MY Reports First Quarter Unaudited Results, Signed Order Backlog Reaches 3.3GW

MY Reports First Quarter Unaudited Results, Signed Order Backlog Reaches 3.3GW

PR Newswire

ZHONGSHAN, China, May 21, 2014

ZHONGSHAN, China, May 21, 2014 /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, 2014.

First Quarter 2014 Operating and Financial Highlights:

  oTotal wind turbine generators ("WTGs") for which revenue was recognized
    amounted to an equivalent wind power project output of 386.0MW, or 224
    units of 1.5MW and 25 units of 2.0MW WTGs, an increase of 57.2% compared
    to 245.5MW in Q1 2013.
  oTotal revenue was RMB1,224.0 million (US$196.9 million), an increase of
    52.0% compared to RMB805.4 million in Q1 2013.
  oGross profit was RMB192.0 million (US$30.9 million), compared to RMB89.7
    million in Q1 2013. Gross margin was 15.7%, an increase of 4.6 percentage
    points compared to 11.1% in Q1 2013.
  oTotal comprehensive income was RMB185.8 million (US$29.9 million),
    compared to that of RMB4.5 million in Q1 2013. Total comprehensive income
    for the period excluding the one-off gain on loss of control of
    subsidiaries was RMB61.3 million (US$9.9 million).
  oBasic earnings per share and diluted earnings per share were RMB1.54
    (US$0.25) and RMB1.51 (US$0.24), respectively, compared to basic and
    diluted earnings per share of RMB0.19 and RMB0.19 in Q1 2013.

"We have signed new orders of 671.5MW during the quarter, and our signed
orderbook continues to grow strongly and has now reached a historic high of
3.3GW," commented Mr. Chuanwei Zhang, chairman and chief executive officer of
Ming Yang. "This continues the trend established in late 2013. Benefiting from
the increased demand from our customers we had been able to take advantage of
larger economies of scale and our direct cost per kW had continued to decrease
by 3.1 percentage points and 6.9 percentage points for our 1.5MW and 2.0MW
WTGs respectively, compared with the corresponding period in 2013. Our gross
margin for 2.0MW WTGs was approximately 16.6%, which was 1.6 percentage points
higher than the gross margin of our 1.5MW WTGs. Our orderbook for the 2.0MW
WTGs continues to increase and we expect to continue to benefit from the trend
towards higher megawatt WTGs in China."

"As China continues to work towards a cleaner environment, we expect wind
power to continue to become a viable alternative to traditional sources of
power generation. We have already seen our customers taking advantage of this
opportunity, and we expect the upstream supply chain including Ming Yang to be
in a stronger position to harness this market trend."

First Quarter 2014 Operating Data and Unaudited Financial Results

Revenue

Revenue in the first quarter of 2014 was RMB1,224.0 million (US$196.9
million), which increased by 52.0% comparing to that of 2013. The recognized
revenue of WTGs amounted to an equivalent wind power project output of
386.0MW, or 224 units of 1.5MW and 25 units of 2.0MW WTGs. For the
corresponding period of 2013, the output was 245.5MW, or 112 units of 1.5MW,
35 units of 2.0MW, and 3 units of 2.5MW WTGs. The 52.0% increase of total
revenue was mainly due to a 66.0% increase in the number of WTGs commissioned
compared with the first quarter of 2013.

Gross Profit  and Gross Margin

Gross profit in the first quarter of 2014 was RMB192.0 million (US$30.9
million), compared to that of RMB89.7 million in the first quarter of 2013.
Gross margin in the first quarter of 2014 was 15.7%, compared to that of 11.1%
for the corresponding period in 2013. The improvement in gross margin was
because we were able to take advantage of larger economies of scale. On an
adjusted basis, should warranty provisions be excluded from cost of sales, our
gross margin would be 18.9% for the first quarter of 2014, compared to 14.1%
in the corresponding period of 2013.

Selling and Distribution Expenses

Selling and distribution expenses were RMB30.9 million (US$5.0 million) for
the first quarter of 2014, compared to RMB31.3 million for the corresponding
period in 2013, representing a decrease of 1.3%.

Administrative Expenses

Administrative expenses were RMB68.1 million (US$11.0 million) for the first
quarter of 2014, compared to RMB62.2 million for the corresponding period in
2013, representing an increase of 9.6%. The increase in administrative
expenses was a combined result of (1) the additional provision for bad debts
against trade receivables recorded in the first quarter of 2014, and (2) the
effect to exclude administrative expenses incurred by our previously Indian
subsidiary, Global Wind Power Limited ("GWPL"), as we deconsolidated GWPL
since January 1, 2014 (as detailed below).

Research and Development Expenses

Research and development expenses were RMB19.6 million (US$3.2 million) for
the first quarter of 2014, compared to RMB17.7 million for the corresponding
period in 2013, representing an increase of 10.5%. The increase was primarily
due to more research and development activities carried out in the first
quarter of 2014.

