Falling wind, solar profits hurt Guodian Technology's bottom line
Jul 11, 2013 - Chinese firm Guodian Technology & Environment Group Co Ltd (HKG:1296) yesterday said it expected a 25% to 35% on-the-year drop in first-half net profit due to declining income at its wind and solar power segments.
In the first six months of 2012 the company booked a profit of CNY 257.3 million (USD 42m/EUR 32m), the wind turbine maker noted.
The company explained that its wind power products and services sub-segment had been affected by the slow down on the Chinese wind power market. This led to reduced wind turbine orders. Also, Guodian Technology saw its marketing and selling costs rise due to its efforts to boost its market share and growing fuel prices.
As for the solar power products and services sub-segment, the company explained that some of its projects were completed and kicked off operations, thus lifting the amount of depreciation for these assets. The solar parks brought additional expenses and loan interests in the first half of 2013, Guodian Technology added.
On a positive note, the company said that the environmental protection solutions sub-segment had achieved “substantial growth” offsetting in part the weak performance of the solar and wind segments.