China Wind Systems (CWS) research, news, and more from GeoInvesting

Company description

Mon, 07 Apr 2008 04:00:00 GMT

China Wind Systems, through its affiliates, Huayang Dye Machine and Huayang Electrical Power Equipment, manufactures and sells industrial equipment for use in the textile and energy related industries in China. Since August 2007, the company has shifted its strategy to focus on the growing wind energy industry in China, and has begun to supply high precision rolled rings to companies in the wind power energy industry.

Reverse Merger Filing

Investor Alert

Mon, 07 Nov 2011 05:00:00 GMT

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On November 3, 2011, the Company received a staff deficiency notice from The Nasdaq Stock Market informing the Company that its common stock failed to comply with the requirement that the common stock maintain a minimum market value of publicly held shares of $5,000,000. The staff deficiency notice said that the Company failed to meet this requirement because the market value of publicly held shares was below $5,000,000 for the period from September 22, 2011 to November 2, 2011. Nasdaq computes the market value of publicly held shares by multiplying the number of publicly held shares based on the most recent publicly held shares information, by the closing bid price. Publicly held shares are defined under the Nasdaq rules as shares not held directly or indirectly by an officer, director or any person who is the beneficial owner of more than 10% of the total shares outstanding.

Nasdaq’s letter stated that, to regain compliance, the Company’s market value of publicly held shares must close at $5,000,000 or more for a minimum of ten consecutive business days within the 180-day compliance period, which is the 180-day period commencing on November 3, 2011, the date on which the Company received the staff deficiency letter. In the event the Company does not regain compliance within this period, it will receive written notice that its common stock is subject to delisting. However, the Company may file a listing application to transfer its common stock to the Nasdaq Capital Market if, at that time, it meets the continued listing requirements of that market.

Comments & Business Outlook

Thu, 16 Jun 2011 04:00:00 GMT

WUXI, China, June 16, 2011 /PRNewswire-Asia/ -- Cleantech Solutions International, Inc. (formerly known as China Wind Systems, Inc.) (NASDAQ: CWS), a manufacturer of technically advanced metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has changed its corporate name to Cleantech Solutions International, Inc. on June 13, 2011. In connection with the name change, the Company's common stock will begin trading on the NASDAQ under the new ticker symbol of "CLNT" as of June 16, 2011.

The change of corporate name was approved at the Company's 2011 annual meeting of stockholders, at which the stockholders elected Jianhua Wu, Drew Bernstein, Min Li, Xi Liu, and Tianxiang Zhou as directors to serve until the 2012 annual meeting and approved an amendment to the Company's certificate of incorporation which changed the corporate name to Cleantech Solutions International, Inc.

"Our new corporate name more clearly reflects our strategic focus on delivering solutions to the clean technology industries in China and internationally. We are expanding our strategic focus beyond the wind energy sector to cover solar power and other clean technology industries," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of Cleantech Solutions.

"We believe the new corporate name reflects our market position as a leading supplier of forged components to the wind power and other industries and clean energy equipment or components to the solar and textile industry. We are committed to continually expanding our production capacity and broadening our product portfolio by delivering clean technology solutions in the future."

Liquidity Requirements

Mon, 23 May 2011 04:00:00 GMT

Investors may want to take note of the 180 degrees turn CWS 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.

The GeoTeam®will still assume that CWS will attempt to raise money to execute its business plan, regardless of updated commentary.

Comments & Business Outlook

Tue, 17 May 2011 04:00:00 GMT

First Quarter 2011 Financial Highlights

Revenue increased 4.3% year-over-year to $17.6 million
Revenue from the sale of forged products to the wind power and other industries increased 13.2% year-over-year to $13.4 million, or 76.4% of revenue
Revenue from the sale of forged products exclusively to the wind power industry increased 46.5% year-over-year to $10.2 million, or 58.0% of revenue
Operating income increased 24.1% year-over-year to $3.6 million
Net income increased 36.9% to $2.7 million
Diluted earnings per share were $0.10, compared to $0.08 in the same period of 2010

