SHENYANG, China, Oct. 21 /Xinhua-PRNewswire/ -- A-Power Energy Generation Systems, Ltd. (Nasdaq: APWR) ("A-Power"), would like to provide, as a follow up to the management conference call on Wednesday, October 15, a summary of the most common questions received from investors since that call and management's responses to those questions.
Question: Will A-Power buy back stock?
Management's Response: We believe the stock is currently undervalued and are discussing the opportunity to repurchase stock with our lawyers. We will make an announcement if and when a stock repurchase program is implemented.
Question: How soon do you expect to hire a new CFO?
Management's Response: We are in the process of interviewing several CFO candidates and are being highly selective on who we hire. Based on our aggressive search campaign, hope to bring on a new full time CFO in the next 30 to 60 days.
Question: Does the company have any current plans to raise additional capital in the equity markets?
Management's Response: No. A-Power has sufficient cash on its balance sheet, a cash flow positive business and no debt. We are continuously evaluating new opportunities that will be accretive to earnings, although as of today, we have no plans to raise additional capital in the equity markets.
Question: How many distributed generation projects have you completed and how many contracts currently make up the backlog of over $800 million?
Management's Response: A-Power has completed 13 distributed generation projects to-date and has 10 additional contracts in process which provide for a backlog of over $800 million. This does not include a recently signed MOU in Thailand for a potential $300 million distributed generation project. The Thai project will be added to our backlog once it is turned into a contract. As mentioned in Mr. Lu's prepared statement in the call last Wednesday, the Thai MOU is expected to be turned into a contract within the next 30 days.
Question: Is A-Power lacking management?
Management's Response: No. We have a solid management team with great expertise, experience and relationships in the energy and renewable energy markets in China and Southeast Asia. Mr. Jinxiang Lu, our Chairman and CEO, has over 30 years of experience in management at major power companies in China and is a pioneer in China's distributed power generation market. Mr. John Lin, Chief Strategy Officer and Acting CFO, has over 20 years of experience facilitating investments in China and has been responsible for numerous PRC joint ventures, strategic alliances, and business restructurings. Mr. Yunbo Wang, VP of Wind Energy, has over 25 years of experience in the power industry and prior to his employment at A-Power, served as the President of Zhejiang Sumsung Power Co., Ltd., an operator of power plants in China's Zhejiang province. Mr. Engang Wang, VP of Distributed Generation, received his engineering degree from Fuxin Coal University and has over 10 years of successful experience leading large teams of engineers in designing and constructing power plants in China.
Question: Is it difficult for A-Power to retain qualified employees and could this be a constraint to future growth?
Management's Response: No. This has not been and is not expected to be a constraint on our business going forward. There are currently nearly 300 full-time employees at A-Power, of which, 60 are associated with our wind business. We continue to work closely with Tsinghua University to hire new engineering recruits for both our distributed generation and wind businesses. In addition, we have been able to successfully recruit approximately 30 employees from the Chinese operations of some of the largest wind turbine producers in the world.
Question: You plan to begin producing wind turbines at your Shenyang facility this quarter and I understand the components for the first 10 2.7 MW units are being shipped from Europe. Is there any risk that there will be any technical issues in assembling the initial turbines that may create delays in shipping these to customers?
Management's Response: We are confident there will not be any technical issues in producing the 2.7MW wind turbines because of the fact that we are working hand-in-hand with Fuhrlander AG, the developer of the 2.7MW turbine, on the production. Fuhrlander has already produced these units in Germany and our production line in Shenyang has been modeled after Fuhrlander's production line in Europe. In addition, we have sent our staff to Germany for training, and Fuhrlander will have 10 technicians on-site in Shenyang to closely monitor the production of the first 100 units.
Question: How many common shares are outstanding and how many shares are in the float?
Management's Response: There are currently approximately 34 million shares outstanding and the float is approximately 22 million shares.
If you have any further questions, please contact Ian Shanno at (310) 928-3780 or John Lin at +86 139 111 32618. Management plans to have an extended question and answer session during its upcoming conference call to discuss its 3rd quarter results.
About A-Power
A-Power Energy Generation Systems, Ltd., formerly Chardan South China Acquisition Corp., through its PRC operating subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of distributed power generation systems in China and entered into China's wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University and the China Sciences Academy in Guangzhou.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about A-Power and GaoKe. Forward-looking statements are statements that are not historical facts. Including statements relating to future plans, contracts, employee staffing and retention matters and wind turbine production. Such forward-looking statements, based upon the current beliefs and expectations of A-Power's and GaoKe's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which GaoKe is engaged; cessation or changes in government incentive programs; fluctuations in customer demand; management of rapid growth and transitions to new markets; intensity of competition from or introduction of new and superior products by other providers of distributed power generation and other energy generation technology; timing, approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in A-Power's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Neither A-Power nor GaoKe assumes any obligation to update the information contained in this press release.
