We design and provide integrated renewable energy solutions for industrial clients and real estate developers in China. We manufacture and distribute solar water heaters, biomass stove, spacing heating devices along with industrial waste heat recovery systems, including hot tube heat exchanger, high temperature hot air furnace, heat pipe evaporator, dust removal and desulfurization system and constant pressure hot water boiler. Our business is conducted through our wholly-owned PRC-based operation subsidiaries, Tianjin Huaneng, Deli Solar (Beijing) and Deli Solar (Bazhou).
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.
Mutual Fund Ownership
5% Ownership
| |
| Holder Name | Shs Held | $ Market Value | %Out | Fully Diluted Shs | Rpt Date |
| Du (Deli) | 5,186,225 | 1,763,317 | 34.0 | 5,186,225 | 12-31-09 |
| Ardsley Partners | 1,666,500 | 599,940 | 10.9 | 1,666,500 | 04-13-09 |
- *Category Headings:
- Shs Held - shares held at report date
- Shs Chg - position change within reporting period
- %Chg - % change
- $Chg - market value of the position change
- %Out - % of shares outstanding
- %Port - % Portfolio
- Rpt Date - report date
The above is taken out of the small O/S of 15,815,125 shares
Patents
Tianjin Huaneng had obtained the following patents in the PRC for its unique solar energy selective absorbing coat and manufacturing technology:
| Authorized Scope | | Valid Term | | Certificate Number |
| Cold water recovery system in solar heating | | 2015 | | ZL200620016815X |
| Recycle Heating Product in different temperature system | | n/a | | Application obtained 7/4/09 UPDATE |
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 | |
