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Goldwind Profit More Than Triples on New Orders, Higher Margins

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GOLDWIND XINJIANG
A worker assembles wind turbines at Goldwind Science & Technology Co., Ltd. in Urumuqi, China. Photographer: Qilai Shen/Bloomberg

Aug. 23 (Bloomberg) -- Xinjiang Goldwind Science & Technology Co., China’s biggest wind-turbine maker, said first-half profit more than tripled as it increased margins and won orders for new wind farms.

Net income for the period jumped to 330.7 million yuan ($54 million). or 0.12 yuan a share, based on international accounting standards, from 92.7 million yuan, or 0.03 yuan, a year earlier, Goldwind said in a Hong Kong stock exchange filing yesterday. Sales gained 38 percent to 4.44 billion yuan.

“The group’s business performance and new orders improved steadily, maintaining a positive trend,” Goldwind said in the filing. “We currently have a substantial backlog of orders, providing enhanced revenue visibility.”

Goldwind joins peers Vestas Wind Systems A/S of Denmark and Spain’s Gamesa Corp. Tecnologica SA in cutting costs to boost profitability. Vestas, the world’s largest wind-turbine maker, this week reported net income of 94 million euros ($124 million) in the three months through June, rebounding from a 62 million euro loss a year earlier.

Goldwind’s gross profit margins from turbine research and development, manufacturing and sales widened to 26.2 percent in the first half from 16 percent a year earlier, according to yesterday’s filing.

Profits may rise as much as 550 percent to 1.22 billion yuan in the first nine months of the year from a year earlier, Goldwind said.

The company had 4,972 megawatts of orders outstanding as of June 30, it said. An additional 3,927.5 megawatts of orders are waiting for final contracts to be signed.

The stock gained 2.5 percent to close at HK$9.45 in Hong Kong trading yesterday before earnings were announced.

To contact Bloomberg News staff for this story: Feifei Shen in Beijing at fshen11@bloomberg.net; Helen Sun in Shanghai at hsun30@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net Iain Wilson, Peter Langan

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