By 2020, China aims to draw 15% of its energy from sources other than fossil fuels.

China has become a major producer and consumer of alternative energy such as wind and solar power. According to the China Energy Research Society (CERS), China has recoverable wind energy sources of 160 million kilowatts (kw), geothermal sources of 3.5 million kw and tidal energy sources of more than 20 million kw.

Under the strong support of government policies, China’s new wind power capacity ranks number one in the world and currently accounts for approximately 0.8% to 2.6% of the nation’s primary sources for energy. Wind power is expected to account for 11% of China’s total energy consumption in another decade. Wind energy companies like China Wind Systems, Inc. (NasdaqGM: CWS) are showing great return rates with second quarter net income up 69.8% and revenues up 39.7% year-over-year. To increase expansion, the Company is also in the process of negotiating with wind power clients to supply shafts and other forged products in the second half of 2010.

In a law passed in 2005 by the National People’s Congress, China’s top legislature, China set a goal to increase the share of renewable energy resources to 10 percent of China’s total energy consumption by 2020. Solar energy companies like Worldwide Energy and Manufacturing, USA, Inc. (OTCBB: WEMU) are seeing triple-digit revenue increases YoY. WEMU reported a 286% YoY increase in revenue for the second quarter of 2010. With its continuous expansion plan into Nantong, we expect higher revenue increases for WEMU within the next few years.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

One company expanding its European presence is Worldwide Energy and Manufacturing, USA, Inc. (OTCBB: WEMU), a U.S.-based manufacturing company that derives the majority of its revenues from solar module sales, marketed under the “Amerisolar” brand. In the company’s second quarter operating update released just over a week ago, WEMU revealed that of its 15 new clients this quarter, the majority are located in Germany, France, Italy, and the UK. This news builds on WEMU’s first-quarter distributor agreement with UK-based Ardenham Energy and the eligibility of its solar modules for the British government’s Low Carbon Building Program, Feed-In Tariff, and Code for Sustainable Homes projects, both of which have given it a strong foothold in the UK market.

Sales to new European customers have helped WEMU amass an order backlog currently exceeding $100 million, the great majority of which are solar module orders to be fulfilled this year.

WEMU’s solar division delivered more than $35 million in orders during its second quarter, according to last week’s operating update. Thus, in the first half of the year WEMU has made at least $61 million in solar sales, an impressive 325% increase over the first half of 2009. Based on preliminary first half solar revenues, the division is functioning at an annual run rate in the range of $120 million to $125 million for 2010, compared to actual solar revenues of $47.8 million in 2009. At this rate of growth, WEMU could easily see revenues from its Amerisolar brand increase 150% or more from fiscal 2009 to 2010, especially considering the relative historical strength of its fourth quarter. Coupled with evidence of improving industry conditions, this could be just the beginning of three quarters of solid growth for WEMU.

Shares in the industry leaders in the solar sector such as First Solar (Nasdaq: FSLR), Trina Solar (NYSE: TSL), and Suntech Power (NYSE: STP) have been trending up as much as 30% since early June. First Solar reported strong 2Q earnings just this morning, beating analyst EPS estimates by 14%, and WEMU is all but certain to follow the trend when it reports earnings in a few weeks.

With a strong cash balance (as of March 31, WEMU had $16.1 million in cash reserves and has a history, both short- and long-term, of consistently growing its cash position over time), positive operating cash flow (WEMU generated $1.2 million in 1Q operating cash flow), and upward momentum in solar peer comparable stocks, this stock is on track to shine for the remainder of 2010.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

Worldwide’s impressive first quarter growth was largely driven by increased sales of the Company’s AmeriSolar brand of photovoltaic modules. The solar division posted record sales of $26.21 million, an increase of approximately 280.4% from $6.89 million in the first quarter of 2009. Gross profit for the solar division was $2.80 million in the first quarter of 2010, an increase of approximately 184.3% from $0.99 million in the same period of 2009. Solar is one of the fastest growing sectors of the clean tech industry. Despite a recent solar industry slowdown, Worldwide’s solar division has continued to grow. The division’s backlog currently stands at approximately $82 million dollars.

