China Wind Power International Corp.

China Wind Power International Corp.

September 28, 2011 15:00 ET

China Wind Power Generates Stronger First Quarter Results

Higher Power Output Generates Revenue Growth of 80.6% and 171.4% Increase in Adjusted EBITDA(1)

TORONTO, ONTARIO--(Marketwire - Sept. 28, 2011) - China Wind Power International Corp. (TSX VENTURE:CNW) ("China Wind Power" or the "Company"), an independent wind power producer in China, achieved strong growth in revenue and adjusted EBITDA for the three month period ended June 30, 2011. All amounts are in Canadian dollars unless otherwise indicated.

"Our higher revenue and adjusted EBITDA for the quarter are the result of Phase I approaching designed capacity," said Mr. Jun Liu, Chief Executive Officer of China Wind Power. "While pleased by our improved financial results, we are still in the early stages of our Company's history. With an installed capacity of 49 MW, Phase I is just a fraction of the total 800 MW development we have planned for Du Mon County. Our recently announced engineering, procurement and construction contract and subsequent breaking of ground at Phase III move us closer to realizing our vision to be the largest independent developer, owner and operator of wind farms to provide clean energy in China."

Selected First Quarter Financial Highlights
(In thousands except per share or percentage data)
June 30, 2011 June 30, 2010 Change
Revenue 2,177 1,206 +80.6 %
Adjusted EBITDA 1,625 599 +171.4 %
Net loss 127 1,405 -91.0 %
Net loss per share – diluted 0.002 0.02 -90.0 %
June 30, 2011 March 31, 2011
Cash & cash equivalents 390 635 -38.6 %
Total assets 142,207 139,401 +2.0 %

Growth in revenue and adjusted EBITDA were attributable to an increase in power generated during the quarter. Phase I generated more than 28 million KWh of electricity during the quarter, up from 15 million KWh in the first quarter of last year. The increase in power generated was the result of the wind farm having approached designed capacity and the first quarter of last year being impacted by the re-calibration and fine-tuning of turbine equipment. The improved bottom line for the quarter was the result of the higher revenue achieved and a $0.3 million decrease in stock-based compensation.

Effective for the first quarter ended June 30, 2011, China Wind Power began reporting its financial results in accordance with International Financial Reporting Standards (IFRS), including comparative information. The adoption of IFRS did not result in any material changes to the Company's net loss; statements of cash flows; nor financial covenants and existing lending agreements.

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 approximately 800 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 63.9 million shares outstanding.

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Caution Regarding 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 November 5, 2010, which is available at 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.

(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 IFRS accounting principles and may be calculated differently by other companies. China Wind Power reconciles EBITDA to its net earnings (loss). Adjusted EBITDA excludes stock-based compensation.

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.

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