10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q
(Mark One)
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended: September 30, 2012
[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to______________

Commission File Number:001-34812

THT HEAT TRANSFER TECHNOLOGY, INC.
(Exact Name of Registrant as Specified in Its Charter)

Nevada	20-5463509
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

THT Industrial Park
No. 5 Nanhuan Road, Tiexi District
Siping, Jilin Province 136000
People’s Republic of China
(Address of principal executive offices, Zip Code)

86-434-3265241
(Registrant’s telephone number, including area code)

_____________________________________________________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X]                                                      No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]                                                     No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ]  (Do not check if a smaller reporting company)	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ]                                                        No [X]

The number of shares outstanding of each of the issuer’s classes of common stock, as of November 13, 2012 is as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	20,453,500

THT HEAT TRANSFER TECHNOLOGY, INC.
Quarterly Report on Form 10-Q
Period Ended September 30, 2012
TABLE OF CONTENTS
PART I
FINANCIAL INFORMATION
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures.	30
PART II
OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors.	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	31
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures.	32
Item 5.	Other Information.	32
Item 6.	Exhibits	32

i

PART I 
FINANCIAL INFORMATION 

ITEM 1. FINANCIAL STATEMENTS.

THT Heat Transfer Technology, Inc.
Condensed Consolidated Financial Statements
For the three and nine months ended September 30, 2012 and 2011

Index to Condensed Consolidated Financial Statements

	Pages
Condensed Consolidated Statements of Income and Comprehensive Income	1
Condensed Consolidated Balance Sheets	2 - 3
Condensed Consolidated Statements of Cash Flows	4 - 5
Notes to Condensed Consolidated Financial Statements	6 - 22

THT Heat Transfer Technology, Inc.

Condensed Consolidated Financial Statements
For the three and nine months ended
September 30, 2012 and 2011
(Stated in US dollars)

THT Heat Transfer Technology, Inc.
Condensed Consolidated Statements of Income and Comprehensive Income
For the three and nine months ended September 30, 2012 and 2011
(Stated in US Dollars)

		Three months ended						Nine months ended
		September 30,						September 30,
		(unaudited)						(unaudited)
		2012			2011			2012			2011
Sales revenue	$	12,508,183		$	10,309,768		$	35,152,955		$	38,542,434
Cost of sales		(7,325,961	)		(5,799,160	)		(20,549,861	)		(21,911,721	)
Gross profit		5,182,222			4,510,608			14,603,094			16,630,713
Operating expenses
Administrative expenses		2,382,820			1,645,904			4,423,011			3,386,046
Research and development expenses		315,229			365,037			814,509			1,149,699
Selling expenses		1,637,436			2,300,748			5,845,212			5,524,796
		4,335,485			4,311,689			11,082,732			10,060,541
Income from operations		846,737			198,919			3,520,362			6,570,172
Interest income		7,055			10,568			19,796			34,484
Other income - Note 15		282,791			62,275			649,987			914,962
Finance costs - Note 16		(474,587	)		(360,702	)		(1,377,799	)		(762,688	)
Income/(loss) before income taxes and noncontrolling interests		661,996			(88,940	)		2,812,346			6,756,930
Income taxes - Note 8		(123,732	)		(89,283	)		(234,630	)		(1,006,821	)
Net income/(loss) before noncontrolling interests		538,264			(178,223	)		2,577,716			5,750,109
Net (income)/loss attributable to noncontrolling interests		(34,270	)		300,336			(76,833	)		341,986
Net income attributable to THT Heat Transfer Technology, Inc. common stockholders	$	503,994		$	122,113		$	2,500,883		$	6,092,095
Net income /(loss) before noncontrolling interests	$	538,264		$	(178,223	)	$	2,577,716		$	5,750,109
Other comprehensive (loss)/income
Foreign currency translation adjustments		(108,319	)		466,534			278,253			1,451,520
Comprehensive income		429,945			288,311			2,855,969			7,201,629
Comprehensive (income)/loss attributable to noncontrolling interests		(35,274	)		306,588			(73,967	)		350,011
Comprehensive income attributable to THT Heat Transfer Technology, Inc. common stockholders	$	394,671		$	594,899		$	2,782,002		$	7,551,640
Earnings per share attributable to THT Heat Transfer Technology, Inc. common stockholders - Note 17
- Basic and diluted	$	0.02		$	0.01		$	0.12		$	0.30
Weighted average number of shares outstanding
- Basic and diluted		20,453,500			20,453,500			20,453,500			20,453,500

See the accompanying notes to condensed consolidated financial statements.

- 1 -

THT Heat Transfer Technology, Inc.
Condensed Consolidated Balance Sheets
As of September 30, 2012 and December 31, 2011
(Stated in US Dollars)

		September 30,		December 31,
		2012		2011
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	7,233,578	$	7,340,068
Restricted cash - Note 4		1,653,405		1,725,546
Trade receivables, net - Note 5		34,089,342		33,573,223
Counter guarantee receivable - Note 12		236,850		235,676
Bills receivable		1,742,940		1,415,890
Other receivables, prepayments and deposits, net - Note 6		15,928,972		7,859,563
Inventories, net - Note 7		38,357,642		32,531,053
Deferred tax assets		259,375		251,561
Total current assets		99,502,104		84,932,580
Retention receivable		735,356		1,184,382
Counter guarantee receivable - Note 13		236,850		235,676
Property, plant and equipment, net - Note 9		7,652,036		7,703,607
Deposit for acquisition of property, plant and equipment		-		345,658
Land use rights - Note 10		6,129,099		1,019,045
Deposits for land use rights – Note 10		-		4,389,330
TOTAL ASSETS	$	114,255,445	$	99,810,278

See the accompanying notes to condensed consolidated financial statements.

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THT Heat Transfer Technology, Inc.
Condensed Consolidated Balance Sheets (Cont’d)
As of September 30, 2012 and December 31, 2011
(Stated in US Dollars)

		September 30,			December 31,
		2012			2011
		(Unaudited)
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities
Trade payables	$	7,141,219		$	6,619,676
Other payables and accrued expenses - Note 11		22,714,109			15,853,810
Income tax payable		265,867			1,389,140
Short-term bank loans - Note 12		22,437,590			16,183,051
Current maturities of long-term loan - Note 13		1,894,800			1,885,404
Total current liabilities		54,453,585			41,931,081
Long-term loan - Note 13		1,894,800			2,828,106
TOTAL LIABILITIES		56,348,385			44,759,187
COMMITMENTS AND CONTINGENCIES - Note 20
STOCKHOLDERS’ EQUITY
Preferred stock : par value of $0.001 per share Authorized 10,000,000 shares; none issued and outstanding
Common stock : par value $0.001 per share - Note 14 Authorized 190,000,000 shares; issued and outstanding 20,453,500 shares as of September 30, 2012 and December 31, 2011		20,454			20,454
Additional paid-in capital		27,396,455			27,396,455
Statutory reserve		3,204,265			2,979,827
Accumulated other comprehensive income		4,002,996			3,721,877
Retained earnings		23,774,288			21,497,843
Total THT Heat Transfer Technology, Inc. stockholders’ equity		58,398,458			55,616,456
Non-controlling interests		(491,398	)		(565,365	)
TOTAL EQUITY		57,907,060			55,051,091
TOTAL LIABILITIES AND EQUITY	$	114,255,445		$	99,810,278

See the accompanying notes to condensed consolidated financial statements

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THT Heat Transfer Technology, Inc.
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2012 and 2011
(Stated in US Dollars)

		Nine months ended September 30,
		2012			2011
		(unaudited)			(unaudited)
Cash flows from operating activities
Net income before noncontrolling interest	$	2,577,716		$	5,750,109
Adjustments to reconcile net income before noncontrolling interests to net cash used in operating activities:
Depreciation and amortization		864,702			700,559
Deferred taxes		(6,564	)		(36,313	)
Provision for (reversal of) doubtful debts of trade receivables		1,472,714			(107,156	)
Reversal of doubtful debts of other receivables, prepayment and deposits		(8,657	)		-
Changes in operating assets and liabilities:
Trade receivables		(1,821,741	)		(5,569,580	)
Bills receivable		(320,195	)		(441,918	)
Other receivables, prepayments and deposits		(7,903,709	)		(8,086,432	)
Inventories		(5,668,056	)		(8,247,187	)
Retention receivable		455,217			107,951
Counter guarantee receivable		-			(15,370	)
Trade payables		488,863			331,533
Other payables and accrued expenses		6,662,467			2,021,271
Income tax payable		(1,130,912	)		(570,290	)
Net cash flows used in operating activities		(4,338,155	)		(14,162,823	)

