Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ): 5 FORCES Analysis [Dec-2025 Updated]

Applying Porter's Five Forces to Jiangsu Haili Wind Power (301155.SZ) reveals a high-stakes industry where powerful steel suppliers, concentrated state-owned buyers, fierce domestic rivals, evolving substitute technologies, and steep entry barriers all shape the company's strategic outlook-read on to see how these forces squeeze margins, drive innovation, and determine whether Haili can scale its offshore ambitions into sustainable competitive advantage.

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - Porter's Five Forces: Bargaining power of suppliers

High concentration in steel procurement significantly amplifies supplier bargaining power. Raw material expenses-primarily heavy steel plates-account for over 70% of cost of goods sold (COGS) for wind equipment. In 2025, pricing pressure from major steel mills supplying specialized heavy plates for 15-meter diameter monopiles drove volatility in margins. Industry-wide cost of revenue for wind components reached approximately 3.35 billion CNY by late 2025, reflecting exposure to commodity markets. Only a limited number of certified suppliers can provide the high-grade offshore steel required to resist corrosion and fatigue in harsh marine environments, creating a structural supply-side bottleneck. Haili's gross profit margin fluctuated, bottoming near 6.5% during peak material cost periods and recovering toward ~15% as supply stabilized.

Logistics and port service providers exert material leverage because transporting monopiles and foundations requires specialized assets. Haili depends on strategic coastal facilities and heavy-lift vessels; charter rates for 5,000-ton slewing crane ships rose in 2025 due to demand for offshore foundation transport. The company's network of over 10 facilities across Jiangsu and Shandong requires integration with port authorities and maritime logistic firms that control critical export/transport hubs. Logistics can represent 5-10% of total project value, and constrained specialized shipping capacity is a key bottleneck as Haili targets 1.5 million ton annual production capacity by end-2025.

• Facilities requiring port integration: >10 (Jiangsu, Shandong)
• Logistics cost share of project value: 5-10%
• Target annual production capacity (end-2025): 1.5 million tons
• Typical transport unit weight: up to 2,000 tons per foundation

Specialized component suppliers (transition pieces, cages) hold moderate bargaining power driven by certification and long operational lifespan requirements (≈15 years). Switching suppliers entails high technical and validation costs. In 2025 Haili invested ~41.75 million CNY in R&D to internalize certain technical processes and reduce vendor dependence. Nevertheless, advanced items-high-strength bolts, proprietary anti-corrosion coatings-remain sourced from a consolidated set of global suppliers able to maintain stable pricing even when Haili's revenue experienced cyclical pressure (YoY declines up to 20% in prior cycles).

Energy and utility providers exert steady pricing pressure as production scales. Expansion of the Qidong base (≈2 billion CNY investment) materially increased electricity and industrial gas consumption in 2025. With a target total asset scale of 3.8 billion CNY, energy consumption from large welding and fabrication lines is a significant operational cost driver. Local utility pricing in Jiangsu directly influences COGS-reported cost of revenue was 1.27 billion CNY for fiscal 2024-and Haili's ability to negotiate rates is limited, positioning the company as a price-taker for a significant portion of overhead.

Skilled labor and technical expertise in marine engineering increase supplier-like power of the workforce, pushing SG&A upward. As of December 2025 the company employed ≈1,538 full-time staff, with certified welders and marine engineers in high demand to support 10MW+ turbine foundations and floating solutions. SG&A rose to 175.68 million CNY in the latest trailing twelve-month period, partly driven by competitive compensation and training costs. Scarcity of qualified personnel-compounded by rapid offshore wind sector growth and expected ~265% revenue surge among leading players in 2025-tightens labor market conditions and elevates staff bargaining power.

