Hanwei Energy Services Corp.

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Recent Press Releases

November 17, 2008
Hanwei Announces Financial Results for the Third Quarter of 2008

November 10, 2008
Hanwei to Host Conference Call to Discuss the Financial Results for the Third Quarter of 2008

exchange	TSX: HE
last price	0.96
last trade	11/20/2008 3:56pm EST
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open / high / low	1.00 / 1.00 / 0.96
volume	167975
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Shares Outstanding:	60,761,877
Stock Options:	2,307,000
Fully Diluted:	63,068,877
As of:	Sept 10, 2008

Hanwei Announces Fiscal 2007 Financial Results

Vancouver, BC, April 4, 2008. Hanwei Energy Services Corp. ("Hanwei" or the "Company") today reported its financial results for the year ended December 31, 2007. All currency amounts referred to in this news release are in Canadian dollars unless stated otherwise.

Sales revenues for the year ended December 31, 2007 increased by approximately 72% to $40.8 million, compared with the same period in 2006. In 2006, all of Hanwei's revenues were from the high-pressure fibreglass reinforced plastic ("FRP") oil pipe business, whereas in 2007, Hanwei generated approximately 76% of its revenues from oil pipes, 21% of its revenues from wind power equipment and 3% of its revenues from FRP flu-gas desulphurization ("FGD") pollution control products for coal fired power plants. Revenues for the fourth quarter ended December 31, 2007 grew by 146% to $24 million, compared to the same period in 2006.

Net income for the year ended December 31, 2007 was $6.3 million, an increase of $1.7 million or 36% compared to the year ended December 31, 2006. This was driven by the growth in the oil pipe business and the addition of the wind power and FGD businesses in 2007. The Company had basic and diluted earnings per share ("EPS") of $0.13 for the year ended December 31, 2007 compared with basic EPS of $0.22 and diluted EPS of $0.14 for the year ended December 31, 2006. EPS was impacted by the strong growth in earnings, offset by a large increase in the number of issued shares as a result of approximately $77 million in new equity raised in 2007 to fund the Company's growth strategy.

"In 2007, we achieved strong revenue and earnings growth while diversifying our revenue sources in the oil pipe sector and leveraging our FRP expertise to add products for the coal and wind power industries. We increased the production capacity for FRP pipes by 60% for the oil sector in China and formed an international marketing agreement with CNPC that generated sales in Kazakhstan and introduced our products to markets in Russia, Indonesia and the Middle East," stated Fulai Lang, President and CEO of Hanwei. "In 2007, we established a platform for growth by enhancing our relationships within the industry, by recruiting knowledgeable and experienced new employees and by securing competitive advantages in technology, know-how and international infrastructure. After going public in December 2006 on the TSX Venture Exchange, we raised new equity of approximately $77 million to fund our growth plans and successfully graduated to the TSX in September 2007."

Sales revenues from the oil pipe business for the year ended December 31, 2007 grew by $7.1 million, or 30%, compared to the same period in 2006. During 2007, management provided estimates of up to 60% growth in revenues from the oil pipe business in 2007 based on sales orders and expressions of interest. Due to severe weather conditions in Daqing and project delays in Kazakhstan in the fourth quarter of 2007, some deliveries for pipe products scheduled for the fourth quarter of 2007 were delayed into the first or the second quarter of 2008. As of the end of February 2008, the Company had sales orders for FRP high-pressure oil pipes of approximately RMB 117 ($17 million), including over RMB 50 million ($7.25 million) from 2007.

Sales revenues and net income in the fourth quarter were also impacted by delays in completing the first half of the initial $29 million wind power equipment order with Deta due to industry-wide supply chain constraints and the longer than expected ramp-up of Hanwei's wind blade manufacturing. Please see press release dated March 31, 2008 for an update on wind power equipment deliveries.

