"Fiscal 2011 was a watershed year in the Company’s development," said Mr. Jun Liu, Chief Executive Officer, China Wind Power International Corp. "It was the first full year of operations for Phase I of our current five phase development and we became profitable in the third quarter of the first year. We look forward to continuing the development of the remaining four phases and fully capitalizing on the potential of our Du Mon County project site, in Heilongjiang Province."
For the 12-month period ended March 31, 2011, the first year of operations for Phase I of the Company’s five phase wind project, China Wind Power generated and sold 81.0 GWh of electricity and realized revenue of $6.6 million, surpassing fiscal 2010’s annual production of 51.9 GWh and revenue of $3.8 million.
For the fourth quarter of fiscal 2011, the Company generated and sold 21.3 GWh of electricity and realized revenue of $1.7 million compared to 15.2 GWh of electricity and $1.2 million of revenue for the same period last year. The fourth quarter was the first in which Phase I was fully ramped up and operating at planned capacity.
For the first two-months of the first quarter of fiscal 2012, the Company generated and sold 22.1 GWh electricity and realized revenue of $1.8 million, already surpassing last year’s production of 15.4 GWh of electricity and revenue of $1.2 million for fiscal Q1 2011. The quarter over quarter increase in production is consistent with an increase in wind speeds during the spring months in Du Mon County. Audited financial statements are expected to be released by the end of July.
Phase II Update
To date, the Company has installed 22 out of the 35 wind turbines planned for Phase II of the Company’s wind project. The remaining 13 wind turbines are expected to be installed by the end of December. The initial installation delay was due to a postponement of delivery by the turbine suppliers. As a result of the unavoidable delay of delivery of the turbines, management has decided to work with the turbine suppliers to incorporate recent advances in technology such as higher towers and longer blades into the design of the remaining turbines.
Phase III Update
The Company has received all regulatory and environmental approvals for the third phase of its five phase wind farm. Phase III will be 198 MW in size and construction is expected to begin in the third quarter of the current calendar year. The Company is currently finalizing the construction and supply agreements for Phase III with a major international turbine manufacturer and supplier. After Phase III finishes next year, the Company will have approximately 300 MW wind farms in production, making it one of the largest independent wind power producers in China.
China Wind Power International Corp. is an Ontario company that is uniquely positioned to capitalize on the growing demand for wind energy 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.