Summary of Offshore Wind Power Industry Conference Call Industry Overview - The global offshore wind power construction is accelerating, with a record auction volume of 56 GW in 2024 and an ongoing construction volume of 48 GW, leading to a total scale of 83 GW, which is five times the new construction scale of 8 GW in previous years [1][6] - Governments are reforming pricing and sales mechanisms to reduce investment risks and promote structural recovery and rapid growth in the industry [1][8] Key Insights - Floating offshore wind technology is in the pre-commercialization stage, with a new bidding volume of 1.9 GW in 2024, representing 90% of existing capacity, providing additional space for fixed offshore wind development in the next 30 years [1][9] - The offshore wind market in Europe, Asia-Pacific (Japan and South Korea), and China is expected to grow at an annual rate of approximately 28%-31% from 2025 to 2030, with China leading the market in 2025-2026, followed by Europe in 2026 and Asia-Pacific in 2028 [1][12] - European offshore wind project financing reached a new high in 2023, indicating a large-scale construction start in 2025-2026, with the UK providing £1.1 billion in subsidies for offshore wind in 2024, a historical high [2][20] Investment Opportunities - Significant investment opportunities are anticipated in the global offshore wind equipment market from the second half of 2025, with domestic market growth expected to exceed 200% compared to the past three years [3] - The domestic offshore wind market is projected to approve approximately 2.9 GW of new capacity in 2025, with subsequent years seeing increases to over 10 GW and 16 GW to fill previous construction gaps [3][16] Market Dynamics - The demand for core components such as wind turbine foundations and submarine cables is expected to rise significantly due to deep-sea and large-scale development [9][10] - The domestic offshore wind power equipment industry chain's most valuable segments for long-term attention are wind turbine foundations and submarine cables, with the latter showing a long-term inflation trend in unit value due to increased offshore distances and technological advancements [29] Regional Developments - In the Asia-Pacific region, China dominates the offshore wind market, with Japan and South Korea starting to ramp up their efforts, aiming for 10 GW and 14.3 GW of installed capacity by 2030, respectively [22] - European countries like Germany and the Netherlands are leading in offshore wind project contributions, with a combined release of 12 GW of projects in 2024 [15] Future Projections - By 2030, the EU aims for 111 GW of offshore wind capacity, with annual construction exceeding 15 GW needed to meet this target [18] - The floating offshore wind market is expected to grow significantly, with annual market growth rates projected to reach 8-10 times by 2031 [25] Financial Aspects - The cost structure of offshore wind equipment includes main machine value (35%-40%), outgoing cables (10%-15%), infrastructure (10%), and towers (10%), with overall costs optimized by over 30% since 2019 [26] - The investment return rates for offshore wind projects have decreased to 4%-6% due to competitive bidding, but financing costs have also dropped, maintaining investment attractiveness [28] Conclusion - The offshore wind power industry is poised for significant growth, driven by technological advancements, government support, and increasing demand for clean energy solutions. The next few years will see a shift in market dynamics, with various regions contributing to the global offshore wind capacity expansion.

Investment Overview - The company plans to invest in establishing a joint venture named Zhejiang Ningbo Zhuhai Wind Mother Port Equipment Development Co., Ltd. with a registered capital of 120,000 million RMB [1][2] - The investment proportions are as follows: Zhejiang Haifeng 73% (87,600 million RMB), Ningbo Energy 20% (24,000 million RMB), the company 5% (6,000 million RMB), and Ningbo Oriental Cable 2% (2,400 million RMB) [2][4] - This investment does not require shareholder approval as it falls within the board's decision-making authority [1][2] Company Objectives - The establishment of the joint venture is aligned with the company's strategic development needs, focusing on the investment and construction of the Zhejiang (East China) deep-sea wind power mother port Xiangshan base project [1][6] - The investment aims to enhance the company's influence and competitiveness in the wind power and casting industries, seeking to explore market potential and promote growth [6] Company Structure and Operations - The joint venture will engage in various activities including park management services, port services, equipment sales related to offshore wind power, and marine engineering equipment manufacturing [2][5] - The operational scope will include research and development of offshore wind power systems, equipment sales, and marine services, among others [2][5] Regulatory Considerations - The establishment of the joint venture is subject to approval from relevant regulatory authorities, which introduces a degree of uncertainty [1][6] - The final name and operational scope of the joint venture will be confirmed upon registration with the market supervision administration [2][4]