Business Highlights for 2007

Graduated to the TSX. In September 2007, Hanwei graduated from the TSX Venture Exchange to the Toronto Stock Exchange.
Raised approximately $77 million to fund growth. Hanwei successfully closed three equity financings in January, April and June, 2007 for combined gross proceeds of approximately $77 million to fund Hanwei's growth plans.
Increased FRP pipe production capacity by 60% to 3,200 km. To increase capacity at its Daqing FRP pipes facility, the Company built and installed six new FRP pipe production lines in 2007 at a gross capital cost of RMB 20 million ($2.8 million), which was funded by cash on hand. The new lines are operating at 100% capacity. With the additional production lines, the Company now has 16 production lines and total pipe production capacity of approximately 3,200 km per annum, an increase of 60% compared to the capacity at the end of 2006. The new production lines were built using the Company's proprietary technology and have reduced production costs due to reduced usage of raw materials and improved energy efficiency.
Agreement with CPTDC to develop markets for FRP products. The Company entered into an exclusive Cooperation Agreement dated January 24, 2007 with China Petroleum Technology and Development Corporation, ("CPTDC"), a wholly owned subsidiary of China National Petroleum Corporation (a PRC state-owned entity and the parent company of PetroChina Co., Ltd.) ("CNPC"). Under the Cooperation Agreement, the Company and CPTDC are cooperating to develop markets for Hanwei's FRP products in Kazakhstan and other Commonwealth of Independent States (including Azerbaijan, Armenia, Belarus, Georgia, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine), and Indonesia, India, Saudi Arabia, Oman, and Peru for an initial period of two years. CPTDC is a large supplier of Chinese petrochemical materials and equipment with 35 overseas offices in 24 countries. In 2007, the Company worked with CNPC to expand internationally and to support and train personnel in the CPTDC distribution system to develop a presence in Kazakhstan, Indonesia, Russia and the Middle East.
Entered the Kazakhstan market for high-pressure FRP oil pipe. In the fourth quarter of 2007, the Company generated $1.9 million (RMB 13.3 million) in revenues from the Kazakhstan market. To support its growth in the Kazakhstan market and surrounding areas, the Company established Hanwei Kazakhstan. A site of approximately 70,000 square metres was identified and leased on an eight-year term. Hanwei is planning to construct a FRP pipe manufacturing facility on this site with an annual production capacity of 1,600 km with total investment of $26 million (RMB 194 million). Hanwei expects this manufacturing facility to be completed in late 2008. Before its completion, Hanwei will supply its customers in the Kazakhstan market with its existing manufacturing facility in Daqing.
Signed technology and equipment supply agreements for India. On June 30, 2007, the Company entered into an equipment supply contract with PC International, Inc. ("PC International"), based in the United States, to provide 50 mm to 200 mm high pressure FRP pipe production equipment to PC International for a purchase price of €1.95 million ($2.8 million). The equipment to be supplied by Hanwei has an annual FRP pipe production capacity of 400 km. As part of the transaction, PC International is to re-sell the production equipment to Concept in India. Delivery of the equipment is scheduled for the second quarter of 2008. On September 10, 2007, the Company entered into a related licensing agreement with Concept (the "Concept Agreement") to provide high-pressure FRP pipe production technology to Concept for the Indian market. Under the terms of the Concept Agreement, Hanwei has granted a 10-year exclusive right to Concept to produce and sell FRP products in India and Concept has the right to extend the license period for an additional 5 years thereafter.
Signed first contract for wind power equipment business and established manufacturing facility. On June 1, 2007, Hanwei signed cooperation and manufacturing agreements with Daqing Deta Electric Co. Ltd., ("Deta", a private PRC company), that includes an initial order to supply RMB 200 million ($29 million) worth of wind power equipment, including turbines, blades and towers. The agreement also contains an expression of intent to place additional orders with Hanwei for wind power products in the amount of RMB 600 million ($87.1 million) in 2008 and RMB 900 million ($131 million) in 2009. In 2007, the Company established a 100% owned subsidiary, Hanwei Wind Power Equipment (Daqing) Co., to carry out its wind power business. In addition the Company spent approximately $3 million for capital expenditures for wind power manufacturing moulds and equipment and established production in a leased facility near its FRP pipe manufacturing facility in Daqing. In the fourth quarter of 2007, the Company delivered its three sets of wind power blades and 30 wind towers, generating $8.6 million in revenues.
Commenced commercial production of FRP spray headers for FGD pollution control systems for the coal power industry. In the first quarter of 2007, the Company established two spray header production lines at a temporary production facility in Beijing. The Company plans to move its FRP spray header production lines to a Tianjin plant currently under construction and intends to close its temporary Beijing production facility once such move is complete in the third quarter of 2008. In 2007, the Company successfully bid on eight contracts for total value of approximately $2 million of FRP spray headers and accessories and generated $1.4 million in sales revenues.
Entered a memorandum of understanding with Ershigs to establish a Chinese joint venture to expand the pollution control business. On November 27, 2007, the Company entered into a Memorandum of Understanding with Ershigs Inc. ("Ershigs"), a leading U.S. based manufacturer and installer of FRP products, to establish a 50:50 joint venture (the "China JV") that is expected to expand the Company's product offering for the FRP FGD pollution control business. New products that the China JV is planning to offer include, but are not limited to, FRP duct and FRP chimney liners. The addition of new products will position the Company as one of the few companies that can supply FRP ducts and FRP chimney liners in the Chinese market and is expected to significantly increase average sales per customer.
Commenced construction of a new facility in Tianjin. The Company has commenced preparations for the construction of a new facility in Tianjin, China to consolidate its temporary Beijing production operations and to accommodate the operations of the proposed joint venture with Ershigs. The construction of this facility is scheduled to be completed in the second quarter of 2008. The Company established a wholly owned subsidiary, Hanwei Green Energy Equipment (Tian Jin) Co., Ltd. ("Hanwei Green"), to operate this facility. The requisite government approvals for the construction of the Tianjin facility have been obtained. The total investment in 2008 for this facility will be approximately $12 million (RMB 88 million). As of December 31, 2007, the Company has spent an insignificant amount of capital on this facility.
Established a Russian marketing subsidiary. On December 25, 2007, Hanwei established a 100% owned Russian subsidiary, Hanwei Tyumen, with registered capital of 1,080,000 rubles ($42,000). As Russia is rich in oil reserves, the Company believes Russia represents a significant potential market for its oil pipe business. Hanwei intends to use Hanwei Tyumen as a sales and marketing office to explore the market opportunities. As at April 3, 2008, Hanwei had not made any investment commitments in this market.

