Is the Future of the New Energy Industry Already Here, or Is a Bubble Approaching?

The new energy industry is one of the most talked-about emerging sectors today. But is the new energy industry truly entering its golden age, or is it facing the risk of excessive speculation? This question was the focus of a roundtable discussion at the “2024 Go-Global of 100 Forum (GGF2024)”and "Emerging Industries Go-Global Forum."  held by EqualOcean on December 19th. The discussion delved deeply into this issue.

The distinguished panelists of the roundtable included: Ms. Fang Yan, Head of Overseas Strategic Investments at Das Solar(一道新能，方言); Ms. Jolene Shang, CMO of Rimsea(疆海科技); Mr. Song Ye, Managing Director of Glory Ventures (耀途资本，宋晔); and Ms. Wang Yan, Head of Singapore Operations at Trina Solar(天合光能，王燕). The roundtable was moderated by Mr. Sun Liangze (孙良泽), President of the EMBA Automotive Association at Shanghai Jiao Tong University.

The following is a transcript of the discussion (with some edits):

Moderator (Mr. Sun Liangze):
Thank you to EqualOcean for providing the opportunity to share and discuss this topic. Could each guest briefly introduce themselves?

Ms. Fang Yan:
I am Fang Yan, working in the Strategic Investment Department at Das Solar. I have a rich professional background, including experience in private equity investment in the globalization of the new energy and manufacturing industries, and participating in the globalization of listed companies in the consumer electronics sector. Currently, I am focused on Das Solar’s deepening practice in the globalization of manufacturing, with my doctoral research also dedicated to this topic. Over the past six to seven years, Das Solar has ranked among the top ten in global shipments, with N-type product shipments in the top three worldwide. Our business covers over 60 countries, continuously deepening international cooperation and expansion.

Ms. Jolene Shang:
I am Jolene Shang, the CMO of Rimsea Technology. With over ten years of experience in global market expansion, I have built a solid foundation in areas such as brand positioning, global PR strategy implementation, and integrated marketing communications. Rimsea Technology is focused on independent R&D and is committed to providing micro photovoltaic and energy storage systems for European households. This sector is commonly referred to as “balcony storage,” a sub-segment of the clean energy home storage industry. Thanks to innovative technology and market sensitivity, Rimsea has quickly broken through and achieved remarkable success in its target market within just two years. I am very glad to have the opportunity to share some of our market practices, experiences, and insights today, hoping they can inspire and assist everyone.

Mr. Song Ye:
I am Song Ye, Managing Director of Glory Ventures. I have been in the investment industry for over ten years, having worked at IDG and Alibaba’s investment departments. Glory Ventures is a fund specializing in early to mid-stage technology investments, focusing on four sectors: new energy, semiconductors, materials, and software. In the new energy sector, our investments are quite broad, covering photovoltaic, lithium batteries, and hydrogen energy. Specifically, we have invested in (1)companies in different photovoltaic cell technologies (TopCon, heterojunction, and perovskite), (2)companies with innovative technologies such as composite electrolytes, electroplated copper, and SOFCs, and(3)companies focusing on global markets such as those overseas photovoltaic cleaning robots and lithium battery recycling. I am very honored to be here with all of you today, discussing industry trends and development opportunities, and I hope this forum will spark more ideas and insights.

Ms. Wang Yan:
I am Wang Yan, the Head of Overseas Power Station in the Asia-Pacific region at Trina Solar. I am primarily responsible for the financing, mergers, and acquisitions of new energy power stations overseas, and I also serve as the head of the Singapore region. I will refrain from giving too much of an introduction about Trina Solar to avoid being too promotional. In fact, whether it’s in product innovation, power station services, or the global layout of smart grids and energy storage sectors, Trina Solar has consistently ranked among the top three in the industry, a position we are very proud of. I am very happy to be here today with all the guests and look forward to in-depth communications on the development and cooperation opportunities in the new energy industry.

Moderator (Mr. Sun Liangze):
Today's topic is "Go Global." Since 2023, "go global" has become a hot topic in various forums and discussions, covering in-depth discussions from different fields, industries, perspectives, and dimensions. For instance, at Shanghai Jiao Tong University, more than 20 sessions focused on this theme have already been held this year. Each guest has unique understanding and experience regarding "go global," which reflects the diversity and complexity of the strategy across industries. 2023 is widely seen as the "Year of Go-Global," while 2024 is expected to be the second year, being more mature and having deeper practices. As industry practitioners and explorers, I believe all of you have valuable insights into the direction, strategies, and experience of going global, and I look forward to your brilliant sharing.

