Providing investors with the
tools to make informed decisions.
Providing investors with the
tools to make informed decisions.
 Tracking 1254 U.S. listed China Stocks and Counting...
 Tracking 3117 U.S. Stocks and Counting...

 Cleantech Solutions (NASDAQ:CLNT)

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.

To be among the first to receive alerts like this, subscribe to our premium service!


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.


Friday, April 12, 2013
Comments & Business Outlook

Fourth Quarter 2012 Results

  • Revenue for the fourth quarter of 2012 increased 28.3% to$17.6 million, compared to$13.7 millionfor the same period of 2011
  • Gross profit for the fourth quarter of 2012 increased 38.2% to$4.2 million, compared to$3.1 millionfor the same period in 2011. Gross margin increased to 24.1% during the fourth quarter of 2012 compared to 22.4% for the same period a year ago.
  • Net income for the fourth quarter of 2012 was $469,313, or $0.17 per diluted share, compared to $0.8 million, or $0.31per diluted share, in the fourth quarter of 2011. Adjusted net income, a non-GAAP measurement which does not deduct impairment loss and warrant modification expense, was $2.7 million, or $0.98 diluted earnings per share, up 238.5% from the same quarter of last year.

"The year 2012 was marked by a challenging environment in China that impacted capital spending and demand from customers in our key end markets, particularly during the first half of the year. Despite these challenges, we closed the year with 28.3% growth in revenue in the fourth quarter, driven by strong demand for our patented airflow dyeing machines and improving sales of forged products to customers in the wind power industry. Although we recorded a non-cash impairment loss related to equipment which we are no longer using and which is being held for sale during the fourth quarter, we were still profitable due to greater operational efficiencies and careful cost control," said Mr.Jianhua Wu, Chairman and CEO of Cleantech Solutions.

Business Outlook

"Despite a challenging environment in 2012, we saw modest growth in our top line as we diversified and expanded our product offering. More importantly, we achieved strong growth in profitability, on an adjusted basis, and generated solid cash flow from operations to fund our capital expenditures and product development initiatives.

"Thus far in 2013, we have seen strong order flow in our dyeing machine segment which we expect to continue throughout the year. As a result, we have added shifts, increased staff and placed orders for additional equipment to expand capacity and meet anticipated demand. We saw a nice increase in demand from wind power customers in the fourth quarter of 2012 and expect sales to remain near these levels in the remainder of 2013. We are also hopeful that favorable Chinese government policy towards domestic solar companies will influence demand by year end.

"We continue to utilize our expertise in manufacturing precision products to meet demand in new and existing end markets. We recently shipped a prototype of a new model of after-treatment textile equipment and have another model in the late stages of development. We are optimistic about sales of forged products to non-wind customers and are currently seeking to expand into other industries including oil and natural gas," Mr. Wu concluded.


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.


Tuesday, April 2, 2013
Comments & Business Outlook

2012 Preliminary Financial Results

For the full year ended December 31, 2012, the Company expects to report:

  • Revenues of approximately $57.2 million, as compared with approximately $55.6 million for 2011.
  • Income from operations of approximately $6.3 million, as compared with approximately $8.2 million for 2011, which primarily reflects an impairment loss of approximately $2.2 million relating to equipment which is no longer used by the Company in its business and which is classified as equipment held for sale.
  • Net income of approximately $4.2 million, or $1.65 per share (basic) and $1.58 per share (diluted), as compared with net income of approximately $5.8 million, or $2.94 per share (basic) and $2.30 per share (diluted) for 2011.
  • Cash flow from operating activities of approximately $10.6 million, as compared with approximately $10.4 million for 2011.
  • Cash flow used in investing activities, representing the purchase of property and equipment of approximately $10.7 million, as compared with approximately $11.1 million in 2011.
  • Cash flow from financing activities of approximately $0.4 million, as compared with $0.8 million in 2011.
  • Working capital of approximately $7.3 million at December 31, 2012, as compared with approximately $4.3 million atDecember 31, 2011.

Status of 10-K Filing

On January 3, 2013, the Company was informed by its independent registered public accounting firm, Sherb & Co., LLP, that it has combined its practice with RBSM LLP ("RBSM") effective January 1, 2013. The personnel who were responsible for the Company's account prior to January 1, 2013 were no longer responsible for conducting the audit of the Company's financial statements. RBSM has advised the Company that it was not able to complete its audit in sufficient time to enable the Company to make a timely filing of its Form 10-K for the year ended December 31, 2012.

The Company knows of no unresolved issues concerning the financial statements for the year ended December 31, 2012 and expects to file its Annual Report on Form 10-K on or before the 15th calendar day following April 1, 2012.  The Company also intends to hold a conference call to discuss its full year financial results and will issue a press release with the details of the call once the timing is confirmed.


