China Datang Corporation and China WindPower Group reported strong profit rises for the first half of this year, boosted by a rise in electricity output and sales.
Beijing has imposed limits on provinces' new wind-power capacity to curb overcapacity after wind farm construction outpaced the power grid. More than half of the wind-generated electricity was wasted because of insufficient transmission capacity, according to the State Electricity Regulatory Commission.
Wu Jing, vice-chairman of China Datang Corporation, said the company's projects should be able to be connected to the national grid. 'The construction of the power grid is ongoing. We have individual projects that are slightly outpacing the grid, but eventually they will be connected to the grid,' he said.
The firm is the clean-energy unit of China's second-largest power producer, China Datang Group. In the first half of the year, the company increased its installed wind power capacity by 114 megawatts to 4,142MW, up 52.5 per cent from the period last year.
Vice-president Hu Guodong told investors the company would meet its full-year target of installing 1,500MW in new capacity.
'We always focus on the installation in the latter half of the year. More than 90 per cent of the capacity is usually done between September and December,' Hu said.
China Datang Corporation reported revenue of 1.86 billion yuan (HK$2.26 billion), up 78.2 per cent, and net profit jumped by 105 per cent to 416 million yuan.