Financial Services Association, Feb. 4 (Reporter Xiao Lianghua) In the past year, it wasn't as good as expected for Goldwind Technology (002202.SZ), King of the Wind, and Mingyang Intelligence (601615.SH), King of Sea Breeze.

In the past, Yuanjing Energy was unique in terms of internationalization, followed by the ferocious bites of “price butchers” of Sany Heavy Energy (688349.SH) and Yunda Co., Ltd. (300772.SZ). The two former kings seemed to be showing more and more fatigue, declining market share share, and falling below net assets in the secondary market... Hailu Shuangxiong's situation seems to suggest that the wind power machine industry has entered a new “troubled world.”

Judging from the company's actions, investing heavily in the construction of a zero-carbon industrial park, launching a smart energy solution integrating “wind, solar, hydrogen storage and combustion”, and further stepping up overseas efforts is a game-breaker for Goldwind and Mingyang.

Industry insiders told the Financial Federation reporter that Goldwind and Mingyang have scale advantages. The zero-carbon industrial park and smart energy solutions are aimed at improving cost control capabilities and providing differentiated products and services, which are in line with the development direction of the new energy industry, but they are more complex business models, are also difficult to promote, and the profit path is not clear enough. The final results still need to be observed.

The model is getting farther away, and the chaser falls to

Goldwind Technology and Mingyang Intelligence used to be the twin players in China's wind power machine industry, but in the past year, it seems that they have begun to become mediocre.

Judging from the medium scaler, their market share is being diluted in a new round of internal volumes, and new players are becoming a growing threat.

According to industry media statistics, Chinese wind power equipment manufacturers won the bid data (incomplete statistics), in 2022, Goldwind Technology won the bid for 16.4 GW, accounting for 25% of the TOP5 total 64.5 GW. Mingyang Smart won the bid for 15.4 GW, with a share of 23.9% in the TOP5.

By 2023, the TOP5 winning bid amount will increase to 91.33 GW. Goldwind Technology won the bid for 18.77GW, and its share fell to 20.55%. Mingyang Smart won the bid for 17.72 GW, and its share fell to 19.38%.

As a comparison, Envision Energy's winning bid volume increased from 19.52 GW to 24 GW, further consolidating its leading edge; Yunda Co., Ltd. and Sany Heavy Energy won the bid volumes in 2023 were 17.32 GW and 13.49 GW respectively, more than double the 6.76 GW and 6.33 GW data in 2022, making it the dark horse with the fastest ranking growth in the past two years, and gradually gained a foothold in the first tier.

It is worth noting that Envision Energy won the bid for 6GW of international orders, and the profit from international orders is usually 2-3 times that of domestic orders. Overseas orders from Goldwind Technology and Mingyang Smart are still relatively small.

The relevant person in charge of Envision Energy told the Financial Federation reporter that Envision has laid out technology research and development, intelligent manufacturing, and renewable energy development and construction in more than 50 regions and countries around the world, and has a natural advantage in entering overseas markets. The gross margin in the international market is high, and some international solutions can also be used by me to feed back the domestic market.

In terms of gross profit, data for the first three quarters of 2023 shows that Mingyang Smart's gross margin dropped sharply to 15.78% from 22.31% in the same period last year, while Goldwind Technology also dropped from 22.68% to 17.58%. Although the gross margin of Sany Heavy Energy declined, it was still 19.67% as of the first three quarters of last year, which is a high level in the industry. The gross profit of Yunda shares, which implements the low price strategy, did not fluctuate much, falling to 15.72% from 18.21% in the same period last year.

The company's performance was poor due to reduced profitability. According to Goldwind Technology's latest 2023 quarterly report, the company achieved operating revenue of 29.319 billion yuan in the first three quarters, up 12% year on year; realized net profit of 1,261 billion yuan, down 47% year on year. According to the 2023 annual results forecast released by Mingyang Smart on the evening of January 30, net profit attributable to shareholders of listed companies is expected to be 354 million yuan to 530 million yuan in 2023, a year-on-year decrease of 84.66% to 89.75%. According to the median calculation, the company lost 786 million yuan in Q4 of 2023.

