China Ming Yang Wind (NYSE:MY)

Preliminary First Quarter of 2012 Selected Unaudited Financial Results

The Company's financial statements for the first quarter of 2012 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 preliminary results provided below.

• Revenue for the first quarter of 2012 is expected to be between RMB400.0 million (US$63.5 million) and RMB410.0 million (US$65.1 million), a decline of approximately 70% year-over-year
•  Gross margin in the first quarter of 2012 is expected to be approximately 10%.
• As a result, the Company expects to incur a total comprehensive loss for the first quarter of 2012 between RMB110.0 million (US$17.5 million) and RMB120.0 million (US$19.1 million).

Fourth Quarter 2011 Financial Highlights:

• Total wind turbine generators ("WTGs") commissioned amounted to an equivalent wind power project output of 250.5MW, or 167 units of 1.5MW WTGs, representing a decrease of 34.0% compared to Q4 2010.
• Total revenue was RMB808.3 million (US$128.4 million), representing a decrease of 52.8% compared to Q4 2010.
• Gross profit was RMB56.6 million (US$9.0 million), representing a decrease of 85.2% compared to Q4 2010. Gross margin was 7.0% for Q4 2011, compared to 22.3% in Q4 2010.
• Total comprehensive loss was RMB128.7 million (US$20.5 million), compared to a total comprehensive income of RMB212.2 million in Q4 2010.
• Basic and diluted loss per share was RMB0.96 (US$0.15), compared to basic and diluted earnings per share of RMB1.83 for Q4 2010.

"2011 was a particularly challenging year for the wind power industry in China, highlighted by lower demand in the wake of significant growth from the previous years, and as a result the industry has shifted its focus from size and speed to quality and efficiency," commented Mr. Chuanwei Zhang, Chairman and CEO of Ming Yang. "Against this industrial slow-down, I am pleased to report that Ming Yang has continued to see sustained demand through the full year 2011, and has also been able to reach its targeted gross margin on an annual basis, despite the previously announced delays in revenue recognition and overall market softness impacting performance and results in the fourth quarter."

"The Company has further strengthened and enhanced its market position." Mr. Chuanwei Zhang continued, "According to recent industry reports, Ming Yang was among the top four China-based WTG manufacturers and globally among the top ten WTG manufacturers in 2011, based on MWs of its newly installed WTGs in 2011. This was largely contributable to our focus on product quality, research and development, our innovative business model and our cost competitiveness, as well as the successful implementation of our client and market development strategies."

"Looking ahead, we believe that the wind power industry will maintain solid growth over the long term, and will continue to focus on quality and efficiency, despite the continued challenges we expect in the industry. As ofDecember 31, 2011, our order backlog amounted to 2.1 GW and cumulative signed orders since our inception amounted to 5.0 GW. As our track record shows, we believe Ming Yang is well-positioned to leverage on its core strengths in quality and innovation to capture market opportunities, enhance its market leadership and grow its market share. We have already seen the average selling price ("ASP") of WTGs begin to recover during the first quarter of 2012, which we believe will partially ease the pressure on our gross margin in the ensuing quarters."

Mr. Zhang added, "Ming Yang has also initiated an important step in international market expansion with theBulgaria projects. We believe that, with the advantages in cost competitiveness and innovative business solutions,Ming Yang's international market development will further enhance its leadership in the industry in the future. Our new research and development center in North Carolina is also expected to provide solutions for us to lower the cost of energy and further increase reliability, making our WTGs more competitive and further powering our competitiveness in both China and the international markets."

Preliminary Fourth Quarter 2011 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.

Third Quarter 2011 Results

• Revenue in the third quarter of 2011 was RMB1,904.8 million (US$298.7 million). This compares with RMB1,486.0 million in the corresponding period in 2010.
• Basic and diluted earnings per share for the third quarter of 2011 was RMB0.82 (US$0.13), compared to RMB1.70 in the corresponding period in 2010.

Second Quarter 2011 Results

• Revenue in the second quarter of 2011 was RMB1,405.5 million (US$217.4 million), representing an increase of 7.2% from RMB1,310.5 million in the corresponding period in 2010.
• For the second quarter of 2011, basic and diluted earnings per ordinary share were RMB0.67 (US$0.10) compared to basic and diluted earnings per ordinary share of RMB1.61 (US$0.24) for the corresponding period in 2010.

