In the news release, "China Solar
& Clean Energy Solutions, Inc. Reports 2009 Financial Results"
issued today by China Solar &
Clean Energy Solutions, Inc. (OTC Bulletin Board: CSOL) over PR
Newswire Asia, we are advised by the Company that, in the first
sentence of the second paragraph in the "Full Year 2009 Financial
Results" section, EPS should be "$0.07" instead of "$0.06" and net loss should be "$4.7 million" instead of "$5.5 million" as originally issued inadvertently.
In that sentence, please also disregard the statement about "an
increase of $6.6 million". Full
correct release follows:
China Solar & Clean Energy
Solutions, Inc. Reports 2009 Financial Results
BEIJING, April 15 /PRNewswire-Asia/ -- China Solar & Clean Energy Solutions, Inc.
(Formerly known as "Deli Solar (USA), Inc.") (OTC Bulletin Board: CSOL)
("China Solar"), a manufacturer and distributor of solar water
heaters, space heating devices and provider of renewable energy
solutions in the People's Republic of
China ("PRC"), today reported its financial results for the
full year ended December 31,
2009.
Full Year 2009 Financial Highlights:
-- Net income was $1.1 million and diluted EPS was $0.07, as compared
to a net loss of $4.7 million in 2008;
-- Total net revenue was $26 million, a decrease of 37% year-on-year;
-- Consolidated gross profit margin was 28%, as compared to 17% in 2008;
-- Cash and cash equivalents were $5 million as of December 31, 2009
Full Year 2009 Financial Results:
Sales revenue was $26 million for
the full year ended December 31,
2009, as compared to $42
million for 2008, a decrease of $15
million or 37% year-on- year. The decrease in the sales
revenue is primarily due to the disposal of Shenzhen Pengsangpu
Solar Industrial Products Corporation ("SZPSP") and continuous
decrease in the sales of single solar products such as solar heater
and biomass stove under the management of Deli Solar (Bazhou).
Sales revenue for single solar products for 2009 was $5.6 milion, as compared to $26 million for 2008, a decrease of $21 million or 79.1%. But the sales for
industrial energy-saving projects in Tianjin Huaneng remain stable
and healthy for the whole year. The sales revenue for industrial
waste heat recovery systems for the year of 2009 was $20 million, as compared to 15 million for the
previous year, an increase of $5.6
million or 37.7%.
Net income was $1.1 million for
the full year ended December 31,
2009, with diluted earnings per share (EPS) at $0.07, compared to $4.7
million of net loss for the year of 2008. The turnaround
from net loss was primarily due to the cash collected after the
disposal of SZPSP, the increase in profitability of Tianjin Huaneng
and the deduction of the liquidity penalty.
Cash and cash equivalents increased to $5
million as of December 31,
2009, compared to $1.8 million
as of December 31, 2008, primarily as
a result of the cash collected after the disposal of SZPSP.
Operating expenses for 2009 were $6.6
million, as compared to $8.5
million for 2008, a decrease of $1.9
million or 22.5% year-on-year. The overall decrease in
operating expenses was primarily due to cutting down all kinds of
expenses as a result of the decrease in sales of single solar
products.
Management Commentary
Mr. Deli Du, Chief Executive Officer and President of
China Solar, commented, "I am very
glad to see that we regain profitability in the year of 2009 thanks
to strong sales growth of the industrial energy-saving projects
under the management of Tianjin Huaneng and the disposal of the
loss-making business with SZPSP,'' said Mr. Du, ''Our ongoing
strategy of transition from a single solar product manufacturer to
a renewable energy solutions provider for industrial and
real-estate projects has well positioned China Solar to capitalize on the more profitable
opportunities in the burgeoning Chinese renewable energy
market.''
Looking ahead, ''we will continue to mobilize our resources on
the more profitable business for industrial clients and to maximize
the stock value for our shareholders,'' concluded Mr. Du.
About China Solar & Clean
Energy Solutions, Inc.
China Solar & Clean Energy
Solutions, Inc. is a provider of integrated clean technology and
renewable energy solutions in the
People's Republic of China. The Company sells and
distributes hot water and space heating devices along with waste
heat recovery systems via its subsidiaries including Bazhou Deli
Solar Energy Heating Co. Ltd. ("Deli Solar (Bazhou)"), Beijing Deli
Solar Technology Development Co., Ltd. and Tianjin Huaneng Group.
