Mission:

In order to promote the progress of solid-state lighting(SSL) industry, to address the needs of China-Russia and China-Kazakhstan cooperation in the field of solid-state lighting, to promote inter-SSL industry investment and financing and communication between Russia and China and China and Kazakhstan.

Held by the International Solid-State Lighting Alliance (ISA ) on June 5, 2015 in the Beijing Zhongguancun International Technology Transfer Center.

1: Conference Background

The world's longest economic corridor originates in China, as part of the region of Central Asia, Southeast Asia, South Asia, West Asia and Europe through the east led by the Asia-Pacific Economic Circle, West Europe Department of Economic Circle. Asian countries will be the new focus and direction to economic corridor-based, transportation infrastructure, as a breakthrough in construction financing platform as the starting point. These potential projects, in line with China’s growing SSL markets and strategies, will encompass over 44 million people, twenty-six countries and regions, USD twenty-one trillion in the international economy.

As Russia and China continue to deepen their comprehensive strategic partnership of cooperation, the relationships between Asia and Europe will promote the continental economic and financial links. Russia acts as an important bridge linking Asia and Europe, a role that will also promote Russia's further integration into the world economy.

The rapid development of China's SSL industry has matured the entirety of the industry chain, accumulating more than 80% of global production capacity to become the world's largest SSL lighting products manufacturer and exporter. Exports to Russia grew substantially in recent years, to the point where now that Russia as an export destination for Chinese SSL products is second only to the United States. The Russian SSL market has great potential, and the Russian government and industry are eager to gradually improve its solid-state lighting industry chain through the increase of industry investment and financing and the implementation and localization of solid-state lighting technology.

In order to increase the confidence of foreign investors and enhance their understandings of foreign affairs and policy implications of Russian investment, this seminar will discuss Russian-Kazakhstani SSL investment and financing innovations and will build mechanisms to enhance existing Sino-Russian SSL investment to fulfill all needs from all parties involved. The conference aims to assist those seeking potential partners, therein promoting in-depth cooperation between international actors in the solid-state lighting industry.

2: Meeting Content

(A) Opening Remarks

The workshop was chaired by the International Lighting Alliance (ISA) Secretary-General Yang Crane,

Mr. Zeng Xiaodong, Director of International Development and member of the Management Committee of Zhongguancun, Madam Wu Ling, President of the Beijing Innovation Alliance Council, President of the International Solid-State Lighting Alliance (ISA), and Secretary Genera of the China SSL Alliance (CSA), and Miss Han Xiumei, the Program Director of China International Technology Transfer Center (CITTC), respectively addressed the opening of the workshop.

Mr. Artem Surikov, a senior expert in Russia Business Representative Office in China stated that he said he was honored to participate in the seminar, highlighting that cooperation between Russia and China was present not only economic and trade fields, but also advanced scientific and technological innovation. Cooperation between Russia and China in the field of advanced technology has the potential for truly promising outcomes, and Surikov expressed his wishes that all participants receive good results from smooth Russian-Chinese cooperation.

(B) Keynote Speech

Theme: The Solid State Lighting Industrial Status in Russia

Mr. Evgeny Dolin, Secretary-General of the Russia Lighting Alliance (LEDSM NP), made the first keynote speech. He briefed the audience on the situation of LEDSM NP: founded in 2010, LEDSM NP is Russia's only SSL Alliance, with a mission to actively develop the national LED lighting market, protect the interests of manufacturers, rules and standards, promote the development of LED technology. Within, there are twenty-three members, including all of the country's major manufacturers, whose combined products account for nearly half of Russia’s LED lighting production capacity. Dolin also noted that the main drivers of the global lighting revolution are once again industrialization, urbanization, and domestic LED market potential. Dolin shared his experiences in product development, and emphasized that development should be based on national conditions and different markets and the plans to enhance LED production technology.

Theme Two: "How does China invest in the Solid State Lighting Industry in Russia?"

Mr. Oleg Plaksin, Director of International Projects at the Russian Investment Group (RVC),briefed the audience on how China invests in the solid-state lighting industry in. He highlighted that bilateral trade in 2014 was valued at USD95.28 billion, making Russia China's ninth largest trade partner, with China as Russia's largest trade partner.

Plaksin stated that Russia’s large cooperation projects conducted so far(including railway and gas pipelines among others), has prepared the nations for new projects in new directions, especially in the fields of energy and lighting, declaring the conference meeting as a substantial step in towards this goal. Russia and China resources and abilities complement each other in this regard.

