CleanTech Innovations, Inc. Announces Record First Quarter 2011 Financial Results

News provided by

CleanTech Innovations, Inc.

May 16, 2011, 06:55 ET

NEW YORK, May 16, 2011 /PRNewswire/ --

  • Q1/2011 revenue of approximately $4.0 million, an increase of approximately 1,600% from Q1/2010
  • Q1/2011 gross profit was approximately $1.1 million, an increase of approximately 800% from Q1/2010
  • Q1/2011 net income of approximately $0.5 million, an increase of 424% from Q1/2010
  • More than $50 million in order backlog in 2011 for wind tower delivery to some of China's largest power companies
  • Anticipates winning additional wind tower supply contracts in 2011
  • Management share lockup through December 2013

CleanTech Innovations, Inc. (OTCQB: CTEK), a U.S. company and market leader in China's clean technology solutions in the wind energy industry, announces record financial results for the first quarter ended March 31, 2011.

Financial Highlights:

Q1/2011 Revenue:

Record revenue in the first quarter of 2011 of approximately $4.0 million, an increase of $3.7 million or approximately 1,600% compared to $0.23 million in Q1/2010. The significant increase in revenue was due to our entry into the high margin wind tower manufacturing business in early 2010 and our fulfillment of wind tower supply contracts with some of China's largest power companies.

Q1/2011 Net Income:

Net income for the first quarter of 2011 increased to approximately $0.5 million from $0.1 million in Q1/2010. The increase in net income was attributable to the increased sales of our wind towers.

2011 Order Backlog:

CleanTech has signed contracts and received orders totaling more than $50 million (including VAT tax) for the delivery of our wind tower products in 2011 to various wind energy companies in China. CleanTech anticipates fulfilling these orders, as well as potentially receiving new orders, in 2011.

Management Comments:

Bei Lu, Chairman & CEO of CleanTech, commented: "CleanTech is very pleased with our first quarter financial results in what is normally the slowest seasonal quarter each year. Our strongest quarters typically are the second half of each year. During the first quarter, we noticed strong customer demand for wind towers. Our product quality is excellent and we also have expanded our production capacity. We anticipate the positive market trend to continue throughout 2011."

Business Outlook

Ms. Lu continued: "Since the recent nuclear crisis in Japan, China has put a greater sense of urgency into expanding its wind energy industry through funding and other financial support. We believe the current favorable market environment for the wind energy industry in China has presented the best historical opportunity for a wind energy equipment supplier like CleanTech to expand further. CleanTech is in an excellent position to potentially win additional wind tower supply contracts in 2011 from China's largest energy companies."

3-Year Share Lockup, Total Commitment to CleanTech's Long-Term Shareholders

"CleanTech's entire management team has voluntarily locked up its shares for 3 years, restricting sales of their shares to the general public through December 2013. CleanTech management's fundamental interests are aligned with those of our public shareholders. We look forward to a year of record earnings growth in 2011 in the clean technology wind energy industry," concluded Ms. Lu.

About CleanTech Innovations, Inc.

CleanTech Innovations, Inc. is a U.S. company and a leading designer and manufacturer of structural towers for megawatt-class wind turbines and highly engineered metal components used in the wind energy and steel industries in China. CleanTech designs and manufactures high performance clean technology products that promote renewable energy generation, energy savings and pollution reduction. CleanTech's longstanding customers include China Guodian, Huaneng Power, Sinosteel and other global Fortune 500 companies and industrial giants in China.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect CleanTech's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in CleanTech's filings with the Securities and Exchange Commission.

Corporate Contact


Mr. Jason Li


Corporate Communications


CleanTech Innovations, Inc.


Tel: 011-86-157-1403-7180


Email: [email protected]


Website: www.ctiproduct.com

CLEANTECH INNOVATIONS, INC. & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2011 (UNAUDITED) AND DECEMBER 31, 2010









2011

2010

ASSETS






CURRENT ASSETS:


    Cash and equivalents

$   5,413,383

$ 13,308,568

    Restricted cash

1,235,928

281,569

    Accounts receivable, net

15,134,195

13,988,139

    Other receivables and deposits

782,265

775,871

    Retentions receivable

138,883

105,911

    Prepayments

413,904

233,904

    Advances to suppliers

4,477,659

852,518

    Inventories

2,676,386

2,440,591

    Notes receivable

-

75,498




            Total current assets

30,272,603

32,062,569




NONCURRENT ASSETS:


    Prepayments for land use right

311,509

-

    Long-term investment

91,514

90,597

    Retentions receivable

2,861,583

2,460,202

    Prepayments

316,939

315,392

    Property and equipment, net

10,907,531

10,721,944

    Land use right and patents, net

3,662,767

3,645,622




            Total noncurrent assets

18,151,843

17,233,757




TOTAL ASSETS

$ 48,424,446

$ 49,296,326




LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:


