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China National Electrical Equipment Group was established in Shanghai Bai Zhongquan served as chairman Pei Zhenjiang and Zhou Qun served as directors

On September 25, the State-owned Assets Supervision and Administration Commission of the State Council issued an announcement stating that the State-owned Assets Supervision and Administration Commission of the State Council shall perform the responsibilities of investors on behalf of the State Council after the approval of the State Council to establish China Electric Equipment Group Co., Ltd. The list of enterprises for which the investor is responsible.

According to the State-owned Assets Supervision and Administration Commission of the State Council, related enterprises of the State Grid Corporation of China and China Xidian Group Co., Ltd. are included in the China National Electric Equipment Group as a whole. China Xidian Group will no longer be an enterprise that performs the responsibilities of investor by the State-owned Assets Supervision and Administration Commission of the State Council.

No. 2 of 2021

Announcement on the establishment of China Electric Equipment Group Co., Ltd.

With the approval of the State Council, the China National Electrical Equipment Group Co., Ltd. was established. The State-owned Assets Supervision and Administration Commission of the State Council will perform the responsibilities of investors on behalf of the State Council. Related companies of State Grid Corporation of China and China Xidian Group Co., Ltd. are incorporated into China Electric Equipment Group Co., Ltd. as a whole. China Xidian Group Co., Ltd. ceased to be an enterprise performing the responsibilities of investor by the State-owned Assets Supervision and Administration Commission of the State Council.

SASAC

September 25, 2021

It is understood that China Electric Equipment Group is formed by the reorganization and integration of China Xidian Group and State Grid Corporation's Xu Ji Group, Pinggao Group, Shandong Electric Power Group, NARI Hengchi, NARI Telstar, and Chongqing Borui. An important state-owned enterprise directly supervised by the State-owned Assets Supervision and Administration Commission of the State Council.

According to the data from Tianyan Check, China Electric Equipment Group has a registered capital of 100 million yuan and its registered address is located in Jing'an District, Shanghai. In terms of personnel, Bai Zhongquan is the party secretary and chairman of China Electric Equipment Group; Zhou Qun is the deputy secretary, director and general manager of the group's party committee.

1. International business will be considered for development in Shanghai;

2. Product R&D will be tilted towards Shanghai, the original traditional part will remain the status quo, while the digital and intelligent part will focus on Shanghai's layout;

3. Actively cultivate new listed companies on the basis of four listed companies.

From the perspective of the shareholding structure, the State-owned Assets Supervision and Administration Commission of the State Council holds 66.67%, China Guoxin Holdings Co., Ltd. holds 16.67%, and China Chengtong Holdings Group Co., Ltd. holds 16.67%.

On September 25, the establishment meeting of China National Electrical Equipment Group Co., Ltd. was held in Shanghai. Li Qiang, secretary of the Shanghai Municipal Party Committee, and Hao Peng, secretary and director of the State-owned Assets Supervision and Administration Commission of the State Council, attended the meeting and jointly unveiled the company. Hao Peng, Deputy Secretary of the Shanghai Municipal Party Committee and Mayor Gong Zheng delivered speeches respectively. Member of the State-owned Assets Supervision and Administration Commission of the State Council and Deputy Director Weng Jieming presided over the meeting and read out the company's reorganization approval document. Relevant leaders of Shanghai, Shaanxi, Henan, Shandong and other provinces and cities where the reorganized enterprises are located attended the meeting.

Hao Peng pointed out that the establishment of China Electric Equipment Group is to study and implement the spirit of General Secretary Xi Jinping’s important instructions on the development of the real economy, especially the equipment manufacturing industry, implement the decisions and deployments of the Party Central Committee and the State Council, implement strategic reorganization and professional integration of central enterprises, and promote An important measure and practical action for the high-quality development of my country's equipment manufacturing industry. The party committee of China National Electric Equipment Group should improve its political position, strengthen organizational leadership, and ensure that it effectively promotes the reorganization and integration work in an orderly and effective manner. We must focus on the "bigger of the country", focus on the main responsibilities and main businesses, optimize the business layout, and build a world-class power transmission and distribution equipment group; focus on technological innovation, strengthen key core technology research, promote in-depth cooperation between upstream and downstream enterprises, and build power transmission and distribution The equipment manufacturing industry chain is long; continue to deepen reforms and expand cooperation, deepen the three-year action of state-owned enterprise reform, and build a modern enterprise full of vitality; adhere to the leadership of the party to strengthen party building, comprehensively improve the quality and level of party building in enterprises, and create a party name An excellent central enterprise that promotes common prosperity.

