Asia Electrical Power International Group, Inc.
Investor Fact Sheet
-- Asia Electrical Power International Group, Inc.
(OTCBB: AEPW) (“Asia Electrical”) is a Nevadabased corporation that, through its subsidiary
Asia Electrical Power Equipment (Shenzhen) Co.
Ltd., engages in the design, manufacture, and
marketing of electrical power systems in China.
-- Asia Electrical has a consistent track record of
revenue and earnings growth. Company realized
sales of $11.67 million and net income of $961K^
for year ended December 31, 2007, an increase of
45% and 125%, respectively from the same period
a year ago. Balance sheet is clean with almost $3
million in cash and no debt.
-- Asia Electrical has a customer base spanning
more than 30 Chinese provinces and is currently
experiencing solid revenue growth, increasing
sales and profitability. Demand for products is
expected to increase drastically due to a $65
Billion investment by Chinese government in
sector.
-- In order to meet the increasing market for its
products, Asia Electrical recently completed
construction on its brand new 330,000 square foot
Industrial Park in Shenzhen, Guangdong Province,
increasing its manufacturing capacity by over tenfold.
AT A GLANCE:
Symbol (OTCBB):
52-week high/low:
AEPW
$3.00/$1.30
Shares outstanding:
Float:
Market capitalization:
51.4 Million
600K
$89.95 Million
Revenue*:
Net Income*^:
EPS*^:
$11.67 Million
$961 K
$0.02
Total Cash*:
Total Debt*:
$2.9 Million
$0
Revenue Growth (yoy)*:
Net Income Growth (yoy)*:
45%
125%
* Year ended December 31, 2007
^ Excluding a one-time expense for stock options of $1.9 million
Investment Summary
Asia Electrical Power International Group, Inc. (OTCBB: AEPW) specializes in the manufacturing and
marketing of complete high, medium and low voltage power distribution equipment focused on the
secondary power distribution industry. This industry has experienced substantial expansion in China
because of the country's recent explosive economic growth, which has boosted the demand for electrical
energy. Asia Electrical, poised to meet this demand, is quickly becoming a leading global player in the sale
of all electric and complete-set equipment. The Company is led by a team of industry experts who are
forward-thinking and understand the potential for exponential returns from investing in new technologies and
expanding product lines. As such, in addition to manufacturing and distributing quality products, Asia
Electrical invests heavily in R&D to ensure they maintain their leadership position in the industry by
developing new technologically advanced products to better serve their customers’ needs. Highly
successful in the domestic market, Asia Electrical, since its inception has earned a distinguished position on
the recommendation list of the State Economy and Trade Commission for national power distribution
network construction. The Company has recently moved into its newly-completed facility in Shenzhen,
Guangdong Province, expanding its manufacturing capacity by tenfold in anticipation of the enormous
infrastructural build-out that will be required to match China’s exploding economic growth. Asia Electrical is
Asia Electrical Power International Group, Inc. - Investor Fact Sheet
growing into one of the leading companies in its industry in China, driven by a corporate commitment
towards manufacturing the finest products inspired by continuous innovation in electrical technology, its
application and its management. The products of Asia Electrical have proven highly successful in various
applications - from electricity distribution to civic buildings and residential communities to the natural gas,
coal and oil field construction sectors and everything in between.
Continued Revenue & Earnings Growth
Asia Electrical is currently experiencing solid revenue growth with a promising outlook for greater earnings
growth through broader market penetration in the exploding electrical power industry sector in China.
Revenues for the year ended December 31, 2007, totaled $11.67 million, an increase of 45% from $8.07
million in 2006. Net income for the year ended December 31, 2007, excluding a one-time expense, was a
Company record $961,000, or $0.02 per diluted share, compared to $427,000, or $0.01 per diluted share in
2006. This represents an increase of 125% year-over-year. The increase in revenue was attributed to new
sales generated by the additional branch offices established throughout China. Asia Electrical recently
expanded its operations throughout the region by establishing 45 additional branch offices devoted to sales
in 20 cities across China. Each branch office has approximately 3-10 fulltime employees. Additionally, the
Company expects to hire 200 new sales engineers and open additional sales offices in Southeast Asia to
target the growing international market in the region. As a gauge of the demand prevalent in the
international market for its products, Asia Electrical recently announced receiving over $3 million in orders in
the month of January alone from new international customers.
The overall benefits of utilizing the latest technologies have placed Asia Electrical among the foremost
suppliers in its industry paving the way for the Company to drastically increase its market share as it
expands its facilities to increase capacity. Furthermore, over the next five years the domestic market niche
of Asia Electrical (medium voltage switchgear manufacturing) will benefit substantially from the launch of
China’s Eleventh “5-Year Plan” for economic development. As part of this plan, the government will invest
the equivalent of approximately $110 Billion towards the expansion and reconstruction of the country’s
electrical power network with two-thirds of the budget, or approximately $65 Billion, earmarked for investing
in the medium voltage network system – Asia Electrical’s market niche. Based on the current overwhelming
demand for its products and the anticipated drastic increase in demand caused by the government’s 5-year
plan, the Company’s revenue and net income is anticipated to continue growing at double digit rates every
year for at least the next ten years.
For additional information, please contact Zack Noory, Nexus Investor Relations, 310-606-2018
Asia Electrical Power International Group, Inc. - Investor Fact Sheet
New Production Facilities
To meet the pending challenge of obtaining a larger market share from supplying the booming domestic
electrical infrastructure market under the economic development stimulus of the Chinese Government's 11th
"5-Year Plan", it was critical for the company to improve its production capacity. The result is Asia
Electrical's new Industrial Park comprising manufacturing facilities totaling more than 300,000 square feet.
