GOLDWIND SCIENCE&TECHNOLOGY CO., LTD. — Interim / Quarterly Report 2016

Oct 28, 2016

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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2016 THIRD QUARTERLY REPORT

Summary

The Board of the Company hereby announces the 2016 Third Quarterly Report of the Group which has been prepared in accordance with PRC GAAP and is unaudited.

This announcement is made in accordance with Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO.

The board of directors (the “ Board ”) of Xinjiang Goldwind Science & Technology Co., Ltd. (the “ Company ”) hereby announces the unaudited financial results of the Company and its subsidiaries (collectively, the “ Group ”) for the nine months ended 30 September 2016 (the “ 2016 Third Quarterly Report ” or “ this report ”), which have been prepared in accordance with the People’s Republic of China Accounting Standards for Business Enterprise (the “ PRC GAAP ”). This announcement is made in accordance with Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the inside information provisions (the “ Inside Information Provisions ”) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong ) (“ SFO ”).

The 2016 Third Quarterly Report is written in both Chinese and English. In the case of any discrepancies, the Chinese version of this report shall prevail over its English version.

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The 2016 Third Quarterly Report of Xinjiang Goldwind Science & Technology Co., Ltd.

§1 IMPORTANT NOTICE

• 1.1 The Board, the supervisory committee, as well as the directors, supervisors and senior management of the Company, collectively and individually, accept responsibility for the truthfulness, accuracy and completeness as to the contents of this report, and warrant that there are no false representations, misleading statements or material omissions of information in this report.

• 1.2 Other than the member listed below, all other members of the Board attended the board meeting in person that considered and approved this report:

		Reasons for Not
Name	Position		Name of Proxy
		**Attending in Person **
Zhao Guoqing	Director	Work Reason	Wu Gang

1.3 The legal representative of the Company, Mr. Wu Gang, person-in-charge of accounting affairs, Mr. Huo Changbao, and head of the accounting department, Mr. Tang Youxian, jointly declare that the financial statements as set out in this report are truthful, accurate and complete.

§2 PRINCIPAL ACCOUNTING FIGURES AND SHAREHOLDER INFORMATION

2.1 Principal accounting figures

	As at	As at	As at	As at	Percentage
	30 September 2016		31 December 2015		Change
	61,498,626,741.90		52,572,400,849.09
					16.98%
Total assets (RMB)
Total equity attributable to	19,126,262,662.70		16,761,446,095.89
					14.11%
owners of the parent
company (RMB)
				For the Period of
	For the Period of	Percentage			Percentage
				1 January to
	1 July to	Change			Change
				30 September
	30 September	Year-over-			Year-over-
				2016
	2016	Year			Year
				(the “Reporting
		(“YoY”)			(“YoY”)
				Period”)
	6,044,095,325.65			16,964,752,380.35
		-33.69%			-8.52%
Operating income(RMB)
Net profits attributable to	690,601,450.96			2,140,717,292.73
		-19.93%			1.56%
owners of the parent
company (RMB)
Net profits attributable to
owners of the parent
	617,751,747.62	-33.25%		2,047,540,607.73	2.12%
company after deducting
non-recurring gains and
losses(RMB)

2

Net cash flows from				-1,066,826,526.88	-1,066,826,526.88	-155.95%
operatingactivities(RMB)
Basic earnings per share	0.2525		-20.80%	0.7826		0.20%
(RMB/share)
Diluted earnings per share	0.2525		-20.80%	0.7826		0.20%
(RMB/share)
Weighted average return on	3.72%		-1.51%	12.01%		-1.33%
net assets
						Unit: RMB
Non-recurring Gains and Losses Items			Amount for the
					Notes
		Reporting Period
Gains or losses on disposal of non-current
assets (including provisions for asset		-1,583,508.52
impairment write-offs)
Government grants accounted in profit and
loss of the reporting period (excluding grants
that are closely related to the normal
		107,794,989.78
operations of the Company, and grants in
compliance with national policies or subject to
fixed amounts under certain standards)
Gains or losses from changes in fair values of
financial assets held for trading and financial
liabilities held for trading, and investment
gains from disposal of financial assets held for
		13,134,501.10
trading, financial liabilities held for trading
and available-for-sale financial assets,
excluding hedging activities related to the
ordinary business of the Company
Other non-operating income and expenses		-6,069,547.22
Less: Relevant income tax		18,388,909.24
Relevant amount attributable to minority
		1,710,840.90
shareholders (after tax)
Total		93,176,685.00

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2.2 Total number of shareholders and shareholdings of the top 10 shareholders as at the end of the Reporting Period

Unit: Shares

Total Number of Shareholders	Total Number of Shareholders	168,594	168,594	Total Number of Preliminary Shareholders with Recovered Voting Rights at the end of the Reporting Period (ifany)	Total Number of Preliminary Shareholders with Recovered Voting Rights at the end of the Reporting Period (ifany)	Total Number of Preliminary Shareholders with Recovered Voting Rights at the end of the Reporting Period (ifany)	Total Number of Preliminary Shareholders with Recovered Voting Rights at the end of the Reporting Period (ifany)	0	0
Shareholdings of Top 10 Shareholders
						Number	**Pledged or Frozen **
			Percentage		Number	of Shares
Name	Type
			of Total		of Shares	Subject to	Condition		Amount
						Lock-up
HKSCC NOMINEES LTD. (香港中央結算(代 理人)有限公司)	Overseas legal person		18.23%		498,779,120	0
Xinjiang Wind Power Co., Ltd. (新疆風能有限 責任公司)	State- owned legal person		13.74%		375,920,386	0
							Pledged		74,624,000
China Three Gorges New Energy Co., Ltd. (中國三 峽新能源有限公司)	State- owned legal person		10.52%		287,659,287	0
Anbang Life Insurance Co., Ltd. – Conservative Portfolios Account (安邦 人壽保險股份有限公 司—保守型投資組合)	Other		7.84%		214,541,738	0
Hexie Health Insurance Co., Ltd. – All-powerful Products Account (和諧 健康保險股份有限公司 －萬能產品)	Other		4.14%		113,248,111	0
Central Huijin Investment Ltd. (中央匯金資產管理有限 責任公司)	Other		1.68%		46,059,700	0
Wu Gang (武鋼)	Domestic natural person		1.47%		40,167,040	30,125,280
Anbang Wealth Insurance Co., Ltd. – Group All-powerful Products Account (安邦養老保險股份有限 公司—團體萬能產品)	Other		0.87%		23,930,127	0
Haitong Securities Asset Management - China Merchants Securities–Haitong Goldwind Collective Asset Management Plan 2	Other		0.72%		19,563,000	19,563,000

