Xinjiang Goldwind Science Technology Aktie

Respected investors, good afternoon. Welcome to join Goldwind Science&Technology 2026 Interim Results Announcement Webinar. And joining us are management members, Mr. Cao Zhigang, Board Director and President; VP, Board Secretary, Ma Jinru; and CFO, Wang Hongyan.

And today, we're going to have two segments. In segment number one, Madam Ma is going to walk us through the industry development and the company's operation in first half 2026. And then Mr. Wang Hongyan, CFO, will walk us through the financial highlights, and then we'll kick into the Q&A session. Over to you, Madam Ma.

Thank you, moderator, and thank you to all investors. Good afternoon. Welcome to join Goldwind Science&Technology 2026 Interim Results Announcement. Let me walk you through the industry landscape, and then I'll break into our businesses.

On this page, you are seeing the global wind power development in our annual [ remote ] we talked about what happened then. And now in our interim results, you are going to see the GWEC and ARENA data. 2025, new installation globally was 164.6 gigawatts. Onshore, 155.3 gigawatts; and offshore, 9.3 gigawatts. By region, APAC accounted for 80% of total installations. China contributed 73% and U.S.A. contributed 4%.

On the right side, you can see IRENA's understanding of LCOE. You can see in 2010 to 2025, the global onshore wind power LCOE declined by 71%. And of course, in China, the LCOE for onshore power also dropped by 71%. And you can see that the LCOE in China is much better than global. Meanwhile, the offshore LCOE globally declined by 63%, whereas China declined by 76%.

Let's back to China. In first half of 2026, China recorded 38.6 gigawatts of grid connection, net decrease of 24.8% year-on-year, and onshore, 37.8 gigawatts; and offshore, 0.8 gigawatts. By the end of June 2026, cumulative grid connection totaled 679 gigawatts, taking 16.8% China's total power mix where thermal power declined to 38.8%. On the right side, you can see energy generation as well as the penetration rate.

In first half of 2026, China has used 5.3% year-on-year more power, and wind power production increased by 1.8% year-on-year, a penetration rate of 11.7%, utilization rate of 90.9% from January to June, if you look at the market, especially on the grid connection totaled 917 hours.

If you look at the public tender market, total scale, 51.8 gigawatts, down by 28% year-on-year. But if you look at the interim data, which was much better than the past by region, onshore, now by region, 72.5% originate from Northern parts and 27.5% from South. And onshore totaled 48.9 gigawatts and offshore, 2.9 gigawatts.

On the right side, you can see the average monthly bidding price in the last 1 year. You could see a very stable and rising curve with a little bit of fluctuations. In 2026 marks the beginning of a 15th Five Year Plan. And you know that NDRC had released several documents around building unified national electricity market and delivering China's energy neutrality.

On March 20, the government has proposed building a more efficient energy system so that by 2030, non-fossil energy could reach 25% out of total energy consumption, and it will certainly assist China's economic development. On May 14, NDRC has issued the notice on matters relating to the orderly promotion of multi-user green power direct supply development.

Fast forward to June 13, the NDRC had issued the notice on the 15th Five Year Plan of the construction of the new energy system, setting the goal of initially setting up a clean, low carbon, safe and efficient new energy system. By 2030, the share of installed wind and solar power capacity will exceed 50% and generating more than 30% of the power out of China's total energy mix.

In the same time, NEA had released several documents on building China's electricity market, for example, the power generation side subsidy and new mechanisms. State Council, also, on July 5 issued the action plan for carbon peaking under the 15th Five Year Plan, which talked about installed capacity of wind and solar power by 2030.

Against this background, our interim results, like usual, will also share with the investors our business development, especially the WTG manufacturing and sales. The sale capacity and revenue have presented very positive momentum.

By segment, we can see that our sales capacity for WTG manufacturing sales more than 12 gigawatts, up by 16.2% year-on-year. And in terms of the installed capacity, you could see that there are more and more signs towards the larger capacity below 6 megawatts accounting for 11%, 6 to 10 accounting for 66%, above 10 megawatts, accounting for 23%.

Now let's look at the backlog order, which is very high externally. We have -- by backlog order, you could see that total backlog order, 54.1 gigawatts, and external order backlog totaled 50 gigawatts (sic) [ 51 gigawatts ], including 10.4 gigawatts of successful bid and 40.6 gigawatts of signed contracts.

And of course, this company has been expanding international market. And today, our business is across 49 countries and six continents. You could see here that we're mostly dominant in Asia, excluding China, which total capacity is more than 4 gigawatts; in South America, more than 3 gigawatts. In Africa and Australia, each more than 2 gigawatts. By June 30, 2026, we have more than 9.5 gigawatts in our backlog order in overseas.

Now let's look at grid connection. We have added 541 megawatts for attributable grid connection power in Homeland China, a total of 101.75 megawatts were sold home and abroad. And as of the end of 2026 June, company's attributable grid-connected wind power projects totaled 10,319 megawatts, 39% in Northwestern China and 23% in Eastern China.

Now on the right side, you could see the distribution. And let's look at the utilization hours. Our recent hour is 1,106 hours, of course, is much higher than the industry. As I said, the industry is much lower. If you look at the wind power services, the number is growing. And today, we have more than 60 gigawatts under operation capacity, up by 31.3% year-on-year.

So over to you, Mr. Wang to walk us through the financial highlights.

Dear shareholders and representatives, investors, good afternoon. First of all, thank you very much for your support in the wind power market as well as your support in Goldwind. And now I'm going to give you our financial results for 2026 interim announcement.

As usual, I will share with you five aspects of content, and I will, of course, walk through all the key data. The light gray represents last year and the dark gray represents the reporting period data. Now let's refer to Page 15.

Here on this page, you could see the profitability index overview. There are four key indicators here. On left upper corner, you could see revenue from 2025 first quarter to second quarter 2026 in gray and blue. In first half of 2026, our revenue is RMB 33,739 million. Our main revenue increase comes from WTG manufacturing, and you can see that onshore/offshore business also grew exponentially in the reporting period.

On the right side, you could see -- on the right upper corner, you could see the comprehensive profit margin from Q1 2025 to Q2 2026. In 2026 first half, our comprehensive profit margin is RMB 16.76 billion (sic) [ 16.76% ], up by 4.1 percentage points. So you can see that both the profit margin and gross profit growth for the company.

On the left side, you could see the attributable net profit, which is RMB 1,855 million. The growth comes from two aspects. First, better profitability, especially the increasing GP margin and the declining expenses, which means we're making more money and spending less.

