Letter from the Chairman

Wu Gang

Dear Shareholders,

On behalf of the Board, I hereby present you the 2018 Annual Report of Goldwind.

In 2018, China’s wind power industry developed steadily, the situation of grid-connected consumption continued to improve, and the proportion of wind power generation continued to increase. In the current structure of energy industry of China, wind power has become China ’ s third largest power source after thermal power and hydropower, and is an important driving force for facilitating energy transformation and reformation. According to the global wind power statistics released by the Global Wind Energy Council, China continued to rank the top in the global new wind turbine capacity in 2018, accounting for 41.33% of the global installed capacity, and China ranked first in the global offshore installed capacity.

As the pioneer of China ’ s wind power industry, Goldwind strives for survival in competition and fights for development with innovation by relying on its ingenuity and 20 years’ experience in the field of wind power, thereby steadily improving its operating performance. In 2018, the Company recorded operating income of RMB 28,590.31 million, representing a YoY increase of 14.49%. According to the statistics of Bloomberg New Energy Finance, in 2018, Goldwind installed new capacity of more than 7GW (including offshore capacity of 400MW) in China, with a market share of 33.5%, ranking first for eight consecutive years. The Company ranked second in the world in 2018. The Company’s orders in hand reached a record high again by breaking through 18GW, representing a YoY increase of 16.27%.

Goldwind always grasps the trend of cutting-edge technologies, develops on an on-going basis and improves various product platforms. Currently, we have 1.5, 2S, 2.5S, 3S and 6S platforms, and continue to improve the performance of serialized products of each platform, so as to cover a wider range of diversified operating environments. During the reporting period, the Company continued to proceed with the research and development on GW2S, GW2.5S, GW3S and GW6S units, of which the GW131-2.2MW unit launched in the 2S platform passed the high voltage ride-through test for the first time in the industry, for which an international type approval was obtained and mass supply was started accordingly. The “Double140” (GW140-2.5MW-140m HH) unit launched in the 2.5S platform is the world’s first 2.5MW product with both the impeller diameter and tower height reaching 140 meters, and type approval issued by a third- party authority was obtained. DNV type approval was obtained for the first GW140-3.4MW unit of the GW3S platform, which was accredited by Windpower Monthly as the world’s best onshore model of the year.

Given the long established background in wind turbine manufacturing and years of wind farm technology service practices, as well as the self-developed customizable intelligent direct drive turbines, New Freemeso, GoldFarm, SOAM™ (Smart Operation Administration & Maintenance), EFarm, POWERNEST, Resmart and other systems and technologies, Goldwind is able to continuously increase the power generation and equipment reliability of its products, reduce costs and improve the overall competitiveness of wind energy. In 2018, the Company’s SOAM platform achieved large-scale commercialization, with new orders of over RMB60 million, representing a YoY increase of more than 50%. As of the end of the reporting period, the Company’s operating and maintenance service team provided construction, operation and maintenance and other services and technical support for approximate 33,000 units and about 1,000 wind farms across the globe, with over 20,000 units connected to the global monitoring center of Goldwind.

Benefiting from the continuous improvement of wind power consumption, the wind farm investment and development sector continued to maintain a trend of steady growth. In 2018, the Group’s revenue from power generation was RMB 3,903.99 million, showing an increase of RMB 656.63 million YoY. The market trading volume accounted for 6.9 % of the Company’s total electricity production volume. During the reporting period, the Company’s new grid-connected installed capacity and approved capacity continued to increase. Wind power projects led to significant growth in revenue from power generation, and power generation utilization hours exceeded the industry average. The business volu me of the Company’s wind farm asset management platform continued to increase, managing its own wind farm installed capacity of more than 4.7 million kW. By relying on the data center and digital platform, the Company achieved improvement in the efficiency and profitability of asset management.

Goldwind has always adhered to the diversified strategic layout, and has been deeply exploring offshore and overseas businesses for many years. By steadily advancing the “offshore and overseas” strategy, remarkable achievement was made in market development. The Company continued to strengthen the establishment of its offshore wind power technology and the engineering and talent teams, providing customers with highly reliable units, accurate assessments on wind farm resources, intelligent lifting, and operation and maintenance solutions. In the overseas markets, the Company has made new business progress in Turkey, Brazil, Kazakhstan and Chile. Goldwind International, a wholly-owned subsidiary of the Company, was listed as a supplier of the five major international clients, namely EDF R, Engie, E.ON, Enel Green Power and EDPR. As of the end of the reporting period, the Company had invested in 1.5GW attributable wind power projects, with a total project capacity of 1.34GW and an attributable capacity of 1.22GW under construction. Installed capacity of the completed overseas wind farms was 739MW and the attributable capacity was 303.1MW.

Goldwind has successfully penetrated into the water environmental protection sector and developed high-quality water environmental protection assets to provide customers with intelligent water solutions. In 2018, the scale of business and profitability continued to grow rapidly. The cumulative water treatment volume exceeded 3 million tons/day, representing a YoY increase of 80%. We had 52 water treatment projects, including 46 sewage projects, 4 water supply projects, one sludge project and one entrusted operation project. During the reporting period, the water business realizes a sales revenue of RMB 581.96 million, representing an increase of 259.90% as compared with the same period of last year and a net profit of RMB 114.43 million, representing an increase of 40.70% over the same period of last year.

China’s renewable energy industry is at the forefront of the world with its huge power market demand, solid equipment manufacturing base and national strategic guidance for green development. China has become one of the world’s largest renewable energy markets and manufacturing bases for the entire industry chain. Seizing this opportunity in the era, Goldwind will continue to step up its effort on the development of wind power equipment and wind power service business, and the realization of the upgrade and improvement of onshore and offshore wind power overall solutions. At the same time, we will actively deploy in the industrial chain of smart energy network “source-network-capacity”, promote the development and investment of wind farms, accelerate the development of distributed energy and energy service businesses, and develop intelligent overall water solutions in the field of environmental protection, with the aim to gradually grow as the international leader in providing clean energy and energy-saving and environmental protection solutions.

Finally, on behalf of the Board, I would like to express my sincere gratitude to our Shareholders and business partners for their great support and encouragement in 2018, and to each of Goldwind’s employees for their efforts.

Wu Gang


Beijing, 29 March 2019