- Deutsche Bank Says China Is Energy ‘Winner’ in Age of War
Apr 9, 2026
(Bloomberg) -- As war injects extreme volatility into oil and gas markets, the global race for energy security is making China stronger, according to Jacky Tang, emerging markets chief investment officer at the private banking arm of Deutsche Bank AG.
“China is the winner in this war from an economic standpoint, from an energy mix standpoint,” he said in an interview.
The prediction feeds into a complex picture. Bruegel, a think tank, says China’s reliance on oil imports from Iran is set to pose a “severe test” for its energy strategy. At the same time, the country’s status as the world’s largest producer of clean tech puts it in a unique position to help governments now desperate to wean themselves off Middle East imports, according to the Deutsche Bank executive.
Longer term, Tang says “everybody knows” that the world “cannot rely on oil.”
He says it’s a realization that will force a reset in Asia, the biggest importer of Middle Eastern oil. Japan, Korea and India are now all more likely to look for ways to diversify their energy mix, and the equipment needed to achieve that diversification will inevitably come from China, Tang said.
As the conflict in the Middle East veers between existential threats and a fragile ceasefire, volatility in oil and gas prices has skyrocketed. The promise of a two-week break from fighting offered relief on Wednesday morning, with the reopening of the Strait of Hormuz listed as a condition of the deal. Next steps, however, remain highly uncertain.
For now, the Strait of Hormuz remains largely closed, pushing up the price of Brent crude. “The situation remains fluid,” analysts at Goldman Sachs Group Inc. said in a note.
Against that backdrop, governments will continue to work toward energy independence. China, which remains the world’s largest consumer of coal, is rapidly building out its clean-tech sector as part of its goal of achieving energy independence.
Low-carbon sources now account for close to 40% of the country’s electricity generation, compared with about 25% a decade ago, according to a February report by Ember. And renewables make up almost 50% of installed power capacity, Barclays Plc estimates.
“A decade of renewable build-out and electrification have materially reduced China’s exposure to energy shocks,” a Barclays team led by Jian Chang, the bank’s chief China economist, said in an April 8 note to clients. The upshot is that oil and gas are “now playing only a minor role in power generation” for the country, she said.
China’s long-term “focus on electrification” is making it more resilient to energy price shocks, according to a Lombard Odier CIO Office Viewpoint note sent to clients this month. And its build-up of strategic oil reserves has created an effective short-term buffer against rising oil prices, the Lombard Odier note said.
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Tang says a new wave of demand for renewable energy would sift out clean-tech winners, after years of hyper-growth drove down prices to levels at which some companies could no longer compete.
“The issue in China is that the competition is fierce,” Tang said. “The winners will be those guys with healthy balance sheets, with healthy fundamentals, with pricing power.”
Equipment exporters with margins that can absorb higher costs — and a cash flow that allows them to do mergers and acquisitions — will fare best, Tang said. He also says Deutsche is advising its private banking customers to seek out companies that are less indebted than their peers.
“For a lot of those infrastructure companies, unfortunately, the gearing ratio is high because they are small cap, and they need money from a bank,” Tang said.
A typical client portfolio tends to have about 10-15% of their Chinese equity allocation in clean energy stocks, he said. “We try not to be massively overweight because there is still a lot of volatility.”
Chinese stocks were among the top performers on the S&P Global Clean Energy Transition Index in the first few weeks of the war, but the gains have since evaporated for most.
Shares of Sungrow Power Supply Co., one of the world’s largest energy storage firms, climbed more than 20% after the Iran war began before shaving off nearly a third of their value due to disappointing earnings.
Wind power generation equipment makers Goldwind Science & Technology Co. and Ming Yang Smart Energy Group have also seen their stocks mostly plunge in recent sessions. Meanwhile, shares of battery giant Contemporary Amperex Technology Co. and electric car maker BYD Co. are still higher by about 28% and 8% in Hong Kong, respectively.
To deal with over-supply in its clean-tech sector, China’s government has embarked on an anti-involution campaign. Its latest five-year plan downplayed the solar sector, and it’s also canceling or reducing export tax rebates on products including solar cells as countries have called out trade imbalances.
“China is quite determined to make sure that prices stay at a competitive level and at the same time, that companies can survive,” Tang said.
--With assistance from Stephen Stapczynski.
(Updates with latest developments in seventh paragraph; adds stocks from 18th.)
More stories like this are available on bloomberg.com
©2026 Bloomberg L.P.
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- China Renewable Energy Markets 2025-2033 by Technology, End-User, Cities and Company Analysis
Nov 12, 2025
Company Logo
The China Renewable Energy Market is set to grow significantly, reaching 5.98 GW by 2033 from 2.03 GW in 2024, at a CAGR of 12.76% from 2025 to 2033. This growth is driven by ambitious carbon neutrality goals, government policy support, and rising electricity demand due to urbanization and industrialization. The market's expansion is supported by falling costs of solar and wind technologies, advances in grid infrastructure, and increasing adoption of clean energy solutions across industries. Key market players include China Datang Corporation, China Three Gorges Corporation, and Xinjiang Goldwind Science & Technology Co., among others.
