The world's largest wind turbine manufacturer Goldwind's Q3 net profit surged 170% year-on-year, with a year-on-year increase of 18.5% in hand orders | Financial report insights

The leading wind power manufacturer in the A-share market and the world's largest wind turbine manufacturer, Goldwind, achieved significant growth in its third-quarter performance, with net profit increasing by over 170% year-on-year, mainly benefiting from the expansion of sales scale of wind turbines and components.

Goldwind released its third-quarter financial report on Friday evening. Key points are as follows:

Financial Performance:

• Third-quarter revenue was 19.61 billion yuan, a year-on-year increase of 25.40%; revenue for the first three quarters was 48.147 billion yuan, a year-on-year increase of 34.34%;

• Single-quarter net profit was 1.097 billion yuan, a year-on-year surge of 170.64%; net profit for the first three quarters was 2.58 billion yuan, a year-on-year increase of 44.21%, with gross margin rising to 14.39%.

• Operating cash flow had a net outflow of 633 million yuan, although it improved by 90.27% year-on-year, it remained negative.

• Inventory surged by 46.01% to 21.65 billion yuan, and prepaid expenses increased by 47.33%.

Core Business Progress:

• External sales capacity for the first three quarters was 18,449.70 megawatts, a year-on-year surge of 90.01%.

• The proportion of large units of 6 megawatts and above reached 86.06%, with continuous optimization of product structure.

• As of September 30, the total orders on hand amounted to 52,460.84 megawatts, a year-on-year increase of 18.48%; among them, overseas orders were 7,161.72 megawatts.

• External pending orders totaled 38,861.14 megawatts, with awarded but unsigned orders at 11,012.73 megawatts.

Significant Expansion in Sales Scale and Increase in Orders on Hand

Goldwind achieved external sales capacity of 18,449.70 megawatts in the first three quarters, a year-on-year increase of 90.01%. Among them, the sales capacity of units of 6 megawatts and above was 15,877.15 megawatts, accounting for 86.06%, becoming the main growth driver. The sales capacity of units from 4 megawatts (inclusive) to 6 megawatts was 2,550.05 megawatts, accounting for 13.82%.

In terms of operating revenue, it reached 48.147 billion yuan in the first three quarters, a year-on-year increase of 34.34%. Operating costs were 41.218 billion yuan, a year-on-year increase of 37.63%. The company stated that the main reasons for the growth in revenue and costs were the increased sales scale of wind turbines and components.

This week, at an industry conference, Goldwind and dozens of other companies set new goals, that is, to add at least 120 gigawatts of wind power installed capacity annually over the next five years.

As of September 30, Goldwind had a total of 52,460.84 megawatts of orders on hand, a year-on-year increase of 18.48%. Among them, the total external pending orders were 38,861.14 megawatts, with awarded but unsigned orders at 11,012.73 megawatts, and overseas orders amounted to 7,161.72 megawatts.

Units of 6 megawatts and above dominate the order structure, with such units reaching 31,659.79 megawatts in external pending orders and 9,892.93 megawatts in awarded but unsigned orders.

Significant Improvement in Profitability

Fair value changes in income became an important driving factor for performance growth. The fair value change income for the first three quarters was 787 million yuan, an increase of 741.39% compared to the same period last year, mainly due to the rise in the fair value of other non-current financial assets held by the company The basic earnings per share is 0.5969 yuan, a year-on-year increase of 45.83%. The weighted average return on net assets is 6.67%, an increase of 1.90 percentage points compared to the same period last year.

In terms of investment income, the first three quarters amounted to 641 million yuan, a decrease of 53.19% compared to the same period last year, mainly due to reduced income from the transfer of subsidiaries.

Goldwind's asset scale continues to expand. As of September 30, total assets reached 167.307 billion yuan, an increase of 7.78% compared to the beginning of the year. Among them, inventory was 21.650 billion yuan, an increase of 46.01% compared to the beginning of the year, mainly due to increased inventory purchased to meet order delivery needs.

The net cash outflow from operating activities was 633 million yuan, a decrease of 90.27% compared to the same period last year, mainly due to an increase in cash received from the sale of goods and provision of services year-on-year