China Wind Power International Corp.
TSX VENTURE : CNW

China Wind Power International Corp.

November 28, 2011 17:00 ET

China Wind Power Reports Second Quarter Results

Foundations Completed for 198 MW Phase III Development

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2011) - China Wind Power International Corp. (TSX VENTURE:CNW) ("China Wind Power" or the "Company"), an independent wind power producer in China, today reported its financial results for the three month period ended September 30, 2011, and provided an update on its wind farm development projects in Du Mon County. All amounts are in Canadian dollars unless otherwise indicated.

"While our results for the quarter were down due to a major maintenance completed at Phase 1 in August, our year-to-date results remain well ahead of those from a year earlier," said Mr. Jun Liu, Chief Executive Officer of China Wind Power. "Subsequent to the end of the quarter, Phase 1 generated 11.2 million KWh of electricity during the month of October compared to 10.7 million KWh in October of last year. Importantly, we are now at the time of year when wind speeds in northern China are at their highest and the potential for power generation is at its peak."

Selected Financial Highlights

(In thousands except per share or percentage data)

Three months ended Six months ended
Sept. 30, 2011 Sept. 30, 2010 Sept. 30, 2011 Sept. 30, 2010
Revenue 1,175 1,217 3,352 2,423
Adjusted EBITDA(1) 521 1,292 2,146 1,890
Net loss 1,437 569 1,565 1,974
Net loss per share - diluted 0.02 0.01 0.02 0.03
Sept. 30, 2011 Mar. 31, 2011
Cash 12,585 635
Total assets 173,505 139,401
(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.

China Wind Power's financial results for the second quarter were impacted by the Company completing a major maintenance of its Phase 1 wind farm in August. As a result of the downtime during the maintenance period, Phase 1 generated approximately 14.5 million KWh of electricity during the quarter, down from more than 15.2 million KWh in the second quarter of last year. The lower output resulted in a 3.5% decrease in revenue for the quarter.

Adjusted EBITDA for the quarter decreased nearly $0.8 million to $0.5 million. The decrease was largely the result of the lower revenue for the quarter and a $0.7 million decrease in other income. The increase in net loss for the quarter was also due to a $0.1 million increase in stock-based compensation resulting from newly issued stock options.

Update on Wind Farm Development Projects in Du Mon County

Phase Capacity Status
1 49 MW Aggregate production to date of 187 million KWh as of October 31, 2011.
2 49.5 MW Construction to be substantially completed by the end of December 2011.
3 198 MW Foundations laid for all 132 turbines; construction to be completed by the end of June 2012.
4 ~300 MW Plans submitted for formal government approval.
5 ~200 MW Feasibility study underway.

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.

For more information and the latest updates on China Wind Power International Corp., visit our investor relations blog at http://chinawindpower.posterous.com or follow our updates on Twitter at http://twitter.com/ChinaWindPower.

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 2, 2011, 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.

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