China WindPower Announces FY2010 Interim Results

On 11th August, We announced our unaudited interim results for the six months ended 30 June 2010.

During the reporting period, the Group’s consolidated income amounted to HK$348,990,000, up 153% as compared to the same period last year. Profit attributable to equity holders was HK$133,165,000, up 113% from the same period last year. Basic earnings per share were1.83 HK cent (1H 2009: 1.01 HK cent) and fully diluted earnings per share were1.81 HK cent (1H 2009: 0.98 HK cent).

By the end of the reporting period, the Group’s net asset value amounted to HK$3,445,241,000 (31 December 2009: HK$3,267,843,000) and its cash and cash equivalents amounted to HK$941,464,000 (31 December 2009: HK$1,109,561,000).

Mr. Liu Shunxing, Chairman and CEO of the Group, said, “Each segment of the Group progressed smoothly and maintained a fast development pace. Profit from wind farm investment increased by 347% to HK$64,805,000 compare to 1H 2009. It is also worth pointing out that during the period, International Finance Corporation (IFC), a member of the World Bank Group, signed an agreement with us to provide a long-term project loan of US$152 million and invest US$10 million in China WindPower which diversified our financing channels and enhanced the Group’s capability to control costs of funds.”  

Wind Power Business Overview
During the period, the Group enlarged its investment in wind power projects, and initiated the construction of 6 wind power plants with a total capacity of 297MW. As at the end of the reporting period, 10 wind power plants of total capacity 647MW were under construction. As at the end of the reporting period, a total of 22 wind power plants have been invested, with cumulative installed capacity of 1,213MW and attributable installed capacity of 681MW. 12 of these wind power plants with total installed capacity of 566MW are in operation.
For the first half year, the Group’s wind farms generated electricity output of 521 million kWh in total, of which 230 million kWh is attributable to the Group. The wind power plants functioned well, and in general the power output was higher than the designed capacity. The power generation income for the Group has reached a substantial and fast growing level.

The Group signed agreements with local governments to exclusively develop wind resources in Liaoning, Jiangsu, Jiangxi and Hubei, totaling 1,000MW. As at the end of the reporting period, the Group had obtained exclusive wind resources of 10.5GW. The Group also obtained grid connection approvals and proposal approvals for 5 wind power projects during the period. Meanwhile, the Group has initiated preliminary development preparing and feasibility studies on wind-solar hybrid generation for its solar power projects in Gansu, Inner Mongolia, Liaoning and Jilin.

With respect to Clean Development Mechanism (CDM) development, sales agreement of Certified Emission Reduction (CER) for 3 wind power projects were signed, of which, 4 projects were successfully registered with the United Nations CDM Executive Board. As at the end of the reporting period, the Group had signed contracts in respect of 17 wind power plant’s CER sales agreement, 15 of which have obtained approval from the National Development and Reform Commission, and 6 projects have secured registration with the United Nations.
The Group made remarkable contribution to emissions reduction. Its wind power plants reduced the emission of carbon dioxide by 528,000 tons, the emission of sulfur dioxide by 5298 tons, and the emission of nitrogen oxides by 470 tons during the reporting period.
Besides, the Group provided consultancy & design services of 137 jobs, such as preparing wind resources evaluation reports, preliminary resources allocation reports, feasibility study reports, micro-site selection reports, and construction drawing design etc, and generated revenue of HK$26,626,000 in first half of 2010 (1H 2009: HK$1,741,000).
Regarding the Group’s engineering and construction services, the Group took on engineering and construction work for 12 wind power projects (total capacity of 800MW) during the reporting period and generated revenue of HK$101,943,000 (1H 2009: HK$74,175,000).
During the period, the Group expended the tower tube manufacturing capacity. The Group invested in a large-scale tower tube production line, which will have the capacity to produce 300 tower tubes a year for wind turbines of up to 3MW. Upon commencement of operation of the new plant by October 2010, the Group will be able to produce more than 400 tower tubes a year for wind turbines of up to 3 MW.  During first half of 2010, and the Group’s tower tube manufacturing unit produced 142 tower tubes and generated revenue of HK$194,231,000 (1H 2009: HK$54,310,000).

The Group also provided operation and maintenance services to 13 wind power plants and recorded revenue of HK$26,190,000 in first half of 2010 (1H 2009: HK$7,628,000).
Looking ahead, Mr. Liu said, “As many countries are putting strong emphasis on developing renewable energies and the Chinese government is committed to reduce carbon dioxide emission, the Group will endeavor to complete the construction of ongoing wind farms, in order to achieve above 500MW of newly installed capacity in 2010.  In the next one or two years, the Group will also prioritize development of wind power projects in east China, central China and south China where grid connection and curtailment are less of a problem. We will continue to strengthen our core competitiveness in wind power services and further intensify management and cost control, with an aim to seek higher efficiency and return. We believe that we have laid a solid foundation for turning China WindPower Group into an international top-tier wind power enterprise.”

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