Highlights Subsequent to the Year End

Entered MOU to acquire Deta. In a press release dated January 24, 2008, Hanwei announced that it had entered into a Memorandum of Understanding ("MOU") to acquire 100 percent of Deta for RMB 600 million ($85.3 million). Under the MOU, signed by Hanwei, Deta and Heilongjiang Ruihao Energy Technology Co., Ltd. ("Ruihao"), Deta will enter into a contract with Ruihao to provide 1,200 MW of wind power turbines, blades, towers and control systems valued at approximately RMB 8.4 billion ($1.2 billion), and a right of first refusal to provide all future wind power equipment for wind farms that Ruihao owns or controls. Under the contract, Deta is to be guaranteed a 15% net after tax profit. In return, Hanwei will grant Ruihao the right to purchase, at market prices, all additional wind power equipment manufactured by Hanwei. Ruihao has also agreed to transfer to Deta all of its current wind power equipment technology and its rights to the land and building now being used by Hanwei to house its wind power equipment manufacturing plant. Hanwei is working with Deta and Ruihao to revise the MOU to satisfy Chinese and Canadian corporate, securities and tax issues, but expects the acquisition to close, subject to completion of due diligence and board approval, on terms comparable to those set out above.
Licensed blade manufacturing technology. In January 2008, Hanwei entered into a licensing agreement with Aerodyn Energiesysteme GmbH ("Aerodyn") granting Hanwei the non-exclusive right to produce two versions of Aerodyn's aeroBlade 1.5 in China. The Agreement provides Hanwei with the moulds, technical know-how, specifications, and support to produce the 37.5 metre and 40.3 metre versions of the 1.5 megawatt blades and market them in China under the Hanwei brand.
Delivered first wind power turbines. In January 2008, Hanwei delivered four 1.5 MW turbines to Deta under its wind power contract with Deta and Ruihao. These turbines are to be installed in Ruihao's wind farm in April 2008.
Secured sales orders for oil pipe of more than 50% of 2007 oil pipe sales. As of the end of February 2008 the Company had sales orders for high-pressure FRP pipe for delivery in 2008 of approximately RMB 117 million ($17 million), including approximately RMB 89 million ($12.9 million) from Kazakhstan.

