Cleantech Solutions (NASDAQ:CLNT)

First Quarter 2013 Results

• Revenue for the first quarter of 2013 increased 47.6% to $13.9 million, compared to $9.4 million for the same period of 2012
• Gross profit for the first quarter of 2013 increased 66.3% to $3.1 million, compared to $1.9 million for the same period in 2012.
• Net income for the first quarter of 2013 was $1.6 million, or $0.56 per diluted share, compared to $0.3 million, or $0.12 per diluted share, in the first quarter of 2012. Diluted earnings per share were calculated using diluted weighted average shares of 2,894,586 and 2,523,936 for the three months ended March 31, 2013 and 2012, respectively.

"We got off to a strong start in 2013, achieving significant growth in revenue and profitability. Our dyeing machine segment saw revenue increase by more than 90% as a result of increased sales of our new equipment designed to meet the current environmental standards. We believe this increase reflects the response of textile manufacturers to seek to meet the policies of local PRC governments to phase out obsolete equipment and reduce pollution from the dyeing process," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "In addition, sales of forged products to customers in the wind power industry saw strong sales growth. We will continue our efforts to expand our portfolio of precision products to meet demand in new and existing end markets with favorable prospects for growth."

Business Outlook

"In 2013, we expect our dyeing machine segment to continue to perform well. We have a number of new contracts in the pipeline and have purchased new equipment to expand capacity to meet this demand. While near-term challenges remain in both the wind and solar markets, the long-term outlooks are positive.

"In the meantime, we will continue to seek to diversify our revenue base and modify our product lines to respond to the needs of other heavy equipment industries and clean technology industries. We are working with our customers to fine tune prototypes of new after-treatment textile equipment and are working to become a licensed, or qualified, supplier of components to China's oil and gas industry," Mr. Wu said. "We are optimistic about our prospects for 2013, and will continue to utilize our expertise in manufacturing precision products to generate profitable growth."

On December 18, 2012 we issued our preliminary on-the-ground due diligence (DD) findings on Cleantech Solutions International, Inc. (CLNT).  While in some cases we believe that preliminary DD is sufficient enough to form a definitive conclusion regarding a ChinaHybrid operation, sometimes we require more.  This is the case with CLNT.

We appreciate the efforts of the company’s Investor Relations firm who arranged a conversation for us with the CLNT management team in order to discuss a more thorough DD process.   Some of our requests included:

• Independent verification of cash accounts;
• Independent verification SAIC/SAT filings;
• Independent video coverage of manufacturing operations;
• A list of top/current customers and suppliers.

Please see our entire report first viewed by our Premium Members.

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S-3 from 4/26/2013

We may from time to time, in one or more offerings at prices and on terms that we will determine at the time of each offering, sell common stock, preferred stock, warrants, or a combination of these securities, or units, for an aggregate initial offering price of up to $5,000,000. This prospectus describes the general manner in which our securities may be offered using this prospectus. Each time we offer and sell securities, we will provide you with a prospectus supplement that will contain specific information about the terms of that offering. Any prospectus supplement may also add, update, or change information contained in this prospectus. You should carefully read this prospectus and the applicable prospectus supplement as well as the documents incorporated or deemed to be incorporated by reference in this prospectus before you purchase any of the securities offered hereby.

Fourth Quarter 2012 Results

• Revenue for the fourth quarter of 2012 increased 28.3% to$17.6 million, compared to$13.7 millionfor the same period of 2011
• Gross profit for the fourth quarter of 2012 increased 38.2% to$4.2 million, compared to$3.1 millionfor the same period in 2011. Gross margin increased to 24.1% during the fourth quarter of 2012 compared to 22.4% for the same period a year ago.
• Net income for the fourth quarter of 2012 was $469,313, or $0.17 per diluted share, compared to $0.8 million, or $0.31per diluted share, in the fourth quarter of 2011. Adjusted net income, a non-GAAP measurement which does not deduct impairment loss and warrant modification expense, was $2.7 million, or $0.98 diluted earnings per share, up 238.5% from the same quarter of last year.