For more information, please visit http://www.delienergy.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 under the "safe-harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
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.
CONSOLIDATED BALANCE SHEETS
As of December 31,
2009 2008
(Restated)
ASSETS
Current assets:
Cash and cash equivalents $4,980,717 $1,820,882
Accounts receivable, net 8,067,944 5,445,036
Inventories 4,547,170 6,492,830
Other receivables and prepayments 1,733,695 5,978,403
Deferred tax assets 588,016 --
Total current assets 19,917,542 19,737,151
Property and equipment, net 13,775,554 13,738,880
Goodwill 1,967,153 2,340,512
Land use rights 1,592,140 1,709,184
Investment in Trueframe International
Limited 3,812,806 --
Assets of discontinued operations -- 8,972,481
TOTAL ASSETS $41,065,195 $46,498,208
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $1,601,002 $1,148,428
Taxes payable 1,278,974 1,405,057
Other payables and accrued
liabilities 9,977,178 9,998,227
Loan payable-employee 1,266,747 1,575,454
Total current liabilities 14,123,901 14,127,166
Long-term liabilities:
Deferred tax liabilities -- 15,779
Long-term liabilities 156,410 286,483
Liabilities of discontinued
operations -- 4,182,671
Total long-term liabilities 156,410 4,484,933
Stockholders' equity
Convertible preferred stock: par
value $0.001, 25,000,000 shares
authorized, none and 373,566 shares
issued and outstanding, respectively -- 373
Common stock, $0.001 par value,
66,666,667 shares authorized,
15,233,652 and 13,799,450 shares
issued and outstanding, respectively 15,233 13,799
Additional paid-in capital 22,611,909 23,073,258
Accumulated other comprehensive
income 693,016 1,615,082
Retained earnings 3,100,294 2,025,949
Profit earning reserves -- 963,106
Total stockholders' equity-China
Solar 26,420,452 27,691,567
Non-controlling interest in
subsidiary 364,432 194,542
Total Stockholder's Equity 26,784,884 27,886,109
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $41,065,195 $46,498,208
CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Years ended December 31,
2009 2008
(Restated)
Revenue, net $26,315,671 $41,516,053
Cost of revenue 18,862,952 34,537,361
Gross profit 7,452,719 6,978,692
Operating expenses:
Depreciation and amortization 383,531 1,172,254
Selling and distribution 2,410,181 3,926,931
General and administrative 3,832,979 3,447,906
Total operating expenses 6,626,691 8,547,091
Income(Loss) from operations 826,028 (1,568,399)
Other income (expenses):
Other income(expenses) 717,750 (350,204)
Interest income 4,613 262,233
Impairment expense -- (3,012,488)
Interest expense (218,882) (226,528)
Total other income (expenses) 503,481 (3,326,987)
Income(Loss) From Continuing
Operations Before Income Taxes 1,329,509 (4,895,386)
Income tax expense 266,168 96,167
Income(Loss) From Continuing
Operations 1,063,341 (4,991,553)
Income(Loss) From Discontinued
Operation (net of tax) (512,390) 307,276
Gain On Sale Of Discontinued
Operation (net of tax) 652,753 --
Net Income(Loss) 1,203,704 (4,684,277)
Less: Net Income Attributable To Non-
controlling Interest 129,359 818,893
Net Income(Loss) Attributable To
China Solar Shareholders $1,074,345 $(5,503,170)
Basic Earning Per Share
Continuing operations $0.07 $(0.48)
Discontinued operation (0.04) 0.03
Gain on sale of discontinued
operation 0.05 --
$0.08 $(0.45)
Diluted Earning Per Share
Continued operation $0.07 $(0.48)
Discontinued operation (0.04) 0.03
Gain on sale of discontinued
operation 0.05 --
$0.08 $(0.45)
Weighted average shares outstanding -
basic and diluted 15,815,125 12,158,482
CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31,
2009 2008
(Restated)
Cash flows from operating activities:
Net income(loss) $1,074,345 $(5,503,170)
Loss(income) from discontinued
operation 512,390 (307,276)
Income(Loss) from continuing
operations 1,586,735 (5,810,446)
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 722,561 642,310
Impairment of assets -- 2,702,487
Provision for allowance on accounts
receivable 708,144 978,006
Provision for inventory writes downs 139,854 246,408
