x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For
the quarterly period ended September 30, 2010
|
OR
|
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Nevada
|
98-0514768
|
|
(State
or other jurisdiction of incorporation
or
organization)
|
(IRS
Employer Identification
No.)
|
A-1,
10, Street 7
Shenyang
Economic and Technological Development Zone
Shenyang,
China
|
110027
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
+86
(24) 2519-7699
|
(Registrant’s
telephone number, including area
code)
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer ¨
|
Smaller reporting company x
|
(do not check if a smaller
reporting company)
|
Page
|
|||
PART I.
FINANCIAL INFORMATION
|
|||
Item 1.
|
Financial
Statements
|
3
|
|
Item 2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
20
|
|
Item 3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
26
|
|
Item 4.
|
Controls
and Procedures
|
26
|
|
PART
II. OTHER INFORMATION
|
|||
Item 1.
|
Legal
Proceedings
|
27
|
|
Item 1A.
|
Risk
Factors
|
27
|
|
Item 2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
27
|
|
Item 3.
|
Defaults
Upon Senior Securities
|
27
|
|
Item 5.
|
Other
Information
|
27
|
|
Item 6.
|
Exhibits
|
27
|
|
SIGNATURES
|
28
|
September 30, 2010 (Unaudited)
|
December 31, 2009
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
& cash equivalents
|
$ | 14,724,091 | $ | 48,967,992 | ||||
Restricted
cash
|
1,296,318 | 1,301,573 | ||||||
Accounts
receivable, net
|
50,052,608 | 31,887,785 | ||||||
Retentions
receivable
|
2,096,943 | 885,642 | ||||||
Advances
to suppliers
|
12,623,696 | 7,657,791 | ||||||
Other
receivables, prepayments and deposits
|
5,352,081 | 3,572,600 | ||||||
Inventories
|
32,457,863 | 11,259,273 | ||||||
Notes
receivable - bank acceptances
|
944,769 | 397,248 | ||||||
Total
current assets
|
119,548,369 | 105,929,904 | ||||||
NON-CURRENT
ASSETS
|
||||||||
Deferred
tax asset
|
14,837 | - | ||||||
Restricted
cash
|
92,013 | 48,361 | ||||||
Accounts
receivable, net
|
219,725 | 237,384 | ||||||
Retentions
receivable
|
734,238 | 349,931 | ||||||
Deposit
for land use right
|
9,597,390 | - | ||||||
Intangible
assets, net
|
4,127,767 | 4,071,021 | ||||||
Construction
in progress
|
80,254 | - | ||||||
Property
and equipment, net
|
8,044,911 | 7,739,609 | ||||||
Total
noncurrent assets
|
22,911,135 | 12,446,306 | ||||||
TOTAL
ASSETS
|
$ | 142,459,504 | $ | 118,376,210 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable
|
$ | 5,421,730 | $ | 3,493,196 | ||||
Unearned
revenue
|
4,283,004 | 2,130,637 | ||||||
Taxes
payable
|
2,799,694 | 2,140,627 | ||||||
Accrued
liabilities and other payables
|
4,887,566 | 3,685,272 | ||||||
Notes
payable - bank acceptances
|
1,516,865 | 1,806,564 | ||||||
Loans
payable
|
4,476,877 | 4,393,544 | ||||||
Total
current liabilities
|
23,385,736 | 17,649,840 | ||||||
DEFERRED
TAX LIABILITY
|
- | 8,526 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock, $0.001 par value; 75,000,000 shares
authorized, 32,811,125 and 32,794,875 shares issued and
outstanding at September 30, 2010 and December 31, 2009,
respectively
|
32,811 | 32,795 | ||||||
Paid
in capital
|
75,163,813 | 74,917,370 | ||||||
Statutory
reserve
|
4,613,151 | 2,872,006 | ||||||
Accumulated
other comprehensive income
|
2,901,709 | 969,988 | ||||||
Retained
earnings
|
35,673,363 | 21,231,484 | ||||||
Total
Company stockholders' equity
|
118,384,847 | 100,023,643 | ||||||
NONCONTROLLING
INTEREST
