HE Hanwei Energy Services Corp

Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today
reported its financial results for the quarter ended September 30, 2013 (the
"Reporting Period"). All amounts are in Canadian Dollars unless otherwise noted.





--  During the three-month period ended September 30, 2013 the Company
    received a payment of $1.2 million (RMB7 million) as part of the
    outstanding accounts receivable due from its wind farm customers. This
    contributed to Hanwei's net income for the three months ended September
    30, 2013 of $1.5 million as compared to a net loss of $0.3 million for
    the same period of the prior year, with basic and diluted earnings per
    share of $0.02 as compared to basic and diluted earnings per share of
    nil for the prior year.
      
--  The total principal amount of all bank loans was reduced to $8.5 million
    as of September 30, 2013 (representing a debt to equity ratio of 32%) as
    compared to $17.2 million as at March 31, 2013 (representing a debt to
    equity ratio of 69%).
      
--  As of October 31, 2013 FRP pipe sales orders were approximately $5.4
    million and are expected to be completed within the fiscal year ending
    March 31, 2014.
      
--  Net asset value per share from continuing operations (on a fully diluted
    basis) was $0.50 as at September 30, 2013. 



As of the date of this press release, and inclusive of the above mentioned $1.2
million amount, approximately $31.8 million (RMB189.2 million) of the accounts
receivable due from the Company's wind farm customers has been collected with a
balance of $5.7 million (RMB34.0 million) outstanding. The full amount of this
receivable was previously allowed for and the Company's wind power business has
been discontinued. The Company is continuing its efforts to collect the balance
of this outstanding amount.


As previously reported the Company reached an agreement on May 27, 2013 to sell
all of the equity interest in its wholly owned subsidiary Hanwei Green to a
private Chinese company for an amount of $10.9 million (RMB65 million). The
major asset of Hanwei Green is a manufacturing plant located in Tianjin, China
which was constructed for wind blade production. Regulatory documentation on the
ownership transfer and sale is underway with the relevant government
authorities. The Company received a deposit of $0.2 million (RMB1.0 million) in
April 2013 from the buyer. According to the agreement, the Company will receive
$1.8 million (RMB11.0 million) when the transfer of the business license of
Hanwei Green is approved by regulatory authorities, $3.2 million (RMB19.0
million) before December 31, 2013, and $5.9 million (RMB35.0 million) within
twelve months after the agreement was signed on May 27, 2013. 


Also, and as previously reported, during the year ended March 31, 2012 the
Company executed a contract for sale of the majority of its wind power equipment
inventory to a Chinese customer for agreed items totaling $15.7 million (RMB93.6
million). To date $12.6 million (RMB75.3 million) of this amount has been
received by the Company. The balance to be paid is approximately $3.1 million
(RMB18.3 million) and is expected to be received during 2013.


Additional Financial Highlights

For the three months ended September 30, 2013:



--  Revenues increased by 7% to $3.8 million (from $3.6 million for the same
    period of the prior year) with approximately $1.9 million in sales from
    each of the Company's China and international markets. 
--  EBITDA from continuing operations was negative $118,000 as compared to
    EBITDA from continuing operations of $327,000 for the same period of the
    prior year. The decline in EBITDA from continuing operations was
    primarily driven by the decline in gross profit due to weakness in the
    Company's China market. 



For the six months ended September 30, 2013:



--  Revenues were $7.6 million representing a decline of 42% as compared to
    revenues of $13.2 million for the same period of the prior year. The
    decline was caused by continuing weakness in the Company's China market
    during the first quarter of the Company's 2014 Fiscal Year.  
--  EBITDA from continuing operations was negative $292,000 as compared to
    EBITDA from continuing operations of $2.0 million for the same period of
    the prior year. The decline in EBITDA was primarily driven by the
    decline in gross profit and reduced sales.  
--  Net income was $0.5 million as compared to net income of $0.6 million
    for the same period of the prior year, a decline of $0.1 million driven
    by decreased gross profit from continuing operations. Basic and diluted
    earnings per share was $0.01 and equal to that for the same period of
    the prior year. 



Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of
Hanwei will host a conference call to discuss its operational and financial
results for the quarter ended September 30, 2013. Management invites analysts
and investors to participate on the conference call:




Date:           Thursday November 7th, 2013                                 
Time:           1:00 p.m., Eastern Time                                     
Dial in number: 1-888-428-9480 or 1-719-325-2281                            



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 world leader in the manufacturing of high
pressure, fiberglass reinforced plastic ("FRP") pipe products, and associated
technologies and services, for the international oil and gas and infrastructure
industries. Hanwei serves major energy customers in the Chinese and global
energy markets. 


www.hanweienergy.com

Neither the TSX nor its Regulation Services Provider (as that term is defined in
the policies of the TSX) accepts responsibility for the adequacy or accuracy of
this release.


FORWARD-LOOKING INFORMATION 

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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