Sharing Economy International I (OTC:SEII)

WEB NEWS

Monday, January 13, 2020

Shareholder Letters

HONG KONG, Jan. 13, 2020 /PRNewswire/ -- Sharing Economy International Inc. (OTCQB:SEII), today issued the following letter to shareholders:

Dear SEII Shareholders:

As I reflect on our progress this past year, I first want to say thank you for your commitment and investment in SEII and would like to take this opportunity to wish you all a very happy, healthy and prosperous 2020.

Throughout 2019, we made significant changes to our company and have made new business plans from the top down including manufacturing and the development of information technologies, and sharing economy related businesses. In order to align with the Company's future direction toward sharing economy and information technology development, we continued to trim down the scale of the legacy dyeing machine business and focus on what we believe is our best opportunity for the future in 2020.

Over the past 12 months, SEII and its subsidiaries have gone through a series of challenges, including restructuring of management, change of business teams, the termination of the two Wuxi VIEs and so on. Through all these events, SEII has more clarity on what particular areas are the most appropriate to pursue in 2020 for future success.

Sharing Economy in Asia

As expected, the sharing economy market is gaining recognition day by day, as evidenced by the successful IPO of Lyft and Uber in the US markets in 2019, as the profitability performance of Meituan-Dianping in China. We continue to believe the development of sharing economy solutions will provide us a lot of business opportunities in the near future, which gives the best benefits to our shareholders.

During the Christmas period in 2019, we have completed the acquisition of the global sharing economy marketplace portal ECrent.com. ECrent is composed of both a web-based marketplace and mobile applications which provides a place for everyone, businesses and individuals, to put up any item and service that they can offer to share through rental to the communities. The concept of sharing economy is to maximize usage of all items and human resources. Through ECrent, our users can start to let everyone in the communities know what is available to rent for short term usage, instead of buying to fulfill just a one-time usage, leaving the item idle and wasted for the remaining of its lifespan.

We believe ECrent will become our industry horizontal backbone to further develop other vertical sharing economy applications which will satisfy the needs of completing vertical sharing transaction processes, to make sharing easier for everyone.

Our goal is to start covering ECrent and other upcoming sharing solutions in the Asia market, through local partnership, where sharing economy can provide the best values for these emerging young markets. Based on feedback from our potential partners in the Asia market, we share a united vision that the sharing of idle assets through rental is the future and a worthy project to invest in. With the foundation of ECrent platform and experience, we will work with regional teams to develop and educate the local markets in the near future.

Our strategy involves establishing a stronghold in the Asia market by picking specific market sectors and focusing on growing these targeted markets while leveraging the ECrent platform to grow the client base. We believe joining with local business partners and creating regional business and marketing alliances across Asia is a win-win arrangement and will enable us to rapidly establish a leading position in the sharing economy.

Sharing Blocks - the blockchain powered transaction engine

Since 2017, SEII focused on transforming the company into a pioneer of a sharing economy ecosystem by connecting different sharing economy businesses from different sectors together. SEII vision is to work with our business partner to develop a universal transaction system based on the crypto-token eCoin and supported by the foundation of blockchain technology which we plan to utilize in our various sharing economy businesses.

Our team finished the first stage of development of SEII's "Sharing Blocks" based on a semi-private blockchain system to develop a stablecoin to minimize volatilities, which brings us closer to achieving this goal to become a secured peer-to-peer transaction solution. We plan to facilitate this semi-private blockchain platform to build a user P2P transaction system. I'd like to clarify that SEII's eCoin system will distinguish itself from crypto-tokens such as Bitcoin, Ethereum, Litecoin…etc. Although eCoin is capable of being the transaction medium, it retains the user credibility rating based on the past activities/transaction via eCoin.

eCoin is currently pegged to the US dollar with a fixed exchange rate, and may be pegged to a bucket of other currencies in the future to maintain the stability of our token. eCoin does not facilitate any mining activity and maintains its own centralized credibility system. It is designed to be a multi-purpose, multi-business transaction system for linking the sharing economy industry. Our goal is to develop and maintain a stable online transaction tracking and user data recording system as opposed to encouraging and facilitating speculation within the ecosystem.

At present, we have developed and are testing our in-house developed blockchain token backend. We are looking forward to have our initial crypto token system to replace our current payment transaction systems within 2020.

Sharing Media - the platforms to open up media markets

In this information age, media play very important roles in the business markets. With the growth of Internet usage, the media markets have been changing very rapidly during the past few years.

SEII sees the business changes in the media market, and we see the opportunity to work with our media partners to develop sharing solutions which allow more flexible and effective placements across different media channels, which can maximize the return on investment of the contents and advertisements.

Our mission - M&A

Since SEII's business transformation plan commenced in 2017 and completing the switching of the company business formation in 2019, we have successfully acquired three sharing economy and IT related businesses and are constantly seeking additional acquisition and partnership opportunities in the sharing economy and IT sectors. In 2020, SEII expects to see growth in market shares in each of our new sharing, rental and media markets, which will diversify the income opportunities of the company based on these newly developed emerging markets in Asia. We will continue to seek more merger and acquisition opportunities in the markets to invite promising sharing economy and IT ventures to join the SEII family.

Opportunity

Given the current market dynamics, 2019 has got off to a challenging start with the world economy facing multiple uncertainties over border and trade disputes and a slow down in investments from ventures. SEII is continuing to seek viable business opportunities to position our business for success in in 2020.

It was an eventful year in 2019. Although, many changes have taken place, we want to thank our employees and partners for all their efforts to help establish a new foundation for 2020 and beyond. We are confident that SEII will improve the business performance in 2020, and continue to grow based on the current business directions in the years to come, becoming one of the major players in the sharing economy and crypto token transaction markets.

The company targets to rebuild a solid business foundation and plan to return to Nasdaq or NYSE in the years to come.

We look forward to providing you with more frequent shareholder updates as we move forward.

Sincerely,

Mr. Chan Che Chung Anthony
Chairman
Sharing Economy International Inc.



Wednesday, November 27, 2019

Joint Venture

HONG KONG, Nov. 27, 2019 /PRNewswire/ -- Sharing Economy International, Inc. ("SEII" or "the Company") (OTC: SEII) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEII"), has entered into a License Agreement with Ecrent Capital Holdings Limited ("ECRENT"), regarding the grant of an exclusive and sublicensable license from ECRENT to SEII to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in United Kingdom, Germany, France, Poland, Switzerland, Netherlands, Denmark, Russia, Italy, Spain, Portugal and Greece. In return, SEII will pay US$1,000,000 as license fee.  ECRENT will grant the license right to SEII till December 31, 2021.

"This agreement is an extension of our licensing with ECRENT in Asia," said Parkson Yip, Vice President of SEII. "During the past year, SEII has been going through an extensive corporate restructuring.  While the manufacturing business continues, we are recollecting our strategies with the sharing economy businesses.  With our previous licensing agreement with ECRENT covering the Asian region, we have begun local business development activities and early indications are promising.  Therefore, we have decided to move forward with this agreement again, cooperating with ECRENT at a greater effort to cover the European market as well.  The new agreement provides SEII with another potential income opportunity in the coming year, as well as an expansion of our market reach into Europe. The sharing economy has been well accepted in European communities, so we believe a sharing classified advertising platform like ECRENT can open up more channels for sharing opportunities among consumers and can be adapted in the region quickly.  ECRENT has recently been endorsed with over US$2 billion in business valuation, we have a strong confidence that the sharing economy community model will work out well."


Thursday, April 18, 2019

Comments & Business Outlook

WUXI, Jiangsu Province, China, April 18, 2019 /PRNewswire/ -- Sharing Economy International Inc. ("SEII" or "the Company") (OTC Markets: SEII), a clean technology and sharing economy company that designs, manufactures and distributes of proprietary high and low temperature dyeing and finishing machinery to the textile industry, and is engaged in the development of sharing economy platforms and rental related businesses, today announced its financial results for year ended December 31, 2018.

"In 2018, our legacy dyeing and finishing business continued to face numerous challenges such as difficult economic conditions, rising raw materials costs and forced closures by the Chinese government which adversely impacted our financial results for the year. We also recorded $8.6 million in impairment losses related to patent use rights and the disposition of manufacturing equipment along with an $8.9 million loss on our solar farm equity method investment following the Chinese government's halt on new solar farm installations and reduced subsidies for solar farms already under construction," said Mr. Jianhua Wu, Chairman and CEO of SEII. "Given the challenges facing our existing manufacturing operations, we continue to look for new growth opportunities for the Company. In 2018, we established new sharing economy businesses in peer-to-peer errand services, coworking and 3D virtual tours, and are making good progress in developing our online rental sharing business in Asia."

Mr. Parkson Yip, Vice President of SEII, commented, "While the development of our sharing economy businesses is dependent on additional capital to fund their growth, we made great strides over the last year. In 2018 we launched BuddiGo, our sharing platform that provides on demand delivery of items including packages, flowers, cakes and food delivery by 'buddies' who can spare idle time to run errands in the Hong Kong market. During the year we had over 1,200 individuals officially registered as sell-side buddies and they completed over 500 delivery orders. Meanwhile, 3D Discovery generated over $0.2 million in revenue in 2018 and continues its work on Autocap, a mobile app which allows users to create an interactive virtual tour of a physical space by using a mobile phone camera. Finally, through our agreement with ECrent, we continue our prelaunch activities for our peer-to-peer rental sharing economy in Asia. We remain optimistic about the future of this business and are hopeful it will make a meaningful contribution to our topline in 2019."

Full Year 2018 Results

Revenue for 2018 decreased by 30.9% to $9.5 million, compared to $13.5 million for 2017.  The Company's dyeing and finishing business generated substantially all revenue in 2018, since the forged rolled rings and related products and petroleum and chemical equipment businesses were discontinued in 2016 and the new sharing economy businesses are still in an early stage.  Revenues declined due to an anticipated slowdown in shipments of low-emission airflow dyeing machines as many companies in the dyeing industry had already upgraded to new models and did not require additional equipment, and orders for new low-emission airflow dyeing machines slowed down in 2018 and 2017 as potential customers did not have the financial resources or credit to purchase equipment.  In addition, apparel factories and other factories have been shut down throughout the last year by China's environmental bureau, which has been cutting electricity and gas supply to determine compliance with China's environmental laws, which contributed to the decline in revenues.

Gross loss for 2018 was $4.4 million, compared to a gross loss of $156,000 for 2017.  Gross margin was negative 46.4% during 2018 compared to negative 1.2% for 2017. The gross margin for 2018 was primarily impacted by the reduced scale of operations resulting from lower revenues, which is reflected in the allocation of fixed costs, mainly consisting of depreciation, to cost of revenues, and an increase in labor and raw material costs.

Operating expenses increased by 135.0% to $28.4 million, compared to $12.1 million in 2017.  The increase was primarily due to higher professional fees in the form of stock-based compensation related to implementing a new business plan with the objective of improving long-term growth, an increase in salaries to support new business opportunities, temporary rent expense and an increase in the allowance for doubtful accounts. In addition, the Company recorded impairment losses of approximately $1.9 million related to the write-off its patent of use rights in September 2018 and approximately $6.3 million related to the disposition of manufacturing equipment in December 2018.

Other expense was $9.3 million, compared to other expense of $188,000 in 2017. The increase was primarily due to an $8.9 million loss in equity investment in Shengxin, a developer and designer of solar farms in China. In April 2018, Shengxin secured and invested in a large solar PV project in Guizhou province, paid RMB40.0 million for the project rights and also engaged a local contractor to proceed with building the project. However, on June 1, 2018, the Chinese government halted installation of new solar farms for the remainder of the year and reduced subsidies for projects already under construction. Due to significant doubt about the status of this project and recoverability of the Company's investment, the Company fully impaired the value of its investment during the third quarter of 2018.

Loss from continuing operations was $42.1 million, or $(7.15) per basic and diluted share, compared to loss from continuing operations of $12.8 million, or $(6.99) per basic and diluted share in 2017.

Gain from discontinued operations (Refer to "Discontinued Operations" discussion below) was $16,000, or $0.00 per basic and diluted share.  This compares to loss from discontinued operations of $98,000, or $(0.05) in 2017.

Net loss for 2018 was $41.1 million, or $(7.15) per basic and diluted share, compared to net loss of $12.9 million, or $(7.04) per basic and diluted share, in 2017.   

Basic and diluted earnings per share were based on 5,753,698 and 1,832,900 weighted average shares outstanding, respectively, for the years ended December 31, 2018 and 2017. All share and per share information has been adjusted to reflect a 1-for-4 reverse stock split effective March 20, 2017.

Financial Condition

As of December 31, 2018, SEII held cash and cash equivalents of $0.9 million compared to $1.0 million at December 31, 2017.  Accounts receivable were $4.3 million compared to $9.1 million at December 31, 2017.  Inventories were $6.4 million compared to $4.6 million at December 31, 2017.  The Company had $2.3 million in short-term bank loans payable at December 31, 2018, down slightly from $2.5 million at December 31, 2017. Working capital was $10.6 million at December 31, 2018 compared to $13.5 million at December 31, 2017.   Stockholders' equity was $35.4 million at December 31, 2017. 

In 2018, the Company used $2.5 million in cash flow from operations. The Company used $72,000 in cash flow from investing activities, and generated $2.0 million in cash flow from financing activities, primarily due to proceeds $0.9 million in from the sale of a convertible note, proceeds from the sale of common stock of $0.3 million and advances from a related party of $1.4 million.

Discontinued Operations

On December 30, 2016, the Company sold and transferred 100% of the stock of Wuxi Fulland Wind Energy Equipment Co., Ltd. ("Fulland Wind") to an unrelated party and discontinued the Company's forged rolled rings and related components business. Additionally, the Company's management decided to discontinue its petroleum and chemical equipment segment due to significant declines in revenues and the loss of its major customer. As such, the assets and liabilities of these two segments have been classified on the consolidated balance sheet as assets and liabilities of discontinued operations as of December 31, 2018 and 2017 and the operating results have been classified as discontinued operations in the consolidated statements of operations for all years presented.



Wednesday, January 23, 2019

Notable Share Transactions

HONG KONG, Jan. 23, 2019 /PRNewswire/ -- Sharing Economy International Inc. ("SEII" or "the Company") (OTC Markets: SEII) today announced that on January 21, 2019, the Company entered into a [non-brokered] private placement agreement with an individual for the purchase an aggregate of US$200,100.00 of the Company's shares.

The Company intends to use the proceeds from the financing for general corporate purposes, including the development of its sharing economy businesses. The private placement is expected to close by February 28, 2019, subject to certain closing conditions.

Mr. Parkson Yip, Vice President of SEII, commented, "SEII remains committed to pursuing our business plan, despite recent changes to our common stock listing. We are pleased that investors remain receptive to the growth opportunities available to our Company in the sharing economy in Asia and beyond."

The securities to be sold in this private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws, and accordingly may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.


Monday, December 3, 2018

Comments & Business Outlook

HONG KONG, Nov. 30, 2018 /PRNewswire/ -- Sharing Economy International Inc. ("SEII" or "the Company") (SEII) today announced that on November 26, 2018, Sharing Economy International Inc. (the "Company") received a staff determination notice from The Nasdaq Stock Market ("Nasdaq") informing the Company that as a result of its failure to comply with Nasdaq's shareholder approval requirements set forth in Listing Rule 5635(c) (the "Rule"), the staff had determined to deny the Company's request for continued listed based on a plan of compliance submitted on October 26, 2018.

In the determination notice, the staff expressed its concern that the plan of compliance did not represent a definitive plan evidencing the Company's ability to comply with the Rule due to (i) a portion of the shares issued in violation of the Rule having been sold in the market (and accordingly no longer subject to remediation) and (ii) the lack of signed commitments from other holders of shares issued in violation of the Rule to participate in a proposed exchange offer intended to remediate such issuances by virtue of a subsequent special meeting of stockholders to be held to approve them. Nasdaq further informed the Company that, in accordance with Listing Rule 5101, unless the Company requests an appeal of the staff's determination, the Company's common stock will be suspended from trading on the Nasdaq Capital Market at the opening of business on December 5, 2018.

The Company has decided not to appeal the Nasdaq determination notice and is instead moving its stock listing to the OTC Markets. The Company believes OTC Markets is more suitable to its capital and business needs at this time as it undergoes the transition of its business and pursues aggressive growth strategies in the coming years. Although SEII is moving its stock listing to a different market, the Company intends to continue to maintain high quality reporting and disclosure standards and will continue to improve its corporate governance.


Wednesday, November 14, 2018

Comments & Business Outlook

Third Quarter 2018 Financial Results

  • Revenue for the third quarter of 2018 decreased by 4.3% to $2.5 million, compared to $2.6 million in the third quarter of 2017.
  • Net loss attributable to common shareholders was $18.2 million, or $(2.56) per basic and diluted share, compared a net loss attributable to common shareholders of $4.3 million, or $(2.14) per basic and diluted share in the third quarter of 2017.

