BEIJING, Aug. 11 /PRNewswire-Asia/ -- China Solar & Clean
Energy Solutions, Inc. (Formerly known as "Deli Solar (USA), Inc.")
(OTC:CSOL) (BULLETIN BOARD: CSOL) ("China Solar"), a premier
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 second quarter ended June 30th, 2009. Second Quarter 2009
Results Second quarter 2009 net revenue was $9.66 million, a
decrease of $6.18 million, or 39%, from $15.84 million for the same
period last year. As the Company shifted its focus to winning
larger energy-saving projects, the sales revenues for the heat-pipe
equipments and energy-saving projects increased by $2.35 million,
or 40.2%, to $8.2 million due to the completion of several large
projects in the quarter; while the sales revenue for solar heaters,
biomass stoves and boiler related products decreased by 85.4% to
$1.46 million due to intensive competition in the market of solar
heaters. Net income was $1.1 million for the three months ended
June 30, 2009, with diluted earnings per share (EPS) of $0.07,
primarily due to the disposal of Shenzhen Pengsangpu Solar
Industrial Products Corporation ("SZPSP") and an increase in the
sales of heat-pipe equipments and energy-saving projects. For the
first quarter of 2009, the net loss was $0.94 million with diluted
loss per share at $(0.07). Cash and cash equivalents increased to
$2.7 million as of June 30, 2009, compared to $1.4 million as of
March 31, 2008. The increase in cash and cash equivalents is
attributable to the increase in sales of heat pipe related
equipments and energy-saving projects and the divestiture of
Shenzhen Pengsangpu Solar Industrial Products Corporation
('SZPSP'), which had been a major drag on profits. Business
Strategy and Outlook Mr. Deli Du, Chief Executive Officer and
President of China Solar, commented, "Our strategy of business
transition from being a product manufacturer and distributor to a
services and solutions provider has shown indicators of success,"
said Mr. Du, "I am satisfied with the improvement of our financial
performance and successive winning bids in large projects by
Tianjin Huaneng. As we decide to focus our resources on more
profitable opportunities and effectively leverage our leading new
energy technology, partnerships with leading clean energy
institutions, extensive industry experience in new energy sector
and nation-wide distribution network, we have discovered greater
synergies across our product and service offerings." "I am also
satisfied with the visible progress in our corporate-wide efforts
to improve our operating efficiency and internal controls to ensure
timely financial reporting and regulatory compliance. We began to
implement a company-wide ERP system as part of our efforts to
standardize accounting practices and to ensure China Solar is fully
in compliance with requirements by the Sarbanes-Oxley Act ("SOX"),
laying a strong foundation for a sustainable growth," said Mr. Du.
Looking ahead, "exciting developments are taking place in the solar
energy market in China, following the government's recent policies
of a series of solar subsidy programs. As one of the first industry
players, we believe our global experience combined with our
existing capabilities and nationwide sales network in China, as
well as our strong government relationships give us a unique
opportunity to gain market share in the rapidly growing Chinese new
energy market. I firmly believe that China Solar will soon achieve
solid revenue growth and profits. We are dedicated to becoming a
strong, profitable and responsible enterprise to serve the best
interests of our shareholders," concluded Mr. Du. About China Solar
& Clean Energy Solutions, Inc. China Solar & Clean Energy
Solutions, Inc. operates through its wholly owned subsidiaries
including Bazhou Deli Solar Energy Heating Co. Ltd. ("Deli Solar
(Bazhou)"), Beijing Deli Solar Technology Development Co., Ltd. and
Tianjin Huaneng Group, all located in the PRC. 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.delisolar.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. CHINA SOLAR & CLEAN ENERGY SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Currency expressed in United
States Dollars ("US$"), except for number of shares) June 30, 2009
December 31, 2008 (Unaudited) ASSETS Current assets: Cash and cash
equivalents $2,659,638 $1,820,882 Accounts receivable, net
8,457,470 5,962,051 Inventories 2,701,654 5,158,153 Other
receivables and prepayments 7,708,106 6,705,578 Total current
assets 21,526,868 19,646,664 Property and equipment, net 14,108,704
13,955,691 Goodwill 1,910,509 2,284,903 Intangible assets, net
1,668,329 1,709,184 Assets of discontinued operations -- 8,972,481
