'an High Voltage Electrical Appliance Research Institute Co., Ltd., Xi'an Jiaotong University, Wuhan University, etc., to Conduct special research on the industry's leading technical problems, promptly follow up on the latest scientific research results of research institutions, realize rapid industrialization of products when internal and external conditions are met, shorten the company's product development and production process update time, and seize the market Take the initiative.

Maintain the level of investment in research and development expenses for the research, development and introduction of new technologies, new processes and new equipment.

Improve the incentive mechanism for research and development and technological innovation, and share the benefits brought by innovation with innovators by quantifying the effects of innovation; favor innovative talents in terms of salary, benefits and promotion opportunities; regard innovation as a An important indicator for the performance appraisal of employees, especially technical staff and managers.

(2) Marketing and market expansion plan

1. Strengthen the construction of marketing network that radiates across the country

Adhere to the direct selling-based marketing model and build a marketing network through The implementation of the project further expanded the sales network of the company's products. Improve the sales organizational structure and expand the size of the sales team. Strengthen sales promotion efforts in key sales areas and key industries, such as power system customers such as North China Power Grid, Central China Power Grid, China Southern Power Grid, and large power consumption industries such as mining, steel, metallurgy, coal, petroleum and petrochemicals. The company will build the following marketing network System:

2. Improve the incentive and restraint mechanism and increase the enthusiasm of the marketing team for market development

The company breaks down marketing goals and tasks layer by layer, implements them to each person, and implements monthly assessments. Rewards will be given based on the completion of sales targets and the collection of accounts receivable, and the survival of the fittest and competitive recruitment mechanisms will be strictly implemented. Use a good incentive system to fully stimulate the enthusiasm of marketing personnel, thereby creating a learning and combat-oriented sales team and laying a good foundation for the steady development of market expansion work.

3. Strengthen the construction of after-sales service system

The company attaches great importance to product after-sales service. As the sales scale increases, the company will increase the number of after-sales service professionals and gradually provide sales distribution services across the country. The company is equipped with full-time after-sales service personnel and provides regular professional training to these after-sales personnel. It adheres to the after-sales service concept of first eliminating difficulties for customers and then conducting responsibility analysis, and promptly detects problems by establishing a standardized after-sales service process manual and an after-sales service feedback mechanism. Problems existing in the company's products, continuous improvement of product quality, and win more customers.

4. Actively expand market space outside the power grid system

On the basis of consolidating the existing power system market, strengthen investment in wind power generation, electrified railways, rail transit, large-scale mines, The marketing efforts in metallurgy, steel, chemical and other industries are focused on expanding markets with strong demand for reactive power compensation and filtering devices.

5. Enhance the brand image and participate in international market competition

The success of this fundraising will effectively enhance the company's brand image and make the company's brand more acceptable to domestic and foreign customers. The company will explore foreign markets represented by the Middle East, Central Asia, Southeast Asia, etc. to consolidate and enhance the company's industry position, enhance profitability and the ability to withstand risks.

6. Take the initiative to establish a sales model for energy contract management

In April 2010, the National Development and Reform Commission, the Ministry of Finance, the People's Bank of China and the State Administration of Taxation jointly issued the "On Accelerating the Implementation of Contract Management" "Opinions on Energy Management to Promote the Development of Energy-saving Service Industry", which proposes support measures such as increasing financial support, implementing tax support policies, and improving financial services for the development of the energy-saving service industry. In order to comply with this industry trend, the issuer will try to use energy contract management to sell some products in the future sales model to achieve the best win for the company and customers.

(3) Human Resources Development Plan

The company will strengthen human resource management and development, and cultivate a positive corporate culture under the guidance of a people-oriented spirit to Good job remuneration, broad career development space and excellent corporate culture attract and retain talents; further improve the human resources training system of selection, employment, education and retention, and implement employee training plans and continuing education plans in a hierarchical and focused manner , improve the overall quality of employees.

1. R&D team building

According to the company’s development needs, focus on cultivating and introducing high-quality technical R&D talents, continuously enhancing the technical strength of the R&D team, and building a team with industry experts as the core , an inclusive and high-level R&D team; at the same time, we will strengthen cooperation with universities and research institutions, introduce technical leaders and expert senior talents with practical experience and capabilities, and establish a team of senior scientific and technological talents that can adapt to market needs.

2. Management team building

The company's management team building is carried out through a combination of internal training and external recruitment. On the one hand, it directly recruits employees from the company's production line, R&D department and management team, etc. Internal channels select people with both ability and political integrity to join the company's management team; on the other hand, through external recruitment, we obtain a group of talents with rich management experience and innovative awareness. In addition, the company's middle and senior management teams are regularly trained, and methods such as overseas study and on-the-job training are used to enhance the management knowledge and theoretical level of the management team.

(4) Acquisition and merger plan

The company will always adhere to the provision of power quality management equipment as its main business, which will help enhance the core technology strength and expand the market Based on the principles of scale, conducive to improving the industrial chain, and conducive to improving the product structure, we will track and explore suitable acquisition targets, and when the time is ripe, choose to acquire those with M&A value within the industry or associated with the industry (in the industry) Enterprises on the chain and scientific research institutions that master relevant advanced technologies, etc.), thereby achieving the goals of technological leadership, economies of scale, professional collaboration, and intensive management.

(5) Refinancing plan

The company will use this public issuance of shares as an opportunity to focus on the construction of investment projects with raised funds, and use the capital market to The function of direct financing is to strengthen capital operation, continuously expand new financing channels, optimize capital structure, and reduce financing costs. At the same time, we raise short-term working capital and long-term capital in stages and at low cost, and maintain a stable asset and liability structure to provide financial support for the company's long-term development.

Improve the utilization rate of funds, support the company's sustainable, stable and healthy development, and maximize shareholder value.