Goldwind Science & Technology Co Ltd
XMUN:CXGH
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Good morning, ladies and gentlemen, and I'm very happy to meet all the investors and analysts, and I'd like to welcome you to join us for the Xinjiang Goldwind Science & Technology Company 2022 Q1 results meeting. Again, we're very happy to welcome the management team from the company to talk to our investors. And we have the Board Secretary and also the [indiscernible] of the company Madam Ma Jinru; and Mr. Wang, the CFO of the company. First of all, I'd like to welcome Madam Ma to walk us through the Q1 industrial review and the business review of the company.
And then later welcome Mr. Wang to walk us through the financials. And then we have a joint [indiscernible] arranged at the end of the meeting.
[Operator Instructions]
Ladies and gentlemen, I'd like to thank you for keeping an eye on Xinjiang Goldwind and also welcome you to join us for the 2022 Q1 results. Please go to the third page. On the third page shows the global wind power market, especially the annual new installation, and you can say that [indiscernible] especially the offshore installation actually reached [indiscernible] high numbers, and China accounted for 56% of the total new installations and actually, the China offshore installations already accounted for 48% of the development.
On Slide 4, it shows the development in Q1. And first of all, you can see that in 2022, it is actually a very important year for the grid [ capacity. ] So in Q1, you can see the newly installed grid was grown by 49% and already reached a very high number at the end of the Q1 and at the same time, and we have a very high number being installed and making sure that the -- at the end of Q1 2022, China's cumulative grid-connected wind power capacity totaled 336.5 gigawatts, taking 14% of the China power mix while thermal power was 54%.
On the right side, you can see electricity production and outperformed the [indiscernible] power production, utilization and construction or curtailment. And I can also say that in Q1 of 2022, power consumption was 2,042.3 billion kilowatt hours, an increase of 5%.
And let's also take a look at the public tender market situation and generally speaking the total 24.7 gigawatts in Q1, increasing by 74% Y-o-Y growth Onshore public tender totaled 19.3 gigawatts and offshore totaled 5.4 gigawatts. On the right side, it shows you the average bidding price in the public tender market. By the end of March, the overall average bidding prices for all WTG suppliers is around RMB 1,876 per kilowatt.
And also state policies projects [indiscernible] continuously promoting the energy transformation and also the National Unified Electricity Market System also be launched. And I also specifically would like to mention NDRC and NEA jointly launched [indiscernible] for modern energy system and [indiscernible] in developing the thermal power and build a live and major new energy developments and also making sure that the decentralized wind power projects in middle eastern China and offshore wind power projects in southeastern coastal area.
On the right side is shown the wind power planning in China, which can actually help to promote the decentralized wind power projects in middle eastern China and offshore wind power projects in southeastern coastal area. And specifically and promoting the rural wind power deployment plan and especially the onshore and [indiscernible] project development in the western part of China and making sure they are [indiscernible] provinces. And we believe the market growth will be accelerated during the 14th 5-year plan and now I'm going to be walk you through the business review.
On Slide 8, we show you sale capacity. And in Q1, actually, the sale capacity is around 1,411 megawatts, representing 29.7% Y-o-Y growth and especially [indiscernible] totaled 479 megawatts representing 17.6% Y-o-Y and 33% of the total sale capacity and the 3 and 4S [indiscernible] increased by 145.2% on YoY basis to 780 megawatts, taking 55.2% of the total sale capacity. And MSPM series totaled 152 megawatts taking 10.8% of the total sale capacity and representing 39.4% of growth.
And you can see, if we take a look at the order backlog. The company's total backlog is 16.97 gigawatts. External order backlog totaled 16.5 watts, including 2.9 gigawatts of successful bid. And if you take a look at the right side and especially on our external order of overseas [indiscernible] 2,734 megawatts and especially 3S series turbines booked at 8.45 gigawatts external order, representing 51.2% of the order mix. MSPM turbines accounted for 33% in external orders, it used to be 29% by the end of 2021 by the end of Q1. And external orders from overseas markets are actually accounting for 2,734 megawatts representing 37.7% of Y-o-Y growth, mainly in Vietnam, Chile, Australia, Brazil and so forth. And you can also see by the end of Q1, company's attributable grid-connected wind power projects totaled 5,888 megawatts, 29% in North China, 25% in East China, 25% in Northwestern region, 9% in south region and 8% in overseas.
Company added 51.3 megawatts of attributable, grid-connected wind power capacity at home and abroad. And by the end of Q1 and our attributable, under construction wind capacity at home and abroad is around 2,552 megawatts, and we see we're also performing pretty well for the self-run wind farms recorded 571 hours of utilization, 60 hours higher than the national average.
Now I would like to ask Mr. Wang to run you through the financials in Q1.
Dear investors, good afternoon. Please allow me to walk you through the financials of Q1. And if you take a look at the slide, you can see actually our GP margin is around 26.51% and the reason is in the quarter, we have less turbine orders from the offshore market and [indiscernible] and because of the shipping cost to be ever increasing, which are to [indiscernible] costing basis. Also in Q1, and you can see the wind resources [indiscernible] utilization hours [indiscernible]. So that's the reason. And actually, our GP margin decreased by around 3%. And we can also say that in Q1, actually, our total revenue is around CNY 6.383 billion and the reason was our turbine manufacturing segment also starting to see some decrease. And there are 2 reasons to [indiscernible] for such a rate [indiscernible] last year was one complete year for the offshore wind power business.
So that's the reason we don't see a very good [indiscernible] in Q1 of this year. And onshore turbine sales continue to grow, but the average price compared with the same period of last year, also the update of [indiscernible] increase. So that's the rate that you can see for turbine manufacturing. And even for its capacity is 1.4 gigawatts increased by 30% for the turbine south. And because we don't have enough wind resources in Q1, especially for the utilization. So that's the reason. In 2020, the south pricing decrease will now be also stabilized. Turbine manufacturing [indiscernible] performance is within our manageable sources.
And on the second slide shows you the profitability, especially the net profit attributable to the owners of the company and the weighted average return on equity. And the net profit attributable to the owners of the company totaled CNY 1.265 billion, increased by 15.27% Y-o-Y. And last year, Financial Ministry issued [indiscernible] for the continuous consistency and mentioned that the trial production cost and the revenue will be built into the total revenue of the company. That's the reason we say that actually, we have a revenue increase of 15.27%.
And then talking about weighted average return on equity was up by 0.14 percentage points. And the reason for the net profit growth is related to the weighted average return on equity increase.
But on this slide, you can clearly see that for net profit attributable to the owners of the company and the weighted average return on equity and in both Q1 2021 and in 2022, and will [indiscernible] rate being recorded by the financial indicators.
Let's also take a look at the operating cash flows. And so last year, our total revenue [indiscernible]. And well, in Q1, the net cash flow is actually stood at CNY 3.747 billion and the negative number and it also shows the focal seasonality of the company were in order to make sure that we can have a decent business with the client and [indiscernible] for some prepayments. So actually, the [indiscernible] cash flow and always see a negative number in Q1, and there will be some near [indiscernible] balance in Q2, but in Q3 and Q4, it's going to be increased a lot.
And you can see the company also started to improve the management efficiency to make sure that we have very good operating cash flows being achieved as the business goes up. And you can see actually, and our asset liability structure is always lower than 70%. Our rating is also AAA. The matter for the interest bearing liability noninterest bearing or our asset structure or comply with the management principles of the company. Our asset to liability ratio is lower than 70% would also show our robust performance. So just now, this was the financials of Q1. And thanks to all the investors for your listening.
Okay. Thank you, and thanks for Madam Ma and thanks for Mr. Wang.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]