China Solar & Clean Energy Solutions, Inc. Reports First Quarter 2010 Financial Results
BEIJING, May 14 /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 first quarter ended March 31, 2010.
Highlights for the first quarter of 2010:
-- Revenue increased 6.6% year-on-year to $3.9 million.
-- Gross margin increased to 29.8% from 24.2% for the same period of 2009.
-- Net loss decreased 73.3% year-on-year to ($0.3) million.
-- Cash and cash equivalents were $3.4 million as of March 31, 2010.
First Quarter 2010 Results
First quarter 2010 revenue was $3.9 million, an increase of $0.2 million, or 6.6%, from $3.7 million for the first quarter of 2009. The increase in sales was primarily attributable to the rise in revenue from our heat pipe related equipments under the management of Tianjin Huaneng Energy Equipment Company ("Tianjin Huaneng"), our subsidiary in the PRC. We expect overall sales revenue for heat pipe related equipments and energy-saving projects to keep growth momentum during the rest of the year.
Gross profit for the first quarter of 2010 increased by 0.3 million, or 31.1%, from $0.9 million for the first quarter of 2009, primarily due to an increase in sales volume and prices of our heat pipe related equipments. Correspondingly, gross margin increased to 29.8% from 24.2% for the first quarter of 2009.
Operating expenses decreased to $1.3 million for the first quarter of 2010, as compared to $1.5 million for the same period of 2009. The decrease in the Company's operating expenses was primarily due to the compression of operation cost.
Operating loss was ($0.2) million for the first quarter 2010, as compared to loss from operations of ($0.7) million a year ago. First quarter 2010 net loss was ($0.3) million, a decrease of $0.9 million, or 73.3%, from ($1.2) million for the same period of 2009. Consequently, net loss per share was ($0.02) for the three months ended March 31, 2010, as compared to ($0.07) for the first quarter of 2009.
Cash and cash equivalents decreased to $3.4 million as of March 31, 2010, compared to $5.0 million as of March 31, 2009. The decrease in cash and cash equivalents is attributable to the increase in other receivables for the first quarter of 2010.
Outlook for 2010
Mr. Deli Du, Chief Executive Officer and President of China Solar, commented, "I'm pleased that our net revenue increased by 6.6% in the first quarter of 2010, and I am especially encouraged by the increase in orders received by Tianjin Huaneng this quarter, which has amounted to $5 million (RMB 34 million) in total, a strong indicator of our capacity for achieving strong revenue growth, reliable profits and cash flows for the year 2010.
"We will continue to focus our resources on China's immense rural areas, which have created substantially higher demand for our solar-related products, and importantly, we are planning to invest in more profitable low-carbon opportunities and effectively leverage our partnerships with leading clean energy institutions in new energy sector to further facilitate our business transition from manufacturer to solutions provider.
"Moreover, our nationwide distribution channels in China and our strong government relationships continue to be our competitive advantage in acquiring additional market share in the rapidly growing new energy market in China. China Solar is well positioned to capture the many attractive opportunities both in China and abroad to explore unique business model and pioneering solutions for the best interests of our supportive shareholders," concluded Mr. Du.
About China Solar & Clean Energy Solutions, Inc.
China Solar & Clean Energy Solutions, Inc. operates through its PRC subsidiaries including Bazhou Deli Solar Energy Heating Co. Ltd.), Beijing Deli Solar Technology Development Co., Ltd. and Tianjin Huaneng Energy Equipment Company. The Company manufactures and distributes solar water heater and space heating devices for residential customers, provides energy-saving solutions for real estate developers and tailor-made solutions for utilization of industrial waste heat for industrial customers in the PRC. For more information, please visit http://www.delienergy.com .
Cautionary Statement Regarding Forward Looking Information
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:
China Solar & Clean Energy Solutions, Inc.
