GOLDWIND SCIENCE&TECHNOLOGY CO., LTD. - Interim / Quarterly Report 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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ANNOUNCEMENT INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

Interim Results for the six months ended 30 June 2016

Compared to the financial results for the six months ended 30 June 2015:

Revenue an increase of15.61% to approximately RMB10,839.59 million Gross profit an increase of 22.77% to approximately RMB3,320.84 million Profit attributable to owners an increase of 16.43% to approximately RMB1450.12 million of the Company Earnings per share an increase of15.22%[] to approximately RMB0.53

 Values for percentage change were calculated based on net profits attributable to owners of the parent company adjusted to two decimal places.

The board of directors (the “ Board ”) of Xinjiang Goldwind Science & Technology Co., Ltd. (the “ Company ” or “ Goldwind ”) announces the unaudited financial results of the Company and its subsidiaries (collectively, the “ Group ”) for the six months ended 30 June 2016 (the “ Reporting Period ”).

* For identification purpose only

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2016

Notes REVENUE 4 Cost of sales Gross profit Other income and gains 4 Selling and distribution expenses Administrative expenses Other expenses Finance costs 6 Share of profits and losses of: Joint ventures Associates PROFIT BEFORE TAX 5 Income tax expense 7 PROFIT FOR THE PERIOD Attributable to: Owners of the parent Non-controlling interests OTHER COMPREHENSIVE INCOME/(LOSS) Other comprehensive income/(loss) to be reclassified to profit or loss in subsequent periods, net of tax: Exchange differences on translation of foreign operations Net loss on available-for-sale financial assets Net other comprehensive income/(loss) to be reclassified to profit or loss in subsequent periods, net of tax OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD, NET OF TAX TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX Attributable to: Owners of the parent Non-controlling interests EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT: Basic and diluted (expressed in RMB per share) 9	For the six months ended 30 June 2016 2015 (Unaudited ) (Unaudited) RMB’000 RMB’000 10,839,588 9,375,658 (7,518,746 ) (6,670,749 ) 3,320,842 2,704,909 384,881 393,278 ( 831,835 ) ( 754,856) ( 787,262 ) ( 586,850) ( 160,477 ) ( 120,961) ( 305,382 ) ( 297,704) 58,071 48,004 27,076 34,709 1,705,914 1,420,529 ( 199,387 ) (156,370 ) 1,506,527 1,264,159 1,450,116 1,245,461 56,411 18,698 1,506,527 1,264,159 123,397 ( 96,150) (27,109 ) (23,254 ) 96,288 (119,404 ) 96,288 (119,404 ) 1,602,815 1,144,755 1,546,404 1,126,057 56,411 18,698 1,602,815 1,144,755 0.53 0.46
	( ( ( ( ( ( (

Notes
REVENUE
4
Cost of sales
Gross profit
Other income and gains
4
Selling and distribution expenses
Administrative expenses
Other expenses
Finance costs
6
Share of profits and losses of:
Joint ventures
Associates
PROFIT BEFORE TAX
5
Income tax expense
7
PROFIT FOR THE PERIOD
Attributable to:
Owners of the parent
Non-controlling interests
OTHER COMPREHENSIVE INCOME/(LOSS)
Other comprehensive income/(loss) to be reclassified to profit
or loss in subsequent periods, net of tax:
Exchange differences on translation of foreign operations
Net loss on available-for-sale financial assets
Net other comprehensive income/(loss) to be reclassified to
profit or loss in subsequent periods, net of tax
OTHER COMPREHENSIVE INCOME/(LOSS)
FOR THE PERIOD, NET OF TAX
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD, NET OF TAX
Attributable to:
Owners of the parent
Non-controlling interests
EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY
EQUITY HOLDERS OF THE PARENT:
Basic and diluted (expressed in RMB per share)
9

For the six months ended 30 June
2016
2015
(Unaudited )
(Unaudited)
RMB’000
RMB’000
10,839,588
9,375,658
(7,518,746
)
(6,670,749
)
3,320,842
2,704,909
384,881
393,278
( 831,835 )
( 754,856)
( 787,262 )
( 586,850)
( 160,477 )
( 120,961)
( 305,382 )
( 297,704)
58,071
48,004
27,076
34,709
1,705,914
1,420,529
( 199,387
)
(156,370
)
1,506,527
1,264,159
1,450,116
1,245,461
56,411
18,698
1,506,527
1,264,159
123,397
( 96,150)
(27,109
)
(23,254
)
96,288
(119,404
)
96,288
(119,404
)
1,602,815
1,144,755

1,546,404
1,126,057
56,411
18,698

1,602,815
1,144,755
0.53
0.46

(
(
(
(
(
(

(

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2016

Notes
NON-CURRENT ASSETS
Property, plant and equipment
10
Investment properties
Prepaid land lease payments
Goodwill
Other intangible assets
Investments in joint ventures
Investments in associates
Available-for-sale investments
11
Deferred tax assets
12
Trade receivables
13
Financial receivables
14
Prepayments, deposits and other receivables
15
Derivative financial instruments
16
Pledged deposits
18
Total non-current assets
CURRENT ASSETS
Inventories
17
Trade and bills receivables
13
Financial receivables
14
Prepayments, deposits and other receivables
15
Pledged deposits
18
Cash and cash equivalents
18
Assets of a disposal group classified as held for sale
Total current assets
CURRENT LIABILITIES
Trade and bills payables
19
Other payables, advances from customers and accruals
20
Interest-bearing bank loans and other borrowings
21
Tax payable
Provision
Total current liabilities
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES

30 June
31 December
2016
2015
(Unaudited )
(Audited )
RMB’000
RMB’000
18,543,014
17,015,112
72,248
73,697
234,629
201,881
269,840
316,259
662,634
534,673
512,835
487,921
592,546
559,279
1,373,658
901,121
1,408,015
1,338,436
1,628,829
1,762,112
2,284,040
1,867,047
1,773,899
1,938,558
3,351
4,121
276,924
285,542
29,636,462
27,285,759
3,924,479
3,037,200
17,728,332
14,526,382
240,134
145,126
1,943,192
1,271,563
364,291
158,993
5,587,087
6,147,378
29,787,515
25,286,642
30,000
-
29,817,515
25,286,642
13,945,758
14,274,618
5,404,944
3,220,532
1,950,272
1,734,103
228,686
439,427
1,307,416
1,290,212

22,837,076
20,958,892
6,980,439
4,327,750
36,616,901
31,613,509

continued/…

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) 30 June 2016

Notes TOTAL ASSETS LESS CURRENT LIABILITIES NON-CURRENT LIABILITIES Trade payables 19 Other payables 20 Interest-bearing bank loans and other borrowings 21 Deferred tax liabilities 12 Provision Government grants Deferred revenue Total non-current liabilities Net assets EQUITY Equity attributable to owners of the parent Share capital Reserves Non-controlling interests Total equity	30 June 31 December 2016 2015 (Unaudited ) (Audited ) RMB’000 RMB’000 36,616,901 31,613,509 801,878 815,887 125,503 97,493 14,381,799 10,760,624 73,410 58,089 2,278,248 2,202,699 259,170 270,101 21,792 18,012 17,941,800 14,222,905 18,675,101 17,390,604 2,735,541 2,735,541 15,254,531 14,025,905 17,990,072 16,761,446 685,029 629,158 18,675,101 17,390,604

........................................................................... Director Wu Gang

.................................................................. ............ Director Wang Haibo

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2016

		Attributable to owners of	theparent		Total equity (Unaudited) RMB’000 17,390,604 1,506,527 ( 27,109) 123,397 1,602,815 5,126 7,709 ( 897) (1,313,060) ( 13,743) - - 996,547
Share capital Capital reserve (Unaudited) (Unaudited) RMB’000 RMB’000 2,735,541 8,215,117 - - - - - - - - - - - - - ( 1,265) - - - - - - - - - - 2,735,541 8,213,852 2,694,588 7,962,425 - - - - - - - - - - - - - - - - - - - - - - 2,694,588 7,962,425	Special reserve (Unaudited) RMB’000 - - - - - - - - - - 21,221 (21,221) - - - - - - - - - - - - 17,172 (8,705) 8,467	Statutory surplus reserve Available- for-sale investment revaluation reserve Ot i (Unaudited) (Unaudited) ( RMB’000 RMB’000 816,177 119,314 - - - ( 27,109) - - - ( 27,109) - - - - - - - - - - - - - - - - 816,177 92,205 652,350 189,143 - - - (23,254) - - - (23,254) - - - - - - - - - - - - - - 652,350 165,889	her equity nstrument Exchange fluctuation reserve Unaudited) (Unaudited) RMB’000 RMB’000 - (342,032) - - - - - 123,397 - 123,397 - - - - - - - - - - - - - - 996,547 - 996,547 (218,635) - (340,211) - - - - - (96,150) - ( 96,150) - - - - - - - - - - - - - - * - * (436,361)	Retained profits (Unaudited) RMB’000 5,217,329 1,450,116 - - 1,450,116 - - - (1,313,060) - ( 21,221) 21,221 - 5,354,385 3,609,494 1,245,461 - - 1,245,461 - - - (1,077,835) - - - 3,777,120
- - - - - - - - -
2,735,541					18,675,101
2,694,588 - - -					15,227,009 1,264,159 ( 23,254) (96,150) 1,144,755 59,900 21,293 4,080 ( 1,077,835) ( 8,293) 17,172 ( 8,705) 15,379,376
- - - - - - - -
2,694,588

As at 30 June 2016, these reserve accounts comprised the consolidated reserves of RMB15,254,531,000 (unaudited) (30 June 2015: RMB12,129,890,000 (unaudited)) in the interim condensed consolidated statement of financial position.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2016

Notes
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments for:
Finance costs
6
Bank interest income
4
(
Share of profits and losses of joint ventures
(
Share of profits and losses of associates
(
Depreciation
5
Amortisation of prepaid land lease payments
5
Amortisation of other intangible assets
5
Gains on disposal of items of property, plant and
equipment
5
(
Losses on disposal of items of property, plant and
equipment
5
Gain on disposal of subsidiaries
4
(
Gain on disposal of available-for-sale investments
4
(
Dividend income from available-for-sale investments
4
(
Loss on disposal of investment in an associate
5
Interests from other investments
Fair value losses/(gains), net:
Derivative financial instruments
5
Equity investment at fair value through profit or loss
5
Impairment of trade and other receivables
5
Impairment of an investment in a joint venture
5
(Reversal of write-down)/write-down of inventories to net
realisable value
5
(
Government grants
(
Increase in inventories
Increase in trade and bills receivables
Increase in prepayments, deposits and other receivables
Increase in financial receivables
Increase in trade and bills payables
Increase in other payables, advances from customers and
accruals
Increase in provision
Increase/(decrease) in government grants
Cash generated from/(used in) operations
Interest received
Income tax paid
Net cash flows from/(used in) operating activities

For the six months ended 30 June
2016
2015
(Unaudited)
(Unaudited )
RMB’000
RMB’000
1,705,914
1,420,529
305,382
297,704
26,228)
( 71,273 )
58,071)
( 48,004 )
27,076)
( 34,709 )
383,459
234,762
3,217
2,069
32,633
26,497
692)
( 35 )
2,285
2,806
51,527)
-
98,680)
( 42,335 )
52,075)
( 13,013 )
4,701
-
-
( 7,656 )
845
( 539 )
-
( 112,279 )
93,619
89,313
-
5,947
2,827)
8,820
4,060
)
(19,108
)
2,210,819
1,739,496
( 873,846)
(1,302,293 )
(3,235,253)
(2,791,717 )
( 425,228)
( 128,649 )
( 422,158)
( 282,324 )
461,906
2,464,242
554,662
489,274
92,753
195,556
(3,090
)
6,130
(1,639,435)
389,715
23,515
71,273
(485,303
)
(252,532
)
(2,101,223
)
208,456

continued/…

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued) For the six months ended 30 June 2016

Notes
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of items of property, plant and equipment
Additions to other intangible assets
Additions to prepaid land lease payments
Acquisition of a subsidiary, net of cash acquired
23
Purchases of interests in joint ventures
Purchases of interests in associates
Purchases of available-for-sale investments
Purchase of other long-term assets
Proceeds of disposal of available-for-sale investments
Proceeds of disposal of interests in associates
Proceeds of disposal of items of property, plant and equipment
Disposal of subsidiaries, net of cash disposed of
24
Cash from disposal of subsidiaries in previous periods
Cash and cash equivalents included in assets held for sale
Increase in pledged deposits
Increase in non-pledged time deposits with original maturity
of more than three months when acquired
Interest received
Dividends received from available-for-sale investment
Dividends received from joint ventures and associates
Cash from other investments
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
New bank loans and other borrowings
Proceeds from issuance of perpetual medium-term notes
Repayment of bank loans and other borrowings
Increase in payables to the non-controlling shareholders
of subsidiaries
Interest paid
Capital contributions from non-controlling shareholders
Dividends paid to shareholders
Dividends paid to non-controlling shareholders
Disposal of interests in subsidiaries to non-controlling
shareholders
Increase in pledged deposits
Net cash flows from/(used in) financing activities
NET DECREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning of the period
Effect of foreign exchange rate changes, net
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD
18

For the six months ended 30 June
2016
2015
(Unaudited)
(Unaudited)
RMB’000
RMB’000
(2,423,329)
(2,519,623)
( 117,453)
( 227,351)
( 5,516)
( 15,839)
( 55,896)
( 9,969)
-
( 7,354)
( 12,500)
( 3,920)
( 659,350)
( 51,500)
-
( 72,412)
234,722
54,429
38,475
-
28,774
1,567
( 240)
17,098
-
34,929
-
( 3,603)
( 158,717)
( 24,717)
-
( 100,000)
2,375
-
50,389
-
43,877
85,298
30,740
32,899
(3,003,649
)
(2,810,068
)
4,025,154
3,938,706
996,547
-
( 297,630)
(4,391,589)
6,198
-
( 320,834)
( 499,795)
5,126
59,900
-
(1,064,877)
( 6,600)
( 8,293)
-
5,807
-
(7,007
)
4,407,961
(1,967,148
)
( 696,911)
(4,568,760)
6,141,430
9,523,826
11,777
(10,048
)
5,456,296
4,945,018

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

CORPORATE AND GROUP INFORMATION

Xinjiang Goldwind Science & Technology Co., Ltd. (the “Company”) is a joint stock company with limited liability registered in the People’s Republic of China (the “PRC”), which was established on 26 March 2001. The Company’s shares have been listed on The Shenzhen Stock Exchange from 26 December 2007 and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) from 8 October 2010. The registered office of the Company is located at 107 Shanghai Road, Economic & Technology Development District, Urumqi, Xinjiang, the PRC.

The Company and its subsidiaries (collectively referred to as the “Group”) were involved in the following principal activities:

Manufacture and sale of wind turbine generators and wind power components;
Provision of wind power related consultancy, wind farm construction and maintenance services;
Development and operation of wind farms, consisting of wind power generation service provided by the Group’s wind farms as well as the sale of wind farms, if appropriate; and
Development and operation of water treatment plants and finance lease services.

In the opinion of the directors, the Company has no controlling shareholder.

BASIS OF PREPARATION AND CHANGES IN THE ACCOUNTING POLICIES

2.1 Basis of preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2016 have been prepared in accordance with International Accounting Standard (“IASs”) 34 Interim Financial Reporting and the disclosure requirements of the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (“Listing Rules”).

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2015.

The interim condensed consolidated financial statements are presented in Renminbi (“RMB”) and all values are rounded to the nearest thousand, except when otherwise indicated.

2.2 New standard and amendments adopted by the Group

The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2015, except for the adoption of new and revised International Financial Reporting Standards (“IFRSs”) effective as of 1 January 2016. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The nature and the impact of each new standard or amendment is described below:

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

BASIS OF PREPARATION AND CHANGES IN THE ACCOUNTING POLICIES (continued)
2.2 New standard and amendments adopted by the Group (continued)

IFRS 14 Regulatory Deferral Accounts

IFRS 14 is an optional standard that allows an entity, whose activities are subject to rate-regulation, to continue applying most of its existing accounting policies for regulatory deferral account balances upon its first-time adoption of IFRSs. Entities that adopt IFRS 14 must present the regulatory deferral accounts as separate line items on the statement of financial position and present movements in these account balances as separate line items in the statement of profit or loss and other comprehensive income. The standard requires disclosure of the nature of, and risks associated with, the entity’s rate-regulation and the effects of that rate-regulation on its financial statements. IFRS 14 is effective for annual periods beginning on or after 1 January 2016. Since the Group is an existing IFRS preparer and is not involved in any rate-regulated activities, this standard does not apply.

Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations

The amendments to IFRS 11 require that a joint operator accounting for the acquisition of an interest in a joint operation, in which the activity of the joint operation constitutes a business, must apply the relevant IFRS 3 Business Combinations principles for business combination accounting. The amendments also clarify that a previously held interest in a joint operation is not remeasured on the acquisition of an additional interest in the same joint operation if joint control is retained. In addition, a scope exclusion has been added to IFRS 11 to specify that the amendments do not apply when the parties sharing joint control, including the reporting entity, are under common control of the same ultimate controlling party. The amendments apply to both the acquisition of the initial interest in a joint operation and the acquisition of any additional interests in the same joint operation and are prospectively effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments do not have any impact on the Group.

Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation

The amendments clarify the principle in IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets that revenue reflects a pattern of economic benefits that are generated from operating a business (of which the asset is a part) rather than the economic benefits that are consumed through use of the asset. As a result, a revenue-based method cannot be used to depreciate property, plant and equipment and may only be used in very limited circumstances to amortise intangible assets. The amendments are effective prospectively for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments do not have any impact on the Group given that the Group has not used a revenue-based method to depreciate its non-current assets.

Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants

The amendments change the accounting requirements for biological assets that meet the definition of bearer plants. Under the amendments, biological assets that meet the definition of bearer plants will no longer be within the scope of IAS 41 Agriculture . Instead, IAS 16 will apply. After initial recognition, bearer plants will be measured under IAS 16 at accumulated cost (before maturity) and using either the cost model or revaluation model (after maturity). The amendments also require that produce that grows on bearer plants will remain in the scope of IAS 41 measured at fair value less costs to sell. For government grants related to bearer plants, IAS 20 Accounting for Government Grants and Disclosure of Government Assistance will apply. The amendments are retrospectively effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments do not have any impact on the Group as the Group does not have any bearer plants.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

BASIS OF PREPARATION AND CHANGES IN THE ACCOUNTING POLICIES (continued)
2.2 New standard and amendments adopted by the Group (continued)

Amendments to IAS 27 Equity Method in Separate Financial Statements

The amendments will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. Entities already applying IFRS and electing to change to the equity method in their separate financial statements will have to apply that change retrospectively. First-time adopters of IFRSs electing to use the equity method in their separate financial statements will be required to apply this method from the date of transition to IFRSs. The amendments are effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. The Group is accessing the impact on the Group’s separate financial statements.

Annual Improvements 2012-2014 Cycle

These improvements are effective for annual periods beginning on or after 1 January 2016. They include:

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

Assets (or disposal groups) are generally disposed of either through sale or distribution to owners. The amendments clarify that changing from one of these disposal methods to the other would not be considered a new plan of disposal, rather it is a continuation of the original plan. There is, therefore, no interruption of the application of the requirements in IFRS 5. The amendments must be applied prospectively.

IFRS 7 Financial Instruments: Disclosures

(i) Servicing contracts

The amendments clarifiy that a servicing contract that includes a fee can constitute continuing involvement in a financial asset. An entity must assess the nature of the fee and the arrangement against the guidance for continuing involvement in IFRS 7 in order to assess whether the disclosures are required. The assessment of which servicing contracts constitute continuing involvement must be done retrospectively. However, the required disclosures would not need to be provided for any period beginning before the annual period in which the entity first applies the amendments.

(ii) Applicability of the amendments to IFRS 7 to condensed interim financial statements The amendments clarifiy that the offsetting disclosure requirements do not apply to condensed interim financial statements, unless such disclosures provide a significant update to the information reported in the most recent annual report. The amendments must be applied retrospectively.

IAS 19 Employee Benefits

The amendment clarifies that market depth of high quality corporate bonds is assessed based on the currency in which the obligation is denominated, rather than the country where the obligation is located. When there is no deep market for high quality corporate bonds in that currency, government bond rates must be used. This amendment must be applied prospectively.

IAS 34 Interim Financial Reporting

The amendment clarifies that the required interim disclosures must either be in the interim financial statements or incorporated by cross-reference between the interim financial statements and wherever they are included within the interim financial report (e.g., in the management commentary or risk report). The other information within the interim financial report must be available to users on the same terms as the interim financial statements and at the same time. This amendment must be applied retrospectively.

These amendments do not have any impact on the Group.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

BASIS OF PREPARATION AND CHANGES IN THE ACCOUNTING POLICIES (continued)
2.2 New standard and amendments adopted by the Group (continued)

Amendments to IAS 1 Disclosure Initiative

The amendments to IAS 1 clarify, rather than significantly change, existing IAS 1 requirements. The amendments clarify:

the materiality requirements in IAS 1
that specific line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position may be disaggregated
that entities have flexibility as to the order in which they present the notes to financial statements
that the share of other comprehensive income of associates and joint ventures accounted for using the equity method must be presented in aggregate as a single line item, and classified between those items that will or will not be subsequently reclassified to profit or loss

Furthermore, the amendments clarify the requirements that apply when additional subtotals are presented in the statement of financial position and the statement(s) of profit or loss and other comprehensive income. These amendments are effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments do not have any impact on the Group.

Amendments to IFRS 10, IFRS 12 and IAS 28 Investment Entities: Applying the Consolidation Exception

The amendments address issues that have arisen in applying the investment entities exception under IFRS 10 Consolidated Financial Statements . The amendments to IFRS 10 clarify that the exemption from presenting consolidated financial statements applies to a parent entity that is a subsidiary of an investment entity, when the investment entity measures all of its subsidiaries at fair value.

Furthermore, the amendments to IFRS 10 clarify that only a subsidiary of an investment entity that is not an investment entity itself and that provides support services to the investment entity is consolidated. All other subsidiaries of an investment entity are measured at fair value. The amendments to IAS 28 Investments in Associates and Joint Ventures allow the investor, when applying the equity method, to retain the fair value measurement applied by the investment entity associate or joint venture to its interests in subsidiaries.

These amendments must be applied retrospectively and are effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These amendments do not have any impact on the Group as the Group does not apply the consolidation exception.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

BASIS OF PREPARATION AND CHANGES IN THE ACCOUNTING POLICIES (continued)
2.3 Issued but not yet effective IFRSs

The Group has not applied the following new and revised IFRSs, that have been issued but are not yet effective, in the interim condensed consolidated financial statements.

IFRS 9	Financial Instruments2
Amendments to IAS 7	Disclosure Initiative1
Amendments to IAS 12	Recognition of Deferred Tax Assets for Unrealised
	Losses1
IFRS 15	Revenue from Contracts with Customers2
IFRS 16	Leases3
Amendments to IFRS 2	Share-based Payment2
Amendments to IFRS 10 and IAS 28	Sale or Contribution of Assets between an Investor and its
	Associate or Joint Venture4
Amendments to IFRS 15	Revenue from Contracts with Customers2

1 Effective for annual periods beginning on or after 1 January 2017
2 Effective for annual periods beginning on or after 1 January 2018
3 Effective for annual periods beginning on or after 1 January 2019
4
No mandatory effective date yet determined but is available for adoption

The Group is in the process of making an assessment of the impact of these new and revised IFRSs upon initial application.

OPERATING SEGMENT INFORMATION

For management purposes, the Group is organised into business units based on their products and services and has four reportable operating segments as follows:

(a) the wind turbine generator manufacturing and sale segment engages in the research and development, manufacture and sale of wind turbine generators and wind power components;
(b) the wind power services segment provides wind power related consultancy, wind farm construction and maintenance services;
(c) the wind farm development segment engages in the development of wind farms, which consists of wind power generation service provided by the Group’s wind farms as well as the sale of wind farms, if appropriate; and
(d) the others segment mainly engages in the operation of water treatment plants under the service concession arrangement and finance leasing services, which comprises direct finance leasing and sale-lease back.

Management monitors the operating results of the Group’s operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment performance is evaluated based on reportable segment profit or loss, which is a measure of adjusted profit or loss before tax. The adjusted profit or loss before tax is measured consistently with the Group’s profit before tax.

Intersegment sales and transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

3. OPERATING SEGMENT INFORMATION (continued)

The following tables present revenue and profit information about the Group’s operating segments for the six months ended 30 June 2016 and 2015:

For the six months ended 30 June 2016

	Wind turbine generator
	manufacturing and sale		Wind power services	Wind farm development		Others		Eliminations		Total
	(Unaudited)		(Unaudited )	(Unaudited	)	(Unaudited)		(Unaudited	)	(Unaudited	)
	RMB’000		RMB’000	RMB’000		RMB’000		RMB’000		RMB’000
Segment revenue:
Sales to external customers	9,134,944		445,494	1,138,642		120,508		-		10,839,588
Intersegment sales	1,112,687		140,979	-		2,984		(1,256,650 )		-
Total revenue	10,247,631		586,473	1,138,642		123,492		(1,256,650 )		10,839,588
Segment results:	1,155,377		16,288	694,099		268,946		( 149,642	)	1,985,068
Interest income	150,694		83	69,851		6,571		( 200,971	)	26,228
Finance costs	( 108,000	)	-	(327,180	)	(3,536	)	133,334		( 305,382	)
Profit before tax	1,198,071		16,371	436,770		271,981		( 217,279	)	1,705,914
Other segment information:
Share of profits and losses of:
Joint ventures	-		-	58,071		-		-		58,071
Associates	2,523		( 1,141 )	5,695		19,999		-		27,076
Depreciation and amortisation	89,447		3,756	355,940		5,403		( 35,237	)	419,309
Reversal of write-down of
inventories to net realisable
value	( 2,827)		-	-		-		-		( 2,827	)
Impairment of trade and other
receivables	96,831		6,185	5,475		208		-		108,699
Reversal of impairment of trade
and other receivables	( 14,911)		-	-		( 169	)	-		( 15,080	)
Product warranty provision	473,820		-	-		-		( 52,015	)	421,805
Capital expenditure(1)	150,797		5,765	2,283,154		145,629		( 266,741	)	2,318,604

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

3. OPERATING SEGMENT INFORMATION (continued)

For the six months ended 30 June 2015

	Wind turbine generator
	manufacturing and sale	Wind power services		Wind farm development	Others		Eliminations	Total
	(Unaudited)	(Unaudited )		(Unaudited)	(Unaudited	)	(Unaudited)	(Unaudited)
	RMB’000	RMB’000		RMB’000	RMB’000		RMB’000	RMB’000
Segment revenue:
Sales to external customers	8,008,317	451,991		833,676	81,674		-	9,375,658
Intersegment sales	2,201,622	92,379		-	3,153		(2,297,154 )	-
Total revenue	10,209,939	544,370		833,676	84,827		(2,297,154 )	9,375,658
Segment results:	1,270,914	10,067		502,917	209,350		( 346,288)	1,646,960
Interest income	101,126	109		3,433	3,044		( 36,439)	71,273
Finance costs	(71,264 )	(2	)	(227,129 )	(2,462	)	3,153	(297,704 )
Profit before tax	1,300,776	10,174		279,221	209,932		(379,574 )	1,420,529
Other segment information:
Share of profits and losses of:
Joint ventures	-	-		48,004	-		-	48,004
Associates	1,829	( 123	)	4,506	28,497		-	34,709
Depreciation and amortisation	68,761	3,592		214,149	2,355		( 25,529)	263,328
Write-down of inventories to net
realisable value	8,820	-		-	-		-	8,820
Impairment of trade and other
receivables	130,049	3,436		7,223	-		-	140,708
Reversal of impairment of trade
and other receivables	( 51,395)	-		-	-		-	( 51,395)
Impairment of an investment in
a joint venture	5,947	-		-	-		-	5,947
Product warranty provision	419,592	-		-	-		( 33,351)	386,241
Capital expenditure(1)	91,221	3,342		3,110,429	244,054		( 568,551)	2,880,495

(1) Capital expenditure mainly consists of additions to property, plant and equipment, other intangible assets and prepaid land lease payments.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

3. OPERATING SEGMENT INFORMATION (continued)

The following table presents segment assets and liabilities of the Group’s operating segments as at 30 June 2016 and 31 December 2015:

Wind turbine generator manufacturing and sale Wind power services Wind farm development RMB’000 RMB’000 RMB’000 Segment assets 30 June 2016 (Unaudited) 46,414,243 2,291,616 35,176,914 31 December 2015 (Audited) 43,801,389 1,982,112 27,031,906 Segment liabilities 30 June 2016 (Unaudited) 28,121,362 1,049,565 25,655,925 31 December 2015 (Audited) 26,417,915 755,775 19,276,557 Investments in joint ventures 30 June 2016 (Unaudited) 860 - 581,451 31 December 2015 (Audited) 827 - 513,706 Investments in associates 30 June 2016 (Unaudited) 79,030 13,444 278,462 31 December 2015 (Audited) 76,507 14,584 211,318	Others Eliminations RMB’000 RMB’000 5,152,615 (29,581,411 ) 4,733,798 (24,976,804 ) 2,325,529 (16,373,505 ) 2,159,882 (13,428,332 ) 36,750 ( 106,226 ) 36,750 ( 63,362 ) 222,960 ( 1,350 ) 258,697 ( 1,827 )	Total RMB’000 59,453,977
		52,572,401
		40,778,876
		35,181,797
		512,835
		487,921
		592,546
		559,279

Geographical information

(a) Revenue from external customers

Mainland China Overseas	For the six months ended 30 June 2016 2015 (Unaudited) (Unaudited) RMB’000 RMB’000 10,186,494 8,232,590 653,094 1,143,068 10,839,588 9,375,658

The revenue information above is based on the locations of the customers.

(b) Non-current assets

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited )	(Audited)
	RMB’000	RMB’000
Mainland China	20,693,518	19,404,192
United States of America	314,286	311,777
Germany	463,352	443,182
Panama	727,768	731,629
Australia and Others	331,101	104,980
	22,530,025	20,995,760

The non-current asset information above is based on the locations of the assets and excludes financial instruments and deferred tax assets.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

3. OPERATING SEGMENT INFORMATION (continued)

Information about major customers

For the six months ended 30 June 2016, revenues of RMB1,391,612,000 and RMB1,308,146,000 were derived from sales by the wind turbine generator manufacturing and sale segment to two customers, which individually accounted for over 10% of the Group’s total revenue, including sales to a group of entities which are known to be under common control with those customers (for the six months ended 30 June 2015: no revenue generated from any of the Group’s customers individually accounted for 10% or more of the Group’s total revenue).

4. REVENUE, OTHER INCOME AND GAINS

Revenue comprises the net invoiced value of goods sold, after allowances for returns and trade discounts; an appropriate proportion of contract revenue of construction contracts; and the values of services rendered; and gross rental income received and receivable form investment properties during the six months ended 30 June 2016 and 2015.

