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Attention Business/Financial Editors
China Wind Power Reports FY 2010 Financial Results
- Completion of Phase 1 wind energy project and launch of commercial
production key performance highlights -
TORONTO, July 28 /CNW/ - China Wind Power International Corp. (TSX-V:
CNW) today reported its financial results for the three- and 12-month periods
ended March 31, 2010. All amounts are in Canadian dollars unless otherwise
indicated.
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Selected FY 2010 Financial Highlights
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In thousands except share or FY2010 FY2009 Change
percentage data
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Total sales $3,829 $407 +842%
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Recorded revenue $1,719 - +$1,719
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Adjusted EBITDA(1) $482 ($798) +1,280
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Net loss $4,984 $833 +4,150
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Net loss per share - diluted $0.10 $0.03 -$0.07
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Cash and Cash equivalents $373 $9,665 -$9,291
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Total Assets $114,185 $110,743 +3.1%
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"Since becoming a public company in August 2009, we have completed a
number of major milestones that demonstrate our ability to execute on our
strategy that is focused on capturing a significant share of China's growing
renewable energy market," said Mr. Jun Liu, Chief Executive Officer, China
Wind Power International Corp. "Most notably, we completed construction of
Phase 1 of our wind energy projects, entered the commercial phase of our
operations, and have generated more than 67 million KWh of electricity to
date. This momentum paves the way for completion of our five development
phases with a total capacity of 547 MW of wind power by the end 2014."
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FY2010 Operational Highlights
- Completed a reverse take-over of Berkshire Griffin and a qualifying
transaction that generated gross proceeds of $27.3 million
- Began trading on the TSX Venture Exchange on August 5, 2009
- Completed construction of Phase 1 with a capacity of 49 MW of wind
energy production output
- Commenced commercial production of wind energy
- Received more than $575,000 of government subsidies in support of its
wind energy development plans in Du Mon County
- Generated more than 67 million KWh of electricity to the end of June,
2010.
Highlights Subsequent to Year-end
- Completed a non-brokered private placement that generated gross
proceeds of $4.4 million
- Continued construction of Phase 2, which is expected to be completed
in the third quarter of calendar 2010 and generate a capacity of 49.5
MW of wind energy output.
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Financial Results for FY2010
Total electricity sales for FY 2010 were $3.8 million, up 842% from
$406,665 for FY2009. The growth is due to completion of Phase 1 of the
Company's energy projects and the resulting start of commercial energy
production.
The Company had recorded revenue for FY2010 of $1.7 million after
excluding the recovery of wind farm plant costs of $2.1 million from total
electricity sales. Sales of $2.1 million were generated during the testing,
tuning and calibration of the Phase 1 wind project, and this was used to
affect the Phase 1 power plant cost. In FY2009, China Wind had no recorded
revenue after recovery costs of $406,665 were deducted.
Excluding a stock-based compensation charge of $3.2 million, adjusted
EBITDA for FY2010 was $481,958. In FY2009, China Wind had adjusted negative
EBITDA of $797,990.
Net loss for FY2010 was $5 million, or $0.10 per share fully diluted, up
from a net loss of $833,296, or $0.03 per share fully diluted, for FY2009. The
increase in net loss is attributable to the ramping up of operations in
FY2010.
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Selected Financial Highlights for Q4 FY2010
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In thousands except Q4 FY10 Q3 FY10 Change Q4 FY09 Change
share or percentage data
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Total sales $1,207 $1,288 - 6% $407 +197%
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Recorded revenue $1,207 $512 +135% $0 +$1,207
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Adjusted EBITDA(2) $817 $450 +81% ($202) +$1,019
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Net loss $1,229 $626 +$603 $215 +$1,014
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Net loss per share - diluted $0.02 $0.01 +$0.01 $0.007 -$0.02
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Total electricity sales for Q4 FY2010 were $1.2 million, up 197% from
$406,665 for Q4 FY2009 and down $81,000 from Q3 FY2010. The decline on a
sequential basis was due to seasonal factors as wind output generally declines
during winter months. The Company had no recovery of wind farm plant costs in
Q4 FY2010.
Excluding a stock-based compensation charge of $410,526, adjusted EBITDA
for Q4 FY2010 was $816,973, up 81% from $450,033 for Q3 FY2010. In Q4 FY2009,
China Wind had negative adjusted EBITDA of $202,328. The improvement in
adjusted EBITDA is attributable to higher recorded revenue following the
completion of testing, tuning and calibration of Phase 1, which is currently
operating at 60% capacity.
Net loss for Q4 FY2010 was $1.2 million, or $0.02 per share fully
diluted, up from a net loss of $626,296 or $0.01 per share fully diluted, for
Q3 FY 2010. The quarter-over-quarter increase in net loss was due to higher
depreciation costs as well as to higher interest expenses incurred in Q4
FY2010. China Wind had a net loss of $214,820, or $0.007 per share fully
diluted, for Q4 FY2009. The year-over-year increase in net loss is
attributable to the ramping up of operations in FY2010.
Outlook
"We are very encouraged by our recent progress and believe that we are
solidly positioned to capitalize on the growing demand for wind power in
China," added Mr. Liu. "In the short term our focus will be to complete the
construction of Phase 2, which when finalized will add another 49.5 MW of
capacity. Over the long term, we believe that our phased development plan will
enable us to produce 547 MW of wind energy by the end of 2014."
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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
generally accepted accounting principles and may be calculated
differently by other companies. China Wind reconciles EBITDA to its net
earnings (loss). Adjusted EBITDA excludes stock-based compensation.
(2) 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 excludes stock-based compensation.
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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
546 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
57.3 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 May 29, 2009 relating to the
Company's reverse take-over with Berkshire Griffin Inc., 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.
-30-
/For further information: Wendell Zhang, Chief Financial Officer, China
Wind Power International Corp., Tel: 416-916-4205, Email:
wzhang@chinawindpowerinternational.com; Joe Racanelli, Investor Relations, The
Equicom Group Inc., Tel: 416-815-0700 ext 243, Email:
jracanelli@equicomgroup.com/
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