Chinese wind turbine manufacturer the Ming Yang Wind Power Group (MY Wind) has recorded revenues of RMB1,405m ($217.4m) for the second quarter of 2011, a 7.2 per cent increase on the same period last year when the figure was RMB 1,310m ($205m). Gross profit for three months was RMB267m ($41.3m), a 7.3 per cent increase compared with the second quarter of 2010 level of RMB249.1m ($39m).
Operating expenses for the company increased significantly to ten per cent of revenue from 5.8 per cent in the same period last year. Administration expenses rose particularly sharply, totalling RMB58.4m ($9m) in the quarter, a 125.7 per cent increase from last year's spend of RMB25.9m ($4m). The company also increased its research and development investments by 211 per cent as it spent RMB27m ($4.2m) in the quarter compared to RMB8.7m ($1.3m) in the second quarter of 2010.
Net profit before taxation was down 27.3 per cent in the quarter at RMB107m ($16.7m), compared with 2010's level of RMB148m ($23m), despite increasing revenue and orders. During the quarter MY Wind was commissioned to supply turbines with a combined capacity of 367.5MW, up 34.6 per cent on the second quarter in 2010.
Chuanwei Zhang, chairman and CEO of MY Wind, said, 'We are pleased to report solid results this quarter amidst a challenging macro environment. Our 1.5MW wind turbine generators [WTGs] continued to see strong demand. We recognised revenue from WTGs commissioned amounted to an equivalent wind power projects output of 367.5MW, or 245 units of 1.5MW WTGs in the quarter, representing a 34.6 per cent year-over-year growth. The gaining of new sales contract with a total output of 379.5MW, or 253 units of 1.5MW WTGs and 18 units of 2.5/3.0MW SCD WTGs during the quarter further underlined the high demand of our WTGs.'
He added, 'Despite the pricing environment in the industry, we were able to maintain our gross margin at 19 per cent during the quarter compared to the same period last year, which demonstrates the success of our continuous cost optimisation initiatives.'