China Wind Power blames doubtful account for delayed reporting

Aug 2, 2012 - Canada-based China Wind Power International Corp (CVE:CNW) said Wednesday the reason for the previously announced delay in the filing of its annual financial and other formal statements for the fiscal year to March 31 was a doubtful account of up to CAD 13.6 million (USD 13.5m/EUR 11m).

The wind farm developer said the account was related to pre-payments for equipment made to a wind turbine supplier in previous years. However, this party has not supplied the related equipment nor have they refunded the pre-payments. The company estimated that the total outstanding amount it was owed as at March 31 was CAD 13.6 million.

The board of directors' audit committee and an independent committee including two Canadian independent directors have called on the companys management to provide additional information on the transaction and ordered a review of other transactions with related parties to make sure that they have been properly disclosed.

China Wind Power's management is currently in talks with the supplier in an attempt to find a solution to the issue and the company reiterated its determination to collect the full outstanding amount.

The company said it expected to resolve the issue and file its statements within two to four weeks.

(CAD 1 = USD 0.995/EUR 0.812)

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