"The year 2012 was marked by a challenging environment in China that impacted capital spending and demand from customers in our key end markets, particularly during the first half of the year. Despite these challenges, we closed the year with 28.3% growth in revenue in the fourth quarter, driven by strong demand for our patented airflow dyeing machines and improving sales of forged products to customers in the wind power industry. Although we recorded a non-cash impairment loss related to equipment which we are no longer using and which is being held for sale during the fourth quarter, we were still profitable due to greater operational efficiencies and careful cost control," said Mr.Jianhua Wu, Chairman and CEO of Cleantech Solutions.

Business Outlook

"Despite a challenging environment in 2012, we saw modest growth in our top line as we diversified and expanded our product offering. More importantly, we achieved strong growth in profitability, on an adjusted basis, and generated solid cash flow from operations to fund our capital expenditures and product development initiatives.

"Thus far in 2013, we have seen strong order flow in our dyeing machine segment which we expect to continue throughout the year. As a result, we have added shifts, increased staff and placed orders for additional equipment to expand capacity and meet anticipated demand. We saw a nice increase in demand from wind power customers in the fourth quarter of 2012 and expect sales to remain near these levels in the remainder of 2013. We are also hopeful that favorable Chinese government policy towards domestic solar companies will influence demand by year end.

"We continue to utilize our expertise in manufacturing precision products to meet demand in new and existing end markets. We recently shipped a prototype of a new model of after-treatment textile equipment and have another model in the late stages of development. We are optimistic about sales of forged products to non-wind customers and are currently seeking to expand into other industries including oil and natural gas," Mr. Wu concluded.

From 10-K 4/11/2013

In connection with any expansion projects 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 expand our business. If we are unable to generate cash flow from operations and obtain necessary bank or other financing to pay for significant capital or operational expenses, we may be unable to finance the growth of our existing business, which may impair our ability to operate profitably. 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 expanse or business and remain profitable.

2012 Preliminary Financial Results

For the full year ended December 31, 2012, the Company expects to report:

• Revenues of approximately $57.2 million, as compared with approximately $55.6 million for 2011.
• Income from operations of approximately $6.3 million, as compared with approximately $8.2 million for 2011, which primarily reflects an impairment loss of approximately $2.2 million relating to equipment which is no longer used by the Company in its business and which is classified as equipment held for sale.
• Net income of approximately $4.2 million, or $1.65 per share (basic) and $1.58 per share (diluted), as compared with net income of approximately $5.8 million, or $2.94 per share (basic) and $2.30 per share (diluted) for 2011.
• Cash flow from operating activities of approximately $10.6 million, as compared with approximately $10.4 million for 2011.
• Cash flow used in investing activities, representing the purchase of property and equipment of approximately $10.7 million, as compared with approximately $11.1 million in 2011.
• Cash flow from financing activities of approximately $0.4 million, as compared with $0.8 million in 2011.
• Working capital of approximately $7.3 million at December 31, 2012, as compared with approximately $4.3 million atDecember 31, 2011.

Status of 10-K Filing

On January 3, 2013, the Company was informed by its independent registered public accounting firm, Sherb & Co., LLP, that it has combined its practice with RBSM LLP ("RBSM") effective January 1, 2013. The personnel who were responsible for the Company's account prior to January 1, 2013 were no longer responsible for conducting the audit of the Company's financial statements. RBSM has advised the Company that it was not able to complete its audit in sufficient time to enable the Company to make a timely filing of its Form 10-K for the year ended December 31, 2012.

The Company knows of no unresolved issues concerning the financial statements for the year ended December 31, 2012 and expects to file its Annual Report on Form 10-K on or before the 15th calendar day following April 1, 2012.  The Company also intends to hold a conference call to discuss its full year financial results and will issue a press release with the details of the call once the timing is confirmed.

WUXI, China, March 12, 2013 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that the Company has received purchase orders totaling RMB 23.7 million (approximately$3.8 million) for 42 airflow-dyeing machines from two new domestic customers.

