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Xinjiang Goldwind Science & Technology: Net Profits Dropped More Than 70% In 2011

Source: Xinjiang Goldwind Science & Technology Co., Ltd. , ChinaScope Financial (Data)

+ According to the annual report of Xinjiang Goldwind Science & Technology Co., Ltd. (002202.SZ, 2208.HK) released on March 23, the company had a revenue of CNY 12.84 billion in 2011, up 27.01% year-on-year. Net profit attributable to shareholders was CNY 607 million, down 73.50% from CNY 2.29 billion in 2010.

+ The company explains that last year's performance slip is due to downturn in the wind power industry and intense market competition, resulting in price cuts of wind turbine equipment.

+ Net profit attributable to shareholders in the first quarter of 2012 is expected to fall by more than 50% year-on-year from CNY 206 million in 2011.

Goldwind has experienced negative growth in revenue since 2011H1

Inventory climbed to a historical high while the margin took a dive.
Chinese newly installed wind power dropped 6% in 2011, which translated to a negative growth for wind power equipment manufacturers. Despite the fact, Goldwind led the industry in market share in 2011.