Promising Wind Power Energy Market

Currently in the United States, wind energy accounts for 6% of renewable electricity generation and nearly 1% of total electricity supply. The United States Department of Energy recently issued its report titled “20% Wind Energy by 2030” (http://www1.eere.energy.gov/windandhydro/pdfs/41869.pdf) calling for 20% of all electricity production to be produced by wind by the year 2030.

China's Wind Power Industry is blowing past expectations: At the end of 2007, China's installed base of wind power totaled just over 6 gigawatts (GW), making China the fifth largest producer of wind power, after Germany, the U.S., Spain and India. As a consequence of the rapid build-out of wind power projects in China, in April 2008 the National Development and Reform Commission revised its 11th Five Year Plan Period plan for wind power development from 5 GW to 10 GW by 2010.

Strategic Move to Wind Power

Because wind power is proving to be a cost competitive source of power for this energy thirsty nation, the Chinese are aggressively ramping up capacity wherever wind resources can be found. As Chinese manufacturing prowess is increasingly put at the disposal of the wind power industry and the cost of wind power further declines, the rate of growth of wind power installations will continue to accelerate.

China Wind will leverage its experience in manufacturing high precision industrial equipment to producing critical components for use in the wind energy industry. The Company’s product portfolio will consist of large forged rolled rings, of up to 6 meters in diameter for use in large wind turbine units >3MW capacity, as well as other wind energy components such as shafts, yaw bearings, and gear boxes.

Profitable and Rapidly Growing Business Model

During first quarter 2008, net revenues were up 104.6% to $8.4 million from $4.1 million for the same period prior year. The increase in total revenue was attributable to increases from both business segments: dyeing and finishing equipment and electric power equipment.

Geographic Advantage

The Company is located in Qianzhou Village, which is famous for machinery supply. China Wind’s proximity to major transportation systems such as Yangtze Delta Area, Grand Canal of Jinghang, Huning Railway, 312 National Highway, enable the Company to supply its products to its customers at a relative cost advantage.

Market Advantage

China Wind has the market advantage in supplying forged rolled rings products. The Company, through its legacy businesses, manufactures industrial equipment for use in heavy machinery industries and leverages its existing customer network to supply forged rolled rings. Forged rolled rings is well-suited for use in torque-and pressure-resistant components, such as gears, engine bearings used in aircrafts, wheel bearings, couplings, rotor spacers, sealed discs and cases, flanges, pressure vessels and valve bodies. Currently, there are a limited number of manufacturers capable of producing large forged rings thus creating a shortage.

China Wind aims to address the shortage in forged rolled rings by supplying and eventually producing larger rolled rings and other wind components.