Now, I would like to ask everyone to share their thoughts: From today's perspective, looking back and looking forward, what do you think will be the biggest challenges the new energy industry will face in the process of globalization?

Ms. Fang Yan:
As someone with both investment experience and hands-on experience in industry practices, I tend to analyze industry development trends from a macro to micro perspective. Our Strategic Investment Department has conducted a systematic analysis of the past 30 years of development in the photovoltaic industry, key benchmark companies, and their business models. On this basis, I will answer the question from three logical perspectives:

1. What has been the development process of the photovoltaic industry over the past 30 years?

2. What development trends will the photovoltaic industry present over the next decade?

3. What are the core challenges we face, based on historical lessons?

1. Development of the Photovoltaic Industry in the Past 30 Years

Looking back, the cost of photovoltaic power generation has decreased by 82% in the past 30 years. Since the 21st century, China has gradually risen to become the global leader in the photovoltaic industry. Among the top ten global photovoltaic module companies, eight or nine are from China. Moreover, China’s shipments in key areas like batteries and modules continue to rank first globally, with the new installation capacity also leading the world. Photovoltaic and energy storage have become one of China’s new export successes, demonstrating strong international competitiveness.

2. Development Trends of the Photovoltaic Industry in the Next Decade

According to forecasts, clean energy's share in renewable energy will increase from 16% to 27%. By 2030, photovoltaic power generation is expected to account for 20% of global electricity generation. The new installed capacity is expected to grow from 410GW in 2023 to 880GW, with an annual increase of about 550GW, making the market size considerable. Who will share this "big cake"? The answer is clear: both domestic and overseas markets.

Domestically, the industry is currently facing issues like disorderly competition, price wars, and overcapacity. The international market is already in the fourth economic downturn phase, where many third- and fourth-tier companies face elimination, while leading companies accelerate mergers and acquisitions, further concentrating the market.

Overseas, the growth momentum is particularly strong, with the overseas installed capacity expected to grow by more than 70% in 2024, with Europe and North America showing particularly strong performance. However, measures like the U.S. Section 201 tariffs and other policies suggest that the overseas market is using policy tools to restrict the development of China’s photovoltaic industry. Chinese manufacturers have already been massively expanding in Europe, North America, and Southeast Asia, facing dual challenges of "external threats and internal issues."

3. Core Challenges We Face, Based on Historical Lessons

Ultimately, the biggest challenge for the new energy industry today is the high level of uncertainty in the globalization process. Unlike the past century, when globalization was driven by demographic dividends and low-cost advantages, the current competition in globalization has entered a deeper phase. From my experience, the rapid development of Chinese companies often disrupts the local ecosystems of other countries, and such "disruption" inevitably leads to "counter-reactions," primarily in the form of policy barriers and market entry restrictions. Therefore, in the context of highly uncertain macro policies, Chinese companies need to seek certainty on a micro level to hedge against the risks brought by macro uncertainties. In other words, improving the chances of winning market competition while reducing the odds of operational risks will be a key issue for Chinese new energy companies as they globalize.

Moderator (Mr. Sun Liangze): Navigating overall trends through micro-level adjustments and efforts in a macro environment filled with uncertainties is undoubtedly a challenging endeavor. Reflecting on the past decades of globalization, Chinese enterprises have faced numerous ups and downs in their journey to expand overseas. Dr. Fang shared some profound insights and perspectives earlier. Jolene Shang, what is your take on this?

Ms. Jolene Shang: I fully agree with Dr. Fang’s analysis, especially from the perspective of practical business operations. These challenges resonate deeply with our experiences as a company rooted in the new energy sector. Let me share my thoughts from the perspective of a business, focusing on two key aspects: the external environment and internal capabilities.

From the external environment, policies and compliance are critical factors. As Dr. Fang pointed out, policy uncertainties are prevalent, particularly in niche segments. At Rimsea, we primarily serve end customers (C-end) with solutions delivered through B2C online channels, dealer networks, and offline stores, ultimately reaching individual users. Unlike consumer electronics, however, clean energy solutions must meet far more complex regulatory and certification requirements. In our industry, for example, different countries—and even regions within the same country—may impose varying standards and compliance requirements.

