Aikang Group: "Three Hurdles" Opens the Era of Energy Interconnection

China Energy Storage Network News: American futurist Rifkin predicted in "The Third Industrial Revolution" that after the first and second industrial revolutions, the "third industrial revolution" will be the impact of the Internet on the energy industry. That is, combining Internet technology with renewable energy, transforming energy mining, distribution and utilization from traditional centralized to intelligent decentralized, thus turning the global power grid into an energy sharing network.

Zou Chenghui, Chairman of the Board of Directors of Aikang Group

The prophecy is about to become a reality. The "protagonist" who turned the dream into reality is Jiangsu Aikang Industrial Group Co., Ltd., a leading enterprise in China's new energy industry. As a new energy enterprise representing "China's intelligent manufacturing", Aikang has completed a magnificent "transformation" in just ten years: from a photovoltaic aluminum product accessories company with a single product structure to the first photovoltaic accessories listed company on the A-share market; from a photovoltaic accessories manufacturer to a comprehensive photovoltaic power station operator; now, standing at the forefront of the energy interconnection era, Aikang has made a breakthrough.

Looking at the development trajectory of iKang, a striking feature is that whenever the entire industry is in crisis or low period, iKang can always go against the trend and achieve major breakthroughs. "The secret is that we can always smell the opportunity and make key strategic transformations at the right time." said Zou Chenghui, Chairman of the Board of Directors of iKang Group.

The first hurdle: From a photovoltaic aluminum products accessories company to the first photovoltaic accessories listed company on the A-share market

In 2006, Aikon Group was established and entered the new energy field by manufacturing photovoltaic parts, and quickly became a "dark horse" that attracted attention in the industry.

In order to enter the "fast lane" of new energy development as soon as possible, in 2008, Zou Chenghui hoped to take advantage of the PE (private equity investment) trend at the time and introduce the "wings" of capital. However, one week after iKang met with representatives of Lehman Brothers, Lehman suddenly declared bankruptcy. The perceptive Zou Chenghui said to those around him: "Lehman's bankruptcy is a big event. We will hold an emergency meeting tomorrow."

At the meeting, Zou Chenghui made two important decisions: first, the financial crisis was coming, and Aikang had to find a "quilt" to survive the winter and introduce strong capital to help; second, it was necessary to guard against risks and conduct more detailed risk management and control for all cross-border businesses. A month later, the financial crisis broke out.

Subsequently, Akcome won an investment of 78 million yuan from Jiangsu High-tech Investment Group. With this "quilt", Akcome staged a wonderful "breakout from the cold winter": from investing in a single solar aluminum frame to other solar accessories, it instantly became a one-stop photovoltaic accessories supplier.

Thanks to the rapid development of domestic and overseas markets, Akcome's solar accessories business has a leading market share. Today, its sales of aluminum alloy frames for solar panels rank first in the world, accounting for more than 20% of the international market share; its business volume of photovoltaic mounting brackets also ranks first in the country, with an annual production capacity of 4GW.

In 2009, as the global economy rebounded, Zou Chenghui convened another meeting. He analyzed that "with so much money pouring in to save the market, a debt crisis is very likely to break out in 2012." At the meeting, Zou Chenghui made clear a new strategic goal - Aikang must go public in 2011! He said: "We must go public to get investment and prepare enough quilts and food to store for the winter."

Hard work pays off. At 4:30 pm on December 31, 2010, Akcome was the last company to knock on the door of the China Securities Regulatory Commission that day and submitted its application materials as scheduled. On August 15, 2011, Jiangsu Akcome Technology Co., Ltd., a subsidiary of Akcome Group, was successfully listed on the Shenzhen Stock Exchange (stock code: 002610), becoming the first A-share listed company of photovoltaic accessories.

In 2012, the debt crisis "arrived as expected". Aikang once again turned the crisis into an opportunity and smoothly survived the difficult period for many of its peers. "That year, many companies went bankrupt. If Aikang had not gone public in 2011, we would definitely not have survived in 2012," he said.