• Employees (Dec 2025): ≈1,538 full-time
• SG&A (TTM): 175.68 million CNY
• Sector growth impact: Leading players projected ~265% revenue surge in 2025
• Critical roles: Certified welders, marine engineers, heavy-lift operation technicians

Implications for Haili's supplier relations and strategic responses:

• Maintain long-term contracts and strategic partnerships with certified steel mills to mitigate price volatility.
• Expand vertical integration where feasible (ongoing R&D investment: 41.75 million CNY) to internalize critical components and reduce external dependency.
• Secure logistics capacity through multi-year charters or investment in port-side assets to alleviate exposure to surging heavy-lift rates.
• Implement energy-efficiency and power procurement strategies to limit utility cost pass-throughs as asset scale approaches 3.8 billion CNY.
• Invest in talent pipelines and retention programs to control SG&A escalation driven by labor scarcity.

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - Porter's Five Forces: Bargaining power of customers

Major state-owned power enterprises dominate Haili's buyer landscape, creating a highly concentrated customer base with immense negotiating leverage. Clients such as China Longyuan Power, Jiangsu New Energy, and China Three Gorges Renewables together account for an estimated 72% of Haili's order book in 2025. Competitive bidding processes run by these buyers have driven down component prices; bidding prices for wind turbine equipment stabilized in late 2024 at approximately 1,527 CNY/kW, compressing manufacturer margins. Haili reported revenue of 1.64 billion CNY in the latest quarter, reflecting heavy dependence on the procurement cycles and budget approvals of these central enterprises.

Stringent technical specifications and quality requirements imposed by major utilities force high capital expenditure and continuous R&D investment. Buyers require foundations capable of supporting next-generation turbines with outer diameters up to 15 meters; Haili's 2025 capacity expansion to 1.5 million tons is a direct response. Long payment cycles common in state-led infrastructure projects inflate accounts receivable balances and working capital needs. With a price-to-book ratio of 3.28 and ROE at 5.57%, Haili must reconcile capital-intensive upgrades with thin pricing flexibility demanded by its buyers; failure to meet evolving standards risks immediate exclusion from multi-billion CNY tenders.

• Technical demands: outer diameter support up to 15 m - drives CAPEX and testing costs.
• Working capital pressure: extended receivables due to state-owned procurement cycles.
• Margin compression: stabilized 1,527 CNY/kW bid price reduces gross margins across projects.

The shift toward integrated EPC and turnkey contracts gives buyers increased control over the supply chain, including foundation manufacturing and on-site construction. Projects such as the Qingzhou Seven offshore wind farm imposed strict delivery windows in 2025 (shipment start by March, completion by May), creating intense short-term production and logistics pressure. Customers now demand comprehensive service packages - equipment delivery, construction management, and O&M - prompting Haili to expand vertically into renewable energy development and maintenance to remain competitive. Operating income rebounded to 298.12 million CNY in 2025, yet profitability remains sensitive to contract terms and buyer-driven scope changes.

High switching costs after project commencement provide Haili with a temporary defensive advantage: once monopiles or jackets are integrated into a specific farm design, supplier replacement is prohibitively expensive. However, during tenders customers can readily switch among competitors such as Titan Wind or Dajin Heavy Industry. The Chinese offshore wind market is forecasted to add approximately 25 GW of new capacity by 2025, enlarging buyer options and maintaining buyer-led pricing dynamics. Haili's strong backlog is therefore contingent on continual price competitiveness during initial award phases.

Global expansion of major Chinese power groups further amplifies buyer power by forcing suppliers to meet international standards and certifications. As customers pursue projects in Europe and Southeast Asia, they demand compliance with IEC, DNV, and regional regulations; Haili is investing in a Yangtze River export base (approx. 297 million USD) to support global shipments. Buyers leverage their international portfolios to negotiate volume discounts, global service guarantees, and cross-border warranty terms, pressuring domestic suppliers to provide integrated global support while preserving slim margin structures.

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - Porter's Five Forces: Competitive rivalry

Intense competition among a few large-scale domestic manufacturers characterizes the offshore wind foundation market in 2025. Haili Wind Power competes directly with industry giants such as Titan Wind Energy and Dajin Heavy Industry across monopile and tower segments for share of the 11.7 GW of global offshore wind additions recorded in the previous year. Market concentration is high: the top five domestic producers account for an estimated 72% of China's offshore foundation output in 2024-2025, and rivalry centers on capacity, delivery lead times, and project relationships with OEMs and EPCs.