If the regulations are clear and the standards are well-defined, we can learn and adapt quickly. However, in reality, many countries are still in the process of refining their clean energy regulations, and local governments are continuously exploring and adjusting their policies. This means that companies must not only ensure compliance with current regulations but also anticipate and mitigate risks associated with future policy changes. This creates significant challenges for market expansion and is one of the most apparent obstacles we face.

From the internal capabilities perspective, businesses must possess the agility to adapt quickly to change. In markets characterized by shifting policies and inconsistent standards, large enterprises may mitigate risks through resource allocation and economies of scale. For most small and medium-sized enterprises (SMEs), however, their success in overseas markets relies heavily on their ability to learn quickly and adjust flexibly.

Taking the energy storage industry as an example, businesses must address not only product compliance issues but also challenges related to local warehousing, repair, and after-sales services. Due to the specific nature of energy storage products, especially batteries, not all regions have the infrastructure necessary for safe storage and maintenance. As a result, even as the supply chain matures, the lack of a robust support system in many regions continues to hinder market expansion. This necessitates a process of constant exploration and trial-and-error during the globalization journey.

To overcome these challenges, companies must continue to strengthen their internal capabilities. Rapid market expansion requires not only the support of external partners but also a well-established and refined internal framework. For example, enhancing team expertise, improving cross-cultural communication and compliance management, and accelerating supply chain responsiveness are all critical to ensuring stable operations in global markets. These are my thoughts from a business perspective.

Moderator (Mr. Sun Liangze): Thank you, Jolene Shang, for your insights. Your perspective, grounded in operational realities, elaborates on Dr. Fang’s macro hedging strategies and provides practical, actionable solutions. Next, I’d like to invite Ms. Wang to share her thoughts.

Ms. Wang Yan: Although we are among the top three players in the industry and have maintained stable performance in both this year’s and last year’s financial reports, we still feel the pressure and challenges of market development. The photovoltaic (PV) industry has recently experienced rapid capacity expansion coupled with sluggish demand growth, leading to supply-demand imbalances that are likely to persist in the future. Therefore, even as a leading company, we see both opportunities and challenges in our overseas expansion efforts, whether in the broader new energy sector or in the niche PV and energy storage markets.

From a macro perspective, it’s crucial to examine the fundamental drivers of globalization. At its core, globalization is a strategy to address domestic supply-demand imbalances. In China, demand growth is sluggish, and the market is limited, resulting in inefficient resource allocation. This has exacerbated internal competition, intensifying price wars. For instance, PV module prices have fallen to as low as 0.6–0.7 RMB per watt. Some even joke that PV panels are now cheaper than construction bricks, making them suitable for home renovations. Faced with this reality, expanding overseas has become a vital strategy to escape intense competition and explore incremental markets. By replicating China’s proven 1.0 models in regions with rapidly growing demand, we aim to achieve better market breakthroughs and optimize resource allocation.

From an operational perspective, however, challenges in overseas markets remain significant.

First, there’s the issue of localization and market acceptance. Entering overseas markets requires addressing localization and customer acceptance. This involves adapting to local cultures and market environments, building strong relationships with local governments, and ensuring clear policy support and market access conditions. We must constantly monitor changes in the target market’s policy environment and assess long-term sustainability to mitigate potential regulatory risks.

Second, the issue of product differentiation and competitiveness arises. In both domestic and overseas markets, single PV power plant projects no longer provide a core competitive edge. Differentiation is critical to establishing a foothold in the global market. For example, in Southeast Asia, the United States, and Latin America, PV projects often need to be integrated with energy storage, smart grids, or emerging technologies such as low-altitude economy solutions and artificial intelligence to create more attractive comprehensive solutions. Without showcasing these differentiated advantages, our competitiveness and market appeal could be significantly diminished.

Moderator (Mr. Sun Liangze): Thank you, Ms. Wang, for your detailed perspective on navigating challenges with concrete and differentiated strategies. Now, let’s hear from Mr. Song.