    Accounts payable

$   1,317,682

$   1,960,401

    Unearned revenue

178,802

252,903

    Other payables and accrued expenses

100,062

465,662

    Taxes payable

415,682

921,767

    Advance from shareholder

256,643

302,305

    Short-term loans

13,660,545

3,865,493

    Short-term payable, net of unamortized interest

373,678

369,937




         Total current liabilities

16,303,094

8,138,468




NONCURRENT LIABILITIES:


    Advance from shareholder

205,132

255,796

    Long-term loan

-

10,000,000

    Long-term payable, net of unamortized interest

1,243,756

1,217,241




        Total noncurrent liabilities

1,448,888

11,473,037




Total Liabilities

17,751,982

19,611,505




CONTINGENCY AND COMMITMENTS






STOCKHOLDERS' EQUITY:


      Preferred stock, $0.00001 par value, 100,000,000 shares

-

-

             authorized, no shares issued and outstanding as of




             March 31, 2011, and December 31, 2010, respectively




      Common stock, $0.00001 par value, 100,000,000 shares

250

250

             authorized,  24,982,222 and 24,963,322 shares issued


             and outstanding as of March 31, 2011,




             and December 31, 2010, respectively


     Paid-in capital

20,606,861

20,514,442

     Statutory reserve fund

966,865

890,122

     Accumulated other comprehensive income

1,427,529

1,030,432

     Retained earnings

7,670,959

7,249,575




         Total stockholders' equity

30,672,464

29,684,821




TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 48,424,446

$ 49,296,326

CLEANTECH INNOVATIONS, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)









2011

2010




Net sales

$ 3,932,665

$    232,118

Cost of goods sold

2,859,117

112,567




Gross profit

1,073,548

119,551




Operating expenses


    Selling

289,892

53,978

    General and administrative

607,231

162,468




    Total operating expenses

897,123

216,446




Income (loss) from operations

176,425

(96,895)




Non-operating income (expense)


  Interest income

10,105

3,341

  Interest expense

(327,019)

(103,986)

  Other income

4,472

-

  Other expenses

(12,582)

(42,376)

  Subsidy income

800,111

373,229




    Total non-operating income

475,087

230,208




Income before income tax

651,512

133,313

Income tax expense

(153,385)

(38,160)




Net Income

498,127

95,153

Foreign currency translation

397,097

1,374




Comprehensive Income

$    895,224

$      96,527




Basic weighted average shares outstanding

24,971,019

15,122,000




Diluted weighted average shares outstanding

25,216,184

15,122,000




Basic earnings per share

$          0.02

$          0.01




Diluted earnings per share

$          0.02

$          0.01

CLEANTECH INNOVATIONS, INC. & SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED)












2011

2010





CASH FLOWS FROM OPERATING ACTIVITIES:


           Net income

$    498,127

$      95,153

           Adjustments to reconcile net income to net cash


           (used in) provided by operating activities:


           Depreciation and amortization

145,414

20,594

           Stock options

35,719

-

           Amortization of interest expense

14,147

-

           (Increase) decrease in assets:



Restricted cash

(947,638)

(450,204)

Accounts receivable

(1,000,515)

420,280

Retentions receivable

(406,741)

(8,302)

Notes receivable

75,951

-

Other receivables, deposits and prepayments

(176,919)

(36,905)

Advances to suppliers

(3,912,039)

(1,166,304)

Inventories

(210,255)

(374,008)

           Increase (decrease) in liabilities:



Accounts payable

(659,846)

902,705

Other payables and accrued expenses

(368,635)

2,178,195

Unearned revenue

(76,346)

22,096

Taxes payable

(513,308)

(117,642)





           Net cash (used in) provided by operating activities

(7,502,884)

1,485,658





CASH FLOWS FROM INVESTING ACTIVITIES:



Prepayment for construction

-

(2,239,226)

Acquisition of property & equipment

(202,624)

(1,289,395)

Acquisition of intangible assets

-

(60,119)





           Net cash used in investing activities

(202,624)

(1,349,514)





CASH FLOWS FROM FINANCING ACTIVITIES:



Cash proceeds from warrants exercise

56,700

-

Repayment to shareholder

(101,555)

-

Proceeds from short-term loans

-

5,565,156

Repayment of short-term loans

(243,043)

(5,565,156)

Contribution by shareholders

-

922,927





           Net cash (used in) provided by financing activities

(287,898)

922,927





EFFECT OF EXCHANGE RATE CHANGE ON CASH & EQUIVALENTS

98,221

256





NET (DECREASE) INCREASE IN CASH & EQUIVALENTS

(7,895,185)

1,059,327





CASH & EQUIVALENTS, BEGINNING OF PERIOD

13,308,568

1,295,145





CASH & EQUIVALENTS, END OF PERIOD

$ 5,413,383

$ 2,354,472





Supplemental Cash flow data:


  Income tax paid

$    153,385

$      14,949

  Interest paid

$      73,688

$    103,232

SOURCE CleanTech Innovations, Inc.

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