An analysis of the Group’s revenue, other income and gains is as follows:

Revenue
Sale of wind turbine generators and wind power components
Wind power services
Wind farm development
Others
Other income and gains
Bank interest income
Dividend income from available-for-sale investments
Gross rental income
Government grants
Value-added tax refund
Insurance compensation on product warranty expenditures
Gain on disposal of subsidiaries
Gain on disposal of available-for-sale investments
Gain on disposal of items of property, plant and equipment
Gain on bargain purchase
Fair value gains, net:
Derivative instruments – transactions not qualifying as hedges
Equity investment at fair value through profit or loss
Interest income from other receivable investment
Others

For the six months ended 30 June
2016
2015
(Unaudited)
(Unaudited )
RMB’000
RMB’000
9,134,944
8,008,317
445,494
451,991
1,138,642
833,676
120,508
81,674
10,839,588
9,375,658
26,228
71,273
52,075
13,013
3,767
12,388
18,463
37,119
29,022
31,503
80,764
35,476
51,527
-
98,680
42,335
692
35
344
683
-
539
-
112,279
-
7,656
23,319
28,979
384,881
393,278

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

5. PROFIT BEFORE TAX

The Group’s profit before tax is arrived at after charging/(crediting):

Notes
Cost of inventories sold
Cost of services provided
Cost of wind power generation
Cost of others
Depreciation provided for:
Property, plant and equipment
10
Investment properties
Amortisation of prepaid land lease payments
Amortisation of other intangible assets
Impairment of trade receivables
13
Reversal of impairment of trade receivables
13
Impairment of other receivables
15
Reversal of impairment of other receivables
15
Impairment of an investment in a joint venture
(Reversal of write-down)/write-down of inventories to net
realisable value
Gain on disposal of items of property, plant and equipment
Loss on disposal of items of property, plant and equipment
Lease expenses under operating leases of land
and buildings
Auditors’ remuneration
Employee benefit expenses
(including directors’, supervisors’ and the chief executive’s
remuneration):
Wages and salaries
Pension scheme contributions
(defined contribution scheme)
Welfare and other expenses

For the six months ended 30 June
2016
2015
(Unaudited)
(Unaudited)
RMB’000
RMB’000
6,747,268
5,977,124
357,319
286,311
402,901
402,201
11,258
5,113
7,518,746
6,670,749
382,011
233,314
1,448
1,448
383,459
234,762
3,217
2,069
32,633
26,497
35,850
28,566
108,699
128,246
( 7,044)
( 51,395)
-
12,462
(8,036
)
-
93,619
89,313
-
5,947
( 2,827)
8,820
( 692)
( 35)
2,285
2,806
1,593
2,771
11,199
6,059
1,651
1,651
631,161
444,043
59,377
41,576
101,708
78,298
792,246
563,917

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

5. PROFIT BEFORE TAX (continued)

		For the six months ended 30 June	For the six months ended 30 June	For the six months ended 30 June
		2016		2015
		(Unaudited)		(Unaudited	)
	Note	RMB’000		RMB’000
Research and development costs:
Staff costs		151,626		117,463
Depreciation and amortisation		27,591		20,112
Expenditure on materials and others		110,285		80,276
		289,502		217,851
Government grants		( 18,463)		( 37,119)
Product warranty provision:
Additional provision		441,686		403,254
Reversals of unutilised provision		( 19,881 )		( 17,013	)
		421,805		386,241
Insurance compensation on product warranty
expenditures		( 80,764)		( 35,476	)
Foreign exchange differences, net		28,463		13,637
Fair value losses/(gains), net:
Derivative instruments – transactions not qualifying as hedges		845		( 539 )
Equity investment at fair value through profit or loss		-		( 112,279 )
Bank interest income		( 26,228	)	( 71,273	)
Gain on disposal of subsidiaries		( 51,527	)	-
Gain on disposal of available-for-sale investments		( 98,680 )		( 42,335 )
Gain on bargain purchase	23	( 344 )		( 683 )
Loss on disposal of investment in an associate		4,701		-

6. FINANCE COSTS

Interest on bank loans and other borrowings Interest capitalised	For the six months ended 30 June 2016 2015 (Unaudited) (Unaudited) RMB’000 RMB’000 318,392 336,764 (13,010 ) (39,060 ) 305,382 297,704

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

7. INCOME TAX EXPENSE

The Company has been identified as a “high and new technology enterprise” and is to be entitled to preferential income tax at a rate of 15% for the three years ended 31 December 2017 in accordance with the PRC Corporate Income Tax Law.

The Company’s certain subsidiaries in Mainland China were exempted from income tax or taxed at a preferential rate of 15% primarily due to their status as “high and new technology enterprises” or their involvement in important public infrastructure investment projects that were supported by the government or development projects in the western region of the PRC.

Except for certain preferential treatment available to certain subsidiaries of the Company and the Company as mentioned above, the entities within the Group in Mainland China have been subject to corporate income tax at a rate of 25%.

Profits tax for Hong Kong has been provided at the rate of 16.5% on the estimated assessable profits arising in Hong Kong during the period.

Taxes on profits assessable elsewhere have been calculated at the rates of tax prevailing in the countries in which the Group operates, based on existing legislation, interpretations and practices in respect thereof.

Current income tax - Hong Kong - Mainland China - Elsewhere Deferred income tax (note 12) Tax charge for the period	For the six months ended 30 June 2016 2015 (Unaudited) (Unaudited) RMB’000 RMB’000 14,176 40,603 247,313 204,256 9,798 6,035 271,287 250,894 (71,900 ) (94,524 ) 199,387 156,370

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

7. INCOME TAX EXPENSE (continued)

A reconciliation of the income tax expense applicable to profit before tax at the statutory income tax rate applicable to the Company to the income tax expense at the Group’s effective income tax rate is as follows:

Profit before tax
Income tax charge at the statutory income tax rate of 25%
Effect of the different income tax rates for overseas entities
Effect of the preferential income tax rates for domestic entities
Tax losses not recognised
Income not subject to tax
Expenses not deductible for tax
Tax effect of share of profits and losses of joint ventures
Tax effect of share of profits and losses of associates
Others
Tax charge for the period at the effective rate

For the six months ended 30 June
2016
2015
(Unaudited )
(Unaudited)
RMB’000
RMB’000
1,705,914
1,420,529
426,479
355,132
( 6,031 )
( 5,362)
( 183,709 )
( 163,592)
( 2,539 )
( 5,517 )
( 13,019 )
( 5,166 )
1,215
1,204
( 14,518 )
( 12,001)
( 6,769 )
( 8,677)
(1,722
)
349
199,387
156,370

8. DIVIDENDS

The proposed final dividend of RMB0.48 per share, which amounted to RMB1,313,060,000, for the year ended 31 December 2015 was approved by the Company’s shareholders on 28 June 2016.

The board of directors of the Company does not recommend the payment of any interim dividend for the six months ended 30 June 2016 (six months ended 30 June 2015: Nil).

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

9. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

The calculation of the basic earnings per share amount for the period is based on the profit for the six months ended 30 June 2016 attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares of 2,735,541,000 (six months ended 30 June 2015: 2,694,588,000) in issue during the period.

Earnings Profit for the period attributable to ordinary equity holders of the parent, used in the basic earnings per share calculation Shares Weighted average number of ordinary shares in issue during the period used in the basic earnings per share calculation	For the six months ended 30 June 2016 2015 (Unaudited ) (Unaudited ) RMB’000 RMB’000 1,450,116 1,245,461 Number of shares For the six months ended 30 June 2016 2015 (Unaudited ) (Unaudited ) 2,735,541,000 2,694,588,000	For the six months ended 30 June 2016 2015 (Unaudited ) (Unaudited ) RMB’000 RMB’000 1,450,116 1,245,461 Number of shares For the six months ended 30 June 2016 2015 (Unaudited ) (Unaudited ) 2,735,541,000 2,694,588,000
		2016 (Unaudited ) 2,735,541,000

The Group did not have any dilutive potential ordinary shares during the six months ended 30 June 2016 and 2015.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

10. PROPERTY, PLANT AND EQUIPMENT

For the six months ended 30 June 2016 Electronic equipment Construction Buildings Machinery Vehicles and others in progress (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Cost: At 1 January 2016 839,452 9,509,701 92,019 361,222 7,502,255 Additions 13,880 21,307 5,547 32,970 2,019,961 Disposals - ( 5,724) ( 3,631) ( 4,768) - Disposal of subsidiaries (note 24) - ( 80) ( 293) - ( 164,186) Transfers 4,061 6,554,431 - 7,841 (6,566,333) Transfer to prepaid land lease payments - - - - ( 38,018) Exchange realignment 2,780 25,536 479 1,966 1,157 At 30 June 2016 860,173 16,105,171 94,121 399,231 2,754,836 Accumulated depreciation and impairment: At 1 January 2016 (119,064) ( 939,192) (34,243) (170,453) (26,585) Depreciation charge for the period (note 5) ( 12,430) ( 331,296) ( 5,396) ( 32,889) - Disposals - 4,625 1,057 2,137 - Disposal of subsidiaries (note 24) - 9 45 - - Exchange realignment (527) (5,108) (239) (969) - At 30 June 2016 (132,021) (1,270,962) (38,776) (202,174) (26,585) Net carrying amount: At 30 June 2016 728,152 14,834,209 55,345 197,057 2,728,251 At 1 January 2016 720,388 8,570,509 57,776 190,769 7,475,670		For the six months ended 30 June 2016
			Total (Unaudited ) RMB’000 18,304,649 2,093,665 ( 14,123) ( 164,559) - ( 38,018) 31,918 20,213,532 (1,289,537) ( 382,011) 7,819 54 (6,843) (1,670,518) 18,543,014 17,015,112

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

10. PROPERTY, PLANT AND EQUIPMENT (continued)

Cost: At 1 January 2015 Additions Disposals Acquisition of subsidiaries Disposal of subsidiaries Transfers Exchange realignment At 31 December 2015 Accumulated depreciation and impairment: At 1 January 2015 Depreciation charge for the year Provision for impairment Disposals Acquisition of subsidiaries Disposal of subsidiaries Exchange realignment At 31 December 2015 Net carrying amount: At 31 December 2015 At 1 January 2015		Year ended 31 December 2015 Machinery Vehicles Electronic equipment and others Construction in progress Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 7,772,248 74,327 269,181 2,316,858 11,274,504 11,094 20,605 90,419 6,882,272 7,005,518 ( 55,835) ( 3,034) ( 12,469) ( 161) ( 71,499 ) 416 676 576 63,533 65,201 - ( 235) ( 4) ( 17,380) ( 17,619 ) 1,730,255 - 14,765 ( 1,745,020) - 51,523 ( 320) (1,246) 2,153 48,544 9,509,701 92,019 361,222 7,502,255 18,304,649 ( 535,971) ( 25,498) ( 134,655) - ( 792,726 ) ( 405,914) ( 9,988) ( 41,798) - ( 480,692 ) - - - ( 26,585) ( 26,585 ) 7,531 1,460 5,441 - 14,432 ( 44) ( 356) ( 249) - ( 649 ) - 7 - - 7 (4,794) 132 808 - ( 3,324 ) (939,192) (34,243) (170,453) ( 26,585) (1,289,537 ) 8,570,509 57,776 190,769 7,475,670 17,015,112 7,236,277 48,829 134,526 2,316,858 10,481,778
	Buildings RMB’000 841,890 1,128 - - - - (3,566) 839,452 ( 96,602) ( 22,992) - - - - 530 (119,064) 720,388 745,288

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

11. AVAILABLE-FOR-SALE INVESTMENTS

	As at 30 June As at 31 December	As at 30 June As at 31 December
	2016	2015
	(Unaudited )	(Audited )
	RMB’000	RMB’000
Listed equity investment, at fair value	501,792	322,825
Unlisted equity investments, at cost	871,866	578,296
	1,373,658	901,121

12. DEFERRED TAX

The movements in deferred tax assets and liabilities during the period are as follows:

For the six months ended 30 June 2016

Deferred tax assets

						Government	Unrealised
						grants	gains
Provision for					Provisions	received not yet	arising from
	impairment				and	recognised as	intra-group
	of assets Tax		losses		accruals	income	sales	Others	Total
	(Unaudited) (Unaudited)				(Unaudited)	(Unaudited)	(Unaudited) (Unaudited)		(Unaudited)
	RMB’000	RMB’000			RMB’000	RMB’000	RMB’000	RMB’000	RMB’000
At 1 January 2016	140,502		48,064		611,688	8,660	495,558	33,964	1,338,436
Deferred tax
credited/(charged) to
profit or loss during
the period (note 7)	11,730		17,586		10,225	439	38,903	( 9,281)	69,602
Deferred tax from
disposal of
subsidiaries (note
24)	-	(	23)		-	-	-	-	(23)
Deferred tax assets
at 30 June 2016	152,232		65,627		621,913	9,099	534,461	24,683	1,408,015
Deferred tax liabilities
					Excess of fair values of
					identifiable assets and
					liabilities over carrying
				values arising from acquisi
						tion
					of	subsidiaries	Others		Total
						(Unaudited)	(Unaudited)	(Unaudited)
						RMB’000	RMB’000	RMB’000
At 1 January 2016						38,341	19,748		58,089
Deferred tax (credited)/charged to profit or			loss
during the period (note 7)						( 6,307)	4,009	(	2,298)
Deferred tax generated from acquisition of
subsidiaries (note 23)						9,819	7,291	17,110
Exchange differences						509	-		509
Deferred tax liabilities at	30 June 2016					42,362	31,048	73,410

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

12. DEFERRED TAX (continued)

For the year ended 31 December 2015

Deferred tax assets

13.	Provision for impairment of assets Tax losses Provisions and accruals Government grants received not yet recognised as income Unrealised gains arising from intra- group sales Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 1 January 2015 108,249 30,588 423,731 5,293 265,752 17,220 850,833 Deferred tax credited to profit or loss 32,253 17,476 187,957 3,367 229,806 16,744 487,603 At 31 December 2015 140,502 48,064 611,688 8,660 495,558 33,964 1,338,436 Deferred tax liabilities Excess of fair values of identifiable assets and liabilities over carrying values arising from acquisition of subsidiaries Others Total RMB’000 RMB’000 RMB’000 At 1 January 2015 21,122 5,775 26,897 Deferred tax charged/(credited) to profit or loss ( 4,445) 13,973 9,528 Deferred tax generated from acquisition of subsidiaries 22,757 - 22,757 Exchange realignment (1,093) - (1,093) At 31 December 2015 38,341 19,748 58,089 TRADE AND BILLS RECEIVABLES As at As at 30 June 2016 31 December 2015 (Unaudited) (Audited) RMB’000 RMB’000 Trade receivables 15,406,982 12,616,284 Bills receivable 1,242,594 992,349 Retention money receivables 3,402,893 3,285,247 Provision for impairment (695,308) (605,386) 19,357,161 16,288,494 Portion classified as non-current assets (i) (1,628,829) (1,762,112) Current portion 17,728,332 14,526,382	Total RMB’000 850,833 487,603 1,338,436

The Group normally allows a credit period of not more than three months to its customers. For retention money receivables, the due dates usually range from three to five years after the completion of commissioning for wind turbines. The Group seeks to maintain strict control over its outstanding receivables. Overdue balances are reviewed regularly by senior management. In view of the aforementioned and the fact that the Group’s trade and bills receivable relate to a large number of diversified customers, there is no significant concentration of credit risk. The Group does not hold any collateral or other credit enhancements over its trade receivables balances. Trade and bills receivables are non-interest-bearing.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

TRADE AND BILLS RECEIVABLES (continued)
(i) The non-current portion of trade receivables mainly represents the amount of receivables for retentions held by customers at 30 June 2016 and 31 December 2015.

An aged analysis of the trade and bills receivables, based on the invoice date and net of provisions, is as follows:

3 Within 3 months 3 to 6 months 6 months to 1 year 1 to 2 years 2 to 3 years Over 3 years	As at As at 0 June 2016 31 December 2015 (Unaudited ) (Audited) RMB’000 RMB’000 5,465,571 6,533,005 2,863,827 2,484,547 5,068,658 2,044,802 3,801,484 3,211,365 1,191,591 932,819 966,030 1,081,956 19,357,161 16,288,494

The movements in the provision for impairment of trade receivables are as follows:

	For the six months ended	For the year ended
	30 June 2016	31 December 2015
	(Unaudited)	(Audited)
	RMB’000	RMB’000
At beginning of the period/year	605,386	463,984
Impairment losses recognised (note 5)	108,699	271,208
Impairment losses reversed (note 5)	( 7,044)	(121,391)
Amounts written off as uncollectible	( 12,095)	( 6,325)
Exchange realignment	362	(2,090)
At end of the period/year	695,308	605,386

Included in the above provision for impairment of trade receivables is a provision for individually impaired trade receivables of RMB229,635,000 (31 December 2015: RMB154,147,000) with a carrying amount before provision of RMB282,445,000 (31 December 2015: RMB320,957,000).

The individually impaired trade receivables relate to customers that were default in principal payments and only a portion of the receivables is expected to be recovered.

An aged analysis of the trade receivables that are not considered to be impaired is as follows:

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited)	(Audited)
	RMB’000	RMB’000
Neither past due nor impaired	10,197,606	9,326,167
Less than 6 months past due	4,407,337	3,867,003
	14,604,943	13,193,170

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

13. TRADE AND BILLS RECEIVABLES (continued)

Receivables that were neither past due nor impaired relate to a large number of diversified customers for whom there was no recent history of default.

Receivables that were past due but not impaired relate to a number of independent customers that have a good track record with the Group. Based on past experience, the directors are of the opinion that no provision for impairment is necessary in respect of these balances as there has not been a significant change in credit quality and the balances are still considered fully recoverable.

The amounts due from Xinjiang Wind Power Company Limited (“Xinjiang Wind Power”) ( 新疆风能有限责任公司 ), a shareholder holds a 13.74% interest in the Company, joint ventures and associates included in the trade and bills receivables are as follows:

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited)	(Audited)
	RMB’000	RMB’000
A shareholder holding a 13.74% interest in the Company	9,371	1,712
Joint ventures	17,957	23,280
Associates	44,188	49,168
	71,516	74,160

The above amounts are unsecured, non-interest-bearing and repayable on credit terms similar to those offered to independent customers of the Group.

14. FINANCIAL RECEIVABLES

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited)	(Audited)
	RMB’000	RMB’000
Receivables for service concession agreements	501,288	393,087
Receivables for finance lease services	2,022,886	1,619,086
	2,524,174	2,012,173
Portion classified as non-current assets	(2,284,040)	(1,867,047)
Current portion	240,134	145,126

Receivables for service concession agreements arose from service concession contracts to build and operate water treatment plants and were recognised to the extent that the Group has an unconditional right to receive cash from or at the direction of the designees.