Mr. Song Ye: As a long-term advocate of value investing, I’d like to share my views from an investment perspective, using micro-level examples to discuss the differences in demand between overseas and domestic markets and the opportunities these differences present.

There are clear demand differences between overseas and domestic markets, which directly influence product design, specifications, performance, and market strategies.

Take the energy storage industry as an example. In China, energy storage demand primarily focuses on two areas: large-scale storage for centralized PV systems and commercial and industrial storage. In overseas markets, however, demand is more concentrated on residential storage and microgrid storage. These differences in application scenarios mean that product design and technological development must be tailored to meet the specific needs of each market. Without the ability to identify and adapt to these differences, businesses will struggle to succeed in global markets.

In the PV industry, natural conditions in different regions also shape market demand. For instance, the optimal angle for PV module installation depends on sunlight exposure to maximize solar radiation absorption and improve photovoltaic conversion efficiency. In high-latitude regions, PV panels are installed at steeper angles, allowing dust to slide off more easily due to gravity, which reduces maintenance costs. However, in low-latitude regions like India, panels are installed at shallower angles, making dust accumulation more likely and negatively impacting power generation efficiency. This creates a strong demand for PV cleaning robots, providing unique opportunities for related businesses.

As investors, we must adhere to the principles of value investing. While keeping an eye on macro trends, we should also delve deeply into the differences in micro-market demand and the opportunities created by environmental changes. This approach will drive industry innovation and support globalization efforts.

Moderator (Mr. Sun Liangze): In recent years, the development of cleaning robots in the photovoltaic sector has made significant progress, with some companies gaining a head start and creating numerous market opportunities. Ultimately, regardless of how macro strategies are planned, the final goal of market and sales efforts remains commercial monetization. In this process, execution is especially critical. Jolene Shang, we’ve learned that your team has achieved groundbreaking success in mature markets such as Germany and the United States. We are particularly interested in how you managed to break through the intense competition in these mature markets and carve out new opportunities.

Ms. Jolene Shang: First, let me briefly outline the market context we faced. Germany and the United States, as mature global markets, demand highly advanced solutions while exhibiting relatively low consumer loyalty to brands. We keenly identified unmet needs in the German market and promptly adjusted our product direction and marketing strategies. However, in the early stages of entering the German market, we did not conduct large-scale marketing or brand-building campaigns in advance.

So, how did we achieve our breakthrough? We completed preparations for market entry and promotion in less than two months. Those familiar with marketing know that such a short preparation cycle makes it nearly impossible to implement a comprehensive, 360-degree integrated marketing plan. As a result, we divided our overall strategy into two key areas: focusing on product differentiation and rapidly establishing market recognition.

We emphasized simplifying the technical aspects of our product to lower the barriers for users to understand its value, thereby attracting target audiences more quickly. In this process, we focused on two core elements:

1.  Highlighting the alignment of product value with local market needs. When promoting our products, we leveraged not only technological advantages but also emphasized the tangible benefits they bring to users in real-world applications. These benefit points had to align closely with the specific needs of the local market. It’s worth noting that while consumer purchasing motivations may share similarities across regions, the factors driving purchase decisions differ significantly. Therefore, we tailored our approach to these differences for faster market penetration.

2.  Building emotional resonance through brand values. We sell more than just products; we deliver a brand value proposition. Customers willing to invest heavily in early-stage solutions tend to be responsible, environmentally conscious individuals who care about green energy. In shaping our brand, we continuously emphasized value alignment to enhance brand appeal and user identification.

To quickly build trust in the market, we integrated local resources, leveraged endorsements from authoritative institutions and industry media, and actively participated in core local marketing events to boost brand exposure and influence. Simultaneously, we maintained a user-centric approach, ensuring that our products and services could respond swiftly to customer feedback through multi-channel communication. For instance, we engaged in one-on-one interactions with key users to understand their experiences and needs, incorporating these insights into product optimization and service enhancements. These strategies not only helped us overcome barriers in mature markets but also established a foundation of trust with users, paving the way for sustainable brand growth overseas.

One example of our approach in the European market may provide valuable insights. In Germany, we partnered with the Berlin city government to participate in a Christmas market event, using our clean energy products to light up the Christmas tree. This initiative was significant not only in showcasing our technology but also in conveying a message from a branding perspective: clean energy is not just a symbol of high-tech innovation but also something accessible and integrated into everyday life.

