-- As of March 31, 2013 the Company's cash balance was approximately $5 million versus $1 million for the same date of the prior year.-- As of March 31, 2013, the Company's Net Asset Value per share for its continuing operations was $0.49 (compared to $0.47 as at March 31, 2012).-- The Company is generating positive cash flows from operating activities significantly reducing its short-term loans. The total principal amount of all bank loans was $17.2 million as at March 31, 2013 representing a 69% debt to equity ratio (total debt including amounts due to related parties, divided by total shareholders' equity) for the Company. The Company continues to effectively manage its bank loans and debt facilities. For comparison, the aggregate principal amount of bank loans as at March 31, 2012 was $20.8 million; the aggregate principal amount of bank loans as at March 31, 2010 was $50.8 million. Bank loans have successfully been repaid, renewed or extended, when they have reached maturity.-- During the year ended March 31, 2012, the Company executed a contract for sale of the majority of its wind power equipment inventory totaling RMB 93.6 million ($15.3 million). To date RMB 75.3 million ($12.3 million) of this amount has been received by the Company with the balance of approximately RMB 18.3 million ($3.0 million) expected to be received before the end of calendar 2013.-- Subsequent to the year end, the Company had reached an agreement to sell all of the equity interest in its wholly owned subsidiary Kerui Green Energy Equipment (Tianjin) Co., Ltd. ("Hanwei Green") to a private Chinese company for an amount of RMB 65 million ($10.6 million). The major asset of Hanwei Green is a manufacturing plant located in Tianjin, China which was constructed for the production of wind blades. Hanwei has received a deposit of RMB 1.0 million ($0.2 million) from the buyer in April 2013. In addition, Hanwei shall also receive: RMB 11 million ($1.8 million) when the transfer of the business license of Hanwei Green is approved by regulatory authorities to reflect the new ownership; RMB 19 million ($3.1 million) on or before December 31, 2013; and RMB 35 million ($5.7 million) within twelve months after the agreement was signed on May 27, 2013. The remaining payments are secured by certain corporate and personal guarantees.
For the three months ended March 31, 2013:
-- Revenue for the fourth quarter of the 2013 Fiscal Year was $7.9 million as compared to $6.7 million for the same period of the prior year.-- Net income improved considerably to $1.8 million for the fourth quarter of the 2013 Fiscal Year as compared to a net loss of $0.6 million for the same period of the prior year.-- Basic and diluted earnings per share was $0.03 for the fourth quarter of the 2013 Fiscal Year as compared to basic and diluted loss per share of $0.01 for the same period of the prior year.
Hanwei will host a conference call to discuss its operational and financial results for the year ended March 31, 2013. Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of Hanwei will host the call. Management invites analysts and investors to participate on the conference call:
Date: Wednesday, June 19, 2013
Time: 1:30 p.m., Eastern Time
Dial in number: 1-888-430-8709 or 1-719-325-2362
A replay of the conference call will be available on the Company's website www.hanweienergy.com.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. is a leading manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies and services for the international oil and gas infrastructure industries. Hanwei serves major energy customers in the Chinese and global energy markets.
FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES
Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company's Annual Information Form dated June 18, 2013 and Management Discussion and Analysis for the year ended March 31, 2013 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company's expectations as of the date of this press release.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Hanwei Energy Services Corp.
Executive VP, Strategic Development and Corporate Affairs
Hanwei Energy Services Corp.
Yucai (Rick) Huang
Chief Financial Officer