Gain on sale of discontinued
operation (652,753) --
Noncontrolling interest in income of
subsidiary 129,359 818,893
Changes in operating assets and
liabilities:
Accounts receivable, trade (3,331,052) 1,199,307
Inventories 1,811,220 (3,101,796)
Other receivables and prepayments 431,902 (5,067,630)
Accounts payable, trade 452,574 3,190,321
Income tax payable (126,083) 296,624
Other payables and accrued
liabilities (218,021) (2,197,839)
Net cash provided by(used in)
operating activities 1,654,440 (6,103,355)
Net cash (used in)provided by
discontinued operation (679,068) 882,128
Net cash provided by(used
in)operating activities 975,372 (5,221,227)
Cash flows from investing activities:
Proceeds from disposal of subsidiary 2,758,277 --
Acquisition of a subsidiary, net of
cash acquired (130,298) (662,491)
Purchase of intangible assets -- (1,123,639)
Purchase of property, plant and
equipment (484,096) (6,966,354)
Net cash provided by(used in)
investing activities 2,143,883 (8,752,484)
Net cash used in discontinued
operation -- (255,512)
Net cash provided by(used
in)investing activities 2,143,883 (9,007,996)
Cash flows from financing activities:
Proceeds from warrants exercised -- 107,500
Capital contribution received from
shareholders -- 9,995,156
Capital contribution from non-
controlling shareholder 51,240 --
Net cash provided by financing
activities 51,240 10,102,656
Foreign currency translation
adjustment (10,660) 480,812
NET CHANGE IN CASH AND CASH
EQUIVALENTS 3,159,835 (3,645,755)
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR 1,820,882 5,466,637
CASH AND CASH EQUIVALENTS, END OF
YEAR $4,980,717 $1,820,882
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash paid for income taxes $381,563 $538,332
Cash paid for interest expense $129,012 $302,961
SUPPLEMENTAL DISCLOSURE OF NONCASH
INVESTING AND FINANCING TRANSACTIONS
Warrant shares granted for offering
costs $-- $541,695
Issuance of common stock for
acquisitions of SZPSP $-- $2,839,458
Issuance of warrants for the
acquisitions of SZPSP $-- $92,193
Preferred shares converted to common
shares $373 $1,401
For more information, please contact:
China Solar & Clean Energy Solutions, Inc.
Peggy Yuan
Director, Investor Relations
Tel: +86-10-6386-0500
Email: yuan.peggie@gmail.com
China Solar & Clean Energy
Solutions, Inc.
------
China Solar & Clean Energy Solutions, Inc. Reports 2009
Financial Results
BEIJING, April 15 /PRNewswire-Asia/ -- China Solar & Clean Energy Solutions, Inc.
(Formerly known as "Deli Solar (USA), Inc.") (OTC Bulletin Board: CSOL)
("China Solar"), a manufacturer and distributor of solar water
heaters, space heating devices and provider of renewable energy
solutions in the People's Republic of
China ("PRC"), today reported its financial results for the
full year ended December 31,
2009.
Full Year 2009 Financial Highlights:
-- Net income was $1.1 million and diluted EPS was $0.07, as compared
to a net loss of $4.7 million in 2008;
-- Total net revenue was $26 million, a decrease of 37% year-on-year;
-- Consolidated gross profit margin was 28%, as compared to 17% in 2008;
-- Cash and cash equivalents were $5 million as of December 31, 2009
Full Year 2009 Financial Results:
Sales revenue was $26 million for
the full year ended December 31,
2009, as compared to $42
million for 2008, a decrease of $15
million or 37% year-on- year. The decrease in the sales
revenue is primarily due to the disposal of Shenzhen Pengsangpu
Solar Industrial Products Corporation ("SZPSP") and continuous
decrease in the sales of single solar products such as solar heater
and biomass stove under the management of Deli Solar (Bazhou).
Sales revenue for single solar products for 2009 was $5.6 milion, as compared to $26 million for 2008, a decrease of $21 million or 79.1%. But the sales for
industrial energy-saving projects in Tianjin Huaneng remain stable
and healthy for the whole year. The sales revenue for industrial
waste heat recovery systems for the year of 2009 was $20 million, as compared to 15 million for the
previous year, an increase of $5.6
million or 37.7%.