See the accompanying notes to condensed consolidated financial statements

- 4 -

THT Heat Transfer Technology, Inc.
Condensed Consolidated Statements of Cash Flows (Cont’d)
For the nine months ended September 30, 2012 and 2011
(Stated in US Dollars)

		Nine months ended September 30,
		2012			2011
		(unaudited)			(unaudited)
Cash flows from investing activities
Prepayment for land use rights		-			(4,274,681	)
Payment for land use rights		(736,801	)		-
Deposit for acquisition of property, plant and equipment		-			(535,183	)
Payments to acquire property, plant and equipment		(384,492	)		(777,035	)
Net cash flows used in investing activities		(1,121,293	)		(5,586,899	)
Cash flows from financing activities
Proceeds from bank loans		17,237,800			22,142,022
Repayment of bank loans		(11,060,000	)		(14,764,422	)
Repayment of long-term loan		(948,000	)		(1,690,700	)
Decrease/(increase) in restricted cash		80,792			(1,325,172	)
Net cash flows provided for financing activities		5,310,592			4,361,728
Effect of foreign currency translation on cash and cash equivalents		42,366			253,961
Net decrease in cash and cash equivalents		(106,490	)		(15,134,033	)
Cash and cash equivalents - beginning of period		7,340,068			18,438,430
Cash and cash equivalents - end of period	$	7,233,578		$	3,304,397
Supplemental disclosures for cash flow information:
Cash paid for:
Interest	$	1,365,126		$	643,909
Income taxes	$	1,380,855		$	1,630,578

See the accompanying notes to condensed consolidated financial statements.

- 5 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

1.	Corporate information
	THT Heat Transfer Technology, Inc. (the “Company” or “THT” or the “Surviving Corporation”) is the surviving corporation pursuant to the Reincorporation Merger as detailed below. The Company’s shares are quoted for trading on the Nasdaq Global Market in the United States.

Reincorporation Merger

On November 24, 2009, BTHC VIII, Inc. ("BTHC") entered into an Agreement and Plan of Merger (the "Merger Agreement") with THT, a Nevada corporation and wholly-owned subsidiary of BTHC. Pursuant to the Merger Agreement, BTHC agreed to merge with and into THT, with THT continuing as the surviving entity (the "Reincorporation Merger"). The Reincorporation Merger became effective on November 30, 2009 (the "Effective Time").

As a result of the Reincorporation Merger, the legal domicile of the Surviving Corporation is Nevada. The Merger Agreement and Reincorporation Merger were duly approved by the written consent of stockholders of BTHC owning at least a majority of the outstanding shares of BTHC's common stock, dated September 16, 2009.

Pursuant to the terms of the Merger Agreement, (i) BTHC merged into THT, with THT being the surviving corporation, and BTHC thereby changed its name to THT Heat Transfer Technology, Inc.; (ii) from and after the Effective Time, THT possesses all of the rights, privileges, powers, and franchises of BTHC, and BTHC's debts and liabilities became the debts and liabilities of THT; (iii) BTHC's existing Board of Directors and officers became the Board of Directors and officers of the Surviving Corporation; and (iv) the Articles of Incorporation and By-laws of THT now govern the Surviving Corporation.

The Reincorporation Merger did not result in any change in headquarters, business, jobs, management, location of any of offices or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Reincorporation Merger, which are immaterial). Management, including all directors and officers, remain the same in connection with the Reincorporation Merger. There were no substantive changes in the employment agreements for executive officers or in other direct or indirect interests of the current directors or executive officers as a result of the Reincorporation Merger.

As a result of the Reincorporation Merger, each outstanding share of BTHC's common stock, par value $0.001 per share, was automatically converted into one share of THT's common stock, par value $0.001 per share. Each outstanding certificate representing shares of BTHC's common stock is deemed, without any action by BTHC's stockholders, to represent the same number of shares of THT's common stock.

Reorganization

Before the Reincorporation Merger and on June 30, 2009, BTHC entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Megaway International Holdings Limited, a British Virgin Islands corporation ("Megaway"), and its sole shareholder, Wisetop International Holdings Limited, a British Virgin Islands corporation ("Wisetop"). Pursuant to the Share Exchange Agreement, Megaway became a wholly-owned subsidiary of the Company and Wisetop was issued 14,800,000 shares of the Company's common stock, which, after giving effect to the Cancellation Agreement disclosed below, constituted 92.5% of the Company’s issued and outstanding capital stock on a fully-diluted basis as of and immediately after the consummation of the transactions contemplated by the Share Exchange Agreement, in exchange for 100% of the issued and outstanding shares of Megaway.

- 6 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

1.

Corporate information (Cont’d)

Megaway was dormant since its incorporation until it acquired 100% of the outstanding capital stock of Star Wealth International Holdings Limited ("Star Wealth"), a Hong Kong corporation on May 5, 2009. Star Wealth was also dormant since its incorporation until it acquired 100% of the equity interest of Siping City Juyuan Hanyang Plate Heat Exchanger Co., Ltd. (“Siping Juyuan”), a PRC corporation, on May 10, 2009.

On May 10, 2009, Star Wealth entered into an equity transfer agreement with all of the shareholders of Siping Juyuan to acquire their entire interests in Siping Juyuan at a total cash consideration of RMB60,000,000 ($8,795,075). The equity transfer agreement was approved by the local government of the People’s Republic of China (the “PRC”) on May 31, 2009.

Siping Juyuan has a 75% directly owned subsidiary, Beijing Juyuan Hanyang Heat Exchange Equipment Co. Ltd (“Beijing Juyuan”).

As a condition precedent to the consummation of the Share Exchange Agreement, on June 30, 2009, the Company entered into a cancellation agreement, or the Cancellation Agreement, with Mr. Gerald Pascale, who was the major stockholder of the Company immediately before the Share Exchange Agreement and served as the Company’s sole director and officer from February 12, 2009 until June 30, 2009 when he was replaced by Guohong Zhao (“Mr. Zhao”), a founder of Siping Juyuan, whereby Mr. Pascale agreed to the cancellation of 4,805,387 shares of the Company’s common stock owned by him.

Mr. Zhao was appointed as the Company’s director and chief executive officer effective upon the closing of the above reverse acquisition. In addition, the Company’s executive officers were replaced by the executive officers of Siping Juyuan upon the closing of the reverse acquisition.

On June 30, 2009, Mr. Zhao entered into an option agreement with Ms. Jinghua Zhao, the sole shareholder of Wisetop, pursuant to which Mr. Zhao was granted an option, exercisable after 180 days, to acquire all of the equity interests of Wisetop owned by Ms. Jinghua Zhao at an exercise price of $3,246,160. This option expires on June 30, 2011. On May 16, 2011, an amendment was signed by both parties extending the exercise period until June 30, 2012. Mr. Zhao exercised these options in 2012.

Also on June 30, 2009, Wisetop entered into separate option agreements with the other original stockholders of Siping Juyuan, pursuant to which such stockholders were granted options, exercisable after 90 days, to purchase an aggregate of 10,240,786 shares of the Company’s common stock owned by Wisetop at total exercise price of $7,291,440. The stockholders exercised these options on December 17, 2010.

On November 30, 2010, Juyuan Heat Equipment (Tianjin) Co., Ltd. (“Tianjin Juyuan”) was established in the PRC, of which Siping Juyuan and Mr. Zhao contributed $1,467,555 and $37,630 respectively to its registered capital, representing 99.5% and 0.5% equity interest in Tianjin Juyuan respectively. On September 22, 2011, Tianjin Juyuan was formally dissolved with the approval of the Tianjin Industrial and Commercial Administrative Bureau Baodi Branch.

