Huayi Electric Reduces Revenue of Wind Power Equipment by 30% in First Half Year

On the evening of the 25th, it announced its first-half results. Although operating revenue of high voltage electrical appliances, one of its core businesses, increased by 15% year-on-year, revenue from wind power equipment, the second largest business segment, fell by 30.34% year-on-year.

In the first half of this year, the company realized operating income of 698 million yuan, a decrease of 8.19% over the same period of the previous year; operating profit of 49.91 million yuan, down 12.8% from the same period of last year; net profit attributable to the parent company was 38.479 million yuan. Year-on-year decrease of 21.89%.

The company said that wind power equipment operating income for the first half of the year was 276 million yuan, operating profit margin was 18.77%, operating revenue fell 30.34% year-on-year, and high-voltage appliances revenue was 408 million yuan, up 15% year-on-year, operating profit margin 22.5%.

Huayi Electric stated that the main reason for the decrease in sales revenue of wind power equipment during the same period last year was due to delays in the construction period of wind power projects and most of the new contracts were delivered in the second half of 2011 and beyond.

At present, the company has signed hundreds of wind turbine sales contracts with Guohua Energy, Shaanxi Yifeng Wind Power Co., Ltd., Huaneng Jilin Power Generation, Shanxi Fuguang and Ningxia Power Investment Sun Mountain Wind Power, etc. Huayi Electric will also continue to promote Wind farm resource development in Heilongjiang, Ningxia and Jilin. The research and development process of the high-power wind turbines will continue.