China Ming Yang Gross Profit up 7.3 pct YoY

China Ming Yang Wind Power Group Limited (“Ming Yang” or the “Company”), a leading wind turbine manufacturer in China, today announced its unaudited financial results for the second quarter ended June 30, 2011.

Second Quarter 2011 Financial Highlights:

Total wind turbine generators (“WTGs”) commissioned amounted to an equivalent wind power projects output of 367.5MW, or 245 units of 1.5MW WTGs, representing an increase of 34.6% compared to Q2 2010.

Total revenue was RMB1,405.5 million (US$217.4 million), representing an increase of 7.2% compared to Q2 2010.

Gross profit was RMB267.2 million (US$41.3 million), representing an increase of 7.3% compared to Q2 2010. Gross margin of 19% for Q2 2011 was the same as in Q2 2010.

Total comprehensive income for the period was RMB74.6 million (US$11.5 million), a decrease of 54.1% compared to Q2 2010.

Basic (and diluted) earnings per ordinary share were RMB0.67(US$0.10) compared to basic (and diluted) earnings per ordinary share or RMB1.61 for Q2 2010.

 Recent Development

On August 15 2011, Ming Yang announced a $50 million share repurchase plan

On August 4, 2011, the Company announced the signing of a strategic cooperative agreement with China Three Gorges New Energy Corp. to jointly develop offshore wind power in Guangdong.

On July 25, 2011, the Company announced the signing of an off-shore wind power engineering, procurement and construction (“EPC”) project contract with Guangdong Yudean Xuwen Wind Power Co., Ltd., a subsidiary of Guangdong Yudean Group Co., Ltd. (“Yudean”) for a 48MW offshore wind power project in Zhanjiang, Guangdong, and the joining of alliance to develop offshore wind power in Guangdong.

On July 2011, MY 1.5Se WTG successfully passed low voltage ride through “LVRT” testing.

Mr. Chuanwei Zhang, Chairman and CEO of Ming Yang commented, “We are pleased to report solid results this quarter amidst challenging macro environment. Our 1.5MW WTGs continued to see strong demand. We recognized revenue from WTGs commissioned amounted to an equivalent wind power projects output of 367.5MW, or 245 units of 1.5MW WTGs in the quarter, representing a 34.6% year-over-year growth. The gaining of new sales contract with a total output of 379.5MW, or 253 units of 1.5MW WTGs and 18 units of 2.5/3.0MW SCD WTGs during the quarter further underlined the high demand of our WTGs.”

 “Despite the pricing environment in the industry, we were able to maintain our gross margin at 19.0% during the quarter compared to the same period last year, which demonstrates the success of our continuous cost optimization initiatives.”

 “We continue to demonstrate solid execution of our new growth strategies. We had continued to integrate our upstream supply chain by signing the rare earth agreement in June; and to show the competitiveness of our SCD WTGs and the validity of our new business models with the signing of an EPC contract with Yudean; and further expanded our blue-chip strategic relationships with a link-up with China Three Gorges New Energy Corp.”

 Mr. Zhang concluded, “The development of China’s wind power industry has entered a crucial phase, where its focus is shifting from size and speed to quality and efficiency. In the past three years, Ming Yang has laid a solid foundation by focusing on quality product development, R&D, innovative business models, further integration of high-end supply chain, and development of wind and solar energy storage solutions, and mostly importantly our active participation in the development of off-shore wind power in China. As a result, Ming Yang is not beset by the numerous problems affecting many wind turbine manufacturers in China such as excessive development, quality issues, lack of LVRT technology integration and most importantly effective cost management. I believe Ming Yang is well placed to continue to take advantage of the opportunities present in the Chinese market, and to grow our market share in 2011 and beyond. “

[mappress]

Source: mywind, November 10, 2011