ZHONGSHAN, China, Nov. 16, 2012 /PRNewswire/ -- China Ming Yang
Wind Power Group Limited ("Ming
Yang" or the "Company") (NYSE: MY), a leading wind turbine
manufacturer in China, today
announced its unaudited financial results for the third quarter
ended September 30, 2012.
Third Quarter 2012 Financial Highlights:
- Total wind turbine generators ("WTGs") for which revenue was
recognized amounted to an equivalent wind power project output of
228MW, or 152 units of 1.5MW WTGs, a decrease of 58.9% compared to
Q3 2011.
- Total revenue was RMB787.8
million (US$125.3 million), a
decrease of 58.6% compared to Q3 2011.
- Gross profit was RMB137.2 million
(US$21.8 million), a decrease of
55.1% compared to Q3 2011. Gross margin was 17.4%, compared to
16.0% in Q3 2011.
- Total comprehensive income was RMB4.9
million (US$0.8 million), a
decrease of 94.4% compared to Q3 2011.
- Basic and diluted earnings per share was RMB0.03 (US$0.005),
compared to RMB0.82 in Q3 2011.
Recent Developments
- Joint Venture with Huaneng Renewables Corporation
Limited – On August 31, 2012, the
Company announced that its subsidiary, Guangdong Mingyang Wind
Power Industry Group Co., Ltd. ("Guangdong Mingyang"), has formed a
joint venture with Huaneng Renewables Corporation Limited ("Huaneng
Renewables") (HKEx Stock Code: 0958), a leading pure-play renewable
energy company in China, to
specialize in the development of wind and solar power projects in
China and overseas markets.
- Strategic Cooperation with CGNPC – On September 10, 2012, the Company announced that
Guangdong Mingyang has signed a strategic cooperation agreement
with China Guangdong Nuclear Power Holding Co., Ltd. ("CGNPC"), a
leading clean energy supplier and energy services provider in
China, to jointly develop wind and
solar power projects.
- Share Repurchase Program – During the third quarter of
2012, the Company did not make any repurchases under its share
repurchase program. Since the inception of the program, the Company
had repurchased an aggregate of 3,153,897 ADS, representing
3,153,897 ordinary shares of the Company from the open market for
an aggregate consideration of approximately US$8.6 million (excluding commissions).
Mr. Zhang commented, "Our financial performance in the third
quarter continued to improve over the previous quarter, with gross
margin improving by approximately 2.9% and operating margin
improving by 3.0%. Ming Yang intends
to provide its customers with the best solutions in wind power
generation through a range of customized products and services. We
aim to deliver our products and services with higher power
generation, higher efficiency and better reliability at lower cost
of energy. We are glad that our new order intake during the third
quarter was 302MW, including 123 units for our new 2.0MW WTGs, and
we look forward to expanding our market presence in the 2.0MW plus
WTG market in China."
"During this quarter, we had formed a strategic partnership with
Reliance Group of India which is a
significant development of our overseas market strategy. We
continue to work with key domestic players, including Huaneng
Renewables and CGNPC, on wind power project development in
China. Again, this is testament to our commitment of offering
superior products and services to our customers."
Mr. Zhang concluded, "We continue to invest for the future, and
we believe that our customized business model will continue to help
Ming Yang capitalize on market
opportunities both in China and
overseas markets, and bolster its competitiveness despite
challenging market conditions."
Third Quarter 2012 Unaudited Financial Results
Revenue
Revenue in the third quarter of 2012 was RMB787.8 million (US$125.3
million), representing a decrease of 58.6% from RMB1,904.8 million in the corresponding period in
2011. WTGs for which revenue was recognized amounted to an
equivalent wind power project output of 228MW, or 152 units of
1.5MW WTGs, compared to 555MW, or 370 units of 1.5MW WTGs, for the
corresponding period in 2011. The decrease in revenue in the third
quarter was primarily due to the overall weakened market demand for
WTGs in China.
As of September 30, 2012, the
Company installed 33 units of WTGs which were commissioned through
its EPC program but the funding to the project developer was
subject to final approval by local banks. As a result, in keeping
with its revenue recognition policy, the Company did not recognize
revenue of approximately RMB160.0
million (US$25.5 million) for
these 33 units of WTGs during this quarter.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2012 was RMB137.2 million (US$21.8
million), representing a decrease of 55.1% from RMB305.6 million for the corresponding period in
2011. Gross margin in the third quarter of 2012 was 17.4%, compared
to 16.0% for the corresponding period in 2011. The decline in gross
profit was a result of weakened demand overall. The gross margin,
however, improved 1.4% year-over-year, primarily due to the
favorable mix of higher margin sales contracts for WTGs recognized
during the third quarter of 2012.
