Goldwind Sci&Tech Co H

Good afternoon, welcome to join us this call the 2026 first quarter results for Gold Wind Science and Technology Company. Joining us we have Mr. Zhao Zhigang board director and president, Ma Jingyong board secretary and committee secretary, CFO Wang Hongyan and also group VP MGM of wind power industry Chen Qiuhua. We're going to have and Ma Jingwu to talk about the first quarter industry update and review. Officer Wang Hongyan will go through the Q1 business review. And finally, we're going to take your questions. Now, over to you, Ms. Ma. Thank you. Investors, good afternoon. Thank you so much for joining this call for the Q1 earning results. So, first of all, about the industry review and business review. In terms of the industry review, this is the global annual installation in 2025 and the distribution across different countries. Not much update there, so I will skip there. So back to China. In the first quarter, the on-grid capacity was 15.8 gigawatts, up by 10.9% at the end of March. total wind power on grid capacity was 655 gigawatt, which is about 16.5% of total energy in stock capacity, while thermal power dropped to 39.2%. And also in last year, the total power consumption was actually 103,000, sorry, so 10 trillion kilowatt hours by 5%. and also we have seen pretty much flat in terms of the tender. We are down by 2.2% the first three quarters, first three months this year, 28 gigawatts. And you can see on the right, the open tender average price pretty much stabilized. And now I'm listing the Q1 industry policies. Now, First of all, it has to do with the power market, in terms of the market, the power market development on the January 30th, NDRC Energy Administration published notice on improving the Gensai capacity tyrant mechanisms, and February 11th, State Council published opinion regarding the unified power market system. And the other two has to do with green and low carbon objectives, which on this March 5th, the 2026 policy address talking about development green carbon ecology economy on April 13, the publication of opinion regarding the shipping green and low carbon transition. On the right, this is the code of ecological environment. The code further specify the general requirement of green low carbon development. developing circular economy energy conservation agreement and carbon transition to cope with climate change as the target which will be effective on the 15th of April sorry August this year including development of wind power solar as well as the consumption mechanism for renewable energy building a new type of power system and also promotion of the green energy consumption so in that kind of backdrop let's turn to our business review In the first quarter, we have external cells capacity of 6,040 megawatts, up by 133.45%. Below 6 megawatts, which is 9%, 6 to 10 megawatts was 4,312 megawatts, accounting for 71%. 10 megawatts and above was 1,173 megawatts, about 19%. So at the end of the Q1, we have all the backlog of 53.9 gigawatts, including external order, 50.7 gigawatts. So in terms of external order, tender wind was 9.5 gigawatts, and the signed contract was 1.2 gigawatts. And also at the end of first quarter, our internal demand was 3.2 gigawatts, mainly for our self-run wind farms. So you can look at the pie chart in terms of distribution. You can see, again, the main component was 6 to 10 megawatts. So this is our international business footprint as of end of Q1. Our business international capacity exceeds 13,000 megawatts. Asia, excluding China and South America, exceeds 3 gigawatts. and also in Africa, Oceania over two gigawatts, North America, Europe over one gigawatt at the end of Q1. The quarterback overseas was nine gigawatts. So this is the wind farm on the left. This is the wind farm. And you can see Q1. Newly added equity capacity was 177 megawatts. We have disposed 102 megawatts of wind farm. End of March, our self-run wind farm equity capacity exceeded 10 gigawatts. 39% were domiciled in Northwest, 24% domiciled in East China, 16% domiciled in North China. The other was in single digits. End of Q1, our total capacity under construction in China and overseas was about 3 gigawatts. So in the first quarter, the average utilization hour of our cell wind farm was 549 hours on the right. You can see the distribution of the capacity of grid connection. We already touched upon that. So that was the business review. I'm going to hand over to Mr. Wang for the financial review. Good afternoon. I'm Wang Hongyan, CFO. Thank you so much for joining this earning call for the first quarter. I'm going to report to you the 2026 Q1 performance. So again, we're going to talk about four areas. Firstly, we're going to talk about the consolidated profit and loss and mainly the, you know, the current assets, profitability, operating index and solvency and cash flows. So in the chart, we're looking at the gray was actually the previous quarters and the blue part was Q1. This is on slide 13. This is a consolidated profitability index. You can see we have a good beginning of the year. On the top left, this is the operating revenue. You can see the gray bar represents the quarters in 2025, the blue bar represent Q1 in 2026. And the Q1 revenue was 15,485 million RMB, which is increased by 64%, mainly from the wind turbine manufacturing increase and also implementation of strategy. And the revenue is actually heading the record and for the first time we have over 10 billion RMB in a quarter and then we have the gross margin in 2026 the first quarter margin was 16.76% which is the year-on-year decline but this is really because we have higher revenue of wind turbine generator so this is the first thing to watch and secondly the margins 2.5 billion increased by 533 million by you know a lot so the increase has to do with the business improvement in 2026 first quarter again this is the highest quarter in terms of gross margin dollars and net profit margin in the first quarter the tributary net profit 907 million increased by 59.65%. Improvement in product comes from two sides. First of all, higher GDP margin, certainly, and also lower non-recurrent, you know, cost. And also the weighted average ROE in Q1 was 2.23%. which is up by 0.75% year-on-year thanks to the higher net profit margin and also improvement of business mix so the average ROE continue to improve so that was a very important for profitability metrics and then turning on the 14th slide which is the on the operation metrics. The account receivable was 33.9 billion, account for 20% of total assets. Account receivable as well as the turnover days has been improving. The operating efficiency has been improving. So this is really thanks to our management, the full cycle management of account receivable. putting customer in the center, working with the banks, and also optimizing the incentive mechanisms, achieving synergy so that we have significant outcome of improvement on the ride. We're looking at the first quarter inventory and contract asset balance, 17.5 billion RMB in total, which is reduced. It's now accounted for you know, 10% of total assets. So which means operating efficiency improvement also thanks to firstly, you know, management of turnover lead time and also improvement of the deliveries. And now turning to the next slide, which is the solvency metrics. In the first quarter, our interest bearing debt was five billion slightly down, slightly up, sorry, just slightly down year on year, which has to do with the business schedule, which is in line with the business schedule, because right now we have an abundant credit line. So we have a reasonable debt ratio and we have a robust funding capabilities. On the right, we are looking at the At the end of Q1, the asset liability ratio, which is 71.1%, as you can see, year on year, Q on Q will have significant reduction of the liability ratio, thanks to the asset liability and equity structure improvement, and also goes to show our financial management in terms of robustness and effectiveness. For the full year, We will continue to promote the leveraging to leading the continued decline of asset liability ratio. Lastly, slide 16, which is the cash flow and operating cash flow on the left. So this is the quarterly cash flow in the last five quarters. At the end of first quarter's year, the balance was 11.3 billion ratio cash total as of 6.72% so we'll continue to see significant improvement thanks to our efficiency in the overall management on the right this is the quarterly operating cash flow in 2025 and Q1 this year so two features first of all there's a seasonality there and also The net cash outflow has been narrow year-on-year, so the cash efficiency has been improved. Of course, also thanks to our refined management of the cash, the learning cycle, matching the revenue inflow, and for the full year operating cash flow will continue to maintain healthy, stable, and sufficiency. So that was the overview of financial performance in the first quarter this year. Okay, thank you very much.