China Ming Yang Wind Power Group Limited (MY)

Q2 2011 Earnings Call

15 August 2011, 09:00 PM


Calvin Lau - IR Director

Chuanwei Zhang - Chairman of the Board and CEO

Manfred Loong - CFO


Paul Clegg - Mizuho Securities

Echo He - Maxim Group

Yang Song - Credit Suisse

Keith Li – CIMB

Edward Chun - Clairvoyance Capital

Eva Hu - Morgan Stanley



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Good morning and good evening, ladies and gentlemen. Welcome to the second quarter 2011 Ming Yang Wind Power Group Limited earnings conference call. At this time, all participants are in a listen-only mode.

With us today are Mr. Chuanwei Zhang, Chairman and CEO; Mr. Manfred Loong, CFO; and Mr. Calvin Lau, Director of Investor Relations. After the management's prepared remarks there will be a question and answer session.

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This conference call 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 US Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, targets, goals, 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, or 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.

Further information regarding these risks and other risks and uncertainties or factors is included in Ming Yang's filings with the US Securities and Exchange Commission. Ming Yang does not undertake any obligation to update any forward-looking statements as a result of new information, future events, or otherwise, except as required under applicable law.

I would now like to turn the call over to Calvin Lau, Director of Investor Relations. Mr. Lau, please proceed.

Calvin Lau

Thank you, operator. And thank you for joining us today, and apologies for the slight delay in starting call. Actually, in fact, we have a full team on the call today. We just mentioned that our Chairman and CEO, Mr. Chuanwei Zhang, Mr. Manfred Loong, our CFO, Mr. Cao Renjing, our CTO, and also myself will be on call to answer your questions later.

And our second quarter 2011 earnings press release has just crossed the wire and will be available on our website at very soon, as well as together with the second quarter earnings presentation. And I hope you have the chance to quickly review figures and to -- welcome to ask us questions later on.

In today's call, Mr. Zhang will actually be discussing the latest business and operational developments of Ming Yang; and Mr. Loong will walk you through the Company's financial performance for the quarter; and then Mr. Zhang will brief you on the Company's outlook and guidance; after that, we will open the floor to questions from the audience.

I would like to now turn the call over to Mr. Zhang. Please proceed.

Chuanwei Zhang

(interpreted) Good morning and good evening, everyone. I'm Chuanwei Zhang, Chairman and CEO of China Ming Yang Wind Power Group Limited. Thank you for joining us in the results announcement for the second quarter 2011. Before that, I'd like to brief you up our current situation of the wind power industry in China.

According to the development planning of new energy to be released, which is part of the Chinese Government 12th five-year plan, wind power will be of strategic importance to the energy development. The scale of wind-power development will be enhanced and electricity tariff mechanism will be improved.

After raising a tariff off-grid connected photovoltaic power, it is expected that the Government will show support to the pricing mechanism of offshore wind power to stimulate another round of development of offshore wind power.

Additionally, there will be a new strategic planning of the wind market; a transition from the concentrated development of the three regions of North Eastern, North Western, and North China to the synchronous development of grand bases, areas with most wind speed offshore wind power and distributed clean energy. Overall, China's wind power industry has entered a crucial period and its focus is shifting from speed and size to quality and efficiency.

The development of China's wind power industry is entering a steadier growth phase. In May, the National Energy Administration hosted the Wind Power Development Conference in Nantong, Jiangsu Province, and the target installed capacity of wind power during the 12th five-year plan is set to be more than 100 gigawatts.

According to the National Energy Administration, 38.6 billion kilowatts of wind power was generated by wind power in China in the first six months of 2011; a year-on-year increase of 61%, which exhibited the fastest growth among all the energy sources in China.

The Chinese Government has laid down a series of industrial standards, aiming to emphasize product quality and efficiency, instead of only blind capacity expansion. We believe higher industry standards and barriers of entry will favor the more competitive players.

Ming Yang's development strategy is put product quality and efficiency first, with the focus on technology and product reliability. Our revenue recognition is based on-grid connection, and we strive for stable and healthy development. With Ming Yang's unique competitive advantages, we believe that our market share can be further increased during industry consolidation.

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