Selling and Distribution Expenses
Selling and distribution expenses were RMB38.1 million (US$6.1
million) for the third quarter of 2012, compared to
RMB61.4 million for the corresponding
period in 2011, representing a decrease of 37.9%, primarily due to
the decreased transportation expenses as a result of fewer number
of WTGs deliveries, less bidding charges incurred due to less
bidding activities and less share-based compensation expenses
incurred during the period.
Administrative Expenses
Administrative expenses were RMB59.3
million (US$9.4 million) for
the third quarter of 2012, compared to RMB87.1 million for the corresponding period in
2011, representing a decrease of 31.9%, primarily due to the fact
that there was a provision of receivables of RMB28.7 million in the third quarter of 2011
whereas there was a RMB4.7 million
(US$0.7 million) provision in the
corresponding period in 2012.
Research and Development Expenses
Research and development expenses were RMB23.4 million (US$3.7
million) for the third quarter of 2012, compared to
RMB19.2 million for the corresponding
period in 2011, representing an increase of 21.9%. This increase
was primarily due to the fact that the Company is currently
carrying out more wind turbine development projects, resulting in
an increase in staff costs with more engineers employed, and higher
material consumption and depreciation charges.
Net Finance Expense
Net finance expense was RMB21.0
million (US$3.3 million) for
the third quarter of 2012, compared to RMB16.3 million in the corresponding period of
2011.
Profit Before Income Tax Expense
Profit before income tax expense was RMB11.1 million (US$1.8
million) for the third quarter of 2012, compared to
RMB131.1 million in the corresponding
period of 2011.
Income Tax Expense
Income tax expense was RMB7.9
million (US$1.3 million) for
the third quarter of 2012, compared to RMB28.4 million in the corresponding period of
2011.
Total Comprehensive Income and Earnings per Share
Total comprehensive income for the third quarter of 2012 was
RMB4.9 million (US$0.8 million), compared to RMB88.4 million in the corresponding period of
2011.
For the third quarter of 2012, basic and diluted earnings per
share was RMB0.03 (US$0.005), compared to RMB0.82 for the corresponding period in 2011.
Cash and Cash Equivalents
Cash and cash equivalents as of September
30, 2012 were RMB1,470.2
million (US$233.9 million),
compared to RMB1,339.5 million as of
December 31, 2011.
Business Update
Order Book Update
New Sales Contracts – During the third quarter of 2012,
Ming Yang entered into sales
contracts for wind power projects with a total output of 302MW,
representing 37 units of 1.5MW WTGs and 123 units of 2.0MW
WTGs.
Order Backlog – As of September 30,
2012, the Company's order backlog amounted to 2.2 GW,
representing 1,136 units of 1.5MW WTGs, 123 units of 2.0MW WTGs, 67
units of 2.5-3.0MW SCD WTGs and 1 unit of 6.0 MW SCD WTG.
Cumulative signed orders since its inception amounted to 5.6GW,
representing 3,417 units of 1.5MW WTGs, 123 units of 2.0MW WTGs, 84
units of 2.5-3.0MW SCD WTGs and 1 unit of 6.0MW SCD WTG.
Note to the Financial Information
The preliminary unaudited consolidated statements of
comprehensive income and consolidated statements of financial
position accompanying this press release have been prepared by
management using International Financial Reporting Standards, or
IFRSs. This preliminary unaudited financial information is not
intended to fully comply with IFRSs because it does not present all
of the financial information and disclosures required by IFRSs.
Currency Conversion
Solely for the convenience of readers, certain Renminbi amounts
have been translated into U.S. dollar amounts at the rate of
RMB6.2848 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi for
U.S. dollars on September 28, 2012 as
set forth in the H.10 weekly statistical release of the Federal
Reserve Board. No representation is intended to imply that the
Renminbi amounts could have been, or could be, converted, realized
or settled into U.S. dollar amounts at such a rate or at any other
rate.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "target,"
"goal," "strategy" and similar statements. Such statements are
based upon management's current expectations and current market and
operating conditions, and relate to events that involve known or
unknown risks, uncertainties and other factors, all of which are
difficult to predict and many of which are beyond Ming Yang's control, which may cause
Ming Yang's actual results,
performance or achievements to differ materially from those in the
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in Ming Yang's filings with the U.S. Securities and
Exchange Commission. Ming Yang does
not undertake any obligation to update any forward-looking
statement as a result of new information, future events or
otherwise, except as required under applicable law.
