Core Viewpoint - Eastern International Ltd. has successfully completed two significant offshore wind farm projects in Jiangsu, showcasing its capabilities in managing complex logistics for renewable energy infrastructure [1][2]. Group 1: Project Completion - The company completed the Jiangsu Yancheng Three Gorges Fenghai Dafeng Offshore Wind Farm Project and Jiangsu Guoxin Dafeng Offshore Wind Farm Project, with a total installed capacity exceeding 1.6 million kilowatts [1]. - The total contract value for these two projects is more than RMB 49 million (approximately US$7.07 million) [1]. Group 2: New Contracts - Suzhou TC-Link, a wholly owned subsidiary of Eastern International, secured a large-scale offshore transportation contract with Guangdong Goldwind for the "Yangjiang Project," which includes road transportation, loading and unloading at port, sea transportation, and related services [2]. - The contract also involves road modifications for oversize and overweight cargos, indicating the complexity of the logistics required for the project [2]. Group 3: Industry Insights - The COO of Eastern International emphasized the importance of offshore wind power in clean energy development, highlighting the logistical challenges due to the oversized dimensions and excessive weight of wind power equipment [3]. - The collaboration with Guangdong Goldwind is seen as a strategic integration of manufacturing and logistics capabilities, enhancing efficiency in offshore wind power project logistics [3]. Group 4: Company Overview - Eastern International Ltd. is a holding company incorporated in the Cayman Islands, providing domestic and cross-border professional logistic and construction services [4]. - The company operates through its subsidiaries, including Suzhou TC-Link, and has a network covering key cities in mainland China, Hong Kong, Southeast Asia, and Central Asia [4].

Core Viewpoint - The article emphasizes the rapid development and potential of offshore wind power in China, particularly highlighting Yangjiang as a leading hub for this emerging industry, which is crucial for the future energy needs of the country [1][3]. Group 1: Offshore Wind Power Development - Yangjiang has become one of the largest cities in China for offshore wind power installation within just eight years since its first project approval in 2017, establishing itself as a "wind power silicon valley" [1][2]. - The Yangjiang Shapa Wind Farm, which began operations in 2021, is noted for its challenging geological conditions and serves as a critical energy conversion point, transmitting generated power to the mainland [2]. - The strong wind resources in Yangjiang, with an average annual wind speed of 8 m/s, combined with its proximity to the Guangdong-Hong Kong-Macao Greater Bay Area, create favorable conditions for energy consumption [2]. Group 2: Industry Growth and Opportunities - Major state-owned enterprises, such as Guangdong Energy Group, have invested in Yangjiang's offshore wind projects, contributing to local infrastructure, job creation, and collective economic growth [2]. - The presence of leading wind turbine manufacturers like Mingyang Smart Energy has led to the establishment of a comprehensive supply chain for offshore wind power in Yangjiang, making it a key development base in China [2][3]. - China currently accounts for half of the global offshore wind power installed capacity and new installations, showcasing its dominance in the industry [3]. Group 3: Future Directions - The next phase for China's offshore wind power involves advancing into deep-sea projects, which require overcoming cost and technical challenges associated with floating wind turbines [3][4]. - Innovative projects, such as the integration of offshore wind power with marine aquaculture and hydrogen production, are emerging, indicating a trend towards multi-use of marine space for enhanced economic benefits [4]. - Chinese wind turbine manufacturers are gaining international recognition, with companies like Mingyang Smart Energy and Goldwind expanding their operations globally, indicating a growing export potential for China's wind power technology [4].

Summary of Wind Power Industry Conference Call Industry Overview - The wind power industry is projected to see new installations exceeding 100 GW in 2025, representing a 25% year-on-year growth, with offshore wind installations expected to reach 8-10 GW, growing by 30-70% [1][2] - For 2026, onshore wind installations are expected to remain stable, while offshore wind installations may reach 11-13 GW, driven by developments in provinces like Guangdong, Zhejiang, and Hainan [2][8] Key Insights and Arguments - The deep-sea planning and three-year action plan, if implemented, could advance 107 GW of deep-sea road projects and reserve 100 GW of new projects, potentially accelerating industry growth from 2027 to 2030 [3][8] - The cable sector maintains high gross margins due to a clear market structure and technological upgrades, supported by interconnection orders from Europe and Asia [1][4] - The turbine sector has shown signs of reversing price competition since Q3 2024, with bidding prices rebounding over 5%, indicating potential profitability growth from increased orders in 2026 [5][19] Offshore Wind Developments - European offshore wind planning has been revised upwards, with new installations expected to increase from 2-3 GW to 12 GW by 2030, achieving a compound annual growth rate of 21% [6][7] - China has made progress in floating projects, with the UK’s Green Box project receiving subsidies, and several domestic commercial projects advancing [7][11] Challenges and Opportunities - Floating wind power commercialization faces challenges such as high costs and technological maturity, with the need for cost reduction through competitive subsidies and technological upgrades [10] - The global floating wind market is expected to reach commercial viability by 2030, with annual installations projected to grow from 200-300 MW to 1 GW, primarily driven by contributions from the UK, South Korea, and China [9][10] Profitability and Market Dynamics - The profitability of the pile and jacket sectors has been affected by declining processing fees and fixed asset depreciation, but some companies are beginning to see a turnaround in profitability [14][15] - The average price for single piles is currently below 30,000 yuan per ton, while the main body price is at least 50,000 yuan per ton, indicating potential for improved profitability with increased orders [17] Recommendations for Investors - Recommended companies include Tongguang Electric Cable, Hai Cable, Daikin Heavy Industries, Dong Cable, and others, with a positive outlook on the profitability turnaround for major turbine manufacturers like Goldwind and Mingyang [23]

