Hanwei announces restatement of interim and annual financial statements for
the fiscal years ended December 31, 2008 and 2007

TSX: HE

VANCOUVER, Nov. 17 /CNW/ - Hanwei Energy Services Corp. ("Hanwei" or the "Company") today announced the restatement of the financial results for the four quarters in 2008 and for the fiscal year ended December 31, 2008 and 2007 related to the accounting treatment of foreign exchange losses.

During the preparation of the Company's interim consolidated financial statements for the three and nine months ended September 30, 2009, the Company identified amounts relating to foreign exchange losses capitalized as property, plant and equipment and/or previously recorded in shareholders' equity which in accordance with Canadian GAAP should have been expensed as incurred in 2008 and 2007. Management decided to retrospectively restate the interim and annual consolidated financial statements for the fiscal year ended December 31, 2008 and the annual consolidated financial statements for fiscal year ended December 31, 2007 to correct these errors. The restatement impacted the consolidated statements of operations of all four quarters in 2008 and the fourth quarter in 2007 and the respective period end balance sheets as outlined below.

    
    As at and for the three months ended March 31, 2008:

    Consolidated balance sheet
    (Expressed in thousands of Canadian dollars)
    (Unaudited)
                                                As at March 31, 2008
                                       --------------------------------------
                                                As
                                        previously
                                            stated     Restated   Adjustment
                                       ------------ ------------ ------------
                                                 $            $            $

    Contributed surplus                      2,638        3,241          603
    Retained earnings                        9,616        9,013         (603)


    Consolidated statement of operations
    (Expressed in thousands of Canadian dollars, except share and per share
    amounts)
    (Unaudited)

                                             For the three months ended
                                                   March 31, 2008
                                       --------------------------------------
                                                As
                                        previously
                                            stated     Restated   Adjustment
                                       ------------ ------------ ------------
                                                 $            $            $

    Other (expense) income                     (24)        (307)        (283)
    Income (loss) before income taxes
     and non-controlling interest             (567)        (850)        (283)
    Income (loss) before
     non-controlling interest                 (775)      (1,058)        (283)
    Net income (loss)                         (713)        (996)        (283)

    Earnings per share
      Basic                                  (0.01)       (0.01)           -
      Diluted                                (0.01)       (0.01)           -


    As at and for the three and six months ended June 30, 2008:

    Consolidated balance sheet
    (Expressed in thousands of Canadian dollars)
    (Unaudited)

                                                As at June 30, 2008
                                       --------------------------------------
                                                As
                                        previously
                                            stated     Restated   Adjustment
                                       ------------ ------------ ------------
                                                 $            $            $

    Contributed surplus                      2,946        3,527          581
    Retained earnings                       12,527       11,946         (581)


    Consolidated statements of operations
    (Expressed in thousands of Canadian dollars, except share and per share
    amounts)
    (Unaudited)

                       For the three months ended  For the six months ended
                             June 30, 2008              June 30, 2008
                       --------------------------- --------------------------
                             As                         As
                       previous-                  previous-
                             ly            Adjust-      ly            Adjust-
                         stated  Restated    ment   stated  Restated    ment
                       --------- -------- -------- -------- -------- --------
                              $        $        $        $        $        $

    Other (expense)
     income                  (1)      21       22      (25)    (286)    (261)
    Income (loss) before
     income taxes and
     non-controlling
     interest             3,914    3,936       22    3,347    3,086     (261)
    Income (loss) before
     non-controlling
     interest             3,141    3,162       22    2,366    2,105     (261)
    Net income (loss)     2,911    2,932       22    2,198    1,937     (261)

    Earnings per share
      Basic                0.05     0.05        -     0.04     0.04        -
      Diluted              0.05     0.05        -     0.04     0.04        -


    As at and for the three and nine months ended September 30, 2008:

    Consolidated balance sheet
    (Expressed in thousands of Canadian dollars)
    (Unaudited)

                                              As at September 30, 2008
                                       --------------------------------------
                                                As
                                        previously
                                            stated     Restated   Adjustment
                                       ------------ ------------ ------------
                                                 $            $            $
    Accumulated other comprehensive
     income (loss)                           9,011        9,592          581
    Retained earnings                       13,249       12,668         (581)


    Consolidated statements of operations
    (Expressed in thousands of Canadian dollars, except share and per share
    amounts)
    (Unaudited)

