Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The manufacturing sector's profit has turned positive, and there is optimism regarding the continued recovery of profitability [5] - The company achieved a revenue of 56.699 billion RMB in 2024, representing a year-on-year growth of 12.4%, and a net profit attributable to shareholders of 1.86 billion RMB, up 39.8% year-on-year [7] - The company maintains its leading market share in the global wind power equipment sector, with a sales capacity of 16.05 GW, a year-on-year increase of 16.6% [7] - The average selling price of wind power equipment has slightly increased, with a sales price of 2,425 RMB/kW, up 33 RMB/kW year-on-year [7] - The company expects net profits for 2025-2027 to be 2.58 billion, 3.33 billion, and 3.88 billion RMB respectively, with growth rates of 38.4%, 29.2%, and 16.5% [7] Financial Summary - The company's total market capitalization is approximately 20.914 billion HKD, with a closing price of 4.95 HKD [3] - The company's debt-to-asset ratio stands at 73.96% [3] - The projected revenue for 2025 is 72.661 billion RMB, with a year-on-year growth rate of 28.6% [6] - The projected net profit for 2025 is 2.575 billion RMB, with a year-on-year growth rate of 38.4% [6] - The company’s return on equity (ROE) is expected to improve from 3.5% in 2023 to 7.9% in 2027 [6]

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 56,516,210 thousand, representing an increase of 12.5% compared to RMB 50,243,726 thousand in 2023[4]. - Gross profit for the same period was RMB 7,716,757 thousand, up from RMB 6,345,091 thousand, indicating a growth of 21.6%[4]. - The net profit attributable to shareholders for 2024 was RMB 1,860,446 thousand, a significant increase of 40% from RMB 1,330,998 thousand in 2023[4]. - The company reported a total comprehensive income of RMB 1,786,640 thousand for 2024, compared to RMB 1,290,942 thousand in the previous year, reflecting a growth of 38.5%[5]. - The basic and diluted earnings per share for 2024 were RMB 0.42, compared to RMB 0.29 in 2023, representing a growth of 44.8%[5]. - The company reported a pre-tax profit of RMB 2,103,786 thousand for 2024, down from RMB 2,519,226 thousand in 2023, representing a decrease of approximately 16.5%[10]. - The company’s joint ventures reported a net income of RMB 121,418 thousand in 2024, compared to RMB 243,114 thousand in 2023[27]. - The company reported a significant increase in trade payables and accrued expenses, with a net increase of RMB 5,165,372 thousand compared to a decrease of RMB 575,518 thousand in 2023[10]. Assets and Liabilities - The total assets as of December 31, 2024, amounted to RMB 126,924,285 thousand, an increase from RMB 113,495,600 thousand in 2023[6]. - The company’s non-current assets totaled RMB 86,623,398 thousand, up from RMB 79,665,123 thousand, marking an increase of 8.7%[6]. - Current liabilities increased to RMB 71,873,940 thousand in 2024 from RMB 63,019,604 thousand in 2023, indicating a rise of 14.5%[7]. - The total liabilities and equity as of December 31, 2024, stand at RMB 40,427,081,000, indicating the company's financial position[8]. - The company’s total liabilities increased to RMB 114,797,204 thousand in 2024 from RMB 103,265,687 thousand in 2023[27]. - The total trade receivables amounted to RMB 32,840,414,000 as of December 31, 2024, compared to RMB 27,225,218,000 in 2023, representing an increase of approximately 20%[62]. - The total amount of notes receivable reached RMB 2,437,112,000 as of December 31, 2024, up from RMB 954,510,000 in 2023, indicating a significant increase of about 155%[62]. Cash Flow and Investments - The company’s cash and cash equivalents decreased to RMB 11,132,904 thousand from RMB 13,693,908 thousand, a decline of 18.6%[6]. - The net cash used in investing activities for the year was RMB 5,724,052 thousand, significantly higher than RMB 1,823,702 thousand in the previous year, indicating an increase of approximately 213.5%[11]. - The net cash inflow from financing activities for the year ended December 31, 2024, was RMB 1,650.28 million, mainly from new bank borrowings of RMB 13,220.69 million[159]. - The net cash flow from operating activities for 2024 was RMB 2,315.85 million, compared to RMB 1,854.04 million in 2023, reflecting a growth of 24.85%[154][155]. Dividends and Shareholder Returns - The company declared a dividend of RMB 422,507,000 for the year 2023, with an additional RMB 99,969,000 attributed to non-controlling interests[8]. - The board proposed a final dividend of RMB 1.4 per 10 shares, totaling RMB 591,113,526.36, subject to shareholder approval at the 2024 annual general meeting[185]. - The company repurchased shares amounting