First quarter highlights include:

• Revenues for the first quarter of 2010 were $30.33 million, an increase of 195% compared to $10.28 million for the first quarter of 2009.
• Net income for the first quarter totaled $1.95 million, up 195% from $0.67 million in the same quarterly period of 2009.
• Basic and diluted net income increased 105% to $0.39 per share, compared to $0.19 per share for the first quarter of 2009.
• Gross profit increased to $3.79 million from $1.72 million, representing an increase of 120.6% for the same period a year ago.

Although the solar division accounts for the bulk of sales, Worldwide’s global customer base also includes the industries of wireless telecommunications, aerospace, automobiles and medical equipment, representing a $60 billion market in the U.S. alone. Fortune 500 clients include GE, GM Shanghai, Tyco, Danaher, Flextronics, Smith Industries, and Andrew.

In their May 18th earnings call, Worldwide President Jeff Watson stated that the Company expects 2010 to be another record year. Worldwide plans to release guidance for the full year after releasing their second quarter earnings in August 2010. The Company also anticipates acceptance to a senior exchange in the near future.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

Worldwide Energy and Manufacturing USA (OTCBB: WEMU)

In past quarterly reports WEMU has consistently cited the desire to transition into more direct solar manufacturing; however, the company has been constrained by having to lease factories and not owning them. Well that’s all about to change as WEMU is in the process of raising $8 million through a private placement of restricted common stock and warrants. By raising the remaining capital necessary to finalize the company’s much anticipated Nantong PV module factory in China and buying the remaining needed equipment, WEMU is now positioned to take on the direct manufacturing pursuits that they had envisioned. With the addition of the Nantong factory, the company will eliminate its reliance on subcontractors thereby controlling the entire production process while vastly improving profit margins. Bottom line, the addition of the Nantong factory allows WEMU to streamline its costs and differentiate itself as the low-cost, high-quality manufacturer.

By focusing on the enormous growth potential in WEMU’s solar division, the company looks to sustain triple-digit growth this year. According to CEO Jimmy Wang this financing “will allow us to accelerate our production schedules and increase capacity to meet the growing demand.” With the global solar energy market expected to double in the next three years, WEMU new facility is going to have a lot demand to look forward to.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

For the three months ended September 30, 2009, the Company estimates:

– Revenues increased approximately 74% sequentially to $18 million.
– Net income from continuing operations is $800,000, or approximately $0.22 per share, a 46.3% increase over the same period of last year.
– EBITDA is estimated at approximately $1.2 million or $0.33 per share for the three-month period.
– Approximately 80% of the revenues and profit was obtained from the Company’s solar division, AmeriSolar.
– Nine Months Net Income $0.35 per share, or $1.26 million

Worldwide’s solar revenue in 2Q9 was $7.5 million, which accounted for 73% of the Company’s 2Q revenues, an increase of 128% compared to solar revenue in 2Q of 2008. On a six-months basis, solar revenue was $14.4 million, accounting for 70% of the first six months’ revenues, an increase of 149% over the solar business in the first six months of 2008. 

WEMU, appears to be penetrating into a much bigger territory in the solar markets as compared with 2008. Manufactured under the brand name of “AmeriSolar,” Worldwide’s solar modules provide electric power for residential, commercial, industrial and public utility applications. One reason for their continued growth in solar markets is WEMU’s superior solar module technology, which distinguishes the company from its competitors.

WEMU announced back in March 2009 that it had applied for eight Chinese patents in solar module technology. Worldwide’s mono- and poly-crystalline modules feature a two-bus bar cell design which maximizes the cell’s light absorbing surface area giving the modules more consistent performance. Their modules also have a weather-resistant frame constructed of aluminum alloy for endurance in rugged weather conditions and are given a double-oxidation coating for additional protection against the elements, providing for longer-lasting, more durable modules.

The Company has stated it will continue to focus on marketing efforts to increase its customer base for its solar modules in Europe and other parts of the world, including Germany, Italy, Switzerland, Portugal, France, Spain, England, Australia, South Korea, the United States, and China.