Summary 2007 Full Year Financial Results

In thousands of Canadian dollars except per share data

	2007	2006	Change
Sales	$40,810	$23,754	72%
Operating Income	7,132	5,342	34%
Net Income	6,260	4,609	36%
Total Assets	110,251	39,830	177%
Long Term Liabilities	-	-	-
Dividend Declared	-	1,131	-100%
Earnings per share (basic)	$0.13	$0.22	-41%
Earnings per share (fully diluted)	$0.13	$0.14	-7%

Result of Operations

Revenues

Sales revenue for the year ended December 31, 2007 was $40.8 million, an increase of $17.1 million, or approximately 72% compared to the year ended December 31, 2006. This increase was driven by a growth in the oil pipe business of $7.1 million, in the wind power equipment business of $8.6 million and in the FGD business of $1.4 million.

For the twelve months ended December 31, 2007, sales of high pressure FRP pipe accounted for 76% of total sales, sales of wind power equipment business accounted for 21% of total sales, and sales of FGD pollution control systems accounted for 3% of total sales. In 2006, all of the Company's sales were from high pressure FRP pipes sold to oil industry customers.

Gross Profit

Gross profit for year ended December 31, 2007 was $17.3 million, an increase of $6.2 million or 56%, compared with the year ended December 31, 2006. This increase was primarily driven by the growth of sales.

Gross profit as a percentage of revenues for the year ended December 31, 2007 was 43% compared to 47% for the year ended December 31, 2006. This decrease was mainly caused by changes in the product mix. In 2006, all of the Company's revenues were from its pipe business. In 2007, 76% of revenues were from its pipe business, 21% from its wind power business and 3% from its FGD business.

For its pipe business, gross profit as a percentage of revenues increased to 49% in 2007 from 47% in 2006. This increase was driven by an improvement in pipe product pricing. Management expects this percentage to continue to increase in 2008. For its wind power business, gross profit as a percentage of sales was 21% in 2007, which was due to a fixed after-tax net profit margin of 15% as defined in the sales contract. Management expects to maintain this percentage in 2008. For the FGD business, gross profit as a percentage of revenues was 31% in 2007 due to low production volume. As the Company expects to grow this business in 2008, this percentage is expected to increase.

Expenses

Sales and marketing expenses for year ended December 31, 2007 were $4.7 million, or 12% of revenue, compared to $2.2 million or 9% of revenue for the year ended December 31, 2006. Selling expenses consisted mainly of salespersons' salaries and bonuses and marketing and promotion expenses. Selling expenses also included commissions to distributors and transportation and related costs incurred for delivery of goods and providing services to oil pipe customers. The increase of selling expenses as a percentage of sales revenue in 2007 compared to 2006 was driven by new commission fees paid to certain distributors of oil pipes. In 2007, the Company hired distributors who assisted the Company to promote its new products and to improve sales pricing. This enabled the Company to shift a part of its sales force to the opening of new accounts. This also helped expand the Company's gross profit margin for oil pipes by improving pricing.

