On the evening of August 29, Sany Renewable Energy (688349. SH) released its 2024 semi-annual report, and the company will adhere to high-quality development as a major operating principle, and the overall quality of operation will maintain a high level. With sufficient orders in hand, the company's domestic onshore wind turbine sales capacity was 3.3GW, a year-on-year increase of 121%, creating the best delivery performance in the same period in history, with a total revenue of 5.28 billion yuan in the first half of the year, a year-on-year increase of 34.88%; The cash received by the company from the sale of goods and the provision of labor services was 6.773 billion yuan, and the sales collection rate (current payment/current tax-included sales) exceeded 100%; The company's overall gross profit margin was 16.01%, an increase of 4.82 percentage points over the second half of last year, of which the gross profit margin of the fan business was 15.13%, an increase of 6.14 percentage points from the second half of last year, and the first half of the year has improved for two consecutive quarters, at the leading level in the industry, and the expense ratio during the period was 15.33%. The company's accounts receivable was 3.538 billion yuan, a decrease of 295 million yuan from the beginning of the year, and the company's accounts receivable remained high due to the high quality of customers, and the company's asset-liability ratio was 64.19%, and the financial structure was stable.

In the first half of this year, the company's net profit was 434 million yuan. With the continuous improvement of gross profit margin, effective cost control, and the scale of self-built wind farms under construction exceeding 2GW, it is expected that the operation in the second half of the year will be further improved in many aspects, and the company's annual profit will be comprehensively thickened.

According to the data, the company's main business is the research and development, manufacturing and sales of wind turbines and the design, construction and operation management of wind farms. The wind turbine product business includes the R&D, production, sales, and intelligent operation and maintenance of large-scale wind turbines and their core components, and the products have the advantages of lightweight, intelligent, high reliability, and low LCOE. The company is the leader of technological innovation of "box transformer" and "double box transformer". The company's blades, motors and other large components are self-developed and self-produced, which is highly synergistic with the design of the whole machine. The company adopts the platform design idea, and all parts can be shared with the platform model, which reduces the difficulty of operation and maintenance in the later stage; The modular configuration of each component can realize split transportation and hoisting, which reduces the difficulty of hoisting and saves hoisting costs.

The power of the company's onshore intelligent wind turbine products is completely covered by 3. XMW-11MW range, the maximum diameter of the wind turbine can reach 230 meters, according to the development needs of wind farms in different regions, different wind areas and different environments, the products are differentiated, and a product series suitable for various environments such as Shage famine, high altitude, low temperature, low wind speed and other environments have been formed.

The power of the company's offshore intelligent wind turbine products covers the range of 8MW-16MW, adopts the classic doubly-fed power generation system design, the integrated design of the double TRB spindle shafting and gearbox, and the integrated design of the offshore support structure.

In recent years, with reliable product quality, Sany Renewable Energy has firmly grasped the opportunity of the rapid development of the wind power industry, and its installed capacity in 2023 has ranked seventh in the world, fifth in domestic comprehensive and fourth in domestic onshore, showing the dark horse nature of the industry.

In the first half of 2024, China's wind power industry maintained a rapid development trend. According to data from the National Energy Administration, the new grid-connected capacity of wind power in the country reached 25.84GW in the first half of the year, a year-on-year increase of 12.4%. In the first half of 2024, there will be more bidding projects in the industry, and the industry demand will be strong; The state has introduced a series of policies such as "Wind Control Action in Thousands of Towns and Villages" and "Replacing Large with Small", and the domestic wind power industry is expected to maintain steady growth.

In the first half of 2024, in the face of industry development opportunities and challenges, Sany Renewable Energy adhered to high-quality development, and the overall quality of operation remained at a high level; Maintain a high level of R&D investment, and maintain a leading position in product R&D capabilities; Promote global transformation and make new breakthroughs in many overseas places; Implement the strategy of digital intelligence and low-carbonization, promote intelligent manufacturing and smart services, and promote green transformation; Improve the development, marketing and service capabilities of wind resources, and improve customer satisfaction in an all-round way.