Conference Call
Ming Yang will host an earnings
conference call on Friday, November
16, at 8:00 am Eastern Time
(5:00 am Pacific Time / 9:00 pm Beijing Time). The management team will
be on the call to discuss the Company's results, operating
performance and business outlook and to answer questions.
To access the conference call, please dial:
United States:
+1-866-519-4004
International (toll): +65-6723-9381
China, Domestic Mobile:
400-620-8038
China, Domestic: 800-819-0121
Hong Kong: 800-930-346
Please ask to be connected to Q3 2012 China Ming Yang Wind Power
Group Earnings Conference Call and provide the following passcode:
Ming Yang
Ming Yang will also broadcast a
live audio webcast of the conference call. The broadcast will be
available by visiting the "Investor Relations" section of the
Company's web site at http://ir.mywind.com.cn.
Following the earnings conference call, an archive of the call
will be available by dialing:
United States:
+1-866-214-5335
International: +61-2-8235-5000
China: 400-692-0026
Hong Kong: 800-901-1596
Passcode: 4572-8707
The replay will be archived for seven days following the
earnings announcement until November 24,
2012.
About China Ming Yang Wind Power Group Limited
China Ming Yang Wind Power Group Limited (NYSE: MY) is a leading
and fast-growing wind turbine manufacturer in China, focusing on designing, manufacturing,
selling and servicing megawatt-class wind turbines. Ming Yang produces advanced, highly adaptable
wind turbines with high energy output and provides customers with
comprehensive post-sales services. Ming
Yang cooperates with aerodyne Energiesysteme, one of the
world's leading wind turbine design firms based in Germany, to co-develop wind turbines. In terms
of newly installed capacity, Ming
Yang was a top 10 wind turbine manufacturer worldwide and
the largest non-state owned wind turbine manufacturer in
China in 2011.
For further information, please visit the Company's website:
ir.mywind.com.cn
For investor and media inquiries, please contact:
China Ming Yang Wind Power Group Limited
Beatrice Li
Email: ir@mywind.com.cn
http://ir.mywind.com.cn
Fleishman-Hillard
Nora Yong
T: +852-2530-0228
E: mingyang@fleishman.com
Hon Gay Lau
T: +852-2530-0228
E: mingyang@fleishman.com
CHINA MING YANG WIND
POWER GROUP LIMITED
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|
(Amounts expressed in
thousands, except share and ADS data)
|
|
|
|
|
|
For the three months
ended
|
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2011
|
|
2012
|
|
2012
|
|
|
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,904,809
|
|
787,793
|
|
125,349
|
|
|
Cost of sales
|
|
(1,599,223)
|
|
(650,616)
|
|
(103,522)
|
|
|
Gross
profit
|
|
305,586
|
|
137,177
|
|
21,827
|
|
|
Other income
|
|
6,410
|
|
13,765
|
|
2,190
|
|
|
Selling and distribution
expenses
|
|
(61,375)
|
|
(38,129)
|
|
(6,067)
|
|
|
Administrative
expenses
|
|
(87,076)
|
|
(59,271)
|
|
(9,431)
|
|
|
Research and development
expenses
|
|
(19,159)
|
|
(23,366)
|
|
(3,718)
|
|
|
Profit from
operations
|
|
144,386
|
|
30,176
|
|
4,801
|
|
|
Finance
income
|
|
16,490
|
|
47,162
|
|
7,504
|
|
|
Finance
expense
|
|
(32,793)
|
|
(68,185)
|
|
(10,849)
|
|
|
Share of gain of
associates
|
|
2,977
|
|
1,909
|
|
304
|
|
|
Profit before income
tax expense
|
|
131,060
|
|
11,062
|
|
1,760
|
|
|
Income tax
expense
|
|
(28,388)
|
|
(7,932)
|
|
(1,262)
|
|
|
Profit for the
period
|
|
102,672
|
|
3,130
|
|
498
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss)/income for the period :
|
|
|
|
|
|
|
|
|
Foreign currency
translation differences - foreign operations
|
|
(14,232)
|
|
1,794
|
|
285
|
|
|
Total comprehensive
income for the period
|
|
88,440
|
|
4,924
|
|
783
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
attributable to:
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
101,908
|
|
3,477
|
|
553
|
|
|
Non-controlling
interests
|
|
764
|
|
(347)
|
|
(55)
|
|
|
|
|
102,672
|
|
3,130
|
|
498
|
|
|
Total comprehensive
income/(loss) attributable to:
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
87,676
|
|
5,271
|
|
838
|
|
|
Non-controlling
interests
|
|
764
|
|
(347)
|
|
(55)
|
|
|
|
|
88,440
|
|
4,924
|
|
783
|
|
|
Basic and diluted
earnings per share(1)
|
|
0.82
|
|
0.03
|
|
0.005
|
|
|
_____________________________________
(1) The calculation of
the basic earnings per share is based on the profit attributable to
the shareholders of the Company and the weighted average of
ordinary shares outstanding during the relevant period.