On the right side, you could see weighted average return on equity. In first half, our weighted ROE reached 4.15%, increased by 0.66 percentage points. That's a result of our optimized net asset structure and operations. Since 2023, our weighted ROE has been recovering year-by-year. So overall, you could see that in first half 2026, consolidated revenue, comprehensive profit margin, net attributable profit and weighted return on equity all improved.

Now let's look at Page 16. On Page 16, you could see the segment results by four segments. The first segment is WTG Manufacturing and Sales. Just now Madam Ma had already walked us through the specific numbers with revenue of RMB 27,256 million. And last year, same period, was RMB 21,852 million. So profit margin is more than 11.6%. And you can see that the gross profit for this segment grow, especially for our onshore and offshore businesses growth.

The second segment is Wind Farm Development segment. Revenue, RMB 3,149 million and same period last year, RMB 3,172 million and gross margin, 54.4% and same period last year, 57.5%. The segment's profit margin and revenue declined. Why? Because the price and development cost is very high, coupled with the narrowing tax policy.

On Wind Power Services revenue, RMB 2,728 million and same period last year, RMB 2,896 million. Profit margin, 21.8%, whereas the last reporting period, 22.5%. You can see it's almost stable versus same period last year. And on others, I think you could see that the revenue scale and profit margin was practically flat versus first half 2025. So overall, I think first half 2026 performance is aligned with our forecast and expectation.

So let's now look at the Page 17. On days of trade receivables, there are three indicators. The first one is RMB 34,898 million trade receivable accounting for 20% of total assets, improving by 1 percentage point. And you can also see that the turnover days was optimized for 13 days. So you can see the trade receivables management has been delivering positive signs.

On the right side, you could see that inventory and contract assets by end of June 2026, inventory and contract assets totaled RMB 20,357 million, taking 12% of total assets. And of course, days of inventory and contract assets was 111 days, all reflecting company's optimized operation and management.

Now on Page 18, you can see the interest-bearing debt on left side, end of June, company's interest-bearing debt totaled RMB 54,071 million, slightly raising because of dynamic adjustment of company's interest-bearing debt versus non-interest-bearing interest. So the share of non-interest-bearing debt is increasing because we are trying to manage the supply chain and maximize our supply chain. In the same time, you can see that our comprehensive credit has been improving, which reflects very sufficient low-cost supply of credit.

On the right side, you could see asset liability ratio. End of June 2026, company's asset liability ratio is down by 1 percentage point, standing at 71.81%. This, of course, reflects our positive prudent and healthy financial policy. In 2026, the company has maintained a very healthy financial management, making sure our asset liability ratio is lower than last year.

On the last page, you could see cash and net operating cash flows. On the left side, you could see cash on hand in 2025, Q1 and 2026 Q2. You can see by the end of June 2026, the ratio of cash to total assets was 6.61%, improving versus same period of last year. This is, of course, because of our active application of integrated cash management, SWIFT management and CIPS dual system.

On the right side, you could see the net operating cash flow from 2025 to interim 2026. The net operating cash flow was projecting a quarterly sign. The net operating cash in interim 2026 is narrowing, reflecting safety of our cash and improving the utilization and efficiency of our cash. This is because of our better management of our deliveries and receivables. So that's the company's strategy to making sure we have stable, sufficient, healthy net operating cash flows. So that's wrapping up my part.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Dear investors, good afternoon. Welcome to join us this call the 2026 first quarter results for Goldwind Science&Technology Company.

Joining us, we have [ Mr. Cao Zhigang ], Board Director and President; Ma Jinru, Board Secretary and Company Secretary; CFO, Wang Hongyan; and also Group VP and GM of Wind Power Industry, Chen Qiuhua.

We're going to have Ma Jinru to talk about the first quarter industry update and review. After that Wang Hongyan will go through the Q1 business review. And finally, we're going to take your questions.

Now over to you, Ms. Ma.

Thank you. Dear investors, good afternoon. Thank you so much for joining this call for the Q1 earnings results. So first of all, about the industry review and business review. In terms of the industry review, this is the global annual installation in 2025 and the distribution across different countries. Not much update there, so I will skip there.

So back to China. In the first quarter, the on-grid was -- capacity was 15.8 gigawatts, up by 7.9%. As of end of March, total wind power on-grid capacity was 655 gigawatts, which is about 16.5% of total energy installed capacity, while thermal power dropped to 39.2%. And also in last year, the total power consumption was actually 103,000 -- sorry, so 10 trillion kilowatt hours, up by 5%. And also, we have seen pretty much flat in terms of the tender. We are down by 2.2% in the first 3 quarters -- first 3 months this year, 28 gigawatts. And you can see on the right, the open tender average price pretty much stabilized.

And now I'm listing the Q1 industry policies. Now First of all, it has to do with the power market in terms of the power market development on the January 30, NDRC, Energy Administration published notice on improving the generation side capacity tariff mechanisms and February 11, State Council published the opinion regarding the unified power market system.

And the other 2 has to do with green and low-carbon objectives, which is on the March 5, the 2026 policy address, talking about developing green carbon economy on April 13, the publishing -- publication of opinion regarding the shipping green and low carbon transformation.

On the right, this is the code of ecology and environment. The code further specified the general requirement of green and low-carbon development, developing circular economy, energy conservation and green and low-carbon transition to cope with climate change as the target, which will be effective on the 15th of April -- sorry, August this year, including development of wind power, solar as well as the consumption mechanism for renewable energy, building a new type of power system and also promotion of the green energy consumption.

So in that kind of backdrop, let's turn to our business review. In the first quarter, we have external sale capacity of 6,040 megawatts, up by 133.45%, below 6 megawatts, which is 9%. 6 to 10 megawatts was 4,312 megawatts by -- accounting for 71%. 10 megawatt and above was 1,173 megawatts, about 19%. So at the end of the Q1, we have order backlog of 53.9 gigawatts, including external order, 50.7 gigawatts. So in terms of external order, tender win was 9.5 gigawatts and the signed contract 41.2 gigawatts. And also at the end of first quarter, our internal demand was 3.2 gigawatts, mainly for our self-run wind farms.

So you can look at the pie chart in terms of distribution, you can see, again, the main component was 6 to 10 megawatts.

So this is our international business footprint. As of end of Q1, our business international installed capacity exceeds 13,000 megawatts. Asia, excluding China and South America exceeds 3 gigawatts and also in Africa, Australia over 2 gigawatts, North America, Europe, over 1 gigawatt as of end of Q1. The order backlog overseas was 9 gigawatts.