Chinese Renewable Energy MarketChinese Renewable Energy Market
Dublin, Nov. 12, 2025 (GLOBE NEWSWIRE) -- The "China Renewable Energy Market Report by Technology, End-User, Cities and Company Analysis 2025-2033" report has been added to ResearchAndMarkets.com's offering.
The China Renewable Energy Market is expected to reach US$ 5.98 Gigawatt by 2033 from US$ 2.03 Gigawatt in 2024, with a CAGR of 12.76% from 2025 to 2033
Government policy support, aggressive carbon neutrality targets, rapid urbanization, rising electricity demand, falling solar and wind technology costs, technological advancements, grid infrastructure investment, and the growing industrial and public adoption of clean energy solutions are the main factors propelling China's renewable energy market.
Strong government support in the form of laws, subsidies, and strategic energy plans aimed at achieving carbon neutrality by 2060 is driving the rapid expansion of China's renewable energy market. The nation's high energy consumption as a result of urbanization and industrialization propels the widespread use of hydro, wind, and solar energy.
Domestic manufacturing capacity, increased efficiency, and declining technology costs make renewable energy more competitive with conventional fossil fuels. Investing in energy storage and system upgrades makes it easier to integrate intermittent sources. Sustainable energy use is encouraged by environmental concerns, global climate obligations, and rising consumer and business understanding. Growth in the industry is further accelerated by technological advancements in hybrid systems, solar PV, and offshore wind.
Growth Drivers for the China Renewable Energy Market
Ambitious Carbon Neutrality Goals
China wants to peak its carbon emissions by 2030 and reach carbon neutrality by 2060. A key component of the country's energy transition plan is this dedication. In order to encourage the high-quality growth of the renewable energy green electricity certificate (GEC) market, the National Development and Reform Commission (NDRC) released extensive recommendations in March 2025.
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In order to facilitate exports to markets with carbon border adjustments, these recommendations seek international acceptance of Chinese GECs and aspire to develop a comprehensive trading system by 2027. It is anticipated that this program will boost China's renewable energy sector's reputation internationally and stimulate more funding for clean energy initiatives.
Government Policy and Regulatory Support
With strong legislative frameworks and regulatory assistance, the Chinese government is instrumental in developing the renewable energy industry. A major policy change was announced in February 2025 by the National Energy Administration and the NDRC: all new renewable energy projects would be subject to market-based pricing starting in June 2025, replacing feed-in tariffs.
Similar to contracts for difference, this novel pricing mechanism seeks to maintain investor revenue stability while advancing market efficiency. Furthermore, by requiring renewable consumption objectives made possible by green electricity certificates and placing coal in a supporting role, the Energy Law 2025 strengthens the carbon peak and neutrality goals. These legislative initiatives aim to hasten the adoption of renewable energy technology and promote a more seamless shift to a low-carbon economy.
Rising Electricity Demand
The demand for electricity has significantly increased as a result of China's fast industrialization and urbanization. Due to economic expansion and the electrification of numerous industries, China's power consumption increased further in the first half of 2025. The nation has been making significant investments in renewable energy sources to meet this rising need.
Renewable energy sources including solar and wind produced 5,072 terawatt-hours (TWh) of electricity in the first half of 2025, for the first time surpassing coal's 4,896 TWh. This change signifies a significant shift in favor of cleaner energy sources. There are still issues, though, such as the requirement for improved grid infrastructure and energy storage options to handle renewable energy's sporadic nature. To ensure a dependable and sustainable energy supply to fulfill the country's expanding electricity needs, these issues must be resolved.
Challenges in the China Renewable Energy Market
Grid Integration and Infrastructure Limitations
Grid integration is a major obstacle to China's rapid growth in renewable energy capacity. Transmission bottlenecks and curtailment problems are caused by the fact that many wind and solar projects are situated in isolated areas that are distant from densely populated cities. Installed capacity is frequently underutilized as a result of existing grid infrastructure's inability to manage the unpredictability of renewable energy.
Real-time energy management is hampered by delays in the deployment of smart grids and the lack of energy storage devices at the scale necessary to balance intermittent generation. Although the government has put measures in place to increase grid connection and promote investment in ultra-high-voltage transmission lines, infrastructure development needs to pick up speed in order to keep up with the growth of renewable energy sources and guarantee a steady supply of electricity.
Environmental and Land Use Constraints
There may be land use and environmental issues with the large-scale installation of hydropower projects, wind parks, and solar farms. Opposition and regulatory delays result from the fact that many ideal renewable sites are located near agricultural grounds, densely populated areas, or ecologically sensitive places.
