China Ming Yang Wind Power Group Limited (MY)

Q3 2011 Earnings Conference Call

10 November 2011, 8:00 AM ET


Calvin Lau - Director - IR

Chuanwei Zhang - Chairman, CEO

Manfred Loong - CFO


Yan Gee - Mizuho Securities

Eva Hou - Morgan Stanley

Jun Li - ICBC International



Good morning and good evening, ladies and gentlemen. Welcome to the Third Quarter 2011 Ming Yang Wind Power Group Limited Earnings Conference Call. At this time, all participants are in 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 management's prepared remarks, there will be a question and answer session. This conference call contains forward looking statements. These statements constitute forward looking statements within the meaning of Section 21(e) 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, expect, anticipates, future, intends, plans, believes, estimates, targets, goals, strategy and similar statements.

Such statements are based upon management's current expectations and current market in operation conditioning and relate to events that involve known and unknown risk and 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 forward looking statements.

Future 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. We have issued our Third Quarter 2011 Earnings release just now. I hope you have a chance to actually review it. The presentation used for this call is also available on our website. We welcome you to ask questions later on.

In today's call, Mr. Zhang will discuss 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. Loong will brief you on the company's outlook and guidance. After that, we will open the floor to questions from the audience. I'd like to now turn the call over to Mr. Zhang. Please proceed.

Chuanwei Zhang

(interpreted) Ladies and gentlemen, good morning and good evening, everyone. I am Chuanwei Zhang, Chairman and CEO of China Ming Yang Wind Power Group Limited. Thank you for joining us in our results announcement for the Third Quarter of 2011. And I also want to thank you for your great support.

I'd like to take this opportunity to share some thoughts on the current situation of China's wind power industry. After that, I'd like to talk about what Ming Yang has achieved and the steps ahead we're going to take under such circumstances.

Looking at the industry, on the whole, we can see that the Chinese government's very determined to wind power development. China has very stable wind power policies and very specific goals. Meanwhile, we can see that the wind industry has entered into a period of restructuring.

The symbol of the industry restructuring is that the focus changed from speed and size to quality and efficiency. From quantitative to qualitative. Meanwhile, China is very determined to maintain the growth of the industry, as well as its size. And we strongly believe that the China government, which shows support by policy and China would continue its role of a leader in the global wind industry.

In China's government 12th-five year plan is that we need to reach the 100 gigawatt goal. And during the five years from 2011 to the first half of 2013, the wind industry is going to experience further integration and transformation. And we believe that during that period, the industry growth rates will be 15 to 18 gigawatts per annum.

And for the rest three years, the growth rates will exceed 25 gigawatts per annum. Only by doing -- only by doing so that we can realize the goals put forward by the Chinese government, as well as China’s promise to the world that non fossil fuel energy consumption will reach 15% of all energy consumption.

In order to fully implement this initiative, China's government has setup standards for the wind turbine, as well as wind farms, tariff stabilizing mechanism. And also, China plans to build a couple of regional carbon trading platforms in areas such as northern China, eastern China, and southern China, as well as west, north.

And in this way, China can go CDM exchange platform so that China can maximize capital resources to boost China's wind power growth. Meanwhile, to ensure the successful transformation of the wind power industry from speed and size to quality and efficiency.

We can see that the Chinese government has taken -- implemented two initiatives to ensure the successful growth of China's wind industry, first of all, continued support in the areas with rich wind resources, such as areas in the northwest, and continued effort on building grid transmission network.

Meanwhile, it also continues strategy development in the coastal areas. And as well as offshore wind project. We can see that in the next five years with these two large scale initiatives, China's wind industry would have a large scale of development and China will also implement this initiative systemically.

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