China Wind Power Reports Second Quarter Results
November 28 2011 - 4:00PM
Marketwired
China Wind Power International Corp. (TSX VENTURE:CNW) ("China Wind
Power" or the "Company"), an independent wind power producer in
China, today reported its financial results for the three month
period ended September 30, 2011, and provided an update on its wind
farm development projects in Du Mon County. All amounts are in
Canadian dollars unless otherwise indicated.
"While our results for the quarter were down due to a major
maintenance completed at Phase 1 in August, our year-to-date
results remain well ahead of those from a year earlier," said Mr.
Jun Liu, Chief Executive Officer of China Wind Power. "Subsequent
to the end of the quarter, Phase 1 generated 11.2 million KWh of
electricity during the month of October compared to 10.7 million
KWh in October of last year. Importantly, we are now at the time of
year when wind speeds in northern China are at their highest and
the potential for power generation is at its peak."
Selected Financial Highlights
(In thousands except per share or percentage data)
Three months ended Six months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2011 2010 2011 2010
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Revenue 1,175 1,217 3,352 2,423
Adjusted EBITDA(1) 521 1,292 2,146 1,890
Net loss 1,437 569 1,565 1,974
Net loss per share - diluted 0.02 0.01 0.02 0.03
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Sept. 30, 2011 Mar. 31, 2011
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Cash 12,585 635
Total assets 173,505 139,401
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(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 IFRS accounting
principles and may be calculated differently by other companies. China Wind
Power reconciles EBITDA to its net earnings (loss). Adjusted EBITDA
excludes stock-based compensation.
China Wind Power's financial results for the second quarter were
impacted by the Company completing a major maintenance of its Phase
1 wind farm in August. As a result of the downtime during the
maintenance period, Phase 1 generated approximately 14.5 million
KWh of electricity during the quarter, down from more than 15.2
million KWh in the second quarter of last year. The lower output
resulted in a 3.5% decrease in revenue for the quarter.
Adjusted EBITDA for the quarter decreased nearly $0.8 million to
$0.5 million. The decrease was largely the result of the lower
revenue for the quarter and a $0.7 million decrease in other
income. The increase in net loss for the quarter was also due to a
$0.1 million increase in stock-based compensation resulting from
newly issued stock options.
Update on Wind Farm Development Projects in Du Mon County
Phase Capacity Status
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1 49 MW Aggregate production to date of 187 million KWh as of
October 31, 2011.
2 49.5 MW Construction to be substantially completed by the end of
December 2011.
3 198 MW Foundations laid for all 132 turbines; construction to be
completed by the end of June 2012.
4 approx. Plans submitted for formal government approval.
300 MW
5 approx. Feasibility study underway.
200 MW
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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
International Corp., visit our investor relations blog at
http://chinawindpower.posterous.com or follow our updates on
Twitter at http://twitter.com/ChinaWindPower.
Caution Regarding 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 2, 2011, 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.
Contacts: China Wind Power International Corp. Wendell Zhang
Chief Financial Officer
416-916-4205wzhang@chinawindpowerinternational.com Cinaport
Financial Services Inc. Trevor Heisler Director, Investor Relations
(416) 500-8061theisler@cinaport.com
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