"During the first quarter of 2011, sales to the wind power industry increased as we expanded our customer base and delivered large scale orders of forging equipment used in the wind power industry. As a result of our increased focus on the wind power segment, sales of our forging equipment to other industries continued to soften. In addition, the decrease in revenue from the sale of dyeing and finishing equipment reflects the business cycle as well as delays in purchasing new equipment designed to meet stricter environmental standards imposed by the Chinese government as textile manufacturers evaluate both their projected business in uncertain economic times and new equipment designed to meet the new standards. Longer-term, we believe the new policies will generate a demand for our next generation dye machine models that were introduced in November 2010, which we believe meets the new standards," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of China Wind Systems. "During the quarter, we continued our efforts to capitalize on the attractive growth opportunities in the clean energy sector. We recently received two follow-on purchase orders of solar chamber subassemblies worth $1.1 million."

Business Outlook

China Wind Systems delivered sample product units used in the solar power industry over the past few months. Following successful inspection and approval by its customer, the Company received a total of two purchase orders for approximately $1.1 million from its customer to deliver solar chamber subassemblies. The Company will supply these units of solar chamber subassemblies by June 2011.

The Company is currently producing subassemblies for equipment used in the wafer production of multi crystalline silicon products and plans to roll out products used for mono crystalline silicon products over the next few months. The Company expects the market for the mono crystalline silicon products to present a significant growth opportunity in the next 12-18 months time frame. In 2011, the Company plans to purchase new manufacturing equipment to enhance efficiency and ramp up production of its solar segment.

"We are confident that sales of our next generation air dyeing machines, which meet the PRC government's environmental standards, will continue to grow. In the coming quarters, we expect to see increased sales of our new dye machine models," commented Mr. Wu. "We will continue to focus on the wind energy sector and work with our existing and potential customers to maintain our market position despite the difficult pricing environment. We are also pleased with our co-operation with our first customer in the solar industry and are excited about the growing opportunities in the clean energy sector both domestically and internationally."

Deal Flow

Tue, 05 Apr 2011 04:00:00 GMT

WUXI, Jiangsu, China, April 1, 2011 -- China Wind Systems, Inc. today announced that it has filed an application with the Securities and Exchange Commission to withdraw its Registration Statement on Form S-3, which became effective on May 14, 2010.

The Company requested to withdraw its Registration Statement because it does not intend to pursue the sale of the securities under the current market conditions. No securities were sold pursuant to the Registration Statement.

Investor Alert

Sun, 03 Apr 2011 04:00:00 GMT

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 manufacture our products and continue in business.

CWS just withdrew its registration statement:

Pursuant to Rule 477 promulgated under the Securities Act of 1933, as amended, China Wind Systems, Inc. hereby requests that the Securities and Exchange Commission consent to the withdrawal of the Company’s Registration Statement on Form S-3 (Registration No. 333-166341), together with all amendments and exhibits thereto. The Company is requesting withdrawal of the Registration Statement because it has elected not to pursue the sale of the securities included therein at this time.

Liquidity Requirements

Sun, 03 Apr 2011 04:00:00 GMT

Comments & Business Outlook

Wed, 30 Mar 2011 04:00:00 GMT

Fourth Quarter Results:

Revenue for the fourth quarter of 2010 increased 41.5% to $22.5 million, compared to $15.9 million in the same period of 2009.
Gross profit for the fourth quarter of 2010 increased 41.0% to $6.1 million, compared to $4.3 million for the same period in 2009.
Diluted earnings per share were $0.13, compared to $0.11 in the same period of 2009.

"In the fourth quarter of 2010, we continued to expand our market presence in the wind sector. We reported strong year-over-year and quarter-over-quarter revenue growth from our business selling forged products to the wind industry," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of China Wind Systems. "During the quarter, we delivered precision forged products from our newly built electro-slag remelting (ESR) facility while maintaining output from our traditional forged rolled ring facility. However, gross margin for our ESR products did not meet our previously anticipated level and we are revising down our margin guidance for our ESR products to 32%-35% range. In addition, our next generation, energy efficient and environmentally friendly dyeing machines continue to gain increased traction and we are receiving strong customer interest."

