SOURCE: GC China Turbine Corp.

GC China Turbine Corp.

August 18, 2010 13:21 ET

GC China Turbine Announces Second Quarter Financials

NEW YORK, NY--(Marketwire - August 18, 2010) - GC China Turbine Corp. (OTCBB: GCHT)

--  Sales for the six months ended June 30, 2010 were US$23,058,868
--  Gross profit for the six months ended June 30, 2010 was US$5,709,837
    or 24.76% of net sales
--  Company Ships 40 Wind Turbines

GC China Turbine Corp. (OTCBB: GCHT) (the "Company" or "GC China"), a leading Chinese manufacturer of twin blade wind turbines, wishes to advise that the following discussion of the financial condition, results of operations, cash flows and changes in our financial position should be read in conjunction with our audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 filed on April 15, 2010.

The largest component of our cost of sales, raw materials, consists of components, fittings and materials used in the manufacture of our wind turbines. Most of these raw materials are procured within China. With the anticipated growth of the wind power industry in China, management expects that the manufacturing capacity of the parts and components of our wind turbines will also continue to grow and result in decreased costs for these raw materials within our industry. In addition, if we are able to grow successfully and increase production, management believes we will be able to negotiate better pricing on raw materials through higher volume purchase and more efficiently utilize its manufacturing capacity resulting in a lower average cost of production per unit.

Comparison of Three Month Periods Ended June 30, 2010 and June 30, 2009

Revenues

Sales for the three months ended June 30, 2010 were US$11,060,941 compared to nil for the three months ended June 30, 2009. GC China started mass production based on orders from customers during the second half of 2009 and 20 wind turbines were sold in the second quarter of 2010.

Cost of sales and gross profit margin

Total cost of sales for the three months ended June 30, 2010 was US$8,268,677, an increase from nil for the three months ended June 30, 2009. Gross profit for the three months ended June 30, 2010 was US$2,792,264 or 25.24% of net sales.

Comparison of Six Month Periods Ended June 30, 2010 and June 30, 2009

Revenues

Sales for the six months ended June 30, 2010 were US$23,058,868 compared to nil for the six months ended June 30, 2009. We started mass production based on orders from our customers during the second half of 2009 and 40 wind turbines were sold in the first six months of 2010.

Cost of sales and gross profit margin

Total cost of sales for the six months ended June 30, 2010 was US$17,349,031, an increase from nil for the six months ended June 30, 2009. Gross profit for the six months ended June 30, 2010 was US$5,709,837 or 24.76% of net sales.

                          GC China Turbine Corp.
        UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
           (Amounts expressed in US dollars, except share data)



                          Three Months Ended           Six Months Ended
                                 June 30                   June 30
                        ------------------------- ------------------------
                            2010         2009         2010         2009
                        -----------  ------------ ------------ -----------

Revenues                $11,060,941  $          - $ 23,058,868 $         -
Cost of sales             8,268,677             -   17,349,031           -
Gross profit              2,792,264             -    5,709,837           -

Operating expenses:
Selling and marketing
 expenses                    81,264        16,975      134,155      27,787
Research and
 development expenses       186,310        16,392      339,274      40,775
General and
 administrative
 expenses                   542,960       227,509    1,055,691     310,897
    Other operating
     income                 (23,382)            -      (23,382)          -
Income (loss) from
 operations               2,005,112      (260,876)   4,204,099    (379,459)

Interest expense             18,228        35,781       26,690      82,655
Interest income              31,484             -       69,296          21
Other income (expense),
 net                          6,883        (5,364)       5,597      (5,364)
Gain from change in
 fair value of warrant
 liability                  202,922             -      471,408           -

Income (loss) before
 provision for income
 tax                      2,228,173      (302,021)   4,723,710    (467,457)
Provision (benefit) for
 income tax                 597,224       (75,505)   1,246,084    (116,864)
Net income (loss)         1,630,949      (226,516)   3,477,626    (350,593)
Net (loss) attributable
 to noncontrolling
 interest                   (25,504)            -      (47,656)          -
Net income (loss)
 attributable to GC
 China Turbine Corp.
 common shareholders    $ 1,656,453  $   (226,516) $  3,525,282 $ (350,593)

Earnings (loss) per
 share- basic           $      0.03  $      (0.01) $      0.06  $    (0.01)
Earnings (loss) per
 share- diluted         $      0.02  $      (0.01) $      0.05  $    (0.01)

Weighted average common
 share outstanding-
 basic                   59,074,411    32,383,808   59,022,501  32,383,808

Weighted average common
 share outstanding-
 diluted                 59,892,558    32,383,808   60,057,897  32,383,808

Additional details regarding the Company and its business, financial condition and management of GC China and related parties are filed as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database.

About GC China Turbine Corp. (OTCBB: GCHT)

GC China is a leading manufacturer of state-of-the-art 2-bladed wind turbines based in Wuhan City of Hubei Province, China. The Company holds a license to manufacture a groundbreaking technology which meets rigorous requirements for low-cost and high reliability. The technology was developed through a 10 year European research project costing over US$75 million. GC China's launch product is a 1.0 megawatt ("MW") utility scale turbine with designs for a 2.5MW and 3.0MW utility scale turbine in development. For more information visit: www.gcchinaturbine.com

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, completion of definitive agreements with local and provincial governments, wind farms and utility companies, number of wind turbine systems ordered, manufactured, delivered and installed, the Company's future strategic plans, the outlook for the Company's markets and the demand for its products, estimated sales, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD

GC China Turbine Corp.

- - - - - - - - - - - - - - - - - -

Marcus Laun, Director

For more information, visit our website at: http://www.gcchinaturbine.com/.

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