So this is the wind farm on the left. This is the wind farm. As you can see Q1 newly added [ equity ] capacity was 177 megawatts. We have disposed 102 megawatts of wind farm end of March. Our self-run wind farm equity capacity exceeds 10 gigawatts. 39% was domiciled in Northwest, 24% domiciled in East China, 16% domiciled in North China, the other was in single digits.

End of Q1, our total capacity under construction in China and overseas was about 3 gigawatts. So in the first quarter, the average utilization hour of our self-run wind farm was 549 hours. On the right, you can see the distribution of the capacity of grid connection. We already touched upon that. So that was the business review.

I'm going to hand over to Mr. Wang for the financial review.

Good afternoon. I'm Wang Hongyan, CFO. Thank you so much for joining this earnings call for the first quarter. I'm going to report to you the 2026 Q1 performance. So again, we're going to talk about 4 areas. Firstly, we're going to talk about the consolidated profit and loss and mainly the current assets, profitability, operating index and solvency and cash flows.

So in the chart, we're looking at the -- the gray was actually the previous quarters and the blue part was Q1. This is on Slide 13. This is a consolidated profitability index. You can see we have a good beginning of the year. On the top left, this is the operating revenue. You can see the gray bar represents the quarters in 2025. The blue bar represents Q1 in 2026. And the Q1 revenue was RMB 15,485 million. which is increased by 64%, mainly from the wind turbine manufacturing increase and also implementation of strategy. And the revenue is actually hitting a record. And this is for the first time, we have over RMB 10 billion in the quarter.

And then we have the gross margin in 2026, the first quarter margin was 16.76%, which is year-on-year decline. But this is really because we have higher revenue of wind turbine generator. So this is the first thing to watch. And secondly, the margins, RMB 2.5 billion, increased by RMB 533 million, up by a lot. So the increase has to do with the business mix improvement. In 2026 first quarter, again, this is the highest quarter in terms of gross margin dollars.

And net profit margin in the first quarter, attributable net profit, RMB 907 million increased by 59.65% improvement in profit comes from 2 sides. First of all, higher GP margin. Secondly, and also lower the nonrecurring cost. And also the weighted average ROE in Q1 was 2.23% which is up by 0.75 percentage points year-on-year, thanks to the higher net profit margin and also improvement of business mix. So the average ROE continued to improve. So that was a very important 4 profitability metrics.

And then turning on the 14th slide, which is on the operation metrics. The account receivable was RMB 33.9 billion, accounting for 20% of total assets. Account receivable as well as the turnaround turnover days has been improving. The operating efficiency has been improving. So this is really thanks to our management of the full cycle management of account receivable, putting customer in the center, working with the banks, and also optimizing the incentive mechanisms, achieving synergy so that we have significant outcome of improvement on the rise.

We're looking at the first quarter inventory and contract asset balance, RMB 17.5 billion in total, which is reduced. It's now accounted for 10% of total assets, so which means operating efficiency improvement, also thanks to, firstly, management of turnover lead time and also improvement of the deliveries.

And now turning to the next slide, which is the solvency metrics. In the first quarter, our interest-bearing debt was RMB 5 billion, slightly down -- slightly up -- sorry, slightly down year-on-year, which has to do with the business schedule, which is in line with the business schedule because right now, our -- we have an abundant credit line. So we have a reasonable debt ratio, and we have a robust funding capabilities.

On the right, we are looking at -- at the end of Q1, the asset liability ratio, which is 71.1%. As you can see, year-on-year, Q-on-Q, we have significant reduction of the liability ratio. Thanks to the asset liability and equity structure improvement and also goes to show our financial management in terms of robustness and effectiveness.

For the full year, we will continue to promote the deleveraging to leading the continued decline of asset liability ratio.

Lastly, Slide 16, which is the cash flow and operating cash flow. On the left, so this is the quarterly cash flow in the last 5 quarters. At the end of first quarter this year, the balance was RMB 11.3 billion. Ratio of cash to total asset was 6.72%. So we'll continue to see significant improvement. Thanks to our efficiency in the overall management.

On the right, this is the quarterly operating cash flow in 2025 and Q1 this year. So 2 features. First of all, there's a seasonality there and also the net cash flow -- net cash outflow has been narrow year-on-year. So the cash efficiency has been improved. Of course, also thanks to our refined management, the cash, different cycle, matching the revenue inflow. And for the full year, operating cash flow will continue to maintain healthy, stable and sufficiency, so that was the overview of financial performance in the first quarter this year. Okay. Thank you management...

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Dear investors, good afternoon. Welcome to join us at Goldwind 2025 Annual Results Earnings Call. Today, we have the executive members. First, Mr. Cao Zhigang, Board Director and President; and VP, Board Secretary and Company Secretary, Ms. Ma Jinru; CFO, Wang Hongyan; and Group VP and GM of Wind Power Industrial Company, Mr. Chen Qiuhua.

Today, we have 2 parts in our earnings call. First, Ms. Ma is going to walk us through the industry development, our performance and future outlook in 2025. Then CFO Wang Hongyan is going to walk us through the financial results, and then we'll move on to Q&A.

First to Ms. Ma.

Thank you. Dear investors, thank you all for joining us today at the 2025 Goldwind Annual Results. First of all, let me introduce the industry in 2025. First, let's look at the global market for wind power in 2025. The new installation is 169.2 gigawatts, up by 37.9%. Onshore, 161 gigawatts, up by 45.1%. Offshore, new capacity of 8.1 gigawatts, down by 30.2%.

On the very right side, we can see by country breakdown, China continued to dominate the global installation. In 2025, China's new addition capacity accounts for 3/4 of the global installations. Now back to China. In 2025, the grid connection is 120 gigawatts and the onshore 113 gigawatts and 6.59 gigawatts from offshore wind power.

At the end of 2025, China's cumulative grid connection capacity totaled 640 gigawatts, taking 16.4% China's total power mix, while thermal power declined to 39.6%. On the right side, you could see the electricity production. Last year, China used 10,368.2 billion kilowatt hours, up by 5.0% year-on-year and among which we have 1,130 billion kilowatt of wind power representing an increase of 13% year-on-year and penetration rate of 10.9%, which improved year-on-year, but China still lag far behind benchmarking against other countries, EU and U.K. average penetration rate is about 20% and in Denmark more than 50 years (sic) [ 50% ] for multiple years.

Now let's look at the LCOE 2025, you can see that the utilization rate, national average is 1,979 hours, which is a utilization rate of 94.3%. And we could see that Shanghai, Fujian and Chongqing has reached 100%, respectively, in terms of the utilization rate. On the right side, you could see the level cost of offshore globally. Overall, we can see [Audio Gap] are all very advantageous compared to the global average, especially in the last 2 years.