Strict land-use regulations and environmental impact evaluations could delay project permits. Furthermore, careful planning is needed to strike a balance between the growth of renewable energy and the preservation of water resources, wildlife, and community interests. In order to reduce ecological impact and meet growth targets for renewable energy, mitigation strategies, technological innovation, and integrated land-use planning are crucial.
Key Attributes:
Report Attribute Details No. of Pages 200 Forecast Period 2024 - 2033 Estimated Market Value in 2024 2.03 Gigawatt Forecasted Market Value by 2033 5.98 Gigawatt Compound Annual Growth Rate 12.7% Regions Covered China
Key Players Analysis: Company Overview, Key Persons, Recent Development & Strategies, SWOT Analysis, Sales Analysis
China Datang Corporation Renewable Powers China Three Gorges Corporation State Power Investment Corporation (SPIC) Sinohydro Corporation China Yangtze Power Co. Ltd Xinjiang Goldwind Science & Technology Co. Ltd China Huaneng Group China Huadian Corporation China General Nuclear (CGN) New Energys
China Renewable Energy Market Segments:
Technology
Solar Energy (PV and CSP) Wind Energy (Onshore and Offshore) Hydropower (Small, Large, PSH) Bioenergy Geothermal Others (incl Ocean Energy)
End User
Utilities Commercial and Industrial Residential
City
Beijing Shanghai Jiangsu Fujian Zhejiang Tianjin Guangdong Inner Mongolia Hubei Chongqing Rest of China
For more information about this report visit https://www.researchandmarkets.com/r/u42fvk
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
Chinese Renewable Energy Market
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
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- Eastern International Ltd. generated over RMB 45 million (approximately US$ 6.323 million) in revenue from its ongoing logistics services for offshore wind power projects and also launched the Yangjiang offshore project
Nov 4, 2025
HANGZHOU, China, Nov. 4, 2025 /PRNewswire/ -- Eastern International Ltd. ("Eastern International" or the "Company") (NASDAQ: ELOG), a provider of domestic and cross-border professional logistic services including project logistic and general logistic for Company clients, today announced that its wholly-owned subsidiary Suzhou TC-Link Logistics Co., Ltd. ("Suzhou TC-Link") has commenced to provide Offshore Project logistics services to Guangdong Goldwind Science & Technology Co., Ltd. ("Guangdong Goldwind") in late October and will be responsible for providing key logistics transportation, ship-loading and lifting services to safely transport the wind turbine and blades (Model: 266/16200) for Guangdong Goldwind from its Yangjiang Base and Sheyang Base to the designated port and to complete the ship of loading operations (the "Yangjiang Project"). The first set of blades is currently being prepared for shipment, with subsequent logistics and hoisting activities progressing as planned. The launch of the Yangjiang Project marks another significant milestone for the Company as it continues to expand its presence in the renewable energy business sector.(PRNewsfoto/东源全球股份有限公司)
In addition to the Yangjiang Project, the Company has two other major ongoing offshore wind power projects in Jiangsu Province, which are the Jiangsu Yancheng Three Gorges Fenghai Dafeng Wind Farm Project and the Jiangsu Guoxin Dafeng Offshore Wind Power Project. As of October 31, 2025, these two projects have generated cumulative revenues of RMB 22.87 million and RMB22.32 million (unaudited data, subject to audited financial results), respectively, with a combined installation capacity exceeding 1.6 gigawatts. Both projects involve the transportation and installation of ultra-long wind blades components measuring up to 110 meters, and are expected to be completed by the end of 2025. The execution of these large-scale offshore wind power projects fully demonstrates the Company's technical expertise in managing complex logistics for major renewable energy infrastructure.
Leveraging its extensive project management expertise, professional operational teams, and stringent safety and quality control systems, Eastern International ensures the safe and timely transportation and delivery of all equipment to designated vessel decks, fully supporting the construction schedules of various offshore wind power projects. The concurrent execution of logistics transportation and lifting operations for multiple offshore wind projects further demonstrates the Company's ongoing commitment and professional capabilities in the logistics sector for renewable energy engineering projects. This has reinforced Eastern International's reputation as a trusted logistics partner for leading energy developers and equipment manufacturers.
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Mr. Lin Tan, Chief Operating Officer of Eastern International Ltd. commented, "Our execution across multiple large-scale projects demonstrates not only our operational strength but also the trust our clients place in our capabilities. Driven by accelerating renewable energy investment across China and Southeast Asia, we are uniquely positioned to capitalize on this momentum through with our proven expertise and comprehensive network."
