Exhibit 99.1
  FUSHI
      COPPERWELD, INC.CONDENSED
      PARENT COMPANY BALANCE SHEETSAS
      OF MARCH 31, 2010 AND DECEMBER 31, 2009ASSETSMarch
      31,
                                                                                                      
                                                                                                      
                                                                                                      December
      31,2010
                                                                                                      
                                                                                                      
                                                                                                      2009UnauditedCURRENT
      ASSETS:Cash
                                                                                                      
                                                                                                      $
                                                                                                      9,021,926
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      98,839Deposit
      in derivative hedge
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      1,000,000Total
      current assets
                                                                                                      
                                                                                                      
                                                                                                      9,021,926
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      1,098,839OTHER
      ASSETS:Investments
      in subsidiaries
                                                                                                      
                                                                                                      
                                                                                                      309,724,065
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      290,640,043Deferred
      loan expense, net
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      1,955,778Deferred
      tax assets
                                                                                                      
                                                                                                      
                                                                                                      15,168,955
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      11,722,469Total
      other assets
                                                                                                      
                                                                                                      
                                                                                                      324,893,020
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      304,318,290Total
      assets
                                                                                                      
                                                                                                      $
                                                                                                      333,914,946
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      305,417,129LIABILITIES AND SHAREHOLDERS'
      EQUITYCURRENT
      LIABILITIES:Notes
      payable, current
                                                                                                      
                                                                                                      $
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      10,000,000Other
      payables and accrued liabilities
                                                                                                      
                                                                                                      
                                                                                                      1,132,161
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      2,609,037Cross
      currency hedge payable
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      436,702Derivative
      instrument settlement payable, net
                                                                                                      
                                                                                                      
                                                                                                      5,650,000
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      -Total
      current liabilities
                                                                                                      
                                                                                                      
                                                                                                      6,782,161
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      13,045,739LONG-TERM  LIABILITIES:Intercompany
      payables
                                                                                                      
                                                                                                      
                                                                                                      18,823,958
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      22,863,141Notes
      payable, non-current
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      25,000,000Fair
      value of derivative instrument
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      7,532,527Total
      long-term liabilities
                                                                                                      
                                                                                                      
                                                                                                      18,823,958
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      55,395,668Total
      liabilities
                                                                                                      
                                                                                                      
                                                                                                      25,606,119
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      68,441,407COMMITMENTS
      AND CONTINGENCIESSHAREHOLDERS'
      EQUITY:Preferred
      stock,$0.001 par value, 5,000,000 shares authorized, none
                                                                                                        issued
      or outstanding as of March 31, 2010 and December 31, 2009
                                                                                                      
                                                                                                      
                                                                                                      -
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      -Common
      stock,$0.006  par value, 100,000,000 shares
      authorized,March
      31, 2010: 37,248,672 shares issued and outstandingDecember
      31, 2009: 29,772,780 shares issued and outstanding
                                                                                                      
                                                                                                      
                                                                                                      223,493
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      178,638Additional
      paid in capital
                                                                                                      
                                                                                                      
                                                                                                      162,050,378
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      105,540,676Statutory
      reserves
                                                                                                      
                                                                                                      
                                                                                                      17,566,294
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      16,282,793Retained
      earnings
                                                                                                      
                                                                                                      
                                                                                                      103,371,007
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      97,283,748Accumulated
      other comprehensive income
                                                                                                      
                                                                                                      
                                                                                                      25,097,655
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      17,689,867Total
      shareholders' equity
                                                                                                      
                                                                                                      
                                                                                                      308,308,827
                                                                                                      
                                                                                                      
                                                                                                      
                                                                                                      236,975,722Total
      liabilities and shareholders' equity
                                                                                                      
                                                                                                      $
                                                                                                      333,914,946
                                                                                                      
                                                                                                      
                                                                                                      $
                                                                                                      305,417,129







FUSHI
      COPPERWELD, INC.CONDENSED
      PARENT COMPANY STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
      (LOSS)FOR
      THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009(UNAUDITED)Three
      months ended March 31,2010
                                            
                                            
                                            2009OPERATING
      EXPENSESGeneral
      and administrative expenses
                                            
                                            $
                                            1,002,710
                                            
                                            
                                            $
                                            1,012,524Total
      operating expenses
                                            
                                            
                                            1,002,710
                                            
                                            
                                            
                                            1,012,524OTHER
      INCOME (EXPENSE)Interest
      and other expense, net
                                            
                                            
                                            (458,056
                                            )
                                            
                                            
                                            (1,373,843
                                            )Loss
      on cross currency hedge
                                            
                                            
                                            (753,666
                                            )
                                            
                                            
                                            (166,410
                                            )Loss
      on derivative instrument settlement
                                            
                                            
                                            (6,650,000
                                            )
                                            
