Delaware
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001-34591
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74-2235008
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||
(State or other jurisdiction of
incorporation or organization)
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(Commission File No.)
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(IRS Employee Identification No.)
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99.1
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Press release issued March 29, 2012 relating to December 31, 2011 earnings
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|
99.2
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Press release issued March 26, 2011 relating to the conference call
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Date: March 29, 2012
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Cleantech Solutions International, Inc.
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By:
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/s/ Jianhua Wu
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Jianhua Wu
|
|
Chief Executive Officer
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·
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Revenue from the sale of forged rolled rings exclusively to the wind power industry fell 59.9% to $4.8 million, representing 35.2% of net revenue, compared to $12.1 million, or 53.6% of net revenue, in the comparable period last year.
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·
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Revenue from the sale of forged rolled rings to other industries decreased 34.1% to $3.3 million, or 23.9% of net revenue, compared with $5.0 million, or 22.1% of net revenue for the comparable period of the prior year.
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CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
1,152,607
|
$
|
947,177
|
||||
Restricted cash
|
314,233
|
-
|
||||||
Notes receivable
|
53,420
|
50,593
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
7,087,958
|
8,207,797
|
||||||
Inventories, net of reserve for obsolete inventory
|
4,276,090
|
3,371,128
|
||||||
Advances to suppliers
|
219,347
|
333,923
|
||||||
Prepaid VAT on purchases
|
1,512,213
|
2,759,763
|
||||||
Prepaid expenses and other
|
110,670
|
36,338
|
||||||
Total Current Assets
|
14,726,538
|
15,706,719
|
||||||
PROPERTY AND EQUIPMENT – net
|
64,042,079
|
54,742,993
|
||||||
OTHER ASSETS:
|
||||||||
Land use rights, net
|
3,820,536
|
3,767,159
|
||||||
Total Assets
|
$
|
82,589,153
|
$
|
74,216,871
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Short-term bank loans
|
$
|
2,356,749
|
$
|
1,814,937
|
||||
Bank acceptance notes payable
|
314,233
|
-
|
||||||
Accounts payable
|
4,997,109
|
7,660,768
|
||||||
Accrued expenses
|
771,597
|
526,006
|
||||||
Capital lease obligations- current portion
|
244,747
|
-
|
||||||
VAT and service taxes payable
|
-
|
81,614
|
||||||
Advances from customers
|
1,166,942
|
236,004
|
||||||
Income taxes payable
|
592,202
|
1,331,713
|
||||||
Total Current Liabilities
|
10,443,579
|
11,651,042
|
||||||
OTHER LIABILITIES:
|
||||||||
Capital lease obligations - net of current portion
|
381,235
|
-
|
||||||
Total Liabilities
|
10,824,814
|
11,651,042
|
||||||
STOCKHOLDERS' EQUITY:
|
||||||||
Preferred stock $0.001 par value (30,000,000 shares authorized, all of which were designated
|
||||||||
as series A convertible preferred, 10,995,807 and 16,205,268 shares issued and outstanding
|
||||||||
at December 31, 2011 and 2010, respectively)
|
10,996
|
16,205
|
||||||
Common stock ($0.001 par value; 50,000,000 shares authorized;
|
||||||||
2,101,849 and 1,875,113 shares issued and outstanding
|
||||||||
at December 31, 2011 and 2010, respectively)
|
2,102
|
1,875
|
||||||
Additional paid-in capital
|
27,489,600
|
26,595,929
|
||||||
Retained earnings
|
34,618,341
|
29,264,152
|
||||||
Statutory reserve
|
2,064,551
|
1,658,197
|
||||||
Accumulated other comprehensive gain - foreign currency translation adjustment
|
7,578,749
|
5,029,471
|
||||||
Total Stockholders' Equity
|
71,764,339
|
62,565,829
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
82,589,153
|
$
|
74,216,871
|
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
||||||||||||||||
For the Three Months Ended
|
For the Years Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2011
|
2010
|
2011 |
2010
|
|||||||||||||
REVENUES
|
$ | 13,728,005 | $ | 22,468,599 | $ | 55,579,262 | $ | 79,548,609 | ||||||||
COST OF REVENUES
|
10,658,894 | 16,363,257 | 42,275,919 | 58,628,150 | ||||||||||||
GROSS PROFIT
|
3,069,111 | 6,105,342 | 13,303,343 | 20,920,459 | ||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Depreciation
|
607,443 | 79,746 | 1,112,769 | 319,239 | ||||||||||||
Selling, general and administrative
|
1,234,303 | 1,589,353 | 4,007,997 | 5,091,592 | ||||||||||||
Total Operating Expenses
|
1,841,746 | 1,669,099 | 5,120,766 | 5,410,831 | ||||||||||||
INCOME FROM OPERATIONS
|
1,227,365 | 4,436,243 | 8,182,577 | 15,509,628 | ||||||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest income
|