Pursuant to the first purchase order, the Company will deliver 20 airflow-dyeing machines for a purchase price ofRMB 11.2 million (approximately $1.8 million). Cleantech Solutions has received an advance payment of approximately $0.2 million, or 10% of the purchase price, will receive an additional 80% of the purchase price upon delivery, and will receive the remaining 10% within six months of delivery. The Company expects to begin delivering the units in June 2013. Pursuant to the second purchase order, the Company will deliver 22 airflow-dying machines for a purchase price of RMB 12.5 million (approximately $2.0 million). The Company has received an advance payment of approximately $0.6 million, or 30% of the purchase price, will receive an additional 60% of the purchase price upon delivery, and will receive the remaining 10% within three months of delivery. Cleantech Solutions expects to deliver the units in June 2013.

The Company's airflow-dyeing machines use flowing air rather than water, which is used in the traditional dyeing process. The Company believes that its airflow technology reduces input costs, creates fewer wrinkles and less damage to the textile, and produces a reduced level of emissions.

"We continue to see strong order flow within the textile industry, particularly for our airflow-dyeing machines using our patented production technique. We plan to build upon our success by further expanding our customer base in the coming months and expect to achieve sales growth in this segment in 2013," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

WUXI, China, January 30, 2013 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that the Company has appointed RBSM LLP as its independent registered public accounting firm, following Sherb & Co., LLP's, ("Sherb") combining its practice with RBSM LLP on January 1, 2013.

The engagement of RBSM LLP as the Company's independent registered public accounting firm was approved by the Audit Committee of the Board of Directors of the Company on January 28, 2013. RBSM LLP, a member of Russell Bedford International (RBI), will provide services for Cleantech Solutions for the year ended December 31, 2012.

The decision to change auditors was not the result of any disagreement between the Company and Sherb, nor on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures.

WUXI, China, January 15, 2013 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that the Company has received a follow-on purchase order for airflow-dyeing machines from its existing domestic customer.

The purchase order provides for Cleantech Solutions to deliver a total of 21 airflow-dyeing machines using the Company's patented production technique, for a total purchase price of RMB 11.8 million (approximately $1.9 million). Pursuant to the purchase order, the Company has received an advance payment of approximately $1.1 million, or 60% of the purchase price, will receive an additional 30% of the purchase price upon installation, and will receive the remaining 10% within three months of installation. Cleantech Solutions expects to deliver the units in February 2013. The Company's airflow-dyeing machines use flowing air rather than water, which is used in the traditional dyeing process. The Company believes that its airflow technology reduces input costs, creates fewer wrinkles and less damage to the textile, and produces a reduced level of emissions.

"We are pleased to see a continuous order flow for our airflow-dyeing machines, which have received strong validation from our long-term customers. Based on our proven track record, we are confident that we will secure more and larger orders in the coming months and that this segment will make a positive contribution to our business performance in 2013," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

WUXI, China, Jan. 7, 2013 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries and dyeing and finishing equipment to the textile industry, today announced that the Company has received two purchase orders for dyeing machines from its new and existing domestic customers.

The purchase orders provide for Cleantech Solutions to deliver a total of 84 dyeing machines, including 22 airflow-dyeing machines using the Company's patented production technique, for a total purchase price of RMB 20.2 million (approximately $3.2 million). Pursuant to the purchase orders, the Company has received an advance payment of approximately $1.0 million, or 30% of the purchase price, will receive an additional 60% of the purchase price upon installation, and will receive the remaining 10% within three months of installation. Cleantech Solutions expects to deliver the units in February 2013. The Company's airflow-dyeing machines use flowing air rather than water, which is used in the traditional dyeing process. The Company believes that its airflow technology reduces input costs, creates fewer wrinkles and less damage to the textile, and produces a reduced level of emissions.

"We are excited to off start the new year with strong sales momentum from our airflow-dyeing machines. We remain optimistic about the ongoing replacement trend within the textile industry and are confident about enlarging our customer base with our proven quality products and services," said Mr. Jianhua Wu , Chairman and CEO of Cleantech Solutions. "We anticipate a continued positive trend in this segment of our business in 2013."