Mr. Tan added, "Building on nearly two decades of industry experience, we continue to expand our service scope beyond transportation to include value-added engineering solutions such as hoisting, installation, and maintenance services that enhance both customer loyalty and long-term revenue visibility. With our advanced internal logistics service system, strong safety standards, and established client relationships, we are confident in our ability to scale efficiently and deliver sustainable growth for our clients, partners, and shareholders."
About Eastern International Ltd.
Eastern International Ltd. (NASDAQ: ELOG) is a holding company incorporated in the Cayman Islands. The Company, through Suzhou TC-Link Logistics Co., Ltd. ("Suzhou TC-Link") and Hangzhou TC-Link Logistics Supply Chain Management Co., Ltd., both wholly owned subsidiaries of the Company, provide domestic and cross-border professional logistic services including project logistic and general logistic for Company clients. Suzhou TC-Link was established on January 9, 2006, in Jiangsu Province, China. Suzhou TC-Link has obtained the internationally recognized IS09001 certificate of high-quality service (2015 standard), and it has 4 wholly owned subsidiaries and 5 warehouses/logistic centers and 3 branch offices of its subsidiaries in China. Suzhou TC-Link's operating network covers key cities in mainland China, Hong Kong, Southeast Asia and Central Asia. For more information, please visit https://www.elogint.com
Forward-Looking Statements
Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors discussed in the "Risk Factors" section of the final prospectus filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and Eastern International specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Contacts:
Eastern International Ltd. Mr. Lin Tan Tel: +86 0571-82356096 Email: ir@elogint.comCision
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- China's Wind Power Revolution: 120GW-a-Year Push Could Redefine Global Energy
Oct 20, 2025
This article first appeared on GuruFocus.
China's wind power giants are setting the stage for an aggressive new growth chapter. At the annual China Wind Power conference in Beijing, turbine leaders including Goldwind Science & Technology Co. (XNJJY) and Ming Yang Smart Energy Group urged the government to authorize at least 120 gigawatts of new wind installations annually through 2030a pace that could more than double China's total wind output by the end of the decade. The proposal reflects both growing industrial confidence and Beijing's accelerating commitment to shift away from fossil fuels.
Warning! GuruFocus has detected 13 Warning Signs with XNJJY. Is XNJJY fairly valued? Test your thesis with our free DCF calculator.
The momentum is already visible in the numbers. China added a record 80 GW of wind power last year and is expected to surpass that with 94 GW of new projects in 2025, according to BloombergNEF. Under the industry's new targets, total installed capacity would reach 1,300 GW by 2030 and no less than 2,000 GW by 2035, compared with 520 GW at the end of 2024. That trajectory could put China years ahead of its existing clean energy roadmap, positioning domestic turbine makers as the backbone of the country's energy transition.
President Xi Jinping recently reaffirmed China's climate ambitions, targeting a 7% to 10% reduction in net greenhouse gas emissions by 2035 and 3,600 GW of combined wind and solar capacity. The proposed accelerationalongside a consistent 15 GW per year of offshore wind projects through 2030underscores a broader national strategy: to dominate not just in turbine manufacturing but in the entire clean energy value chain. For investors, this could mark the start of a long structural upswing in China's renewable buildout, where scale and policy alignment remain powerful tailwinds.
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- Xinhua Silk Road: Biomass gasifier technique tested to be reliable for green methanol project in Hinggan League, N. China
Oct 11, 2025
BEIJING, Oct. 11, 2025 /PRNewswire/ -- In Hinggan League, north China, a green power-enabled hydrogen plus biomass to methanol production project completed its biomass gasifier technique testing recently.
Under witness of industry experts, the first materials feeding for its gasification furnace proved that biomass gasification technique, core of the project, is reliable under different operation conditions.
Upon success of the testing, formal operation of the first phase of the world's largest green methanol production project in Hinggan League, northeastern Inner Mongolia Autonomous Region, is around the corner.
As a notable move in green methanol production sector, the first phase of the project was invested by a local green energy company under a subsidiary of Goldwind Science & Technology, involving 2.296 billion yuan of investment in total.
Capable of producing 250,000 tonnes of green methanol annually, the first phase of the project is expected to be a reliable source of large-scale green methanol supply for global shipping industry and downstream sectors.
Currently, green and low-carbon fuels such as green methanol are a common pursuit for global shipping giants eager to speed up green transformation.
The project, which adopts environmental friendly devices, appears to be a solid pillar for the green methanol purchasing agreements signed between Goldwind Science & Technology and global shipping giants Maersk and Hapag-Lloyd respectively.
Thanks to the tested reliable biomass gasifier technique, Hinggan League Administrative Office won investment agreements for the second and third phases of the project from the aforementioned subsidiary of Goldwind Science & Technology recently.
Year to date, related expansion projects are scheduled to enter construction and after their formal operation, aggregate production capacity of the project is likely to reach 1.45 million tonnes annually.
