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Xinjiang Goldwind Science & Technology Co Ltd (Goldwind) recently released its second-quarter earnings for 2025, which revealed a mixed financial performance. The company reported earnings per share (EPS) of $0.21, falling short of the forecasted $0.25. Despite this miss, Goldwind’s stock surged by 10.46% after hours, closing at $11.62, driven by strong revenue figures and robust market performance.
Key Takeaways
- Goldwind’s EPS of $0.21 missed the forecast by 16%.
- Revenue for the quarter was $18.52 billion, surpassing expectations.
- Stock price surged by 10.46% in after-hours trading.
- The company emphasized its strong order backlog and global expansion efforts.
- Goldwind is drafting its fifteenth five-year strategy, focusing on market expansion.
Company Performance
Goldwind demonstrated solid revenue growth in Q2 2025 with $18.52 billion, showcasing its strength in the wind turbine manufacturing sector. The company continues to benefit from its market leadership and expanding global presence. The revenue from the Wind Turbine Generator (WTG) Manufacturing segment accounted for a significant 76% of total revenue, highlighting the company’s core business strength.
Financial Highlights
- Revenue: $18.52 billion, a significant increase year-over-year.
- Gross Profit Margin: 15.35%, reflecting stable profitability.
- Net Attributable Profit: $1.49 billion.
- Return on Equity (ROE): 3.85%, up by 0.12 percentage points.
Earnings vs. Forecast
Goldwind’s EPS of $0.21 was below the forecasted $0.25, marking a 16% miss. This deviation from expectations contrasts with previous quarters where the company often met or exceeded forecasts. Despite the miss, the strong revenue figures appeared to mitigate investor concerns.
Market Reaction
Following the earnings release, Goldwind’s stock saw a notable increase of 10.46% in after-hours trading, closing at $11.62. This surge positions the stock closer to its 52-week high of $12.15. The positive market reaction indicates investor confidence in the company’s revenue performance and strategic direction.
Outlook & Guidance
Looking forward, Goldwind is focused on drafting its fifteenth five-year strategy, which includes expanding its overseas markets and improving cash flow management. The company aims to continue enhancing its asset-liability ratio and maintaining competitive pricing strategies. While the company operates with a significant debt burden (Debt/Equity ratio of 1.0), InvestingPro’s detailed analysis suggests strong potential for future growth, supported by analyst forecasts predicting continued profitability in 2025. Access the comprehensive Pro Research Report for in-depth analysis of Goldwind’s growth trajectory and competitive position.
Executive Commentary
Wang Hong Yan, CFO, highlighted the company’s strong revenue performance, stating, "Our revenue is very historically high, which is definitely attributable to our WTG manufacturing." She further emphasized the company’s efforts to improve its base of trade receivables and strategic planning for future growth.
Risks and Challenges
- Supply Chain Disruptions: Potential delays could affect manufacturing timelines.
- Market Saturation: Increasing competition in the wind energy sector.
- Regulatory Changes: Shifts in environmental policies could impact operations.
- Economic Uncertainty: Global economic fluctuations may affect demand.
- Currency Fluctuations: Exchange rate volatility could influence financial results.
Goldwind’s Q2 2025 earnings report underscores the company’s robust revenue growth and strategic initiatives, despite an EPS miss. The positive market reaction reflects investor confidence in Goldwind’s long-term growth prospects and its ability to navigate challenges in the wind energy sector.
Full transcript - Xinjiang Goldwind Science & Technology Co Ltd Class A (002202) Q2 2025:
Unidentified Moderator, Gold Wing: Dear investors, good afternoon. Welcome to join us at Gold Wing twenty twenty five Interim Results Announcement Telephone Call. Today joining us including Mr. Tao Chiu Grang, VP and Board Director VP, Board Secretary and Company Secretary, Ma Jin Lu CFO, Wang Hong Yan and Mr. Chen Chou Hua, Group VP and GM of Wind Power Industrial Company.
Now, Madam Ma Jin Lu is going to walk us through the industry development and company’s operation for 2025. And then Mr. Wang Hong Yan is going to walk us through the financial indicators. And then we’ll kick off our Q and A. Madam Ma, please.
Thank you. Am I audible? Okay. Dear investors, good afternoon. Welcome to join us at twenty twenty five Gold Wing Interim Results Announcement.
And thank you for your long term support and care to the company. Let me now walk you through the industry development update. This is the GWEC global wind power market update. As you could see previously, we have updated on the Bloomberg global data, but now GWEC, as a professional council, they have more authoritative data. 2024 global new installation was 117 gigawatts, onshore wind 109 gigawatts, offshore wind totaling eight gigawatts.
By region, APAC accounts for 75% of the total installation. China represents 68% of the total installation. On the right side, you could see the wind power price from ’twenty one to 2024, the RCOE of onshore power declined by 70%, whereas in China it declined by 68% from 2010 to 2024. Now, the global LCOE is $0.034 per kilowatt, and in China, it is now $0.029 per kilowatt hour. The LCOE of offshore wind power declined by 62% from 0.208 USD kilowatt hour in 2010 to 0.079 USD kilowatt in 2024, whereas in China, the onshore or the offshore wind power COE also declined by 72%.