"Our next generation dye machine models continue to generate increased interest from new and existing customers and we expect to achieve a higher sales contribution from this segment. We believe clean energy solutions will drive our future growth and profitability and we are committed to focusing on this area to create both environmental benefits and sustainable shareholder value."

Business Outlook

As previously announced in November 2010, China Wind received a conditional purchase order for approximately $1.0 million to supply precision manufactured subassemblies for solar cell manufacturing equipment. The Company has completed delivery of two initial units to the customer and has received purchase orders to supply 15 additional units by May 2011.

In addition, the Company has received positive customer feedback on its next generation air dye machine equipment which it launched in November 2010. The next generation dye machine model is designed to be environmentally friendly and energy and cost efficient as it uses mostly airflow instead of water to help dye clothing. Since its introduction, the Company has recorded sales of approximately $1.0 million through March 29, 2011, reflecting, in part, government policies which encourage the use of energy efficient and environmentally friendly equipment. The Company also expects to deliver another 11 units of air dye machine for total revenue of $0.9 million by the second quarter of fiscal 2011. Mr. Wu concluded, "In addition to supplying components to the wind industry, we have made significant progress in delivering clean energy products and solutions in other sectors. In the solar market, we are pleased with the initial feedback from our customer. We are confident that our products will meet our customer's requirements and look forward to entering into a long term supply contract. This will mark a major milestone for China Wind Systems as we diversify our product offering to the solar industry.

Notable Share Transactions

Mon, 24 Jan 2011 05:00:00 GMT

WUXI, China, Jan. 24, 2011 -- -- China Wind Systems, Inc. today announced that the Company sold 35,014 shares of its common stock to Fernando Liu, its newly-elected Chief Financial Officer, at $3.57 per share for a total purchase price of $125,000. The purchase price per share represents the market price on January 18, 2011, the date the Company and Mr. Liu agreed upon the purchase by Mr. Liu. The transaction was approved by the Company's audit committee and board of directors on January 18, 2011. Under the audit committee charter, audit committee approval is required for transactions between the Company and related parties.

CFO Trail

Tue, 04 Jan 2011 05:00:00 GMT

WUXI, China, Jan. 4, 2011 /PRNewswire-Asia/ -- China Wind Systems, Inc. today announced that the Company has appointed Mr. Fernando Liu, CPA, as its Chief Financial Officer, effective January 1, 2011.

Comments & Business Outlook

Tue, 16 Nov 2010 05:00:00 GMT

Third Quarter 2010 Highlights and Recent Events

Net revenue increased 31.8% year over year to $21.3 million
Operating income increased 21.0% year over year to $4.1 million
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 28.2% year over year to $5.1 million
Net income increased 19.0% to $3.0 million
Diluted earnings per share rose 33.3% to $0.12; year ago diluted earnings per share reflects a $0.5 milliondeemed preferred dividend.
In July 2010, the Company delivered the first customer shipment of its Electro-Slag Remelted (ESR) forged products.
In August 2010, the Company received a$4.5 millioncontract to supply rolled rings to Luoyang Xin Qiang Lian Bearing Co., Ltd.

"In the third quarter of 2010, we achieved significant progress in terms of new orders for our wind power business," commented Mr. Jianhua Wu, Chairman and CEO of China Wind Systems, Inc. "In keeping with our aim to supply high quality components to the renewable energy sector, we recently expanded into the solar market as supplier of precision components for solar cell manufacturing equipment with a $1 million conditional purchase order. We expect to receive increased interest from renewable energy players, which will be an important driver for China Wind's future revenue and net income growth."

Business Outlook

"We anticipate continued growth from our wind power business as industry analysts estimate that the Chinese government will spend as much as RMB1.5 trillion, or $224 billion, on wind power over the next decade, representing 30% of the RMB5.0 trillion planned alternative energy spending," said Mr. Wu. "We also see potential expansion and growth opportunities in different industries within the alternative energy sector, such as our recent conditional purchase contract to supply precision components for solar cell manufacturing equipment. We already possess the required manufacturing skills due to our prior experience in manufacturing heavy machinery. Based on our customer's current estimates and anticipated order flow, if this initial order proves successful, its potential purchases on annual basis during 2011 could total between $12 million and $20 million."