General and administrative ("G&A") expenses for the year ended December 31, 2007 were $5.4 million, or 13% of sales compared to $3.2 million or 13% of sales for the year ended December 31, 2006. The increase of G&A expenses compared to 2006 was mainly due to public company expenses including those related to the graduation of the listing of the Company's common shares from the TSX Venture Exchange to the Toronto Stock Exchange in September 2007. The Company became public in December 2006, and 2007 was the first fiscal year when the Company incurred a full year of expenses related to being a public company. Management expects G&A expenses as a percentage of revenues to decrease in 2008 as the Company grows its business.

Research and development ("R&D") expenses for the year ended December 31, 2007 were $0.1 million, or less than 1% of sales compared with $0.4 million or 2% of sales for the year ended December 31, 2006. This decrease was due to the maturity of the Company's products and technology for the oil market. In December 2007, a R&D team of 20 scientists and technicians was set up for the new wind power equipment business. In 2008, the Company plans to increase its R&D investment and expenditure for the wind power business and FGD business.

Interest expenses were $0.7 million for the year ended December 31, 2007, or 1% of sales revenue, compared to $0.7 or 3% of sales revenue for the year ended December 31, 2006. The decrease of interest expenses as a percentage of revenue was due to repayment of short term loans from related parties in 2007.

Operating Income

The Company had operating income of $7.1 million for the year ended December 31, 2007 compared with the operating income of $5.3 million for the year ended December 31, 2006, an increase of $1.8 million or 34%. This increase was mostly due to the growth in sales. Operating income as a percentage of sales revenue decreased to 17% in 2007 compared with 22% for 2006. The decline in operating margins was due to a change in business mix since wind power equipment generates lower margins.

Earnings and Earnings per Share

Net income for the year ended December 31, 2007 was $6.3 million, an increase of $1.7 million or 36% compare to the year ended December 31, 2006. This was driven by the growth in oil pipe business and the addition of the wind power business in 2007.

Net income as a percentage of revenues was 15% for 2007 compared to 19% for 2006. This decline in net income as a percentage of revenues was driven by a change in the mix of businesses and products, an increase in effective tax rate and an increased allocation to non-controlling interest. In 2006, all of the Company's net income was earned through its pipe business and had an after-tax net profit margin of 19%. In 2007, the Company launched new businesses relating to wind power equipment and FGD pollution control devices. The wind power equipment business has a fixed after-tax net profit margin of 15% as defined by the sales contract. The FGD business was in a net loss position in 2007 due to low sales volumes. Starting from 2007, certain investment tax credits that Harvest (the Company's 91.075% owned subsidiary for FRP oil pipe, Daqing Harvest Longwall High Pressure FRP Pipe Co., Ltd.) obtained from the purchase of production equipment were applied against property, plant and equipment instead of income tax expenses. Non-controlling interest for Harvest was allocated on the full year basis from the net income for 2007. In 2006, net income was allocated to non-controlling interest only for the period after the qualifying transaction, pursuant to which Hanwei acquired Harvest, on December 10, 2007. The increased allocation to non-controlling interest negatively impacted net income by $0.7 million.

The Company had basic and diluted earnings per share ("EPS") of $0.13 for the year ended December 31, 2007 compared with basic EPS of $0.22 and diluted EPS of $0.14 for the year ended December 31, 2006. EPS decreased due to the approximately $77 million in new equity raised in 2007 to fund the Company's growth strategy. On an annualized basis, the basic number of shares outstanding as of December 31, 2007 was 59.9 million compared to 21.1 million as of December 31, 2006, an increase of 184%. The fully diluted number of shares outstanding was 63.4 million as of December 31, 2007 compared to 35.6 million as of December 31, 2006, an increase of 56%.

Cash Position

Cash and cash equivalents totalled $13.6 million as at December 31, 2007, representing an increase of $11.2 million from December 31, 2006. This increase was due to three private placements, completed on January 5, 2007, April 2, 2007 and June 21, 2007 with combined gross proceeds of approximately $77 million, offset by investments in expanding FRP pipe production capacity and the wind power business.