2.	Description of business
	The Company is a holding company whose primary business are conducted through its subsidiaries, namely Siping Juyuan which is located in the Jilin Province and Beijing Juyuan which is located in Beijing City of the PRC. The Company is engaged in the manufacturing and trading of plate heat exchangers and various related products.

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THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

2.	Description of business (Cont’d)
	Siping Juyuan was established in the PRC on May 31, 2006 following the division (the “Division”) of Siping City Juyuan Heat Exchange Equipment Co., Ltd. (“Old Juyuan Company”) into three companies, namely Siping Juyuan, Siping City Juyuan Heat Exchange Equipment Co., Ltd. (“New Juyuan Company”) and Siping City Juyuan Hanyang Pressure Vessels Co., Ltd (“Juyuan Hanyang Pressure Vessels”)
3.	Summary of significant accounting policies
	Basis of presentation and consolidation

The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements and accompanying notes thereto for the year ended December 31, 2011 filed with the SEC in the Company’s Form 10-K on March 30, 2012.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three-month and nine-month periods have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year.

The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions have been eliminated on consolidation.

Concentration of credit risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, restricted cash, trade receivables and other receivables. As of September 30, 2012 and December 31, 2011, substantially all of the Company’s cash and cash equivalents and restricted cash were held by major financial institutions located in the PRC, which management believes are of high credit quality. With respect to trade receivables, the Company extends credit based on an evaluation of the customer’s financial condition. The Company generally does not require collateral for trade receivables and maintains an allowance for doubtful accounts of trade and other receivables.

- 8 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

3.	Summary of significant accounting policies (Cont’d)
	Concentration of credit risk (cont’d)
	During the three-month and nine-month periods ended September 30, 2012 and 2011, the Company did not have any customers which represented 10% or more of the Company’s condensed consolidated sales revenue.

As of September 30, 2012 and December 31, 2011, the Company did not have any balance of gross trade receivable due from individual customer that represented 10% or more of the Company’s gross trade receivables.

Fair value of financial instruments

Accounting Standards Codification (“ASC”) Topic 820 requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which fair value option was not elected. Except for long-term loan disclosed as below, the carrying amounts of other financial assets and liabilities approximated their fair values due to short maturities or the applicable interest rates approximated the current market rates:

		As of				As of
		September 30, 2012				December 31, 2011
		Carrying		Fair value		Carrying		Fair value
		amount				amount
Long terms loans	$	3,789,600	$	3,841,954	$	4,713,510	$	4,755,538

Noncontrolling interests

Noncontrolling interest on the condensed consolidated balance sheets is resulted from the consolidation of 75% owned subsidiary, Beijing Juyuan.

The schedule below illustrates the movements in the noncontrolling interests:

		Nine months ended September 30,
		(Unaudited)
		2012			2011
Balance at beginning of period	$	(565,365	)	$	(61,891	)
Net income/(loss) attributable to non-controlling interests		76,833			(341,986	)
Dissolution of a subsidiary		-			(38,336	)
Foreign currency translation adjustments		(2,866	)		(8,025	)
Balance at end of period	$	(491,398	)	$	(450,238	)

- 9 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

3.	Summary of significant accounting policies (Cont’d)
	Recently issued accounting pronouncements
	In April 2011, the FASB issued ASU 2011-03, “Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements”. The amendments in this ASU remove from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion. The guidance in this ASU is effective for the first interim or annual period beginning on or after December 15, 2011. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Early adoption is not permitted. The adoption of ASU 2011-03 has no material impact on the Company’s condensed consolidated financial statements.

In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. The FASB and the International Accounting Standard Board (IASB) works together to ensure that fair value has the same meaning in U.S. GAAP and IFRSs and that their respective fair value measurement and disclosure requirements are the same (except for minor differences in wording and style). The Boards concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The amendments in this ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted. The adoption of ASU 2011-04 has no material impact on the Company’s condensed consolidated financial statements.

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”. In this ASU, the entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This Update eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments in this ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. In December 2011, ASU 2011-12 “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” was issued. The amendments in this Update supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to re-deliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. The amendments in this ASU are to be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early application by public entities is permitted. The adoption of ASU 2011-05 has no material impact on the Company’s condensed consolidated financial statements.

- 10 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

3.	Summary of significant accounting policies (Cont’d)
	Recently issued accounting pronouncements
	In September 2011, the FASB issued ASU 2011-08, “Intangibles - Goodwill and Other (Topic 350)”. The amendments in this update will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment. The amendments in this ASU are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The adoption of this ASU has no material impact on the Company’s condensed consolidated financial statements

In September 2011, the FASB issued ASU 2011-09, “Compensation - Retirement Benefits - Multiemployer Plans (Subtopic 715 –80)”. The amendments in this update require additional disclosures about an employer's participation in a multiemployer plan. ASU 2011-09 is effective for annual periods for fiscal years ending after December 15, 2011, and early adoption is permitted. ASU 2011-09 should be applied retrospectively for all prior periods presented. The adoption of this ASU has no material impact on the Company’s condensed consolidated financial statements.

In December 2011, the FASB issued ASU 2011-11, “Balance Sheet (Topic 210)”. The objective of this ASU is to provide enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. This includes the effect or potential effect of rights of setoff associated with an entity’s recognized assets and recognized liabilities within the scope of this Update. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. An entity is required to apply the amendments retrospectively for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The management is assessing the impact of this ASU on the Company’s condensed consolidated financial statements.

In July 2012, the FASB issued ASU 2012-02 on impairment testing for indefinite-lived intangible assets. This ASU amends FASB Codification Topic 350, Intangibles-Goodwill and Other to allow, but not require, an entity, when performing its annual or more frequent indefinite-lived intangible asset impairment test, to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. ASU2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The management is assessing the impact of this ASU on the Company’s condensed consolidated financial statements.

Other recently issued ASUs were assessed and determined to be either not applicable or are expected to have a minimal impact on the Company’s condensed consolidated balance sheet and condensed consolidated statements of income and comprehensive income .

- 11 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

4. Restricted cash

		September 30,		December 31,
		2012		2011
		(Unaudited)
Bank deposits held as collateral for performance bonds issued by the banks to customers	$	1,653,405	$	1,725,546

	When the Company’s customers request to receive performance bonds issued by the banks in relation to the Company’s performance under the sales contracts, the Company has to place deposits with banks equal to 100% of the bonds amount at the time of issuance.
5.	Trade receivables, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Trade receivables	$	37,598,034		$	35,600,032
Less : Allowance for doubtful accounts		(3,508,692	)		(2,026,809	)
	$	34,089,342		$	33,573,223

As of September 30, 2012 and December 31, 2011, the Company’s trade receivables of $9,474,000 and $5,421,295, respectively, were pledged as collateral under certain loan and guarantee arrangements (Note 12).

An analysis of the allowance for doubtful accounts for the nine months ended September 30, 2012 and 2011 is as follows :-

		Nine months ended,
		September 30
		(Unaudited)
		2012		2011
Balance at beginning of period	$	2,026,809	$	1,353,375
Addition/(reversal) of doubt debt expense, net		1,472,714		(107,156	)
Translation adjustments		9,169		38,454
Balance at end of period	$	3,508,692	$	1,284,673

6. Other receivables, prepayments and deposits, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Advances to staff	$	4,402,117		$	2,201,875
Deposits for public bid		1,341,819			953,444
Prepayments to suppliers		8,698,046			3,284,002
VAT receivable		407,173			1,199,778
Other receivable from sales of scrap materials		409,933			-
Other receivables		734,355			293,224
		15,993,443			7,932,323
Less : Allowance for doubtful accounts		(64,471	)		(72,760	)
	$	15,928,972		$	7,859,563

- 12 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

6.	Other receivables, prepayments and deposits, net (Cont’d)
	The advances to staff mainly represent staff drawings for handling selling and logistic activities for the Company in the ordinary course of business.
	Reversal of allowance for doubtful accounts of $8,657 was recognized during the nine months ended September 30, 2012 and no further allowance for doubtful accounts was recognised for the nine months ended September 30, 2011.
7.	Inventories, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Raw materials	$	6,457,169		$	6,198,179
Work-in-progress		31,607,833			25,791,085
Finished goods		311,906			560,959
		38,376,908			32,550,223
Allowance for obsolete inventories		(19,266	)		(19,170	)
	$	38,357,642		$	32,531,053

	No further allowance for obsolete inventories was recognized during the nine months ended September 30, 2012 and 2011.
	As of September 30, 2012 and December 31, 2011, inventories with a value of $3,473,800 and $3,456,574 respectively, were pledged under floating charge for certain loan agreement (Note 13).
8.	Income tax
	United States
	The Company is subject to the United States Federal and state income tax at a statutory rate of 34%. No provision for the U.S. Federal income taxes has been made as the Company had no taxable income in this jurisdiction for the reporting periods.
	The Company has not recognized a deferred tax liability for the undistributed earnings of its non-U.S. subsidiaries as of September 30, 2012 because the Company currently does not expect those unremitted earnings to reverse and become taxable to the Company in the foreseeable future. A deferred tax liability will be recognized when the Company no longer plans to permanently reinvest undistributed earnings. Calculation of related unrecognized deferred tax liability is not practicable.
	BVI
	Megaway was incorporated in the BVI and, under the current laws of the BVI, is not subject to income taxes.