                       For the three months ended  For the nine months ended
                            September 30, 2008          September 30, 2008
                       --------------------------- --------------------------
                             As                         As
                       previous-                  previous-
                             ly            Adjust-      ly            Adjust-
                         stated  Restated    ment   stated  Restated    ment
                       --------- -------- -------- -------- -------- --------
                              $        $        $        $        $        $

    Other (expense)
     income                   9        9        -      (15)    (276)    (261)
    Income (loss) before
     income taxes and
     non-controlling
     interest             1,105    1,105        -    4,452    4,191     (261)
    Income (loss) before
     non-controlling
     interest               873      873        -    3,239    2,978     (261)
    Net income (loss)       723      723        -    2,920    2,659     (261)

    Earnings per share
      Basic                0.01     0.01        -     0.05     0.05        -
      Diluted              0.01     0.01        -     0.05     0.05        -


    As at and for the three and twelve months ended December 31, 2008:

    Consolidated balance sheet
    (Expressed in thousands of Canadian dollars)

                                               As at December 31, 2008
                                       --------------------------------------
                                                As
                                        previously
                                            stated     Restated   Adjustment
                                       ------------ ------------ ------------
                                                 $            $            $

    Property, plant and equipment           49,124       48,129         (995)
    Total assets                           212,264      211,269         (995)

    Retained earnings                       18,441       17,446         (995)
    Total shareholders' equity             133,551      132,556         (995)
    Total liabilities and
     shareholders' equity                  212,264      211,269         (995)


    Consolidated statements of operations
    (Expressed in thousands of Canadian dollars, except share and per share
    amounts)

                                                        For the twelve
                       For the three months ended        months ended
                           December 31, 2008           December 31, 2008
                       --------------------------- --------------------------
                             As                         As
                       previous-                  previous-
                             ly            Adjust-      ly            Adjust-
                         stated  Restated    ment   stated  Restated    ment
                       --------- -------- -------- -------- -------- --------
                              $        $        $        $        $        $

    Other (expense)
     income                  37     (377)    (414)      21     (654)    (675)
    Income (loss) before
     income taxes and
     non-controlling
     interest             5,330    4,916     (414)   9,780    9,105     (675)
    Income (loss) before
     non-controlling
     interest             5,272    4,858     (414)   8,509    7,834     (675)
    Net income (loss)     5,194    4,780     (414)   8,112    7,437     (675)

    Earnings per share
      Basic                0.09     0.08    (0.01)    0.13     0.12    (0.01)
      Diluted              0.08     0.07    (0.01)    0.13     0.12    (0.01)


    As at and for the three and twelve months ended December 31, 2007:

    Consolidated balance sheet
    (Expressed in thousands of Canadian dollars)

                                               As at December 31, 2007
                                       --------------------------------------
                                                As
                                        previously
                                            stated     Restated   Adjustment
                                       ------------ ------------ ------------
                                                 $            $            $
    Accumulated other comprehensive
     income (loss)                          (3,105)      (2,785)         320
    Retained earnings                       10,329       10,009         (320)


    Consolidated statement of operations
    (Expressed in thousands of Canadian dollars, except share and per share
    amounts)
    (Unaudited)

                                            For the twelve months ended
                                                 December 31, 2007
                                       --------------------------------------
                                                As
                                        previously
                                            stated     Restated   Adjustment
                                       ------------ ------------ ------------
                                                 $            $            $

    Other (expense) income                     (18)        (338)        (320)
    Income (loss) before income taxes
     and non-controlling interest            7,597        7,277         (320)
    Income (loss) before
     non-controlling interest                7,047        6,727         (320)
    Net income (loss)                        6,259        5,939         (320)

    Earnings per share
      Basic                                   0.13         0.12        (0.01)
      Diluted                                 0.13         0.12        (0.01)
    

The restatements did not have any cash impact on the consolidated financial statements of the Company.

SOURCE HANWEI ENERGY SERVICES CORP.

For further information: For further information: Kim Oishi, Senior Vice President, Finance and Business Development, Telephone: (416) 804-9228, koishi@hanweienergy.com; Yucai (Rick) Huang, Chief Financial Officer, Telephone: (604) 685-2239, yhuang@hanweienergy.com; Kevin O'Connor, Investor Relations, Telephone: (416) 962-3300, ko@spinnakercmi.com

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HANWEI ENERGY SERVICES CORP.

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