EX-99.1
2
v180578_ex99-1.txt


                                                                    Exhibit 99.1

Press Release Source: Sino Clean Energy, Inc. On Friday April 9, 2010, 10:05 am
EDT

In the news release, "Sino Clean Energy, Inc. Announces Record 2009 Financial
Results; Increases Full Year 2010 Guidance" issued today by Sino Clean Energy,
Inc. (OTC Bulletin Board:SCLX.ob - News) over PR Newswire Asia, we are advised
by the Company that, in the 3rd sentence of the 11th paragraph, beginning "We
are pleased...", "1,550,000 metric tons" was supposed to read "1,050,000 metric
tons". This reference also occurred in the "Financial Outlook for 2010" section,
where, again "1,550,000 metric tons" was supposed to read "1,050,000 metric
tons". Full correct release follows:

Sino Clean Energy, Inc. Announces Record 2009 Financial Results; Increases Full
Year 2010 Guidance

      XI'AN, China, April 9 /PRNewswire-Asia-FirstCall/ --

      -     Company exceeded revenue and net income guidance for full-year 2009
      -     Full-year 2009 revenue increased 222.8% to $46.0 million; adjusted
            net income increased 173.9% to $11.0 million, with adjusted EPS of
            $0.11
      -     Company increased full-year 2010 revenue and net income guidance to
            $105 million and $25.0 million, respectively
      -     Management to host Earnings Conference Call on Friday, April 9, 2010
            at 10:00 a.m. EDT

Sino Clean Energy, Inc. (OTC Bulletin Board: SCLX; "Sino Clean Energy," or the
"Company"), a leading producer and distributor of coal-water slurry fuel
("CWSF") in the People's Republic of China ("China"), today announced the
Company's financial results for the year ended December 31, 2009, and increased
revenue and net income guidance for the full-year 2010.

Full-year 2009 Results (USD)

(years ended December 31,2009)              2009              2008        CHANGE
Revenue                            $46.0 million     $14.3 million       +222.8%
Gross Profit                       $17.1 million      $5.0 million       +242.7%
GAAP Net Income (Loss)            ($34.8 million)     $3.4 million            --
Adjusted Net Income                $11.0 million*     $4.0 million**     +173.9%
GAAP EPS (Basic and Diluted)              ($0.36)            $0.03            --
Adjusted EPS (Basic and
 Diluted)                                  $0.11*            $0.03**     +266.7%

* Excludes non-cash charges of $12.8 million related to the changes in fair
value of warrants and embedded beneficial conversion feature, $25.0 million from
the stock-based cost of the Company's private placement in July 2009, and $11.1
million related to the shares of common stock placed in escrow in connection
with the Company's September 2008 financing.



**Excludes a non-cash charge of $0.7 million in Q4 2008 related to the shares of
common stock placed in escrow in connection with the Company's September 2008
financing.

Please note: For more information about the non-GAAP financial measures
contained in this press release, please see "About Non-GAAP Financial Measures"
below.

Full-year 2009 Financial Results

Revenue - Revenue for the year ended December 31, 2009 increased 222.8% to $46.0
million from $14.3 million in the year ended December 31, 2008. The significant
increase is primarily attributable to increased production resulting from the
addition in 2009 of a two new production lines, which led to an increase in
sales from new and existing customers. The Company's annual production capacity
at year-end 2009 was 650,000 metric tons following the commencement of the two
new CWSF production lines, which increased annual output capacity by 550,000
metric tons. As of December 31, 2009, Sino Clean Energy had 30 customers under
CWSF supply agreements totaling approximately 600,000 metric tons per year,
compared to 27 customers totaling approximately 400,000 metric tons of CWSF per
year at December 31, 2008.

Cost of Goods Sold - Cost of Goods Sold was $28.9 million for the year ended
December 31, 2009, compared to $9.3 million for the year ended December 31,
2008, representing an increase of 212.1%. The increase in cost of goods sold is
approximately proportional with the increase in sales.

Gross Profit and Gross Profit Margin -- Gross profit increased 242.7% to $17.1
million in 2009 from $5.0 million in 2008, as gross profit margin improved to
37.1% in 2009 from 35.0% in 2008 as a result of better pricing for CWSF. As a
result of the new production line added in 2009, depreciation of plant and
machinery for 2009 was $1.5 million as compared to $0.3 million in 2008.

Operating Expenses -- Operating expenses for the year ended December 31, 2009
were approximately $2.9 million, up 414.5% from $0.6 million for the year ended
December 31, 2008. Selling expenses totaled $1.1 million for 2009, as compared
to approximately $13,000 for 2008. The increase was mainly in transportation
cost which amounted to $1.1 million due to the growth of the Company's business
in 2009. General and administrative expenses totaled $1.8 million for 2009, as
compared to $0.6 million for 2008, an increase of 223.7% due primarily to the
expansion of the Company's operations.

Income from Operations -- Income from operations in 2009 increased 220.6% to
$14.2 million from $4.4 million in 2008, with operating margins of 30.8%
compared to 31.0% in the respective periods.

Net Income -- For the year ended December 31, 2009, the Company reported a net
loss of $34.8 million compared to net income of $3.0 million for the year ended
December 31, 2008, with a corresponding net loss per share of $0.36 compared to



net income per share of $0.03 based on 97.9 million and 88.2 million shares,
respectively. The decrease in net income is primarily attributable to incurrence
of stock-based cost of the Company's private placement in July 2009, changes in
the fair value and extinguishment of certain derivative liabilities, and
expenses related to the shares of common stock held by the Company's Chief
Executive Officer and placed in escrow in connection with the Company's
September 2008 financing transaction. Results for 2008 included expenses related
to the shares of common stock held by the Company's Chief Executive Officer and
placed in escrow in connection with the Company's September 2008 financing
transaction. Excluding these items, adjusted net income for 2009 and 2008 would
have been $11.0 million and $4.0 million, respectively, with corresponding
adjusted net income per share of $0.11 and $0.03 based on 97.9 million and 88.2
million shares, respectively. (See "Reconciliation of GAAP Net Income (Loss) to
Adjusted Net Income" table below.)

