China Solar & Clean Energy Solutions Announces Divestment of Shenzhen Subsidiary and Full Refund of Investment Paid
10 July 2009 - 12:30AM
PR Newswire (US)
Transaction to eliminate a drag on profits for China Solar as well
as improve Company's cash position BEIJING, July 9
/PRNewswire-Asia/ -- China Solar & Clean Energy Solutions, Inc.
(Formerly known as "Deli Solar (USA), Inc.") (OTC:CSOL) (BULLETIN
BOARD: CSOL) ("China Solar"), a premier manufacturer and
distributor of solar water heaters, space heating devices and
renewable energy solutions in the People's Republic of China
("PRC"), today announced that its wholly owned subsidiary, Beijing
Deli Solar Technology Development Co., Ltd. ("Deli-Solar
(Beijing)"), has entered into a definitive agreement of divestment
of its 100% equity interests in Shenzhen PengSangPu Solar
Industrial Products Corporation ("SZPSP") to the local management
of SZPSP. The transaction is expected to be completed by September
6, 2009. Under the terms of the Agreement, Deli-Solar (Beijing)
will recoup 100% of its investment in SZPSP in two installments by
early September. Deli-Solar (Beijing) will receive the
RMB28,800,000.00 (US$4,222,873.90) in cash and 939,364 shares in
common stock of China Solar it had paid to the shareholders of
SZPSP for the purpose of acquiring a 100% equity interest of SZPSP.
"The divestiture of SZPSP will improve our cash position and is
consistent with our core strategy of focusing on profitable
businesses," said Mr. Deli Du, Chief Executive Officer of China
Solar. "As we are actively pursuing a transformation into a leading
new energy solutions provider in China, it is necessary to take
measures to streamline our operation and leverage resources to
focus on profitable opportunities and effectively maximize our
shareholders' interests." The weak performance of SZPSP has been a
drag on the financial results of China Solar for the year 2008 and
the first quarter of 2009. For the three months ended March 31st,
2009, the total revenue from SZPSP was US$1,078,770, accounting for
17% of the total revenue for the period. The net loss from SZPSP
was US$461,640 for the period, or 49% of the total loss for the
period. About China Solar & Clean Energy Solutions, Inc. China
Solar & Clean Energy Solutions, Inc. operates through its
wholly owned subsidiaries including Bazhou Deli Solar Energy
Heating Co. Ltd. ("Deli Solar (Bazhou)"), Beijing Deli Solar
Technology Development Co., Ltd. and Tianjin Huaneng Group, all
located in the PRC. The Company manufactures and distributes solar
energy appliances such as solar water heater, space heating devices
and solar insect killers. It also provides energy saving solutions
to residential customers and solutions to utilize industrial waste
heat to industrial customers in the PRC. For more information,
please visit http://www.delisolar.com/ . Cautionary Statement
Regarding Forward Looking Information Safe Harbor Statement:
Certain statements in this news release may contain forward-looking
information about China Solar & Clean Energy Solutions and its
subsidiaries business and products within the meaning of Rule 175
under the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. The actual results may differ materially depending on
a number of risk factors including, but not limited to, the general
economic and business conditions in the PRC, market and customer
acceptance and demand for products, ability to market products,
fluctuations in foreign currency markets, the use of estimates in
the preparation of financial statements, the impact of competitive
products and pricing, the ability to develop and launch new
products on a timely basis, the regulatory environment,
fluctuations in operating results, and various other factors beyond
its control. All forward-looking statements are expressly qualified
in their entirety by this Cautionary Statement and the risks
factors detailed in the Company's reports filed with the Securities
and Exchange Commission. China Solar & Clean Energy Solutions
undertakes no duty to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this release. For more information, please contact: Peggy Yuan
Investor Relations China Solar & Clean Energy Solutions, Inc.
Tel: +86-10-6386-0500 Email: DATASOURCE: China Solar & Clean
Energy Solutions, Inc. CONTACT: Peggy Yuan, Investor Relations of
China Solar & Clean Energy Solutions, Inc., +86-10-6386-0500,
or Web site: http://www.delisolar.com/
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