-- Revenue Increases 74% to $22 Million -- BEIJING, Nov. 18
/PRNewswire-FirstCall/ -- China Solar & Clean Energy, Inc. (OTC
Bulletin Board: CSOL; "CSOL"), 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 its financial results for the quarter ended September 30,
2008. Revenue increased by approximately $9.3 million, or 74%, to
$21.9 million for the fiscal quarter ended September 30, 2008, from
$12.6 million in the same period in 2007. All of the Company's
business segments contributed to the growth. Revenue from solar
heater and boiler products increased 28% to approximately $11.3
million for the third quarter of 2008 as compared to $8.8 million
for the same period last year. Heat-pipe product revenue was $6.0
million for the third quarter of 2008, an increase of 58% from $2.2
million in the prior year period. Relative to energy saving
projects, as the acquisition of Shenzhen Pengsangpu Solar
Industrial Products (SZPSP) was completed on April 1, 2008 the
Company did not record any revenue in this business segment in
2007. For the third quarter of 2008 revenue from energy saving
projects was $4.6 million. For the nine months ended September 30,
2008, sales revenue increased 95% to $48.8 million, compared to
$25.0 million in the prior year period. In addition to the
acquisition of Shenzhen Pengsangpu, the increase in revenue is
attributable to the continued increase in demand for the Company's
products. Gross profit increased by approximately $2.3 million, or
91%, to $4.9 million for the third quarter of 2008 from $2.6
million for the same period in 2007. Gross profit as a percentage
of revenue was 22.2% for the third quarter of 2008, an increase of
200 basis points from 20.2% in the same period in 2007. The
increase in gross margin was largely a result of increasing margins
for heat-pipe products as well as the increase in overall heat-pipe
revenue. For the nine-month period, gross profit increased 125% to
$11.8 million, compared to $5.2 million in the prior year period.
Operating expenses increased 57% from $1.8 million in the third
quarter of 2007 to $2.8 million in 2008. Operating expenses as a
percentage of sales decreased to 12.7% as compared to 14.0% in the
prior year period. For the nine-month period, operating expenses
increased 90% to $6.4 million as compared to $3.4 million in the
prior year period. While the increase in operating expenses was the
result of a general increase in the Company's business level, the
decrease in operating expenses as a percentage of sales was a
result of economies of scale resulting from the Company's growth.
Operating Income increased 167% to $2.1 million for third quarter
of 2008 from $0.8 million in the same period in 2007. As a
percentage of sales, operating income was 9.5% as compared to 6.2%
in the prior year period. For the nine-month period, operating
income increased 190% to $5.3 million as compared to $1.8 million
in the prior year period. The increase in operating margin was a
result of the improvement in gross margin and decrease in operating
expenses as a percentage of sales. Net income for the three months
ended September 30, 2008 was $1.6 million, an increase of 228% from
$0.5 million in the prior year period. For the third quarter of
2008 earnings available to common shareholders on a fully diluted
basis was $0.11 as compared to $0.06 in the prior year period, an
increase of 83%. For the nine months ended September 30, 2008, net
income increased 120% to $3.1 million as compared to $1.4 million
in the prior year period. Earnings available to common shareholders
on a fully diluted basis increased from $0.06 to $0.23 per share,
an increase of 283%. "The third quarter of 2008 was another highly
successful quarter for China Solar & Clean Energy Solutions,"
stated Mr. Deli Du, Chief Executive Officer of China Solar &
Clean Energy Solutions. "We recorded excellent growth in both solar
heater and boiler products and heat-pipe products and saw our most
recently acquired subsidiary, Shenzhen Pengsangpu, have an
excellent quarter as well. Furthermore, we experienced margin
improvement at all levels, with gross margins increasing by 2% and
operating expenses as a percentage of sales decreasing by more than
1%. The end result of the growth and the margin improvement was a