"In the third quarter of 2018, our textile customers in China continued to face challenging conditions such as tight credit, rising raw materials costs and forced closures by the Chinese government which depressed sales and margins during the quarter. This environment also led to our decision to record a $1.9 million impairment on the ozone-ultrasonic patent technology we acquired in August 2016, as we do not believe our customers will be in a position to buy next-generation dying machines based on this technology in the foreseeable future. Our quarterly financial results were also impacted by an $8.9 million loss on our solar farm equity method investment following the Chinese government's halt on new solar farm installations and reduced subsidies for solar farms already under construction," said Mr. Jianhua Wu, Chairman and CEO of SEII.  "As we look to the future, we are seeking to identify new revenue drivers in both our traditional manufacturing business and, more importantly, our sharing economy businesses.  We are moving forward in developing new businesses in fast growing industries such as coworking spaces, online rental sharing and peer-to-peer errand services. We are also making good progress with our initiatives in 3D virtual tours, online advertising and see strong potential in our latest acquisition, Gagfare." 

Mr. Parkson Yip, Vice President of SEII, commented, "Our sharing economy business units are all gaining momentum.  During the quarter, BuddiGo, our sharing platform that provides on-demand delivery of items including packages, flowers, cakes and food delivery by 'buddies' who can spare idle time to run errands in the Hong Kong market, began online promotions featuring KOLs, driving increases in both buy-side and sell-side users. Our flexible workspace offering, Anyworkspace, saw a 44% increase in website traffic from the second quarter of 2018 and successfully extended its footprint to India with the addition of space providers in New Delhi and Gurgaon. Anyworkspaces' website rebuild is expected to be completed by year-end, which should help us better monetize advertising opportunities and attract more users in the year ahead.

"Our 3D Discovery business unit currently has contracts totaling approximately $278,000 which are expected to be completed by year end, and Autocap, a mobile application which allows users to create a virtual tour of a physical space on their own without the help of specialized 360 camera equipment, is on track to launch its iOS version in Australia by mid-2019. At EC Advertising, our inhouse online advertising unit that supports Buddigo, Anyworkspace and 3D Discovery, we established a new wholly-owned subsidiary in Mainland China and expect to sign new clients and launch marketing campaigns toward the end of 2018 and in early 2019. Finally, we continue to develop our peer-to-peer rental sharing economy in Asia through our license agreement with ECrent. During the quarter, our sublicensee in South Korea, PTI Corporation, commenced prelaunch activities to develop the platform and we hope to enter other Asian countries in the year ahead," Mr. Yip concluded.


Tuesday, September 4, 2018

Comments & Business Outlook

HONG KONG, Sept. 4, 2018 /PRNewswire/ -- Sharing Economy International Inc. ("SEII" or "the Company") (SEII) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEII"), has amended the terms of the License Agreement, which was originally entered into on May 8, 2018 and amended on May 24, 2018, with Ecrent Capital Holdings Limited ("ECRENT"), regarding the grant of an exclusive and sublicensable license from ECRENT to SEII to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in Taiwan, Thailand, India, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Cambodia, Japan, and Korea. According to the latest amendment, ECRENT will guarantee that the operation of its related websites, mobile applications and business services will contribute revenue of US$13,000,000 (increased from US$10,000,000 according to the previously amended agreement) and gross profit of US$2,522,000 (up from US$1,940,000 as stated on the previously amended agreement) from the closing date of the License Agreement through December 31, 2019 (extended from June 30, 2019 per the previously amended agreement).

"We are already seeing good progress and large market opportunities for ECRENT," said Parkson Yip, Vice President of SEII. "We entered into a sublicensing agreement in August 2018 with PTI Corporation through which we will explore and develop the market for ECRENT in South Korea, and we will continue to search for other suitable partners to assist us in introducing ECRENT in other Asian and European regions. These prospective sublicensing agreements will provide SEII with other potential income opportunities in the future. More importantly, our collaboration with these local business partners will allow us to locally deploy SEII affiliated solutions as well, such as BuddiGo and Anyworkspace, within the entire SEII operating platform."


Monday, August 20, 2018

Acquisitions

HONG KONG, Aug. 20, 2018 /PRNewswire/ -- Sharing Economy International, Inc. ("SEII" or "the Company") (SEII) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEIL"), has entered into a sale and purchase agreement with the shareholder of Gagfare Limited ("Gagfare"), to acquire 60% ownership of Gagfare.  SEIL will acquire 60% of Gagfare for consideration of US$3.6 million, which shall be satisfied by the allotment and issuance of 1,176,087 preferred shares of the Company at a price of $3.061 per share.

Launched in the third quarter of 2017, Gagfare is an online platform enabling travelers to search flights directly with over 500 airlines globally, allowing them to get the best-value airfare for their desired flight, and secure a confirmed booking instantly. Its unique book-now-pay-later solution allows travelers to pay only US$2 to secure up to nine seats, well in advance, in one booking.  Travelers are not required to pay the remaining fare until the ticketing deadline specified by the individual airlines.

"We created Gagfare because we know what customers want," said David Leung, travel industry veteran, founder and CEO of Gagfare. "Our mission is to let customers to 'get a good fare', hence the name. According to a report published by Allied Market Research (AMR), the online travel market is estimated to garner over US$1 trillion globally by 2022. The Asia Pacific region is expected to witness the highest growth, and online travel agencies (OTA) will witness strong growth over the next five years. With the rich resources and global teams from SEII, we expect to provide the traveling public with more options by offering book-now-pay-later services for as low as US$2.

"We are happy to welcome Gagfare to the SEII network," said Parkson Yip, Vice President of SEII.  "Gagfare puts the power back into travelers' hands by providing a very competitive direct airfare booking solution which consumers use to search for their flights directly through the airlines' own systems. This gives travelers access to promotional deals they may never encounter anywhere else online and ensures they get the best airfare offer, on any given travel day, on any given flight, on any of the world's leading 500 airlines. We are very confident the US$2 book-now-pay-later airfare services can help millions of travelers save money and gain greater financial flexibility through advance confirmation booking of flights. SEII and Gagfare will work together to provide more sharing and saving opportunities for travelers in the future."


Thursday, August 16, 2018

Contract Awards

HONG KONG, Aug. 15, 2018 /PRNewswire/ --  Sharing Economy International Inc. ("SEII" or "the Company") (SEII) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEII"), has entered into a License Agreement with Ecrent Capital Holdings Limited ("ECRENT"), regarding the grant of an exclusive and sublicensable license from ECRENT to SEII to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in United Kingdom, Germany, France, Poland, Switzerland, Netherlands, Denmark, Russia, Italy, Spain, Portugal and Greece. In return, SEII shall issue to ECRENT 360,000 shares of restricted common stock. ECRENT will guarantee that the operation of its related websites, mobile applications and business services will contribute revenue of US$20,000,000 and gross profit of US$3,880,000 from the closing date of the License Agreement through December 31, 2019.

"This agreement is an extension of our licensing with ECRENT in Asia, where we are seeing good progress and large market opportunities to come," said Parkson Yip, Vice President of SEII. "Under our current licensing agreement with ECRENT covering the Asian region, we have begun local business development activities and early indications are promising. Therefore, we have decided to move forward with this agreement to cover the European market as well. The new agreement provides SEII with another potential income opportunity in the coming year, as well as an expansion of our market reach into Europe. The sharing economy has been well accepted in European communities, so we believe a sharing classified advertising platform like ECRENT can open up more channels for sharing opportunities among consumers and can be adapted in the region quickly. We are seeking local business partners to launch the local ECRENT operations who may also assist us with the localized deployment of other SEII affiliated solutions as well, such as BuddiGo and Anyworkspace."


Wednesday, August 15, 2018

Joint Venture

HONG KONG, Aug. 15, 2018 /PRNewswire/ --  Sharing Economy International Inc. ("SEII" or "the Company") (NASDAQ: SEII) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEII"), has entered into a License Agreement with Ecrent Capital Holdings Limited ("ECRENT"), regarding the grant of an exclusive and sublicensable license from ECRENT to SEII to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in United Kingdom, Germany, France, Poland, Switzerland, Netherlands, Denmark, Russia, Italy, Spain, Portugal and Greece. In return, SEII shall issue to ECRENT 360,000 shares of restricted common stock. ECRENT will guarantee that the operation of its related websites, mobile applications and business services will contribute revenue of US$20,000,000 and gross profit of US$3,880,000 from the closing date of the License Agreement through December 31, 2019.

"This agreement is an extension of our licensing with ECRENT in Asia, where we are seeing good progress and large market opportunities to come," said Parkson Yip, Vice President of SEII. "Under our current licensing agreement with ECRENT covering the Asian region, we have begun local business development activities and early indications are promising. Therefore, we have decided to move forward with this agreement to cover the European market as well. The new agreement provides SEII with another potential income opportunity in the coming year, as well as an expansion of our market reach into Europe. The sharing economy has been well accepted in European communities, so we believe a sharing classified advertising platform like ECRENT can open up more channels for sharing opportunities among consumers and can be adapted in the region quickly. We are seeking local business partners to launch the local ECRENT operations who may also assist us with the localized deployment of other SEII affiliated solutions as well, such as BuddiGo and Anyworkspace."


Wednesday, August 15, 2018

Notable Share Transactions

HONG KONG, Aug. 15, 2018 /PRNewswire/ --  Sharing Economy International Inc. ("SEII" or "the Company") (NASDAQ: SEII) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEII"), has entered into a License Agreement with Ecrent Capital Holdings Limited ("ECRENT"), regarding the grant of an exclusive and sublicensable license from ECRENT to SEII to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in United Kingdom, Germany, France, Poland, Switzerland, Netherlands, Denmark, Russia, Italy, Spain, Portugal and Greece. In return, SEII shall issue to ECRENT 360,000 shares of restricted common stock. ECRENT will guarantee that the operation of its related websites, mobile applications and business services will contribute revenue of US$20,000,000 and gross profit of US$3,880,000 from the closing date of the License Agreement through December 31, 2019.

"This agreement is an extension of our licensing with ECRENT in Asia, where we are seeing good progress and large market opportunities to come," said Parkson Yip, Vice President of SEII. "Under our current licensing agreement with ECRENT covering the Asian region, we have begun local business development activities and early indications are promising. Therefore, we have decided to move forward with this agreement to cover the European market as well. The new agreement provides SEII with another potential income opportunity in the coming year, as well as an expansion of our market reach into Europe. The sharing economy has been well accepted in European communities, so we believe a sharing classified advertising platform like ECRENT can open up more channels for sharing opportunities among consumers and can be adapted in the region quickly. We are seeking local business partners to launch the local ECRENT operations who may also assist us with the localized deployment of other SEII affiliated solutions as well, such as BuddiGo and Anyworkspace."


Monday, February 12, 2018

Shareholder Letters

HONG KONG, Feb. 12, 2018 /PRNewswire/ -- Sharing Economy International Inc. (SEII), a clean technology and sharing economy company that designs, manufactures and distributes of proprietary high and low temperature dyeing and finishing machinery to the textile industry, and is engaged in the development of sharing economy platforms and rental related businesses, today provided the following letter to shareholders:

Dear SEII Shareholders:

I would like to take this opportunity to wish you all a very happy, healthy and prosperous 2018.

Throughout 2017, we made significant changes in the overall direction of the company. Given the headwinds affecting our manufacturing business, we have made the decision to focus on high growth opportunities and have added new sharing economy business units into the group. Our new corporate name, Sharing Economy International Inc., which became effective a few weeks ago, reflects this shift in our strategic direction.

Historically, the company has focused on environmentally friendly solutions, and through the research and development of new sharing economy businesses, we remain true to that heritage.

Sharing Economy Developments

Today, the sharing economy is in the process of disrupting and transforming numerous industries, changing both business and consumer behavior. The sharing economy redefines how resources are being provided and utilizes them in a more efficient way. According to Juniper Research, total sharing economy revenue is predicted to reach $40.2 billion by 2022. PwC UK forecasts the five most prominent sharing economy sectors -- collaborative finance, peer-to-peer accommodation, peer-to-peer transportation, on-demand household services and on-demand professional services, could see a 20-fold increase to €570 billion by 2025 in European markets, up from just €28 billion today. The sharing economy is spreading across different industries and regions, creating new market behavior.

Sharing economy business models are hosted through digital platforms that enable more precise, real-time measurement of spare capacity and have the ability to dynamically connect that capacity with those who need it. These digital platforms handle transactions that offer access over ownership through renting, lending, subscribing, reselling, swapping or donating. Consumers who use sharing economy business models are often more comfortable with transactions that involve deeper social interactions than traditional methods of exchange.

In 2017, SEII began studying and acquiring sharing economy platforms in different market disciplines. Following these efforts, we are now grouping our sharing economy markets in the following verticals: coworking and coliving communities, community consumer resource sharing, collaborative transportation, on-demand peer-to-peer services, and social referral recruitment.

Technology Development

Because the sharing economy will be built upon digital platforms to provide precise and real-time services to connect spare capacity with users, we need to apply advanced technologies to support a convenient and safe sharing economy ecosystem and build trust among the participants. SEII has established both in-house engineering teams and engaged with external technology partners and advisors to develop a common underlying information and transaction platform which can be used by different sharing economy vertical applications. Our technical teams and partners include experts in blockchain, artificial intelligence, big data, digital imaging and video technologies, ecommerce and UI/UX, among others. Blockchain is a technology which allows secured decentralized transactions to be possible and provides a digital platform solution for the development of a sharing economy ecosystem. We are working with our partners to develop SEII's "Sharing Blocks," a blockchain-based platform which provides functions for secured user profile information and transaction records through a "Blockchain as a Service" (BaaS) model, allowing third-party sharing economy applications to utilize and build a global consolidated and trustworthy sharing economy ecosystem.

Sharing Communities

The sharing economy is predicated on the trust of all participants. The best way to establish sharing behaviors is within communities. SEII continues to be in active discussions with ECrent Capital Holdings Limited ("ECrent"), a private company incorporated in the British Virgin Islands focusing on developing and operating of a global sharing and rental platform to promote sharing economy across 30 countries and regions, regarding a potential merger and acquisition or business cooperation. On the ECrent platform, users can share and locate items and services within or close to their community using the search, grouping and location services. With the global population of 7 billion individuals embracing sharing communities, we believe ECrent's sharing community has the potential to provide significant user and revenue growth opportunity to the group.

Coworking and Coliving Development

According to Small Business Labs, the number of coworking spaces globally will exceed 30,000 by 2022, with over 5.1 million people utilizing coworking spaces. SEII is entering the coworking and coliving spaces market through partnerships and affiliations with current coworking and coliving space operators. Our recent acquisition of Anyworkspace, and potential acquisitions of Quikspace, and JoGeep, combined with the development of our item rental services "Rental Stations" within our EC Power subsidiary, will support our coworking and coliving rental community development.

While still in a very early stage, we are also exploring opportunities to invest in integrated coworking and coliving communities through the restructuring of existing hotels, resorts, service apartments and commercial and residential properties. Our aim is to revitalize these types of properties into one-stop coworking and coliving facilities where people can live and work within one building -- a true community. People can fulfill their daily needs through short and long term rental models for items and services within the community such as computer equipment, appliances, cars, meeting and party rooms, video rooms, cinema/auditorium and more. All transactions will be processed through a virtual bank facility and through a secured cryptocurrency -- Ecoin. We truly believe this has the potential to be a revolutionary property asset and sharing economy project, which can offer attractive property asset investments along with growth potential of the sharing economy. The way people live and work will change.

On-Demand Services and Referral Recruitment

Another area that SEII group is currently exploring is on-demand services and referral recruitment.  The ways people work and how services are provided has been changing, and there is a growing need for short-term services and workforces in the market. With our newly completed acquisition of Inspirit Studio, a new sharing platform, Buddigo, will be launched in mid-2018. Buddigo will allow everyone to share their daily trips by providing delivery, pick-up and errand services for a fee. In terms of referral recruitment, we see strong potential here as well. Not only will it reduce the costs of recruitment, it will increase trust and reliability for employers. Users can share their professional networks and act as headhunters for extra income opportunities, while corporations will benefit from lower costs and have more confidence in candidates due to endorsements and references.

Sharing Transportation and Smart City

Transportation is an important part of our daily lives, but it is also one of the major causes of pollution. Sharing transportation can help reduce the unnecessary growth of vehicles.  We are working with partners both in technology development and taxi operators to develop a sharing taxi platform that provides passengers with the option to share taxi trips together. Our design will allow users to call a taxi that is already occupied but identified as shareable. Through a location service and route planning system, the best sharing taxi can be suggested to the user. While working with taxi operators to enhance taxi services, we are also planning to build a taxi-based city WiFi network. With taxis as the access points, users can access the network easily, especially travelers arriving at new locations. Further plans include expanding the network access points to other types of public transportation. Establishing a city network will keep us closer to our users, allow us to offer additional services and provide opportunities for monetization through targeted media and advertising in the future.

Going forward, we will focus on these new efforts and opportunities in sharing economy development. We believe further M&A has the potential to grow the company rapidly and aggressively in new market opportunities, technology, products and platforms, and the more importantly -- teams and talent. We have strong confidence that these business strategies and expansion plans will provide a long-term future for SEII and build value for our investors.

It was an eventful year in 2017. We want to thank our employees and partners for all their efforts to help establish a new and solid foundation for 2018 and beyond. We look forward to providing you with more frequent shareholder updates as we move forward.

Sincerely,

Mr. Jianhua Wu
Chairman and CEO
Sharing Economy International, Inc.


