Goldwind Sci&Tech Co H

Dear investors, good afternoon. Welcome to join us at Gold Wind 2025 interim results announcement telephone call. Today joining us, including Mr. Cao Zhigao, VP and Vote Director, VP, Vote Secretary and Company Secretary, Ma Jinru, CFO Wang Hongyan, and Mr. Chen Qiuhua, Group VP and GM of Wind Power Industrial Company. Now, Madam Ma Jinru is going to walk us through the industry development and companies operation for first half of 2025. And then Mr. Wang Hongyuan is going to walk us through the financial indicators and then we'll kick off our Q&A. Madam Ma, please. Thank you. Am I audible? Okay. Dear investors, good afternoon. Welcome to join us at 2025. for wind 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 can see. Previously, we have updated it on the Bloomberg global data, but now GWEC, as a professional council, they have more authoritative data Global new installation was 117 gigawatts. Onshore wind, 109 gigawatts. Offshore wind totaling 8 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 21 to 2024, the LCOE of onshore power declined by 70%, whereas in China, it declined by 68% from 2010 to 2024. Now, the global LCOE is 0.034 U.S. dollars per kilowatt, and in China, it is now 0.029 USD 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 offshore wind power LCOE also declined by 72%. Let's look at grid connection. In first half of 2025, China recorded 51.4 gigawatts of new connection increase by almost 100% of which onshore, 48.9 gigawatts and 2.5 gigawatts for offshore. As of June 2025, China's cumulative grid connection for wind power totals 572.6 gigawatts, taking 15.7% in China's power mix, where 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 first half of 2025, has used total power with 3.7% year-on-year increase, where power, wind 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 1,087 hours, 47 hours decrease year-on-year. Let's look at the public market tender market in 2025 first half. You can see that the market totaled 71.9 gigawatts in first half 2025, 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, 5 gigawatts. By region, of course, northern part of China accounted for 77%, while south part 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 end of June. The overall average bidding price of all WTG suppliers in the market recorded 1,616 per kilowatt. And in first half of 2025, in China, we have multiple policies to support wind power. Of course, there are energy policy updates. In January 1st, 2025, the energy law of PRC came into effect proposing to improve the energy development, utilization policies, optimizing energy supply, consumption structure, and promoting clean and low-carbon energy. On January 7th, 2025, NDRC issued the National Unified Market Construction Guidelines proposing establishing a national unified energy market system. On February 9th, 2025, NDRC and AER jointly issued notice on deeply market-oriented reforms onward 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 onward 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 27th The NEA 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 March 5, 2025, government work report, it also proposed steadily advanced carbon peaking and carbon neutrality, establishing the zero carbon parks and factories. In May 25, 2025, the State Council also had reviewed and approved 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 March 6, 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 April 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 million kilowatt adjusted capacity provided by virtual power plants by then. By May 21st, NDRC also issued a notice on developing green power direct connection proposing to strengthen the overall building of the market. All these policies will definitely facilitate a low carbon energy like wind power's 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 first half of 2025, we have external cell capacity of 10,641 megawatts, representing increase of 106% year-on-year, build capacity of WPG 6 megawatts and above totaled 8,672 megawatts, taking 81.5% of total sale, and that of 4 megawatts to 6 megawatts taking 18.3%, and below 4 megawatts taking 0.2% of total sale capacity. If you look at the order backlog, we could see the total order backlog was 54.8%, 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 4 megawatts, accounting for 1%, between 4 to 6 megawatts, accounting for 15%, for about 6 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 2 gigawatts. In Asia, exceeding 2 gigawatts. As of June 30th, the order backlog in overseas market totaled 7,360 megawatts. If you look at the grid connections, The 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 8 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 first half of 2025, our self-grown wind farms recorded a 1,255-hour utilization. That is 168 hours higher than that of national average. Let's look at the wind power service business. By June 30th, 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 2035 first half financial index. On page 15, you could see that the consolidated revenue

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 2020 for four quarters and in 2025. Our revenue is very historically high, which is definitely attributable to our WTG manufacturing. Our revenue totaled 21.852 billion. If you had the profit margin, it is the 15.35%, which is much higher than the second quarter. If you look at the gross profit increased by $693 million, mostly coming from the WPG manufacturing business. On the left side, you could see the net attributable profit, which totalled $1,488 million, $110 million increase year on year. Mostly, it's a much improvement because of the optimized business operation. If you look at the ROEs, the weighted average return on equity in the first half of 2025 is 3.85% up by 0.12 percentage point. Why? Because of our net profit increase. Of all quarters in this year, the weighted average return on equity will optimize It is because of the first half in 2025, if you look at the revenue, the profit margin, 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 Madam Ma has briefed. First segment is our WTG manufacturing and sales revenue is 21,852 million, and our margin is 7.9%. So in first half of 2025, our WTG manufacturing and sales business structure is much improved, which delivered us a scale-based performance, and wind farm development revenue, $3,172 million, and profit margin, 57.5% 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, $2,896 million, 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 been 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 end of June 2025. Trade receivable taking 21% of total assets increased by 2 percentage points, where the days of trade receivable is 173 days, much more improved because of our revenue increase in 2025. We will continue to improve our days 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 asset in first half of 2025. Inventory and contract assets account for 12% of total assets down by 2%. And the days of inventory is 130 days, much more improved compared to first quarter of 2025. On page 18, You're going to look at the solvency position on the left side. You could see the interest-bearing debt. End of 2025, companies' 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 improvements. On the right side, you could see the asset viability ratio in the beginning of the year debt ratio was 73.96%, whereas in first half 2025, the assets liability ratio is 73% totaling 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 15th five-year strategy so that we could further improve our asset viability ratio. While we are mitigating financial costs proactively, we want to make sure the sound health of our asset viability ratio. The last page is our cash flow, especially the net operating cash flow on the left side. You could see our cash in first half of June 2025, total ratio of cash to total assets is 5.93%. Year-on-year, it's very flat, and quarter-by-quarter, it is 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. 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 2.9 billion. 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 31st policy and the last year of the 14th five-year plan and the increase of the overseas orders. So in first half of 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 shareholder support. Thank you.