For China, we have involution, which is alleviated and the price, especially onshore is definitely back to order. That's why the LCOE onshore is very, very steady and offline offshore, LCOE declined slightly. However, if you look at the global average, especially non-China market because of the supply chain shortage. So in the last few years, the onshore actually globally is trending up.

So if you look at China's LCOE, both onshore and offshore are both quite advantageous. Let's now look at the tender and bidding. In 2025, domestic public tender market totaled 121.2 gigawatts, down by 26% where you can see during 14th 5-year plan, we definitely have seen very spike in growth. And onshore, we have 112 gigawatts and offshore 9.14 gigawatts. By region, more than 70% originates from northern part of China.

On the right side, you could see the average bidding price per month. You could see the price is very stable, trending up month by month.

On Page 7, you could see the policy support from Chinese government issued in 2025, generally speaking, against the dual carbon goals, the NDRC, NEA has jointly issued a number of policies, deepening the market-oriented reform of on-grid power tariffs for new energy, and we definitely promote green, low-carbon transformation, enhancing the quality development of new energy development in 4 parts.

We have listed a number of related policies. For example, on February 9, the NDRC and NEA's notice on deepening market-oriented reform, I will spare the details here. So against that industry backdrop, let's check out on Goldwind's performance.

In 2025, our performance, especially new installations has been #1 in China market and for 15 years and cumulative 4 years, the #1 globally. And we have 165 gigawatts cumulative installation worldwide in 42 countries and regions. We have 8 R&D centers, and we participated in 600 standard setting globally.

And in 4 parts, I'm going to share with everybody our business performance. All in all, Goldwind performance has seen robust growth and the particular financial results will be shared by Mr. Wang, Hongyan, our CFO. So let me just talk about the top line and our performance. First of all, first segment, the sales of WTG in 2025, our external sales capacity is 26.626 gigawatts, up by 65.9% and the proportion below 6 megawatts totaled 3,126 megawatts totaling 11.7% and from 6 megawatts to 10 megawatts totaled 18,818 megawatts, taking 70% and above 10 megawatts totaled 4,682 megawatts, taking 17.6%.

And of course, we definitely have 39.5 gigawatts of signed contracts, 11 gigawatts of successful bid and 50.5 gigawatts of external order backlog. So company's total order backlog in 2025 year-end is 53.7 gigawatts, and you can definitely see the additional 3.2 gigawatts of order was for our own wind farm. We also explored the global market. Our business is now in 6 continents, 49 countries. Our installation is in 42 countries, but our orders definitely spread across 49 countries by year-end of 2025.

Cumulative installation in overseas market is 12.599 gigawatts in Australia, South America, we have exceeded 2 gigawatts and installation in Europe, North America and Africa has exceeded 1 gigawatts and in Asia exceeded 3 gigawatts. At the year-end, company's overseas external backlog was 9,270.17 megawatts. Overseas operating capacity totaled 433 megawatts.

Let's now look at the wind power generation and grid connection. Our added attributable grid connection capacity was 2,497 megawatts and a total of 588.45 megawatts were sold at home and abroad. At the year-end, company's attributable grid connection totaled 9,951 megawatts, 39% domiciled in Northwestern China, 24% in Eastern China, 16% in North China and 9% in Northeastern region and 8% in Southern China. At the year-end of 2025, attributable under construction wind capacity totaled 2,521 megawatts. On the right side, you could see the by region breakdown.

Let's now look at the utilization. On the left side, you can see our self-run wind farm recorded 2,290 hour utilization, which is 311 hours higher than national average. On the right side, you could see the wind power service, thanks to our economy of scale and experience of O&M, you can see by the year-end of 2025, our under operation capacity reached over 50 gigawatts, up by 26% year-on-year.

We definitely have valued SDG. In 2019, we made the previous sustainable development plan, and we definitely focused on green, environmental-friendly operation, compliance, sustainable industry chain and sound working environment and harmonious community relationship every year. We set goals and KPIs to work on these 5 fronts. Last year, we have delivered a fantastic job on STS (sic) [ SDG ] especially on the goals set by 2025. For example, in terms of compliance and honesty, we have been achieving Class A in 2025 information disclosure, quality rating from Shenzhen Stock Exchange, and we also have a complaints and reporting closing rate up to 100%.

You definitely can see the greenhouse gas emission per megawatt reduced by 55.1% compared to 2020 and hazardous waste generated per megawatt of wind turbine manufactured is 78.1% lower than 2020 and water use intensity for production operation is 28.8% lower than 2020. We also have maintained carbon neutrality at the operational level in 2025 and 99% of our global production operations will be powered by green electricity and self-generated market-traded green power accounting for 57.2% of our total electricity consumed.

And in 2025, we also delivered great sustainability industry chain goals. For Goldwind, we believe to better evaluate our social responsibility means providing better quality service and products. Our principal products is WTG. By the end of last year, we have 12 -- evaluated 12 of our WTG's lifespan, and we also had received the international product lifespan accreditation. You could see that the carbon intensity per kilowatt hour is pretty low, which is about 3 grams. So generally speaking, it's usually at more than 800 grams.

So we're much lower than the traditional competitors. Our other products are also going through carbon footprint accreditation and evaluation. We also started the green industry chain, recycling of our turbines to better deliver our corporate social responsibility.

Now over to you, Mr. Wang Hongyan to walk us through our financial results.

Well, respected shareholders, good afternoon. My name is Wang Hongyan, CFO of Goldwind Science and Technologies, and thank you all very much for your sustainable interest and support to the company. So in the next 10 minutes of time, I'm going to report to you the financial results of the company in financial year 2025.

As usual, I'd like to analyze all index, especially the profitability, the segment results and then solvency position as well as our cash flows and balance on cash. So starting from Page [ 1 ], we can see, as usual, the gray here represents last year and the dark blue reports the reporting period.

Let's now check out on Page 18, which is the consolidated profitability index, which involves 4 key indexes on the left side, you could check out the revenue of the company in financial year 2025. You could see in gray and blue representing our revenue in 2025, our revenue CNY 73 billion, up by CNY 16.3 billion, mostly as a result of WTG market demand, sales and our business execution.

On the right side, you could see the profit margin. Also, you could see quarter-by-quarter profit margin performance in 2025. Consolidated profit margin is 14.18%, up by 0.38 percentage points. And the profit is up by CNY 2,774 million. This is definitely as a result of the good strategy, product mix optimization for WTG business, which definitely helped us to improve our revenue.