Receivables for finance lease services arose from finance lease contracts to lease equipment to clients and were recognised to the extent that the Group has the right to collect rental income from clients.

Financial receivables were unbilled receivables, and were neither past due nor impaired. Financial receivables were mainly due from governmental authorities in Mainland China or several clients which have good credit records. The Directors are of the opinion that no provision for impairment is necessary in respect of these balances as there has not been a significant change in credit quality and the balances are still considered fully recoverable. The Group does not hold any collateral or other credit enhancements over these balances.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

15. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES

	As at		As at
	30 June 2016		31 December 2015
	(Unaudited	)	(Audited	)
	RMB’000		RMB’000
Deductible input value-added tax	1,833,525		1,684,618
Deposits and other receivables	896,375		566,453
Advance to suppliers	860,023		641,540
Prepayments	140,561		338,932
Provision for impairment of deposits and other receivables	(13,393	)	(21,422	)
	3,717,091		3,210,121
Portion classified as non-current assets (i)	(1,773,899	)	(1,938,558	)
Current portion	1,943,192		1,271,563

(i) The non-current portion of deposits and other receivables mainly represent advances to construction suppliers and long term deductible input value-added tax at 30 June 2016 and 31 December 2015.

Movements in the provision for impairment of other receivables are as follows:

	For the six months ended	For the year ended
	30 June 2016	31 December 2015
	(Unaudited )	(Audited	)
	RMB’000	RMB’000
At beginning of the period/year	21,422	16,191
Impairment losses recognised (note 5)	-	30,931
Impairment losses reversed (note 5)	( 8,036 )	-
Amounts written off as uncollectible	-	(25,691	)
Exchange realignment	7	(9	)
At end of the period/year	13,393	21,422

The amounts due from the Group’s joint ventures and associates included in the prepayments, deposits and other receivables are as follows:

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited )	(Audited )
	RMB’000	RMB’000
Joint ventures	5,837	5,837
Associates	121,949	43,584
	127,786	49,421

The above amounts are unsecured, non-interest-bearing and repayable on credit terms similar to those offered to independent third parties.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

16. DERIVATIVE FINANCIAL INSTRUMENTS

		As at	As at	As at
		30 June 2016		31 December 2015
		(Unaudited)		(Audited )
		RMB’000		RMB’000
	Assets:
	Interest rate swap	3,351		4,121
17.	INVENTORIES
		As at 30 June		As at 31 December
		2016		2015
		(Unaudited	)	(Audited)
		RMB’000		RMB’000
	Raw materials	1,599,396		1,365,793
	Work in progress, finished and semi-finished goods	2,294,795		1,657,557
	Low-value consumables and others	30,288		13,850
		3,924,479		3,037,200
18.	CASH AND CASH EQUIVALENTS AND PLEDGED DEPOSITS
		As at		As at
		30 June 2016		31 December 2015
		(Unaudited	)	(Audited	)
		RMB’000		RMB’000
	Cash and bank balances	5,539,028		3,923,586
	Time deposits	689,274		2,668,327
		6,228,302		6,591,913
	Less: Pledged time deposits for
	- Bank loans	( 167,407	)	( 118,496	)
	- Letters of credit	( 838	)	( 820	)
	- Guarantee issued	( 196,046	)	( 39,677	)
	- Provision for risk	(276,924	)	(285,542	)
		(641,215	)	(444,535	)
	Cash and cash equivalents in the consolidated statement of
	financial position	5,587,087		6,147,378
	Less: Non-pledged time deposits with original maturity of three
	months or more when acquired	(130,791	)	(5,948	)
	Cash and cash equivalents in the consolidated statement of cash
	flows	5,456,296		6,141,430
	Pledged deposits	641,215		444,535
	Portion classified as non-current assets	(276,924	)	(285,542	)
	Current portion	364,291		158,993

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

18. CASH AND CASH EQUIVALENTS AND PLEDGED DEPOSITS (continued)

	As at		As at
	30 June 2016	31 December 2015
	(Unaudited	)	(Audited )
	RMB’000		RMB’000
Cash and cash equivalents and pledged deposits denominated in:
- RMB	5,255,411		5,437,604
- United States dollar	486,859		597,601
- Euro	215,403		316,343
- Hong Kong dollar	64,368		65,836
- Australian dollar	203,641		172,802
- Other currencies	2,620		1,727
	6,228,302		6,591,913
TRADE AND BILLS PAYABLES
	As at		As at
	30 June 2016		31 December 2015
	(Unaudited	)	(Audited)
	RMB’000		RMB’000
Trade payables	9,687,076		10,263,687
Bills payable	5,060,560		4,826,818
	14,747,636		15,090,505
Portion classified as non-current liabilities (i)	(801,878	)	(815,887 )
Current portion	13,945,758		14,274,618

TRADE AND BILLS PAYABLES

(i) The non-current portion of trade payables mainly represents retention amounts held by the Group as at 30 June 2016 and 31 December 2015.

Trade and bills payables are non-interest-bearing and are normally settled in 180 days. For the retention money payables in respect of warranties granted by the suppliers, the due dates usually range from one to three years after the completion of the preliminary acceptance of goods.

An aged analysis of the trade and bills payables, based on the invoice date, as at the reporting date is as follows:

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited)	(Audited)
	RMB’000	RMB’000
Within 3 months	9,726,180	10,371,358
3 to 6 months	2,409,252	2,983,146
6 months to 1 year	1,279,624	471,717
1 to 2 years	632,670	709,267
2 to 3 years	318,146	206,391
Over 3 years	381,764	348,626
	14,747,636	15,090,505

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

TRADE AND BILLS PAYABLES (continued)

The amounts due to the Group’s associates included in the trade and bills payables are as follows:

		As at	As at
	30	June 2016	31 December 2015
		(Unaudited )	(Audited )
		RMB’000	RMB’000
Associates		1,478,688	2,019,579

The above amounts are repayable on credit terms similar to those offered by the Group’s related parties to their major customers.

OTHER PAYABLES, ADVANCES FROM CUSTOMERS AND ACCRUALS

	As at		As at
	30 June 2016		31 December 2015
	(Unaudited	)	(Audited	)
	RMB’000		RMB’000
Advances from customers	3,031,262		1,889,394
Accrued salaries, wages and benefits	444,012		606,536
Other taxes payable	77,964		265,836
Dividend payable	1,317,535		-
Others	659,674		556,259
	5,530,447		3,318,025
Portion classified as non-current liabilities (i)	( 125,503	)	(97,493	)
Current portion	5,404,944		3,220,532

(i) The non-current portion of other payables mainly represents guarantee amounts held by the Group as at 30 June 2016 and 31 December 2015.

The amounts due to the Group’s joint ventures and associates included in other payables and accruals are as follows:

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited)	(Audited )
	RMB’000	RMB’000
Joint ventures	2,592	2,592
Associates	264,213	70
	266,805	2,662

The above balances are unsecured, non-interest-bearing and have no fixed terms of settlement.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

INTEREST-BEARING BANK LOANS AND OTHER BORROWINGS

As at 30 June 2016(Unaudited) Effective Interest rate (%) Maturity RMB’000 Current Short-term bank loans: - Unsecured 2.65-3.70 2016 1,220,000 - Secured 4.75 2017 198,000 Current portion of long-term bank loans: - Unsecured Six-month LIBOR+3.5-4.90 2016-2017 16,489 - Secured 2.29-6.00 2016-2017515,783 1,950,272 Non-current Long-term bank loans: - Unsecured Six-month LIBOR+3.5-4.90 2017-2026 191,248 - Secured 2.29-6.00 2017-2035 11,764,197 Corporate bond (i): - Unsecured 2.50-4.98 20182,426,354 14,381,799 16,332,071 Interest-bearing bank loans and other borrowings denominated in: - RMB 13,594,311 - Euro 69,402 - United States dollar 2,668,358 16,332,071	As at 31 December 2015(Audited)	As at 31 December 2015(Audited)
	Effective Interest rate (%) Maturity 2.65-2.90 2016 4.55 2016 Six-month LIBOR+3.5 2016 2.29-6.15 2016 Six-month LIBOR+3.5 2017-2021 2.29-6.15 2017-2031 2.50-4.98 2018	RMB’000 1,300,718 18,756 10,390 404,239 1,734,103 6,494 8,382,077 2,372,053 10,760,624 12,494,727 9,705,880 170,496 2,618,351
		12,494,727

(i) In May 2015, the Company received an approval from National Association of Financial Market Institutional Investors ( 中國銀行間交易商協會 ) to issue medium-term notes registration up to RMB2.3 billion. In June 2015, the Company issued the first portion of medium-term notes in an aggregate amount of RMB500 million, which is repayable in June 2018 and its applicable interest rate is 4.98% per annum. The issue price for each of the medium-term notes is RMB100.

In July 2015, Goldwind New Energy (HK) Investment Limited, a subsidiary of the Company, issued an overseas corporate bond in an aggregate principal amount of US$300 million, which is repayable in July 2018 and its applicable interest rate is 2.50% per annum. The issue price for each of the overseas corporate bond is US$100. Subsequent to the completion of the issue of the corporate bond, the corporate bond was listed on the Hong Kong Stock Exchange.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

21. INTEREST-BEARING BANK LOANS AND OTHER BORROWINGS (continued)

The maturity profile of the interest-bearing bank loans and other borrowings as at 30 June 2016 and 31 December 2015 is as follows:

	As at	As at
	30 June 2016	31 December 2015
	(Unaudited )	(Audited )
	RMB’000	RMB’000
Analysed into:
Bank loans repayable:
Within one year	1,950,272	1,734,103
In the second year	1,077,577	896,883
In the third to fifth years, inclusive	3,036,714	2,285,510
Above five years	7,841,154	5,206,178
	13,905,717	10,122,674
Corporate bond repayable:
In the second year	496,690	-
In the third year	1,929,664	2,372,053
	2,426,354	2,372,053
	16,332,071	12,494,727

22. OTHER EQUITY INSTRUMENT

In May 2016, the Company received an approval from National Association of Financial Market Institutional Investors ( 中國銀行間交易商協會 ) to issue long-term option-embedded medium-term notes registration up to RMB3 billion, which shall be effective for two years commencing from the date of the approval. In May 2016, the Company issued the first portion of medium-term notes (the “Perpetual Medium-term Notes”) in an aggregate amount of RMB1 billion at the initial distribution rate of 5%. The proceeds from issuance of the Perpetual Medium-term Notes after the issuance costs is RMB996,547,000. The issue price for each of the Perpetual Medium-term Notes is RMB100.

Pursuant to the terms of the Perpetual Medium-term Notes, the Company has no contractual obligation to repay their principal or to pay any coupon distribution. The Perpetual Medium-term Notes are classified as equity and subsequent distribution declared will be treated as distribution to equity owners.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

23. BUSINESS COMBINATIONS

In January, February and March 2016, the Group acquired 75%, 95% and 90% equity interests in Jinan Ruifeng New Energy Co., Ltd., Xianyang Golden Lotus Water Service Co., Ltd. and Fuzhou Environmental Science & Technology Co., Ltd. from independent parties, respectively, at cash considerations of RMB15,000,000, RMB47,310,000 and RMB44,375,000 respectively.

The fair values of the identifiable assets and liabilities of these companies as at the date of acquisition were as follows:

		Fair value recognised on acquisition
		(Unaudited)
	Notes	RMB’000
Financial receivables		190,907
Trade and bills receivables		3,336
Other intangible assets		49,296
Prepayments, deposits and other receivables		7,631
Cash and cash equivalents		4,229
Trade and bills payables		( 15,314)
Other payables and accruals		( 70,248)
Interest-bearing bank loans		( 52,240)
Deferred tax liabilities	12	(17,110)
Total identifiable net assets at fair value		100,487
Non-controlling interests		(7,708)
Goodwill on acquisition		14,250
Gain on bargain purchase recognised in
other income and gains in profit or loss	5	( 344)
Total consideration		106,685
Satisfied by cash		106,685

An analysis of the cash flows in respect of the acquisition of subsidiaries above is as follows:

	(Unaudited)
	RMB’000
Cash consideration	(106,685)
Cash consideration payable at end of the period	46,560
Cash and cash equivalents paid	( 60,125)
Cash and cash equivalents acquired	4,229
Net outflow of cash and cash equivalents
included in cash flows from investing activities	( 55,896)

Since the acquisition, the newly acquired subsidiaries contributed RMB4,530,000 to the Group’s revenue and profit of RMB1,448,000 to the consolidated profit or loss for the six months ended 30 June 2016.

Had the acquisitions taken place at the beginning of the period, the revenue of the Group and the profit after tax of the Group for the six months ended 30 June 2016 would have been RMB10,843,902,000 and RMB1,507,461,000, respectively.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

24. DISPOSAL OF SUBSIDIARIES

In February 2016, the Group disposed of its 50% equity interests in Tongzi Tiantong Wind Power Co., Ltd.(“Tongzi Tiantong”) to an independent third party by capital injection of RMB4,000,000 from the independent third party. Therefore, the Group lost the control of Tongzi Tiantong due to the amendment to the articles of association of this entity and Tongzi Tiantong is being accounted for as an associate of the Group.

In May 2016, the Group disposed of its 75% equity interests in White Rock Wind Farm Pty Ltd. (“White Rock”) to an independent third party by the capital injection of AUD33,944,000(approximately RMB161,802,000) from the independent third party. Therefore, the Group lost the control of White Rock due to the amendment to the articles of association of this entity and White Rock is being accounted for as an associate of the Group.

The net assets/liabilities of the subsidiaries disposed of during the six months ended 30 June 2016 were as follows:

		30 June 2016
		(Unaudited	)
	Note	RMB’000
Property, plant and equipment	10	164,505
Prepaid land lease payments		7,573
Prepayments, deposits and other receivables		5,353
Cash and cash equivalents		166,042
Deferred tax assets	12	23
Trade and bills payables		(147,572	)
Other payables and accruals		(77,636	)
Net assets		118,288
Goodwill		53,394
Fair value of net assets not disposed of and remained
as investments in associates		( 57,407	)
Gain on disposal of subsidiaries	4	51,527
Total consideration		165,802
Satisfied by cash		165,802

An analysis of the net outflow of cash and cash equivalents in respect of the disposal of subsidiaries is as follows:

	(Unaudited	)
	RMB’000
Cash consideration	165,802
Cash and cash equivalents disposed of	(166,042	)
Net outflow of cash and cash equivalents in respect of the
disposals of subsidiaries	(240	)

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

25. CONTINGENT LIABILITIES

As at 30 June 2016 and 31 December 2015, contingent liabilities not provided for in the interim condensed consolidated financial statements were as follows:

	As at 30 June	As at 31 December
	2016	2015
	(Unaudited )	(Audited )
	RMB’000	RMB’000
Letters of credit issued	148,659	216,725
Letters of guarantee issued	9,248,463	9,122,866
Guarantees given to a bank in connection with a bank loan
granted to:
A joint venture	-	162,000
A third party	314,913	305,094
Compensation arrangement in connection
with the bank loans of the Group’s customers (i)	512,334	518,860
	10,224,369	10,325,545

The directors are of the view that the fair value of the guarantees is not significant and therefore no provision for financial guarantees was made.

(i) Pursuant to the agreement entered into between the Company with a bank (the “Bank”), a risk compensation arrangement in connection with the loans of the Group’s overseas customers, i.e., the wind farm project companies, was made as follows: (1) the Company deposited with the Bank provisions in cash as a risk compensation fund at 10% of the loan borrowings provided by the Bank to the wind farm project companies. If the wind farm project companies fail to make due payments to the Bank, the Bank is entitled to deduct the amounts from the provisions made by the Company at the designated account. If the wind farm project companies subsequently repaid the amounts due, the Bank will transfer the amounts to the Company’s risk compensation fund account; (2) if the wind farm project companies fail to make due payments to the Bank in two consecutive interest periods, the Company shall repay all the outstanding borrowings to the Bank on behalf of the wind farm project companies, then the Bank will transfer its receivables due from the wind farm project companies to the Company.

Up to 30 June 2016, the above risk compensation arrangements covered for bank loans of two overseas wind farm project companies totalled RMB512,334,000.

