Wind power business performance declined significantly

The recently released three-quarters report of wind power enterprises shows that the wind power industry as a whole continues to decline, and the operation of leading companies is not optimistic. Analysts believe that it is difficult for wind power companies to stabilize and pick up this year. Related wind power companies should prepare for a “protracted war”, formulate long-term development strategies as soon as possible, enhance the core competitiveness of enterprises, and lay a good foundation for future revenue explosions.

Significant decline in performance

The operating status of wind power leading enterprises is not optimistic. Two wind power giants suffered a loss, and one net profit fell sharply over 90% year-on-year.

According to Sinovel Wind Third Quarter Report Company's operating income in the first nine months of September was 3.634 billion yuan (RMB, the same below), a decrease of 56.68% over the previous period. From July to September, the net profit attributable to shareholders of listed companies was RMB 280 million, a year-on-year decrease of 215.78%. In the first three quarters of this year, the company had a loss of 256 million yuan and operating income of 3.634 billion yuan, a decrease of 56.68% year-on-year.

The first three quarterly performance report released by Goldwind on October 27 was not good at all. The company’s total operating income in the first nine months of the year was 5.946 billion yuan, a decrease of 36.88% from the same period of the previous year, and the net profit attributable to the shareholders of the listed company was 38.516 million yuan. Yuan, a year-on-year decline of 93.74%.

Both Sinovel and Goldwind said that the decline in performance was related to the continuous downturn in the entire wind power industry in the past year due to the influence of national industrial policies and market competition incentives.

Although the performance is not satisfactory, the two leading wind power companies still have full confidence in the future. Goldwind Science and Technology Director Ma Jinru said that although the company's performance is still declining, the company's gross profit has increased quarter by quarter in the first three quarters, and maintained a growth rate of 16.5% in the second and third quarters. The total debt of the company has decreased by RMB 170 million from the end of the previous year, and there is abundant liquidity.

Compared with the large losses of wind power giants, some wind power equipment companies performed well. According to the report of Shanghai Taisheng Wind Energy Equipment Co., Ltd. for the third quarter of 2012, the total operating revenue in the first two quarters was 491 million yuan, an increase of 11.47% over the same period of last year; the operating profit was 45 million yuan, an increase of 5.54% over the same period of last year; RMB 64 million, an increase of 14.41% over the same period of last year; net profit attributable to shareholders of the parent company was RMB 53 million, an increase of 25.20% over the same period of the previous year.

In spite of this, Taisheng Wind Power's performance in the first three quarters of this year did not reach the medium-term forecast level. Taisheng wind energy sources told reporters: "This is affected by delays in the delivery of certain projects and losses during the construction of investment projects in Canada. However, with the delayed delivery of projects in the future and the completion of investment projects in Canada, these unfavorable factors will gradually be eliminated. ."

As with Taisheng Wind Energy, Tianshun Wind Energy has a significant increase in performance. Its three quarterly report shows that: In the first three quarters, the company achieved operating income of 1.05 billion yuan, a year-on-year increase of 56.52%, and a net profit attributable to listed shareholders of 144 million yuan, a year-on-year increase of 87.97%. The performance growth slightly exceeded market expectations of 60%-90%.

Taisheng Wind Energy attributed its increase in net profit to an increase in total profit and a decrease in income tax expense.

The reporter consulted the third quarter report of wind power companies and found that national policies and market conditions are important factors affecting the performance of wind power companies.

Short-term difficulty

As of June 2012, China's grid-connected wind power was 52.58 million kilowatts, which has replaced the United States as the world’s largest wind power country. The unfavorable factors such as overcapacity and export obstruction affect the development of wind power industry in China to some extent.

Recently, relevant policies have been introduced frequently, hoping to change the trend of wind power development. First, State Grid proposed that the nine major wind power bases centered on the “Twelfth Five-Year Plan” will be established in accordance with the principle of first province, then region, and nationwide to establish a nationwide large power grid to promote wind power consumption. Afterwards, the first 10 million kilowatt-class wind power base in China was restarted. All these have been interpreted as the domestic wind power project will usher in a concentrated outbreak period.

Will China's wind power market really usher in an outbreak?

In a reporter interview, Shi Pengfei, deputy director of the Wind Energy Committee of the China Renewable Energy Society, said: "The loss of wind power manufacturers is the result of low-cost vicious competition and the developer's arrears of payment. Many projects have been delayed due to delayed investment even if they are approved. Start-up, development is slow, and it is difficult to break out. Enterprises need to improve technology, ensure quality, control costs, and provide good services."

Shen Hongwen, a researcher in the new energy industry of China Investment Advisors, is not optimistic about the prospects of wind power companies. He believes that at present, the domestic wind power industry is unlikely to stabilize and recover in the short term, and there will be no substantial change in the operating environment of the company. ideal. The country has not issued any substantive wind power industry policies. Wind power projects will not be launched in bulk in the near future.

Step by step offshore and overseas wind power market

Offshore wind power and overseas wind power may become the life-saving straw for domestic wind power companies.

According to industry analysts, China has abundant offshore wind energy resources, especially abundant offshore wind energy resources. Coupled with the maturing technology for offshore wind power development in China, offshore wind power will be the focus of future development of wind power in China.

Wind power companies have long aimed at the offshore wind power market.

In an interview with reporters, Wuhan Iron & Steel Technology Chairman Wu Gang said that in the first three quarters of the domestic and international wind power market competition is still fierce and there is insufficient effective market demand. In order to maintain the continued competitiveness of Goldwind Technology, the company insists on actively promoting the development of offshore wind turbines. At the same time, the R&D speed of various products continued to accelerate, and models such as low wind speed and ultra-low wind speed were introduced, and several overseas markets were actively developed.

In China, the domestic demand for wind power is sluggish. Companies are aiming at overseas markets and hope to take the opportunity to get rid of dependence on the domestic market.

Huarui Wind Power executives believe that although Sinovel’s wind power performance has suffered temporary losses, its deployment to open up overseas markets is proceeding steadily and in an orderly manner, accumulating energy from all sides and making preparations for the redevelopment of the industry after the adjustment period.

According to the third quarter report of Tianshun Wind Power, it is expected that the company's active deployment in the European market and further development of the offshore wind tower market will, to a certain extent, ease the negative impact of the “double reverse” on company sales.

Shen Hongwen suggested that relevant wind power companies should prepare for a "protracted war", formulate long-term development strategies as soon as possible, enhance the core competitiveness of enterprises, and lay a good foundation for future revenue explosions.