Summary of Offshore Wind Power Industry Conference Call Industry Overview - The offshore wind power construction in China is accelerating, with an expected grid connection of 10-11 GW by 2025, primarily concentrated in Guangdong, Jiangsu, Zhejiang, Hainan, and Fujian, while Shandong and Liaoning are relatively less involved [1][8] - Cumulatively, approximately 94 GW of capacity has been tendered, approved, and competitively allocated, laying the foundation for large-scale installation growth during the 14th Five-Year Plan period [1][8] Key Developments by Region Zhejiang - Zhejiang is leading in offshore wind project advancements, having completed resource exploration for 11 GW and initiated the tender for a 500 kV flexible direct current project, with equipment procurement expected by year-end and construction starting next year [2][4] Fujian - Fujian is developing a 4.8 GW deep-sea demonstration project, with parts already connected to the grid or under construction [1][2] Shandong - Shandong has initiated the main construction of a 500 MW project at the Baodao L site, with plans for grid connection by year-end [2][4] Liaoning - Liaoning aims to construct around 2 GW of deep-sea projects, with the Huadian Phase I 1 GW project undergoing EPC tendering and expected to start construction this year [2][4] Hainan - Hainan is focusing on the China Power Construction's floating deep-sea demonstration project, with a 200 MW pilot project currently underway [4] Other Regions - Hebei has reserved 15.5 GW of national marine resources but is progressing slowly, with nearshore projects yet to fully commence [4][5] - Guangxi has initiated resource exploration for 13.4 GW of deep-sea wind power sites, with a 1.995 GW tender expected to start in 2025 [6] International Developments - Outside mainland China, an additional 5-6 GW of new installations are expected in 2025, mainly in Europe (UK, Germany, France) and the Asia-Pacific region (Taiwan, South Korea) [9][10] - The total capacity of projects under construction is approximately 3 GW, with about 3.3 GW already connected to the grid [10] Market Trends and Future Outlook - The offshore wind power sector is experiencing significant growth, with Europe and Asia-Pacific regions showing notable increases in new projects, totaling 11.8 GW and 12.4 GW respectively [11] - The industry is expected to see a recovery in profitability, particularly in the wind turbine segment, driven by high-value orders and improved market conditions anticipated in the second half of the year [12][14] - Investors are encouraged to focus on segments benefiting from both "offshore wind" and "going abroad" trends, such as piles and submarine cables, as well as the wind turbine sector, which is projected to show strong performance in the coming years [14]

Investment Rating - The industry investment rating is "Positive" and maintained [9] Core Viewpoints - The report highlights the increasing attention on offshore wind project construction progress outside mainland China, with an expected addition of 5-6 GW of grid-connected capacity by 2025, primarily from the UK, Germany, France, and Taiwan [2][4][16] - The report indicates a decline in new competitive bidding for offshore wind projects, with approximately 34 GW expected in 2025, down from 58 GW in 2024, largely due to the impact of Trump-era policies on US offshore wind projects [5][25] - The report anticipates an acceleration in offshore wind project construction in the second half of the year, with domestic cable companies expected to increase shipments, leading to a recovery in performance [7][40] Summary by Sections 1. Offshore Wind Project Construction Progress - By 2025, offshore wind projects outside mainland China are expected to add 5-6 GW of grid-connected capacity, with Europe contributing 4.1 GW and the Asia-Pacific region contributing 2.3 GW [4][19] - The current status shows approximately 3.0 GW under construction and 3.3 GW already connected [4][19] 2. New Capacity Reserve Situation - New competitive bidding for offshore wind projects is estimated at 34 GW for 2025, with a significant regional distribution: Europe (24.8 GW), Asia-Pacific (7.3 GW), and Australia (2.0 GW) [5][25] - The new Final Investment Decision (FID) projects are approximately 6.5 GW, close to the 2024 total of 7.0 GW, with Europe accounting for 5.6 GW and Asia-Pacific for 0.9 GW [6][33] - New construction starts are projected at 12.4 GW, an increase from 9.6 GW in 2024, with Europe leading at 11.2 GW [6][36] 3. Investment Recommendations - The report emphasizes the positive outlook for the offshore wind industry, suggesting continued growth in related sectors such as pile foundations, submarine cables, and wind turbine manufacturing [7][40]