Goldwind Sci&Tech Co H

Ladies and gentlemen, welcome to join us for Goldwind 2024 Q3 updates. All the participants are in muted mode. Now let's welcome the moderator, please. Dear investors, good afternoon. I'd like to welcome you to join us for Goldwind Science and Technology 2024 Q3 Result Announcement. Joining us here today are VP Board Secretary and the Company Secretary, Madam Ma Qinru, CFO, Mr. Wang Hongyan, Group AP, and the GM of Wind Power Industrial Company, Mr. Chengqiu Hua. Ladies and gentlemen, the meeting will be divided into two parts. First of all, we're going to welcome Madam Ma to work you through Q3 development and operationals. Then we're going to have Mr. Wang Hongyan to work you through the financials. And then we will get into the Q&A session. Now let's welcome Madam Ma, please. Distinguished Investors, I would like to thank you for joining us for this meeting, and thanks for your committed support to Goldwind Science and Technology. First of all, please allow me to walk you through the industry and our business. Let's take a look at the industry first. Now, if you have a slide in your hands, please go to slide three. On slide three, on the left side, it shows the global annual new installation which has already been disclosed in the interim result. But on the right side, that is the wind power energy become the best economy renewable energy source, especially if you see from 2010 to 2023, the liberalized cost of global onshore wind power is declined by 70%. It went from 0.111 USD per kilowatt hour to 0.033 USD per kilowatt hour. But in China, the price is already 0.027 USD per kilowatt hour, but at the same time, The levelized cost of global offshore wind power declined by 63% from 0.203 USD per kilowatt hours to 0.075 USD per kilowatt hour. With China, the number was 0.07 USD per kilowatt hour in 2023. If we take a look at the wind power development in China, in the first nine months of 2024, Generally speaking, China recorded 39.1 gigawatt of the newly grid connection, an increase of 16.8%. By the end of September, China's cumulative grid connected wind power accounted for 479.6 gigawatts, hitting 15.2% of China's power mix, while the thermal power was 44.9%. On the right side, we show you the electricity production, as well as the digitalization hours. Majority of those data is available in our interim results. I'm not going to elaborate on that further. Please go to slide five. Slide five shows you the public tendering and the price. You can see by the end of September, domestic public tender market totaled 190.1 gigawatt, grow by 93% on worldwide basis. Onshore, 111.5 gigawatts. Offshore, totaled 7.6 gigawatts. So great momentum's been registered for public tender market. We are on the right side. By the end of September, the overall average bidding price of all WTHG suppliers is around 1,475 per kilowatt. We are in P03 of ACS, There are also some new policies being rolled out regarding energies and the new development. For example, on August 2nd, 2024, the General Office of the State Council issued a work plan for accelerating the construction of a new control system for carbon emission. And on the August 6th, 2024, the National Development and Reform Commission has already released action plan for accelerating construction of a new power system. Along with the implementation plan for larger scale equipment are based in key energy sectors on 21st of August. Along with the new policy, rules for the insurance and trading for green power certificate for renewable energy on the 26th of October, all the policy issues greater commitment and the support in developing new energy industry by the central government. On the right side, we show you advancing the advancement of wind power in rural regions. Following the notice on organizing the wind power actions in rural regions, later Anhui, Gansu, Shaanxi, and other regions released the action plans. Especially in August of 2004, the General Office of NDA published the notice regarding the issuance of the outline for the appropriation for the overall plan of the wind power actions in rural regions. The notice indicates national energy regulatory authorities to establish a regular scheduling mechanism for comprehensively overseeing the implementation process of the rural wind power projects. Now, let's take a look at the business review of the company. On slide eight, we show you the sales. From January to September, our external sales capacity totaled 9,709 megawatts, up by 9%. we have very few WTG under four megawatts, where we have more cells regarding the WTG above four megawatts, already reaching 5,596 megawatts, where for WTG between four megawatts to six megawatts, the cells totaled 4,042 megawatts. Well, let's take a look at the backlog we have. Well, by the end of this year, We have a historical high order backlog, ranging 44.28 gigawatts, among which 41.38 gigawatts are for external orders, including about 0.91 gigawatts for successful bidding and 29.47 gigawatts for side contracts. And there are also some external order leaks we can generate your concern for. You can see that around 73% of the W2Gs are actually above six megawatts. Well, for our global business, we also registered very smooth extension, where for Asia, we continue to extend the global market, especially in Morocco, in Philippines, in Georgia, and in Namibia, we extend our business successfully. Our business covers six continents and 42 countries worldwide. By the end of Q3, cumulative installation in overseas market is already more than 8,000 megawatts. In North America, Australia, and South America, the installation already exceeds one gigawatt. In Asia, including China, it's already more than two gigawatts. And our order backlog in overseas market is around 5,536 megawatts. Let's now take a look at wind power generation. By the end of Q3, our attributable grid-connected wind power projects totaled 8,138 megawatts, and around 48% being located in northeast part of China, where the company added another 1,122 megawatt for attributable grid-connected wind power capacity, home and board, from January to September 5th year. And we also have a capacity under construction. So in that way, you can see that here now, and our total went from record 1,784 hours of utilization. Okay, let's go next.