Monday, December 11, 2017

Comments & Business Outlook

HONG KONG, Dec. 11, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") ("CLNT") (Nasdaq: CLNT) today announced that its wholly-owned subsidiary, EC Technology & Innovations Limited ("ECTI"), has entered into a sale and purchase agreement ("agreement") with the major shareholders of 3D Discovery Co. Limited ("3D Discovery"), to acquire a 60% interest in the issued share capital of 3D Discovery for consideration of HK$3.0 million, which shall be satisfied by the allotment and issuance of 68,610 unregistered shares of the Company at a price of $5.606 per share.

Michael Ho, co-founder of 3D Discovery commented, "3D Discovery will join the CLNT group as a core member of the 3D technology sector. We believe CLNT's resources, along with our expertise, will provide a solid foundation to develop and promote 3D technology related businesses.  Our vision is that our 360 virtual tour mobile app will become the ideal medium for sharing and experiencing space."

"3D Discovery's scanning and modeling technology is already being used by some of Hong Kong's leading property agencies to provide their clients with a truly immersive, first-hand experience of a physical space while saving them time and money," said Parkson Yip, COO of Cleantech Solutions. "We look forward to working with them to develop a mobile virtual space solution that can be deployed to the real estate market very rapidly. We expect this easy-to-use and affordable marketing tool to have broad appeal in industries such as hospitality, real estate, and tourism.

"According to Goldman Sachs, the Real Estate virtual reality ("VR") industry is predicted to reach US$2.6 billion in 2025, supported by a potential user base of over 1.4 million registered real estate agents in some of the world's largest markets.  Real Estate VR technologies allow buyers and renters to almost 'feel' the property and help them to really understand what living there would be like. The 3D Discovery virtual space solution is unique in that it does not require the heavy 3D headset most other solutions are using. Users can simply walk through the 3D virtual space on both desktop and mobile platforms and access the information anywhere, anytime," Mr. Yip concluded.


Wednesday, December 6, 2017

Notable Share Transactions

HONG KONG, Dec. 6, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") ("CLNT") (CLNT) today announced that its wholly-owned subsidiary, EC Assets Management Limited ("EC Assets"), has entered into a conditional share swap agreement ("agreement") with Ever-Long Holdings Limited and certain of its officers and directors ("Ever-Long Parties"), to acquire a 51% interest in the issued share capital of Brighten Holdings Int'l Limited ("Brighten"), a subsidiary of Styland Holdings Limited, a Hong-Kong-listed company (0211.HK). The terms of the agreement stipulate that the Ever-Long Parties shall transfer 51% of Brighten's issued share capital (which is valued at US$16,447,500, based on 510,000 ordinary voting shares at a price of US$32.25 per Brighten share). In exchange, the Company shall issue a certain number of its shares of common stock, representing 19.5% of the issued and outstanding shares of CLNT, and a 5-year interest-free promissory note with a principal amount of US$13,762,125 to Brighten. The agreement is subject to various conditions, including entry into a definitive agreement satisfactory to both parties and legal and financial due diligence.

Brighten is a boutique investment firm specializing in securitization, mergers and acquisitions, and direct investments into technology companies related to the sharing economy, O2O (offline to online and vice versa), and Fintech (finance technology). For the first half of its fiscal year 2017, Brighten has recorded an unaudited net profit of HK$25 million, and it is currently engaged in either direct investments or joint ventures of more than 30 technology companies.

"We are excited to establish a collaborative relationship with CLNT as it focuses on developing its sharing economy businesses and pursuing technology and media innovation acquisitions," said Peter Woo, COO of Brighten. "CLNT has been actively involved in the acquisition of innovative technology and media businesses, which are the sectors Brighten has been actively investing in as well. The collaboration will provide Brighten with a broader global platform to further expand our innovative technology investment options and provide more fruitful returns to our investors."

"Our collaboration with Brighten opens some promising new growth areas for us as we explore innovative technology and media acquisition opportunities, as well as opening up a new investment management function in the group," said Parkson Yip, COO of Cleantech Solutions. "Brighten is led by industry veterans with extensive expertise in the capital markets at top-tier financial institutions. We believe Brighten's expertise in investment management and direct investments in innovative technology and media companies, combined with our own competitive advantages and available resources, will result in an extremely beneficial collaboration for both parties."

There can be no assurances that the parties may enter into any agreement to do a transaction, and even if an agreement is entered into, there can be no assurances that such transaction will be consummated.


Wednesday, November 22, 2017

Research

Cleantech Solutions (NASDAQ:CLNT) ($4.45; $9.9m market cap) has entered into a share swap agreement with Marvel Finance to extend its footprint in advanced media technology.

The terms of the agreement provide that Marvel shall transfer 51% of the issued share capital of IMT (which is valued at US$13,482,410, based on 1,348,241 ordinary voting shares at a price of US$10.00 per IMT share). In exchange, the Company shall issue a certain number of its shares of common stock, representing 19.5% of the issued and outstanding shares of CLNT, and a 5-year interest-free promissory note with a principal amount of US$11,482,410 to Marvel.

"We are excited about our collaboration with Dr. Herbert Ying Chiu Lee, Founder and CEO of IMT, as we explore the development of advanced technologies," said Parkson Yip, COO of Cleantech Solutions. "Dr. Lee has extensive experience in technology research and development management, particularly in knowledge management systems and 3D autostereoscopic displays. We believe Dr. Lee will make valuable contributions that will enable CLNT to enhance our technological capabilities and advance our products and services in a more effective and customer-driven manner."


Tuesday, November 14, 2017

Comments & Business Outlook

Third Quarter 2017 Financial Results

  • Revenue for the third quarter of 2017 declined by 33.4% to $2,629,000 compared to $3,946,000 for the same period in 2016.
  • Net loss for the third quarter of 2017 was $4,250,000, or $(2.14) per basic and diluted share, compared to net loss of $360,000, or $(0.28) per basic and diluted share, for the same period in 2016.  

"Cleantech Solutions had another active quarter, as we move forward with the development of our sharing economy platforms and related rental businesses," said Mr. Parkson Yip, COO of Cleantech Solutions. "Our portable mobile phone charger rental business is off to a solid start. We began generating revenue during the quarter and now have more than 20,000 chargers available for rent in major convenience store outlets in Hong Kong and Macau.  We are preparing to expand this business into other retail outlets along with new regions, such as India and Singapore.

"We are also excited about opportunities in the peer-to-peer courier market afforded by our recent acquisition of a 51% interest in Inspirit Studio.  Inter-city, last mile logistics is one of the latest sectors to be transformed by the sharing economy. We see strong potential for the Anyway app, which offers individuals and businesses a reliable network of on-demand couriers who will deliver packages within two hours throughout Hong Kong. We currently have over 2,000 couriers on the platform and aim to increase that to 12,000 over the next twelve months. We believe a true peer-to-peer, rental-based sharing economy will continue to disrupt traditional business and consumer markets over the next few years and are currently exploring additional merger and acquisition opportunities to position Cleantech Solutions for success in the future."

Cleantech Solutions' CEO, Mr. Jianhu Wu added "While our legacy dyeing and finishing business in China is facing headwinds, I am pleased with our progress in executing our growth strategies. Collaborative consumption holds enormous promise, and I am optimistic that our new business units will quickly gain traction in the market."       


Tuesday, November 7, 2017

Acquisitions

HONG KONG, Nov. 7, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT) today announced that its wholly-owned subsidiary, EC Power (Global) Technology Limited ("EC Power"), has entered into a memorandum of understanding with the shareholders of Shenzhen Xinsheng NewEnergy ("Xinsheng"), regarding a potential acquisition by EC Power of not less than 51% of  Xinsheng.

Based in Shenzhen, China, Xinsheng's primary business is designing and manufacturing lithium-ion aluminum case batteries. Utilizing advanced automated production equipment, Xinsheng has been delivering batteries for mobile phones and other digital equipment since 2008. Xinsheng's daily production capacity is 300,000 units.

"Our recently launched mobile phone power charger rental business is scaling up quickly and we are moving forward with our plans to aggressively expand into other areas," said Parkson Yip, COO of Cleantech Solutions. " So far, 20,000 portable power chargers are available for rent through major convenience store networks in Hong Kong and Macau, and demand has been increasing. We are preparing to expand our footprint into other types of retail outlets, including restaurants, hotels and shopping malls and are in discussions with potential partners to launch the service new regions around the world. 

"The worldwide mobile phone users expected to grow from 4.8 billion in 2017 to over 5.0 billion in 2019 and we expect demand for on-the-go mobile phone charging to remain strong. We are impressed with Xinsheng's production capabilities, advanced technology, and quality control processes. With quality and safety being top-of-mind for today's mobile phone users, having control over the production of the chargers will allow us to confidently deliver products to the market. "


Thursday, October 12, 2017

Comments & Business Outlook

HONG KONG, Oct. 12, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEI"), has entered into an exclusivity agreement with 3D Discovery Co. Limited ("3D Discovery"), regarding a potential acquisition by SEI of not less than 51% of 3D Discovery.

3D Discovery develops an interactive virtual tour technology which allows users to create interactive virtual spaces where people can get a first-hand experience of a physical place. Users can immerse themselves in these interactive virtual spaces as if they were there in person. "Our 3D scanning and modeling solution is already being used some of the world's major property agencies," said Michael Ho, co-founder of 3D Discovery. "By helping users walk through property interiors without spending valuable time traveling to different locations, users can shortlist their top property choices using online interactive virtual tours without actually going there."

"We are excited about 3D Discovery's scanning and modeling technology, which will allow everyone with a smartphone to create interactive virtual spaces," said Parkson Yip, COO of Cleantech Solutions. "This low-cost, automated and easy-to-use marketing tool can serve a broad range of industries, including property management, hospitality, tourism and event venues, among others.  We believe this will be a revolutionary technology that makes creating 3D virtual spaces as simple as taking photos."


Monday, October 9, 2017

Joint Venture

HONG KONG, Oct. 9, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT) today announced that its wholly-owned subsidiary, Sharing Economy Investment Limited ("SEI"), has entered into an exclusivity agreement with Inspirit Studio, regarding a potential acquisition by SEI of not less than 51% of Inspirit Studio.

Inspirit Studio develops and runs a sharing economy mobile platform called Anyway, which allows people to provide courier delivery services during their commuting times.  Anyway connects senders and freelance couriers who are willing to deliver parcels/letters for senders in return for income.  It is a low cost and fast delivery solution which allows freelance couriers to earn income by sharing their journeys.  "Anyway resolves problems that the current courier services have," said Kurt Tam, CEO of Inspirit Studio.  "With Anyway, senders can get speedy responses to contact with our freelance couriers who are in close proximity to the senders.  There is no limitation on service area and business hours.  With a five-month pilot program in Hong Kong, we have signed up over 2,000 freelance couriers, with over successful 6,000 transactions."

"Anyway is a true sharing solution that can also bridge with many sharing economy platforms that we are developing," said Parkson Yip, COO of Cleantech Solutions.  "We are excited to work with Anyway to further fine tune their solution and integrate with other sharing economy platforms. Peer-to-peer courier services can play a big role in communities where we often want helpers to run errands, or simply bring items home from other locations, without taking the extra time out of our schedules.  We look forward to making peer-to-peer courier services available globally."

According to iimediaResearch, the number of users participating in the peer-to-peer delivery sharing market in China has grown from 124 million in 2014 to 231 million in 2016, and experts expect it to grow to 353 million by 2018. Approximately 1.4 billion transactions were recorded in the first quarter of 2017.


Monday, September 25, 2017

Comments & Business Outlook

HONG KONG, Sept. 25, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT) today announced that its wholly-owned subsidiary, EC Power (HK), started providing mobile power charger rental services through major convenience store networks in Hong Kong and Macau.

The Company plans to provide mobile power chargers and have them available for rent at certain major convenience stores in Hong Kong and Macau, currently covering over 700 store locations in Hong Kong and over 40 locations in Macau.  The rental service allows customers to rent and return mobile power chargers at any of the convenience stores carrying the service.

"Today, the high usage of mobile devices means individuals will always have a need for mobile power chargers," said Parkson Yip, COO of Cleantech Solutions.  "We are excited to begin offering our mobile battery charger rental service throughout the major convenience store networks in Hong Kong and Macau.  We plan to expand the footprint of these services into other regions in the years to come.  We are also considering the acquisition of a battery production company in order to ensure appropriate quality, safety and availability of products to meet market demand. The Company may issue new fundraising plans to support the global expansion of our mobile power charger rental service, and resource acquisition plans to support the service."

According to iimediaResearch, the sharing mobile charger market in China is expected to reach total 104 million in total users in 2017, and grow to 246 million by 2019.


Wednesday, September 13, 2017

Comments & Business Outlook

WUXI, China, Sept. 13, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT) today announced that it has entered into Amendment No. 1 to the Exclusivity Agreement with ECrent Capital Holdings Limited ("ECrent"), a private company incorporated in British Virgin Islands focusing on developing and operating of a global rental platform to promote sharing economy across 30 countries and regions (the "Amendment"), which amends the Exclusivity Agreement dated June 11, 2017 by and between the Company and ECrent (the "Exclusivity Agreement").

Pursuant to the Amendment, the Company and ECrent agreed to extend the exclusivity period under the Exclusivity Agreement to a period of six months commencing from June 11, 2017.


Thursday, September 7, 2017

Comments & Business Outlook

HONG KONG, Sept. 7, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT) today announced that it has entered into exclusive discussions with ECoin Development Limited ("ECoin"), a private company incorporated in the British Virgin Islands, regarding the development and operation of a cryptocurrency system to support the development of a sharing economy ecosystem based on blockchain solutions.

"Most of the current sharing economy operators are controlled by large intermediaries. In most cases, the value produced by the crowd is not equally distributed to all those who have contributed to the value production. Instead, most of the profits are captured by the large intermediaries who operate the platforms," said Parkson Yip, COO of Cleantech, "By implementing blockchain technology into the sharing economy, there will no longer be a need for a central authority. The distributed ledger technology can provide smart contracts, digital identities linked to publicly-viewable user reputation systems, and digital currency payments, all of which alleviate the need for a central authority. The sharing community regulates the community."

The Company has established new business divisions to focus on the development of sharing economy platforms and related rental businesses. Cleantech Solutions believes a true peer-to-peer sharing economy based on rentals will take significant market share in both the business and consumer markets over the next few years. The Company has been exploring possible merger and acquisition opportunities that can bring to market more user-friendly platforms and convenient channels that allow people to rent what they need and make their lives easier.

The Company's board of directors plans to form a special committee consisting of independent directors to evaluate and negotiate, on behalf of the Company, the potential acquisition and/or business cooperation transaction(s) with ECoin. The special committee is also expected to engage independent financial and other advisors in connection with such potential transactions. The exclusive period is initially set for 6-months and may be extended by both parties.


Tuesday, August 15, 2017

Comments & Business Outlook

Second Quarter 2017 Financial Results

  • Revenue for the second quarter of 2017 declined by 5.3% to $3,712,000, compared to $3,918,000 for the same period in 2016.
  • Net loss for the second quarter of 2017 was $521,000, or $(0.30) per basic and diluted share, compared to net loss of $680,000, or $(0.61) per basic and diluted share, for the same period in 2016.

"In the second quarter of 2017, our legacy dyeing machine business experienced a slight downtick in revenue along with higher raw materials costs, which contributed to lower margins a loss for the quarter. Despite this, we closed the quarter with positive operating cash flow and a stronger cash position," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "In the near-term, we expect our dyeing machine business to remain relatively stable. At the same time, we are excited about the opportunities for long-term growth we are pursuing in the global technology and sharing economy markets."

Mr. Parkson Yip, Cleantech Solutions' COO commented, "Having joined Cleantech Solutions just a few months ago, I am pleased with our progress in executing our long-term growth initiatives, especially those geared toward collaborative consumption and have a positive impact on the environment. We recently announced our global sharing bike business, which addresses one of the fastest growing markets in the world today. Our solution will provide the most convenient way for users to enjoy the benefits of bike sharing wherever they go. We continue to add regional bicycle operators to our platform and look forward to releasing the app in the fourth quarter of 2017.

"We also see strong potential in the portable mobile phone charger rental business, particularly in China and other countries in South Asia, where billions of mobile phone users who embrace the sharing economy are seeking affordable and reliable charging methods. Our solution hopes to reduce the unnecessary increase of portable mobile phone chargers and at the same time provide immediate convenience to users when they are in need. We target to expand the portable mobile phone charger rental business across major markets in China and Asia within the coming quarter, and will begin penetrating across the globe before year end. I believe these new business initiatives will establish a foundation for the Company to return to growth via new economy models."


Monday, August 7, 2017

Comments & Business Outlook

HONG KONG, Aug. 7, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT) today announced that its wholly-owned subsidiary, EC Power (Global), has signed an agreement with ECoin Global Limited ("ECoin") for the purchase of ECoin redemption codes with an aggregate value of $50 million for total consideration of $20 million. The Company plans to resell the redemption codes in the form of ECrent gift cards at global locals through reseller channels, such as convenience stores. The Company's subsidiary has entered into agreement with InComm, a global pre-payment network and solution provider and will start selling the redemption codes with face values of HK$100, HK$300 and HK$500 at major convenience store networks in Hong Kong and Macau beginning in August 2017. Other international locations will follow.

Pursuant to the agreement, in exchange for redemption codes with an aggregate value of $50 million, the Company will pay ECoin total consideration of $20 million in four annual installments in an amount equal to 50% of the net sale proceeds of the redemption codes sold during each calendar year. The value of any unsold redemption codes at the expiration of the agreement will be paid to ECoin using shares of the Company's stock and not more than 19% of issued and outstanding ordinary shares of the Company.