The Company maintains its 2010 revenue estimate to be in the range of $76.5 million to $85.0 million, and lowered its estimates for EBITDA, a non-GAAP measurement, to be $20.0 million from a prior range of $22.7 million to $25.2 million and net income to be $12.0 million from a prior range of $15.5 million and $16.3 million.

The Company revised its 2010 guidance as its new ESR facility took longer than anticipated to achieve target gross margins.

Investor Presentations

Mon, 27 Sep 2010 04:00:00 GMT

During the week of September 14, 2010, the Company made a presentation to investors at the Rodman & Renshaw Global Investment Conference held in New York.

Comments & Business Outlook

Tue, 17 Aug 2010 04:00:00 GMT

Second Quarter 2010 Highlights:

Net revenue increased 39.7% year over year to $19.0 million.
- Revenue from the sale of forged products to the wind power and other industries increased 40.5% year over year to $13.8 million, or 72.5% of net revenues.
- Revenue from the sale of forged products exclusively to the wind power industry increased 152.1% year over year to $9.2 million, or 48.4% of net revenue.
Operating income increased 59.4% year over year to $4.0 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 46.4% year over year to $4.7 million.
Net income increased 69.8% to $3.0 million, or $0.12 per diluted share

"During the quarter, our forged products continued to experience strong growth, led by a significant increase in demand from our wind power customers," commented Mr. Jianhua Wu, Chairman and CEO of China Wind Systems, Inc. "In addition, we are currently in final stages of negotiations with a number of wind power component clients to supply shafts and other forged products in the second half of 2010. We believe wind power is becoming an economically viable source of clean and renewable energy, promotes energy conservation and reduces carbon emissions in China, and we believe that the Chinese government will continue to extend strong support to this sector. We plan to leverage on what we see as our competitive edge in the industry to strengthen our market position."

Business Outlook

In response to growing demand for the Company's forged products for the wind industry, China Wind Systems plans to add an additional small-scale production line to complement its current forging facility and support strong order flow. The Company is in final stage of negotiations with a number of wind power component clients to supply shafts and other forged products in the second half of 2010.

"We have received positive feedback on our ESR and forged products and heightened interest from a number of potential wind energy clients, some of whom received trial products from us," commented Mr. Wu. "In the short term, we plan to add a new fabrication machine to meet the customization requirements by our clients. Our ESR production line has quickly ramped up to full utilization during the third quarter of 2010, and we plan on expanding ESR production as we receive orders from new customers. We anticipate significant growth in demand for our ESR products as they gain wide acceptance among wind power component manufacturers. With the Chinese government's recently announced commitment to invest RMB 5.0 trillion (or $737.5 billion) in new energy, we believe the wind energy sector in China will continue to flourish."

The Company reaffirms its 2010 financial guidance estimating:

Revenues to be in the range of $76.5 million to $85.0 million.
EBITDA, a non-GAAP measurement, is expected to be in the range of $22.7 million to $25.2 million.
Net income is anticipated to be between $15.5 million and $16.3 million.

The Company anticipates stronger demand for both its traditional forged products and ESR forged products in 2010, as management expects stronger sales of precision forged products used in large wind turbines. The Company anticipates revenue contributed by its wind industry segment will increase by approximately 75% year over year to $35 million.

Research

Tue, 13 Jul 2010 04:00:00 GMT

Added to the GeoBargain list on December 9, 2009 @ $4.40

Catalyst: Appeared to be on the cusp of strong EPS growth; Operates in an industry segment that the Chinese Government will promote.

Peak performance: Reached a high of $8.20 on January 1, 2010

Current Price:$4.36

Current road block: A capital raise seems likely, especially since the company has issued 2010 net income guidance with no EPS guidance and has filed an S-3 to potentially offer stock; Dealing with some internal control issues.

Again, our hands are tied. How should investors approach a bullish story when EPS growth is the unknown? CWS reported 2009 EPS of $0.34.

