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

Jiangsu Haili stands at a pivotal moment-leveraging dominant offshore-foundation capacity, rapid 2025 revenue rebound and deep R&D/manufacturing expertise to capitalize on booming domestic and export demand-yet its thin margins, steel-cost exposure, regional concentration and cyclical revenue history leave it vulnerable; success will hinge on capturing floating and international markets, sustaining pricing discipline, and rapidly upgrading for ever-larger turbines while navigating fierce domestic rivals, geopolitics and grid bottlenecks. Read on to see where Haili's strengths can be turned into enduring competitive advantage-or risk erosion.

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - SWOT Analysis: Strengths

Dominant market position in offshore foundations supported by a robust manufacturing infrastructure and strategic coastal presence. As of December 2025, Jiangsu Haili (Haili) holds a leading position in the Chinese offshore wind foundation market, which accounts for roughly two-thirds of global offshore wind capacity growth. Haili operates more than 10 production facilities across Jiangsu and Shandong provinces and leverages specialized port resources for global distribution of large-scale components. The company has achieved an annual production capacity of 1,000,000 tons, with a strategic target to reach 1,500,000 tons by end-2025 to meet surging demand. Product specialization covers monopiles, jackets, and booster stations engineered to support the industry shift toward 20MW+ turbines.

Key operational footprint and production metrics:

Exponential revenue growth and recovery driven by a massive surge in project execution following prior industry downturns. For the twelve months ending September 30, 2025, Haili reported total revenue of 3.96 billion CNY, a 232.68% year-over-year increase from 1.19 billion CNY (12 months prior). This follows a challenging 2024 with annual revenue of 1.35 billion CNY, a 19.63% decline compared with 2023. In the quarter ending September 30, 2025, revenue reached 1.64 billion CNY, up 134.73% year-over-year, signaling accelerating project deliveries. The recovery aligns with national industry expansion: China reached 535 GW of total installed wind power by early 2025, a 17.2% year-over-year increase, supporting sustained order flow.

Selected financial performance figures:

Solid financial foundation and liquidity with a manageable debt structure and healthy capital ratios versus heavy industry peers. As of late 2025, total debt-to-equity ratio stands at 31.96%, providing significant headroom for capital-intensive expansion. The current ratio is 1.53 and the quick ratio is 0.98, indicating adequate short-term liquidity to cover operational obligations. Market capitalization rebounded to ~17.65 billion CNY as of December 26, 2025, reflecting a 21.99% increase over the prior 12 months. Trailing twelve months (TTM) return on equity (ROE) stands at 5.57%.

Key balance-sheet and market metrics:

Advanced manufacturing and R&D capabilities backed by 15 years of specialized experience in high-tech wind power equipment. Haili is designated a nationwide pilot corporation for innovation, with R&D focused on components meeting international quality and compliance standards. The company can manufacture offshore components up to 15 meters in outer diameter, supporting ultra-large turbine platforms. R&D expenditure rose in line with revenue growth, reaching 41.75 million CNY on a TTM basis by September 2025, up from 32.18 million CNY in 2024. Strong technical expertise underpins long-term contractual agreements and high utilization across production lines.

R&D and technical capability snapshot:

• Years of specialized experience: 15 years
• R&D expense (TTM to Sep 30, 2025): 41.75 million CNY
• R&D expense (FY 2024): 32.18 million CNY
• Maximum component outer diameter capability: 15 meters
• Average production line utilization: 93.3%
• Long-term supply contracts: multiple multi-year agreements with major OEMs and developers

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - SWOT Analysis: Weaknesses

Tightening net profit margins amid rising operational costs and intense domestic competition constrain the company's profitability and financial flexibility. Despite a massive revenue surge in 2025, trailing twelve months (TTM) net profit margin remains thin at 4.88%. TTM cost of revenue for the period ending September 2025 reached 3.35 billion CNY against 3.96 billion CNY total revenue, reflecting a high cost-to-revenue ratio. Operating expenses for the same TTM rose to 319.55 million CNY, while selling, general and administrative (SG&A) expenses totaled 175.68 million CNY, pressuring conversion of gross profit (617.68 million CNY) into net income.

