ZHONGSHAN, China, August 18, 2015 /PRNewswire/ -- China Ming Yang Wind Power Group Limited (NYSE: MY) ("Ming Yang" or the "Company"), a leading wind energy solution provider in China, today announced its unaudited financial results for the quarter ended June 30, 2015.
Second Quarter 2015 Operating and Financial Highlights:
"We are pleased with the progress we made during the second quarter of 2015," said Mr. Chuanwei Zhang, Chairman and Chief Executive Officer of Ming Yang. "Net profit grew by more than four times year-over-year, and we have an ample backlog which is expected to further help us achieve better financial results going forward."
Mr. Zhang added, "The wind energy sector has enormous growth potential over the next five years. China's long-term goal is to generate 20% of its primary energy consumption using non-fossil fuels, which will bring new opportunities for the wind energy sector. With Ming Yang's significant market share, we are confident we will be able to capture a substantial number of business opportunities in China going forward."
"During the first half of 2015, China's wind energy sector continued to grow and expand quickly, driving market demand for higher quality wind turbine products. We are pleased to have provided our customers with comprehensive wind energy solutions to generate optimized returns, and we look forward to more business opportunities in China and overseas."
Second Quarter 2015 Operating Data and Unaudited Financial Results
Revenue
Revenue in the second quarter of 2015 was RMB1,563.2 million (US$252.1 million), compared to RMB935.6 million in the second quarter of 2014. The increase was due to the combined effects of (1) a 54.9% increase in the number of WTGs commissioned (measured by power output), and (2) the approximately 5.1 % increase in average WTG selling price in the second quarter of 2015 compared with the corresponding period of 2014.
WTGs for which revenue was recognized in the second quarter of 2015 amounted to an equivalent wind power project output of 470MW, or 120 units of 1.5MW WTGs and 145 units of 2.0MW WTGs. In the second quarter of 2014, revenue was recognized for WTGs with a power output of 303.5MW.
Gross Profit and Gross Margin
Gross profit was RMB245.9 million (US$39.7 million), compared to RMB123.5 million in the second quarter of 2014. Gross margin in the second quarter of 2015 was 15.7 %, compared to 13.2% in the second quarter of 2014. The increase in gross margin was mainly due to an increase in average WTG selling price by 5.1% in the second quarter of 2015 compared with the corresponding period of 2014.On an adjusted basis, should warranty provisions be excluded from cost of sales, the Company's adjusted gross margin would be 18.9% for the second quarter of 2015, compared to 16.4% for the corresponding period of 2014.
Selling and Distribution Expenses
Selling and distribution expenses were RMB53.9 million (US$8.7 million) for the second quarter of 2015, compared to RMB59.1 million for the corresponding period in 2014, representing a decrease of 8.8%.
Administrative Expenses
Administrative expenses were RMB108.4 million (US$17.5 million) for the second quarter of 2015, compared to RMB37.5 million for the corresponding period in 2014, representing an increase of 189.1%. The increase in administrative expenses was mainly due to provision for doubtful trade and other receivables of RMB31.0 million (US$5.0 million) being made in the second quarter of 2015 as compared to RMB20.7 million provision being reversed in the corresponding period of 2014.
Research and Development Expenses
Research and development expenses were RMB22.2 million (US$3.6 million) for the second quarter of 2015, compared to RMB22.2 million for the corresponding period in 2014.
Net Finance Income
Finance income was RMB38.5 million (US$6.2 million) for the second quarter of 2015, compared to RMB43.6 million for the corresponding period in 2014. The decrease in finance income was mainly attributable to the decrease in interest income from bank deposits and entrusted loans.
Finance expenses were RMB26.9 million (US$4.3 million) for the second quarter of 2015, compared to RMB42.9 million for the corresponding period in 2014. The decrease in finance expenses was mainly due to the repayment of RMB1 billion of Ming Yang's medium-term notes that matured on January 12, 2015.
Profit Before Income Tax
Profit before income tax was RMB78.6 million (US$12.7 million) for the second quarter of 2015, compared to RMB15.1 million for the corresponding period in 2014.
Income Tax Expense
Income tax expense was RMB10.5 million (US$1.7 million) for the second quarter of 2015, compared to RMB3.4 million for the corresponding period in 2014. The increase was primarily due to the higher profit recorded during the second quarter of 2015.
Total Comprehensive Income and Earnings per Share
As a result of the cumulative effects of the factors discussed above, total comprehensive income for the second quarter of 2015 was RMB65.2 million (US$10.5 million), compared to RMB11.8 million for the corresponding period in 2014.
Basic and diluted earnings per share were RMB0.50 (US$0.08) and RMB0.49 (US$0.08) for the second quarter of 2015, respectively, compared to basic and diluted earnings per share of RMB0.11 and RMB0.11, respectively, in the corresponding period in 2014.
Cash and Cash Equivalents
Cash and cash equivalents as of June 30, 2015 were RMB990.7 million (US$159.8 million), compared to RMB2,169.8 million as of December 31, 2014.