Situated in a region with rich wind resource, the project leverages wind power to produce green hydrogen and local cornstalk and other biomass to produce green methanol, contributing to building the Hinggan League "green hydrogen-ammonia-methanol" demonstration base.
Original link: https://en.imsilkroad.com/p/347828.htmlCision
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- EXPLAINER-China's dominance in wind turbine manufacturing
Apr 10, 2024
(Adds detail from WindEurope on costs, payments)
By Andrew Hayley
BEIJING, April 10 (Reuters) - The European Union will investigate subsidies received by Chinese suppliers of wind turbines destined for Europe, the bloc's anti-trust commissioner, Margrethe Vestager, has said.
Tuesday's move is the latest in a growing effort in both Europe and the United States to shield domestic clean energy industries from cheap Chinese imports, which authorities say benefit from anti-competitive state subsidies.
Washington would not accept U.S. industry being "decimated" by China's excess industrial capacity in key products such as EVs, batteries and solar panels, U.S. Treasury Secretary Janet Yellen warned during a visit to China this week.
Here is what we know about China's wind power industry.
HOW BIG IS IT?
China has by far the world's biggest wind turbine production capacity, or 60% of 163 gigawatts (GW) in 2023, says Brussels-based industry association Global Wind Energy Council.
Production capacity in Europe and the United States, by contrast, stood at 19% and 9% respectively.
China exported about $1.42 billion of turbines and components to the EU last year.
Its top three manufacturers, Goldwind, Envision and Mingyang had combined orders of 55.3 GW in 2022, versus only 26.7 GW for the top three Western makers, Vestas , GE and Siemens Energy, data from consultancy Enerdata shows.
In addition to output, Chinese turbine manufacturers also lead in product design and innovation. The last four years have seen 426 new Chinese turbine models released, versus just 29 new turbines outside China, consultancy Wood Mackenzie said.
Last year, China installed the world's largest offshore wind turbine off the coast of the southern province of Fujian. The 18MW turbine is 20% more powerful than the largest turbine built by GE.
WHAT'S BEHIND ITS GROWTH?
China has long supported the development of wind farms and turbine production as part of its ambitious climate goals to reach peak emissions before 2030.
Spurred by state support, China installed 77.1 GW of wind power last year, accounting for 65% of the global total. By comparison, European Union countries built only 17 GW.
China introduced feed-in tariffs to support onshore wind power deployment in 2009 widening them to offshore projects in 2014.
Although central subsidies were phased out between 2020 and 2021, projects continue to get support from local governments.
In 2021, the southern economic powerhouse of Guangdong said it would offer subsidies of between 500 yuan ($69) and 1,500 yuan ($207) per kilowatt of offshore wind capacity until 2025.
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The wind sector also continues to receive indirect support from state banks and cheap upstream components.
Manufacturing loans at China's four big state-owned banks jumped 25% last year to $1.2 trillion, targeting strategic sectors such as technology and clean energy.
In an annual report to China's legislature in March, Premier Li Qiang vowed to unleash "new productive forces" to drive growth in high-tech manufacturing as the economy stalls amid a property crunch and trade tension.
Li added that Beijing would issue one trillion yuan's worth of special purpose bonds - equivalent to $139 billion - in 2024 to help fund strategic sectors.
WHAT OTHER FACTORS KEEP CHINESE TURBINE PRICES LOW?
The situation in China’s wind turbine sector is similar to that in the solar sector, with massive domestic capacity increases underpinned by extensive government support, said Xuyang Dong, China energy policy analyst at Climate Energy Finance in Sydney.
"With a domestic supply glut and world leading technology, China will increasingly seek to export turbines."
Cheap raw materials and fierce competition have also pushed down prices. Prices of Chinese turbines dropped by more than 30% in 2023, Wood Mackenzie said.
Prices for Chinese turbines are about a fifth below rival U.S. and European products, says research service BloombergNEF.
European industry group WindEurope said Chinese wind turbines are being offered in Europe at up to 50% lower prices than Europe-made turbines and manufacturers offer deferred payments for up to three years which means the turbines are essentially free until a wind farm operator has up to three years of revenues from a project.
The average bidding prices in China’s public wind project tenders fell 11.4% from 1,755 yuan ($242.65) per kilowatt at the start of 2023 to 1,555 yuan at the end of the year, leading supplier Goldwind said in its 2023 annual report. ($1=7.2322 Chinese yuan renminbi)
(Reporting by Andrew Hayley; additional reporting by Nina Chestney in London; Editing by Miyoung Kim and Clarence Fernandez)
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- Wind Farms Need to Boom to Hit Climate Targets, But Growth Is Stalling
Mar 23, 2023
(Bloomberg) -- Wind power industry growth dropped to the lowest in three years in 2022, hit by rising costs and shifting government policies.
