China Longyuan Power Group Corp, Asia's largest generator of wind power, is seeking a bigger share of the global wind power generation market, underpinned by strong growth and favourable mainland government policies.
The wind power producer, which is to list in Hong Kong on December 10, forecast a net profit of no less than 886 million yuan (HK$1.01 billion) this year, 1.6 times higher than last year.
Xie Changjun, the president and an executive director of Longyuan, said profit would be mainly driven by fast-growing consolidated installed wind power capacity, which is expected to rise from 3,032 megawatts in September to 6,500 MW next year.
Currently, operating profit from the wind power business amounts to 70 per cent of the company's total operating income, while renewable energy and coal projects are responsible for the rest.
The company plans to use half of the funds raised from its initial public offering to expand wind power plants on the mainland, and the rest will be spent on overseas purchases and debt payment.
'Now we rank No 5 in the global wind power generation market,' Xie told reporters in Hong Kong yesterday. 'We hope to keep moving ahead. Our next goal might be third place.'
He added that Beijing had launched a series of policies on price-setting and taxation favouring the development of renewable energy.