Goldwind’s First-Quarter Profit Rises 49% on Higher Orders

  • Sales increase 56% from a year earlier to 3.98 billion yuan
  • Company had 7.74 gigawatts of outstanding orders at end-March

Xinjiang Goldwind Science & Technology Co., China’s biggest wind-turbine maker, said first-quarter profit rose 49 percent as it secured more orders.

Net income was 370.5 million yuan ($57 million) in the three months ended March 31, up from 248.8 million yuan a year earlier, according to a statement to the Shenzhen stock exchange on Thursday. Sales rose 56 percent to 3.98 billion yuan.

"Sale orders increased from the same period last year," said Goldwind.

Profit in the first half will probably rise as much as 50 percent to 1.87 billion, the company said.

The turbine producer has reported higher orders since 2013 as China saw an increase in wind capacity. The nation may add 22.3 gigawatts of wind power this year, boosting total installations by 16 percent, Bloomberg New Energy Finance estimates.

Outstanding Orders

As of the end of March, the Goldwind had 7.74 gigawatts of outstanding orders and had won another 4.35 gigawatts of contracts that haven’t been signed.

Goldwind has also worked to cut costs, raising its gross margins for its 1.5-megawatt turbines by 1.82 percentage points last year and by 1.02 percentage points for its 2.5-megawatt models, it said earlier this month.

The company’s shares gained 0.31 percent to close at HK$12.78 in Hong Kong trading before the earnings were announced. They’ve lost about 15 percent since the beginning of the year, lagging the benchmark Hang Seng Index’s 3.7 percent drop.

— With assistance by Feifei Shen

Before it's here, it's on the Bloomberg Terminal.