Capacity expansion is a primary battlefield. Haili targets 1.5 million tonnes of annual capacity by year-end 2025 to keep pace with competitors; rival announcements collectively signal >6.2 million tonnes of planned or under-construction capacity among the top players. Historically, periods of oversupply have driven severe margin compression-Haili experienced a 41% decrease in top-line revenue during the last oversupply cycle-fueling aggressive tactics including price-based bids and prioritized slot allocation for strategic customers.

Price competition remains the dominant form of rivalry, despite industry-led self-discipline efforts. In late 2024, 12 major manufacturers signed a non-binding agreement to curb malicious low-price bidding, yet utilization imperatives for large fabrication yards often precipitate aggressive pricing to fill schedules. Haili's elevated price-to-sales ratio of 10.2x versus an industry average of 2.5x reflects high investor growth expectations that increase pressure to defend market valuation via market-share wins and revenue acceleration.

• 2025 operating revenue forecast: +265% YoY for Haili (management target).
• Gross profit (most recent reported period): 617.68 million CNY.
• Net income movement in recent quarters: from 141.28 million to 141.50 million CNY.
• Industry average Price-to-Sales: 2.5x; Haili: 10.2x.

Rapid technological evolution toward larger turbines and floating foundations is reframing rivalry. The industry has seen a ~25% increase in average turbine size over five years, creating demand for foundations capable of supporting 15 MW+ turbines with diameters >15 m. Competitors with earlier investments in large-diameter fabrication, advanced automated welding, and floating substructure expertise gain tenders for next-gen farms. Haili's 2025 R&D budget of 41.75 million CNY is allocated to enlarge weld automation, fatigue design validation, and floating foundation prototypes to remain competitive versus technology leaders like Ming Yang Smart Energy.

Key technology-driven competitive metrics:

Geographical expansion is another major competitive front. Haili is expanding beyond Jiangsu into Shandong and other coastal provinces to position manufacturing close to new offshore clusters and to reduce logistics costs. Competition for coastal land, quay access, and deep-water port slots is fierce; port scarcity increases project lead times and bid premiums. In 2025 Haili committed ~2 billion CNY toward an export-oriented base aimed at capturing a portion of the 65% increase in global wind energy export potential observed over recent cycles, directly challenging European suppliers and established Chinese exporters.

• Planned domestic production footprint: Jiangsu (home), Shandong (expansion), selective southern sites.
• 2025 export base investment: 2.0 billion CNY.
• Global export potential increase: +65% (multi-year baseline).

Vertical integration into EPC and O&M intensifies rivalry by transforming equipment vendors into full-service competitors for lifetime contracts. Haili's move into offshore wind farm construction and maintenance allows capture of higher-margin services and long-duration revenue streams as first-generation offshore farms enter mature O&M cycles. This trend compresses margins for pure-play equipment manufacturers and creates head-to-head competition with traditional engineering firms and other integrated manufacturers vying for multi-year service contracts.

Competitive tactics observed include aggressive pricing during low utilization, capacity pre-commitments to secure supplier relationships, R&D race for large-diameter and floating foundations, strategic coastal land acquisitions, and vertical integration into EPC/O&M to stabilize revenues. The domestic bidding environment is effectively zero-sum for many projects, making market-share gains directly detrimental to rivals' near-term performance and valuation.

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - Porter's Five Forces: Threat of substitutes

Alternative renewable energy sources, particularly solar PV, represent a significant long-term threat to wind power's share of the energy mix. Global projections through 2030 estimate solar PV will deliver almost 80% of the incremental renewable capacity additions, with IEA and industry forecast consensus indicating ~1,200-1,600 GW of new solar by 2030 versus ~300-400 GW of new wind (onshore + offshore). In China, rapid solar deployment reduced levelized costs of electricity (LCOE) for utility-scale PV to as low as RMB 0.20-0.28/kWh in competitive auctions by 2024-2025, undercutting many onshore and some offshore wind projects whose delivered cost (including grid integration) ranges from RMB 0.30-0.45/kWh for recent projects. Provinces such as Jiangsu record near-100% utilization for certain wind assets during peak coastal seasons, but inland provinces increasingly favor modular solar for its lower capex intensity and accelerated permitting timelines (solar project lead times ~6-12 months vs. wind 12-36 months offshore).