Cash flow from operating activities decreased by $20.1 million due to an increase in working capital to support the new wind power business and the growth in the oil pipe business. Cash flow from investing activities decreased by $27.5 million due to the purchase of short-term investments, Guaranteed Investment Certificates, and the addition of manufacturing equipment for the wind power business and production capacity increased for the oil pipe business. Cash flow from financing activities increased by $61.4 million from new financings offset by repayment of certain loans to related parties.

Working Capital

Working capital was $82.5 million as at December 31, 2007, an increase of $71.2 million from $11.3 million as of December 31, 2006. This increase was largely due to a net cash balance of $13.6 million from new financings in 2007 and short term investments in GICs. Current assets excluding cash and cash equivalents increased by $56.4 million. Accounts receivable increased by $14.0 million due to sales growth. Prepayments increased by $10.1 million and inventory increased by $9.0 million due to the establishment of the wind power business and delays in shipments of pipes caused by severe winter weather conditions. Current liabilities decreased by $3.7 million due to repayment of loans and payment of dividends.

For the year ended December 31, 2007, the Company's average age of account receivables was 307 days compared to 311 days for the year ended December 31, 2006. The oil equipment industry in China typically has long collection cycles. The Company will continue to diversify its customer base. With lessened reliance on its biggest customers, the Company is aiming to reduce the age of its accounts receivables.

Plant, Equipment and Construction in Progress

Plant and equipment, net of accumulated depreciation and amortization, was $13.5 million as at December 31, 2007, an increase of $2.5 million compared with $11.0 million as at December 31, 2006. The increase was mostly due to the expansion of production capacity at the Daqing facility from 1,600 km per year as of December 31, 2006 to 3,200 km per year and investment in manufacturing equipment for the wind power equipment business, offset by a reduction in property, plant and equipment of $597,000 arising from Hanwei's equity increase in Harvest in May 2007 and investment tax credits of $1.4 million obtained from equipment purchases.

As at March 31, 2008, two new manufacturing facilities are under construction in Tianjin, China and Kazakhstan.

Outlook

Management expects continued strong growth of more than 70% in its high pressure FRP pipe business for the oil industry for the year of 2008. This includes its continued expansion in the Chinese market, significant growth in the Kazakhstan market, and the potential entry into other international markets. Production capacity will be added as needed at the Company's Daqing facility or other facilities as appropriate. Apart from its existing products, the Company is actively seeking opportunities to expand its product offering through research or acquisition.

With the delivery of three sets of blades, four turbines, 30 towers and various equipment accessories, the Company has successfully entered into the wind power equipment business. The proposed acquisition of Deta will enable the Company to build a direct relationship with a substantial wind farm customer, assist in procuring new customers in other parts of China, and upgrade its wind power related technologies to satisfy market demand. To date, Hanwei has confirmed delivery schedules from component suppliers for approximately 135 MW of turbine components in 2008, representing more than 50% of its needs for 2008, and is working with its suppliers to secure additional components for the current year. Hanwei is expecting 224 MW in orders for wind power equipment for 2008, including 24 MW from the initial order with Deta from 2007, and 200 MW in additional orders, subject to the acquisition of Deta.

With the commercialization of the Company's FRP spray headers for FGD pollution control systems, the Company has a product in the growing market in China for clean coal technologies. The signing of the MOU with Ershigs to form a joint venture in China will significantly expand its product offering in pollution control systems and the average size of sales per customer. Management expects significant growth in this segment in 2008 as well.

The Company's 2008 growth plan requires additional working capital and investments totalling approximately RMB 950 million ($130 million) in 2008. This includes working capital to support the growth in the wind power business, investments in manufacturing facilities in Tianjin, China and Kazakhstan, licensing of wind power technology, the proposed acquisition of Deta, and the proposed joint venture with Ershigs. The Company plans to finance the additional working capital and investments with cash in hand and cash from operations with an expected total of RMB 500 million ($68 million) and expected new debt facilities of RMB 450 million ($62 million). The new debt facilities have been preliminarily arranged with a commercial bank and a related party to a customer at prevailing debt rates. The Company also believes that it can access more equity financing if needed. If the debt and equity financing can not be secured, it would have material impact on the Company's ability to achieve its 2008 growth plan.

