CHINA MING YANG WIND POWER GROUP LTD ZHONGSHAN, China, Nov. 24, 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 third quarter ended September 30, 2014.
Third 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
524.5MW, or 187 units of 1.5MW and 122 units of 2.0MW WTGs, an increase
of 80.9% compared to 290.0MW in Q3 2013.
-- Total revenue was RMB1,716.8 million (US$279.7 million), an increase of
78.7% compared to RMB960.8 million in Q3 2013.
-- Gross profit was RMB225.6 million (US$36.8 million), compared to
RMB126.5 million in Q3 2013. Gross margin was 13.1%, a decrease of 0.1
percentage point compared to 13.2% in Q3 2013.
-- Total comprehensive income was RMB71.5 million (US$11.6 million),
compared to total comprehensive loss of RMB71.3 million in Q3 2013.
-- Basic and diluted earnings per share were RMB0.58 (US$0.09) and RMB0.57
(US$0.09), respectively, compared to basic and diluted loss per share of
RMB0.43 and RMB0.43, respectively, in Q3 2013.
Third Quarter 2014 Operating Data and Unaudited Financial Results
Revenue
Revenue in the third quarter of 2014 was RMB1,716.8 million (US$279.7 million), an increase of 78.7% as compared to that of the corresponding period in 2013. Revenue of WTGs amounted to an equivalent wind power project output of 524.5MW, or 187 units of 1.5MW and 122 units of 2.0MW WTGs. For the corresponding period of 2013, the output was 290.0MW, or 136 units of 1.5MW and 43 units of 2.0MW WTGs. The 78.7% increase in revenue was mainly due to a 72.6% increase in the number of WTGs commissioned compared with the third quarter of 2013.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2014 was RMB225.6 million (US$36.8 million), compared to that of RMB126.5 million in the third quarter of 2013. Gross margin in the third quarter of 2014 was 13.1%, compared to that of 13.2% for the corresponding period in 2013. On an adjusted basis, should warranty provisions be excluded from cost of sales, our adjusted gross margin would be 16.3% for both the third quarter of 2014 and the corresponding period of 2013.
Selling and Distribution Expenses
Selling and distribution expenses were RMB67.9 million (US$11.1 million) for the third quarter of 2014, compared to RMB70.3 million for the corresponding period in 2013, representing a decrease of 3.4%. The decrease in selling and distribution expenses was primarily attributable to lower transportation expense incurred for each WTG as the Company set up production plants near the wind farms since the fourth quarter of 2013.
Administrative Expenses
Administrative expenses were RMB38.4 million (US$6.3 million) for the third quarter of 2014, compared to RMB82.7 million for the corresponding period in 2013, representing a decrease of 53.5%. The decrease in administrative expenses was a combined result of (1) the reversal of provision for bad debts against trade and other receivables in the third quarter of 2014 as we received settlements from customers for some of the long-outstanding doubtful trade receivables; and (2) our administrative expenses in 2013 included administrative expenses incurred by our previously consolidated Indian subsidiary, Global Wind Power Limited ("GWPL"), which we deconsolidated since January 1, 2014.
Research and Development Expenses
Research and development expenses were RMB24.5 million (US$4.0 million) for the third quarter of 2014, compared to RMB27.9 million for the corresponding period in 2013, representing a decrease of 12.2%. The decrease was primarily attributable to less research and development activities carried out in the third quarter of 2014.
Finance Income
Finance income was RMB39.8 million (US$6.5 million) for the third quarter of 2014, compared to RMB32.1 million for the corresponding period in 2013. The increase in finance income was mainly attributable to the increase in interest income from bank deposits and entrusted loans.
Finance Expenses
Finance expenses were RMB50.8 million (US$8.3 million) for the third quarter of 2014, compared to RMB65.2 million for the corresponding period in 2013. The decrease in finance expenses was mainly due to finance expenses incurred by GWPL in the third quarter of 2013 which did not occur in the current quarter.
Profit / (Loss) Before Income Tax
Profit before income tax was RMB85.9 million (US$14.0 million) for the third quarter of 2014, compared to loss before income tax of RMB75.0 million for the corresponding period in 2013.
