CHINA HYDROELECTRIC CORPORATION (USD) 
By - Continuing Ops Electricity sold down 7.6% YOY
- Continuing Ops Net revenue down 6.3% YOY
-Continuing Ops Non-GAAP net income up 18.2% YOY
- Continuing Ops Non-GAAP net income per ADS up 33% YOY
-Cash up $8.3 million (excluding restricted cash) and bank loans down $6.6 million from Q1 2013
Beijing, August 15, 2013- 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, today announced its unaudited financial results for the second quarter ended June 30, 2013.
For the second quarter of 2013, revenues from continuing operations (net of value-added tax) declined 6.3% year over year to $29.8 million, due to a 7.6% decline in electricity sold. Despite the revenue decline, non-GAAP net income from continuing operations increased 18.2% year over year to $6.5 million. Non-GAAP net income from continuing operations per diluted ADS increased 33.3% year over year to $0.12. Precipitation during the quarter was 13% below the long-term average for the company, due to lower rainfall in the three main provinces in which the Company operates.
"Results this quarter again confirm the effectiveness of the Company's strategy to mitigate precipitation fluctuations through tight control of operating expenses," stated Mr. Amit Gupta, Chairman of China Hydroelectric. "In the second quarter of 2013, the Company increased its bottom line despite lower revenues, which are dependent on weather and beyond the Company's control. The strong Q2 results are a reflection of management's focus on operational efficiency, cost control, and debt reduction."
Dr. You Su-Lin, interim Chief Executive Officer added, "This quarter represented a tough comparison with Q2 2012, due to the high rainfall last year and dryer conditions this year. Precipitation was 13% below the long-term average, versus being 10% above the long-term average last year. Nonetheless, non-GAAP net income increased by 18.2%. Our stronger balance sheet, which has more cash and lower debt, is noteworthy. We will continue to focus on operational excellence and improve profitability and our balance sheet."
Precipitation in Q2 2013 was approximately 13% below the long-term average, due to dryer conditions in the three main provinces in which the Company operates. In contrast, Q2 2012 precipitation was 10% above the long-term average. Due to less precipitation, electricity sold in Q2 2013 declined approximately 7.6% when compared to Q2 2012. The reduced rainfall resulted in a utilization rate of 49.8% in Q2 2013, compared to 54.3% in Q2 2012.
The following table presents precipitation levels for the Company's three main operating regions as a percentage of historical long term average for the periods indicated.
Precipitation - Percentage of Long-Term Average*
