Sino Clean Energy's CEO Discusses Q1 2011 Results - Earnings Call Transcript

Sino Clean Energy Inc. (SCEI)

Q1 2011 Earnings Conference Call

May 18, 2011 10:00 AM EST

Executives

Ted Haberfield – EVP, HC International

Baowen Ren – CEO

Zhixin Jing [ph] – Assistant to the CEO

Wendy Fu – CFO

Presentation

Operator

Good day ladies and gentlemen, thank you for standing by. Welcome to the Sino Clean Energy 2011 first quarter financial results conference call.

Today today’s presentation all parties will be in a listen only mode. Following the presentation the conference will be open for questions. (Operator Instructions). This conference is being recorded today Wednesday May 18 th of 2011.

At this time I would like to turn the conference over to Ted Haberfield of HC International. Please go ahead sir.

Ted Haberfield

Thank you and welcome everyone to today’s call for Sino Clean Energy. This call will cover Sino Clean Energy’s financial and operating results for the first quarter of 2011. The earnings press release accompanying this conference call went to the wire yesterday. On our call today is Mr. Baowen Ren, CEO of Sino Clean Energy; Ms. Wendy Fu, CFO; and Zhixin Jing [ph], Assistant to the CEO.

Before we get started I’m going to quickly read the disclaimer to our forward-looking statements. This conference call may contain in addition to historical information, forward looking statements within the meaning of the Federal Securities Law regarding Sino Clean Energy. Forward looking statements include statements of our plan, objectives, goal, strategies, future events, performance and underlying assumptions and other statements that for difference in historical facts.

These forward looking statements are based on current management expectations and are subject to risks, uncertainties that may result in expectation not being realized and may cause actual outcome to differ materially from expectations reflected in this forward looking statements. Potential risks and uncertainties include change in the demands of the company’s services, the impact of competition and government regulations and other risks contained in the statement filed at that time with the SEC.

All such forward looking statements whether written or oral being on behalf of the company are expressively qualified by these cautionary statements and such forward looking statements are subject to risks and uncertainty. And we caution you not to place undue reliance on this.

During the call today the company will discuss non-GAAP financial measures as such the calculation which address operating income, net income or earnings per share which should not include this charge or non-GAAP in nature and solely to help investors to have visibility to the financial matrices which are reflective of the operations which shouldn’t be relied on for making informed decisions and as again we would like to point you to the SEC filings and subsequent notes.

With this statement is very important, due to the ongoing litigation against Alfred Little and Geoinvesting. The company’s attorneys have advised management against making any statements concerning the allegations made against the company in those reports. We hope that the company actions confirm how seriously they take the situation so they will not be doing a question and answering session at the end of this call. So I would like to correct the operator there.

Given the inability to differentiate the questions from the listeners on the call we will not hold discussion of answering session after the prepared remarks instead the company is asking all investors to submit any questions they have regarding their operations and or financial results for the first quarter results by Wednesday May 18 th at midnight. The company will consolidate the applicable response and then submit an 8-K by this Friday May 20 th.

Please send all questions via email to Ted Haberfield at HC international. The email address is thaberfield@hcinternational.net that’s thaberfield@hcinternational.net that email address can also be found at the adjacent press release that was issued yesterday. Management appreciates your understanding for the protocol covering this call. At this time I would like to turn the call over to Mr. Ren who will be providing brief opening remarks in Mandarin and Mr. Zhixin Jing will interpret. Mr. Ren the floor is now yours.

Baowen Ren

[Interpreted]

Thanks Ted and thank you everyone for joining us for an update on our financial results for the first quarter of 2011. We are pleased with our strong revenue growth and operating performance for the quarter as we achieved a record result due to strong growth in sales for our coal water slurry fuel or CWSF. Ms. Wendy Fu will be providing our detailed financial results for the first quarter of 2011 and Mr. Ted will finish up by discussing our growth, strategy and outlook as on being one of the leading producers and distributors of CWSF in China.

I would now like to turn the call over to Mr. Zhixin Jing and Ms. Wendy Fu for additional commentary.

Zhixin Jing

Okay. Thank you, Mr. Ren. This is Zhixin Jing, the Assistant to the CEO. I’ll give a brief introduction to Sino Clean Energy business and then discuss our first quarter financial results. We are pleased with our strong operating results for the first quarter of 2011 as reflected in the growth in our sales, operating income and cash flows. The early successes we have experienced first and foremost our production in our new 300,000 ton facility in Guangdong signing nine customers to deliver approximately 404,000 tons of CWSF over the next years, reaffirm our confidence in the long term growth opportunities we have in this market.

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