Another example lies in lowering the cognitive barriers for users. We realized that market awareness of clean energy products often comes with a certain level of technical complexity, particularly in hardware, where product parameters face intense commoditization. Therefore, in our communication strategies and product packaging, we focused on emphasizing the real-world benefits our products deliver to users. Through phased campaigns, we highlighted the core functionality of our products while consistently reinforcing the value users could gain through intelligent experiences post-purchase.

The essence of this strategy is to clearly articulate product advantages, enabling users to understand and accept them intuitively, especially for products with inherent technical thresholds. By adopting straightforward, easily digestible communication, we aim to help more consumers overcome these barriers and genuinely appreciate the convenience and benefits brought by intelligent products.

Moderator (Mr. Sun Liangze): During your sharing, we noticed that many of the strategies you mentioned are closely related to localization. Clearly, localization has played a vital role in your success, particularly in leveraging support from local market personnel and technical teams. These resources are undoubtedly crucial. I believe this is also a common challenge for other guests present here. When expanding overseas, localization remains a significant hurdle. Could you please share the general strategies and directions Das Solar has adopted in its localization efforts overseas? During this process, were there any notable difficulties or challenges?

Ms. Fang Yan: Localization indeed posed many challenges for us. Let me first briefly introduce the historical background of our company before discussing how we overcame these localization challenges and achieved success. Yida New Energy was founded during a time of crisis, particularly after the "531 Policy" was introduced in 2018. The entire industry faced pressure from subsidy cuts, followed by three years of a global pandemic. Despite these challenges, we managed to double our revenue annually and, in six years, expanded our business to a global scale exceeding RMB 20 billion, with our workforce growing steadily to over 7,000 employees. Starting from scratch in the overseas market, we obtained Tier 1 certification, achieved Bankability Level A, and established a presence in more than 60 countries worldwide. Surviving through these crises allowed us to accumulate some unique strategies and methods.

From a strategic perspective, our success is rooted in our ability to balance macro and micro factors precisely. First, we deeply studied the development trajectory of the photovoltaic (PV) industry and found it to be an attractive yet cyclical industry. By analyzing its cyclical fluctuations, we could identify patterns and adopt corresponding countermeasures. The PV industry has experienced four cycles, each involving issues such as overcapacity, price wars, profit margin fluctuations, and supply chain disruptions. Yet, each cycle has also been followed by significant growth opportunities. Currently, we are in the fourth cycle, where turbulence stems from oversupply on the supply side, whereas the first three cycles were driven by demand-side fluctuations. To address these fluctuations, our company excels at mitigating macro risks through micro-level adjustments.

In localization efforts, we focus heavily on managing uncertainties in macro policies. To tackle this challenge, we prioritize local recruitment, build localized teams, and rely on employees with local expertise to offset macro risks. Each country operates under its unique strategy, so a one-size-fits-all approach is not feasible. Instead, we tailor strategies based on the specific characteristics of each country, and our strategic reports are written separately for each nation. These micro-level actions enable us to effectively hedge macro risks.

Additionally, we strengthen our team by recruiting local talent, particularly individuals who can accelerate team evolution. Investments and resources tend to follow such certainties, helping us gain greater support in local markets.

If business owners or leaders persist in advancing overseas strategies with rigid, unchanging logic, such efforts are unlikely to succeed. The reality is that every country we enter is subject to highly dynamic changes. Therefore, the true test of an enterprise's ability to expand globally lies in its speed to adapt to these dynamic changes—its evolutionary capacity. Enterprises must rapidly adjust their strategies and execute them effectively in response to market changes. Over-reliance on past experiences can lead to rigid thinking. Without dynamically adjusting approaches, this rigidity can result in failure when expanding internationally. Conversely, we must consider whether further expansion into the U.S. market is viable or whether leveraging the Middle East's favorable relations with the U.S. might allow us to establish a foothold in the Middle East first.

When planning overseas strategies, we should not focus solely on short-term layouts but rather adopt a more long-term, systematic perspective. For example, which countries should be targeted for market entry in the first to third years? From the third to the tenth year, how can a country's micro-level layout be used to hedge macro risks? It is this strategic approach that has allowed Yida to survive past crises and successfully rank among the top eight in the industry. Furthermore, we consistently implement our strategies based on the principles of "timing, geographical advantage, and human harmony" while ensuring they are grounded in actionable execution.