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(海通證券資管－招商證 券－海通金風2號集合 資產管理計畫)
Wang Xiangming (王相明)	Domestic natural person	0.69%	18,850,400	0

Shareholdings of Top 10 Shareholders Not Subject to Lock-up	Shareholdings of Top 10 Shareholders Not Subject to Lock-up	Shareholdings of Top 10 Shareholders Not Subject to Lock-up	Shareholdings of Top 10 Shareholders Not Subject to Lock-up
		Share Category
Name	Number of Shares
		Category	Amount
HKSCC NOMINEES LTD. (香港中央結算(代 理人)有限公司)	498,779,120	Overseas listed	498,779,120
		foreign shares
Xinjiang Wind Power Co., Ltd. (新疆風能有限 責任公司)	375,920,386	RMB
			375,920,386
		denominated
		ordinaryshares
China Three Gorges New Energy Co., Ltd. (中 國三峽新能源有限公司)	287,659,287	RMB
			287,659,287
		denominated
		ordinaryshares
Anbang Life Insurance Co., Ltd.– Conservative Portfolios Account (安邦人壽保 險股份有限公司—保守型投資組合)	214,541,738	RMB
			214,541,738
		denominated
		ordinary shares
Hexie Health Insurance Co., Ltd. – All-powerful Products Account (和諧健康保險 股份有限公司－萬能產品)	113,248,111	RMB
			113,248,111
		denominated
		ordinaryshares
Central Huijin Investment Ltd.(中央匯金投資 有限責任公司)	46,059,700	RMB denominated ordinaryshares	46,059,700
Anbang Wealth Insurance Co., Ltd. – Group All-powerful Products Account(安邦養老保險 股份有限公司—團體萬能產品)	23,930,127	RMB
			23,930,127
		denominated
		ordinaryshares
Wang Xiangming (王相明)	18,850,400	RMB
			18,850,400
		denominated
		ordinaryshares
Anbang Insurance Group Co., Ltd.– Traditional Insurance Product (安邦保險集團 股份有限公司－傳統保險產品)	17,113,600
		RMB
			17,113,600
		denominated
		ordinary shares
Xinjiang New Energy (Group) Co., Ltd. (新疆 新能源（集團）有限責任公司)	15,216,405	RMB
			15,216,405
		denominated
		ordinaryshares
	Connected relations between Xinjiang Wind Power Co., Ltd. and China Three Gorges New Energy Co., Ltd. are as follows: China Three Gorges New Energy Co., Ltd. is a wholly-owned subsidiary of China Three Gorges Corporation. China Three Gorges Corporation holds 33.89% and 9.44% of the issued share capital of Xinjiang Wind Power Co., Ltd. through China Three Gorges New Energy Co., Ltd. and another wholly-owned subsidiary, Yangtze New Energy Development Co., Ltd., respectively. China Three Gorges Corporation holds 43.33% of the issued share
Details of connected relations of the above
shareholders or whether or not they are acting in
concert

5

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capital of Xinjiang Wind Power Co., Ltd. in total.

Anbang Insurance Group Co., Ltd. is the substantial shareholder of Anbang Life Insurance Co., Ltd., Hexie Health Insurance Co., Ltd. and Anbang Annuity Insurance Co., Ltd., holding 99.98% of Anbang Life Insurance Co., Ltd., 98.31% of Hexie Health Insurance Co., Ltd. and 99.99% of Anbang Annuity Insurance Co., Ltd., respectively. The above companies have not signed concerted action agreements nor agreed on acting in concert. But the above companies are concerted action persons because of the connected relationship.

Participation of Securities Margin Trading by Top 10 Ordinary Shareholders

Nil

§3 SIGNIFICANT EVENTS

3.1 Significant changes, and respective explanations, to key accounting items and financial indicators during the Reporting Period

1. Bills receivable as at 30 September 2016 was RMB1,742,088,507.78, representing an increase of 75.55% compared with the balance as at 31 December 2015, mainly due to the increased amount of acceptance bills received during the Reporting Period.

2. Dividends receivable as at 30 September 2016 was RMB5,021,900.00, representing an increase of 89.38% compared with the balance as at 31 December 2015, mainly due to the Group’s increased dividends receivables from associated enterprises and joint ventures during the Reporting Period.

3. Other receivable as at 30 September 2016 was RMB763,949,447.69, representing an increase of 85.98% compared with the balance as at 31 December 2015, mainly due to the Group’s increased deposits, funds from stock ownership, and third party current money during the Reporting Period.

4. Inventories as at 30 September 2016 was RMB4,406,017,742.59, representing an increase of 45.07% compared with the balance as at 31 December 2015, mainly due to increased inventories to enable the Group to meet future orders during the Reporting Period.

5. Non-current assets due within one year as at 30 September 2016 was RMB268,739,767.54, representing an increase of 85.18% compared with the balance as at 31 December 2015, mainly due to an increase in the Group’s long-term lease payment receivables that are due for payment during the Reporting Period.

