MY Reports Third Quarter 2012 Unaudited Results PR Newswire ZHONGSHAN, China, Nov. 16, 2012 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: oTotal 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. oTotal revenue was RMB787.8 million (US$125.3 million), a decrease of 58.6% compared to Q3 2011. oGross 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. oTotal comprehensive income was RMB4.9 million (US$0.8 million), a decrease of 94.4% compared to Q3 2011. oBasic and diluted earnings per share was RMB0.03 (US$0.005), compared to RMB0.82 in Q3 2011. Recent Developments oJoint 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. oStrategic 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. oShare 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: firstname.lastname@example.org http://ir.mywind.com.cn Fleishman-Hillard Nora Yong T: +852-2530-0228 E: email@example.com Hon Gay Lau T: +852-2530-0228 E: firstname.lastname@example.org 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 September30, September30, September30, 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 As of December31,2011 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 255,870 394,720 62,805 entities 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 3,781,536 3,669,192 583,819 shareholders of the Company 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 Website: http://ir.mywind.com.cn
MY Reports Third Quarter 2012 Unaudited Results
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