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Investor FAQs
1.What does Ming Yang do?
2.What is Ming Yang’s ticker symbol and which exchange is it traded on?
3.When was Ming Yang’s initial public offering (IPO)?
4.What is the conversion rate of ordinary shares to ADS?
5.Who is Ming Yang’s depositary bank?
6.What is Ming Yang’s fiscal calendar?
7.What’s the growth strategy of the Company?
8.As SCD is a key growth driver, is the Company ready to sell and has it acquired the necessary documentation to distribute the product? Does the company have to pay any license fee for this product?
9.What is the strategic value of the framework cooperation agreement with the Municipal government of Ganzhou?
10.What is the trend of the price and cost per MW for 2011?
11.How does the Company expect the gross margin trending in 2011?
12.What is your revenue recognition policy? How do you book your revenue?
13.What does deferred revenue entail, is it equivalent to the contract sum to be recognized in the following quarter?
14.What is the Company’s progress on becoming a SOX 404 compliant company?
15.Who is Ming Yang’s independent accountant?
16.Does the Company pay dividend?
1.What does Ming Yang do?
 China Ming Yang Wind Power Group Limited (“Ming Yang”) is a leading and fast-growing wind turbine manufacturer in China, focusing on designing, manufacturing, selling and servicing megawatt-class wind turbines. Ming Yang produces advanced, highly adaptable wind turbines with high energy output and low energy production cost and provides customers with comprehensive post-sales services. Ming Yang cooperates with aerodyn Energiesysteme GmbH, one of the world's leading wind turbine design firms based in Germany, to develop wind turbines and share intellectual property rights. Ming Yang's key customers include the five largest state-owned power producers in China, with an aggregate installed capacity accounting for more than 5.5% of China's newly installed capacity in 2010.

2.What is Ming Yang’s ticker symbol and which exchange is it traded on?
 Ming Yang is traded on the New York Stock Exchange under the ticker “MY”.

3.When was Ming Yang’s initial public offering (IPO)?
 Ming Yang made its initial public offering on October 1, 2010 on the New York Stock Exchange.

4.What is the conversion rate of ordinary shares to ADS?
 One ADS represents one ordinary share.

5.Who is Ming Yang’s depositary bank?
 Citibank, N.A.

6.What is Ming Yang’s fiscal calendar?
 Ming Yang’s fiscal calendar begins on January 1 and ends on December 31.

7.What’s the growth strategy of the Company?
 

The Company intends to grow by:

  • Leveraging on technology and cost advantage to further expand market share;
  • Promoting technical innovation and integrated business models to maximize profitability;
  • Developing and integrating high-end industry value chain;
  • Promoting offshore wind power with the advantages of total solution offerings; and
  • Capitalizing on our cost, technology and financial advantages to further accelerate the expansion of international footprint.

8.As SCD is a key growth driver, is the Company ready to sell and has it acquired the necessary documentation to distribute the product? Does the company have to pay any license fee for this product?
 We have obtained exclusive license rights from aerodyn Asia to manufacture and distribute 2.5/3.0MW SCD wind turbines. In May 2010, we completed our first 2.5/3.0MW SCD wind turbine prototype, which was delivered and installed in a tidal flat area in Rudong, Jiangsu Province in August 2010 and was connected to grid at the end of 2010. We delivered and installed our second SCD prototype in Xinjiang Uyghur Autonomous Region in November 2010.

We are about to start small batch production, and we are in the process of performing further SCD wind turbine optimization under various wind and weather conditions, and we expect to receive further clearance documents from aerodyn Asia to complete our process.

The Company needs to pay a minimum royalty schedule of RMB7.4 million for year 1, RMB 29 million for year 2, and RMB 78.4 million for year three for both 2.5/3.0MW and 5.0/6.0MW SCD wind turbines after the clearances of series production for both categories are granted.

9.What is the strategic value of the framework cooperation agreement with the Municipal government of Ganzhou?
 

The strategic value of the strategic framework cooperation is four-fold:

  • Priority to have access to rare earth resources in Ganzhou, Jiangxi Province
  • Exclusive right for the Company to operate the wind farms in Ganzhou
  • Priority to use Ming Yang’s wind turbines in Jiangxi province
  • Allow Ming Yang, as the promoter, to invest in the Ganzhou Mineral Industry Group, a state-owned company formed by Ganzhou municipal government with rare earth resources development rights in eight counties in Ganzhou

10.What is the trend of the price and cost per MW for 2011?
 Based on market situation and recent contract negotiations concluded in January 2011, the Company expects that there will be a price reduction of 10% for the year of 2011. The impact of that will be reflected in the later part of the year as the new turbines rolling out of assembly are having the benefit of that cost improvement, or price improvement.

11.How does the Company expect the gross margin trending in 2011?
 The company expects the gross margin to be in the range of 18-20% in 2011.

12.What is your revenue recognition policy? How do you book your revenue?
 The Company consistently applies its revenue recognition policy stated under “critical accounting policies” section (page 76 of the 20-F) which states “Revenue attributable to the sale of wind turbines is recognized when the installation supervision services have been provided by us, which is the point of time when the wind turbine has been delivered and accepted by the customer, the wind turbine has been installed under our supervision, and inspection testing of the wind turbine has been completed and accepted by the customer and any remaining obligation is not significant. The durability test, which typically lasts 240 hours and is performed subsequent to the inspection testing, is a test to ensure proper and stable connection of our wind turbines to the power grids, and not a significant performance obligation with respect to the sale of wind turbines.” i.e. The company recognizes revenue after shipment, installation and customers’ acceptance of inspection test.

13.What does deferred revenue entail, is it equivalent to the contract sum to be recognized in the following quarter?
 Deferred revenue represents the payments entitled by the Company up to the delivery date under respective sales contracts, i.e. certain percentage of the respective contract sum. The amount is directly proportional to, but not exactly represents the total contract sum, and varies on a contract-by-contract basis. [also consider to address the time to recognize is uncertain, since the Q mentioned the timing.

14.What is the Company’s progress on becoming a SOX 404 compliant company?
 Ming Yang has implemented the SOX improvement plan, which includes recruiting of professional management, internal control advisers and accounting training.

15.Who is Ming Yang’s independent accountant?
 Our independent accountant is KPMG.

16.Does the Company pay dividend?
 The company has never declared or paid dividend as the Company intends to retain the cash to invest for growth.