- Almost half of orders derived from its 1.5 megawatt turbines
- Company sees fastest growth in sales of 2-megawatt machines
Xinjiang Goldwind Science & Technology Co., China’s biggest wind-turbine maker, said profit gained 16 percent in the first half because of an increase in orders from developers working in its home market.
Net income surged to 1.45 billion yuan ($217 million) in the six months through June, up from 1.25 billion yuan a year ago, the company said in a statement to the Shenzhen stock exchange on Friday. Sales rose 16 percent to 10.9 billion yuan.
Almost half of orders derived from its 1.5-megawatt turbines with sales volume of 1.1 gigawatts, according to the statement. The sales volume of 2-megawatt turbines rose more than seven-fold to 792 megawatts, marking the fastest growth in its products during the period.
The gain in profit underscores the windfall for some developers as China pushes for cleaner sources of energy. The nation may add 23.3 gigawatts of wind power this year, increasing total capacity by 16 percent, Bloomberg New Energy Finance estimates.
Goldwind is also pushing to expand overseas. Earlier this month, it won an order for 99 megawatts of turbines from China Three Gorges Corp. for a wind farm in Pakistan, raising its total orders in the Asian nation to more than 400 megawatts.
Goldwind also plans to build a 10-megawatt solar farm, which will share infrastructure with the Gullen wind mill in New South Wales, Australia. The company secured A$10 million ($7.7 million) in Australian government funds for the project, it said on Aug. 11.
At the end of June, Goldwind had 7.6 gigawatts of outstanding orders and had won another 4.7 gigawatts in contracts that haven’t been signed, according to the statement.
The company sold 1.28 billion yuan of bonds backed by earnings generated by its wind farms, the China Securities Journal reported on Friday, citing people it didn’t identify. Goldwind will pay interest between 3.4 percent to 4.5 percent annually for the securities with various maturities of as many as five years, the report said.
Still, concerns that Goldwind won’t be able to sustain its pace of growth have weighed on the stock, said Karl Liu, an analyst from Bank of China International Ltd. in Hong
Kong. He said investors are concerned China’s annual wind additions won’t be able to remain at last year’s record levels.
Goldwind’s shares have declined about 17 percent since Jan. 1, compared with the benchmark Hang Seng Index’s 4.5 percent gain. The stock rose 3 percent to HK$12.34 in Hong Kong trading before the earnings were announced.
— With assistance by Feifei Shen