China Ming Yang Wind Power Group Limited (Ming Yang) has announced its unaudited financial results for the second quarter ended June 30, 2013. Revenue in the second quarter of 2013 was RMB 537.4 million (US$ 87.6 million), representing a decrease of 32.7% from RMB 798.0 million in the corresponding period in 2012.
Wind turbines generators (WTGs) for which revenue was recognized amounted to an equivalent wind power project output of 161MW, or 90 units of 1.5MW WTGs and 13 units of 2.0MW WTGs compared to 198MW, or 99 units of 1.5MW WTGs and 17 units of 2.5-3.0MW WTGs for the corresponding period in 2012. The decrease in revenue in the second quarter was primarily due to the decrease in the number of WTGs commissioned, with lower average selling price, or ASP, recognized for WTGs commissioned compared to the corresponding period in 2012. Gross profit in the second quarter of 2013 was RMB 66.1 million (US$ 10.8 million), representing a decrease of 43.0% from RMB 115.9 million for the corresponding period in 2012. Gross margin in the second quarter of 2013 was 12.29%, compared to 14.52% for the corresponding period in 2012. Selling and distribution expenses were RMB 34.3 million (US$ 5.6 million) for the second quarter of 2013, compared to RMB 24.5 million for the corresponding period in 2012, representing an increase of 40.0%. The increase was primarily due to higher marketing and bidding expenses incurred in the second quarter of 2013. Loss before income tax expense was RMB 91.0 million (US$ 14.8 million) for the second quarter of 2013, compared to a loss before income tax expense of RMB 19.8 million in the corresponding period of 2012. Total comprehensive loss for the second quarter of 2013 was RMB 85.9 million (US$ 14.0 million), compared to total comprehensive loss of RMB 27.5 million in the corresponding period of 2012. During the second quarter of 2013, the Company entered into sales contracts for wind power projects with a total output of 396.0MW, representing 264 units of 1.5MW WTGs. As of June 30, 2013, the Company's order backlog amounted to 2.4GW, representing 1,240 units of 1.5MW WTGs, 167 units of 2.0MW WTGs, 67 units of 2.5-3.0MW SCD WTGs and 1 unit of 6.0MW SCD WTG.
