Xinjiang Goldwind Science & Technology Co Class H ((HK:2208)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Xinjiang Goldwind Science & Technology Co. recently held its earnings call, revealing a positive sentiment driven by significant growth in WTG sales and revenue. The company reported improved financial metrics and cash flow management, despite facing challenges in utilization hours and the environmental protection segment. Overall, the performance and strategic outlook were strong, reflecting a promising future for the company.
Significant Increase in WTG Sales
Goldwind reported a remarkable growth in WTG sales, which nearly doubled, accounting for 76% of the company’s total revenue. The external sales capacity saw a substantial year-on-year increase of 106%, reaching 10,641 megawatts. This surge underscores the company’s strong market position and demand for its wind turbine generators.
Record Revenue and Profit Growth
The company achieved record consolidated revenue of CNY 21.852 billion, with a gross profit margin of 15.35%. Net attributable profit also saw an increase of CNY 110 million year-on-year, highlighting the company’s robust financial performance and profitability.
Strong Performance in Wind Farm Development
Goldwind’s Wind Farm Development segment showed impressive growth, generating revenue of CNY 3,172 million with a profit margin of 57.5%. This segment accounted for 11% of the total revenue, demonstrating its importance to the company’s overall business strategy.
Improved Financial Metrics
The company’s financial health improved with a weighted average return on equity rising to 3.85%, up by 0.12 percentage points. Additionally, the asset liability ratio improved to 73%, reflecting better financial management and stability.
Positive Trend in Operating Cash Flow
Goldwind reported a positive trend in operating cash flow, with the net operating cash flow outflow shrinking to CNY 2.9 billion, the smallest outflow in the last five years. This indicates improved cash management and operational efficiency.
Decrease in Utilization Hours
Despite the overall positive performance, the company faced a decrease in national average wind utilization by 47 hours year-on-year. However, Goldwind’s South wind farms recorded 1,265 hours, which was 168 hours higher than the national average, albeit still a decrease.
Challenges in Environmental Protection Business
The environmental protection segment experienced challenges, with revenue shrinking due to decreased income from water treatment solutions. This highlights an area where the company may need to focus on improving performance.
Forward-Looking Guidance
Looking ahead, Goldwind’s guidance reflects robust growth and operational efficiency. The company reported that global new wind installations in 2024 reached 117 gigawatts, with significant contributions from both onshore and offshore sectors. China’s new grid connections in the first half of 2025 surged by nearly 100%, totaling 51.4 gigawatts. The company’s order backlog stands strong at 54.8 gigawatts globally, with an overseas backlog of 7,360 megawatts. Financially, the company continues to focus on optimizing debt structure and enhancing capital utilization.
In summary, Xinjiang Goldwind Science & Technology Co.’s earnings call conveyed a positive outlook with significant growth in WTG sales and revenue. Despite some challenges, the company’s strategic initiatives and financial health indicate a promising future, making it a noteworthy player in the wind energy sector.