- 13 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

8.	Income tax (Cont;d)
	HK
	Star Wealth was incorporated in Hong Kong and is subject to Hong Kong profits tax at a tax rate of 16.5%. No provision for Hong Kong profits tax has been made as Star Wealth had no taxable income during the reporting periods.
	PRC
	Siping Juyuan, and Beijing Juyuan are subject to PRC enterprise income tax (“EIT”) at the statutory rate of 25%. As Siping Juyuan was qualified as a “High-tech Enterprise”, it was entitled to a preferential EIT rate of 15% during the reporting periods. Beijing Juyuan, being a Sino-foreign joint venture enterprise, is entitled to two years’ EIT exemption from the first profit making calendar year of operations after offset of accumulated taxable losses, followed by a 50% tax reduction for the immediate next three calendar years (“Tax Holiday”). The Tax Holiday commenced in the fiscal year 2008 and Beijing Juyuan was subject to EIT at the rate of 12.5% for both the periods ended September 30, 2012 and 2011 respectively.
	Siping Juyuan was also entitled to a special tax concession (“Tax Concession”) because it employed the required number of handicapped staff according to the relevant PRC tax rules. In particular, this Tax Concession entitled Siping Juyuan a refund of value-added tax paid during the reporting periods (Note 15).
9.	Property, plant and equipment, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Cost
Buildings	$	6,164,160		$	6,133,593
Plant and machinery		4,865,416			4,275,088
Office equipment		788,288			715,153
Motor vehicles		483,020			388,052
		12,300,884			11,511,886
Accumulated depreciation		(4,648,848	)		(3,808,279	)
Net	$	7,652,036		$	7,703,607

During the reporting periods, depreciation is included in :-

		Nine months ended
		September 30,
		(Unaudited)
		2012		2011
Cost of sales and overheads of inventories	$	402,498	$	324,592
Research and development expenses		173,332		179,339
Administrative expenses		246,281		180,249
	$	822,111	$	684,180

As of September 30, 2012 and December 31, 2011, plant and equipment with net book values of $550,785 and $706,695 (Note 13), and buildings with net book values of $4,824,536 and $4,972,769 (Note 12) respectively, were pledged as collateral under certain loan arrangements.

- 14 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

10. Land use rights

		September 30,			December 31,
		2012			2011
		(Unaudited)
Land use rights	$	6,259,843		$	1,106,788
Accumulated amortization		(130,744	)		(87,743	)
	$	6,129,099		$	1,019,045

The Company obtained the right from the relevant PRC land authority for a period of fifty years to use the land on which the Company’s office premises, production facilities and warehouse are situated. As of September 30, 2012 and December 31, 2011, part of the land use rights were pledged as collateral under certain loan arrangements (Note 12).

During the nine months ended September 30, 2012 and 2011, amortization amounted to $42,591 and $16,379 respectively. The estimated amortization expense for each of the five succeeding years from 2012 is approximately $22,000 each year.

The Company transferred $5.15 million to land use rights from deposits for land use rights upon obtaining the land use rights certificate on July 10, 2012. The land is intended for future manufacturing facilities expansion.

11. Other payables and accrued expenses

		September 30,		December 31,
		2012		2011
		(Unaudited)
Accrued audit fee	$	-	$	105,000
Receipt in advance from customers		16,620,332		11,003,379
Pension payable		634,600		631,506
Salaries payable		462,971		417,726
Advances from third parties		675,906		58,026
Security deposit received for project bids		811,970		2,656
Other payables and accrued expenses		3,508,330		3,635,517
	$	22,714,109	$	15,853,810

Pension payable represents accrued staff medical, industry injury claims, labor and unemployment insurances, all of which are third parties insurance and the insurance premiums are based on certain percentage of salaries. The obligations of the Company are limited to those premiums contributed by the Company. Advances from third parties was unsecured, interest-free and repayable upon demand.

Included in other payables as of September 30, 2012 and December 31, 2011 was an amount of $3,254,319 and $3,237,831 respectively, representing governmental financial support received for the Company’s efficient heat exchange equipment manufacture project (the “Project”). The Project will be subject to the government’s inspection and whether the government support is repayable or not is subject to the inspection results.

- 15 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

12. Short-term bank loans

		September 30,		December 31,
		2012		2011
		(Unaudited)
Secured bank loans	$	20,069,090	$	13,826,296
Unsecured bank loans		2,368,500		2,356,755
	$	22,437,590	$	16,183,051

All bank loans are repayable within one year and carry annual interest from 100% to 120% of the benchmark interest rate published by the People’s Bank of China (the “PBOC”).

The bank loans were secured by the following assets of the Company :-

		September 30,		December 31,
		2012		2011
		(Unaudited)
Trade receivables (Note 5)	$	9,474,000	$	5,421,295
Property, plant and equipment (Note 9)		4,824,536		4,972,769
Land use rights (Note 10)		905,831		1,019,045
	$	15,204,367	$	11,413,109

	The unsecured bank loans as of September 30, 2012 and December 31, 2011 were guaranteed by Mr. Zhao and certain third parties. The third parties received 2% of the loan balance as compensation for acting as guarantors for the Company. The Company also made the counter guarantee deposits to the guarantors of $236,850 and $235,676 as of September 30, 2012 and December 31, 2011, respectively. These deposits will be returned to the Company upon the Company’s settlement of the loans.
13.	Long-term loan
	The loan is borrowed from a financial institution, bearing interest at an annual rate of 15% over the benchmark rate of the PBOC for the three-year long-term loans and guaranteed by a third party.
	The loan was secured by the following assets of the Company :-

		September 30,		December 31,
		2012		2011
		(Unaudited)
Property, plant and equipment (Note 9)	$	550,785	$	706,695
Inventories (Note 7)		3,473,800		3,456,574
	$	4,024,585	$	4,163,269

- 16 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

13.	Long-term loan (Cont’d)
	As a condition to the guarantees for the loans, the Company paid 2.5% of the loan balance to the third party as compensation for acting as guarantor for the Company and made the counter guarantee deposits to the guarantor of $236,850 and $235,676 as of September 30, 2012 and December 31, 2011, respectively. These deposits will be returned to the Company upon the Company’s settlement of the loans.
	During the nine months ended September 30, 2012, there was no other covenant requirement under the bank loans granted to the Company except that the inventory level cannot be lower than RMB 22 million (approximately $3.5 million) during the loan period.
	There was no other covenant requirement under the bank loans agreement for the nine months ended September 30, 2012 and 2011.
	Maturities of the loans as of September 30, 2012 are as follow :-

Year
2012	$	947,400
2013		1,894,800
2014		947,400
	$	3,789,600

14.	Common stock
	On November 2, 2010, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with several accredited investors (the “Investors”) pursuant to which the Company agreed to issue and sell to the Investors 4,453,500 shares of the Company’s common stock, representing approximately 21.8% of the issued and outstanding capital stock of the Company on a fully-diluted basis as of and immediately after consummation of the transactions contemplated by the Securities Purchase Agreement, for an aggregate purchase price of approximately $14,251,200, or $3.20 per share (the “Placement Price”). Before the deduction of fair value of the escrow arrangement (Note 18), the Company received approximately $13,390,000 in net proceeds after deducting the issuance costs.
	In connection with the offering of shares under the private placement, 222,675 warrants were issued to the financial advisor on December 7, 2010, as partial compensation for services, to purchase an aggregate of 222,675 shares of common stock of the Company, representing 5% of the offered shares. The warrants have a term of three years and are exercisable from the first anniversary of the issuance and have an exercise price of $3.84. The fair value of the warrants at date of issue was $396,939 as of grant date. At September 30, 2012, all the issued share warrants were still outstanding.
	In connection with its entry into the Securities Purchase Agreement, the Company also entered into a make good escrow arrangement with Wisetop, the Investors and other parties, details of which are set out in Note 18 to the condensed consolidated financial statements.

