Bussiness News

China Solar & Clean Energy Solutions, Inc. (Formerly known as "Deli Solar (USA), Inc.") 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.