Ming Yang Q2 Profit Up

China Ming Yang Wind Power Group Limited, a leading wind turbine manufacturer in China, announced its unaudited financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Operating and Financial Highlights:

• Total wind turbine generators (“WTGs”) commissioned for which revenue was recognized amounted to an equivalent wind power project output of 303.5MW, or 153 units of 1.5MW and 37 units of 2.0MW WTGs, an increase of 88.5% compared to 161MW in Q2 2013.
• Total revenue was RMB935.6 million (US$150.8 million), an increase of 74.1% compared to RMB537.4 million in Q2 2013.
• Gross profit was RMB123.5 million (US$19.9 million), compared to RMB66.1 million in Q2 2013. Gross margin was 13.2%, an increase of 0.9 percentage point compared to 12.3% in Q2 2013.
• Total comprehensive income was RMB11.8 million (US$1.9 million), compared to total comprehensive loss of RMB87.4 million in Q2 2013.
• Basic and diluted earnings per share were RMB0.11 (US$0.02), compared to basic and diluted loss per share of RMB0.51 in Q2 2013.

“We continued to see strong momentum in the industry, and have signed new orders of 617.0MW during the quarter, and our signed orderbook continues to grow strongly and has now reached a historic high of 3.6GW as of June 30, 2014,” commented Mr. Chuanwei Zhang, chairman and chief executive officer of Ming Yang. “As we enter the second half of 2014, we will continue to enhance the contract execution in order to satisfy our customers’ demand for wind turbine generators. Our gross margin for 2.0MW WTGs was approximately 13.3%, which was 1.8 percentage points higher than the gross margin of our 1.5MW WTGs for which revenue was recognized during the quarter. 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. We expect the overall demand continues to be strong heading into the second half of 2014.”

Recent Developments:

MY obtains approval to develop and operate 300MW off-Shore wind power project in Jiangsu Province – On June 5, 2014, MY’s subsidiary, Jiangsu Mingyang Wind Power Technology Limited, (“Jiangsu Mingyang”), has been approved by Rudong Energy Bureau in Jiangsu Province, China, to exclusively develop and operate a 300MW off-shore wind power project off the coast of Rudong in Jiangsu Province, China, subject to certain conditions.

MY expects to erect a 6MW off-Shore SCD WTG in Norway – On June 12, 2014, MY entered into a heads of agreement with Marin EnergiTestcenter AS (“MetCentre”) to erect a 6.0MW Super Compact Drive (“SCD”) WTG in the Karmoeywind turbine demonstration area off the coast of Karmøy Island in Norway. MetCentre is a Norwegian test centre for marine energy offering infrastructure and services to off-shore wind power. The proposed cooperation and the pilot project are subject to certain conditions, including a detailed agreement which is expected to be entered into by both parties in late 2014.

Ming Yang Wind Power obtaining Type Certificate of DNV-GL under GL 2010 worldwide for 1.5MW-89 wind turbine – On August 1, 2014, MY1.5-89 wind turbine obtained the GL 2010 Type Certification issued by DNV-GL Group. The MY1.5-89 wind turbine is optimized for low wind speed areas, and is part of the successful Ming Yang 1.5MW wind turbine platform.