China

China

Goldwind makes CNY 3 billion bond offering

CHINA: Goldwind is to issue CNY 3 billion yuan ($476 million) corporate bonds in Shenzhen Stock Exchange today.

This is the first phase of a total of CNY 5 billion bonds that the company's stockholders approved at its 2010 general meeting.

The capital raised will be used to supplement working capital of the company and its subordinates and repay CNY 800 million bank loans.

With the supplemented funds, Goldwind will have CNY 27.1 billion yuan working capital, compared with CNY 24.9 billion yuan on September 30, 2011.

According to Goldwind, this will to a certain extent alleviate cash flow pressure on the company and ensure smooth progress of production scheduling.

In the first three quarters of 2011, Goldwind had CNY 6.843 billion operational cash flow, down 261.48% year-on-year.

Goldwind is concerned that along with business expansion, its liabilities and financial costs might continue to expand.

According to Goldwind bulletin on 2011 performances, the company's operating profits fell 74% in 2011, compared with the previous year, to CNY 697.8 million.

It was attributed to slower growth in the Chinese wind-power industry, and falling turbine market sales prices in 2011.

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