While the performance was poor, the two companies were not spared in the secondary market. On November 15, 2021, Goldwind Technology hit a high price of 20.95 yuan, and the company's market value once reached 88.5 billion yuan. Since then, Goldwind Technology's stock price has continued to fall. By the close of trading on February 2, the company's stock price had fallen to 6.70 yuan, leaving only 28.3 billion yuan in market capitalization, falling to more than 60 billion yuan, and the PB was only 0.8 billion yuan.

The stock price of Mingyang Smart also fell by nearly three-quarters from its high point. Currently, there is only 19.8 billion market capitalization left, and PB has shrunk to 0.69. However, the PB of Sany Heavy Energy and Yunda Co., Ltd. in the same industry is still above 1, at 2.46 and 1.08, respectively.

How to break through?

The dangerous environment has strained the nerves of many new energy companies and begun to work hard to make changes. Goldwind Technology and Mingyang Intelligence are no exception.

A Financial Services Association reporter combed through and discovered that the two former kings sought business breakthroughs in areas such as a zero-carbon industrial base, integrated source network load storage, and green power parks, etc., hoping to use this to regain their leading edge.

On November 21, 2023, Goldwind Technology announced that the company will invest in the construction of a zero-carbon industrial base for wind power in Beibu Gulf, with a total investment amount of 6 billion yuan, and a first phase investment amount of 1.77 billion yuan.

This is not the first time Goldwind Technology has invested in a zero-carbon industrial base. As early as April 2022, Goldwind Technology revealed that the company established a strategic partnership with the Wenzhou Municipal People's Government and signed a “Strategic Cooperation Framework Agreement” to build a deep-sea offshore wind power zero-carbon headquarters base and other projects in the Wenzhou area to build an internationally leading deep-sea offshore equipment manufacturing and service industry cluster, with a total project investment of 18.8 billion yuan.

Furthermore, on June 30, 2023, Goldwind Technology revealed that it plans to build a new energy equipment industrial base project in Qinhuangdao, Hebei, with an estimated total investment of 13.3 billion yuan.

Mingyang Intelligence, on the other hand, continues to lay out related industries from a horizontal perspective, making every effort to create a “wind and solar hydrogen storage and combustion” solution.

On December 26, 2023, the Mingyang Smart 30MW pure hydrogen gas turbine was officially launched. Mingyang intelligence industry insiders pointed out that the device can promote the development of zero-carbon cities, zero-carbon industrial parks, and zero-carbon communities, and is of great significance in building a new “wind, solar, hydrogen storage and combustion” clean energy model.

Yin Lei, deputy director of the Mingyang Intelligence Research Institute, said earlier that the company has laid out the smart energy and energy internet fields ahead of schedule, and has now formed a business model that can be replicated on a large scale.

Whether it is a zero-carbon industrial park or “wind and solar hydrogen storage and combustion”, it is an investment direction that conforms to national policy guidelines, conforms to the current popular ESG investment concept, and has certain advantages in terms of local government support and financial support. Recently, at an ESG investment training conference organized by Budweiser and Shanghai First Finance and Economics, Yang Haodong, manager of Xingzheng Global Fund, stated that ESG investment in line with social responsibility and environmental friendliness is growing rapidly.

However, some wind power industry insiders also pointed out that at present, the profit methods for domestic zero-carbon industrial parks mainly focus on “reducing corporate electricity costs+carbon credit transactions,” but at present, carbon market transactions have not been officially implemented, and the short-term benefits are uncertain. Coupled with the large number of domestic parks and the varying levels of local economic development, policy support, and resource distribution, it is very difficult to replicate the zero-carbon park model.

Wang Ting, Deputy Secretary General of the Carbon Neutrality Professional Committee of the China Energy Conservation Association, has publicly stated that when enterprises build zero-carbon industrial parks, they only invest and have no output in the short term. Compared with ordinary industrial parks, the investment cost of zero-carbon industrial parks is higher.

In terms of going overseas, according to “Fengmang Energy” statistics, China's wind power manufacturers won a total of 7.7 GW of orders in 2023. Of these, Envision Energy won 6 GW. Although Yunda Co., Ltd., Mingyang Intelligence, Goldwind Technology, and CRRC Zhuzhou also gained benefits, they are far from Yuanjing.

Previously, both Goldwind Technology and Mingyang Intelligence mentioned speeding up overseas and increasing the share of international orders. Who can get more overseas orders in the future still depends on each company's ability to take orders.