Premium alert sent to members on 12/18/2012

Cleantech Solutions (CLNT) wowed investors with what appeared to be home run financial results for its third quarter ending September 30, 2012. Reported sales increased 48.5% to $17.3 million and EPS increased 91% to $0.88. CLNT attracted our attention after a bearish November 21, 2012 article was published on Seeking Alpha titled “A Troubling Visit to Cleantech Solutions.”

Following these developments and dramatic volatility in CLNT’s shares, we decided to visit CLNT for a firsthand glimpse of the company’s operations. While we cannot attest to how CLNT has used capital it has been able to raise in the U.S. or to the claims it has made in all of its prior disclosures, we have been able to cross check some of the company’s recent claims. Our initial due diligence confirms that a good deal of information disclosed to hold some credence.

See entire report here.

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WUXI, China, December 18, 2012 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company's Board of Directors appointed Adam Wasserman as its Chief Financial Officer, effective on December 10, 2012, following the resignation of Ms. Wanfen Xu on the same day.

Ms. Xu's resignation did not result from any disagreement with the Company on any matters relating to its operations, policies or practices.

Previously, Mr. Wasserman had served as the Company's Vice President of Financial Reporting since 2008, under the terms of a consulting agreement between Cleantech Solutions and CFO Oncall, Inc., which provides chief financial officer services to various companies. Mr. Wasserman holds a bachelor of science from the State University of New York at Albany and is a member of The American Institute of Certified Public Accountants. He is also a director, treasurer and an executive board member of Gold Coast Venture Capital Association and has been a director of CD International Enterprises, Inc. since January 2010.

"We are pleased to have Adam take a more senior leadership role as he brings a very strong skill set and extensive experience in U.S. GAAP accounting, finance, and capital markets. We believe his experience with U.S. publicly traded companies and his long-term involvement with the Company is a great fit to our current needs," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

WUXI, China, December 3, 2012 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company's Chairman and CEO Mr. Jianhua Wu and his wife Ms. Lihua Tang have agreed to purchase 157,966 shares of the Company's common stock for a total of $612,903 (RMB3,800,000) at $3.88 a share.

The investment will be primarily used for working capital at Wuxi Huayang Dyeing Machinery Co., Ltd., a subsidiary of Cleantech Solutions.

"With the recent flow of orders for our airflow-dyeing machines, we are optimistic about the ongoing replacement cycle in the textile industry and believe the current sale momentum will continue for the next few quarters, when we expect to see an increasing number of follow-on and larger orders as well as new orders from additional customers," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "The additional capital will help ensure we are well positioned to meet the needs of the anticipated ramp-up in sales and to acquire additional equipment required for our operations."

In our morning premium email we mentioned that we had learned that Rick Pearson was taking a short position in Cleantech Solutions (NASDAQ:CLNT) and intended to publish his due diligence findings later in the day. The article actually went live on Seeking Alpha in the morning, shortly after our mail - A Troubling Visit To Cleantech Solutions.

Although we have not perform any on the ground due diligence on CLNT, we were never able to resolve our negative sentiment towards this company based on a red-flag we highlighted on May 23, 2011 regarding quickly flip flopping in capital funding requirements.

(GeoTeam note 5/23/2011)

“Investors may want to take note of the 180 degree turn CWS (now CLNT) 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."

In in its most recent press release CLNT continues to claim that it does not require outside financing to grow.

“We have been generating positive cash flow from operations and believe they are sufficient to fund our new product development initiatives,"

As always we have to stress the care that investors must take in their own due diligence process. But, quick flip flops in company capital needs have been a major red flag in the China Hybrid universe. We are of the opinion that since some ChinaHyrbids will find it difficult to raise funds in the U.S. capital markets they may resort to pumping their stock, giving certain players another avenue to make a few bucks.

