Recently, all six batches of centralized bidding by State Grid Corporation in 2012 have ended. We have detailed statistics on the annual bidding status of various goods. The main equipment transformers and switches and secondary equipment have maintained a small growth, although the growth rate is slower than in previous years. The structural change trend is obvious: 1. The demand for high-voltage power transmission and transformation main equipment in the western region is still strong; 2. The trend of replacement of traditional switches by combined electrical appliances is obvious; 3. The intelligent replacement of traditional secondary equipment has grown significantly; 4. Power distribution The bidding rights for equipment are received from State Grid, and the scope of bidding will continue to expand in the future. We expect that next year's State Grid transmission and transformation investment and bidding are still expected to maintain a slight increase in total volume and a structural growth trend. It is recommended that companies with good quality and cheap valuations be selected in the field of structural investment growth.

Transformers: The total capacity of transformer tenders in 2012 was 252603.67MVA, an increase of 8.83% year-on-year. We expect that next year’s transformer bidding volume will maintain the characteristics of a slight increase in total volume and structural growth. On the one hand, the scope of distribution network transformer bidding is expected to be further expanded. On the other hand, the demand for ultra-high voltage transformers in the western region is still strong. The construction of the line is expected to continue to drive the volume growth of high-voltage transformers in western provinces and regions.

Switch products: Overall, in 2012, switch equipment maintained a year-on-year growth of about 16%. Among them: 1. There is a clear trend of replacement of traditional switch equipment by combined electrical appliances. In 2012, combined electrical appliances increased by 20% year-on-year, while the volume of bidding for traditional isolating switches decreased year-on-year, while circuit breakers remained flat. 2. At the end of the three episodes and five major adjustments, the bidding volume of the sixth batch of switchgear for each project was resumed at the end of the year. 3. The inclusion of 35kV circuit breakers and isolating switches into the centralized bidding this year has resulted in a significant increase in the bidding volume for this voltage level. A total of 46,965 power distribution switchgears were tendered in 2012, an increase of 110% year-on-year. A total of 8,673 power distribution switch cabinets were tendered for the sixth batch, a year-on-year increase of 3.43% and a month-on-month increase of 90.24%. The heavy growth of distribution network switchgear shows the structural growth trend of future grid investment that will tilt towards the distribution network. We expect that next year combined electrical appliances are expected to continue to accelerate the replacement of traditional switches, and the growth rate of bidding volume is expected to maintain a year-on-year growth of more than 20%; in addition, the scope of centralized bidding for distribution network switch products will also be further expanded.

Secondary equipment protection and monitoring: In 2012, a total of 10,646 sets of conventional station protection were tendered, a year-on-year increase of 9.84%. A total of 15,622 sets of smart station protections were tendered, a year-on-year increase of 460%, showing that the demand for smart products continues to be strong. In 2012, a total of 701 sets of conventional substation monitoring systems were tendered, a year-on-year decrease of 1.54%; a total of 1,049 sets of smart substation monitoring systems were tendered, a year-on-year increase of 267%. Intelligent secondary equipment has become a trend to replace tradition.