"ECoin is now being fully utilized by ECrent, the world's largest online sharing platform, offering a safe and convenient prepaid payment option for consumers who want to participate in the worldwide sharing economy," said Parkson Yip, COO of Cleantech Solutions. "We are excited to partner with InComm to begin offering ECrent gift cards in major convenience stores in Hong Kong and Macau and plan to utilize ECoin in the other regions, as well as other sharing businesses and platforms we are currently developing, including our global sharing bike network."


Tuesday, July 18, 2017

Comments & Business Outlook

WUXI, China, July 18, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT) today announced that the Company's board of directors has formed a special committee comprised of three independent directors of the Company, Furen Chen, Xi Liu and Chengqing Tang (the "Special Committee") to evaluate and engage in discussions with ECrent Capital Holdings Limited ("ECrent") regarding potential business cooperation between the two companies and a potential acquisition by the Company of ECrent (collectively, the "Potential Transactions"). All three members of the Special Committee are unaffiliated with ECrent and not management members of the Company. The Special Committee has retained Duff & Phelps, LLC as its financial advisor to assist it in its review and evaluation of the Potential Transactions.

The Company cautions its shareholders and others considering trading its securities that neither the Special Committee nor the Board has set a definitive timetable for the completion of its evaluation of and discussion regarding the Potential Transactions or any other alternative transaction and the Company does not currently intend to announce development unless and until an agreement has been reached. There can be no assurances that any definitive agreement will be executed relating to the Proposed Transactions, or that the Proposed Transactions or any other transaction will be approved or consummated.


Wednesday, June 21, 2017

Notable Share Transactions

WUXI, China, June 21, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT) today announced that on June 14, 2017, the Company entered into a stock purchase agreement with certain accredited investors pursuant to which the investors purchased an aggregate of 290,000 shares of the Company's common stock at a purchase price of $3.00 per share.  The gross proceeds of approximately $870,000 from the private placement are expected to be used to develop various new business initiatives and for working capital purposes. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from such registration requirements.  The investors have piggyback registration rights until 90 calendar days after the shares are salable under Rule 144 promulgated under the Securities Act in the event that the Company proposes to file a registration statement under the Securities Act with respect to an offering of the Company's securities.


Tuesday, June 13, 2017

Joint Venture

WUXI, China, June 12, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT) today announced that it has entered into exclusive discussions with ECrent Capital Holdings Limited ("ECrent"), a private company incorporated in British Virgin Islands focusing on developing and operating of a global rental platform to promote sharing economy across 30 countries and regions.

The Company's board of directors plans to form a special committee consisting of independent directors to evaluate and negotiate, on behalf of the Company, the potential acquisition and/or business cooperation transaction(s) with ECrent. The special committee is also expected to engage independent financial and other advisors in connection with such potential transactions. The exclusive period is initially set for three months and may be extended by both parties.


Tuesday, May 16, 2017

Comments & Business Outlook

First Quarter 2017 Financial Results

  • Revenue for the first quarter of 2017 increased by 2.9% to $4,658,000, compared to $4,527,000 for the same period in 2016.
  • Net loss for the first quarter of 2017 was $146,000, or $(0.10) per basic and diluted share, compared to net loss of $844,000, or $(0.82) per basic and diluted share, for the same period in 2016.  

"In the first quarter of 2017, we saw a slight uptick in revenue as some of our customers who had temporarily ceased operations to comply with stricter environmental requirements last year resumed normal operations. Although higher raw material costs impacted margin and contributed to the slight loss for the quarter, we generated positive cash flow from operations and improved our cash position from the end of 2016," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We expect our revenues to remain relatively stable in the near future and are focused on improving the long-term outlook for our business. We continue to develop our next generation dyeing and finishing equipment based on the patented ozone-ultrasonic technology. We remain excited about our investment in Shengxin, a newly formed company that plans to build solar farms in Guizhou and Yunnan provinces, and are exploring opportunities to produce precision components for other high growth industries."


Tuesday, May 9, 2017

Comments & Business Outlook

HONG KONG, CHINA--(Marketwired - May 9, 2017) - YSK1860, an investment holding company with investments in different countries covering a wide range of sectors from traditional construction, real estate, trading to environmental and the Internet, today announced that on April 27, 2017, it acquired all of the shares of Cleantech Solutions International, Inc. ("Cleantech Solutions") ( NASDAQ : CLNT ) previously held by Cleantech Solutions' Chairman and CEO, Mr. Jinhua Wu, and his affiliates.

Pursuant to the terms of the agreement, YSK1860 purchased 416,249 shares of Cleantech Solutions stock from Mr. Wu and his affiliates for $970,000, or $2.33 per share. Mr. Wu and his affiliates decision to sell their shares was based on personal reasons, and Mr. Wu will retain his positions as Chairman and CEO of Cleantech Solutions going forward.

Commenting on the transaction Mr. Wu said, "The decision to sell these shares was personal, and I am pleased to have found an investor with the patience, vision and expertise to support Cleantech Solutions now and in the future. I look forward to staying on as CEO as we work on improving existing operations and exploring other areas with growth potential."

Dr. Thomas Chan, director of YSK1860, said "This investment in Cleantech Solutions demonstrates our trust and confidence in the US stock market and the Company for its long-term growth potential and opportunity to participate in the growing Chinese energy market. We also expect to leverage our investment expertise and connections in the technology, media and telecommunications sectors to support Cleantech Solutions in identifying new business opportunities in the future. We are confident in the current management's ability to put this year of transition behind us and focus on improving the long-term business outlook."


Monday, April 17, 2017

Comments & Business Outlook

WUXI, China, April 17, 2016 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT) today announced its financial results for year ended December 31, 2016.

"This was a year of transition for Cleantech Solutions.  With our forged rolled rings and related components and petroleum and chemical equipment segments continuing to perform poorly, we decided the best course of action was to exit these two segments.  Our core dyeing machine business felt the impact of China's difficult economic environment." said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We are now focused on improving the long-term outlook for the dyeing equipment business by developing next generation dyeing and finishing equipment based on our recently acquired ozone-ultrasonic patent technology.  However, we expect that our revenues will remain at or about its' current level in the near future, although declines are possible.  We are also excited about our recent investment in Wuxi Shengxin New Energy Engineering Co., Ltd. ("Shengxin"), a newly formed company that plans to build solar farms in Guizhou and Yunnan provinces."  

Full Year 2016 Results

Revenue for 2016 decreased by 40.1% to $17.4 million, compared to $29.0 million for 2015.  Our only source of revenue is our dyeing and finishing business, since our forged rolled rings and related products and petroleum and chemical equipment businesses are reflected as discontinued operations.  Revenues declined due to an anticipated slowdown in shipments of low-emission airflow dyeing machines as many companies in the dyeing industry had already upgraded to new models and did not require additional equipment, and orders for new low-emission airflow dyeing machines slowed down in 2016 as potential customers for our equipment did not have the financial resources or credit to purchase our equipment.  In addition, the business was also affected by government actions requiring textile manufacturers in Zhejiang province to temporarily cease operations in order to improve air quality ahead of the G20 Summit in Hangzhou during September 2016.

Gross profit for the 2016 was $2.5 million, compared to gross profit of $6.5 million for 2015.  Gross margin was 14.7% during 2016 compared to 22.4% for 2015. The decline in gross margin for 2016 was primarily attributable to reduced scale of operations, which is reflected in the allocation of fixed costs, mainly consisting of depreciation, to cost of revenues, and a slight increase in raw material costs.

Operating expenses increased by 77.4% to $3.9 million, compared to $2.2 million in 2015.  The increase was primarily due to higher bad debt expense, higher professional fees in the form of stock-based compensation and an increase in research and development expenses for the development of new dyeing and finishing products.

Loss from continuing operations was $1.4 million, or $(1.17) per basic and diluted share, compared to income from continuing operations of $3.0 million, or $3.04 per basic and diluted share in 2015.

Loss from discontinued operations (Refer to "Discontinued Operations" discussion below) was $10.3 million, or $(8.62) per basic and diluted share, which includes a $6.4 million loss on sales / disposal of discontinued operations.  This compares to loss from discontinued operations of $15.8 million, or $(16.01) in 2015.

Net loss for 2016 was $11.7 million, or $(9.79) per basic and diluted share, compared to net loss of $12.8 million, or $(12.97) per basic and diluted share, in 2015.  

Basic and diluted earnings per share were based on 1,189,940 and 985,156 weighted average shares outstanding, respectively, for the years ended December 31, 2016 and 2015. All share and per share information has been adjusted to reflect a 1-for-4 reverse stock split effective March 20, 2017.


Wednesday, November 16, 2016

Comments & Business Outlook

Third Quarter 2016 Financial Results

  • Revenue for the third quarter of 2016 decreased by 66.9% to $4.0 million, compared to $12.0 million for the same period of 2015.
  • Net loss for the third quarter of 2016 was $0.4 million, or $(0.07) per basic and diluted share, compared to net income of $0.9 million, or $0.23 per basic and diluted share, in the third quarter of 2015.

"In the third quarter of 2016, China continued to face economic headwinds along with limited availability of credit. This, combined with government actions requiring textile manufacturers in Zhejiang province to temporarily cease operations in order to improve air quality ahead of the G20 Summit held in Hangzhou this September of 2016, further suppressed demand in our core dyeing equipment segment resulting in fewer orders for the quarter. Furthermore, our forged rolled rings and related components saw another period of declining revenue and operating losses and we generated no revenue in the quarter from the petroleum and chemical equipment segment. In view of their performance thus far in 2016, we are evaluating the viability of both segments on an ongoing basis," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "During the quarter, we reached a settlement over a contract dispute with a former customer in the petroleum and chemical segment and made a payment of approximately $5.6 million to resolve this matter. With this issue behind us, we can now focus our attention on our core dyeing machine business and pursuing other strategic opportunities to help improve the long-term prospects of the Company."

Business Outlook

"Although we expect challenging conditions in China to persist, we are focused on improving the competitive position of our core dyeing machine business. Our R&D team is making progress on next generation dyeing and finishing equipment based on our recently acquired ozone-ultrasonic patent technology. This new equipment will reduce energy consumption and emissions even more than our existing environmentally friendly airflow dyeing machines, and we expect it to be well received by textile manufacturers in China and Southeast Asia when we introduce it next year," Mr. Wu concluded.


Tuesday, November 15, 2016

Comments & Business Outlook

Third Quarter 2016 Financial Results

  • Revenue for the third quarter of 2016 decreased by 66.9% to $4.0 million, compared to $12.0 million for the same period of 2015.
  • Net loss for the third quarter of 2016 was $0.4 million, or $(0.07) per basic and diluted share, compared to net income of $0.9 million, or $0.23 per basic and diluted share, in the third quarter of 2015.

"In the third quarter of 2016, China continued to face economic headwinds along with limited availability of credit. This, combined with government actions requiring textile manufacturers in Zhejiang province to temporarily cease operations in order to improve air quality ahead of the G20 Summit held in Hangzhou this September of 2016, further suppressed demand in our core dyeing equipment segment resulting in fewer orders for the quarter. Furthermore, our forged rolled rings and related components saw another period of declining revenue and operating losses and we generated no revenue in the quarter from the petroleum and chemical equipment segment. In view of their performance thus far in 2016, we are evaluating the viability of both segments on an ongoing basis," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "During the quarter, we reached a settlement over a contract dispute with a former customer in the petroleum and chemical segment and made a payment of approximately $5.6 million to resolve this matter. With this issue behind us, we can now focus our attention on our core dyeing machine business and pursuing other strategic opportunities to help improve the long-term prospects of the Company."

Business Outlook

"Although we expect challenging conditions in China to persist, we are focused on improving the competitive position of our core dyeing machine business. Our R&D team is making progress on next generation dyeing and finishing equipment based on our recently acquired ozone-ultrasonic patent technology. This new equipment will reduce energy consumption and emissions even more than our existing environmentally friendly airflow dyeing machines, and we expect it to be well received by textile manufacturers in China and Southeast Asia when we introduce it next year," Mr. Wu concluded.


Monday, September 12, 2016

Comments & Business Outlook

MHH ($7.50) - Long time GeoBargain Mastech Holdings changes name to Mastech Digital.  Quotes from management:

"Our new name, Mastech Digital, reflects our ongoing transformation into a digital technologies company.  While we will continue to offer IT staffing services, we have added focus and capabilities in staffing around the digital technologies.  Additionally, we have started offering new project-based digital transformation services, beginning with Salesforce.com, SAP HANA and Digital Learning.  Over the next several quarters we expect to enrich this portfolio of offerings further to address the wider digital transformation needs of our existing and prospective customers."


Monday, August 15, 2016

Comments & Business Outlook

Second Quarter 2016 Financial Results

  • Revenue for the second quarter of 2016 decreased by 73.3% to $4.1 million, compared to $15.2 million for the same period of 2015.
  • Net loss for the second quarter of 2016 was $0.7 million, or $(0.15) per basic and diluted share, compared to net income of $1.2 million, or $0.31 per basic and diluted share, in the second quarter of 2015.

"In the second quarter of 2016, challenging economic conditions in China persisted, marked by a continuous decline in oil prices and limited availability of credit in China. Our forged rolled rings and related components segment suffered another quarter of sharp revenue declines and operating losses, we did not generate any revenues from our petroleum and chemical equipment segment and we currently have no orders for this segment. We continue to evaluate the long-term viability of these two segments on an ongoing basis. The dyeing equipment segment, which accounted for 96% of total revenue in the quarter, was also impacted by the challenging economic conditions, resulting in fewer orders during the quarter. In addition, our business was also affected by government actions requiring textile manufacturers in Zhejiang province to temporarily cease operations in order to improve air quality ahead of the G20 Summit which is scheduled for Hangzhou this September, which further suppressed demand," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "Although we expect our core dyeing machine business to face challenging conditions in the near term, we are working hard to strengthen our product offering and position this business for long-term success."

Business Outlook

"We continue to evaluate the viability of the our forged rolled rings and related components segment and our petroleum and chemical equipment segment on an ongoing basis, and may exit these businesses if we determine that it will be unlikely we can operate them profitably. Meanwhile, we are focused on reinvigorating our core dyeing machine business and improving our competitive position in this market. Earlier this month, we purchased a ten-year right to patent technology from a third party for approximately $2.5 million covering ozone-ultrasonic textile dyeing equipment. We are currently utilizing this patent technology to develop next generation dyeing and finishing equipment which we hope to introduce in the second half of 2017. This new equipment will be designed to reduce energy consumption and emissions even more than our existing environmentally friendly airflow dyeing machines, and we believe it will appeal to textile manufacturers in China as well as Southeast Asia," Mr. Wu concluded.


Monday, July 18, 2016

Deal Flow

260,000 Shares

 

Cleantech Solutions International, Inc.

 

Common Stock

 

Pursuant to this prospectus supplement and the accompanying prospectus, we are offering an aggregate of 260,000 shares of our common stock directly to investors pursuant to a stock purchase agreement, dated July 17, 2016, at a price of $1.04 per share.

 

Our common stock is currently traded on the NASDAQ Capital Market under the symbol “CLNT.” As of the date of this prospectus supplement, the aggregate market value of our outstanding common stock held by non-affiliates was approximately $3,700,000, based on 4,976,486 shares of outstanding common stock, of which 3,511,553 shares are held by non-affiliates, and a per share price of $1.04, which was the closing price of our common stock on July 15, 2016. During the past 12 calendar month period that ends on and includes the date of this prospectus supplement, we have offered and sold 460,000 shares of common stock pursuant to General Instruction I.B.6 of Form S-3.


Monday, June 27, 2016

Deal Flow

Item 1.01 Entry Into a Material Definitive Agreement.

On June 24, 2016, the Company entered into a stock purchase agreement pursuant to which the Company sold 230,000 shares of common stock at a purchase price of $1.10 per share. The shares were sold pursuant to a prospectus supplement dated June 24, 2016 to the Company’s registration statement on Form S-3, File No. 333-188142. The Company did not engage a placement agent with respect to the sale. The net proceeds received by the Company from the sale of the shares were approximately $250,000. The Company will use the proceeds for working capital and other general corporate purposes. A copy of the form of stock purchase agreement is filed as Exhibit 99.1.


Friday, June 17, 2016

Deal Flow

Item 1.01 Entry into a Material Definitive Agreement

On June 13, 2016, Wuxi Huayang Dyeing Machinery Co., Ltd., a variable interest entity whose financial statements are included in the Company’s consolidated financial statements, entered into an agreement with Chengdu Textile College pursuant to which Huayang Dyeing will make a one-time payment of RMB 16.0 million, which is approximately $2,500,000, to Chengdu Textile College for which it will receive title to a utility model patent covering ozone-ultrasonic textile dyeing equipment. Patent No. 201520850086.7 was issued on April 20, 2016 by China’s State Intellectual Property Office and is valid for ten years from the date of issuance.


Friday, June 10, 2016

Deal Flow

Item 1.01 Entry Into a Material Definitive Agreement.

On June 6, 2016, the Company entered into a stock purchase agreement pursuant to which the Company sold 230,000 shares of common stock at a purchase price of $1.00 per share. The shares were sold pursuant to a prospectus supplement dated June 7, 2016 to the Company’s registration statement on Form S-3, File No. 333-188142. The Company did not engage a placement agent with respect to the sale. The net proceeds received by the Company from the sale of the shares were approximately $225,000. The Company will use the proceeds for working capital and other general corporate purposes. A copy of the form of stock purchase agreement is filed as Exhibit 99.1.