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That’s according to the latest analysis from clean energy researchers at BloombergNEF. While global governments are relying on a rapid scale-up of the wind industry to hit climate goals, shrinking profit margins and soaring costs have cooled development.
“Alarm bells should be ringing,” said Cristian Dinca, an analyst at BloombergNEF. “Governments around the world are increasing their ambition on decarbonization and, at the same time, new additions are slowing on the ground.”
READ MORE: Planet-Saving Wind Farms Fall Victim to Global Inflation Fight
By far the biggest market last year was China, which accounted for more than half of all global wind farms built in 2022 even after government subsidies expired at the end the previous year. China’s boom helped Xinjiang Goldwind Science & Technology Co. edge out Denmark’s Vestas Wind Systems A/S to become the world’s biggest turbine developer, according to BNEF.
China has the world’s most fragmented wind market, with more than a dozen turbine makers in fierce competition driving down turbine prices. Goldwind is expected to see profit decline for 2022 due to the pressure on margins when it posts earnings next week, according to Bloomberg Intelligence.
China added 37.6 gigawatts of new wind capacity to the grid last year, according to the National Energy Administration, a decline from the previous two years when developers rushed to meet subsidy deadlines. The country is expected to install 61 gigawatts of wind capacity this year, including about 10 gigawatts offshore, according to BloombergNEF.
Story continues
In the US, the declining value of production tax credits for wind projects sandbagged the industry. Onshore wind growth was the weakest in four years, dropping 37% compared with 2021, according to industry group American Clean Power. Meanwhile, the nascent US offshore industry has seen projects delayed and marked down due to inflationary pressures and supply chain struggles.
In Europe, wind power additions rose to a record level, but there’s trouble ahead as major projects struggle to make investment decisions as their costs rise. In the UK, Europe’s biggest market for offshore wind, developers say £20 billion ($25 billion) of projects may not go ahead without further help from the government.
--With assistance from Luz Ding.
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- MSCI investors at risk of exposure to Xinjiang allegations, report says
Nov 21, 2022
The world’s biggest asset management, state pension and sovereign wealth funds are passively invested in companies which have allegedly been involved in the repression of Uyghur Muslims in north-west China’s Xinjiang region, a new report says. According to Hong Kong Watch, a UK-based research group, and the Helena Kennedy Centre for International Justice at Sheffield Hallam University, three major stock indices provided by index publisher MSCI include at least 13 companies which have allegedly used forced labour or have profited from China’s construction of internment camps in Xinjiang and its surveillance apparatus in recent years.
- Edited Transcript of 002202.SZ earnings conference call or presentation 22-Aug-22 8:00am GMT
Aug 22, 2022
Q2 2022 Xinjiang Goldwind Science & Technology Co Ltd Earnings Presentation Urumqi, XNJ Aug 23, 2022 (Thomson StreetEvents) -- Edited Transcript of Xinjiang Goldwind Science & Technology Co Ltd earnings conference call or presentation Monday, August 22, 2022 at 8:00:00am GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Hongyan Wang Xinjiang Goldwind Science & Technology Co., Ltd. - CFO * Jinru Ma Xinjiang Goldwind Science & Technology Co., Ltd. - VP, Secretary of Board & Company Secretary ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Ladies and gentlemen, and (inaudible) welcome you to Xinjiang Goldwind Science & Technology 2020 Interim Results Release. (Operator Instructions) Now let's welcome the company representative to do the presentation. -------------------------------------------------------------------------------- Unidentified Company Representative, [2] -------------------------------------------------------------------------------- Good morning, good afternoon, and good evening. I'd like to welcome you to Xinjiang for the Goldwind 2022 interim result release. Today, we are very happy to have our directors to lead all of you. They are the President, Mr. Cao, Zhigang, VP, Board Secretary Board and the Company Secretary Madam Ma Jinru; VP, Mr. Kaiguo Wang; and our CFO, Mr. Wang Hongyan. And the release will be divided in 2 parts. First, we're going to have Madam Ma to walk you through the presentation regarding the industrial review and the business review. And later we're going to have Mr. Wang to walk us through the financials results. Later, we're going to get into the Q&A session. Now let's welcome Madam Ma, please. -------------------------------------------------------------------------------- Jinru Ma, Xinjiang Goldwind Science & Technology Co., Ltd. - VP, Secretary of Board & Company Secretary [3] -------------------------------------------------------------------------------- Okay. Distinguished investors, good afternoon, good morning, and good evening. I'd like to welcome you to join us for the 2022 interim results release. Please allow me to walk you through the market and business development of the company. Please turn to Page 3. On Page 3, we show you the global wind power market, including the new installation. The new installation and the onshore wind data is being all presented here on the left side, you know that in 2020 and in 2021 the group and new installations being kept at a very high level, especially for last year, the new installation accounted for 93.6 gigawatts with onshore wind accounted for 72.5 gigawatts. China accounted for 51% of the total new installation. On the right side, it was showing you the global weighted average housing gas. We can see from 2010 to 2021, the average cost of the global offshore wind power declined by 68%. And from the left side to the