In other Company news:

• On July 27, 2009, WEMU announced that its solar division, AmeriSolar, received a new 3.8 MW solar module contract for a customer in Spain. The contract is valued at approximately US$8.8 million and has been scheduled for delivery over a six-month period: August, September, November, December 2009; and January, February 2010.
• On June 3, 2009, WEMU announced its first solar module shipment in the United States. The order was for a high-end residential villa in the West. The Company also announced they have received UL certification for their solar module products, which allows the company to sell solar modules in the U.S. market.
• On May 18, 2009, WEMU announced that Bank of the West has extended the Company’s working capital line of credit and has provided an additional line of $3 million to help finance the Company’s growing solar order contracts and business.
• On April 8, 2009, WEMU announced that it had acquired two new clients within its contract manufacturing business with their initial orders totaling over $466,000. Management expects to generate over $1 million in revenue from these two customers alone in the fiscal year 2009.
• WEMU announced that, as of March 18, 2009, it had a backlog of $52 million in solar module contracts.

Generally pegged with the price of oil, solar stocks might not seem secure; however, most industry analysts predict that sales will slow going into 2010 but stabilize in the second half of the year as more government subsidies go into effect. Government support to promote solar market expansion is particular strong in China, which continues to invest in new energy industries to meet its overwhelming energy demands.

CCID, a Hong-Kong listed Chinese research consulting firm, reported that China’s solar cell production in 2008 reached 2,000MW, which accounts for 40% of global solar cell production. China’s photovoltaic industry remains in a growth period. CCID also notes that while demand for new energy sources in China is high, “overall technical level is relatively weak” and “technical external dependence is high.”

Worldwide may have yet another key advantage with its R&D programs, which are housed in its new manfucaturing facility in Ningbo, China. WEMU works with research partners at Shanghai Jiao Tung University and Beijing Solar Energy Research Institute to continually work on improving its technology to increase the overall performance and durability of its solar modules, making them more attractive on the market.

Disclosure:  Worldwide Energy and Manufacturing USA is a client of RedChip Companies, Inc.  RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.

WEMU solar panel manufactured at its Ningbo factory

BREAKING NEWS:  Worldwide Energy and Manufacturing USA, Inc. (OTCBB: WEMU), a U.S.-based China manufacturing company specializing in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive, today announced that its solar division, AmeriSolar, has received a new 3.8 MW solar module contract for a customer in Spain. The contract is valued at approximately US$8.8 million and has been scheduled for delivery over a six-month period:  August, September, November, December 2009; and January, February 2010.  

Jimmy Wang, chief executive officer of Worldwide Energy, stated: 

“This contract further validates are unique business model and our superior solar technology. We have simply built a better solar module with more structural integrity and better long-term efficiency. Further, our unique combination of in-house manufacturing and outsourced solar panel manufacturing gives us the ability to deliver high-quality solar panels quickly and efficiently while maintaining competetive gross margins.”

Worldwide now sells it solar panels in ten countries including Germany, Italy, Switzerland, Portugal, France, Spain, Australia, South Korea, Japan, and the United States.

Wang added: 

“With our competitive edge, better quality control technology and strong sales contacts, we continue to win new customers while continuing to grow our revenues and earnings quarter-over-quarter and year-over-year.”

About Worldwide Energy and Manufacturing USA, Inc.
Worldwide Energy and Manufacturing USA, Inc. (“Worldwide”), headquartered in South San Francisco, California, is a 15-year-old engineering-oriented firm specializing in PV panel, mechanical, electronics and fiber optic products manufacturing. The company’s worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd. and Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd., located in Shanghai, China.

For further information on Worldwide Energy and Manufacturing USA, Inc., please visit http://www.wwmusa.com. You may register to receive Worldwide Energy and Manufacturing USA, Inc.’s future press releases or request to be added to the Company’s distribution list by contacting John Ballard.

Forward-looking statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

As this foray into the U.S. market indicates, Worldwide continues to see strong growth in its solar division, AmeriSolar (established in February 2008). WEMU’s solar manufacturing facility in Ningbo, China, which opened in November 2008, has a 60 MW annual production capacity and also houses an R&D team. 

In the company’s first quarter 2009 earnings call, CEO Jimmy Wang stated that the company will continue to focus on sales and marketing efforts for its solar modules in Europe and other parts of the world, including Germany, Italy, Switzerland, Portugal, France, Spain, Australia and South Korea. WEMU’s solar brand continues to gain acceptance in the market place worldwide.

