Goldwind Sci&Tech Co H

Dear investors, good afternoon. Welcome to join us at Gold Wind 2025 Annual Renounce Earnings Call. Today, we have the executive members. First, Mr. Chodrikong, Board Director and President, and VP, Board Secretary and Company Secretary, Madam Ma Jinru, CFO Wang Hongyan, and Group VP and GM of Wind Power Industrial Company, Mr. Chen Qiuhua. Today, we have two parts in our earnings call. First, Madam Ma is going to walk us through the industry development, our performance, and future outlook in 2025. Then, CFO Wang Hongyan is going to walk us through the financial results. And then, we'll move on to Q&A. First, to Madam Ma. Thank you. Dear investors, thank you all for joining us today at the 2025 Gold Wind Annual Results. First of all, let me introduce the industry in 2025 First, let's look at the global market for wind power in 2025 The new installation is 169.2 gigawatts, up by 37.9%. Onshore, 161 gigawatts, up by 45.1%. Offshore, new capacity of 8.1 gigawatts, down by 30.2%. On the very right side, we can see by country breakdown, China continue to dominate the global installation. In 2025, China's new addition capacity accounts for three quarters of the global installations.

Now back to China. In 2025, the grid connection is 120 gigawatts and the onshore 113 gigawatts and 6.59 gigawatts from offshore wind power. At the end of 2025, China's cumulative grid connection capacity total 640 gigawatts taking 16.4% China's total power mix while thermal power declined to 39.6%. On the right side, you could see the electricity production. Last year, China used 10,368.2 billion kilowatt hours up by 5.0 year-on-year and among which we have 1,130 billion kilowatt of wind power representing an increase of 13% year-on-year and penetration rate of 10.9%, which improves year-on-year, but China still lag far behind benchmarking against other countries, EU and UK. Average penetration rate is about 20% in Denmark, more than 50 years for multiple years. Now let's look at the LCOE 2025. can see that utilization rate national average is 1,979 hours, which is utilization rate of 94.3%. And we could see that Shanghai, Fujian, Chongqing has reached 100% respectively in terms of the utilization rate. On the right side, you could see the level cost of offshore globally. Overall, we can see are all very advantageous compared to the global average, especially in the last two years. For China, we have an evolution which is alleviated and the price, especially onshore, is definitely back to order. That's why the LCOE onshore is very, very steady and offshore, LCOE declined slightly, however, If you look at the global average, especially non-China market because of the supply chain shortage. So in the last few years, the onshore actually globally is trending up. So if you look at China's LCOE, both onshore and offshore are both Let's now look at the tender and bidding in 2025. Domestic public tender market totaled 121.2 gigawatts, down by 26%, where you can see during 14th five-year plan, we definitely have saw very spiking growth. And onshore, we have 112 gigawatts and offshore 9.14 gigawatts by region more than 70% originates from northern part of China. On the right side, you could see the average bidding price per month. You could see the price is very stable, trending up month by month. On page seven, you could see the policy support from Chinese government issued in 2025, generally speaking. against the dual carbon goals. The NDRC NEA has jointly issued a number of policies deepening the market-oriented reform of on-grid power tariffs for new energy, and we definitely promoted green low-carbon transformation, enhancing the quality development of new energy development in four parts. We have listed a number of related policies. For example, on February 9th, the NDRC and NEA's notice on deeply market-oriented reform. I will spare the details here. So against that industry backdrop, let's check out on GoldWin's performance. In 2025, our performance, especially new installations has Then number one in China market and for 15 years and cumulative four years, the number one globally. And we have 165 gigawatts cumulative installation worldwide in 42 countries and regions. We have eight R&D centers and we participated in 600 standard setting globally. And in four parts, I'm going to share with everybody our business performance. All in all, Goldwind performance has seen robust growth. and the particular financial results will be shared by Mr. Wang Hongyan, our CFO. So let me just talk about the top line and our performance. First of all, first segment, the sales of WTG in 2025. Our external sale capacity is 26.626 gigawatts, up by 65.9%. And the proportion below six megawatts totaled 3,126 megawatts, totally 11.7%. And from six megawatts to 10 megawatts totaled 18,818 megawatts, taking 70%. And above 10 megawatts totaled 4,682 megawatts taking 17.6%. And of course, we definitely have 39.5 gigawatts of signed contract, 11 gigawatts of successful bid and 50.5 gigawatts of external order backlog. So company's total order