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In 2020, Hangzhou Boiler Co., Ltd. saw increases in both its operating revenue and net profit compared to the previous year, reaching 5.356 billion yuan and 515 million yuan respectively, with growth rates of 36.37% and 40.79%. That year, Hangzhou Boiler Co., Ltd. received new orders worth 6.239 billion yuan, and a 32% year-on-year increase in such orders made a significant contribution to its performance. By the end of 2020, Hangzhou Boiler Co., Ltd. still had order values amounting to 5.5 billion yuan, which laid a solid foundation for its performance in 2021. The latest data show that in the first quarter of 2021, Hangzhou Boiler Co., Ltd., which held two major contracts – one for Nantong Jiaxing’s thermal power circulating fluidized bed boilers and EPC services, and another for the waste heat boilers and related equipment for Guangdong YueDian Binhaiwan Company’s combined heat, power, and cooling project – achieved steady growth in its revenue and net profit, with increases of 6.38% and 13.86% respectively on a year-on-year basis. Hangzhou Boiler Group, formerly known as Hangzhou Boiler Factory, was established in 1955 and went public in 2011; its stock ticker symbol is “Hangzhou Boiler”. Over these more than 60 years of development, Hangzhou Boiler has grown to become one of the largest and most diversified research, development, and manufacturing centers for waste heat boilers in China. It has produced over 2,000 sets of energy-saving and environmentally friendly waste heat boilers, holding a market share of over 50% – making it a leading enterprise in the field of waste heat power generation in China. A differentiated competitive strategy opens new paths, while the opportunities associated with the \"dual carbon\" goals provide additional support. Waste heat power generation refers to the technology of converting excess thermal energy generated during production processes into electrical energy; it represents a form of energy recycling. With the rapid development of industry in our country, industrial waste heat resources have also increased. Waste heat that can be used for power generation mainly includes waste heat from high-temperature exhaust gases, cooling media, as well as waste heat from exhaust gases and wastewater, and it is associated with various energy-intensive industries such as steel manufacturing, chemicals, and coal processing. Waste heat boilers are the main devices used for the recovery and utilization of industrial waste heat. Depending on their application, they can be further divided into waste heat boilers used in power plants and those used in other industries, and there is considerable demand for them in the market. China’s three super-large boiler manufacturers with state-owned background focus their operations primarily on large-scale power plant boilers, and their leading position in the industry is unshakable. Hangzhou Boiler Corporation established early on a differentiated competition strategy centered on waste heat utilization equipment as its core product, which not only allowed it to avoid direct competition with China’s three largest boiler manufacturers but also enabled it to fully leverage its technical and scale advantages in the production of waste heat boilers. Over its more than 60 years of development, Hangzhou Boiler has also been aware of China’s demand for clean and low-carbon energy utilization. In the face of the development trends and competitive landscape in the fields of energy conservation, environmental protection, and energy utilization, while adhering to a strategy of differentiated competition, Hangzhou Boiler also continues to explore the market for clean energy equipment. It has put strategies such as \"lean manufacturing\" and \"innovative collaboration\" on its agenda and is working to implement them. In other words, it aims to leverage Hangzhou Boiler’s technical advantages in clean energy generation equipment and energy storage generation equipment, transforming from a mere product manufacturer into a provider of energy-saving and environmental protection devices as well as comprehensive solutions for energy utilization, with a focus on new energy and clean energy sources. In 2020, among Hangzhou Boiler’s new orders worth 6.239 billion yuan, new orders for waste heat boilers increased by 55% on a year-on-year basis, while new orders for solutions increased by 62% on a year-on-year basis. That year, Hangguo secured EPC general contract orders worth over 100 million yuan for various projects, including a heat power plant built for a paper mill in Vietnam, as well as overall solutions for the heat power plants and heat transfer oil exchangers at the textile fiber production facility of the Tongkun Group. In 2020, our country explicitly set the \"dual carbon\" goal. The setting of this goal brings more