TORONTO, ONTARIO -- (Marketwire) -- 02/29/12 -- 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 December 31, 2011. All amounts are in Canadian dollars unless otherwise indicated.
"Our financial results for the quarter were in line with our expectations and fairly similar to our results for the same quarter a year ago," said Mr. Jun Liu, Chief Executive Officer of China Wind Power. "During the quarter, Phase 1 generated approximately 27.6 million KWh of electricity for an aggregate production to-date of 203 million KWh as of December 31, 2011. Most importantly however, between now and the summer we expect our installed capacity to grow more than six-fold to approximately 296.5 MW."
Selected Financial Highlights
(In thousands except per share or percentage data)
Three months ended Nine months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2011 2010 2011 2010
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Revenue 2,356 2,430 5,707 4,853
Adjusted EBITDA(1) 1,681 1,898 3,827 3,788
Net profit (loss) (193) 92 (1,758) (1,882)
Net profit (loss) per
share - diluted 0.00 0.00 (0.03) (0.03)
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Dec. 31, 2011 Mar. 31, 2011
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Cash 4,931 635
Total assets 173,644 139,401
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China Wind Power's financial results for the third quarter were on par with the third quarter a year ago. The Company had revenue of $2.4 million and adjusted EBITDA of $1.7 million for the quarter compared to revenue of $2.4 million and adjusted EBITDA of $1.9 million for the same period a year earlier. A decrease of approximately $0.2 million in other income accounted for most of the year-over-year difference in adjusted EBITDA. The Company incurred a net loss of $0.2 million for the quarter compared to net profit of $0.09 million for the third quarter a year ago.
For the fiscal year-to-date, the Company generated $5.7 million in revenue and $3.8 million in adjusted EBITDA compared to revenue of $4.9 million and adjusted EBITDA of $3.8 million for the nine months ended December 31, 2010. Net loss for the fiscal year-to-date improved to $1.8 million compared to a net loss of $1.9 million for the nine months ended December 31, 2010.
Update on Wind Farm Development Projects in Du Mon County
"Credit conditions in China have not had a favourable impact on wind farm development projects in recent quarters," said Mr. Jun Liu. "While the final installment of our bank loan to fund the completion of Phase II has been approved, we are still waiting for the proceeds to be disbursed. In light of the delays that we have experienced with regards to completing Phase II, we have decided to be more conservative in our plans and expectations for the completion of Phase III, which we now target for completion by the end of this calendar year."
Phase Capacity Status
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1 49 MW Aggregate production to date of 203 million KWh
as of December 31, 2011.
2 49.5 MW Construction expected to be completed by spring
2012.
3 198 MW Foundations laid for all 132 turbines;
construction to be completed by the end of
calendar 2012.
4 approx. 300 MW Plans submitted for formal government approval.
Construction expected to be completed by the end
of 2013.
5 approx. 200 MW Feasibility study underway. Construction expected
to be completed by the end of 2014.
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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.
(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.
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
416-916-4205
wzhang@chinawindpowerinternational.com
Investor Relations
Trevor Heisler
(416) 500-8061
trevor@heislercommunications.com
