Goldwind Sci&Tech Co H

Respected investors, good afternoon. Welcome to JOIN Gold Wind Science and Technology 2026 Interim Results Announcement Webinar. And joining us are management members, Mr. Cao Zhiguang Board Director and President, VP Board Secretary, Ma Jinru, and CFO, Wang Hongyan. And today we're going to have two segments. In segment number one, Madam Ma is going to walk us through the industry development and company's operation in first half 2026. And then Mr. Wang Hongyan, CFO, will walk us through the financial highlights. And then we'll kick into the Q&A session. Over to you, Madam Ma. Thank you, moderator. And thank you to all investors. Good afternoon. Welcome to join Gold Wind Science and Technology 2026. This is an interim results announcement. Let me walk you through the industry landscape, and then I'll break into our businesses. On this page, you are seeing the global wind power development in our anorimals. We talked about what happened then, and now in our interim results, you're going to see the GWAC and ARENA data Thank you very much. Understanding of LCOE, you can see in 2010 to 2025, the global onshore wind power LCOE declined by 71%. And of course, in China, the LCOE for onshore power also decreased. dropped by 71%. And you can see that the LCOE in China is much better than global. Meanwhile, the offshore LCOE globally declined by 63%, whereas China declined by 76%. Let's back to China. In first half of 2026, China recorded 38.6 gigawatts of grid connection, net decrease of 24.8% year-on-year, and onshore 37.8 gigawatts and offshore 0.8 gigawatts. By the end of June, 2026, cumulative grid connection totaled 679 gigawatts taking 16.8% China's total power mix where thermal power declined to 38.8% on the right side. You can see energy generation as well as the penetration rate. In first half of 2026, China has used 5.3% year-on-year more power and wind power production increased by 1.8% year-on-year a penetration rate of 11.7% utilization rate of 90.9% from January to June if you look at the market especially on the Great Connection totaled 917 hours If you look at the public tender market, total scale, 51.8 gigawatts down by 28% year on year. But if you look at the interim data, which was much better than the past by region onshore, note by region, 72.5% originated from northern parts and 27.5 from south and onshore, totaled 48.9 gigawatts and offshore 2.9 gigawatts. On the right side, you can see the average monthly bidding price in the last one year. You could see a very stable and rising curve with a little bit of fluctuations. In 2026 marks the beginning of the 15th five-year plan. And you know that NDRC had released several documents around building unified national electricity market and delivering China's energy neutrality. In March 20th, the government has proposed building a more efficient energy system so that by 2030, non-fossil energy could reach 25% out of total energy consumption and it will certainly assist to China's economic development. On May 14th, NDRC has issued the notice on matters relating to the orderly promotion of multi-user green power direct to supply development. Fast forward to June 8th, 13th, the NDRC had issued the notice on the 15th five-year plan of the construction with new energy system, setting the goal of initially setting up a clean low carbon safe and efficient new energy system by 2030, the share of installed wind and solar power capacity will exceed 50% and generating more than 30% of the power out of China's total energy mix. In the same time, and EA had released several documents on building China's electricity market. For example, the power generation side subsidy and new mechanisms. State Council also on July 5th issued the action plan for carbon peaking under the 15th five-year plan, which talked about installed capacity of wind and solar power by 2030. Against these backgrounds, our instant results, like usual, will also share with the investors our business development, especially the WTG manufacturing and sales. The sale capacity and revenue have presented very positive momentum. By segment, we can see that our sale capacity for WTG manufacturing sales more than 12 gigawatts. up by 16.2% year-on-year. And in terms of the installed capacity, you could see that there are more and more signs towards the larger capacity. Below six megawatts accounting for 11%, six to 10 accounting for 66%, above 10 megawatts accounting for 23%. Now let's look at the backlog order, which is very high externally. We have by backlog order you could see that total backlog order 54.1 gigawatts and external order backlog total 50 gigawatts including 10.4 gigawatts of successful bid and 40.6 gigawatts of signed contract. And of course the company has been expanding international market and today our business is across 49 countries and six continents. You could see here that we're mostly dominant in Asia, excluding China, which total capacity is more than four gigawatts. In South America, more than three gigawatts. In Africa and Australia, each more than two gigawatts. By June 30th, 2026, we have more than 9.5 gigawatts in our backlog order in overseas. Now let's look at grid connection. We have added 541 megawatts for attributable grid connection power in home and China. A total of 101.75 megawatts was sold home and abroad. And as of the