Xinjiang Goldwind Science & Technology Co. said first-quarter profit rose almost fivefold as China’s biggest wind-turbine maker got more orders and made early deliveries.
Net income was 248.8 million yuan ($40 million) from 50.8 million yuan a year earlier, Goldwind said on Friday in a filing to the Hong Kong stock exchange. Sales surged 78 percent to 2.55 billion yuan.
“Deliveries for 2015 were pushed forward, resulting in an increase in wind-turbine sales,” while electricity sales climbed after installed wind-farm capacity rose, Goldwind said. The company forecast profit in the first half to more than triple to as much as 1.16 billion yuan.
China is expected to add 25 gigawatts of wind power this year after installing a record 21 gigawatts in 2014, Bloomberg New Energy Finance estimates. The turbine manufacturer has reported increased orders since 2013 as demand rose.
As of the end of March, the company had 6.84 gigawatts of outstanding orders and had won another 5.8 gigawatts of contracts that haven’t been signed.
Goldwind also cut costs and strengthened inventory management in 2014, with its gross margin increasing 4.28 percentage points to 24.53 percent, it said last month.
The stock declined 2.1 percent to close at HK$17.34 in Hong Kong trading before the earnings were announced.
— With assistance by Feifei Shen