WUXI, Jiangsu Province, China,
Nov. 16, 2010
/PRNewswire-Asia-FirstCall/ -- – China Wind Systems, Inc. (Nasdaq:
CWS), ("China Wind Systems" or the "Company"), a leading supplier
of forged rolled rings and other forged components to the wind
power and other industries and industrial equipment primarily to
the textile industry in China, today announced its financial
results for the third quarter and the nine months ended
September 30, 2010.
Third Quarter 2010 Highlights and Recent
Events
- Net revenue increased 31.8% year over year to $21.3 million
- Revenue from the sale of forged products to the wind power and
other industries increased 40.8% year over year to $15.7 million, or 73.9% of net revenues
- Revenue from the sale of forged products to the wind power
industry increased 80.7% year over year to $12.4 million, or 58.4% of net revenue
- Operating income increased 21.0% year over year to $4.1 million
- Earnings before interest, taxes, depreciation and amortization
(EBITDA) increased 28.2% year over year to $5.1 million
- Net income increased 19.0% to $3.0
million
- Diluted earnings per share rose 33.3% to $0.12; year ago diluted earnings per share
reflects a $0.5 million deemed
preferred dividend
- In July 2010, the Company
delivered the first customer shipment of its Electro-Slag Remelted
(ESR) forged products
- In August 2010, the Company
received a $4.5 million contract to
supply rolled rings to Luoyang Xin Qiang Lian Bearing Co., Ltd
"In the third quarter of 2010, we achieved significant progress
in terms of new orders for our wind power business," commented Mr.
Jianhua Wu, Chairman and CEO of
China Wind Systems, Inc. "In keeping with our aim to supply high
quality components to the renewable energy sector, we recently
expanded into the solar market as supplier of precision components
for solar cell manufacturing equipment with a $1 million conditional purchase order. We expect
to receive increased interest from renewable energy players, which
will be an important driver for China
Wind's future revenue and net income growth."
Third Quarter 2010 Results
Net revenue for the third quarter of 2010 increased 31.8% to
$21.3 million, compared to
$16.1 million in the same period of
2009. The increase was primarily due to strong sales growth of
forged rolled rings and related components for the wind power
industry segment, as well as improvement in the dyeing and
finishing equipment segment, which was offset by a decline in sales
of forged rolled rings and other components to other industries.
Revenue from the sale of forged rolled rings to the wind power
industry and other industries grew 40.8% to $15.7 million, or 73.9% of net revenue, compared
to $11.1 million, or 69.1% of net
revenue, in the same period last year. Revenue from the sale of
forged rolled rings to the wind power industry rose 80.7% to
$12.4 million, representing 58.4% of
net revenue, compared to $6.9
million, or 42.9% of net revenues in the comparable period
last year. Revenue from the sale of forged rolled rings to
other industries decreased by 23.3% to $3.3
million, or 15.5% of net revenue, compared with $4.3 million for the comparable period of the
prior year. Revenue from the Company's dyeing and finishing
equipment segment increased 11.6% to $5.6
million, or 26.1% of net revenues, compared to $5.0 million, or 30.5% of net revenue, for the
third quarter of 2009. The dyeing and finishing equipment segment
improved year over year, reflecting both the effects of the Chinese
government's encouragement to support textile industry in China and
the recovery of the Chinese economy from the global economic
downturn which was reflected in the low level of revenue during the
2009 quarter.
Gross profit for the third quarter of 2010 increased 39.4% to
$5.4 million, compared to
$3.9 million for the same period in
the prior year. Gross margin increased 1.4 percentage points to
25.5%, compared to 24.1% for the same period in 2009. Gross margin
for the Company's forged rolled rings and other components and
dyeing and finishing equipment were 26.9% and 21.4% respectively
during the third quarter of 2010 compared to 25.1% and 21.7%
respectively during the same quarter last year. The increase in
gross margin for forged rolled rings and other components segment
was largely attributable to improved operational efficiency as the
Company increased capacity utilization during the quarter compared
to the same period of fiscal 2010. The 0.3 percentage points
decline in gross margin for the Company's dyeing and finishing
equipment segment was attributable to an increase in the cost of
raw materials as well as lower sales prices due to stronger
competition in the textile equipment industry in China.
Operating expenses increased 173.4% to $1.3 million, compared to $0.5 million in the comparable period last year,
as a result of higher selling, general, and administrative expenses
related increased payroll expenses, bad debt expenses, and
professional fees.