6. Other current assets as at 30 September 2016 was RMB508,346,070.66, representing an increase of 30.20% compared with the balance as at 31 December 2015, mainly due to the Group’s increased input tax of value added tax pending deduction during the Reporting Period.

7. Available-for-sale financial assets as at 30 September 2016 was RMB1,272,786,534.14, representing an increase of 41.24% compared with the balance as at 31 December 2015, mainly due to an increase in equity instruments for sale during the Reporting Period.

8. Long-term equity investment as at 30 September 2016 was RMB1,477,155,691.66, representing an increase of 41.06% compared with the balance as at 31 December 2015, mainly due to the establishment and growth in profits of the Group’s investment in associated enterprises and joint ventures during the Reporting Period.

9. Fixed assets as at 30 September 2016 was RMB16,480,835,715.51, representing an increase of 72.77% compared with the balance as at 31 December 2015, mainly due to the Group’s increased wind farms being re-categorized as fixed assets during the Reporting Period.

10. Construction in progress as at 30 September 2016 was RMB3,043,799,758.91, representing a decrease of 59.28% compared with the balance as at 31 December 2015, mainly due to the Group’s increased number of construction in progress wind farms being re-categorized as fixed assets during

6

the Reporting Period.

1. Development expenses as at 30 September 2016 was RMB43,853,114.34, representing an increase of 41.58% compared with the balance as at 31 December 2015, mainly due to the Group’s increased capital expenditure on research and development during the Reporting Period.

2. Receipts in advanc as at 30 September 2016 was RMB3,411,914,396.03, representing an increase of 80.58% compared with the balance as at 31 December 2015, mainly due to the Group’s increased advanced from customers received for products which will be delivered within one year in accordance to the terms of the contract during the Reporting Period.

3. Long-term borrowings as at 30 September 2016 was RMB12,472,610,808.20 representing an increase of 48.69% compared with the balance as at 31 December 2015, mainly due to an increase in loans for the Group’s wind farm projects during the Reporting Period.

4. Bonds payable as at 30 September 2016 was RMB3,719,869,921.32 representing an increase of 56.82% compared with the balance as at 31 December 2015, mainly due to an increase in the Group’s bonds during the Reporting Period.

5. Financial expenses for the Reporting Period was RMB529,625,164.00, representing an increase of 39.66% YoY, mainly due to the Group’s increased loan balance which resulted in increased financial expenses during the Reporting Period.

6. Impairment loss of assets for the Reporting Period was RMB171,851,455.92, representing an increase of 67.25% YoY, mainly due to an increase in the Group’s impairment provisions for overdue accounts receivables during the Reporting Period.

7. Losses from changes in fair values for the Reporting Period was RMB1,204,508.00 representing an increase of 113.46% YoY, mainly due to decreased fair value of the financial assets at fair value through profit or loss during the Reporting Period.

8. Investment income was RMB386,875,302.12, representing an increase of 97.85% YoY, mainly due to increased gain on holding or disposal of available-for-sale financial assets.

9. Non-operating income was RMB187,485,295.00, representing an increase of 59.05% YoY, mainly due to an increase in government grants for the Group during the Reporting Period.

10. Non-operating expenses for the Reporting Period was RMB12,503,484.54, representing a decrease of 41.53% YoY, mainly due to a decrease in material scrap loss for the Group during the Reporting Period.

11. Minority shareholders’ profit for the Reporting Period was RMB63,883,018.88 representing an increase of 246.36% YoY, mainly due to an increase in profit attributable to minority shareholders during the Reporting Period.

12. Net cash outflows used in operating activities was RMB1,066,826,526.88 representing a decrease of 155.95% YoY, mainly due to an increase in purchase payments by the Group during the Reporting Period.

13. Net cash inflows from financing activities was RMB4,921,937,337.47 representing an increase of 1104.12% YoY, mainly due to an increase in long-term borrowing for the construction of wind farms during the Reporting Period.

3.2 Analysis and discussion on the progress of significant events, their impact and resolutions

• 1) The Group did not have controlling shareholders or de facto controllers, and had not provided funds to any of its shareholders or any of their connected persons, nor had it provided any guarantees to any parties that were not in compliance with the relevant regulations.

2) Group Orders As at 30 September 2016, the Group had a total of 7,678MW of outstanding orders, including 7.5MW of 750kW WTGs, 2,829MW of 1.5MW WTGs, 2,638MW of 2.0MW WTGs, 198MW of 2.2MW WTGs, 1,942.5MW of 2.5MW WTGs, and 63MW of 3.0MW WTGs. In addition, the Group had won bids for projects totalling 6,723MW for which contracts have not yet been signed, including 1,051.5MW of 1.5MW WTGs, 3,586MW of 2.0MW WTGs, 1,887.5MW of 2.5MW WTGs, and 198MW of 3.0MW WTGs.

7

The combined backlog of orders was 14,401MW.

• 3) No other significant events.

3.3 Commitments given by the Company or its shareholders that hold over 5% of the total share capital during the Reporting Period or continued into the Reporting Period

			Date of
	Responsible	Particulars of		Period for	Performed
Commitments			Commitm
	Parties	Commitments		Commitments	or not
			ents
Commitments given upon initial public offering or other issuances of shares	Xinjiang Wind Power Co., Ltd.; China Three Gorges New Energy Corporation	Commitment to avoid competition within the same industry	9 May 2007		Performed
	Wang Haibo, Cao Zhigang, Wu Kai, Huo Changbao, Ma Jinru, Zhou Yunzhi, Haitong Securities Asset Management - China Merchants Securities– Haitong Goldwind Collective Asset Management Plan 2	Commitment to not transfer any shares subscribed in the non-public offering issue of new shares for 36 months after 18 August 2015.	14 August 2015	36 Months	Performed
Whether or not commitments were
		Yes
performed on time

3.4 Operating results forecast for the year of 2016

Expected range of percentage
change in net profits attributable	0.00%		50.00%
		to
to owners of the Company for the
year of 2016
Expected range of net profits
attributable to owners of the	284,949.70		427,424.55
		to
Company for the year of 2016
(RMB ten thousand)
Net profits attributable to owners
of the Company for the year of	284,949.70
2015(RMB ten thousand)
	Profitability continued to improve YoY mainly due to the
Reasons for increase/decrease
	implementation of lean management and value management.