more than 3-fold increase in net income and an 83% increase in
diluted earnings per share. We believe this quarter is further
evidence that our strategy of acquiring innovative, competitive
alternative energy solutions companies at reasonable prices and
enhancing their performance via improvements in distribution,
marketing, and general management is an excellent way by which to
build a highly successful company that benefits from one of today's
most important global trends-the need to find new sources of
energy." 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. CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS Currency expressed in United
States Dollars ("US$"), except for number of shares September 30,
December 31, 2008 2007 ASSETS (Unaudited) (Note 1) Current assets:
Cash and cash equivalents $ 4,647,387 $ 5,466,637 Accounts
receivable, net 8,971,587 7,453,009 Inventories 6,746,185 3,875,658
Other receivables and prepayments 6,353,350 1,637,948 Total current
assets 26,718,510 18,433,252 Plant and equipment, net 12,903,938
8,819,216 Goodwill 4,705,591 1,789,324 Intangible assets, net
2,450,084 1,597,921 Customer relationships, net 1,045,000 --
Intellectual property - unpatented technology, net 893,000 -- TOTAL
ASSETS $ 48,716,122 $ 30,639,713 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable, trade $ 1,875,042 $
2,111,028 Income tax payables 1,538,863 1,108,433 Other payables
and accrued liabilities 8,021,159 8,552,452 Total current
liabilities 11,435,064 11,771,913 Long-term liabilities Deferred
tax liabilities 875,640 -- Minority interests 1,960,344 935,825
Stockholders' equity: Convertible preferred stock: par value
$0.001, 25,000,000 shares authorized, 573,566 (unaudited) and
1,774,194 shares issued and outstanding, respectively $ 574 $ 1,774
Common stock, $0.001 par value, 66,666,667 shares authorized,
13,599,450 (unaudited) and 6,205,690 shares issued and outstanding,
respectively 13,599 6,205 Additional paid-in capital 22,303,913
9,260,607 Accumulated other comprehensive income 1,472,805
1,134,270 Retained earnings 10,654,183 7,529,119 Total
stockholders' equity 34,445,074 17,931,975 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 48,716,122 $ 30,639,713 CHINA SOLAR &
CLEAN ENERGY SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS Currency expressed in United States Dollars ("US$"),
except for number of shares (Unaudited) Three months ended Nine
months ended September 30, September 30, 2008 2007 2008 2007
Revenue, net $21,916,642 $12,629,636 $48,846,916 $25,043,660 Cost
of revenue 17,050,868 10,078,609 37,069,100 19,817,653 Gross profit
4,865,774 2,551,027 11,777,816 5,226,007 Operation Expenses
Depreciation and amortization $183,216 $82,731 $464,599 $153,697
Selling and distribution 1,440,357 583,166 3,060,961 864,698
General and administrative 719,601 532,137 1,602,809 987,093
Advertising 191,615 458,652 640,645 1,118,745 Salaries and benefit
242,813 111,656 667,964 260,649 Total operating expenses 2,777,602
1,768,342 6,436,978 3,384,882 Other income (expenses): Other income
210,275 -- 277,106 -- Interest income -- -- -- -- Other expense
(42,662) -- (86,291) -- Interest expense (79,379) (31,845)
(223,075) (30,207) Total other (expense) income 88,234 (31,845)
(32,259) (30,207) Income before income taxes 2,176,406 750,840
5,308,578 1,810,918 Income tax expenses 467,336 189,770 1,254,614
327,747 Minority interest 69,869 61,996 928,900 61,996 NET INCOME
$1,639,201 $499,074 $3,125,064 $1,421,175 Computation of income
available to common stockholders: Net Income 1,639,201 499,074
3,125,064 1,421,175 Preferred stock beneficial conversion -- -- --
(975,807) NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $1,639,201
$499,074 $3,125,064 $445,368 Net income (loss) per share - basic
$0.12 $0.08 $0.27 $0.07 Net income (loss) per share - diluted $0.11
$0.06 $0.23 $0.06 Weighted average shares outstanding - basic
13,586,827 6,205,290 11,651,656 6,205,290 Weighted average shares
outstanding - diluted 15,173,016 8,310,856 13,800,196 7,039,341 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, Inc. CONTACT: Dan
Joseph, +86-21-6122-1077; Bill Zima, +1-203-682-8200, both of ICR,
Inc. Web Site: http://www.delisolar.com/
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