Operating income increased 21.0% to $4.1
million, compared to $3.4
million for the same period in 2009. Operating margin was
19.5% compared to 21.2% in the third quarter last year.
EBITDA, a non-GAAP measurement, rose 28.2% to $5.1 million, compared to $4.0 million in the same period last year. The
reconciliation of EBITDA to net income is discussed below.
Net income increased 19% to $3.0
million, compared to $2.5
million in the comparable period last year. During the third
quarter of 2009, the Company recorded a $0.5
million in non-cash deemed preferred dividends related to
the issuance of 2.4 million series A preferred shares. Net
income allocable to shareholders increased 46.0% to $3.0 million, compared to $2.0 million a year ago. Diluted earnings
per share were $0.12, compared to
$0.09 in the same period of 2009.
Diluted earnings per share were calculated using weighted average
shares of 25,312,979 and 23,506,936 for the three months ended
September 30, 2010 and September 30, 2009, respectively.
Nine months Results
For the nine months ended September
2010, revenues increased to $57.1
million, up 51.9% from $37.6
million in the corresponding period of 2009. Gross profit
increased 72.5% to $14.8 million,
compared to $8.6 million in the same
period one year ago. Gross margin in the first nine months of
2010 was 26.0%, up 3.1 percentage points from 22.9% during the
corresponding period in 2009. Operating income increased 59.3% to
$11.1 million from $6.9 million. EBITDA, a non-GAAP measurement,
rose 58.9% to $13.3 million, compared
to $8.4 million in the same period
last year. Net income increased 61.3% to $7.9 million, compared to $4.9 million in the comparable period last year.
During the first nine months of fiscal 2009, the Company recorded a
$0.5 million in non-cash deemed
preferred dividends related to the issuance of 2.4 million series A
preferred shares. Net income allocable to shareholders
increased 78.0% to $7.9 million,
compared to $4.5 million a year ago.
Diluted earnings per share were $0.32, compared to $0.20 in the same period of 2010. Diluted
earnings per share were calculated using weighted average shares of
24,904,210 and 21,969,692 for the nine months ended September 30, 2010 and September 30, 2009, respectively.
Financial Condition
As of September 30, 2010, China
Wind Systems held cash and cash equivalents of $1.8 million, accounts receivable of $8.6 million, and working capital of $8.4 million. The Company had $1.3 million in short-term loans payable, no
long-term debt and stockholders' equity stood at $57.0 million.
In the first nine months of 2010, the Company generated
$7.3 million in operating cash flow
and spent $9.2 million in capital
expenditures, primarily for property and equipment related to the
Company's ESR production line.
Recent Events
In October 2010, the Company
received a new contract to supply high-speed shafts to Nanjing
Chang Feng New Energy Holdings, an electric generator
manufacturer.
In November 2010, the Company
received conditional purchase contract to supply precision
components for solar cell manufacturing equipment.
In November 2010, the Company
received another contract to supply forged rolled rings to Luoyang
Xin Qiang Lian Bearing Co., Ltd., a wind power component
producer.
Business Outlook
"We anticipate continued growth from our wind power business as
industry analysts estimate that the Chinese government will spend
as much as RMB1.5 trillion, or
$224 billion, on wind power over the
next decade, representing 30% of the RMB5.0
trillion planned alternative energy spending," said Mr. Wu.
"We also see potential expansion and growth opportunities in
different industries within the alternative energy sector, such as
our recent conditional purchase contract to supply precision
components for solar cell manufacturing equipment. We already
possess the required manufacturing skills due to our prior
experience in manufacturing heavy machinery. Based on our
customer's current estimates and anticipated order flow, if this
initial order proves successful, its potential purchases on annual
basis during 2011 could total between $12
million and $20 million."
The Company maintains its 2010 revenue estimate to be in the
range of $76.5 million to $85.0
million, and lowered its estimates for EBITDA, a non-GAAP
measurement, to be $20.0 million from
a prior range of $22.7 million to $25.2
million and net income to be $12.0
million from a prior range of $15.5
million and $16.3 million.
The Company revised its 2010 guidance as its new ESR facility
took longer than anticipated to achieve target gross margins.
Conference Call
China Wind will conduct a
conference call at 8:00 a.m. ET on
Tuesday, November 16, 2010 to discuss
results for the third quarter of fiscal 2010.