Net income was $1.1 million for
the full year ended December 31,
2009, with diluted earnings per share (EPS) at $0.06, compared to $5.5
million of net loss for the year of 2008, an increase of
$6.6 million. The turnaround from net
loss was primarily due to the cash collected after the disposal of
SZPSP, the increase in profitability of Tianjin Huaneng and the
deduction of the liquidity penalty.
Cash and cash equivalents increased to $5
million as of December 31,
2009, compared to $1.8 million
as of December 31, 2008, primarily as
a result of the cash collected after the disposal of SZPSP.
Operating expenses for 2009 were $6.6
million, as compared to $8.5
million for 2008, a decrease of $1.9
million or 22.5% year-on-year. The overall decrease in
operating expenses was primarily due to cutting down all kinds of
expenses as a result of the decrease in sales of single solar
products.
Management Commentary
Mr. Deli Du, Chief Executive Officer and President of
China Solar, commented, "I am very
glad to see that we regain profitability in the year of 2009 thanks
to strong sales growth of the industrial energy-saving projects
under the management of Tianjin Huaneng and the disposal of the
loss-making business with SZPSP," said Mr. Du, "Our ongoing
strategy of transition from a single solar product manufacturer to
a renewable energy solutions provider for industrial and
real-estate projects has well positioned China Solar to capitalize on the more profitable
opportunities in the burgeoning Chinese renewable energy
market."
Looking ahead, "we will continue to mobilize our resources on
the more profitable business for industrial clients and to maximize
the stock value for our shareholders," concluded Mr. Du.
About China Solar & Clean
Energy Solutions, Inc.
China Solar & Clean Energy
Solutions, Inc. is a provider of integrated clean technology and
renewable energy solutions in the
People's Republic of China. The Company sells and
distributes hot water and space heating devices along with waste
heat recovery systems via its subsidiaries including Bazhou Deli
Solar Energy Heating Co. Ltd. ("Deli Solar (Bazhou)"), Beijing Deli
Solar Technology Development Co., Ltd. and Tianjin Huaneng Group.
For more information, please visit http://www.delienergy.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 under the "safe-harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
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.
CONSOLIDATED BALANCE SHEETS
As of December 31,
2009 2008
(Restated)
ASSETS
Current assets:
Cash and cash equivalents $4,980,717 $1,820,882
Accounts receivable, net 8,067,944 5,445,036
Inventories 4,547,170 6,492,830
Other receivables and prepayments 1,733,695 5,978,403
Deferred tax assets 588,016 --
Total current assets 19,917,542 19,737,151
Property and equipment, net 13,775,554 13,738,880
Goodwill 1,967,153 2,340,512
Land use rights 1,592,140 1,709,184
Investment in Trueframe International
Limited 3,812,806 --
Assets of discontinued operations -- 8,972,481
TOTAL ASSETS $41,065,195 $46,498,208
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $1,601,002 $1,148,428
Taxes payable 1,278,974 1,405,057
Other payables and accrued
liabilities 9,977,178 9,998,227
Loan payable-employee 1,266,747 1,575,454
Total current liabilities 14,123,901 14,127,166
Long-term liabilities:
Deferred tax liabilities -- 15,779
Long-term liabilities 156,410 286,483
Liabilities of discontinued
operations -- 4,182,671
Total long-term liabilities 156,410 4,484,933
Stockholders' equity
Convertible preferred stock: par
value $0.001, 25,000,000 shares
authorized, none and 373,566 shares
issued and outstanding, respectively -- 373
Common stock, $0.001 par value,
66,666,667 shares authorized,
15,233,652 and 13,799,450 shares
issued and outstanding, respectively 15,233 13,799
Additional paid-in capital 22,611,909 23,073,258
Accumulated other comprehensive
income 693,016 1,615,082
Retained earnings 3,100,294 2,025,949
Profit earning reserves -- 963,106
Total stockholders' equity-China
Solar 26,420,452 27,691,567
Non-controlling interest in
subsidiary 364,432 194,542
Total Stockholder's Equity 26,784,884 27,886,109
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $41,065,195 $46,498,208
CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Years ended December 31,