"We are pleased to have exceeded both revenue and net income guidance for 2009,
and expect sales of our coal water slurry fuel to continue to increase during
2010 due to our increased production capacity, expanded customer base, current
order rates and growing demand for clean energy in China," stated Baowen Ren,
Chairman of Sino Clean Energy. "Our total production capacity today is 850,000
metric tons following the recent addition of 200,000 metric tons at our existing
facility located in Tongchuan, Shaanxi province. Currently, we have 35 customers
under CWSF supply agreements totaling approximately 800,000 metric tons per
year. We are negotiating with 15 potential customers for supply agreements which
could represent up to 500,000 metric tons of CWSF and plan to expand our
production capacity to 1,050,000 metric tons by the end of 2010. The CWSF market
continues to expand due to growing customer demand for clean and efficient
sources of energy and the government's mandate for reduced emissions through
improved utilization of coal. We believe that CWSF is an ideal alternative for
addressing China's pollution problem while meeting its growing energy
requirements. CWSF increases burning efficiency and reduces air pollution, coal
consumption and coal material costs for end users while generating attractive
gross profit margins for energy producers. As a result, we believe we are
well-positioned to further gain market share as a leading producer of CWSF in
China."

Liquidity and Capital Resources

Cash and cash equivalents were $18.3 million at December 31, 2009 compared to
$3.9 million at December 31, 2008. For 2009, the Company generated $9.7 million
in net cash flow from operations, compared to $4.7 million in 2008. The Company
had working capital of $7.7 million at December 31, 2009 and a current ratio of
.37-to-1. Inventories were $0.9 million and the accounts receivable balance was
$3.7 million at December 31, 2009, compared to approximately $45,000 and $0.9
million respectively at December 31, 2008. The annualized days sales outstanding
for the fourth quarter of 2009 were 31 days.

Financial Outlook for 2010

For the year ending December 31, 2010, management increased guidance and now
expects revenues of at least $105 million in revenues and adjusted net income of
at least $25 million, representing an increase of approximately 128.3% and
127.3% compared to 2009 revenues and adjusted net income, respectively. This
guidance assumes total sales volume of 850,000 metric tons of CWSF in 2010. The
Company expects to end 2010 with 1,050,000 metric tons of total CWSF production
capacity.



Government Support in China

China is the world's largest producer and consumer of coal and is also one of
the world's leading emitters of greenhouse gas (GHG). Approximately 70% of
China's energy comes from coal, the greatest part of which is burned in older,
inefficient power plants that are primary contributors to GHG. To address
environmental concerns from the use of coal, the Chinese central government
formulated the "9th Five-Year Plan for Clean Coal Technology in China and a
Development Program to 2010" in 1995, which emphasized the need to strengthen
research and development of clean coal technologies and to promote
commercialization of proven clean coal technologies including CWSF. The China
State Environmental Protection Agency (SEPA) states that over $190 billion will
be spent by industrial companies for environmental cleanup as part of the 11th
Five Year Plan (2006-2010).

Conference Call

The conference call will take place at 10:00 a.m. ET on Friday, April 9, 2010.
Interested participants should call 1-877-941-4774 when calling within the
United States or 1-480-629-9760 when calling internationally.

A playback will be available through April 16, 2010. To listen, please call
1-800-406-7325 within the United States or 1-303-590-3030 when calling
internationally. Utilize the pass code 4281232 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed by
clicking on this link http://viavid.net/dce.aspx?sid=0000731E, or visiting
ViaVid's website at http://www.viavid.net, where the webcast can be accessed
through April 16, 2010.

About Sino Clean Energy

Sino Clean Energy is a U.S. publicly traded company and a China-based producer
and distributor of coal-water slurry fuel ("CWSF"). With locations in Shaanxi
Province and Liaoning Province, Sino Clean Energy is the largest CWSF producer
in Northwestern China with 850,000 metric tons of total annual capacity. For
more information about Sino Clean Energy, please visit http://www.sinocei.net/ .

About Non-GAAP Financial Measures

The following table excludes from net income (loss) certain items related to the
cost of escrow shares put in escrow by the Company's chairman as a guarantee on
the issuance of Sino Clean Energy's convertible notes, the cost related to the
issuance of the Company's private placement (primarily related to the fair value
of the derivatives created upon issuance related to the conversion feature of



the notes and the fair value of the warrants issued to the convertible note
holders), the change in fair value of these derivatives during the period as
well as the extinguishment of a portion of the derivative upon conversion of the
notes, and amortization of the valuation discount recorded as interest expense
relating to these convertible notes. The Company believes that these non-GAAP
financial measures are useful to investors because they exclude non-cash charges
that management excludes when it internally evaluates the performance of the
Company's business and makes operating decisions, including internal budgeting,
and performance measurement, because these measures provide a consistent method
of comparison to historical periods. Moreover, management believes these
non-GAAP measures reflect the essential operating activities of Sino Clean
Energy. Accordingly, management excludes these items when making operational
decisions. The Company believes that providing to its investors the non-GAAP
measures that management uses is useful to investors for a number of reasons.
The non-GAAP measures provide a consistent basis for investors to understand the
Company's financial performance in comparison to historical periods. In
addition, it allows investors to evaluate the Company's performance using the
same methodology and information as that used by our management. Non-GAAP
measures are subject to inherent limitations because they do not include all of
the expenses included under GAAP and because they involve the exercise of
judgment of which charges are excluded from the non-GAAP financial measure.
However, our management compensates for these limitations by providing the
relevant disclosure of the items excluded.

         Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income

2009 2008 GAAP Net (loss) income $(34,736,689) $ 3,351,454 Non-GAAP adjustment Expense related to escrow shares 11,125,071 676,466 Extinguishment of derivative liability (7,046,556) 0 Change in fair value of warrants and embedded 12,770,113 0 conversion feature Cost of private placement 24,977,114 0 Amortization of notes discount 3,942,185 0 Adjusted Net income $ 11,031,238 $ 4,027,920
Safe Harbor Statement This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to uncertainties in product demand, the impact of competitive products and pricing, our ability to obtain regulatory approvals, changing economic conditions around the world, release and sales of new products and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information please contact: Company: Ming Lee Assistant to the Chairman Tel: +86-29-8406-7376 (China) Email: marin_lm@163.com Investor Relations: HC International, Inc. Ted Haberfield, Executive VP Tel: +1-760-755-2716 Email: thaberfield@hcinternational.net Web: http://www.hcinternational.net FINANCIAL TABLES FOLLOW Sino Clean Energy Inc. and Subsidiaries Consolidated Balance Sheets (Amounts expressed in U.S. Dollars)
ASSETS Pro Forma December 31, December 31, December 31, 2009 2009 2008 (Unaudited) Current assets Cash and cash equivalents $ 18,302,558 $ 18,302,558 $ 3,914,306 Accounts receivable, net 3,655,473 3,655,473 899,629 Inventories 892,609 892,609 45,068 Prepaid inventories 5,453,095 5,453,095 1,996,584 Prepaid expenses 259,627 259,627 86,958 Refundable advance -- -- 731,861 Government grant receivable -- -- 146,314 Other receivables 65,584 65,584 16,986 Tax recoverable 138,495 138,495 -- Prepaid land use right - current portion 38,739 38,739 38,703 Total current assets 28,806,180 28,806,180 7,876,409 Property, plant and equipment, net 12,557,691 12,557,691 9,394,416 Land use right - non current portion 1,778,562 1,778,562 1,804,277 Prepayments and deposits 729,328 729,328 994,395 Goodwill 762,018 762,018 762,018 Deferred debt issuance cost -- -- 274,278 Total assets $ 44,633,779 $ 44,633,779 $ 21,105,793 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) Current liabilities Convertible notes net of discount $ -- $ -- $ 383,490 Accounts payable and accrued expenses 2,672,211 2,672,211 1,004,999 Taxes payable 1,577,249 1,577,249 305,903 Amount due to directors 73,466 73,466 465,049 Derivative liabilities 16,752,858 16,752,858 -- Total current liabilities 21,075,784 21,075,784 2,159,441 Convertible notes, net of discount -- 1,615,025 -- Derivative liabilities -- 28,404,181 -- Total liabilities 21,075,784 51,094,990 2,159,441 Commitments and Contingencies Shareholders' Equity Deficiency) Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding -- -- -- Common stock, $0.001 par value, 300,000,000 shares authorized, 108,498,625 and 92,181,750 issued and outstanding as of December 31, 2009 and 2008 respectively, and 162,272,309 as of December 31, 2009 on proforma basis 162,273 108,499 92,182 Additional paid-in capital 35,498,381 25,335,155 12,696,549 (Accumulated deficit) Retained earnings (16,000,781) (35,802,987) 3,686,087 Statutory reserves 1,758,553 1,758,553 348,309 Accumulated other comprehensive income 2,139,569 2,139,569 2,123,225 Total shareholders' equity (Deficiency) 23,557,995 (6,461,211) 18,946,352 Total liabilities and shareholders' equity $ 44,633,779 $ 44,633,779 $ 21,105,793
As of December 31, 2009, the Company had outstanding $10,217,000 of its 10% Senior Secured Convertible Notes. Subsequent to December 31, 2009, and by March 5, 2010, all the convertible notes holders converted these notes into 53,773,684 shares of common stock of the Company pursuant to the original Securities Purchase Agreement and Form of Note. As of December 31, 2009, the Company had reflected a valuation discount of $8,601,975 against these convertible notes payable, and had recorded a derivative liability of $28,404,181 relating to the fair value of the conversion feature of these notes. The unamortized portion of the valuation discount will be treated as additional interest expense on the date of conversion, and the fair value of the derivative liability will be recognized as a gain on extinguishment on the date of conversion. The effects of the above conversion and extinguishment of the derivative liability on the recorded assets, liabilities and shareholders equity of the Company as if the conversion had occurred on December 31, 2009 are reflected in the "pro forma" column in the accompanying balance sheet. Sino Clean Energy Inc. and Subsidiaries Consolidated Statements of Operations and Other Comprehensive Income (Loss) For the years ended December 31, 2009 and 2008 (Amounts expressed in U.S. Dollars) Years Ended December 31, 2009 2008 Revenue $ 46,012,353 $ 14,253,989 Cost of goods sold (28,922,846) (9,266,832) Gross profit 17,089,507 4,987,157 Selling expenses 1,125,884 13,128 General and administrative expenses 1,796,032 554,766 Income from operations 14,167,591 4,419,263 Other income (expenses) Interest expense (4,937,441) (566,752) Expense related to escrow shares (11,125,071) (676,466) Rental income, net of outgoings -- 78,691 Interest income 43,285 27,397 Extinguishment of derivative liability 7,046,556 -- Change in fair value of derivative liabilities (12,770,113) -- Cost of private placement (24,977,114) -- Sundry income (expenses) (29,293) -- Gain on disposal of property -- 33,069 Government grant -- 141,501 Total other income (expenses) (46,749,191) (962,560) (Loss) Income before provision for income taxes (32,581,600) 3,456,703 Provision for income taxes 2,243,088 105,249 Net (loss) income (34,824,688) 3,351,454 Net income allocated to non- controlling interest -- (351,849) Net (loss) income allocated to Sino Clean Energy, Inc. (34,824,688) 2,999,605 Other comprehensive (loss) income Foreign currency translation adjustment 16,344 962,127 Comprehensive (loss) income $(34,808,344) $ 3,961,732 Weight average number of shares -Basic 97,929,217 87,169,614 -Diluted 97,929,217 88,162,076 (Loss) Income per common share - Basic $ (0.36) $ 0.03 - Diluted $ (0.36) $ 0.03 Sino-Clean Energy, Inc. and Subsidiaries Consolidated Statements of Changes in Shareholders' Equity (Deficiency) For the years ended December 31, 2009 and 2008
