MY Reports Fourth Quarter and Full Year 2012 Unaudited Results

        MY Reports Fourth Quarter and Full Year 2012 Unaudited Results

PR Newswire

ZHONGSHAN, China, April 18, 2013

ZHONGSHAN, China, April 18, 2013 /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 fourth quarter and the full year ended December 31, 2012.

Fourth Quarter 2012 Financial Highlights:

  oTotal wind turbine generators ("WTGs") for which revenue was recognized
    amounted to an equivalent wind power project output of 258.5MW, or 163
    units of 1.5MW WTGs and 7 units of 2.0MW, an increase of 3.2% compared to
    Q4 2011.
  oTotal revenue was RMB900.7 million (US$144.6 million), an increase of
    11.4% compared to Q4 2011.
  oGross profit was RMB76.2 million (US$12.2 million), an increase of 34.6%
    compared to Q4 2011. Gross margin was 8.5%, compared to 7.0% in Q4 2011.
  oTotal comprehensive loss was RMB164.9 million (US$26.5 million), compared
    to total comprehensive loss of RMB128.7 million in Q4 2011.
  oBasic and diluted loss per share was RMB1.16 (US$0.19), compared to basic
    and diluted loss per share of RMB0.96 in Q4 2011.

Full Year 2012 Financial Highlights:

  oTotal WTGs for which revenue was recognized amounted to an equivalent wind
    power project output of 804.5MW, or 494 units of 1.5MW WTGs, 7 units of
    2.0MW WTGs and 17 units of 2.5-3.0MW WTGs, a decrease of 45.3% compared to
    2011.
  oTotal revenue was RMB2,893.1 million (US$464.4 million), a decrease of
    47.5% compared to 2011.
  oGross profit was RMB369.8million (US$59.4 million), a decrease of 62.8%
    compared to 2011. Gross margin was 12.8%, compared to 18.0% in 2011.
  oTotal comprehensive loss was RMB303.7 million (US$48.7 million), compared
    to total comprehensive income of RMB253.1 million in 2011.
  oBasic and diluted loss per share was RMB2.31 (US$0.37), compared to basic
    and diluted earnings per share of RMB2.35 in 2011.

Recent Developments

  oSale of Shares in Huadian Fuxin – On April 15, 2013, the Company announced
    that it had sold all 141,062,000 of its shares in Huadian Fuxin Energy
    Corporation Limited ("Huadian Fuxin")(HKEx: 00816) for an aggregate
    consideration of approximately US$35.5 million as of April 12, 2013. The
    shares were acquired for an aggregate consideration of approximately
    US$30.0 million in connection with Huadian Fuxin's initial public offering
    in Hong Kong and listing on the Hong Kong Stock Exchange in June 2012.
  oAcquisition of Global Wind Power Limited and Agreements for Renewable
    Energy Projects with Reliance Power – On July 2, 2012, the Company
    announced that it, through Ming Yang Holdings (Singapore) Pte. Ltd. ("Ming
    Yang Singapore"), its Singapore subsidiary, had entered into definitive
    agreements with Reliance Capital Limited and its related entities, forming
    part of Reliance Group, under which Ming Yang Singapore expects to
    establish a joint venture with Reliance Capital Limited by subscribing new
    shares of Global Wind Power Limited ("GWPL"), a leading wind power
    solutions provider in India, in which Reliance Capital Limited and its
    related entities were then the largest shareholders. On November 26, 2012,
    the Company announced that it has entered into a financing framework
    agreement with Reliance Power Limited, the largest private sector power
    company in India, both in capacity under development as well as market
    capitalization, and China Development Bank Corporation ("CDB"). Pursuant
    to these agreements, the Company completed the acquisition of a 50% equity
    interest in GWPL in November 2012.
  oShare Repurchase Program – During the fourth quarter of 2012, the Company
    did not make any repurchases under its share repurchase  program. Since
    the inception of the program, the Company has 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).
  oBoard Change – Mr. Xueyong Zhao was appointed as a director of the board
    on April 17, 2013, and Mr. Yiguo Hao resigned as a director of the board
    effective on the same date.

"2012 was a very tough year not just for us but also for the whole industry
around the world," commented Mr. Chuanwei Zhang, chairman and chief executive
officer of Ming Yang. "Despite difficult market conditions, we have managed to
increase our market share in China to 8.7% in 2012 compared to the previous
year 6.7% according to Chinese Wind Energy Association. As the grid connection
issues gradually get resolved, we should continue to see utilization hours of
wind farms increase, further enhancing wind as a viable alternative source of
power in China."