1. Adhere to high-quality development, and the company's operation remains stable

During the reporting period, the company will adhere to high-quality development as a major business principle, and the overall quality of operation will maintain a high level.

Rapid growth in sales scale: the company achieved operating income of 5.280 billion yuan, a year-on-year increase of 34.88%;

Good sales collection: The cash received by the company from the sale of goods and the provision of labor services was 6.773 billion yuan, and the sales collection rate (current payment/current tax-included sales) exceeded 100%;

Leading fan profitability: the company's overall gross profit margin was 16.01%, an increase of 4.82 percentage points from the second half of last year, of which the gross profit margin of the fan business was 15.13%, an increase of 6.14 percentage points from the second half of last year, and the first half of the year has improved for two consecutive quarters, at the leading level in the industry

At the beginning of 2024, the company launched multi-department linkage and full participation to promote cost reduction and cost control, and strived to achieve significant cost reduction throughout the year through the application and implementation of cost reduction methods such as strategic alliances, resource locking, and R&D innovation. The company strictly implements the cost reduction and cost control management system, establishes cost reduction incentive policies, and carries out refined management of expenses, and has achieved good results.

Asset quality maintained a high level: the company's accounts receivable was 3.538 billion yuan, a decrease of 295 million yuan from the beginning of the year, due to the high quality of customers, the company's accounts receivable remained high, the company's asset-liability ratio was 64.19%, and the financial structure was stable.

2. Maintain a high level of R&D investment and maintain a leading position in product R&D capabilities

R&D and innovation is the first driving force for the company's development, and the company adheres to the concept of "everything comes from innovation", and investing in R&D is investing in the future. In the first half of the year, the company invested 373 million yuan in R&D, accounting for 7.07% of operating income, mainly invested in the testing, testing and certification of large-scale, overseas, offshore products and various types of products. The company attaches great importance to the selection and training of wind power talents, and carries out corresponding training plans for executives, management and core backbones. As of June 30, 2024, the company has 773 R&D personnel, accounting for 14.35% of the company's total headcount, including 376 people with a master's degree or above, accounting for 48.64% of R&D personnel. In the first half of the year, the company obtained 15 invention patents and 23 utility model patents, and a total of 219 invention patents and 607 utility model patents, and achieved a series of achievements in the fields of wind turbine equipment, core component penetration research and wind farm development. The main ones are as follows:

(1) Fan machine

The company continues to promote the development and optimization of large megawatt units, and the 8.5-11MW platform products have won the trust of customers and have obtained bulk orders. From May to June 2024, the company won the bid for the Inner Mongolia Energy Urat Zhongqi Project and the Inner Mongolia Energy Keshiketeng Banner Project, with a total of 150 units of 10 MW. During the reporting period, the 15MW onshore wind turbine has completed the technical development, basically completed the trial production of the unit, and simultaneously carried out the expansion and development of the common platform offshore model. The certification of offshore wind turbines is progressing in an orderly manner, and the SI-23085 prototype was connected to the grid in June 2023, and after testing and verification, it obtained the type approval certificate in May 2024.

(2) Core components

Continue to promote the R&D and design of two self-made parts, blades and generators, to improve the efficiency of design and application.

In terms of blades: based on its own software platform, it realizes high efficiency and low load of blade shape, strong adaptability and high reliability, comprehensively and continuously promotes the lightweight and reliable design of the main beam of pultrusion materials, achieves the overall coordination of pneumatics, structure and the whole machine, and realizes the optimal balance of power generation and LCOE.

In terms of generators: the application of aluminum winding and aluminum cable technology in batches, the use of excellent motor winding and silicon steel ratio, reasonable and efficient cooling and heat dissipation system, all types of generators have low loss, high efficiency, reasonable temperature rise, high reliability; For ultra-large megawatt motors, the overall height of the generator is reduced by optimizing the heat dissipation structure to solve the transportation problem of large megawatt doubly-fed units. The air-cooling scheme of the slip ring cooling system of the offshore doubly-fed motor was improved, the functions of air inlet filtration and toner collection at the air outlet were added, and a two-stage filtration system was adopted to meet the long-term operation and maintenance needs of the offshore.