This methodology is equally applicable to fund management. As emphasized in The Most Important Thing by Howard Marks, successful investments are not about blindly chasing hot trends but about building the right portfolio composition to ensure health and sustainability.

Moderator (Mr. Sun Liangze): The market does not adhere to fixed models or methods. The only effective strategy is to continuously adapt to market dynamics and find the path that best suits one's development. However, a significant distinction lies in collaboration with governments. Compared to China's highly integrated political system, overseas markets often face more complex and volatile policy environments. Hence, establishing partnerships with foreign governments becomes a critical focus in the process of international expansion. In this regard, we are aware that Trina Solar (天合光能) has cooperated with the government in Singapore on several energy storage projects. Such collaborations often require balancing policy orientation with practical execution. Particularly when dealing with foreign governments, this process requires both skill and art. Next, we would like to invite Ms. Wang to share her insights and experiences in working with governments.

Ms. Wang Yan: In fact, whether in the photovoltaic (PV) industry or other renewable energy sectors, the primary challenge companies face during international expansion is often not consumers but the local government. Frankly speaking, the core business of the renewable energy industry mainly lies in the B2B sector. Therefore, before entering a particular national market, we must first assess the local investment environment. This process requires a comprehensive analysis and evaluation of the target market's government policies, energy development plans, financing conditions, tax incentives, and subsidy support. Only after thorough evaluation can we decide whether to enter a market and determine the regional strategy and layout for expansion.

I am currently in charge of financing and mergers and acquisitions (M&A) for new energy PV power plants in Singapore and Southeast Asia. Whether it's arranging financing on the funding side or identifying M&A targets, I frequently interact with governments across Southeast Asia. Even within the same region, there are significant differences in the cooperation models and working styles of various governments. Therefore, when advancing overseas business, we must develop tailored collaboration strategies for each country's policy environment and administrative practices to ensure project success and long-term development.

Moderator (Mr. Sun Liangze): The renewable energy sector, particularly the PV and energy storage industries, is inherently capital-intensive and requires substantial financial support. Today, we are honored to have Mr. Song, who has more than a decade of experience in the investment field, with us. Among our guests, there may be both early-stage startups and rapidly growing companies. A common challenge they face when dealing with the capital market is this: how can they attract the attention and recognition of investment institutions? Mr. Song, could you please share your investment insights and key considerations when selecting and conducting in-depth analyses of companies?

Mr. Song Ye: The question is concise, but the difficulty is high. I am often invited to share my experience in screening investment targets at institutions like Antai College of Economics and Management and SAIF. These sessions usually take two hours. Given the limited time today, I will try to keep my points brief and hope to offer some inspiration.

In my view, the essence of investment is asset allocation, which requires finding a balance between probability and returns. I categorize companies in the renewable energy sector based on their development stages and the maturity of their respective technologies into three main types:

1. Companies with mature businesses and technologies:
These companies have established businesses and technologies, falling into the later-stage PE investment category. For such investments, market and financial analyses are critical. Investors need to build financial models and analyze indicators such as revenue growth, gross margins, and price-to-earnings (PE) ratios. Many large PE institutions favor this type of investment because, although the return multiples may not be very high, the risks are relatively low, and the returns are highly predictable. Simply put, this type of investment is characterized by low risk and limited returns.

2. Companies with technological breakthroughs and businesses on the verge of growth:
These companies are at a tipping point in their business, making them early-stage VC investments. For such investments, it is crucial to determine whether the business has reached a turning point. Investors need extensive networks and deep industry insights to understand upstream and downstream dynamics. For example, has the company's product been validated by downstream customers? Has it secured small-batch orders from downstream clients? If these key milestones are verified, it indicates the business is at an inflection point, making it the optimal time for investment. This type of investment typically offers high returns with controlled risks.

3. Companies still in the technology validation phase with unclear commercialization paths:
These companies are exploring technologies, and their commercialization routes are not yet clear. However, if a technological breakthrough occurs, it can bring about industry-level changes, making them early-stage VC investments. Investors need to rely on advanced industry knowledge and judgment. This often involves discussions with university professors and seasoned industry experts to assess technological trends and predict future development potential. This type of investment is characterized by high risk and high returns.

