China

China

Goldwind posts fall in H1 profit

CHINA: Goldwind reported a 10% fall in revenue and a 21% drop in pre-tax profit in the six months to the end of June 2017 compared to a year earlier.

Goldwind revenues slid 10% below the year before
Goldwind revenues slid 10% below the year before

Goldwind reported its revenues slid to CNY 9.78 billion ($1.47 billion), while pre-tax profit totalled CNY 1.34 billion ($201 million).

The manufacturer's gross profit for the six months that ended on 30 June — CNY 3.14 billion ($501 million) — was 6% below the total from the year before — CNY 3.3 billion ($420 million).

But in a note accompanying the results, Goldwind's directors wrote optimistically about government policy encouraging the expansion of renewable energy sources, the health of the Chinese wind industry and the company’s 15GW backlog of orders.

In the first six months of 2017, Goldwind acquired the 530MW Stockyard Hill project in Australia, and installed a 3MW prototype in north east China.

The company has backlogged orders under final contracts totalling 9GW, and a total combined backlog of 15GW.

Directors said China's plan to have renewables account for 50% of total power consumption by 2030 — as detailed in the National Development and Reform Commission (NDRC) and the National Energy Administration's (NEA) Energy Production and Consumption Revolution Strategy (2016-2030), announced in April — would allow for "higher penetration" of wind energy.

And the country's energy authorities are prioritising renewables under the government’s Guiding Opinions on Implementing the Thirteenth Five-Year Plan on Renewable Energy Development — published in July — would lead to the "orderly and healthy growth of the industry", they added.

China’s wind power sector had kept "steady growth" in the first half of this year, they also noted.

However, the directors warned despite "significant improvement" during the first half of 2017, the ongoing problem of wind curtailment in China would "continue to be the key restraint to wind power development in the near term".

They also cautioned that the cuts to onshore feed-in tariff (FiT) rates coming into place next year would "intensify" the competition for market share and resources between wind power companies this year, and that a "potential rise of trade protectionism" may affect the company’s profitability.

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