Renewable Energy Policy - Japan's government is planning to increase public support for offshore wind power projects [1] Industry Challenges - Rapidly increasing costs are threatening Japan's renewable energy goals [1]

Core Insights - Denmark's Orsted and Vestas are advocating for European nations to expedite permitting processes, enhance auction terms, and invest in power grids to unlock growth potential in the offshore wind sector [1][2] - The offshore wind industry is shifting focus to Europe due to a stagnant U.S. market under President Trump's administration, which has halted several offshore developments [6] Industry Growth Potential - Vestas anticipates global offshore wind capacity to increase by 20-25% annually until 2030, contingent on improved licensing and auction frameworks in Europe [2] - Orsted expresses optimism about the improving terms of auctions across various European markets, particularly regarding contracts for difference that stabilize power prices [5] Auction Challenges - Several European countries, including Denmark, Britain, Germany, and the Netherlands, have struggled to attract bidders for offshore wind permits due to insufficient subsidies and revenue guarantees [3][4] - Vestas' finance chief highlights the recurring mistakes made by European governments in auction designs that place full price risk on developers amid rising costs [4] Company Performance - Orsted reported a third-quarter net loss of 1.70 billion Danish crowns ($265 million), a significant decline from a profit of 5.17 billion crowns the previous year, primarily due to U.S. tariffs and project halts [6] - Vestas' shares rose approximately 13% following a new share buyback announcement and better-than-expected third-quarter earnings, driven by strong performance in its onshore business [7]

Summary of Ningbo Orient Wires & Cables (NBO) Conference Call Company Overview - **Company**: Ningbo Orient Wires & Cables (603606.SS) - **Industry**: Offshore Wind Power and Cable Manufacturing Key Financial Highlights - **3Q25 Net Profit**: Rmb441 million, representing a **53.1% year-over-year (yoy)** increase and a **129.6% quarter-over-quarter (qoq)** increase [1][2][13] - **Revenue**: Rmb3,066 million in 3Q25, up **16.5% yoy** and **34.2% qoq** [2][12] - **Gross Profit Margin**: Increased to **22.3%**, up **1.3 percentage points (ppts) yoy** and **6.6 ppts qoq** [2][13] - **Backlog**: Rmb19.5 billion as of October 18, 2025, with Rmb11.7 billion from submarine and high-voltage land cable orders [3][14] Market Dynamics - **Offshore Wind Demand**: China aims to add at least **15GW of offshore wind capacity annually from 2026 to 2030**, nearly double the average of **8GW per year from 2021 to 2025** [1][4] - **Installed Capacity Targets**: The goal is to reach **1,300GW by 2030**, **2,000GW by 2035**, and **5,000GW by 2060**, significantly higher than previous targets [4] Order and Delivery Insights - **Strong Order Flow**: NBO's backlog increased by **1.1 times yoy** with a significant portion from high-margin products [3][14] - **Delivery Expectations**: Anticipated increased deliveries in **4Q25 and 2026**, including exports for the Inch Cape Offshore wind project in the UK [3][18] Earnings Forecast - **Earnings Revision**: 2025-2027 earnings estimates raised by **4-8%** due to higher submarine cable sales [1] - **Target Price**: Increased to **Rmb81.00/share**, representing a **37% upside** from the current price of **Rmb66.20** [6][9] Additional Insights - **Cost Reduction**: The unit capital expenditure (capex) for offshore wind projects decreased to **Rmb9,000-12,500/kW** in 2024, down from **Rmb9,500-14,000/kW** in 2023 [29] - **Competitive Pricing**: The average levelized cost of electricity (LCOE) for new offshore wind power has reduced to **Rmb0.3/kWh**, making it competitive with market tariffs [29] Conclusion - NBO is positioned to benefit from the accelerating demand for offshore wind power in China, supported by a robust order backlog and favorable market conditions. The company's financial performance in 3Q25 reflects strong growth, and future earnings are expected to improve further due to increased submarine cable sales and project deliveries.

Industry News - One of Japan's leading regions for offshore wind power is urging authorities to reissue a tender for two critical projects [1] Project Updates - Mitsubishi withdrew from the planned offshore wind power developments [1]

Industry Development - The first US-flagged boat to connect offshore wind power has begun work in New York, marking a milestone for the offshore wind sector [1] Political/Economic Context - The offshore wind sector faces potential threats from Trump's policies [1]

Industry Development - The first US-flagged boat to connect offshore wind power has begun work in New York, marking a significant milestone for the offshore wind power sector [1] Political & Economic Factors - The offshore wind power sector faces potential threats from Trump's policies [1]

Industry Development - The first US-flagged boat to connect offshore wind power has begun work in New York [1] - This marks a milestone for the offshore wind power sector [1] Potential Risks - The sector is under threat from Trump [1]