Tuesday, May 17, 2016

Comments & Business Outlook

First Quarter 2016 Financial Results

  • Revenue for the first quarter of 2016 decreased by 68.6% to $4.9 million, compared to $15.6 million for the same period of 2015.
  • Net loss for the first quarter of 2016 was $0.8 million, or $(0.21) per basic and diluted share, compared to net income of $1.2 million, or $0.32 per basic and diluted share, in the first quarter of 2015.  

"In the first quarter of 2016, challenging economic conditions, falling steel prices, a continuous decline in oil prices and limited availability of credit in China presented numerous challenges for our business. Our forged rolled rings and related components segment and petroleum and chemical equipment segment both experienced significant reductions in sales and generated losses during the quarter. Given the sharp declines in revenue and future outlook, we are currently evaluating the long-term viability of these two segments on an ongoing basis. The dyeing equipment segment, which accounted for 92% of total revenue in the quarter, experienced softer demand for our low-emission airflow dyeing machines although it remained profitable," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We continue working with our strategic advisors to assist us in implementing a new business plan with the objective of improving our long-term growth."

Business Outlook

"We are continuing to evaluate the viability of the our forged rolled rings and related components segment and our petroleum and chemical equipment segment on an ongoing basis, and may exit these businesses if we determine that it will be unlikely we can operate them profitably. In our core dyeing equipment business, we are focused on re-engaging with our existing clients, exploring opportunities to expand into Southeast Asia and introducing newer, more energy-efficient and environmentally-friendly models that we believe will entice textile manufacturers to upgrade their equipment. We continue working with our strategic advisors to develop a new business plan focused on long-term growth," Mr. Wu concluded.    


Thursday, March 31, 2016

Comments & Business Outlook

Fourth Quarter 2015 Financial Results

  • Revenue for the fourth quarter of 2015 decreased by 67.4% to $6.7 million, compared to $20.5 million for the same period of 2014.
  • Net loss for the fourth quarter of 2015 was $16.1 million, or $(4.10) per basic and diluted share, compared to net loss of $3.0 million, or $(0.79) per basic and diluted share, in the fourth quarter of 2014.  

The Company experienced a significant decline in sales of forged rolled rings and related components to customers in the wind power and other industries and to dyeing and finishing equipment customers compared to the comparable quarter last year. Furthermore, sales of equipment to customers in the petroleum and chemical industries declined due to a contract dispute with its largest customer.

"When we entered 2015, we were optimistic about the opportunities for our company to manufacture parts and equipment for customers in the petroleum and chemical industries, due in large part to a sizable contract with a large state-owned company for a major chemical project in Xinjiang. In December 2015, this customer, which accounted for 13% of total revenue for 2015, claimed that we were delinquent in the delivery of products and those products that were delivered did not meet the required quality standards.  As a result of this dispute, we recorded approximately $10.3 million in non-cash expenses such as allowance for doubtful accounts, reserve for obsolete inventories, an accrual for loss from sales contract dispute and an impairment of equipment used in connection with the contract, that significantly impacted our financial results.  We are still in discussions with this customer, but cannot predict the results of these discussions," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

"Furthermore, challenging economic conditions and limited availability of credit in China continued to impact demand for forged rolled rings and related products, resulting in minimal sales and an operating loss for this segment during the fourth quarter of 2015.  Our dyeing equipment segment also experienced softer sales during the quarter, although it remained profitable and generated significant cash flow for the year.  While our performance was disappointing, our financial condition remains strong.  We have engaged strategic advisors to assist us in implementing a new business plan with the objective of improving our long-term growth," Mr. Wu said.

Business Outlook

"In the year ahead, we are evaluating the viability of the our forged rolled rings and related components segment and our petroleum and chemical equipment segment.  If we determine that it is not likely that we will be able to operate these segments profitably, we may discontinue operating in these two segments. However, we have not yet completed our evaluation at this time.  We believe that the recently signed Trans-Pacific Partnership will provide opportunities to expand our core dyeing equipment business into southeast Asia as textile manufacturers increase production and build facilities in the region.  At the same time, we are working with our strategic advisors to develop a new business plan focused on long-term growth," Mr. Wu concluded.    


Thursday, March 3, 2016

Deal Flow

Item 3.02.    Unregistered Sale of Equity Securities.

On March 1, 2016, the board of directors of Cleantech Solutions International, Inc. (the “Company”) ratified one-year agreements with FirsTrust China Ltd. dated as of January 13, 2016 and FCJ Investments, Inc. dated as of January 1, 2016, pursuant to which FirsTrust and FCJ agreed to perform services relating to preparing and implementing new business plans for the Company with the objective of improving the Company’s long-term growth, which may include the evaluation of potential strategic relationships for the Company, and authorized the issuance, as consideration for such services, of 400,000 shares of common stock to FirsTrust and 200,000 shares of common stock to FCJ. The Company issued 200,000 shares of common stock to FirsTrust and 100,000 shares of common stock to FCJ on March 3, 2016, and agreed to issue the balance of the shares in July 2016 provided that the agreements are in force on such date. The issuance of the shares to FirsTrust is exempt from registration pursuant to Regulations S of the SEC, and the issuance of the shares to FCJ is exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, as a transaction not involving a public offering. No brokerage fee or commission was paid in connection with such stock issuances.


CFO Trail

Item 5.02.    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officer; Compensatory Arrangements of Certain Officers.

On February 26, 2016, Adam C. Wasserman resigned as the Company’s chief financial officer. Mr. Wasserman’s resignation did not result from any disagreement with the registrant on any matters relating to the registrant’s operations, policies or practices. Mr. Wasserman will continue as a consultant with the Company assisting with the transition to the new chief financial officer and to provide training and other professional services financial services to the Company as needed.

On March 1, 2016, the board of directors appointed Wanfen Xu as its chief financial officer. Ms. Xu, age 35, previously served as the registrant’s chief financial officer from March 14, 2012 through December 12, 2012, and from December 2012 until February 2016, she served as the financial controller of Wuxi Huayang Electrical Power Equipment Co., Ltd. (“Electrical”) and Wuxi Huayang Dyeing Machinery Co., Ltd. (“Dyeing”), which are variable interest entities whose financial statements are included in the Company’s consolidated financial statements. Ms. Xu also served as the financial controller of Electrical and Dyeing from 2009 to 2011. Ms. Xu receives compensation at the annual rate of RMB120,000, which is equivalent to approximately $18,300.


Friday, November 13, 2015

Comments & Business Outlook
Third Quarter 2015 Financial Results
  • Revenue for the third quarter of 2015 decreased by 40.6% to $12.0 million, compared to $20.2 million for the same period of 2014.
  • Net income for the third quarter of 2015 was $0.9 million, or $0.23 per basic and diluted share, compared to net income of $2.7 million, or $0.70 per basic and diluted share, in the third quarter of 2014.   

"In the third quarter of 2015, challenging economic conditions, falling steel prices and limited availability of credit in China presented numerous challenges for our business. Our forged rolled rings and related products segment in particular experienced a significant reduction in sales and operated at a loss during the quarter. In our dyeing equipment segment, we experienced softer demand for our low-emission airflow dyeing machines as many of our customers already upgraded to newer models last year and much of our remaining customer base does not have the ability to make significant capital expenditures at this time. We continue to deliver parts and equipment under our contract with a large state-owned enterprise for a major chemical project in Xinjiang, which helped offset the decreases in revenue from our other two segments," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "Despite these difficult conditions, we remained profitable and our financial condition is strong." 


Friday, August 14, 2015

Comments & Business Outlook

Second Quarter 2015 Results

Revenue for the second quarter of 2015 decreased by 13.3% to $15.2 million, compared to $17.5 million for the same period of 2014.

Net income for the second quarter of 2015 was $1.2 million, or $0.31 per basic and diluted share, compared to net income of $2.2 million, or $0.61 per basic and diluted share, in the second quarter of 2014.

"In the second quarter of 2015, economic conditions in China impacted capital spending, particularly in our forged rolled rings and related products business, which saw a significant drop in revenue during the quarter. Sales in our dyeing equipment segment also declined, as concerns regarding the ability of some of our customers to make timely payments caused us to delay shipment of certain orders. We also experienced softer demand for our low-emission airflow dyeing machines, as many of our customers upgraded to new models last year," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "Sales to customers in the petroleum and chemical equipment, particularly the major contract we received from a large state-owned enterprise for parts and equipment to be used on a major chemical project in Xinjiang, made a meaningful contribution to revenue and partially offset the sales decline in other segments. We remained profitable, generated positive cash flow and closed the quarter with a stronger balance sheet."


Wednesday, June 10, 2015

Comments & Business Outlook

WUXI, China, June 10, 2015 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT), a manufacturer of metal components and assemblies used in various clean technology and manufacturing industries and textile dyeing and finishing machines, and, since the first quarter of 2015, the petroleum and chemical industries, today announced that it will showcase its line of newly developed air-fluid, dual-use dyeing machines at the upcoming 17th International Exhibition on Textile Industry, booth #W4J08, on June 15-18 in Shanghai, China.

Introduced to the market early this year, the Company's new air-fluid, dual-use dyeing machines use both air flow and fluid flow in the dyeing process.  The new technology configuration allows users to customize the dyeing process according to the specific type of textile across a wider range of textiles than was possible on earlier generation machines. Equipped with a series of specialized and patented components, the machines are designed to enable greater color consistency and a reduction in defects.   Air-fluid, dual-use dyeing technology is a significant improvement on traditional high-temperature, high-pressure dyeing.  The system reduces the use of water, power, and steam additives while shortening dyeing time by 1 to 2 hours.

The Company has previously announced a 12 unit, $1.1 million order from a leading weaving and dyeing enterprise based in Shaoxing, China. Delivery of the units began in May.

"We are excited to introduce our leading-edge air-fluid, dual-use dyeing machines to a broader range of potential customers at this prominent industry event," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We are confident that with advanced technology, differentiated functionality, outstanding performance and our well-known and respected brand, the new air-fluid, dual-use dyeing machines will attract interest from textile manufacturers worldwide. We hope to further open up our domestic market and begin to develop our international market at this major exhibition."

Beginning in 1984, the International Exhibition on Textile Industry (ShanghaiTex) is a biennial event hailed as one of the most important gatherings of industry professionals and a major trading and technology exchange platform in the textile industry. The previous meeting (ShanghaiTex 2013) covered an area of 103,500 square meters (approximately 1.1 million square feet), featuring more than 1,000 leading international exhibitors from 25 countries and regions to showcase the best in textile machinery and the latest textile products from around the world. The 4-day Expo attracted over 53,000 industry visitors in 2013.

ShanghaiTex 2015 will focus on the most innovative and automated textile technology and its application across areas including fashion and apparel, footwear, functional wear, interior auto parts, medical care, health protection, agriculture, and construction, all of which are looking to technology and innovation from machinery manufacturers to help them save costs and improve efficiency and competitiveness as their markets address the challenges and opportunities ahead.


Tuesday, March 31, 2015

Comments & Business Outlook

Fourth Quarter 2014 Financial Results

  • Revenue for the fourth quarter of 2014 decreased by 9.9% to $20.5 million, compared to $22.8 million for the same period of 2013.
  • Non-GAAP adjusted net income, which adds back to net income include the impairment loss on ESR equipment and a reduction in previously recorded deferred tax assets related to the ESR equipment, was $2.0 million, or $0.51 per basic and diluted share, compared with $4.7 million, or $1.34 per basic and diluted share, in the fourth quarter of 2013.

"We recorded modest revenue growth in 2014, driven by our dyeing and finishing equipment business due to our marketing efforts and the effects of Chinese government's policies that are encouraging textile manufacturers to upgrade equipment with more environmentally friendly models. Net income was impacted by a $3.8 million impairment loss related to equipment held for sale and a $1.2 million reduction of previously recorded deferred tax assets related to that equipment. We generated positive cash flow from operations and closed the year with $7.8 million in cash and equivalents. We introduced new styles of dyeing machines and upgraded our facilities to serve customers in the oil and gas and petrochemical industries, allowing us to obtain several purchase orders that will contribute to our revenue growth in 2015," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

Business Outlook

"We expect revenue growth to continue in 2015, driven primarily by sales of forged products and components to customers in the petroleum and chemical industries. We are pleased that after receiving the certifications needed to serve these markets in mid-2013, we now have several orders in hand that will generate meaningful revenue in 2015. We see room for additional growth as a number of our customers in the petroleum and chemical industries are benefiting from anticipated closer energy trade relations between Russia and China," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We also expect a significant revenue contribution from our dyeing equipment segment as textile manufactures continue to upgrade equipment in an effort to comply with China's more aggressive pollution control requirements. We are hopeful our new air-fluid, dual-use dyeing machine will be well received at the upcoming Shanghai International Textile Industry Expo in June 2015."


Thursday, January 15, 2015

Contract Awards

WUXI, China, January 15, 2015 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies used in in various manufacturing industries, including clean technology, textile dyeing and finishing machines, today announced that its operating company, Wuxi Huayang Dyeing Machinery Co., Ltd. ("Huayang Dyeing"), a variable interest entity, received a purchase order in January for its newly developed air-fluid, dual-use dyeing machine from a leading weaving and dyeing enterprise based in Shaoxing, China.

The Company's new air-fluid, dual-use dyeing machine uses both air flow and fluid flow in the dyeing process. It allows users to customize the dyeing process according to the specific type of textile. It is equipped with a series of specialized and patented components, including nozzles, cloth wheels and cloth spreaders, which help ensure greater color evenness and reduce defects. It can be used on a wider range of textiles and uses 60% to 70% less water, about 30% less power and 40% to 50% less steam than traditional models of high-temperature, high-pressure dyeing machines and reduces the use of additives by about 50% while shortening dyeing time by 1 to 2 hours.

Pursuant to the purchase order, Huayang Dyeing will provide the customer 12 units of the new air-fluid, dual-use dyeing machine. Huayang Dyeing received an advance payment of approximately RMB0.7 million ($0.1 million), and will receive an additional RMB5.6 million ($0.9 million) upon delivery, and will receive the remaining RMB0.7 million ($0.1 million) within seven months of delivery provided that all products are installed, tested and running smoothly. The Company expects to begin delivering the equipment in May 2015.

"We are excited to receive this purchase order from one of our long-time customers, who has been testing prototypes of our new air-fluid, dual-use dyeing machine over the last six months and we believe that its satisfaction with the quality, energy efficiency and environmental benefits are reflected in this purchase order," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "As the Chinese government continues to enforce stricter emission standards and the adoption of energy-efficient textile processing and production equipment, we are very optimistic about market demand for this new dyeing machine in the Chinese market."

Cleantech Solutions plans to showcase its new air-fluid, dual-use dyeing machine at the 17th Shanghai International Textile Industry Expo, one of the largest exhibitions for the textile and garment industry in Asia that will be held from June 15 to June 18, 2015 in Pudong, Shanghai, China. The Company hopes to attract more customers from both domestic and international markets, especially from Southeast Asia where textile manufacturers traditionally purchase expensive imports from Europe and Hong Kong.


Monday, January 5, 2015

Contract Awards

WUXI, China, January 5, 2015 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies used in in various manufacturing industries, including clean technology, textile dyeing and finishing machines, and oil and gas refineries, today announced that its operating company, Wuxi Huayang Heavy Industries, Co., Ltd. ("Heavy Industries"), formerly known as Wuxi Huayang Electrical Power Equipment Co., Ltd., a variable interest entity whose financial results are consolidated with those of the Company, received a purchase order in late December for a purchase price of RMB80.5 million (approximately $13.0 million) from a large state-owned enterprise based in Xinjiang, China. The purchase order covers parts and equipment including washing, distillation, purifying, dehydration, refining and other columns, along with storage containers, heat exchangers and carbonation reactors that will be used in a large scale project that transforms glycol calcium carbide furnace tail gas into ethylene glycol.

Pursuant to the purchase order, Heavy Industries received an advance payment of approximately RMB8.1 million ($1.3 million), or 10% of the purchase price, will receive an additional 80% of the purchase price upon delivery, and will receive the remaining 10% within six months of delivery provided that there are no technical problems with the equipment. The Company expects to begin delivering the equipment in April 2015.

"We are excited to start the year by expanding our geographic footprint into Xinjiang. We believe that this new order from a large state-owned enterprise for a major chemical project reflects our growing reputation as a high quality supplier of precision products for manufacturers in a broad range of industries throughout China," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Thursday, December 11, 2014

Comments & Business Outlook

Item 7.01 Regulation FD Disclosure


On December 10, 2014, the Company issued a press release announcing that the Company has received two purchase orders from equipment for the wind power industry. The total purchase price of the equipment from the two purchase orders is approximately RMB44.9 million (approximately $7.3 million). A copy of the press release is included as Exhibit 99.1.


Wednesday, December 10, 2014

Contract Awards

WUXI, China, December 10, 2014 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies used in in various manufacturing industries, including clean technology, textile dyeing and finishing machines, and oil and gas refineries, today announced that it received two purchase orders in early December for a total purchase price ofRMB44.9 million (approximately $7.3 million) from customers in the wind power industry.