To participate in the live conference call, please dial the
following number five to ten minutes prior to the scheduled
conference call time: (877) 359-2891. International callers should
dial (702) 224-9578. When prompted, please enter conference
passcode: 249 247 80
If you are unable to participate in the conference call at this
time, a replay will be available for 14 days starting on
November 16, 2010 at 9:00 a.m. ET. To access the replay, dial (800)
642-1687. International callers dial (706) 645-9291, and enter
passcode: 249 247 80
About China Wind Systems, Inc.
China Wind Systems supplies precision forged components such as
rolled rings, shafts and flanges to the wind power and other
industries and industrial equipment primarily to the textile
industry in China. With its newly finished state-of-the-art
production facility, the Company has increased its production and
shipment of high-precision rolled rings and other essential
components primarily to the wind power and other industries. For
more information on the Company, visit
http://www.chinawindsystems.com. Information on the Company's Web
site or any other Web site does not constitute a portion of this
release.
Use of Non-GAAP Financial Information
To supplement the Company's consolidated financial statements
presented on a GAAP basis, the Company has provided non-GAAP
financial information, namely earnings before interest, taxes,
depreciation and amortization (EBITDA). The Company's management
believes that this non-GAAP measure provides investors with an
understanding of how the results relate to the Company's historical
performance. The non-GAAP information is not meant to be considered
in isolation or as a substitute for GAAP financials. A
reconciliation of each non-GAAP measures appear below:
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of the Company and its subsidiary and
affiliated companies. These forward looking statements are often
identified by the use of forward-looking terminology such as
"believes," "expects" or similar expressions. Such forward looking
statements involve known and unknown risks and uncertainties that
may cause actual results to be materially different from those
described herein as anticipated, believed, estimated or expected.
Investors should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on its website. Any information on the
Company's website or any other website does not constitute a part
of this press release. All forward-looking statements
attributable to the Company or to persons acting on its behalf are
expressly qualified in their entirety by these factors other than
as required under the securities laws. The Company does not assume
a duty to update these forward-looking statements.
CHINA WIND
SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
September 30, 2010
|
|
|
December 31, 2009
|
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,773,709
|
|
|
$
|
2,278,638
|
|
|
Notes
receivable
|
|
|
353,226
|
|
|
|
329,492
|
|
|
Accounts receivable, net
of allowance for doubtful accounts
|
|
|
8,631,036
|
|
|
|
6,046,422
|
|
|
Inventories, net of
reserve for obsolete inventory
|
|
|
4,230,887
|
|
|
|
2,232,264
|
|
|
Advances to
suppliers
|
|
|
1,506,709
|
|
|
|
450,507
|
|
|
Prepaid VAT on
purchases
|
|
|
1,978,549
|
|
|
|
378,543
|
|
|
Prepaid expenses and
other
|
|
|
42,994
|
|
|
|
213,835
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
18,517,110
|
|
|
|
11,929,701
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT -
net
|
|
|
44,820,520
|
|
|
|
36,863,501
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS:
|
|
|
|
|
|
|
|
|
|
Land use rights,
net
|
|
|
3,740,686
|
|
|
|
3,729,427
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
67,078,316
|
|
|
$
|
52,522,629
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Loans payable
|
|
$
|
1,343,665
|
|
|
$
|
2,040,111
|
|
|
Accounts
payable
|
|
|
6,880,157
|
|
|
|
3,404,521
|
|
|
Accrued
expenses
|
|
|
351,863
|
|
|
|
556,662
|
|
|
VAT and service taxes
payable
|
|
|
89,221
|
|
|
|
25,284
|
|
|
Advances from
customers
|
|
|
237,671
|
|
|
|
143,261