right side, it shows the biomass hydro and PV onshore and offshore. So you can really say that the PV for the past few years, the COU decreased by 88%. The same as the onshore one, the onshore one decreased by 68% in terms of the LCOE. So onshore power is probably the revolve in the lowest the LCOE and especially by the end of this year, the LCOE for the onshore resources has already reached USD 0.033 per kilowatt hour. We are coming back to China. You can see in the first half of 2022, and there were new installations in up by 40%. And by the end of June, you can see that the total grid connected the wind power capacity totaled 242.2 gigawatts, taking 40% of the power mix, the similar power decreased by 53.5%. On the one side, it shows you the electricity production. And for H1 of this year, the total power consumption was growing by 2.9%. And the wind power generation accounted for RMB 231 billion kilowatt hour representing a penetration ratio of 9.1%. As you can see, the digitalization rate is still around an [95.8%]. And you can see the domestic part, it was growing very fast. The average utilization was 1,156 hours in H1 of this year, decreasing by 56 hours Y-o-Y. The domestic public tender market totaled 51.1 gigawatts in H1 of this year. And you can see in 2019 due to the rush to build and the public tender market in 2019 represents 65.2 gigawatts. The other year also in the declining trend. This also shows that in the 4th Five-Year Plan and the people are very positive to support the public tender market by having the wind power installation. The onshore public tender accounted for 42.0 gigawatts. The offshore represent a 9.14 gigawatts, 67% are in the northern part of China, 33% are in the southern part of China. The majority of them are in large industrial base and the centralized sourcing. On the left side, it also shows you the average bidding price in domestic China. You can also say that there are some very provincial policies in benefiting the wind power industry. And for example, the implementation plan in promoting high-quality development of new energy in new era, and also the 14th Five-Year Plan for renewable energy development and especially on the 1st of June, NDRC and NEA along with other several ministries and commissions jointly launched the 14th Five-Year Plan for renewable energy development, which proposed the demand growth for the renewable energy development in the 14th Five-Year Plan and also from this and the distributed development of the wind power also present a very good growth. And you can see the power reform also being started in China. And we're going to build a unified national electricity market to further promote the reform of the energy industry. So on the left side, in that map, it also clearly shows us the geographic's of China and the wind power development projects in different geographies of China, including with these projects and the distributed power penetration projects in different parts of China. So this upon such a backdrop, let me just walk you through our business review. Our business, including 4 parts WTG Manufacturing & Sales, Wind Farm Development, Wind Power Service and other services. Regarding the turbine business and the sales was going up by 37.8%. I was just showing you the data. And you can also say that the 3x and the sales is around 2,333 megawatts and representing 57.1% of the total sales with an increase of 102.5% Y-o-Y basis. And talking about the backlog we have, by the end of June, and our total order loss backlog is around 24.1 gigawatts. And we successfully the significant contract of 15.5 gigawatts. On the right side, as you can see, MSPM turbine reached 14.7 gigawatts with the highest portion of the 62% in order mix. This is also another slide ensuring the global business expansion. You can clearly say that the backlog being distributed in different parts of the world, along with our wind farms. According to the backlog, Asia still have a decent backlog, accounted for 1,157 megawatts. And then we have South America and also Australia that are also dividing very fast. And you can see we also have attributable on the construction capacity totaled 581 megawatts, which are mainly located in Australia, and also take a look at the wind farm, and as of June our company's attributable grid-connected wind power projects accounted for 6,135 megawatts, representing 29% in North China, 26% are in East China, 25% are in Northwestern part of China, the rest are the regional. From the January to June, we newly added 350 megawatts to the attributable grid-connected wind power. And the total sales is around 283 megawatts. On the left side, it also shows you the grid-connected by region on the construction. Southern part represents 30% of the under constructed wind farm. And let's also take a look at the utilization rate. And by H1 this year, our sales from wind farm record 1,270-hour utilizations. 114 hours higher than the national average. But generally speaking, to say that the number was somewhat lower than the same period of last year. So the same as what we call from the national capacity utilization hour. So wind power service also we grow decently, and you can see that our installed fleet and our own experience of wind power service business grow steadily and the under-operation capacity totaled 25.3 gigawatts, represented 48% Y-o-Y basis growth. Let's welcome Mr. Wang to walk you through the financials. -------------------------------------------------------------------------------- Hongyan Wang, Xinjiang Goldwind Science & Technology Co., Ltd. - CFO [4] -------------------------------------------------------------------------------- Ladies and gentlemen, dear investor. Coming up, please allow me to walk you through the financials of our interim results. Just now, Madam Ma has already walk you through the environmental development and also the public tendering price changes. And you can see that the total wind market and the price was going down very much. The average price was being decreased from more than RMB 3,000 per kilowatt hours to