Goldwind Sci&Tech Co H

Good afternoon. I'd like to welcome you to join us for Gold Wind Science and Technology 2025 Q1 results. The management team joining us here today are President of the company, Mr. Cao Zhigang, Madam Ma Junru, VP Board Secretary and the Company Secretary, Mr. Huang Hongyan, CFO, and Mr. Chen Qinhua, Group VP and the GM of the Wind Power Industry Group. The meeting will be divided into two parts. First of all, we will invite Madam Ma to work you through the Q1 industrial trends and the company's operationals. Then we will have a CFO, Mr. Wang Hongyan, to work you through the Q1 financials. And then we will get into the Q&A session. Madam Ma, please. Okay, great. Thank you very much. Dear investors, good afternoon. I would like to welcome you to join us for the Q1 performance release. Please allow me to work you through the industry and the business review. Let's first go to slide three. The global new installation in 2024 was 121.6 gigawatt, grow by 3.9%. With onshore wind power 109.9 gigawatt, grow by 3.7%. Offshore wind totally 11.7 gigawatt, increase by 6%. On the right side, you can also see the new installation country distribution. You can see that in China, China new installation accounted for 70% of the global new build. Let's go back to China. In Q1 of 2025, China record 40.6 gigawatt of the new grid connection down by 5.7%. At the end of 2025 Q1, Cumulative grid-connected grid power capacity was 535.4 gigawatt, taking 50.6% of the power mix. Thermal power declined to 42.3%. We also see that the power generation and the production continue to go up. On the right side, we show you the 2024 data. But let me just share with you, in Q1 of 2024, total power consumption in China reached 2,384.6 billion kilowatt hour. But we don't have any new data regarding Q1 as a whole. Let's also take a look at the public tendering in Q1 of this year. Total 28.6 gigawatt grow by 22.7%. So we can see the public tendering market was booming, still growing significantly compared with the high baseline last year. Onshore public tendering, 27.8 gigawatts. Offshore, 0.8 gigawatts. On the right side, we also show you the monthly public bidder in price. You can see that in March, the price was 1,590 RMB per kilowatt. Starting from January of the year, the government continued to roll out the policies for low-carbon and green development. First of all, energy law of the People's Republic of China came into force. supporting the renewable energy development. And secondly, the New Energy of Greater Tariff and promoting high-quality development of new energy. Well, at the same time, in February of this year, the NEA also issued the Guiding Opinion of 2025 Energy Work, proposing by the end of 2025 you can see that the non-fossil fuel power generation is going to improve to 60%. The non-fossil energy in total power consumption needs to be increased to 20%. At the same time, the scale of the new energy power generation device will grow by 200 million kilowatts. All those policies are going to improve the overall development of the industry. Then let's take a look at our business review of the company. Let's first take a look at our turbine business of UTG. You can see in Q1 of this year, the total external sales was 2,587.65 megawatt, growth by 80.16%. WTG 6 megawatts was more than 1,823.7 megawatts, taking 70.47% of the total. WTG 4 to 6 megawatts was 760 megawatts. We don't have too much for the WTG lower than 4 megawatts. So taking a look at the wind turbine order backlog, in Q1 of this year, we record a new historical high, 51.09 gigawatt, external one, 48.6 gigawatt, including 9.42 gigawatts for successful bidding and 39.90 gigawatts for side contract, where at the same time we have 2.47 gigawatts for company-owned wind farm development projects. By the end of Q1, Our external order for the overseas market was 6,909 megawatt, grow by 26.1% on wildlife basis. And you can also see that we do see very nice growth momentum for the international market order growth. On the right side, we show you the external order mix. Especially for W2G, more than 6 megawatts is already more than 70% of the total external order. Let's also take a look at the wind farm business. By the end of March, greater connected wind power projects totaled 8,043 megawatts. In Q1 of this year, our attributable under-construction wind capacity at home and abroad was 4,117 megawatts. In Q1 of this year, the self-run wind farm record 635 hours of utilization, 57 hours higher than the national average. On the right side, we show you the grid connection by region, and you can also see that still the northwest China, north China, and east China be the key contributor. Okay? That's all about the industry and the business. Coming next, let's welcome our CFO to work you through the financials. distinguished shareholders and investors, good afternoon. I come from Goldwind. My name is Wang Hongyan. Thank you very much for joining us here for the Q1 results release. Please allow me to walk you through the financials of Q1 of 2025. In Q1, there are four parts of the financials we are happy to present to you. The first one is the profitability index, and then the liquidity debt, as well as the capital... monetary funds and operational cash flow. So let me just follow