On the left side, you could see the attributable net profit totaled CNY 2,774 million, up by 49.12%. It is a result of how we improve our cash making ability, profit margin improvement and expenses reduction. On the very right corner, you could see the weighted average return on equity, ROE. In 2025, our weighted ROE is 7.08%, up by 2.17 percentage points, mostly as a result of growing revenue and optimization of our core equity.

You could see that the weighted average ROE is improving year-on-year. So on consolidation level, in 2025, our revenue, profit margin, net profit and weighted average return on equity have all been improved on basis of 2024, which definitely is a result of our budget and our strong execution of our strategy.

On second part, in Page 19, I'm going to report on our segment results as Ms. Ma has just introduced. For WTG manufacturing and sales, revenue grew dramatically, especially the offshore business has increased, which optimized the profit margin and total sales. The second part is the wind farm development. The revenue and profit margin year-on-year also changed. One slightly declined and the other increased.

So you can see that the revenue from the wind farm development has definitely decreased, but the profit margin improved. If you look at the third segment, wind power service and other businesses, which is pretty flat versus 2024. So you can see our budget is well executed and pretty aligned with the business performance.

Moving on to Page 20, which is the operation index. On left side, you can see days of trade receivables, 3 improvements, number one: At the end of 2025, the balance is CNY 23 billion (sic) [ CNY 32 billion ] accounting for 19% of our total assets improved by 1 percentage point. And the days of receivables versus our total assets also improved and also the days of trade receivables was 158 days, much improved on basis of 2024.

So you could see that the 3 improvements in all these data. On the very right side, you can see days of inventory and contract assets. At the end of 2025, we have inventory and contract assets totaled CNY 17,267 million, taking 10% of total assets and the days of inventory and contract assets was 97 days, improved by 25 days. So if you look at the operating efficiency of inventory and contract assets, it's much improved because of our delivery, lead time improvement and precise execution of our strategy.

Now let's move on to Page 21 on solvency. On the left side, you could see the interest-bearing debt. we can see from the pie chart that in 2025, the absolute value of the interest-bearing debt has declined, which in 2025, from Q1 to Q4 has been improved. And in the same time, the internal structure of the interest-bearing debt has been optimized, which helps the company to reduce our financing cost, which definitely created the most preferential financing cost for the company.

At the same time, if you look at the total credit granted also improved significantly, which laid a solid capital guarantee for our future development. On the very right side, which is very meaningful, it's on asset liability ratio. In 2025, our ALR down by 0.3 percentage point, which is by now the largest reduction ever since we were listed. That reflects our optimization of our solvency position on innovative strategy and execution.

It also reflects the financing strategy of the company is highly robust and healthy. In 2026, we will continue to improve the operational efficiency of our capital so that the asset liability ratio will go down, making sure we have a very balanced and healthy financial position. On the very last part, we could see the cash and net operating cash flow.

On the very left side, you could see the cash and total assets. In 2025, our cash balance versus the total assets has been much improved. This is a result of our lean management of our capital. On the very right side, you could see the net operating cash flow. In 2024 throughout 2025, our net operating cash flow is very aligned with the seasonal unusuals. And whether negative or positive, it is aligned with the industry's performance. But you can see 2025, the operating cash flow fluctuations actually narrowed down, which means the stability of our cash has improved. This definitely safeguards the security of our cash, but also improved the operational efficiency of our company's cash balance.

So from cash flow results, I can see that the growth rate of our net operating cash is outperforming the revenue growth and attributable net profit in 2026. We'll continue to launch the lean management of our cash capital to make sure we have stable, healthy, sufficient cash balance. That's all for me on 2025 financial results.

Great. Let me now take over from Mr. Wang to talk about the outlook. For global wind power outlook, here, we definitely quote from IEA and GWEC's forecast. Simply said, IEA believes that from 2025 to 2030 period, the new installed capacity globally will reach 4,600 gigawatts and cumulative new onshore will be 732 gigawatts, up by 45%. And on the right side, you see GWEC's forecast. They believe from 2024 to 2029, the CAGR for global offshore wind capacity addition will be 28%.

And from 2029 to 2034, the CAGR is going to reach 15%. In China, in the 15th Five-Year Plan, the government outlined the goal of accelerating development of a clean, low-carbon safe and efficient energy system. And of course, by 2030, nonfossil energy will account for 25% of total energy consumption and Chinese government also talk about the local development and utilization of distributed energy and plan for green hydrogen, ammonia and methanol, building new power systems, enhancing the complementary mutual support and safety resilience of the power system.

On the right side, you could see China's key wind power market. This year is the beginning of the 15th Five-Year Plan. Last year, the company has looked at the global industry development and the industry trends to revise our new 5-year plan. We focus on 4 areas, especially green environmental operation, compliance and giving back to the community. We also drafted the goals for all these fronts.

Let me give you a few examples. For example, on green environmental operation, we'll make sure we have a carbon neutrality on operational level. By 2030, we hope that the greenhouse gas emission per megawatt will be declining by 20%. And by 2031, 100% of our global production operation will be powered by green electricity. By 2030, the carbon emission intensity of core components of our generator units were down by 8% with 2025. We also have other goals like recyclable turbines and 100% construction waste and packaging materials recycled.

All in all, Goldwind has really value ethics and compliance and looking for sustainable development. In the last few years, the company has definitely delivered excellent job on ESG fronts. We definitely have been highly recognized by our stakeholders in and out of the industry. During the 15th Five-Year Plan, Goldwind has set ambitious ESG goals to better respond and protect our stakeholders' interest. That's all for me. Thank you all.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good afternoon, the investors. Welcome to the 2025, Q3 Earnings Call for Goldwind Science and Technology Company. We are happy to have the management with us, Chairman, Mr. Wu Gang, Deputy Chair and also President and also Ms. Ma, Board Secretary, Mr. Wang Hongyan, Vice President and [ Group's Internal ] Manager Chen.

So we have 2 parts of this call. We have Ms. Ma to kick off the Q3 industry and development, and Mr. Wang will take you through the financial results. And the second part, we're going to move on to the Q&A, and I'm going to hand over to Ms. Ma.

Okay. Dear investors, good afternoon. Thank you so much for your interest to the company. So I'm going to take you through the industry and company performance and CFO will talk about the financial highlights.

So if you look at the industry review, now on this slide, we're showing you the global wind power market. On the left, this represents 2024, the full year wind power installation. I'm not going to go into great details in the interim results, we have demonstrated this number. And on the right, this is really the pie chart for the 2024 global wind power generation.