The bank loans of these overseas wind farm project companies were secured by mortgages over their property, plant and equipment and by the pledge of the electricity charge rights, and/or its shareholders’ equity interests in them.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

26. OPERATING LEASE ARRANGEMENTS

(a) As lessor

The Group leases its investment properties and certain equipment under operating lease arrangements, with leases negotiated for terms ranging from one to two years. As at 30 June 2016 and 31 December 2015, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows:

	As at 30 June	As at 31 December
	2016	2015
	(Unaudited )	(Audited)
	RMB’000	RMB’000
Within one year	3,687	2,307
In the second to fifth years, inclusive	164	821
	3,851	3,128

(b) As lessee

As at 30 June 2016 and 31 December 2015, the Group had the following total future minimum lease payments under non-cancellable operating leases in respect of land and buildings:

	As at 30 June	As at 31 December
	2016	2015
	(Unaudited )	(Audited )
	RMB’000	RMB’000
Within one year	20,526	17,907
In the second to fifth years, inclusive	13,303	19,248
Beyond five years	446	750
	34,275	37,905

27. COMMITMENTS

In addition to the operating lease commitments detailed in note 26(b) above, the Group had the following capital commitments as at 30 June 2016 and 31 December 2015:

	As at 30 June	As at 31 December
	2016	2015
	(Unaudited )	(Audited )
	RMB’000	RMB’000
Contracted, but not provided for
Property, plant and equipment and land use rights	2,899,592	2,049,792

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

28. RELATED PARTY TRANSACTIONS

(a) The Group had the following significant transactions with related parties during the period:

Continuing transactions Associates: Sales of wind turbine generators and spare parts Purchases of spare parts Purchases of processing services Provision of services Joint ventures: Sales of wind turbine generators and spare parts Provision of technical services	For the six months ended 30 June 2016 2015 (Unaudited) (Unaudited ) RMB’000 RMB’000 1,819 550 1,012,577 1,717,741 76,326 28,979 44,276 2,028 1,134,998 1,749,298 574 1,904 1,887 5,595 2,461 7,499

In the opinion of the directors, the transactions between the Group and the related parties were based on prices mutually agreed between the parties.

In the opinion of the directors, the above related party transactions were conducted in the ordinary course of business.

(b) Commitments with related parties

The amount of total transactions with related parties for the period is included in note 28(a) to the interim condensed consolidated financial statements. The Group expects total transactions with related parties as follows:

	The second half of 2016
	(Unaudited)
	RMB’000
Continuing transactions
Associates:
Purchases of spare parts	2,342,279

Details of the outstanding balances with related parties are set out in notes 13, 15, 19 and 20 to these interim condensed consolidated financial statements.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

28. RELATED PARTY TRANSACTIONS (continued)

(d) Compensation of key management personnel of the Group

	For the six months ended 30 June	For the six months ended 30 June
	2016	2015
	(Unaudited)	(Unaudited)
	RMB’000	RMB’000
Short term employee benefits	6,126	6,368
Pension scheme contributions	256	209
	6,382	6,577

29. FINANCIAL INSTRUMENTS BY CATEGORY

The carrying amounts of each of the categories of financial instruments as at the end of the reporting period are as follows:

As
Financial assets
Financial assets at fair value through profit or loss:
Held-for-trading financial assets:
Derivative financial instruments
Loans and receivables:
Trade and bills receivables
Financial receivables
Financial assets included in prepayments, deposits
and other receivables
Pledged deposits
Cash and cash equivalents
Available-for-sale financial assets:
Available-for-sale investments
Financial liabilities
Financial liabilities at amortised cost:
Trade and bills payables
Financial liabilities included in other payables,
advance from customers and accruals
Interest-bearing bank loans and other borrowing

at 30 June
As at 31 December
2016
2015
(Unaudited)
(Audited )
RMB’000
RMB’000
3,351
4,121

19,357,161
16,288,494
2,524,174
2,012,173
882,982
545,031
641,215
444,535
5,587,087
6,147,378

28,992,619
25,437,611

1,373,658
901,121

30,369,628
26,342,853

14,747,636
15,090,505
1,977,209
556,260
16,332,071
12,494,727

33,056,916
28,141,492

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

30. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

The carrying amounts and fair values of the financial instruments, other than those with carrying amounts that reasonably approximate to fair values, are as follows:

Financial assets
Pledged deposits
Available-for-sale investments
Derivative financial instruments
Trade and bills receivables,
non-current portion
Financial receivables,
non-current portion
Financial assets included in
prepayments, deposits and other
receivables, non-current portion
Financial liabilities
Interest-bearing bank and
other borrowings
Trade and bills payables,
non-current portion
Financial liabilities included in other
payables, advances from customers
and accruals, non-current portion

Carrying mounts
Fair values
As at
30 June
As at
31 December
As at
30 June
As at
31 December
2016
2015
2016
2015
(Unaudited)
(Audited)
(Unaudited)
(Audited)
RMB’000
RMB’000
RMB’000
RMB’000
276,924
285,542
276,924
285,542
501,792
322,825
501,792
322,825
3,351
4,121
3,351
4,121
1,628,829
1,762,112
1,737,453
1,885,298
2,284,040
1,867,047
2,284,040
1,867,047
131,620
131,620
131,620
131,620
4,826,556
4,373,267
4,935,180
4,496,453
14,381,799
10,760,624
14,444,163
10,834,033
801,878
815,887
820,636
894,000
125,503
97,493
124,678
96,230
15,309,180
11,674,004
15,389,477
11,824,263

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

30. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued)

Management has assessed that the fair values of cash and cash equivalents, the current portion of pledged deposits, the current portion of trade and bills receivables, the current portion of financial receivables, the current portion of trade and bills payables, financial assets included in prepayments, deposits and other receivables, financial liabilities included in other payables, advances from customers and accruals, the current portion of interest-bearing bank loans and other borrowing approximate to their carrying amounts largely due to the short term maturities of these instruments.

The Group’s corporate finance team headed by the finance manager is responsible for determining the policies and procedures for the fair value measurement of financial instruments. The corporate finance team reports directly to the chief financial officer and the audit committee. At each reporting date, the corporate finance team analyses the movements in the values of financial instruments and determines the major inputs applied in the valuation. The valuation is reviewed and approved by the chief financial officer. The valuation process and results are discussed with the audit committee twice a year for interim and annual financial reporting.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

The fair values of the non-current portion of pledged deposits, trade and bills receivables, financial receivables, trade and bills payables, financial assets included in prepayments, deposits and other receivables, and interest-bearing bank loans and other borrowing have been calculated by discounting the expected future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities. The Group’s own non-performance risk for the non-current portion of interest-bearing bank loans and other borrowing as at 30 June 2016 was assessed to be insignificant.

The fair values of listed equity investments are based on quoted market prices. The fair value of unlisted available-for-sale equity investments cannot be measured reliably because they do not have quoted market prices in an active market and the range of reasonable fair value estimate is so significant.

The Group enters into a derivative financial instrument with a financial institution. The derivative financial instrument is an interest rate swap. The interest rate swap is measured using valuation techniques similar to swap models, using present value calculations; the models incorporate various market observable inputs including the credit quality of counterparties and interest rate curves. The interest rate swap is the same as its fair value.

As at 30 June 2016, the marked to market value of the derivatives is net of credit/debit valuation adjustment attributable to derivative counterparty default risk.

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued)

Fair value hierarchy

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:

Assets measured at fair value:

As at 30 June 2016

Available-for-sale investment:
Listed equity investment
Derivative financial instrument:
Interest rate swap
As at 31 December 2015
Available-for-sale investment:
Listed equity investment
Derivative financial instrument:
Interest rate swap contract

Fair valuemeasurement using

Quoted prices
in active
markets
Significant
observable
inputs
Significant
unobservable
inputs
(Level 1)
(Level 2)
(Level 3)
Total
(Unaudited)
(Unaudited)
(Unaudited) (Unaudited)
RMB’000
RMB’000
RMB’000
RMB’000
501,792
-
-
501,792
-
3,351
-
3,351
501,792
3,351
-
505,143
Fair valuemeasurement using
Quoted prices
in active
markets
Significant
observable
inputs
Significant
unobservable
inputs
(Level 1)
(Level 2)
(Level 3)
Total
RMB’000
RMB’000
RMB’000
RMB’000
322,825
-
-
322,825
-
4,121
-
4,121
322,825
4,121
-
326,946

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued)

Fair value hierarchy (continued)

Assets measured at fair value: (continued)

During the six months ended 30 June 2016, there were no transfers of fair value measurement between Level 1 and Level 2 and no transfers into or out of Level 3.

Liabilities measured at fair value:

The Group did not have any financial liabilities measured at fair value as at 30 June 2016 and 31 December 2015.

Assets for which fair values are disclosed:

As at 30 June 2016

			Fair value measurement using	Fair value measurement using	Fair value measurement using
	Quoted prices		Significant	Significant
	in active		observable	unobservable
	markets		inputs		inputs
	(Level 1)		(Level 2)		(Level 3)	Total
	(Unaudited)		(Unaudited)	(Unaudited)		(Unaudited)
	RMB’000		RMB’000		RMB’000	RMB’000
Pledged deposits, non-current portion		-	276,924		-	276,924
Trade and bills receivables,
non-current portion		-	1,737,453		-	1,737,453
Financial receivables,
non-current portion		-	2,284,040		-	2,284,040
Financial assets included in
prepayments, deposits and other
receivables, non-current portion		-	131,620		-	131,620
		-	4,430,037		-	4,430,037
As at 31 December 2015

Fair valuemeasurement using Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 Pledged deposits, non-current portion - 285,542 - Trade and bills receivables, non-current portion - 1,885,298 - Financial receivables, non-current portion - 1,867,047 - Financial assets included in prepayments, deposits and other receivables, non-current portion - 131,620 - - 4,169,507 -	Fair valuemeasurement using	Total (Audited) RMB’000 285,542 1,885,298 1,867,047 131,620 4,169,507

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued)

Fair value hierarchy (continued)

Liabilities for which fair values are disclosed:

As at 30 June 2016

Fair valuemeasurement using Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 Interest-bearing bank loans and other borrowing - 14,444,163 - Trade and bills payables, non-current portion - 820,636 - Financial liabilities included in other payables, advances from customers and accruals, non-current portion - 124,678 - - 15,389,477 - As at 31 December 2015 Fair valuemeasurement using Quoted prices in active markets Significant observable inputs Significant unobservable inputs (Level 1) (Level 2) (Level 3) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 Interest-bearing bank loans and other borrowing - 10,834,033 - Trade and bills payables, non-current portion - 894,000 - Financial liabilities included in other payables, advances from customers and accruals, non-current portion - 96,230 - - 11,824,263 -	Fair valuemeasurement using	Fair valuemeasurement using
			Total (Unaudited) RMB’000 14,444,163 820,636 124,678 15,389,477
		Significant observable inputs Significant unobservable inputs (Level 2) (Level 3) (Audited) (Audited) RMB’000 RMB’000 10,834,033 - 894,000 - 96,230 - 11,824,263 -	Total (Audited) RMB’000 10,834,033 894,000 96,230 11,824,263

31. EVENTS AFTER THE REPORTING PERIOD

As at the date of this report, there was no any significant subsequent event since 30 June 2016.

32. APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The interim condensed consolidated financial statements were approved and authorised for issue by the board of directors on 26 August 2016.

Management Discussion and Analysis

During the first half of 2016 the global economic situation was turbulent: different regional geopolitical risks were on the upswing, global economic recovery was lacking in strength, and developed economies’ growth rates were slowing. The Eurozone continued to have moderate economic recovery, with “Brexit” and other issues adding to European economic uncertainty. The effect of Japanese economic policy weakened, as its economic growth momentum slowed down further. The economic rebound from emerging economies overall was insufficient, as the risk of economic downfall still exists. According to a report from the International Monetary Fund, the global economic growth projected for 2016 declined from the original forecast at the beginning of 2016 of 3.6% to 3.1%.

During the Reporting Period, in the face of a complicated domestic and international situation and downwards economic pressure, the Government of China appropriately expanded aggregate demand while at the same time accelerated supply side structural reform.. Overall, the smoothing effect has been steady. According to the National Bureau of Statistics, in the first half of 2016 China's GDP growth rate was 6.7%.

According to “The Analysis and Forecast Report on the Situation of Electricity Supply and Demand in China in the First Half of 2016” (《2016年上半年全國電力供需形勢分析預測報告》), published by the China Electricity Council, there was fast growth in connected wind power installation and wind power generation. Nationwide, newly installed wind power capacity reached 56.99GW, representing an increase of 31.4% YoY. Newly added non-fossil fuel energy totaled 30.24GW, also representing an increase of 31.4% YoY. Nationally, wind power generation of electrical power plants of 6MW and above grew 24.4%, and the utilization of wind power attained 917 hours, decreased by 85 hours YoY. Electrical consumption increased during the first half of 2016, and the national electricity consumption reached 2.78 trillion kWh (representing an increase of 2.7% YoY), with the growth rate increased by 1.4 percentage point YoY.

I. MAIN POLICY REVIEW

In the first half of 2016, the wind power industry maintained steady development as the proportion of wind power usage among national electricity usage continued to improve. During the first half of this year, the NDRC and NEA, in order to consolidate a basis for industry development and promote a shift towards wind energy from other energy sources, issued a number of policies to ensure wind power priority to the grid and introduced policies to enhance the proportion of wind power utilized. China’s wind power plan within the Thirteenth Five-Year Plan is scheduled to be published in the second half of 2016.

1. Introducing a Minimum Utilization Hours Policy

On 24 March 2016, the NDRC issued the “Management Measures for the Full Purchase of Renewable Energy” (《可再生能源發電全額保障性收購管理辦法》) which proposed to set a quota for annual minimum power utilization hours in wind curtailment regions. For any wind power output above the minimum hours, wind farm operators are encouraged to trade that power in the market. If renewable energy does not reach the minimum utilization hour due to thermal power’s excessive utilization, such thermal power companies shall compensate renewable energy companies for the unutilized part of the minimum utilization hour. The policy ensures that wind power projects in wind curtailment regions can earn a feasible and reasonable economic return.

On 5 May 2016, the NDRC published the “Notice Related to Full Purchase of Wind and Solar Power” (《關於做好風電、光伏發電全額保障性收購管理工作的通知》). According to the previously issued “Management Measures for the Full Purchase of Renewable Energy”( 《可再生能源發電全額保障性收購管理辦法》), the document set the minimum utilization hour of wind power, which varied from 1,800 to 2,000 hours in various local provinces of the Three-North region. The minimum utilization hour is the lowest purchasing goal. Higher objectives are encouraged to be set and carried out in various relevant provinces (including regional and municipal districts).

2. Setting up a Renewables Portfolio Standard

On 29 February 2016, the NEA published the “Guidelines for Establishment of the Institution of Development and Utilization of Renewable Energy” (《關於建立可再生能源開發利用目標引導制度的指導意見》). This document formulates that non-hydro renewable electricity for every province (including regional and municipal districts) should account for 9% of the electricity consumption by 2020. Non-hydro renewable electricity generation, except from those specialized non-fossil fuel production enterprises, should reach 9% of total energy generation by 2020. The NEA also established its first official renewable electricity green certificates trading scheme, providing flexibility for enterprises trying to complete the requirements for this 9% objective.

On 22 April 2016 the NEA published the “Notice and Suggestion Regarding the Relevant Requirements of Institution of Portfolio Standard between Coal Burning Thermal Power Units and Non-hydro Renewable Energy” (《國家能源局綜合司關於徵求建立燃煤火電機組非水可再生能源發電配額考核制度有關要求通知意見的函》). This document requires the establishment of a mechanism for coal burning enterprises to undertake the non-hydro renewable energy generation portfolio. Furthermore, the proportion of non-hydro renewable energy of thermal power from coal burning enterprises is expected to reach at least 15% by 2020. Coal burning enterprises can meet the aforementioned target by purchasing renewable electricity green certificates or through the construction of their own projects.

3. Strengthening Adjustment and Control and Optimizing Industrial Layout

On 11 March 2016, the NEA published a “Notice Related to Works for Wind Power Consumption in 2016” (《關於做好2016年度風電消納工作有關要求的通知》). The document lays down strict control of the pace of construction of all types of energy generation projects in wind curtailment regions to avoid the worsening of the current situation. In 2015, the areas with the most serious wind curtailment (or areas with relatively quick wind curtailment growth rates) included: Inner Mongolia, Jilin, Heilongjiang, Gansu, Ningxia, and Xinjiang. For the time being, there is no plan to increase capacity for ordinary wind farm projects in 2016.

On 17 March 2016, the NEA published a “Notice Related to National Wind Power Development and Construction Plan in 2016” (《關於下達 2016 年全國電開發建設方案的通知》). According to the publication, the newly approved capacity for China was 30.83 GW, which every region must ratify before the end of 2016. China has still been vigorously promoting the wind power industry in areas without curtailment problems, while strictly controlling the development pace in wind curtailment regions. The document also clearly states that large-scale wind power base projects in different regions are not limited by the aforementioned annual approved capacity, and authorizes orderly advancement and construction work to these projects.