The Industrial Park was designed to deliver more comprehensive production scope through an enlarged
physical plant housing improved machinery and equipment as well as greater personnel resources. In
launching this expansion project, management's goal has been to significantly enhance the Company's
manufacturing capability in order to satisfy the expected increases in sales.
Established Product Line
Asia Electrical products are a critical component to building modern infrastructures in China. From electricity
distribution to components for infrastructure in industrial districts; from residential communities to civic
buildings; from natural gas producers to coal and oil field operations, the Company’s current product line is
in high demand in every corner of China. Due to this overwhelming demand, Asia Electrical is becoming a
leading company in its sector domestically, manufacturing products inspired by continuous innovation in
electrical technology. Asia Electrical carries a range of products which are generally configured together in
various combinations to form a whole electric power and management system. The combinations vary
depending on the needs of the customer and design specifications. The Company’s current product line
includes medium voltage Switchgears suitable for a wide range of applications across the electrical power
distribution industry, Load Break Switches, Circuit Breakers and Branch Cabinets.
By combining high level technology with advanced equipment, diligent management, effective
sales administration, quality controls and after-sales service, over the past decade Asia Electrical has
implemented an ISO9001-certified quality control system and attained industry recognition by being granted
the Chinese National compulsive CCC certificate. Asia Electrical also has a patent for its SRM 16-12/24
SF6 GIS Ring Main Unit. The Company obtained this patent from the National Intellectual Property Bureau
in April 2000.
Experienced Management Team
Mr. Yulong Guo, Chairman & Chief Executive Officer
Mr. Guo is 48 years old and has been the President, a Director and the Chairman of Asia Electrical Power
International Group Inc. since inception. From 1983 until 1993 Mr. Guo was a senior manager in charge of
transportation and storage for the Shenzhen Far East Biscuit (China) Company. During 1993-1997 he was
the Managing Director of Schenzhen Tongke Co. Ltd., a trading enterprise focused on manufacturing and
marketing. As the founder in 1993 of Asia Electrical's current operating subsidiary - Asia Electrical Power
Equipment (Shenzhen) Co. Ltd. (for which he also still serves as President), Mr. Guo has used previous
electrical engineering background to successfully shift the Company from being an equipment dealer to
becoming a manufacturer. Over the last 14 years, as the Company developed a complete range of products
in the Medium Voltage Electrical Power distribution industry, thanks to Mr. Guo’s adept leadership in
business development, Asia Electrical has achieved a remarkable market share increase in this rapidly
growing industry in China.
Mrs. Xiaoling Chen, Chief Financial Officer
Mrs. Chen is 44 years old and has been Chief Financial Officer, a Director and Board Secretary of Asia
Electrical Power International Group Inc. from its inception in 2002. Since 2000, as Vice-President and
Board Director Mrs. Chen has been in charge of operations for Asia Electrical Power Equipment (Shenzhen)
Co., Ltd. She contributes more than 20 years' experience in corporate financing and handling government
relationships that are so critical in China. Her efforts concerning government tenders and governmental
financial support for R&D projects have been vital to the growth and capabilities of the Company. From
For additional information, please contact Zack Noory, Nexus Investor Relations, 310-606-2018
Asia Electrical Power International Group, Inc. - Investor Fact Sheet
1995-2000 Mrs. Chen was Administrative Officer for the Shenzhen Libao Electronic Equipment
Development Co., Ltd., a security integration system Company developing both software and hardware for
security systems used in the Financial, Public Security and Transportation sectors. Mrs. Chen was
responsible for all general administrative affairs, including human resources, public relations and
communication with Government. From 1983 to 1993 she served as Administrative Officer at the Shenzhen
Far East Biscuit (China) Company, where her responsibilities included general administration,
communications specifically with government agencies, and human resources.
Mr. Dudley Delapenha, Director
Mr. Dudley Delapenha is a Director of Asia Electrical Power and the Operations Director of Magnum Group
International, Inc. His past experience includes serving as Marketing Director for Avani Water Company
and Regional Manager of Franchises for Western Canada for Canada Dry Ltd. He is a graduate of the Field
Sales Management Institute of New York as well as the Graduate School of Sales Management and
Marketing of Syracuse University, New York. Mr. Delapenha is a Canadian resident and serves as Asia
Electrical Power’s North American representative.
Readers are advised that this Investor Fact Sheet is intended for informational use only. Anyone interested in obtaining more
detailed information about the Company should contact Asia Electrical Power International Group (Asia Electrical) or Nexus Investor
Relations (Nexus). This Investment Profile was developed as part of an overall investor relations program with Nexus. Nexus has
been retained by Asia Electrical to provide investor relations advisory services, for which Nexus receives compensation in the form
of cash and restricted stock. This Investment Fact Sheet is intended solely for informational purposes and is not to be construed as
an offer to sell or the solicitation of an offer to buy the Company's stock. This Investment Fact Sheet is based upon information
available to the public, as well as other information from sources deemed reliable, but is not guaranteed as being accurate nor does
it purport to be complete.
This Investment Fact Sheet may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to
a variety of risks and uncertainties, many of which are beyond Asia Electrical’s control, which could cause actual results to differ
materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of the date hereof. For additional information
regarding these and other risks faced by the Company, visit the company’s website at www.asiaelectricalpower.com
For additional information, please contact Zack Noory, Nexus Investor Relations, 310-606-2018