	1st quarter 2009	2nd Quarter 2009	3rd Quarter 2009	4th Quarter 2009
Company Supplied Non-GAAP Net Income	$646 Thousand	$1.78 Million	$2.5 Million	$2.7 Million
Company Supplied Non-GAAP EPS	$0.03	$0.09	$0.11	$0.11
Fully Diluted Shares	19,664,343	20,256,154	23,506,936	24,006,547

For the 2010 first quarter CWS reported net income and EPS of $1.9 million and $0.08, respectively.

Based on a 2010 adjusted net income guidance range of $15.5 million and $16.3 million, CWS is expecting to report around $14.0 million for the remaining nine months of 2010. This works out to about $0.55 ($0.18 per quarter) using the 2010 first quarter's share count of 25.4 million. CWS reported adjusted net income of $5.9 million for the last nine months of 2009 or EPS of $0.29.

We have taken this information and calculated what we call the dilution threshold, or how much stock a firm could issue while still achieving EPS growth of at least 30.0% in each of the next three quarters. In the case of CWS, it could issue around an additional 26.0% more shares ( 6.6 millon) and still achieve at least 30% quarterly EPS growth. Complicating the matter is that CWS still has 3.97 million shares of deep-in-the-money warrants outstanding, yet to be exercised. Investors who choose to take an ultra conservative stance, by considering the warrants, would attain a dilution threshold of 10.4% more shares ( 2.63 million). (We are speculating that given the recent market uncertainty, some investors may have chosen to exercise their warrants).

Ultimately, it may be prudent not to be overly aggressive until more clarity is provided on the amount of shares CWS may offer in the future. Although, given the dilution threshold, the story seems strong enough to warrant some exposure, especially as no shares have yet been issued, which bodes well for the June 2010 quarter and will increase the threshold. We were able to confirm that 2010 guidance does not include a capital raise assumption. Also, analyst net income estimates are below the company's guidance, implying that we could be in store for EPS upside surprises. (The Brean Murray 2010 EPS estimate is $0.42).

CWS will likely tap the equity markets:

"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 is sufficient to enable us to satisfy our purchase commitments and to otherwise complete our second expansion project for our business. If we are unable to obtain necessary capital to pay our purchase commitments and we cannot find alternative financing we may be unable to complete the next phase of our expansion or finance the growth of our existing business, which may impair our ability to operate profitably. During 2009 and the first two months of 2010 we raised approximately $5.4 million from the private sale of our debt and equity securities, including the exercise of outstanding warrants, in a number of transactions. A significant portion of the funds were raised on terms which we did not consider favorable."

The fact that CWS's cash flow ratio and cash ratio, discussed below, are less than one also supports this assumption.

Our intent over the short-term is to build a check list to assess the risk position of firms in the ChinaHybrid space. For the time being this will consist of the following: (this list is likely to grow substantially)

- Is the company's auditor ranked in the top 100?
- Is the auditor located in the USA? If located in China the PCAOB (Public Company Oversight Board) may be denied access to investigate the practices of the auditing firm. Short sellers have been using this information as a tool to validate their opinions.
- Are the company's internal controls satisfactory?
- Are their any outstanding legal issues?
- Do the company's top ten customers represent less than 10% of revenues?
- Operating cash flow divided by current liabilities is greater than one. The higher the better. (we will use annualized cash flow run rate and eliminate non-cash charges from account liabilities ).
- Cash divided by Current Liabilities is greater than one. This is the most conservative liquidity ratio.
- Is the company buying back stock?

Criteria	Meets Criteria	Notes
Top 100 Auditor	No	Sherb & Co., LLP
Auditor located in U.S.A.	Yes	New York, New York
Satisfactory Internal Controls	No	"Management has determined that our internal audit function is also significantly deficient due to insufficient qualified resources to perform internal audit functions. The company has taken steps that it believes will remediate the significant deficiency and continue to monitor the effectiveness of these steps and make any changes that our management deems appropriate. "
No Legal issues	Yes	None Found
Customer Concentration	No	During the three months ended March 31, 2010, one customer accounted for 23% of the Company’s total sales
Annualized Cash Flow Ratio is Greater than 1	No	0.84
Cash Ratio is Greater than 1	No	0.30
Buying Back Stock/Insider Buying	No	n/a

GeoTeam® Note:

Please note: On July 6, 2010, the GeoTeam® removed all Chinese stocks that were on GeoBargains and GeoSpecial lists to respective Radar lists as we complete our "quality assessment."

