Electrical Wind Power 2025 Annual Report Analysis: Revenue up 31.07% to 13.681 billion yuan, Operating Cash Flow Surges by 1279.18%

Core Profitability Indicator Interpretation

Operating Revenue: Clear Scale Expansion, Strong Overseas Business

In 2025, Goldwind Electrical achieved operating revenue of 13.681 billion yuan, up 31.07% year over year, mainly driven by increased sales resulting from wind turbine orders added in the prior year coming to fruition. By business segment:

• Wind turbines and components: Revenue of 13.1181 billion yuan, up 32.05% year over year, accounting for 95.89% of total revenue, and still the core source of revenue;
• Providing services: Revenue of 0.435 billion yuan, up 25.92% year over year, with aftermarket service capability continuing to improve;
• Wind farm power generation: Revenue of 0.072 billion yuan, down 23.52% year over year, mainly due to reduced earnings from power generation of self-owned wind farms.

By region, domestic revenue was 12.064 billion yuan, up 33.09% year over year; overseas revenue was 1.561 billion yuan, up 19.28% year over year. The overseas gross profit margin was 41.19%, far higher than the domestic figure of -0.05%, making it an important support for profitability.

Net Profit and Profit After Non-Recurring Items: Loss Widening, Profit Pressure Still Present

During the reporting period, net profit attributable to shareholders of listed companies was -0.989 billion yuan, with losses widening year over year; profit after non-recurring items was -1.010 billion yuan, also with losses increasing. The widening losses were mainly due to:

1. Intensifying competition in the offshore wind power market, leading to a year-over-year decline in wind turbine sales prices;
2. Delayed delivery of some offshore projects, with supply-chain cost reductions not meeting expectations;
3. A peak in installed capacity within the year causing component prices to rise, highlighting pressure on the cost side.

Earnings Per Share: Synchronized Downturn

Basic earnings per share were -0.74 yuan/share, and diluted earnings per share after non-recurring items were -0.76 yuan/share, both down compared with -0.59 yuan/share and -0.61 yuan/share in the same period of the prior year, consistent with the trend in changes in net profit.

Expense Structure Analysis

Period Expenses: Total Up, Expense Ratio Down

In 2025, the company’s total period expenses were 0.173 billion yuan, up year over year, but the period expense ratio decreased by 3.47 percentage points compared with the same period last year, indicating initial effectiveness in cost reduction and expense control.

Selling Expenses: Growth with Revenue Expansion

Selling expenses were 0.332 billion yuan, up 32.90% year over year, mainly due to increased labor costs resulting from the overseas business layout, while contract acquisition costs increased in tandem with operating income.

Administrative Expenses: Scale Optimization, Improved Efficiency

Administrative expenses were 0.448 billion yuan, down 9.12% year over year, mainly achieved by optimizing spending such as external support fees and office expenses, resulting in improved management efficiency.

Financial Expenses: Reduced Interest Expense

Financial expenses were 0.157 billion yuan, down 5.75% year over year, mainly because the scale of borrowings declined during the period, and interest expenses fell from 0.152 billion yuan to 0.129 billion yuan.

R&D Expenses: Steady Investment with a Slight Decrease, Focused on Core Technologies

R&D expenses were 0.596 billion yuan, down 4.25% year over year. The proportion of R&D investment to operating revenue decreased from 5.97% to 4.36%. The company focuses on cutting-edge technologies such as large-megawatt turbine platforms and deep-sea far-offshore floating offshore wind power. During the reporting period, it completed prototype testing and verification for the offshore 18MW unit, rolled off the 16MW offshore low-frequency turbine, and released the 25MW product; technological reserves were further strengthened.

R&D Personnel: Stable Team, Slight Compensation Growth

During the reporting period, the number of R&D personnel was 481, accounting for 29.19% of the total headcount, basically flat year over year; R&D personnel compensation totaled 0.212 billion yuan, up 0.85% year over year. Average compensation was 441.6 thousand yuan per year, slightly higher than 437.0 thousand yuan in the prior year. Talent team stability was strong.

Cash Flow Analysis

Cash Flow from Operating Activities: Major Improvement, Higher Quality

Net cash flow from operating activities was 0.598 billion yuan, up sharply 1279.18% year over year, mainly because cash received from selling goods increased significantly with order deliveries, while the efficiency of collecting receivables improved.

Cash Flow from Investing Activities: Continuous Net Outflow

Net cash flow from investing activities was -0.458 billion yuan. The same period last year was -0.564 billion yuan. The scale of net outflow narrowed, mainly due to a decrease in capital expenditures for purchases and construction of fixed assets.

Cash Flow from Financing Activities: From Positive to Negative

Net cash flow from financing activities was -0.615 billion yuan. The same period last year was 1.315 billion yuan. This was mainly because, with improved operating cash flow during the period, the borrowing scale was lower than that of the same period last year, while spending for repayment of due debts increased.

Risk Factor Disclosures

2. Risk of Performance Loss: If wind turbine tender prices continue to decline, raw material prices fluctuate, or product quality issues arise, the company’s profitability will face further pressure;
3. Risk to Core Competitiveness: Wind power technology iterates quickly; if the company cannot continuously roll out market-adapted products, or if core technical personnel are lost, its competitive advantage will be weakened;
4. Market Competition Risk: The industry is highly competitive; if the company cannot strengthen technology R&D and cost control, operating performance may be adversely affected;
5. Risk of Core Component Delivery: With the trend toward larger wind turbines, if upstream component suppliers lack sufficient capacity, it may lead to delivery delays;
6. Accounts Receivable Risk: Accounts receivable at period-end plus contract assets totaled 1.789 billion yuan, accounting for 34.13% of total assets. If downstream customers face funding tightness, it may affect collections;
7. Policy Dependence Risk: Industry development is highly related to policy. If policy adjustments affect investment willingness, it will compress market space;
8. Risk of Raw Material Price Fluctuations: Increases in raw material prices such as copper and praseodymium-neodymium will directly raise procurement costs;
9. Overseas Market Risk: Factors such as geopolitical conditions and exchange rate fluctuations may affect the execution of overseas orders and the level of earnings.

Compensation of Senior Executives and Board Members

• Chairman Qiao Yinping: During the reporting period, the total pre-tax remuneration received from the company was 1.1048 million yuan. Appointed as Chief Operating Officer of Shanghai Electric starting in July 2025, and started drawing salary from Shanghai Electric beginning in August;
• President Wang Yong: Total pre-tax remuneration was 1.3025 million yuan;
• Vice President Liu Xiangnan: Total pre-tax remuneration was 1.1137 million yuan;
• Vice President Jiang Yong: Total pre-tax remuneration was 1.1200 million yuan;
• CFO Shi Xiajun: Total pre-tax remuneration was 0.4800 million yuan.

Overall, although Goldwind Electrical’s 2025 revenue scale expanded, profitability still faces pressure. At the same time, the cash flow situation improved significantly. In the future, attention should be paid to changes in industry policies, trends in raw material prices, and the progress of overseas business expansion, and risks of continued losses in performance should be kept in mind.

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