Guangming Ribao: SGCC, a Golden Card of Going Global

¡¾New trend of state-owned enterprises¡¯ reform¡¿

Every overseas investment project succeeds with no loss and the business layout extends from developing countries to emerging economies and developed countries¡­At present, SGCC has invested more than $10 billion globally and got $40 billion overseas assets. All foreign outbound investment projects are profitable with an average annual rate of return of more than 12%.

Accelerating the pace of ¡°Going Global¡±

In January 2009, SGCC obtained 40% stake on the franchise of Philippines national transmission grid with concession rights, taking its first stepstarting the strategy of "going global". Based on its core advantages in grid technologies, SGCC has won the bids globally on in overseas national grids, large power grid concession auctions franchises and equity salescompetitions related to national level or critical power grids for many times.

For seven years, SGCC successively invested and operated backbone energy power grid companies in Philippines, Brazil, Portugal, Australia, Hong Kong SAR(China) and Italy. At the same time, the company has established a comprehensive international production capacity cooperation model covering technology, equipment, design and construction with an emphasis on EPC. During the 12th fiveFive-yearYear Plan period, its newly signed agreements summed up to $23.3 billion, symbolizing the fast pace of "going global" relying on independent innovations.

On December 22, 2015, Ethiopia GDHA500kV Transmission and Transformation Project was completed with SGCC as the general contractor. It becomes a bench-marking project of the Africa continent, as well as a beautiful shining business card of SGCC in Africa, for having the highest voltage level and the longest transmission distance in East Africa.

UHV technology going global

The company has made great breakthroughs in UHV, smart grid and new energy development, fully mastered the core technologies and realized "Created by China" and "Led by China".

UHV is one of China's fewworld's leading major innovations with independent intellectual property right.In February 2014, SGCC jointly with Brazil Electrobras won the bid of the Phase I of Brazil's Belo Monte Hydropower UHV DC Transmission Project with51% shares, marking UHV technology was going global. In July 2015, SGCC won the bid of Belo Monte Phase II Project by its own, marking China's UHV technology going global with the integration of investment, construction and equipment.

SGCC attaches great importance to standards in international competitions. It has led the formulation of 36 international standards and finish 14 items, established a completetechnical standard system of UHV AC/DC and smart grid for the first time in the world, made China¡¯s first breakthrough in EV international standards and elevated China's influence and voicein the international electric power sector.

Optimizing overseas business layout

"SGCC makes full use of the technological innovations to optimize the layout of overseas business, takes the risk prevention and control as a top priority and actively carries out the localized operation, so as to promote the international business to obtain actual effects,"said Lv Shirong, Deputy Director of Department of International Cooperation, SGCC.

According to Lv, the company adopts different investment strategies for different countries and markets and constantly optimizes the layout of overseas business. It actively carries out equity merger and acquisition in Europe, America and Oceania countries because the market environment is better and business profit is stable. While in South America and Africa, since there are abundant energy resources, great development potential but shortage of technology and capital, . Tthe company puts emphasis on the green project development and EPC.

"Overseas Outbound investmentsprojects are mainly concentrated in the familiar fields, and we are selected again and again to choose the best from the bestsones", said LyuLv. SGCC strictly controls the key links such as investment environment, profit and operation, prevents the risk from the source and pursues the reasonable return on investment without vicious competition and bid.

Source: Guangming Ribao


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