Pursuant to one of the purchase orders, Cleantech Solutions will supply shafts to a major wind turbine and electric machinery manufacturer in China, for a purchase price of approximately RMB27.0 (approximately $4.4 million). Cleantech Solutions has received an advance payment of approximately RMB5.5 million (approximately $0.9 million), or 20% of the purchase price, will receive an additional 70% upon delivery, and will receive the remaining 10% within three months after delivery provided that there are no technical problems with the equipment. The Company expects to deliver the equipment in May 2015.

Pursuant to the second purchase order, Cleantech Solutions will supply gearbox casings for wind power equipment to one of the largest industrial blower manufactures in China, for RMB17.9 million (approximately $2.9 million). Cleantech Solutions has received an advance payment of approximately RMB3.6 million (approximately $0.6 million), or 20% of the purchase price, will receive an additional 70% upon delivery, and will receive the remaining 10% within three months after delivery provided that there are no technical problems with the equipment. The Company expects to deliver the equipment in March 2015.

"We believe that the recent push by China's leadership to support wind power spurred these orders. AlthoughChina's wind power industry still has significant issues to address in terms of system integration, we are cautiously encouraged by the government's support and hope that it will drive additional demand for our products," said Mr.Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Friday, December 5, 2014

Comments & Business Outlook

Item 7.01 Regulation FD Disclosure


On December 2, 2014, the Company issued a press release announcing that the Company has received a purchase order dated November 28, 2014, from a subsidiary of China Petroleum and Chemical Corporation, known as Sinopec, for parts and equipment, including heat exchangers, coolers, reboilers, condensers and prefractionating columns for use in offshore oil refineries. The total purchase price of the equipment is approximately RMB13.3 million (approximately $2.2 million). A copy of the press release is included as Exhibit 99.1.

On Friday, December 5, 2014 (China time), the Company held an investor day at its two manufacturing facilities in Wuxi City, Jiangsu Province, China. As part of the presentation, Mr.Jianhua Wu, chairman and chief executive officer, Mr. Adam Wasserman, chief financial officer, and Mr. Ryan Hua, vice president of operations made presentations about the Company's production processes and product development initiatives and provided updates on the latest developments in its markets and business generally. A copy of the presentation and other materials used at the investor day are filed as Exhibits 99.2 and 99.3.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.


Tuesday, December 2, 2014

Contract Awards

WUXI, China, December 2, 2014 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies used in various clean technology and manufacturing industries and textile dyeing and finishing machines, today announced that on November 28, 2014 it received a purchase order for a total purchase price of RMB13.3 million (approximately $2.2 million) from a subsidiary of China Petroleum and Chemical Corporation ("Sinopec"). The purchase order covers parts and equipment including heat exchangers, coolers, reboilers, condensers and prefractionating columns used in offshore oil refineries.

Pursuant to the purchase order, Cleantech Solutions has received an advance payment of approximately RMB2.0 million ($0.3 million), or 15% of the purchase price, will receive an additional 75% of the purchase price upon delivery, and will receive the remaining 10% within three months of delivery subject to successful installation and testing at the customer's site. The Company expects to deliver the equipment in March 2015.

"This purchase order represents the first order we have received from the oil and gas industry since we became a certified supplier of parts and equipment to Sinopec and China National Petroleum Corporation ("CNPC"). We are pleased to extend our business into a new end market with favorable prospects for growth driven by environmental imperatives that encourage petroleum companies to reduce emissions and upgrade their facilities. We are hopeful that this order will be the first of many significant orders from the oil and gas industry as our reputation for supplying precision products to this sector grows," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Friday, November 14, 2014

Comments & Business Outlook
Third Quarter 2014 Financial Results
  • Revenue for the third quarter of 2014 increased by 11.2% to $20.2 million, compared to $18.2 million for the same period of 2013.
  • Net income for the third quarter of 2014 was $2.7 million, or $0.70 per basic and diluted share, compared to$2.1 million, or $0.61 per basic and diluted share, in the third quarter of 2013.

"In the third quarter, we saw a solid increase in revenue from the third quarter of 2013, driven by our dyeing and finishing equipment segment. We believe our reputation for producing high quality, energy efficient machines that allow textile manufacturers to meet the Chinese government's more aggressive pollution control requirements drove higher sales volumes of our patented low emission airflow dyeing machines and new garment washing machines for denim. This was offset by slight declines in sales of forged products and components to customers in the wind power and other industries. Despite a slight decline in gross margin, our bottom line increased year-over-year and we generated strong cash flow to support our future growth," said Mr.Jianhua Wu, Chairman and CEO of Cleantech Solutions.

Business Outlook

"As we approach year end, we expect growth in our dyeing equipment business to continue, driven by the Chinese government's enforcement of anti-pollution policies for textile manufacturers. Order flow for the most updated models of our low emission airflow dyeing machines and our new garment washing machines for denim are strong. We are also optimistic about opportunities to use our upgraded facilities to enable us to offer products to potential customers in the power equipment and oil and gas industries, for whom we developed prototypes during 2014," said Mr. Wu.


Tuesday, October 28, 2014

Comments & Business Outlook

WUXI, China, Oct. 28, 2014 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT), a manufacturer of metal components and assemblies used in various clean technology and manufacturing industries and textile dyeing and finishing machines, today announced that today announced that the Company recently received two new patents.

The patents (Patent Nos. ZL 2013 1 0004772.8 and ZL 2013 1 004736.1) cover components of the hot air circulation system of the Company's low emission air flow dyeing machines. The Company believes that the hot air circulation system helps to enhance the machines' ability to produce higher quality textiles with a better look and feel. The patents were issued by the State Intellectual Property Office of the People's Republic of China to the Company's affiliate, Wuxi Huayang Dyeing Machinery Co., Ltd. ("Dyeing"), on September 24, 2014. The patents provide Dyeing with the exclusive use of the system components in dyeing equipment for a period of 20 years.


Thursday, August 14, 2014

Comments & Business Outlook

Second Quarter 2014 Financial Results

  • Revenue for the second quarter of 2014 increased by 1.8% to $17.5 million, compared to $17.2 million for the same period of 2013.
  • Net income for the second quarter of 2014 was $2.2 million, or $0.61 per basic and diluted share, compared to $2.3 million, or $0.79 per basic and diluted share, in the second quarter of 2013.

"In the second quarter, we saw a modest increase in revenue from the second quarter of 2013, were profitable and generated strong operating cash flow. Sales of our low emission airflow dyeing machines, which enable textile manufacturers to meet the Chinese government's more aggressive pollution control requirements, grew at a more tempered pace this quarter as we operated near full utilization and are in the process of bringing additional capacity online. In our forged products business, we saw an uptick in sales to customers in the wind power industry, which was offset by a decline in sales to customers in other industries," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

Business Outlook

"We believe our dyeing equipment business will continue to perform well as textile manufacturers upgrade to lower emission machinery in response to new environmental directives from the Chinese government, although we may see some near-term fluctuation in demand as the industry consolidates and the growth rate has declined in second quarter of 2014. Order flow for our low emission airflow dyeing machines remains strong and we are optimistic about our new garment washing machine for denim. We are looking to diversify into new areas for our forged rolled rings and related products. We are currently developing components for industrial blowers for the power equipment industry which we believe can hold strong growth potential, although we have not generated any revenue from these products to date," said Mr. Wu.


Tuesday, July 22, 2014

Deal Flow

Item 3.02 Unregistered Sales of Equity Securities.


This Form 8-K/A amends and restates the information set forth in the Form 8-K filed on June 4, 2014 to correct the date on which Mr. Wu advanced the funds.

On June 2, 2014, Mr. Jianhua Wu, chairman of the board and chief executive officer of the Company, and his wife, Ms. Lihua Tang, purchased a total of 290,984 shares of common stock at a purchase price of $5.58 pursuant to a stock purchase agreement dated June 2, 2014. The purchase price for the shares was ¥10,000,000, which is the equivalent of $1,623,693. Mr. Wu, on his own behalf and on behalf of Ms. Tang, had previously advanced to the Company ¥10,000,000 on May 29, 2014. The proceeds of the sale were advanced to Wuxi Huayang Dyeing Machinery Co., Ltd., a variable interest entity whose financial statements are consolidated with those of the Company, for the purpose of funding the expansion of the Company’s dyeing machine business in anticipation of increased business from that business line.

The purchase price per share was the highest closing price per share during the period from the date of Mr. Wu advised the board of his proposal to advance the funds, which was May 2, 2014, until June 2, 2014, when the Company’s independent directors approved the terms of the stock sale.

The shares were issued pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended, pursuant Regulation S of the Securities and Exchange Commission thereunder. No brokers or other fees were paid in connection with the stock sale.


Wednesday, June 4, 2014

Notable Share Transactions

WUXI, China, June 4, 2014 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (CLNT), a manufacturer of metal components and assemblies used in various clean technology and manufacturing industries and textile dyeing and finishing machines, today announced that on May 2, 2014, Cleantech Solutions' Chairman and CEO Mr. Jianhua Wu, on his behalf and on behalf of his wife, Lihua Tang, advanced RMB10,000,000 (approximately $1,623,693) to the Company for the purpose of providing funding for expansion of the Company's dyeing machine business.  On June 2, 2014, the Company entered into a stock purchase agreement with Mr. Wu and Ms. Tang, pursuant to which the Company sold a total of 290,984 shares to Mr. Wu and Ms. Tang for $5.58 per share, which represents the highest closing price of the Company's stock during the period from the date of Mr. Wu's advance and June 2, 2014, when the stock purchase was approved by the independent members of the Company's Board of Directors. The total purchase price, which was paid in RMB, was equivalent to $1,623,693.

"This investment in Cleantech Solutions reflects my commitment to the Company and enthusiasm for its future. We believe that the Chinese government's announced aggressive stance on pollution control is encouraging textile manufacturers to upgrade their equipment to more environmentally friendly models. We continue to see strong order flow for our low emission airflow dyeing machines and are expanding capacity to meet the anticipated demand."

The Company did not engage a placement agent or a finder with respect to this transaction. The shares are restricted securities.


Thursday, May 22, 2014

Comments & Business Outlook

First Quarter 2014 Financial Results

  • Revenue for the first quarter of 2014 increased 27.0% to $17.6 million, compared to $13.9 million for the same period of 2013.
  • Net income for the first quarter of 2014 was $2.4 million, or $0.68 per basic and diluted share, compared to $1.6 million, or $0.56 per basic and diluted share, in the first quarter of 2013.

"We began the year on solid footing, generating profitable growth and strong operating cash flow. Our dyeing machine segment continues to see strong momentum as an increasing number of textile manufacturers are purchasing our low-emission airflow dyeing machines and other equipment in view of the Chinese government's more aggressive pollution control requirements in the dyeing industry. In our forged products business, sales to customers in the wind power industry were relatively flat as we shifted our focus to customers in industries with more favorable growth dynamics," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We continue to increase capacity of our dyeing equipment segment and introduce new products to help drive future growth."

Business Outlook

"Looking ahead, we hold a positive outlook for our business for the rest of the year. We expect environmental factors in China to continue to drive textile manufacturers to replace old and inefficient equipment with more environmentally friendly models. We continue to see strong order flow for our low emission airflow dyeing machines and after-treatment compacting machines and we are currently developing a new garment washing machine for denim. We plan to gradually increase production capacity in our dyeing machine segment to meet demand."

"We intend to devote a greater marketing effort for sales of forged products to customers in heavy equipment industries, putting less emphasis on the wind power industry. We remain optimistic that we will generate sales from our products for the oil and gas industry in 2014, although we have not received any orders to date and we cannot predict the size or timing of any sales or whether we will receive orders," Mr. Wu concluded.


Monday, March 31, 2014

Comments & Business Outlook

Fourth Quarter 2013 Financial Results

  • Revenue for the fourth quarter of 2013 increased 29.4% to $22.8 million, compared to $17.6 million for the same period of 2012.
  • Net income for the fourth quarter of 2013 was $2.1 million, or $0.60 per basic and diluted share, compared to $0.5 million, or $0.17per basic and diluted share, in the fourth quarter of 2012

"We closed the year with solid financial performance. Full year revenue exceeded expectations and net income nearly doubled, despite the impact of a non-cash impairment charge related to equipment held for operating lease at year end. The primary driver of our success in 2013 was our dyeing machine segment, due to the growing number of textile manufacturers who adopted our low-emission airflow dyeing machines. Although we saw some softness in sales to customers in the wind power industry, this was offset by growth in sales of forged products from customers in other industries, due to increased sales efforts and repeat purchases from our diverse customer base," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We made a significant investment to expand our product line to address new end and existing end markets and increase capacity of our dyeing equipment segment to position us for future success."

Business Outlook

"In 2014, we expect the Chinese government's more aggressive stance to curb pollution will have a beneficial impact on our dyeing machine segment. In anticipation of stricter enforcement of environmental regulations, we expect strong order flow from textile manufacturers for our low-emission airflow dyeing machines, after treatment compacting machine and new, higher-end dyeing and finishing machines. With additional capacity coming online earlier this year, we expect our dyeing machine segment to generate solid revenue growth and drive profitability in 2014.


Wednesday, November 13, 2013

Comments & Business Outlook

Third Quarter 2013 Financial Results

  • Revenue for the third quarter of 2013 increased 5.0% to $18.2 million, compared to $17.3 million for the same period of 2012.
  • Net income for the third quarter of 2013 was $2.1 million, or $0.61 per diluted share, compared to $2.4 million, or $0.88per diluted share, in the third quarter of 2012

"In the third quarter, we saw modest growth in revenue, were profitable and generated strong operating cash flow. Our dyeing machine segment continued to perform well, supported by growing adoption of our low-emission airflow dyeing machines. This increase was offset by a decrease in sales of forged rolled rings and related products for industries other than the wind power industry," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We are in the process of installing equipment that will expand capacity of our dyeing equipment segment and allow us to produce new, higher-end machines that we expect to drive improvements in our competitive position and financial results in 2014. We are also encouraged by recent discussions with our solar customer and expect to see some traction in this area soon, although we did not generate any revenue from solar products during the third quarter and we have no backlog of orders from these products."

Business Outlook

Based on current and anticipated orders, for the full year ending December 31, 2013, the Company expects revenue in the range of $60 - $62 million and net income in the range of $8.0 - $8.5 million, excluding the impact of any year-end adjustments to the carrying value of equipment held for sale.

"As we approach the end of 2013, we expect our dyeing machine segment to continue to be our main revenue driver in the fourth quarter and beyond. We are encouraged by the improving Chinese economy although tight credit conditions are likely to persist. This is causing many manufacturers to focus on the quality and durability of their equipment purchases rather than price alone. We believe our new line of high-end airflow and traditional dyeing machines and our after treatment compacting machine position our Company for further growth in 2014."

"We are also hopeful that we will secure orders for solar products in the near future and for our new oil and gas products in 2014, although we cannot predict the timing or extent of any sales. The wind power market continues to face near-term challenges, and we expect sales to customers in this industry to remain near current levels. We will continue to utilize our assets and modify our product lines with a view of achieving strong financial performance and respond to the needs of heavy equipment and clean technology industries," Mr. Wu concluded.


Wednesday, August 14, 2013

Comments & Business Outlook

Second Quarter 2013 Financial Results

  • Revenue for the second quarter of 2013 increased 34.1% to $17.2 million, compared to $12.8 million for the same period of 2012
  • Gross profit for the second quarter of 2013 increased 47.5% to $4.0 million, compared to $2.7 million for the same period in 2012.
  • Net income for the second quarter of 2013 was $2.3 million, or $0.79 per diluted share, compared to $1.1 million, or $0.40 per diluted share, in the second quarter of 2012. Diluted earnings per share were calculated using diluted weighted average shares of 2,955,786 and 2,660,983 for the three months ended June 30, 2013 and 2012, respectively. All share and per share information has been adjusted to reflect a one-for-ten reverse stock split effective March 6, 2012.

"During the second quarter, we continued on our growth trajectory with solid year-over-year increases in revenue and net income. Our dyeing machine segment was the main driver behind our performance, as textile manufacturers continue to phase out obsolete equipment and reduce pollution from the dyeing process in keeping with the policies of local PRC governments," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We also saw a healthy increase in sales of forged products to customers outside the wind power industry. "

Business Outlook

Based on current and anticipated orders, for the full year ending December 31, 2013 the Company affirms its guidance for revenue in the range of $60 - $62 million and net income in the range of $8.0 - $8.5 million.

"As we enter the second half of the year, we are confident about our future although we have some concerns regarding credit conditions in China. We expect sales of airflow dyeing machines and anticipated sales of new products, including our after treatment compacting machine, to be the main drivers of revenue growth. We have purchased new equipment that will increase dyeing machine capacity by year end and are hopeful that we will secure customers for our new forged products and after treatment textile equipment soon."

"We anticipate a lesser contribution from wind and solar customers given the near-term challenges facing these markets. We will continue to utilize our assets, along with our expertise in manufacturing precision products, to meet the needs of other heavy equipment and clean technology industries as we seek profitable growth," Mr. Wu concluded.