On 18 July 2016, the NEA published a “Notice Related to the Establishment of a Wind Power Construction Monitoring and Warning Mechanism” (《國家能源局關於建立監測預警機制促進風電產業持續健康發展的通知》). This document established a wind power investment early warning

mechanism to guide regional investment towards wind power development. A red warning causes the relevant regions in that year to postpone all newly approved wind power projects, and suspends authorization for electrical network companies to handle connection procedures. An orange warning, in principle, generally results in the relevant regions not being able to authorize newly approved capacity. A green warning means normal and allows the regions to continue reasonable development, investment and construction.

The NEA hopes to, through effective government supervision and conduct, 1) guide companies away from wasted investments towards reasonable investment; and 2) promote a reasonable wind power project construction plan and increase wind power company investment efficiency.

4. Ways to Explore Market Transactions

On 13 July 2016, the NDRC and NEA published a “Notice on the Plan of Orderly Liberalization of Power Generation and Utilization (Draft for Comments)” (《關於有序放開發用電計畫工作的通知（徵求意見稿）》) which encouraged those that surpass the minimum utilization hour to participate in the renewable electricity green certificates trading scheme. This act will lower the marginal cost of renewable energy through market competition and promote renewable energy sources.

On 27 July 2016, the NEA approved the issuance of the “Provisional Rules of Direct Power Sales (DPS) Under Beijing-Tianjin-Tangshan Power Grid (《京津唐電網電力使用者與發電企業直接交易暫行規則》). This document requires the Beijing-Tianjin-Tangshan Power Grid to install capacity to account for 20% of national electricity consumption by the end of 2016.

II. INDUSTRY REVIEW

1. Stable Industry Development

The wind power industry has had good development during the first half of 2016; there have been vigorous bids in the marketplace, a positive outlook on construction, all while wind power’s proportion of produced and consumed total energy is on the rise. According to data from the NEA, newly installed domestic generating capacity was 7.74 GW, reaching 137 GW in total, accounting for 9.0% of domestic generating equipment capacity, representing an increase of 1.1% YoY. China generated 120 billion kWh of wind power during the first half of 2016, representing an increase of 23% YoY. Wind power generation accounted for 4.3% of national electricity consumption in the first half of 2016, representing an increase of 0.6 percentage point.

2.Wind Curtailment in the “Three-North Region”

The situation for wind power consumption in the first half of 2016 was quite good; the average wind power utilization in Yunnan and Sichuan was 1,441 hours and 1,377 hours respectively. The average wind power use in Hebei, Jiangsu, Liaoning, Shanxi, and Inner Mongolia surpassed nationwide averages. However, wind curtailment in local regions worsened yet again, acting as a bottleneck stifling local industry’s development. In the first half of this year, China’s average wind power utilization was 917 hours, decreasing 85 hours YoY.

For the first half of 2016, 32.3 billion kWh of wind power was curtailed, and the average wind power curtailment rate was 21%, increasing 6 percentage points YoY. Wind curtailment was centralized in certain provinces (including regional and municipal districts) in the Northwest and Northeast regions, amongst which was: Xinjiang (45% wind curtailment rate), Gansu (47%) and Jilin (39%). The average wind power use for these regions was 578 hours, 590 hours, and 677 hours, respectively.

This represented a decrease of 317 hours, 109 hours, and 83 hours YoY, respectively. Wind curtailment in the “Three Norths” represented over 90% of nationwide wind curtailment.

3.Accelerating Industrialization of Technological Innovation

Technological innovation is the driving force for development in the wind power industry. Following the wind power market’s center moving from Southern China towards Middle Eastern China, there has been an acceleration of the industrialization of low-wind speed WTGs. Presently, the R&D and manufacturing of low-wind speed WTGs and extreme low-wind speed WTGs have become the focus both domestically and internationally of wind-power enterprises. High capacity and large rotor diameter models have been receiving more and more bids on the marketplace. There has also been considerable innovation in high tower technology and complete large-scale repairs. Transportation technology has also started to be actively promoted on the market.

Besides innovation in overall design and plans for installation and large-scale repairs, there has been great exploration into the fields of wind farm maintenance and operation, as well as big data technology. Establishing a digital platform promotes the wind power production industry; a higher basis of technology in operations increases energy usage efficiency and allows wind power to move forwards on its path of safety and reliability.

III. BUSINESS REVIEW

In order to solidify its foundation, Goldwind undertook a transformation through innovation to help guide its thinking towards value-added work in 2016. Goldwind focused on quality as their driving force to further upgrade the quality of their product portfolio. Goldwind is presently moving from the simple manufacturing industry to the value-added merchandise industry. In order to move its foundation towards a value-added wind power industry, Goldwind has been actively searching through its supply chain and promoting an endless innovation in technology, merchandise, and services. It has also been actively promoting lean and value-added management styles from many different aspects to aid in adding value to both the customer and the Company. During the Reporting Period, all aspects of the Company have had smooth progress; there has been continual growth in accomplishments.

During the Reporting Period, revenue for the Group was RMB10,839.59 million, representing an increase of 15.61% compared with RMB9,375.66 million for the corresponding period in 2015. Profit before tax for the Group was RMB1,705.91 million, representing an increase of 20.09% compared with RMB1,420.53 million for the corresponding period in 2015. Profit during the Reporting Period for the Group was RMB1,506.53 million, representing an increase of 19.17% compared with RMB1,264.16 million for the corresponding period in 2015. Net profit attributable to owners of the Company was RMB1,450.12 million, representing an increase of 16.43% compared with RMB1,245.46 million for the corresponding period in 2015.

i. Wind Turbine Generator R&D, Manufacturing and Sales

1. Product Manufacturing and Sales

For the six months ended 30 June 2016, the Group’s revenue from sales of WTGs and components was RMB9,134.94 million, an increase of 14.07% YoY. Total sales capacity was 2,373 MW, an increase of 13.27% YoY. The following table sets out the details of products sold by the Group in the first half of 2016 and 2015:

Six months ended 30 June

	2016			2015
				Capacity
		Capacity		Sold	Change in
	Units Sold	Sold (MW)	UnitsSold	(MW)	Capacity Sold
3.0MW	9	27.00	-	-	-
2.5MW	174	435.00	176	440.00	-1.14%
2.0MW	396	792.00	55	110.00	620.00%
1.5MW	746	1,119.00	1,023	1,534.50	-27.08%
750kW	-	-	14	10.50	-
Total	1,325	2,373.00	1,268	2,095.00	13.27%

As at 30 June 2016, the Group’s backlog of orders under contract totaled 7,666.50MW, including 7.50MW of 750 kW WTGs, 3,271.50 MW of 1.5MW WTGs, 2,436.00MW of 2.0MW WTGs, 1,882.50MW of 2.5MW WTGs and 69.00MW of 3.0MW WTGs. There were 4,657.00MW of additional orders awaiting contract. The Group had 12,323.50MW of combined backlog orders.

During the Reporting Period, the newly installed capacity of the Group totaled 2,468MW, representing an increase of 18.50% YoY, compared to 2,082MW in the corresponding period of 2015.

During the Reporting Period, the Group continued to promote lean and value-added management, remove inefficiencies, and make great effort towards bringing about an optimal total cost. During the Reporting Period, gross profit margin of 1.5MW WTGs increased to 27.69% from 25.27% in the corresponding period of 2015. There was greater efficiency in the scale of 2.0MW WTGs as it entered into mass production, with the gross profit margin increasing to 24.21% from 22.67% in the corresponding period of 2015. The gross profit margin of 2.5MW WTGs increased to 27.75% from 25.86% in the corresponding period of 2015.

2. Technology R&D and Product Certification

In 2016, the Group continued to increase investment in R&D to satisfy market and customer demands; it optimized existing products, continually enriched the quality and reliability of the product portfolio, as well as research into new products. There has also been progress in optimizing the supply chain. The product portfolio is regularly approved and the R&D department has received many accolades.

(1)Product Research and Development

During the Reporting Period, on the basis of the operating performance from thousands of 2.5MW WTGs as well as an established mature technological platform, Goldwind has developed high temperature and high altitude models for the 2.5MW WTG series, as well as the 2.5 MWVP (Value Plus) WTGs. The Group has installed 150MW of GW109/121-2500 high altitude WTGs. In the meanwhile, the Company has also developed and realized mass production of the tower of 2.0MW WTG series.

In the first half of this year, Goldwind finished installation of its first batch of offshore 3.0MW WTGs. The project will help the Group’s industrialization of offshore WTGs and increase relevant engineering experience in offshore WTGs. Our prototype for an offshore 6.0MW WTG operated normally. In order to satisfy the future offshore WTG market demands, Goldwind has already begun a large amount of product testing. The aforementioned offshore projects became a strong and efficient basis to optimize the offshore WTGs of the Group.

In the first half of 2016, Goldwind’s products were granted a number of domestic and international certification, such as three design certificates and two type certificates from China General Certification Center in Beijing , one design certificate from TÜV NORD, as well as two design certificates from DNV-GL.

In 2016, Goldwind continuously increased investment towards R&D and kept in step with leading-edge wind farm control systems. Goldwind developed and implemented a comprehensive systemic solution for wind farms and wind farm groups. In order to continue to add value to the industry and customers, Goldwind has tailored high-qualified and high-efficient wind farm assets.

In order to optimize Goldwind’s supply chain, as well as to reach optimal manufacturing cost goals, the Group has made breakthrough progress with respect to tower designs. The Group developed hybrid tower technology and soft tower technology. Goldwind has already installed its first project of 34 sets of 121/2500 WTGs with soft towers in Thailand.

(2) Intellectual property protection and standardization

In addition to emphasizing R&D and innovative capabilities in construction, Goldwind has also taken an active role in standardization and protecting intellectual property rights.

In the first half of 2016, the Group added 198 domestically authorized patents, mainly involved in DDPM technology, micro-grid technology, new tower technology and offshore WTGs. The Group emphasized technological innovation while simultaneously expanding trademarks in foreign markets. Goldwind currently holds 62 registered domestic trademarks and 80 foreign trademarks (across 32 different countries and areas). In order to adapt to the complex relationship between business and the internet, Goldwind has continued to innovate and accumulate its experience in computer software and control algorithms. At the end of the Reporting Period, Goldwind had 218 copyrights for software registered in its name.

As a leading enterprise in the wind-power industry, Goldwind has actively participated in wind power policy making at the national level. By 30 June 2016, Goldwind had participated in the formulation of 122 standards, including: three international standards, 57 national standards, and 62 industrial and regional standards. Goldwind had already issued 57 standards, amongst which there were 30 national standards and 27 industrial and regional standards.

During the Reporting Period, the Group frequently received distinction for its scientific research. The Group’s “Manufacturing and Application Demonstration Project based on Big Data and Internet-of-things” was chosen by China Ministry of Science and Technology’s major R&D projects – Cloud Computing and Big Data Specialized Project. Goldwind’s “Internet Service Technology Laboratory of Smart Wind Power Design and Operation Project” received special support of Certificate and Innovation Capability Building Project from Beijing Engineering Lab. Our new “Pre-stress Hybrid WTG Tower” won Bronze Award at the Tenth Beijing Invention and Innovation Prize.

(3) Quality Management

Goldwind has fostered a sense of independence by pursuing excellent quality as the guiding concept of its corporate culture. This culture of quality has already permeated all levels of the supply chain from R&D, to manufacturing, to engineering construction, all the way up to cloud computing services and other segments. With respect to supplier quality management, and building a theme of excellent supply chain quality management, the Group has used the benchmark model and many styles towards crucial aspects to advance their quality benchmark’s position forward. Goldwind has extended its experience of increasing the level of its product quality management to similar supply chains, acting as a model for others.

During the Reporting Period, Goldwind was selected as a “Demonstration Unit for Quality Culture Construction” by the China Association for Quality.

ii. Wind Power Services

During the Reporting Period, in order to improve Goldwind’s wind power service and the customer’s experience, the Group developed a digital operation and maintenance system as a smart energy efficient solution. The digital operation and maintenance system is based on a reliable system and service personnel. It combines wind power digital operation and maintenance platform and Internet-of-things to establish smart large scale wind farm operation and maintenance service system. The system will create more economic value and decrease operation costs for enterprises and customers. The smart energy efficiency solution centralizes micro-grid, smart energy supervision and control platform and load-side system. It also combines smart energy supervision and control system, developed by Goldwind independently, which helps reach optimal usage rates and digitize energy management practices. Digitization also helps with more clear data visualizations.

During the Reporting Period, the Group’s revenue from Wind Power Services was RMB445.49 million.

China Ministry of Industry and Information Technology announced that our “Wind Power Equipment Far-end Service Demonstration Project” succeeded in being selected in the 2016 Smart Manufacturing Pilot Demonstration Project List. This is the very first time a wind power project was chosen as the national smart manufacturing demonstration project.

iii. Wind Farm Investment and Development

Revenue from wind farm investments business has grown significantly despite wind curtailment. During the Reporting Period, the Group’s revenue from power generation was RMB1,138.64million, representing an increase of 36.58% YoY.

During the Reporting Period, Goldwind reported that its newly attributable approved capacity was 217.5 MW, domestic newly installed generating capacity was 418.80MW and newly installed attributable generating capacity was 376.95MW. As at 30 June 2016, cumulative installed wind farm capacity was 3,463.20 MW, of which 2,902.38MW was attributable installed capacity. The installed capacity of projects still under construction was 1,327 MW, of which 1,265.14 MW was attributable installed capacity. The Group’s international installed capacity was 246 MW, of which 121.7 MW was attributable installed capacity.

During the first half of 2016, the Group won the 2016 China Power Quality Engineering Award after finishing the Xia County Phase I 49.5MW wind farm in Shanxin, the Naomao Lake 99MW wind farm in Yiwu, and the Shishou Taohua Mountain 49.5 MW wind farm in Hubei.

iv. International Business

During the Reporting Period, in order to continue Goldwind’s strategy of internationalization and take advantage of China’s New Silk Road strategy, the Group expanded to international markets and acquired relatively good achievements.

During the Reporting Period, Goldwind installed 517 WTGs abroad, with a total capacity of 983.75MW.

During the Reporting Period, Goldwind transferred its 75% equity share in Australia’s White Rock wind farm to CECEP Wind-power Corporation Co., Ltd., Australia Branch Company. The White Rock farm’s total capacity was 175 MW, of which Goldwind installed 70 GW121/2.5MW WTGs. Goldwind will also supply EPC, quality insurance and operation and maintenance service. White Rock wind farm, once completed, will be the largest wind farm in New South Wales State of Australia.

As at the date of the announcement, Goldwind USA Inc., as a wholly-owned subsidiary of the Group, has reached an agreement with Renewable Energy Systems America Inc. to acquire its Rattlesnake wind farm in Texas, of which the capacity is 160MW. The wind farm will install 64 GW109/2.5MW WTGs and will be Goldwind’s largest wind farm in the North America upon completed construction.

v. Major Subsidiaries

As at 30 June 2016, the Company had 158 subsidiaries, among which 21 were directly owned subsidiaries and 137 were indirectly owned subsidiaries. In addition, we had 8 joint ventures, 17 associate companies and 16 available-for-sale unlisted equity investments. These subsidiaries included WTG R&D and manufacturing companies, wind power investment companies, wind power services companies, and component R&D and manufacturing companies. The following table sets out major financial information of the principal subsidiaries of the Company (reported in accordance with CASBE :

					As at	30 June 2016
						Unit: RMB
		Registered				Net Profits
		Capital		Net Assets		Attributable
	Company	(RMB ten		Attributable	Revenue from	to the
No.	Name	thousand)	Total Assets	to the Company	Operations	Company
1	Beijing Goldwind
	Science & Creation
	Wind Power
	Equipment Co., Ltd.	99,000.00	5,898,967,895.87	1,072,825,377.22	1,508,051,564.46	-56,639,599.03
2	Vensys Energy AG	€5 million	1,068,456,068.10	581,142,311.03	274,460,501.97	12,667,298.32
3	Jiangsu Goldwind
	Technology Co., Ltd.	75,961.00	2,513,194,436.69	1,254,624,544.66	694,527,961.04	78,046,330.53
4	Beijing Techwin
	Electric Co., Ltd.	10,000.00	2,079,661,925.41	1,161,421,323.38	1,567,746,354.26	238,748,336.49
5	Beijing Tianrun New
	Energy Investment
	Co., Ltd.	555,000.00	25,249,255,317.29	6,910,063,778.74	1,035,095,259.31	319,653,932.20
6	Goldwind Investment
	Holding Co., Ltd.	100,000.00	1,443,240,536.38	1,387,567,442.66	-	143,871,384.17
7	Beijing Tianyuan
	Science & Creation
	Wind Power
	Technology Co., Ltd.	20,000.00	2,562,268,907.98	234,024,346.18	700,566,251.84	13,967,905.02
8	Tianxin International	USD30 million
	Finance Lease Co.,		2,207,745,287.99	383,300,826.28	101,514,945.85	60,442,394.06

9 Goldwind Environmental Science & Technology Co., Ltd. 100,000.00 1,471,436,862.85 1,000,020,289.15 22,305,284.43

10,882,802.64

Ltd.

vi. Use of Proceeds

1. Use of H Share Proceeds

The Company conducted the initial public offering of its H shares and listed its H shares on the main board of the Hong Kong Stock Exchange in October 2010. According to the Capital Verification Report issued by Ernst & Young Hua Ming LLP, the net proceeds of the H shares offering were the equivalent of RMB6.754 billion in HKD. According to the proposed use of the H shares offering proceeds, approximately 64.8% of the proceeds shall be used in the domestic market, and approximately 35.2% shall be used in the international market. As at 30 June 2016, the accumulated used proceeds were the equivalent of RMB6.15 billion in HKD, and the unused proceeds were the equivalent of RMB0.604 billion in HKD. The use of the Company’s H share proceeds is as follows:

As at 30 June 2016 Unit: RMB million

	Planned	Actual	Unused
Proceeds Projects	Investment	Investment	Amount
Construction of production base and
optimisation of business operations	2,715	2,607	108
R&D of WTGs and components	986	491	495
International business	1,972	1,971	1
Bank loan repayment	411	411	-
General workingcapital	670	670	-
Total	6,754	6,150	604

2. Use of A Share Proceeds

The Company has issued 40,953,000 of New A Shares as part of non-public subscription offering, which were listed on the SZSE on 18 August 2015. According to the Capital Verification Report issued by Ernst & Young Hua Ming, LLP, the total proceeds of the New A Shares offering were RMB346,871,910. As at 30 June 2016, all proceeds have been used for supplement of working capital of the Company.

