WUXI, China, Oct. 19 /PRNewswire-Asia-FirstCall/ -- China Wind Systems, Inc. (Nasdaq: CWS), ("China Wind Systems" or the "Company"), a leading supplier of forged products and industrial equipment to the wind power and other industries in China, today announced that the Company was awarded a new contract to supply high-speed shafts to Nanjing Chang Feng New Energy Holdings ("Nanjing Chang Feng"), an electric generator manufacturer.
As per the sales contract, China Wind Systems will deliver a total of 1,500 units of high-speed shafts at a pre-determined price of RMB 13,100 ($1,973) per unit, amounting to total revenue of approximately $3.0 million. The Company will deliver the first 500 units by the end of fiscal year 2010 and the remaining 1,000 units in the first half of fiscal year 2011. The high-speed shaft is used to transmit energy from the gearbox to the generator to produce electricity from wind turbines.
"Our cooperation with Nanjing Chang Feng further demonstrates our growing reputation as a high-quality product manufacturer and preferred wind component supplier in China," said Mr. Jianhua Wu, Chairman and CEO of China Wind Systems. "We have increasingly observed downstream wind power players expand their production capacity to meet the growing market demand for wind power fuelled by China's aggressive renewable energy policy. In light of our recent sales contract wins and our attractive market position as a leading wind component supplier, we reaffirm our 2010 financial guidance of revenue to be in the range of $76.5 million to $85.0 million and net income to be between $15.5 million and $16.3 million. We are also confident that our wind industry segment will exhibit a 75% year-over-year growth to reach $35 million in fiscal year 2010."
About Nanjing Chang Feng New Energy Holdings
Nanjing Chang Feng New Energy Holdings is a subsidiary of Nanjing Turbine & Electric Machinery Group which was founded in 1956 and is engaged in manufacturing electric generators for various industries. Nanjing Chang Feng was formed as a subsidiary to focus on production of electric generators for the wind power industry.
About China Wind Systems, Inc.
China Wind Systems supplies forged rolled rings to the wind power and other industries and industrial equipment to the textile industry in China. With its new 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.
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 (www.sec.gov). 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.
For more information, please contact:
Ms. Teresa Zhang
Chief Financial Officer
China Wind Systems, Inc.
Tel: +1-877-224-6696 x705
Investor Relations Contact:
Mr. Athan Dounis
CCG Investor Relations
SOURCE China Wind Systems, Inc.