8

3.5 Financial Assets at Fair Value

Unit:RMB

	Initial		Cumulative Change		Sale Amount		Amount at the
		Fair Value				Cumulative
			in the Fair Value	Purchase			end of the	Capital
Assets Class	Investment	Losses or				Investment
			recorded in owner’s	Amount			Reporting	Source
	Cost	Gains				Income
			equities				Period
Derivative	3,876,720.00							Existing
		-1,204,508.00	0.00	0.00	0.00	0.00	3,014,412.34
Instruments								Funds
Total	3,876,720.00	-1,204,508.00	0.00	0.00	0.00	0.00	3,014,412.34	--

3.6 Violated Guarantee

During the Reporting Period, there is no violated guarantee by the Company.

3.7 Non-business Capital Utilized by the Controlling Shareholders and Their Respective Connected Persons to the Company

During the Reporting Period, there is no non-business capital utilized by the controlling shareholders and their respective connected persons to the Company.

3.8 Investigations, Communications and Interviews Checklist during the Reporting Period

Time	Mode	Object Type	Basic Information
	Phone		Company Status,
6 July 2016		Institution
	Communication		Industry Outlook
	Phone		Industry Outlook,
6 July 2016		Institution
	Communication		Company Development Strategy
	Field		Company Status,
7 July 2016		Institution
	Investigation		Policies of Wind Power Industry
			Company Status,
	Phone
11 July 2016		Institution	Industry Outlook,
	Communication
			Technical Route
	Field		Industry Outlook,
19 July 2016		Institution
	Investigation		Company Development Strategy
			Recent Operational Developments,
	Field
19 July 2016		Institution	Market Conditions for the
	Investigation
			Company
	Phone		Recent Operational Developments,
20 July 2016		Institution
	Communication		Market Outlook for the Company
21 July 2016	Field	Institution	Industry Outlook,

9

	Investigation		Company Business,
			Technology Product
	Field		Industry Outlook,
5 September 2016		Institution
	Investigation		Company Development Strategy
			Recent Operational Developments,
	Field
5 September 2016		Institution	Market Conditions for the
	Investigation
			Company
	Field		Industry Outlook,
6 September 2016		Institution
	Investigation		Company Development Strategy
			Recent Operational Developments,
	Phone
6 September 2016		Institution
			Market Conditions for the
	Communication
			Company
			Recent Operational Developments,
	Field
6 September 2016		Institution	Industry Development,
	Investigation
			Market Share
	Phone		Industry Outlook,
9 September 2016		Institution
	Communication		Company Development Strategy
	Field		Industry Outlook,
12 September 2016		Institution
	Investigation		Company Development Strategy
			Recent Operational Developments,
	Phone
14 September 2016		Institution	Market Conditions for the
	Communication
			Company
			Recent Operational Developments,
	Phone
19 September 2016		Institution	Market Conditions for the
	Communication
			Company
	Field		Company Product,
19 September 2016		Institution
	Investigation		Market Outlook
			Company Product,
	Field
21 September 2016		Institution	Technical Route,
	Investigation
			Business Development
	Field		Industry Outlook,
22 September 2016		Institution
	Investigation		Company Development Strategy
			Company Product,
	Field
26 September 2016		Institution	Market Outlook,
	Investigation
			Technical Route

10

§4 FINANCIAL STATEMENTS

4.1 Financial Statements

4.1.1 Consolidated Balance Sheet

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	As at 30 September 2016	As at 31 December 2015
CURRENT ASSETS:
Currency funds	5,519,140,452.91	6,306,371,273.24
Bills receivable	1,742,088,507.78	992,349,138.62
Accounts receivable	17,135,019,630.64	13,534,032,550.77
Prepayments	590,910,979.26	467,720,630.92
Dividends receivable	5,021,900.00	2,651,700.00
Other receivables	763,949,447.69	410,759,116.98
Inventories	4,406,017,742.59	3,037,200,246.13
Non-current assets due within one year	268,739,767.54	145,125,752.91
Other current assets	508,346,070.66	390,431,467.36
Total current assets	30,939,234,499.07	25,286,641,876.93
NON-CURRENT ASSETS:
Financial assets measured at fair value through profit or loss for the current period	3,014,412.34	4,121,039.86
Available-for-sale financial assets	1,272,786,534.14	901,120,811.35
Long-term receivables	3,626,955,275.43	3,760,779,338.58
Long-term equity investments	1,477,155,691.66	1,047,199,452.11
Investment properties	71,524,336.27	73,696,434.16
Fixed assets	16,480,835,715.51	9,539,442,422.14
Construction in progress	3,043,799,758.91	7,475,669,896.86
Intangible assets	853,283,737.85	705,579,947.95
Development expenses	43,853,114.34	30,973,943.91
Goodwill	272,766,460.03	316,258,834.70
Long-term deferred expenses	75,141,020.68	59,599,473.54
Deferred tax assets	1,436,112,029.79	1,338,436,072.51
Other non-current assets	1,902,164,155.88	2,032,881,304.49
Total non-current assets	30,559,392,242.83	27,285,758,972.16
Total assets	61,498,626,741.90	52,572,400,849.09
CURRENT LIABILITIES:

