President of Goldwind Technology Discusses Development of Wind Power Industry

President of Goldwind Technology Discusses Development of Wind Power Industry It is still working according to the law of value, stresses integrity and keeping promises, has a good reputation in the industry, witnessed and promoted the development of China's wind power industry. A few days ago, a journalist’s reporter had an exclusive interview with Jinfeng Science and Technology Chairman and CEO Wu Gang. He put forward his own unique views on the current issues related to the development of China’s wind power industry and the development strategy of Goldwind.

Rationally view the changes in the wind power industry

Reporter: Since last year, China's wind power industry has entered a period of adjustment and adjustment due to wind power cuts and other factors in the “Three North” region. How do you view the current status of China's wind power industry adjustment?

WISCO: The current adjustment of the wind power industry has a very complicated global and Chinese economic background. However, we must realize that the development of any thing is not smooth and it is spiraling upwards. The key is to understand objectively that, after a long period of rapid development, although the results are mainstream, there are indeed problems in this industry and beyond.

I think that in terms of national macroeconomic policies and public awareness, we must re-evaluate the value of renewable energy. New energy has made significant contributions to China's current industrial restructuring, reducing environmental pollution, replacing fossil energy, solving employment, and promoting manufacturing to go global. However, there are always people who hold doubts and hesitations about wind power. Understandable. It is now necessary for the entire society to have an objective and scientific assessment of renewable energy. So far, there is no evaluation system that uses the economic contribution of the five contributions of the wind power industry to the economy. If it is carefully calculated, wind power The economic value contribution will be far greater than the subsidies he currently receives.

In this adjustment process, if we can calmly and earnestly think about it, doing some things in the wind power industry will be conducive to the rise of the next round of new energy industries.

Reporter: Wind power is a highly policy-oriented industry, and policies play an important role in industrial development. Where do you think the country should provide support for the development of the wind power industry?

WISCO: I look forward to the country's adherence to the strategy and orientation of renewable energy development, the introduction of policies to protect the interests of investors, and the promotion of the rapid development of the power grid, and the timely subsidy policy. Investors are the leader of the industrial chain. If the interests of investors are compromised, the entire industry chain will be damaged. For example, if investors' electricity bills are not paid in time, it will cause a triangle debt. Now wind power generators, including leading wind turbine manufacturers, are facing a loss-making operation, and they have huge accounts receivable. In the long run, companies will have no money to do. R & D and quality improvement, the quality of parts will also decline, and ultimately will inevitably lead to the decline in the quality of equipment in the industry as a whole, the emergence of counterfeit and inferior products, the industry development will also be a great risk, in fact, within the industry within the past two years, dozens of aircraft broke out The painful lesson of the deaths tells us that wind power urgently needs a healthy policy environment and a healthy competitive environment.

Another very important point is the power system reform. I believe that continuing to promote China's power system reform is a necessary way. Through the reform of the system, we can find many market methods, solve the problem of subsidies for wind power, and reduce the burden on the country to better meet the needs of the country's economic, social, and environmental development. The "Third Industrial Revolution" mentioned in the book that the direction of the future power system reform is to encourage the integration of the Internet and the power grid, encourage the development of terrestrial and distributed power supply, and increase the efficiency through intelligent power supply and demand The efficiency of energy use to reduce the waste of fossil resources and transmission losses, but also the driving force for economic growth. Through reforms, many new industries such as smart grids, instrumentation, and energy storage batteries can be derived, which will make a great contribution to the entire economy and human development.

Reporter: Since last year, the national energy authority has also issued a series of policies and measures. How do you evaluate the changes brought about by these policies and measures?

WISCO: A series of measures of the National Energy Administration played a very good role in the process of industrial adjustment. First, standardize the approval process to avoid the behavior of grid construction when investors do not approve to build and build first; secondly, strict technical specifications for the equipment on the Internet require the low-voltage ridethrough transformation of wind turbines, which is beneficial to the grid connection of wind power. Third, taking into account the unevenness of future market development, the approval of the “Three North” project will be slowed down, and the approval of the South project will be accelerated. This is a very good guide. This orientation has also promoted the diversification of technology and market, such as the 87-meter impeller diameter and 93-meter impeller diameter of 1.5MW low wind speed and ultra-low wind speed introduced by Goldwind Technology, especially in the southern regions, especially hills, high altitude, etc. In the region, sales are very good. Fourth, the National Energy Administration also promotes the transparency of wind power operation data and delivers real information to the industry.

In addition, the National Energy Administration has also done a lot of work, such as coordinating the opening of the North-South Passage and East-West Passage EHV transmission lines. Jiuquan 750 kV has been put into operation in Gansu Province, which has greatly eased the phenomenon of wind power discontinuation. In short, the healthy growth of the wind power industry is inseparable from the gravitation and escort of the national strategy.

Changes inspire corporate innovation

Reporter: What impact has the adjustment of the wind power industry brought to the Goldwind?

WISCO: In recent years, changes and adjustments in the industry have had a great challenge to Goldwind. However, Goldwind has made good use of this challenge and raised the quality and performance of products to a new level. Under the guidance of the long-distance running theory of "Who plays the quality brand, who has the future" in China, Goldwind's honesty and trustworthiness culture has been Recognized by the majority of investors, from the wind power investment company's operating performance, it can clearly see the different contributions of gold wind equipment quality and performance. For Goldwind, structural adjustment is not necessarily a bad thing. In the past year, profits have fallen sharply, and wind turbine manufacturing business is currently facing losses. However, under such circumstances, Goldwind needs to strengthen its refined management capabilities and strengthen investment in R&D. Goldwind will launch a new version this year. 93 Low wind speed models have also brought good benefits to customers.