Let’s look at grid connection. In 2025, China recorded 58 51.4 gigawatts of new connection increased by almost 100%, of which onshore 48.9 gigawatts and 2.5 gigawatts for offshore. As of June 2025, China’s cumulative grade connection for wind power totaled 572.6 gigawatts taking 15.7% in China’s power mix while thermal power declined further to 40.4%. You can see that the installation of renewable energy has surpassed that of thermal. On the right side, you could see the power production and utilization hour.
China in the 2025 has used total power with 3.7% year on year increase, where wind power, power production in China increased by 15.6%, representing a penetration rate of 12.1% utilization rate of wind power is 93.2%. The national average wind utilization was ten eighty seven hours or forty seven hours decrease year on year. Let’s look at the public market tender market in twenty twenty five first half. You can see that the market totaled 71.9 gigawatts in first half twenty twenty five, 8.8% year on year increase. 71.9 gigawatts is definitely a very large capacity by market.
Onshore public tender market totaled 66.9 gigawatts and offshore five gigawatts. By region, of course, Northern part of China accounted for 77%, while South Paws accounts for 23%. On the right side, you could see the average monthly bidding price. We can see that the bidding price is stabilizing and raising by the June. The overall average bidding price of all WTG suppliers in the market recorded $16.16 per kilowatt.
Ending 2025, in China, we have multiple policies to support wind power. Of course, there are energy policy updates. In 01/01/2025, the energy law of PERC came into effect proposing to improve the energy development, utilization policies, optimizing energy supply, consumption structure, and promoting clean and low carbon energy. On 01/07/2025, NDRC issued a national unified market construction guidelines proposing establishing a national unified energy market system. On 02/09/2025, NDRC and AER jointly issued notice on deepening market oriented reforms of ungrid power tariffs for new energy to promote high quality development.
That’s a very well known document. It proposes to deepen the market oriented reform of ungrid power tariffs and promoting full entry of a new energy generation into China’s power markets. On the right side, you could see policies that promote low carbon transformation. In February 27, the NDA issued the guiding opinions on energy work in 2025 proposing to increase the proportion of non fossil fuel power generation capacity to almost 60% and proportion of non fossil fuels to about 20%. On 03/05/2025, governance work report, it also proposed steadily advanced carbon peaking and carbon neutrality establishing a zero carbon parks and factories.
In 05/25/2025, the State Council also had reviewed and proved the manufacturing industry green low carbon development action plan pointed out the need to accelerate green technology innovation and advancing the green transformation of traditional industries. On the right side, you could see the green certificate market development and how the energy innovation was going to be expanded. For example, on 03/06/2025, five ministries included the NDRC issued opinions on promoting high quality development of renewable energy green power certificates market proponing that by 2027 green certificate market trading system will be completed. In 04/11/2025, NDRC also issued a guiding opinion on building virtual power plants by 2027. The construction operation and management mechanism for virtual power plants will be mature and there are going to be at least 20,000,000 kilowatts adjusted capacity provided by virtual power plants by then by May 21.
NDRC also issued a notice on developing green power direct connection proposing to strengthen the overall building of the markets. All these policies will definitely facilitate a low carbon energy like wind towers steady development. Against that background, let’s now talk about our performance from the company. You know, we have four segments. We issue our results in different segments, including WTG manufacturing sales, wind farm development, wind power service and other business.
In first half, all of these four segments presented sound development. WTG sales definitely grew by almost 100% accounting for 76% above of all our revenue. The wind farm development also developed robustly now accounting for 11% of our total revenue. We will walk you through the different segmental performance. Now the first segment, during the 2025, we have external fill capacity of 10,641 megawatts, representing increase of 106% year on year.
Sales capacity of WTG at six megawatts and above totaled 8,672 megawatts taking 81.5 of total sales and that of four megawatts to six megawatts taking 18.3% and below four megawatts taking 0.2% of total sales capacity. If you look at the order backlog, we could see the total order backlog was 54.8 gigawatts and the external order backlog totaled 51.8 gigawatts, including 10.4 gigawatts of successful bid and 41.4 gigawatts of signed contract. And if you look at the external order mix, we can see that there are capacity units below four megawatts accounting for 1% between four to six megawatts accounting for 15% and for about six megawatts accounting for 84%. If you look at our global expansion, we have seen very steady growth where we have cumulative installation in overseas market, for example, in South America exceeding two gigawatts, in Asia exceeding two gigawatts. As of June 30, the order backlog in overseas markets totaled 7,360 megawatts.
If you look at the grid connection, company has added 709.04 megawatts of attributable grid connection wind power capacity, and we sold about 100 megawatts at home and abroad. If you look at the eight gigawatts capacity on the right side pie chart, you could see the distribution. For example, in Central China, it talks about 32% and the Northwestern part, of course, a big chunk. Other parts, for example, North China 22% and the Northwestern 28%, East China 32%. If you look at the right side, most of these capacity are in Northwestern China.