11

Short-term borrowings	1,220,000,000.00	1,319,474,042.56
Bills payable	5,008,271,917.18	4,826,818,187.59
Accounts payable	9,365,114,262.77	9,447,799,602.01
Receipts in advance	3,411,914,396.03	1,889,393,855.32
Employee benefits payable	594,901,463.51	606,535,818.30
Tax payables	318,898,626.77	705,262,435.31
Interest payable	49,104,541.41	55,497,779.51
Dividends payable	4,474,983.64	0.00
Other payables	210,167,549.62	385,332,626.56
Non-current liabilities due within one year	509,351,207.69	432,565,290.10
Provisions	1,375,244,439.31	1,290,211,564.56
Total current liabilities	22,067,443,387.93	20,958,891,201.82
NON-CURRENT LIABILITIES:
Long-term borrowings	12,472,610,808.20	8,388,570,741.09
Bonds payable	3,719,869,921.32	2,372,053,560.30
Including: Preferred stock	0.00	0.00
Perpetual debt	0.00	0.00
Long-term payables	929,035,969.51	913,380,214.00
Provisions	2,106,796,090.44	2,202,699,403.47
Deferred income	285,894,502.86	288,112,610.23
Deferred tax liabilities	73,092,058.24	58,089,232.17
Total non-current liabilities	19,587,299,350.57	14,222,905,761.26
Total liabilities	41,654,742,738.50	35,181,796,963.08
OWNERS’ EQUITY:
Share capital	2,735,541,000.00	2,735,541,000.00
Other equity instrument	1,495,118,490.57	0.00
Including: Preferred stock	0.00	0.00
Perpetual debt	1,495,118,490.57	0.00
Capital reserve	8,193,537,672.73	8,194,803,022.88
Other comprehensive income	-161,848,180.77	-202,404,889.54
Special reserve	2,749,104.89	0.00
Surplus reserve	816,177,100.63	816,177,100.63
Unappropriated profit	6,044,987,474.65	5,217,329,861.92

12

Total equity attributable to owners of the parent company	19,126,262,662.70	16,761,446,095.89
Minority interests	717,621,340.70	629,157,790.12
Total owners’ equity	19,843,884,003.40	17,390,603,886.01
Total liabilities and owners’ equity	61,498,626,741.90	52,572,400,849.09
Legal Representative Wu Gang Person-in-charge of accounting affairs: Huo Changbao Head of accounting department: Tang Youxian

4.1.2 Parent Company Balance Sheet

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	As at 30 September 2016	As at 31 December 2015
CURRENT ASSETS:
Currency funds	3,189,101,744.08	4,139,014,583.52
Bills receivable	1,301,952,747.79	837,816,622.10
Accounts receivable	11,207,786,846.85	8,896,616,866.64
Prepayments	236,628,648.00	157,269,637.22
Interest receivable	165,492,176.48	68,638,549.71
Other receivables	5,674,995,440.72	6,485,146,937.60
Inventories	1,785,165,298.35	1,636,389,548.19
Other current assets	155,090,232.20	53,293,097.45
Total current assets	23,716,213,134.47	22,274,185,842.43
NON-CURRENT ASSETS:
Long-term receivables	2,225,088,248.89	2,791,076,627.90
Long-term equity investments	12,117,751,192.64	10,717,268,746.99
Investment properties	63,337,573.34	64,940,988.14
Fixed assets	144,178,426.85	149,316,436.83
Construction in progress	1,057,796.91	103,589.75
Intangible assets	58,494,552.24	55,998,001.26
Development expenses	33,583,363.42	24,230,736.49
Long-term deferred expenses	18,731,730.13	1,672,553.88
Deferred tax assets	592,350,588.75	555,433,225.28
Other non-current assets	175,061,604.46	174,092,033.70
Total non-current liabilities	15,429,635,077.63	14,534,132,940.22
Total assets	39,145,848,212.10	36,808,318,782.65

13

CURRENT LIABILITIES:
Short-term borrowings	1,220,000,000.00	1,319,474,042.56
Bills payable	4,311,351,106.12	4,783,351,029.59
Accounts payable	5,051,068,447.84	4,756,324,118.91
Receipts in advance	2,498,703,625.57	1,640,238,967.43
Employee benefits payable	184,495,385.24	228,699,014.16
Tax payables	128,990,267.73	347,778,883.25
Interest payable	95,177,169.57	14,691,584.21
Other payables	5,377,955,451.59	5,990,503,191.91
Provision	988,723,819.57	980,018,687.29
Total current liabilities	19,856,465,273.23	20,061,079,519.31
NON-CURRENT LIABILITIES:
Long-term borrowings	333,890,000.00	324,680,000.00
Bonds payable	1,769,722,677.71	495,808,684.96
Including: Preferred stock	0.00	0.00
Perpetual debt	0.00	0.00
Long-term payables	690,714,027.50	687,833,280.65
Provisions	1,528,369,806.88	1,603,101,073.43
Deferred income	125,679,243.13	128,198,757.81
Total non-current liabilities	4,448,375,755.22	3,239,621,796.85
Total liabilities	24,304,841,028.45	23,300,701,316.16
OWNERS’ EQUITY:
Share capital	2,735,541,000.00	2,735,541,000.00
Other equity instrument	1,495,118,490.57	0.00
Including: Preferred stock	0.00	0.00
Perpetual debt	1,495,118,490.57	0.00
Capital reserve	8,264,710,486.29	8,264,710,486.29
Other comprehensive income	-1,063,953.86	-638,467.05
Special reserve	592,361.04	0.00
Surplus reserve	817,233,703.03	817,233,703.03
Unappropriated profit	1,528,875,096.58	1,690,770,744.22
Total owners’ equity	14,841,007,183.65	13,507,617,466.49
Total liabilities and owners’ equity	39,145,848,212.10	36,808,318,782.65

14

Legal Representative

Person-in-charge of accounting affairs:

Head of accounting department: Tang Youxian

Huo Changbao

Wu Gang

4.1.3 Consolidated Income Statement for 1 July to 30 September 2016

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	For the Period of 1 July to 30 September 2016	For the Period of 1 July to 30 September 2015
I. Total operating income	6,044,095,325.65	9,115,218,038.45
Including: Operating income	6,044,095,325.65	9,115,218,038.45
II. Total operating costs	5,453,073,996.66	8,084,681,860.93
Including: Operating costs	4,245,414,227.97	6,691,181,743.71
Business tax and surcharge	14,551,448.85	56,345,105.21
Selling and distribution expenses	346,057,008.84	733,430,981.62
Administrative expenses	557,999,610.19	468,732,460.45
Financial expenses	207,992,784.80	136,319,174.22
Impairment loss of assets	81,058,916.01	-1,327,604.28
Add: Gains or losses from changes in fair values	-359,586.63	-103,870,486.18
Investment income	104,147,418.77	49,825,585.80
Including: Gains arising from investments in associated enterprises and joint ventures	9,898,337.18	20,380,517.29
Exchange gains (minus exchange losses)	0.00	0.00
III. Operating profits (loss will be shown with “-” sign)	694,809,161.13	976,491,277.14
Add: Non-operating income	135,984,141.32	34,167,039.37
Including: Gain arising from disposal of non-current assets	260,210.79	227,019.98
Less: Non-operating expenses	4,509,724.62	15,084,176.90
Including: Loss arising from disposal of non-current assets	250,860.47	275,925.76
IV. Total profits (loss will be shown with “-” sign)	826,283,577.83	995,574,139.61
Less: Income tax expenses	128,210,221.05	133,382,403.41
V. Net profits (loss will be shown with “-” sign)	698,073,356.78	862,191,736.20
Net profits attributable to owners of the parent company	690,601,450.96	862,445,621.11
Gains or losses from minority interests	7,471,905.82	-253,884.91

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VI. Other comprehensive income	-55,732,445.68	3,152,419.29
Other comprehensive income attributable to owners of the parent company	-55,732,445.68	3,152,419.29
Other comprehensive income items which will be reclassified subsequently to profit or loss when specific conditions are met	-55,732,445.68	3,152,419.29
Available-for-sale investments	-17,983,584.83	-88,363,595.17
Exchange differences on translation of foreign operations	-37,748,860.85	91,516,014.46
VII. Total comprehensive income	642,340,911.10	865,344,155.49
Total comprehensive income attributable to owners of the parent company	634,869,005.28	865,598,040.40
Total comprehensive income attributable to minority shareholders	7,471,905.82	-253,884.91
VIII. Earnings per share
(I) Basic	0.2525	0.3188
(II) Diluted	0.2525	0.3188
Legal Representative Wu Gang Person-in-charge of accounting affairs: Huo Changbao Head of accounting department: Tang Youxian

4.1.4 Parent Company Income Statement for 1 July to 30 September 2016

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	For the Period of 1 July to 30 September 2016	For the Period of 1 July to 30 September 2015
I. Operating income	4,414,720,972.87	5,418,108,815.38
Less: Operating costs	3,698,813,496.76	4,423,419,932.71
Business tax and surcharge	4,505,602.29	23,366,889.47
Selling and distribution expenses	58,909,249.94	383,890,391.95
Administrative expenses	183,660,622.67	84,515,135.34
Financial expenses	-14,022,570.75	-25,606,711.38
Impairment loss of assets	45,456,507.80	-34,122,691.74
Add: Gains or losses from changes in fair values	0.00	0.00
Investment income	3,480,740.37	182,380,351.50
Including: Gains arising from investments in associated enterprises and joint ventures	-1,279,858.04	-55,880.69

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II. Operating profits (loss will be shown with “-” sign)	440,878,804.53	745,026,220.53
Add: Non-operating income	72,502,271.10	2,609,141.73
Including: Gain arising from disposal of non-current assets	952,565.47	0.00
Less: Non-operating expenses	3,111,111.53	14,507,867.33
Including: Loss arising from disposal of non-current assets	81,649.30	172,382.95
III. Total profits (loss will be shown with “-” sign)	510,269,964.10	733,127,494.93
Less: Income tax expenses	87,727,426.58	95,146,136.91
IV. Net profits (loss will be shown with “-” sign)	422,542,537.52	637,981,358.02
V. Other comprehensive income	-128,787.39	-522,543.52
Other comprehensive income items which will be reclassified subsequently to profit or loss when specific conditions are met	-128,787.39	-522,543.52
Available-for-sale investments	0.00	0.00
Exchange differences on translation of foreign operations	-128,787.39	-522,543.52
VI . Total comprehensive income	422,413,750.13	637,458,814.50
VII. Earnings per share
(I) Basic	0.1545	0.2359
(II) Diluted	0.1545	0.2359
Legal Representative Wu Gang Person-in-charge of accounting affairs: Huo Changbao Head of accounting department: Tang Youxian

4.1.5 Consolidated Income Statement for 1 January to 30 September 2016

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	For the Period of 1 January to 30 September 2016	For the Period of 1 January to 30 September 2015
I. Total operating income	16,964,752,380.35	18,544,341,633.40
Including: Operating income	16,964,752,380.35	18,544,341,633.40
II. Total operating costs	14,993,207,173.43	16,429,220,215.66
Including: Operating costs	11,777,826,659.52	13,360,951,370.32
Business tax and surcharge	71,514,677.45	77,897,672.77
Selling and distribution expenses	1,097,128,054.49	1,452,811,164.05