market opportunities to Hangzhou Boiler: on the one hand, during the 14th Five-Year Plan period and for some time thereafter, China’s energy structure will undergo profound changes, with renewable energy developing on a larger scale and accounting for a higher proportion ； On the other hand, the low rate of utilization of waste heat is one of the main reasons why the energy consumption per unit of industrial products in China is much higher than the international advanced level; therefore, improving energy efficiency in the industrial sector is also of great importance. Hangzhou Boiler has been active in industries that are major sources of carbon emissions, such as steel, cement, and building materials, for over several decades; its strength lies in helping energy-intensive industries reduce emissions and make more efficient use of energy. Against this backdrop, in 2020, Hangzhou Boiler Corporation secured new orders worth 940 million yuan for HRSG waste heat boilers in the boiler market, which relies on traditional coal and gas as energy sources; this represented a 27% increase compared to the previous year ； In the field of clean and environmentally friendly energy equipment, orders from the waste incineration sector amounted to 1.33 billion yuan, representing a 48.6% increase compared to the same period last year ； Make significant investments in the field of new energy, increasing capital allocation to the production of advanced equipment for clean energy power generation and energy storage. It is understood that in 2020, Hangzhou Boiler established new companies in Wuhu, Anhui, and Deqing, Zhejiang, aiming to create integrated bases for the research, development, and manufacturing of new energy environmental protection equipment, as well as manufacturing bases for new energy equipment. These facilities are designed to support the development of high-end new energy environmental protection equipment, clean energy generation equipment, and energy storage and generation equipment. In terms of technological exploration, we focus on the core aspects while actively pursuing new developments. As a type of industrial boiler, waste heat boilers have been used by domestic enterprises since the 1960s; initially, they were imported products from abroad. In the 1970s, Hangzhou Boiler was designated by the former Ministry of Machinery Industry as the base in China for the research, development, and manufacturing of waste heat boilers, and the Hangzhou Waste Heat Boiler Research Institute was established in 1979. Designated as the country’s base for research, development, and manufacturing of waste heat boilers, Hangzhou Boiler has, over the past four decades, learned from, assimilated, and innovated upon advanced foreign technologies, completing the design, installation, and commissioning of hundreds of waste heat boilers for various types of gas turbines, as well as related boiler systems. Today, Hangzhou Boiler has the capability to independently design and manufacture waste heat boilers of various pressure levels, different capacities, and various new types, and it has played a leading role in and participated in the formulation of China’s HRSG standards. In 2020, Hangzhou Boiler continued to adjust its existing technology and product strategies in order to keep up with the rapid development of the energy industry. That year, Hangzhou Boiler’s investment in research and development reached a new high, amounting to 305 million yuan, a increase of 54.9% on a year-on-year basis. In terms of the optimization and upgrading of traditional coal- and gas-fired waste heat boiler technologies, Hangzhou Boiler Group completed the development of China’s first waste heat boiler designed for 9E-class gas turbines with afterburning functionality in 2020. Building on this, Hangzhou Boiler won the bid for the core equipment of three SGT5-2000E gas turbine waste heat boiler units for Zhejiang Petrochemical’s Yushan Island project. Since then, Hangzhou Boiler has officially become Zhejiang Petrochemical’s boiler supplier as well as the first supplier of gas turbine waste heat boilers. Currently, Hangzhou Boiler’s gas turbine waste heat boilers cover all product series including 6B, 6FA, 9E, 9F, and 9H. In addressing the heating needs of textile fiber enterprises, the high-efficiency utilization of heat transfer media and ultra-low emission system developed by Hangzhou Boiler Co., Ltd. in 2020 was recognized as the first of its kind in the country. This device achieves a thermal efficiency of over 90% and features ultra-low emissions, contributing to the realization of China’s \"dual carbon\" goals. At present, Hangzhou Boiler has a complete range of products for this series, ranging from 75t/h to 190t/h. In terms of its strategy for the new energy sector, building on the \"traditional energy + new energy\" development approach proposed by