MY Reports Third Quarter 2012 Unaudited Results

               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: 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
                                                                                             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
 
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