On the evening of August 21, Goldwind (SZ: 002202) released its semi-annual performance report for 2023. In the first half, the company achieved an operating income of CNY 19.001 bln, up 14.03% YoY; net profit of CNY 1.251 bln, a year-on-year decrease of 34.82%.

According to the report, in the first half of this year, Goldwind's three major businesses (wind turbine manufacturing and sales, wind farm investment and development, and wind power services) saw revenue growth.

-- Acceleration of Large-Scale Wind Power Units

As a leading manufacturer of wind power units, Goldwind has achieved a substantial increase in sales in 2023H1. Its sales revenue of wind turbines and components was CNY 12.741 bln, an increase of 17.65% YoY; the capacity of sales units reached 5783.70MW, up 41.55% YoY.

China's domestic wind power market has decreased by 7.5% year-on-year. Against this backdrop, Goldwind has achieved contrarian growth.

The company has launched multi-series products such as GWHV11, GWHV12, GWHV15, GWHV17, GWHV20, GWHV21, and GWHV22, covering both onshore and offshore wind power markets.

As the wind turbine industry appears a large-scale trend, Goldwind continues to increase the R&D of related products. The GWH252-16.0MW unit, jointly developed by the company and Three Gorges Corp., has completed hoisting and grid connection. The unit owns the largest single-unit capacity and impeller diameter among the world's hoisted models.

In addition, Goldwind's GWH230-9.0MW model of the GWHV21 platform has set a new record for the largest single-machine capacity and impeller diameter at sea in the northern domestic market.

It is worth mentioning that the revenue contributed by large units is increasing. According to official data, in 2023H1, Goldwind's sales capacity of units below 4MW decreased by 97.84% YoY. The 4MW-6MW units became the company's hottest models, of which sales capacity increased by 77.27% YoY. The sales capacity of units 6MW and above increased by 337.46% YoY.

In 2023H1, the gross profit margin of Goldwind's wind turbines and parts sales was 3.64%, down 8.95% YoY. The reason for the decline might be the current declining bidding prices, a common problem faced by the manufactuers.

-- Wind Farm Business Continues To Grow

To create the second growth point of performance, Goldwind has also strengthened the development and operation of the wind farm business. Profit items include power generation, transfer of wind farms, and engineering services.

The performance report shows that in the first half of 2023, Goldwind achieved revenue of CNY 3.347 bln in the wind farm development and operation segment, up 17.65% YoY; the gross profit margin was 69.33%, up 1.04% YoY.

In terms of wind power services, Goldwind achieved an operating income of CNY 2.314 bln, up 19.63% year-on-year; the gross profit margin was 15.15%, down 4.66% YoY.

In 2023H1, Goldwind added projects in five provinces and cities including Guizhou, Heilongjiang, Jilin, Hebei, and Inner Mongolia. The newly obtained wind power construction plan indicators and approved indicator capacity both achieved substantial growth.

According to official data, in 2023H1, Goldwind's self-operated wind farms at home and abroad newly added 585.24MW of attributable grid-connected installed capacity, and 741.22MW of transferred attributable grid-connected capacity. As of the end of the reporting period, the global cumulative attributable grid-connected installed capacity was 6922.40MW.

The average power generation utilization hours of Goldwind's domestic units was 1,344 hours, 107 hours higher than the national average level of wind turbines; wind power projects realized power generation revenue of CNY 3.347 bln, and the equity investment income of transferred wind farm projects was CNY 1.67 bln.

At present, China is continuing to promote the construction of large-scale wind power photovoltaic bases. The first batch of 97.05 million kW base projects has started construction, and the grid connection work of the projects is actively advancing. It is planned to be completed and put into operation before the end of this year.