China Wind Power Reports Record Results for Third Quarter FY2011
February 28 2011 - 6:00AM
PR Newswire (Canada)
TORONTO, Feb. 28 /CNW/ -- - Achieves first profitable quarter in
Company's history; Announces increase in capacity for planned wind
farm project to 800 MW - TORONTO, Feb. 28 /CNW/ - China Wind Power
International Corp. (TSX-V: CNW) today reported its financial
results for the three- and nine-month periods ended December 31,
2010. Q3 FY2011 marks the first profitable quarter for the
Company since it began operations in August 2009. The Company also
reported that it plans to increase the capacity of its planned five
phase wind farm development project to approximately 800 MW, up
from its previously announced 546 MW. All amounts are in Canadian
dollars unless otherwise indicated. Selected Third Quarter
Financial Highlights
____________________________________________________________________
|In thousands except share or % |Dec. 31, 2010| Dec. 31,2009 |
Change| |data | | | |
|_______________________________|_____________|______________|_______|
|Total sales | $2,430| $1,288| +88.6%|
|_______________________________|_____________|______________|_______|
|Recorded revenue | $2,430| $512|+$1,918|
|_______________________________|_____________|______________|_______|
|Adjusted EBITDA(1) | $1,898| $450|+$1,448|
|_______________________________|_____________|______________|_______|
|Net earnings (loss) | $92| ($626)| +$719|
|_______________________________|_____________|______________|_______|
|Net earnings (loss) per share -| $0.002| ($0.01)|+$0.012|
|diluted(2) | | | |
|_______________________________|_____________|______________|_______|
| |Dec. 31, 2010|March 31, 2010| Change|
|_______________________________|_____________|______________|_______|
|Cash and Cash equivalents | $1,365| $373| +$992|
|_______________________________|_____________|______________|_______|
|Total assets | $134,102| $114,185| +17.4%|
|_______________________________|_____________|______________|_______|
|Total liabilities | $83,158| $71,075| +17.0%|
|_______________________________|_____________|______________|_______|
"We are very pleased with our third quarter performance,
which was consistent with our expectations," said Mr. Jun Liu,
Chief Executive Officer, China Wind Power International Corp. "Our
third quarter was marked by record results in each of our key
financial metrics, capped most notably by the first profitable
quarter in our Company's history. Given our recent progress
and momentum, we believe we are well-positioned to increase the
capacity of our planned wind farm project in Du Mon County." Q3
Highlights -- Generated more than 29 million KWh of electricity in
Q3 for an aggregate production to date of 112 million KWh as of
September 30, 2010. -- Moving towards completion of Phase 2
construction, which is expected by the end of the second quarter of
calendar 2011 and will generate a capacity of 49.5 MW of wind
energy output. -- Achieved first quarter of profitability --
Secured first tranche consisting of 140,000,000 Yuan (approximately
CDN$21.2 million) of a new 330,000,000 Yuan (approximately CDN$50
million) loan agreement signed with the Agricultural Development
Bank of China. -- Closed a non-brokered private placement that
generated gross proceeds of $4.3 million. Highlights subsequent to
Quarter-end -- Generated 6.1 million KWh of electricity in January,
2011, which is consistent with management's expectations given
China's slower wind speeds during winter months. -- Secured an
additional tranche consisting of 120,000,000 Yuan (approximately
CDN$18 million) of the previously announced 330,000,000 Yuan
(approximately CDN$50 million) loan arrangement with the
Agricultural Development Bank of China. -- Increased total planned
capacity from 546 MW to 800 MW for all 5 Phases. Selected
Year-to-Date 9-Month Financial Highlights
_________________________________________________________________
|In thousands except share or % data | FY2011| FY2010| Change|
|_______________________________________|________|________|_______|
|Total sales | $4,853| $2,622| +85.1%|
|_______________________________________|________|________|_______|
|Recorded revenue | $4,853| $512|+$4,341|
|_______________________________________|________|________|_______|
|Adjusted EBITDA | $3,788| ($333)|+$4,121|
|_______________________________________|________|________|_______|
|Net earnings (loss) |($1,882)|($3,755)|+$1,874|
|_______________________________________|________|________|_______|
|Net earnings (loss) per share - diluted| ($0.03)| ($0.10)| +$0.07|
|_______________________________________|________|________|_______|
Review of Third Quarter Financial Results Total electricity sales
for the third quarter of FY2011 were $2.4 million, up 88.6% from
$1.3 million for the corresponding period of FY2010. The growth is
due to the completion of Phase 1 of the Company's wind energy
projects and the resulting start of commercial energy production.
