BEIJING, China, March 27, 2015 -- Xinjiang Goldwind Science & Technology Co., Ltd. (the “Company”, Shenzhen stock code 002202, Hong Kong stock code 2208, and together with its subsidiaries, “Goldwind” or the “Group”) today announced its annual results for the year ended December 31, 2014.
China continued to restructure its energy mix in 2014, encouraging the growth of clean energy. Following a steady recovery in 2013, China’s wind power industry achieved fast growth in 2014. Goldwind, a leader in wind equipment manufacturing industry, achieved a strong financial performance in 2014 by leveraging its core competitive advantages and focusing on the following management priorities: strengthening our core businesses while exploring new opportunities, lean management, cooperative collaboration, and excellence in quality.
In accordance with International Financial Reporting Standards, the Group’s revenue from operations for the year 2014 increased 44.1% to RMB17,573 million and net profit attributable to owners of the Company increased 328% to RMB1,830 million. Basic earnings per share for the year 2014 increased to RMB0.68 from RMB0.16 in 2013.
Over the years, Goldwind has been persistently market-oriented, focusing on maximizing customer value, improving product research and supporting a culture of innovation. In 2014, the Company achieved a record strong performance with regard to product sales, R&D and market expansion.
Leading Market Position in Wind Equipment Sales
According to the Chinese Wind Energy Association, China installed 23,196 megawatts (MW) of new wind power capacity in 2014, an increase of 44.2% from 2013. For the fourth consecutive year, Goldwind was the number one supplier in China, with newly installed domestic capacity of 4,434 MW, representing a market share of 19.1%. Goldwind has installed cumulative wind power capacity of 23,384MW in China, representing 20.4% of China’s total cumulative installed wind power capacity, making Goldwind the largest supplier on a cumulative basis, as well.
During the year, revenue increased from Goldwind’s three main business segments, Wind Turbine Generator (WTG) Manufacturing and Sales, Wind Power Services, and Wind Farm Investment, Development and Sales. Revenue from WTG Manufacturing & Sales increased 39.9% to RMB15,704 million, revenue from Wind Power Services increased 10.1% to RMB649.4 million, and revenue from Wind Farm Investment, Development and Sales increased 218.0% to RMB1,169.0 million.
Goldwind achieved strong growth of new orders for WTGs during 2014, and reported a record high combined order backlog of 11,947.25MW at the end of 2014. Goldwind’s 2014 year-end backlog included 5,828.25MW of orders under contract, and 6,119.00MW of orders awaiting contract. Thanks to our efficient project development process, excellent project execution, and professional wind farm operations and maintenance services, the Wind Farm Development, Investment and Sales business segment also made progress toward building Goldwind’s own domestic and overseas wind farms. The Group owned 1,644MW of attributable installed wind farm capacity and 1,454MW of attributable wind farm capacity under construction at the end of 2014.
Within the context of fast industry growth and due to the Group’s competitive advantages, such as our dominant market position, superior products and technology, strong branding and reputation, superior ability to deliver comprehensive solutions, successful internationalization strategy, and lean management practices, Goldwind achieved a sustained improvement of its profitability. Our annual gross profit margin for sales of 1.5MW WTGs in 2014 increased 4.93 percentage points YoY to 25.12% and the gross profit margin for sales of 2.5MW WTGs increased 1.78 percentage points YoY to 22.26%.
Develop Innovative Products and Technologies, Offer Comprehensive Solutions
In 2014, Goldwind pursued innovative technological solutions, provided superior wind energy equipment, and developed several new wind turbine models. The GW115/2000 ultra-low wind speed unit has the largest swept area per kW and highest ultra-low wind speed power output among 2MW units that are available in the market. In addition, a prototype of the GW121/3000, which is suitable for intertidal zone, coastal waters and lands, has been installed for testing. Our low-temperature GW109/2500 WTG model won the “National Strategic Innovative Product” awarded by National Science and Technology Ministry for of preventing wind and sand intrusion.
Goldwind is also aggressively expanding applications of new technology to wind farm services, such as the Internet of Things, big data mining, and cloud computing. We have analyzed our historical operations data and established an efficient remote service system, improving our service standards and creating new opportunities to expand the services market.
Using our extensive industry experience and advanced technology, we provide our clients with comprehensive wind power solutions. Our smart-grid projects located in Beijing and Jiangsu Province have been connected to the grid. Both are powered by our WTGs, managed by our smart-grid software system, and supplemented by other technologies such as energy storage and solar power, establishing a new model for distributed power.
Mr. Wu Gang, Chairman of the Board of Goldwind, said, “While our main focus is the wind industry, Goldwind will also explore wind & solar hybrid generation, smart grid systems, other environmental technologies and other business fields, as we anticipate an expansion of the clean power and energy conservation industry.”
Further Growth in Overseas Wind Market, Implement International Strategy
After several years of overseas market development, Goldwind’s reputation for high quality product and comprehensive service has been recognized and we achieved considerable success during 2014. Our 165.5MW Gullen Range Wind Farm in Australia was commissioned and divested to a third-party operator. We also obtained our largest overseas wind turbine order to date for 215MW to be installed in Panama. We supplied wind turbines to emerging wind markets such as Romania and Pakistan, where the equipment has performed very well. Building on this success, we will continue to explore overseas markets step by step, playing our part in China’s “New Silk Road” strategy.
During the reporting period, the Group’s revenue from international business was RMB1,849.18 million, an increase of 35.8%YoY. At the end of reporting period, the Group had 488MW of overseas contracts in its backlog.
Xinjiang Goldwind Science & Technology Co., Ltd., is the largest manufacturer of wind turbines in China, and among the largest in the world. With strong R&D capabilities, Goldwind is the world’s largest manufacturer of direct-drive permanent magnet wind turbines, representing the industry’s next generation technology. Goldwind is listed on the Shenzhen Stock Exchange (stock code: 002202) and The Stock Exchange of Hong Kong Limited (stock code: 2208).
As at December 31, 2014, Goldwind’s accumulated wind power installations exceeded 24 gigawatts, and it has installed more than 17,600 wind turbine units around the world. That wind power generation capacity is equivalent to 17 million tons of coal saved per year or 49 million tons of carbon emissions reduced per year or 27 million cubic meters of newly planted forest.
For more information, please visit www.goldwindglobal.com.
Goldwind Media Contact:
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