(3) Wind farm development

The "UAV + AI" geomorphology recognition technology is used for micro site selection, and the efficiency is greatly improved. The three-dimensional circuit design platform is used to improve the consistency of line selection positioning and measured data, reduce the elevation error, and reduce the final survey time in the field. Independent research and development of the fourth-generation mixing tower technology system and mixing tower cavity infrastructure calculation software, relying on the digital intelligence construction platform, to achieve the efficient implementation and application of ultra-high mixing tower technology; The theory of ecological landscape wind farm was proposed, and the library of wind farm landscape design scheme was established to guide the ecological landscape planning and design of wind farms. Based on the online monitoring technology of collector line based on AI recognition technology, online monitoring and early warning of collector line can be realized.

3. Promote global transformation and make new breakthroughs in overseas markets

During the reporting period, the company actively promoted overseas business expansion and made significant progress.

New breakthroughs in the market: the company completed the hoisting power generation of the first India project, established benchmark performance, and was recognized by customers; The company has successfully won bids for a number of projects in India, Southeast Asia and the Middle East, achieved market breakthroughs in many countries, has a large installed capacity under negotiation, and is expected to achieve rapid growth in new overseas orders throughout the year; Actively promote and have completed the access of a number of major customers. The above work and progress have laid a solid foundation for the batch delivery of overseas orders and the rapid growth of overseas revenue in the following years.

Positive progress of greenfield projects: The company has successfully obtained the development rights of gigawatt-level greenfield projects in Central Asia, and is currently advancing the relevant procedures.

Orderly promotion of overseas layout: The company has established subsidiaries in Brazil, U.A.E., the Philippines, South Africa and other places to promote global business deployment and promotion; Accelerate the construction of overseas production capacity, promote the expansion of factories in India, prepare for the construction of factories in Kazakhstan, and strengthen overseas supply guarantee capabilities;

Overseas business capacity building: The company optimizes the overall process system of overseas business, and carries out the construction of systematic capabilities in R&D, sales, delivery, operation and maintenance; A group of international wind power talents have been introduced, the thickness of the overseas talent team has been enhanced, and the overall capacity of overseas business has been significantly improved.

4. Implement the strategy of digital intelligence and promote intelligent manufacturing and intelligent services

During the reporting period, the company further promoted intelligent manufacturing and intelligent operation in accordance with the development strategy of "digitization of all businesses, digitization of core business, and platformization of key systems".

Intelligent manufacturing:

The company is the fifth batch of "intelligent manufacturing benchmarking enterprises" recognized by the Ministry of Industry and Information Technology of the People's Republic of China, and has many intelligent factories in Beijing, Shaoshan, Chenzhou, Bayannur, Zhangjiakou, Tongyu, Tacheng, Hami and so on; Among them, the Beijing main engine factory is the industry's first 5G intelligent manufacturing factory, the Tongyu factory has been awarded the intelligent manufacturing demonstration factory by the Ministry of Industry and Information Technology, and the Shaoshan blade factory has created the industry's first blade intelligent manufacturing digital element platform. The company maintains an industry leader in the field of intelligent manufacturing.

The Chenzhou host intelligent manufacturing 2.0 production line has achieved stable production, realized the automatic production of yaw components and wheel hub components, greatly improved the production efficiency compared with the original production mode, greatly reduced the number of operators, in-depth management of the production process, and significantly improved the quality of key product assembly; The smart logistics system is fully connected through the 5G network, and the whole process from incoming material storage to sorting and distribution is systematically managed, and the warehousing and logistics efficiency and timely distribution rate are greatly improved.

