Goldwind Reports Higher Revenue and Net Profit for the Year 2018

Xinjiang Goldwind Science & Technology Co., Ltd. (the “Company”, Shenzhen stock code 002202, Hong Kong stock code 2208, “Goldwind” or the “Group” ) today announced its annual results for the year ended December 31, 2018. Goldwind’s external WTG order backlog has reached 18.5GW in 2018, representing the peak level in history.

In accordance with IFRS, during the year ended December 31, 2018, the Group’s total revenue was RMB 28.59 billion, rising 13.8% YoY. Net profits attributable to owners of the parent company increased by 5.30% to RMB 3.22 billion. Basic earnings per share for the year of 2018 was RMB 0.88, rising 4.76% YoY.

Mr. Wu Gang, Goldwind’s Chairman, said, “In 2018, Goldwind’s competitive advantage of the whole industrial chain layout has become increasingly prominent, ensuring the steady growth of the Company’s performance. Goldwind has actively expanded the market both at home and abroad, and has accomplished progress in R&D and innovation. Meanwhile, the Company has accelerated our digital transformation and related diversification strategy, which led to sustainable progress in our comprehensive strength and market leading position. Going forward, while strengthening our core business, we will continue to make efforts on technological innovation, business promotion and optimization of management, enhancing our competitiveness in comprehensive solutions and service quality, and contributing to create more economic value for shareholders through our well-proven diversified business model.”

WTG Manufacturing and Power Generation

According to Bloomberg New Energy Finance, Goldwind added 6.7GW of domestic installed capacity in 2018, with a market share of 32%. While its market share in global newly installations was 14.2%, making the Company the largest WTG manufacturer in China for the eighth consecutive year and the second largest in the world last year. During the Reporting Period, the Group realized external sales of 5,861MW, an increase of 15.34% YoY. Revenue generated from WTG Manufacturing & Sales business segment was RMB 22,169 million, rising 14.6%.

The capacity of domestic public tender market was 33.5GW in 2018, an increase of 23.1% YoY. As of 31 December 2018, Goldwind’s signed backlog totaled 12.9GW, increasing 37.4% YoY; successful bid totaled 5.6GW. Total external backlog reached 18.5GW, reaching a record-high level.

Benefiting from the improvement of the Company’s attributable installed capacity, Goldwind’s revenue generated from Farm Investment and Development business was RMB 3,904 million, representing an increase of 20.2% YoY and accounting for 13.7% of the Group’s total revenue with an increase of 4.5 percentage points, compared to the same period last year. As of 31 December 2018, the Group’s attributable connected wind farm capacity was 4,720MW; attributable under-construction capacity was 2,764 MW.

R&D and Innovation

In 2018, the Group continued to advance its R&D, as well as the upgrade and promotion of GW2S, GW2.5S and GW3S serial units, which expanded the coverage of these product platforms to low wind speed market segments. The GW131-2.2MW unit launched by the Company’s 2S platform is the first in the industry to complete high voltage ride-through test, and has been certified with an international type certificate and started to supply in a large scale. The “Double140” (GW140-2.5MW-140mHH) unit launched by GW2.5S platform is the world’s first 2.5MW product with impeller diameter and tower height of 140 meters, and has been type-certified by third-party authorities. The GW3S platform’s first GW140-3.4MW unit received DNV type certificate and was named the world’s best onshore model by Windpower Monthly. Meanwhile, Goldwind released a number of smart offshore wind turbine products that can respond to the complex and diverse demands of China’s coastal regions.

Basing on the goal of “reducing cost, improving efficiency and creating value”, Goldwind’s digital wind farm solutions cover the entire life cycle of a wind farm, from planning, design, construction, operation to post-evaluation. It includes self-innovated, customizable PMDD WTGs, New Freemeso, GoldFarm, SOAM™, EFarm, Power Nest™, Resmart and other digital services, which have realized mass application.

Offshore and overseas markets

Along with the accelerated development of offshore wind power in China, GW154-6.7MW and GW171-6.45MW products launched by GW6S platform have successively obtained type certificates and started mass application in 2018. In addition, the Group has continuously strengthened offshore wind power technology, engineering and team-building by realizing the layout of offshore base in Shandong, Jiangsu, Fujian and Guangdong, and thorugh building the first offshore wind power training center in China. Goldwind installed 400MW offshore wind power capacity in 2018. By the end of 2018, the Company had offshore WTG order backlog of 741.8MW.

During the Reporting Period, a number of Goldwind’s overseas wind farms started construction smoothly, including Moorabool and Cattle Hill in Australia and Loma Blanca in Argentina. The Group has obtained international partners’ recognition with superior wind turbine products, outstanding service quality and effective technologies, with its first overseas customer order of GW3S WTGs in Turkey. The Company’s international service business made breakthroughs in Brazil and received 315MW of non-Goldwind WTG service orders. 2 GW109-2.5MW WTGs of the Chilik project in Kazakhstan and 32 GW121-2.5MW WTGs of the Punta Sierra project in Chile were all hoisted and entered their commercial operation periods. As of 31 December 2018, Goldwind had 656.6MW of overseas order backlog. The Company’s under-construction and to-be-developed capacity in foreign markets totaled over 1.5GW.

Emerging Business

While strengthening its core business, the Group has actively expanded its businesses in Internet+ Smart Energy, energy conservation and environmental protection. With its cutting-edge technologies and products, Goldwind dedicates itself to providing comprehensive smart energy and water treatment solutions for building smart parks.

Goldwind has provided comprehensive smart energy solutions for numbers of manufacturing companies and supported building smart city in various areas. In the field of environmental protection, the Company quickly accumulates water treatment and environmental protection assets and cultivates a comprehensive solution for smart water services. By the end of 2018, the Company owned 52 water treatment projects and its cumulative water treatment business scale exceeded 3 million tons per day.