Third Quarter 2012 Results

• Revenue for the third quarter of 2012 increased 48.5% to $17.3 million, compared to $11.7 million for the same period of 2011. Sequentially, revenue increased 35.2% compared to the second quarter of 2012.
• Net income for the third quarter of 2012 was $2.4 million, or $0.88 diluted earnings per share, compared to $1.1 million, or $0.46 diluted earnings per share, in the third quarter of 2011.
  

WUXI, China, October 31, 2012 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received purchase orders for airflow-dyeing machines and related components from two new domestic customers.

The first purchase order requires Cleantech Solutions to deliver a total of 63 sets of airflow-dyeing machines and related components for a total purchase price of approximately $1.7 million (RMB 10.4 million). Pursuant to the purchase order, the Company has received an advance payment of $0.5 million, or 30% of the total purchase price, will receive an additional 60% of the total purchase price upon installation, and will receive the remaining 10% within three months of installation. Cleantech Solutions expects to deliver the units in November and December 2012. The Company's airflow-dyeing machines use flowing air rather than water, which is used in the traditional dyeing process. The Company believes that its airflow technology reduces input costs, creates fewer wrinkles and less damage to the textile, and produces a reduced level of emissions.

"We are pleased with the steady sales momentum of our airflow-dyeing machines as we continue to attract new customers, which is a strong validation of the increasing need for our products and services within the textile industry," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We are committed to growing our customer base alongside the industry-wide replacement cycle favoring energy friendly machines."

Separately, Cleantech Solutions received an additional purchase order to supply forged components for flanges from a China-based heavy machinery customer. The purchase order requires the Company to deliver a total of 36 units for a total purchase price of $0.8 million. Pursuant to the purchase order, the Company received an advance payment of $0.2 million, or 30% of the total purchase price, and will receive the remaining 70% upon installation. Cleantech Solutions expects to deliver the units by the end of November 2012.

WUXI, China, October 10, 2012 /PRNewswire-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received new and follow-on purchase orders for its airflow dyeing machines and related components from its new and existing domestic customers.

The purchase orders provide for Cleantech Solutions to deliver a total of 23 units of airflow dyeing machines and components for a total purchase price of RMB13.8 million (approximately $2.2 million). Pursuant to the purchase orders, the Company has received an advance payment of $0.7 million, or 30% of the total purchase price, and will receive an additional 60% of the total purchase price upon installation and the balance within three months of installation. Cleantech Solutions expects to deliver the units by the end of December 2012. The Company's airflow dyeing machines use air flow rather than water which is used in the traditional dyeing process. The Company believes that the technology used in its air flow units results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.

"With the growing acceptance of our new airflow dyeing technology and the government's mandate to phase out obsolete machinery in China's textile industry, we have seen continued growth in order flow in this segment," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

"We are pleased to receive follow-on purchase orders from our existing customers, who, by their orders, are endorsing our airflow dyeing machines. Additionally, we are also receiving orders from a new customer, who, we believe, is recognizing the need for new technology and following the general industry trend. We believe these orders reflect positively on the high quality of our products and services. We are optimistic that sales momentum from this segment will continue and translate into larger orders, customer growth and higher contribution to our top line for 2012," concluded Mr. Wu.

Second Quarter 2012 Results

• Gross profit for the second quarter of 2012 decreased 11.7% to $2.7 million, compared to $3.1 million for the same period in 2011.
• Net income for the second quarter of 2012 was $1.1 million, or $0.40 diluted earnings per share, compared to $1.2 million, or $0.47 diluted earnings per share, in the second quarter of 2011.

"During the second quarter of 2012, we experienced growing market demand for our dyeing equipment, forger rolled ring products, and solar components as compared to the first quarter of 2012. Our revenue growth compared to the first quarter of 2012 reflected an overall modest increase in market demand," commented Mr.Jianhua Wu, Chairman and Chief Executive Officer of Cleantech Solutions. "In recent years, the exponential growth of China's wind power industry resulted in this segment accounting for a significant percentage of our total revenue. However, over the past several quarters, we have started to diversify our revenue base with great success and hope to continue to modify our product portfolio to cater to other heavy equipment industries, the solar industry, LED lighting industry and other clean technology industries," added Mr. Wu.