Despite the fact that the first quarter is typically WEMU’s slowest (attributable in part to normal customer patterns and the two-week Chinese New Year holiday in February), net sales for 1Q09 totaled $10.3 million, an increase of 90.3%, compared to $5.4 million for 1Q08. Net income for 1Q09 totaled $0.44 million or $0.13 per share, an increase of 92.4% compared to $0.33 million or $0.11 per share for 1Q08. The company’s solar module orders jumped to $6.4 million for the quarter growing 156% over the same prior-year period.

Mr. Wang attributed the company’s advanced solar technology as one reason for the continued robust growth. In 2008, WEMU filed eight Chinese patents for solar technology enhancements. Commenting on the competitive advantages of Worldwide’s solar module, Mr. Wang stated: 

“Our Mono and Poly crystalline modules feature a two-bus bar cell design which maximizes the cell’s light absorbing surface area giving the modules more consistent performance.

Also, our solar modules have a weather-resistant frame constructed of aluminum alloy for endurance in rugged weather conditions and are given a double oxidation coating for additional protection against the elements, providing for longer lasting, more durable modules.”

Employees of AmeriSolar with CEO Jimmy Wang (center)

In the same conference call, held on May 14, 2009, Mr. Wang said he believes the company’s solar order backlog “supports our recent made projections of $80 million in solar sales for 2009.”

Mr. Wang’s vision is for Worldwide to become a major player in the solar industry in the next few years. Mr. Wang’s timing into the U.S. market may be just right. CNBC.com recently reported that as American utility companies begin to invest more in solar power, the industry is expected to grow. In the CNBC article, Vishal Shah, a Barclays analyst, was quoted as stating that “[m]ajor utilities could install about 5 gigawatts of solar photovoltaic projects during the next three years.”

WEMU solar module manufactured at its Ningbo factory

Dave Gentry, CEO of RedChip (left), visits the AmeriSolar factory with CEO Jimmy Wang (center).

WEMU solar products are manufactured with the highest quality standards.

Worldwide Energy and Manufacturing USA, Inc. (OTCBB: WEMU)

– Revenue increased 90% to $10.3 million for the first quarter 2009
– Net Income increased 132% to $506,857 for the first quarter 2009
– Earnings Per Share is $0.13 for the first quarter 2009 compared to $0.11 for the first quarter 2008

Net sales for the three months ended March 31, 2009 were $10.3 million compared to net sales of $5.4 million for the same period in 2008. This increase of $4.9 million, or approximately 90%, was the result of an increase in orders in the Company’s energy division and the recent acquisition of Shanghai Intech-Detron Electric and Electronic Company Limited (“Detron”).

Net income before taxes for the three months ended March 31, 2009 was $506,857 compared to a net income of $218,923 in the same quarter of 2008. The increase of $287,934, or approximately 132%, was largely the result of the increased sales of the Company’s solar modules.

The company’s solar division, known as Amerisolar, is one of its most profitable divisions and has shown significant growth over the last year. Solar orders for the quarter ended March 31, 2009 were $6.4 million, compared to $2.5 million in the same period of 2008. This represents an increase of $3.9 million, or approximately 156%. The company saw growth across all its divisions, as net sales for the three months ended March 31, 2009 were $10.3 million compared to net sales of $5.4 million for the same period in 2008.

In their earnings release, Mr. Jimmy Wang, CEO of Worldwide Energy and Manufacturing, stated:

“We are very pleased to announce the best first quarter in the company’s history. Our solar energy division is performing well; and with increased capacity and new solar contracts, we expect to experience strong financial growth for the remainder of 2009. We are pleased that our new solar factory is open and producing, which will help to increase our gross margins for the energy division and the company as a whole. Our strong financial performance clearly demonstrates that the company has successfully made the transition into the renewable energy market and solar module manufacturing. The remainder of 2009 is on track for explosive growth with records for both revenue and profitability.”

Additionally, WEMU announced May 18th that Bank of the West has extended the company’s working capital line of credit and has provided an additional line of $3 million to help finance the company’s growing solar order contracts and business.

