- Company achieved significant milestones; commenced commercial production during the quarter -
TORONTO, Feb. 26 /CNW/ - China Wind Power International Corp. (TSX-V: CNW) ("China Wind" or the "Company"), today reported its financial results for its third quarter ended December 31, 2009. All figures are reported in Canadian dollars.
Third quarter highlights:
- Completed construction of Phase 1 (installed capacity of 49 MW);
- Commenced commercial production of wind energy at the end of
- Generated $1.3 million in wind power revenue, including $0.5 million
in commercial production;
- Incurred net loss of $0.6 million, or $0.011 per share.
"The third quarter was marked by very significant milestones for China Wind," said Mr. Jun Liu, Chief Executive Officer of China Wind. "During the quarter, we completed construction and completed the testing, tuning and calibration of our turbines for Phase 1. Most importantly, Phase 1 commenced commercial production of wind energy at the end of November, which was slightly ahead of schedule. Phase 1 has now generated more than 42.4 million KWh of electricity by the end of January 2010."
Financial Results for the Third Quarter
The Company generated $1.3 million of wind power revenue during the quarter, including $0.8 million during the testing, tuning and calibration of Phase 1, and $0.5 million since Phase 1 commenced commercial production at the end of November 2009. The $0.8 million generated prior to commercial production commencing has been recorded as a reduction to wind farm power plant cost.
The Company had a net loss of $0.6 million, or $0.011 per share, for the quarter, contributing to an accumulated deficit of $5.4 million.
As previously reported, in December 2009, the Finance Bureau of Heilongjiang Provincial Government granted a government subsidy equivalent to $155,000 to the Company to support and encourage its wind energy development plans in Du Mon County. In addition, the Du Mon County Government awarded the Company a subsidy equivalent to $252,000 for its achievement in improving its wind farm control and monitoring systems.
The Company continues to expect to complete Phase 2 of its current five-phase build-out before May 2010. Phase 2 will represent capacity of 49.5 MW when completed. Additionally, and as previously reported, the Company has filed the final application for its Sino-Danish project, representing approximately 200 MW installed capacity upon completion. Each phase or development project is expected to run at approximately 60% production capacity for its first full year of operation due to tuning and calibration, and to be in full production starting from the second year.
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.
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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: email@example.com; Trevor Heisler, Investor Relations, The Equicom Group Inc., Tel: (416) 815-0700 ext 270, Email: firstname.lastname@example.org