to RMB 442,460,000 during the year, affecting the capital structure[8]. Market and Operational Insights - The company is engaged in the research, development, manufacturing, and sales of wind turbine units and components, as well as providing services related to wind farm construction and asset management[15]. - The company plans to expand its market presence and enhance its service offerings in the wind power sector, focusing on both domestic and international markets[33]. - The company maintained a domestic wind power new installed capacity of 18.67 GW in 2024, capturing a market share of 22%, ranking first in the country for 14 consecutive years; globally, it achieved a new installed capacity of 19.3 GW, with a market share of 15.9%, ranking first for three consecutive years[106]. - The company is actively pursuing green and low-carbon development strategies in line with national policies aimed at achieving carbon neutrality by 2035[85]. Research and Development - The company’s R&D team consists of over 3,000 experienced professionals, continuously driving innovation and enhancing core competitiveness[101]. - The company launched the new wind resource assessment software "Wind Artisan 3.0," which received the first DNV certification in the country[112]. - The company is actively exploring new business areas such as mixed towers, energy storage, and carbon management, aiming to expand the boundaries of wind energy resource development[103]. Compliance and Governance - The company has complied with all applicable provisions of the Corporate Governance Code as of December 31, 2024[187]. - The company’s audit committee approved the annual performance for 2024, confirming the financial statements for the year[199].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for investment opportunities [5][8]. Core Views - The company is positioned as a leading player in the wind turbine manufacturing sector, benefiting from both manufacturing and wind power development, with expectations for profitability recovery [7][10]. - The report highlights the potential for improved profitability driven by overseas exports and a rebound in offshore wind projects, alongside a stable performance in wind power operations [10][55]. Summary by Relevant Sections Market Performance - The closing price of the company's stock is HKD 5.26, with a market capitalization of approximately HKD 22.22 billion [3]. Financial Forecast and Valuation - Revenue projections for the company are as follows: - 2024E: CNY 58.85 billion - 2025E: CNY 72.72 billion - 2026E: CNY 85.96 billion - Net profit forecasts are: - 2024E: CNY 1.74 billion - 2025E: CNY 2.54 billion - 2026E: CNY 3.23 billion - The report estimates a target market value of CNY 34.5 billion, representing a 68% upside from the current valuation [6][8]. Investment Logic - The company is expected to benefit from: 1. Increased offshore wind project activity and accelerated overseas exports, which are anticipated to enhance overall profitability [10]. 2. High-quality wind power assets, with a return on equity (ROE) in the power generation business that ranks among the best in the industry [10][55]. 3. The introduction of a green electricity pricing mechanism, which is expected to provide stable returns for both operational and manufacturing segments [10]. Business Overview - The company has a strong market position, being the largest wind turbine manufacturer in China, with a cumulative installed capacity exceeding 100 million kilowatts [7][34]. - The company’s revenue from wind turbine manufacturing peaked at CNY 466.6 billion in 2020 but has since declined, with 2023 revenue around CNY 32.9 billion [18][21]. - The offshore wind market is projected to recover, with several provinces announcing new projects, which could significantly boost the company's revenue and profitability [49][50]. Operational Assets - The company has a total installed capacity of 814,000 kilowatts as of Q3 2024, with a focus on high-utilization areas such as Xinjiang [55]. - The company is actively developing and operating wind power projects, with a significant number of projects in the pipeline, indicating strong future growth potential [55]. Market Trends - The report notes a trend towards larger wind turbines, which is expected to continue driving down costs and improving efficiency in the sector [35]. - The company is also adapting to market pressures by diversifying its product offerings, including semi-direct drive models, which may help mitigate cost pressures [31][33]. This comprehensive analysis indicates a favorable investment opportunity in the company, supported by strong market positioning and growth potential in the wind energy sector.

