Huayi Electric Increases Its Net Profit by Over 10 Times in the First Quarter

The quarterly performance forecast shows that Huayi Electric's net profit attributable to shareholders of listed companies increased by 1050% year-on-year in the first quarter of 2014.

The announcement shows that the main business income in the first quarter of 2014 was significantly higher than the same period of the previous year. At the same time, the company’s accounts receivable was in good condition and the entrusted loan interest was good.

“We expect the significant increase in the first quarter net profit of Huayi Electric will be due to the signing of a new contract for the wind power industry, which will result in a significant increase in performance and an improvement in the repayment situation,” said one wind industry analyst.

Huayi Electric's main business includes high-voltage electrical equipment and wind turbines. According to the 2013 annual report, Huayi Electric realized revenue of 1.532 billion yuan in 2013, an increase of 16.16% year-on-year, including 84.04 million yuan in operating income from high-voltage electrical equipment, down 21.02% year-on-year, and operating income of 67.29 million yuan in wind turbine unit, an increase of 173.99. %.

In January 2014, Huayi Electric and China Power Investment North China Branch signed the "Framework Agreement for Cooperative Development of Nine Wind Farm Projects", which will all promote the improvement of the performance of Huayi Electric Wind Power Equipment.