around RMB 1,800, and the price difference is more than 40%. Well, for Goldwind and while in the stage of launching the new products. And so you know that we have a big work to do regarding the product delivery. We are talking about that the first half of this year, you can say that compared with the same period of last year, and -- for H1 of Asia, actually, our revenue for the first half of this year totaled around RMB 16.512 billion. And let's also take a look at the GP margin. And last year, the number was 28.35%. Well, for this year, in H1, it was 24.72%, reduced by around 3%. While on the net profit attributable to the owner of the company used to be around RMB 2,041 million. But this year is only RMB [1.920] billion and weighted average return on equity. And last year, the number was 8.03%. Well, this is 5.33%. So generally speaking, you can see that for all the 4 profitability indicators, they are all on the downtrend. Please go to the next page. This page shows you the segment results, and that is also regarding our business distribution. For the WTG Manufacturing & Sales and even if the total sales was on the uptrend, but results price was decreasing and especially write-off that what we build last year, and we also see great changes in the turbine manufacturing in the South. The offshore business only accounted for 2% of the total WTG Manufacturing & Sales. So you can say that the sales was increasing, but the revenue was not increasing accordingly. You see that the sales revenue was decreasing a lot. And at the same time, the GP margin was decreased by 7.75% in our interim results, we also emphasized. The product and it's accounted for the 8.1% of the growth because you know that we -- the total pricing in the home market was only decreasing for the turbine product. So generally speaking, the turbine business or the WTG Manufacturing & Sales performance was under expectation. So the size of the WTG Manufacturing & Sales, well when the power service went from development and other business, they are all hitting our target. Wind from development, even if we have a decrease in wind resources, as we mentioned Madam Ma, but you can say that, generally speaking, the utilization rate hours being decreased. But for H1 of Asia because of the installations has been increased by 20%. So jointly speaking, you know that our wind farm being greatly improved. So generally speaking, that you know that the -- wind farm development and the total revenue accounted for RMB 3,294 million, and the GP margin being kept at 68.29%. That's for the wind farm development business. We're talking about the wind farm service, and our wind power service is hitting our expectation and are also further optimize the business. O&M, as you can see that it was growing very fast. Well, for other business, you can see the EPC business in (inaudible) by China been shrinking, and we also started to have the high value-added, the wind farm development and wind farm O&M business. So you can see the non-O&M business is being further optimized, which further contributed to our score card. So that's the way then we can stabilize the revenue for the wind power service. So all together, you can say that the revenue grew by 70.5% reaching RMB 1,934 million and the GP margin was 19.81%. We are talking about other business. Other business was also keeping our expectation and the revenues being further optimized. For example, the operations were improved. The rates because we have value-added assets and also the water price and water resources done by our internal factory. So you know that the total revenue is being greatly improved for the other business, and the revenue mix being further optimized. So just now -- I just share with you the segmental results of the financials. Talking about the asset and liabilities, there are 2 tables, (inaudible) share with you, regarding the solvency position for the asset liability and between the structures being taking -- hitting our expectations. And for the asset liability ratio, it was 69.2% for H1 of this year. And by the end of last year, this number was 69.21%. So you know that our company's asset liability ratio maintained below 70% lower than the industrial average. We still have a AAA crediting performance where at the same time, our interest liability and the noninterest liability has a healthy mix. You can say comment on a quick ratio has been also stabilized. So generally speaking for our asset and liability and our cost indicators are hitting the expectation of the company. But talking about the cash flows. On the left side, it shows you the net operating cash flow to revenue. It also shows our industrial features, Q1 and Q2 are actually in the backlog preparation and payment period. For turbine, we have less been delivered in H1 of Xinjiang. So generally speaking, net operating cash flow would be an active number in H1, and then it's going to be narrowed down in Q2. And in Q2 and Q4, again to deliver more turbine and the net operating cash would then be a positive number in Q3 and Q4. So our net operating cash flow already works with the seasonality changes of the whole industry. On the right side, it also show you the cash to total assets. Compared with the industrial average, we are also on the healthy optimization track because it worth to show the data in Q1, Q2 of 2021. And you can see the ratio of the cash to the total asset last year it was 0.01%. Well, for this year and by the end of the June, the ratio of the cash to total assets was 5.99%. So generally speaking for this year, we believe we have a stable performance and optimized the performance regarding the cash to total assets. That's all for the financials. I'd like to thank for all the investors. Thank you. -------------------------------------------------------------------------------- Unidentified Company Representative, [5] -------------------------------------------------------------------------------- Okay. Thanks for Madam Ma and Mr. Wang for the presentation and financials.
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