China Ming Yang Wind Power Group Limited (MY) Q2 2011 Earnings Call 15 August 2011, 09:00 PM Executives Calvin Lau - IR Director Chuanwei Zhang - Chairman of the Board and CEO Manfred Loong - CFO Analysts Paul Clegg - Mizuho Securities Echo He - Maxim Group Yang Song - Credit Suisse Keith Li – CIMB Edward Chun - Clairvoyance Capital Eva Hu - Morgan Stanley Presentation Operator
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 ir.mywind.com.cn 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. Read the rest of this transcript for free on seekingalpha.com