Friday, July 12, 2013

Notable Share Transactions

WUXI, Jiangsu, China, July 12, 2013 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that the Company entered into a stock purchase agreement on July 10, 2013 pursuant to which the Company sold a total of 150,508 shares of common stock at a purchase price of $4.70 per share. The shares were sold pursuant to a prospectus supplement dated July 10, 2013 to the Company's registration statement on Form S-3. The Company did not engage a placement agent with respect to the sale. The Company paid a fee of 10% and a non-accountable expense allowance of 2%, for a total of $84,892, to Fernando Liu with respect to the sale made to an investor introduced to the Company by Mr. Liu who is not a U.S. Person. The net proceeds received by the Company from the sale of the shares were approximately $620,000. The Company will use the proceeds for working capital and other general corporate purposes. The Company does not anticipate raising equity capital for the balance of 2013.


Tuesday, July 2, 2013

Comments & Business Outlook

WUXI, China, July 2, 2013 /PRNewswire-FirstCall-- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today provided guidance for the full year 2013.

Based on current and anticipated orders, for the full year ending December 31, 2013 the Company anticipates revenue in the range of $60 - $62 million and net income in the range of $8.0 - $8.5 million.

"We expect to see strong growth in our top and bottom lines in 2013, led by sales of airflow dyeing machines and anticipated sales of new products, including our after treatment compacting machine. Although we have concerns regarding potential credit problems in China, we are confident about our future prospects. We will continue to devote resources to developing products that meet the needs of the heavy equipment and clean technology industries," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Friday, June 21, 2013

Deal Flow

WUXI, China, June 21, 2013 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that the Company entered into stock purchase agreements dated June 17, 2013 and signed on June 18, 2013 pursuant to which the Company sold a total of 428,398 shares of common stock at a purchase price of $4.50 per share. The shares were sold pursuant to a prospectus supplement datedJune 18, 2013 to the Company's registration statement on Form S-3. The Company did not engage a placement agent with respect to the sale. The Company paid a fee of 10% and a non-accountable expense allowance of 2%, for a total of $154,745, to Fernando Liu with respect to sales made to investors introduced to the Company by Mr. Liu who are not U.S. Persons. The net proceeds received by the Company from the sale of the shares were $1,767,546. The Company intends to use the net proceeds working capital and other general corporate purposes.


Thursday, June 20, 2013

Contract Awards

WUXI, China, June 20, 2013 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that the Company has received purchase orders totaling RMB 12.2 million (approximately $2.0 million) for 21 airflow-dyeing machines from a new domestic customer.  Cleantech Solutions has received an advance payment of approximately $0.4 million, or 20% of the purchase price, will receive an additional 70% of the purchase price upon delivery, and will receive the remaining 10% within six months of delivery. The Company expects to begin delivering the units in September 2013.

The Company's airflow-dyeing machines use flowing air rather than water, which is used in the traditional dyeing process. The Company believes that its airflow technology reduces input costs, creates fewer wrinkles and less damage to the textile, and produces a reduced level of emissions.

"We expect strong order flow in our airflow dyeing machine business to continue through the rest of 2013," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We are in the process of expanding capacity to meet anticipated demand and will begin marketing our new line of after-treatment products to existing customers later this year."


Friday, June 14, 2013

Comments & Business Outlook

WUXI, China, June 14, 2013 /PRNewswire-FirstCall/ --Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies primarily used in the wind power, solar and other clean technology industries, today announced that the Company recently received five new patent certificates (Patent Nos. ZL 2012 2 0752919. 2, ZL 2012 2 0752924. 3, ZL 2012 2 0752922. 4, ZL 2012 2 0752921. X and ZL 2012 2 0752917. 3) for devices and parts of its airflow dyeing machine.

The new patents cover the dyeing liquid mixing device, dyeing liquid atomizing device, horizontal manipulated devices, mechanical seal and atomizer of its airflow dyeing machine. The patents relate to devices and parts that allow for lower water and energy usage, improved dyeing effects, extend the service life of the machine and provide easier cleaning of atomized dyeing equipment. The Company applied for such patents on December 25, 2012. The patents were issued by the State Intellectual Property Office of the People's Republic of China ("SIPO") and were granted to the Company's variable interest entity (VIE), Wuxi Huayang Dyeing Machinery Co., Ltd., on June 5, 2013. The patents provide the Company with the exclusive use of these designs in dyeing equipment for a period of ten years.

"We are pleased to have been awarded these patents, which we believe will protect the proprietary devices and parts of our air-flow dyeing machine," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We expect our dyeing machine segment to continue to perform well in 2013, as more customers are purchasing new equipment that meets the Chinese government's stricter environmental standards which our products are designed to meet. We are currently expanding production capacity and look forward to marketing our new after-treatment compacting equipment in the coming months."


Wednesday, May 22, 2013

Comments & Business Outlook

WUXI, China, May 22, 2013 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that it has become a certified supplier of components to China Petroleum and Chemical Corporation (Sinopec) and China National Petroleum Corporation (CNPC).

In May 2013, the Company delivered protoypes to Sinopec and CNPC of forged flanges and pipes, which are components used in oil and natural gas onshore and offshore drilling and refinery equipment. The Company's subsidiary, Wuxi Fulland Wind Energy Equipment Co., Ltd., has also received the necessary third party certifications, stating that its flanges and pipes are in conformity with the applicable standards in regard to axis shape, circular shape, tubular shape and forging processing.

"China's oil and natural gas industry is a new end market for our Company with favorable prospects for growth. As a certified supplier, we are able to market our components to the subsidiary companies of Sinopec and CNPC throughout China," said Mr.Jianhua Wu , Chairman and CEO of Cleantech Solutions. "We are hopeful that our marketing efforts in this area will contribute to our financial results beginning in the third quarter of 2013."


Wednesday, May 15, 2013

Comments & Business Outlook

First Quarter 2013 Results

  • Revenue for the first quarter of 2013 increased 47.6% to $13.9 million, compared to $9.4 million for the same period of 2012
  • Gross profit for the first quarter of 2013 increased 66.3% to $3.1 million, compared to $1.9 million for the same period in 2012.
  • Net income for the first quarter of 2013 was $1.6 million, or $0.56 per diluted share, compared to $0.3 million, or $0.12 per diluted share, in the first quarter of 2012. Diluted earnings per share were calculated using diluted weighted average shares of 2,894,586 and 2,523,936 for the three months ended March 31, 2013 and 2012, respectively.

"We got off to a strong start in 2013, achieving significant growth in revenue and profitability. Our dyeing machine segment saw revenue increase by more than 90% as a result of increased sales of our new equipment designed to meet the current environmental standards. We believe this increase reflects the response of textile manufacturers to seek to meet the policies of local PRC governments to phase out obsolete equipment and reduce pollution from the dyeing process," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "In addition, sales of forged products to customers in the wind power industry saw strong sales growth. We will continue our efforts to expand our portfolio of precision products to meet demand in new and existing end markets with favorable prospects for growth."

Business Outlook

"In 2013, we expect our dyeing machine segment to continue to perform well. We have a number of new contracts in the pipeline and have purchased new equipment to expand capacity to meet this demand. While near-term challenges remain in both the wind and solar markets, the long-term outlooks are positive.

"In the meantime, we will continue to seek to diversify our revenue base and modify our product lines to respond to the needs of other heavy equipment industries and clean technology industries. We are working with our customers to fine tune prototypes of new after-treatment textile equipment and are working to become a licensed, or qualified, supplier of components to China's oil and gas industry," Mr. Wu said. "We are optimistic about our prospects for 2013, and will continue to utilize our expertise in manufacturing precision products to generate profitable growth."


Saturday, April 27, 2013

Investor Alert

On December 18, 2012 we issued our preliminary on-the-ground due diligence (DD) findings on Cleantech Solutions International, Inc. (CLNT).  While in some cases we believe that preliminary DD is sufficient enough to form a definitive conclusion regarding a ChinaHybrid operation, sometimes we require more.  This is the case with CLNT.

We appreciate the efforts of the company’s Investor Relations firm who arranged a conversation for us with the CLNT management team in order to discuss a more thorough DD process.   Some of our requests included:

  • Independent verification of cash accounts;
  • Independent verification SAIC/SAT filings;
  • Independent video coverage of manufacturing operations;
  • A list of top/current customers and suppliers.


Please see our entire report first viewed by our Premium Members.

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Friday, April 26, 2013

Deal Flow

S-3 from 4/26/2013

We may from time to time, in one or more offerings at prices and on terms that we will determine at the time of each offering, sell common stock, preferred stock, warrants, or a combination of these securities, or units, for an aggregate initial offering price of up to $5,000,000. This prospectus describes the general manner in which our securities may be offered using this prospectus. Each time we offer and sell securities, we will provide you with a prospectus supplement that will contain specific information about the terms of that offering. Any prospectus supplement may also add, update, or change information contained in this prospectus. You should carefully read this prospectus and the applicable prospectus supplement as well as the documents incorporated or deemed to be incorporated by reference in this prospectus before you purchase any of the securities offered hereby.


Thursday, April 11, 2013

Liquidity Requirements

From 10-K 4/11/2013

In connection with any expansion projects for our business, we will incur significant capital and operational expenses. We do not presently have any funding commitments other than our present credit arrangements which we do not believe are sufficient to enable us to expand our business. If we are unable to generate cash flow from operations and obtain necessary bank or other financing to pay for significant capital or operational expenses, we may be unable to finance the growth of our existing business, which may impair our ability to operate profitably. Because of our stock price and the worldwide economic downturn, we may not be able to raise any additional funds that we require on favorable terms, if any. The failure to obtain necessary financing may impair our ability to expanse or business and remain profitable.


Wednesday, November 21, 2012

Investor Alert

In our morning premium email we mentioned that we had learned that Rick Pearson was taking a short position in Cleantech Solutions (NASDAQ:CLNT) and intended to publish his due diligence findings later in the day. The article actually went live on Seeking Alpha in the morning, shortly after our mail - A Troubling Visit To Cleantech Solutions.

Although we have not perform any on the ground due diligence on CLNT, we were never able to resolve our negative sentiment towards this company based on a red-flag we highlighted on May 23, 2011 regarding quickly flip flopping in capital funding requirements.

(GeoTeam note 5/23/2011)

“Investors may want to take note of the 180 degree turn CWS (now CLNT) made pertaining to its liquidity needs:

2010 10K:

"In connection with our expansion project for our business, we will incur significant capital and operational expenses. We do not presently have any funding commitments other than our present credit arrangements which we do not believe are sufficient to enable us to satisfy our current and anticipated purchase commitments. If we are unable to obtain necessary capital to pay our purchase commitments and we cannot find alternative financing we may be unable to finance the growth of our existing business, which may impair our ability to operate profitably."

2011 first quarter 10Q:

"Our capital requirements for the next twelve months relate to purchasing machinery for the manufacture of products for the solar industry as well as additional investment in our forged rolled rings division. We also expect to incur modest expenses in maintaining our dyeing business. We believe that our cash flow from operations will be sufficient to meet our anticipated cash requirements for the next twelve months."

In in its most recent press release CLNT continues to claim that it does not require outside financing to grow.

“We have been generating positive cash flow from operations and believe they are sufficient to fund our new product development initiatives,"

As always we have to stress the care that investors must take in their own due diligence process. But, quick flip flops in company capital needs have been a major red flag in the China Hybrid universe. We are of the opinion that since some ChinaHyrbids will find it difficult to raise funds in the U.S. capital markets they may resort to pumping their stock, giving certain players another avenue to make a few bucks.


Wednesday, October 31, 2012

Contract Awards

WUXI, China, October 31, 2012 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received purchase orders for airflow-dyeing machines and related components from two new domestic customers.

The first purchase order requires Cleantech Solutions to deliver a total of 63 sets of airflow-dyeing machines and related components for a total purchase price of approximately $1.7 million (RMB 10.4 million). Pursuant to the purchase order, the Company has received an advance payment of $0.5 million, or 30% of the total purchase price, will receive an additional 60% of the total purchase price upon installation, and will receive the remaining 10% within three months of installation. Cleantech Solutions expects to deliver the units in November and December 2012. The Company's airflow-dyeing machines use flowing air rather than water, which is used in the traditional dyeing process. The Company believes that its airflow technology reduces input costs, creates fewer wrinkles and less damage to the textile, and produces a reduced level of emissions.

"We are pleased with the steady sales momentum of our airflow-dyeing machines as we continue to attract new customers, which is a strong validation of the increasing need for our products and services within the textile industry," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We are committed to growing our customer base alongside the industry-wide replacement cycle favoring energy friendly machines."

Separately, Cleantech Solutions received an additional purchase order to supply forged components for flanges from a China-based heavy machinery customer. The purchase order requires the Company to deliver a total of 36 units for a total purchase price of $0.8 million. Pursuant to the purchase order, the Company received an advance payment of $0.2 million, or 30% of the total purchase price, and will receive the remaining 70% upon installation. Cleantech Solutions expects to deliver the units by the end of November 2012.


Wednesday, October 10, 2012

Contract Awards

WUXI, China, October 10, 2012 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received new and follow-on purchase orders for its airflow dyeing machines and related components from its new and existing domestic customers.

The purchase orders provide for Cleantech Solutions to deliver a total of 23 units of airflow dyeing machines and components for a total purchase price of RMB13.8 million (approximately $2.2 million). Pursuant to the purchase orders, the Company has received an advance payment of $0.7 million, or 30% of the total purchase price, and will receive an additional 60% of the total purchase price upon installation and the balance within three months of installation. Cleantech Solutions expects to deliver the units by the end of December 2012. The Company's airflow dyeing machines use air flow rather than water which is used in the traditional dyeing process. The Company believes that the technology used in its air flow units results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.

"With the growing acceptance of our new airflow dyeing technology and the government's mandate to phase out obsolete machinery in China's textile industry, we have seen continued growth in order flow in this segment," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

"We are pleased to receive follow-on purchase orders from our existing customers, who, by their orders, are endorsing our airflow dyeing machines. Additionally, we are also receiving orders from a new customer, who, we believe, is recognizing the need for new technology and following the general industry trend. We believe these orders reflect positively on the high quality of our products and services. We are optimistic that sales momentum from this segment will continue and translate into larger orders, customer growth and higher contribution to our top line for 2012," concluded Mr. Wu.


Wednesday, August 15, 2012

Comments & Business Outlook

Second Quarter 2012 Results

  • Gross profit for the second quarter of 2012 decreased 11.7% to $2.7 million, compared to $3.1 million for the same period in 2011.
  • Net income for the second quarter of 2012 was $1.1 million, or $0.40 diluted earnings per share, compared to $1.2 million, or $0.47 diluted earnings per share, in the second quarter of 2011.

"During the second quarter of 2012, we experienced growing market demand for our dyeing equipment, forger rolled ring products, and solar components as compared to the first quarter of 2012. Our revenue growth compared to the first quarter of 2012 reflected an overall modest increase in market demand," commented Mr.Jianhua Wu, Chairman and Chief Executive Officer of Cleantech Solutions. "In recent years, the exponential growth of China's wind power industry resulted in this segment accounting for a significant percentage of our total revenue. However, over the past several quarters, we have started to diversify our revenue base with great success and hope to continue to modify our product portfolio to cater to other heavy equipment industries, the solar industry, LED lighting industry and other clean technology industries," added Mr. Wu.

Business Outlook

Due to challenges faced by the wind power industry, we foresee the demand for our products supplied to the wind power industry to remain soft in the near term. Despite these challenges, we continue to hold a positive outlook in the longer term. However, during this period our strategy is to focus our resources towards other heavy equipment industries to help diversify our revenue and customer base. We have seen a modest but steady growth in demand for our products sold to the solar industry and will continue to work with our customers to expand our product offering and benefit from the longer term growth of this sector.

"Additionally, demand for our new energy-efficient air flow dyeing machines is gaining momentum due to the industry's response to the policies offered by the local government in Jiangsu province, where China's textile industry is concentrated. We are seeing strong order growth from this segment as the PRC government is encouraging textile manufacturers to replace obsolete machinery with low-emission and environmental friendly dyeing machines," Mr. Wu concluded.


Wednesday, August 8, 2012

Contract Awards

WUXI, China, August 8, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received a new purchase order to supply 21 units of airflow dyeing machines and related components to a domestic customer.

The purchase order provides for Cleantech Solutions to deliver the airflow dyeing machines and components for a purchase price of RMB11.6 million (approximately $1.8 million). Pursuant to the purchase order, the Company has received an advance payment of $0.5 million, or 30% of the total purchase price, and will receive an additional 60% of the total purchase price upon installation and the balance within three months of installation. Cleantech Solutions expects to deliver the units by the end of November 2012. The Company's airflow dyeing machines use air flow rather than water which is used in the traditional dyeing process. The Company believes that the technology used in its air flow units results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.

Cleantech Solutions also received a follow-on purchase order to supply 25 units of solar components to its China-based solar customer. The purchase order provides for the Company to deliver a total of 25 units of various solar components for a total purchase price of $0.7 million. Cleantech Solutions expects to deliver the units by the end of August 2012. In addition to this order, the Company has an order backlog of 25 to 30 units of solar products, which it expects to ship by the end of September 2012.

"Despite the economic challenges faced by China's textile industry, we are encouraged to see modest growth in orders and a growing acceptance of the new airflow dyeing technology," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We have received positive feedback from our customers on our airflow machines, and we will continue to work with our customers to meet their specific requirements and help transition to the new airflow dyeing machines, which, we believe, help reduce costs in the long-run. The Chinese government continues to encourage the textile industry to replace obsolete machinery with newer energy efficient models. We expect to see some positive sales growth from this segment in the coming quarters driven by government support and growing market acceptance."