end of 2026 June, companies' attributable grid-connected wind power projects totaled 10,319 megawatts, 39% in Northwestern, China, and 23% in Eastern China. Now, on the right side, you could see the distribution. And let's look at the utilization hours. Our recent hour is 1,106 hours, of course, is much higher than the industry. As I said, the industry is much lower. If you look at the wind power services, the number is growing. And today, we have more than 60 gigawatts. under operation capacity up by 31.3% year-on-year. So over to you, Mr. Wang, to walk us through the financial highlights. Dear shareholders and representatives, investors, good afternoon. First of all, thank you very much for your support in the winter Power Market, as well as your support in Goldwind. And now I'm going to give you our financial results for 2026 interim announcements. As usual, I will share with you five aspects of contents. And I will, of course, walk through all the key data. The light gray represents last year and the dark gray represents the reporting period data. Now let's refer to page 15. Here on this page, you could see the profitability index overview. There are four key indicators here. On left upper corner, you could see revenue from 2025 first quarter to second quarter, 2026 in gray and blue. In first half of 2026, our revenue is 33.739 billion. Our main revenue increase comes from WTG manufacturing, and you can see that onshore, offshore business also grow exponentially in the reporting period. On the right side, you could see On the right upper corner, you could see the comprehensive profit margin from Q1 2025 to Q2 2026. In 2026, first half, our comprehensive profit margin is 16.76 billion up by 4.1 percentage point. So, You can see that both the profit margin and gross profit grow for the company on the left side. You could see the attributable net profit, which is 1.855 billion. The growth comes from two aspects. First, better profitability, especially the increasing GT margin and the declining expenses. which means we're making more money and spending less. On the right side, you could see weighted average return on equity. In first half, our weighted ROE reached a full 0.15% increased by 0.66 percentage point. That's a result of our optimized net asset structure and operations since 2023, our weighted ROE ROE has been recovering year by year. So overall, you could see that in first half 2026, consolidated revenue, comprehensive profit margin, net attributable profit, and the weighted return on equity all improved. Now let's look at page 16. On page 16, you could see the segment results. by four segments. The first segment is WTG manufacturing and sales. Just now Madam Ma had already walked us through the specific numbers with revenue of 27.256 billion. And the last year same period was 21.852 billion. Profit margin is more than 11.6%. And you can see that the gross profit for this segment grow, especially for our onshore and offshore businesses growth. The second segment is wind farm development segment. Revenue, 3.149 billion RMB. And since last year, 3.172 billion. and Gross Margin, 54.4%. And same period last year, 57.5%. The second month's profit margin and revenue declined. Why? Because the price and development cost is very high coupled with the narrowing tax policy. On wind power services, revenue 2.728 Thank you very much. Thank you. So overall, I think first half 2026 performance is aligned with our forecast and expectation. So let's now look at the page 17 on days of trade receivables. There are three indicators. The first one is 34.898 The turnover days was optimized for 13 days. So you can see the trade receivables management has been delivering positive signs. On the right side, you could see that inventory and contract assets by end of June, 2026, inventory and contract assets totaled 20,357 million, taking 12% of total assets. And of course, days of inventory and contract assets was 111 days, all reflecting companies optimize the operation and management. Now, page 18, you can see the Interest-bearing debt on the left side. End of June, companies' interest-bearing debt totaled 54.071 billion RMB, slightly raising because of dynamic adjustment of companies' interest-bearing debt versus non-interest-bearing interest. So the share of non-interest-bearing debt is increasing because we are trying to manage Thank you very much. On the right side, you can see asset liability ratio. End of June 2026, company's asset liability ratio is down by one percentage point, standing at 71.81%. This, of course, reflects our positive, prudent, and healthy financial policy. In 2026, the company has maintained very healthy financial management, making sure that Our asset liability ratio is lower than last year. On the last page, you could see cash and net operating cash flows. On the left side, you could see cash on hand in 2025 Q1 and 2026 Q2. You can see by the end of June, 2026, the ratio of cash to total assets was 6.61% improving versus same period of last year. This is of course because of our active application of integrated cash management, SWIFT management and CHIP dual system. On the right side, you could see the net operating cash flow from 2025 to interim 2026. The net operating cash flow was projecting a quarterly sign. The net operating cash in Thank you. Thank you. Thank you.