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:
- Total 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.
- Total revenue was RMB1,224.0
million (US$196.9 million), an
increase of 52.0% compared to RMB805.4
million in Q1 2013.
- Gross 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.
- Total 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).
- 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 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, 79 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 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,
2013
|
|
March 31,
2014
|
|
March 31,
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 expenses
|
|
(31,335)
|
|
(30,935)
|
|
(4,976)
|
Administrative
expenses
|
|
(62,161)
|
|
(68,107)
|
|
(10,956)
|
Research and
development expenses
|
|
(17,736)
|
|
(19,597)
|
|
(3,152)
|
(Loss) / profit
from operations
|
|
(16,189)
|
|
80,537
|
|
12,956
|
|
|
|
|
|
|
|
Finance
income
|
|
86,798
|
|
37,243
|
|
5,991
|
Finance
expenses
|
|
(66,072)
|
|
(41,595)
|
|
(6,691)
|
Gain on loss of
control of subsidiaries
|
|
-
|
|
124,460
|
|
20,021
|
Share of loss of
associates
|
|
(795)
|
|
(172)
|
|
(28)
|
Profit before
income tax expense
|
|
3,742
|
|
200,473
|
|
32,249
|
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 differences - foreign operations
|
862
|
|
(1,440)
|
|
(232)
|
Total
comprehensive income for the period
|
|
4,491
|
|
185,795
|
|
29,888
|
|
|
|
|
|
|
|
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
share(2)
|
|
0.19
|
|
1.51
|
|
0.24
|
|
(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
December 31, 2013
|
|
As of
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 shareholders of the Company
|
(3,043,383)
|
|
(3,233,656)
|
|
(520,181)
|
|
|
|
|
|
|
|
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