China Power Equipment Inc
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Corporate Overview

China Power Equipment, Inc. (OTCBB: CPQQ) was incorporated in the State of Maryland on May 17, 2006. In November 2006, China Power formed An Sen (Xi’an) Power Science &Technology Co., Ltd. which was granted a license as a wholly-owned foreign enterprise or “WOFE” under the laws of the People’s Republic of China. China Power through its wholly-owned subsidiary, An Sen and its affiliated operating company, Xi'an Amorphous Zhongxi Transformer Co., Ltd., manufactures amorphous alloy transformer cores in China, where energy efficiency is aggressively being embraced. Transformers are used throughout the power grid to change the electrical voltage. Every time the voltage is changed, there is energy loss. China Power’s products are a new generation in energy-saving transformers for the power grid, which typically consume 70% less electricity to operate (at no load) than traditional transformers.

Our amorphous alloy transformers, based on advanced technology, are an important component of the next generation of energy-efficient, smart grids, a key component of China's plans to develop an energy-efficient economy. China first announced a five-year energy efficiency target in March, 2007, to reduce energy consumption by 20 percent. China's 12th Five-Year Plan (2011-2015), to be ratified in March 2011, will set targets for a 15-20 percent reduction in energy intensity and an even more ambitious target to reduce carbon intensity by 40-45 percent. In order to achieve these goals, a new energy investment plan will see RMB 5 trillion (US$753 billion) allocated to developing alternative energy sources..

China is already the world leader in smart grid investment, where the application of digital technologies and "smart" metering allows grid operators to anticipate and respond to grid disturbances as well as make greater use of renewable power sources with variable input, such as wind and solar power. In 2010, China planned investments of US$7.3 billion in smart grid development, ahead of the planned US$7.2 billion in investment by the US. The State Grid Corporation, which is responsible for 80% of China's power, has said that it will have its smart grid operational by 2020. It is currently operating a 400-mile-long pilot, mega-volt transmission line and plans to install 11,000 miles of ultra-high voltage (UHV) transmission by 2012. These developments will provide a vast new market for our transformers.

As China renews its power distribution infrastructure to meet energy-efficiency goals, our energy-efficient transformers will provide solutions for a new generation of power suppliers, grid operators, and consumers. Our transformers have potential applications at all points of the power transmission and distribution chain. They can also be used in an interconnected "smart" grid the distribution nodes and transformer connections which can multiply to meet new, greatly amplified sources of input as well as power consumers in the world's second-largest and fastest-growing major economy.