Financial News Agency, December 1 (Reporter Xiao Lianghua) Affected by falling fan prices and declining offshore fan delivery scale, Mingyang Intelligence (601615.SH)'s gross profit of fan products and the company's overall net profit declined sharply in the third quarter. At the performance briefing for the third quarter of this year held today, Zhang Chuanwei, chairman and CEO of the company, stated that he would take various measures to reduce costs and restore the profitability of fan products. He did not discuss whether the performance target of delivering 14 GW throughout the year proposed earlier in the investor conference could be achieved.

The installed capacity of wind power this year fell short of expectations, and the internal volume of the industry intensified. Many wind power equipment companies are struggling. Mingyang Intelligence, a leading company, is none other than Mingyang Intelligence.

Zhang Chuanwei admits that due to the industry order cycle, the company's gross margin in the third quarter was affected to a certain extent, while Haifeng's gross margin remained stable, and the power plant product sales and power plant operation sectors were developing well. As the company further promotes cost reduction measures such as lightweight, large-scale, and standardized fans, etc., it will strive to restore the profitability of the current fan business through continuous lean production and refined management.

Regarding the development prospects of the industry, Zhang Chuanwei added that the company expects a steady increase in wind power installed capacity today and next two years. Currently, the number of tenders in the domestic offshore wind market is gradually increasing, and offshore wind power development is gradually advancing to the deep sea.

At the conference, some investors suggested that during the investor conference call held after the company's interim report ended, it is estimated that 14 GW will be delivered throughout the year. Can this goal be achieved this year?

In response to this, Zhang Chuanwei and company director Pan Yongle both chose to avoid it.

A financial news agency reporter noticed that in the first three quarters of 2023, the company sold 6912MW of fans abroad, of which 4937MW of onshore fans were shipped, an increase of 41.19% over the previous year, while offshore fan shipments were 1975 MW, a year-on-year decrease of 11.05%. Will it be possible to deliver more than 7GW of products in the last quarter? Industry insiders said that the fourth quarter was the peak season for the industry, but Mingyang Intelligence's delivery volume for the first three quarters was still less than half of the previous estimate, so clearly there was a lot of pressure in the fourth quarter.

Financial reports show that in the first three quarters of this year, Mingyang Intelligence achieved operating income of 20.958 billion yuan, down 3.26% year on year; net profit was 1,228 billion yuan, down 65.56% year on year. Among them, Mingyang Intelligence achieved operating income of 10.399 billion yuan in the third quarter, an increase of 40.04% over the previous year; net profit was 574 million yuan, a decrease of 48.65% over the previous year. The company's gross margin for the third quarter was 13.17%, down 6.92 percentage points from the previous month due to falling fan prices.