China Wind Power Reports Second Quarter FY2011 Financial Results

TORONTO, Nov. 29 /CNW/ -- 
TORONTO, Nov. 29 /CNW/ - China Wind Power International Corp. (TSX-V: CNW) today reported its financial results for the three- and
 six-month periods ended September 30, 2010. All amounts are in Canadian
 dollars unless otherwise indicated.


Selected Second Quarter Financial Highlights


 _____________________________________________________________________
|In thousands except share or % |Sept. 30, 2010|Sept. 30, 2009| Change|
|data                           |              |              |       |
|_______________________________|______________|______________|_______|
|Total sales                    |        $1,217|          $705| +72.6%|
|_______________________________|______________|______________|_______|
|Recorded revenue               |        $1,217|             -|+$1,217|
|_______________________________|______________|______________|_______|
|Adjusted EBITDA(1)             |        $1,291|        ($393)|+$1,684|
|_______________________________|______________|______________|_______|
|Net earnings (loss)            |        ($569)|      ($2,726)|+$2,158|
|_______________________________|______________|______________|_______|
|Net earnings (loss) per share -|              |              |       |
|diluted(2)                     |       ($0.01)|       ($0.06)| +$0.05|
|_______________________________|______________|______________|_______|
|                               |Sept. 30, 2010|March 31, 2010| Change|
|_______________________________|______________|______________|_______|
|Cash and Cash equivalents      |        $1,789|          $373|+$1,416|
|_______________________________|______________|______________|_______|
|Total assets                   |      $133,598|      $114,185| +17.0%|
|_______________________________|______________|______________|_______|
|Total liabilities              |       $86,425|       $71,075| +21.6%|
|_______________________________|______________|______________|_______|




(_____________________________________)
(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)  China Wind Power's weighted average number of shares at September 30,
 2010 was 61,642,698 compared to 47,979,497 at September 30, 2009.


"Consistent with expectations, our second quarter was marked by steady
 improvement to each of our key financial metrics," said Mr. Jun Liu,
 Chief Executive Officer, China Wind Power International Corp. "In
 particular, we generated record revenue and record adjusted EBITDA. We
 also posted our lowest net loss to date. This progress positions us
 very well as we enter the time of year when wind speeds in China are at
 their highest and the potential for power generation is at its peak."


Q2 Operational Highlights


    --  Generated more than 15.2 million KWh of electricity in Q2 for
        an aggregate production to date of 83 million KWh as of
        September 30, 2010.
    --  Continued construction of Phase 2, which is expected to be
        completed in the second quarter of calendar 2011 and generate a
        capacity of 49.5 MW of wind energy output.



Highlights subsequent to Quarter-end


    --  Closed a non-brokered private placement that generated gross
        proceeds of $4.3 million.
    --  In final process with the Agricultural Development Bank of
        China for additional debt financing that will support the
        completion of Phase 2 and future wind power projects.
    --  Generated 10.7 million KHh of electricity in October, 2010.



Selected Year-to-Date 6-Month Financial Highlights


 _________________________________________________________________
|In thousands except share or % data    |  FY2011|  FY2010| Change|
|_______________________________________|________|________|_______|
|Total sales                            |  $2,423|  $1,334| +81.6%|
|_______________________________________|________|________|_______|
|Recorded revenue                       |  $2,423|       -|+$2,423|
|_______________________________________|________|________|_______|
|Adjusted EBITDA                        |  $1,890|  ($785)|+$2,675|
|_______________________________________|________|________|_______|
|Net earnings (loss)                    |($1,974)|($3,129)|+$1,155|
|_______________________________________|________|________|_______|
|Net earnings (loss) per share - diluted| ($0.03)| ($0.08)| +$0.05|
|_______________________________________|________|________|_______|




Review of Second Quarter Financial Results
Total electricity sales for the second quarter of FY2011 were $1.2
 million, up 72.7% from $0.7 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 Q2 FY2011 were impacted by slower wind
 speed, which is common in China during the summer months.  Subsequent
 to quarter end, the Company generated 10.7 million KWh of electricity
 in October.  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.


Phase 1 is currently operating at an average of 60% 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 in the first quarter of calendar
 2011.


Revenue for Q2 FY2011 was $1.2 million. The Company had no recorded
 revenue for the corresponding period of FY2010 after excluding the
 recovery of wind farm plant costs of $705,162.  The recovery costs were
 recorded during the testing, tuning and calibration of the Phase 1 wind
 project.


Adjusted EBITDA for Q2 FY2011 was $1.3 million, up from adjusted
 negative EBITDA of $0.4 million for the corresponding of FY2010,
 representing a positive turnaround of $1.7 million.  The year-over-year
 improvement in adjusted EBITDA was due to a number of factors,
 including higher revenue and higher amortization and interest expenses
 as the Company continues its roll-out of its five-phased development
 plan.  Adjusted EBITDA for Q2 FY2011 excluded a stock-based
 compensation charge of $0.2 million as well as amortization expenses of
 $0.9 million and interest expenses of $0.8 million. 


Net loss for Q2 FY2010 was $0.6 million, or $0.01 per share.  This
 compares to a net loss of $2.7 million, or $0.06 per share, for Q1
 FY2010.  The decline in net loss was primarily attributable to the
 recording of revenue sales of $1.2 million and a decline in stock-based
 compensation charges of more than $2.1 million on a year over year
 basis. 


At September 30, 2010, China Wind had cash totaling $1.8 million, total
 assets of $133.6 million and total liabilities of $86.4 million. These
 compare to $0.4 million, $114.2 million and $71.1 million, respectively
 at March 31, 2010.  Subsequent to quarter end, the Company closed a
 private placement that generated gross proceeds of $4.3 million.


Outlook
"Our recent financing will help us to accelerate completion of Phase 2
 of our wind farm project, which we now expect to be completed by the
 end of the second quarter of calendar 2011," added Mr. Liu.  "Adding
 another 49.5 MW of capacity will be a key milestone on our path towards
 completing our five-phased development plan, which will generate 547 MW
 of wind energy, by the end of 2014."


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 61.5
 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.





table border="0" valign="top"tr valign="top"td align="left"Wendell Zhangbr/ Chief Financial Officerbr/ China Wind Power International Corp.br/ Tel: [phone]br/ Email: a href="mailto:[e-mail]"[e-mail]/a/td td /td td /td td align="left"Joe Racanellibr/ Investor Relationsbr/ The Equicom Group Inc.br/ Tel: [phone] ext 243br/ Email: a href="mailto:[e-mail]"[e-mail]/a /td/tr/table

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