Finance Income

Our finance income were RMB37.2 million (US$6.0 million) for the first quarter
of 2014, compared to RMB86.8 million for the corresponding period in 2013. The
decrease in finance income is mainly because the finance income in the first
quarter of 2013 included a gain of RMB49.9 million from the disposal of shares
of Huadian Fuxin Energy Corporation Limited (HKEx: 00816).

Finance Expenses

Our finance expenses were RMB41.6 million (US$6.7 million) for the first
quarter of 2014, compared to RMB66.1 million for the corresponding period in
2013. The decrease in finance expenses was mainly because the finance expenses
in the first quarter of 2013 included interest expenses of RMB16.7 million
incurred by GWPL, which we deconsolidated since January 1, 2014.

Gain on Loss of Control of Subsidiaries

There was a gain on losing control of subsidiaries of RMB124.5 million
(US$20.0 million) that was recognized during the first quarter of 2014 as a
result of our deconsolidation of GWPL and accounted for GWPL as a joint
venture under equity method of accounting from January 1, 2014, pursuant to
our waiver of certain voting power in GWPL. The gain was recognized as a
result of such deconsolidation, which mainly represented the difference
between the carrying amount of net liabilities of GWPL, including goodwill
allocated to it at the date of deconsolidation, and the carrying amount of
GWPL's non-controlling interest and the carrying amount of our investment in
GWPL as a joint venture, which was nil, on the same date. There was no such
gain in the first quarter of 2013.

Profit Before Income Tax

Profit before income tax was RMB200.5 million (US$32.2 million) for the first
quarter of 2014, compared to RMB3.7 million in the corresponding period of
2013.

Income Tax Expense

Income tax expense was RMB13.2 million (US$2.1 million) for the first quarter
of 2014, compared to RMB0.1 million in the corresponding period of 2013,
primarily due to the profit recorded during the first quarter of 2014 .

Total Comprehensive Income and Earnings per Share

Total comprehensive income for the first quarter of 2014 was RMB185.8 million
(US$29.9 million), compared to RMB4.5 million in the corresponding period of
2013.

For the first quarter of 2014, basic earnings per share and diluted earnings
per share were RMB1.54 (US$0.25) and RMB1.51 (US$0.24), respectively, compared
to basic and diluted earnings per share of RMB0.19 and RMB0.19 for the
corresponding period in 2013.

Cash and Cash Equivalents

Cash and cash equivalents as of March 31, 2014 were RMB709.6 million (US$114.1
million), compared to RMB811.8 million as of December 31, 2013.

Business Update

Order Book Update

New Sales Contracts- During the first quarter of 2014, Ming Yang entered into
sales contracts for wind power projects with a total output of 671.5MW,
representing 285 units of 1.5MW WTGs and 122 units of 2.0MW WTGs.

Order Backlog - As of March 31, 2014, the Company's order backlog amounted to
3.3GW, representing 1,361 units of 1.5MW WTGs, 524 units of 2.0MW WTGs, 59
units of 3.0MW SCD WTGs and 1 unit of 6.0MW SCD WTG. Cumulative signed orders
since its inception amounted to 8.3GW, representing 4,484 units of 1.5MW WTGs,
647 units of 2.0MW WTGs, 79units 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 operations and
comprehensive income and consolidated statements of financial position
accompanying this press release have been prepared by management using
International Financial Reporting Standards, or IFRSs, as issued by the
International Accounting Standards Board. 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 RMB6.2164 to US$1.00, the
noon buying rate in New York for cable transfers of Renminbi for U.S. dollars
on March 31, 2014 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 Wednesday, May 21, 2014 at
3:30 am Eastern Time (May 20, 2014 0:30 am Pacific Time / May 21, 2014 3:30 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 8456750437
International (toll): +65 67239381
China, Domestic:      400-620-8038 / 800-819-0121
Hong Kong:            852-24750994

To access international Toll Free Dial-In numbers:

Hong Kong:     800-930-346
United States: +1 8665194004

Please ask to be connected to 1Q FY2014 China Ming Yang Wind Power Group
Earnings Conference Call and provide the following pass code: 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:         400-602-2065 / 400-632-2162 / 800-870-0206 / 800-870-0205
Hong Kong:     800-963-117
Pass code:     1142-2796

The replay will be archived for seven days following the earnings announcement
until May 28, 2014.

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 2013.

