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Goldwind Announces 2010 Annual Results

(28 March 2011-Beijing) Xinjiang Goldwind Science & Technology Co., Ltd. (“Goldwind” or the “Group”; SZ stock code: 002202; HK stock code: 2208), a leading manufacturer of wind turbine generators in China, today announced its annual results for the year ended 31 December 2010 (the “year under review”).
 
For the year under review, the Group recorded a significant growth. Revenue amounted to approximately RMB17.475 billion, representing an increase of 63.83% as compared with RMB10.667 billion last year. Gross profit rose 45.83% year-on-year to approximately RMB4.021 billion, while profit attributable to shareholders increased 31.16% to approximately RMB2.29 billion. Basic earnings per share were RMB0.99. The board of directors proposed a dividend payout of RMB0.34 for the year ended 31 December 2010.
 
Mr. Wu Gang, Chairman and Chief Executive Officer of Goldwind, said, “In 2010, China’s wind power industry continued to experience rapid growth. The massive demand for energy and wind energy’s relatively small contribution so far, there is a fantastic opportunity for the rapid growth of the Chinese wind power industry to continue. According to statistics published by the Chinese Wind Energy Association, China’s newly installed wind power capacity reached 18.93GW, representing an increase of 37.1% from 2009. With such favorable economic conditions, the Group has continued its strong growth momentum and delivered remarkable results for the year under review.”
 
The Group commits itself to the research, design and manufacture of high quality WTGs with high efficiency and reliability. The revenue from sales of WTG and spare parts surged 64.34% year-on-year to RMB17.005 billion. Total sales volume was 4,006.75MW, an increase of 96.84% over 2009. Up to now, the Group’s major WTG manufacturing layout has been completed, which includes nine production bases, namely Yizhuang in Beijing, Urumuqi in Xinjiang, Baotou in Inner Mongolia, Jiuquan in Gansu, Xi’an in Shaanxi, Dafeng in Jiangsu, Fuxin in Liaoning, Chengde in Hebei and Yinchuan in Ningxia. With the continued optimization of its technology and manufacturing process, the production capacity of 1.5MW WTG has reached 4,000 units, and all nine bases are also able to meet the production requirement of the 2.5MW WTG.
 
The Group’s Xi’an production base began commenced operation in July 2010. It became the Group’s major MW-level WTG production base in the northwestern area. The offshore WTG production base in Dafeng, Jiangsu was also launched for operation, establishing an important milestone for the Group’s offshore strategy.
 
During the year under review, the Group acquired the domestically matured blade suppliers, Xiexin Wind Power (Jiangsu) Co., Ltd and Xiexin Wind Power (Xilinhaote) Co., Ltd., aimed at integrating design and production abilities of both companies, and develop the ability for blades in-house production, thus reducing costs. In 2010, the Group and Infineon Technologies AG, a leading global semiconductor solution provider, entered into an agreement to introduce core module technology to the Group, which also received the license to manufacture in-house Infineon modules required by the convertor of MW-level WTGs. In this way the self sufficiency in components could be enhanced.

Goldwind localizes its wind power services to enhance technical support and better ensure a rapid response to customers’ needs. The Group provides its customers with comprehensive wind power services, including preliminary investment consultation, pre-construction services, project construction services, post construction operations and maintenance services, and various kinds of software support services such as SCADA and energy management platform, etc. In 2010, the revenue from wind power services reached RMB293 million, representing an increase of 35.90% over last year.

In 2010, the total newly installed capacity of completed wind farms was 327MW, while attributable installed capacity was 248.13MW. The Group sold six wind farms with an attributable installed capacity of approximately 155.82MW. As of 31 December 2010, the Group had 624MW of total installed capacity of completed wind farms and 417.42MW of attributable installed capacity. In addition to the completed wind farms, the attributable installed capacity of the projects still under construction is 306.38MW. In 2010, the revenue from the wind farm operations was RMB178 million, an increase of 71.35% over that of 2009. Revenue from wind farm sales was RMB444 million, an increase of RMB254 million from 2009.
 
Goldwind also made remarkable progress in its international business during the year under review. TianRun Shady Oaks, LLC, a wholly-owned U.S. subsidiary of Goldwind, won a bid and entered into a long-term agreement for the supply of electricity to Illinois-based Shady Oaks Wind Farm for a term of 20 years starting from 2012. In addition, the Group also entered into an agreement with China Machinery & Equipment International Tendering Co., Ltd. for the supply of 34 units of 1.5MW DDPM WTGs for the Adama wind farm project in Ethiopia, representing Goldwind’s first step into the African market.
 
In addition, the Company will supply 21 units of 1.5MW WTGs for the Alexigros project in Cyprus and over 70 units of MW-level WTGs for the Gullen Range project in Australia. This marks a major milestone for the Group’s development in Australian market.
 
Looking forward, Mr. Wu Gang concluded, “We believe in the positive outlook for the global wind power market in 2011. The Global Wind Energy Council forecasted that the global accumulated installed capacity to reach 533GW in 2015 and 1,071GW in 2020. By then wind power will provide 13% of the total electricity supply in the world. Taking opportunities and challenges presented by industry trends, we will continue to increase our R&D investment to accelerate the pace of products development, and enhance the technology with our leading cost control system and competition strategy. Apart from this, we also plan to actively develop our business in the international market and further integrate our global business resources. Striving to develop a multi-level business model with a focus on WTGs and a new profit-making model, we are dedicated to integrating wind power technology, manufacturing, services and project development, and maximizing returns for our shareholders and creating the best value for our customers.”

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