BEIJING, Nov. 12 /PRNewswire-Asia/ -- China Solar & Clean
Energy Solutions, Inc. (Formerly known as "Deli Solar (USA), Inc.")
(OTC:CSOL) (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 third
quarter ended September 30th, 2009 and announced the establishment
of strategic alliance with KOE Environmental Consulting, Inc.
(Japan). Third Quarter 2009 Results Net revenue was $5.3 million
for the three months ended September 30, 2009, a decrease of 69.2%
as compared to $17.3 million for the same period last year of 2009.
The decrease in the net 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 in Deli Solar (Bazhou). Sales for
industrial energy-saving projects in Tianjin Huaneng remains robust
in the second and the third quarter of this year, but the
industrial projects usually take three to six months to complete
and the revenue for these projects is expected to be shown on the
financial statements for the fourth quarter of 2009 and the first
quarter of 2010. Net income was $45,646 for the three months ended
September 30, 2009, with diluted earnings per share (EPS) of $0.01.
For the second quarter of 2009, the net income is $1.09 million
with diluted earnings per share of $0.07. For the first quarter of
2009, the net loss was $0.94 million with diluted loss per share at
$(0.07). The turnaround from net loss to net income in the second
and third quarters is primarily due to the disposal of SZPSP, which
had been a major drag on profits for the first quarter of 2009.
Cash and cash equivalents increased to $3.6 million as of September
30, 2009, primarily attributable to the $1.4 million of cash
returned as part of the divestiture of SZPSP during the quarter.
The cash and cash equivalents was $2.7 million as of June 30, 2009.
Operating expenses was $1.2 million, as compared to $2.6 million
for the three months ended September 30, 2008, a decrease of $1.4
million, or 53.8%. The overall decrease in operating expenses was
primarily due to strengthening cost control since the start of
2009. Mr. Deli Du, Chief Executive Officer of China Solar,
commented, "Despite the financial crises, our pipeline for
industrial and real estate energy-saving projects remains healthy,
which is a strong credential of our unparallel capability of
providing solutions properly tailored for the Chinese market. We
are managing our operations well, while controlling costs and
improving our services to international standards," said Mr. Du.
"Our ongoing strategy of a transition from a product manufacturer
and distributor to a renewable energy solutions provider has
positioned China Solar to capitalize on the growth opportunities in
the burgeoning Chinese renewable energy market. I am confident that
China Solar will soon achieve solid business growth to serve the
best interests of our shareholders." Strategic Alliance with KOE
Environmental Consulting (Japan) On November 9, 2009, China Solar
entered into a strategic alliance agreement with KOE Environmental
Consulting Inc. (Japan), a consulting firm which helps Japanese
environmental investment institutions to identify suitable projects
under the Kyoto Protocol's Clean Development Mechanism ("CDM").
Under the terms of the strategic alliance agreement, China Solar
and KOE will work together to identify and develop potential CDM
projects across the industrial and real estate energy saving
projects of China Solar, go through the UNFCCC ("United Nations
Framework Convention on Climate Change") registration process and
trade the Certified Emission Reduction ("CER") and Verified
Emission Reduction ("VER") credits thus generated. "The strategic
alliance will pioneer the development of CDM in one of the world's
most carbon intensive countries," commented Mr. Du. "KOE and China
Solar are ideally placed to jointly pursue the CDM opportunities in
China. I am confident that KOE's strong expertise and extensive
experience in CDM projects will help discover and create value for
China Solar." 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.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 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. For more
information, please contact: China Solar & Clean Energy
Solutions, Inc. Peggy Yuan Director, Investor Relations Tel:
+86-10-6386-0500 Email: CHINA SOLAR & CLEAN ENERGY SOLUTIONS,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Currency expressed in
United States Dollars ("US$"), except for number of shares)
September 30, 2009 December 31, 2008 (Unaudited) ASSETS Current
assets: Cash and cash equivalents $3,587,364 $1,820,882 Accounts
receivable, net 7,512,359 5,962,051 Inventories 2,892,074 5,158,153
Other receivables and prepayments 6,929,358 6,705,578 Total current
assets 20,921,155 19,646,664 Property and equipment, net 14,145,114
