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Baoxin Technology: apani, Sweden, start again hand in hand

Key investment points.

Event: on September 11, Baoxin technology signed a unique cooperation agreement with apani, Sweden.

Our comments are as follows:

Apani: high voltage electrode boiler, low valley electric heat storage heating, environmental protection and cost advantages. 1) Sweden apani cooperation agreement: Sweden apani has core technologies such as the design of high and low voltage electrode boilers and the manufacturing of key parts. All parties hope that Baoxin technology will be the exclusive partner of Sweden apani in China. Baoxin technology will reduce product costs and shorten delivery cycle by purchasing key parts, auxiliary parts production, supporting assembly and market development from Sweden apani, Jointly expand the development of Swedish apani brand electrode boiler in the Chinese market and make it a leading brand in the Chinese market. 2) Environmental protection and cost advantages: benefiting from alternative coal-fired heating, the heat storage heating business has ushered in a large-scale opportunity. The local central heating mode of high-voltage electrode boiler using low peak electric energy not only cleans the environment, but also meets the requirements of reducing energy consumption: compared with coal-fired boiler, it has obvious environmental protection advantages, and compared with gas-fired boiler and biomass boiler, using low peak electric energy storage heating has good cost advantages. 3) In depth cooperation and asset light promotion of CGN: in June 2015, Shanghai apani, the holding subsidiary of the company, signed a framework cooperation agreement with CGN energy conservation, agreeing that Shanghai apani would provide equipment, construction and implementation and technical services for the project; CGN energy conservation is positioned as the investment, construction and operation manager of the project, opening a new mode of asset light promotion. Shanghai apani and CGN Baoding have signed the electric heat storage and heating project of Hebei Agricultural Univers