On October 13, Ming Yang Smart Energy Group Limited announced plans to construct the UK’s first fully integrated wind turbine manufacturing base in Scotland, with an estimated total investment of £1.5 billion, approximately 142.10 billion RMB.
The company stated that the project will involve the construction of manufacturing facilities for offshore and floating wind turbines, expected to be executed in three phases: manufacturing wind turbine nacelles and blades, scaling up floating wind technology production, and producing control systems, electronic devices, and other essential components.
Significantly, Ming Yang currently holds only 10.8 billion RMB in cash, and when including large time deposits and financial products, total liquidity remains under 17 billion RMB. Concurrently, the company’s interest-bearing liabilities have surged to 19 billion RMB, leading to a stark financial situation, particularly as the cost of financing has markedly risen, highlighting the risk of depleting resources for massive investments abroad.
Despite an increase in revenue in the first half of 2025, the company's net profit continues to decline, maintaining a downward trend since 2023. The annual capital expenditure remains consistently above 5 billion RMB, whereas operating cash flow has exhibited a continuous net outflow.
In September, Ming Yang announced an employee stock ownership plan, setting performance assessment goals amid a 45% year-on-year revenue growth but requiring only a 30% annual revenue growth rate. This low threshold for stock incentives aimed at a select number of mid-level and senior executives draws attention amid existing performance and financial pressures.
Overall, while the company seeks to tap into the vast potential of overseas markets, this investment is part of a wider effort to pursue internationalization. Nevertheless, the investment requires final approvals from various regulatory bodies and faces numerous risks, including complexities in international operations, prolonged construction timelines, substantial investment amounts, impacts on profit that cannot be precisely predicted, and exposure to political and policy risks in an increasingly geopolitical environment.
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