China WindPower profit up 77.9% to HK$237mn

The Group was able to operate 20 grid-connected wind power plants with total capacity of 1,114MW and an attributable capacity of 535MW.

China WindPower Group Limited (“China WindPower” or the “Group”) (stock code: 182), an integrated wind power company in China, on Monday announced its unaudited interim results for the six months ended 30 June 2011.

During the period under review, China WindPower’s consolidated income amounted to HK$258 million, decreased by 26% as compared to the same period last year. This was mainly because relatively greater portion of the power plants in construction during the reporting period were wholly-owned by the Group. Income from EPC services and tower tube sales had to be eliminated during consolidation and therefore resulted in a decrease in revenue. Also, due to severe weather condition and delay in project approvals, some of the project constructions were also postponed, thus affected the sales revenue. Nevertheless, the Group’s overall profitability increased substantially.

The net profit attributable to equity holders amounted to HK$237 million, an increase of 77.9%. The basic earnings per share were HK3.21 cents (1H 2010: HK1.83 cents). The fully diluted earnings per share were HK3.18 cents (1H 2010: HK1.81 cents), according to a China WindPower report.

As at the end of the period under review, the Group’s net assets value totaled HK$4,250,789,000 (31 December 2010: HK$3,913,495,000) and its cash and cash equivalents were HK$1,418,017,000 (31 December 2010: HK$732,544,000).

Mr Liu Shunxing, Chairman and CEO of China WindPower, said: “All the businesses of China WindPower kept progressing smoothly and have maintained rapid and stable development. The Group further improved its vertical integrated business model. Apart from building power plants with joint venture partners, the Group has also begun to set up more wholly-owned power plants, adopting an approach of building the plants and selling a partial stake upon completion or operation.

Through this business strategy the Group can fully leverage its strengths in wind power development and wind power plant construction thereby attaining a more reasonable premium.”

Looking forward, Mr Liu said: “In the second half year of 2011, the Group will increase its resources development efforts and continue to maintain the scale of project development, and strive to achieve 900MW of approved capacity during 2011.

Meanwhile, the Group will continue to enhance its EPC&M capacity building and business expansion, and strive to complete construction of wind and solar power plants of 650MW. The Group will also carry out technical upgrades on the operational wind power plants to strengthen their safe operation and further improve wind turbine availability rates and capacity factors of the wind power plants, thus increasing profits.

Furthermore, the Group will also continue its “build and sell” strategy with a plan to sell 50 to 100MW of attributable capacity within the year, so as to provide additional recurring income and cash flow.”