Preliminary Fourth Quarter and Full Year 2011 Selected Unaudited Financial Results
The Company’s financial statements for the fourth quarter and full year ended December 31, 2011 have not been finalized and are subject to completion of its normal period-end closing procedures. Therefore, the preliminary selected unaudited financial data set forth below may be subject to adjustment and the actual results could differ materially from the expected results provided.
The Company expects revenue for the fourth quarter of 2011 to decrease by approximately 53% year-over-year, while revenue for full year 2011 is expected to maintain at a similar level as 2010. The decrease in revenues in the fourth quarter was primarily due to (i) the delay in revenue recognition of our Engineering, Procurement and Construction ("EPC") projects; (ii) the delays in installation and commission of our wind turbine generators ("WTGs") of certain wind farm projects primarily caused by adverse weather conditions; and (iii) slower growth in the wind industry in China in 2011.
The Company expects gross margin in the fourth quarter of 2011 to be approximately 7%, while gross margin for full year 2011 is expected to be approximately 18%. The decline was primarily due to decreased average selling price, reflecting increasingly competitive market pricing.
As a result, the Company expects to have a loss for the fourth quarter and profit for the year to decline by approximately 59% as compared to 2010.
The Company is continuing to review its fourth quarter and full year results and will announce its unaudited financial results for the fourth quarter and full year 2011 on March 29, 2012 after the US market closes. The earnings press release will be available on the Investor Relations page of the Company’s website at http://ir.mywind.com.cn.
Following the earnings release announcement, Ming Yang’s senior management will host a conference call on Friday, March 30, 2012 at 8:00 am (Eastern Time)/ 5:00 am (Pacific Time)/ 8:00 pm (Beijing Time) to discuss its results and recent business activities.
China Ming Yang Wind Power Group Limited (NYSE: MY) is a leading and fast-growing 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 low energy production costs and provides customers with comprehensive post-sales services.
Ming Yang cooperates with aerodynEnergiesysteme, one of the world’s leading wind turbine design firms based in Germany, to develop wind turbines and share intellectual property rights. Ming Yang’s key customers include the five largest state-owned power producers in China, with an aggregate installed capacity accounting for more than 50% of China’s newly installed capacity in 2010.
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.