                                            
                                            -Loss
      on debt extinguishment
                                            
                                            
                                            (2,395,778
                                            )
                                            
                                            
                                            -Change
      in derivative liability - warrants
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (63,238
                                            )Change
      in derivative liability - conversion option
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (539,037
                                            )Total
      other expense, net
                                            
                                            
                                            (10,257,500
                                            )
                                            
                                            
                                            (2,142,528
                                            )EQUITY
      INCOME EARNINGS OF SUBSIDIARIES
                                            
                                            
                                            15,184,484
                                            
                                            
                                            
                                            4,629,441INCOME
      BEFORE INCOME TAXES
                                            
                                            
                                            3,924,274
                                            
                                            
                                            
                                            1,474,389BENEFIT
      FOR INCOME TAXES
                                            
                                            
                                            3,446,486
                                            
                                            
                                            
                                            1,626,528NET
      INCOME
                                            
                                            
                                            7,370,760
                                            
                                            
                                            
                                            3,100,917OTHER
      COMPREHENSIVE INCOMEForeign
      currency translation adjustment
                                            
                                            
                                            (124,739
                                            )
                                            
                                            
                                            (393,908
                                            )Change
      in fair value of derivative instrument
                                            
                                            
                                            882,527
                                            
                                            
                                            
                                            (2,762,129
                                            )Reclassification
      of change in cash flow hedge to earnings
                                            
                                            
                                            6,650,000
                                            
                                            
                                            
                                            -COMPREHENSIVE
      INCOME
                                            
                                            $
                                            14,778,548
                                            
                                            
                                            $
                                            (55,120
                                            )









FUSHI
      COPPERWELD, INC.CONDENSED
      PARENT COMPANY STATEMENTS OF CASH FLOWSFOR
      THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009(UNAUDITED)2010
                                              
                                              
                                              2009CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      loss
                                              
                                              $
                                              7,370,760
                                              
                                              
                                              $
                                              3,100,917Adjustments
      to reconcile net lossused
      in operating activities:Equity
      in earnings of subsidiaries
                                              
                                              
                                              (15,184,484
                                              )
                                              
                                              
                                              (4,629,441
                                              )Deferred
      taxes
                                              
                                              
                                              (3,446,486
                                              )
                                              
                                              
                                              (1,626,528
                                              )Amortization
      of loan commission
                                              
                                              
                                              160,000
                                              
                                              
                                              
                                              262,497Amortization
      of stock compensation expense
                                              
                                              
                                              193,057
                                              
                                              
                                              
                                              590,868Loss
      on cross currency hedge
                                              
                                              
                                              753,666
                                              
                                              
                                              
                                              166,410Loss
      on derivative instrument settlement
                                              
                                              
                                              6,650,000
                                              
                                              
                                              
                                              -Loss
      on debt extinguishment
                                              
                                              
                                              2,395,778
                                              
                                              
                                              
                                              -Change
      in derivative liability - warrants
                                              
                                              
                                              -
                                              
                                              
                                              
                                              63,238Change
      in derivative liability - conversion option
                                              
                                              
                                              -
                                              
                                              
                                              
                                              539,037Change
      in operating assets and liabilities:Other
      payables and accrued liabilities
                                              
                                              
                                              (1,476,876
                                              )
                                              
                                              
                                              (2,225,024
                                              )Net
      cash used in operating activities
                                              
                                              
                                              (2,584,585
                                              )
                                              
                                              
                                              (3,758,026
                                              )CASH
      FLOWS FROM INVESTING ACTIVITIES:Investment
      in subsidiaries
                                              
                                              
                                              (4,024,277
                                              )
                                              
                                              
                                              (2,630,753
                                              )Payments
      on cross currency hedge payable
                                              
                                              
                                              (1,190,368
                                              )
                                              
                                              
                                              (114,580
                                              )Net
      cash used in investing activities
                                              
                                              
                                              (5,214,645
                                              )
                                              
                                              
                                              (2,745,333
                                              )CASH
      FLOWS FROM FINANCING ACTIVITIES:Intercompany
      payables
                                              
                                              
                                              (4,039,183
                                              )
                                              
                                              
                                              4,574,775Payment
      of high yield notes payable
                                              
                                              
                                              (35,600,000
                                              )
                                              
                                              
                                              -Proceeds
      on issuance of common stock and warrants
                                              
                                              
                                              56,361,500
                                              
                                              
                                              
                                              1,920,000Net
      cash provided by financing activities
                                              
                                              
                                              16,722,317
                                              
                                              
                                              
                                              6,494,775CHANGE
      IN CASH
                                              
                                              
                                              8,923,087
                                              
                                              
                                              
                                              (8,584
                                              )CASH,
      beginning of period
                                              
                                              
                                              98,839
                                              
                                              
                                              
