Exhibit
99.1




Condensed
Parent-Only Financial Statements of Fushi Copperweld, Inc. under Schedule I of
Article 5-04 of Regulation S-X





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.





The
condensed parent company financial statements have been prepared using the same
accounting principles and policies described in the notes to the consolidated
financial statements. Refer to the consolidated financial statements and notes
presented in this 10Q filing for additional information and disclosures with
respect to these financial statements.









FUSHI
COPPERWELD, INC.
 
 CONDENSED
PARENT COMPANY BALANCE SHEETS
 AS OF
JUNE 30, 2009 AND DECEMBER 31, 2008
 
 June 30,
                                                              
                                                              
                                                              December 31,2009
                                                              
                                                              
                                                              2008UnauditedASSETSCURRENT
      ASSETS:Cash
                                                              
                                                              $
                                                              143,647
                                                              
                                                              
                                                              $
                                                              30,414Restricted
      cash
                                                              
                                                              
                                                              -
                                                              
                                                              
                                                              
                                                              1,000,000Deposit
      in derivative hedge
                                                              
                                                              
                                                              1,000,000
                                                              
                                                              
                                                              
                                                              1,000,000Total
      current assets
                                                              
                                                              
                                                              1,143,647
                                                              
                                                              
                                                              
                                                              2,030,414OTHER
      ASSETS:Investments
      in subsidiaries
                                                              
                                                              
                                                              268,893,699
                                                              
                                                              
                                                              
                                                              252,761,912Deferred
      loan expense, net
                                                              
                                                              
                                                              2,663,349
                                                              
                                                              
                                                              
                                                              3,188,344Deferred
      tax assets
                                                              
                                                              
                                                              10,168,733
                                                              
                                                              
                                                              
                                                              7,804,027Total
      other assets
                                                              
                                                              
                                                              281,725,781
                                                              
                                                              
                                                              
                                                              263,754,283Total
      assets
                                                              
                                                              $
                                                              282,869,428
                                                              
                                                              
                                                              $
                                                              265,784,697LIABILITIES
      AND SHAREHOLDERS' EQUITYCURRENT
      LIABILITIES:Notes
      payable, current
                                                              
                                                              $
                                                              10,000,000
                                                              
                                                              
                                                              $
                                                              5,000,000Other
      payables and accrued liabilities
                                                              
                                                              
                                                              8,001,262
                                                              
                                                              
                                                              
                                                              3,613,789Cross
      currency hedge payable
                                                              
                                                              
                                                              372,118
                                                              
                                                              
                                                              
                                                              104,324Total
      current liabilities
                                                              
                                                              
                                                              18,373,380
                                                              
                                                              
                                                              
                                                              8,718,113LONG-TERM  LIABILITIES:Intercompany
      payables
                                                              
                                                              
                                                              7,767,865
                                                              
                                                              
                                                              
                                                              2,512,023Derivative
      liability - conversion option
                                                              
                                                              
                                                              6,351,413
                                                              
                                                              
                                                              
                                                              -Notes
      payable, non-current
                                                              
                                                              
                                                              35,729,652
                                                              
                                                              
                                                              
                                                              40,000,000Fair
      value of derivative instrument
                                                              
                                                              
                                                              7,890,432
                                                              
                                                              
                                                              
                                                              4,377,076Total
      long-term liabilities
                                                              
                                                              
                                                              57,739,362
                                                              
                                                              
                                                              
                                                              46,889,099Total
      liabilities
                                                              
                                                              
                                                              76,112,742
                                                              
                                                              
                                                              
                                                              55,607,212COMMITMENTS
      AND CONTINGENCIES
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              
                                                              7,197,794SHAREHOLDERS'
      EQUITY:Preferred
      stock,$0.001 par value, 5,000,000 shares authorized, none issued or
      outstanding as of June 30, 2009 and December 31, 2008
                                                              
                                                              
                                                              -
                                                              
                                                              
                                                              
                                                              -Common
      stock,$0.006  par value, 100,000,000 shares
      authorized,June
      30, 2009: 30,100,659 shares issued and 27,900,659
    outstandingDecember
      31, 2008: 27,499,034 shares issued and 27,399,034
    outstanding
                                                              