Now let’s talk about the utilization. You can see that in 2025, our South Lone Wind Farms recorded twelve fifty five hour utilization. That is one hundred and sixty eight hours higher than that of national average. Let’s look at the wind power service business. By June 30, the company’s under operation capacity totaled 45.95 gigawatts, up by 37% year on year.
That’s all for my introduction. Now I’ll hand over to our CFO to walk you through our financial results. Dear investors, good afternoon. Gold Wing Science and Technology is very happy to report to you our profitability index and thank you for your support to us, especially for your interest in wind power market and thank you for joining us today at the results announcement. Let me now walk you through the twenty twenty five first half financial index on Page 15, you could see that’s the consolidated revenue, GP margin.
On the left side, you could see on the left side upper corner you could see the revenue. You could see the list of our revenue in gray and in blue representing the revenue in 2024, four quarters ending 2025. Our revenue is very historically high, which is definitely attributable to our WTG manufacturing. Our revenue totaled 1,852,000,000.000 If you look at the profit margin, it is 15.35%, which is much higher than the second quarter. If you look at the gross profit increased by $693,000,000 mostly coming from the WTG manufacturing business.
On the left side, you could see the net attributable profit, which totaled $1,488,000,110 million increase year on year. Mostly it’s a much improvement because of the optimized business operation. If you look at the ROE, the weighted average return on equity in the 2025 is 3.85%, up by 0.12 percentage points. Why? Because of our net profit increase.
Of all quarters in this year, the weighted average return on equity will optimize quarter by quarter. It is because of the first half in twenty twenty five, if you look at the revenue, the profit margins, the attributable net profit and the weighted ROE, it is improving comparing the performance last year. Our operation is improved. Now let’s look at Page 16. Just now, we talk about our sales capacity, as Madame Ma has briefed.
First segment is our WTT manufacturing and sales. Revenue is 21,852 million dollars and our GP margin is 7.9%. So in 2025, our WTG manufacturing sales business structure is much improved, which delivered us a scale based performance and wind farm development revenue, 3,172 million and profit margin, 7.5% year on year, while last year it was 56.4% with the wind power. So it is because of the policy, data is going to change in the future. Now let’s look at wind power service revenue, dollars 2,000,000 profit margin, 22.5% and the business is very stable.
The revenue and profit margin changes coming from the EPC revenue increase from overseas and other business is very stable. The very last segment is other business, we call it environmental protection business. The revenue shrank a little bit because of some water treatment solutions have seen decreased revenue. So in the future, the profit margin is going to rely on the water tariff increase. And of course, we have seen less investment return from our investment projects, which is quite normal for the company as we start to steer upon our main principal business.
Now you can see the days of trade receivables at the June 2025. Trade receivable taking 21% of total assets increased by two percentage points, whereas days of trade receivable is one hundred and seventy three days, much more improved because of our revenue increase In 2025, we will continue to improve our base of trade receivables so that we could reduce our trade receivables proportion out of our total assets and total revenue. On the right side, you could see days of inventory and contract assets in 2025, inventory and contract assets accounts for 12% of total assets down by 2% and the days of inventory is one hundred and thirty days much more improved compared to 2025. On Page 18, you’re going to look at the solvency position on the left side. You could see the interest bearing debt.
2025, company’s interest bearing debt taking up 41% of our total liabilities. If you look at quarter by quarter or year on year performance, this position is decreasing. So the interest bearing and non interest bearing debt structure has been much improved. And if you look at interest bearing debt itself, the structure is much more improved to where capital utilization cost has been much improved. And the financial cost is also decreasing, which reflects the debt structure improvement.
On the right side you could see the asset liability ratio. In the beginning of the year, debt ratio was 73.96%, whereas in first half twenty twenty five, the asset liability ratio was 73% totaling $161,000,000,000 So that means our asset liability ratio is continuously improving and the company will continue to focus on its improvement. We’re going to manage our long term assets, current ratio, improving our debt structure to make sure we have more growth out of our equitable assets. And the company is now drafting our fifteenth five year strategy so that we could further improve our assets liability ratio. While we are mitigating financial costs proactively, we want to make sure the sound health of our asset liability ratio.
The last page is our cash flow, especially the net operating cash flow. On the left side, you could see our cash in June 2025, total ratio of cash to total assets is 5.93%. Year on year, it’s very flat and quarter by quarter, it’s decreasing, which means capital utilization efficiency is much more improved. On the very right side, you could see the net operating cash flow. Here, there are three factors.
Number one, our operating cash flow trend is very much aligned with the seasonal changes in the industry. Over the years, the trend is very similar. Second feature is you could note that the net operating cash flow outflow is shrinking. In first half, the outflow is $2,900,000,000 which is much more improved. It is the smallest outflow in the last five years.
Why? It is because we have more lean management tools, especially on how we manage our key accounts, how we manage our cash structure. Secondly, it is also attributable to May 31 policy and the last year of the fourteen five year plan and the increase of the overseas orders. So in the 2025, our operating cash flow is improved. The third feature is the inflow is not going to be less than attributable net profit, which means that while we continue to improve our profitability, we continue to increase more cash balance in our account.
That’s all for me. Thank you to all shareholders support. Thank you.
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