Tuesday, March 12, 2013
Contract Awards

WUXI, China, March 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 has received purchase orders totaling RMB 23.7 million (approximately$3.8 million) for 42 airflow-dyeing machines from two new domestic customers.

Pursuant to the first purchase order, the Company will deliver 20 airflow-dyeing machines for a purchase price ofRMB 11.2 million (approximately $1.8 million). Cleantech Solutions has received an advance payment of approximately $0.2 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. The Company expects to begin delivering the units in June 2013. Pursuant to the second purchase order, the Company will deliver 22 airflow-dying machines for a purchase price of RMB 12.5 million (approximately $2.0 million). The Company has received an advance payment of approximately $0.6 million, or 30% of the purchase price, will receive an additional 60% of the purchase price upon delivery, and will receive the remaining 10% within three months of delivery. Cleantech Solutions expects to deliver the units in June 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 continue to see strong order flow within the textile industry, particularly for our airflow-dyeing machines using our patented production technique. We plan to build upon our success by further expanding our customer base in the coming months and expect to achieve sales growth in this segment in 2013," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Tuesday, January 29, 2013
Auditor trail

WUXI, China, January 30, 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 appointed RBSM LLP as its independent registered public accounting firm, following Sherb & Co., LLP's, ("Sherb") combining its practice with RBSM LLP on January 1, 2013.

The engagement of RBSM LLP as the Company's independent registered public accounting firm was approved by the Audit Committee of the Board of Directors of the Company on January 28, 2013. RBSM LLP, a member of Russell Bedford International (RBI), will provide services for Cleantech Solutions for the year ended December 31, 2012.

The decision to change auditors was not the result of any disagreement between the Company and Sherb, nor on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.


Tuesday, January 15, 2013
Comments & Business Outlook

WUXI, China, January 15, 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 a follow-on purchase order for airflow-dyeing machines from its existing domestic customer.

The purchase order provides for Cleantech Solutions to deliver a total of 21 airflow-dyeing machines using the Company's patented production technique, for a total purchase price of RMB 11.8 million (approximately $1.9 million). Pursuant to the purchase order, the Company has received an advance payment of approximately $1.1 million, or 60% of the purchase price, will receive an additional 30% of the purchase price upon installation, and will receive the remaining 10% within three months of installation. Cleantech Solutions expects to deliver the units in February 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 are pleased to see a continuous order flow for our airflow-dyeing machines, which have received strong validation from our long-term customers. Based on our proven track record, we are confident that we will secure more and larger orders in the coming months and that this segment will make a positive contribution to our business performance in 2013," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Monday, January 7, 2013
Contract Awards

WUXI, China, Jan. 7, 2013 /PRNewswire/ -- 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 two purchase orders for dyeing machines from its new and existing domestic customers.

The purchase orders provide for Cleantech Solutions to deliver a total of 84 dyeing machines, including 22 airflow-dyeing machines using the Company's patented production technique, for a total purchase price of RMB 20.2 million (approximately $3.2 million). Pursuant to the purchase orders, the Company has received an advance payment of approximately $1.0 million, or 30% of the purchase price, will receive an additional 60% of the purchase price upon installation, and will receive the remaining 10% within three months of installation. Cleantech Solutions expects to deliver the units in February 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 are excited to off start the new year with strong sales momentum from our airflow-dyeing machines. We remain optimistic about the ongoing replacement trend within the textile industry and are confident about enlarging our customer base with our proven quality products and services," said Mr. Jianhua Wu , Chairman and CEO of Cleantech Solutions. "We anticipate a continued positive trend in this segment of our business in 2013."


Thursday, December 27, 2012
Comments & Business Outlook

WUXI, China, Dec. 27, 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 recently received a new patent certificate(Patent No. ZL 20122 0165878.7)for an innovative production technique enabling more-effective clothwashing in dyeing machines under high temperature and pressure.

The new patent was issued by the State Intellectual Property Office of the People's Republic of China ("SIPO") and was granted to the Company's subsidiary, Wuxi Huayang Dyeing Machinery Co., Ltd., in November 2012. The patent will provide the Company with the exclusive use of this innovative production technique in dyeing equipment for a period of ten years.

The patent involves a change in the structure of dyeing equipment so as to create a cooling system that enables more effective clothwashing under high temperature and pressure. This technique has been proven to easily shed debris and cotton husks on the surface of fabric, and cloth can be washed much more cleanly. In addition, washing cloth within the cooling vats reduces the time required for dyeing, thereby reducing energy consumption and emissions.

"We are pleased to have been awarded this patent, which demonstrates our ability to develop proprietary and innovative production techniques that improveour product quality and enhance our market competitiveness," said Mr. Jianhua Wu , Chairman and CEO of Cleantech Solutions."With several more patents pending, we remain committed to maintaining ourproduct development efforts and believe they will provide the core foundation for us to secure additional orders and expand our market share in the air-flow dyeing machine market."



