Xinjiang Goldwind Science & Technology Co Class H ((HK:2208)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Xinjiang Goldwind Science & Technology Co Class H painted a largely positive picture, highlighting significant achievements in global installations and increased profitability. The company has made notable advancements in sustainability, although challenges persist with decreased profit margins in wind farm development and a high asset liability ratio.
Record Global Wind Power Installations
Global wind power installations reached a record 121.6 gigawatts in 2024, marking a 3.9% year-over-year growth. Offshore wind installations saw an even more impressive increase of 6%, underscoring the company’s strong position in the renewable energy sector.
Strong WTG Manufacturing and Sales Growth
WTG manufacturing and sales were a major contributor to the company’s revenue, accounting for 68.87%. External sales of wind turbine generators reached 16 gigawatts, reflecting a 16.6% increase and demonstrating robust demand for Goldwind’s products.
Increased Profitability
Goldwind’s comprehensive profit margin improved to 13.8%, up by 0.74%. This was bolstered by a significant reduction in income tax by CNY 750 million, showcasing the company’s effective financial management strategies.
Sustainable Development Achievements
In a significant stride towards sustainability, 61.8% of Goldwind’s global production is now powered by green electricity. The company also developed a recyclable wind turbine blade, made with over 97% recyclable materials, highlighting its commitment to environmental stewardship.
Decreased Profit Margins in Wind Farm Development
Despite overall profitability, the profit margin for wind farm development decreased to 40% from 47.3% the previous year. This decline is attributed to falling electricity prices, posing a challenge for future profitability in this segment.
High Asset Liability Ratio
Goldwind’s asset liability ratio remains high at 73.96%, indicating potential financial risk. The company is actively working to optimize its debt structure to mitigate these risks.
Challenges with Inventory Turnover
While there have been improvements, inventory turnover remains an area of focus. Goldwind aims to further reduce turnover days to enhance operational efficiency.
Positive Future Outlook
The company provided a positive future outlook, with forecasts from IEA and GWEC predicting significant growth in both onshore and offshore wind power installations by 2030. This optimistic forecast aligns with Goldwind’s strategic focus on sustainable development and market value management.
In summary, Xinjiang Goldwind Science & Technology Co Class H’s earnings call highlighted a positive trajectory with strong global installations and increased profitability. While challenges remain, particularly in profit margins and asset liability, the company’s commitment to sustainability and strategic growth positions it well for future success.