MING YANG SMART ENERGY GROUP LIMITED

(GDR under the symbol: "MYSE")

(a joint stock company established under the laws of the People’s Republic of China with limited liability)

Announcement on Estimated Results for the Half Year of 2023

IMPORTANT NOTICE:

1. The estimated results of the Period is applicable to profitability where the net profit is reduced by more than 50% as compared with the same period of the previous year. 

2. Ming Yang Smart Energy Group Limited. (hereinafter referred to as the "Company") expects its net profit attributable to shareholders of the listed company to range from RMB730,000,000 to RMB890,000,000 from April to June 2023, representing a reversal of the loss from January to March 2023, and decreases of 14.38% and 29.77% as compared with the same period of the previous year. Net profit attributable to shareholders of listed company from January to June 2023 will range from RMB500,000,000 to RMB660,000,000, representing decreases of RMB1,787,744,000 and RMB1,947,740,000, or decreases of 73.04% and 79.57% as compared with the same period of the previous year.

3. The Company expects that the net profit attributable to shareholders of the listed company from April to June 2023 after deducting non-recurring gains and losses will be RMB690,000,000 to RMB850,000,000, representing a reversal of the loss from January to March 2023, and decreases of 3.47% and 21.64% as compared with the same period of the previous year. From January to June 2023, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB400,000,000 to RMB560,000,000, representing decreases of RMB1,741,196,100 and RMB1,901,196,100, or decreases of 75.66% and 82.62% from the same period of the previous year.

I. ESTIMATED RESULTS FOR THE PERIOD

(I) Period to which the estimated results apply

January 1, 2023 to June 30, 2023.

(II) Estimated results

1. According to the preliminary estimation of the financial department, the Company expects the net profit attributable to shareholders of the listed company from April to June 2023 to range from RMB730,000,000 to RMB890,000,000, representing decreases of 14.38% and 29.77%, and a reversal of the loss to a profit from January to March 2023 as compared with the same period of the previous year.

2. The Company expects that the net profit attributable to shareholders of the listed company from April to June 2023 after deducting non-recurring gains and losses will be RMB690,000,000 to RMB850,000,000, representing decreases of 3.47% and 21.64%, and a reversal of the loss from January to March 2023 as compared with the same period of the previous year.

3. The Company expects its net profit attributable to shareholders of listed companies from January to June 2023 to be RMB500,000,000 to RMB660,000,000, representing decrease of RMB1,787,744,000 and RMB1,947,744,000, or decreases of 73.04% and 79.57% as compared with the same period of the previous year.

4. The Company expects that the net profit attributable to shareholders of the listed company from January to June 2023 will be RMB400,000,000 to RMB560,000,000, representing decrease of RMB1,741,196,100 and RMB1,901,196,100, or decreases of 75.66% and 82.62% as compared with the same period of the previous year.

5. The data of this performance forecast has not been audited by a certified public accountant.

II. OPERATING RESULTS AND FINANCIAL CONDITION FOR THE CORRESPONDING PERIOD OF THE PREVIOUS YEAR

(I) Net profit attributable to shareholders of the listed company: RMB2,447,744,000, net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses: RMB2,301,196,100.

(II) Earnings per share: RMB1.18.

III. MAIN REASONS FOR THE REVERSAL OF THE LOSS IN THE SECOND QUARTER

The main reasons for the company's expected reversal of the loss in the second quarter results as compared to the first quarter are as follows:

1. The sales volume of offshore wind turbines increased significantly in the second quarter, mainly due to the improvement of on-site reception conditions and the acceleration of construction progress, and that the Company's offshore wind turbine shipments increased as compared with the first quarter.

2. The gross profit margin of wind turbine sales increased significantly as compared with that of the previous quarter, mainly due to the gradual effect of the Company's systematic cost reduction and cost control.

3. The scale and revenue of power plant products sold and project transactions increased as compared with that of the previous quarter. There was no power plant project transaction in the first quarter, and there was a certain scale of new energy power plant product sales and project transactions in the second quarter.

IV. MAIN REASONS FOR THE ESTIMATED DECREASE IN THE RESULTS OF THE CURRENT PERIOD

The decrease in net profit attributable to shareholders of listed company during the Reporting Period as compared with the same period of last year was mainly due to the combined effects of the following factors:

(I) The impact of principal business

1. Affected by the industry policy, the winning bid price of wind turbines decreased, and the gross profit margin of wind turbines delivered in the current period decreased as compared with the same period of last year. The effect of cost reduction was gradually reflected from the second quarter. The gross profit margin of wind turbine sales increased significantly in the second quarter as compared with the same quarte of last year.

2. Affected by the increase in the scale of existing offshore wind power projects and the speed of construction, there was a certain decrease in the current period as compared with the same period of the previous year. The delivery of offshore wind turbines has been gradually scaled up from the second quarter.

3. The revenue of power plant projects decreased as compared with the same period of the previous year. There was no power plant transaction in the first quarter, and the scale-up commenced in the second quarter.

（(II) Impact of non-recurring gains and losses

None.

(III) Impact of accounting treatment

None.

(IV) Others

None.

V. RISK WARNING

There are no material uncertainties in the Company that will affect the accuracy of the estimated results.

VI. OTHER INFORMATION

The foregoing estimated data are preliminary accounting data only. For the detailed and accurate financial data, please refer to the 2023 interim financial report to be formally disclosed by the Company. Investors are advised to pay attention to investment risks.

Ming Yang Smart Energy Group Limited

14 July, 2023