Core Viewpoint - The company, Sun Moon Co., Ltd. (日月股份), is collaborating with several partners to establish a new company focused on developing a deep-sea wind power base in Ningbo, aiming to enhance its competitiveness in the wind power and casting industries [1][2]. Group 1: Investment and Company Structure - Sun Moon Co., Ltd. plans to invest in a joint venture named Zhejiang Ningbo Zhuhai Wind Mother Port Equipment Development Co., Ltd. (海风装备) with a registered capital of 1.2 billion yuan [1]. - The ownership structure of the new company includes Zhejiang Haifeng with 73% stake, Ningbo Energy with 20%, Sun Moon Co., Ltd. with 5%, and Dongfang Cable with 2% [1]. Group 2: Industry Context and Company Strategy - The investment is part of Sun Moon Co., Ltd.'s strategy to enhance its capabilities in the wind power sector, which has seen significant growth in installed capacity, with a 23.1% year-on-year increase in the first five months of this year [2]. - The company is focusing on developing large megawatt wind power products to capture both domestic and international markets, responding to the trend of increasing turbine sizes and efficiency [2]. Group 3: Financial Performance - In the first quarter of this year, Sun Moon Co., Ltd. reported revenue of 1.301 billion yuan, an increase of 86.41% year-on-year, and a net profit of 121 million yuan, up 39.14% year-on-year [2]. - Despite the growth in revenue and profit, the company has faced liquidity challenges, with negative operating cash flow for five consecutive quarters, amounting to -309 million yuan in the latest quarter [2]. Group 4: Future Considerations - The establishment of the new company is subject to regulatory approvals, indicating potential uncertainties related to market competition and operational management [3]. - The company asserts that its financial condition is stable and that the investment will not adversely affect its main business or ongoing operational capabilities [3].