Hangzhou Boiler in 2020, the company seeks opportunities in the boiler market that relies on traditional coal and gas as energy sources, as well as in areas related to the transition from old to new energy sources. It also targets market opportunities in clean energy generation and energy storage, such as those related to renewable energy sources (photovoltaic and solar thermal energy), air pollution control, and solid waste treatment. On the one hand, Hangzhou Boiler actively builds a \"industry-university-research\" community, focusing on the pain points and challenges in the field of new energy, and making concerted efforts to overcome the key technical barriers. By collaborating with Xi’an Jiaotong University and Zhejiang University, it has established an Energy Technology Research Institute as well as a Joint R&D Center for Advanced Energy; the research projects include several initiatives such as those related to \"research on coordinated peak-shaving technologies based on solar thermal, photovoltaic, heat storage, and energy storage.\" On the other hand, Hangzhou Boiler has expanded its network in the capital market by taking stakes in Zhejiang Zhongkong Solar and Zhejiang Zhongneng Optoelectronics, thereby entering areas such as solar thermal energy, energy storage, and perovskite solar cells. On May 27, 2021, Hangzhou Boiler not only issued a statement indicating its intention to invest 60 million yuan from its own funds to establish a wholly-owned subsidiary named Zhejiang Xizi New Energy Equipment Co., Ltd. (provisional name), which would be engaged in the manufacturing of new energy power generation equipment and the sales of products for solar thermal power generation, but it also entered into a formal agreement with Zhejiang Zhongkong Solar regarding cooperation on the development of molten salt heat absorbers and molten salt heat exchangers for tower-type energy storage solar thermal power generation projects. On June 21, its subsidiary Hangzhou Boiler Energy Investment planned to use its own funds in the amount of 12 million yuan to establish a wholly-owned subsidiary named Hangzhou Xizi Zero-Carbon Energy Co., Ltd. (provisional name), with the aim of investing in the construction of a demonstration project for an integrated smart energy system that combines power generation, transmission, distribution, load management, and energy storage for Xizi Aviation. The establishment of this company marks Hangzhou Boiler’s official entry into the fields of zero-carbon energy and energy storage. By relying on the projects planned for development, it will carry out comprehensive technical testing of energy storage solutions such as molten salt storage and battery storage, thereby building capabilities in the design, construction, and operation of zero-carbon energy systems. It is understood that Hangzhou Boiler began researching and developing solar thermal power generation technology in 2009; to date, it has mastered energy storage technologies based on solar thermal energy and energy storage, and has expanded its efforts to other forms of energy storage technology as well. The 50MW molten salt energy storage system, independently developed, designed, and manufactured by Hangzhou Boiler, is used in the tower-type molten salt energy storage solar thermal power generation project in Delingha, Qinghai. The average power generation rate of this project sets the highest record among similar power plants worldwide during the same period after they were put into operation. In 2020, despite the severe impact of the COVID-19 pandemic on global market economies, Hangzhou Boiler managed to overcome the negative effects of the pandemic on the execution of domestic and international projects as well as product delivery, achieving significant progress in all its core business areas throughout the year. Around the Spring Festival in 2021, Hangzhou Boiler actively responded to the call by introducing a subsidy scheme for employees working in other locations, allocating a total of about 5 million yuan in subsidies. Therefore, starting from the fourth day of the first lunar month this year, Hangzhou Boiler entered a busy production pace; on the first day of work, 93% of the company’s employees showed up for duty. At the same time, in order to seize the opportunities associated with the \"dual carbon\" goals and implement a strategy that combines traditional energy sources with new energy sources, according to Polaris Power Network, in 2021 Hangzhou Boiler Co. planned to allocate 60% of its R&D efforts to new energy areas and 40% to traditional energy areas. Moreover, in just the first two months of 2021, Hangzhou Boiler’s order volume was more than double that of the same period last year. 2021 will undoubtedly also be a year of vigorous development for Hangzhou Boiler. (Polaris Power Network, Lianzheng) Source: Polaris Power Network