Cleantech Innovations (OTC BB:EVCP)

3rd Quarter 2010 Financial Results

• Revenue of $13.06 million, compared to $0.71 million, an increase of 1,749% from Q3/2009.

• Net income of $2.32 million, compared to $0.19 million, an increase of 1,112% from Q3/2009.

• Earnings per Share (EPS) of $0.10 on a fully diluted basis, compared to $0.01, an increase of 900% from Q3/2009.

• Stable and reliable repeat customer base which consists of China's largest utility companies.

• Anticipates earnings growth momentum to continue throughout the rest of 2010.

Ms. Bei Lu, Chairman & CEO of CleanTech commented: "CleanTech is pleased with our record 3rd quarter financial results. Our financial performance reflects continued strength in our wind tower business as China implements nationwide policies towards supporting clean energy products. CleanTech is a direct beneficiary of a favorable market environment in China's wind industry, an environment we believe will continue for years to come. We anticipate strong earnings growth momentum to continue throughout 2010 and into 2011."

On July 2, 2010 CleanTech became a public entity via a reverse merger transaction.  On  the company completed a $10,000,000 round of financing.

 Company Snapshot:

CleanTech designs and manufactures high performance clean technology products that promote renewable energy production, pollution reduction and energy conservation in China.

Industry Snapshot:

• "China has limited fossil fuel reserves and must invest in renewable energy generation—such as wind—as part of a secure national energy plan. China adopted its first Renewable Energy Law in 2005, fostering the development of renewable energy and wind power. In 2007, China’s National Development and Reform Commission (“NDRC”) released its “Medium and Long-Term Development Plan for Renewable Energy in China.” The NDRC plan sets forth a renewable energy consumption target of at least 15% of China’s energy supply by 2020, with at least 3% of total power generation for areas covered by large-scale power grids to be wind-based production. This growth in wind-generated electricity will contribute towards China’s goal to cut its carbon dioxide emissions 40-45% by 2020 compared to 2005 levels, as announced in China’s carbon intensity goal in November 2009. According to the U.S. Department of Energy, a standard 1.5 megawatt wind turbine can displace 2,700 metric tons of carbon dioxide. The Renewable Energy Law and its amendments provide for priority grid access to wind farms, require grid operators to purchase power from qualified wind farms and fixes pricing of wind-produced electricity at rates of between 51-61 cents RMB per KWH. These clear government policies provide for stable rates of return on equity for wind farm operators, which stimulate investments in wind farms and drive the demand for our wind towers."
  
• "China’s government has implemented social, economic, environmental, regulatory and government stimulus-related factors to drive demand for clean technology products that promote renewable energy production, pollution reduction and energy conservation. Currently, China’s energy structure is reliant predominantly on coal. Through its policies and stimulus programs, China has placed a priority on renewable energy, diversification of the power supply and sustainable economic and social development. Simultaneously, the government is fostering pollution reduction policies to limit carbon dioxide, waste water discharge, and other pollutant emissions while continuing to grow China’s steel production and coal-based power capacity."

Post Merger Share Calculation:

•  44,008,000: Pre reverse merger outstanding shares 
•  40,000,000: Shares cancelled as part of the Share Exchange
•  15,122,000: Newly issued shares of Common Stock
•    3,333,333: Shares from private placement associated with private placement
•       500,000: Shares from private placement warrants with an excercise price @ $3.00.
• #####: Share issued to financial institutions (Agents)

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  22,963,333

Financial Snapshot:

• Net sales for the three months ended March 31, 2010, were $232,118, compared to $207,958 for the comparable period in 2009. Net sales increased $24,160 or 12%. The Company incorporated in September 2007 and was in the preparation and development stage from inception through the beginning of 2009; the Company started generating sales in early 2009, and has made continuous efforts in strengthening its sales force.
  
• For the three months ended March 31, 2010, net income was $95,153, compared to $14,030 for the comparable period in 2009, an increase of $81,123, or 578%. This increase in net income was mainly a result of receipts of $373,229 in subsidy income during the three months ended March 31, 2010, which was a grant from Administrative Committee of Liaoning Province TieLing Economic & Technological Development Zone to attract businesses with high-tech products to do business in such zone.