"Furthermore, the market has started to shift from the traditional 1.5MW-class
WTGs to 2.0MW and above WTGs where we believe pricing is firmer and there is
more room for manufacturing cost reductions. We have already seen WTG pricing
moving towards RMB 4,000 per kW and would not be surprised to see the average
price per kW exceeding that level by the end of 2013."

"We have decided to take advantage of the market opportunities presented to
us. We have also made some changes to our management team and the board of
directors in order to enhance our ability to execute our business strategies.
We continue to be optimistic about the opportunities in the wind power market
that exist in China and India and are confident that our competitive cost
advantage would enable us to further establish ourselves in these respective
markets. Last but not least, we expect our first off-shore wind power project
to begin construction in the second half of this year and continue to view the
off-shore market positively."

Fourth Quarter 2012 Unaudited Financial Results

Revenue

Revenue in the fourth quarter of 2012 was RMB900.7 million (US$144.6 million),
representing an increase of 11.4% from RMB808.3 million in the corresponding
period in 2011. WTGs for which revenue was recognized amounted to an
equivalent wind power project output of 258.5MW, or 163 units of 1.5MW WTGs
and 7 units of 2.0MW WTGs, compared to 250.5MW, or 167 units of 1.5MW WTGs,
for the corresponding period in 2011. The increase in revenue in the fourth
quarter was primarily due to the higher average selling price of 1.5MW WTGs as
well as an increase in revenue derived from sales of raw materials of RMB64.1
million (US$10.3 million) in the fourth quarter of 2012 compared to RMB15.3
million in the fourth quarter of 2011.

Gross Profit and Gross Margin

Gross profit in the fourth quarter of 2012 was RMB76.2 million (US$12.2
million), representing an increase of 34.6% from RMB56.6 million for the
corresponding period in 2011. Gross margin in the fourth quarter of 2012 was
8.5%, compared to 7.0% for the corresponding period in 2011. The increase was
a result of the favorable mix of higher margin sales contracts for WTGs
recognized during the fourth quarter of 2012.

Selling and Distribution Expenses

Selling and distribution expenses were RMB41.9 million (US$6.7 million) for
the fourth quarter of 2012, compared to RMB72.8 million for the corresponding
period in 2011, representing a decrease of 42.4%, primarily due to the
decreased transportation expenses as a result of fewer number of WTGs
deliveries and less bidding charges incurred due to less bidding activities.

Administrative Expenses

Administrative expenses were RMB197.6 million (US$31.7million) for the fourth
quarter of 2012, compared to RMB91.1 million for the corresponding period in
2011, representing an increase of 116.9%, primarily due to an increase in
provision of trade and other receivables of RMB135.4 million in the fourth
quarter of 2012 compared to RMB16.6 million provision was recorded in the
fourth quarter of 2011.

Research and Development Expenses

Research and development expenses were RMB21.2 million (US$3.4 million) for
the fourth quarter of 2012, compared to RMB23.3 million for the corresponding
period in 2011, representing a decrease of 9.0%. This decrease was primarily
due to less share based compensation expenses incurred during the period.

Net Finance Expense

Net finance expense was RMB17.3 million (US$2.8 million) for the fourth
quarter of 2012, compared to RMB30.1 million in the corresponding period of
2011.

Loss Before Income Tax Benefit

Loss before income tax benefit was RMB165.9 million (US$26.6 million) for the
fourth quarter of 2012, compared to RMB141.7 million in the corresponding
period of 2011.

Income Tax Benefit

Income tax benefit was RMB8.4 million (US$1.3 million) for the fourth quarter
of 2012, compared to RMB19.9 million in the corresponding period of 2011.

Total Comprehensive Loss and Loss per Share

Total comprehensive loss for the fourth quarter of 2012 was RMB164.9 million
(US$26.5 million), compared to RMB128.7 million in the corresponding period of
2011.

For the fourth quarter of 2012, basic and diluted loss per share was RMB1.16
(US$0.19), compared to basic and diluted loss per share of RMB0.96 for the
corresponding period in 2011.

Full Year 2012 Unaudited Financial Results

Revenue

Revenue was RMB2,893.1 million (US$464.4 million) for the full year 2012,
representing a decrease of 47.5% from RMB5,515.8 million in 2011. WTGs for
which revenue was recognized amounted to an equivalent wind power project
output of 804.5MW, or 494 units of 1.5MW WTGs, 7 units of 2.0MW WTGs and 17
units of 2.5-3.0MW WTGs, compared to 1,470MW, or 980 units of 1.5MW WTGs in
2011. The decrease in revenue was primarily due to the overall weakened market
demand for WTGs in China.

Gross Profit and Gross Margin

Gross profit was RMB369.8 million (US$59.4 million) for the full year 2012,
representing a decrease of 62.8% from RMB993.1 million in 2011. Gross margin
was 12.8%, compared to 18.0% in 2011. The decline in gross profit was
primarily due to the lower ASP as a result of weakened demand overall.

