Qingdao Tianneng Heavy Industries Co., Ltd.

Qingdao Tianneng Heavy Industries Co., Ltd. is a manufacturing company listed on the ChiNext board of the Shenzhen Stock Exchange since 2016. The company specializes in the production of wind turbine towers and monopiles, which are essential components in the wind power generation sector. Additionally, it engages in the new energy power generation business, focusing on the operation of wind farms and photovoltaic power stations that convert wind and solar energy into electrical energy for the power grid. The company's primary business lines include the research, development, production, and sales of onshore and offshore wind turbine towers, offshore photovoltaic brackets, and related equipment. With a total of 13 production bases across China, Qingdao Tianneng has established itself as a leading player in the domestic wind power tower cylinder industry, known for its high-quality products and strong service capabilities. The company emphasizes technological innovation, holding numerous patents and maintaining a professional R&D team to enhance its competitive edge in the market.

(1) Advantages in Production Capacity and Scale The company is one of the leading enterprises in the domestic wind power tower cylinder industry. Since its establishment, it has been specialized in the research, development, production, and sales of onshore and offshore wind turbine towers and monopiles. With its excellent product quality and high-quality services, it has established a good reputation in the industry. Its production and sales scale have been expanding year by year, and its product sales volume has ranked among the top in the industry for many consecutive years. When customers select suppliers of wind turbine towers and monopiles, they tend to choose manufacturers with stable quality, large production scale, strong supply guarantee and delivery capabilities, and stable performance. The company has always maintained strong competitiveness in the industry. As of the end of the reporting period, the company has a total of 13 wind turbine tower production bases across the country, with a combined production capacity of approximately 833,500 tons, basically covering domestic wind power bases, which is at a leading level among companies in the same industry. Given the special operation mode of the industry, transportation costs account for a relatively high proportion of the company's product costs. At the same time, the successive start of construction of large base projects has put forward higher requirements for the supply guarantee and delivery capabilities of wind turbine tower manufacturing enterprises. This layout that is closer to the market can effectively reduce costs, improve the efficiency of supply guarantee and delivery, enhance sales and after-sales service capabilities, strengthen the cooperation stickiness between the company and customers, and lay a good foundation for performance growth. (2) Core Technology Research and Development As an enterprise that entered the field of producing tower cylinders and monopiles in the wind power industry relatively early, the company has a professional technical research and development team. The core technical personnel all have many years of industry research and development experience. They have always maintained close technical communication with mainstream design units, understand and master the cutting-edge trends in the development of wind power equipment. While deeply cultivating the traditional wind turbine tower cylinder field, the company has increased its efforts to introduce professional research and development talents in the fields of offshore wind power jacket structures and floating foundation products, and further carried out technical innovation and reserve work. As of the end of the reporting period, the company owns 142 invention and utility model patents, including 15 invention patents. In particular, it has strong advantages in aspects such as the control of the flatness and inward inclination of flanges, the welding of double-sided grooves and thicker plates, the automatic rust removal of the inner and outer walls, the automatic spraying technology of the inner and outer walls of the paint, and the manufacturing technology of hybrid tower segments and segmented steel tower cylinders. (3) Stable Product Quality As the supporting equipment of wind turbines, once there are quality problems with wind turbine towers, it will have a significant adverse impact on the operation of wind power generation equipment and wind farms. In its long-term standardized operation, the company has accumulated rich experience in quality management and formed a quality management system with the unique characteristics of the company. The company holds a manufacturing license for low and medium-pressure pressure vessels (D), has obtained international welding certifications such as EN1090 and ISO3834, and the API certification of the American Petroleum Institute, which adds weight to the expansion of overseas export business. It has also passed certifications such as the Electric Energy PCCC Product Certification, ISO9001 Quality Management System Certification, ISO14001 Environmental Management System and ISO45001 Occupational Health and Safety Management System Certification, and the Super Grade Qualification Certification for Steel Structures. The product production is strictly carried out in accordance with European standards, American Petroleum Institute standards, national standards, and design technical specifications. The company has always attached great importance to product quality control. In view of the industry characteristics and its own production situation, it has formulated a product quality control system that meets its own conditions and customer requirements, strictly implemented it and continuously improved it to ensure that the produced products meet the strict quality requirements of customers and strive to exceed customer expectations. The product quality of our company has been widely recognized by customers. (4) Advantages of State-owned Assets Management As a state-owned holding enterprise, the company has excellent lean management genes. Through the implementation of the talent strategy, the company has a management talent team that is capable, responsible, and has a strong work style. Focusing on the main theme of high-quality development, aiming at the "microcirculation" of management processes, taking the refinement of functions as the foothold for management improvement, and taking the separation of operation and management and performance assessment as the starting points, through measures such as streamlining the organization, centralizing management, specializing the division of labor, and standardizing the processes, the company has achieved cost reduction and efficiency improvement in its business operations. At the same time, in the face of the complex and changeable market environment, the company particularly focuses on strengthening the management work of business risk assessment and monitoring, providing a solid guarantee for the steady development of the enterprise and its efforts to climb to new heights. The investment of state-owned assets has further enhanced the company's credit rating and financing capabilities, and at the same time improved the company's risk resistance ability, and the asset-liability structure has been continuously optimized. (5) Synergy in Industrial Layout During the reporting period, the company continued to promote the expansion of the industrial chain. As of the end of the reporting period, the company self-operated approximately 563.3MW of wind power stations and 118MW of photovoltaic power stations. The new energy power generation business has become a stable source of revenue and profit for the company. Through the expansion of the industrial chain, the company combines the manufacturing of wind turbine towers with the development and utilization of wind and solar resources, realizes the integration of industrial chain resources, and thus forms a virtuous development trend of coordinated linkage. (6) Accumulation of Customer Reputation The company attaches great importance to brand building and adheres to the implementation of the brand's core value concept of "customer first, integrity management, innovation and efficiency, and mutual benefit and win-win results". "Completing every order with high quality and efficiency and serving every customer perfectly" is the work execution concept that the company has always adhered to. Through years of unremitting efforts, the "Tianneng Heavy Industry" brand created by the company has a high reputation and good reputation in the industry with its excellent quality reputation and high-quality after-sales service. It maintains good cooperative relationships with domestic large-scale wind power operators and wind turbine host manufacturers, and the market share of the company's products in the domestic market has always been in a leading position.