Business Outlook

Due to challenges faced by the wind power industry, we foresee the demand for our products supplied to the wind power industry to remain soft in the near term. Despite these challenges, we continue to hold a positive outlook in the longer term. However, during this period our strategy is to focus our resources towards other heavy equipment industries to help diversify our revenue and customer base. We have seen a modest but steady growth in demand for our products sold to the solar industry and will continue to work with our customers to expand our product offering and benefit from the longer term growth of this sector.

"Additionally, demand for our new energy-efficient air flow dyeing machines is gaining momentum due to the industry's response to the policies offered by the local government in Jiangsu province, where China's textile industry is concentrated. We are seeing strong order growth from this segment as the PRC government is encouraging textile manufacturers to replace obsolete machinery with low-emission and environmental friendly dyeing machines," Mr. Wu concluded.

WUXI, China, August 8, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received a new purchase order to supply 21 units of airflow dyeing machines and related components to a domestic customer.

The purchase order provides for Cleantech Solutions to deliver the airflow dyeing machines and components for a purchase price of RMB11.6 million (approximately $1.8 million). Pursuant to the purchase order, the Company has received an advance payment of $0.5 million, or 30% of the total purchase price, and will receive an additional 60% of the total purchase price upon installation and the balance within three months of installation. Cleantech Solutions expects to deliver the units by the end of November 2012. The Company's airflow dyeing machines use air flow rather than water which is used in the traditional dyeing process. The Company believes that the technology used in its air flow units results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.

Cleantech Solutions also received a follow-on purchase order to supply 25 units of solar components to its China-based solar customer. The purchase order provides for the Company to deliver a total of 25 units of various solar components for a total purchase price of $0.7 million. Cleantech Solutions expects to deliver the units by the end of August 2012. In addition to this order, the Company has an order backlog of 25 to 30 units of solar products, which it expects to ship by the end of September 2012.

"Despite the economic challenges faced by China's textile industry, we are encouraged to see modest growth in orders and a growing acceptance of the new airflow dyeing technology," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We have received positive feedback from our customers on our airflow machines, and we will continue to work with our customers to meet their specific requirements and help transition to the new airflow dyeing machines, which, we believe, help reduce costs in the long-run. The Chinese government continues to encourage the textile industry to replace obsolete machinery with newer energy efficient models. We expect to see some positive sales growth from this segment in the coming quarters driven by government support and growing market acceptance."

WUXI, Jiangsu, China, July 9, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received follow-on purchase orders to supply 20 units of solar components to its international customer and has received maintenance orders from its Chinese domestic customer, for an aggregate amount of $0.78 million.

The purchase order provides for Cleantech Solutions to deliver a total of 20 units of various solar components to its international customer for total revenue of $0.54 million. The Company has received advance payment of $0.2 million and expects to deliver the units by the end of July 2012. The Company is currently also working on maintenance orders for its domestic customer, for total revenue of $0.23 million.

"Despite the challenges faced by the solar industry, we are encouraged to receive follow on orders from our international customer. We believe this demonstrates our technological capabilities and commitment to meet specific customer requirements," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We currently have an order backlog of 25 units of solar products, which we expect to ship by August 2012. We will continue to work with our solar customers to seek to expand our product offering and hope to benefit from the longer term growth of this sector."

WUXI, Jiangsu, China, May 22, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received purchase orders to supply motor shaft forgings to Nanjing Turbine & Electric Machinery Changfeng Alternative Energy Co., Ltd ("Nanjing Turbine") for an aggregate amount of $1.7 million.

The purchase orders provide that Cleantech Solutions will deliver a total of 800 units of motor shaft forgings, amounting to total revenue of RMB10.6 million (approximately $1.7 million) by the end of 2012. The Company has received advance payments of RMB1.6 million (approximately $0.3 million).

"We are encouraged to receive follow-on purchase orders from Nanjing Turbine, an established player in China's wind power market," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We believe this demonstrates the high-quality of our products and our ability to meet our customers' needs for wind components and other equipment."

