Market Competitiveness Analysis of Delijia's Wind Power Gearbox Business

Delijia Transmission Technology (Jiangsu) Co., Ltd. has established a

market position in the wind power gearbox sector. According to QY Research statistics, Delijia’s global wind power gearbox market share was 12.77% in 2023, ranking third globally; its China market share was 20.68%, ranking second domestically [1][2].

From the perspective of the global competitive landscape, the 2023 market share ranking of wind power gearbox manufacturers is: NGC (34.96%), Winergy (14.40%), Delijia (12.77%), and ZF (10.32%). Notably, for two consecutive years from 2022 to 2023, the top four global market shares were dominated by NGC, Winergy, ZF, and Delijia, with the industry’s CR4 reaching 72%-79%, showing a highly concentrated oligopolistic competitive landscape [1][3].

As of the signing date of the prospectus, the company holds 59 authorized patents, including 23 invention patents, forming a relatively complete intellectual property protection system [1].

The company has R&D and production capabilities for a full range of products from 1.5MW to 22MW, with product lines covering:

• 8.5MW large doubly-fed gearbox
• Main shaft gearbox integrated transmission chain
• Offshore 8.5MW fully integrated semi-direct drive gearbox
• 13-15MW platform gearbox

The company has established good cooperative relationships with leading wind turbine manufacturers such as Goldwind Technology, Envision Energy, Mingyang Smart Energy, and Sany Heavy Energy, and has been awarded honors like “Best Supplier”, “Best Delivery Partner”, and “Strategic Partner” by customers multiple times. In 2024, the company’s wind power gearbox sales reached 15,719.06MW, a year-on-year increase of 6.01%, and the production-sales ratio remained at a high level of 94.79% [1][2].

From 2021 to 2023 and the first half of 2024, Delijia’s operating revenues were RMB 1.759 billion, RMB 3.116 billion, RMB 4.442 billion, and RMB 1.373 billion respectively, showing an overall growth trend [1].

The gross profit margin of the main business remained relatively stable, at 24.67% in 2024, mainly due to the company’s continuous promotion of the “cost reduction and efficiency improvement” strategy, which had a good effect on cost control [1].

It is worth noting that the capacity utilization rate dropped to 83.59% in the first half of 2024, a significant decrease from 94.10% in 2023, which may be related to fluctuations in market demand and intensified competition [2].

From 2021 to 2023 and the first half of 2024, Delijia’s R&D expense ratios were 1.66%, 1.40%, 2.70%, and 3.72% respectively, significantly lower than the average level of listed companies in the industry during the same period (4.59%, 4.84%, 5.33%, and 5.95%). The relative insufficiency of R&D investment may affect the company’s long-term technical competitiveness and product iteration capabilities [2].

Compared with the industry leader NGC (whose wind power gear transmission equipment business revenue was RMB 14.993 billion in 2024), Delijia still has a large gap in operational scale. Its relatively concentrated business layout and late establishment make the company relatively weak in terms of capital strength and market influence [1][3].

During the reporting period, the company’s related-party sales accounted for a relatively high proportion. The major customer Sany Heavy Energy is both a shareholder and a major customer of the company. Although the company plans to reduce the proportion of related-party sales by enriching its customer structure, this reflects the risk of customer concentration to a certain extent [2].

The wind power gearbox industry has high entry barriers:

• Technical Barrier
  : High technical content of products, requiring high-precision manufacturing and reliability assurance
• Capital Barrier
  : Large fixed asset expenditures, requiring large-scale precision processing equipment
• Verification Barrier
  : It takes 2-3 years of verification to enter the qualified supplier list of wind turbine manufacturers

From the perspective of market prospects, the global market size of main gearboxes for wind power was approximately USD 5.688 billion in 2023, and it is expected to reach USD 8.826 billion by 2030, with a compound annual growth rate (CAGR) of 5.40% from 2024 to 2030. The Chinese market size of main gearboxes for wind power is expected to grow from USD 3.136 billion in 2023 to USD 4.263 billion by 2030 [1][2].

Delijia has established strong market competitiveness in the wind power gearbox sector, ranking third globally and second domestically, and its products are recognized by mainstream wind turbine manufacturers. However, the company faces challenges such as insufficient R&D investment, scale gaps, and reliance on related-party transactions. Considering the highly concentrated competitive landscape and high entry barriers in the wind power gearbox industry, Delijia is expected to consolidate its market position through technical accumulation and customer resources, but it needs to continuously increase R&D investment, expand production capacity, and optimize its customer structure to cope with increasingly fierce market competition.

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[1] TF Securities Research Report - Weili Transmission (300904) Initial Coverage Report (https://pdf.dfcfw.com/pdf/H3_AP202506301700366421_1.pdf)

[2] China Business Journal - R&D Expense Ratio Below Industry Average: “Wind Power Gearbox Giant” Delijia Sprints for IPO (http://dianzibao.cb.com.cn/images/2025-01/20/16/2588B12C.pdf)

[3] Great Wall Securities Industry In-depth Report (http://www.cgws.com/cczq/ggdt/ccyj/202504/P020250407316245660991.pdf)

[4] Delijia Transmission Technology (Jiangsu) Co., Ltd. Prospectus (Pre-listing Draft) (https://static.sse.com.cn/stock/disclosure/announcement/c/202507/002061_20250724_OR2S.pdf)