October 23, 2011 – Beijing, China
Xinjiang Goldwind Science & Technology Co., Ltd. (Goldwind) announced its financial results for the nine months ended September 30, 2011.
Although China’s wind power industry continued to face many challenges in the third quarter of 2011, a series of positive industrial policies were implemented to promote long-term, stable development of the wind power industry. In addition, Goldwind’s Permanent Magnet Direct Drive (PMDD) wind turbine was certified by an international engineering firm (GL Garrad Hassan) for low voltage ride-through (LVRT) at zero volts, further demonstrating that Goldwind’s PMDD design is a grid-friendly technology. Goldwind was also the first manufacturer to successfully pass field testing of China’s previously installed wind power capacity for LVRT.
Due in part to a stricter regulatory environment, Goldwind’s management is optimistic about the sustainable development of China’s wind power industry and product lifecycle management. Goldwind designs and manufactures high quality products that accommodate a variety of different operating environments. Our innovative products will further enhance wind power penetration and create value for customers. Currently, Goldwind has developed a segmented product line of 1.5MW wind turbines, including high altitude, low wind speed, low temperature and high temperature environments. Goldwind also has a segmented product line of 2.5MW wind turbines, including units that are suitable for installation in low-wind speed and intertidal environments.
During the period under review, the Group generated RMB9,420.35 million of revenues, a year-on-year decrease of 13.52% compared to the nine months ended September 30, 2010. Net profits attributable to shareholders of the Group were RMB615.07 million, representing a decrease of 59.85% compared to the same 9 month period last year. Basic earnings per share for the period were RMB0.2283. Results were impacted primarily by a lower average selling price during the reporting period as compared with the same period last year. However, net profit margins remained healthy at 18.6% for the nine months ended 30 September 2011.
At the end of the quarter, the Group had a total of 3,581MW of outstanding orders for WTGs, representing an increase of 8% compared to 3,315.0MW as of June 30, 2011. In addition, the Group has also won bids for projects totaling 3,412.5MW for which contracts have not yet been signed. The Group has progressed soundly in international markets with total sales in 3Q 2011 of 79.5MW of WTGs to projects in the United States, Europe and Ethiopia. The Group reported another 151.5MW of international orders on hand as of September 30, 2011.
Mr. Wu Gang, Chairman and Chief Executive Officer of Goldwind, said "In 2011, new regulatory standards have led the industry into a transitional period that will ultimately support a more healthy and orderly development over the long-term. In fact, after a period of rapid sector growth, the market now demands a higher quality product and operational management. Our excellent track record of product R&D has maintained Goldwind’s leading position within the industry. This year, our series of low wind speed turbines and high altitude wind turbines have begun mass production, which provides an opportunity for further wind power penetration into new regions. Our WTG quality has been demonstrated by international third party certifications and our strong operating record. Looking ahead, we will continue to expand into international markets. Leveraging our strong reputation and product quality, Goldwind strives to provide leadership in the global wind power industry."