GC China Turbine Corp. (OTCBB: GCHT) (the "Company" or "GC China"),
a leading Chinese manufacturer of twin blade wind turbines, today
announced financial results for the three and nine-month period
ended September 30, 2010.
Key Highlights
- On year-over-year basis, for Q310, revenues of $4 million
compared to approximately $2.4 million for the same period last
year, gross profit of $994 thousand compared to $177 thousand for
the same period last year and Q3 net loss of $64 thousand compared
to $1.3 million;
- Nine month revenues of $27.1 million, compared to $2.3 million
for the same nine month period last year, with gross profit of $6.7
million compared to $177 thousand and net income of $3.4 million
compared to a net loss of $1.7 million;
- Sold 7 turbines in Q310 and 47 turbines through the nine months
ended September 30, 2010.
Mr. Hou Tie Xin, Chairman of the Board of GC China, said that,
"While we were not able to record and book revenues on 23 turbines
in the Q3 that we had anticipated, due to lack of a full
preparation for taking delivery by a customer during the period,
those revenues will be recognized in the Q4 of this year. We remain
on track to ship 100 turbines in fiscal year 2010, and continue to
see strong demand for our turbines in the market and expect to
announce expansion of our footprint from China into the European
wind energy markets in fiscal year 2010."
Financial Results for the Third Quarter ended
September 30, 2010
Revenues for the three months ended September 30, 2010 were
$4,085,675 compared to $2,390,775 for the same period last year,
with sales of 7 turbines and 3 turbines, respectively. The company
was informed by its independent auditor, Deloitte Touche Tohmatsu,
that it was unable to record sales of 23 additional turbines that
have been produced and ready for shipment in the quarter due to
lack of a full preparation for taking delivery by a customer in the
period. Management confirms that these 23 turbines will be shipped
in the fourth quarter.
Gross profit was $993,656, or 24.3% of sales, compared to gross
profit of $176,884, or 7.4% of sales for the same period last year.
By achieving lower raw materials costs, as well as lower costs
associated with production and higher allocation of overhead into
each unit of wind turbine for the same period last year, the
Company was able to lower its cost of sales as a percentage of
total revenues in the most recent quarter to approximately 75.6%
from 92.6% in the same period last year.
Net loss for the third quarter was $63,868, compared to a net
loss of $1,320,085 for the three months ended September 30, 2009,
or $0.00 per diluted share and $0.04 per diluted share,
respectively.
Financial Results for the Nine Month Period
Ended September 30, 2010
Revenues for the nine months ended September 30, 2010 were
$27,144,543 compared to $2,390,775 for the same nine month period
last year, with sales of 47 turbines and 3 turbines, respectively.
Gross profit was $6,703,493, or 24.7% of sales, compared to
$176,884 for the same period last year.
Net income for the nine months ended September 30, 2010 was
$3,461,414, or $0.04 per diluted share, compared to a net loss of
$1,670,678, or $0.05 per diluted share for the same nine month
period last year.
At September 30, 2010, GC China had $1,162,855 in cash and cash
equivalents, and accounts receivable of $27,953,726. This compares
to $12,430,674 in cash and cash equivalents and accounts receivable
of $29,236,353 at June 30, 2010.
Business Outlook
The Company currently has a loan facility in the amount of
$17,910,447 (RMB 120,000,000) composed by $4,477,611(RMB
30,000,000) performance security and $13,432,835 (RMB 90,000,000)
working capital loan, and interest rate of 6.37% from a PRC bank.
As of today, the company has used $8,955,223(RMB 60,000,000)
working capital loan. As of September 30, 2010, there are
$4,476,891 (RMB 30,000,000) working capital loan and $4,477,611(RMB
30,000,000) performance security available for future borrowing. In
addition, the Company is currently negotiating additional lines of
credit with other PRC banks which it expects to be approved by
December, 2010.
Based on anticipation of receipt of at least $4.10 million in
accounts receivable this quarter, and the Company's current and
expected 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.
GC China states that it will keep the anticipated objective of
the year for revenues of $58 million and net income of $8.2 million
unchanged.
As stated above, management expects to ship the 23 turbines in
the fourth quarter which were targeted to have shipped in the third
quarter. The Company also anticipates shipments of an additional 30
turbines in the fourth quarter, bringing its total shipments in
2010 to 100 units.
Mr. Hou Tie Xin added that, "We recognize that certain
unexpected challenges beyond the Company's control have caused
delays in the growth of our business in the current year, but we
taking the appropriate actions to mitigate operational and
financial risk to the business as we react to these conditions. Our
customers and demand for our turbines, are both strong, and
growing. We are very upbeat about our outlook for 2011, and, based
on our current pipeline of business, we expect to ship a range of
150 to 200 turbines next year.
We are pleased to have recently announced the addition of Ping
Ye to our management team, and believe her presence and
contribution to GC China's management team will greatly enhance our
controls, financial reporting and overall financial execution of
the business. In addition, Ms. Ye will be instrumental in leading
efforts to create greater transparency and interaction with the
U.S. investment community."
At its GC Windpower AB research and development center in
Stockholm, GC China remains committed to developing and promoting
mode advanced wind turbines. Management reiterated that the Company
remains on track to commence commercial sales of 1.1MW, 2.5MW and
3MW turbines in 2011.
About GC China Turbine Corp.
GC China is a leading manufacturer of state-of-the-art 2-bladed
wind turbines based in Wuhan City of Hubei Province, China. The
Company identified a 2-bladed wind turbine technology in the wind
energy space that would be reliable and cost-effective to
manufacture. The development project that created the 2-bladed wind
turbine was developed through a 10 year research project costing
over US$ 75 million. GC China's launch product is a 1.0 megawatt
("MW") utility scale turbine with designs for a 2.5MW and 3.0MW
utility scale turbine in development. For more information visit:
www.gcchinaturbine.com
Notice Regarding Forward-Looking
Statements
This news release contains "forward-looking statements" as that
term is defined in Section 27A of the United States Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act
of 1934, as amended. Statements in this press release which are not
purely historical are forward-looking statements and include any
statements regarding beliefs, plans, expectations or intentions
regarding the future. Such forward-looking statements include,
among other things, completion of definitive agreements with local
and provincial governments, wind farms and utility companies,
number of wind turbine systems ordered, manufactured, delivered and
installed, the Company's future strategic plans, the outlook for
the Company's markets and the demand for its products, estimated
sales, the development, costs and results of new business
opportunities. Actual results could differ from those projected in
any forward-looking statements due to numerous factors. Such
factors include, among others, the inherent uncertainties
associated with new projects and development stage companies. These
forward-looking statements are made as of the date of this news
release, and we assume no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although we believe that any beliefs, plans, expectations and
intentions contained in this press release are reasonable, there
can be no assurance that any such beliefs, plans, expectations or
intentions will prove to be accurate. Investors should consult all
of the information set forth herein and should also refer to the
risk factors disclosure outlined in our annual report on Form 10-K
for the most recent fiscal year, our quarterly reports on Form 10-Q
and other periodic reports filed from time-to-time with the
Securities and Exchange Commission.
Add to Digg Bookmark with del.icio.us Add to Newsvine
Investor Relations Todd M. Pitcher Aspire Clean Tech
Communications Hayden Communications, International Phone:
760-798-4938 Email Contact
GC China Turbine (CE) (USOTC:GCHT)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
GC China Turbine (CE) (USOTC:GCHT)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024