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Administrative expenses	1,345,261,162.05	1,055,582,860.48
Financial expenses	529,625,164.00	379,225,332.20
Impairment loss of assets	171,851,455.92	102,751,815.84
Add: Gains or losses from changes in fair values	-1,204,508.00	8,947,417.52
Investment income	386,875,302.12	195,542,636.83
Including: Gains arising from investments in associated enterprises and joint ventures	95,045,737.46	103,093,617.07
Exchange gains (minus exchange losses)	0.00	0.00
III. Operating profits (loss will be shown with “-” sign)	2,357,216,001.04	2,319,611,472.09
Add: Non-operating income	187,485,295.00	117,876,158.87
Including: Gain arising from disposal of non-current assets	952,670.07	262,219.24
Less: Non-operating expenses	12,503,484.54	21,384,416.43
Including: Loss arising from disposal of non-current assets	2,536,178.59	3,081,786.99
IV. Total profits (loss will be shown with “-” sign)	2,532,197,811.50	2,416,103,214.53
Less: Income tax expenses	327,597,499.89	289,752,657.40
V. Net profits (loss will be shown with “-” sign)	2,204,600,311.61	2,126,350,557.13
Net profits attributable to owners of the parent company	2,140,717,292.73	2,107,906,465.04
Gains or losses from minority interests	63,883,018.88	18,444,092.09
VI. Other comprehensive income	40,556,708.78	-116,252,100.11
Other comprehensive income attributable to owners of the parent company	40,556,708.78	-116,252,100.11
Other comprehensive income items which will be reclassified subsequently to profit or loss when specific conditions are met	40,556,708.78	-116,252,100.11
Available-for-sale investments	-45,093,055.00	-111,617,998.80
Exchange differences on translation of foreign operations	85,649,763.78	-4,634,101.31
VII. Total comprehensive income	2,245,157,020.39	2,010,098,457.02
Total comprehensive income attributable to owners of the parent company	2,181,274,001.51	1,991,654,364.93
Total comprehensive income attributable to minority shareholders	63,883,018.88	18,444,092.09

18

VIII. Earnings per share
(I) Basic	0.7826	0.7810
(II) Diluted	0.7826	0.7810
Legal Representative Wu Gang Person-in-charge of accounting affairs: Huo Changbao Head of accounting department: Tang Youxian

4.1.6 Parent Company Income Statement for 1 January to 30 September 2016

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	For the Period of 1 January to 30 September 2016	For the Period of 1 January to 30 September 2015
I. Operating income	12,348,045,694.01	10,816,176,116.09
Less: Operating costs	10,195,140,752.49	8,820,385,694.56
Business tax and surcharge	45,955,670.13	31,434,744.87
Selling and distribution expenses	473,400,660.10	735,328,524.41
Administrative expenses	309,168,731.18	180,921,587.53
Financial expenses	-52,286,674.42	-51,700,308.70
Impairment loss of assets	103,486,751.73	-11,161,453.08
Add: Gains or losses from changes in fair values	0.00	0.00
Investment income	15,581,454.75	398,452,781.08
Including: Gains arising from investments in associated enterprises and joint ventures	1,242,445.65	1,772,916.23
II. Operating profits (loss will be shown with “-” sign)	1,288,761,257.55	1,509,420,107.58
Add: Non-operating income	85,001,977.59	22,768,641.12
Including: Gain arising from disposal of non-current assets	952,565.47	275,415.26
Less: Non-operating expenses	5,049,835.82	16,973,636.60
Including: Loss arising from disposal of non-current assets	486,008.23	256,348.59
III. Total profits (loss will be shown with “-” sign)	1,368,713,399.32	1,515,215,112.10
Less: Income tax expenses	217,549,366.96	176,099,218.61
IV. Net profits (loss will be shown with “-” sign)	1,151,164,032.36	1,339,115,893.49
V. Other comprehensive income	-425,486.81	-510,121.71

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Other comprehensive income items which will be reclassified subsequently to profit or loss when specific conditions are met	-425,486.81	-510,121.71
Available-for-sale investments	0.00	0.00
Exchange differences on translation of foreign operations	-425,486.81	-510,121.71
VI. Total comprehensive income	1,150,738,545.55	1,338,605,771.78
VII. Earnings per share
(I) Basic	0.4208	0.4961
(II) Diluted	0.4208	0.4961
Legal Representative Wu Gang Person-in-charge of accounting affairs: Huo Changbao Head of accounting department: Tang Youxian

4.1.7 Consolidated Statement of Cash Flows for 1 January to 30 September 2016

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	For the Period of 1 January to 30 September 2016	For the Period of 1 January to 30 September 2015
I. Cash flows from operating activities
Cash received from sales of goods, provision of services	13,770,325,937.04	14,261,021,357.55
Tax refund received	171,493,155.99	161,273,653.72
Other cash received relating to operating activities	621,308,032.62	842,790,359.19
Subtotal of cash inflows	14,563,127,125.65	15,265,085,370.46
Cash paid for goods purchased, services rendered	11,158,920,629.83	9,939,547,112.23
Cash paid to or on behalf of employees	1,283,434,490.77	947,337,537.85
Taxes paid	1,527,358,462.17	1,239,259,658.10
Other cash paid relating to operating activities	1,660,240,069.76	1,232,172,872.56
Subtotal of cash outflows	15,629,953,652.53	13,358,317,180.74
Net cash flows from operating activities	-1,066,826,526.88	1,906,768,189.72
II. Cash flows from investment activities:
Cash received from recovery of investments	228,674,996.59	57,997,740.27
Cash from investment income	222,900,322.20	191,011,101.38
Net cash from disposal of fixed assets, intangible assets and other long-term assets	32,224,219.29	4,147,286.00