The second hurdle: Transforming from a photovoltaic parts manufacturer to a comprehensive photovoltaic power station operator

With 870 million yuan in cash raised from the IPO, Zou Chenghui began to think about the strategic transformation of the group. With his keen business sense, he realized that the group's business model was too thin and its risk resistance was limited if it only relied on the manufacturing of solar accessories such as aluminum frames and photovoltaic brackets. He should invest in power station development downstream.

In the second half of 2011, Akcome acquired 80% of the shares of Qinghai Beixiang New Energy Development Co., Ltd., announcing its entry into the power generation market. As an attempt by Akcome to explore the field of photovoltaic solar terminal applications, this acquisition has enabled Akcome to leap from a "parts manufacturer" to the first private "power station investment operator" in China, opening up a new industrial channel.

"Generating electricity is what I have always wanted to do!" said Zou Chenghui. Having been engaged in the photovoltaic industry for many years, he has always been worried about the "difficulty in using electricity" in some remote areas of China. In Qinghai Province, where Beixiang Company is located, many ethnic minorities who make a living from animal husbandry are separated from modern cities by an insurmountable wall due to the lack of electricity. Zou Chenghui remembers that in a small village deep in the mountains, a few simple solar panels could only support a maximum of 5 watts of lighting. On rainy days, the whole village was dark at night.

"If Akcome deepens its involvement in the photovoltaic power generation industry and implants mature power station systems in remote areas, it will not only bring considerable economic benefits, but also change the lifestyle of local people." With a strong sense of mission, Zou Chenghui led the group to "deploy troops" in the field of photovoltaic power station development. By 2013, Akcome had become one of the largest non-public power companies in China, with ground power stations and distributed power station businesses covering East China, Central China, Southwest China, Northwest China, Northeast China and other regions.

With the group's continued layout in the power station field, Zou Chenghui, who is good at value integration, has a new plan. "Power stations require round-the-clock operation and maintenance. These tasks were originally "outsourced" by Aikang, but now we should be "self-reliant". At the same time, the land area under the jurisdiction of the power station is fixed. After the power station is put into operation, we should strive to expand other additional investments within the land area to maximize the value-added benefits."

In 2014, Akcome moved away from simple power station investment and established a business integration model with power stations as the core, combining investment, operation and general contracting services, and derived a series of additional industries such as agricultural planting and animal husbandry. As a result, Zou Chenghui led the group to fully cultivate the solar photovoltaic industry chain and strengthen its industry competitiveness.

Currently, Aikon owns 39 solar power stations across the country, with a total grid-connected capacity of approximately 1GW. Its comprehensive strength ranks eighth in the same industry nationwide and among the top three private enterprises.

The third hurdle: "Energy + Internet + Finance" opens the door to the era of energy Internet

"Aikon's mission is to lead a new energy ecology and create a new green life. In the future, we will continue to expand the scale of our main business and strive to build a new energy industry ecosystem, so that photovoltaic solar energy can keep up with the trend of the times, integrate with more industries, and achieve win-win results." said Zou Chenghui.

In Zou Chenghui's view, the third strategic transformation of Aikang is to promote the transformation of energy production and consumption methods around energy interconnection, use the Internet, big data and inclusive new financial services to connect energy production and consumption, provide innovative new energy solutions for society, enterprises and end users, create an intelligent green energy ecosystem, and contribute to the sustainable development of society. In 2015, Zou Chenghui, who is always at the forefront, led Aikang to launch the third major strategic transformation focusing on "energy + Internet + finance".

The new business model launched by Akcome focuses on energy services and financial services. Energy services include photovoltaic product manufacturing, photovoltaic power station solutions, charging piles, new energy vehicles, energy storage systems and electricity sales. In 2015, Akcome Group established the Shanghai Financial Holding Management Center, focusing on providing customized financial solutions for the new energy industry, and leading the industry in financial leasing, Internet finance, new energy funds and asset management. Akcome's financial services are committed to opening up various financial links and minimizing costs in the industrial chain.