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 7.82, indicating a potential upside of 26% from the current price of HKD 6.23 [5][12]. Core Insights - The company's overall gross margin is expected to improve, with a projected gross margin of over 16% for 2024 and further growth to 8% in 2025, driven by increased deliveries of offshore and international wind turbines [2][9]. - The company has successfully expanded its international market presence, demonstrating strong core competitive capabilities in the global supply chain and financing [3][10]. - The company anticipates a total wind turbine shipment of 18-20 GW for 2024, with continued growth expected in 2025, supported by a robust order backlog [4][11]. Financial Summary - The company reported a revenue of RMB 46,254 million in 2022, with projections of RMB 50,244 million in 2023, RMB 57,278 million in 2024, and RMB 61,860 million in 2025, reflecting a growth rate of 14% in 2024 [6][17]. - The net profit is expected to rebound significantly from RMB 1,331 million in 2023 to RMB 2,634 million in 2024, with a further increase to RMB 3,015 million in 2025 [6][17]. - The company’s earnings per share (EPS) is projected to rise from RMB 0.29 in 2023 to RMB 0.57 in 2024, and RMB 0.66 in 2025 [6][17].

Investment Rating - The report does not provide a specific investment rating for the company [1] Core Insights - The company, Goldwind Technology, reported a 22% year-on-year revenue growth to 35.8 billion RMB in the first three quarters of 2024, with a net profit increase of 42% to 1.792 billion RMB [2][3] - The company achieved a record high of 44.3 GW in hand orders, with large turbine models accounting for 73% of these orders [2][3] - The wind turbine sales volume increased by 9% to 9.7 GW, with large turbine models (6 MW and above) making up 57.6% of total sales [3] - The industry is showing signs of recovery, with a 93% increase in bidding volume for wind turbines this year [3] Summary by Sections Company Performance - In Q3 2024, the company's revenue grew by 52% year-on-year to 15.6 billion RMB, with a stable gross margin of 14.1% [3] - The gross margin for the first three quarters increased by 2.2 percentage points to 16.4% [3] - The significant growth in net profit is attributed to increased gross margins and optimized asset and tax structures [3] Order and Sales Dynamics - The company’s hand orders reached a historical high of 44.3 GW, with 41.4 GW from external orders [3] - The sales structure has improved, with a higher proportion of high-margin large turbine models [3] Market Trends - The domestic wind turbine bidding volume increased significantly, with a 17% year-on-year growth in new wind power installations [3] - The bidding price for wind turbines stabilized at an average of 1475 RMB per kW in September 2024 [3] International Expansion - Goldwind Technology has expanded its international presence, with installations in 42 countries across six continents [3] - As of Q3 2024, the company has 8.1 GW of cumulative international installations, with significant contributions from North America, Oceania, and South America [3] Investment Recommendation - The report suggests that Goldwind Technology, as a traditional leader in the wind turbine sector, has significant growth potential due to its record high orders and expected strong performance in Q4 2024 [3]

Business Segments and Market Position - Goldwind Technology has three main business segments: wind turbine manufacturing, wind power services, and wind farm investment and development, providing diversified revenue streams [14]. - The company has maintained the number one market share in China's wind power market for 13 consecutive years and ranked first globally in the wind power market in 2023 [15]. - Goldwind's wind turbines are designed for various operating environments, including high temperature, low temperature, high altitude, low wind speed, and offshore conditions [14]. - The company is actively expanding its global footprint, having established a presence across six continents while consolidating its domestic market [14]. - Goldwind has developed comprehensive solutions that meet customer needs across multiple segments of the wind power industry value chain [14]. - The company leverages advanced technology and years of experience in wind turbine research and manufacturing to maintain its competitive edge [15]. - Goldwind's wind turbine products are backed by proprietary intellectual property, enhancing its market position [15]. - The company is committed to research and development, continuously innovating to improve its product offerings and services [14]. Financial Performance - In the first half of 2024, the company achieved operating revenue of RMB 20,143.15 million, representing a year-on-year growth of 6.53% [42]. - The net profit attributable to the parent company for the same period was RMB 1,386.84 million, an increase of 10.83% year-on-year [42]. - Sales revenue from wind turbine units and components amounted to RMB 12,767.68 million, accounting for 63.38% of total operating revenue [43]. - The total external orders on hand as of June 