The extended line of credit will allow WEMU more leeway with which to focus on its current and future projects, including the continued development of its newly established solar factory in Ningbo, China, and the continued quality enhancements of its Amerisolar solar module brand. Worldwide Energy CEO Jimmy Wang stated: “This additional line of credit provides us with the capital needed to help finance our growing solar division. Bank of the West has worked closely with us to make sure our financial needs are being met.”

A major player who has emerged is AmeriSolar, the solar division of Worldwide Energy and Manufacturing USA, Inc. (OTC BB: WEMU). In November 2008, Worldwide Energy and Manufacturing announced that it has leased a 128,000-square-foot facility in Ningbo, China, to house the company’s research center and part of its photovoltaic manufacturing operations. WEMU currently has customers for its solar module products in Germany, Italy, Switzerland, Portugal, France, Spain, and South Korea. 

To date, AmeriSolar has signed approximately $90 million in new solar contracts. In 2008, WEMU generated revenue of $31 million under the “AmeriSolar” brand name. According to Jimmy Wang, CEO of Worldwide, the brand has gained wide acceptance in the marketplace for several reasons:

“Our mono and poly crystalline modules feature a two-bus bar cell design which maximizes the cell’s light absorbing surface area giving the modules more consistent performance.

Every module is tested, utilizing a calibrated solar simulator to ensure that power, voltage and current ratings are maximized.

Also, our solar modules have a weather-resistant frame constructed of aluminum alloy for endurance in rugged weather conditions and are given a double oxidation coating for additional protection against the elements, providing for longer lasting, more durable modules.”

WEMU’s highly experienced engineering team and its research partners at Shanghai Jiao Tung University and Beijing Solar Energy Research Institute, have allowed the company to achieve a technology breakthrough that increased the overall performance and durability of its solar modules, giving them an important competitive advantage.

In addition to the product performance advantages (WEMU’s solar panels can withstand hurricane-level winds without affecting their performance), Worldwide also offers competitive pricing and delivers high-quality components at manufacturing costs that are at least 50 percent less than what Worldwide’s customers pay for similar products in the United States. 

To protect these breakthroughs, WEMU has filed eight Chinese patents for its solar module technology.

Management’s shrewd business sense, the company’s engineering expertise, and years of research and development have paid off. WEMU’s number speak for themselves.

Revenues, up 278% for Year End 2008

Earnings, up $154% for Year End 2008

Backlog in solar orders: $52 million (as of March 18, 2009)

Cash: $5.1 million

With such substantial gains, and considering over $60 billion of the recent American Recovery and Reinvestment Act of 2009 will be going to energy research (including alternative energies and attempts to make existing infrastructure more ”green”), WEMU is one to watch, and possibly set to soar.

To view an interview with CEO Jimmy Wang (conducted at the March 24th RedChip Investor Conference in San Francisco), visit:  http://www.redchip.com/visibility/investor.asp?symbol=WEMU

Worldwide Energy’s Chief Executive Officer Jimmy Wang stated: “Our solar division continues to obtain new module contracts from new customers as well as existing customers demonstrating our ability to retain customers as well to gain new customers in the renewable energy market despite of the temporary downturn on the worldwide demand for renewable alternative energy consumption. We are very encouraged by the achievement we have made and anticipate another triple digit growth for our solar business this year. We will continue to expand our market share in the solar sector as we have become one of the fastest growing companies in the clean-tech industry.”

About Worldwide Energy and Manufacturing USA, Inc.

Worldwide Energy and Manufacturing USA, Inc. (“Worldwide”), headquartered in South San Francisco, California, is a 15-year-old engineering-oriented firm specializing in PV panel, mechanical, electronics and fiber optic products manufacturing. The company’s worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include: Worldwide Energy and Manufacturing Ningbo (Solar factory) Co., Ltd, Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd., Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd. And Shanghai Intech Electric and Electronics Co., Ltd., located in Shanghai and Ningbo, China.

For further information on Worldwide Energy and Manufacturing USA, Inc., please visit http://www.wwmusa.com. You may register to receive Worldwide Energy and Manufacturing USA, Inc.’s future press releases or request to be added to the Company’s distribution list by contacting John Ballard.

Forward-looking statements:

The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances, and are subject to a wide range of business risks, external factors and uncertainties. Actual results may differ materially from those indicated by such forward-looking statements. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events, or otherwise.