20

Net cash from disposal of subsidiaries and other operating entities	0.00	120,377,942.72
Other cash received relating to investment activities	377,946,358.14	67,662,693.03
Subtotal of cash inflows	861,745,896.22	441,196,763.40
Cash paid for purchase of fixed assets, intangible assets and other long-term assets	3,883,397,302.07	4,742,525,871.71
Cash paid for investments	1,026,849,998.22	196,767,379.78
Net cash paid for acquisition of subsidiaries and other operating entities	113,149,523.43	80,521,738.03
Other cash paid relating to investment activities	957,809,629.35	231,740,572.50
Subtotal of cash outflows	5,981,206,453.07	5,251,555,562.02
Net cash flows from investment activities	-5,119,460,556.85	-4,810,358,798.62
III. Cash flows from financing activities
Cash received from investments	1,531,610,337.10	422,251,910.00
Including: Cash received from investments of minority shareholders through subsidiaries	34,275,000.00	85,380,000.00
Cash received from borrowings	6,719,754,199.50	4,528,604,153.53
Cash received from bonds	1,275,000,000.00	2,305,555,570.83
Other cash received relating to financing activities	31,488,550.77	5,807,142.93
Subtotal of cash inflows	9,557,853,087.37	7,262,218,777.29
Cash paid for repayment of debts	2,735,899,508.24	6,098,827,989.83
Cash payments for distribution of dividends, profits or interest expenses	1,812,791,800.20	1,653,166,230.21
Including: Dividends and profits paid to minority shareholders by subsidiaries	16,255,883.10	9,444,080.91
Other cash paid relating to financing activities	87,224,441.46	400,000.00
Subtotal of cash outflows	4,635,915,749.90	7,752,394,220.04
Net cash flows from financing activities	4,921,937,337.47	-490,175,442.75
IV. Effect of exchange rate changes on cash	4,413,762.78	60,185,625.51
V. Net increase in cash and cash equivalents	-1,259,935,983.48	-3,333,580,426.14
Add: Balance of cash and cash equivalents at the beginning of the period	6,141,430,225.75	9,523,825,969.46

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VI. Balance of cash and cash equivalents at the end 4,881,494,242.27 6,190,245,543.32 of the period Legal Representative Person-in-charge of accounting affairs: Head of accounting department: Wu Gang Huo Changbao Tang Youxian

4.1.8 Parent Company Statement of Cash Flows for 1 January to 30 September 2016

Prepared by: Xinjiang Goldwind Science & Technology Co., Ltd. Unit: RMB

Items	For the Period of 1 January to 30 September 2016	For the Period of 1 January to 30 September 2015
I. Cash flows from operating activities
Cash received from sales of goods, provision of services	8,520,022,531.27	8,889,681,076.27
Tax refund received	14,801,391.79	12,416,058.09
Other cash received relating to operating activities	10,525,287,977.64	651,294,717.40
Subtotal of cash inflows	19,060,111,900.70	9,553,391,851.76
Cash paid for goods purchased, services rendered	11,290,626,040.53	9,699,904,540.60
Cash paid to or on behalf of employees	197,602,604.10	188,698,254.29
Taxes paid	849,184,669.36	549,015,932.55
Other cash paid relating to operating activities	8,001,949,895.98	926,692,618.61
Subtotal of cash outflows	20,339,363,209.97	11,364,311,346.05
Net cash flows from operating activities	-1,279,251,309.27	-1,810,919,494.29
II. Cash flows from investment activities:
Cash received from recovery of investments	0.00	717,494.68
Cash from investment income	14,339,009.10	576,936,305.05
Net cash from disposal of fixed assets, intangible assets and other long-term assets	47,739.20	139,279.44
Net cash from disposal of subsidiaries and other operating entities	0.00	0.00
Other cash received relating to investment activities	3,903,464,463.26	300,212,713.70
Subtotal of cash inflows	3,917,851,211.56	878,005,792.87
Cash paid for purchase of fixed assets, intangible assets and other long-term assets	55,256,977.79	13,805,868.25

22

Cash paid for investments	1,399,240,000.00	1,034,640,000.00
Net cash paid for acquisition of subsidiaries and other operating entities	0.00	0.00
Other cash paid relating to investment activities	3,390,458,410.42	2,790,973,460.99
Subtotal of cash outflows	4,844,955,388.21	3,839,419,329.24
Net cash flows from investment activities	-927,104,176.65	-2,961,413,536.37
III. Cash flows from financing activities
Cash received from investments	1,495,500,000.00	336,871,910.00
Cash received from borrowings	1,438,000,000.00	1,289,982,331.80
Cash received from bonds	1,275,000,000.00	498,500,000.00
Other cash received relating to financing activities	0.00	5,897,577,032.18
Subtotal of cash inflows	4,208,500,000.00	8,022,931,273.98
Cash paid for repayment of debts	1,527,649,803.13	4,946,922,144.93
Cash payments for distribution of dividends, profits or interest expenses	1,360,549,123.42	1,284,476,557.58
Other cash paid relating to financing activities	66,500,000.00	18,528,000.00
Subtotal of cash outflows	2,954,698,926.55	6,249,926,702.51
Net cash flows from financing activities	1,253,801,073.45	1,773,004,571.47
IV. Effect of exchange rate changes on cash	2,641,573.03	-1,591,628.36
V. Net increase in cash and cash equivalents	-949,912,839.44	-3,000,920,087.55
Add: Balance of cash and cash equivalents at the beginning of the period	4,139,014,583.52	7,101,762,327.91
VI. Balance of cash and cash equivalents at the end of the period	3,189,101,744.08	4,100,842,240.36
Legal Representative Wu Gang Person-in-charge of accounting affairs: Huo Changbao Head of accounting department: Tang Youxian

4.2 Auditors’ Report

4.2.1 The 2016 Third Quarterly Report is unaudited.

23

By order of the Board Xinjiang Goldwind Science & Technology Co., Ltd. Ma Jinru Company Secretary

Beijing, 28 October 2016

As at the date of this announcement, the Company’s executive directors are Mr. Wu Gang, Mr. Wang Haibo and Mr. Cao Zhigang; non-executive directors are Mr. Yu Shengjun, Mr. Zhao Guoqing and Mr. Feng Wei; and independent non-executive directors are Mr. Yang Xiaosheng, Mr. Luo Zhenbang and Dr. Tin Yau Kelvin Wong.

* For identification purpose only

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