Chinese turbine manufacturer Mingyang Smart Energy (LON:MYSE) has said that the company is actively exploring international markets despite a fall in its overseas revenue.
In its 2023 Annual Report, Mingyang noted that international markets presents a huge opportunity and that Chinese wind power companies are actively going overseas to seek new development models.
However, the company warned that the business environment is quite different from that in China, which requires experienced teams and professional technical support.
Mingyang warned that the development of its overseas business may be subject to the risk of weaker-than-expected development due to various factors.
Its report noted that western countries have issued plans to simplify approval procedures for new energy projects along with offering subsidies and financial support, offering new opportunities for growth.
“China’s wind power companies are actively promoting international strategies by establishing production bases overseas, jointly developing projects with international partners and through other diversified approaches to expand their global business,” the report stated.
“In addition, by listing on overseas stock exchanges, Chinese wind power companies have strengthened their channel construction and brand building in the international market from the capital market, thereby enhancing their international visibility and market competitiveness.
Financial results
2023 was a difficult year for Mingyang as it suffered falling revenues and profits. It made a total operating revenue of 27.8 billion yuan (£3bn) in full year 2023, a slight decline from the 30.7bn yuan (£3.3bn) it made in 2022.
However, this translated into a profit of 372.4 million yuan (£41mn), an 89.19% decline from the 3.4bn yuan (£374mn) it made in 2022.
Of its operating revenue, 76.5mn yuan (£8.4mn) came from overseas markets, down 93.9% compared 2022.
However, its performance for the first quarter of 2024 was better than the one seen in the same period of 2023. Its operating revenues hit 5bn yuan (£550mn), up 84.6% from the first quarter of 2022’s 2.7bn yuan (£297mn).
Mingyang also posted a profit of 290.7mn yuan (£31.9), compared to a 290.5mn yuan (£31.9mn) loss in the same period of 2022.
Scotland in focus
Mingyang has been eyeing Scotland as a potential base to expand into European markets and to access the North Sea.
The company struck a deal with Opergy Group to help identify potential ports that can house manufacturing facilities for turbines and foundations.
A wind turbine OEM facility, which Mingyang would invest in, has been progressing through the Scottish Government’s Strategic Investment Model (SIM), a programme to align infrastructure and supply chain projects with offshore wind developers.
However, the company’s possible entry into Scotland has raised controversy, with analysts saying it puts the country’s supply chain and energy security at risk.
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