China has become a world leader in the wind power industry. Industry analysts from Global Wind Energy Council shows that China has increased their installation capacity, and accumulative installation capacity in 2010 reached 16.5 gigawatts and 40 gigawatts respectively, making China the world's number one in terms of wind power installation capacity.
In China’s twelfth five year plan, wind power is included as China's strategic, emergent energy industry, and we are likely to see continued, fast and steady growth in this industry. China has been promoting the development of wind power as a state policy, and the construction of the national grid, and the issues associated with the grid are gradually being resolved.
In Inner Mongolia and Jillin, where grid networks have been established, construction of large-scale grids have now been completed and opened. Large-scale wind power developments have also been launched in central, eastern and southern China where no grid systems were previously established.
Manufacturing in China's wind power industry has become more and more concentrated. The top five wind turbine manufacturers in China, including Ming Yang, currently account for over 60% of the domestic market. Competition among the top five wind turbine manufacturers have gradually switched from just the competition on pricing to a comprehensive competition in generating the latest wind turbine technology and focusing on product quality, electricity power quality, electricity generation capacity and the cost per kilowatt.We have seen the price of wind turbine units decrease steadily and the profitability of a business relies on a manufacture's ability to handle large-scale operations and integrate upstream capabilities to reduce supply chain costs. These are the strengths and the competitive advantages of Ming Yang. And because of this, we are confident that we will achieve a stable and high-growth profit margin for the year ahead. I will now go through the operating performance of Ming Yang in the fourth quarter of 2010.