China Wind Power Reports Second Quarter FY2011 Financial Results

TORONTO, Nov. 29 /CNW/ - China Wind Power International Corp. (TSX-V: CNW) today reported its financial results for the three- and six-month periods ended September 30, 2010. All amounts are in Canadian dollars unless otherwise indicated.

Selected Second Quarter Financial Highlights

In thousands except share or % data	Sept. 30, 2010	Sept. 30, 2009	Change
Total sales	$1,217	$705	+72.6%
Recorded revenue	$1,217	-	+$1,217
Adjusted EBITDA^1	$1,291	($393)	+$1,684
Net earnings (loss)	($569)	($2,726)	+$2,158
Net earnings (loss) per share - diluted^2	($0.01)	($0.06)	+$0.05
	Sept. 30, 2010	March 31, 2010	Change
Cash and Cash equivalents	$1,789	$373	+$1,416
Total assets	$133,598	$114,185	+17.0%
Total liabilities	$86,425	$71,075	+21.6%

^{_____________________________________
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 generally accepted accounting principles and may be calculated differently by other companies. China Wind reconciles EBITDA to its net earnings (loss).  Adjusted EBITDA excludes stock-based compensation.
²  China Wind Power's weighted average number of shares at September 30, 2010 was 61,642,698 compared to 47,979,497 at September 30, 2009.

"Consistent with expectations, our second quarter was marked by steady improvement to each of our key financial metrics," said Mr. Jun Liu, Chief Executive Officer, China Wind Power International Corp. "In particular, we generated record revenue and record adjusted EBITDA. We also posted our lowest net loss to date. This progress positions us very well as we enter the time of year when wind speeds in China are at their highest and the potential for power generation is at its peak."

Q2 Operational Highlights

• Generated more than 15.2 million KWh of electricity in Q2 for an aggregate production to date of 83 million KWh as of September 30, 2010.
• Continued construction of Phase 2, which is expected to be completed in the second quarter of calendar 2011 and generate a capacity of 49.5 MW of wind energy output.

Highlights subsequent to Quarter-end

• Closed a non-brokered private placement that generated gross proceeds of $4.3 million.
• In final process with the Agricultural Development Bank of China for additional debt financing that will support the completion of Phase 2 and future wind power projects.
• Generated 10.7 million KHh of electricity in October, 2010.

Selected Year-to-Date 6-Month Financial Highlights

In thousands except share or % data	FY2011	FY2010	Change
Total sales	$2,423	$1,334	+81.6%
Recorded revenue	$2,423	-	+$2,423
Adjusted EBITDA	$1,890	($785)	+$2,675
Net earnings (loss)	($1,974)	($3,129)	+$1,155
Net earnings (loss) per share - diluted	($0.03)	($0.08)	+$0.05

Review of Second Quarter Financial Results
Total electricity sales for the second quarter of FY2011 were $1.2 million, up 72.7% from $0.7 million for the corresponding period of FY2010. The growth is due to the completion of Phase 1 of the Company's wind energy projects and the resulting start of commercial energy production. Total sales for Q2 FY2011 were impacted by slower wind speed, which is common in China during the summer months.  Subsequent to quarter end, the Company generated 10.7 million KWh of electricity in October.  The increase in electricity product is attributable to a combination of factors, including higher wind speeds that are prevalent in China during the fall months as well as improved turbine performance resulting from the ongoing calibration and tuning of equipment.

Phase 1 is currently operating at an average of 60% capacity consistent with Management's expectation and previous guidance given ongoing calibration and tuning of turbines. It is expected that full production capacity for Phase 1 will be achieved in the first quarter of calendar 2011.

Revenue for Q2 FY2011 was $1.2 million. The Company had no recorded revenue for the corresponding period of FY2010 after excluding the recovery of wind farm plant costs of $705,162.  The recovery costs were recorded during the testing, tuning and calibration of the Phase 1 wind project.

Adjusted EBITDA for Q2 FY2011 was $1.3 million, up from adjusted negative EBITDA of $0.4 million for the corresponding of FY2010, representing a positive turnaround of $1.7 million.  The year-over-year improvement in adjusted EBITDA was due to a number of factors, including higher revenue and higher amortization and interest expenses as the Company continues its roll-out of its five-phased development plan.  Adjusted EBITDA for Q2 FY2011 excluded a stock-based compensation charge of $0.2 million as well as amortization expenses of $0.9 million and interest expenses of $0.8 million. 

Net loss for Q2 FY2010 was $0.6 million, or $0.01 per share.  This compares to a net loss of $2.7 million, or $0.06 per share, for Q1 FY2010.  The decline in net loss was primarily attributable to the recording of revenue sales of $1.2 million and a decline in stock-based compensation charges of more than $2.1 million on a year over year basis. 

At September 30, 2010, China Wind had cash totaling $1.8 million, total assets of $133.6 million and total liabilities of $86.4 million. These compare to $0.4 million, $114.2 million and $71.1 million, respectively at March 31, 2010.  Subsequent to quarter end, the Company closed a private placement that generated gross proceeds of $4.3 million.

Outlook
"Our recent financing will help us to accelerate completion of Phase 2 of our wind farm project, which we now expect to be completed by the end of the second quarter of calendar 2011," added Mr. Liu.  "Adding another 49.5 MW of capacity will be a key milestone on our path towards completing our five-phased development plan, which will generate 547 MW of wind energy, by the end of 2014."

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 61.5 million shares outstanding.

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

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 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.

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