Ming Yang Wind Power Acquires RENergy

Ming Yang has entered into share purchase agreements (“SPAs”) pursuant to which it has acquired a 99% stake in China Smart Electric Group Limited (“China Smart”), a Cayman Islands company.

China Smart owns all of the equity interest in Wise Renergy Holdings Limited, a Hong Kong company, which in turn owns all of the equity interests in mainland China-based subsidiaries, Tianjin REnergy Electrical Co., Ltd. and Tianjin Ruiyuan Electrical Co., Ltd. (all such Renergy entities are collectively referred to as “RENergy”). The closing of the acquisition of the 99% interest in China Smart is expected to occur on or about May 20, 2015. Ming Yang expects to acquire the remaining 1% stake in RENergy in the near future.

In exchange for a 100% stake in RENergy, Ming Yang will pay a total purchase consideration of approximately RMB925.4 million (US$149 million at the exchange rate of RMB6.2048 to US$1.00). This consideration will be paid in a combination of cash and newly issued shares in Ming Yang.

RENergy, one of Ming Yang’s major suppliers, is engaged in the manufacture, sale, research and development of electrical system equipment. It is China’s largest supplier of core components for wind turbine generators (“WTG”), including components such as main control systems, pitch control systems and converters. RENergy is the only company in China that provides total electrical control solutions by offering and integrating the three core components of the electrical control system.

The acquisition is expected to create significant synergies between Ming Yang and RENergy.

Mr. Chuanwei Zhang, Chairman and Chief Executive Officer of Ming Yang, said: “The acquisition of RENergy marks a milestone in our transition to become a technology-driven, service-centric provider of comprehensive wind energy solutions. We are proud to announce that, as a result of this acquisition, in addition to developing WTG model designs, Ming Yang is expected to be capable of developing all major WTG components in-house, including blades, offshore super compact drive solutions and electrical control systems. Unlike most WTG manufacturers that rely solely on external suppliers for the manufacture, research and development of core components, we are delighted to be different by gaining control over our upstream electrical system supplies by acquiring RENergy, a leading player in this segment. RENergy’s product line of wind turbine control and monitoring systems fits perfectly with our existing offerings, and going forward we believe that we will be able to harness significant business synergies to generate further value for shareholders.”

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