High sensitivity to raw material prices due to dependence on steel and specialized alloy forgings increases margin volatility. Steel and related materials typically account for over 70% of total production cost for wind towers and foundations. Demand in 2025 for high-strength alloy steel forgings such as 34CrNiMo6 adds premium input costs. Inventory turnover ratio of 2.04 (late 2025) indicates moderate stock movement, increasing carrying cost exposure during commodity price swings. Any sudden spike in global steel prices could quickly erode the observed 15.6% gross margin.

• Raw material exposure: >70% of production cost tied to steel and forgings
• Inventory turnover: 2.04 (late 2025) - moderate liquidity of inventory
• Premium alloy demand: increased use of 34CrNiMo6 elevates unit cost
• Margin vulnerability: gross margin 15.6% potentially reversible with steel price rises

Geographic concentration of manufacturing assets in Jiangsu and Shandong provinces creates operational risk. The company operates over 10 facilities concentrated along the East China coastal corridor, which benefits port access but concentrates exposure to region-specific regulatory shifts, environmental inspections, and local grid constraints. Regional power curtailment events or grid-connection delays in East China can materially disrupt delivery schedules, particularly during the 2025 'rush installation' period. Concentration limits logistics optimization for inland and international projects versus diversified peers, and reinforces revenue dependence on Chinese state-owned energy developers.

Volatility in historical revenue performance reflects cyclical dependency on government-driven installation targets and subsidy timelines. The company recorded a 70.09% revenue drop in 2022 and a 19.63% decline in 2024, followed by a 232% recovery in 2025. These swings indicate exposure to the timing of offshore tender rounds and subsidy policy changes under multi-year plans such as the 14th Five-Year Plan. Rapid recovery in 2025 strains supply chain capacity and workforce management, complicating long-term financial planning and stable dividend policy-evidenced by a low 0.10% dividend yield as of December 2025.

• Historical revenue swings: -70.09% (2022), -19.63% (2024), +232% (2025)
• Dependency: timing of government tenders and subsidy policies
• Operational strain: rapid scale-up in 2025 increases supply chain and HR risks
• Investor returns: low dividend yield 0.10% (Dec 2025) reflects constrained free cash flow

Balance-sheet and working-capital pressures are implied by high cost base and inventory holdings. Elevated cost of revenue (3.35 billion CNY TTM) and inventory turnover of 2.04 suggest capital tied in stock; combined with rising operating expenses (319.55 million CNY), this can compress cash conversion cycles and increase reliance on short-term financing during off-cycle revenue troughs. The low net margin (4.88%) further reduces internal buffers to absorb cyclical downturns or unplanned cost inflation.

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - SWOT Analysis: Opportunities

Accelerated offshore wind installation targets driven by China's 'dual sea' strategy create immediate and medium-term demand for Haili's foundation products. National targets set offshore installed capacity at 42.7 GW by 2025 and project-scale ambitions of 1,500 GW by 2050, implying sustained multi-decade demand for foundations. Recent concentrated project starts in Fujian and Liaoning are expected to deliver material backlogs and revenue recognition in H1 2025; the Qingzhou Seven EPC tender specifies shipment commencement by March 2025, creating near-term cash flow and utilization upside for foundation fabrication lines.

The following table quantifies near- and mid-term offshore installation drivers relevant to Haili:

Expansion into global offshore markets leverages Chinese price competitiveness and growing overseas capacity additions. GWEC forecasts offshore wind to represent 17.5% of new global capacity by 2030, with ~16 GW of new offshore installations expected in 2025. Chinese OEMs underprice Western peers (Vestas, Siemens Gamesa), creating penetration opportunities in Africa, Southeast Asia and Europe. Haili's existing batch exports of towers to South Africa and Laos demonstrate initial international traction and logistical capability for further export growth.

• Export wins to date: towers to South Africa and Laos (commercialized shipments).
• European demand gap: ~23.2 GW awarded capacity needing suppliers - potential high-margin tenders.
• 2025 global offshore additions: ~16 GW (GWEC estimate) - addressable share for competitive Chinese suppliers.

