Ticker (OTC BB) CHWY

Price (11/17/2009) $4.33

Market Cap(15.4m Shares): $66.7
Revenues (ttm): $48.5 mil
Net Income** (ttm): $6.5 mil
Diluted Shares Outstanding, 09/30/09: 22.0* mil
EPS** (ttm): $0.30
P/E (ttm): 14.4X
P/S (ttm): 1.4X
* Diluted weighted average shares for the 9 months ended Sept 30, 2009,
adjusted for a one-for-three reverse stock split

Company Description - China Wind Systems, Inc. (“China Wind Systems,” the “Company”) was founded in 1995 and supplies forged
products and industrial equipment to the wind power and other industries in China. With its newly finished state-of-the-art production
facility, the Company plans to increase its production of high-precision rolled rings and other essential components primarily for the wind
power industry. China Wind Systems now manufactures forged rolled rings up to 6.3 meters in diameter with a cross section up to 700
millimeters. The Company is headquartered in Jiangsu Province, China.

Investment Highlights

Revenue ($ in Millions) Rapidly Expanding Wind Power Market in China - China is among the world's
leaders in wind-power advancement. In June 2007, the National Action Plan on Climate
45 42.3 Change set the goal to reduce China’s annual greenhouse gas emissions by 1.5 billion
40 37.6 tons of carbon dioxide by 2010. China now encourages alternative energy development,
31.4
35
30 considering the dwindling supply of fossil fuels for power generation and pollution from coal-
24.4
25 18.2 burning. China’s wind power installed capacity doubled in 2008 to reach 12.2 GW and is
20 expected to reach 30 GW in 2010, which was orginally the targeted installed wind capacity in
15
10 2020. Recently, China announced that the target for installed capacity in 2020 will increase
5 another five times to 150GW, which represents a potential $200 billion in wind turbines
0
2006 2007 2008 9Mos08 9Mos09 components and projects through 2020.

Transition to Stronger Growth, Higher Gross Margin Wind Power Segment

Gross Profit ($ in Millions) - China Wind Systems leverages its experience manufacturing high-precision industrial
12 10.5 equipment to produce critical components for the wind energy industry to alleviate the
supply chain bottleneck. The Company’s product portfolio consists of large forged rolled
10
7.9 8.6 rings up to 6.3 meters in diameter for use in large wind turbine units up to 5 MW in
8 7.1
capacity, as well as other wind power components such as gear rims, flanges and shafts.
5.4
6 These products generate gross margins of 28% to 30%, significantly higher than the 22%
4 gross margin of the Company’s forged rolled rings up to 3 meters in diameter. In October
2
2009, the Company commenced construction of its electro-slag remelted forged product
facility to manufacture high precision forged products components with anticipated gross
0
2006 2007 2008 9Mos08 9Mos09 margins of 35%-40%.

Precision Technology and Strategic Location Offer Key Competitive

EBIT and Net Income ($ in Millions)
Advantages - China Wind Systems is located in Qianzhou Village (Wuxi City), which is
EBIT well known for machinery supply. The proximity to major transportation systems such as
9 Net Income 8.1
8 6.9 Yangtze Delta Area, Grand Canal of Jinghang, Huning Railway, and 312 National Highway
7 6.0 enables the Company to supply its products to customers at a relative cost advantage.
5.7 5.8 5.1
6
5 4.7 4.3 Further, China Wind Systems plans to capitalize on its unique and established forging
3.6
4 3.1 technology- axial closed-die rolling technology- to manufacture large forged rolled rings
3 and other wind energy components. Most competitors rely on less effective technology,
2
1
such as steam hammer and friction press, that waste energy and cause more pollution.
0
2006 2007 2008 9Mos08 9Mos09 Strong Financial Profile With Minimal Long-Term Debt - In 2008, China Wind
Systems increased net revenues 73% to $42.3 million and operating income 42% to
2007 net income before and after-tax exclude, $6.7 M in one- $8.1 million. Adjusted net income for 2008 grew 63% to $5.8 million, or $0.09 per fully
time tax benefit, Q3, 2007 diluted share, from $3.6 million, or $0.09 per fully diluted share in 2007. In the third
2008 net income before and after tax net income exclude
non-cash charges of ($2.3M) related to amortization of debt quarter of 2009, total revenues increased 37% to $16.1 million, with adusted net income
discount to interest expense and one-time non-cash charge of $2.5 million, or $0.09, per fully diluted share, a 34.3% increase year over year. As of
of ($2.9) M, related to deemed preferred dividend related to
issuance of stock warrants upon conversion of convertible debt September 30, 2009, China Wind Systems had $1.2 million in cash and cash equivalents,
to series A preferred stock in Q1 08. working capital of $5.4 million, $1.4 million in short-term loans payable, and $0.7 million of
2009 net income excludes $0.5 M in non-cash deemed
preferred dividend related to issuance of 1.1 million preferred long-term debt.
shares in Q3 09
The Market Opportunity

