VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 18, 2015) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today reported its financial results for the year ended March 31, 2015 (the "2015 Fiscal Year"). All amounts are in Canadian Dollars unless otherwise noted.

Hanwei's principal business operations are in two complementary segments of the oil and gas industry as both a specialized pipe supplier to the industry and as an operator of its own producing oil and gas properties in Alberta. For the financial year ended March 31, 2015 a summary of the Company's annual financial results are noted as follows.

Summary of the 2015 Fiscal Year Financial Results from Continuing Operations

in thousands of CDN$ except percentages and per share data

		FY2015								FY2014
		Pipe		Oil & Gas		Corporate		Total		Pipe		Oil & Gas		Corporate		Total
Revenue		15,529		3,371				18,900		18,008		-		-		18,008
EBITDA		(4,058	)	388		(264	)	(3,934	)	(2,310	)	-		1,146		(1,164	)
EBITDA Margin		(26	%)	12	%	n/a		(21	%)	(13	%)	-		n/a		(6	%)
EBITDA per share		(0.04	)	0.00		(0.00	)	(0.04	)	(0.04	)	-		0.02		(0.02	)
Net Income (loss)		(7,135	)	(1,090	)	868		(7,357	)	(4,812	)	-		2,548		(2,264	)
Diluted EPS (Basic and diluted)		(0.08	)	(0.01	)	0.01		(0.08	)	(0.07	)	-		0.04		(0.03	)
Weighted average number of outstanding shares
	Basic							88,153,498								71,093,398
	Diluted(1)							88,153,498								71,093,398

Note 1: Current total shares outstanding is 194,201,234

Total Revenue Up Despite Industry Downturn. In general the global fall in oil and gas commodity prices has negatively impacted the overall industry with numerous projects placed on hold. Notwithstanding this negative macro-market situation, the Company's revenues for the twelve months ended March 31, 2015 increased by 5% to $18.9 million as compared to $18.0 million for the prior year.

New Oil and Gas Producing Assets Provide Positive EBITDA. The Company acquired its first oil and gas production asset in the Leduc area of Alberta, Canada during the three months ended June 30, 2014. The 5% increase in revenues was contributed by this new oil and gas production business that generated revenues of $3.4 million in its first year of operation with an EBITDA margin of 12%. Average gross revenue per boe for the fiscal year ended March 31, 2015 was $36.87 and netback per boe was $9.77.

Revenue is shifting to Canada. Revenues generated in Canada significantly increased to $6.1 million or 33% of total revenues for the twelve months ended March 31, 2015 from $0.1 million or 1% of total revenues for the same period of the prior year. In addition to the oil and gas production business, the Company's sales and marketing activities increased FRP pipe sales in Canada to $2.7 million for the twelve months ended March 31, 2015 representing 18% of total Company FRP pipe sales for the year, from $0.1 million of FRP pipe revenues from Canada for the same period of the prior year.

Kazakhstan FRP Market Remains Weak but Overall FRP Gross Profit Maintained. The Kazakhstan market declined by 38% with sales falling to $7.4 million for the year ended March 31, 2015, from $12.2 million for the prior year. The China market generated sales of $5.4 million for the year ended March 31, 2015 and equal to the prior year. While total FRP pipe sales for the year ended March 31, 2015 declined by 14% to $15.5 million as compared to $18.0 million for the prior year, FRP pipe gross profit for the year ended March 31, 2015 was $4.0 million and equal to the prior year as an outcome of product pricing and lower manufacturing costs.

FRP Pipe Marketing Costs and Bad Debt Impacted EBITDA and Net Income Results. The Company invested significantly in sales and marketing in an effort to drive revenue given the industry downturn. Sales and marketing expenses attributed to the FRP pipe business for the year ended March 31, 2015 were $4.2 million or a 194% increase as compared to $1.4 million for the prior year. The Company also recorded an additional bad debt allowance primarily related to the Company's Kazakhstan market. These increased expenses resulted in the Company producing negative EBITDA and a loss from continuing operations of $3.9 million and $7.4 million respectfully for the year ended March 31, 2015 as compared to negative EBITDA and a loss from continuing operations of $1.2 million and $2.3 million for the prior year.

Other Highlights:

• On September 3, 2014, the Company announced the closing of a non-brokered private placement for 25,659,057 common shares in the capital of the Company at a price of $0.192 per common share for gross proceeds of $4.9 million.
• On March 18, 2015, the Company announced that it had completed a rights offering (the "Rights Offering") for gross proceeds of $7.3 million at a price of $0.075 per common share. The Company issued a total of 97,100,617 common shares which represented 100% of the maximum number of common shares available under the Rights Offering. The Company's total issued and outstanding common shares following the Rights Offering was 194,201,234.
• As of March 31, 2015, the Company's cash balance was approximately $9 million versus $5.5 million for the same date of the prior year.
• The total principal amount of all bank loans was $10 million as at March 31, 2015 representing a 32% debt to equity ratio for the Company. For comparison, the aggregate principal amount of bank loans as at March 31, 2014 was $5.2 million with a debt to equity ratio of 33%.

Balance Sheet Indicators for Continuing Operations (as of March 31)
in thousands of CDN$ except percentages and per share data
			FY2015	FY2014	Change	%
Balance Sheet Indicators (Continuing Operations)
	Total Assets		65,127	52,364	12,763	24	%
	Total Liabilities		22,729	18,143	4,586	25	%
	Net Asset Value (NAV)		42,398	34,221	8,177	24	%
		Total Shares Outstanding at the Period End	194,201,234	71,411,559	123,789,675	173	%
		NAV/Share	0.22	0.48

Hanwei will host a conference call to discuss its operational and financial results for the year ended March 31, 2015. Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of Hanwei will host the call. Management invites analysts and investors to participate on the conference call:

Date:	Friday, June 19, 2015
Time:	1:00 p.m., Eastern Time (10:00 am Pacific Time)
Dial in number:	1-888-510-1785 or 1-719-457-2697

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.'s principal business operations are in two complementary key segments of the oil and gas industry as both an equipment supplier to the industry (as a leading manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies serving major energy customers in the global energy market) and as an operator of its producing oil and gas mineral rights at its Leduc Lands in Alberta.

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 17, 2015 and Management Discussion and Analysis for the year ended March 31, 2015 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.