Goldwind sells 50% of developer subsidiary

CHINA: Goldwind has announced the sale of its 50% share in its wind developer subsidiary Shangdu Tianrun alongside plans to invest in a renewable energy fund.

Goldwind's 1.5MW direct drive turbine
Goldwind's 1.5MW direct drive turbine

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On 21 June Goldwind, announced that wholly owned subsidiary Beijing Tianrun plans to invest CNY 500 million ($78 million) in the Jida (Shanghai) Equity Investment Fund. The Jida Fund has total capital of CNY 5 billion and invests primarily in unlisted wind power projects.

Goldwind simultaneously announced Beijing Tianrun’s sale of its 50% stake in Shangdu Tianrun to China Three Gorges New Energy for a consideration of CNY127 million, while only a month previously announced the sale of its entire stake in wholly-owned subsidiary Tianhe Wind Power Blade to Sinomatech.

Analysts believe that these asset sales and the company’s investment in the Jida Fund are intended to shore up the company’s performance following a 97% YoY net profit decline in the first quarter.

Blade manufacturer sale

This is the second asset sale by Goldwind in recent weeks. Last month, Goldwind the company sold its wholly-owned blade manufacturer Tellhow Wind Power to Sinoma Science and Technology subsidiary Simomatech for CNY 215 million ($33 million). Goldwind said the sale would allow it to "reduce investment in production".

In April, Goldwind announced its Q1 profits fell 97% in the first quarter of this year, to CNY 6.2 million ($980,000).

The decline was attributed to falling turbine prices as a result of market competition amid continuous slowdown of the Chinese wind power industry, and increased management and financial expenses.

As a way to break out of the sluggish market, Ma Jinru, vice-president of Goldwind, said: "This year, we will give priority to sustaining R&D and technological innovation, and explore the overseas market so as to actively cope with changes in the wind power industry and wind power market."

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