30, 2024, reached 35,589.23 MW, reflecting a year-on-year increase of 26.40% [47]. - The sales capacity of wind turbine units in the first half of 2024 was 5,150.72 MW, with a significant increase of 97.05% for units of 6 MW and above [43]. - The total installed wind power capacity in China reached 467 million kW by the end of June 2024, a year-on-year increase of 19.9% [37]. - The average utilization hours for wind power in the first half of 2024 were 1,134 hours, with an average utilization rate of 96.1% [37]. - The domestic market bidding volume for wind power in the first half of 2024 was 66.11 GW, a year-on-year increase of 47.88% [38]. Research and Development - The company is committed to becoming a leader in providing comprehensive clean energy and energy-saving solutions, focusing on smart water management and environmental protection [20]. - The company has developed multiple product platforms, including GWHV12 and GWHV20, to meet diverse market demands and enhance product reliability [48][49]. - The company is actively developing new business areas such as mixed towers, energy storage, and carbon management, aiming to enhance the efficient development and utilization of wind energy resources [20]. - The company has established eight overseas regional centers to facilitate the internationalization of capital, market, technology, talent, and management [21]. Governance and Management - Goldwind's financial performance and market strategies are supported by a strong governance structure and experienced management team [11]. - The company has established partnerships with major banks to support its operational and expansion strategies [11]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period [139]. Market Trends and Economic Outlook - The Chinese government's GDP growth for the first half of 2024 was reported at 5.0%, with a stable economic outlook despite global uncertainties [22]. - The total electricity consumption in China for the first half of 2024 was 4,657.5 billion kWh, reflecting a year-on-year increase of 8.1% [25]. - The company is positioned to benefit from the ongoing energy transition and the government's focus on achieving carbon peak and carbon neutrality goals by 2030 and 2060, respectively [27]. Operational Efficiency - The company emphasizes product quality and efficiency, leveraging over 20 years of experience to reduce the levelized cost of electricity throughout the product lifecycle [17]. - The company achieved a significant milestone with the successful installation of its first overseas medium-speed permanent magnet unit in Brazil and completed the first phase of a 504MW wind power project in Egypt, with a second phase order of 150MW [51]. - The company received the first-class award for the "Offshore Wind Power Safety and Efficient Development Technology and Equipment" project and the second-class award for the "High-Performance Service Key Technology and Application of Ultra-Large Capacity Wind Power Energy Conversion System" from the National Science and Technology Progress Awards [51]. Financial Position and Cash Flow - Total assets as of June 30, 2024, were RMB 144,211.91 million, a slight increase from RMB 143,494.60 million as of December 31, 2023 [97]. - The company's income tax expense decreased by 35.68% to RMB 408.94 million, primarily due to a reduction in taxable profits [94]. - The group's current liabilities decreased to RMB 59,663.91 million from RMB 63,019.60 million, primarily due to a reduction in trade payables and notes payable [98]. - The net cash outflow from operating activities for the six months ended June 30, 2024, was RMB 8,150.78 million, compared to RMB 8,071.25 million for the same period in 2023 [100]. - The net cash inflow from financing activities increased to RMB 4,085.82 million in 2024 from RMB 953.73 million in 2023, driven by new bank loans [100]. Shareholder Information - The total issued share capital as of June 30, 2024, was 4,225,067,647 shares, with A-shares constituting 81.69% of the total [13]. - As of June 30, 2024, the total number of shareholders is 248,306, with 247,292 holding A-shares and 1,014 holding H-shares [138]. - Major shareholders include Xinjiang Wind Power with 497,510,186 A-shares (14.41% of A-shares) and China Three Gorges Energy with 386,909,686 A-shares (25.62% of total shares) [135]. Employee and Training Initiatives - The company had a total employee count of 10,375 as of June 30, 2024, down from 10,655 a year earlier [148]. - Employee compensation for the six months ended June 30, 2024, amounted to RMB 2,061,107,000, compared to RMB 1,835,521,000 for the same period in 2023, representing an increase of approximately 12.3% [148]. - The company introduced 583 new training courses in the first half of 2024, with an average of 21.6 training hours per employee [153].