In the context of international expansion, if going global can become a new growth curve for a company, such businesses are highly worthy of investment. Cross-border operations not only provide new market space but also help enterprises mitigate cyclical risks in the domestic market. Therefore, we pay particular attention to companies that excel in overseas markets.

Ultimately, investment must return to the principle of asset allocation. I typically allocate my investments as follows:

20%-30% in companies with mature businesses and technologies.

50%-60% in companies with technological breakthroughs and businesses on the verge of growth.

20% in companies still in the technology validation phase with unclear commercialization paths.

By following this allocation strategy, we can manage overall risks while ensuring the portfolio delivers sufficient return multiples. This is the core logic behind our approach to screening and allocating investments in the renewable energy sector.

Moderator (Mr. Sun Liangze): Time flies. When it comes to the topic of overseas expansion in the new energy sector, we could discuss it for days without exhausting its depth. As we step into 2024, I’d like to invite each of you to provide a brief summary of your company’s overseas expansion, market strategy, and overall performance in the new energy field.

Ms. Fang Yan: Drawing from my experience transitioning from an investor to the industrial sector, I believe the keyword for 2024 is "evolution." Reflecting on 2023, China’s photovoltaic (PV) industry has not always held a global leading position. In fact, it was only after the 21st century, through leveraging low labor costs and incremental technological innovation, that China gradually established dominance in the PV sector. In 2024, companies must learn to evolve. During international expansion, Chinese enterprises often disrupt local ecosystems to some extent. When such disruptions provoke market resistance, companies and their teams must quickly adapt and respond. This involves not only localization and brand-building capabilities but also the cultivation of differentiated competitive advantages. For the new generation of overseas ventures, the key lesson lies in fostering differentiation on the supply side through evolution, rather than falling into price wars and homogeneous competition. This will be a critical direction for PV companies’ global expansion and a pivotal strategy for addressing global market challenges.

Ms. Jolene Shang: I believe the keyword for 2024 is "resilience." While it seems that Chinese brands have been expanding globally for decades, building a brand that earns respect and trust worldwide remains a challenging journey. From the perspectives of investors, brand owners, and the entire supply chain, perseverance is essential. As someone dedicated to promoting Chinese brands abroad, I deeply understand the heavy responsibility and long road ahead. Therefore, we must cherish our opportunities, stay true to our mission, and press forward with determination to collectively elevate Chinese brands on the global stage.

Ms. Wang Yan: My keyword is "harvest." For our overseas power station business, 2024 marks a year of fruition and achievement. As one of the industry’s top three companies, we began expanding into overseas markets a decade ago, primarily focusing on Europe, Latin America, and the United States. However, the Singapore and Southeast Asia markets, which I oversee, were only planned and launched last year. Despite the complexities posed by unclear policies, energy demands, and supply-demand relationships in various Southeast Asian countries, we successfully navigated these challenges through in-depth market research and the development of overseas teams. As a result, we have achieved investments and developments totaling 1 GW of power station capacity, with some projects currently in the financing phase. 2024 will be a pivotal year for our growth, transforming from "zero to one" and "nothing to something." Looking ahead, we aim to build upon this foundation and achieve even greater breakthroughs.

Mr. Song Ye: Over the past year, many people have asked me if I remain optimistic about primary market investments. Admittedly, the market is facing numerous challenges: fundraising is constrained, capital access has become more difficult, and export channels like IPOs have tightened. However, my answer is "steadfastness and optimism," which is also my keyword for 2024. From a long-term perspective, the market outlook remains promising. Unlike secondary markets, primary market investments emphasize value investing and patient capital. While secondary markets may favor short-term maneuvers, the primary market demands a focus on long-term development and intrinsic value. I believe 2024 will bring more opportunities for institutions committed to value investing:

1. Market bubbles are shrinking, and valuation systems are becoming more reasonable.

2. Investment decisions are now afforded more time for observation and evaluation.

In the past, market trends compressed decision-making cycles, but now we can more thoroughly analyze companies’ growth potential and team capabilities to make better-informed investment decisions. The market operates in cycles; entering during a downturn allows one to reap substantial returns during recovery. Therefore, I firmly believe that amidst current challenges, we must remain steadfast and optimistic, seizing opportunities presented by market cycles.