MYSE(SH:601615) Zhong Guo Jing Ying Bao·2025-10-18 08:01Core Viewpoint - Mingyang Smart Energy (601615.SH) announced a £1.5 billion (approximately RMB 14.21 billion) overseas investment plan to establish the UK's first integrated wind turbine manufacturing base in Scotland, aiming to address the "increased revenue without increased profit" dilemma in the domestic wind power market [1][3][4]. Group 1: Investment Plan - The manufacturing base in Scotland will be developed in three phases, with the first phase focusing on advanced wind turbine nacelle and blade manufacturing, expected to commence production by the end of 2028 [1]. - The second phase will expand production lines to accelerate the scale production of floating wind technology, while the third phase will include the production of control systems, electronic devices, and other key components, ultimately forming a complete industry chain ecosystem [1][2]. Group 2: Market Context - The European offshore wind market is experiencing a new installation boom, with Scotland being a key testing ground for floating wind technology due to its deep-sea resources [2]. - The European market offers higher price levels, and the UK provides additional income support through policies like the "Clean Industrial Bonus," allowing eligible companies to receive CFD contract subsidies [2][4]. Group 3: Financial Performance - Mingyang Smart Energy's net profit has been declining since 2023, with a significant drop from RMB 3.445 billion in 2022 to RMB 346 million in 2024. In the first half of 2025, revenue increased by 45.33% to RMB 17.143 billion, but net profit decreased by 7.68% year-on-year [4][5]. - The company's gross margin fell from 19.99% in 2022 to 8.1% in 2024, although it rebounded to 12.12% in the first half of 2025, remaining at a historically low level [5][6]. Group 4: Debt and Cash Flow Concerns - As of mid-2025, Mingyang Smart Energy's total liabilities reached RMB 635.13 billion, with an increasing debt-to-asset ratio from 58.85% at the end of 2022 to 69.93% by mid-2025 [6][7]. - The company has reported negative operating cash flow for three consecutive years, indicating challenges in self-sustaining its operations, which may exacerbate short-term financial pressures due to the large initial investment required for the overseas project [8][9].