Fan equipment leader's revenue approaches 30 billion yuan, reaching a new high, with a net profit margin of only 1.14%. Yunda Holdings enters the deep waters of transformation.

Ask AI · Yunda Co.’s net profit margin is only 1.14%—can its green fuels business kick off a second growth curve?

Source|Times Business Research Institute

Author|Chen Jiaxin

Editor|Han Xun

Driven by a wind power equipment “rush for installation” in the first half of 2025, revenue for wind turbine OEM companies has generally increased, but profitability has diverged sharply—this is the moment to test each company’s internal capabilities.

On the evening of March 23, Yunda Co. (300772.SZ), one of the leading wind turbine integrators, released an annual report showing revenue growth without profit growth. In 2025, the company achieved operating revenue of RMB 29.4B, up 32.45% year over year, reaching a historical high; however, net profit attributable to shareholders was only RMB 340 million, down 26.87% year over year, and its net profit margin was just 1.14%. By comparison, another wind turbine leader, Goldwind Science & Technology (002202.SZ), saw both revenue and net profit rise: revenue hit a new high while net profit attributable to shareholders increased 49.12% year over year to RMB 2.77B.

Behind Yunda’s revenue growth without profit growth are factors such as “zeroing out” revenue from its power plant transfer business with high gross margins, as well as the delayed impact of low-price competition in the industry in 2024. Yunda is betting on its “Two-Ocean Strategy” (offshore wind power + overseas markets) and its “green electricity fuels business.” Whether it can further transform from wind turbine manufacturing into a “diversified new energy services company,” and thereby prove its profitability and growth capabilities, will be key.

Revenue up, profits flat; the highest gross-margin business revenue turns to zero

Yunda’s core businesses cover multiple segments, including wind turbine equipment manufacturing, EPC general contracting for new energy projects, and power generation income. Among them, “new energy power station development and transfer” was once an important pillar of the company’s profitability. In 2025, revenue from this business came to zero, directly pulling down the overall profitability level.

According to the annual report and publicly available data, in 2024 Yunda’s “new energy power station development and transfer” business generated revenue of RMB 1.69B, making it the company’s second-largest revenue-generating segment, with a gross margin of 24.16%, significantly higher than the overall average level (9%).

Yunda has long adopted a “rolling development” model: after building power stations, it sells them at the right time to capture transfer gains while also holding some power stations to generate power generation revenue. In 2024, the power station transfer business contributed a substantial profit increase. But in 2025, the company did not sell power stations, and that revenue was directly reduced to zero.

In addition to the high gross-margin business turning to zero, double compression across upstream and downstream markets further intensified Yunda’s profitability challenges—this is also a challenge faced by most turbine OEM companies in the industry. In 2025, wind turbine OEM companies faced a “two-sided pressure” situation of falling selling prices and rising costs. On one side, driven by the impact of concentrated delivery of low-price orders in 2024, turbine selling prices remained at low levels. Some peer companies’ profit forecasts also confirm this trend—Electric Wind (688660.SH) and Sany Heavy Energy (688349.SH) both clearly mentioned in their 2025 performance forecasts that turbine product price cuts affected profitability.

On the other side, influenced by the wind power “rush for installation” in the first half of 2025, prices for wind power components rose, further raising production costs. Electric Wind and Sany Heavy Energy also mentioned in their 2025 performance forecasts the impact of rising component prices.

In 2025, Yunda’s overall gross margin was only 7.56%, continuing to decline from 9.00% in 2024 and 13.70% in 2023, as its profitability continued to weaken.

It is worth noting that improvements in the competitive environment in the industry may sow the seeds for a rebound in Yunda’s profitability. In October 2024, 12 major domestic wind turbine OEM companies signed the “China Wind Power Industry Self-Discipline Convention on Maintaining a Fair Competitive Environment,” focusing on issues such as malign low-price competition and unfair contract terms. In addition, national-level key meetings repeatedly emphasized preventing “involution”-style competition. Some project owners also actively adjusted tender rules, placing greater emphasis on turbine quality and reliability, thereby driving a rational rebound in turbine bidding and tender prices in 2025.

According to Bid-by-Bid Network data, from January to October 2025, the average onshore turbine winning bid price was RMB 1,618 per kW, up 6.86% year over year; the average onshore turbine (including tower sections) winning bid price was RMB 2,096 per kW, up 9.78%.

Yunda told the Times Business Research Institute that wind power bidding prices were lower in 2024; by the end of the year, major OEMs recognized that “involution-style” low prices are unfavorable for industry development. They reached a consensus and signed the self-discipline convention, which helped drive a rebound in 2025 bidding prices. However, the industry and the company’s future profitability trajectory still faces some uncertainties, such as upstream raw material price increases driven by inflation.

Although profitability levels may rebound, the sustainability of Yunda’s high revenue growth rate still has significant uncertainty. In 2025, Yunda’s newly added orders for wind power equipment were 24,600.27 MW, down 20.6% year over year. Although by the end of 2025 the company’s cumulative order backlog reached 45,475.84 MW and it still maintained a growth trajectory, the decline in newly added orders also suggests that the动力 for future revenue growth may weaken.

If, in the future, the industry’s tendering scale continues to remain sluggish and newly added orders cannot effectively recover, even if the backlog can support short-term revenue, in the long run Yunda’s ability to maintain high revenue growth rates may be difficult, and the pace of profitability rebound may also be affected.

Overseas revenue surges by 400%—can green fuels kick off a second growth curve?

