Wind Power Supply Chain Performance Diverges as 'Two Seas' Markets Become Decisive Factor

Listed companies across the wind power supply chain have recently disclosed their 2025 financial results, revealing an industry landscape defined by the coexistence of "revenue growth without profit growth" and structural divergence. In this performance test, the depth of a company's positioning in overseas markets and offshore wind — collectively known as the "Two Seas" — has emerged as the critical variable determining success or failure.

Turbine OEMs: Broad Revenue Growth, Polarized Profits

Over the past year, wind turbine OEMs generally posted revenue growth, buoyed by sustained domestic wind installation demand. However, against the backdrop of increasingly fierce price competition, profit performance has diverged markedly.

On one hand, leading manufacturers have leveraged technological advantages and economies of scale to maintain relatively stable profitability amid intense market competition. On the other hand, companies with narrow business structures and excessive reliance on the domestic onshore wind market face persistent gross margin pressure. The industry-wide strategy of trading price for volume has driven up shipment figures but continues to erode profit margins.

Core Component Suppliers: Broadly Strong Growth a Standout

In contrast to the profit divergence at the turbine OEM level, upstream core component suppliers have delivered more impressive results. Leading companies in sub-sectors such as gearboxes, wind turbine main shafts, and wind power foundation equipment have generally achieved strong growth.

Multiple factors are driving this trend. First, the accelerating shift toward larger wind turbines has fueled rapid demand growth for high-end core components, with suppliers capable of delivering large-megawatt-class products enjoying full order books. Second, the relatively high technology and capacity barriers in core components create a more favorable competitive landscape than the turbine assembly segment, giving leading players stronger pricing power. Additionally, the growing reliance of overseas wind markets on the Chinese supply chain has opened new growth avenues for component manufacturers.

'Two Seas' Strategy: The Decisive Factor in Performance Quality

A clear pattern has emerged from this round of results — companies with higher exposure to the "Two Seas" of overseas and offshore business have broadly outperformed those with narrower business structures. This trend is profoundly shaping the industry's strategic direction.

On the overseas front, the international competitiveness of Chinese wind power equipment continues to strengthen. Leveraging cost advantages, rapid technology iteration, and a well-established supply chain ecosystem, Chinese wind products are accelerating their penetration of emerging markets in Southeast Asia, the Middle East, Africa, and Latin America, while also achieving breakthroughs in mature markets such as Europe. Overseas orders typically carry higher gross margins, making them a key lever for improving profitability structures.

On the offshore wind front, China has entered a phase of large-scale development. With the approval and commencement of numerous offshore wind projects in coastal provinces including Guangdong, Shandong, Zhejiang, and Fujian, offshore wind installations are climbing rapidly. Offshore wind projects feature large individual scale, high technical thresholds, and relatively ample profit margins, providing differentiated competitive advantages to companies with relevant technical reserves and project experience.

Industry insiders note that positioning in the "Two Seas" has become a strategic consensus among wind power companies. Both turbine OEMs and component suppliers are intensifying overseas market development while actively securing positions in the offshore wind segment.

Industry Outlook: Structural Opportunities Continue to Deepen

Looking ahead, structural divergence within the wind power industry is expected to intensify further. As the domestic onshore wind market approaches saturation and competition reaches a fever pitch, the strategic value of the "Two Seas" markets will become even more pronounced.

From a policy perspective, national support for offshore wind continues to ramp up, with multiple coastal provinces designating offshore wind as a key development priority and deep-sea and far-shore wind technology pathways advancing at pace. From a market perspective, the global energy transition is accelerating, overseas wind markets offer vast potential, and the globalization of China's wind power supply chain is poised to gather further momentum.

For companies across the wind power supply chain, the ability to establish technology barriers, brand recognition, and channel advantages in the "Two Seas" markets will largely determine their future competitive positioning and profitability outlook. Those that have moved first to complete their "Two Seas" strategy stand to secure favorable positions in the next round of industry consolidation.