Now, our management is more rigorous, more efficient, and a stronger sense of performance. This is an intrinsic change in the business caused by changes in the industry. I think that this change is moving in the direction of intensive management. It should be a progress, not a retrogression. Goldwind Technology is in good financial condition and its comprehensive gross profit margin is maintained at a healthy level and is expected to further improve.

In this industry adjustment, Goldwind has further thoughts about itself and the industry experience is difficult. We must also require ourselves to be stricter in terms of integrity, product quality, and safety. As suppliers, the value we provide to our customers should be reflected through the entire life cycle of wind turbines of 20 to 25 years. If we only provide short-term, low-cost equipment, we have long-term, huge maintenance and overhaul costs. This practice will undermine the structure of the investment income of the developers and bring great risks to the developers. The fan price war is very detrimental to the long-term healthy development of the industry.

Reporter: In the context of industrial adjustment, Goldwind newly installed its equipment in 2011 and returned to the top position in the industry. What does this mean? How do you currently view this "first" position?

WISCO: I have different views on this "first". To evaluate a company, you should not use a single data to speak, but rather a series of indicators. In addition to the scale, it should also include market integrity, product quality, research and development capabilities, financial indicators, etc. for suppliers and customers. For example, some suppliers in the tendering and bidding process are falsifying on the power curve provided, so that the customer uses this power curve to calculate the fan wind turbine efficiency Cp value exceeding 0.7. This is a common-sense problem and an integrity issue, so I especially hope that There is a new evaluation standard in the wind power industry to evaluate companies and evaluate products. Because what kind of evaluation criteria will be used, what kind of direction will it bring? Under the guidance of the current evaluation criteria, it will result in low-price competition. Ultimately, investors themselves take on huge risks. In fact, this is unfavorable to the healthy development of the industry.

We set up such a concept for the cadres and employees of Goldwind Technology as a manufacturing company to ensure product quality is the first place, and ranking first in the market is not the most important. If after the first row, the customer is not satisfied with the service and quality, there is no follow-up product, or will be left behind, such a first place does not make sense.

From another point of view, last year we returned to the domestic market first, which also shows that Goldwind's more pragmatic guidance has played a certain role.

Reporter: So, do you look at the adjustment of the industry with a positive attitude and look at the current position of Goldwind with a calm attitude?

WISCO: Yes. From this year on, we have even more calmed down. If industrial adjustment is a "bad thing," we must turn this "bad thing into a good thing." Recently, we recommended Goldwind's management to read five very famous works of Mao Zedong's philosophy, including "Contradiction" and "Theory of Practice." The development of all things is driven by contradictions. If there are not so many problems and contradictions, then like a backwater, things will lose their internal motivation for development. Actually, the power grid is getting faster and faster. The investment in the basic construction of wind power access to the power grid is also huge. At the same time, the National Energy Administration requires more transparency in operational data, and it must require development quality to be emphasized at the same time as the development scale. Manufacturing self-discipline creates a transparent market environment. The contradiction between price and cost within the company is precisely the driving force for the company's R&D, management, and service changes. In the past, it was more difficult to carry out enterprise reforms. Now we say that we must reform our hearts and support everyone. Because everyone knows that survival will be affected.

Multiple Layouts Create Core Competitiveness

Reporter: Goldwind Technologies is committed to providing “whole wind power solutions”, including R&D and sales of wind turbines, “one-stop” services, and investment in wind farms and even smart microgrid technology services. What are the reasons?

Wuhan Iron and Steel: This is related to the gene growth of Goldwind Technology. Goldwind originally turned out to be a developer and operator. Later, because of the high cost of equipment, it extended its industrial chain into the manufacturing industry. I have been working in a wind farm for nearly ten years and have been working with wind turbines almost every day. Therefore, we are very familiar with the equipment and we are very familiar with the entire process of the wind power project. Now we are investing in the industry chain to help clients develop some projects and they are very clear about the whole industry chain process. This is where our competitiveness lies. Goldwind Technology enhances our value by providing customers with services in the entire industry chain in the market competition, and increases our own value by creating value for customers. This is the way we live.

Currently, there are seven business units in the organization structure of Goldwind Technologies. Fan manufacturing is only one of them. We also have wind farm investment development, electronic control system manufacturing, wind power services, trade, investment, and international business. Goldwind is a company that focuses on diversified development in the new energy industry.

Reporter: The internationalization strategy of Goldwind Technology has performed outstandingly in wind turbines. What is your reason for Goldwind's "indigenization to promote internationalization"? How do you see the difference between China's wind power market and the international wind power market? What is the future position of China's and international markets in the development of Goldwind?

Wuhan Iron and Steel: According to industry association statistics, over 80% of China's export of wind turbine equipment last year came from Goldwind. The internationalization of Goldwind Technology started from developed countries because the technical standards and regulatory requirements of developed countries are relatively strict. We believe that the process of internationalization is the process of transforming the company's internal management and improving product quality. Secondly, from the point of view of corporate growth, the current global economic integration, companies want sustainable development, and only the domestic market does not do foreign market development is limited, this is a development trend.

In 2011, international market revenue accounted for nearly 10% of Goldwind's total operating revenue. Up to now, Goldwind's overseas projects have been distributed in 17 countries, spanning six continents in the world; it has obtained 14 projects in the US market alone, and has distributed nearly 10 states across the United States. As of September 30, 2012, Goldwind received an international order of 372MW, an increase of 68% compared to 221MW as of June 30, 2012. We expect that in the next three to five years, Goldwind's international market share will reach about one-third of its total business revenue. In the next few years, Goldwind's internationalization strategy will gradually advance from five dimensions, namely, the internationalization of technology and products, the internationalization of human resources, the internationalization of markets, the internationalization of capital operations, and the internationalization of management.

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