EX-99.1
China Hydroelectric Corporation Announces the Sale of 30 MW Yuheng
Hydroelectric Power Project
NEW YORK, October 18, 2012 /PRNewswire-Asia-FirstCall/ --China Hydroelectric Corporation (NYSE: CHC, CHCWS) (“China Hydroelectric” or the “Company”), an owner, developer and operator of small hydroelectric power projects in the People’s Republic of China (“PRC”), today announced the Company has entered into a Share Transfer Agreement to sell its Yuheng hydroelectric power project, a 30 megawatt (“MW”) project located in Fujian province, for total consideration of RMB279.0 million (approx. US$44.3 million), including the assumption of debt by the buyer. The sale of the project is expected to close in early 2013 and will result in a small profit to the Company.
Mr. Amit Gupta, chairman of the board of China Hydroelectric, stated, “The sale not only helps the Company move a step closer to fixing its current liquidity situation, but also reaffirms the fundamental value of the Company’s assets. In addition to this transaction, the Company continues to pursue other avenues to address its remaining liquidity needs in order to provide sufficient time for the new board to work with management on a comprehensive, long-term financing solution.”
About China Hydroelectric Corporation
China Hydroelectric Corporation (NYSE: CHC, CHCWS) (“China Hydroelectric” or “the Company”) is an owner and operator of small hydroelectric power projects in China. Through its geographically diverse portfolio of operating assets, the Company generates and sells electric power to local power grids. Led by an international management team, the Company’s primary business is to identify, evaluate, acquire, develop, construct and finance hydroelectric power projects. The Company currently owns 26 operating hydropower stations in China with total installed capacity of 548 MW, of which it acquired 22 operating stations and constructed four. These hydroelectric power projects are located in four provinces: Zhejiang, Fujian, Yunnan and Sichuan. Hydropower is an important factor in meeting China’s electric power needs, accounting for approximately 22% of total nation-wide capacity.
For further information about China Hydroelectric, please visit the Company’s website at http://www.chinahydroelectric.com.
Cautionary Note Regarding Forward-looking Statements and Weather Data
Statements contained herein that address operating results, performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. The forward-looking statements include, among other things, statements relating to the Company’s business strategies and plan of operations, the Company’s ability to acquire hydroelectric assets, the value of its hydroelectric assets, the Company’s capital expenditure and funding plans, including its plans to address the Company’s liquidity needs and come up with a comprehensive, long-term financing solution, the Company’s operations and business prospects, projects under development, construction or planning and the regulatory environment. The forward-looking statements are based on the Company’s current expectations and involve a number of risks,
uncertainties and contingencies, many of which are beyond the Company’s control, which may cause actual results, performance or achievements to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: supply and demand changes in the electric markets, changes in electricity tariffs, hydrological conditions, the Company’s relationship with and other conditions affecting the power grids we service, the Company’s production and transmission capabilities, availability of sufficient and reliable transmission resources, our plans and objectives for future operations and expansion or consolidation, interest rate and exchange rate changes, the effectiveness of the Company’s cost-control measures, the Company’s liquidity and financial condition, environmental laws and changes in political, economic, legal and social conditions in China, and other factors affecting the Company’s operations that are set forth in the Company’s Annual Report on Form 20-F for the year ended December 31, 2011 filed with the Securities and Exchange Commission (the “SEC”) on April 27, 2012 and in the Company’s future filings with the SEC. Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact:
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| Company: | Investor Relations firm: | |
| John E. Donahue, VP of Investor Relations | Scott Powell, Senior Vice President | |
| China Hydroelectric Corporation | MZ Group | |
| Phone: +1-646-467-9810 | Phone: +1-212-301-7130 | |
| Email: john.donahue@chinahydroelectric.com | Email: scott.powell@hcinternational.net | |