- 17 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

15. Other income

		Three months ended				Nine months ended
		September 30,				September 30,
		(Unaudited)				(Unaudited)
		2012		2011		2012		2011
Refund of value-added tax under Tax Concession	$	75,670	$	57,684	$	202,480	$	205,103
Government grants		135		3,554		11,060		546,250
Sales of scrap materials		206,986		1,037		206,986		159,388
Service income for installation of equipment		-		-		229,461		-
Others, net		-		-		-		4,221
	$	282,791	$	62,275	$	649,987	$	914,962

16. Finance costs

		Three months ended				Nine months ended
		September 30,				September 30,
		(Unaudited)				(Unaudited)
		2012		2011		2012		2011
Interest expense	$	471,014	$	315,910	$	1,365,126	$	643,909
Bank charges and net exchange loss		3,573		44,792		12,673		118,779
	$	474,587	$	360,702	$	1,377,799	$	762,688

- 18 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

17.	Earnings per share
	The basic earnings per share is calculated using the net income attributable to the Company’s common stockholders and the weighted average number of shares outstanding during the reporting periods.
	During the reporting periods, certain were not included in the computation of diluted earnings per share because they were anti-dilutive. Accordingly, the basic and diluted earnings per share are the same.
18.	Make good escrow agreement
	In connection with a private placement completed on November 2, 2010, Mr. Zhao, the major shareholder of the Company, entered into a make good escrow agreement (the "Escrow Arrangement") with the Investors under the private placement pursuant to which he agreed to place 2,000,000 shares of the Company's common stock (the “Make Good Shares”) owned by him in an escrow account administrated by an escrow agent. In the event that the Company failed to achieve the After Tax Net Income (“ATNI”) targets of at least $8 million in 2010 and $12 million in 2011, the escrow agent was authorized to distribute the Make Good Shares to the investors on a pro-rata basis for any shortfall.
	Pursuant to ASC 718-10-S99-2, the Company considers the aforementioned escrow arrangement as an inducement to facilitate the private placement on behalf of the Company rather than as compensatory and accordingly, adopted ASC 718-10-S99-2 to recognize this arrangement. The management estimated the probability of the Company not achieving the 2010 Guaranteed ATNI and 2011 Guaranteed ATNI to be 10% (the “Probability %”) and calculated the fair value of the escrow arrangement with reference to the Probability % and the Placement Price. The calculated fair value of $640,000 was deducted from the placement proceeds with a corresponding credit in additional paid-in capital, resulting in no net change in the Company’s equity.
	As the target was met for 2010 Guaranteed ATNI, 50% of the Make Good Shares or 1,000,000 shares were returned to Mr. Zhao in 2011. As the Company did not meet the 2011 Guaranteed ATNI, Mr. Zhao is required to transfer the 2011 Make Good Shares or remaining 1,000,000 shares to the Investors on a pro-rata basis.
	In July, 2012, the Escrow Arrangement was amended. In the event that the Investors’ shares are acquired by a third party at a price no less than $3.2 per share multiplied by the annual compound interest rate at 10% before January 12, 2013, the 2011 Make Good Shares shall be returned to Mr. Zhao in thirty business days after the acquisition. If no acquisition will be made before January 12, 2013, the 2011 Make Good Shares shall be transferred to the Investors in thirty business days after January 12, 2013.

- 19 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

19.	Defined contribution plan
	Pursuant to the relevant PRC regulations, the Company is required to make contributions at a rate of 30.6% to 31.2% of employees’ salaries and wages to a defined contribution retirement scheme organized by a state-sponsored social insurance plan in respect of the retirement benefits for the Company’s employees in the PRC. The only obligation of the Company with respect to the retirement scheme is to make the required contributions under the plan. No forfeited contribution is available to reduce the contribution payable in the future years. The defined contribution plan contributions were charged to the condensed consolidated statements of income and comprehensive income. The Company contributed $218,812 and $420,281 for the nine months ended September 30, 2012 and 2011, respectively.
20.	Commitments and contingencies
	As of September 30, 2012 and December 31, 2011, the Company had the following commitments that were contracted for but not provided in the condensed consolidated financial statements.

		September 30,		December 31,
		2012		2011
		(Unaudited)
Plant and machineries	$	-	$	317,342

Contingencies

As of September 30, 2012 and December 31, 2011, the Company had contingencies arising from the division of Old Juyuan Company into Siping Juyuan, New Juyuan Company and Juyuan Hanyang Pressure Vessels. According to the division agreement of Old Juyuan Company (“Division Agreement”), all parties to the Division Agreement undertook joint and several liabilities for the indebtedness of Old Juyuan Company.

In accordance with ASC 450 “Contingencies”, the Company records a liability in the condensed consolidated financial statements for these contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded.

The Company’s loss in respect of this undertaking is possible but not known or probable. Accordingly, no liability was recognized as of September 30, 2012 and December 31, 2011 respectively. The Company believes that a reasonable estimate of the possible loss range from $Nil to approximately $1,731,000 as of September 30, 2012 (December 31, 2011: from $Nil to approximately $1,741,000)

In accordance with the PRC tax regulations, the Company’s sales are subject to value added tax (“VAT”) at 17% upon the issuance of VAT invoices to its customers. When preparing these financial statements, the Company recognized revenue when goods were delivered, and made full tax provision in accordance with relevant national and local laws and regulations of the PRC.

- 20 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

20.	Commitments and contingencies (Cont’d)
	The Company follows the practice of reporting its revenue for PRC tax purposes when invoices are issued. In the local statutory financial statements prepared under the PRC GAAP, the Company recognized revenue on an “invoice basis” instead of when goods are delivered. Accordingly, despite the fact that the Company has made full tax provision in these condensed consolidated financial statements, the Company may be subject to a penalty for the deferred reporting of tax obligations. The exact amount of penalty cannot be estimated with any reasonable degree of certainty. The management considers it is very unlikely that the tax penalty will be imposed.
	The Company’s operations are subject to the laws and regulations in the PRC relating to the generation, storage, handling, emission, transportation and discharge of certain materials, substances and waste into the environment, and various other health and safety matters. Governmental authorizes have the power to enforce compliance with their regulations, and violators may be subject to fines, injunctions or both. The Company must devote substantial financial resources to ensure compliance and believes that it is in substantial compliance with all the applicable laws and regulations.
	The Company is currently not involved in any environmental remediation and has not accrued any amounts for environmental remediation relating to its operations. Under existing legislation, management believes that there are no probable liabilities that will have a material adverse effect on the financial position, operating results or cash flows of the Company.
21.	Segment information
	The Company is solely engaged in the manufacturing and trading of plate heat exchangers and various related products. Since the nature of the products, their production processes, and their distribution methods are substantially similar, they are considered as a single reportable segment under ASC 280 “Segment Reporting”.
	The Company’s sales revenues by products for the nine months ended September 30, 2012 and 2011 were as follows :-

		Nine months ended September 30,
		2012	%		2011	%
		(Unaudited)			(Unaudited)
Plate heat exchanger	$	13,393,408	38	$	20,009,468	52
Heat exchange unit		11,837,940	34		7,860,800	20
Air-cooled heat exchanger		1,117,187	3		2,640,027	7
Shell-and-tube heat exchanger		4,271,045	12		4,137,442	11
Others		4,533,375	13		3,894,697	10
	$	35,152,955	100	$	38,542,434	100

All of the Company’s long-lived assets and revenues classified based on the customers are located in the PRC.

