Its total revenue was CNY 798 million, a decrease of 43.2% year on year. The fall was primarily due to a decrease in average selling price ("ASP") and overall decreased market demand for wind turbines in China, according to the unaudited financial results for the second quarter ended June 30.
Mingyang’s gross profit in the second quarter was CNY 115.9 million, representing a decrease of 56.6% for the corresponding period in 2011. Its gross margin was 14.5%, compared to 19% for the corresponding period in 2011. The decline was a result of lower ASP and higher average production costs.
Compared with the first quarter of 2012, the gross margin, however, improved 4.5 percent, primarily due to the increase in ASP for turbines recognised in the second quarter of 2012.
Zhang Chuanwei, the chairman and chief executive of Mingyang, said: "We plan to continue executing our key strategic initiatives including broadening offshore wind applications, pursuing overseas markets, utilizing innovative business models such as finance leasing, developing high technologies such as new material applications, and other research and development initiatives."