Selling and Distribution Expenses

Selling and distribution expenses were RMB174.8 million (US$28.1 million) for
the full year 2012, compared to RMB227.8 million in 2011, representing a
decrease of 23.3%, primarily due to the decreased transportation expenses as a
result of fewer number of WTGs deliveries during the period.

Administrative Expenses

Administrative expenses were RMB384.1 million (US$61.7 million) for the full
year 2012, compared to RMB261.9 million for the corresponding period in 2011,
representing an increase of 46.7%, primarily due to an increase in provision
of trade and other receivables.

Research and Development Expenses

Research and development expenses were RMB85.8 million (US$13.8 million) for
the full year 2012, compared to RMB85.3 million in 2011, representing an
increase of 0.6%.

Net Finance Expense

Net finance expense was RMB104.1 million (US$16.7 million) for the full year
2012, compared to RMB91.3 million in 2011.

Loss Before Income Tax Expense

Loss before income tax expense was RMB300.6 million (US$48.2 million) for the
full year 2012, compared to profit before income tax expense of RMB365.3
million in 2011.

Income Tax Expense

Income tax expense was RMB0.2 million (US$32,000) for the full year 2012,
compared to income tax expense of RMB73.0 million in 2011.

Total Comprehensive Loss and Loss per Share

Total comprehensive loss for the full year 2012 was RMB303.7 million (US$48.7
million), compared to total comprehensive income of RMB253.1 million in 2011.

For the full year 2012, basic and diluted loss per share was RMB2.31
(US$0.37), compared to basic and diluted earnings per share of RMB2.35 for
2011.

Cash and Cash Equivalents

Cash and cash equivalents as of December 31, 2012 were RMB1,319.7 million
(US$211.8 million), compared to RMB1,339.5 million as of December 31, 2011.

Business Update

Order Book Update

New Sales Contracts – During the fourth quarter of 2012, Ming Yang entered
into sales contracts for wind power projects with a total output of 157.5MW,
representing 105 units of 1.5MW WTGs.

Order Backlog – As of December 31, 2012, the Company's order backlog amounted
to 2.1 GW, representing 1,079 units of 1.5MW WTGs, 115 units of 2.0MW WTGs, 67
units of 2.5-3.0MW SCD WTGs and 1 unit of 6.0MW SCD WTG. Cumulative signed
orders since its inception amounted to 5.8GW, representing 3,523 units of
1.5MW WTGs, 122 units of 2.0MW WTGs, 84units of 2.5-3.0MW SCD WTGs and 1 unit
of 6.0MW SCD WTG. The Company won new contracts amounted to 787MW,
representing 358 units of 1.5 MW WTGs, 122 units of 2.0MW WTGs, 1 unit of 6.0
MW WTGs in 2012.

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 RMB6.2301 to US$1.00, the
noon buying rate in New York for cable transfers of Renminbi for U.S. dollars
on December 31, 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 Thursday, April 18, at 8:00
am Eastern Time (5:00 am Pacific Time / 8:00 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:      400-620-8038 / 800-819-0121
Hong Kong:            800-930-346

Please ask to be connected to Q4 & FY 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: +1-855-452-5696
International: +61-2-8199-0299
China:         400-120-0932 / 800-870-0205
Hong Kong:     800-963-117
Passcode:      2072-4515

The replay will be archived for seven days following the earnings announcement
until April 25, 2013.

About China Ming Yang Wind Power Group Limited

China Ming Yang Wind Power Group Limited (NYSE: MY) is a leading 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