the practice. The light color represents the previous years, and the dark color represents the performance we made in this year. On slide 12, the slide actually shows you the profitability index on the group level, and it still involves four indicators. On the left upper corner, that is our revenue. In 2024 Q4 and in 2025 Q1, the different color bars represent the performance from different quarter from 2024 to 2025. In Q1, the revenue was 9.47 billion, grow by 2.49 billion on worldwide basis. The incremental revenue growth are coming from the W2G segment. where on the upper right corner, you can also see the profit margin showcasing the full quarters in 2024 and Q1 of 2025. So we can see that the comprehensive profit margin for Q1 2025 was 21.78%, down by 3.11%. But we clearly notice in Q1 of 2025, our total GDP margin was growing by $326 million, reaching $2.063 billion. Majority of the GDP margin increase are coming from WTG business. On the left-down corner, we also show you net profit attributable to the owners of the company. And in Q1 of 2025, net profit was $1.568 billion, growth by 17%. The reason is because we see the minor growth in gross profit. So the profitability overall is further improved. On the right-hand corner, we show you the weighted average return on equity. In Q1 of this year, weighted average return on equity was 1.48%, grow by 0.62%, grow by more than 70%. The key contributors are still because of our growth net profit. And for this year, we surely believe our weighted average return on equity will continue to register strong growth momentum. On slide 12, you can clearly see that in Q1 of 2025, no matter for revenue or for our GP margin or the GP margin rate or the weighted average return on equity, they are indeed in line with our forecast. In other words, profitability continues to be improved. Let's now go to slide 13. Slide 13 shows you the operational index, indeed, the liquid asset indicators. On the left side, we show you the days of the trade receivables. In Q1 of this year, trade receivables accounted for 20% of our total asset, below by 2%. And the Trade receivable days was 174 days, grow by two days again, which failed to achieve our receivable performance target. In 2025, we will continue to improve our receivable collections, especially including the shorten the delivery time of the actual and overseas projects and continue to improve the receivable performance in 2025. On the right side, we show you the days of the inventory and the contract assets. You can see that in Q1, actually, we see nice improvement, no matter for days of inventories or the contract assets. But for sure, for the company, we have a very special business model, that is the power plant business. If we're deducting the power plant or the wind farm business, the power plant business wants to be excluded, then we deliver inventory to the total asset ratio would be further improved. Okay. Please help to go to slide 14. Slide 14 showcasing the solvency positions of the company. On the left side, you see interest borrowing debt. In Q1 of this year, interest borrowing debt was 43% of the total liability. Actually, a flat growth compared with the same period of last year. But altogether, we downsized the interest borrowing debt by 1%. $5 billion. In other words, the interest borrowing debt is being further optimized. So at the same time, the use of the proceeds and the funds is being further optimized. On the right side, we show you the assets liability ratio. By the beginning of this year, it used to be 33.96%. And the total asset was $155.2 billion. But by the end of Q1, Those data reach 73.05% and 159 billion of the total assets. Assets liability ratio continue to go down, and we will be able to well control the debt ratio. In 2025, well managing the debt ratio would be a key task of the company. On one side, we hope that we can continue to improve the delivery circle, well control our expenses, and also control the size of the interest value and liabilities continue to improving the structure of the debt, where at the same time for the equity assets, especially long-term equity assets of the parent and the subsidiary companies, we hope that we will be able to take the measures to continue to further improve the asset liability ratio. So in one word, in 2025, we will continue to optimize and downsize the asset liability ratio. And the final slide, we also would like to show you the cash flow. On the left side, we show you the cash to total assets situation. By the end of Q1 of 2025, the cash to total asset ratio was 8.75%. Improved a lot on a worldwide basis. The key reason is because in Q1, the We have the prepayment of the wind turbine due to the rush to build. But at the same time, there are some operational funds preparations for Q2, as well as the reserves being made for capital expenditures. So that's the reason you see monetary funds holding continue to go up. Where on the right side, there is a net operating cash flows. In China, because of the central government regulation, the rush to build in China is continue to go up with significant improvement. So that's the reason in Q1 of this year, the economic tax flow, especially the inflow, continue to go up dramatically. That is our financials in Q1 of 2025.