Amid profit pressure, Yunda’s overseas business performance in 2025 became a major highlight. At the same time, the company proposed a “two-wheel drive” strategy, extending into the green fuels sector and trying to break out of its profit challenges through business diversification—starting a new transformation journey.

In 2025, Yunda’s overseas revenue reached RMB 1.47B, up 425.27% year over year, accounting for about 5% of total revenue. This growth rate not only far exceeded the company’s overall revenue growth rate, but also was well above the industry average. Data from the General Administration of Customs shows that in 2025, the export scale of China’s wind power generator sets grew only 32.5% year over year.

Regarding the surge in overseas revenue, Yunda told the Times Business Research Institute that, on the one hand, it was related to concentrated delivery of overseas projects in 2025; on the other hand, it was also affected by the low base in 2024.

The announcement shows that in 2024, Yunda’s overseas revenue was only RMB 279 million, accounting for just 1.26% of total revenue, with a low base.

Although Yunda’s overseas revenue in 2025 saw a surge, compared with some industry leading players, its overseas expansion still appears relatively slow. For comparison, in 2025 Goldwind’s overseas revenue reached RMB 18.08B, accounting for 24.76% of total revenue. Electric Wind’s overseas revenue share was also 11.41%, both far exceeding Yunda’s 5%.

From the perspective of the global market, Chinese wind power companies have already occupied eight of the top ten slots among global wind turbine manufacturers, and for the first time, they captured the top six. Companies such as EverSource (Envision Energy) and Goldwind have more mature overseas deployments. Yunda still has considerable room to improve its competitiveness in overseas markets.

Despite the rapid growth in overseas revenue, its profitability performance did not improve in step, which has become a weakness in developing its overseas business. In 2025, Yunda’s gross margin for overseas business was 6.22%, lower than the gross margin of 7.63% for its domestic business, and it did not show a profit advantage.

This may be closely related to the stage of overseas business development. Currently, Yunda’s overseas business is still mainly focused on turbine exports. Overseas markets have higher transportation and certification costs, and price competition in some emerging markets is also relatively intense, leading to lower gross margins. By contrast, leading players such as Goldwind typically carry out overseas business through an EPC turnkey contracting model, which has higher technical value-add and more favorable payment schedules. In 2025, Goldwind’s gross margin for overseas business reached 24.29% (up 10.45 percentage points year over year), far exceeding Yunda.

However, as an important component of Yunda’s “Two O ceans” strategy, the overseas market has a prominent strategic position. Yunda is expected to inject more resources into its overseas business going forward to support its sustained development.

As another pillar of the “Two-Oceans” strategy, the growth potential of offshore wind power far exceeds that of the overall market. The Global Wind Energy Council (GWEC) predicts that the wind energy industry’s future compound annual growth rate will be 8.8%; by 2029, the global offshore wind power compound annual growth rate will reach 28%. In 2033, it will exceed 50GW. At that time, offshore wind’s share of newly added wind power installations is expected to rise to around 25%.

Currently, offshore wind power remains a short board for Yunda. According to data from the Wind Energy Professional Committee of the China Renewable Energy Society, in 2025 Yunda’s newly added turbine installed capacity ranked second, just behind Goldwind. But Yunda’s new offshore wind installed capacity ranked only seventh in the market, with a market share of merely 1.8%.

Therefore, in its annual report, Yunda also proposes to devote substantial effort to the offshore wind power market going forward, focusing on Zhejiang and actively laying out coastal provincial markets, especially the deep-water offshore market, aiming to achieve an industry-leading ranking in offshore wind power.

In addition to pushing the “Two-Oceans” markets, Yunda is also actively extending downstream along the industrial chain to strengthen its green fuels business.

Yunda’s green fuels solution is essentially built around regions rich in wind and solar resources: converting green electricity on-site into green methanol and related green fuels to address the challenge of green electricity curtailment. In its results briefing, Yunda stated that this business model has gradually moved from early-stage exploration to industrialized rollout.

Yunda told the Times Business Research Institute that, up to now, very few companies in the industry have been solely focused on manufacturing as the new energy sector has developed. The company is also transitioning toward the “new energy +” direction—expanding from wind power equipment manufacturing into downstream areas such as energy utilization and conversion. The green fuels solution is one of its core strategic layouts. Green electricity-to-methanol is an important implementation form of this model. In essence, this model is also a kind of energy storage method that can effectively solve the problem of green electricity curtailment.

Yunda also mentioned in its annual report that as new energy curtailment scenarios continue to expand, in addition to cultivating new value growth space beyond new energy equipment manufacturing, the company may form a dual-wheel drive development pattern of “new energy equipment manufacturing + green fuels solution,” further enhancing its long-term growth potential and market recognition.

Key takeaway: Focus on the “Two-Oceans” strategy and the sustainability of storage-driven growth

Overall, in 2025 Yunda’s revenue nearly reached RMB 30 billion, a historical high, demonstrating the company’s leading position in the wind turbine integrator segment and reflecting the overall growth resilience of the wind power industry. However, the decline in profitability exposes a range of issues, including a relatively single revenue structure, pressure across upstream and downstream, and insufficient overseas profit contribution.

The rebound in wind turbine bidding prices in 2025 provides support for Yunda’s profitability recovery, and it is expected that in 2026 this could be transmitted to the performance results.

On the revenue side, the decline in new orders in 2025 brings uncertainty to subsequent revenue growth. The key question is whether Yunda can prove the growth sustainability of the storage business stemming from its downstream extension (green fuels), based on its “Two-Oceans” strategy—thereby fully unlocking room for growth.

(Full text: 3,120 words)

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