MY Reports First Quarter 2013 Unaudited Results
ZHONGSHAN, China, May 30, 2013
ZHONGSHAN, China, May 30, 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 first quarter ended March 31, 2013.
First Quarter 2013 Financial Highlights:
oTotal wind turbine generators ("WTGs") for which revenue was recognized
amounted to an equivalent wind power project output of 238MW, or 112 units
of 1.5MW WTGs and 35 units of 2.0MW WTGs, an increase of 98.3% compared to
120 MW, or 80 units of 1.5MW WTGsin Q1 2012.
oTotal revenue was RMB805.4 million (US$129.7 million), an increase of
98.1% compared to RMB406.6 million in Q1 2012.
oGross profit was RMB89.7 million (US$14.4 million), an increase of 121.3%
compared to Q1 2012. Gross margin was 11.1% for Q1 2013, compared to 10.0%
in Q1 2012.
oTotal comprehensive income was RMB4.5 million (US$0.7 million), compared
to total comprehensive loss of RMB116.2 million in Q1 2012.
oTotal comprehensive income attributable to shareholders was RMB23.3
million (US$3.8 million), compared to total comprehensive loss
attributable to shareholders of RMB114.1 million in Q1 2012.
oBasic and diluted earnings per share was RMB0.19 (US$0.03), compared to
basic and diluted loss per share of RMB0.93 in Q1 2012.
oShare Repurchase Program – During the first quarter of 2013, 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).
"We have positioned Ming Yang to take advantage of the recovery in the market
for wind turbine generators in 2013," commented Mr. Chuanwei Zhang, chairman
and chief executive officer of Ming Yang. "Our 8.7% market share in China in
2012, in terms of newly installed capacity according to Chinese Wind Energy
Association, is a clear vindication of our strategy to focus on offering
leading edge, large capacity WTGs and innovative business solutions in China."
"As the renewable industry in China continues its recovery and downstream
customers see tangible improvement in their subsidy rebates, Ming Yang
continues to expect increased market demand from its customers in 2013. During
the previous downturn, Ming Yang had increased its market share, and now with
the market in recovery, it expects to continue to enhance its leading market
"We increased shipment and revenues for our 2.0MW WTGs in the first quarter of
2013. It was the first time that newly signed orders for 2.0MW WTGs exceeded
those of 1.5MW WTGs. We expect 2.0MW-class and above WTGs to have firmer
pricing and more room for cost reduction. As WTG pricing in China continues to
edge slowly upwards, we believe our products are well placed to take advantage
of current market opportunities in China and beyond."
First Quarter 2013 Unaudited Financial Results
Revenue in the first quarter of 2013 was RMB805.4 million (US$129.7 million),
representing an increase of 98.1% from RMB406.6 million in the corresponding
period in 2012. WTGs for which revenue was recognized amounted to an
equivalent wind power project output of 238MW, or 112 units of 1.5MW WTGs and
35 units of 2.0MW WTGs compared to 120MW, or 80 units of 1.5MW WTGs for the
corresponding period in 2012. The increase in revenue in the first quarter was
primarily due to the higher number of WTGs commissioned during the period.
Gross Profit and Gross Margin
Gross profit in the first quarter of 2013 was RMB89.7 million (US$14.4
million), representing an increase of 121.3% from RMB40.5 million for the
corresponding period in 2012. Gross margin in the first quarter of 2013 was
11.1%, compared to 10.0% for the corresponding period in 2012. The increase
was primarily due to the revenue recognition of 2.0MW WTGs which tend to
achieve a higher gross margin than our 1.5MW WTGs.
Selling and Distribution Expenses
Selling and distribution expenses were RMB31.3 million (US$5.0 million) for
the first quarter of 2013, compared to RMB70.3 million for the corresponding
period in 2012, representing a decrease of 55.4%. The decrease was primarily
due to the marketing and bidding expenses incurred in the corresponding period
Administrative expenses were RMB62.2 million (US$10.0 million) for the first
quarter of 2013, compared to RMB50.2 million for the corresponding period in
2012, representing an increase of 23.9%. The increase was primarily due to an
increase in amortization of intangible assets.
Research and Development Expenses
Research and development expenses were RMB17.7 million (US$2.8 million) for
the first quarter of 2013, compared to RMB18.6 million for the corresponding
period in 2012, representing a decrease of 4.5%.
Net Finance Income/(Expense)
Net finance income was RMB20.7 million (US$3.3 million) for the first quarter
of 2013, compared to net finance expense of RMB48.2 million in the
corresponding period of 2012.
Finance income was RMB86.8 million (US$14.0 million) for the first quarter of
2013, primarily including a gain of RMB49.9 million (US$8.0 million) from the
disposal of shares of Huadian Fuxin Energy Corporation Limited (HKEx: 00816)
and EPC capital gains of RMB19.1 million (US$3.1 million).
Finance expense was RMB66.1 million (US$10.6 million) for the first quarter of
2013, compared to RMB69.2 million in the corresponding period of 2012,
primarily including mid-term notes interest RMB22.8million (US$3.7 million)
and bank borrowing interest RMB27.8 million (US$4.5 million).
Profit/(Loss) Before Income Tax Expense
Profit before income tax expense was RMB3.7 million (US$0.6 million) for the
first quarter of 2013, compared to a loss before income tax expense of
RMB126.0 million in the corresponding period of 2012.
Income Tax (Expense)/Benefit
Income tax expense was RMB0.1 million (US$18.2 thousand) for the first quarter
of 2013, compared to an income tax benefit of RMB10.5 million in the
corresponding period of 2012.
Total Comprehensive Income/(Loss) and Earning/(Loss) per Share
Total comprehensive income for the first quarter of 2013 was RMB4.5 million
(US$0.7 million), compared to total comprehensive loss of RMB116.2 million in
the corresponding period of 2012.