Plaksin analyzed several major factors affecting the Russian market, such as the government promotion of local production, ruble devaluation, the attraction of low operating costs, regulation, investment partnerships, tax considerations (such as government tax incentives for immediate investment, the tax breaks for native Russian companies, etc.) Plaksin also introduced various new investment tax incentives. As part of the new national policy of the Russian administration, in the Far East and Eastern Siberia the following tax incentives are offered: there duction of the tax rates on profits, the reduction of the mining tax rate for the next five years, a free customs zone, accelerated depreciation, reduction of social security tax rates, etc.

Mr. Plaksin specifically noted that for Chinese companies there are great incentives: Chinese companies do not have to contend with complicated entry procedures from the foreign authority due to the relatively narrow and focused state of solid-state lighting industry, and are also provided tax incentives, preferential policies and many other benefits that vary by project. Plaksin welcomed the interest of Chinese companies in cooperating with RVC.

3. Introductions of Attending Companies

1.             ECOLIGHT.

Aleksey Anikin, Vice President of Marketing for ECOLIGHT, introduced the audience to the history of the company. Founded in 2011, there were originally twenty-three employees, seven types of products, and five direct dealers. Today, the company encompasses large-scale production and management for offices, administrative departments, road lighting, industrial lighting, and residential lighting products, is successfully GOST certified, and distributes products in more than seventy cities in Russia and CIS countries. By 2013, the company increased to more than eighty employees, nearly 250 types of products, works with several major companies and suppliers around the world such as Cree (CREE) (United States), LEDIL (Finland ), Samsung Electronics (Samsung LED, South Korea), Helvar (Finland), TCI (Italy), Tridonic (Austria), Solar (USA), and various others in Ukraine (Kiev), Bulgaria (Sofia, Varna).

 ECOLIGHT has since embarked in mass production and efficient road lighting(over 110 lm / W), opened an office in Hong Kong, and introduced a series of efficient products(115 lm / W). Currently, the company's holds over a hundred employees, 250 types of products, with all products retaining a five-year warranty, and has established partnerships with major customers in the following areas: banking, Russia's railways, urban road lighting, natural gas and oil mining, recycling, and the world's largest retail companies.

ECOLIGHT is a well-known brand in Eastern Europe, Russia, and CIS countries, operating at the highest levels, with modern, well-equipped laboratories, lamp assembly production lines, and an independent research and development department. The main products include office lighting, retail lighting, industrial lighting (especially heavy special lighting), and LED road lighting. ECOLIGHT brings many advantages to the future of SSL: from its inception, ECOLIGHT was committed to LED lighting; second, ECOLIGHT ensures a rich and complete LED lighting project experience; third, ECOLIGHT oversees the full cycle of projects, from specification to installation and maintenance; fourth, provides a real experience for energy efficiency projects; lastly, a short development time frame--from research to large-scale production takes less than three months.

The company's future development goals include: road lighting, contract energy management projects for major customers to carry to term, energy services and SSL implementation in and for banking, railways and oil and gas companies.

Anikin stated that the company needed financial partners in order to implement major joint projects, such as energy-saving projects. ECOLIGHT already has developed a project which is ready to begin implementation with a budget of USD twenty billion. Anikin highlights the possibility for Chinese partners to provide high quality, good-priced products or technology that can significantly enhance the ability of the company for said project.

2. Rusalox

Dr. Michael Naish, CEO of Rusalox, introduced his company, located in Vladimir, eight kilometers from the Moscow Federal Highway, 180 kilometers from Moscow, and 250 km from Nizhny Novgorod, all of which allows for convenient transportation for a key area of 2,500 square kilometers.

Rusalox’s trademark is the use of nano-technology in facilitating the high thermal conductivity of the alumina substrate, the substrate used for LED technology and high-power electronic devices (third-generation semiconductor material). This product is characterized by strong market demand, low production costs, high thermal efficiency, and reliability, which provides solutions for microelectronics, semiconductors, and high frequency devices.

Rusalox sought a strategic partner in China, in order to build the output capacity of 100,000 m² / month of high thermal conductivity alumina substrate (which included USD ten million in investment).In addition, Rusalox looked to cooperate with China Investment Partners in order to facilitate an increase of 15,000 -3 million square meter / month capacity on an existing basis, investing about USD fifteen million.

3. BL Group

Mr. Petr Shashin, Vice President of BOOS LIGHTING (BL) GROUP, introduced his company’s product development. BL Group was founded in 1991, and following nearly twenty-four years of development, the company accounted for sixty percent of Russia's market share (including 1500 buildings and commercial lighting projects; 4500 roads, squares, highways, tunnels, bridge projects and 1000 outdoor lighting control projects), and served more than 600,000 lighting facilities. The company is valued at more than USD 433 million, with more than two hundred production lines, over 1200 types of products made at three production plants near Moscow, and a Germany a production plant, 120 kilometers away from Frankfurt.

The company has an established research and development department, well-endowed engineering and production capacity with their own qualified production sites and laboratories, self-developed optical design calculation software, and sales network.