2009 2008
(Restated)
Revenue, net $26,315,671 $41,516,053
Cost of revenue 18,862,952 34,537,361
Gross profit 7,452,719 6,978,692
Operating expenses:
Depreciation and amortization 383,531 1,172,254
Selling and distribution 2,410,181 3,926,931
General and administrative 3,832,979 3,447,906
Total operating expenses 6,626,691 8,547,091
Income(Loss) from operations 826,028 (1,568,399)
Other income (expenses):
Other income(expenses) 717,750 (350,204)
Interest income 4,613 262,233
Impairment expense -- (3,012,488)
Interest expense (218,882) (226,528)
Total other income (expenses) 503,481 (3,326,987)
Income(Loss) From Continuing
Operations Before Income Taxes 1,329,509 (4,895,386)
Income tax expense 266,168 96,167
Income(Loss) From Continuing
Operations 1,063,341 (4,991,553)
Income(Loss) From Discontinued
Operation (net of tax) (512,390) 307,276
Gain On Sale Of Discontinued
Operation (net of tax) 652,753 --
Net Income(Loss) 1,203,704 (4,684,277)
Less: Net Income Attributable To Non-
controlling Interest 129,359 818,893
Net Income(Loss) Attributable To
China Solar Shareholders $1,074,345 $(5,503,170)
Basic Earning Per Share
Continuing operations $0.07 $(0.48)
Discontinued operation (0.04) 0.03
Gain on sale of discontinued
operation 0.05 --
$0.08 $(0.45)
Diluted Earning Per Share
Continued operation $0.07 $(0.48)
Discontinued operation (0.04) 0.03
Gain on sale of discontinued
operation 0.05 --
$0.08 $(0.45)
Weighted average shares outstanding -
basic and diluted 15,815,125 12,158,482
CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31,
2009 2008
(Restated)
Cash flows from operating activities:
Net income(loss) $1,074,345 $(5,503,170)
Loss(income) from discontinued
operation 512,390 (307,276)
Income(Loss) from continuing
operations 1,586,735 (5,810,446)
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 722,561 642,310
Impairment of assets -- 2,702,487
Provision for allowance on accounts
receivable 708,144 978,006
Provision for inventory writes downs 139,854 246,408
Gain on sale of discontinued
operation (652,753) --
Noncontrolling interest in income of
subsidiary 129,359 818,893
Changes in operating assets and
liabilities:
Accounts receivable, trade (3,331,052) 1,199,307
Inventories 1,811,220 (3,101,796)
Other receivables and prepayments 431,902 (5,067,630)
Accounts payable, trade 452,574 3,190,321
Income tax payable (126,083) 296,624
Other payables and accrued
liabilities (218,021) (2,197,839)
Net cash provided by(used in)
operating activities 1,654,440 (6,103,355)
Net cash (used in)provided by
discontinued operation (679,068) 882,128
Net cash provided by(used
in)operating activities 975,372 (5,221,227)
Cash flows from investing activities:
Proceeds from disposal of subsidiary 2,758,277 --
Acquisition of a subsidiary, net of
cash acquired (130,298) (662,491)
Purchase of intangible assets -- (1,123,639)
Purchase of property, plant and
equipment (484,096) (6,966,354)
Net cash provided by(used in)
investing activities 2,143,883 (8,752,484)
Net cash used in discontinued
operation -- (255,512)
Net cash provided by(used
in)investing activities 2,143,883 (9,007,996)
Cash flows from financing activities:
Proceeds from warrants exercised -- 107,500
Capital contribution received from
shareholders -- 9,995,156
Capital contribution from non-
controlling shareholder 51,240 --
Net cash provided by financing
activities 51,240 10,102,656
Foreign currency translation
adjustment (10,660) 480,812
NET CHANGE IN CASH AND CASH
EQUIVALENTS 3,159,835 (3,645,755)
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR 1,820,882 5,466,637
CASH AND CASH EQUIVALENTS, END OF
YEAR $4,980,717 $1,820,882
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash paid for income taxes $381,563 $538,332
Cash paid for interest expense $129,012 $302,961
SUPPLEMENTAL DISCLOSURE OF NONCASH
INVESTING AND FINANCING TRANSACTIONS
Warrant shares granted for offering
costs $-- $541,695
Issuance of common stock for
acquisitions of SZPSP $-- $2,839,458
Issuance of warrants for the
acquisitions of SZPSP $-- $92,193
Preferred shares converted to common
shares $373 $1,401
For more information, please contact:
China Solar & Clean Energy Solutions, Inc.
Peggy Yuan
Director, Investor Relations
Tel: +86-10-6386-0500
Email: yuan.peggie@gmail.com
SOURCE China Solar & Clean
Energy Solutions, Inc.