QUARTERLY JUN. - OCT. 2016

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1 JUN. - OCT MARKET&BUSINESS DEVELOPMENT DEPARTMENT BUSINESS PERFORMANCE P.0 GOLDWIND QUARTERLY MARKET ACTIVITIES P.1-6 WIND INDUSTRY RESEARCH P.7-8 BUSINESS PERFORMANCE At the end of Q3 2016, Goldwind accumulated installed capacity exceeded 36GW worldwide, comprised of over 35 GW and units in China and over MW and 527 units overseas. At the end of Q Total Revenue:$ 2.5 billions Net Profit: $319.5 millions Total Assets:$9.17 billions Business Performance 0

2 MARKET ACTIVITIES Goldwind wins over Project Balikesir & Bandirma in Turkey Turkey(July 26, 2016)-Goldwind made an important milestone of signing a contract to provide wind turbines for both the Balikesir & Bandirma wind projects. Both Balikesir & Bandirma projects will be located in Western Turkey, a land known for its strong winds and already become the most centralized location for wind farms. The total planned capacity is 10.5MW, provided by 7 GW82-1.5MW wind turbines and a 10-year O&M agreement. At the meantime, in order to fulfill the localized incentive policy, Goldwind has already made an announcement that the procurement process of tower will be made in the local region. Market Activities Turkey 1

3 Goldwind wins 99MW deal in Pakistan Beijing (Aug 11, 2016) - Goldwind and Shanghai Investigation Design & Research Institute co., Ltd held a signing ceremony regarding the project Three Gorges Wind Eagle II. This project is the second project of China Three Gorges Corporation (CTG) in Pakistan. The wind farm will consist of 66 GW-1.5MW operated by CTG. The project is estimated to cost USD$230 million, It is expected to generate around 300,000 megawatt hours (MWh) of electricity annually and commercially operational in To date, Goldwind has received orders for more than 400MW of wind turbines in Pakistan. Market Activities Pakistan 2

4 Goldwind holds successful marketing campaign in Iran Teheran (July 16, 2016)-Goldwind organized a successful marketing campaign in the capital city of Iran. More than 90 specialists representing the Renewable Energy Organization of Iran (SUNA), Iranian Wind Energy Association (IWEA), local developers, grid companies and science institutions attended the campaign. Goldwind and its business partner China Export & Credit Insurance Corporation International (NORINCO) gave a comprehensive introduction regarding the cutting-edge PMDD technology, specific features for wind turbines in Iran, lifetime service of wind farms, the policy of China Export &Credit Insurance Corporation and the EPC capability of NORINCO International. Iran s wind power industry is getting plenty of opportunities after decades of silence. Iran Energy Agency set the FIT at USD$ /kWh depending on the capacity of each. The PPA agreement is signed between SUNA and the power generation companies. Meanwhile, NDF has provided a fair amount of low cost financing approaches for solving the financial problems in some projects. Market Activities Iran 3

5 Innovating for A brighter tomorrow Nairobi, Kenya(Sep 14, 2016) - Goldwind held a marketing campaign, partnering with local developers and grid companies, with over 40 representatives in attendance. Goldwind made a comprehensive introduction about the company s overview; the cutting-edge PMDD technology and specific feature for wind turbines customized for Africa market, and financing solutions for Kenya, one of the most important wind markets in Africa for Goldwind, is facing the identical issue like other Africa countries - electricity shortage. In 2009, Goldwind has started to develop the wind market in Africa and made some achievements in Ethiopia and South Africa. This event put Goldwind, developers and related industries together to create a better environment for the future. future projects. Market Activities Kenya 4

6 $6m Federal funding for Goldwind s White Rock Solar Farm at Glen Innes The Deputy Prime Minister and Member for New England, Barnaby Joyce has welcomed the Federal Government s funding announcement of $6 million from the Australian Renewable Energy Agency (ARENA), for Goldwind Australia s White Rock Solar Farm proposal, near Glen Innes. The development is a pioneering hybrid solar/wind renewable energy facility for the New England Tablelands. It is expected to generate around 46,000 megawatt hours (MWh) of electricity in the first year of operation, enough to supply the equivalent of approximately 7,200 average NSW homes. The project is an investment of $45M with $6M expected to come from this grant. White Rock Solar Farm is one of twelve projects to be awarded a grant from the Australian Renewable Energy Agency (ARENA) large-scale solar competitive funding round. In response to the ARENA large scale solar program, the project was accelerated and the development consent was secured in mid-june With the award of the ARENA grant, the project can now look towards commencing construction in early 2017 and being fully operational by the end of Fast facts Australia is set to triple its large scale solar energy capacity ARENA stated that 12 projects will share $92 million White Rock Solar Farm, 20 Megawatt, ARENA funding $6 million, total Project cost $44.5m. Goldwind will also construct the 175MW White Rock Wind Farm utilising 70 of its advanced technology 2.5MW wind turbines. Market Activities Australia 5