Total sales for Q3 FY2011 were positively impacted by higher wind
speed that is common in Du Mon County area, China during October
and November. The increase in electricity product is
attributable to a combination of factors, including higher wind
speeds that are prevalent in China during the fall months as well
as improved turbine performance resulting from the ongoing
calibration and tuning of equipment. Subsequent to quarter end, the
Company generated 6.1 million KWh of electricity in January. Phase
1 is currently operating at an average of 85% capacity consistent
with Management's expectation and previous guidance given ongoing
calibration and tuning of turbines. It is expected that full
production capacity for Phase 1 will be achieved by the end of
March 2011. Revenue for Q3 FY2011 was $2.4 million, up 374.5% from
$0.5 million for the corresponding period of FY2010. The
growth is due to the completion of Phase 1 of the Company's wind
energy projects and the resulting start of commercial energy
production. Adjusted EBITDA for Q3 FY2011 was $1.9 million, up from
EBITDA of $0.5 million for the corresponding of FY2010,
representing an increase of $1.7 million. The year-over-year
improvement in adjusted EBITDA was due primarily to higher revenue
as the Company continues its roll-out of its five-phased
development plan. Net income for Q3 FY2011 was $0.09
million, or $0.002 per share fully diluted. This compares to
a net loss of $0.6 million, or $0.01 per share fully diluted, for
Q3 FY2010. The net gain versus the net loss was primarily
attributable to the increase of revenue associated with the
completion of Phase I of the Company's wind energy projects and the
resulting start of commercial operations. At December 31,
2010, China Wind had cash totaling $1.4 million, total assets of
$134.1 million and total liabilities of $83.2 million. These
compare to $0.4 million, $114.2 million and $71.1 million,
respectively at March 31, 2010. Outlook "We are very
encouraged by our recent financial and operational performance and
the progress we have made towards the build out approximately 800
MW of our 5 Phases," added Mr. Liu. "We are currently working
towards completing construction and supply agreements with a major
wind turbine manufacturer for Phase 3. Not only will it give us
access to leading wind turbine technology with no upfront capital
requirements, we also expect that it will provide us a clear path
for the construction and commercialization of Phase 3 and its 198
MW of capacity by the end of calendar 2012." About China Wind Power
International Corp. China Wind Power International Corp. is an
Ontario company that is uniquely positioned to capitalize on the
growing demand for wind power in China. The Company
indirectly holds the exclusive rights for wind energy development
in Du Mon County, Heilongjiang Province, which has a demonstrated
potential installed capacity of 1,150 MW of wind energy developable
over an area of 612 square km. While 1,150 MW represents the
Company's long-term potential for wind power in the area, its
current plans are for building out approximately 800 MW over five
development phases. The Company's common shares are listed on
the TSX Venture Exchange under the symbol CNW. The Company has
approximately 63.9 million shares outstanding. For more information
and the latest updates on China Wind Power, visit our investor
relations blog at http://chinawindpower.posterous.com or follow us
on Twitter at http://twitter.com/ChinaWindPower Forward-looking
statements Certain statements that are not historical facts made in
this press release may be forward looking statements subject to
risks and uncertainties. Statements containing words such as
"will", "could", "expect", "may", "anticipate", "believe",
"intend", "estimate", "plan" and other similar expressions are
forward-looking statements that represent management's beliefs at
the time the statements are made and are based on certain factors
and assumptions including wind farm construction and commercial
production schedule, output and capacity, revenue and earnings
expectations and market potential. These forward-looking statements
are subject to a variety of risks and uncertainties and other
factors that could cause actual events to differ materially from
those projected in forward-looking statements. Important factors
that could cause actual results to differ materially from the
Company's expectations include uncertainties involving the
availability of financing; fluctuations in currency exchange rates;
uncertainties relating to economic and market conditions;
uncertainty of estimates of capital and operating costs; the
need to obtain additional financing to develop the projects and
uncertainty as to the availability and terms of future financing;
the possibility of delay in construction projects and uncertainty
of meeting anticipated program milestones; uncertainty as to timely
availability of permits and other governmental approvals; and other
risks and uncertainties disclosed in the information circular dated
November 5, 2010, which is available at www.sedar.com under the
Company's profile. Except as required by applicable securities
laws, the Company undertakes no obligation to update any forward
looking statement to reflect events or circumstances after the date
on which such statement is made. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. (1) Earnings
before interest, taxes, depreciation and amortization (EBITDA) is
often used as a measure of financial performance. However, EBITDA
is not a term that has specific meaning in accordance with
generally accepted accounting principles and may be calculated
differently by other companies. China Wind reconciles EBITDA
to its net earnings (loss). Adjusted EBITDA also excludes
stock-based compensation. (2) China Wind Power's weighted
average number of shares at December 31, 2010 was 62,529,711
compared to 57,323,412 at December 31, 2009. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/February2011/28/c6308.html
table valign="top" border="0"tr valign="top"td align="left"Wendell
Zhangbr/ Chief Financial Officerbr/ China Wind Power International
Corp.br/ Tel: 416-916-4205br/ Email: a
href="mailto:wzhang@chinawindpowerinternational.com"wzhang@chinawindpowerinternational.com/a/td
td align="left" /td td align="left" /td td
align="left" /td td valign="top" align="left"Joe Racanellibr/
Investor Relationsbr/ TMX Equicom br/ Tel: 416-815-0700
ext 243br/ Email: a
href="mailto:jracanelli@equicomgroup.com"jracanelli@equicomgroup.com/a /td/tr/table
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