China Solar & Clean Energy Solutions, Inc. Reports Third Quarter 2009 Financial Results and Announces Strategic Alliance with Japan KOE to Develop CDM Projects

BEIJING, Nov. 13 /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 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 .

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




(Currency expressed in United States Dollars ("US$"), except for number

of shares)

September 30, 2009 December 31, 2008



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


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


EQUITY $38,641,685 $46,568,923


(Currency expressed in United States Dollars ("US$"), except for number of



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


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


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


(Currency expressed in United States Dollars ("US$"))


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


EQUIVALENTS 1,766,482 (819,250)


OF PERIOD 1,820,882 5,466,637


PERIOD $3,587,364 $4,647,387



Cash paid for income taxes $221,970 $441,015

Cash paid for interest expense $118,921 $--



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

Source: China Solar & Clean Energy Solutions, Inc.
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