Taking the Shaoshan blade base as a pilot, we will break through the blade post-processing automation and digital intelligent manufacturing operation technology, realize the application of cutting-edge technologies such as AI algorithms and digital twins in human efficiency management and quality management, and strive to build the first world-class intelligent manufacturing factory in the blade industry. Through the self-developed manufacturing operation platform with manufacturing operation management system (MOM) and equipment interconnection platform (IOT) as the core, it focuses on the digital control of the whole process of blade quality, realizes the automatic collection of blade quality data and early warning of mold parameters, establishes a knowledge base of quality problems, supports the digital quality control and traceability of the whole process of blade production, and comprehensively improves the quality of blades.

In terms of smart services:

According to the characteristics of the wind power industry, the company has comprehensively upgraded the intelligent wind measurement platform, intelligent operation and maintenance service platform, engineering management platform and wind and solar storage operation and maintenance platform, and achieved international expansion of multiple system software and promoted the transformation of a number of international orders. Based on AI algorithms, intelligent analysis of intelligent service forensics and abnormal early warning of transportation and logistics of large parts are realized, and the whole process from manufacturing to service is fully improved. Through the process optimization of smart wind farm product deployment at home and abroad, we will create a series of product regularization construction and operation and maintenance mode; It realizes real-time status monitoring of wind turbines and blade fault warning, and many indicators such as wind turbine fault early warning algorithms have reached the industry-leading level.

5. Implement the low-carbon strategy and promote green transformation

As an important member of the wind power field, the company takes promoting the green energy revolution as its own responsibility, has always been committed to improving the efficiency and reliability of wind turbines, and contributing to the "double carbon" goal and the green transformation of social and economic development with competitive wind turbine products. In the first half of 2024, the company will provide about 20.3 million MWh of wind turbine power generation, which is equivalent to reducing CO2 emissions by 11.5771 million tons.

The company focuses on the low-carbon transformation of production and operation, and actively promotes the research of low-carbon product design and recyclable technology. Through the training of suppliers' sustainable development capabilities, the company promotes supply chain enterprises to jointly carry out carbon asset management, and transmits emission reduction practices to the entire supply chain. At the same time, the company has launched a number of internationally recognized carbon information disclosure and carbon target submission work, such as environmental product certification, scientific carbon target initiative, carbon emission disclosure project, etc., to establish a "green" image of the company.

6. Improve the development, marketing and service capabilities of wind resources, and strive to improve customer satisfaction

In the first half of the year, the company set up a special team for new energy investment and development, greatly expanded the professional team, promoted the high-end equipment manufacturing industry to complement the advantages of local wind energy resources and market resources, and increased the acquisition of local wind resources and made positive progress. As of the end of the first half of the year, the company has a large scale of wind resources to be developed in hand, and the scale of self-built wind farms currently under construction exceeds 2GW.

The company adheres to customer first and is committed to exceeding customer expectations and improving customer satisfaction. In the first half of the year, the company carried out the "three-pronged action" of marketing and service, mobilized cadres at all levels to conduct field research and visit customers in wind farms, understand customer service needs, and improve customer service quality in an all-round way from orders, delivery to aftermarket operation and maintenance. At the same time, the company is guided by customer quality and promotes the quality and efficiency improvement of R&D quality, supplier quality, manufacturing quality, after-sales quality and system quality.

In the first half of the year, the company relied on sufficient orders in hand, and the external sales capacity of domestic onshore wind turbines was 3.3GW, a year-on-year increase of 121%, creating the best delivery performance in the same period in history. In terms of offshore wind turbines, based on good R&D reserves and progress, the company actively promotes market expansion and has made significant progress, and strives to achieve a breakthrough in offshore wind power as soon as possible in the second half of the year.

In addition, the company also disclosed the semi-annual evaluation report of the special action plan for improving quality, efficiency and return, and practiced the "investor-oriented" development concept of listed companies from the aspects of focusing on the main business, continuing to implement cash dividends, actively implementing share repurchases, strengthening investor communication, and building a solid foundation for governance.