The 2024 global power generation improved by 4.4% with renewable energy improving by 9.6% to 9,868 terawatt hours accounting for 31.6%. And also the global wind power generation increased by 8% to 2,511 terawatt hours, representing 8% of global power generation. So China is by far their leader, the wind power reaching 997 terawatt hours, which is 40% of the total wind power and followed by U.S. and Germany, even though China is a far leader by absolute amount by 40%. However, in terms of the penetration, we maintain it at about 50% of the share compared with Denmark, they are over 50%. In Europe, they are at 30%.

So in China, specifically, now in terms of the grid connection gradually expand and rising power generation from January to September, the new connection was increased by 15.6%. The full year cumulative wind power connection was 572 gigawatt hours, which is a total of 15.7% of total installation and thermal power reduced to 40%.

And also, if you could look at, again, from January to June, the total power consumption increased by 3.7% year-on-year in China. So -- and also in terms of the Chinese public tender, so we have seen an incremental 102 gigawatt hours in the 9 months of this year, representing 14% increase year-on-year by different markets. Onshore tender was 97.1 and offshore 5 gigawatts. So you can see the wind power tender price. As you can see, a rising -- a rising trend among stability.

Now in Q3, the government has launched many policy to promote renewable energy, wind power, low carbon and green transition, including July, the National Energy Administration released the 2024 China Electricity Market Development Report. In August, the General Office or CPC Central Committee and State Council issued them opinion promoting green and low carbon transformation.

In September, NDRC and NEA issued notice on improving price mechanism to promote local consumption of new energy. As well as the guiding principle on promoting high-quality development of energy equipment is all providing support to this sector.

Remarkably, on September 24, President Xi Jinping issued a video presentation on the UN Climate Summit, really announcing a new round of contribution targets for the positive contribution to Paris Accord, the overall target, which means China's greenhouse emission will drop again by 7% to 10% by 2030 (sic) [ 2035 ] for promoting the nonfossil fuel consumption mix. We're aiming at 30% non-fossil fuel, wind and solar installed capacity will be 6x as high in that of 2020 and also the forestry stock volume will be 24 cubic meter -- 24 billion cubic meter.

So all this is effectively driving the global low carbon transition. So amid the macro background, the company's performance. Now first of all, if you look at the sales from Q1 to Q3, we have made 18.4 terawatt increased by 90% from the first 3 quarters, we have exceeded the total sales of last year.

As you can see, particularly, we are seeing like the 4 megawatt and below is only 0.12%. Our 4 to 6 megawatts was 13.8% and 6 megawatts and higher includes 86% to 15 terawatts. In terms of backlog, end of Q3, the backlog was 52.5 gigawatts with external backlog 49.9 gigawatts. And also, we have an external order backlog totaled 49.9 gigawatts, including 11 gigawatts of successful bid and 38.9 gigawatts of signed contracts.

As you can see, external order mix, primarily 41 terawatts with 83% coming from the unit above 6 megawatts. Now our international business has been going on well in 41 countries around the world where, we have business presence. And by the end of Q3, the accumulated ex-China installation was 11 gigawatts in China, ex-China -- in Asia ex-China is more than 3 gigawatts. In the Latin America, Oceania, we have more than 2 gigawatts of installation.

So right now, our overseas backlog was 7 gigawatts. So for international delivery and sales, this is going to be a strong support with such a volume of backlog. Now from January to September, we added 745 megawatts of attributable grid connection wind power. As of end of September, our attributable grid-connected wind power project totaled 9 gigawatts. And also, we are having an attributable under construction wind capacity at home and abroad total 4 gigawatts. So if you look at the pie chart, you can see the highest is Northwest, which is 67%, followed by North China, 25% East China was 8%.

So the 4 megawatts under construction, so most of it was the Northwest and North China. So Jan to September, the utilization rate hours 1,700 hours. So that was the industry background. I'm going to hand over the CFO for the financial results. Thank you.

Thank you. Good afternoon, everyone. I'm Wang Hongyan from Goldwind. Thank you so much for your interest in Wind Power, and thanks for joining this call. And I'd like to take you through the 2025 financial results in Q3. So there are 4 parts of my talk.

Like consolidated profitability, operating cash flow. So again, as a rule, the dark was the previous year -- dark one was this year and the gray bar was the previous year. So you can see from this chart, there are 4 metrics on the upper left, revenue in 2024 compared with the 3 quarters in 2025, represented in gray bar and blue bars.

As of the September 30, the revenue was CNY 48.1 billion, which is historical high, increased by [ CNY 10.3 billion ]. As in Q1, Q2, Q3, we have seen increase year-on-year. The growth was mainly coming from the wind turbine manufacturing on the upper right, this is the comprehensive profit margin. As of September 30, the comprehensive profit margin was 14.39%, down by 2.04%. It's mainly because revenue mix changes and the turbine manufacturing increase revenue, as you can, manufacturing has a lower margin compared with the other 3. So comprehensive margin was slightly down as of September.

Our gross margin was up by CNY 1.39 billion. So higher margin dollar amount coming from the turbine manufacturing. And lower left, this is attributable net profit. Our net profit CNY 2.08 billion, increased by CNY 792 million and is mainly because of the improvement of the profitability. On the lower right, this is the weighted average of ROE as of September 30. The comprehensive ROE was 6.67%, increased by 1.9 percentage points.

Again, you can see Q1, Q2, Q3 ROE has all have been improving in a quarter-to-quarter basis. So as of September 30, the revenue, margin, attributable profit and weighted average ROE is really matching to our operational plan, and we have seen further improvement of the profit structure.

So now this is about the operating index on the left, this is the account receivables. As of September 30, our AR as a total mix of assets 21%, 1 percentage point higher and the turnover days of 175 days, which is 9 days shorter. This thanks to the increase of revenue and we'll continue to collect in Q4 so that we can reduce the AR days to meet that target.

On the right, this is the inventory and contract assets as of September 30, it accounts for 13% of total assets, which is down by 2 percentage points. The average turnover days 130 days. And inventory have been improving as efficiency. So as the inventory -- efficiency, we have seen improvement year-on-year.

So -- and now on the 15th slide, this is the solvency metrics. On the left, this is our interest-bearing debt. As of September 30, interest-bearing debt accounts for 41% of total liability, which is down by 7 percentage points. As you can see, compared with last year, we have been lower. We've been lower by CNY 5.3 billion. So we optimized the interest-bearing debt, improving the cost of fund using.

On the right, this is the asset liability ratio. At the beginning of the year was 73.96%, which is CNY 1,502 billion as of September 30, it was 71.11%. Total assets, CNY 167 billion in total assets. So asset liability ratio has been lower compared with historical number or compared with the peers, they have all shown the asset liability ratio has been well managed to achieve good results, thanks to 2 measures.

