- A number of milestones mark China Wind's first reporting period -
TORONTO, Nov. 27 /CNW/ - China Wind Power International Corp. (TSX-V: CNW) ("China Wind" or the "Company"), today reported its financial results for its second quarter ended September 30, 2009. All figures are reported in Canadian dollars.
Second quarter highlights:
- Generated $0.7 million in wind power revenue during the testing,
tuning and calibration of Phase 1;
- Completed reverse takeover with Berkshire Griffin Inc., raising gross
proceeds of $27.3 million through private placement;
- Commenced trading on the TSX Venture Exchange on August 5, 2009.
"We completed a number of significant milestones during the second quarter," said Mr. Jun Liu, Chief Executive Officer of China Wind. "We amalgamated with Berkshire Griffin Inc. and raised gross proceeds of $27.3 million through private placement, completing our reverse takeover with Berkshire Griffin. This set the stage for our trading commencement on the TSX Venture Exchange in early August. Importantly, we began generating wind power revenue during the quarter, and subsequent to quarter end, completed construction of Phase 1 of our five-phase build-out."
Financial Results for the Second Quarter
During the quarter, the Company generated $0.7 million in wind power revenue during the testing, tuning and calibration of Phase 1, which was recorded as a reduction to wind farm power plant cost.
The Company incurred a net loss of $2.7 million, or $0.057 per common share, for the second quarter of fiscal 2010, resulting in an accumulated deficit of $4.8 million. The Company has a net loss of $0.3 million for the same quarter a year earlier when it was a private company. The larger net loss was attributable to expenses stemming from the Company's public listing activities; share-based compensation; and an increase in wages and salary as both the Chief Executive Officer and Senior Vice President started to earn salary after the Company listed on the TSX Venture exchange in August of 2009.
As previously reported, the Company completed a reverse-takeover with Berkshire Griffin Inc. during the quarter and raised gross proceeds of $27.3 million through a private placement financing. Additional information relating to the reverse-takeover can be found in the management information circular of Berkshire Griffin dated May 29, 2009, and filed on SEDAR under China Wind Power International Corp.
Subsequent to Quarter End
Subsequent to the end of the second quarter, the Company completed the construction of Phase 1 with installed capacity of 49 MW. Phase 1 generated more than 24 million KWh electricity by the end of October 2009. Phase 1 is currently undergoing final testing and inspection and is expected to commence commercial production in December 2009.
Construction continues at Phase 2, which will represent capacity of 49.5 MW when completed, with completion expected before May 2010.
"Our immediate focus is on bringing Phase 1 into commercial production, which we expect to happen in December," said Mr. Liu. "Construction continues at Phase 2. Phase 2 of our build-out, which we expect to complete before May 2010, will represent installed capacity of 49.5 MW when completed. The equity financing was completed in early August as part of the projected total investment of approximately US$73 million to complete Phase 2. We expect the remainder of the investment to be funded by bank loans, currently is in the approval process."
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.
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.
SOURCE CHINA WIND POWER INTERNATIONAL CORP.
For further information: For further information: Wendell Zhang, Chief Financial Officer, China Wind Power International Corp., Tel: (416) 916-4205, Email: firstname.lastname@example.org; Trevor Heisler, Investor Relations, The Equicom Group Inc., Tel: (416) 815-0700 ext 270, Email: email@example.com; Follow us on Twitter at http://twitter.com/ChinaWindPower