China Ming Yang Wind Power Group Limited recorded 1.486 billion Chinese yuan ($222.1 million) in revenues for the third quarter, a 543 percent increase from 231.2 million yuan earned in the same period in 2009.
The company attributed this increase to the rise of sales of wind turbines, from 29 units in the previous year to 239 this year.
Ming Yang also experienced an 862 percent year-over-year growth in gross profits, which soared from 25.8 million to 248.7 million yuan. Gross profit went up to 16.7 percent from 11.2 percent in the previous year.
Average contract selling price dropped during the quarter, but this was partially offset by lower manufacturing cost per wind turbine caused by cost-control efforts on the company’s supply chain.
The company reported basic and diluted earnings per ordinary share of 1.70 yuan, up from basic and diluted loss per share of 0.49 yuan.
Ming Yang incurred 29.7 million yuan in selling and distribution expenses, equivalent to a 13 percent increase from 26.2 million yuan incurred last year. This was due to higher transportation expenses out of delivering larger volumes of wind turbine shipments, partially compensated for by cheaper transportation cost per unit basis.
“This is Ming Yang’s first earnings announcement since our listing on the New York Stock Exchange and we are delighted with our strong performance this quarter,” said Chuanwei Zhang, chairman and chief executive of Ming Yang.
In the third quarter, the company signed a contract with China Guodian for the supply of 48 megawatts of wind turbines, which Ming Yang said is the first 3-MW offshore wind turbine purchase in China.
Ming Yang (NYSE:MY) also won a bid for 200 MW of government-authorized wind farm projects in Hami district, Xinjiang, representing one-tenth of the 2,000-MW capacity available for bidding.
The company expects generate revenues from the shipment of 800 units of its 1.5-MW turbines for its 2010 fiscal year. It also anticipates revenues from the delivery of an estimated 1,400 units of its 1.5-MW wind turbine and 100 units of its 300-MW wind turbine by 2011.