|
688,921 | 694,201 | ||||||
TOTAL
EQUITY
|
119,073,768 | 100,717,844 | ||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 142,459,504 | $ | 118,376,210 |
NINE MONTHS ENDED SEPTEMBER 30,
|
THREE MONTHS ENDED SEPTEMBER 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net
sales
|
$ | 83,613,250 | $ | 56,541,795 | $ | 51,476,821 | $ | 37,835,897 | ||||||||
Cost
of goods sold
|
54,177,914 | 36,562,363 | 33,061,854 | 24,687,460 | ||||||||||||
Gross
profit
|
29,435,336 | 19,979,432 | 18,414,968 | 13,148,438 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Selling
expenses
|
5,972,651 | 2,325,471 | 3,335,303 | 1,165,939 | ||||||||||||
General
and administrative expenses
|
4,622,468 | 2,626,775 | 2,061,453 | 1,286,643 | ||||||||||||
Total
operating expenses
|
10,595,119 | 4,952,245 | 5,396,756 | 2,452,582 | ||||||||||||
Income
from operations
|
18,840,217 | 15,027,187 | 13,018,212 | 10,695,856 | ||||||||||||
Non-operating
income (expenses)
|
||||||||||||||||
Interest
income
|
322,462 | 145,839 | 122,898 | 65,418 | ||||||||||||
Interest
expense
|
(41,871 | ) | (209,462 | ) | (46,916 | ) | (91,850 | ) | ||||||||
Financial
expense
|
(36,430 | ) | (222,625 | ) | (17,427 | ) | (222,625 | ) | ||||||||
Exchange
loss
|
24,652 | - | 68,323 | - | ||||||||||||
Other
income
|
135,715 | 21,443 | 51,910 | (14,866 | ) | |||||||||||
Other
expenses
|
(1,269 | ) | 61,644 | 150 | 72,843 | |||||||||||
Total
non-operating income (expenses), net
|
403,259 | (203,161 | ) | 178,938 | (191,080 | ) | ||||||||||
Income
before income tax
|
19,243,476 | 14,824,026 | 13,197,149 | 10,504,776 | ||||||||||||
Income
tax expense
|
3,059,182 | 2,304,672 | 2,092,876 | 1,624,240 | ||||||||||||
Income
from operations
|
16,184,294 | 12,519,354 | 11,104,273 | 8,880,536 | ||||||||||||
Less:
Income attributable to noncontrolling interest
|
16,962 | - | 2,232 | - | ||||||||||||
Income
to SmartHeat Inc.
|
16,201,256 | 12,519,354 | 11,106,505 | 8,880,536 | ||||||||||||
Other
comprehensive item
|
||||||||||||||||
Foreign
currency translation
|
1,931,721 | 270,399 | 1,418,870 | 257,256 | ||||||||||||
Comprehensive
Income
|
$ | 18,132,977 | $ | 12,789,753 | $ | 12,525,375 | $ | 9,137,792 | ||||||||
Basic
weighted average shares outstanding
|
32,804,292 | 24,430,806 | 32,811,125 | 24,924,435 | ||||||||||||
Diluted
weighted average shares outstanding
|
32,846,171 | 24,513,092 | 32,817,520 | 25,010,735 | ||||||||||||
Basic
earnings per share
|
$ | 0.49 | $ | 0.51 | $ | 0.34 | $ | 0.36 | ||||||||
Diluted
earnings per share
|
$ | 0.49 | $ | 0.51 | $ | 0.34 | $ | 0.36 |
NINE MONTHS ENDED SEPTEMBER 30,
|
||||||||
2010
|
2009
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Income
including noncontrolling interest
|
$ | 16,184,294 | $ | 12,519,354 | ||||
Adjustments
to reconcile income including noncontrolling interest to net cash used in
operating activities:
|
||||||||
Depreciation
and amortization
|
709,544 | 409,371 | ||||||
Allowance
for accounts receivable
|
15,744 | - | ||||||
Unearned
interest on accounts receivable
|
(74,520 | ) | 195,901 | |||||
Stock
option compensation expense
|
142,869 | 1,755 | ||||||
Stock
issued for consulting service
|
18,090 | - | ||||||
Changes
in deferred tax
|
(23,160 | ) | (23,357 | ) | ||||
(Increase)
decrease in current assets:
|
||||||||
Accounts
receivable
|
(17,807,291 | ) | (9,305,812 | ) | ||||
Retentions
receivable
|
(1,547,759 | ) | (2,403,726 | ) | ||||
Advances