Short term and risk adverse investors should be aware of the quality issues currently present in the ChinaHybrid Space, questioning the validity of what seem like solid fundamental stories. It is beginning to get ugly so be cautious and understand that more pain may have to be endured, as ChinaHybrids are easy prey for short investors. The broad brush that is being applied to theses stocks appears unfair, but we can’t ignore the psychological impact this can have on investors' portfolio decisions. If history is our guide, fear will eventually create an immense opportunity to invest in the companies that prove they can meet quality litmus tests enact shareholder friendly moves. Credibility can also be restored if independent legal/SEC opinions validate accounting practices currently in question.

***Very Important GeoTeam® note. We have yet to verify if the Chinese filings for ChinaHybrid stocks we monitor match respective SEC filings. We are in the process of completing this task. Although we are not totally convinced that SAIC filings are an accurate represenation of financial statements the issue is impacting stock prices. Conservative investors may want to limit exposure or buy put options on stocks, that have this availability, as insurance against long positions, until we publish our findings. Odds are we will identify some promising companies that will fail this litmus test.

see relevant articles

Comments & Business Outlook

Fri, 14 May 2010 04:00:00 GMT

"We are energized by the strong business momentum that marked the first quarter of 2010," commented Mr. Jianhua Wu, Chairman and CEO of China Wind Systems, Inc. "Given that China is expanding its wind energy capacity more than any other country in the world, we believe that demand for our forged components will continue to demonstrate high growth, particularly with our newly launched super-strength ESR products."

"Thus far in 2010, we have experienced strong order flows, particularly for our forged components designed for the wind power industry," commented Mr. Wu. "We remain in active negotiations with numerous wind energy players since firmly establishing ourselves as a superior provider of high quality forged components in China. As we deliver the first batch of ESR products, we are confident that we will sign more customers, further strengthening our competitive position in the industry. Given the Chinese government's commitment to reduce carbon dioxide emissions, we believe the industry growth momentum will continue to support the expansion of our business."

The Company expects 2010

Revenues to be in the range of $76.5 million to $85 million. In 2010.
Earnings before interest, tax, depreciation and amortization, which is generally referred to as EBITDA and is a non-GAAP financial measure, is expected to be in the range of $22.7 million to $25.2 million. (In the Company's press release dated May 11, EBITDA for 2009 was incorrectly stated as $11.0 million; EBITDA in 2009 was $12.6 million.)
Adjusted net income, which excludes non-cash expenses related to convertible securities and warrants, is anticipated to be between $15.5 million and $16.3 million.

GeoBargain Notes

Mon, 22 Feb 2010 05:00:00 GMT

China Wind Systems reported preliminary 2009 year end results this morning. The company did not provide fourth quarter figures. So we will take the liberty to do this task for them.

4th Quarter 2009 vs. 2008 Financial Snapshot Ended December

	4th Quarter 2009	4th Quarter 2008
GAAP Revenue	$15.8 million	$10.9 million
Company Supplied Non-GAAP EPS	$0.11	$0.06

FULL YEAR 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED December

	Full Year 2009	Full Year 2008
GAAP Revenue	$53.4 million	$42.3 million
Non-GAAP EPS ^a	$0.34	$0.27

Source: PR Newswire (February 22, 2010)

It appears that China Wind Systems met fourth quarter analyst EPS estimates. We expect to attain color on 2009 and 2010 outlook when the company files its 10K

^a Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

Comments & Business Outlook

Thu, 10 Dec 2009 05:00:00 GMT

"As we continue to increase the utilization rate at our forging facility, we anticipate gaining momentum for our sales activity," commented Mr. Wu. "Upon completion of our ESR production line, we expect to be in a stronger position to apply for the highly valued international certifications that we believe are necessary for us to win larger contracts to supply wind energy components to major industry players. In addition, we expect to achieve higher gross margins in our ESR forged product line, which is anticipated at approximately 35%-40%. Given anticipated consolidation in the wind energy components industry, we are focused on improving the quality of our products to further distinguish the Company."

Source: PR Newswire (November 17, 2009)