Additional Common Stock paid-in Statutory Share Amount capital reserve Balance, January 1, 2008 84,681,750 $ 84,682 $ 9,153,174 $ 348,309 Fair value of shares issued for acquisition of minority interest 7,500,000 7,500 1,492,500 -- Fair value of warrant issued for debt issuance fee -- -- 30,759 -- Fair value of warrant issued with convertible notes -- -- 1,335,650 -- Expense related to escrow shares -- -- 676,466 -- Fair value of vested stock options -- -- 8,000 -- Foreign currency translation gain -- -- -- -- Net income -- -- -- -- Balance, December 31, 2008 92,181,750 92,182 12,696,549 348,309 Reclassification of warrants and conversion feature to derivative liability -- -- (1,335,650) -- Balance, January 1, 2009 as adjusted 92,181,750 92,182 11,360,899 348,309 Fair value of shares issued for service 2,333,000 2,333 452,602 -- Common stock issued upon conversion of convertible notes and accrued interest 13,983,875 13,984 2,396,583 -- Expense related to escrow shares -- -- 11,125,071 -- Net loss -- -- -- 1,410,244 Foreign currency translation gain -- -- -- -- Balance, December 31, 2009 108,498,625 $ 108,499 $ 25,335,155 $ 1,758,553
Sino-Clean Energy, Inc. and Subsidiaries Consolidated Statements of Changes in Shareholders' Equity (Deficiency) For the years ended December 31, 2009 and 2008
Accumulated other Retained comprehensive earnings income Total Balance, January 1, 2008 $ 686,482 $ 1,161,098 $ 11,433,745 Fair value of shares issued for acquisition of minority interest -- -- 1,500,000 Fair value of warrant issued for debt issuance fee -- -- 30,759 Fair value of warrant issued with convertible notes -- -- 1,335,650 Expense related to escrow shares -- -- 676,466 Fair value of vested stock options -- -- 8,000 Foreign currency translation gain -- 962,127 962,127 Net income 2,999,605 -- 2,999,605 Balance, December 31, 2008 3,686,087 2,123,225 18,946,352 Reclassification of warrants and conversion feature to derivative liability (3,254,142) -- (4,589,792) Balance, January 1, 2009 as adjusted 431,945 2,123,225 14,356,560 Fair value of shares issued for service -- -- 454,935 Common stock issued upon conversion of convertible notes and accrued interest -- -- 2,410,567 Expense related to escrow shares -- -- 11,125,071 Net loss (36,234,932) -- (34,824,688) Foreign currency translation gain -- 16,344 16,344 Balance, December 31, 2009 $(35,802,987) $ 2,139,569 $ (6,461,211)
Sino Clean Energy Inc. and Subsidiaries Consolidated Statements of Cash Flows For the years ended December 31, 2009 and 2008 (Amounts expressed in U.S. Dollars) Year ended December 31, 2009 2008 Cash flows from operating activities: Net income (loss) $(34,824,688) $ 3,351,454 Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation & amortization 1,530,238 253,826 Amortization of discount on convertible notes 3,942,185 383,490 Amortization of deferred debt issuance costs 274,278 114,234 Fair value of vested stock options -- 8,000 Gain on sale of leasehold -- (33,069) Fair value of shares issued for services 454,935 -- Expense related to escrow shares 11,125,071 676,466 Cost of private placement 24,977,114 -- Change in fair value of derivative liabilities 12,770,113 Extinguishment of derivative liability (7,046,556) -- Change in operating assets and liabilities: Accounts receivable (2,755,844) 233,367 Receipt of government grants 146,314 264,686 Inventories (847,541) (1,282) Prepaid inventories (3,456,511) -- Prepaid expenses (172,669) (1,059,963) Refundable advance 731,861 -- Other receivables (48,598) 154,861 Tax recoverable (138,495) -- Accounts payable and accrued expenses 1,759,335 27,822 Taxes payable 1,271,346 161,226 Assets on discontinued operation Other receivables -- 141,795 Net cash provided by operating activities 9,691,888 4,676,913 Cash flows from investing activities: Prepayments and deposits 265,067 -- Proceeds from sale of leasehold -- 1,024,465 Purchase of property, plant and equipment (4,654,910) (6,225,019) Net cash used in investing activities (4,389,843) (5,200,554) Cash flows from financing activities: Repayment of amount due to a director (391,583) -- Repayment from a director -- 370,478 Advance from a director -- 70,000 Deferred debt issuance costs -- (357,753) Proceeds from issuance of convertible notes 9,874,370 1,335,650 Payment of convertible notes (400,000) -- Net cash provided by financing activities 9,082,787 1,418,375 Effect of foreign currency translation 3,420 187,440 Net increase (decrease) in cash and cash equivalents 14,388,252 1,082,174 Cash and cash equivalents, beginning of year 3,914,306 2,832,132 Cash and cash equivalents, end of year $ 18,302,558 $ 3,914,306 Supplemental Disclosure Information Interest paid $ 640,406 $ -- Income taxes paid 1,161,346 24,760 Supplemental non-cash investing and financing activities Conversion of convertible notes and accrued interest into common stock 2,410,567 -- Allocation of derivative liability to note discount 11,592,000 -- Cumulative effect of change in accounting principle upon adoption of new accounting pronouncement on January 1,2009, reclassification of warrants and conversion feature to derivative liability 4,589,792 -- Fair value of warrants and beneficial conversion feature related to issuance of convertible notes -- 1,335,650 Fair value of warrant issued for debt issuance fee -- 30,759 Issuance of common stock for minority interest -- 1,500,000 Sino Clean Energy, Inc. Announces Record 2009 Financial Results; Increases Full Year 2010 Guidance XI'AN, China, April 9 /PRNewswire-Asia-FirstCall/ -- - Company exceeded revenue and net income guidance for full-year 2009 - Full-year 2009 revenue increased 222.8% to $46.0 million; adjusted net income increased 173.9% to $11.0 million, with adjusted EPS of $0.11 - Company increased full-year 2010 revenue and net income guidance to $105 million and $25.0 million, respectively - Management to host Earnings Conference Call on Friday, April 9, 2010 at 10:00 a.m. EDT Sino Clean Energy, Inc. (OTC Bulletin Board: SCLX; "Sino Clean Energy," or the "Company"), a leading producer and distributor of coal-water slurry fuel ("CWSF") in the People's Republic of China ("China"), today announced the Company's financial results for the year ended December 31, 2009, and increased revenue and net income guidance for the full-year 2010. Full-year 2009 Results (USD) (years ended December 31,2009) 2009 2008 CHANGE Revenue $46.0 million $14.3 million +222.8% Gross Profit $17.1 million $5.0 million +242.7% GAAP Net Income (Loss) ($34.8 million) $3.4 million -- Adjusted Net Income $11.0 million* $4.0 million** +173.9% GAAP EPS (Basic and Diluted) ($0.36) $0.03 -- Adjusted EPS (Basic and Diluted) $0.11* $0.03** +266.7% * Excludes non-cash charges of $12.8 million related to the changes in fair value of warrants and embedded beneficial conversion feature, $25.0 million from the stock-based cost of the Company's private placement in July 2009, and $11.1 million related to the shares of common stock placed in escrow in connection with the Company's September 2008 financing. **Excludes a non-cash charge of $0.7 million in Q4 2008 related to the shares of common stock placed in escrow in connection with the Company's September 2008 financing. Please note: For more information about the non-GAAP financial measures contained in this press release, please see "About Non-GAAP Financial Measures" below. Full-year 2009 Financial Results Revenue - Revenue for the year ended December 31, 2009 increased 222.8% to $46.0 million from $14.3 million in the year ended December 31, 2008. The significant increase is primarily attributable to increased production resulting from the addition in 2009 of a two new production lines, which led to an increase in sales from new and existing customers. The Company's annual production capacity at year-end 2009 was 650,000 metric tons following the commencement of the two new CWSF production lines, which increased annual output capacity by 550,000 metric tons. As of December 31, 2009, Sino Clean Energy had 30 customers under CWSF supply agreements totaling approximately 600,000 metric tons per year, compared to 27 customers totaling approximately 400,000 metric tons of CWSF per year at December 31, 2008. Cost of Goods Sold - Cost of Goods Sold was $28.9 million for the year ended December 31, 2009, compared to $9.3 million for the year ended December 31, 2008, representing an increase of 212.1%. The increase in cost of goods sold is approximately proportional with the increase in sales. Gross Profit and Gross Profit Margin -- Gross profit increased 242.7% to $17.1 million in 2009 from $5.0 million in 2008, as gross profit margin improved to 37.1% in 2009 from 35.0% in 2008 as a result of better pricing for CWSF. As a result of the new production line added in 2009, depreciation of plant and machinery for 2009 was $1.5 million as compared to $0.3 million in 2008. Operating Expenses -- Operating expenses for the year ended December 31, 2009 were approximately $2.9 million, up 414.5% from $0.6 million for the year ended December 31, 2008. Selling expenses totaled $1.1 million for 2009, as compared to approximately $13,000 for 2008. The increase was mainly in transportation cost which amounted to $1.1 million due to the growth of the Company's business in 2009. General and administrative expenses totaled $1.8 million for 2009, as compared to $0.6 million for 2008, an increase of 223.7% due primarily to the expansion of the Company's operations. Income from Operations -- Income from operations in 2009 increased 220.6% to $14.2 million from $4.4 million in 2008, with operating margins of 30.8% compared to 31.0% in the respective periods. Net Income -- For the year ended December 31, 2009, the Company reported a net loss of $34.8 million compared to net income of $3.0 million for the year ended December 31, 2008, with a corresponding net loss per share of $0.36 compared to net income per share of $0.03 based on 97.9 million and 88.2 million shares, respectively. The decrease in net income is primarily attributable to incurrence of stock-based cost of the Company's private placement in July 2009, changes in the fair value and extinguishment of certain derivative liabilities, and expenses related to the shares of common stock held by the Company's Chief Executive Officer and placed in escrow in connection with the Company's September 2008 financing transaction. Results for 2008 included expenses related to the shares of common stock held by the Company's Chief Executive Officer and placed in escrow in connection with the Company's September 2008 financing transaction. Excluding these items, adjusted net income for 2009 and 2008 would have been $11.0 million and $4.0 million, respectively, with corresponding adjusted net income per share of $0.11 and $0.03 based on 97.9 million and 88.2 million shares, respectively. (See "Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income" table below.) "We are pleased to have exceeded both revenue and net income guidance for 2009, and expect sales of our coal water slurry fuel to continue to increase during 2010 due to our increased production capacity, expanded customer base, current order rates and growing demand for clean energy in China," stated Baowen Ren, Chairman of Sino Clean Energy. "Our total production capacity today is 850,000 metric tons following the recent addition of 200,000 metric tons at our existing facility located in Tongchuan, Shaanxi province. Currently, we have 35 customers under CWSF supply agreements totaling approximately 800,000 