HE Hanwei Energy Services Corp

Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today
reported its financial results for the year ended March 31, 2013 (the "2013
Fiscal Year"). All amounts are in Canadian Dollars unless otherwise noted. The
Company's ongoing focus on sales, production processes and cost controls
resulted in significant improvements in revenue, gross profit margin and EBITDA
on a year over year basis. 




----------------------------------------------------------------------------
Summary of the 2013 Fiscal Year Financial Results                           
in thousands of CDN$ except percentages and per share data                  
                                                                            
                                                 FY2013 FY2012  Change     %
----------------------------------------------------------------------------
Revenue                                          29,657 27,652   2,005    7%
Gross Profit                                      9,879  8,985     894   10%
EBITDA                                            4,264    533   3,731  700%
Net Income                                        2,452 (3,959)  6,411  162%
  Diluted EPS                                      0.03  (0.06)   0.09  150%
----------------------------------------------------------------------------
Balance Sheet Indicators (Continuing Operations)                            
  Total Assets                                   61,460 61,082     378    1%
  Total Liabilities                              26,142 27,706  -1,564   -6%
  Net Asset Value (NAV)                          35,318 33,376   1,942    6%
    NAV/Share (fully diluted)                      0.49   0.47    0.02    4%
----------------------------------------------------------------------------



For the year ended March 31, 2013:



--  Revenue from continuing operations was $29.7 million for the 2013 Fiscal
    Year compared to $27.7 million for the 2012 Fiscal Year. The increase of
    $2.0 million (or 7%) was primarily due to international orders in the
    Company's Kazakhstan market that increased from $8.3 million for the
    2012 Fiscal Year to $17.7 million or by 113% for the 2013 Fiscal Year.
    This increase was a result of ongoing direct sales and marketing efforts
    leveraging off the successful operating performance of previous pipe
    installations of the Company. This increase in the Kazakhstan market
    also offset a reduction in sales from the Company's China market that
    decreased from $18.9 million for the 2012 Fiscal Year to $10.7 million
    for the 2013 Fiscal Year or by 43%. This decrease was primarily due to a
    reduction in demand from the major Chinese customers and increased
    competition from alternative product suppliers.
      
--  Gross profit for the 2013 Fiscal Year totaled $9.9 million (or 33.3% of
    revenue) as compared to $9.0 million (or 32.5% of revenue) for the prior
    year. This represents a 10% increase in gross margin on a year over year
    basis in context to the aforementioned 7% increase in revenues.
      
--  The Company achieved positive EBITDA from continuing operations of $4.3
    million (or 14% of revenues) for the 2013 Fiscal Year as compared to
    $0.5 million for the prior year representing a significant $3.7 million
    (or 700%) improvement in EBITDA. This was due to additional savings and
    ongoing control of G&A expenses, in addition to the aforementioned cost
    savings in production.
      
--  The year over year increases in both gross profit margin and EBITDA, at
    a higher rate than the increases in year over year revenue, resulted in
    very positive flow through of cost savings and a significant increase in
    net income. Net income for the 2013 Fiscal Year was $2.5 million, or
    $0.03 per share (including a one-time, income tax recovery of $1.6
    million or $0.02 per share), as compared to a net loss for the prior
    year of $4 million (or -$0.06 per share), and representing a positive
    improvement of $6.4 million. 



Other Highlights:



--  As of March 31, 2013 the Company's cash balance was approximately $5
    million versus $1 million for the same date of the prior year.
      
--  As of March 31, 2013, the Company's Net Asset Value per share for its
    continuing operations was $0.49 (compared to $0.47 as at March 31,
    2012).
      
--  The Company is generating positive cash flows from operating activities
    significantly reducing its short-term loans. The total principal amount
    of all bank loans was $17.2 million as at March 31, 2013 representing a
    69% debt to equity ratio (total debt including amounts due to related
    parties, divided by total shareholders' equity) for the Company. The
    Company continues to effectively manage its bank loans and debt
    facilities. For comparison, the aggregate principal amount of bank loans
    as at March 31, 2012 was $20.8 million; the aggregate principal amount
    of bank loans as at March 31, 2010 was $50.8 million. Bank loans have
    successfully been repaid, renewed or extended, when they have reached
    maturity.
      