Income Tax (Expense) / Benefit
Income tax expense was RMB14.4 million (US$2.3 million) for the third quarter of 2014, compared to income tax benefit of RMB3.8 million for the corresponding period in 2013, primarily due to the profit recorded during the third quarter of 2014 .
Total Comprehensive Income / (Loss) and Earnings / (Loss) per Share
Total comprehensive income for the third quarter of 2014 was RMB71.5 million (US$11.6 million), compared to total comprehensive loss of RMB71.3 million for the corresponding period in 2013.
For the third quarter of 2014, basic and diluted earnings per share were RMB0.58 (US$0.09) and RMB0.57 (US$0.09), respectively, compared to basic and diluted loss per share of RMB0.43 and RMB0.43, respectively, for the corresponding period in 2013.
Cash and Cash Equivalents
Cash and cash equivalents as of September 30, 2014 were RMB1,678.7 million (US$273.5 million), compared to RMB811.8 million as of December 31, 2013.
Wind-solar complimentary solutions
The company has identified the opportunity in obtaining future WTG orders and wind farm resources through a joint offering of wind-solar complimentary solutions together with RedSolar New Energy Technology Company Limited ("RedSolar"), a company controlled by Chairman and CEO Mr. Chuanwei Zhang. RedSolar is specialized in high-efficiency high concentration photovoltaics ("HCPV") solar modules.
RedSolar imported certain manufacturing equipment through the Company. As of September 30, 2014 the amount due from RedSolar is approximately RMB132 million and these amounts are expected to be settled before December 31, 2014.
Business Update
Order Book Update
New Sales Contracts - During the third quarter of 2014, Ming Yang entered into sales contracts for wind power projects with a total output of 648.0MW, representing 324 units of 2.0MW WTGs.
Order Backlog - As of September 30, 2014, the Company's order backlog amounted to 3.7GW, representing 1,187 units of 1.5MW WTGs, 873 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 9.5GW, representing 4,650 units of 1.5MW WTGs, 1,155 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 (collectively the "preliminary unaudited financial information") have been prepared by management using International Financial Reporting Standards, or IFRSs, as issued by the International Accounting Standards Board. The 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 RMB6.1380 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi for U.S. dollars on September 30, 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 Monday, November 24, 2014 at 7:00 am Eastern Time (November 24, 2014 4:00 am Pacific Time / November 24, 2014 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: +1-845-507-1610
International (toll): +61-283-733- 610
China, Domestic: 400-120-3170 /
800-870-0210
Hong Kong: + 852-3051-2792
To access international Toll Free Dial-In numbers:
Hong Kong: 800-906-648
United States: +1-800-742-9301
Please ask to be connected to 3Q 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
Passcode: 3324-0018
The replay will be archived for seven days following the earnings announcement until December 1, 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
Johnson Zhang
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-month periods ended
September 30, 2013 September 30, 2014 September 30, 2014
RMB'000 RMB'000 USD'000
Revenue 960,820 1,716,771 279,696
Cost of sales (834,272) (1,491,134) (242,935)
--------
Gross profit 126,548 225,637 36,761
Other income 12,465 6,380 1,039
Selling and distribution expenses (70,317) (67,949) (11,070)
Administrative expenses (82,671) (38,419) (6,260)
Research and development expenses (27,929) (24,512) (3,993)
------
(Loss) / profit from operations (41,904) 101,137 16,477
Finance income 32,140 39,785 6,482
Finance expenses (65,202) (50,760) (8,270)
Loss on disposal of subsidiary - (4,045) (659)
Share of profit / (loss) of associates 16 (249) (41)
--- ---- ---
(Loss) / profit before income tax (74,950) 85,868 13,989
Income tax benefit / (expense) 3,752 (14,370) (2,341)
------
(Loss) / profit for the period (71,198) 71,498 11,648
Other comprehensive loss for the period:
Foreign currency translation differences - (92) (21) (3)
foreign operations
Total comprehensive (loss) / income for the (71,290) 71,477 11,645
period
(Loss) / profit attributable to:
Shareholders of the Company (53,216) 72,361 11,789
Non-controlling interests (17,982) (863) (141)
(71,198) 71,498 11,648
======= ====== ======
Total comprehensive (loss) /income attributable to:
Shareholders of the Company (54,770) 72,340 11,786
Non-controlling interests (16,520) (863) (141)
(71,290) 71,477 11,645
======= ====== ======
Basic (loss) / earnings per share(1) (0.43) 0.58 0.09
Diluted (loss) / earnings per share(2) (0.43) 0.57 0.09
(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 number of ordinary shares outstanding during the relevant periods.