                                              30,414CASH,
      end of period
                                              
                                              $
                                              9,021,926
                                              
                                              
                                              $
                                              21,830SUPPLEMENTAL
      CASH FLOWS DISCLOSURE:Interest
      paid
                                              
                                              $
                                              1,343,849
                                              
                                              
                                              $
                                              1,852,432







FUSHI
COPPERWELD, INC.
  CONDENSED
NOTES TO PARENT FINANCIAL INFORMATION
  (UNAUDITED)


1.
            Basis
      of presentation




Certain
information and footnote disclosures normally included in financial statements
prepared in conformity with generally accepted accounting principles have been
condensed or omitted. The Company’s financial information has been derived from
the consolidated financial statements and should be read in conjunction with the
consolidated financial statements included in this Form 10-Q. The Company’s
investment in subsidiaries is stated at cost plus equity in undistributed
earnings of subsidiaries.





2.
            Restricted
      Net Assets





Schedule
I of Article 5-04 of Regulation S-X requires the condensed financial information
of registrant shall be filed when the restricted net assets of consolidated
subsidiaries exceed 25 percent of consolidated net assets as of the end of the
most recently completed fiscal year. For purposes of the above test, restricted
net assets of consolidated subsidiaries shall mean that amount of the
registrant’s proportionate share of net assets of consolidated subsidiaries
(after intercompany eliminations) which as of the end of the most recent fiscal
year may not be transferred to the parent company by subsidiaries in the form of
loans, advances or cash dividends without the consent of a third party (i.e.,
lender, regulatory agency, foreign government, etc.).





The
condensed parent company financial statements have been prepared in accordance
with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of
the subsidiaries of Fushi Copperweld, Inc. exceed 25% of the consolidated net
assets of Fushi Copperweld, Inc. The ability of our Chinese operating affiliates
to pay dividends may be restricted due to the foreign exchange control policies
and availability of cash balances of the Chinese operating subsidiaries. Because
a significant portion of our operations and revenues are conducted and generated
in China, a significant portion of our revenues being earned and currency
received are denominated in Renminbi (RMB). RMB is subject to the exchange
control regulation in China, and, as a result, we may be unable to distribute
any dividends outside of China due to PRC exchange control regulations that
restrict our ability to convert RMB into US Dollars.





3.
            Notes
      payable consisted of the following:




March
      31, 2010
                
                
                December
      31, 2009Guaranteed
      senior secured floating rate notes (“HY Notes”)
                
                
                -
                
                
                
                35,000,000Less
      current portion
                
                
                -
                
                
                
                10,000,000Total
      notes payable, noncurrent
                
                $
                -
                
                
                $
                25,000,000








FUSHI
COPPERWELD, INC.
  CONDENSED
NOTES TO PARENT FINANCIAL INFORMATION
  (UNAUDITED)


Please
refer to Note 10 of the Notes to the Consolidated Financial Statements for a
more detailed description of the notes payable.





4.
            Derivative
      instrument





The
Company's operations are exposed to a variety of global market risks, including
the effect of changing interest rates. This exposure is managed, in part, with
the use of financial derivatives. The Company uses financial derivatives only to
hedge exposures in the ordinary course of business and does not invest in
derivative instruments for speculative purposes. On April 10, 2007, effective
January 24, 2007, the Company entered a cross currency swap transaction (the
Swap) with Merrill Lynch Capital Services, Inc. (“MLCS”) on the $40 million HY
notes which converts the LIBOR + 7% per annum USD variable interest rate to an
8.3% per annum RMB fixed interest rate.





Effective
March 31, 2010 (the termination date), the SWAP, with an outstanding USD
notional amount of $30,000,000 and an outstanding CNY notional amount of
233,175,000 was unwound with a premium payment price of $6,650,000 to
MLCS.




On March
31, 2010, the $1,000,000 deposit with MLCS to secure the agreement was released
to MLCS as partial payment of the $6,650,000 payment price, thus left $5,650,000
payables to MLCS as of March 31, 2010 and the remaining $5,650,000 payment was
made to Merrill Lynch on April 6, 2010.




Changes
in the fair values of derivative instruments accounted for as cash flow hedges
to the extent they qualify for hedge accounting, are recorded in accumulated
other comprehensive income.  For the three months ended March 31, 2010
and 2009, gain of $882,527 and loss of $2,762,129 was recorded on the derivative
instrument, respectively, in other comprehensive income.




On March
31, 2010, $6,650,000 was transferred from the accumulated other comprehensive
loss into earnings as a loss from termination of the SWAP.  There were
no amounts recorded in the consolidated statements of income in relation to
ineffectiveness of this interest SWAP prior to unwind.




Please
refer to Note 12 of the Notes to the Consolidated Financial Statements for the
derivative instrument.





5.
            Subsequent
      events





See Note
22
of the Notes to the Consolidated Financial Statements for a description of
subsequent events.