(Bloomberg) -- Goldwind Science & Technology Co., the world’s biggest wind turbine maker, reported an increase in first-half profit as China’s rapid renewables buildout lifted demand.
Net income rose to 1.39 billion yuan ($195 million) for the six months through June, up 11% from 1.25 billion yuan during the same period in 2023, the Chinese company said in an earnings statement Friday.
China added about 26 gigawatts of wind power in the first half, up 12% year-on-year, according to the National Energy Administration, building on record installed capacity in 2023. However, fierce competition among domestic turbine manufacturers and low prices have pressured companies’ margins, limiting their ability to benefit from the installation boom.
Wind turbine prices in the country flattened out in the first half, while the rest of the world saw an increase, according to BloombergNEF. More Chinese manufacturers hope to increase exports to benefit from higher margins, and are pricing their products well below those of foreign peers including Vestas Wind Systems A/S and General Electric Co., BNEF said in a report late last month.
Chinese wind farm makers mainly export to Asia, Africa, Latin America and the Middle East, while their Western counterparts are more focused on US and European markets.
--With assistance from Foster Wong.
©2024 Bloomberg L.P.