to suppliers
|
(4,761,889 | ) | (3,051,902 | ) | ||||
Other
receivables, prepayments and deposits
|
1,995,914 | 485,060 | ||||||
Inventory
|
(20,659,166 | ) | (8,277,813 | ) | ||||
Note
receivables
|
(404,449 | ) | (55,986 | ) | ||||
Increase
(decrease) in current liabilities:
|
||||||||
Accounts
payable
|
3,635,847 | 5,782,299 | ||||||
Unearned
revenue
|
2,079,159 | 1,232,371 | ||||||
Taxes
payable
|
608,861 | 818,141 | ||||||
Accrued
liabilities and other payables
|
128,354 | (4,450,011 | ) | |||||
Net
cash used in operating activities
|
(19,759,558 | ) | (6,124,354 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Change
in restricted cash
|
(12,593 | ) | (380,457 | ) | ||||
Acquisition
of property & equipment
|
(3,277,320 | ) | (3,610,566 | ) | ||||
Acquisition
of intangible asset
|
(170,689 | ) | - | |||||
Deposit
for land use right
|
(9,448,356 | ) | - | |||||
Construction
in progress
|
(79,008 | ) | (60,203 | ) | ||||
Net
cash used in investing activities
|
(12,987,966 | ) | (4,051,226 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from short term loan
|
4,407,357 | 12,117,636 | ||||||
Repayment
to short term loan
|
(4,407,357 | ) | (9,216,986 | ) | ||||
Payment
on notes payable
|
(1,812,243 | ) | - | |||||
Issuance
of common stock
|
- | 66,138,390 | ||||||
Warrants
exercised
|
85,500 | - | ||||||
Net
cash provided by (used in) financing activities
|
(1,726,743 | ) | 69,039,040 | |||||
EFFECT
OF EXCHANGE RATE CHANGE ON CASH & CASH EQUIVALENTS
|
230,366 | (3,978 | ) | |||||
NET
INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS
|
(34,243,901 | ) | 58,859,482 | |||||
CASH
& CASH EQUIVALENTS, BEGINNING OF PERIOD
|
48,967,992 | 1,435,213 | ||||||
CASH
& CASH EQUIVALENTS, END OF PERIOD
|
$ | 14,724,091 | $ | 60,294,695 | ||||
Supplemental
Cash flow data:
|
||||||||
Income
tax paid
|
$ | 1,634,509 | $ | 1,272,797 | ||||
Interest
paid
|
$ | 137,787 | $ | 219,061 |
Payment in RMB
|
Payment in USD
|
Scheduled Payment Date
|
||||
RMB
|
3,000,000
|
|
$
|
439,239
|
May
27, 2009
|
|
RMB
|
10,250,000
|
$
|
1,500,732
|
June
30, 2009
|
||
RMB
|
13,000,000
|
$
|
1,903,367
|
September
30, 2009
|
||
RMB
|
12,300,000
|
$
|
1,800,878
|
March
1, 2010
|
||
RMB
|
8,200,000
|
$
|
1,200,586
|
September
30, 2010
|
Building
|
20
years
|
Vehicles
|
5
years
|
Office
Equipment
|
5
years
|
Production
Equipment
|
5-10
years
|
2010
|
2009
|
|||||||
Beginning
balance
|
$
|
675,562
|
$
|
-
|
||||
Provisions
made
|
25,297
|
675,562
|
||||||
Actual
costs incurred
|
-
|
-
|
||||||
Ending
balance in current liabilities
|
$
|
700,859
|
$
|
675,562
|
|
Nine Months
Ended September 30,
(Unaudited)
|
Three Months
Ended September 30,
(Unaudited)
|
||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net
income
|
$
|
16,201,256
|
$
|
12,519,354
|
$
|
11,106,505
|
$
|
8,880,536
|
||||||||
Weighted
average shares outstanding - basic
|
32,804,292
|
24,430,806
|
32,811,125
|
24,924,435
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Unexercised
warrants and options
|
41,879
|
82,286
|
6,395
|
86,300
|
||||||||||||
Weighted
average shares outstanding - diluted
|
32,846,171
|
24,513,092
|
32,817,520
|
25,010,735
|
||||||||||||
Earnings
per share - basic
|
$
|
0.49
|
$
|
0.51
|
$
|
0.34
|
$
|
0.36
|
||||||||
Earnings
per share - diluted
|
$
|
0.49
|
$
|
0.51
|
$
|
0.34
|
$
|
0.36
|
§
|
Level
1 inputs to the valuation methodology are quoted prices for identical
assets or liabilities in active
markets.