The technological transition toward deep-water floating foundations opens a high-value niche. As near-shore resource space saturates, floating foundations and transition pieces for deep-water sites and larger turbine classes (21.5 MW and conceptual 50 MW twin-head designs) will command premium pricing and higher technical barriers to entry. Haili's product suite already includes floating foundations and transition pieces, positioning it to capture premium margins as the industry shifts offshore-to-deep-water and adopts larger turbine platforms. Norway's recent 500 MW floating tenders and other international pilots signal near-term commercial pathways.

Key floating/wider-platform metrics:

Stabilization of bidding prices and improved industry discipline support margin recovery. In October 2024, 12 major Chinese manufacturers agreed to prohibit predatory low-price bids; SPIC's late-2024 bidding rule revisions produced an observable rebound in component pricing. These shifts create a basis for improved pricing power in 2025 framework agreements and reduce the likelihood of race-to-the-bottom tendering, enabling Haili to better absorb raw material inflation and fund its 3.8 billion CNY asset expansion program aimed at capacity and capability upgrades.

• Industry self-discipline: 12 manufacturers agreement (Oct 2024) - reduces malicious low-price competition.
• SPIC bidding revisions: late 2024 - observed component price rebound.
• Haili capex target: 3.8 billion CNY - financed by improved margins and order flow.
• Expected margin impact: potential net margin recovery in 2025 (company-level uplift vs. 2024 depressed levels).

Jiangsu Haili Wind Power Equipment Technology Co., Ltd. (301155.SZ) - SWOT Analysis: Threats

Intense domestic competition and price wars: the domestic wind-equipment market is highly fragmented with dominant players such as Dajin Heavy Industry and Titan Wind Energy expanding capacity to capture the 2025 demand surge. Competitive bidding for SOE contracts keeps equipment manufacturers' internal rates of return (IRR) near 10% on average; industry surveys indicate median IRR in 2024-2025 of 9-11%. If a major competitor breaks pricing discipline, scenario analysis shows Haili's 2026 EBITDA could decline by 20-35% relative to base case.

Geopolitical tensions and trade barriers: rising scrutiny of Chinese renewable-energy technology in Western markets increases risks of tariffs, anti-subsidy probes, and investment restrictions. The U.S. saw a reported 36% YoY decline in renewable investment in 2025; EU investigations into Chinese wind technology could trigger duties or market exclusions. Establishing local production to circumvent barriers requires CAPEX in the hundreds of millions USD and increases operating complexity and break-even thresholds.

• U.S. policy impact: 36% YoY drop in renewable FDI (2025), higher screening of Chinese suppliers.
• EU risk: potential anti-subsidy tariffs could add 10-25% to landed costs.
• Mitigation cost: estimated CAPEX to set up EU/US plant = USD 150-350m; payback >5 years under conservative margins.

Rapid technological obsolescence and scaling risks: turbine scaling is accelerating-designs for 50 MW turbines surfaced at China Wind Power 2025-forcing suppliers to adapt to larger monopile diameters (>15 m) and deeper-water jacket foundations. Haili's plan to reach 1.5 million tonnes capacity requires heavy investments in new presses, molds, and logistics; a delayed upgrade could downgrade its supplier tier, reducing access to premium projects and compressing margin by an estimated 200-500 basis points.

Grid connection bottlenecks and curtailment: transmission infrastructure lags have caused forced curtailment and output losses-some provinces reported ~10% decline in wind generation during 2024-2025 due to insufficient grid capacity. Curtailment and delayed grid hookups increase project cancellations and deferred payments, elevating accounts receivable days sales outstanding (DSO) and stressing cash flow. Financial sensitivity analysis shows a 10% market-wide curtailment can raise DSO by 20-40 days and increase working-capital needs by RMB 200m-500m.

• Observed curtailment impact: ~10% output loss in affected provinces (2024-2025).
• Cash-flow sensitivity: 10% reduction in developer revenues → Haili AR rise by 20-40 days; incremental working capital RMB 200m-500m.
• Order risk: prolonged grid delays could trigger 5-15% project cancellations regionally.

Combined systemic risk: simultaneous occurrence of price collapse, export barriers, technology lag and grid curtailment could compound downside-scenario modelling indicates combined impact could reduce consolidated net profit by 40-60% in a severe case and materially impair liquidity ratios (current ratio falling below 1.0 without additional financing). Monitoring competitor pricing behavior, export policy developments, CAPEX pacing and provincial grid-connection schedules is critical to detect early stress signals.