China Wind Power International Corp. (TSXV:CNW)
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TORONTO, July 29, 2011 /CNW/ --
- Triple digit revenue growth driven by 71% increase in production for
Phase I -
TORONTO, July 29, 2011 /CNW/ - China Wind Power International Corp. (TSX-V: CNW), an independent wind power producer in China, today
reported its financial results for the three- and 12-month periods
ended March 31, 2011. All amounts are in Canadian dollars unless
otherwise indicated.
Selected FY 2011 Financial Highlights
_____________________________________________________________________
|In thousands except per | FY2011 | FY2010 | Change |
|share or percentage data | | | |
|____________________________|_______________|_______________|________|
|Total sales | $6,553| $3,829| +71%|
|____________________________|_______________|_______________|________|
|Recorded revenue | $6,553| $1,719| +281%|
|____________________________|_______________|_______________|________|
|Adjusted EBITDA(1) | $4,798| $482| +895%|
|____________________________|_______________|_______________|________|
|Net loss | $2,505| $4,984| -50%|
|____________________________|_______________|_______________|________|
|Net loss per share - diluted| $0.04| $0.10| -60%|
|____________________________|_______________|_______________|________|
| | Mar. 31, 2011 | Mar. 31, 2010 | |
|____________________________|_______________|_______________|________|
|Cash and Cash equivalents | $635| $373| +$262|
|____________________________|_______________|_______________|________|
|Total Assets | $139,401| $114,185| +22%|
|____________________________|_______________|_______________|________|
"In fiscal 2011 we recorded a 281% increase in recorded revenue, an 895%
increase in adjusted EBITDA, and reduced our net loss by 50%, while
increasing production by 71%," said Mr. Jun Liu, Chief Executive
Officer, China Wind Power. "Our financial results reflect our innate
ability to execute on our business plan to fully develop the potential
of our Du Mon County project site, in Heilongjiang Province."
FY2011 Financial and Operational Highlights
-- Generated and sold 81.0 million KWh of electricity in FY2011
for realized revenue of $6.6 million, up 281% compared to 47.2
million KWh sold for revenue of $3.8 million in FY2010
-- Achieved first quarter of profitability in Q3
-- Increased total planned capacity from 546 MW to 800 MW for all
5 Phases
-- Secured the first two tranches of RMB 220 million
(approximately CDN$32.6 million) of the previously announced
RMB 330 million (approximately CDN$50 million) loan agreement
with the Agricultural Development Bank of China
-- Closed a non-brokered private placement that generated gross
proceeds of $4.3 million
Highlights Subsequent to Year-end
-- Production for fiscal Q1 2012 totaled 28 million KWh of
electricity compared to 15 million KWh in fiscal Q1 2011
-- Received final government approval for the construction of four
new wind farms totaling 198 MW which will comprise Phase III
-- Finalizing construction and supply agreements with a major
international turbine manufacturer for Phase III, which is
expected to begin in calendar Q3 2011
-- Moving toward completion of construction of the 49.5 MW Phase
II, which is expected by the end of December 2011; currently 22
of 35 planned turbines have been installed
Financial Results for FY2011
Total electricity sales for FY2011 were $6.6 million from production of
81.0 million KWh of electricity, up 71% from $3.8 million for FY2010
from production of 47.2 million KWh of electricity. The growth in
revenue and production is due to Phase I of the Company's energy
projects approaching total expected capacity throughout the year.
The Company had recorded revenue for FY2011 of $6.6 million compared to
$1.7 million for FY2010 after excluding the recovery of wind farm plant
costs of $2.1 million from total electricity sales. Sales generated
during the testing, tuning and calibration of the Phase I wind project.
Adjusted EBITDA for FY2011 was $4.8 million compared to $0.5 million in
FY2010, an increase of 895%. The significant increase in adjusted
EBITDA was primarily due to an increase in revenue and production as
previously discussed.
Net loss for FY2011 was $2.5 million, or $0.04 per share, down from a
net loss of $5.0 million, or $0.10 per share, for FY2010. The
decrease in net loss is attributable to a number of factors including
the ramping up of operations in FY2011, which added $4.8 million in
revenue, a $2.4 million decrease in stock based compensation, offset by
an increase in interest expense of $1.9 million and a $2.3 million
increase in amortization expense. Net loss per share was also reduced
by an increase in the number of weighted average shares from 48.0
million to 61.9 million.
Selected Financial Highlights for Q4 FY2011
____________________________________________________________________
|In thousands except share or percentage|Q4 FY11 |Q4 FY10 |Change |
|data | | | |
|_______________________________________|_________|_________|________|
|Revenue | $1,700| $1,207| +41%|
|_______________________________________|_________|_________|________|
|Adjusted EBITDA(2) | $1,009| $817| +24%|
|_______________________________________|_________|_________|________|
|Net earnings (loss) | ($623)| ($1,229)| +$608|
|_______________________________________|_________|_________|________|
|Net earnings (loss) loss per share - | ($0.01)| ($0.02)| +$0.01|
|diluted | | | |
|_______________________________________|_________|_________|________|
Financial Results for Q4 FY2011
Total electricity sales for Q4 FY2011 were $1.7 million from 21.3
million KWh, up 41% from $1.2 million from 15.2 million KWh for Q4
FY2010. The increase in revenue and production was as a result of Phase
I of the Company's wind projects operating at close to total expected
capacity for the quarter compared to the same time in the previous
year.
Excluding stock-based compensation, adjusted EBITDA for Q4 FY2011 was
$1.0 million, up 24% from $0.8 million for Q4 FY2010. The improvement
in quarterly adjusted EBITDA is attributable to higher revenue and
production as previously discussed.
Net loss for Q4 FY2011 was $0.6 million, or $0.01 per share fully
diluted, down from a net loss of $1.2 million or $0.02 per share fully
diluted, for Q4 FY 2010. The year-over-year decrease in net loss was
primarily due to the ramping up of operations of Phase I throughout the
year.
Outlook
"We are very close to finalizing the construction and turbine supply
agreements for the Phase III, which will allow us to add an additional
198 MW of capacity to our production," also said Mr. Liu. "With the
completion of Phase II expected by the end of the calendar year and
construction of Phase III expected to begin by the third quarter of the
calendar year, we expect fiscal 2012 to be an even bigger year of
progress for the Company."
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 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.
________________________________
(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 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 IFRS
and may be calculated differently by other companies. China Wind
reconciles EBITDA to its net earnings (loss). Adjusted EBITDA excludes
stock-based compensation.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/29/c8260.html
table cellspacing="0" valign="top" border="0" tr valign="top" td align="left" Wendell Zhangbr/ Chief Financial Officerbr/ China Wind Power International Corp.br/ 416-916-4205br/ a href="mailto:wzhang@chinawindpowerinternational.com"wzhang@chinawindpowerinternational.com/a /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" /td td align="left" valign="top" Philip Dalebr/ Investor Relationsbr/ TMX Equicombr/ 416-815-0700 ext 253br/ a href="mailto:pdale@equicomgroup.com"pdale@equicomgroup.com/a /td /tr /table