Xinjiang Goldwind Science & Technology Co., Ltd. ("Goldwind") announced its unaudited financial and operational results for the three months ended March 31, 2012 (the “reporting period”), prepared in accordance with the Accounting Rules and Standards of the People’s Republic of China. During the reporting period, the Group generated RMB1,699.73 million of revenues, a decrease of 8.4% as compared to the first quarter of 2011.Profit attributable to equity shareholders of the Company was RMB6.18 million, a decrease of 97%compared with the corresponding period of last year.
Goldwind reported that its backlog under final contract increased 12% to 4,400MW as of 31 March 2012 from 3,931 MW as of 31 December 2011. The volume of successful bids awaiting final contract was reduced to 1,875MW from 2,397MW during the same period as the Company converted a substantial number of successful bids into final contracts. Final contracts represented 70% of the total backlog as of 31 March 2012, up from 62% as of 31 December 2011.
Since early 2011, the global and domestic marketshave presented achallenge for the wind power industry.Duringthisperiod of adjustment, Goldwindwill strive to leverageits competitive advantages, such as itscutting-edge technology, innovative R&D program, and growing momentum in the global market.
Successful Development of Specialized Wind Turbine Series
In 2012, Goldwind will continue to invest in R&D,optimizethe permanent magnetdirect-drive (“PMDD”) technology, and acceleratethe commercial production of the hybridPM turbine while maintaining the same level of quality and performance that our customers have come to expect.
To date, Goldwind has successfully developed 1.5MW, 2.5 MW, 3.0MW PMDD WTGs and 3.0MW hybrid PM WTGs. Moreover, Goldwind offers low wind speed, high altitude, low temperature, high temperature, offshore and tidal PMDD series for diverse environmental conditions. Recently,Goldwind launched its GW93/1500 Ultra-Low Wind Speed Turbine.As for offshore development, the 6.0MW PMDD prototype will be completed at the offshore wind power base in Dafeng, Jiangsu Province in the first half of this year.
As of the end of 2011, Goldwind’s accumulated installed capacity of wind turbines exceeded 12 GW. The company’s newly installed capacity in 2011 ranked first domestically and second globally.
Market Demand for PMDD WTGs Supports Higher Market Share
Goldwindstrives to maximize customer value through its quality products and services. According to World Market Update 2010 & 2011 (“the report”) released by BTM Consult, an industry consultancy, PMDD technology offers a host of advantages over the traditional gearbox such as high efficiency, high reliability, outstanding lowvoltage ride-through capability and low maintenance coststhroughout the product lifecycle.
According to the report, the market share of direct drive WTGs increased to 21.2% (2011) from 17.6% (2010), largely due to PMDD sales. Goldwindwill continue to optimize the PMDD design to improve performance and control costs. Moreover, Goldwindis actively exploringalternativetechnologies like the hybrid PM WTG in order to maintain a competitive edgeandmeet the needs of its diverse customer base.
Successful Development of Smart Micro-Grid Project
Goldwind was among the first in China to develop a smart micro-grid demonstration project, which focuses on the advanced applications of wind energy as well as the storage and transmission of wind and solar power. Completed at the end of last year, the project consists of a smart micro-grid platform that integrates wind power, solar power and energy storage. The smart-grid monitoring system manages power generation, energy storage, and load. The smart micro-grid project, which is expected to facilitate the development of new markets, marks another achievement of Goldwind as a comprehensive wind power solution provider.
Further Expansion in theGlobal Market
In 2012, the Company will continue its global expansion in both established markets, such as the United States and Australia,and emerging markets, such as Africa, South America and Asia. During the reporting period, the Group commenced the Villonaco wind power project in Ecuador, the Mortons Lane wind power project in Australia and the Camelot wind power project in the United States. To date, Goldwind has established over 10 branches and offices overseas, covering North America, South America, Australia, Europe and Africa.
Mr. Wu Gang, Chairman and Chief Executive Officer of Goldwind, said “China’s wind power industry is undergoing a period of adjustment. In 2012, the Company will continueto adapt by accelerating R&D and product development. We will also continue to pursue global expansion, leveragingour comprehensive wind power solutions and wind farm services and development expertise.”