metric tons per year. We are negotiating with 15 potential customers for supply agreements which could represent up to 500,000 metric tons of CWSF and plan to expand our production capacity to 1,550,000 metric tons by the end of 2010. The CWSF market continues to expand due to growing customer demand for clean and efficient sources of energy and the government's mandate for reduced emissions through improved utilization of coal. We believe that CWSF is an ideal alternative for addressing China's pollution problem while meeting its growing energy requirements. CWSF increases burning efficiency and reduces air pollution, coal consumption and coal material costs for end users while generating attractive gross profit margins for energy producers. As a result, we believe we are well-positioned to further gain market share as a leading producer of CWSF in China." Liquidity and Capital Resources Cash and cash equivalents were $18.3 million at December 31, 2009 compared to $3.9 million at December 31, 2008. For 2009, the Company generated $9.7 million in net cash flow from operations, compared to $4.7 million in 2008. The Company had working capital of $7.7 million at December 31, 2009 and a current ratio of .37-to-1. Inventories were $0.9 million and the accounts receivable balance was $3.7 million at December 31, 2009, compared to approximately $45,000 and $0.9 million respectively at December 31, 2008. The annualized days sales outstanding for the fourth quarter of 2009 were 31 days. Financial Outlook for 2010 For the year ending December 31, 2010, management increased guidance and now expects revenues of at least $105 million in revenues and adjusted net income of at least $25 million, representing an increase of approximately 128.3% and 127.3% compared to 2009 revenues and adjusted net income, respectively. This guidance assumes total sales volume of 850,000 metric tons of CWSF in 2010. The Company expects to end 2010 with 1,550,000 metric tons of total CWSF production capacity. Government Support in China China is the world's largest producer and consumer of coal and is also one of the world's leading emitters of greenhouse gas (GHG). Approximately 70% of China's energy comes from coal, the greatest part of which is burned in older, inefficient power plants that are primary contributors to GHG. To address environmental concerns from the use of coal, the Chinese central government formulated the "9th Five-Year Plan for Clean Coal Technology in China and a Development Program to 2010" in 1995, which emphasized the need to strengthen research and development of clean coal technologies and to promote commercialization of proven clean coal technologies including CWSF. The China State Environmental Protection Agency (SEPA) states that over $190 billion will be spent by industrial companies for environmental cleanup as part of the 11th Five Year Plan (2006-2010). Conference Call The conference call will take place at 10:00 a.m. ET on Friday, April 9, 2010. Interested participants should call 1-877-941-4774 when calling within the United States or 1-480-629-9760 when calling internationally. A playback will be available through April 16, 2010. To listen, please call 1-800-406-7325 within the United States or 1-303-590-3030 when calling internationally. Utilize the pass code 4281232 for the replay. This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=0000731E, or visiting ViaVid's website at http://www.viavid.net, where the webcast can be accessed through April 16, 2010. About Sino Clean Energy Sino Clean Energy is a U.S. publicly traded company and a China-based producer and distributor of coal-water slurry fuel ("CWSF"). With locations in Shaanxi Province and Liaoning Province, Sino Clean Energy is the largest CWSF producer in Northwestern China with 850,000 metric tons of total annual capacity. For more information about Sino Clean Energy, please visit http://www.sinocei.net/ . About Non-GAAP Financial Measures The following table excludes from net income (loss) certain items related to the cost of escrow shares put in escrow by the Company's chairman as a guarantee on the issuance of Sino Clean Energy's convertible notes, the cost related to the issuance of the Company's private placement (primarily related to the fair value of the derivatives created upon issuance related to the conversion feature of the notes and the fair value of the warrants issued to the convertible note holders), the change in fair value of these derivatives during the period as well as the extinguishment of a portion of the derivative upon conversion of the notes, and amortization of the valuation discount recorded as interest expense relating to these convertible notes. The Company believes that these non-GAAP financial measures are useful to investors because they exclude non-cash charges that management excludes when it internally evaluates the performance of the Company's business and makes operating decisions, including internal budgeting, and performance measurement, because these measures provide a consistent method of comparison to historical periods. Moreover, management believes these non-GAAP measures reflect the essential operating activities of Sino Clean Energy. Accordingly, management excludes these items when making operational decisions. The Company believes that providing to its investors the non-GAAP measures that management uses is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand the Company's financial performance in comparison to historical periods. In addition, it allows investors to evaluate the Company's performance using the same methodology and information as that used by our management. Non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure. However, our management compensates for these limitations by providing the relevant disclosure of the items excluded. Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income
