Group 1: Company Overview and Financial Performance - The company achieved a wind tower production of approximately 446,900 tons and sales of about 435,100 tons in 2024, with revenue from wind equipment manufacturing reaching 2.631 billion CNY, accounting for 80.38% of total revenue [2] - As of the end of Q1 2025, the company has a backlog of wind product orders totaling 480,900 tons, indicating an increase in order volume and pricing for 2025 [3] Group 2: Capacity Expansion and Production Plans - The second phase of the Jiangsu Yancheng factory's offshore base upgrade and expansion is expected to be completed in 2025, adding an annual capacity of 80,000 tons, focusing on large monopiles, tower tubes, and other offshore products [4] - The company is optimizing its capacity layout by shutting down the Dalian factory to enhance asset efficiency [4] Group 3: Financial Instruments and Credit Ratings - The next period for triggering the downward adjustment of the convertible bond conversion price will restart from August 18, 2025, with the board considering market conditions and operational factors for any potential adjustments [4] - The company's credit rating is AA- with a stable outlook, as confirmed by a report from a credit rating agency [4] Group 4: Renewable Energy Generation Capacity - The company currently holds a total renewable energy generation capacity of approximately 681.3 MW, including 118 MW from grid-connected photovoltaic power stations and 563.3 MW from wind power plants [5] - In 2024, the average utilization hours for power generation were 2,413 hours, resulting in an on-grid electricity output of 1.603 billion kWh and revenue of approximately 600.288 million CNY [5]

Investment Rating - The report maintains a "Recommended" rating for the company [4] Core Views - The company reported a revenue of 23.984 billion RMB for 2024, a decrease of 7.36% year-on-year, and a net profit attributable to shareholders of 0.892 billion RMB, down 59.90% year-on-year [1] - The report indicates that the company's performance exceeded the midpoint of previous forecasts [1] - The company expects a recovery in profitability driven by high demand in the wind power sector and improved supply-demand dynamics [3] Revenue and Profit Analysis - The company achieved a total revenue of 239.84 billion RMB in 2024, with a significant decline in net profit [1] - The breakdown of net profit contributions includes 0.37 billion RMB from fiberglass, 0.186 billion RMB from wind blades, and 0.022 billion RMB from lithium membranes, while other businesses contributed a loss of 0.314 billion RMB [2] - The company faced substantial asset impairments of 84.23 million RMB and credit impairments of 47.50 million RMB, impacting overall performance [2] Segment Performance - Fiberglass sales remained stable at 136,000 tons, generating revenue of 77.4 billion RMB, with a net profit of 0.37 billion RMB [2] - Wind blade sales reached 24 GW, resulting in revenue of 85.7 billion RMB, with a net profit of 0.318 billion RMB [3] - Lithium membrane sales increased by 9% to 1.9 billion square meters, generating revenue of 1.47 billion RMB, with a net profit of 0.044 billion RMB [3] Forecast and Valuation - The company forecasts net profits of 1.562 billion RMB, 2.016 billion RMB, and 2.319 billion RMB for 2025, 2026, and 2027 respectively, with corresponding dynamic P/E ratios of 16x, 12x, and 11x [4] - The report anticipates a recovery in net profit growth rates, projecting increases of 75.12% in 2025 and 29.08% in 2026 [6]