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 20,143,154 thousand, an increase of 6.5% compared to RMB 18,909,115 thousand for the same period in 2023[2]. - Gross profit for the period was RMB 3,693,741 thousand, with a gross margin of approximately 18.3%, compared to RMB 2,415,061 thousand in the previous year[2]. - Net profit for the period was RMB 1,435,992 thousand, representing an increase of 6.7% from RMB 1,345,335 thousand in the same period last year[2]. - The company reported a total comprehensive income of RMB 1,446,062 thousand for the period, an increase from RMB 1,095,896 thousand in the same period last year[3]. - The company reported a total profit of RMB 2,217,389 thousand for the six months ended June 30, 2024, compared to RMB 2,299,936 thousand for the same period in 2023, indicating a slight decrease of about 3.6%[15][16]. - The company achieved operating revenue of RMB 20,143.15 million, a year-on-year increase of 6.53%, and a net profit attributable to the parent company of RMB 1,386.84 million, up 10.83% year-on-year[138]. Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to RMB 80,163,740 thousand, up from RMB 79,665,123 thousand at the end of 2023[4]. - As of June 30, 2024, current liabilities totaled RMB 59,663,910 thousand, a decrease of 5.4% from RMB 63,019,604 thousand as of December 31, 2023[5]. - Non-current liabilities amounted to RMB 43,856,737 thousand, an increase of 8.1% from RMB 40,246,083 thousand[5]. - The company's total equity as of June 30, 2024, was RMB 40,691,263 thousand, compared to RMB 40,228,913 thousand at the end of 2023, reflecting a growth of 1.15%[5]. - The company's total assets as of June 30, 2024, were RMB 144,211,910,000, compared to RMB 143,494,600,000 at the end of 2023, reflecting a growth of 0.5%[18]. - The total liabilities increased to RMB 103,520,647,000 as of June 30, 2024, from RMB 103,265,687,000 at the end of 2023, marking a rise of 0.2%[18]. Cash Flow and Financing - Cash and cash equivalents decreased to RMB 8,054,356 thousand from RMB 13,693,908 thousand, a decline of 41.2%[4]. - The net cash flow used in operating activities was RMB 8,150,780 thousand, slightly increased from RMB 8,071,245 thousand in the previous year[8]. - Cash flow from investing activities showed a net outflow of RMB 836,625 thousand, a significant decrease from a net inflow of RMB 1,751,715 thousand in the prior year[9]. - The company’s cash flow from financing activities showed a net inflow of RMB 4,085,818 thousand, a substantial increase from RMB 953,731 thousand in the previous year[9]. - The company’s total liabilities and equity reached RMB 84,691,263 thousand, reflecting a balanced growth in financial structure[6]. Revenue Breakdown - The manufacturing and sales segment generated revenue of RMB 14,608,056 thousand, while the wind farm development segment contributed RMB 4,409,318 thousand, and the wind power services segment accounted for RMB 3,426,652 thousand[15]. - Revenue from wind turbine and component sales was RMB 12,767,677,000, slightly up from RMB 12,740,915,000 in the previous year, indicating a marginal increase of 0.2%[22]. - Revenue from wind farm development reached RMB 4,401,088,000, a significant increase of 31.5% compared to RMB 3,347,156,000 in the same period last year[22]. - The company reported external customer sales of RMB 15,367,226,000 in China and RMB 4,775,928,000 in other countries, with total external sales amounting to RMB 20,143,154,000[19]. Research and Development - The company continues to focus on research and development in wind power technology, aiming to enhance its competitive edge in the renewable energy market[14]. - The company has established eight R&D centers and employs over 3,000 experienced R&D personnel to enhance its innovation capabilities[124]. - The company is actively involved in research and development (R&D) related to wind turbines[190]. Market Position and Strategy - The company maintained its leading position in the domestic wind power market for 13 consecutive years and ranked first in the global wind power market in 2023[123]. - The company is actively pursuing market expansion strategies, including the development of new wind farms and potential acquisitions to strengthen its market position[14]. - The company is committed to becoming a leader in clean energy and environmental solutions through its comprehensive service offerings in the wind power sector[126]. Operational Efficiency - The cost of sold inventory decreased to RMB 12,269,398 thousand from RMB 13,080,924 thousand, reflecting a reduction of about 6.2% year-over-year[31]. - The company’s average utilization hours for domestic wind turbines were 1,268 hours, exceeding the national average by 134 hours[151]. - The company’s operational capacity for after-sales services reached approximately 33.55 GW, representing a year-on-year growth of 13%[149]. Challenges and Risks - The company faces policy risks that could impact the production and sales of its main products due to changes in national and industry development policies[182]. - Market competition risks are heightened as the dual carbon goals in China create unprecedented opportunities for the wind power industry, intensifying competition among companies[182]. - The company is addressing economic environment and exchange rate fluctuation risks by focusing on technological innovation and product upgrades to enhance its competitive advantage[183].