2009 2008 GAAP Net (loss) income $(34,736,689) $ 3,351,454 Non-GAAP adjustment Expense related to escrow shares 11,125,071 676,466 Extinguishment of derivative liability (7,046,556) 0 Change in fair value of warrants and embedded 12,770,113 0 conversion feature Cost of private placement 24,977,114 0 Amortization of notes discount 3,942,185 0 Adjusted Net income $ 11,031,238 $ 4,027,920
Safe Harbor Statement This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to uncertainties in product demand, the impact of competitive products and pricing, our ability to obtain regulatory approvals, changing economic conditions around the world, release and sales of new products and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information please contact: Company: Ming Lee Assistant to the Chairman Tel: +86-29-8406-7376 (China) Email: marin_lm@163.com Investor Relations: HC International, Inc. Ted Haberfield, Executive VP Tel: +1-760-755-2716 Email: thaberfield@hcinternational.net Web: http://www.hcinternational.net FINANCIAL TABLES FOLLOW Sino Clean Energy Inc. and Subsidiaries Consolidated Balance Sheets (Amounts expressed in U.S. Dollars)
ASSETS Pro Forma December 31, December 31, December 31, 2009 2009 2008 (Unaudited) Current assets Cash and cash equivalents $ 18,302,558 $ 18,302,558 $ 3,914,306 Accounts receivable, net 3,655,473 3,655,473 899,629 Inventories 892,609 892,609 45,068 Prepaid inventories 5,453,095 5,453,095 1,996,584 Prepaid expenses 259,627 259,627 86,958 Refundable advance -- -- 731,861 Government grant receivable -- -- 146,314 Other receivables 65,584 65,584 16,986 Tax recoverable 138,495 138,495 -- Prepaid land use right - current portion 38,739 38,739 38,703 Total current assets 28,806,180 28,806,180 7,876,409 Property, plant and equipment, net 12,557,691 12,557,691 9,394,416 Land use right - non current portion 1,778,562 1,778,562 1,804,277 Prepayments and deposits 729,328 729,328 994,395 Goodwill 762,018 762,018 762,018 Deferred debt issuance cost -- -- 274,278 Total assets $ 44,633,779 $ 44,633,779 $ 21,105,793 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) Current liabilities Convertible notes net of discount $ -- $ -- $ 383,490 Accounts payable and accrued expenses 2,672,211 2,672,211 1,004,999 Taxes payable 1,577,249 1,577,249 305,903 Amount due to directors 73,466 73,466 465,049 Derivative liabilities 16,752,858 16,752,858 -- Total current liabilities 21,075,784 21,075,784 2,159,441 Convertible notes, net of discount -- 1,615,025 -- Derivative liabilities -- 28,404,181 -- Total liabilities 21,075,784 51,094,990 2,159,441 Commitments and Contingencies Shareholders' Equity Deficiency) Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding -- -- -- Common stock, $0.001 par value, 300,000,000 shares authorized, 108,498,625 and 92,181,750 issued and outstanding as of December 31, 2009 and 2008 respectively, and 162,272,309 as of December 31, 2009 on proforma basis 162,273 108,499 92,182 Additional paid-in capital 35,498,381 25,335,155 12,696,549 (Accumulated deficit) Retained earnings (16,000,781) (35,802,987) 3,686,087 Statutory reserves 1,758,553 1,758,553 348,309 Accumulated other comprehensive income 2,139,569 2,139,569 2,123,225 Total shareholders' equity (Deficiency) 23,557,995 (6,461,211) 18,946,352 Total liabilities and shareholders' equity $ 44,633,779 $ 44,633,779 $ 21,105,793
As of December 31, 2009, the Company had outstanding $10,217,000 of its 10% Senior Secured Convertible Notes. Subsequent to December 31, 2009, and by March 5, 2010, all the convertible notes holders converted these notes into 53,773,684 shares of common stock of the Company pursuant to the original Securities Purchase Agreement and Form of Note. As of December 31, 2009, the Company had reflected a valuation discount of $8,601,975 against these convertible notes payable, and had recorded a derivative liability of $28,404,181 relating to the fair value of the conversion feature of these notes. The unamortized portion of the valuation discount will be treated as additional interest expense on the date of conversion, and the fair value of the derivative liability will be recognized as a gain on extinguishment on the date of conversion. The effects of the above conversion and extinguishment of the derivative liability on the recorded assets, liabilities and shareholders equity of the Company as if the conversion had occurred on December 31, 2009 are reflected in the "pro forma" column in the accompanying balance sheet. Sino Clean Energy Inc. and Subsidiaries Consolidated Statements of Operations and Other Comprehensive Income (Loss) For the years ended December 31, 2009 and 2008 (Amounts expressed in U.S. Dollars) Years Ended December 31, 2009 2008 Revenue $ 46,012,353 $ 14,253,989 Cost of goods sold (28,922,846) (9,266,832) Gross profit 17,089,507 4,987,157 Selling expenses 1,125,884 13,128 General and administrative expenses 1,796,032 554,766 Income from operations 14,167,591 4,419,263 Other income (expenses) Interest expense (4,937,441) (566,752) Expense related to escrow shares (11,125,071) (676,466) Rental income, net of outgoings -- 78,691 Interest income 43,285 27,397 Extinguishment of derivative liability 7,046,556 -- Change in fair value of derivative liabilities (12,770,113) -- Cost of private placement (24,977,114) -- Sundry income (expenses) (29,293) -- Gain on disposal of property -- 33,069 Government grant -- 141,501 Total other income (expenses) (46,749,191) (962,560) (Loss) Income before provision for income taxes (32,581,600) 3,456,703 Provision for income taxes 2,243,088 105,249 Net (loss) income (34,824,688) 3,351,454 Net income allocated to non- controlling interest -- (351,849) Net (loss) income allocated to Sino Clean Energy, Inc. (34,824,688) 2,999,605 Other comprehensive (loss) income Foreign currency translation adjustment 16,344 962,127 Comprehensive (loss) income $(34,808,344) $ 3,961,732 Weight average number of shares -Basic 97,929,217 87,169,614 -Diluted 97,929,217 88,162,076 (Loss) Income per common share - Basic $ (0.36) $ 0.03 - Diluted $ (0.36) $ 0.03 Sino-Clean Energy, Inc. and Subsidiaries Consolidated Statements of Changes in Shareholders' Equity (Deficiency) For the years ended December 31, 2009 and 2008
