China Wind Systems Inc (CWSI.OB) manufactures and sells industrial equipment for use in the textile and energy industries in China. Since August 2007, the company has shifted its strategy to focus on the growing wind industry in China. It has begun to supply high-precision rolled rings to companies in the wind power industry through its subsidiary, Huayang Electrical Power Equipment.
China Wind Systems has begun to make progress in this transformation to a wind energy company. In the 1st quarter 2008, the revenues generated from the sale of high precision rolled rings for the wind and electrical power industries climbed from zero to over $3.2 million. This amounted to nearly 38% of the company’s total revenues. The company estimated that 30% of these revenues came directly from China’s wind industry companies.
The company also gave a positive outlook for 2008. The company said that it expects “to significantly increase our revenues generated from our electrical power equipment business and our wind power business.” In 2008, the company expects to generate $40 million in revenues million in net income as compared to the 2007 figure of $24.4 million. These figures have sent the stock sharply higher in Friday morning trading.
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