|
CHINA MING YANG WIND
POWER GROUP LIMITED
|
UNAUDITED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(Amounts expressed in
thousands)
|
|
|
As of
December 31, 2011
|
|
As of
September 30,
2012
|
|
|
RMB
'000
|
|
RMB
'000
|
|
USD
'000
|
Assets
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
497,777
|
|
559,825
|
|
89,076
|
Intangible assets
|
|
74,837
|
|
98,469
|
|
15,668
|
Lease prepayments
|
|
207,321
|
|
236,708
|
|
37,664
|
Investments in
associates
|
|
43,637
|
|
36,721
|
|
5,843
|
Investments in jointly
controlled entities
|
|
255,870
|
|
394,720
|
|
62,805
|
Other investment
|
|
-
|
|
6,000
|
|
955
|
Trade and other
receivables
|
|
462,961
|
|
1,012,415
|
|
161,089
|
Prepayments
|
|
40,290
|
|
125,146
|
|
19,912
|
Deferred tax assets
|
|
134,386
|
|
166,485
|
|
26,490
|
Total non-current
assets
|
|
1,717,079
|
|
2,636,489
|
|
419,502
|
Current
assets
|
|
|
|
|
|
|
Fair value through profit or
loss
|
|
-
|
|
165,089
|
|
26,268
|
Inventories
|
|
1,837,821
|
|
1,677,811
|
|
266,964
|
Trade and other
receivables
|
|
5,203,995
|
|
4,483,413
|
|
713,374
|
Prepayments
|
|
91,022
|
|
172,815
|
|
27,497
|
Other current
assets
|
|
5,239
|
|
17,756
|
|
2,825
|
Pledged bank
deposits
|
|
252,795
|
|
236,943
|
|
37,701
|
Cash and cash
equivalents
|
|
1,339,496
|
|
1,470,218
|
|
233,932
|
Total current
assets
|
|
8,730,368
|
|
8,224,045
|
|
1,308,561
|
Total
assets
|
|
10,447,447
|
|
10,860,534
|
|
1,728,063
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Issued share
capital
|
|
850
|
|
850
|
|
135
|
Reserve for own
shares
|
|
(42,108)
|
|
(55,113)
|
|
(8,769)
|
Capital reserves
|
|
3,627,441
|
|
3,663,494
|
|
582,913
|
Translation
reserves
|
|
(58,358)
|
|
(53,732)
|
|
(8,550)
|
Retained earnings
|
|
253,711
|
|
113,693
|
|
18,090
|
Total equity
attributable to shareholders of the Company
|
|
3,781,536
|
|
3,669,192
|
|
583,819
|
Non-controlling
interests
|
|
117,153
|
|
113,806
|
|
18,108
|
Total
equity
|
|
3,898,689
|
|
3,782,998
|
|
601,927
|
Liabilities
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Bond payable
|
|
-
|
|
984,681
|
|
156,677
|
Deferred tax
liabilities
|
|
2,209
|
|
2,088
|
|
332
|
Provisions
|
|
206,293
|
|
243,789
|
|
38,790
|
Trade payables
|
|
120,243
|
|
58,880
|
|
9,369
|
Deferred income
|
|
175,215
|
|
254,710
|
|
40,528
|
Total non-current
liabilities
|
|
503,960
|
|
1,544,148
|
|
245,696
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Trade and other
payables
|
|
4,595,516
|
|
3,724,885
|
|
592,682
|
Short-term bank
loans
|
|
632,000
|
|
1,116,590
|
|
177,665
|
Income tax payable
|
|
35,908
|
|
7,493
|
|
1,192
|
Provisions
|
|
146,774
|
|
137,539
|
|
21,884
|
Deferred income
|
|
27,783
|
|
31,894
|
|
5,075
|
Deferred revenue
|
|
606,817
|
|
514,987
|
|
81,942
|
Total current
liabilities
|
|
6,044,798
|
|
5,533,388
|
|
880,440
|
|
|
|
|
|
|
|
Total
liabilities
|
|
6,548,758
|
|
7,077,536
|
|
1,126,136
|
Total equity and
liabilities
|
|
10,447,447
|
|
10,860,534
|
|
1,728,063
|
SOURCE China Ming Yang Wind Power Group Limited