|
§
|
Level
2 inputs to the valuation methodology include quoted prices for similar
assets and liabilities in active markets, and inputs that are observable
for the asset or liability, either directly or indirectly, for
substantially the full term of the financial
instrument.
|
§
|
Level
3 inputs to the valuation methodology are unobservable and significant to
the fair value measurement.
|
2010
|
2009
|
|||||||
Raw
materials
|
$
|
16,023,547
|
$
|
8,627,624
|
||||
Work
in process
|
3,801,792
|
1,001,495
|
||||||
Finished
goods
|
12,632,524
|
1,630,154
|
||||||
Total
|
$
|
32,457,863
|
$
|
11,259,273
|
2010
|
2009
|
|||||||
Building
|
$
|
4,503,137
|
$
|
4,419,315
|
||||
Production
equipment
|
3,501,841
|
2,979,017
|
||||||
Office
equipment
|
625,212
|
545,789
|
||||||
Vehicles
|
801,269
|
594,168
|
||||||
Total
|
9,431,459
|
8,538,289
|
||||||
Less:
Accumulated depreciation
|
(1,386,548
|
)
|
(798,680
|
)
|
||||
Net
|
$
|
8,044,911
|
$
|
7,739,609
|
2010
|
2009
|
|||||||
Cash
advance to third parties
|
$
|
1,737,327
|
$
|
1,332,787
|
||||
Deposit
for public bids of sales contracts
|
1,275,501
|
1,148,526
|
||||||
Prepayment
for freight and related insurance expenses
|
57,923
|
74,412
|
||||||
Deposits
|
374,296
|
8,523
|
||||||
Advance
to employees
|
896,809
|
432,144
|
||||||
Others
|
1,010,225
|
-
|
||||||
Due
from officer
|
-
|
576,208
|
||||||
Total
|
$
|
5,352,081
|
3,572,600
|
2010
|
2009
|
|||||||
Land
use rights
|
$
|
3,697,033
|
$
|
3,628,216
|
||||
Know-how
technology
|
272,123
|
267,058
|
||||||
Customer
list
|
195,470
|
191,832
|
||||||
Covenant
not to compete
|
106,335
|
104,356
|
||||||
Software
|
373,320
|
196,218
|
||||||
Total
|
4,644,281
|
4,387,680
|
||||||
Less:
Accumulated amortization
|
(516,514
|
)
|
(316,659
|
)
|
||||
Net
|
$
|
4,127,767
|
$
|
4,071,021
|
2010
|
2009
|
|||||||
Income
tax
|
$
|
2,354,163
|
$
|
1,202,058
|
||||
Value
added tax
|
425,357
|
878,638
|
||||||
Other
taxes
|
20,174
|
59,931
|
||||||
$
|
2,799,694
|
$
|
2,140,627
|
2010
|
2009
|
|||||||
Advance
from third parties
|
$
|
-
|
$
|
258,759
|
||||
Payable
to Siping (see Note 1)
|
1,223,680
|
2,080,013
|
||||||
Other
payables
|
1,022,993
|
91,329
|
||||||
Warranty
reserve
|
700,859
|
675,562
|
||||||
Accrued
liabilities
|
1,940,034
|
579,609
|
||||||
Total
|
$
|
4,887,566
|
$
|
3,685,272
|
2010
|
2009
|
|||||||
From
a commercial bank in the PRC for RMB 30,000,000, of which RMB 17,000,000
was entered into on April 22, 2009, and was due on April 22, 2010, and RMB
13,000,000 was entered into on June 12, 2009, and was due on June 12,
2010. These loans had an interest rate of 5.576%. The Company pledged its
building in the value of approximately RMB 12,430,950 or approximately
$1,818,000 for these loans. The Company paid the loans in full when they
matured.
|
$
|
-
|
$
|
4,393,544
|
||||
From
a commercial bank in the PRC for RMB 17,000,000 entered into on July 1,
2010. The loan currently bears interest at 5.31% with maturity on June 30,
2011. The Company pledged its building and land use rights for this
loan.