"The development of China's wind power industry has entered a crucial phase, where its focus is shifting from size and speed to quality and efficiency. In the past three years, Ming Yang has laid a solid foundation by focusing on quality product development, R&D, innovative business models, further integration of high-end supply chain, and development of wind and solar energy storage solutions, and mostly importantly our active participation in the development of off-shore wind power in China. As a result, Ming Yang is not beset by the numerous problems affecting many wind turbine manufacturers in China such as excessive development, quality issues, lack of LVRT technology integration and most importantly effective cost management. I believe Ming Yang is well placed to continue to take advantage of the opportunities present in the Chinese market, and to grow our market share in 2011 and beyond. "

ZHONGSHAN, China, August 16, 2011 /PRNewswire-Asia/ -- China Ming Yang Wind Power Limited ("Ming Yang" or the "Company") (NYSE: MY), a leading wind turbine manufacturer in China, today announced that its Board of Directors has approved a share repurchase program, effective immediately.

Under the program, Ming Yang is authorized to repurchase up to US$50 million worth of issued and outstanding American Depositary Shares ("ADSs") in the open market or in negotiated transactions, from time to time, depending on market conditions and other factors as well as subject to relevant rules under Untied States securities regulations. The share repurchase program will be funded by the Company's available working capital. As of June 30, 2011, the Company had cash and cash equivalents of approximately US$265.6 million.

"This program reaffirms our confidence in the long-term growth of the Company," said Chuanwei Zhang, Chairman and CEO of Ming Yang. "We believe our ADSs are currently undervalued, and the share repurchase program not only represents a good investment for our company, but also demonstrates our commitment to increase shareholder value."

ZHONGSHAN, China, July 25, 2011 /PRNewswire-Asia/ -- China Ming Yang Wind Power Group Limited ("Ming Yang" or the "Company") (NYSE:MY - News), a leading wind turbine manufacturer in China, today announced that it has signed a engineering, procurement and construction ("EPC") contract (the "Contract") with Guangdong Yudean Xuwen Wind Power Co., Ltd., a subsidiary of Guangdong Yudean Group Co. Ltd. ("Yudean") for a 48MW offshore wind power project in Zhanjiang, Guangdong. The project has already received the approval from the Guangdong provincial development and reform committee ("GDRC"). Ming Yang will supply the following under the Contract:

ZHONGSHAN, China, May 31, 2011 /PRNewswire-Asia/ -- China Ming Yang Wind Power Group Limited ("Ming Yang" or the "Company") (NYSE:MY), a leading wind turbine manufacturer in China, today announced it has withdrawn the registration statement on Form F-1 previously filed with the Securities and Exchange Commission relating to the proposed public offering of up to 15,000,000 American depositary shares ("ADS") of the Company by certain selling shareholders.

"We believe the selling shareholders decision to cancel the proposed offering demonstrates their view that the current share price is significantly undervalued and does not reflect the fundamentals of our business and our future growth prospects," said Chuanwei Zhang, Chairman and Chief Executive Officer of Ming Yang.

In light of current market conditions, Ming Yang's board of directors has approved that the Company consider implementing a share repurchase program. Such a share repurchase program may include the repurchase by Ming Yang of ordinary shares or ADSs of the Company in privately negotiated transactions or in the open market from time to time depending on market conditions and other factors as well as subject to relevant rules under the United States securities regulations. The Company intends to announce the size and other terms of the program once finalized and approved by the board.

"Ming Yang has delivered solid financial performance in 2010 and the first quarter of 2011 and we fully expect to meet our expected revenue targets for 2011," said Mr. Zhang. "The decision to explore a share repurchase program by the Company reflects our confidence in our ability to successfully execute our business strategies and deliver value to our shareholders."

Mr. Zhang added, "Subject to Company policy and securities law compliance, I also intend to buy additional shares in the Company to demonstrate my confidence in the Company."

Fourth Quarter Results:

• Total revenue was RMB1,713.3 million (US$259.6 million), representing increases of 15.3% over Q3 2010 and 403.9% over Q4 2009.
• Gross profit was RMB382.9 million (US$58.0 million), representing increases of 54.0% over Q3 2010 and 818.2% over Q4 2009.  
• Gross margin for the fourth quarter was 22.3% compared to 16.7% in Q3 2010 and 12.3% in Q4 2009.
• Total comprehensive income for the period was RMB212.2 million (US$32.2 million), an increase of 19.7% over Q3 2010. We incurred comprehensive loss in Q4 2009.
• Basic and diluted earnings per ordinary share were RMB1.83 (US$0.28) compared to basic and diluted earnings per ordinary share of RMB1.70 for Q3 2010 and basic and diluted loss per ordinary share of RMB0.90 for Q4 2009.

