Taisheng Wind Energy: Response to the Wind Energy Catch-Up Plan and Fund Allocation Issues

Investor Questions:

Hello, Secretary of the Board! I have two questions: First, your company is currently one of the wind energy listed companies with the lowest market value, output, and profit, especially far behind the giants. Do you have any plans, strategies, or goals to catch up in the wind energy sector? How long will it take to reach them?
Second, with 1.4 billion yuan in cash from the third quarter report, an announcement on December 16th about investing 1 billion yuan in financial products, and the 1.1 billion yuan additional capital increase to the controlling shareholder on December 30th, are you planning to use this money for capital-preserving investments? Or are you aiming for long-term growth by seeking acquisition targets?

Secretary of the Board’s Response (Taisheng Wind Energy SZ300129):

On one hand, the company focuses on its core wind power business, actively seizing the ‘dual carbon’ opportunities by continuously strengthening its core competitiveness through technological innovation, market optimization, and lean management, steadily improving operational quality; on the other hand, the company is actively promoting the development of emerging businesses, aiming to achieve breakthroughs in technology, qualifications, and projects to create a second growth curve. Regarding capital planning and usage, the company has clear and prudent plans for working capital, including raised funds, prioritizing liquidity needs for the wind power main business and emerging business cultivation, such as raw material procurement, salary payments, market expansion, and R&D. After ensuring sufficient funds for these strategic and operational needs, to improve capital efficiency and maximize shareholder interests, the company will manage temporarily idle funds through cash management, purchasing high-security, highly liquid low-risk financial products or engaging in cash management to preserve and increase the value of funds. Thank you for your attention.

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Disclaimer: This information is excerpted by Sina Finance from public sources and does not constitute any investment advice; Sina Finance does not guarantee the accuracy of the data, and the content is for reference only.