Let me welcome Mr. Wang to work his way through financials. Dear investors, good afternoon. My name is Wang Hongyan from Goodwind.

I'd like to thank you for keeping an eye on the wind farm industry and thanks for supporting Goodwind. Let me just work you through the Q3 financials. Well, we have characterized the financials into three parts, four parts. First one are for profitability index. Second one are operational index. We're also going to show the solvency position and the final part, we're going to talk about the cash flow. Well, for the four parts, I'm going to use a very different color in helping you to understand the performance. The light blue represents the performance of the full quarters in 2024, and the dark blue color represents the first three quarters of 2024.

Let's take a look at, on the left upper corner, we show you the revenue of the company.

Generally speaking, you see the full year revenue of 2023 and the first three quarters revenue in 2024. You can see that in the first three quarters, our total revenue totalled $35,839 million, where on the right side I showed you the profit margin. But same as the full year of 2023 and first three quarters of 2024, you can see in 2024 for the first three quarters, the comprehensive profit margin was 16.43%, up by 2.21% on one-one basis. But I'd like to make a special announcement or clarification. During the interim results, we have already shared with all the shareholders After adjusting, the profit has been improved by 2.21%. So last year, we did the confirmation tables for your reference. On the left-hand corner, which is the net profit attributable to owners of the company, it was increased by $531 million. Well, you can see that general speaking for net profit attributable to the owners, It was $1,792 million, while at the same time, our assets empowerment reduced by $120 million, further improving the equity efficiency, while at the same time, the fees being reduced by $260 million continued to optimize our profit structure and the tax structure. On the right-hand corner, the weighted average return on equities improved by 1.45%. As we continue to grow the net profit, the ROE is being further optimized. So in the first three quarters of the company, our revenue net profit margin, net profit margin, as well as ROE truly performed in line with our growth momentum. Compared with the same period of last year, we now have a more robust and healthy margin need. On slide 14, I show you the operational index. On the left side, we show you the days of the trade receivables. You can see here now, we still have a very stabilized trade receivable ratio. It is around 80, 90, or 20 percent, respectively, in the three quarters of this year. While at the same time, the days of the trade receivable was 184 days, still healthy, but still fitting a gap compared with our target. We are trying very hard to improve the receivable management. We'd like to hit our internal efficiency improvement plan. Where on the right side, we show you the sales of the inventories, excluding our new product that is power station business. The actual inventory to total asset ratio was 8.86%. The inventory 10 over days was 95 days. They're in par with what we saw last year. Compelled with our inventory management target, there's still a gap regarding the turbine delivery circle and the construction circle of the power station. We are trying very hard in improving the inventory management and continue to hit our efficiency optimization target. On slide 15, we show you the solvency position along with the structures. On the left side, we show you the interest about wind out you can see interest-of-value in debt and to the total liability, it used to be 55% in Q1, then we optimized to 51% in Q2 and 48% in Q3. So the matter from the interest-of-value in debt perspective or the structural perspective is much better than the industrial average, which can also help us to further navigate the business and financing capacity, but at the same time, the interest above in debt continues to go down, and our loan interest rates continue to go down, starting from 2021 to now. And for the company, we are going to have a great guarantee for our future development regarding interest above in debt. On the right side, for assets and our business ratio, at the beginning of this year, it used to be 71.44%. and the total assets used to be 143.5 billion. By the end of Q3, the not given ratio was 33%. Total asset was 156.3 billion. The asset liability ratio went up slightly. The reason is because our existence model continue to pressure the asset liability ratio. where for sure the company also took active measures in responding to the ever-increasing asset liability ratio. For example, we continue to optimize business model, accelerate the product delivery, and also continue to improve the receivable collection. But at the same time, we further improve the trading of the power plantation And we also continue to improve the efficiency for the receivables and inventories management, which I have already mentioned just now. And we also continue to improve the non-current asset efficiency, including the capital expense. So all in all, with the financial risk being well controlled, by the end of this year, we will be able to well control the asset-to-profit ratio to a healthy level. For slide 16, we show you the cash flows. On the left side, we show you the cash to total asset ratio. Cash to total asset ratio was 6.99%, which indicates a great decline. This is because we continue to improve the safeties and the equities. We also received reserve for these principles. Well, you can see that for each quarter, our financing reserve should be no less than 12 billion, so that's the reason we will be able to always guarantee the reserve, which can help to further reduce the cost. On the right side, we show you net operating cash flows. We can see in Q1, Q2, Q3, at least the trend is in line with what we saw last year. In H1 of Asia, we have the power station inventories, which lead to more external expenses. But in Q3, we have a single month positive performance. And in Q4, we're also going to register positive performance. And for the full year, our operational cash flow is going to hit the company expectations. That's all for the financials of the Q3 performance. Thank you very much.