--  During the year ended March 31, 2012, the Company executed a contract
    for sale of the majority of its wind power equipment inventory totaling
    RMB 93.6 million ($15.3 million). To date RMB 75.3 million ($12.3
    million) of this amount has been received by the Company with the
    balance of approximately RMB 18.3 million ($3.0 million) expected to be
    received before the end of calendar 2013.
      
--  Subsequent to the year end, the Company had reached an agreement to sell
    all of the equity interest in its wholly owned subsidiary Kerui Green
    Energy Equipment (Tianjin) Co., Ltd. ("Hanwei Green") to a private
    Chinese company for an amount of RMB 65 million ($10.6 million). The
    major asset of Hanwei Green is a manufacturing plant located in Tianjin,
    China which was constructed for the production of wind blades. Hanwei
    has received a deposit of RMB 1.0 million ($0.2 million) from the buyer
    in April 2013. In addition, Hanwei shall also receive: RMB 11 million
    ($1.8 million) when the transfer of the business license of Hanwei Green
    is approved by regulatory authorities to reflect the new ownership; RMB
    19 million ($3.1 million) on or before December 31, 2013; and RMB 35
    million ($5.7 million) within twelve months after the agreement was
    signed on May 27, 2013. The remaining payments are secured by certain
    corporate and personal guarantees.



For the three months ended March 31, 2013:



--  Revenue for the fourth quarter of the 2013 Fiscal Year was $7.9 million
    as compared to $6.7 million for the same period of the prior year.
      
--  Net income improved considerably to $1.8 million for the fourth quarter
    of the 2013 Fiscal Year as compared to a net loss of $0.6 million for
    the same period of the prior year.
      
--  Basic and diluted earnings per share was $0.03 for the fourth quarter of
    the 2013 Fiscal Year as compared to basic and diluted loss per share of
    $0.01 for the same period of the prior year.



Hanwei will host a conference call to discuss its operational and financial
results for the year ended March 31, 2013. Graham Kwan, Executive Vice President
and Rick Huang, Chief Financial Officer of Hanwei will host the call. Management
invites analysts and investors to participate on the conference call:


Date: Wednesday, June 19, 2013 

Time: 1:30 p.m., Eastern Time 

Dial in number: 1-888-430-8709 or 1-719-325-2362 

A replay of the conference call will be available on the Company's website
www.hanweienergy.com. 


About Hanwei Energy Services Corp.

Hanwei Energy Services Corp. is a leading manufacturer of high pressure,
fiberglass reinforced plastic ("FRP") pipe products and associated technologies
and services for the international oil and gas infrastructure industries. Hanwei
serves major energy customers in the Chinese and global energy markets. 


www.hanweienergy.com

FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES

Certain information in this press release is forward-looking within the meaning
of certain securities laws, and is subject to important risks, uncertainties and
assumptions a description of which is set out in the risk factors section of the
Company's Annual Information Form dated June 18, 2013 and Management Discussion
and Analysis for the year ended March 31, 2013 both of which are filed with
Canadian securities regulators and available on SEDAR at www.sedar.com. The
forward-looking information in this press release describes the Company's
expectations as of the date of this press release.


THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE
EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS 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 THE COMPANY MAY ELECT TO, THE COMPANY
DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS
REQUIRED BY APPLICABLE SECURITIES LEGISLATION.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Hanwei Energy Services Corp.
Graham Kwan
Executive VP, Strategic Development and Corporate Affairs
604-685-2239
gkwan@hanweienergy.com


Hanwei Energy Services Corp.
Yucai (Rick) Huang
Chief Financial Officer
604-685-2239
yhuang@hanweienergy.com
www.hanweienergy.com

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