13,955,691 Goodwill 1,911,320 2,284,903 Intangible assets, net
1,664,096 1,709,184 Assets of discontinued operations 8,972,481
TOTAL ASSETS $38,641,685 $46,568,923 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable, trade $1,944,999
$1,148,428 Tax payable 1,539,204 1,822,867 Other payables and
accrued liabilities 5,190,508 7,296,294 Employee loan 1,324,879
1,474,085 Total current liabilities 9,999,590 11,741,674 Long-term
liabilities: Deferred tax liabilities 15,779 Liabilities of
discontinued operations 4,182,671 Stockholders' equity Convertible
preferred stock: par value $0.001, 25,000,000 shares authorized,
zero and 373,566 shares issued and outstanding, respectively 373
Common stock, $0.001 par value, 66,666,667 shares authorized,
14,233,652 and 13,799,450 shares issued and outstanding,
respectively 14,233 13,799 Additional paid-in capital 22,506,055
22,966,404 Accumulated other comprehensive loss 696,701 1,615,081
Retained earnings 3,587,603 3,365,788 Profit earning reserves
963,106 Total china solar stockholders' equity 26,804,592
28,924,551 Non-controlling interest in subsidiary 1,837,503
1,704,248 Total equity 28,642,095 30,628,799 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $38,641,685 $46,568,923 CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Currency expressed in United States
Dollars ("US$"), except for number of shares) (Unaudited) Three
months ended September 30, 2009 2008 Revenue, net $5,344,923
$17,349,436 Cost of revenue 4,032,539 13,152,373 Gross profit
1,312,384 4,197,063 Operation Expenses Depreciation and
amortization 69,294 183,216 Selling and distribution 526,874
1,408,844 General and administrative 594,489 983,896 Total
operating expenses 1,190,657 2,575,956 Income from operations
121,727 1,621,107 Other income (expenses): Other income 40,691
210,275 Interest income 664 -- Other expense (3,366) (42,662)
Reversal of reserve for bad debts 3 -- Interest expense (77,792)
(69,192) Total other (expense) income (39,800) 98,421 Income from
continuing operations before income taxes 81,927 1,719,528 Income
tax expense 8,042 458,820 Net income from continuing operation
including non controlling interest 73,885 1,260,708 Net income
(loss) from discontinued operation net of tax -- 448,362 Gain on
sale of discontinued operations net of tax -- Net income 73,885
$1,709,070 Less: Net income attributable to non controlling
interest 28,239 69,869 Net income attributable to controlling
interest $45,646 $1,639,201 Basic Continued operation 0.00 $0.09
Discontinued operation 0.00 $0.03 Gain on sale of discontinued
operation 0.00 $0.00 0.00 0.13 Diluted Continued operation 0.00
$0.08 Discontinued operation 0.00 $0.03 Gain on sale of
discontinued operation 0.00 $0.00 0.00 0.11 Weighted average shares
outstanding - basic 14,652,826 13,586,827 Weighted average shares
outstanding -diluted 16,552,826 15,173,016 CONSOLIDATED STATEMENTS
OF CASH FLOWS (Currency expressed in United States Dollars ("US$"))
(Unaudited) Nine months ended September 30, 2009 2008 Cash flows
from operating activities: Net effect of discontinued operation $
$(76,168) Net cash provided by operating activities 705,573
(2,919,100) Net cash provided by(used in) operating activities
705,573 (2,995,268) Cash flows from investing activities: Proceeds
from non-controlling shareholder (3,916,212) Disposal subsidiary
1,390,593 Purchase of property, plant and equipment (450,019)
(3,269,871) Payment for other intangible assets (852,163) Net
effect of discontinued operation (80,606) Net cash provided by/used
in investing activities 940,575 (8,118,852) Cash flows from
financing activities: Acquisition of an investment 51,532 Proceeds
from private placement sale of stock 9,995,156 Proceeds from
warrants exercised 312,430 Net effect of discontinued operation
(204,930) Net cash provided by financing activities 51,532
10,102,656 Effect of exchange rate on cash and cash equivalents
69,102 192,214 NET CHANGE IN CASH AND CASH EQUIVALENTS 1,766,482
(819,250) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,820,882
5,466,637 CASH AND CASH EQUIVALENTS, END OF PERIOD $3,587,364
$4,647,387 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash
paid for income taxes $221,970 $441,015 Cash paid for interest
expense $118,921 $-- NONCASH INVESTING AND FINANCING TRANSACTIONS:
Issuance of common stock for acquisition of SZPSP 2,839,458
Issuance of warrants for the acquisition of SZPSP 92,193 Preferred
share converted 373,000 1,201 DATASOURCE: China Solar & Clean
Energy Solutions, Inc. CONTACT: China Solar & Clean Energy
Solutions, Inc., Peggy Yuan, Investor Relations, +86-10-6386-0500,
Web site: http://www.delisolar.com/
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