The turbine manufacturer's post-tax profits were just 72.1 million yuan ($11.3 million) for the first six months of the year, on revenues that were down by 32.9% to 3.484 billion yuan ($548 million). This was largely due a change in government policy last year that slowed the commissioning of projects in China.
Goldwind also attributed the poor performance to ferocious market competition, which reduced the sale prices of wind turbines.
In the first six months, Goldwind earned 3.199 billion yuan ($503 million) from the sale of wind turbines and components, down 37.09% year on year.
Though the firm's operating costs dropped 29.9% year on year to the value of 2.834 billion yuan, the rate of decline was smaller than that of the gross revenues, and this led to a big fall in gross profits. In the first half of this year, the gross profits from sales of turbines and components stood at 11.4%, down 9.13% year on year.
Among them, the gross profits of 1.5MW turbines were 10.8%, down 7.8% year on year, on total sales that were down by 44.5% at 2.524 billion yuan. The gross profits of 2.5MW turbines amounted to 7.2%, up 13.6% year on year, on sales of 133 million yuan that were up 0.4% on H1 2011.
Goldwind estimates that in the first nine months of this year, its net profits will drop by 50% to 100% compared to last year. In the first nine months of 2011, Goldwind secured 615 million yuan net profits. Goldwind says the expected decline in performances is mainly caused by slower growth of the wind power industry, more violent market competition, and fall of wind turbine prices.