|
|
|
Income taxes
payable
|
|
|
1,190,504
|
|
|
|
1,018,514
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
10,093,081
|
|
|
|
7,188,353
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
Preferred stock $0.001 par
value (60,000,000 shares authorized, all of which were
designated as series A convertible preferred, 14,257,264 and
15,419,088 shares issued and outstanding; at September 30, 2010 and
December 31, 2009, respectively)
|
|
|
14,257
|
|
|
|
15,419
|
|
|
Common stock ($0.001 par
value; 150,000,000 shares authorized; 18,270,571 and 16,402,204
shares issued and outstanding at September 30, 2010 and December
31, 2009, respectively)
|
|
|
18,270
|
|
|
|
16,402
|
|
|
Additional paid-in
capital
|
|
|
24,914,339
|
|
|
|
22,332,756
|
|
|
Retained
earnings
|
|
|
26,366,830
|
|
|
|
18,595,037
|
|
|
Statutory
reserve
|
|
|
1,424,971
|
|
|
|
1,252,980
|
|
|
Accumulated other
comprehensive gain - foreign currency translation
adjustment
|
|
|
4,246,568
|
|
|
|
3,121,682
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Stockholders'
Equity
|
|
|
56,985,235
|
|
|
|
45,334,276
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
67,078,316
|
|
|
$
|
52,522,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA WIND
SYSTEMS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the Nine
Months Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUES
|
|
$ 21,262,054
|
|
$ 16,132,270
|
|
$ 57,080,010
|
|
$ 37,577,167
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
15,840,889
|
|
12,242,778
|
|
42,264,893
|
|
28,986,366
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
5,421,165
|
|
3,889,492
|
|
14,815,117
|
|
8,590,801
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
78,478
|
|
83,053
|
|
239,493
|
|
243,976
|
|
Selling, general
and administrative
|
|
1,206,058
|
|
386,702
|
|
3,502,239
|
|
1,397,058
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses
|
|
1,284,536
|
|
469,755
|
|
3,741,732
|
|
1,641,034
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
4,136,629
|
|
3,419,737
|
|
11,073,385
|
|
6,949,767
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
490
|
|
530
|
|
3,212
|
|
858
|
|
Interest
expense
|
|
(23,923)
|
|
(54,251)
|
|
(117,336)
|
|
(253,980)
|
|
Foreign currency
loss
|
|
(6,172)
|
|
(3,395)
|
|
(13,073)
|
|
(3,406)
|
|
Grant
income
|
|
132
|
|
15
|
|
49,278
|
|
146,145
|
|
Debt issuance
costs
|
|
-
|
|
(2,000)
|
|
-
|
|
(14,000)
|
|
|
|
|
|
|
|
|
|
|
|
Total
Other Income (Expense)
|
|
(29,473)
|
|
(59,101)
|
|
(77,919)
|
|
(124,383)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
4,107,156
|
|
3,360,636
|
|
10,995,466
|
|
6,825,384
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAXES
|
|
1,133,566
|
|
862,199
|
|
3,051,682
|
|
1,900,354
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
2,973,590
|
|
2,498,437
|
|
7,943,784
|
|
4,925,030
|
|
|
|
|
|
|
|
|
|
|
|
DEEMED PREFERRED STOCK
DIVIDEND
|
|
-
|
|
(462,000)
|
|
-
|
|
(462,000)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ALLOCABLE TO COMMON
SHAREHOLDERS
|
|
$ 2,973,590
|
|
$ 2,036,437
|
|
$ 7,943,784
|
|
$ 4,463,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$ 2,973,590
|
|
$ 2,498,437
|
|
$ 7,943,784
|
|
$ 4,925,030
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME:
|
|
|
|
|
|
|
|
|
|
Unrealized foreign currency translation gain
|
|
908,803
|
|
39,536
|
|
1,124,886
|
|
84,329
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
|
|
$ 3,882,393
|
|
$ 2,537,973
|
|
$ 9,068,670
|
|
$ 5,009,359
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.16
|
|
$
0.13
|
|
$
0.45
|
|
$
0.29
|
|
Diluted
|
|
$
0.12
|
|
$
0.09
|
|
$
0.32
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
18,177,405
|
|
15,406,842
|
|
17,671,530
|
|
15,141,927
|
|
Diluted
|
|
25,312,979
|
|
23,506,936
|
|
24,904,210
|
|
21,969,692
|
|
|
|
|
|
|
|
|
|
|
|
See
notes to unaudited consolidated
financial statements
|
|
|
|
|
|
|
|
|
|
|
CHINA WIND
SYSTEMS, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
|
$ 7,943,784
|
|
$ 4,925,030
|
|
|
Adjustments to reconcile net
income from operations to net cash