- 21 -

THT Heat Transfer Technology, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

22.	Related party transactions
	Apart from the transactions as disclosed in Note 12 to the condensed consolidated financial statements, the Company had no other material transactions carried out with its related parties during the reporting periods.
23.	Subsequent events
	The Company has evaluated all events or transactions that occurred through the date the condensed consolidated financial statements were issued, and has determined that there were no material recognizable nor subsequent events or transactions which would require recognition or disclosure in the condensed consolidated financial statements.

- 22 -

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Special Note Regarding Forward Looking Statements

In addition to historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in Item 1A “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2011, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

Use of Terms

Except where the context otherwise requires and for the purposes of this report only:

• “THT,” “Company,” “we,” “us,” or “our” are to the combined business of THT Heat Transfer Technology, Inc., a Nevada corporation, and its consolidated subsidiaries: Megaway, Star Wealth, Siping Juyuan and Beijing Juyuan;

• “Megaway” are to Megaway International Holdings Limited, a BVI company;

• “Star Wealth” are to Star Wealth International Holdings Limited, a Hong Kong company;

• “Siping Juyuan” are to Siping City Juyuan Hanyang Plate Heat Exchanger Co. Ltd., a PRC company;

• “Beijing Juyuan” are to Beijing Juyuan Hanyang Heat Exchange Equipment Co., Ltd., a PRC company;

• “BVI” are to the British Virgin Islands;

• “Hong Kong” are to the Hong Kong Special Administrative Region of the People’s Republic of China;

• “PRC” and “China” are to the People’s Republic of China;

• “SEC” are to the Securities and Exchange Commission;

• “Exchange Act” are to the Securities Exchange Act of 1934, as amended;

• “Securities Act” are to the Securities Act of 1933, as amended;

• “Renminbi” and “RMB” are to the legal currency of China; and

• “U.S. dollars,” “dollars” and “$” are to the legal currency of the United States.

Overview of our Business

We are a leading total solution provider in the heat exchange industry. Our major products are plate heat exchangers, heat exchanger units, air-cooled heat exchangers and shell-and-tube heat exchangers. Unlike most other heat exchanger manufacturers in China, we not only provide heat exchange products, but also provide total solutions to our customers. As a total solutions provider, we analyze the working condition of our customers, provide optimized designs based on analysis and simulation, offer high quality heat exchange products, and continuously assist our customers in improving the heat exchange process.

Over the past ten years, we have successfully completed over 3,000 projects in more than 15 industries, including metallurgy, heat and power, petrochemical, food and beverage, pharmaceutical and shipbuilding. We have provided heat exchange solutions to Fortune 500 companies, including Shell, BP, BASF, LG, Sinopec and China Shenhua. We have also provided heat exchange products for important Chinese and international projects such as the Beijing 2008 Olympics Wukesong Sports Center, Guangdong Lin’ao nuclear plant and BASF Chemical plant in Germany.

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Our operations are headquartered in Siping, Jilin Province, PRC. Our primary Chinese operating subsidiaries are Siping Juyuan and Beijing Juyuan.

Recent Development

The Company received the SEC comments on its accounting treatment of the Make Good Escrow Agreement (the “Make Good Agreement”) entered on November 2, 2010 in connection with the Company’s issuance of 4,453,500 shares to certain accredited investors for approximately $14,251,200. We are in the process of evaluating whether the treatment of the Make Good Agreement as liability would have had a material effect on our financial statements for the period between November 2, 2010 and February 2013 when the make good pledger eventually releases the make good shares to the investors.

Third Quarter Financial Performance Highlights

The following summarizes certain key financial information for the third quarter of 2012:

• Sales revenue: Sales revenue increased by $2.20 million, or 21.33%, to $12.51 million for the three months ended September 30, 2012, from $10.31 million for the same period in 2011.

• Gross profit: Gross profit increased by $0.67 million, or 14.89%, to $5.18 million for the three months ended September 30, 2012, from $4.51 million for the same period in 2011. As a percentage of sales revenue, gross profit decreased by 2.32% to 41.43% for the three months ended September 30, 2012, from 43.75% for the same period in 2011.

• Net income attributable to stockholders: Net income attributable to our stockholders increased by $0.38 million, or 312.73%, to $0.50 million for the three months ended September 30, 2012, from $0.12 million for the same period in 2011.

• Fully diluted net income per share: Fully diluted net income per share was $0.02for the three months ended September 30, 2012, as compared to $0.01 for the same period in 2011.

Results of Operations

Comparison of Three Months Ended September 30, 2012 and September 30, 2011

The following table sets forth key components of our results of operations for the periods indicated.

		Three Months Ended						$			%
		September 30,						Change			Change
		2012			2011
Sales revenue	$	12,508,183		$	10,309,768		$	2,198,415			21.33
Cost of sales		(7,325,961	)		(5,799,160	)		(1,526,801	)		26.33
Gross profit		5,182,222			4,510,608			671,614			14.89
Operating expenses:
Administrative expenses		2,382,820			1,645,904			736,916			44.77
Research and development expenses		315,229			365,037			(49,808	)		(13.64	)
Selling expenses		1,637,436			2,300,748			(663,312	)		(28.83	)
Total operating expenses		4,335,485			4,311,689			23,796			0.55
Income from operations		846,737			198,919			647,818			325.67
Interest income		7,055			10,568			(3,513	)		(33.24	)
Other income		282,791			62,275			220,516			354.10
Finance costs		(474,587	)		(360,702	)		113,885			31.57
Income (loss) before income taxes and noncontrolling interests		661,996			(88,940	)		750,936			(844.32	)
Income taxes		(123,732	)		(89,283	)		34,449			38.58
Net income (loss) before noncontrolling interests		538,264			(178,223	)		716,487			(402.02	)
Net income(loss) attributable to noncontrolling interests		(34,270	)		300,336			(334,606	)		(111.41	)
Net income attributable to THT common stockholders		503,994		$	122,113		$	381,881		$	312.73

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Sales revenue. Our sales revenue is generated from sales of heat exchange products. Sales revenue increased by $2.20 million, or 21.33%, to $12.51 million for the three months ended September 30, 2012, from $10.31 million for the same period in 2011. Our sales volume in the three months ended September 30, 2012 amounted to 704 units, anincrease of 59 units, from 645 units for the same period in 2011. Such increase was mainly due to the increased sales revenue from shell-and-tube heat exchangers and heat exchange units in the 2012 period as compared with the 2011 period. Sales revenue from shell-and-tube heat exchangers increased by $1.39 million, or 178.62%, to $2.17 million for the three months ended September 30, 2012, from $0.78 million for the same period in 2011. Sales from heat exchange unitsincreased by $3.13 million, or 223.93%, to $4.52 million for the three months ended September 30, 2012, from $1.40 million for the same period in 2011. The increase was a result ofincreasingdemand of our products in heating industry in third quarter in 2012 as a result of the resurgence in China’s economy.

The following table shows our sales revenue by product for the three months ended September 30, 2012 and 2011:

		Three Months Ended September 30,
	2012			2011
		$	%		$	%
Plate heat exchanger	$	4,373,947	34.97%	$	4,610,381	44.72%
Heat exchange unit		4,521,785	36.15%		1,395,911	13.54%
Air-cooled heat exchanger		127,165	1.02%		1,053,963	10.22%
Shell-and-tube heat exchanger		2,174,145	17.38%		780,316	7.57%
Others		1,311,141	10.48%		2,469,197	23.95%
TOTAL	$	12,508,183	100.00%	$	10,309,768	100.00%

Cost of sales. Our cost of sales is primarily comprised of the costs of our raw materials, labor and factory overhead. Our cost of sales increased by $1.53 million, or 26.33%, to $7.33 million for the three months ended September 30, 2012, from $5.80 million for the three months ended September 30, 2011. The increase was generally in line with the increase in our sales revenue. Cost of sales as a percentage of sales revenue were 58.57% and 56.25% for the three months ended September 30, 2012 and 2011, respectively, anincrease of 2.32 percentage points. The increase was mainly attributable to the increase in the labor costs and raw material costs.

