China Ming Yang profit plunges 94.4% Y/Y in Q3 2012

Nov 16, 2012 - Wind turbine maker China Ming Yang Wind Power Group Ltd (NYSE:MY) saw its net profit slump 94.4% year-on-year in the third quarter of 2012, down to CNY 4.9 million (USD 786,000/EUR 615,000), as weaker demand in China cut revenues.

Basic and diluted earnings per share fell to CNY 0.03 from CNY 0.82 in the same quarter last year, the company said on Friday. Gross margin improved to 17.4% from 16%, thanks to higher margin sales contracts recognised in the current-year quarter. Revenue tumbled 58.6% to CNY 787.8 million. The company recognised revenues for 152 units totalling 228 MW in the reporting period, a year-on-year decline of 58.9% in capacity terms.

Ming Yang secured 302 MW of orders during the quarter and at the end of September its order backlog stood at 2.2 GW.

Chairman and chief executive Chuanwei Zhang said that the company's financial performance had continued to improve quarter-over-quarter, highlighting increases in gross margin and operating margin of 2.9 and 3 percentage points, respectively. He also hailed the 302 MW order intake including 123 units for the company's new 2-MW device.

(CNY 1.0 = USD 0.160/EUR 0.126)

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