TOTAL ASSETS $39,214,410 $46,568,923 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Accounts payable, trade $1,650,559
$1,148,428 Income tax payable 2,336,230 1,822,867 Other payables
and accrued liabilities 5,149,009 7,296,294 Employee loan 1,378,182
1,474,085 Total current liabilities 10,513,980 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, 14,173,016 (unaudited) and 13,799,450 shares
issued and outstanding, respectively 14,172 13,799 Additional
paid-in capital 22,966,404 22,966,404 Accumulated other
comprehensive loss 816,996 1,615,081 Retained earnings 3,520,184
3,365,788 Profit earning reserves -- 963,106 Less: Treasury stock
(460,288) -- Total stockholders' equity 26,857,468 28,924,551
Minority interests 1,842,962 1,704,248 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $39,214,410 $46,568,923 CHINA SOLAR &
CLEAN ENERGY SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Currency expressed in United States Dollars ("US$"),
except for number of shares) (Unaudited) Three months ended June
30, Six months ended June 30, 2009 2008 2009 2008 Revenue, net
$9,659,248 $15,843,782 $14,775,569 $24,143,858 Cost of revenue
7,787,925 11,896,829 11,729,756 17,741,845 Gross profit 1,871,323
3,946,953 3,045,813 6,402,013 Operation Expenses Depreciation and
amortization 103,028 132,216 191,906 281,383 Selling and
distribution 480,587 1,097,814 1,040,072 1,600,377 General and
administrative 651,166 1,012,727 1,550,535 1,614,380 Total
operating expenses 1,234,781 2,242,757 2,782,513 3,496,140 Income
from operations 636,542 1,704,196 263,300 2,905,873 Other income
(expenses): Other income 6,559 25,741 43,837 66,831 Interest income
2,451 1,638 2,456 1,638 Other expense (41,438) 6,839 (50,869) 6,839
Reversal of reserve for bad debts 127,245 -- 127,245 -- Interest
expense (39,490) (77,975) (86,649) (111,813) Total other (expense)
income 55,327 (43,757) 36,020 (36,505) Income from continued
operation before income taxes 691,869 1,660,439 299,320 2,869,368
Income tax expenses 173,135 343,764 198,738 690,027 Net income from
continued operation including non controlling interest 518,734
1,316,675 100,582 2,179,341 Less: Net income attributable to non
controlling interest 76,543 386,016 86,549 859,031 Net income from
continued operation attributable to common shareholder $442,191
$930,659 $14,033 $1,320,310 Net income (loss) from discontinued
operation net of tax -- 165,555 (512,390) 165,555 Gain on sale of
discontinued operation net of tax 652,753 -- 652,753 -- Net income
1,094,944 1,096,214 154,396 1,485,865 Basic Continued operation
0.03 0.07 0.00 0.12 Discontinued operation 0.00 0.01 (0.04) 0.01
Gain on sale of discontinued operation 0.05 0.00 0.05 0.00 0.08
0.08 0.01 0.13 Diluted Continued operation 0.03 0.06 0.00 0.10
Discontinued operation 0.00 0.01 (0.03) 0.01 Gain on sale of
discontinued operation 0.04 0.00 0.04 0.00 0.07 0.07 0.01 0.11
Weighted average shares outstanding - basic 14,173,016 13,075,468
14,125,984 10,612,185 Weighted average shares outstanding - diluted
16,073,016 15,584,542 16,199,637 13,006,396 CHINA SOLAR & CLEAN
ENERGY SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars ("US$")) (Unaudited)
Six months ended June 30, 2009 2008 Cash flows from operating
activities: Net effect of discontinued operation $(3,245,825)
$453,020 Net cash provided by operating activities 3,249,424
(3,690,958) 3,599 (3,237,938) Cash flows from investing activities:
Acquisition of subsidiaries, net of cash acquired -- (3,916,212)
Disposal subsidiary 439,122 -- Purchase of property, plant and
equipment (231,528) (2,033,562) Net effect of discontinued
operation (8,420) -- Net cash provided by investing activities
199,174 (5,949,774) Cash flows from financing activities: Proceeds
from non-controlling shareholder 51,231 -- Proceeds from private
placement sale of stock -- 9,995,156 Proceeds from warrants
exercised -- 107,500 Net cash provided by financing activities
51,231 10,102,656 Effect of exchange rate on cash (10) 307,592 NET
CHANGE IN CASH AND CASH EQUIVALENTS 253,994 1,222,536 CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD 2,405,644 5,466,637 CASH AND CASH
EQUIVALENTS, END OF PERIOD $2,659,638 $6,689,173 SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION Cash paid for income taxes
$129,318 $199,025 Cash paid for interest expense $39,490 $143,696
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 1.136 For more information, please contact: Peggy Yuan Investor
Relations China Solar & Clean Energy Solutions, Inc. Tel:
+86-10-6386-0500 Email: DATASOURCE: China Solar & Clean Energy
Solutions, Inc. CONTACT: Peggy Yuan, Investor Relations, China
Solar & Clean Energy Solutions, Inc., +86-10-6386-0500, or Web
site: http://www.delisolar.com/
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