backlog in 2025 year end is 53.7 gigawatts. And you can definitely see the additional 3.2 gigawatts of order was for our own wind farm. We also explored the global market. Our business is now in six continents, 49 countries. Our installation is in 42 countries, but our orders definitely spread across 49 countries by year end of 2025. Cumulative installation in overseas market is 12.599 gigawatts in 2020. and Zhaixing Zhe. Thank you very much. Thank you. Attributable grid connection capacity was 2,497 megawatts and a total of 588.45 megawatts was sold at home and abroad. At the year-end, companies' attributable grid connection totaled 9,951 megawatts, 39% domiciled in northwestern China, 24% in eastern China, 60% in north China, and 9% in northeastern regions. and 8% in Southern China as the year end of 2025 attributable under construction wind capacity total 2,521 megawatts on the right side. You could see the five regions break down. Let's now look at the utilization. On the left side, you can see our self-run wind farm recorded 2,290 hour utilization, which is 311 hours higher than national average. On the right side, you could see the wind power service thanks to our economy of a scale and experience of O&M. You can see by the year end of 2025, our under operation capacity reached over 50 gigawatts up by 26 year on year. We definitely have valued SDG. In 2019, we made the previous sustainable development and Zeng Li. Thank you. and the goals set by 2025. For example, in terms of compliance and honesty, we have been achieving Class A in 2025 information disclosure quality rating from Shenzhen Stock Exchange, and we also have a complaints and reporting closing rate up to 100%. You definitely can see the greenhouse gas emission per megawatt reduced by 55.1% compared to 2020. and hazardous waste generated per megawatt wind turbine manufactured is 78.1% lower than 2020 and water use intensity for production operation is 28.8% lower than 2020. We also have maintained carbon neutrality at the operational level in 2025 and 99% of our global production operations will be powered by green electricity. and Self-Generated Market Traded Green Power accounting for 57.2% of our total electricity consumed. And in 2025, we also delivered great sustainability industry chain goals. For Gold Wind, we believe to better evaluate our social responsibility means providing better quality service and products. Our principal products is WTG. By the end of last year, we have 12 evaluated 12-hour WTG lifespan, and we also had received the international product lifespan accreditation. You could see that the carbon intensity per kilowatt hour is pretty low, which is about three grams, so generally speaking. It's usually at more than 800 grams, so we're much lower than the traditional competitors. Our other products are also going through carbon footprint accreditation and evaluation. We also started the green industry chain recycling of our turbines to better deliver our corporate social responsibilities. Now over to you, Mr. Wang Hongyan, to walk us through our financial results. Well, respected shareholders, good afternoon. My name is Wang Hongyan, CFO of Gold Wind Science and Technologies. And thank you all very much for your sustainable interest and support to the company. So in the next 10 minutes of time, I'm going to report to you the financial results of the company in financial year 2025. As usual, I'd like to analyze all index and many more. Thank you very much. represents last year, and the dark blue reports the reporting period. Let's now check out on page 18, which is the consolidated profitability index, which involves four key indexes on the left side. You could check out the revenue of the company in financial year 2025. You could see in gray and blue representing our revenue in 2025, our revenue 73 billion, up by 16.3 billion, mostly as a result of WTG market demand, sales, and our business acquisition. On the right side, you could see the profit margin. Also, you could see quarter-by-quarter profit margin performance in 2025. Consolidated profit margin is 14.18%, up by 0.38 percentage point. And the profit is up by $2,774 million. This is definitely as a result of the good strategy product mix optimization for WTG business, which definitely help us to improve our revenue. On the left side, you could see the attributable net profit totaled $2,774 million, up by 49.12%. It is a result of how we improve our cash-making ability, profit margin improvement, and expenses reduction. On the very right corner, you could see the weighted average return on equity, ROE, in 2025. Our weighted ROE is 7.08%, up by 2.17 percentage points, mostly as a result of growing revenue and and many more. Thank you. Thank you. In page 19, I'm going to report on our segment results as Madam Ma has just introduced. For WTG manufacturing and sales, revenue grows dramatically, especially the offshore business has increased, which optimized the profit margin. and Total Sales. The second part is the wind farm development. The revenue and profit margin year on