Cleantech Solutions International Reports Third Quarter 2017 Results

Operating expenses increased to $3,664,000 compared to $547,000 for the same period in 2016.  The increase was primarily due to a $2.4 million bad debt expense, and an increase in professional fees, including stock-based consulting fees, and payroll and related benefits. 

Loss from operations was $4,110,000, compared to a loss from operations of 53,000 for the same period in 2016.

Loss from continuing operations was $4,179,000, or $(2.10) per basic and diluted share, compared to a loss from continuing operations of $86,000, or $(0.07) per basic and diluted share for the same period in 2016.

Loss from discontinued operations (Refer to "Discontinued Operations" discussion below) was $71,000, or $(0.04) per basic and diluted share, for the third quarter of 2017.  This compares to a loss from discontinued operations of $273,000, or $(0.21) per basic and diluted share, for the third quarter of 2016.

Net loss for the third quarter of 2017 was $4,250,000, or $(2.14) per basic and diluted share, compared to net loss of $360,000, or $(0.28) per basic and diluted share, for the same period in 2016.   

Basic and diluted earnings per share were based on 1,988,794 and 1,297,111 weighted average shares outstanding, respectively, for the three months ended September 30, 2017, and 2016. All share and per share information has been adjusted to reflect a 1-for-4 reverse stock split effective March 20, 2017.

Financial Condition

As of September 30, 2017, Cleantech Solutions held cash and cash equivalents of $4,775,000 compared to $1,481,000 at December 31, 2016. Accounts receivable were $13,023,000 compared to $13,922,000 at December 31, 2016. Inventories were $4,033,000 compared to $2,394,000 at December 31, 2016. The Company had $2,029,000 and $376,000 in short-term bank loans and bank acceptance notes payable, respectively, at September 30, 2017, down from $2,160,000 and $547,000, respectively, at December 31, 2016. Working capital was $23,206,000 at September 30, 2017 compared to $21,539,000 at December 31, 2016. Stockholders' equity was $65,656,000 at September 30, 2017 compared to $65,312,000 at December 31, 2016. 

In the first nine months of 2017, the Company used $17,000 in operating cash flow, primarily due to the loss for the period and increases in inventory and advances to suppliers, which were offset by an increase in accounts payable and a decrease in prepaid and other current assets as a result of an increase in stock based compensation. The Company generated $2,029,000 in cash flow from investing activities, primarily related to a payment from the sale of Wuxi Fulland Wind Energy Equipment Co., Ltd. ("Fulland Wind") in the second quarter of 2017. The Company generated $1,138,000 in cash flow from financing activities, primarily due to $860,000 in net proceeds from a private placement transaction in June 2017, which was partially offset by a reduction in short term debt.

Recent Events

On October 9, 2017, the Company entered into an agreement with an investor who purchased a note for $670,000, bearing two percent (2%) interest per annum. The note automatically converts into shares of common stock of the Company at a conversion price equal to $3.35 per share on January 8, 2018. The Company shall have the option, in its sole and absolute discretion, to repay the outstanding amount in full on or before the Conversion Date.

On October 27, 2017, the Company's wholly-owned subsidiary, EC Technology & Innovations Limited, acquired a 51% interest in Inspirit Studio, which develops and runs a sharing economy mobile platform called Anyway that allows people to provide courier delivery services during their commuting times. Total consideration was HK$3.0 million, which shall be satisfied by the allotment and issuance of 85,473 shares of the Company.

On October 12, 2017, the Company's wholly-owned subsidiary, Sharing Economy Investment Limited, entered into exclusive discussions regarding the potential acquisition of a 51% interest in 3D Discovery Co. Limited ("3D Discovery"), a digital marketing services provider which provides various solution such as 3D scanning and modeling, website and mobile app development, video production, graphic design, etc. to its clients. Apart from existing business, 3D Discovery is going to develop a mobile app which allows users to create an interactive virtual tour of a physical space by using a mobile phone camera.

Discontinued Operations

On December 30, 2016, the Company sold 100% of the stock of Fulland Wind to an unrelated party and discontinued the Company's forged rolled rings and related components business. Additionally, the Company's management decided to discontinue its petroleum and chemical equipment segment due to significant declines in revenues and the loss of its major customer. As such, the assets and liabilities of these two segments were classified on the unaudited condensed consolidated balance sheets as assets and liabilities of discontinued operations and the operating results were classified as discontinued operations in the unaudited condensed consolidated statements of operations for all periods presented.

About Cleantech Solutions International

Cleantech Solutions, through its affiliated companies, designs, manufactures and distributes a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry.  The Company's latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary and affiliated companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein referred to in this press release as anticipated, believed, estimated or expected. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website, including factors described in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K for the year ended December 31, 2016 and in our Form 10-Q for the quarter ended September 30, 2017. All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

Company Contacts:

Cleantech Solutions International, Inc.
Parkson Yip, Chief Operating Officer 
E-mail: parkson.yip@cleantechsolutionsinternational.com
+852-31060372 
Web: www.cleantechsolutionsinternational.com

Compass Investor Relations
Elaine Ketchmere, CFA
Email: eketchmere@compass-ir.com 
+1-310-528-3031
Web:  www.compassinvestorrelations.com

CLEANTECH SOLUTIONS INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE GAIN (LOSS)
	(Unaudited)
				For the Three Months Ended				For the Nine Months Ended
				September 30,				September 30,
				2017		2016		2017		2016
REVENUES				$           2,629,217		$           3,946,480		$       10,998,438		$       12,390,980
COST OF REVENUES				3,075,290		3,452,614		10,415,813		10,484,928
GROSS PROFIT (LOSS)				(446,073)		493,866		582,625		1,906,052
OPERATING EXPENSES:
	Depreciation			276,940		112,472		814,654		388,326
	Selling, general and administrative			3,279,792		322,426		4,147,652		1,189,460
	Research and development			107,568		111,840		324,698		196,478
		Total operating expenses		3,664,300		546,738		5,287,004		1,774,264
(LOSS) INCOME FROM OPERATIONS				(4,110,373)		(52,872)		(4,704,379)		131,788
OTHER INCOME (EXPENSE):
	Interest income			3,205		5,460		10,925		20,272
	Interest expense			(33,125)		(31,676)		(107,991)		(96,630)
	Loss on equity method investment			(39,060)		-		(81,871)		- Werbung Mehr Nachrichten zur Cleantech Solutions International Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 11:29 - PR Newswire Oxford Instruments Plc - Holding(s) in Company 10:57 - PR Newswire Fidelity Special Values Plc - Monthly Factsheet 07:30 - PR Newswire Boeing Company - First Quarter Financial Results Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59