China Ming Yang Wind Power Group: financial results for Q1

China Ming Yang Wind Power Group Limited (NYSE: MY), a leading wind turbine manufacturer in China, announced its unaudited financial results for the first quarter ended March 31, 2012.

MY – First Quarter 2012 Financial Highlights:

Total wind turbine generators ("WTGs") for which revenue was recognized amounted to an equivalent wind power project output of 120MW, or 80 units of 1.5MW WTGs, a decrease of 60.0% compared to Q1 2011.

Total revenue was RMB406.6 million (US$64.6 million), a decrease of 70.9% compared to Q1 2011.

Gross profit was RMB40.5 million (US$6.4 million), a decrease of 88.9% compared to Q1 2011. Gross margin was 10.0% for Q1 2012, compared to 26.0% in Q1 2011.

Total comprehensive loss was RMB116.2 million (US$18.5 million), compared to a total comprehensive income of RMB218.8 million in Q1 2011.

Basic and diluted loss per share was RMB0.93 (US$0.15), compared to basic and diluted earnings per share of RMB1.80 for Q1 2011.

MY – Recent Developments

On May 10, 2012, the Company announced that its MY-3.0MW Super-Compact Drive ("SCD") WTG had successfully passed low voltage ride through ("LVRT") performance tests and obtained the LVRT certification.

On May 28, 2012, the Board of Directors approved the promotion of Mr. Manfred Loong to Chief Executive Officer of Ming Yang Wind Power (International) Co., Ltd. ("Ming Yang International"), a wholly-owned subsidiary of Ming Yang incorporated in Hong Kong, and the appointment of Mr. Vincent Pang as the new Chief Financial Officer of Ming Yang, effective June 1, 2012. Mr. Pang, 42, has approximately 20 years of experience in accounting, financial management and corporate financial advisory services, including mergers and acquisitions and financial restructuring. Before joining Ming Yang in March 2012, Mr. Pang worked in various positions at KPMG since September 1992, where he provided extensive accounting and financial advisory services to various corporate clients. Mr. Pang received his bachelor’s degree in economics from The University of Hong Kong in 1992. Mr. Pang is a Hong Kong certified public accountant and a member of The Hong Kong Institute of Chartered Secretaries.

Mr. Chuanwei Zhang, Chairman and CEO of Ming Yang, commented on the first quarter results, "The growth of China’s wind power industry is slowing down with a more stringent project approval process, a step in the evolution of the industry. Increased price competition and decreased demand also trimmed the margins of China’s WTG manufacturers. Against this backdrop and coupled with continued adverse winter weather, our performance in the first quarter was adversely impacted. Gross margin in the quarter, however, showed moderate improvement compared with the previous quarter, primarily due to a more stable average selling price ("ASP")."

China Ming Yang Wind Power Group Limited (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 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 2011.