Gross profit. Our gross profit is equal to the difference between our sales revenue and our cost of sales. Our gross profit increased by $0.67 million, or 14.89%, to $5.18 million for the three months ended September 30, 2012, from $4.51 million for the same period in 2011. The increase was mainly attributable to increased sales revenue from shell-and-tube heat exchangers and heat exchange units. Although the average salesprice per unit increased 11.15% in the three months ended September 30, 2012 in comparison with the same period in 2011, gross profit margin for the three months ended September 30, 2012decreased to 41.43% from 43.75% for the same period in 2011. The decrease in our gross profit margin was mainly attributable to the increase in labor costs and raw material costs as noted above.

Administrative expenses. Our administrative expenses consist of the costs associated with staff and support personnel who manage our business activities. Our administrative expenses increased by $0.74million, or 44.77%, to $2.38million for the three months ended September 30, 2012, from $1.65 million for the same period in 2011. As a percentage of sales revenue, administrative expenses increased to19.05% for the three months ended September 30, 2012, as compared to 15.96% for the same period in 2011. The increase in administrative expenses was primarily due to an increase of allowance for doubtful accounts. Allowance for doubtful accounts increased to $1.07million in the threemonths ended September 30, 2012 compared with a reversal of allowance for doubtful accounts of $0.15million for the same period in 2011.The increase in the allowance for doubtful accounts was mainly due to our policies for bad debt reserves. We record an allowance for doubtful accounts at a rate of 25% for receivables aged between 1 to 2 years, 50% for receivables aged between 2 to 3 years and 100% for receivables aged over 3 years.Our account receivables age between 1 to 2 years increased by $1.65 million in the three months ended September 30, 2012 compare to the same period in 2011.

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Research and development expenses. Our research and development expenses consist of the costs associated with research and development personnel and expense in research and development projects. Our research and development expenses decreased by $0.05 million, or 13.64%, to $0.32 million for the three months ended September 30, 2012, from $0.37 million for the same period in 2011. Decrease in research and development expenses was because the company had less new products in the process.

Selling expenses. Our selling expenses include sales commissions, the cost of advertising and promotional materials, salaries and fringe benefits of sales personnel, after-sale support services and other sales-related costs. Our selling expenses decreased by $0.66 million, or 28.83%, to $1.64 million for the three months ended September 30, 2012, from $2.30million for the same period in 2011. As a percentage of sales revenue, selling expenses decreased to 13.09% for the three months ended September 30, 2012, as compared to 22.32% for the same period in 2011. The decrease was mainly attributable to the decreased travelling expenses of our sales personnel. Travelling expenses decreased by $0.33 million, or 29.46%, to $0.79 million for the three months ended September 30, 2012, from $1.12 million for the same period in 2011.

Income (loss) before income taxes and noncontrolling interests. Income before income taxes and noncontrolling interests increased by $0.75 million, or 844.32%, to a net income of $0.66 million for the three months ended September 30, 2012, from a net loss of $0.09 million for the same period in 2011. Such increase was mainly attributable to the increase in our sales revenue.

Income taxes. Our income taxes increased to $0.12 million for the three months ended September 30, 2012, from $0.09 million for the same period in 2011, as a result of the increased taxable income.

Net income attributable to common stockholders. As a result of the cumulative effect of the foregoing factors, our net income attributable to common stockholders increased by $0.38 million, or 312.73%, to $0.50 million for the three months ended September 30, 2012, from $0.12 million for the same period in 2011. As a percentage of sales revenue, our net income attributable to common stockholders was 4.03% and 1.18% for the three months ended September 30, 2012 and 2011, respectively.

Comparison of Nine Months Ended September 30, 2012 and September 30, 2011

The following table sets forth key components of our results of operations for the periods indicated.

		Nine Months Ended September
		30,						$		%
		2012			2011			Change		Change
Sales revenue	$	35,152,955		$	38,542,434		$	(3,389,479	)	(8.79	)
Cost of sales		(20,549,861	)		(21,911,721	)		1,361,860		(6.22	)
Gross profit		14,603,094			16,630,713			(2,027,619	)	(12.19	)
Operating expenses:
Administrative expenses		4,423,011			3,386,046			1,036,965		30.62
Research and development expenses		814,509			1,149,699			(335,190	)	(29.15	)
Selling expenses		5,845,212			5,524,796			320,416		5.80
Total operating expenses		11,082,732			10,060,541			1,022,191		10.16
Income from operations		3,520,362			6,570,172			(3,049,810	)	(46.42	)
Interest income		19,796			34,484			(14,688	)	(42.59	)
Other income		649,987			914,962			(264,975	)	(28.96	)
Finance costs		(1,377,799	)		(762,688	)		(615,111	)	80.65
Income before income taxes and noncontrolling interests		2,812,346			6,756,930			(3,944,584	)	(58.38	)
Income taxes		(234,630	)		(1,006,821	)		772,191		(76.70	)
Net income before noncontrolling interests		2,577,716			5,750,109			(3,172,393	)	(55.17	)
Net (income)loss attributable to noncontrolling interests		(76,833	)		341,986			(418,819	)	(122.47	)
Net income attributable to THT common stockholders	$	2,500,883		$	6,092,095		$	(3,591,212	)	(58.95	)

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Sales revenue. Our sales revenue decreased by $3.39 million, or 8.79%, to $35.15 million for the nine months ended September 30, 2012, from $38.54 million for the same period in 2011. Our sales volume in the nine months ended September 30, 2012 amounted to 1,943 units, a decrease of 622 units, from 2,565 units for the same period in 2011. Such decrease was mainly due to the decreased sales revenue from plate heat exchangersand air coolers in the 2012 period as compared with the 2011 period. Sales revenue from plate heat exchangers decreased by $6.62 million, or 33.06%, to $13.39 million for the nine months ended September 30, 2012 from $20.01 million for the same period in 2011. Sales revenue from air-coolers decreased by $1.52 million, or 57.68%, to $1.12 million for the nine months ended September 30, 2012, from $2.64 million for the same period in 2011. The decrease was caused by decreasingdemand for our products as a result of an overall slowdown of China’s economy in the first half of 2012. Although sales revenue from heat exchange units and other products increased, the increase was not enough to offset the decreased sales revenue from plate heat exchangers and air coolers.

The following table shows our sales revenue by product for the nine months ended September 30, 2012 and 2011:

		Nine Months Ended September 30,
		2012			2011
		$	%		$	%
Plate heat exchanger	$	13,393,408	38.10%	$	20,009,468	51.92%
Heat exchange unit		11,837,940	33.68%		7,860,800	20.40%
Air-cooled heat exchanger		1,117,187	3.17%		2,640,027	6.85%
Shell-and-tube heat exchanger		4,271,045	12.15%		4,137,442	10.73%
Others		4,533,375	12.90%		3,894,697	10.10%
TOTAL	$	35,152,955	100.00%	$	38,542,434	100.00%

Cost of sales. Our cost of sales decreased by $1.36 million, or 6.22%, to $20.55 million for the nine months ended September 30, 2012, from $21.91 million for the nine months ended September 30, 2011. The decrease in the cost of sales was generally in line with the decrease in our sales revenue. Cost of sales as a percentage of sales revenue were 58.46% and 56.85% for the nine months ended September 30, 2012 and 2011, respectively, an increase of 1.61 percentage points. The increase was mainly attributable to the increased total labor costs and raw material costs in the first half of 2012.

Gross profit. Our gross profit decreased by $2.03 million, or 12.19%, to $14.60 million for the nine months ended September 30, 2012, from $16.63 million for the same period in 2011. The decrease in our gross profit was mainly attributable to decreased sales revenue from plate heat exchangers and air coolers. Although the average sales price per unit increased 20.40% in the nine months ended September 30, 2012 in comparison with the same period in 2011, gross profit margin for the nine months ended September 30, 2012 dropped to 41.54% from 43.15% for the same period in 2011. The decrease in our gross profit margin was mainly attributable to the increase in labor costs and raw material costs in the first half of 2012.The increase of gross profit in the third quarter was not enough to offset the decreased profit in the first half of 2012.

