China Ming Yang books USD-43m profit in 2015

China Ming Yang Wind Power Group Ltd (NYSE:MY) said Monday its attributable net profit for 2015 dropped by some 21.6% year-on-year to CNY 277.8 million (USD 42.9m/EUR 37.9m) after higher costs partially offset revenue growth.

The wind turbine maker saw its total comprehensive income go down to CNY 298.6 million from CNY 350 million a year ago.

The Chinese company’s 2015 gross profit increased to CNY 1.1 billion from CNY 813.1 million with its gross margin growing to 16.2% from 13.8% in 2014. On an adjusted basis, gross margin was 19.5% and 16.9% in 2015 and 2014, respectively.

Ming Yang’s consolidated revenues ballooned to CNY 6.8 billion from CNY 5.87 billion, as the volume of sold turbines and the average selling prices (ASP) were higher than in 2014. In total, the firm recognised revenues for 2,032.5 MW of commissioned wind turbine generators (WTGs), including 507 units of 1.5-MW and 636 pieces of 2-MW machines. In 2014, revenues came from 1,852 MW of turbine sales.

Ming Yang's order backlog at the end of December 2015 stood at 3.7 GW.

“Recently, a number of new supportive policies have been rolled out, which we believe will lead to an improvement in curtailment and subsidy in the future,” chairman and CEO, Chuanwei Zhang, said. Looking ahead, the company will seek to develop technologies that can yield a higher wind output at reduced costs.

As for the fourth quarter of 2015 alone, the Chinese wind power firm’s bottom line result slipped to CNY 77.5 million from CNY 84 million a year ago. With 626.5 MW of WTGs sold, October-December revenues grew to CNY 2.16 billion from nearly CNY 2 billion a year earlier.

(CNY 1.0 = USD 0.154/EUR 0.136)

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