As at 30 June 2016, the deposit interest income less bank service fee was RMB147,555.29, which has all been used for supplement of working capital of the Company. As at 30 June 2016, the balance of the bank account of the proceeds was RMB0.00.

III. OPERATIONS PERFORMANCE AND ANALYSIS

The contents of this section should be read in conjunction with the Financial Statements, including the relevant notes, set out in this announcement.

Summary

During the six months ended 30 June 2016, revenue for the Group was RMB10,839.59 million, representing an increase of 15.61% compared with RMB9,375.66 million for corresponding period in 2015. Net profit attributable to owners of the Company was RMB1,450.12 million, representing an increase of 16.43% compared with RMB1,245.46 million for the corresponding period in 2015. The Company reported basic earnings per share of RMB0.53.

Revenue

The Group’s revenue was generated mainly from (i) WTG Manufacturing, (ii) Wind Power Services, (iii) Wind Farm Investment and Development and (iv) Others. Revenue from WTG Manufacturing includes the sales of WTGs and components. Revenue from Wind Power Services was mainly generated through services such as wind farm EPC, transportation and maintenance. Revenue from Wind Farm Investment and Development was mainly generated from the sale of power produced by our operating wind farms. Other business segments include revenue from the Group’s finance lease activities and water treatment.

During the six months ended 30 June 2016, revenue for the Group was RMB10,839.59 million, representing an increase of 15.61% compared with RMB9,375.66 million for the corresponding period in 2015. Details are set out below:

Unit: RMB thousand

Six months ended 30 June Amount Change Percentage Change 2016 2015	Six months ended 30 June Amount Change Percentage Change 2016 2015
WTG Manufacturing 9,134,944 8,008,317 Wind Power Services 445,494 451,991 Wind Farm Investment and Development 1,138,642 833,676 Others 120,508 81,674	1,126,627 14.07% -6,497 -1.44% 304,966 36.58% 38,834 47.55% 1,463,930 15.61%
- Total 10,839,588 9,375,658

Revenue increased due to: (i) steady development of China’s wind power industry in the first half of 2016, and increasing sales volume due to continual superior recognition against competitors for our WTGs; and (ii) significant increase in the number of operating wind farms, which led to increased sales of power produced by the Group’s operating wind farms.

Cost of Sales

Unit: RMB thousand

	Six months ended 30 June Amount Change Percentage Change 2016 2015
WTG Manufacturing Wind Power Services Wind Farm Investment and Development Others	6,747,268 5,977,125 770,143 12.88% 357,319 402,201 -44,882 -11.16% 402,901 286,310 116,591 40.72% 11,258 5,113 6,145 120.18%
Total	7,518,746 6,670,749 847,997 12.71%

The Group’s cost of sales increased mainly due to increased revenue during the Reporting Period.

Gross Profit

Unit: RMB thousand

	Six months ended 30 June	Six months ended 30 June	Amount	Percentage
	2016	2015	Change	Change
WTG Manufacturing	2,387,676	2,031,192	356,484	17.55%
Wind Power Services	88,175	49,790	38,385	77.09%
Wind Farm Investment and Development	735,741	547,366	188,375	34.41%
Others	109,250	76,561	32,689	42.70%
Total	3,320,842	2,704,909	615,933	22.77%

The Group’s gross profit increased mainly due to an increase in WTG sales volumes under the WTG Manufacturing business segment and an increase in wind power sales due to an increase in wind farms capacity operated under the Wind Farm Investment and Development business segment.

For the six months ended 30 June 2016 and 2015, our comprehensive gross profit margin was 30.64% and 28.85%, respectively, and the gross profit margin for WTG Manufacturing business segment was 26.14% and 25.36%, respectively.

The following table sets out the gross profit margins for the Group’s WTGs by unit capacity including the 750kW, 1.5MW series, 2.0MW series, 2.5MW series and 3. 0MW series (prepared in accordance with CASBE):

	Six months ended 30 June	Six months ended 30 June	Change
			(percentage
Gross Profit Margin	2016	2015	points)
3.0MW	33.15%	-	-
2.5MW	27.75%	25.86%	1.89
2.0MW	24.21%	22.67%	1.54
1.5MW	27.69%	25.27%	2.42
750kW	-	29.65%	-

During the Reporting Period, the Group continued to promote lean and value-added management, remove inefficiencies, and make great effort towards bringing about an optimal total cost. During the Reporting Period, gross profit margin of 1.5MW WTGs increased to 27.69% from 25.27% in the corresponding period of 2015. There was greater efficiency in the scale of 2.0MW WTGs as it entered into mass production, increasing the gross profit margin to 24.21% from 22.67% in the corresponding period of 2015. The gross profit margin of 2.5MW WTGs increased to 27.75% from 25.86% in the corresponding period of 2015.

Other Income and Gains

The Group’s other income and gains primarily consist of gains from the sale of wind farms from Wind Farm Investment (including gains resulting from the sale of wind power equipment installed in these wind farms), bank interest income, insurance compensation on product warranty expenditures, gross rental income, gains from changes in fair value of equity investments at fair value through profit or loss and government grants received for our R&D projects and upgrades of our production facilities.

Other income and gains of the Group for the six months ended 30 June 2016 was RMB 384.88 million, which is essentially flat compared the corresponding period in 2015.

Selling and Distribution Costs

The Group’s selling and distribution costs primarily consist of product warranty provisions, transportation costs, insurance expenses, bidding service fees, labour costs, loading and unloading fees, and travel expenses.

Selling and distribution costs of the Group for the six months ended 30 June 2016 was RMB831.84 million, representing a 10.20% increase compared to RMB754.86 million for the corresponding period in 2015. This was mainly attributed to an increase in the sales of WTGS which led to increased product warranty provisions.

Administrative Expenses

The Group’s administrative expenses primarily consist of R&D expenses, staff costs, taxes, depreciation, consultation fees, travel expenses, and other expenses.

Administrative expenses of the Group for the six months ended 30 June 2016 was RMB787.26 million, representing a 34.15% increase compared to RMB586.85 million for the corresponding period in 2015. This was mainly attributed to higher employee costs associated with an expanded business scope and R&D input for consolidating the Group’s dominant position and enhancing its core competitiveness.

Other Expenses

The Group’s other expenses primarily consist of banking administration fees, foreign exchange losses, and impairment provisions accrued in connection with our trade receivables.

Other expenses of the Group for the six months ended 30 June 2016 was RMB160.48 million, representing a 32.67% increase compared to RMB120.96 million for the corresponding period in 2015. This was mainly attributed to the increased provision for asset impairment and exchange rate losses of overdue receivables.

Finance Costs

Finance costs of the Group for the six months ended 30 June 2016 was RMB305.38 million, representing a 2.58% increase compared to RMB297.70 million for the corresponding period in 2015. This was mainly attributed to the increase in completed wind farms which led to interest payments for associated project bank loans re-categorised as interest expense rather than capital expenditure.

Income Tax Expenses

Income tax expenses of the Group for the six months ended 30 June 2016 was RMB199.39 million, representing a 27.51% increase compared to RMB156.37 million for the corresponding period in 2015. This was mainly attributed to increased pre-tax profit due to increased sales volume.

Financial Position

As at 30 June 2016 and 31 December 2015, total assets of the Group were RMB59,453.98 million and RMB52,572.40 million, respectively, current assets of the Group were RMB29,817.52 million and RMB25,286.64 million, respectively, percentages of current assets to total assets of the Group were 50.15% and 48.10%, respectively. The Group’s current assets increased mainly due to the increased trade and bill receivables, accounts payable and prepayments, deposits and other receivables resulting from increased volume of business. The Group’s current assets increased also mainly due to the increased inventories to satisfy the delivery demands in the second half of 2016, which is offset by decreased cash and cash equivalent resulting from increased wind farm investment.

As at 30 June 2016 and 31 December 2015, total non-current assets of the Group were RMB29,636.46 million and RMB27,285.76 million. The Group’s non-current assets increased mainly due to the increased property, plant and equipment resulting from the increased operating and under-construction wind farms, and the increased available-for-sale equity investment. The Group’s non-current assets increased mainly due to increased long-term receivables resulting from increased receivables for finance lease services.

As at 30 June 2016 and 31 December 2015, total liabilities of the Group were RMB40,778.88 million and RMB35,181.80million, respectively, current liabilities of the Group were RMB22,837.08 million and RMB20,958.89 million, respectively. The Group’s current liabilities increased mainly due to the unpaid dividend payables of 2015 final dividend declared and increased advance to suppliers resulting from the increased volume of business.

As at 30 June 2016 and 31 December 2015, total non-current liabilities of the Group were RMB17,941.80 million and RMB14,222.91 million, respectively. The Group’s non-current liabilities increased mainly due to the increased interest-bearing bank loans and other borrowings resulting from the increased operating and under-construction wind farms.

As at 30 June 2016 and 31 December 2015, net current assets of the Group were RMB6,980.44 million and RMB4,327.75 million, respectively, and net assets of the Group were RMB18,675.10 million and RMB17,390.60 million, respectively.

As at 30 June 2016 and 31 December 2015, cash and cash equivalents of the Group were RMB5,587.09 million and RMB6,147.38 million, respectively, and total interest-bearing bank loans and other borrowings of the Group were RMB16,332.07 million and RMB12,494.73 million, respectively.

Financial Resources and Liquidity

Unit: RMB thousand

Cash Flow Statements	Six months ended 30 June 2016 2015 (2,101,223) 208,456 (3,003,649) (2,810,068) 4,407,961 (1,967,148) (696,911) (4,568,760)

Net cash flows from/(used in) operating activities Net cash flows used in investment activities Net cash flows from/(used in)financingactivities
Net decrease in cash and cash equivalents

Cash and cash equivalents at beginning of Reporting Period	6,141,430	9,523,826
Net effect of foreign exchange rate changes	11,777	(10,048)
Cash and cash equivalents at end of ReportingPeriod	5,456,296	4,945,018

1. Net cash flows from / (used in) operating activities

Net cash flows of the Group used in operating activities primarily represent profit before tax adjusted for non-cash items, movements in working capital, and other income and gains.

For the six months ended 30 June 2016, the Group reported net cash flows used in operating activities of RMB 2,101.22 million. Cash inflows were principally comprised of profit before tax of RMB 1,705.91 million and a RMB 554.66 million increase in other payables and accruals and a RMB 461.91 million increase in trade and bills payables .These sources of cash were offset by a RMB 3,235.25 million increase in trade and bills receivables, a RMB 873.85 million increase in inventories (in preparation of anticipated deliveries scheduled during the second half of 2016) and a RMB 425.23 million increase in prepayment, deposit and other receivables.

For the six months ended 30 June 2015, the Group reported net cash flows from operating activities of RMB 208.46 million. Cash inflows were principally comprised of profit before tax of RMB 1,420.53 million and a RMB 2,464.24 million increase in trade and bills payables and a RMB 489.27 million increase in other payables and accruals. These sources of cash were offset by a RMB 2,791.72 million increase in trade and bills receivables and a RMB 1,302.29 million increase in inventories (in preparation of anticipated deliveries scheduled during the second half of 2015).

2. Net cash flow used in investment activities

The Group’s net cash flows used in investing activities primarily consist of the purchases of items of property, plant and equipment, the acquisition of subsidiaries, pledged deposits, non-pledged time deposits with original maturity of three months or more when acquired, and the purchases of available-for-sale equity investments.

For the six months ended 30 June 2016, the Group reported net cash flows used in investment activities of RMB3,003.65 million, principally due to purchases of property, plant and equipment and additions of other intangible assets in the amount of RMB 2,540.78 million and the purchases of available-for-sale investments in the amount of RMB659.35 million. Such cash flows used in investment activities was offset by the profit from the disposal of shareholding in available-for-sale investment in the amount of RMB234.72 million and dividend from joint ventures and associated companies and available-for-sale equity investments in the amount of RMB94.27 million.

For the six months ended 30 June 2015, the Group reported net cash flows used in investment activities of RMB2,810.07 million, principally due to purchases of property, plant and equipment and additions of other intangible assets in the amount of RMB2,746.97 million and purchases of equity in joint ventures in the amount RMB72.41 million. Such cash flows used in investment activities were offset by the profit from the sale of subsidiaries in the amount of RMB52.03 million and the receipts of dividends from associated companies and joint ventures in the amount of RMB85.30 million.

3. Net cash flows from / (used in) financing activities

The Group’s net cash flows used in financing activities primarily consist of repayment of corporate bonds, bank loans and interests. The Group’s net cash flows from financing activities primarily consist of new bank loans.

For the six months ended 30 June 2016, the Group reported net cash flows from financing activities of RMB4,407.96 million. Cash inflows were principally contributed by new bank loans and other borrowings of RMB4,025.15 million and issuance of perpetual medium-term notes of RMB996.55 million. These cash inflows were offset by repayment of bank loans and other borrowings of RMB297.63 million and payment of interest expenses of RMB320.83 million.

For the six months ended 30 June 2015, the Group reported net cash flows used in financing activities of RMB1,967.15 million. Cash outflows were principally contributed by repayment of bank loans and other borrowings of RMB4,391.59 million and payment of interest expenses of RMB499.80 million. These cash outflows were offset by RMB3,938.71million new bank loans and other borrowings.

Capital Expenditure

Capital expenditures of the Group for the six months ended 30 June 2016 were RMB2,318.60 million, representing a decrease of 19.51% from RMB2,880.50 million for the six months ended 30 June 2015. The Group’s primary financing resources for capital expenditure included bank loans and cash flows from operations of the Group.

Bank Loans and Other Borrowings

As at 30 June 2016, the total amount of outstanding bank loans, corporate bond and other borrowings of the Group was RMB16,332.07 million, including amounts due within one year of RMB1,950.27 million, in the second year of RMB1,077.58 million, in the third to fifth year of RMB3,036.71 million, and above five years of RMB7,841.15 million. In addition, as at 30 June 2016, the Group had issued a corporate bond repayable within two years with a book value of RMB496.69 million and within three years with a book value of RMB1,929.67 million. Details are set out in Note 21 to the Financial Statements. During the Reporting Period, the Group does not have any interest rate hedging.

Restricted Assets

As at 30 June 2016, the following assets of the Group with a total carrying value of RMB13,614.52 million were restricted as security for certain bank loans and other banking facilities. Such assets included bank deposits of RMB641.21 million, trade and bills receivables of RMB2,237.60 million, property, plant and equipment of RMB10,509.56 million, account receivable franchise of RMB106.94 million and prepaid land lease payments of RMB119.21 million.

As at 31 December 2015, the following assets of the Group with a total carrying value of RMB11,237.39 million were restricted as security for certain bank loans and other banking facilities. Such assets included bank deposits of RMB444.54 million, trade and bills receivables of RMB1,548.67 million, property, plant and equipment of RMB9,161.56 million, and prepaid land lease payments of RMB82.62 million.

Gearing Ratio

As at 30 June 2016 and 31 December 2015, the Group’s gearing ratios, defined as net liabilities divided by total capital, were 60.11% and 56.57%, respectively.