Monday, July 9, 2012

Contract Awards

WUXI, Jiangsu, China, July 9, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received follow-on purchase orders to supply 20 units of solar components to its international customer and has received maintenance orders from its Chinese domestic customer, for an aggregate amount of $0.78 million.

The purchase order provides for Cleantech Solutions to deliver a total of 20 units of various solar components to its international customer for total revenue of $0.54 million. The Company has received advance payment of $0.2 million and expects to deliver the units by the end of July 2012. The Company is currently also working on maintenance orders for its domestic customer, for total revenue of $0.23 million.

"Despite the challenges faced by the solar industry, we are encouraged to receive follow on orders from our international customer. We believe this demonstrates our technological capabilities and commitment to meet specific customer requirements," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We currently have an order backlog of 25 units of solar products, which we expect to ship by August 2012. We will continue to work with our solar customers to seek to expand our product offering and hope to benefit from the longer term growth of this sector."


Tuesday, May 22, 2012

Shareholder Letters

WUXI, Jiangsu, China, May 22, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received purchase orders to supply motor shaft forgings to Nanjing Turbine & Electric Machinery Changfeng Alternative Energy Co., Ltd ("Nanjing Turbine") for an aggregate amount of $1.7 million.

The purchase orders provide that Cleantech Solutions will deliver a total of 800 units of motor shaft forgings, amounting to total revenue of RMB10.6 million (approximately $1.7 million) by the end of 2012. The Company has received advance payments of RMB1.6 million (approximately $0.3 million).

"We are encouraged to receive follow-on purchase orders from Nanjing Turbine, an established player in China's wind power market," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We believe this demonstrates the high-quality of our products and our ability to meet our customers' needs for wind components and other equipment."


Wednesday, May 16, 2012

Comments & Business Outlook

First Quarter 2012 Results

  • Revenue for the first quarter of 2012 declined 46.4% to $9.4 million, compared to $17.6 million for the same period of 2011.
  • Gross profit for the first quarter of 2012 decreased 58.6% to $1.9 million, compared to $4.6 million for the same period in 2011. Gross margin decreased to 20.0% during the first quarter of 2012 compared to 25.9% for the same period a year ago.
  • Operating expenses increased 14.1% to $1.0 million, compared to $0.9 million in the comparable period last year.
  • Operating income decreased 76.9% to $0.8 million, compared to $3.6 million for the same period of 2011.
  • Net income for the first quarter of 2012 was $0.3 million, or $0.12 diluted earnings per share, compared to $2.7 million, or $1.04 diluted earnings per share, in the first quarter of 2011.

"In the first quarter, we experienced soft demand for our forged rolled rings and other related products due to challenging economic conditions and reduced demand for capital equipment, resulting in part from difficulties experienced by our potential customers as a result of restrictive monetary policies which also continued to affect sales of our dyeing and finishing equipment. Despite these short term challenges, we expect a favorable demand outlook in the long-term driven by PRC government's desire to increase the use of clean energy, including wind power and solar energy," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of Cleantech Solutions.

Business Outlook

"While we anticipate continued softness in the wind power segment, we are encouraged by the new orders we recently received for energy-efficient air flow dyeing machines and forged products. At the end of the first quarter, we had a backlog of $1.2 million in solar products and we will continue work with our solar customers as we seek to expand our foothold in this industry. We are also optimistic about the outlook for our higher margin airflow dyeing machines and are hopeful that more of our customers will recognize the operational efficiency of these machines, which include reduced input costs and lower emissions," Mr. Wu concluded.


Sunday, May 13, 2012

Share Structure
On May 4, 2012, the Company’s board of directors approved a previously negotiated agreement with Barron Partners LP, pursuant to which Barron, as the holder of warrants to purchase 55,160 shares of common stock at $12.00 per share and 165,000 shares of common stock at $16.98 per share, agreed to exchange or convert such warrants into (i) shares of the Company’s series A preferred stock which are convertible into 73,386 shares of common stock, and (ii) warrants to purchase 73,386 shares of this Corporation’s common stock at $2.70 per share, which was the market price of the common stock on the date the terms of the exchange were negotiated in February 2012. The number of shares and exercise prices reflect the one-for-ten reverse split effective March 6, 2012.

Wednesday, May 2, 2012

Contract Awards

WUXI, China, May 2, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received purchase orders to supply flanges to a wind power customer and an industrial customer for an aggregate amount of $1.9 million.

The purchase orders provide that Cleantech Solutions will deliver 12 units of flanges, amounting to total revenue of $1.2 million to an international customer and 30 units of flanges amounting to total revenue of RMB4.2 million (approximately $0.7 million) to a domestic customer, both which are deliverable by the end of May. The Company has received advance payments of $0.8 million.

"While the market environment remains challenging, particularly for wind power companies and suppliers, we have received follow-on purchase orders from our Chinese customer. In addition, we have received a purchase order from a U.S. customer, which we believe speaks to the quality of our products and reputation as a strong supplier of wind power and other components in both the domestic and international markets," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Monday, April 30, 2012

Contract Awards

WUXI, China, April 30, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received a new purchase order from Zhejiang Gelinlan Dyeing Limited ("Zhejiang Gelinlan"), the largest village-level enterprise group in Zhejiang, to supply its energy-efficient airflow dyeing machines for an aggregate amount of RMB10.4 million (approximately $1.7 million).

Pursuant to the purchase order, the Company is scheduled to deliver 15 units of its energy-efficient airflow dyeing machines to Zhejiang Gelinlan by the end of May 2012. The Company has received an advance payment of RMB3.1 million (approximately $0.5 million). The Company's airflow dyeing machines use air flow as opposed to water in the traditional dyeing process, which the Company believes results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.

"We are encouraged by the positive market feedback and receipt of an order from a new customer for our energy-efficient airflow dyeing machines," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We believe these new orders are mainly driven by growth in China's textile industry and increasing willingness of our customer to invest in new equipment designed to meet the PRC government's mandatory environmental standards. We are hopeful that more of our customers will recognize the operational efficiency of these machines, which include reduced input costs and lower emissions. We are confident that sales of our airflow dyeing machines can exhibit strong growth in fiscal 2012."


Thursday, March 29, 2012

Comments & Business Outlook

Fourth Quarter 2011 Results

  • Revenue for the fourth quarter of 2011 declined 38.9% to $13.7 million, compared to $22.5 million for the same period of 2010
  • Net income for the fourth quarter of 2011 decreased 74.8% to $0.8 million, compared to $3.1 million in the comparable period last year
  • Diluted earnings per share were $0.31, compared to $1.29 in the same period of 2010.

"During the fourth quarter, we continued to face challenging market conditions and pricing environment for our forged rolled rings and related products resulting in lower sales volume and profitability. However, in our dyeing and finishing equipment segment, we experienced a 17.6% increase in net revenue compared to the third quarter of 2011 largely due to increased sales of our new higher margin air flow dyeing machines," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of China Wind Systems.

"In 2011, we focused our efforts in exploring new clean technology markets to leverage our experience in the wind industry. Our ability to utilize our technical knowledge to manufacture and market solar components has marked our entry into the solar products market. At fiscal year end, we had a backlog of $1.3 million in solar products, LED equipment and other sample orders. We hope to make additional progress in 2012 and expand our presence in the solar and LED industry," Mr. Wu concluded.

Business Outlook

Cleantech Solutions anticipates demand for forged products in the wind industry to remain soft in the short term as a result of increased competition and pricing pressure. However, the Company expects demand for forged products in the wind industry in China will continue to grow in the long term. The Chinese government's twelfth Five-Year Plan, reflects the government's continued commitment to wind power development, with a target of building an additional 90 GW of wind energy by 2015.

The Company plans to continue to build on its technical expertise to seek to further diversify its business into the clean technology industry in 2012. The Company expects the increase in sales from the new airflow dyeing machines and new orders from its solar and LED customers to help offset the continued softness in the traditional forged rolls rings segment.

Mr. Wu concluded, "We will continue to seek to develop new technology and expertise in the clean energy segment in order to manufacture higher margin and environmentally friendly products. Following the recent completion of sample LED and solar orders, we expect our customer to place additional orders for sapphire chambers and solar furnaces in the future. We anticipate increasing revenue contribution from these new sectors in 2012 and beyond."


Sunday, March 18, 2012

CFO Trail
On March 14, 2012, the Company appointed Wanfen Xu, age 31, as chief financial officer. Ms. Xu has been the financial controller of Wuxi Huayang Electrical Power Equipment Co., Ltd. (“Electrical”) and Wuxi Huayang Dyeing Machinery Co., Ltd. (“Dyeing”) from 2009 to 2011, and she was the a senior finance manager and financial controller of Dyeing between 2000 to 2009. Electrical and Dyeing are variable interest entities whose financial statements are included in the Company’s consolidated financial statements.

Wednesday, February 22, 2012

Share Structure
WUXI, China, February 22, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, announced that its stockholders approved, at a special meeting of shareholders held on February 21, 2012 at its office in Wuxi City, Jiangsu Province, PRC the one-for-ten reverse split of its common stock and a change in its authorized capital stock. The Company's authorized capital stock will change from 150,000,000 shares of common stock and 60,000,000 shares of preferred stock to 50,000,000 shares of common stock and 30,000,000 shares of preferred stock.

Friday, December 30, 2011

Share Structure
kWUXI, China, Dec. 30, 2011 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily for the wind power industry as well as solar and other industries, today announced that its common stock is trading on The Nasdaq Capital Market, effective December 29, 2011. The common stock had been traded on The Nasdaq Global Market to the Nasdaq Capital Market. The trading of the Company's common stock on the Nasdaq Capital Market effective on December 29, 2011. The change does not effect the Company' trading symbol, "CLNT." The transfer to The Nasdaq Capital Market was made at the request of the Company since the Company did not meet the minimum market value of publicly traded shares requirement of $5,000,000 on The Nasdaq Global Market. The Company meets the minimum market value of publicly traded shares for The Nasdaq Capital Market. The Company's board of director approved, subject to stockholder approval, a one-for-ten reverse split of its common stock and a reduction in the number of authorized shares of common stock from 150,000,000 to 50,000,000 and preferred stock from 60,000,000 to 30,000,000. The reverse split and change in authorized capital stock will be submitted to the Company's stockholders at a special meeting of stockholders, which it expects to be held in February 2012. The one-for-ten reverse split supersedes a previously approved one-for-five reverse split. About Cleantech Solutions International Cleantech Solutions supplies forgings products, fabricated products and machining services to a range of clean technology customers, primarily in the wind power sector. Cleantech Solutions is committed to achieving long-term growth through ongoing technological improvement, capacity expansion, and the development of a strong customer base. For more information visit our website at http://www.cleantechsolutionsinternational.com

Sunday, December 11, 2011

CFO Trail

On November 13, 2011, Fernando Liu advised the Company that he was terminating his employment as the Company’s chief financial officers upon the expiration of his employment contract on December 31, 2011 for personal reasons.  Mr. Liu’s decision did not result from any disagreement with the Company.  Mr. Liu will continue to work with the Company as a consultant to assist the Company in its efforts to expand its business in the solar, LED and other clean technology industries.

Ms. Xu Wan Fen, financial controller of Wuxi Huayang Electrical Power Equipment Co., Ltd and Wuxi Huayang Dyeing Machinery Co., Ltd., will serve as interim chief financial officer until a successor is named. Ms. Xu has been the financial controller of Wuxi Huayang Electrical Power Equipment Co., Ltd and Wuxi Huayang Dyeing Machinery Co., Ltd. between 2009 to 2011, and she was also the a senior finance manager and financial controller of Wuxi Huayang Dyeing Machinery Co., Ltd. between 2000 to 2009.  Wuxi Huayang Electrical Power Equipment Co., Ltd and Wuxi Huayang Dyeing Machinery Co., Ltd. are variable interest entities whose financial statements are included in the Company’s consolidated financial statement.


Tuesday, November 15, 2011

Comments & Business Outlook

Third Quarter 2011 Results

  • Revenue for the third quarter of 2011 declined 45.1% to $11.7 million, compared to $21.3 million for the same period of 2010.
  • Diluted earnings per share were $0.05, compared to $0.12 in the same period of 2010.

"We continue to face challenging market conditions and pricing environment, due to delayed capital expenditures by our wind power and other industrial customers in light of the PRC government's tightening monetary policy," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of China Wind Systems.

"We continue to make progress in diversifying our product offering and are optimistic about the evolution of our solar business. We are also gaining traction in other clean energy areas, recently receiving sample orders for key components for Sapphire Growth System used in the manufacture of LED general lighting applications. At quarter end, we had a backlog of $1.8 million in solar products and LED equipment and sample orders. We are confident our fabrication and welding expertise will allow us to further penetrate these and other areas of clean energy," Mr. Wu concluded.

Business Outlook

Cleantech Solutions continues to implement its strategy of diversifying its businesses to other areas of clean energy to partially offset the recent decline in sales from the wind energy sector and other industrial customers. Despite the apparent decline in the growth rate for the wind power industry in China, the Company believes the wind power market still provides significant opportunity for growth over the next few years, supported by Chinese government targets for additional installed capacity of 90 GW by 2015. However, the Company is facing increased competition, which has affected its pricing, and it expects competition to continue to increase.

The Company has a growing pipeline of customers from other clean technology application areas and has received positive feedback from end customers in the solar and LED general lighting industries. The Company is on schedule to complete and ship its LED sample products before the end of the year and anticipates follow-on orders in 2012. In addition, it also expects the airflow dyeing machines will gain traction in the coming months.

Mr. Wu concluded, "Our strategy remains unchanged as we continue to explore new markets in other clean technology industries given anticipated softness in the wind power and traditional dyeing equipment in the remainder of 2011. We will focus on seeking new customers and completing sample orders from our customers in the solar and LED general lighting industries, which will be important catalysts for the Company's revenue and profitability going forward."


Wednesday, September 28, 2011

Share Structure
WUXI, Jiangsu, China, September 28, 2011 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily for the wind power industry as well as solar and other industries, today announced that on September 25, 2011, the Company received board of director ("the Board") approval for a one-for-three reverse split of its common stock and a reduction in the number of authorized shares of common stock from 150,000,000 to 50,000,000 and preferred stock from 60,000,000 to 30,000,000.

Monday, September 12, 2011

Investor Alert

WUXI, Jiangsu Province, China, September 12, 2011 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily for the wind power industry as well as solar and other industries, today announced that on September 8, 2011, it received a staff deficiency notice from The Nasdaq Stock Market informing the Company that its common shares have failed to comply with the $1.00 minimum bid price required for continued listing on The Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1). The Company failed to meet this test because the closing bid price for the Company's common stock for each trading day in the 30 day period from July 27, 2011 to September 7, 2011 was less than $1.00 per share.

Nasdaq's letter stated that to regain compliance, the closing bid price for the Company's common stock must be at least $1.00 for a minimum of 10 consecutive business days within the 180-day compliance period ending on March 6, 2012. In the event the Company does not regain compliance within this period, it may be eligible for additional time by filing a listing application to transfer its common stock to the Nasdaq Capital Market.

"We recognize the importance of maintaining our listing on the Nasdaq Stock Market and are evaluating several options to regain compliance, including a reverse stock split," commented Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Monday, August 15, 2011

Comments & Business Outlook
Second Quarter 2011 Results
  • Revenue for the second quarter of 2011 declined 33.6% to $12.6 million, compared to $19.0 million for the same period of 2010.
  • Net income decreased 61.3% to $1.2 million, compared to $3.0 million in the comparable period last year.
  • Basic earnings per share in 2011 and 2010 were $0.06 and $0.17, respectively.

"As anticipated, we faced a difficult pricing environment in our primary wind power market, resulting in margin pressure and lower sales volume. In addition, many of our dyeing equipment customers delayed capital expenditures in light of the new PRC government's environmental policies and tightening monetary conditions. However, we did foresee weakness in these areas in 2011 and actively focused our efforts in leveraging our technological expertise to cater to other clean energy industries," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of China Wind Systems.

"During the second quarter, we received two purchase orders to deliver 40 solar chamber subassemblies, following approval of our sample products. We also received a sample order from our international customer to supply equipment used in the manufacture of monocrystalline silicon wafers. We are encouraged by our progress in the solar energy industry and are working in close collaboration with our customers to deliver high-quality products in a timely manner," Mr. Wu concluded.

Business Outlook

Given the challenging conditions in China's wind energy sector, Cleantech Solutions is actively seeking to diversify its product offering to serve additional clean technology application areas with attractive prospects.

The Company's management team is targeting international markets to take advantage of clean energy policies in North America and Europe. The pipeline of order flow from North American customers is strong and the Company expects to see its revenue from sales to the solar industry grow rapidly over the coming quarters. In the longer term, the Company intends to expand its expertise to include other promising clean technology areas such as producing Sapphire Growth Systems for the rapidly growing and government supported LED lighting industry.

Mr. Wu concluded, "We continue to expect some softness in the wind and dyeing equipment segments in the second half of 2011. We hope to see some relaxation in Chinese monetary policy which could spur capital investment by our wind power and textile customers by year end. Meanwhile, we are focusing on competitively pricing our wind power products to sustain market share while continuing to develop our solar business. Over the next few quarters, we expect our revenue from the solar industry to exhibit robust growth. We are encouraged by the positive feedback on sample products from our customers and currently enjoy a pipeline of strong order flow."