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 period      For the year ended December 31,
                 ended December 31,
                 2011       2012       2012       2011         2012         2012
                 RMB '000   RMB '000   USD '000   RMB '000     RMB '000     USD '000
Revenue          808,298    900,718    144,575    5,515,819    2,893,100    464,375
Cost of sales    (751,727)  (824,508)  (132,343)  (4,522,685)  (2,523,337)  (405,024)
Gross profit     56,571     76,210     12,232     993,134      369,763      59,351
Other income     18,641     36,360     5,836      36,195       85,830       13,777
Selling and
distribution     (72,796)   (41,862)   (6,719)    (227,766)    (174,807)    (28,058)
expenses
Administrative   (91,068)   (197,598)  (31,717)   (261,944)    (384,102)    (61,653)
expenses
Research and
development      (23,304)   (21,188)   (3,401)    (85,305)     (85,821)     (13,775)
expenses
(Loss)/ profit   (111,956)  (148,078)  (23,769)   454,314      (189,137)    (30,358)
from operations
Finance income   22,480     48,966     7,860      70,630       126,772      20,348
Finance expense  (52,545)   (66,284)   (10,639)   (161,908)    (230,866)    (37,057)
Net finance      (30,065)   (17,318)   (2,779)    (91,278)     (104,094)    (16,709)
expense
Share of profit
of associates,
net of income    293        (480)      (77)       2,275        (7,396)      (1,187)
tax expense
(Loss)/ profit
before income    (141,728)  (165,876)  (26,625)   365,311      (300,627)    (48,254)
tax
expense
Income tax
benefit /        19,869     8,401      1,348      (73,018)     (213)        (34)
(expense)
(Loss)/ profit
for the period   (121,859)  (157,475)  (25,277)   292,293      (300,840)    (48,288)
/ year
Other
comprehensive
loss for the
period / year:
Foreign
currency
translation
              (6,885)    (7,459)    (1,197)    (39,202)     (2,833)      (455)
differences -
foreign
operations
Total
comprehensive
(loss)/income    (128,744)  (164,934)  (26,474)   253,091      (303,673)    (48,743)
 for the
period / year
(Loss)/ profit
attributable
to:
Shareholders of  (117,947)  (141,856)  (22,770)   292,993      (281,874)    (45,244)
the Company
Non-controlling  (3,912)    (15,619)   (2,507)    (700)        (18,966)     (3,044)
interests
                 (121,859)  (157,475)  (25,277)   292,293      (300,840)    (48,288)
Total
comprehensive
(loss)/income

attributable
to:
Shareholders of  (124,832)  (149,183)  (23,946)   253,791      (284,575)    (45,678)
the Company
Non-controlling  (3,912)    (15,751)   (2,528)    (700)        (19,098)     (3,065)
interests
                 (128,744)  (164,934)  (26,474)   253,091      (303,673)    (48,743)
Basic and
diluted (loss)/  (0.96)     (1.16)     (0.19)     2.35         (2.31)       (0.37)
earnings per
share(1)
_____________________________________

(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  December 31, 2012
                                      RMB '000           RMB '000    USD '000
Assets
Non-current assets
Property, plant and equipment         497,777            1,053,307   169,067
Intangible assets                     74,837             427,681     68,648
Lease prepayments                     207,321            356,932     57,292
Investments in associates             43,637             10,083      1,618
Investments in jointly controlled     255,870            691,837     111,047
entities
Other investment                      -                  6,227       1,000
Trade and other receivables           462,961            930,424     149,343
Prepayments                           40,290             66,024      10,598
Deferred tax assets                   134,386            174,024     27,933
Total non-current assets              1,717,079          3,716,539   596,546
Current assets
Fair value through profit or loss     -                  168,139     26,988
Inventories                           1,837,821          2,028,435   325,586
Trade and other receivables           5,203,995          4,224,375   678,059
Prepayments                           91,022             199,970     32,097
Other current assets                  5,239              7,511       1,206
Pledged bank deposits                 252,795            276,651     44,406
Cash and cash equivalents             1,339,496          1,319,694   211,825
Total current assets                  8,730,368          8,224,775   1,320,167
Total assets                          10,447,447         11,941,314  1,916,713
Equity
Issued share capital                  850                850         136
Reserve for own shares                (42,108)           (55,113)    (8,846)
Capital reserves                      3,627,441          3,670,380   589,137
Translation reserves                  (58,358)           (61,191)    (9,822)
Retained earnings                     253,711            (28,163)    (4,520)
Total equity attributable to          3,781,536          3,526,763   566,085
shareholders of the Company
Non-controlling interests             117,153            110,787     17,782
Total equity                          3,898,689          3,637,550   583,867
Liabilities
Non-current liabilities
Long term loan                        -                  354,437     56,891
Bond payable                          -                  986,206     158,297
Deferred tax liabilities              2,209              86,969      13,959
Provisions                            206,293            212,064     34,039
Trade payables                        120,243            83,553      13,411
Deferred income                       175,215            280,024     44,947
Total non-current liabilities         503,960            2,003,253   321,544
Current liabilities
Trade and other payables              4,595,516          3,811,342   611,763
Short-term bank loans                 632,000            1,685,685   270,571
Income tax payable                    35,908             9,789       1,571
Provisions                            146,774            178,425     28,639
Deferred income                       27,783             34,088      5,472
Deferred revenue                      606,817            581,182     93,286
Total current liabilities             6,044,798          6,300,511   1,011,302
Total liabilities                     6,548,758          8,303,764   1,332,846
Total equity and liabilities          10,447,447         11,941,314  1,916,713



SOURCE China Ming Yang Wind Power Group Limited

Website: http://ir.mywind.com.cn
 
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