China Wind Systems, Inc. has received a great deal of attention of late, following the release of favorable first quarter financial results. The company, through its wholly-owned subsidiaries, manufactures and sells equipment for use in the textile and energy industries. Having recently shifted focus to supplying products to the rapidly expanding Chinese wind-energy sector, China Wind Systems is cashing in on the production of rolled rings and shafts used in wind turbine generators.
For the quarter ended March 31st, 2008, the company reported increased total revenues of $8.4 million dollars; 104.6 percent higher than the $4.1 million posted in the first quarter of 2007. Approximately $3.2 million, or 37.9 percent of this revenue, was generated by the forging of rolled rings. Gross profit for the quarter exceeded last year’s earnings by 103.8 percent, rising from $1.1 million to $2.2 million in just 12 months. At the culmination of the first quarter, cash and cash equivalents equaled $2.6 million.
“In 2008, we expect to significantly increase our revenues generated from our electric power equipment business and our wind power business. We have been evaluating working relationships with leading wind energy companies in China to supply wind components. We are on track to complete the first phase of our expansion plan and expect to manufacture larger forged rolled rings and shafts at our facilities by October 2008,” postulated Jianhua Wu, CEO of China Wind Systems.
The company has high hopes for the remainder of 2008; projections indicate $40 million in revenues, and $7 million in net income. Changing focus from textiles to wind-energy is a decision that seems to be paying off well for China Wind Systems, Inc.
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