Goldwind results indicate possible recovery

CHINA: Turbine manufacturer Goldwind has predicted a doubling in full-year profit, after revenues saw a healthy growth in the third quarter.

A Goldwind 2.5MW turbine

The July to September period yielded revenue that was 57% higher than a year before at CNY 3.9 billion ($637 million).

This helped to push the company into the black as net profit came in at CNY 95.2 million, compared with a loss of 33.5 million previously.

Goldwind said that this can be attributed to an increase in the company's revenues, along with stronger cost controls and implementation of "lean management".

Looking ahead to its full-year results, the company predicted a profit of up to CNY 459 million, a big improvement on last year's CNY 207 million.

Goldwind chairman Wu Gang said, "Despite the challenges in the current stage of China's wind power industry, the support from government remains undiminished, and the market conditions in China continue to improve.

"Both factors are playing important roles in accelerating the development of the wind power industry, including in its equipment-manufacturing sector."

As of 30 September, Goldwind had a total of 4.2GW of outstanding orders for turbines, including overseas orders of 151.8MW. The company had also won bids for projects totaling 3,625.50MW, for which contracts have not been signed.

The company's strong results compare starkly with those of compatriot Sinovel, also released this week. Sinovel's choice to expand its workforce and to move into foreign markets and offshore in a bid to counter a slump in its domestic market appears to have backfired when compared with Goldwind's cost-cutting measures.

Chinese suppliers have struggled in recent years due to a drop in installations in the country, which were 20% lower in 2012 than the year before. A further drop is expected for 2013.