                                                              
                                                              167,405
                                                              
                                                              
                                                              
                                                              164,395Restricted
      common stock in escrow
                                                              
                                                              
                                                              13,200
                                                              
                                                              
                                                              
                                                              600Additional
      paid in capital
                                                              
                                                              
                                                              101,020,802
                                                              
                                                              
                                                              
                                                              91,172,889Common
      stock subscription receivable
                                                              
                                                              
                                                              (5,919,597
                                                              )
                                                              
                                                              
                                                              -Statutory
      reserves
                                                              
                                                              
                                                              13,988,671
                                                              
                                                              
                                                              
                                                              12,316,147Retained
      earnings
                                                              
                                                              
                                                              80,247,101
                                                              
                                                              
                                                              
                                                              78,613,158Accumulated
      other comprehensive income
                                                              
                                                              
                                                              17,239,104
                                                              
                                                              
                                                              
                                                              20,712,502Total
      shareholders' equity
                                                              
                                                              
                                                              206,756,686
                                                              
                                                              
                                                              
                                                              202,979,691Total
      liabilities and shareholders' equity
                                                              
                                                              $
                                                              282,869,428
                                                              
                                                              
                                                              $
                                                              265,784,697
  - 1
-
  FUSHI
COPPERWELD, INC.
 
 CONDENSED
PARENT COMPANY STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
 FOR THE
THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
 (UNAUDITED)
 
 Three months ended June 30,
                            
                            
                            Six months ended June 30,2009
                            
                            
                            2008
                            
                            
                            2009
                            
                            
                            2008OPERATING
      EXPENSESGeneral
      and administrative expenses
                            
                            $
                            1,088,297
                            
                            
                            $
                            1,086,096
                            
                            
                            $
                            2,100,821
                            
                            
                            $
                            2,664,071Total
      operating expenses
                            
                            
                            1,088,297
                            
                            
                            
                            1,086,096
                            
                            
                            
                            2,100,821
                            
                            
                            
                            2,664,071OTHER
      INCOME (EXPENSE)Interest
      and other expense, net
                            
                            
                            (1,430,166
                            )
                            
                            
                            (3,198,123
                            )
                            
                            
                            (2,804,009
                            )
                            
                            
                            (4,517,916
                            )(Loss)
      gain on derivative instrument
                            
                            
                            (215,964
                            )
                            
                            
                            186,022
                            
                            
                            
                            (382,374
                            )
                            
                            
                            355,190Change
      in fair value of derivative liabilities
                            
                            
                            (5,272,685
                            )
                            
                            
                            -
                            
                            
                            
                            (5,874,960
                            )
                            
                            
                            -Total
      other expense, net
                            
                            
                            (6,918,815
                            )
                            
                            
                            (3,012,101
                            )
                            
                            
                            (9,061,343
                            )
                            
                            
                            (4,162,726
                            )EQUITY
      INCOME EARNINGS OF SUBSIDIARIES
                            
                            
                            8,831,633
                            
                            
                            
                            10,989,151
                            
                            
                            
                            13,461,074
                            
                            
                            
                            20,489,244INCOME
      BEFORE INCOME TAXES
                            
                            
                            824,521
                            
                            
                            
                            6,890,954
                            
                            
                            
                            2,298,910
                            
                            
                            
                            13,662,447BENEFIT
      FOR INCOME TAXES
                            
                            
                            (738,179
                            )
                            
                            
                            (389,892
                            )
                            
                            
                            (2,364,707
                            )
                            
                            
                            (1,188,895
                            )NET
      INCOME
                            
                            
                            1,562,700
                            
                            
                            
                            7,280,846
                            
                            
                            
                            4,663,617
                            
                            
                            
                            14,851,342OTHER
      COMPREHENSIVE INCOMEUnrealized
      gain on marketable securities
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            -
                            
                            
                            
                            22,301Foreign
      currency translation adjustment
                            
                            
                            433,866
                            
                            
                            
                            4,308,352
                            
                            
                            
                            39,957
                            
                            
                            
                            12,163,352Change
      in fair value of derivative instrument
                            
                            
                            (751,227
                            )
                            
                            
                            4,377,975
                            
                            
                            
                            (3,513,356
                            )
                            
                            
                            (731,505
                            )COMPREHENSIVE
      INCOME
                            
                            $
                            1,245,339
                            
                            
                            $
                            15,967,173
                            
                            
                            $
                            1,190,218
                            
                            
                            $
                            26,305,490
  - 2
-
  FUSHI
COPPERWELD, INC.
 
