China Ming Yang Wind Power Group Limited (NYSE: MY) (“Ming Yang”, or the “Company”), a leading and fast-growing wind turbine manufacturer in China, provided an update through a conference call with investors today on certain developments in the China wind power industry since Ming Yang’s ADSs began trading on the New York Stock Exchange on October 1, 2010 and their effect on the Company’s business.
The results of a national bidding process for four offshore wind farm concession projects in China with a total capacity of 1GW were announced on October 8, 2010. Ming Yang was one of the few qualified wind turbine manufacturers selected to be partnered with prospective bidders in the offshore wind power development projects in China. Although Ming Yang’s wind power development partners did not emerge as winning bidders of these projects, the Company provides the following updates:
* The bidding process affirmed that Ming Yang is one of the few qualified wind turbine manufacturers who are selected to partner with prospective bidders of offshore wind power development projects in China. Ming Yang was selected after a rigorous vetting process, taking into consideration its super compact drive (“SCD”) technology, cost advantages, the suitability of its products for the offshore wind resources relating to these projects and other competitive advantages.
* The national offshore wind farm concession bidding process was aimed at establishing benchmark on-grid tariffs as a reference point for subsequent offshore wind farm projects. Ming Yang believes there will be substantial future growth opportunities in the offshore wind farm sector and tariffs of many of the future projects may be determined on a negotiated basis with reference to these benchmark tariff levels.
* Ming Yang does not believe that its future financial results will be adversely affected by not participating in these four projects. As of the time of this update, Ming Yang has secured orders for 51 units of SCD turbines to be commissioned in 2011.
In addition, Ming Yang has signed offshore wind farm development agreements with the government of Rudong county, Jiangsu Province and two new energy subsidiaries of China Huadian Corporation (“Huadian”) and China Huaneng Group (“Huaneng”), two of China’s largest wind power developers, to develop offshore wind farms with 700 MW capacity in Rudong. Under these agreements, the Rudong government has granted Huadian and Ming Yang the right to develop offshore wind farms with 400 MW capacity and Huaneng and Ming Yang the right to develop offshore wind farms with 300 MW capacity, using Ming Yang’s 3.0 – 6.0MW SCD wind turbines.
Mr. Chuanwei Zhang, Chairman and CEO of Ming Yang, commented: “We have every confidence in our SCD turbine sales as we have already secured orders to date, and the offshore wind farm development agreements we have signed also provide high visibility on securing the balance of these budgeted sales volumes. Moreover, these SCD volumes account for just a small portion of our total wind turbine budgeted sales volumes in 2011.”
[mappress]
Source: prnewswire, October 14, 2010;