Traditional fossil fuel generation continues to act as a substitute in terms of grid stability and firm capacity. As of mid-2025, thermal power accounted for roughly 40.4% of China's generation mix (down from ~50% a decade earlier), but coal-fired plants still provide the bulk of synchronous inertia and dispatchable base load. The intermittency of wind necessitates backup from thermal units or large-scale energy storage; grid integration studies estimate system-level firming costs for high-wind penetration scenarios add ~RMB 0.02-0.08/kWh to delivered cost depending on storage mix and curtailment. Thermal capacity remainers: ~1,100 GW+ of coal in China (operational), with retirements offset by new flexible gas and peaker installations. If offshore foundation, turbine installation and O&M costs do not decline in line with learning curves (monopile fabrication, heavy-lift vessel rates), utilities may prefer portfolios with higher shares of thermal or nuclear for reliability, directly affecting demand for Haili's offshore foundation products.

• Thermal share (China, mid-2025): 40.4% of electricity generation.
• Installed coal capacity (China, 2025): ~1,100 GW operational.
• Estimated firming/system integration cost for high wind mixes: RMB 0.02-0.08/kWh incremental.
• Battery storage deployments (China) scaling: utility-scale capacity grew >200% 2022-2024, but still represents <5% of total system capacity by mid-2025.

Technological shifts within the wind industry create intra-sector substitutes. Floating foundations are scaling rapidly: market forecasts expect floating wind capacity to grow >150% by 2030 from a small base (<5 GW operational in 2024 to >12-15 GW projected by 2030 in conservative scenarios). Monopiles dominated ~80% of foundations for fixed-bottom offshore turbines in 2024, but the economics for floating foundations improve as turbine sizes increase (>15-20 MW) and supply chains mature. Floating technology requires different steel grades, large composite mooring systems, and wet-fabrication techniques-areas where Haili's core monopile manufacturing (heavy rolled steel, driven pile welding, large press/roll forming) may have limited transferability without capital investment. Haili has included floating foundation modules in its 2025 product portfolio; however, transition metrics indicate a multi-year retooling and workforce reskilling period with CAPEX for new lines potentially equal to 10-30% of existing fixed-bottom yard investments.

Onshore wind remains a lower-cost substitute where land and grid access permit. Global onshore additions in 2024 reached ~109.9 GW versus 11.7 GW offshore. Typical onshore CAPEX is 40-70% lower than offshore, and O&M costs are substantially lower (onshore O&M ~RMB 0.015-0.025/kWh vs. offshore RMB 0.030-0.060/kWh). Capacity factors favor offshore (40-60%) over onshore (25-40%), but the CAPEX and construction complexity gap drives developer preference for onshore except where proximity to coastal load centers or land constraints push demand offshore. Haili's revenue exposure is concentrated in offshore foundations; sensitivity analysis of company revenue indicates a downside scenario (offshore capex stagnation; onshore preference) could reduce addressable market for large foundations by 20-35% through 2027.

• Global additions 2024: Onshore 109.9 GW; Offshore 11.7 GW.
• Typical onshore CAPEX: $900-1,400/kW; Offshore CAPEX: $3,000-5,000+/kW.
• Capacity factors: Offshore 40-60%; Onshore 25-40%.
• Haili downside market exposure (company sensitivity): potential 20-35% reduction in offshore foundation demand to 2027 in a high-onshore scenario.

Energy efficiency and demand-side management (DSM) reduce the need for incremental generation, acting as a macro-level substitute for new wind capacity. China's total power consumption grew 3.7% year-on-year in H1 2025; targeted industrial electrification and process efficiency programs, coupled with smart grid investments and distributed generation plus storage, could decelerate future capacity auctions. Scenario analysis: if efficiency measures and DSM lower projected annual demand growth from a baseline 3.5-4.0% to 1.5-2.0% for 2026-2030, cumulative new generation procurement could fall by ~15-25% relative to baseline, disproportionately impacting large-capex offshore projects that require long-term demand certainty. For Haili, this macro demand risk complements technology and fuel-based substitution threats and amplifies the importance of product diversification, cost reduction and participation in retrofit/repowering markets.

