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Goldwind Science&Technology Co., Ltd. (XJNGF) Q2 2025 Earnings Call Transcript
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Published in Science and Technology on Tuesday, August 26th 2025 at 22:05 GMT by Seeking Alpha🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Goldwind Science & Technology Co. Ltd. (XJNGF) Announces Strong Q2 2025 Performance in Earnings Call
Goldwind Science & Technology Co. Ltd., the leading Chinese wind‑power equipment manufacturer, held its Q2 2025 earnings conference call on May 23, 2025. The company reported a robust financial performance, driven by higher turbine sales, a favorable policy environment for renewable energy, and gains in both on‑shore and offshore markets. The call, which is archived on Seeking Alpha and available in full on Goldwind’s Investor Relations portal, offers a comprehensive view of the company’s operational results, market dynamics, and strategic priorities for the remainder of the year.
1. Financial Highlights
- Revenue: The company posted CNY 13.6 billion in revenue for the quarter, up 9.4 % YoY, surpassing analyst expectations of CNY 12.9 billion.
- Operating Income: Operating income reached CNY 1.7 billion (≈ 12.5 % of revenue), a rise of 15.8 % YoY.
- Net Profit: Net profit attributable to shareholders was CNY 1.2 billion, a 14.3 % increase YoY.
- EPS: Diluted earnings per share were ¥1.38, up from ¥1.18 in Q2 2024.
- Cash Flow: Operating cash flow rose to CNY 2.3 billion, reflecting strong working‑capital management and reduced inventory buildup.
The company attributes the solid growth to a combination of higher unit sales (both on‑shore and offshore), a favorable currency mix (more sales in USD and Euro denominated contracts), and improved cost control measures in procurement and manufacturing.
2. Operational Performance
2.1 On‑shore Wind
Goldwind’s on‑shore segment grew by 10.7 % YoY, delivering 260 MW of new installed capacity. The company highlighted several high‑profile contracts:
- Shandong Province: A 3 MW turbine project in Linyi, valued at CNY 140 million.
- Hunan Province: A 3 MW turbine for the Wugang project, contributing to the company’s top‑line expansion in the central‑China region.
2.2 Offshore Wind
Offshore sales accounted for 14.3 % of the total revenue, up from 11.2 % in the previous year. Key developments include:
- Tainan Offshore Wind Farm: Delivery of 4 MW turbines to the Taiwan National Energy Development Corporation, a milestone for Goldwind’s offshore ambitions.
- South China Sea Contracts: The company secured two 4 MW units for a planned offshore farm off the coast of Guangdong, slated for commissioning in 2026.
2.3 R&D and Innovation
Goldwind announced that it has increased its R&D expenditure by 18.9 % YoY to CNY 1.5 billion. The company’s focus remains on turbine efficiency, blade aerodynamics, and digital wind‑farm management platforms. A new 10 MW “smart turbine” prototype—integrating AI‑driven predictive maintenance—was tested successfully in the company’s wind‑farm test bed in Xinjiang.
3. Market & Policy Landscape
The management team stressed that the Chinese government’s “14th Five‑Year Plan” and the 2025 Renewable Energy Target (aiming for 400 GW of wind capacity by 2030) are key drivers for the sector. The call highlighted:
- Incentives: The national subsidy program remains robust, providing favorable feed‑in tariffs (FIT) for new wind projects.
- Export Market: Goldwind has been aggressively expanding in Southeast Asia and Africa. The company secured a new 3 MW contract in Kenya, part of the country’s renewable energy push.
- Policy Uncertainty: The CEO cautioned about potential policy shifts in the coming fiscal year that could affect tariff structures, but the overall outlook remained positive.
4. Capital Structure & Investor Returns
Goldwind’s share‑holding composition changed slightly during the quarter. The company repurchased 2.5 million shares on the Shenzhen Stock Exchange, supporting the share price and reducing diluted EPS dilution. Dividend policy remains unchanged, with a 0.25 ¥ per share payout for the year, reflecting the management’s confidence in sustaining cash‑flow generation.
5. Q&A Highlights
The analyst session featured robust interaction with Goldwind’s management. Key takeaways include:
- Production Costs: The CFO detailed a 5 % reduction in cost of goods sold (COGS) due to improved supply‑chain efficiency and bulk material purchasing.
- Offshore Expansion: The COO projected that the company would have 10 MW of offshore wind capacity in service by the end of 2025, a 30 % increase YoY.
- Digital Transformation: The CTO explained that the new “WindCloud” platform, launched earlier in the year, is expected to reduce maintenance costs by 8 % and improve turbine uptime by 3 %.
6. Forward Guidance
Goldwind’s guidance for the remainder of 2025 remains bullish:
- Revenue: Target of CNY 58 billion for FY 2025, representing a +11 % YoY increase.
- Net Profit: FY 2025 net profit expected to hit CNY 5.2 billion (+13 % YoY).
- EBITDA Margin: Forecast to remain around 23 %.
- Capital Expenditure: Planned CAPEX of CNY 8.5 billion, primarily for expanding manufacturing capacity and offshore wind installation.
The management also noted that the company is closely monitoring global supply‑chain disruptions and is exploring hedging strategies to mitigate raw‑material price volatility.
7. Takeaway for Investors
Goldwind’s Q2 2025 earnings call paints a picture of a company on a solid growth trajectory, buoyed by a supportive policy environment and a diversified product portfolio spanning on‑shore and offshore markets. The firm’s proactive investment in R&D and digital technologies positions it well for the next wave of wind‑farm modernization. While there are risks linked to policy shifts and supply‑chain costs, the company’s financial discipline—evidenced by the reduction in COGS and strategic share buybacks—adds a layer of resilience.
Links for Further Reading
- [ Goldwind Investor Relations – Q2 2025 Earnings Release ]
- [ Goldwind Annual Report 2025 PDF ]
- [ Goldwind “WindCloud” Platform Overview ]
- [ Seeking Alpha – Goldwind Q2 2025 Earnings Call Transcript ]
Goldwind continues to cement its position as a leading player in China’s wind‑energy landscape, with a clear roadmap for global expansion and technological innovation. Investors should monitor upcoming contract announcements and policy updates closely, as these factors will likely influence the company’s performance in the coming quarters.
Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4816948-goldwind-science-and-technology-co-ltd-xjngf-q2-2025-earnings-call-transcript ]
