Goldwind, the world's largest wind turbine manufacturer, reported a 170% year-on-year surge in Q3 net profit, with orders on hand up 18.5% year-on-year | Earnings Report Insights

Goldwind, the world's largest wind turbine manufacturer, reported a 170% year-on-year surge in Q3 net profit, with orders on hand up 18.5% year-on-year | Earnings Report Insights

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As the leading A-share wind power manufacturer and the world's largest wind turbine manufacturer, Goldwind Technology achieved substantial growth in the third quarter, with net profit increasing by over 170% year-on-year, mainly benefiting from the expansion of wind turbine and component sales scale.

Goldwind Technology released its third quarter financial report on Friday evening. The key points are as follows:

Financial Performance:

  • Revenue in the third quarter was 19.61 billion yuan, a year-on-year increase of 25.40%; revenue for the first three quarters was 48.147 billion yuan, up 34.34% year-on-year;
  • Net profit for the single quarter was 1.097 billion yuan, a sharp increase of 170.64% year-on-year; net profit for the first three quarters was 2.58 billion yuan, up 44.21% year-on-year, with gross profit margin increasing to 14.39%.
  • Net operating cash outflow was 633 million yuan, improving by 90.27% year-on-year but still negative.
  • Inventories surged by 46.01% to 21.65 billion yuan, and prepayments increased by 47.33%.

Core Business Progress:

  • External sales capacity in the first three quarters was 18,449.70 MW, soaring by 90.01% year-on-year.
  • Units of 6 MW and above accounted for 86.06%, with ongoing optimization of product structure.
  • As of September 30, total orders on hand reached 52,460.84 MW, up 18.48% year-on-year; overseas orders were 7,161.72 MW.
  • Outstanding external orders reached 38,861.14 MW, and awarded-but-not-signed orders were 11,012.73 MW.

Significant Expansion in Sales Scale, Sharp Increase in Orders on Hand

In the first three quarters, Goldwind achieved external sales capacity of 18,449.70 MW, up 90.01% year-on-year. Among these, sales of units 6 MW and above totaled 15,877.15 MW, accounting for 86.06%, becoming the main growth driver. Units from 4 MW (including) to 6 MW had sales capacity of 2,550.05 MW, accounting for 13.82%.

In revenue, the first three quarters reached 48.147 billion yuan, up 34.34% year-on-year. Operating costs were 41.218 billion yuan, up 37.63% year-on-year. The company stated that the main reason for revenue and cost growth was the increased scale of wind turbine and component sales.

This week, at an industry conference, Goldwind and dozens of other companies proposednew targets, namely that in the next five years, at least 120 GW of new wind power capacity will be added each year.

As of September 30, Goldwind’s orders on hand totaled 52,460.84 MW, up 18.48% year-on-year. Of these, outstanding external orders were 38,861.14 MW, awarded-but-not-signed external orders were 11,012.73 MW, and overseas orders were 7,161.72 MW.

Units of 6 MW or above dominated the order structure, with 31,659.79 MW in outstanding external orders and 9,892.93 MW in awarded-but-not-signed external orders for such units.

Significant Improvement in Profitability

Changes in fair value became a key driver of the performance growth. In the first three quarters, gains from changes in fair value were 787 million yuan, an increase of 741.39% year-on-year, mainly due to the rise in fair value of other non-current financial assets held by the company.

Basic earnings per share were 0.5969 yuan, up 45.83% year-on-year. Weighted average return on net assets was 6.67%, an increase of 1.90 percentage points over the same period last year.

For investment income, it was 641 million yuan in the first three quarters, a decrease of 53.19% year-on-year, mainly due to reduced income from the transfer of subsidiaries.

Goldwind’s asset scale continues to expand. As of September 30, total assets were 167.307 billion yuan, up 7.78% from the beginning of the year. Inventories were 21.65 billion yuan, up 46.01% from the start of the year, mainly due to increased inventory purchases to meet order delivery needs.

Net cash outflow from operating activities was 633 million yuan, down 90.27% year-on-year, mainly due to an increase in cash received from selling goods and providing services.

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