Conference Call

Hanwei will be holding a conference call to discuss its financial results for the year ended December 31, 2007. The details of the call will be announced separately.

For more information please contact:
Kim Oishi, Senior Vice President of Finance and Business Development
416-804-9228
koishi@hanweienergy.com

Kevin O'Connor, Investor Relations
416-962-3300
koconnor@genoa.ca

FORWARD LOOKING INFORMATION

This news release contains forward-looking statements and information that are based on the beliefs of management and reflect Hanwei's current expectations. When used in this news release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology, are intended to identify forward-looking statements and information. Such statements and information reflect the current views of Hanwei with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

There are a number of important factors that could cause Hanwei's actual results to differ materially from those indicated or implied by forward-looking statements and information, including Hanwei's growth strategy may fail, Hanwei is currently dependent on the oil and gas industry and the wind power industry for the majority of its sales, Hanwei may not be able to develop its proposed new products and services, risks related to expanding operations, Hanwei is dependent on a few major customers, a robust market for wind power products in China is still in the process of developing, Hanwei's wind power products have not been tested through actual operations, Hanwei may not be able to meet the delivery schedule of its wind power equipment (including wind turbines), Hanwei may not secure debt financing that is needed for its growth plans, Hanwei faces risks with respect to supply chain management, particularly with respect to its wind power business, changes in technology or product requirements may affect Hanwei's ability to compete in the wind power equipment industry, there is significant uncertainty surrounding wind power regulation in China, Hanwei must meet Chinese governmental localization requirements in producing its wind power products, in connection with improvements to its wind power blade product offerings, Hanwei may be dependent on the license granted by Aerodyn, the proposed acquisition of Deta may not complete on the terms negotiated or at all, Hanwei is dependent on key personnel, Hanwei depends on its intellectual property and the failure to protect that intellectual property may adversely affect Hanwei's future growth and success, Hanwei currently faces and will continue to face significant competition, Hanwei's pipe business currently faces seasonal fluctuations in revenues, Hanwei may not have adequate insurance for all potential claims, changes in raw material or energy costs may adversely affect Hanwei's operating margins, Hanwei's operations are subject to environmental risks and hazards, Hanwei faces specific risks associated with doing business in China (including risks relating to state ownership, government intervention, foreign investment, repatriation of profit and currency conversion, shareholders' rights and enforcement of judgments, developing legal system, recent Chinese regulations relating to cross-border mergers and acquisitions, protection of intellectual property rights, permits and business licenses, appropriation, tax, infrastructure and interest rate fluctuations), Hanwei faces specific risks associated with doing business in Kazakhstan, Hanwei faces risks associated with licensing FRP technology to Concept in India, the proposed joint venture for its coal business may fail, Hanwei is subject to exchange rate fluctuations, a significant percentage of Hanwei's common shares are owned, in the aggregate, by its directors and officers and Hanwei may be affected by actions of its joint venture partner.

Hanwei cautions that the foregoing list of material factors is not exhaustive. When relying on Hanwei's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Hanwei has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. While Hanwei may elect to, it does not undertake to update this information at any particular time.

For additional information with respect to certain of these and other factors, refer to the risk factors section of Hanwei's Annual Information Form to be filed shortly with Canadian securities regulators, which will be available on SEDAR at www.sedar.com.

Hanwei has included in this news release figures based orders received, which are non-GAAP measures. Readers are cautioned that orders received are not recognized measures under Canadian GAAP and should not be construed to be an indicator of performance or liquidity or cash flows. The Company's method of calculating these measures may differ from methods used by other entities and accordingly the Company's measures may not be comparable to similar measures used by other entities. The Company uses these figures because management has a high degree of confidence that the orders received will represent sales and it believes such figures provide a useful indication of the Company's progress in further developing its market in China and diversifying internationally.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF HANWEI AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE HANWEI MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.