Full Description

A-Power Energy Generation Systems, Ltd. (A-Power), incorporated on May 14, 2007, is a renewable energy company in China, engaged in providing onsite distributed power generation systems and micro power grids for industrial companies. It is also engaged in the production of wind turbines. The Company is engaged in designing, constructing, installing and testing distributed power generation and micro power grids as stand-alone facilities and for various customers in the steel, chemical, ethanol, cement, and food industries. A-Power design projects, subcontract their construction and installation to approved third-party subcontractors under its project oversight, and conduct testing on completed projects prior to turning them over to its customers. The size of its projects range from 5 megawatt to 400 megawatt and allow its customers, which require heavy electrical input, to recapture previously wasted heat and gas from their manufacturing processes to generate electricity. In addition to distributed power generation systems, A-Power also designs, installs and constructs related facilities for industrial companies.

In 2009, the Company entered into agreements with GE Drivetrain Technologies to establish a gearbox assembly and testing joint venture in Shenyang and to purchase gearboxes from them for its wind turbine business. In addition to its operations in the distributed power generation and wind energy businesses, A-Power conducts ongoing research and development in renewable energy technology and have long-standing research and development relationships with institutions developing environmentally-friendly technology in China, including with Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou.

The Company conducts its distributed power generation business through Liaoning GaoKe Energy Group Company Limited (GaoKe Energy), Liaoning GaoKe (High-Tech) Energy Saving and Thermoelectricity Design Research Institute (GaoKe Design) and Liaoning International Construction and Engineering Group Limited (LICEG Ltd), collectively known as GaoKe. GaoKe Energy, an engineering services company, is GaoKe’s principal operating company and oversees design of projects through GaoKe Design and construction and installation of projects through LICEG Ltd, and through third party subcontractors. GaoKe Energy obtains the contracts for the design, construction and installation of distributed power generating stations and micro power networks and performs or oversees the bulk of the work associated with those projects in its capacity as general contractor, including site preparation, construction, equipment installation and system startup and testing. GaoKe Energy subcontracts the design services connected with those projects to GaoKe Design. GaoKe Energy oversees the physical construction and installation functions through LICEG Ltd., activities which the Company subcontracts to approved third-party suppliers. GaoKe Energy then tests the system to ensure that it operates as specified before turning it over to the customer. Its distributed power generation and micro power grid systems typically take 12 to 24 months to design, construct, install and test projects.