Full Year 2010 Financial Highlights

• Total WTGs commissioned were 802 units, or 1,203.0 MW, representing an increase of 427.6% over 2009.
• Total revenue was RMB5,517.8 million (US$836.0 million), an increase of 370.5% over 2009.
• Gross profit was RMB1,087.4 million (US$164.8 million), an increase of 1330.8% over 2009.  Gross margin for the full year 2010 was 19.7% compared to 6.5% in 2009.
• Total comprehensive income for the year was RMB690.0 million (US$104.5 million), compared with a total comprehensive loss of RMB223.1 million in 2009.
• Basic and diluted earnings per ordinary share were RMB6.61 (US$1.00) compared to basic and diluted loss per ordinary share of RMB2.21 in 2009.
  

Mr. Chuanwei Zhang, Chairman and CEO of Ming Yang, commented: "I am extremely pleased with our continued strong performance in the fourth quarter. We recognized revenues from 253 units of 1.5 MW WTGs in the quarter. While pricing across the industry continues to be challenging, we worked hard to reduce costs and successfully increased our gross margin to 22.3% for the quarter. In addition, our order backlog provides us with great confidence that we are on track to fulfill our expected sales targets for 2011."

Based on current market and operating conditions, estimated production capacity and forecasted customer demand, the Company reiterates its target to achieve revenue recognition of an estimated 1,400 units of 1.5MW WTGs and 100 units of 3.0MW SCD WTGs in 2011.

ZHONGSHAN, China, Feb. 1, 2011 /PRNewswire-Asia/ -- China Ming Yang Wind Power announced that it has won a total of 1.1GW new bids in January 2011, including 200MW for its 2.5/3.0MW Super Compact Drive ("SCD") wind turbine generators in both onshore and offshore tenders.

Ming Yang reports that it won bids in all tenders in which it participated, with the aggregate winning bids in excess of 20% of the amounts available for tender. Over 75% of the new bids won were from the top 5 national wind farm operators, including Huandian Power International, Huaneng Power International, Datang International Power Generation, Datang New Energy and China Longyuan Power, further improving its customer mix among national and provincial operators.

China Ming Yang Wind Power Group Limited set to commence IPO.

Company Snapshot:

Wind turbine manufacturer in China

Industry Snapshot:

• According to the Renewable Energy Law, which became effective on January 1, 2006, the renewable energy industry, which includes the wind power industry, is subject to regulations of the national energy authority. Pursuant to the Renewable Energy Law, the PRC government encourages the development and utilization of renewable energy resources, including the funding of scientific and technological research in renewable energy applications and the industrialization of the renewable energy industry.
  
• China has adopted the policy of encouraging and supporting wind power generation. The Electric Power Law of the PRC implemented in 1996 set out the State’s encouragement and support on the utilization of renewable energy and clean energy, including wind energy, for power generation. The newly revised Law of the PRC on the Prevention and Control of Atmospheric Pollution promulgated in 2000 also encouraged the development and utilization of clean energy such as solar, wind and water energy.
  
• Pursuant to the Renewable Energy Law, the national energy authority is tasked with drafting medium to long-term targets for renewable energy output. Under the NDRC Plan, the PRC government aims to achieve 10% renewable energy consumption as a percentage of total energy consumption by 2010 and 15% by 2020, an increase from 7.5% in 2005. The NDRC Plan calls for increasing the total installed wind power capacity to 5GW by 2010 and 30GW by 2020.

Use Of proceeds:

We intend to use approximately $9.0 million of our net proceeds from this offering for the installation of three production lines (production lines 2, 3 and 4) in the Evergreen Product facility that we are in the process of completing. We expect production line 2 to be installed and begin operating on a large scale by February 2011. We plan to begin installing production lines 3 and 4 in fiscal year 2011 and to utilize these production lines for production of Evergreen Products beginning in November 2011 and April 2012, respectively. We intend to use the remaining net proceeds from this offering for working capital and other general corporate purposes.

Underwriter(s):

• Morgan Stanley & Co. International plc
• Credit Suisse Securities (USA) LLC
• Merrill Lynch, Pierce, Fenner & Smith

Proposed maximum offering price: $16.00

Post IPO Share Calculation: (Using a 1 to 1 Ordinary to ADS conversion ratio).

• 100,000,000: Pre IPO fully diluted share count used in EPS calculation. 
•   25,000,000: Newly issued ADS shares 
•     3,750,000: Over-allotments ADS Shares

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 1 to 1:  128,750,000

Financial Snapshot:

We incurred losses in the amount of RMB22.6 million, RMB499.7 million and RMB223.1 million (US$32.9 million) in 2007, 2008 and 2009, respectively. We became profitable beginning in the first quarter of 2010 and generated a profit in the amount of RMB300.5 million (US$44.3 million) in the first six months of 2010.