(2) The calculation of diluted earnings (loss) /per share is based on the (loss) /profit attributable to shareholders of the Company and weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive ordinary shares during
the relevant periods.
(3) The reconciliation of adjusted gross margin (to exclude warranty provision from cost of sales) is as below:
For the three-month periods ended
September 30, 2013 September 30, 2014 September 30, 2014
RMB'000 RMB'000 USD'000
Revenue (A) 960,820 1,716,771 279,696
Cost of sales (B) (834,272) (1,491,134) (242,935)
Less: warranty provision 29,852 53,362 8,694
------ ------ -----
Cost of sales excluding warranty (804,420) (1,437,772) (234,241)
provision (C)
Gross margin [D=(A+B)/A] 13.2% 13.1% 13.1%
Adjusted gross margin[E=(A+C)/A] 16.3% 16.3% 16.3%
CHINA MING YANG WIND POWER GROUP LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Amounts expressed in thousands)
As of As of
September 30, 2014
December 31, 2013
RMB'000 RMB'000 USD'000
Assets
Non-current assets
Property, plant and equipment 1,001,678 799,810 130,305
Intangible assets 195,816 87,607 14,273
Lease prepayments 352,142 346,546 56,459
Investments in associates 25,608 70,092 11,419
Investments in joint ventures 795,848 851,499 138,726
Other investments 30,197 30,000 4,888
Trade and other receivables 934,364 1,042,866 169,903
Prepayments 120,276 129,149 21,041
Deferred tax assets 224,843 200,855 32,723
Total non-current assets 3,680,772 3,558,424 579,737
Current assets
Inventories 2,235,459 1,756,480 286,165
Trade and other receivables 4,210,955 4,868,896 793,238
Prepayments 115,317 161,372 26,291
Other current assets 35,301 28,243 4,601
Pledged bank deposits 246,608 291,442 47,482
Cash and cash equivalents 811,848 1,678,690 273,491
Total current assets 7,655,488 8,785,123 1,431,268
Total assets 11,336,260 12,343,547 2,011,005
========== ========== =========
Equity
Issued share capital 850 862 140
Reserves for own shares (44,628) (44,628) (7,271)
Capital reserves 3,693,726 3,720,215 606,096
Translation reserves (74,223) (75,567) (12,311)
Accumulated losses (532,342) (258,119) (42,053)
-------- -------- -------
Total equity attributable to shareholders of the Company 3,043,383 3,342,763 544,601
Non-controlling interests (28,063) 52,914 8,621
Total Equity 3,015,320 3,395,677 553,222
Liabilities
Non-current liabilities
Bond payable 992,664 - -
Deferred tax liabilities 52,102 12,963 2,112
Provisions 154,491 193,718 31,560
Trade and other payables 132,389 204,682 33,347
Deferred income 253,849 295,314 48,112
Bank borrowings 104,015 - -
Total non-current liabilities 1,689,510 706,677 115,131
Current liabilities
Bond payable - 997,916 162,580
Trade and other payables 4,230,737 5,732,151 933,881
Bank and other borrowings 1,283,055 713,091 116,176
Income tax payable 9,155 15,337 2,499
Provisions 249,559 287,475 46,835
Deferred income 41,328 47,731 7,776
Deferred revenue 817,596 447,492 72,905
Total current liabilities 6,631,430 8,241,193 1,342,652
Total liabilities 8,320,940 8,947,870 1,457,783
Total equity and liabilities 11,336,260 12,343,547 2,011,005
========== ========== =========
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/my-reports-third-quarter-unaudited-results-signed-order-backlog-reaches-37gw-300000164.html
SOURCE China Ming Yang Wind Power Group Limited