First of all, the equity asset improvement, which includes the profit improvement and also the equity financing. And also, we have been managing the -- optimizing the current and noncurrent assets. So when we are controlling the financial risk, we will further enhance our equitable assets to make sure we maintain a reasonable and healthy asset liability ratio.

The last slide is the cash flows and cash in stock. On the left, this is our cash and total assets as of September 30. It accounted for 5.65% of cash, total assets. This is actually lower compared with the past. On the right, we are seeing the net operating cash flow with 2 features. First of all, the cash flow is in line with the seasonality. In the last few years, the trend of operating cash flow has been consistent.

And the second feature is clearly, you can see the net operating -- net cash outflow has been narrowed. As of September 30, it was CNY 633 million net cash outflow. So narrowed by CNY 58.7 billion compared with last year. So it really helped attributable to improving the management of collection and payment. So we are actually having results in enhancing profitability and also benefiting from better cash flow. So this is the Q3 2025 results. Thank you.

Thank you, management, for that presentation.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Dear investors, good afternoon. Welcome to join us at Goldwind 2025 Interim Results Announcement Telephone Call. Today, joining us, including Mr. Cao Zhigang, VP and Board Director; VP, Board Secretary and Company Secretary; Ma Jinru, CFO, Wang Hongyan; and Mr. Chen Qiuhua, Group VP and GM of Wind Power Industrial Company.

Now Madam Ma Jinru is going to walk us through the industry development and company's operation for first half of 2025. And then Mr. Wang Hongyan is going to walk us through the financial indicators, and then we'll kick off our Q&A.

Madam Ma, please.

Thank you. Am I audible? Okay. Dear investors, good afternoon. Welcome to join us at 2025 Goldwind interim results announcement, and thank you for your long-term support and care to the company. Let me now walk you through the industry development update.

This is the GWEC global wind power market update. As you could see, previously, we have updated it on the Bloomberg global data, but now GWEC as a professional council, they have more authoritative data. 2024 global new installation was 117 gigawatts, onshore wind, 109 gigawatts, offshore wind totaling 8 gigawatts.

By region, APAC accounts for 75% of the total installation. China represents 68% of the total installation. On the right side, you could see the wind power price from '21 to 2024, the LCOE of onshore power declined by 70%, whereas in China, it declined by 68% from 2010 to 2024. Now the global LCOE is USD 0.034 per kilowatt. And in China, it is now USD 0.029 per kilowatt hour.

The LCOE of offshore wind power declined by 62% from USD 0.208 kilowatt hour in 2010 to USD 0.079 kilowatt in 2024, whereas in China, the onshore -- the offshore wind power LCOE also declined by 72% -- let's look at grid connection. In first half of 2025, China recorded 51.4 gigawatts of new connection increased by almost 100%, of which onshore 48.9 gigawatts and 2.5 gigawatts for offshore. As of June 2025, China's cumulative grid connection for wind power totaled 572.6 gigawatts, taking 15.7% in China's power mix, where thermal power declined further to 40.4%.

You can see that the installation of renewable energy has surpassed that of thermal. On the right side, you could see the power production and utilization hour. China in the first half of 2025 has used Total power was 3.7% year-on-year increase, where power -- wind power production in China increased by 16.6%, representing a penetration rate of 12.1% utilization rate of wind power is 93.2%.

The national average wind utilization was 1,087 hours, 47 hours decrease year-on-year. Let's look at the public market tender market. In 2025 first half, you can see that the market totaled 71.9 gigawatts in first half 2025, 8.8% year-on-year increase. 71.9 gigawatts is definitely a very large capacity by market.

Onshore public tender market totaled 66.9 gigawatts and offshore 5 gigawatts. By region, of course, northern part of China accounted for 77%, while south part accounts for 23%. On the right side, you could see the average monthly bidding price. We can see that the bidding price is stabilizing and raising by the end of June, the overall average bidding price of all WTG suppliers in the market recorded 1,616 per kilowatt.

And in first half of 2025, in China, we have multiple policies to support wind power. Of course, there are energy policy updates -- in January 1, 2025, the energy law of PRC came into effect proposing to improve the energy development, utilization policies, optimizing energy supply, consumption structure and promoting clean and low-carbon energy. On January 7, 2025, NDRC issued a national unified market construction guidelines proposing establishing a national unified energy market system.

On February 9, 2025, NDRC and AER jointly issued notice on deepening market-oriented reform of unrid power tariffs for new energy to promote high-quality development. That's a very well-known document. It proposes to deepen the market-oriented reform of unrid power tariffs and promoting full entry of new energy generation into China's power market. On the right side, you could see policies that promote low-carbon transformation.

In February 27, -- the NEA issued the Guiding Opinions on energy work in 2025, proposing to increase the proportion of nonfossil fuel power generation capacity to almost 60% and proportion of the nonfossil fuels to about 20%. On March 5, 2025, government work report, it also proposed steadily advanced carbon peaking and carbon neutrality, establishing a zero carbon parks and factories.

In May 25, 2025, the State Council also had reviewed and proved the manufacturing industry green low carbon development action plan pointed out the need to accelerate green technology innovation and advancing the green transformation of traditional industries. On the right side, you could see the green certificate market development and how the energy innovation were going to be expanded.

For example, on March 6, 2025, 5 ministries included the NDRC issued opinions on promoting high-quality development of renewable energy green power certificates market proponing that by 2027, green certificate market trading system will be completed. In April 11, 2025, NDRC also issued a guiding opinion on building virtual power plants. By 2027, the construction operation and management mechanism for virtual power plants will be mature, and there are going to be at least 20 million kilowatts adjusted capacity provided by virtual power plants by then.

By May 21, NDRC also issued a notice on developing green power direct connection proposing to strengthen the overall building of the market. All these policies will definitely facilitate a low-carbon energy like wind power steady development. Against that background, let's now talk about our performance from the company.

We have 4 segments. We issue our results in different segments, including WTG manufacturing sales, Wind Farm Development, Wind Power Service and Other Business. In first half, all of these 4 segments presented sound development. WTG sales definitely grew by almost 100%, accounting for 76% above of all our revenue.

The Wind Farm Development also developed robustly, now accounting for 11% of our total revenue. We will walk you through the different segmental performance. Now the first segment. During the first half of 2025, we have external sales capacity of 10,641 megawatts representing an increase of 106% year-on-year. Sales capacity of WTG at 6 megawatts and above totaled 8,672 megawatts, taking 81.5% of total sales and that of 4 megawatts to 6 megawatts, taking 18.3% and below 4 megawatts, taking 0.2% of total sale capacity.