Total comprehensive income attributable to shareholders was RMB23.3 million
(US$3.8 million), compared to total comprehensive loss attributable to
shareholders of RMB114.1 million in the corresponding period in 2012. For the
first quarter of 2013, basic and diluted earnings per share were RMB0.19
(US$0.03), compared to basic and diluted loss per share of RMB0.93 for the
corresponding period in 2012.
Cash and Cash Equivalents
Cash and cash equivalents as of March 31, 2013 were RMB1,004.9 million
(US$161.8 million), compared to RMB1,319.7 million as of December 31, 2012.
Order Book Update
New Sales Contracts – During the first quarter of 2013, Ming Yang entered into
sales contracts for wind power projects with a total output of 349MW,
representing 99 units of 1.5MW WTGs and 100 units of 2.0MW WTGs.
Order Backlog – As of March 31, 2013, the Company's order backlog amounted to
2.2 GW, representing 1,066 units of 1.5MW WTGs, 180 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 6.1GW, representing 3,622 units of
1.5MW WTGs, 222 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.
Solely for the convenience of readers, certain Renminbi amounts have been
translated into U.S. dollar amounts at the rate of RMB6.2108 to US$1.00, the
noon buying rate in New York for cable transfers of Renminbi for U.S. dollars
on March 29, 2013 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
Ming Yang will host an earnings conference call on Thursday, May 30, 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 Q1 2013 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
China: 400-120-0932 / 800-870-0205
Hong Kong: 800-963-117
The replay will be archived for seven days following the earnings announcement
until June 6, 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 2012.
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
Tel: +86 760 28138898
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-month period ended
March 31, March 31, March 31,
2012 2013 2013
RMB'000 RMB'000 USD'000
Revenue 406,632 805,404 129,678
Cost of sales (366,125) (715,746) (115,242)
Gross profit 40,507 89,658 14,436
Other income 20,884 5,385 867
Selling and distribution expenses (70,275) (31,335) (5,045)
Administrative expenses (50,178) (62,161) (10,009)
Research and development expenses (18,576) (17,736) (2,856)
Loss from operations (77,638) (16,189) (2,607)
Finance income 21,050 86,798 13,975
Finance expense (69,215) (66,072) (10,638)
Share of loss of associates (176) (795) (128)
(Loss)/profit before income tax (125,979) 3,742 602
Income tax benefit/(expense) 10,544 (113) (18)
(Loss)/profit for the period (115,435) 3,629 584
Other comprehensive (loss)/income
Foreign currency translation
differences -foreign (764) 862 139
Total comprehensive (loss)/income (116,199) 4,491 723
(Loss)/profit attributable to:
Shareholders of the Company (113,340) 23,326 3,756
Non-controlling interests (2,095) (19,697) (3,171)
(115,435) 3,629 585
Total comprehensive (loss)/income
Shareholders of the Company (114,104) 23,268 3,746
Non-controlling interests (2,095) (18,777) (3,023)
(116,199) 4,491 723
Basicanddiluted(loss)/earnings (0.93) 0.19 0.03
(1) The calculation of the basic (loss)/earnings per share is based on the
(loss)/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
RMB '000 RMB '000 USD '000
Property, plant and equipment 1,053,307 1,057,581 170,281
Intangible assets 427,681 409,720 65,969
Lease prepayments 356,932 358,481 57,719
Investments in associates 9,166 9,291 1,496
Investments in jointly controlled 691,837 736,087 118,517
Other investments 7,144 30,154 4,855
Trade and other receivables 930,424 955,417 153,832
Prepayments 66,024 79,748 12,840
Deferred tax assets 174,024 171,090 27,547
Total non-current assets 3,716,539 3,807,569 613,056
Financial assets carried at
168,139 18,587 2,993
fair value through profit or loss
Inventories 2,028,435 1,825,788 293,970
Trade and other receivables 4,224,375 4,186,194 674,018
Prepayments 199,970 193,689 31,186
Other current assets 7,511 13,675 2,202
Pledged bank deposits 276,651 278,940 44,912
Cash and cash equivalents 1,319,694 1,004,875 161,795
Total current assets 8,224,775 7,521,748 1,211,076
Total assets 11,941,314 11,329,317 1,824,132
Issued share capital 850 850 137
Reserves for own shares (55,113) (44,628) (7,186)
Capital reserves 3,670,380 3,670,850 591,044
Translation reserves (61,191) (61,249) (9,862)
Accumulated loss (28,163) (4,837) (779)
Total equity attributable to 3,526,763 3,560,986 573,354
shareholders ofthe Company
Non-controlling interests 110,787 92,010 14,815
Total equity 3,637,550 3,652,996 588,169
Long- term bank loans 354,437 345,772 55,673
Bond payable 986,206 987,763 159,040
Deferred tax liabilities 86,969 82,016 13,205
Provisions 212,064 277,731 44,717
Trade and other payables 83,553 107,200 17,260
Deferred income 280,024 275,424 44,346
Total non-current liabilities 2,003,253 2,075,906 334,241
Trade and other payables 3,811,342 3,368,458 542,356
Short-term bank and other loans 1,685,685 1,475,332 237,543
Income tax payable 9,789 11,714 1,886
Provisions 178,425 128,796 20,737
Deferred income 34,088 37,832 6,091
Deferred revenue 581,182 578,283 93,109
Total current liabilities 6,300,511 5,600,415 901,722
Total liabilities 8,303,764 7,676,321 1,235,963
Total equity and liabilities 11,941,314 11,329,317 1,824,132
SOURCE China Ming Yang Wind Power Group Limited
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