Beijing Haohai

Power Tech. Co.,

Ltd
2014 2016 Business Plan

Company and
Product
Description

Company Description
Internationalized company (formerly known as
Beijing Haohai Power Tech. Co.) led by Tony Luo
which has over 20 years industrial technology and
international business experiences in US and China

Subsidiary of Tower Crest Group, an over 12 billion

RMB assets conglomerate in real estate
development, energy, superconductor, financial
investment, bus manufacturing and network
communications

Strong partnership with Capstone

Company Description
Intends to find strategic overseas partners to import technology,
products and joint-develop China market
Capstone Turbine Corporation = 1st overseas company Haohai
Power seeks and an ideal partner for long term strategic
relationship
Interested in developing collaboration with companies to extend
application of CHP in air conditioning businesses

HaoHai Power is considering three phase collaboration with Capstone:

Executive Summary
Our Vision
To serve as the Chinese leader in the ongoing Smart grid system
and to be the forerunner of HEV bus application in China.
Our Mission
Business Plan:
To assemble and sell, at a fair price, the most advanced, most
environmentally-friendly, most fuel efficient power source available
in the Chinese market
To further expand our comparative and competitive advantage in
Micro grid system, HEV application and Emergency power source
Environmental and Social Mission:
To operate the Company in a manner that acknowledges our
corporate responsibility to improve our communities by
implementing proper business practices that are supportive of our
employees

Our Products
The following projects we have made are the represented
examples:

Our Products

Supplies special

power requirement
Satisfies field
operations, disaster
relief, and
communication
command
Generally in military,
police, and airport
vehicles

Combines heat and

power by normal
micro turbine
High efficiency to
recuperate the heat
which exhaust from
the MT
Able to provide hot
water

Provides electrical
power by combining
cooling and heating
power
simultaneously
Established for the
military to be used
in field operations
command

Haohais main focus

Contains two C65
MTs, energy
exchanger and
water storage
Offers high quality
power to the grid
Provides
controllable system
which is highly
suitable for any
complicated system

Market Differentiators

Market Analysis

Key Personnel
and Resources

Research and
Development Resources
8 Beijing Haohai employees in R&D departmental
key and supporting roles.

Other key contributors within Beijing Haohai GM,

Director Special Projects, Director Production
Engineering, etc.

Several outsourced engineering firms with specific

expertise (structural analysis, harness and electrical

design, CAD resources).

University Resources in partnership programs

(Beijing Institute of Technology, Beijing University of

Chemical Technology University).

Strategic vendor engineering teams supporting

integration and production efforts.

Core Internal Staff

Capabilities
Nearly 10 years combined core Capstone
applications development.

Full CAD development and modeling capabilities,

and simple COSMOS structural analysis/FEA
capabilities.

System simulation expertise through

Matlab/Simulink for powertrain sizing and

performance analysis.

Substantial testing and validation expertise on

the new energy, traditional grid and smart grid.

Key External Capabilities

Aerospace New Long March Electric Technology
Company, our main partner, provides:
Subsystem design and component level engineering
(cooling systems, harness layouts, electrical panel
development, thermal modeling).

Chassis and mechanical CAD support (chassis

development, subassembly design, and design for

manufacture analysis).

Structural analysis and simulation, including strain gauge

measurements and model validation efforts.

Compliance analysis and report validation (FMVSS, system

integrity, FMEA compilation and review).

Market Research

Economic and Social

Factors

Economic and Social

Factors
China is ripe for alternatives such as
cogeneration

Economic and Social

Factors
In China, tens of millions of people are not connected to the

electricity grid, and transmission systems are notoriously unreliable

If cogeneration were used to its maximum potential in China, local greenhouse
gas emissions could be cut by 50% at the present time

Barriers are abundant

Utilities are reluctant to make electricity grid available to small, untested
competitors
Cogeneration is not yet fully understood

Chinas level of cogeneration and DE development is above the global

average but could be greatly increased since over 90% of the
generation is fossil fuel-based

Largest future growth in terms of fuel share in the future is expected

to be natural gas, due largely to environmental concerns in Chinas
rapidly industrializing coastal provinces

Economic and Social

Factors

Geographic Area

Market Description
Haohais vision is to become the market leader in fast
growing Chinese Smart grid industry

The percentages of employment by industry are followed:

Market Definition

Competitive Analysis

Requirement Analysis
Micro turbine = popular
energy saving application
system in US, Europe, and
Japan

New market
Technological and service
barriers are high

No market leader In China

to dominate this promising
market

Competitive Advantages
Top Business Partners of Haohai
Power:
Extensive
capability in
manufacturing
, R&D, service
and
investment of
gas turbines
Superior
reputation
and vast
customer
base

Competitive Advantages
CASC, CAIC and Towercrest allowed Haohai Power to accumulate
huge manpower of marketing, services and planning

Developed a full-services organization to target Micro turbine

market

Unlike other domestic competitors with small size, less capital,

and overseas competitors with limited understanding of Chinese

market

Haohai Powers determination to become market leader of Chinese Microturbine market:

Sales Strategy
Completion of Capstone micro turbine projects are
as followed:

Sales Forecast
(RMB)
Mobile CHP
System
Mobile CCHP
System
Mobile Power
System
Micro Grid

2011

2012

2013

2014

2015

4,200,000

5,000,000

7,300,000

7,900,000

8,000,000

6,100,000

8,450,000

10,500,000

11,900,000

12,000,000

3,200,000

3,400,000

3,900,000

4,000,000

4,000,000

1,700,000

3,500,000

18,000,000

Have provided more than two dozen micro turbines to clines in

several modes since the introduction of our company in 2006

Necessary to put in more focus, more funds, and more salesman

in CHP/CCHP sales (Note the stabilization after a high growth
rate)

Following more than two projects and apply the Capstone MT in

the Smart grid in China
Potential field for application of micro turbine

Success will lead to high speed developing field