China Ming Yang Wind Power Group Limited (MY) Q4 2010 Earnings Conference Call 9 March 2011, 8:00 AM ET Executives Calvin Lau - Director - IR Chuanwei Zhang - Chairman, CEO Manfred Loong - CFO Analysts Paul Clegg - Mizuho Securities Boris Kan – JPMorgan Edward Chun - Clairvoyance Capital Pey Yap - Morgan Stanley Edwin Pang - Credit Suisse Laurent Wong - Merrill Lynch Presentation Operator
Further information regarding these risks and other risks, 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 your Director of Investor Relations, Calvin Lau. Please proceed.Calvin Lau Thank you, Chanelle, and thank you, everybody, for joining us today for China Ming Yang Wind Power's Fourth Quarter and Full Year 2010 Financial Results Conference Call. The fourth quarter and full year 2010 earnings release was issued earlier today and is available on the Company's website at www.mywind.com.cn. We have already provided supplemental presentations -- presentation material for today's earnings call, which can also be found on our IR section of the website. I hope you've all had the chance to review by now. On the call today from China Ming Yang Wind Power are Mr. Zhang Chuanwei, Chairman and Chief Executive Officer; and also Chief Financial Officer, Mr. Manfred Loong. And in the call today, we'll have Mr. Zhang discussing business and operational developments. Then, Mr. Loong will take you through a discussion of the Company's financial performance. After that, we'll open up the floor to questions from the audience. And with -- I would like now to -- like to turn the call over to Mr. Zhang. Please proceed. Chuanwei Zhang (interpreted) Ladies and gentlemen, I'm Zhang Chuanwei, Chairman and CEO of China Ming Yang Wind Power Group Limited. Today, we are pleased to announced Ming Yang's fourth-quarter and full-year earnings for 2010. We have achieved and exceeded our operational targets this quarter, but before I provide a detailed update of our results, I would like to take this opportunity to share with you some of the latest developments in China's wind power industry.
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.
Ming Yang performed very well this quarter. We successfully recognized the revenues of 802 units, which exceeded our internal target. While we continue to experience price decreases per unit, we achieved a gross profit margin of 22.3% in the fourth quarter.Read the rest of this transcript for free on seekingalpha.com