China Solar & Clean Energy, Inc. Increases Ownership in Tianjin Huaneng to 92%
October 31 2008 - 8:00AM
PR Newswire (US)
BEIJING, Oct. 31 /Xinhua-PRNewswire-FirstCall/ -- China Solar &
Clean Energy Solutions, Inc. (OTC:CSOL) (BULLETIN BOARD: CSOL)
("CSOL" or the "Company"), a premier manufacturer and distributor
of solar water heaters, renewable energy solutions, and space
heating devices in the People's Republic of China, today announced
that it has increased its ownership stake in one of its key
subsidiaries, Tianjin Huaneng Group Energy Equipment Co., Ltd.
(Tianjin Huaneng), to approximately 92% of shares outstanding. On
July 1, 2007 Beijing Deli Solar Technology Development Co., Ltd.
(Deli Solar), a wholly-owned subsidiary of CSOL, purchased 51% of
the equity in Tianjin Huaneng for a purchase price of approximately
$1.7 million. On October 27, 2008 Deli Solar agreed to purchase an
additional 30% of the equity in Tianjin Huaneng for RMB 10.7
million (approximately $1.6 million) in cash. In addition to the
cash purchase price, the Company also agreed to issue to Tianjin
Huaneng shareholders a total of 1 million five year warrants to
purchase the Company's common stock at an exercise of $1.10 per
share. In addition to purchasing shares from Tianjin Huaneng's
shareholders, CSOL also contributed RMB 15.7 million (approximately
$2.3 million) directly into Tianjin Huaneng in exchange for newly
issued shares representing approximately 11% of the equity of
Tianjin Huaneng, bringing CSOL's total stake in Tianjin Huaneng to
roughly 92%. Tianjin Huaneng plans to use the additional capital
for general purposes to support the growth of its business.
"Tianjin Huaneng has been a successful strategic acquisition for
us. We are very pleased to have been able to increase our stake in
Tianjin Huaneng and to have contributed additional capital toward
Tianjin Huaneng's continued success," stated Mr. Deli Du, Chief
Executive Officer of China Solar & Clean Energy Solutions.
"Tianjin Huaneng's heating pipes, heat exchangers, high temperature
hot blast stoves, heating filters and other products all help
industrial facilities convert excess heat into useable energy. For
many reasons, including China's high growth rate, shortage of
energy, increasing energy prices, and government regulations
relative to alternative energy, we expect demand for Tianjin
Huaneng's products to continue to experience significant growth in
the years ahead. Due to its superior technology and excellent
reputation for quality, we also expect Tianjin Huaneng to grow
rapidly as demand for its products grows. With this additional
capital, Tianjin Huaneng will be in a better position to finance
that growth. Now that CSOL has increased its stake to over 90%, we
are pleased that our shareholders will be able to benefit in
greater measure from Tianjin Huaneng's future growth." About China
Solar & Clean Energy Solutions, Inc. China Solar & Clean
Energy Solutions, Inc. operates through its subsidiaries Bazhou
Deli Solar Energy Heating Co. Ltd. ("Deli Solar (Bazhou)"), Beijing
Deli Solar Technology Development Co., Ltd., Tianjin Huaneng Group,
and Shenzhen Peng Sang Pu Co., Ltd., all located in the PRC. The
Company manufactures and distributes various forms of alternative
energy systems including solar thermal systems for hot water and
space heating, industrial heat recovery systems, and solar-powered
lighting devices. For more information, please visit
http://www.delisolar.com/ . Safe Harbor Statement: Certain
statements in this news release may contain forward-looking
information about China Solar & Clean Energy Solutions and its
subsidiaries business and products within the meaning of Rule 175
under the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. The actual results may differ materially depending on
a number of risk factors including, but not limited to, the general
economic and business conditions in the PRC, market and customer
acceptance and demand for products, ability to market products,
fluctuations in foreign currency markets, the use of estimates in
the preparation of financial statements, the impact of competitive
products and pricing, the ability to develop and launch new
products on a timely basis, the regulatory environment,
fluctuations in operating results, and various other factors beyond
its control. All forward-looking statements are expressly qualified
in their entirety by this Cautionary Statement and the risks
factors detailed in the Company's reports filed with the Securities
and Exchange Commission. China Solar & Clean Energy Solutions
undertakes no duty to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this release. For more information, please contact: Dan Joseph ICR,
Inc. Tel: +86-21-6122-1077 Bill Zima ICR, Inc. Tel: +1-203-682-8200
DATASOURCE: China Solar & Clean Energy Solutions, Inc. CONTACT:
Dan Joseph, +86-21-6122-1077, or Bill Zima, +1-203-682-8200, both
of ICR, Inc. for China Solar & Clean Energy Solutions, Inc. Web
site: http://www.delisolar.com/
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