GC China has completed shipment of these wind turbines on November 29, 2010, and expects to recognized revenues in an amount of $13 million (RMB 87.7 million) on these turbines in the fourth quarter. From the beginning of 2010 to the date of this release, the Company has booked approximately $40 million in revenues and a range of $4 to $5 million in net income. This represents a growth of approximately 206% to 221% compared to the 2009 full-year net income for GC China.
As of November 30, 2010, GC China currently has available $13.5 million (RMB 90.3 million) in working capital, which consists of $5.0 million (RMB 33.37 million) in cash.
By the end of November, the Company has a loan facility in the amount of $17.9 million (RMB 120 million) from a PRC bank. The company has drawn down $9 million (RMB 60 million) with the annual interest rate of 6.37% and $4.5 million (RMB 30 million) with the annual interest rate of 6.67%. There is $4.4 million (RMB 30million) available from the loan facility for future borrowing.
In December, the Company has obtained a new line of credit of $7.5 million (RMB 50 million) to be used for raw materials procurements from another PRC bank.
Based on actual receipt of $3.5 million in accounts receivable this quarter, and the Company’s current funds available under certain loan facilities, GC China anticipates that it has sufficient capital on hand and available to fulfill its shipment commitment through year end.
Tianhe Wind Power Development Co. is a wind farm project company under the Guodian Group, which is one of China’s five-largest power generation groups employing 110,000 employees across 16 regions and provinces. It has 13 large subsidiaries, 2 scientific research institutes and nearly 200 primary power generation enterprises.
As of June, 2010, its total assets reached $68.5 billion, and it had a total controlled installed capacity of 84.7 thousand MW, including 71.3 thousand MW by coal-fired, representing 84.14% of total installed capacity; 8.0 thousand MW by hydropower (including 3.9MW tidal generation), 9.43% of total installed capacity; 5.4 thousand MW by wind energy capacity, 6.37% of total installed capacity; 55 MW by biomass, accounting for 0.06% of total installed capacity.
GC China is a leading manufacturer of state-of-the-art 2-bladed wind turbines based in Wuhan City of Hubei Province, China. The Company identified a 2-bladed wind turbine technology in the wind energy space that would be reliable and cost-effective to manufacture. The development project that created the 2-bladed wind turbine was developed through a 10 year research project costing over US$ 75 million. GC China’s launch product is a 1.0 megawatt (‘MW’) utility scale wind turbine with designs for a 2.5 MW and 3.0 MW utility scale turbine in development.