April 25 (Bloomberg) -- Xinjiang Goldwind Science & Technology Co., China’s biggest wind-turbine maker, said first-quarter profit rose 57 percent on higher demand.
Net income jumped to 50.8 million yuan ($8.1 million) from 32.5 million yuan a year earlier, Goldwind said today in a filing to the Hong Kong stock exchange. Sales increased 51 percent to 1.43 billion yuan, Goldwind said.
The company will seek shareholder approval to sell as much as 5 billion yuan in debt, it said in a separate exchange filing. The debt, which will have a maturity of as much as five years, could be used to supplement working capital or repay bank loans, Goldwind said.
Goldwind along with peers Vestas Wind Systems A/S of Denmark and Spain’s Gamesa Corp. Tecnologica SA is seeking to cut costs to improve profitability. That focus is paying off. Expense reductions helped double operating profit in the quarter from a year earlier and will help increase first-half earnings as much as 300 percent, Goldwind forecast.
“Even as the current wind power market rebounds slowly, industry competition is still very intense,” Ma Jinru, a Goldwind spokeswoman, said by e-mail on April 18.
Goldwind had 4,291 megawatts of orders outstanding at the end of the first quarter, it said. It has an additional 3,834 megawatts of orders lined up, for which contracts have to be signed.
The stock fell 1.8 percent to close at HK$8.07 in Hong Kong trading before earnings were announced.
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