Robust Chinese market demand sees Goldwind profits up 277% on last year

CHINA: Goldwind results for the first half of 2015 show net profits of CNY 1.25 billion ($195 million) in the first half of 2015, up 276.62% on the previous year, the company reported.

Popular model: Sales of Goldwind's 1.5MW turbines were up 121% year on year
Popular model: Sales of Goldwind's 1.5MW turbines were up 121% year on year

Total operational revenues of the leading Chinese turbine manufacturer increased 110.9% year on year to CNY 9.43 billion, the listed company said in the stock market disclosure report on Friday. Goldwind not only makes turbines, but also develops wind projects and provides operational services.

The firm attributed the growth to steady development of the wind sector in its home market, with developers showing clear intentions as they chase the 31 December deadline to complete projects before a CNY 0.02/kWh reduction in the feed-in-tariff kicks in.

The resulting robust market demand has driven up the company’s sales and EPC business. And as more wind capacity on its own wind farms became operational, Goldwind’s wind electricity output has markedly increased, too.

In the first six months, revenues from the sale of wind turbines and parts came to CNY 8.03 billion, up 117.33% on the same period in 2014; wind services brought in CNY 453 million, up 86.76%; and project development reached CNY 835 million, up 60.43%.

Turbine sales

In the January-to-June period, Goldwind sold 176 of its 2.5W turbines and 1,023 units of the 1.5MW turbines, up 76% and 121.67% respectively. Statistics compiled by the Chinese Wind Energy Association (CWEA) show China installed a total of 10.1GW of new wind turbines scattered among 270 wind farms in the first half of 2015, up 40.8% on the preceding year. In the same period, Goldwind delivered 2.08GW, up by more than 90%.

By the end of June, Goldwind had a backlog of orders totalling 7.89GW. In addition, it has around 4.3GW of orders in tendering contracts, yet to be signed.

The company predicts net profits in the first three quarters to be between CNY 1.79 billion and CNY 2.39 billion, up by something between 50% and 100% on same period of 2014.

Goldwind made net profits of CNY 1.83 billion last year, up 328% on a year earlier.

According to CWEA statistics, Goldwind installed a total of 4.43GW wind turbines last year, accounting for 19.1% of the country's total new installations. It has topped the list of major manufacturers in the Chinese market for several years.

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