2,712 | 582 | 3,652 | 3,794 | ||||||||||||
Interest expense
|
(70,729 | ) | (30,092 | ) | (193,709 | ) | (147,428 | ) | ||||||||
Foreign currency gain (loss)
|
9,863 | (2,265 | ) | 5,046 | (15,338 | ) | ||||||||||
Grant income
|
- | 274 | - | 49,552 | ||||||||||||
Other income
|
12,069 | - | 103,448 | - | ||||||||||||
Total Other Income (Expense)
|
(46,085 | ) | (31,501 | ) | (81,563 | ) | (109,420 | ) | ||||||||
INCOME BEFORE INCOME TAXES
|
1,181,280 | 4,404,742 | 8,101,014 | 15,400,208 | ||||||||||||
INCOME TAXES
|
390,846 | 1,274,194 | 2,340,471 | 4,325,876 | ||||||||||||
NET INCOME
|
$ | 790,434 | $ | 3,130,548 | $ | 5,760,543 | $ | 11,074,332 | ||||||||
COMPREHENSIVE INCOME:
|
||||||||||||||||
NET INCOME
|
$ | 790,434 | $ | 3,130,548 | $ | 5,760,543 | $ | 11,074,332 | ||||||||
OTHER COMPREHENSIVE INCOME:
|
||||||||||||||||
Unrealized foreign currency translation gain
|
403,282 | 782,903 | 2,549,278 | 1,907,789 | ||||||||||||
COMPREHENSIVE INCOME
|
$ | 1,193,716 | $ | 3,913,451 | $ | 8,309,821 | $ | 12,982,121 | ||||||||
NET INCOME PER COMMON SHARE:
|
||||||||||||||||
Basic
|
$ | 0.39 | $ | 1.69 | $ | 2.94 | $ | 6.19 | ||||||||
Diluted
|
$ | 0.31 | $ | 1.29 | $ | 2.30 | $ | 4.36 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
||||||||||||||||
Basic
|
2,036,680 | 1,849,333 | 1,962,146 | 1,787,994 | ||||||||||||
Diluted
|
2,553,213 | 2,428,510 | 2,500,805 | 2,539,682 |
CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Years Ended
|
||||||||
December 31,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$
|
5,760,543
|
$
|
11,074,332
|
||||
Adjustments to reconcile net income from operations to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation
|
5,351,359
|
3,192,662
|
||||||
Amortization of debt discount to interest expense
|
-
|
44,993
|
||||||
Amortization of land use rights
|
91,316
|
87,204
|
||||||
Increase in allowance for doubtful accounts
|
720,302
|
1,006,162
|
||||||
Stock-based compensation expense
|
355,856
|
546,963
|
||||||
Changes in assets and liabilities:
|
||||||||
Notes receivable
|
(848
|
)
|
282,986
|
|||||
Accounts receivable
|
694,014
|
(2,913,257
|
)
|
|||||
Inventories
|
(761,072
|
)
|
(1,036,591
|
)
|
||||
Prepaid value-added taxes on purchases
|
1,331,923
|
(2,309,987
|
)
|
|||||
Prepaid and other current assets
|
(64,667
|
)
|
159,152
|
|||||
Advances to suppliers
|
125,396
|
128,693
|
||||||
Accounts payable
|
(3,425,206
|
)
|
4,040,484
|
|||||
Accrued expenses
|
224,493
|
(48,312
|
)
|
|||||
VAT and service taxes payable
|
(83,358
|
)
|
54,102
|
|||||
Income taxes payable
|
(777,914
|
)
|
271,619
|
|||||
Advances from customers
|
906,282
|
85,695
|
||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
10,448,419
|
14,666,900
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of property and equipment
|
(11,115,640
|
)
|
(19,406,064
|
)
|
||||
NET CASH USED IN INVESTING ACTIVITIES
|
(11,115,640
|
)
|
(19,406,064
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Principal payments on capital lease
|
(156,918
|
)
|
-
|
|||||
Proceeds from loans payable
|
4,325,320
|
1,770,238
|
||||||
Repayment of loans payable
|
(3,861,893
|
)
|
(2,100,238
|
)
|
||||
Increase in restricted cash
|
(308,951
|
)
|
-
|
|||||
Increase in bank acceptance notes payable
|
308,951
|
-
|
||||||
Proceeds from sale of common stock
|
125,000
|
380,000
|
||||||
Proceeds from exercise of warrants
|
400,000
|
3,320,000
|
||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
831,509
|
3,370,000
|
||||||
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS
|
41,142
|
37,703
|
||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
205,430
|
(1,331,461
|
)
|
|||||
CASH AND CASH EQUIVALENTS - beginning of year
|
947,177
|
2,278,638
|
||||||
CASH AND CASH EQUIVALENTS - end of year
|
$
|
1,152,607
|
$
|
947,177
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$
|
193,709
|
$
|
104,578
|
||||
Income taxes
|
$
|
3,118,384
|
$
|
4,054,257
|
||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Capital leased property in exchange for capital lease obligations
|
$
|
772,379
|
$
|
-
|
||||
Increase in property in exchange for increase in payable
|
$
|
516,531
|
$
|
-
|
||||
Series A preferred converted to common shares
|
$
|
5,916
|
$
|
5,469
|
||||
Common stock issued for future service
|
$
|
7,833
|
$
|
2,469
|
For the Three Months Ended December 31,
|
Fiscal Year Ended December 31,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net Income
|
$ | 790,434 | $ | 3,130,548 | $ | 5,760,543 | $ | 11,074,332 | ||||||||
Income Tax
|
390,846 | 1,274,194 | 2,340,471 | 4,325,876 | ||||||||||||
Interest expense
|
70,729 | 30,092 | 193,709 | 147,428 | ||||||||||||
Depreciation and Amortization
|
1,723,362 | 1,069,361 | 5,442,675 | 3,279,866 | ||||||||||||
EBITDA
|
$ | 2,975,371 | $ | 5,504,195 | $ | 13,737,398 | $ | 18,827,502 |
Company Contact: | Investor Relations Contact: |
Mr. Ryan Hua
|
Ms. Elaine Ketchmere |
Vice President Operations
|
CCG Investor Relations |
Cleantech Solutions International, Inc.
|
Tel: +1-310-954-1345 |
Email: ryanhua@cleantechsolutionsinternational.com
|
Email: elaine.ketchmere@ccgir.com |
Web: www.cleantechsolutionsinternational.com
|
Web: www.ccgirasia.com |