The company seeks Chinese partners in the following areas: joint implementation projects, new products cooperation, and joint investment.

   4. RUSLED

Vice President Mr. Artyom Vysotskiy Olegovichintroduced the basic economic and financial situation of the company. RUSLED was founded in 2010, as the first Russian business to focus on the design and manufacture of LED lamps. The company is located in Tomsk, in the Siberian Economic Zone, associated with Siberia’s largest solid-state lighting products manufacturers. The company enjoys various tax incentives; the company is exempt from property, land and transport taxes. The company's products are popular in Russia, Kazakhstan, Ukraine, and Armenia. Though, as Olegovich stated, in 2014 solid-state lighting applications in Russia accounted for only 1% while commercial lighting accounts for 99%, by 2018, SSL will grow to accommodate for 40% of households.

The company hopes to cooperate with Chinese partners have comprehensive cooperation, in order to enhance the company's competitiveness and manufacturing capacity. RUSLED reports that they have engaged with China Shandong Prosperous Start Optoelectronics Co., Ltd. in the solid-state lighting filament lamp area.

5. LED SYSTEM

Mr. Taukenov Amangeldy Sagatovich, President, introduced the basic situation of the LEDSYSTEM. The company is located in Kazakhstan's capital, Astana, in the Industrial Development Zone, an area of three hectares.

The company is composed of three large holding companies, making it the second largest shareholder of state-owned enterprises. LED SYSTEM works closely with the Kazakhstani government and corporations such as Philips, Semileds, and other foreign companies from every step of the LED process, including assembly lines, laboratories, and portfolio investment.

LED SYSTEM presents many opportunities for cooperation and SSL development. According to Kazakhstani government plans, in the next three years, Kazakhstan will replace traditional lighting in the public property with a focus within the education system; nearly 7,000 schools will be affected. In addition, Astana will host the 2017 Expo, in line with Astana’s transition into an energy-efficient city. Astana aims to be one of the world's top 10 cities in energy efficiency by the end of 2015. To this end, Astana is replacing 50,000 fixtures of public lighting and has already accomplished pilot projects.

Mr. Sagatovich said the company presents the following major advantages: first, shareholders are able to sell their stakes in the company; second, there exists a good relationship between the company and the government, allowing access to government projects; third, the company is extremely well known in Kazakhstan; fourth, its central location to access former Soviet states and Gulf countries; lastly, the location in the zone receives many preferential policies. Sagatovich invited Chinese SSL companies to consider LED SYSTEM’s technical and financial resources in light of potential cooperation.

4.  Open discussion

After the representatives of the Russian and Kazakhstani enterprises finished speaking, each speaker received a few minutes time to answer questions asked by Chinese companies. The questions related to intellectual property protection, organization, Russian provisions for LED products used in the medical field, foreign company intervention, the average wages for the average technical Russian workers, taxes and tax rates for foreign companies in Russia; Russian SSL market product demand, recent economic trends in Russia, etc. Russian representatives were unable to provide direct answers for some questions at this forum, as some of the content was too specific, addressing them afterwards in one-on-one discussions.

5.  Conference Features

This meeting had the following characteristics:

(A) This meeting is a discussion facilitated by International Solid State Lighting Alliance (ISA) in promoting the mode of technology transfer among members. Before the meeting, ISA had communicated with LEDs and LED-based Systems Russian Manufacturer’s Nonprofit Partenership (NPRPSS) for many times. Russian side selected five SSL companies which are willing and possible to cooperate, and invited Russian famous Investment Group (RVC) and consulting company (LBC)to come together to collaborate with.,

(B) According to the information mastered by ISA, it invited several interprises with strong willing to go out, strength and international cooperation experience to carry out docking. The meeting was equipped with simultaneous interpreters, to ensure a good meeting effect.

(C) From the information knew after the meeting, Heibei Lide, Tsinghua Tongfang, Canaccord Group had a clear understanding of the Russian side’s desire and the cooperation requirements. But as to whether to take actual action, it can be decided after evaluation. Forest lighting(MLS) and Jingtaixing Company invited Russian companies to visit their company and discuss further. It needs to contact and communicate with each other for many times to achieve a cooperation, including the exchange of visits between enterprises, trust building, deep conversation and negotiation of specific content, and the understanding of attitude of the local government, etc., and  it is clear that everything doesn’t happen at once. But once you complete a cooperation, it would be easy to expand and go deeply.

(D) By recommendation of the delegates, firstly, similar meetings should be set in the future, comprising a half-day of events, emphasizing one-on-one conversations between Chinese and Russian enterprises, a They are more willing to communicate in a relatively intimate space, when it involvesin enterprise internal affairs; secondly, future meetings should expand the range of participants from the Chinese side in order to create more opportunities for cooperation.