China Solar & Clean Energy Solutions Inc. manufactures and distributes solar water heaters and space heating devices and provides renewable energy solutions in the People’s Republic of China. The company today reported its financial results for the full year ended December 31, 2009.
China Solar posted revenue at $26 million for the full year ended December 31, 2009, as compared to $42 million for 2008, a decrease of $15 million or 37 percent year-over-year.
The company attributes the decrease primarily due to the disposal of Shenzhen Pengsangpu Solar Industrial Products Corporation (SZPSP) paired with the continuous decrease in the sales of single solar products under the management of Deli Solar (Bazhou). Sales revenue for single solar products for 2009 was $5.6 million, as compared to $26 million for 2008.
However, the company said annual sales for industrial energy-saving projects in Tianjin Huaneng remained “stable and healthy.” Sales revenue for industrial waste heat recovery systems for the year of 2009 was $20 million, as compared to $15 million for the previous year.
Net income was $1.1 million for the full year ended December 31, 2009, with diluted earnings per share of $0.07, compared to $4.7 million in net loss for the year of 2008. The turnaround is a result of cash collected after the disposal of SZPSP, the increase in profitability of Tianjin Huaneng and the deduction of the liquidity penalty.
Deli Du, CEO and president of China Solar, said solid sales and a change-up in the company’s operations opens the door for future growth.
“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. 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,” Du stated in the press release. “We will continue to mobilize our resources on the more profitable business for industrial clients and to maximize the stock value for our shareholders.”