|
2,536,897
|
-
|
||||||
From
a commercial bank in the PRC for RMB 13,000,000 entered into on August 9,
2010. The loan currently bears interest at 5.31% with maturity on June 30,
2011. The Company pledged its building and land use rights for this
loan,.
|
1,939,980
|
-
|
||||||
$
|
4,476,877
|
$
|
4,393,544
|
|
Nine Months
Ended September 30,
|
Three Months
Ended September 30,
|
||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
US
statutory rates
|
34.0
|
%
|
34.0
|
%
|
34.0
|
%
|
34.0
|
%
|
||||||||
Tax
rate difference
|
(9.4
|
)%
|
(14.0
|
)%
|
(9.2
|
)%
|
(14.0
|
)%
|
||||||||
Effect
of tax holiday
|
(10.7
|
)%
|
(5.0
|
)%
|
(10.2
|
)%
|
(5.0
|
)%
|
||||||||
Others
|
0.3
|
%
|
(0.5
|
)%
|
0.2
|
%
|
-
|
|||||||||
Valuation
allowance
|
1.7
|
%
|
1.0
|
%
|
1.1
|
%
|
0.4
|
%
|
||||||||
Tax
per financial statements
|
15.9
|
%
|
15.5
|
%
|
15.9
|
%
|
15.4
|
%
|
|
|
Number of
Shares
|
|
|
Average
Exercise
Price per Share
|
|
|
Weighted
Average
Remaining
Contractual
Term in Years
|
|
|||
Outstanding
at December 31, 2008
|
393,000
|
6.00
|
2.51
|
|||||||||
Exercisable
at December 31, 2008
|
393,000
|
6.00
|
2.51
|
|||||||||
Granted
|
||||||||||||
Exercised
|
(281,975
|
)
|
||||||||||
Forfeited
|
||||||||||||
Outstanding
at December 31, 2009
|
111,025
|
6.00
|
1.51
|
|||||||||
Exercisable
at December 31, 2009
|
111,025
|
6.00
|
1.51
|
|||||||||
Granted
|
||||||||||||
Exercised
|
(14,250
|
)
|
||||||||||
Forfeited
|
||||||||||||
Outstanding
at June 30, 2010
|
96,775
|
6.00
|
1.01
|
|||||||||
Exercisable
at June 30, 2010
|
96,775
|
6.00
|
1.01
|
|||||||||
Granted
|
||||||||||||
Exercised
|
||||||||||||
Forfeited
|
||||||||||||
Outstanding
at September 30, 2010
|
96,775
|
6.00
|
0.76
|
|||||||||
Exercisable
at September 30, 2010
|
96,775
|
6.00
|
0.76
|
|
|
Number of
Shares
|
|
|
Average
Exercise
Price per Share
|
|
|
Weighted
Average
Remaining
Contractual
Term in Years
|
|
|||
Outstanding
at December 31, 2008
|
20,000
|
$
|
4.60
|
4.54
|
||||||||
Exercisable
at December 31, 2008
|
-
|
-
|
-
|
|||||||||
Granted
|
||||||||||||
Exercised
|
||||||||||||
Forfeited
|
6,667
|
|||||||||||
Outstanding
at December 31, 2009
|
13,333
|
$
|
4.60
|
3.54
|
||||||||
Exercisable
at December 31, 2009
|
6,666
|
$
|
4.60
|
3.54
|
||||||||
Granted
|
50,000
|
$
|
11.85
|
5.00
|
||||||||
Exercised
|
||||||||||||
Forfeited
|
||||||||||||
Outstanding
at June 30, 2010
|
63,333
|
$
|
10.32
|
4.26
|
||||||||
Exercisable
at June 30, 2010
|
6,666
|
$
|
10.32
|
4.26
|
||||||||
Granted
|
||||||||||||
Exercised
|
||||||||||||
Forfeited
|
||||||||||||
Outstanding
at September 30, 2010
|
63,333
|
$
|
10.32
|
4.01
|
||||||||
Exercisable
at September 30, 2010
|
9,999
|
$
|
10.32
|
4.01
|
Building
|
20
years
|
Vehicles
|
5
years
|
Office
Equipment
|
5
years
|
Production
Equipment
|
5 -
10 years
|
|
|
2010
|
|
|
2009
|
|
||||||||||
|
|
$
|
|
|
% of Sales
|
|
|
$
|
|
|
% of Sales
|
|
||||
Sales
|
83,613,250
|
56,541,795
|
||||||||||||||
Cost
of sales
|
54,177,914
|
64.8
|
%
|
36,562,363
|
64.7
|
%
|
||||||||||
Gross
profit
|
29,435,336
|
35.2
|
%
|
19,979,432
|
35.3
|
%
|
||||||||||
Operating
expenses
|
10,595,119
|
12.7
|
%
|
4,952,245
|
8.8
|
%
|
||||||||||
Income
from operations
|
18,840,217
|
22.5
|
%
|
15,027,187
|
26.6
|
%
|
||||||||||
Other
income (expenses), net
|
403,259
|
0.5
|
%
|
(203,161
|
)
|
(0.4
|
)%
|
|||||||||
Income
tax expense
|
3,059,182
|
3.6
|
%
|
2,304,672
|
4.1
|
%
|
||||||||||
Noncontrolling
interest
|
16,962
|
0
|
%
|
-
|
0
|
%
|
||||||||||
Net
income to SmartHeat Inc.