Wednesday, December 19, 2012
Research

Premium alert sent to members on 12/18/2012

Cleantech Solutions (CLNT) wowed investors with what appeared to be home run financial results for its third quarter ending September 30, 2012. Reported sales increased 48.5% to $17.3 million and EPS increased 91% to $0.88. CLNT attracted our attention after a bearish November 21, 2012 article was published on Seeking Alpha titled “A Troubling Visit to Cleantech Solutions.”

Following these developments and dramatic volatility in CLNT’s shares, we decided to visit CLNT for a firsthand glimpse of the company’s operations. While we cannot attest to how CLNT has used capital it has been able to raise in the U.S. or to the claims it has made in all of its prior disclosures, we have been able to cross check some of the company’s recent claims. Our initial due diligence confirms that a good deal of information disclosed to hold some credence.

See entire report here.

To be among the first to receive alerts like this, subscribe to our premium service!


Tuesday, December 18, 2012
CFO Trail

WUXI, China, December 18, 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's Board of Directors appointed Adam Wasserman as its Chief Financial Officer, effective on December 10, 2012, following the resignation of Ms. Wanfen Xu on the same day.

Ms. Xu's resignation did not result from any disagreement with the Company on any matters relating to its operations, policies or practices.

Previously, Mr. Wasserman had served as the Company's Vice President of Financial Reporting since 2008, under the terms of a consulting agreement between Cleantech Solutions and CFO Oncall, Inc., which provides chief financial officer services to various companies. Mr. Wasserman holds a bachelor of science from the State University of New York at Albany and is a member of The American Institute of Certified Public Accountants. He is also a director, treasurer and an executive board member of Gold Coast Venture Capital Association and has been a director of CD International Enterprises, Inc. since January 2010.

"We are pleased to have Adam take a more senior leadership role as he brings a very strong skill set and extensive experience in U.S. GAAP accounting, finance, and capital markets. We believe his experience with U.S. publicly traded companies and his long-term involvement with the Company is a great fit to our current needs," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.


Monday, December 3, 2012
Notable Share Transactions

WUXI, China, December 3, 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's Chairman and CEO Mr. Jianhua Wu and his wife Ms. Lihua Tang have agreed to purchase 157,966 shares of the Company's common stock for a total of $612,903 (RMB3,800,000) at $3.88 a share.

The investment will be primarily used for working capital at Wuxi Huayang Dyeing Machinery Co., Ltd., a subsidiary of Cleantech Solutions.

"With the recent flow of orders for our airflow-dyeing machines, we are optimistic about the ongoing replacement cycle in the textile industry and believe the current sale momentum will continue for the next few quarters, when we expect to see an increasing number of follow-on and larger orders as well as new orders from additional customers," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "The additional capital will help ensure we are well positioned to meet the needs of the anticipated ramp-up in sales and to acquire additional equipment required for our operations."


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.


Tuesday, November 13, 2012
Comments & Business Outlook

Third Quarter 2012 Results

  • Revenue for the third quarter of 2012 increased 48.5% to $17.3 million, compared to $11.7 million for the same period of 2011. Sequentially, revenue increased 35.2% compared to the second quarter of 2012.
  • Net income for the third quarter of 2012 was $2.4 million, or $0.88 diluted earnings per share, compared to $1.1 million, or $0.46 diluted earnings per share, in the third quarter of 2011.
"Against a weak macro-economic background, we are very pleased to have achieved 48.5% growth in revenues and 107.5% growth in net income during the third quarter of 2012. Our performance was driven by a sharp improvement in demand for our next generation of dyeing machines as well as solid growth in forged products for non-wind applications," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of Cleantech Solutions. "Profitability improved due to expansion of our gross margins to 24.9%, as well as strict controls over operating expenses. With an increasingly diversified portfolio of precision products, we believe we have greater flexibility to adjust to fluctuations in our served markets so as to optimize our performance," added Mr. Wu.
 

Business Outlook

"We had a very successful quarter, despite the significant challenges that are facing both the wind energy and the solar industry in the near term. Growth of our forged products for non-wind applications has been very strong, and we are exploring additional markets, including petroleum and petrochemical industries. We are also excited about the new opportunities presented in China's solar industry, which is expected to undergo some major change following recent supportive government policies, and we are also expanding our range to include high performance components for production equipment targeting smart phones and LED lighting. In the dyeing and finishing equipment segment, we are benefiting from a major upgrade cycle, as manufacturers embrace our more energy efficient and environmentally friendly technology. We anticipate strong growth potential in 2013 with the expected launch of our new after-treatment equipment, which is in the late stages of research and development.

"Thanks to improving volumes and strong expense controls, our margins improved dramatically in the third quarter. In the next few quarters, we continue to foresee a slight increase in our margins, as raw material costs are not expected to have great fluctuations given the general weak economy. We have been generating positive cash flow from operations and believe they are sufficient to fund our new product development initiatives," Mr. Wu concluded.



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."