If you look at the order backlog, we could see the total order backlog was 54.8 gigawatts and the external order backlog totaled 51.8 gigawatts, including 10.4 gigawatts of successful bid and 41.4 gigawatts of signed contracts. And if you look at the external order mix, we can see that there are capacity units below 4 megawatts accounting for 1%, between 4 to 6 megawatts, accounting for 15% and for above 6 megawatts accounting for 84%.

If you look at our global expansion, we have seen very steady growth where we have cumulative installation in overseas market, for example, in South America, exceeding 2 gigawatts, in Asia, exceeding 2 gigawatts. As of June 30, the order backlog in overseas market totaled 7,360 megawatts. If you look at the grid connection, company has added 709.04 megawatts of attributable grid connection wind power capacity and we sold about 100 megawatts at home and abroad.

If you look at the 8 gigawatts capacity on the right side pie chart, you could see the distribution. For example, in Central China, it talks about 32% and the Northwestern part, of course, a big chunk. Other parts, for example, North China, 22% and Northwestern 28%; East China, 32%. If you look at the right side, most of the capacity are in Northwestern China. Now let's talk about the utilization. You can see that in first half of 2025, our South wind farms recorded 1,265 hour utilization. That is 168 hours higher than that of national average.

Let's look at the wind power service business. By June 30, the company's under operation capacity totaled 45.95 gigawatts, up by 37% year-on-year.

That's all for my introduction. Now I'll hand over to our CFO to walk you through our financial results.

Dear investors, good afternoon. Goldwind Science and Technology is very happy to report to you our profitability index, and thank you for your support to us, especially for your interest in wind power market, and thank you for joining us today at the results announcement. Let me now walk you through the 2025 first half financial index.

On Page 15, you could see that the consolidated revenue, GP margin. On the left side, you could see -- on the left side, upper corner, you could see the revenue. You could see the list of our revenue in gray and in blue, representing the revenue in 2024, 4 quarters and in 2025.

Our revenue is very historically high, which is definitely attributable to our WTG manufacturing. Our revenue totaled CNY 21.852 billion. If you look at the profit margin, it is 15.35%, which is much higher than the second quarter. If you look at the -- gross profit increased by CNY 693 million, mostly coming from the WTG manufacturing business.

On the left side, you could see the net attributable profit, which totaled CNY 1,488 million, CNY 110 million increase year-on-year. Mostly, it's a much improvement because of the optimized business operation. If you look at the ROE, the weighted average return on equity in the first half of 2025 is 3.85%, up by 0.12 percentage points. Why? Because of our net profit increase.

Of all quarters in this year, the weighted average return on equity will optimize quarter-by-quarter. It is because of the first half in 2025. If you look at the revenue, the profit margin, the attributable net profit and the weighted AROE, it is improving comparing the performance last year, our operation is improved.

Now let's look at Page 16. Just now, we talk about our sales capacity as Madam Ma has briefed. First segment is our WTT manufacturing and sales. revenue is CNY 21,852 million, and our GP margin is 7.9%. So in first half of 2025, our WTG manufacturing sales business structure is much improved, which delivered us a scale-based performance and Wind Farm Development revenue, CNY 3,172 million and profit margin, 57.5% year-on-year. while last year, it was 56.4% with the Wind Power.

So it is because of the policy, the data is going to change in the future. Now let's look at Wind Power Service revenue, CNY 2,896 million, profit margin, 22.5% and the business is very stable. The revenue and profit margin changes coming from the EPC revenue increase from overseas and other business is very stable. The very last segment is Other Business, we call it environmental protection business.

The revenue shrank a little bit because of some water treatment solutions have seen decreased revenue. So in the future, the profit margin is going to rely on the water tariff increase. And of course, we have seen less investment return from our investment projects. which is quite normal for the company as we start to steer upon our main principal business. Now you can see the days of trade receivables at the end of June 2025, trade receivable taking 21% of total assets increased by 2 percentage points, whereas the days of trade receivable is 173 days, much more improved because of our revenue increase.

In 2025, we will continue to improve our days of trade receivables so that we could reduce our trade receivables proportion out of our total assets and total revenue. On the right side, you could see days of inventory and contract assets in first half of 2025. Inventory and contract assets account for 12% of total assets, down by 2%. And the days of inventory is 130 days, much more improved compared to first quarter of 2025.

On Page 18, you're going to look at the solvency position on the left side, you could see the interest-bearing debt. End of 2025, company's interest-bearing debt taking up 41% of our total liabilities. If you look at quarter-by-quarter or year-on-year performance, this position is decreasing. So the interest-bearing and noninterest-bearing debt structure has been much improved.

And if you look at interest-bearing debt itself, the structure is much more improved where capital utilization cost has been much improved. And the financial cost is also decreasing, which reflects the debt structure improvement. On the right side, you could see the asset liability ratio -- in the beginning of the year, debt ratio was 73.96%, whereas in first half 2025, the asset liability ratio is 73%, totaling CNY 161 billion.

So that means our asset liability ratio is continuously improving, and the company will continue to focus on its improvement. We're going to manage our long-term assets, current ratio, improving our debt structure to make sure we have more growth out of our attributable assets, and the company is now drafting our 15th 5-year strategy so that we could further improve our asset liability ratio.

While we are mitigating financial cost proactively, we want to make sure the sound health of our asset liability ratio. The last page is our cash flow, especially the net operating cash flow. On the left side, you could see our cash in first half of June 2025, total ratio of cash to total assets is 5.93% year-on-year, it's very flat. And quarter-by-quarter, it is decreasing, which means capital utilization efficiency is much more improved.

On the very right side, you could see the net operating cash flow. Here, there are three factors. Number one, our operating cash flow trend is very much aligned with the seasonal changes in the industry. Over the years, the trend is very similar. Second feature is you could note that the net operating cash flow outflow is shrinking. In first half, the outflow is CNY 2.9 billion. which is much more improved.

It is the smallest outflow in the last 5 years. Why? It is because we have more lean management tools, especially on how we manage our key accounts, how we manage our cash structure. Secondly, it is also attributable to May 31 policy and the last year of the 14th 5-year plan and the increase of the overseas orders.

So in the first half of 2025, our operating cash flow is improved. The third feature is the inflow is not going to be less than attributable net profit, which means that while we continue to improve our profitability, we continue to increase more cash balance in our account.

That's all for me. Thank you to all shareholder support.

Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]