First Quarter 2012 Results

• Revenue for the first quarter of 2012 declined 46.4% to $9.4 million, compared to $17.6 million for the same period of 2011.
• Gross profit for the first quarter of 2012 decreased 58.6% to $1.9 million, compared to $4.6 million for the same period in 2011. Gross margin decreased to 20.0% during the first quarter of 2012 compared to 25.9% for the same period a year ago.
• Operating expenses increased 14.1% to $1.0 million, compared to $0.9 million in the comparable period last year.
• Operating income decreased 76.9% to $0.8 million, compared to $3.6 million for the same period of 2011.
• Net income for the first quarter of 2012 was $0.3 million, or $0.12 diluted earnings per share, compared to $2.7 million, or $1.04 diluted earnings per share, in the first quarter of 2011.

"In the first quarter, we experienced soft demand for our forged rolled rings and other related products due to challenging economic conditions and reduced demand for capital equipment, resulting in part from difficulties experienced by our potential customers as a result of restrictive monetary policies which also continued to affect sales of our dyeing and finishing equipment. Despite these short term challenges, we expect a favorable demand outlook in the long-term driven by PRC government's desire to increase the use of clean energy, including wind power and solar energy," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of Cleantech Solutions.

Business Outlook

"While we anticipate continued softness in the wind power segment, we are encouraged by the new orders we recently received for energy-efficient air flow dyeing machines and forged products. At the end of the first quarter, we had a backlog of $1.2 million in solar products and we will continue work with our solar customers as we seek to expand our foothold in this industry. We are also optimistic about the outlook for our higher margin airflow dyeing machines and are hopeful that more of our customers will recognize the operational efficiency of these machines, which include reduced input costs and lower emissions," Mr. Wu concluded.

WUXI, China, May 2, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received purchase orders to supply flanges to a wind power customer and an industrial customer for an aggregate amount of $1.9 million.

The purchase orders provide that Cleantech Solutions will deliver 12 units of flanges, amounting to total revenue of $1.2 million to an international customer and 30 units of flanges amounting to total revenue of RMB4.2 million (approximately $0.7 million) to a domestic customer, both which are deliverable by the end of May. The Company has received advance payments of $0.8 million.

"While the market environment remains challenging, particularly for wind power companies and suppliers, we have received follow-on purchase orders from our Chinese customer. In addition, we have received a purchase order from a U.S. customer, which we believe speaks to the quality of our products and reputation as a strong supplier of wind power and other components in both the domestic and international markets," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions.

WUXI, China, April 30, 2012 /PRNewswire-Asia-FirstCall/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (NASDAQ: CLNT), a manufacturer of metal components and assemblies, primarily used in the wind power, solar and other clean technology industries, today announced that the Company has received a new purchase order from Zhejiang Gelinlan Dyeing Limited ("Zhejiang Gelinlan"), the largest village-level enterprise group in Zhejiang, to supply its energy-efficient airflow dyeing machines for an aggregate amount of RMB10.4 million (approximately $1.7 million).

Pursuant to the purchase order, the Company is scheduled to deliver 15 units of its energy-efficient airflow dyeing machines to Zhejiang Gelinlan by the end of May 2012. The Company has received an advance payment of RMB3.1 million (approximately $0.5 million). The Company's airflow dyeing machines use air flow as opposed to water in the traditional dyeing process, which the Company believes results in reduced input costs, fewer wrinkles, less damage to the textile, and reduced emissions.

"We are encouraged by the positive market feedback and receipt of an order from a new customer for our energy-efficient airflow dyeing machines," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions. "We believe these new orders are mainly driven by growth in China's textile industry and increasing willingness of our customer to invest in new equipment designed to meet the PRC government's mandatory environmental standards. We are hopeful that more of our customers will recognize the operational efficiency of these machines, which include reduced input costs and lower emissions. We are confident that sales of our airflow dyeing machines can exhibit strong growth in fiscal 2012."