|
16,201,256
|
19.4
|
%
|
12,519,354
|
22.1
|
%
|
|
|
2010
|
|
|
2009
|
|
||||||||||
|
|
$
|
|
|
% of Sales
|
|
|
$
|
|
|
% of Sales
|
|
||||
Sales
|
51,476,821
|
37,835,897
|
||||||||||||||
Cost
of sales
|
33,061,854
|
64.2
|
%
|
24,687,460
|
65.2
|
%
|
||||||||||
Gross
profit
|
18,414,968
|
35.8
|
%
|
13,148,438
|
34.8
|
%
|
||||||||||
Operating
expenses
|
5,396,756
|
10.5
|
%
|
2,452,582
|
6.5
|
%
|
||||||||||
Income
from operations
|
13,018,212
|
25.3
|
%
|
10,695,856
|
28.3
|
%
|
||||||||||
Other
income (expenses), net
|
178,938
|
0.3
|
%
|
(191,080)
|
(0.5)
|
%
|
||||||||||
Income
tax expense
|
2,092,876
|
4.0
|
%
|
1,624,240
|
4.3
|
%
|
||||||||||
Noncontrolling
interest
|
2,232
|
0
|
%
|
-
|
0
|
%
|
||||||||||
Net
income to SmartHeat Inc.
|
11,106,505
|
21.6
|
%
|
8,880,536
|
23.5
|
%
|
|
|
2010
|
|
|
2009
|
|
||
Cash
provided by (used in):
|
||||||||
Operating
activities
|
$
|
(19,759,558
|
)
|
$
|
(6,124,354
|
)
|
||
Investing
activities
|
(12,987,966
|
)
|
(4,051,226
|
)
|
||||
Financing
activities
|
(1,726,743
|
)
|
69,039,040
|
|
|
2010
|
|
|
2009
|
|
||
Loans
from a commercial bank in the PRC for RMB 30,000,000, of which RMB
17,000,000 was entered into on April 22, 2009, and was due on April 22,
2010, and RMB 13,000,000 was entered into on June 12, 2009, and was due on
June 12, 2010. These loans had an interest rate of 5.576%. The Company
pledged its building in the value of approximately RMB 12,430,950 or
approximately $1,818,000 for these loans. The Company paid the loans in
full when they matured.
|
$
|
-
|
$
|
4,393,544
|
||||
Loan
from a commercial bank in the PRC for RMB 17,000,000 entered into on July
1, 2010. The loan currently bears interest at 5.31% with maturity on June
30, 2011. The Company pledged its building and land use rights for this
loan.
|
2,536,897
|
|
||||||
Loan
from a commercial bank in the PRC for RMB 13,000,000 entered into on
August 9, 2010. The loan currently bears interest at 5.31% with maturity
on June 30, 2011. The Company pledged its building and land use rights for
this loan.
|
1,939,980
|
|
||||||
$
|
4,476,877
|
$
|
4,393,544
|
Exhibit No.
|
Document
Description
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and
15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and
15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, as signed by the Chief Executive
Officer
|
|
32.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, as signed by the Chief Financial
Officer
|
SMARTHEAT
INC.
|
||
(Registrant)
|
||
Date:
November 10, 2010
|
By:
|
/s/
Jun Wang
|
Jun
Wang
|
||
Chief
Executive Officer
|
||
(Principal
Executive Officer)
|