Additional Common Stock paid-in Statutory Share Amount capital reserve Balance, January 1, 2008 84,681,750 $ 84,682 $ 9,153,174 $ 348,309 Fair value of shares issued for acquisition of minority interest 7,500,000 7,500 1,492,500 -- Fair value of warrant issued for debt issuance fee -- -- 30,759 -- Fair value of warrant issued with convertible notes -- -- 1,335,650 -- Expense related to escrow shares -- -- 676,466 -- Fair value of vested stock options -- -- 8,000 -- Foreign currency translation gain -- -- -- -- Net income -- -- -- -- Balance, December 31, 2008 92,181,750 92,182 12,696,549 348,309 Reclassification of warrants and conversion feature to derivative liability -- -- (1,335,650) -- Balance, January 1, 2009 as adjusted 92,181,750 92,182 11,360,899 348,309 Fair value of shares issued for service 2,333,000 2,333 452,602 -- Common stock issued upon conversion of convertible notes and accrued interest 13,983,875 13,984 2,396,583 -- Expense related to escrow shares -- -- 11,125,071 -- Net loss -- -- -- 1,410,244 Foreign currency translation gain -- -- -- -- Balance, December 31, 2009 108,498,625 $ 108,499 $ 25,335,155 $ 1,758,553
Sino-Clean Energy, Inc. and Subsidiaries Consolidated Statements of Changes in Shareholders' Equity (Deficiency) For the years ended December 31, 2009 and 2008
Accumulated other Retained comprehensive earnings income Total Balance, January 1, 2008 $ 686,482 $ 1,161,098 $ 11,433,745 Fair value of shares issued for acquisition of minority interest -- -- 1,500,000 Fair value of warrant issued for debt issuance fee -- -- 30,759 Fair value of warrant issued with convertible notes -- -- 1,335,650 Expense related to escrow shares -- -- 676,466 Fair value of vested stock options -- -- 8,000 Foreign currency translation gain -- 962,127 962,127 Net income 2,999,605 -- 2,999,605 Balance, December 31, 2008 3,686,087 2,123,225 18,946,352 Reclassification of warrants and conversion feature to derivative liability (3,254,142) -- (4,589,792) Balance, January 1, 2009 as adjusted 431,945 2,123,225 14,356,560 Fair value of shares issued for service -- -- 454,935 Common stock issued upon conversion of convertible notes and accrued interest -- -- 2,410,567 Expense related to escrow shares -- -- 11,125,071 Net loss (36,234,932) -- (34,824,688) Foreign currency translation gain -- 16,344 16,344 Balance, December 31, 2009 $(35,802,987) $ 2,139,569 $ (6,461,211)
Sino Clean Energy Inc. and Subsidiaries Consolidated Statements of Cash Flows For the years ended December 31, 2009 and 2008 (Amounts expressed in U.S. Dollars) Year ended December 31, 2009 2008 Cash flows from operating activities: Net income (loss) $(34,824,688) $ 3,351,454 Adjustments to reconcile net income (loss) to cash provided by operating activities: Depreciation & amortization 1,530,238 253,826 Amortization of discount on convertible notes 3,942,185 383,490 Amortization of deferred debt issuance costs 274,278 114,234 Fair value of vested stock options -- 8,000 Gain on sale of leasehold -- (33,069) Fair value of shares issued for services 454,935 -- Expense related to escrow shares 11,125,071 676,466 Cost of private placement 24,977,114 -- Change in fair value of derivative liabilities 12,770,113 Extinguishment of derivative liability (7,046,556) -- Change in operating assets and liabilities: Accounts receivable (2,755,844) 233,367 Receipt of government grants 146,314 264,686 Inventories (847,541) (1,282) Prepaid inventories (3,456,511) -- Prepaid expenses (172,669) (1,059,963) Refundable advance 731,861 -- Other receivables (48,598) 154,861 Tax recoverable (138,495) -- Accounts payable and accrued expenses 1,759,335 27,822 Taxes payable 1,271,346 161,226 Assets on discontinued operation Other receivables -- 141,795 Net cash provided by operating activities 9,691,888 4,676,913 Cash flows from investing activities: Prepayments and deposits 265,067 -- Proceeds from sale of leasehold -- 1,024,465 Purchase of property, plant and equipment (4,654,910) (6,225,019) Net cash used in investing activities (4,389,843) (5,200,554) Cash flows from financing activities: Repayment of amount due to a director (391,583) -- Repayment from a director -- 370,478 Advance from a director -- 70,000 Deferred debt issuance costs -- (357,753) Proceeds from issuance of convertible notes 9,874,370 1,335,650 Payment of convertible notes (400,000) -- Net cash provided by financing activities 9,082,787 1,418,375 Effect of foreign currency translation 3,420 187,440 Net increase (decrease) in cash and cash equivalents 14,388,252 1,082,174 Cash and cash equivalents, beginning of year 3,914,306 2,832,132 Cash and cash equivalents, end of year $ 18,302,558 $ 3,914,306 Supplemental Disclosure Information Interest paid $ 640,406 $ -- Income taxes paid 1,161,346 24,760 Supplemental non-cash investing and financing activities Conversion of convertible notes and accrued interest into common stock 2,410,567 -- Allocation of derivative liability to note discount 11,592,000 -- Cumulative effect of change in accounting principle upon adoption of new accounting pronouncement on January 1,2009, reclassification of warrants and conversion feature to derivative liability 4,589,792 -- Fair value of warrants and beneficial conversion feature related to issuance of convertible notes -- 1,335,650 Fair value of warrant issued for debt issuance fee -- 30,759 Issuance of common stock for minority interest -- 1,500,000

The following information was filed by Sino Clean Energy Inc (SCEI) on Friday, April 9, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Sino Clean Energy Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Sino Clean Energy Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account