Revenue and Profitability - Revenue for Q1 2024 reached RMB 6,979,133,987.80, an increase of 25.42% compared to RMB 5,564,585,932.57 in Q1 2023[5] - Net profit attributable to shareholders decreased by 73.06% to RMB 332,623,657.47 from RMB 1,234,730,532.58 in the same period last year[5] - Basic and diluted earnings per share fell by 74.62% to RMB 0.0726 from RMB 0.2860 in Q1 2023[5] - The company reported a net loss from fair value changes of RMB 95,466,726.73, an increase of 146.00% compared to the previous year[8] - The company reported a significant decline in investment income, which was RMB 197,065,682.05 compared to RMB 1,822,404,094.31 in the previous year[22] - Total comprehensive income for the three months was RMB 363,632,033.42, a decrease of 72.0% from RMB 1,295,790,216.96 in the prior year[24] Cash Flow and Financial Activities - Net cash flow from operating activities improved by 19.67%, amounting to RMB -6,054,115,012.94 compared to RMB -7,537,014,044.94 in the previous year[5] - The net cash outflow from investing activities for the current period is RMB 286,416,633.54, an increase of 114.64% year-on-year[9] - The net cash inflow from financing activities for the current period is RMB 3,354,818,641.01, an increase of 432.22% year-on-year[9] - Operating cash inflow for the three months ended March 31, 2024, was CNY 10,581,051,956.28, a decrease of 1.57% compared to CNY 10,750,150,616.98 for the same period in 2023[25] - Cash inflow from financing activities was CNY 6,629,590,081.23, compared to CNY 1,828,436,959.20 in the previous year, leading to a net cash inflow of CNY 3,354,818,641.01[26] Assets and Liabilities - Total assets as of March 31, 2024, were RMB 142,032,144,785.42, a decrease of 1.02% from RMB 143,494,599,671.63 at the end of the previous year[5] - Total liabilities decreased from 103,265.69 million to 101,464.45 million, a reduction of approximately 1.74%[20] - The company's total equity attributable to shareholders increased by 0.75% to RMB 37,893,519,160.08 from RMB 37,609,898,971.17 at the end of the previous year[5] - Cash and cash equivalents decreased from 14,245.18 million to 10,857.39 million, a decline of approximately 23.5%[19] - Accounts receivable decreased from 25,548.00 million to 25,108.50 million, a reduction of about 1.73%[19] - Inventory increased from 15,257.24 million to 17,462.56 million, reflecting a growth of approximately 14.5%[19] Operational Performance - The company sold a total capacity of 1,436.34 MW in the first quarter of 2024, with 51.99% of sales coming from units between 4MW and 6MW[16] - The total external orders awaiting execution as of March 31, 2024, amounted to 24,356.04 MW, with a year-on-year increase of 13.76%[17] - The company has a total of 32,359.48 MW in hand external orders, including 5,479.77 MW from overseas[17] - The company reported a total of 1,294.85 MW in internal orders[17] Research and Development - Research and development expenses increased slightly to RMB 368,358,225.65 from RMB 365,948,605.40, indicating a focus on innovation[22] Other Financial Metrics - The income tax expense for the current period is RMB 135,553,250.06, a decrease of 77.99% year-on-year, attributed to a reduction in taxable income[9] - The loss from asset disposal for the current period is RMB 4,422,673.91, an increase of 68.79% year-on-year, primarily due to increased losses from non-current asset disposals[9] - The company aims to enhance market expansion and product development strategies in the upcoming quarters[22] - The first quarter report for 2024 was unaudited, indicating a preliminary assessment of financial performance[27]

Financial Performance - Goldwind reported a revenue of RMB 20.5 billion for the fiscal year 2023, representing a year-on-year increase of 15%[3]. - The company achieved a net profit of RMB 2.8 billion, which is a 10% increase compared to the previous year[3]. - The company achieved a revenue of RMB 50,243.73 million for the year ending December 31, 2023, representing an increase of 8.63% compared to RMB 46,253.53 million in 2022[12]. - The net profit attributable to shareholders was RMB 1,330.998 million, a decrease of 44.16% from RMB 2,383.433 million in the previous year[12]. - The company expects a revenue growth forecast of 12% for the next fiscal year, driven by increased demand for renewable energy solutions[3]. - The company's net profit margin attributable to shareholders decreased to 2.65%, down from 5.15% in the previous year, a decline of 2.50 percentage points[59]. - The weighted average return on net assets was 3.45%, a decrease of 2.93 percentage points compared to the previous year[59]. - The total cost of sales for the year ended December 31, 2023, was RMB 41,840.32 million, an increase of RMB 3,624.98 million or 9.49% compared to RMB 38,215.34 million for the year ended December 31, 2022[64]. - The gross profit for the year ended