Gong Zheng pointed out that the series of major strategic tasks assigned to Shanghai by the Party Central Committee with Comrade Xi Jinping at the core not only provide significant opportunities for Shanghai's high-quality development, but also provide a broad stage for the development and growth of central enterprises in Shanghai. The establishment of China Electric Equipment Group in Shanghai is a major move by the country to deepen the reform of the power system and optimize the structure and layout of the state-owned economy. It is also a major event for the accelerated development of Shanghai’s equipment manufacturing industry. Inject new kinetic energy into practice, strengthening and excellence. Shanghai will actively cooperate with the State-owned Assets Supervision and Administration Commission of the State Council, give full play to Shanghai’s comprehensive advantages, and fully support China Electrical Equipment Group’s landing operation, deep cultivation of Shanghai, and innovative development, and help the group better integrate into Shanghai, serve the country, and go global, and accelerate its development into a world-class Smart electrical equipment enterprise.

At the meeting, Xin Baoan, Chairman of State Grid Corporation of China, and Bai Zhongquan, Chairman of China National Electric Equipment Group made speeches on the establishment, development and operation of the new group. After the meeting, China National Electrical Equipment Group signed a cooperation agreement with the Shanghai Municipal Government and the Jing'an District Government. Relevant national ministries and commissions, relevant central enterprises, financial institutions, scientific research institutes, and responsible comrades from Jing'an District of Shanghai participated in the above activities.

Xin Baoan said that based on the new development stage, implement the new development concept, build a new development pattern, accelerate the construction of a clean, low-carbon, safe and efficient energy system, and promote the construction of a new power system with new energy as the main body. The innovative development of the manufacturing industry has put forward new and higher requirements. The establishment of China National Electrical Equipment Group is at the right time and shoulders heavy responsibilities. The "14th Five-Year Plan" is a relatively long period to come, and the State Grid Corporation of China will accelerate the construction of an internationally leading energy Internet enterprise with Chinese characteristics. We are willing to work with China Electric Equipment Group to strengthen exchanges and deepen cooperation, make full use of the favorable conditions of Shanghai as a global scientific and technological innovation center, jointly carry out technological innovation and research and development of major key equipment, and jointly overcome the technical and equipment problems faced by the construction of new power systems. Make positive contributions to my country's energy clean and low-carbon transition and the realization of the "dual-carbon" goal.

Prior to September 23, Xin Baoan, chairman and party secretary of the company, Zhang Zhigang, general manager and deputy secretary of the party committee, and Luo Ganyi, chief accountant and party member of the party committee, had a discussion with the principals of Xu Ji Group, Pinggao Group, Shandong Electric Group and other units . Xin Baoan said that he will continue to pay attention to and support the development of the enterprise, and wish the majority of cadres and employees on the new journey, pioneering and innovating, setting sail, making new contributions and creating new brilliance.

The electrical equipment manufacturing industry undertakes the important mission of promoting the development of new energy and ensuring national energy security. China Electric Equipment Group is reorganized and reorganized on the basis of backbone enterprises in the industry such as China Xidian Group, Xuji Group, Pinggao Group, and Shandong Electric Engineering and Improve the independent controllability of core technologies in the field of power transmission and distribution equipment and the modernization level of the industrial chain.

At the subsequent signing ceremony, Wu Qing, member of the Standing Committee of the Shanghai Municipal Party Committee and Deputy Mayor, and Zhou Qun, general manager of China National Electrical Equipment Group, signed a strategic cooperation agreement on behalf of the two parties. According to the agreement, the two parties will give full play to the advantages of China Electric Equipment Group in strategic industries such as electrical equipment and advanced energy storage, clean energy power generation and grid connection, and offshore wind power, and promote the group's innovative development resources to gather in Shanghai, and work together to build a world-class advanced The manufacturing cluster will help Shanghai accelerate the construction of a modern socialist international metropolis with world influence, and help my country achieve the goal of "carbon peak and carbon neutrality". The Jing'an District Government and China Electric Equipment Group also signed relevant cooperation agreements.

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