Maximize Value Created by Adopting Low

Cost Chinese EPC Contractor

Presented By: Chen Jianwei Date: 09 July 2012

• SITHE GLOBAL & IPP

• SITHE COMPETITIVE ADVANTAGE

• UNDERLINED ISSUES

• TECHNICAL ANALYSIS

• SOLUTION

OUTLINE

Site Presentation 3

OUTLINE

Site Presentation 4SITHE – GMCP 1 billion USD single phase

OUTLINE

Site Presentation 5

Independent

Power

Producer

Business

Model

Why some firms in the same industry consistently

perform better or worse than others can be found in

an understanding of competitive advantage

Site Presentation 7

Only cost 67% or less of Western EPC

Site Presentation 8

30% plus faster than Western EPC

Site Presentation 9

30% plus faster than Western EPC

Electricity Price is 30% Lower than Competitors

Quality ???

Low Cost = Low Quality ???

Customized Engineering ???

Lack of Understanding of Free Market

Technical Capability ???

EPC Fully replies on Subcontractor

Cost Transparency ???

Lack of Chinese Market Intelligence

Misunderstanding ???

Language Barrier

Lack of Chinese Market Intelligence

Inadequate Quality Control

Lack of Understanding of Free Market

Key resource is human resource

as most of functions have to

be executed by qualified professional.

Maybe we just need a few persons

Educate thinking logics for customized engineering

Clear up misunderstanding

Tighten quality control

Conduct due diligence & conduct price Inquiry

Create data base

Coordinate project warranty claim

Develop long term relationship

Obtain business intelligence of potential investment

in China

Chief Representative & Vice President

Engineering

William Geiser

Technical Coordinator

TBD

Commercial Coordinator

TBD

Administrative Assistant

TBD

Hire Right Person with Right Process

Educate thinking logics for customized engineering

Clear up misunderstanding

Tighten quality control

Conduct due diligence & conduct price

Create data base

Coordinate project warranty claim

Develop long term relationship

Obtain business intelligence of potential

investment in China

We all are winner, no loser

Q & A