A Global Growth Trend - According to the Global Wind Energy Council, global installed wind
energy capacity reached 120 GW and the global market topped 27 GW at year-end 2008. Further,
investment in new power generation equipment topped $50 billion during 2008. China’s installed
capacity doubled for the fourth consecutive year and surpassed 12 GW in 2008. While China ranked
fourth in the world in installed capacity at the end of 2008, behind the United States (25 GW),
Germany (24 GW), and Spain (17 GW), China ranked second globally for installed new capacity in
2008 with 6 GW, behind the United States with 8 GW.

Recently, the Chinese government announced its new goal to increase China's projected installed
wind capacity to 150 GW by 2020, representing potential $200 billion market for wind power
components and projects in China. Leveraging on the industry growth momentum, China Wind
Systems has recently signed a $14 million contract to supply wind tower flanges, demonstrating the
compelling long-term opportunities available in the wind power industry.

Competitive Landscape - The barriers to entry in the wind energy industry are very high relative to
the capital investment required for property, plants and equipment. In addition, the industry requires
significant investments in personnel. China Wind Systems, through its business of manufacturing
industrial equipment, now leverages its technical expertise to manufacture wind components. There
are only a few competitors manufacturing large forged rings measuring 6.3 meters in diameter with a
cross section of 700 millimeters. Presently, the majority of Chinese rolled-ring producers rely on less
effective technology than forging, such as the steam hammer and friction press, resulting in pollution
and energy waste.

** TTM net income and diluted EPS exclude non-cash charges of $0.2 M related to amortization of debt discount and interest expense
and non-cash charge of $0.5 M related to deemed preferred dividend related to issuance of stock warrants upon conversion of
convertible debt to series A preferred stock in Q3 09.

For Further Information

Company Contact: Investor Relations:

China Wind Systems, Inc CCG Investor Relations
Leo Wang, Chief Financial Officer Crocker Coulson, President
No. 9 Yanyu Middle Road 1325 Avenue of Americas Suite 2800
Quinzhou Village, Huishan District, New York, NY 10019
Wuxi City, Jiangsu Province, PRC Tel: (646) 213-1915
Tel: (917) 455-7735 E-mail: crocker.coulson@ccgir.com
E-mail: leo.wang@chinawindsystems.com

Legal Contact: Investor Relations:

Asher S. Levitsky P.C. CCG Investor Relations
Sichenzia Ross Friedman Ference LLP Crocker Coulson, President
61 Broadway New York 1325 Avenue of Americas Suite 2800
NY 10006 New York, NY 10019
Tel: (212) 981-6767 Tel: (646) 213-1915
E-mail: ALevitsky@srff.com E-mail: crocker.coulson@ccgir.com

Business Risks and Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-
looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
Such factors include, but are not limited to, the company's ability to obtain the necessary financing to continue and expand operations, to market its
products in new markets and to offer products at competitive pricing, to attract and retain management, and to integrate and maintain technical information
and management information systems; compliance with laws and regulations of the PRC, the effects of currency policies and fluctuations, general
economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and
other regulatory authorities. This Profile of China Wind Systems was developed by the Company, is intended solely for informational purposes and is not
to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This Profile is based upon information available to the public,
as well as other information from sources which management believes to be reliable, but is not guaranteed by China Wind as being accurate nor does it
purport to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.