Recent Business Developments
Business Updates
Order Book Updates
Industry Updates
Earnings Guidance
Based on the Company's current order book and its current views and estimates on its current operating and market conditions and its current business plans and customer demand,and without taking into consideration the effect of its acquisition of RENergy in the first half of 2015, the Company expects that for the quarter ended September 30, 2015, (i) its estimated revenue will be in the range of RMB2.1 billion to RMB2.3 billion, representing an increase of 23.5% to 35.3% compared with RMB1.7 billion for the quarter ended September 30, 2014; and (ii) its estimated net profit for the period will be in the range of RMB95 million to RMB100 million, excluding share-based compensation expenses (Non-GAAP),representing an increase of 26.2% to 32.8% compared with RMB75.4 million for the quarter ended September 30, 2014. Please note that these projections are subject to change and changes may be material.
The Company completed the acquisition of the 99% majority equity interest in RENergy in May 2015 and RENergy became a consolidated subsidiary of the Company since then. The Company purchases electrical controls systems from RENergy, and the unrealized profits in inventories arising from purchases from RENergy subsequent to the acquisition will be eliminated upon consolidation. The Company is in the progress of integrating the operations of RENergy after the acquisition. After completing the integration, the Company expects the acquisition would result in synergies and benefits, including increases in gross profit margin and/or a reduction in various costs. These synergies and benefits will be more visible in the last quarter of 2015 or the first quarter of 2016, and the Company is still in progress of completing the purchase price allocation of the acquisition of RENergy. Accordingly, the Company has not revised its previously announced estimated net income.
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 RMB6.200 to US$1.00, the noon buying rate in New York for cable transfers of Renminbi for U.S. dollars on June 30, 2015 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," "to be," "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. Actual results or events may differ from those anticipated or predicted in this press release, and the differences may be material. 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's senior management will host a conference call on Wednesday, Aug 18, 2015 at 8:00 am (Eastern)/ 5:00 am (Pacific)/ 8:00 pm (China) to discuss its quarterly results and recent business activities.
To access the conference call, please dial:
United States: |
+1-845-675-0437 |
International (toll): |
+65-6713-5090 |
Mainland China: |
400-620-8038 / 800-819-0121 |
Hong Kong: |
+852-3018-6771 |
To access international Toll Free Dial-In numbers:
Hong Kong: |
800-906-601 |
United States: |
+1-866-519-4004 |
Please ask to be connected to 2Q2015 China Ming Yang Wind Power Group Limited 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 dialling:
United States: |
+1-855-452-5696 |
International: |
+61-2-8199-0299 |
Mainland China: |
400-602-2065 / 400-632-2162 / 800-870-0206 / 800-870-0205 |
Hong Kong: |
800-963-117 |
Passcode: |
9018-9052 |
The replay will be archived for seven days following the earnings announcement until June 3, 2015.
About China Ming Yang Wind Power Group Limited
China Ming Yang Wind Power Group Limited (NYSE: MY) is a leading wind energy solution provider in China, focusing on designing, manufacturing, selling and servicing megawatt-class wind turbines, including cutting-edge SCD (Super Compact Drive) solutions, and providing post-sales value-added maintenance and technology upgrade services to wind farm owners. 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 2014.
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
+86-760-2813-8898
+1-646-454-8640
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 period ended June 30, |
|||||
2014 |
2015 |
2015 |
|||
RMB '000 |
RMB '000 |
USD '000 |
|||
Revenue |
935,648 |
1,563,177 |
252,125 |
||
Cost of sales |
(812,170) |
(1,317,302) |
(212,468) |
||
Gross profit |
123,478 |
245,875 |
39,657 |
||
Other income |
9,813 |
5,917 |
954 |
||
Selling and distribution expenses |
(59,141) |
(53,935) |
(8,699) |
||
Administrative expenses |
(37,519) |
(108,377) |
(17,480) |
||
Research and development expenses |
(22,166) |
(22,238) |
(3,587) |
||
Profit from operations |
14,465 |
67,242 |
10,845 |
||
Finance income |
43,622 |
38,542 |
6,216 |
||
Finance expenses |
(42,852) |
(26,867) |
(4,333) |
||
Net finance income |
770 |
11,675 |
1,883 |
