FAST NEWS:  Goldwind drops ‘Xinjiang’ from company name

The Latest: Wind power equipment maker Xinjiang Goldwind Science & Technology Co. Ltd. (2208.HK; 002202.SZ) announced on Thursday that its shareholders approved a motion to drop “Xinjiang” from its company name. Going forward, the company will now simply be known as Goldwind Science & Technology Co. Ltd.

Looking Up: Discarding its geographical identity in its name may help to advance the company’s global expansion. Xinjiang has also been a source of recent controversy unrelated to Goldwind, so eliminating that element of its name will create less distraction for investors.

Take Note: Goldwind posted its worst performance in a decade in 2022, with revenue down 9% for the year. Its sales continued to sag in the first quarter of 2023, falling 12.8% year-on-year, while its net profit dropped by a milder 2.4% to 1.23 billion yuan ($170 million).

Digging Deeper:  Headquartered in Northwest China’s Xinjiang region, Goldwind was founded 24 years ago and is now the world’s biggest wind turbine maker and largest maker of wind power equipment in China. The company has recently begun complementing its manufacturing activities with a rapid expansion of its business of building and servicing wind farms as demand for such renewable energy booms with the race to fight climate change. Goldwind counts Blackrock, Citigroup and Singaporean sovereign fund GIC among its investors, though most of those have recently sold down their stakes.

Market Reaction: Goldwind’s Hong Kong-listed stock opened flat at HK$5.19 on Friday and was down slightly in early trade. The shares now trade near the lower end of their 52-week range.

Reporting by Chan Ka Po

Have a great investment idea but don’t know how to spread the word? We can help! Contact us for more details.

To subscribe to Bamboo Works free weekly newsletter, click here