GOLDWIND (02208.HK): 2027 Product Sales Framework Agreement with Xinjiang Wind Power, Annual Cap RMB 180.72mn

NewTimeSpace News: On 23 October 2026, Goldwind Science&Technology Co., Ltd. (the "Company") announced that it referred to its announcement dated 24 October 2025 regarding the continuing connected transactions under the 2026 product sales framework agreement, which expires on 31 December 2026. The board announced that, following the expiry of the 2026 product sales framework agreement and to provide guiding principles for each transaction between the Group and Xinjiang Wind Power and its associates for product sales, the Company entered into the 2027 product sales framework agreement with Xinjiang Wind Power on 23 October 2026 in respect of such continuing connected transactions, effective from 1 January 2027 to 31 December 2027. As at the date of the announcement, Xinjiang Wind Power is a substantial shareholder of the Company and a connected person under the Listing Rules, and entering into the agreement constitutes a continuing connected transaction between the Company and Xinjiang Wind Power.

The announcement disclosed that the Group will enter into a written agreement with any member of Xinjiang Wind Power and its associates for each connected transaction for the sale of products. As Xinjiang Wind Power is a state-owned enterprise, sales of goods to it and its associates are conducted mainly through tender; the Group, as bidder, responds to the relevant tender and submits bidding documents, with wind turbine sales typically covering configuration, technical solutions and warranty requirements, and the terms and prices determined through the tender process. For sales of wind turbine components that may be exempt from tender under the Tendering and Bidding Law of the PRC, the Group determines prices and terms by reference to prevailing market prices, warranty requirements, opportunities offered by the contract and the risks involved, with transaction prices referenced to the average transaction prices of at least two transactions in the ordinary and usual course of business for the same or similar products provided to independent third parties, and the terms and pricing offered to Xinjiang Wind Power and its associates are consistent with those offered to other independent third parties.

The Company stated that product sales to Xinjiang Wind Power and its associates were RMB 10.13 million for 2024, RMB 129.81 million for 2025 and RMB 0.93 million for the nine months ended 30 September 2026, and the proposed annual cap for 2027 is RMB 180.72 million. The cap was determined by reference to signed orders and awarded contracts between the Group and Xinjiang Wind Power and its associates, tenders already submitted and the counterparty's potential tender demand, delivery plans, and current market conditions and the Group's expectations: the Group expects potential wind turbine tender demand from Xinjiang Wind Power and its associates in 2027 of about 100 MW and, taking into account project capacity, awarded prices, win rates and the 2027 delivery plan, expects sales of RMB 163.72 million; potential energy storage equipment tender demand in 2027 is expected to be a 60 MW wind farm DC-coupled storage retrofit project, with expected sales of RMB 12 million; and spare parts sales in 2027 are expected to be RMB 5 million.

The Company stated that, affected by changes in the tender plans of individual projects of Xinjiang Wind Power and its associates, the Group's total deliveries to them for the whole of 2026 were lower than expected, and actual transaction amounts for the nine months ended 30 September 2026 were also below the corresponding proposed annual cap; however, as the "dual carbon" goals advance and grid renewable energy absorption capacity in Xinjiang improves, their wind turbine and component tender demand will gradually materialise. The Group has conducted the above transactions in the ordinary and usual course of business and expects them to continue, and the parties have a multi-year history and a long-term, strategic and solid cooperative relationship. On the Listing Rules, as one or more of the applicable percentage ratios for the annual caps of the continuing connected transactions under the 2027 product sales framework agreement up to 31 December 2027 exceed 0.1% but are below 5%, the transactions are subject to the announcement and annual review requirements under Chapter 14A and do not require independent shareholders' approval. The directors (including the independent non-executive directors) consider that the terms of the agreement and the transactions thereunder are fair and reasonable, entered into on normal commercial terms in the ordinary and usual course of the Group's business and in the interests of the Company and its shareholders as a whole.