China Ming Yang Wind Power Group Ltd (MY)

Q1 2011 Earnings Conference Call

10 May 2011, 8:00 AM ET


Calvin Lau - Director of IR

Chuanwei Zhang - Chairman of the Board, CEO

Manfred Loong – CFO


Paul Clegg - Mizuho Securities USA

Rob Stone - Cowan & Co

Sunil Gupta - Morgan Stanley

Edward Chan - Clairvoyance Capital

Jim Bao - Yiheng Capital



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

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

This conference 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 factors, all of which are difficult to predict, and many of which are beyond MingYang's control, which may cause MingYang's actual results, performance or achievements to differ materially from those in the forward-looking statements.

Further information regarding these risks and other risks, uncertainties or factors, is included in MingYang's filings with the US Securities and Exchange Commission. MingYang 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. Our first quarter 2011 earnings press release has just been issued earlier today, and is now available on the Company's investor relations website at A set of presentation materials for Q1 2011 will also be available for download on our IR website on the webcast, and presentation section. I hope you will get the chance to actually review the material.

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

I would like to take this opportunity to ask everybody to ask questions in English only, for the benefit of our other listeners. We'll be translating the Chairman's remarks into English, where appropriate, using a professional translator.

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

Chuanwei Zhang

(interpreted) Good morning and good evening to some. I'm Chuanwei Zhang, Chairman and CEO of China MingYang Wind Power Group Limited. Today, I'm most pleased to announce MingYang's first quarter earnings results for 2011, as we, despite an increasingly competitive environment, are able to deliver a set of strong results for the first quarter, which underpins MingYang's outstanding market position, and execution capabilities.

Before I provide the highlights of our results, I would like to provide a brief update of the development in China's wind power industry.

Firstly, in light of China's energy demands, and the unfortunate events at the Fukushima nuclear plant in Japan, wind energy will contribute a higher proportion of China's energy requirements, because of its inherent advantages including safe and reliable proven technology, lower development costs and, more importantly, emission free. Hence, we believe wind power will take a larger share among new energy, and become an important energy solution for China.

Secondly, the Government has implemented a range of policies designed to support the development of wind power industry, and to facilitate the more systematic development of the industry, from focusing on scale only, to focusing on returns on investment. This will be achieved through the development of national grids, enhancing the compatibility of the grid, and the scale of development. To resolve the grid connection issue, the State Grid Corporation of China has started to revamp the infrastructure of the grid facility nationwide.

In addition, wind power equipment market is getting more concentrated, with more shares taken by the top five players. MingYang, as a top three listed wind turbine manufacturers, with its quality products, well developed value chain, leading technology, and research capabilities, proven business models, we are confident to maintain our leading position in the market competition.

Thirdly, offshore wind power development, and decentralized and distributed style clean energy total solution, will become a new catalyst for the wind power industry in China. Guangdong, Shandong, Hebei, Jiangsu provinces have already finished the planning for 10 gigawatts wind power projects.

Among them, Guangdong has granted MingYang the development rights to lead the SCD offshore wind power projects. MingYang will utilize this opportunity, together with SCD WTG's unique technology, cost advantage, offshore project service capabilities, and support capabilities, as well as innovative business models, to push forward offshore wind power development in the country, while enabling MingYang to become the leader in offshore wind power space.

Other than offshore projects, the wind power project development in the northern regions, to a certain extent, is limited by the grid issue, decentralized and distributed wind power projects will become a new catalyst. Decentralized wind power projects will focus on small scale, low voltage, close to consumers project, with direct connection to the grid.

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