year also changed. One slightly declined and the other increased. So you can see that the revenue from the wind farm development has definitely decreased, but the profit margin improved. If you look at The third segment, wind power service and other businesses, which is pretty flat versus 2024. So you can see our budget is well executed and pretty aligned with the business performance. Moving on to page 20, which is the operation index on the left side, you can see days of trade receivables. Three improvements. Number one, at the end of 2025, the balance is 23 billion accounting for 19% of our total assets improved by one percentage point. And the days of receivables versus our total assets also improved. And also the days of trade receivables was 158 days, much improved on basis of 2024. So you could see that The three improvements in all this data, on the very right side, you can see days of inventory and contract assets. At the end of 2025, we have inventory and contract assets totaled $17,267 million, taking 10% of total assets, and the days of inventory and contract assets was 97 days, improved by 25 days. So if you look at the operating efficiency of inventory and the contract assets, it's much improved because of our delivery, lead time improvement, and precise execution of our strategy. Now let's moving on to page 21 on solvency. On the left side, you could see the interest-bearing debt. We can see from the pie chart that In 2025, the absolute value of the interest-bearing debt has declined, which in 2025 from Q1 to Q4 has been improved. And in the same time, the internal structure of the interest-bearing debt has been optimized, which helps the company to reduce our financing costs. which definitely created the most preferential financing cost for the company. In the same time, if you look at the total credit granted also improved significantly, which laid a solid capital guarantee for future development. On the very right side, which is very meaningful, it's on asset liability ratio in 2025, our ALR down by 0.3%. and many more. Thank you very much. and Zhaixing Zhao. In the last part, we could see the cash and net operating cash flow on the very left side. You could see the cash and total assets. In 2025, our cash balance versus the total assets has been much improved. This is a result of our main management of our capital. On the very right side, you could see the net operating cash flow. In 2024, throughout 2025, our net operating cash flow is very aligned with the seasonal usuals. whether negative or positive, it is aligned with the industry's performance. But you can see 2025, the operating cash flow fluctuations actually narrowed down, which means the stability of our cash is improved. This definitely safeguards the security of our cash, but also improved the operation efficiency of our company's cash balance. So from cash flow results, I can see that the growth rate of our net operating cash is outperforming the revenue growth and attributable net profit in 2026. We'll continue to launch the lean management of our cash capital to make sure we have stable, healthy, sufficient cash balance. That's all for me on 2025 financial results. Great. Let me now take over from Mr. Wang to talk about the outlook. For global wind power outlook, here we definitely quote from IEA and GWEC's forecast. Simply said, IEA believes that from 2025 to 2030 period, the new install capacity globally will reach 4,600 gigawatts and cumulative new onshore will be 732 gigawatts, up by 45%. And on the right side, you see GWATS forecast. They believe from 2024 to 2029, the CAGR for global offshore wind capacity addition will be 28%. And from 2029 to 2034, the CAGR is going to reach 15%. In China, in the 15th five-year plan, the government outlined the goal of accelerating development of a clean, low-carbon, safe, and efficient energy system. And, of course, by 2030, non-fossil energy will account for 25% of total energy consumption, and Chinese government also talk about the and Jinshan Gao. And then, the next slide, please. is the beginning of the 15th five-year plan. Last year, the company has looked at the global industry development and the industry trends to revise our new five-year plan. We focus on four areas, especially green, environmental, operation, compliance, and and Zhaixing Zhao. and by 2031, 100% of our global production operation will be powered by green electricity. By 2030, the carbon emission intensity of core components of our generator units were down by 8% with 2025. We also have other goals like recyclable turbines and 100% construction waste and packaging materials recycled. All in all, Gold Wind has really value ethics and compliance and looking for sustainable development. In the last few years, the company has definitely delivered excellent job on ESG fronts. We definitely have been highly recognized by our stakeholders in and out of the industry. During the 15th five-year plan, Goldwing has set ambitious ESG goals to better respond and protect our stakeholders' interest. That's all for me. Thank you all.