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 OPERATIONS AND COMPREHENSIVE INCOME
(Amounts expressed in thousands, except share and ADS data)
                                  For the three months periods ended
                                  March 31,       March 31, 2014    March 31,
                                  2013                              2014
                                  RMB'000         RMB'000           USD'000
Revenue                           805,404         1,224,032         196,904
Cost of sales                     (715,746)       (1,032,026)       (166,017)
Gross profit                      89,658          192,006           30,887
Other income                      5,385           7,170             1,153
Selling and distribution          (31,335)        (30,935)          (4,976)
expenses
Administrative expenses           (62,161)        (68,107)          (10,956)
Research and development          (17,736)        (19,597)          (3,152)
expenses
(Loss) / profit from              (16,189)        80,537            12,956
operations
Finance income                    86,798          37,243            5,991
Finance expenses                  (66,072)        (41,595)          (6,691)
Gain on loss of control of        -               124,460           20,021
subsidiaries
Share of loss of associates       (795)           (172)             (28)
Profit before income tax          3,742           200,473           32,249
expense
Income tax expense                (113)           (13,238)          (2,129)
Profit for the period             3,629           187,235           30,120
Other comprehensive income /
(loss) for the period:
Foreign currency translation      862             (1,440)           (232)
differences - foreign operations
Total comprehensive income        4,491           185,795           29,888
for the period
Profit / (loss) attributable
to:
Shareholders of the Company       23,326          188,416           30,310
Non-controlling interest          (19,697)        (1,181)           (190)
                                  3,629           187,235           30,120
Total comprehensive income /
(loss) attributable to:
Shareholders of the Company       23,268          186,976           30,078
Non-controlling interest          (18,777)        (1,181)           (190)
                                  4,491           185,795           29,888
Basic earnings per share^(1)      0.19            1.54              0.25
Diluted earnings per              0.19            1.51              0.24
share^(2)
(1) The calculation of the basic earnings per share is based on the earnings
attributable to the shareholders of the Company and the weighted average
number of ordinary shares outstanding during the relevant period.
(2) The calculation of diluted earnings per share is based on the profit
attributable to ordinary shareholders of the Company and weighted average
number of ordinary shares outstanding after adjustment for the effects of all
dilutive ordinary shares.



CHINA MING YANG WIND POWER GROUP LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Amounts expressed in thousands)
                                 As of December31,  As of
                                 2013                March 31, 2014
                                 RMB'000             RMB'000       USD'000
Assets
Non-current assets
Property, plant and equipment    1,001,678           790,715       127,198
Intangible assets                195,816             102,525       16,493
Lease prepayments                352,142             350,512       56,385
Investment in associates         25,608              25,436        4,092
Investment in joint ventures     795,848             813,602       130,880
Other investments                30,197              30,000        4,826
Trade and other receivables      934,364             967,203       155,589
Prepayments                      120,276             126,763       20,392
Deferred tax assets              224,843             210,980       33,938
Total non-current assets         3,680,772           3,417,736     549,793
Current assets
Inventories                      2,235,459           1,607,365     258,568
Trade and other receivables      4,210,955           4,293,054     690,602
Prepayments                      115,317             97,867        15,743
Other current assets             35,301              44,150        7,102
Pledged bank deposits            246,608             304,993       49,063
Cash and cash equivalents        811,848             709,649       114,158
Total current assets             7,655,488           7,057,078     1,135,236
Total assets                     11,336,260          10,474,814    1,685,029
Equity
Issued share capital             (850)               (850)         (137)
Reserve for own shares           44,628              44,628        7,179
Capital reserves                 (3,693,726)         (3,697,023)   (594,721)
Translation reserves             74,223              75,663        12,172
Accumulated losses               532,342             343,926       55,326
Total equity attributable to     (3,043,383)         (3,233,656)   (520,181)
shareholders of the Company
Non-controlling interests        28,063              (99,009)      (15,928)
Total Equity                     (3,015,320)         (3,332,665)   (536,109)
Liabilities
Non-current liabilities
Bond payable                     (992,664)           -             -
Deferred tax liabilities         (52,102)            (15,815)      (2,544)
Provisions                       (154,491)           (165,339)     (26,597)
Trade and other payables         (132,389)           (180,429)     (29,025)
Deferred income                  (253,849)           (259,139)     (41,686)
Bank borrowings                  (104,015)           -             -
Total non-current liabilities    (1,689,510)         (620,722)     (99,852)
Current liabilities
Bond payable                     -                   (994,374)     (159,960)
Trade and other payables         (4,230,737)         (3,905,507)   (628,259)
Bank and other borrowings        (1,283,055)         (883,378)     (142,104)
Income tax payable               (9,155)             (8,388)       (1,349)
Provisions                       (249,559)           (263,485)     (42,385)
Deferred income                  (41,328)            (37,160)      (5,978)
Deferred revenue                 (817,596)           (429,135)     (69,033)
Total current liabilities        (6,631,430)         (6,521,427)   (1,049,068)
Total liabilities                (8,320,940)         (7,142,149)   (1,148,920)
Total equity and liabilities     (11,336,260)        (10,474,814)  (1,685,029)

SOURCE China Ming Yang Wind Power Group Limited

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