||
Share of loss of associates |
(95) |
(349) |
(56) |
||
Profit before income tax |
15,140 |
78,568 |
12,672 |
||
Income tax expense |
(3,427) |
(10,521) |
(1,697) |
||
Profit for the period |
11,713 |
68,047 |
10,975 |
||
Other comprehensive (loss) / income for the period |
|||||
Foreign operations - foreign currency translation differences |
117 |
(2,895) |
(467) |
||
Total comprehensive income for the period |
11,830 |
65,152 |
10,508 |
||
Profit attributable to: |
|||||
Shareholders of the Company |
13,446 |
68,706 |
11,081 |
||
Non-controlling interests |
(1,733) |
(659) |
(106) |
||
11,713 |
68,047 |
10,975 |
|||
Basic earnings per share(1) |
0.11 |
0.50 |
0.08 |
||
Diluted earnings per share(2) |
0.11 |
0.49 |
0.08 |
||
Total comprehensive income attributable to: |
|||||
Shareholders of the Company |
13,563 |
65,811 |
10,614 |
||
Non-controlling interests |
(1,733) |
(659) |
(106) |
||
11,830 |
65,152 |
10,508 |
|||
__________________________________ |
|||||
(1) The calculation of the basic earnings per share is based on the profit attributable to the shareholders of the Company |
|||||
(2) The calculation of diluted earnings per share is based on the profit attributable to shareholders of the Company and |
|||||
(3) The reconciliation of adjusted gross margin (to exclude warranty provision from cost of sales) is as below: |
|||||
For the three months period ended June 30, |
|||||
2014 |
2015 |
2015 |
|||
RMB'000 |
RMB'000 |
USD'000 |
|||
Revenue (A) |
935,648 |
1,563,177 |
252,125 |
||
Cost of sales (B) |
(812,170) |
(1,317,302) |
(212,468) |
||
Less: warranty provision |
30,216 |
48,797 |
7,870 |
||
Cost of sales excluding warranty provision (C) |
(781,954) |
(1,268,505) |
(204,598) |
||
Gross margin [D=(A+B)/A] |
13.2% |
15.7% |
15.7% |
||
Adjusted gross margin[E=(A+C)/A] |
16.4% |
18.9% |
18.9% |
CHINA MING YANG WIND POWER GROUP LIMITED |
|||||
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|||||
(Amounts expressed in thousands) |
|||||
As of |
As of |
||||
December 31, 2014 |
June 30, 2015 |
||||
RMB '000 |
RMB '000 |
USD '000 |
|||
Assets |
|||||
Non-current assets |
|||||
Property, plant and equipment |
781,224 |
910,803 |
146,904 |
||
Intangible assets |
76,426 |
591,624 |
95,423 |
||
Lease prepayments |
344,563 |
336,649 |
54,298 |
||
Investments in associates |
69,936 |
70,197 |
11,322 |
||
Investments in joint ventures |
867,848 |
963,552 |
155,412 |
||
Other investment |
30,000 |
30,000 |
4,839 |
||
Trade and other receivables |
1,076,040 |
1,045,449 |
168,621 |
||
Prepayments |
120,842 |
148,244 |
23,910 |
||
Deferred tax assets |
222,343 |
243,353 |
39,250 |
||
Total non-current assets |
3,589,222 |
4,339,871 |
699,979 |
||
Current assets |
|||||
Inventories |
2,015,820 |
2,305,745 |
371,894 |
||
Trade and other receivables |
4,454,126 |
6,247,787 |
1,007,708 |
||
Prepayments |
104,104 |
113,124 |
18,246 |
||
Other current assets |
15,015 |
19,880 |
3,206 |
||
Pledged bank deposits |
306,883 |
416,058 |
67,106 |
||
Cash and cash equivalents |
2,169,810 |
990,735 |
159,796 |
||
Total current assets |
9,065,758 |
10,093,329 |
1,627,956 |
||
Total assets |
12,654,980 |
14,433,200 |
2,327,935 |
||
Equity |
|||||
Issued share capital |
864 |
1,050 |
169 |
||
Reserve for own shares |
(39,386) |
(39,386) |
(6,353) |
||
Capital reserves |
3,721,039 |
4,330,433 |
698,458 |
||
Translation reserves |
(78,704) |
(79,357) |
(12,799) |
||
Accumulated losses |
(173,829) |
(64,368) |
(10,382) |
||
Total equity attributable to shareholders of the Company |
3,429,984 |
4,148,372 |
669,093 |
||
Non-controlling interests |
48,169 |
53,236 |
8,586 |
||
Total equity |
3,478,153 |
4,201,608 |
677,679 |
||
Liabilities |
|||||
Non-current liabilities |
|||||
Deferred tax liabilities |
13,961 |
19,111 |
3,082 |
||
Provisions |
198,949 |
248,618 |
40,100 |
||
Trade and other payables |
298,410 |
311,201 |
50,194 |
||
Deferred income |
309,398 |
327,474 |
52,818 |
||
Total non-current liabilities |
820,718 |
906,404 |
146,194 |
||
Current liabilities |
|||||
Bond payable |
999,749 |
- |
- |
||
Trade and other payables |
5,649,670 |
7,117,671 |
1,148,012 |
||
Short-term bank loans |
551,450 |
983,694 |
158,660 |
||
Income tax payable |
44,309 |
95,333 |
15,376 |
||
Provisions |
301,966 |
359,012 |
57,905 |
||
Deferred income |
67,652 |
76,932 |
12,408 |
||
Deferred revenue |
741,313 |
692,546 |
111,701 |
||
Total current liabilities |
8,356,109 |
9,325,188 |
1,504,062 |
||
Total liabilities |
9,176,827 |
10,231,592 |
1,650,256 |
||
Total equity and liabilities |
12,654,980 |
14,433,200 |
2,327,935 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/my-reports-second-quarter-2015-unaudited-results-300129877.html