Echo Xia
Investor Relations
Tel: +86-10-6386-0500
Email: [email protected]
CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Currency expressed in United States Dollars (US$), except
for number of shares)
Three months ended March 31,
2010 2009
(restated)
Revenue, net $3,896,414 $3,653,794
Cost of revenue 2,735,004 2,767,980
Gross profit 1,161,410 885,814
Operating expenses:
Depreciation and amortization 122,513 88,621
Selling and distribution 627,069 559,485
General and administrative 596,661 899,626
Total operating expenses 1,346,243 1,547,732
Income(Loss) from operations (184,833) (661,918)
Other income (expenses):
Other income(expenses) (104) 27,847
Interest income 628 5
Interest expense (72,175) (47,159)
Total other income (expenses) (71,651) (19,307)
Income(Loss) From Continuing
Operations Before Income Taxes (256,484) (681,225)
Income tax expense 66,177 25,603
Income(Loss) From Continuing
Operations (322,661) (706,828)
Income(Loss) From Discontinued
Operation (net of tax) -- (512,390)
Net Income(Loss) (322,661) (1,219,218)
Less: Net Income Attributable To Non-
controlling Interest 4,999 10,006
Net Income(Loss) Attributable To
China Solar Shareholders $(327,660) $(1,229,224)
Basic Earning Per Share
Continuing operations $(0.02) $(0.04)
Discontinued operation -- (0.03)
$(0.02) $(0.07)
Weighted average shares outstanding -
basic and diluted 15,815,125 16,125,984
CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Currency expressed in United States Dollars (US$),
except for number of shares)
March 31, 2010 December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents $3,438,258 $4,980,717
Accounts receivable, net 6,448,108 8,067,944
Inventories 6,416,927 4,547,170
Other receivables and prepayments 3,151,989 1,733,695
Deferred tax assets 588,016 588,016
Total current assets 20,043,298 19,917,542
Property and equipment, net 13,709,943 13,775,554
Goodwill 1,967,545 1,967,153
Land use rights 1,583,578 1,592,140
Investment in Trueframe International
Limited 3,812,972 3,812,806
TOTAL ASSETS $41,117,336 $41,065,195
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $1,979,026 $1,601,002
Taxes payable 998,937 1,278,974
Other payables and accrued
liabilities 10,211,109 9,977,178
Loan payable-employee 1,304,799 1,266,747
Total current liabilities 14,493,871 14,123,901
Long-term liabilities:
Deferred tax liabilities -- --
Long-term liabilities 156,410 156,410
Total liabilities 14,650,281 14,280,311
Stockholders' equity
Common stock, $0.001 par value,
66,666,667 shares authorized,
15,233,652 and 15,233,652 shares
issued and outstanding, respectively 15,233 15,233
Additional paid-in capital 22,611,909 22,611,909
Accumulated other comprehensive
income 697,848 693,016
Retained earnings 2,772,634 3,100,294
Profit earning reserves -- --
Total stockholders' equity-China
Solar 26,097,624 26,420,452
Non-controlling interest in
subsidiary 369,431 364,432
Total Stockholder's Equity 26,467,055 26,784,884
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $41,117,336 $41,065,195
CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars (US$))
(Unaudited)
Three months ended March 31,
2010 2009
Cash flows from operating activities:
Net cash provided by operating
activities $(1,433,190) $(366,734)
Net effect of discontinued operation (462,855)
(1,433,190) (829,589)
Cash flows from investing activities:
Purchase of property, plant and
equipment (110,255) (185,122)
Net effect of discontinued operation (95,086)
Net cash provided by investing
activities (110,255) (280,208)
Effect of exchange rate on cash 986 66,643
NET CHANGE IN CASH AND CASH
EQUIVALENTS (1,542,459) (1,043,154)
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 4,980,717 2,404,996
CASH AND CASH EQUIVALENTS, END OF
PERIOD $3,438,258 $1,361,842
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash paid for income taxes $95,658 $63,014
Cash paid for interest expense $72,535 $47,159
SOURCE China Solar & Clean Energy Solutions, Inc.
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