Implications for Haili's competitive position include:

• Price pressure if solar and onshore wind continue to lower LCOE faster than offshore learning curves.
• Need for accelerated R&D and capital allocation to floating foundation production lines to mitigate product substitution risk.
• Exposure to system-level firming costs and thermal competition that can reduce developer appetite for high-capex offshore projects.
• Sensitivity to national and provincial subsidy allocation shifts toward solar or DSM that shrink future offshore auction pipelines.

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - Porter's Five Forces: Threat of new entrants

High capital requirements and significant economies of scale create a formidable barrier to entry for new players in the offshore wind foundation market. Building a production facility like Haili's Qidong base requires an estimated investment of ~2.0 billion CNY (≈297 million USD). Haili's balance-sheet scale - total assets of 3.8 billion CNY - and its planned annual production capacity of 1.5 million tons by late 2025 illustrate the scale required to compete effectively in monopiles, jackets and large foundations.

• High upfront capital: land, deep-water quay construction, heavy fabrication equipment and QA systems.
• Economies of scale: per-unit cost advantages at Haili's planned 1.5M t/yr scale.
• Sunk R&D and tooling: multi-million CNY annual spend required to match product evolution.

Stringent regulatory requirements and specialized certifications act as a major deterrent. Offshore foundations must meet 20-25 year design lives in corrosive marine environments with fatigue, cathodic protection and coating regimes verified by third-party certifiers and utility approval. Haili's >15 years of offshore manufacturing track record, provincial/national high-tech pilot status and audited compliance history shorten permitting cycles for projects and supply agreements - attributes that new entrants lack.

• Permitting & design approvals: typically multi-year processes (2-5+ years for new manufacturing bases and type approvals).
• Certification costs: external testing, class society reviews and long-term corrosion/fatigue studies - often multi-million CNY outlays per product line.
• Analyst sentiment: company rated 'Strong Buy' based in part on regulatory compliance and market position.

Access to specialized supply chains and long-term offtake relationships create another strong barrier. Haili's established partnerships with major state-owned utilities such as China Longyuan Power and China Three Gorges Renewables provide volume commitments, early design collaboration and price visibility. The concentrated supplier base for high-grade offshore structural steel and specialized forgings favors incumbents that can aggregate procurement across multiple sites.

First-mover control of prime coastal locations and port infrastructure is a physical barrier. Ideal coastal quays with deep-water access in Jiangsu, Shandong and other coastal provinces are limited. Haili operates over 10 facilities across key coastal regions, effectively locking up strategic berths and quay capacity essential for transporting monopiles often exceeding 70-120 m in length and weighing thousands of tonnes.

• Port scarcity: deep-water quay capacity in prime provinces is constrained; new sites require significant civil works.
• Logistics costs: inland or suboptimal ports increase transport cost per foundation substantially (est. tens to hundreds of CNY per tonne additional).
• Capital/time to build new port: typically ≥1-3 years and hundreds of millions CNY depending on scope.

The rapid pace of technological innovation and movement toward larger, more complex foundations raises the learning-curve barrier. Manufacturing 15-meter diameter monopiles, complex jackets and floating foundation components involves advanced welding techniques, nondestructive testing regimes, large-scale fabrication jigs and rigorous QA/QC processes refined over decades. Haili's 15-year operational experience and continuous R&D investment (41.75 million CNY annually) create a knowledge moat that is costly and time-consuming for newcomers to replicate.

Overall, the combined effect of very high capital intensity (~2.0 billion CNY per major base), regulatory/time barriers (2-5+ years for approvals), entrenched buyer-supplier relationships, limited coastal quays and steep technological learning curves results in a low threat of new entrants in the high-end offshore wind foundation segment where Haili competes.