Exposure to Fluctuations in Exchange Rates and any Related Hedges

The Group primarily operates its businesses in China. Over 80% of the Group’s revenue, expenditure, financial assets and liabilities are denominated in RMB. The exchange rate of the RMB against foreign currencies does not have a significant impact on the Group’s businesses. During the Reporting Period, the Group has not made use of hedging to manage its foreign exchange risk.

Contingent Liabilities

The Group’s contingent liabilities primarily consist of issued letters of credit, letters of guarantee, guarantees provided to third parties, and compensation arrangements.

As at 30 June 2016 and 31 December 2015, contingent liabilities of the Group were RMB10,224.37 million and RMB10,325.55 million, respectively. Details are set out in Note 25 to the Financial Statements.

IV. OUTLOOK FOR THE SECOND HALF OF 2016

In response to the acceleration of global climate change, there is currently a structural adjustment of energy sources. Developing green, renewable energy has already become different countries’ response to climate change and the solution to sourcing clean energy. The Chinese government’s support and policies have accelerated the reform process of energy sources. Continually increasing energy efficiency as well as increasing renewable energy sources have become the guiding philosophy for the future of China’s economic development.

The “Thirteenth Five-Year Plan” continues to stress the importance of developing a strong renewable energy sector. It puts forth the idea of energy revolution, the basis of which is sourcing 15% of total energy consumption from non-fossil fuel energy sources by 2020 and increasing energy efficiency. Except for specialized non-fossil fuel energy production enterprises, non-hydro renewable produced energy should constitute at least 9% of all electricity production from power enterprises.

Wind power is the most mature and scaled non-hydro renewable energy source in China. It has already been widely introduced to the market and is currently attaining economies of scale; it is the centerpiece of China’s structural reform towards non-hydro renewable energy. During the “Thirteenth Five-Year Plan”, the wind-power market will welcome new opportunities. According to relevant policies and publications, by 2020 the wind-power industry will achieve the target of 200 million kW and will strive to reach 250 million kW, accounting for 12.5% of total installations.

Following the continual deepening of China’s structural reform for energy sourcing, and acceleration of the pace of electric power reform, reform has become clearer. The NEA has continued reform in Shenzhen, Yunnan, Guizhou and other areas of prioritized reform by creating an electrical power trading market. Beijing, Tianjin and Hebei also have a pilot program for an integrated electrical power trading market. Supportive policies have directly fostered the growth of these market trading schemes. In 2016, the rate of energy directly traded on these markets from local industry reached 30%. Progressive and practical electric energy reform policies in China have promoted clean energy consumption and improved natural resource efficiency.

With a background of active national promotion of green industry development, Goldwind has been taking full advantage of the opportunities presented to it. Through increased innovation, an expanding marketplace, transforming models and other measures, Goldwind has strengthened its WTG manufacturing advantage. In order to continue its healthy development, Goldwind continues to innovate through micro-grid capabilities and other renewable energy fields.

Corporate Competitive Advantages

i. Market Position

Goldwind is one of the oldest WTG manufacturers in China. After more than ten years of

development, we have gradually matured into a leading domestic manufacturer and global comprehensive wind power solutions provider. Our 1.5MW, 2.0MW, 2.5MW, 3.0MW and 6.0MW DDPM WTG models, for which we own the intellectual property rights, represent the most promising technology in the global wind power industry. Goldwind ranks first in China’s wind power manufacturing industry in five consecutive years and became the largest DDPM manufacturer in the world in 2015. We have sustained our market leadership for many years.

ii.

Products and Technology

Goldwind’s DDPM WTGs are known for their superior performance that includes high efficiency, low operations and maintenance costs, grid-friendly features, and high availability. Our products are widely recognised by our customers and are a guiding force for the development of global wind power technology. We have several R&D centres domestically and globally and over thousand seasoned R&D personnel with extensive industry experience, contributing to the advancement of our products and technology. We have developed a diversified product portfolio, including specialised WTGs for different geological and climatic conditions to satisfy the diverse demands of our customers. We are preparing our 6.0MW DDPM WTG model for the nascent offshore market. The development and marketing of these products have secured our market coverage. We currently have a substantial backlog of orders, providing enhanced revenue visibility and demonstrating that the market recognizes the superior quality of our products and services.

iii. Brand Awareness

After several years of brand development, Goldwind has successfully established our brand and continued to improve awareness of our products’ advanced technology, superior quality, high efficiency, and excellent after-sales services. We have gained substantial recognition from the government, our customers, business partners, and investors.

iv. Comprehensive Wind Power Solutions

Goldwind continued to consolidate its position as a leading comprehensive wind power solutions provider through our advanced technology, products, and our extensive experience in wind farm development, operations, and maintenance. In addition to our sales of WTGs, we continued to expand alternative sources of profit such as wind farm development and wind power services. Over the past few years, these businesses have become highly profitable and an important complement to our core business. We successfully overcame the challenges posed by the market, strengthened our overall competitiveness, and improved our diversified competitive advantages.

v.

Internationalisation

Goldwind is one of China’s first wind power manufacturers to expand overseas and we have continued to pursue our internationalisation strategy. Through our principle of “internationalisation through localisation”, we achieved several breakthroughs in key target markets that include the Americas, Australia and Europe, and we continued to make progress in other emerging markets such as Africa and Asia. Our overseas projects are distributed across six continents. Our superior WTGs have been recognised by our customers at home and abroad and have laid a solid foundation for our future business development.

V. ESTIMATED OPERATING RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016

ESTIMATED OPERATING RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016	ESTIMATED OPERATING RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016	ESTIMATED OPERATING RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016	ESTIMATED OPERATING RESULTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016
Unit: RMB million
Range of percentage change in net profits
attributable to owners of the Company for	0%	to	50%
the nine months ending30 September 2016
Range of net profits attributable to owners
of the Company for the nine months ending	2,107.91	to	3,161.86
30 September 2016
Net profits attributable to owners of the
Company for the nine months ended 30	2,107.91
September 2015
	Mainly due to the stable increasing revenue of the Group
Reasons for increase/decrease	and improving profitability as a result of the lean and value
	management.

COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE

Pursuant to the Articles and the relevant laws, regulations and rules of the PRC, following the expiry of the term of office of the fifth session of the Board on 25 June 2016 and upon the Directors ceasing to be in office after election of the sixth session of the Board by the Shareholders at the 2015 AGM, the term of office of members of the various committees established under the Board (including the audit committee, the remuneration and assessment committee and the nomination committee) expired on 28 June 2016. The Board appointed members to each of the Board committees at the Board meeting held on 5 July 2016. Accordingly, during the short interval between the 2015 AGM and the said Board meeting, the Company failed to comply with the relevant requirements regarding its audit committee and remuneration committee under Rule 3.21 and Rule 3.25, respectively, of the Listing Rules and failed to comply with the relevant requirements regarding its nomination committee under Code Provision A.5.1 of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules. Following the appointment of the chairman and members of the Board committees on 5 July 2016, the Company fully complies with Rule 3.21 and Rule 3.25 of the Listing Rules and Code Provision A.5.1 of the Corporate Governance Code.

Save as disclosed above, during the Reporting Period, the Company has complied with all applicable code provisions under the Corporate Governance Code as set out in Appendix 14 to the Listing Rules.

PURCHASE, SALE AND REDEMPTION OF SECURITIES

Pursuant to an approval by the National Association of Financial Market Institutional Investors, the Company issued the first tranche of the medium-term notes in 2016 on 25 May 2016, with a total principal amount of RMB 1 billion at an interest rate of 5% per annum. The notes have a term of five + N years. For details, please refer to the announcements of the Company dated 9 May 2016 and 27 May 2016.

Other than as disclosed above, during the six months ended 30 June 2016, neither the Company nor any of its subsidiaries purchased, sold or redeemed any securities of the Company.

INTERIM DIVIDENDS

The Board has decided not to recommend payment of interim dividends for the six months ended 30 June 2016.

REVIEW OF INTERIM RESULTS

As at 30 June 2016, the audit committee of the Company (the “ Audit Committee ”) consisted of two independent non-executive directors of the Company, namely Mr. Luo Zhenbang (“M r. Luo ”) and Mr. Christopher F. Lee, and one non-executive director of the Company, namely Mr. Zhao Guoqing. The chairman of the Audit Committee was Mr. Luo. The Audit Committee and the Company’s auditor, Ernst & Young, have reviewed the unaudited interim results of the Group for the six months ended 30 June 2016.

Definitions

In this announcement, the following expressions have the following meanings unless the context requires otherwise:

“2015 AGM”	annual general meeting of the Company for the year of 2015 held on 28
	June 2016;
“A Shares”	ordinary shares issued by the Company, with RMB denominated par
	value of RMB1.00 each, which are listed on the SZSE and traded in
	RMB;
“Articles”	the_Articles of Association_of the Company, as amended, modified or
	otherwise supplemented from time to time;
“attributable capacity”	represents the capacity attributed to the Group calculated by multiplying
	the Group’s percentage ownership in a power project by the total
	capacity of such power project;
“availability rate”	a percentage calculated by dividing the amount of time a WTG is not
	experiencing technical defaults over a certain period by the amount of
	time in such period;
“Beijing Tianrun”	Beijing Tianrun New Energy Investment Co., Ltd. (北京天潤新能投資有限
	公司), a company incorporated under the laws of the PRC on 11 April 2007
	and a wholly owned subsidiary of the Company;
“Beijing Tianyuan”	Beijing Tianyuan Science & Creation Wind Power Technology Co., Ltd. (北
	京天源科創風電技術有限責任公司), a company incorporated under the
	laws of the PRC on 29 September 2005 and a wholly owned subsidiary of the
	Company;
“Board”	the board of directors of the Company;
“CASBE”	China Accounting Standards for Business Enterprises;
“Chairman”	the chairman of the Board;
“chief executive”	has the meaning as ascribed in the Listing Rules;
“China” or “PRC”	the People’s Republic of China. References in this announcement to the
	PRC exclude Hong Kong, the Macau Special Administrative Region of
	the PRC and Taiwan;
“Company”	Xinjiang Goldwind Science & Technology Co., Ltd. (新疆金風科技
	股份有限公司), a joint stock limited liability company incorporated in
	the PRC on 26 March 2001;
“Corporate Governance Code”	Corporate Governance Code_and_Corporate Governance Report, as set
	out in Appendix 14 of the Listing Rules;
“DDPM”	direct-drive permanent magnet, a technology that combines a) a drive-train
	concept in which the need for a gearbox is eliminated and the turbine rotor
	directly drives the generator rotor; and b) a synchronous generator in which
	permanent magnet is used on the generator;
“Directors”	the directors of the Company;

“EPC”	Engineering, Procurement and Construction, a construction
	arrangement where a company that is contracted to construct the project
	will be responsible for the design, procurement and construction of such
	project, and will deliver such project to the owner after completion of
	the project construction and passing of the final acceptance inspection;
“Financial Statements”	the unaudited consolidated financial statements of the Group for the six
	months ended 30 June 2016, prepared in accordance with IFRSs
“Group”, “Goldwind”, “us” or “we”	the Company and its subsidiaries;
“GW”	gigawatt, a unit of power, 1GW equals 1,000MW;
“H Shares”	ordinary shares issued by the Company, with RMB denominated par
	value of RMB1.00 each, which are listed on the Stock Exchange and
	traded in HKD;
“HKD”	Hong Kong dollars, the lawful currency of Hong Kong;
“Hong Kong”	the Hong Kong Special Administrative Region of the PRC;
“Hong Kong Stock Exchange”	The Stock Exchange of Hong Kong Limited;
“IFRSs”	International Financial Reporting Standards;
“kW”	kilowatt, a unit of power, 1kW equals 1,000 watts;
“kWh”	kilowatt hour, the unit of measurement for calculating the quantity of
	power production output. 1kWh is the work completed by a kilowatt
	generator running continuously for one hour at the rated output
	capacity;
“Listing Rules”	the_Rules Governing the Listing of Securities on The StockExchange of_
	Hong Kong Limited;
“MW”	megawatt, a unit of power, 1MW equals 1,000kW;
“NEA”	National Energy Administration of the PRC (中國國家能源局);
“NDRC”	National Development and Reform Commission of the PRC (中國國家
	發展和改革委員會);
“President”	the president of the Company;
“R&D”	research and development;
“RMB”	Renminbi, the lawful currency of the PRC;
“Senior Management”	the members of the senior management of the Company;
“Shareholders”	shareholders of the Company;
“State Council”	the State Council of the PRC (中國國務院);
“subsidiary”	has the meaning as ascribed in the Listing Rules;
“SZSE”	Shenzhen Stock Exchange;
“Three-North region”	China’s Three-North region, which includes northeast, northwest and
	northern China;
“Wind Farm Investment and	the Group’s Wind Farm Investment and Development business segment,
	one of the three primary business segments of the Group;

Development” “Wind Power Services” the Group’s Wind Power Services business segment, one of the three primary business segments of the Group; “WTG” wind turbine generator; “WTG Manufacturing” the Group’s WTG R&D, Manufacturing and Sales business segment, the core business of the Group and one of the three primary business segments of the Group; “Xinjiang” the Xinjiang Uyghur Autonomous Region of the PRC; “YoY” year-over-year, a method of evaluating two or more measured events to compare the results at one time period with those from another time period on an annualised basis; and “%” percent, in this announcement, calculations of percentage shall be based on the financial data contained in the Financial Statements including the relevant notes (where applicable).

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

Beijing, 26 August 2016

As of the date of this announcement, the executive directors of the Company are Mr. Wu Gang, Mr. Wang Haibo and Mr. Cao Zhigang; the non-executive directors are Mr. Yu Shengjun, Mr. Zhao Guoqing and Mr. Feng Wei; and the independent non-executive directors are Mr. Yang Xiaosheng, Mr. Luo Zhenbang and Mr. Christopher F. Lee.

AI assistant

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

50446_rns_2016-08-26_2c0b2625-95d8-402b-8dd5-720959e7dc8f.pdf

ANNOUNCEMENT INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

Compared to the financial results for the six months ended 30 June 2015:

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2016

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) 30 June 2016

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2016

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2016

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued) For the six months ended 30 June 2016

2.1 Basis of preparation

IFRS 14 Regulatory Deferral Accounts

Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations

Amendments to IAS 16 and IAS 41 Agriculture: Bearer Plants

Annual Improvements 2012-2014 Cycle

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

IFRS 7 Financial Instruments: Disclosures

IAS 19 Employee Benefits

IAS 34 Interim Financial Reporting

Amendments to IAS 1 Disclosure Initiative

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

3. OPERATING SEGMENT INFORMATION (continued)

For the six months ended 30 June 2016

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

3. OPERATING SEGMENT INFORMATION (continued)

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

3. OPERATING SEGMENT INFORMATION (continued)

Geographical information

(a) Revenue from external customers

3. OPERATING SEGMENT INFORMATION (continued)

Information about major customers

4. REVENUE, OTHER INCOME AND GAINS

5. PROFIT BEFORE TAX

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

5. PROFIT BEFORE TAX (continued)

6. FINANCE COSTS

7. INCOME TAX EXPENSE

7. INCOME TAX EXPENSE (continued)

8. DIVIDENDS

9. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

10. PROPERTY, PLANT AND EQUIPMENT

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

10. PROPERTY, PLANT AND EQUIPMENT (continued)

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD.

11. AVAILABLE-FOR-SALE INVESTMENTS

12. DEFERRED TAX

Deferred tax assets

12. DEFERRED TAX (continued)

Deferred tax assets

13. TRADE AND BILLS RECEIVABLES (continued)

14. FINANCIAL RECEIVABLES

15. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES

16. DERIVATIVE FINANCIAL INSTRUMENTS

18. CASH AND CASH EQUIVALENTS AND PLEDGED DEPOSITS (continued)

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD.

21. INTEREST-BEARING BANK LOANS AND OTHER BORROWINGS (continued)

22. OTHER EQUITY INSTRUMENT

23. BUSINESS COMBINATIONS

24. DISPOSAL OF SUBSIDIARIES

25. CONTINGENT LIABILITIES

26. OPERATING LEASE ARRANGEMENTS

(a) As lessor

(b) As lessee

27. COMMITMENTS

28. RELATED PARTY TRANSACTIONS

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

28. RELATED PARTY TRANSACTIONS (continued)

(d) Compensation of key management personnel of the Group

29. FINANCIAL INSTRUMENTS BY CATEGORY

XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2016

30. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

30. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued)

Fair value hierarchy

Assets measured at fair value:

Assets measured at fair value: (continued)

Liabilities measured at fair value:

Assets for which fair values are disclosed:

Liabilities for which fair values are disclosed:

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