7 Goldwind Australia and New Gullen Range Wind Farm would like to jointly announce that Gullen Solar Farm achieved the Australian This demonstration project is an important step for the colocation of Wind and Solar, which has never been done before in Australia at this scale. John Gardner, VP Program at Goldwind Australia Renewable Energy Agency (ARENA) Financial Close Milestone on the 15nd July Gullen Solar Farm will be a 10 MW AC solar photovoltaic (PV) power plant co-located on the Gullen Range Wind Farm. The development is a pioneering hybrid solar/wind renewable energy facility for Australia. Gullen Solar Farm is designed to benefit from sharing part of the wind farm infrastructure, including the substation, grid connection and access tracks. The opportunity to share wind farm infrastructure maximises the use of available facilities without requiring construction of additional facilities elsewhere. Co-location of the project is assessed to unlock $6 million of savings. The project is expected to generate around 22,000 megawatt hours (MWh) of electricity in the first year of operation, enough to supply the equivalent of approximately 3,100 average NSW homes. The solar farm is initially planned to sell its power without a Power Purchase Agreement. Market Activities Australia 6

8 WIND INDUSTRY RESEARCH Turbine Price According to Bloomberg turbine price Index, global turbine prices fell 26%, from EUR 1.21m/MW in H to EUR 0.89m/MW in H in the last seven years. In the same time, levelised turbine production cost dropped 51% from EUR 550/MWh/yr in H to EUR 266/MWh/yr in H Their index indicates that while turbine prices per MW are expected to rise slightly, the costs per MWh continue to fall due to several projects with high capacity factors scheduled for delivery. After changes to the subsidy support mechanism in the US, North American market will face an under-supply from 2016 to 2018 before recovering towards the latter half of the decade. Europe turbine prices will fall after facing an oversupply. Latin America will remain under-supplied until 2020, unless new manufacturing facilities open locally. Figure 1 Wind Turbine Price Index mean price by delivery date, H H (EURm/MW) Wind Industry Research 7

9 O&M Price Index According to Bloomberg s O&M Price Index, analyzing pricing and trends for 17.5GW of actual, undisclosed O&M contracts. Pricing for initial full-service agreements declined by 17%, from EUR 26.1k/MW/year in 2014 to EUR 21.6k/MW/year in They believe that the decline in average prices was due to an increase in the percentage of Latin American service agreements that contributed to the latest Index. owner, with larger owners able to command lower pricing on initial full-service contracts. Tier 1 independent power producers are able to access the lowest pricing at EUR 20.9k/MW/year, while utilities and Tier 3 IPPs see the higher full-service pricing, at EUR 23.1k/MW/year and EUR 28.5k/MW/year, respectively. Shorter initial O&M contracts were increasingly popular amongst index participants. Asset owners are shortening terms in anticipation of a move to in-house O&M Average pricing varies by asset. Figure 2 Average price for full-service renewal contracts by signing date, (EUR k/mw)/year) Wind Industry Research 8

10 GOLDWIND QUARTERLY Goldwind offers customers the ability to access proprietary PMDD technology that provides greater efficiency and reliability than competing wind-turbine generator designs. We have built an integrated business whose activity spans every part of the product life cycle. Our products are comprehensively supported by a network of international facilities that provide outstanding service around the globe. Every aspect of the solutions we build around our wind-turbine generators is tailored to maximise value not just for our clients, but for the customers and communities that rely on the power they supply. For more information, please contact a Goldwind representative. DISCLAIMER Tular to be issued by the Company in connection with such offering; and no representation is made by the Compahis document does not constitute, or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of Xinjiang Goldwind Science & Technology Co., Ltd. (the Company), nor shall it be construed as calculated to invite any such offer, nor shall it form the basis of, nor can it be relied on in connection with, or act as an inducement to enter into any contract or commitment whatsoever. Accordingly, any decision in connection with the subscription or acquisition of securities of the Company pursuant to or in connection with any offering must be made solely on the basis of the information to be contained in the prospectus or other offering circny in respect of any information in this document, except as contained in such prospectus or offering circular.