Goldwind Science & Technology Co., Ltd., a leading wind turbine manufacturer in A-shares and the world's largest, has reported a substantial growth in its third-quarter performance, with net profit surging over 170% year-on-year, primarily benefiting from an increase in sales of wind turbines and components.

Goldwind released its third-quarter financial report on Friday evening, highlighting the following key points:

Financial Performance:

- Q3 revenue reached 19.61 billion yuan, marking a year-on-year increase of 25.40%; revenue for the first three quarters totaled 48.147 billion yuan, up 34.34%. - Single-quarter net profit stood at 1.097 billion yuan, experiencing a remarkable year-on-year growth of 170.64%; net profit for the first three quarters amounted to 2.58 billion yuan, a 44.21% increase, with gross margin rising to 14.39%. - Operating cash flow recorded a net outflow of 633 million yuan, showing a year-on-year improvement of 90.27%, but remaining in negative territory. - Inventory surged by 46.01% to 21.65 billion yuan, while prepayments increased by 47.33%.

Core Business Progress:

- Sales capacity in the first three quarters reached 18,449.70 megawatts, a significant year-on-year increase of 90.01%. - Turbines with a capacity of 6 megawatts and above accounted for 86.06% of total sales, indicating continuous optimization of product structure. - As of September 30, total orders on hand reached 52,460.84 megawatts, reflecting a year-on-year growth of 18.48%; among these, overseas orders amounted to 7,161.72 megawatts. - The total external orders to be executed stand at 38,861.14 megawatts, with uncontracted won orders at 11,012.73 megawatts.

Substantial Expansion of Sales Scale and Orders Goldwind achieved external sales capacity of 18,449.70 megawatts in the first three quarters, up 90.01% year-on-year. Sales capacity for 6 megawatts and above turbines reached 15,877.15 megawatts, representing 86.06% of total sales and serving as the main growth driver. Sales capacity for turbines ranging from 4 to 6 megawatts totaled 2,550.05 megawatts, representing 13.82%.

In terms of revenue, the company achieved 48.147 billion yuan in the first three quarters, a year-on-year increase of 34.34%. Operating costs amounted to 41.218 billion yuan, rising 37.63%. The company attributes the growth in both revenue and costs mainly to the increased sales volume of turbines and components.

At an industry conference this week, Goldwind and several other companies set new targets aiming for an additional 120 gigawatts of installed wind power capacity annually over the next five years.

As of September 30, Goldwind had a total order backlog of 52,460.84 megawatts, up 18.48% year-on-year. This includes 38,861.14 megawatts of external orders waiting to be executed and 11,012.73 megawatts of uncontracted orders won. The overseas order volume is 7,161.72 megawatts. Turbines of 6 megawatts and above dominate the order structure, accounting for 31,659.79 megawatts of the external orders to be executed and 9,892.93 megawatts of the uncontracted orders won.

Significant Improvement in Profitability Gains from fair value changes have been a crucial driver of performance growth. The fair value change gains for the first three quarters amounted to 787 million yuan, an increase of 741.39% compared to the same period last year, primarily due to an appreciation in the fair value of other non-current financial assets held by the company.

Basic earnings per share were reported at 0.5969 yuan, up 45.83% year-on-year. The weighted average return on equity rose to 6.67%, an increase of 1.90 percentage points compared to the previous year.

In terms of investment income, the company reported 641 million yuan for the first three quarters, a decrease of 53.19% year-on-year, mainly due to a reduction in income from subsidiary transfers.

Goldwind's asset scale continues to expand, with total assets amounting to 167.307 billion yuan as of September 30, reflecting a growth of 7.78% since the beginning of the year. Inventory stood at 21.650 billion yuan, an increase of 46.01%, primarily driven by inventory purchases to meet order delivery requirements.

The net outflow from operating activities was 633 million yuan, a decrease of 90.27% compared to the same period last year, largely due to a year-on-year increase in cash received from the sale of goods and the provision of services.