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
2,145,463
|
|
1,237,922
|
|
|
|
Amortization of debt discount to
interest expense
|
|
44,993
|
|
32,495
|
|
|
|
Amortization of land use
rights
|
|
65,042
|
|
64,794
|
|
|
|
Increase in allowance for
doubtful accounts
|
|
550,006
|
|
132,073
|
|
|
|
Interest expense related to debt
conversion
|
|
-
|
|
128,489
|
|
|
|
Stock-based compensation
expense
|
|
478,390
|
|
157,778
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Notes receivable
|
|
(16,598)
|
|
182,322
|
|
|
|
Accounts receivable
|
|
(2,966,377)
|
|
(1,606,523)
|
|
|
|
Inventories
|
|
(1,918,385)
|
|
(1,114,510)
|
|
|
|
Prepaid value-added taxes on
purchases
|
|
(1,564,513)
|
|
(312,090)
|
|
|
|
Prepaid and other current
assets
|
|
174,823
|
|
(52,097)
|
|
|
|
Advances to suppliers
|
|
(1,028,678)
|
|
(152,139)
|
|
|
|
Due from related
party
|
|
-
|
|
438,436
|
|
|
|
Accounts payable
|
|
3,345,974
|
|
162,519
|
|
|
|
Accrued expenses
|
|
(212,262)
|
|
266,205
|
|
|
|
VAT and service taxes
payable
|
|
62,311
|
|
118,609
|
|
|
|
Income taxes payable
|
|
148,220
|
|
291,746
|
|
|
|
Advances from
customers
|
|
89,848
|
|
19,750
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY OPERATING
ACTIVITIES
|
|
7,342,041
|
|
4,920,809
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Purchase of property and
equipment
|
|
(9,212,125)
|
|
(6,485,956)
|
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN INVESTING
ACTIVITIES
|
|
(9,212,125)
|
|
(6,485,956)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from loans
payable
|
|
1,320,345
|
|
1,213,689
|
|
|
|
Repayment of loans
payable
|
|
(2,090,460)
|
|
-
|
|
|
|
Proceeds from sale of preferred
stock, net
|
|
-
|
|
1,098,000
|
|
|
|
Proceeds from exercise of
warrants
|
|
2,100,000
|
|
83,112
|
|
|
|
|
|
|
|
|
|
|
NET CASH PROVIDED BY FINANCING
ACTIVITIES
|
|
1,329,885
|
|
2,394,801
|
|
|
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE ON CASH
AND CASH EQUIVALENTS
|
|
35,270
|
|
720
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS
|
|
(504,929)
|
|
830,374
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUILAVENTS -
beginning of year
|
|
2,278,638
|
|
328,614
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS - end
of period
|
|
$ 1,773,709
|
|
$ 1,158,988
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
|
|
|
|
|
|
|
Cash paid for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
74,486
|
|
$
83,782
|
|
|
|
|
Income taxes
|
|
$ 2,903,462
|
|
$ 1,623,260
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Debt discount for grant of
warrants
|
|
$
-
|
|
$
92,985
|
|
|
Deemed preferred stock dividend
reflected in paid-in capital
|
|
$
-
|
|
$
462,000
|
|
|
Series A preferred converted to
common shares
|
|
$
2,911
|
|
$
669
|
|
|
Reclassification of common stock
to paid-in capital due to reverse split
|
|
$
-
|
|
$
30,926
|
|
|
Common stock issued for
debt
|
|
$
-
|
|
$
152,963
|
|
|
Common stock issued for future
service
|
|
$
3,900
|
|
$
46,667
|
|
|
|
|
|
|
|
|
|
|
See notes to
unaudited consolidated financial
statements.
|
|
|
|
|
|
|
|
|
|
China Wind
Systems, Inc. and Subsidiaries
Reconciliation of Net Income to
EBITDA
(USD)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
Sept
30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
Net income from consolidated
statement of income
|
2,973,590
|
2,498,437
|
$7,943,784
|
4,925,030
|
|
Income tax expense
|
1,133,566
|
862,199
|
3,051,682
|
1,900,354
|
|
Interest expense(net of interest
income)
|
23,433
|
53,721
|
114,124
|
253,122
|
|
Depreciation and
amortization
|
966,618
|
562,398
|
2,210,505
|
1,302,716
|
|
EBITDA
|
5,097,207
|
3,976,755
|
13,320,095
|
8,381,222
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact:
|
Investor Relations Contact:
|
|
Ms. Teresa
Zhang
|
Mr. Athan Dounis
|
|
Chief Financial
Officer
|
Account Manager
|
|
China Wind Systems,
Inc.
|
CCG Investor
Relations
|
|
Tel: +1-877-224-6696
x705
|
Tel: +1-646-213-1916 (NY
Office)
|
|
Email:
teresa.zhang@chinawindsystems.com
|
Email:
athan.dounis@ccgir.com
|
|
www.chinawindsystems.com
|
|
|
|
|
SOURCE China Wind Systems, Inc.