Fourth Quarter 2011 Results

• Revenue for the fourth quarter of 2011 declined 38.9% to $13.7 million, compared to $22.5 million for the same period of 2010
• Net income for the fourth quarter of 2011 decreased 74.8% to $0.8 million, compared to $3.1 million in the comparable period last year
• Diluted earnings per share were $0.31, compared to $1.29 in the same period of 2010.

"During the fourth quarter, we continued to face challenging market conditions and pricing environment for our forged rolled rings and related products resulting in lower sales volume and profitability. However, in our dyeing and finishing equipment segment, we experienced a 17.6% increase in net revenue compared to the third quarter of 2011 largely due to increased sales of our new higher margin air flow dyeing machines," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of China Wind Systems.

"In 2011, we focused our efforts in exploring new clean technology markets to leverage our experience in the wind industry. Our ability to utilize our technical knowledge to manufacture and market solar components has marked our entry into the solar products market. At fiscal year end, we had a backlog of $1.3 million in solar products, LED equipment and other sample orders. We hope to make additional progress in 2012 and expand our presence in the solar and LED industry," Mr. Wu concluded.

Business Outlook

Cleantech Solutions anticipates demand for forged products in the wind industry to remain soft in the short term as a result of increased competition and pricing pressure. However, the Company expects demand for forged products in the wind industry in China will continue to grow in the long term. The Chinese government's twelfth Five-Year Plan, reflects the government's continued commitment to wind power development, with a target of building an additional 90 GW of wind energy by 2015.

The Company plans to continue to build on its technical expertise to seek to further diversify its business into the clean technology industry in 2012. The Company expects the increase in sales from the new airflow dyeing machines and new orders from its solar and LED customers to help offset the continued softness in the traditional forged rolls rings segment.

Mr. Wu concluded, "We will continue to seek to develop new technology and expertise in the clean energy segment in order to manufacture higher margin and environmentally friendly products. Following the recent completion of sample LED and solar orders, we expect our customer to place additional orders for sapphire chambers and solar furnaces in the future. We anticipate increasing revenue contribution from these new sectors in 2012 and beyond."

On November 13, 2011, Fernando Liu advised the Company that he was terminating his employment as the Company’s chief financial officers upon the expiration of his employment contract on December 31, 2011 for personal reasons.  Mr. Liu’s decision did not result from any disagreement with the Company.  Mr. Liu will continue to work with the Company as a consultant to assist the Company in its efforts to expand its business in the solar, LED and other clean technology industries.

Ms. Xu Wan Fen, financial controller of Wuxi Huayang Electrical Power Equipment Co., Ltd and Wuxi Huayang Dyeing Machinery Co., Ltd., will serve as interim chief financial officer until a successor is named. Ms. Xu has been the financial controller of Wuxi Huayang Electrical Power Equipment Co., Ltd and Wuxi Huayang Dyeing Machinery Co., Ltd. between 2009 to 2011, and she was also the a senior finance manager and financial controller of Wuxi Huayang Dyeing Machinery Co., Ltd. between 2000 to 2009.  Wuxi Huayang Electrical Power Equipment Co., Ltd and Wuxi Huayang Dyeing Machinery Co., Ltd. are variable interest entities whose financial statements are included in the Company’s consolidated financial statement.

Third Quarter 2011 Results

• Revenue for the third quarter of 2011 declined 45.1% to $11.7 million, compared to $21.3 million for the same period of 2010.
• Diluted earnings per share were $0.05, compared to $0.12 in the same period of 2010.

"We continue to face challenging market conditions and pricing environment, due to delayed capital expenditures by our wind power and other industrial customers in light of the PRC government's tightening monetary policy," commented Mr. Jianhua Wu, Chairman and Chief Executive Officer of China Wind Systems.

• Revenue for the second quarter of 2011 declined 33.6% to $12.6 million, compared to $19.0 million for the same period of 2010.
• Net income decreased 61.3% to $1.2 million, compared to $3.0 million in the comparable period last year.
• Basic earnings per share in 2011 and 2010 were $0.06 and $0.17, respectively.