 CONDENSED
PARENT COMPANY STATEMENTS OF CASH FLOWS
 FOR THE
SIX MONTHS ENDED JUNE 30, 2009 AND 2008
 (UNAUDITED)
 
 2009
                                  
                                  
                                  2008CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      loss
                                  
                                  $
                                  4,663,617
                                  
                                  
                                  $
                                  14,851,342Adjustments
      to reconcile net lossused
      in operating activities:Equity
      in earnings of subsidiaries
                                  
                                  
                                  (13,461,074
                                  )
                                  
                                  
                                  (20,489,244
                                  )Deferred
      taxes
                                  
                                  
                                  (2,364,707
                                  )
                                  
                                  
                                  (1,188,895
                                  )Amortization
      of loan commission
                                  
                                  
                                  524,995
                                  
                                  
                                  
                                  2,233,401Interest
      penalty
                                  
                                  
                                  -
                                  
                                  
                                  
                                  710,544Amortization
      of stock compensation expense
                                  
                                  
                                  928,727
                                  
                                  
                                  
                                  914,083Loss
      (gain) on derivative instrument
                                  
                                  
                                  382,374
                                  
                                  
                                  
                                  (355,190
                                  )Change
      in fair value of derivative liabilities
                                  
                                  
                                  5,874,960
                                  
                                  
                                  
                                  -Investment
      loss on marketable securities
                                  
                                  
                                  -
                                  
                                  
                                  
                                  16,158Change
      in operating assets and liabilities:Net
      intercompany payables
                                  
                                  
                                  5,255,842
                                  
                                  
                                  
                                  142,125Other
      payables and accrued liabilities
                                  
                                  
                                  (1,866,167
                                  )
                                  
                                  
                                  (1,024,702
                                  )Net
      cash used in operating activities
                                  
                                  
                                  (61,433
                                  )
                                  
                                  
                                  (4,190,378
                                  )CASH
      FLOWS FROM INVESTING ACTIVITIES:Investment
      in subsidiaries
                                  
                                  
                                  (2,630,754
                                  )
                                  
                                  
                                  (100,000
                                  )Proceeds
      from sale of marketable securities
                                  
                                  
                                  -
                                  
                                  
                                  
                                  2,983,842Payments
      on derivative instrument
                                  
                                  
                                  (114,580
                                  )
                                  
                                  
                                  -Proceeds
      from derivative instrument
                                  
                                  
                                  -
                                  
                                  
                                  
                                  738,376Net
      cash (used in) provided by investing activities
                                  
                                  
                                  (2,745,334
                                  )
                                  
                                  
                                  3,622,218CASH
      FLOWS FROM FINANCING ACTIVITIES:Release
      of restricted cash
                                  
                                  
                                  1,000,000
                                  
                                  
                                  
                                  -Proceeds
      on issuance of common stock and warrants
                                  
                                  
                                  1,920,000
                                  
                                  
                                  
                                  -Net
      cash provided by financing activities
                                  
                                  
                                  2,920,000
                                  
                                  
                                  
                                  -INCREASE
      (DECREASE) IN CASH
                                  
                                  
                                  113,233
                                  
                                  
                                  
                                  (568,160
                                  )CASH,
      beginning of period
                                  
                                  
                                  30,414
                                  
                                  
                                  
                                  591,087CASH,
      end of period
                                  
                                  $
                                  143,647
                                  
                                  
                                  $
                                  22,927SUPPLEMENTAL
      CASH FLOWS DISCLOSURE:Interest
      paid
                                  
                                  $
                                  1,852,432
                                  
                                  
                                  $
                                  2,320,031
  - 3
-