December 31, 2023, was RMB 8,403.40 million, reflecting an increase of RMB 365.21 million or 4.54% from RMB 8,038.19 million in the previous year[65]. - Other income and gains for the year ended December 31, 2023, amounted to RMB 3,625.33 million, a 16.67% increase from RMB 3,107.37 million in 2022[67]. Market Position and Strategy - The company has set a target to expand its market share in overseas markets by 25% over the next three years[3]. - Goldwind maintained a 20% market share in the domestic wind power market, ranking first in the country for thirteen consecutive years[16]. - The company is pursuing strategic acquisitions, including the potential purchase of four renewable energy companies, to strengthen its market position[8]. - The company is actively expanding its international presence, with wind turbine installations in 38 countries and nearly 50% of its exports going to overseas markets[39]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[67]. Research and Development - Goldwind plans to invest RMB 1 billion in R&D for new wind turbine technologies in 2024, aiming to enhance efficiency by 15%[3]. - The company has established eight R&D centers globally, employing over 3,000 experienced technical personnel to enhance innovation capabilities[36]. - The company is committed to technological innovation and product upgrades as key drivers for development, aiming to offer higher quality, lower-cost, and better-performing products and solutions[98]. Operational Efficiency - Goldwind's operational efficiency, measured by availability rate, improved to 98% in 2023, reflecting enhanced performance of its wind farms[4]. - The company launched a new line of smart wind turbines, which are projected to reduce operational costs by 10%[3]. - The average utilization hours for wind power equipment in China increased to 2,225 hours, with an average utilization rate of 97.3%, up by 0.5 percentage points from the previous year[30]. Environmental Commitment - The company committed to achieving 100% green electricity usage in its global operations by 2031 as part of the RE100 initiative[21]. - The company’s green electricity trading volume increased sixfold compared to 2022, successfully assisting multiple Fortune 500 companies in achieving high proportions of green electricity consumption[51]. Corporate Governance - The company emphasizes the importance of corporate governance and transparency, with experienced executives overseeing compliance and strategic planning[115]. - The company has complied with all applicable provisions of the Corporate Governance Code as of the fiscal year ending December 31, 2023[175]. - The board consists of 3 male and 3 female members, achieving gender diversity[192]. Leadership and Management - The company reported significant leadership changes, with key executives holding advanced degrees and extensive industry experience, enhancing the company's strategic direction[116]. - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a diverse skill set and background[179]. Future Outlook - Goldwind's future outlook includes a focus on expanding its market presence and developing new technologies in the wind energy sector[117]. - The company aims to leverage its technological advancements to capture a larger share of the global wind energy market, focusing on innovation and efficiency[118].

Investment Rating - The report maintains an "OUTPERFORM" rating for the company, with a target price set at HK$4.85, down from a previous target of HK$6.44 [2][10]. Core Insights - The financial performance of the company was slightly below market expectations, with a revenue of 50.457 billion yuan in 2023, representing an 8.66% year-on-year increase. The net profit attributable to the parent company was 1.331 billion yuan, down 44.16% year-on-year. However, profits are expected to recover in 2024 as wind turbine prices stabilize [7][10]. - The gross profit margin (GPM) for the wind turbine business improved to 6.41%, while the GPM for the wind farm development business declined significantly to 47.30%, primarily due to increased development costs [8][9]. - The company has a strong order backlog of 30.4GW, with a focus on international expansion, particularly in North America, Oceania, and Europe, as well as emerging markets [9][10]. Financial Performance Summary - Revenue for 2023 was 50,457 million yuan, with projections of 56,781 million yuan for 2024, 62,601 million yuan for 2025, and 67,388 million yuan for 2026. The net profit is expected to rise to 2,390 million yuan in 2024, 2,827 million yuan in 2025, and 2,901 million yuan in 2026 [6][10]. - The company shipped 13.8GW of wind turbines in 2023, maintaining a strong market presence with 98.9% of shipments being turbines larger than 4MW [9][10]. - The equity installed capacity of self-operated wind farms reached 7,289MW, with additional grid-connected capacity of 1,793MW [10].