Hanwei Energy Services Reports First Quarter Fiscal 2016 Financial and Operational Results - Seite 2

The Company had a loss from continuing operations of $1.5 million as compared to a loss from continuing operations of $1.2 million for the same period of the prior year. The increase in loss from continuing operations was primarily due to the aforementioned reduction in FRP pipe sales.

As of June 30, 2015 the Company had:

• A cash balance (inclusive of short term investments) of $9.5 million
  
  
• A Net Asset Value per share for its continuing operations of $0.21 (on total shares outstanding of approximately 194.2 million)
  
  
• A total principal amount of all bank loans of $7.1 million representing a 23% debt to equity ratio (total bank debt divided by total shareholders' equity) as compared to 32% as at March 31, 2015.
  
  

The Company continues to increase its activities and revenues in Canada. Canadian revenues as a percentage of total revenues increased to 40% for the three months ended June 30, 2015 as compared to 20% for the same period of the prior year. This was primarily driven by the increase in revenues from the Company's oil and gas production and operations in Alberta.

Update on FRP Pipe Sales in Canada

Hanwei has approximately 34,000 metres of its high pressure line pipe operational in Canada that was installed over the last eighteen months.

• The Company recently confirmed installations of its FRP line pipe products from available inventory in Canada with three significant Alberta operators.
  
  
• The Company was recently approved as a qualified vendor with an additional and fourth Alberta operator.
  
  
• The Company confirmed a first order for its down hole tubing products to be utilized as a pilot project to a Canadian operator to improve its operating efficiencies. This is the first order of the Company's down hole tubing products to Canada complementing and in addition to its previous line pipe orders. This 2,000 PSI, 60 mm diameter, down hole tubing order has been successfully installed and additional down hole tubing orders are anticipated from this Canadian operator.