Administrative expenses. Our administrative expenses increased by $1.04 million, or 30.62%, to $4.42 million for the nine months ended September 30, 2012, from $3.39 million for the same period in 2011. As a percentage of sales revenue, administrative expenses increased to12.58% for the nine months ended September 30, 2012, as compared to 8.79% for the same period in 2011. The increase in administrative expenses was primarily due to an increase of allowance for doubtful accounts. Allowance for doubtful accounts increased by $1.44 million to $1.44 million in the nine months ended September 30, 2012 compared with a reversal of allowance for doubtful accounts of $0.11million for the same period in 2011. The increase in the allowance for doubtful accounts was mainly due to our policies for bad debt reserves. We record an allowance for doubtful accounts at a rate of 25% for receivables aged between 1 to 2 years, 50% for receivables aged between 2 to 3 years and 100% for receivables aged over 3 years. Our account receivables age between 1 to 2 years increased by $3.03 million in the nine months ended September 30, 2012 compare to the same period in 2011.

Research and development expenses. Our research and development expenses decreased by $0.34 million, or 29.15%, to $0.81 million for the nine months ended September 30, 2012, from $1.15 million for the same period in 2011. The decrease in research and development expenses was mainly attributable to the company having a few new products in the process.

Selling expenses. Our selling expenses increased by $0.32 million, or 5.80%, to $5.85 million for the nine months ended September 30, 2012, from $5.52 million for the same period in 2011. As a percentage of sales revenue, selling expenses increased to 16.63% for the nine months ended September 30, 2012, as compared to 14.33% for the same period in 2011. The increase was mainly attributable to the increased travelling expenses of our sales personnel. Traveling expense increased by $0.23 million, or 8.02%, to $3.16 million for the nine months ended September 30, 2012, from $2.92 million for the same period in 2011. The increase in travelling expenses was mainly due to our efforts to expand our market share in the first half of 2012.

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Income before income taxes and noncontrolling interests. Income before income taxes and noncontrolling interests decreased by $3.94 million, or 58.38%, to $2.81 million for the nine months ended September 30, 2012, from $6.76 million for the same period in 2011. Such decrease was mainly attributable to decreased gross profit and increased total expenses.

Income taxes. Our income taxes decreased to $0.23 million for the nine months ended September 30, 2012, from $1.01 million for the same period in 2011, as a result of decreased taxable income.

Net income attributable to common stockholders. As a result of the cumulative effect of the foregoing factors, our net income attributable to common stockholders decreased by $3.59 million, or 58.95%, to $2.50 million for the nine months ended September 30, 2012, from $6.09 million for the same period in 2011. As a percentage of sales revenue, our net income attributable to common stockholders was 7.11% and 15.81% for the nine months ended September 30, 2012 and 2011, respectively.

Liquidity and Capital Resources

As of September 30, 2012, we had cash and cash equivalents of $7.23 million, primarily consisting of cash on hand and demand deposits. We can use our land as collateral to borrow approximately $4.76 million. In addition, we have an approximately $2.38 million credit line from Bank of Communications. We anticipate that cash on hand and borrowing capacity under our bank loans will be sufficient to satisfy our ongoing obligations.

We believe our allowance for doubtful accounts is appropriate. We have an installment payment arrangement with our customers. The current economic slowdown and China’s tightened credit policy led to delayed payments and delayed delivery schedules by our customers, which in turn caused us to increase our allowance for doubtful accounts from a reversal of allowance of $0.11million in the nine months ended September 30, 2011 to $1.44 million in the same period in 2012. To control inflation after a massive stimulus plan, the Chinese government tightened its credit policy. As a result, state-owned banks limited their lending to large state-owned corporations and privately held companies continue to have difficulty accessing capital. Most of our customers have been affected by the tightened credit policy and have limited access to capital. The Company records an allowance for doubtful accounts at a rate of 25% for receivables aged between 1 to 2 years, 50% for receivables aged between 2 to 3 years and 100% for receivables aged over 3 years.

Our allowance of obsolete inventory is also appropriate because we purchase raw materials after we receive purchase orders. Although our customers may delay their payment or delivery schedules, which increase our inventories, they do not cancel their orders so as to cause us to classify the delayed inventories as obsolete inventories.

We expect that the trend of delayed customer payments and delayed delivery schedules will continue in the future. We have been taking the following measures to mitigate the situation: 1) send the collection letters or call the customers to request payment; 2) appoint specialists to visit our customers to collect payment; 3) file law suits.

PRC legal restrictions permit payments of dividends by our PRC subsidiaries only out of their accumulated after-tax profits, if any, determined in accordance with PRC accounting standards and regulations. Our PRC subsidiaries are also required under PRC laws and regulations to allocate at least 10% of their annual after-tax profits determined in accordance with PRCGAAP to a statutory general reserve fund until the amounts in said fund reaches 50% of our registered capital. Allocations to these statutory reserve funds can only be used for specific purposes and are not transferable to us in the form of loans, advances, or cash dividends. Given that the Company and the PRC subsidiaries do not intend to pay dividends for the foreseeable future, we consider the impact of restrictions on our liquidity, financial condition and results of operations is not significant.

The following table provides a summary of our net cash flows from operating, investing, and financing activities.

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Cash Flow
		NineMonths Ended September 30,
		2012			2011
Net cash used in operating activities	$	(4,338,155	)	$	(14,162,823	)
Net cash used in investing activities		(1,121,293	)		(5,586,899	)
Net cash flows provided by financing activities		5,310,592			4,361,728
Effects of exchange rate change in cash		42,366			253,961
Net decrease in cash and cash equivalents		(106,490	)		(15,134,033	)
Cash and cash equivalents at beginning of the period		7,340,068			18,438,430
Cash and cash equivalent at end of the period	$	7,233,578		$	3,304,397

Operating Activities

Net cash used in operating activities was $4.34 million for the nine months ended September 30, 2012, compared with $14.16million for the same period in 2011. The decrease in net cash used in operating activities was mainly attributable to the fact that collections from trade customers were relatively high in the 2012 period which was a result of installment payments being made by our customers, credit sales granted to customers decreasing as a result of decreased turnover, and other receivables prepayment and deposits decreasing due to reduced cash advances to staff and prepayment to trade suppliers for the nine month period ended in September 30, 2012.

Investing Activities

Net cash used in investing activities was $1.12 million for the nine months ended September 30, 2012, compared with $5.59 million for the same period in 2011. The net cash used in investing activities during the nine months ended September 30, 2012 was primarily used for the purchase of equipment and land use rights.

Financing Activities

Net cash flows provided for financing activities increased from $4.36 million for the nine months period ended September 30, 2011 to $.5.31 million for the same period in 2012. Although the new bank loans obtained decreased from $22.14 million in the nine months ended September 30, 2011 to $17.24 million in the same period in 2012, the maturity of the short-term and long-term loans for the nine months ended September 30, 2012 was $4.45million lesser comparing to the same period in 2011. The total of the maturity of short-term and long-term loans for the nine months period ended September 30, 2012 and 2011 was $12.01 and $16.46, respectively.

Capital Expenditures

Our capital expenditures were used primarily for the purchase of equipment to expand our production capacity and deposits for land use rights. On July 10, 2012, we obtained the land use right certificate from the Chinese government for a parcel of land with 100,247 square meters. We plan to construct a new plant on the land. The table below sets forth the breakdown of our capital expenditures by use for the periods indicated.

		Nine Months Ended September 30,
		2012		2011
Construction costs	$	-	$	106,916
Purchase of equipment		699,989		504,467
Prepayment for land use right		1,675,667		4,274,681
Total capital expenditures	$	2,375,656	$	4,886,064

We estimate that our total capital expenditures in fiscal year 2012 will reach approximately $3 million to buy the equipment for necessary products used in the nuclear power industry.

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Seasonality

Our operating results and operating cash flows historically have been subject to seasonal variations. Our revenues usually increase over each quarter of the calendar year with the first quarter usually the slowest quarter because fewer projects are undertaken during and around the Chinese spring festival.

Inflation

Inflation and changing prices have not had a material effect on our business, and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However, our management will closely monitor price changes in the Chinese economy and our industry and continually maintain effective cost controls in operations.

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, sales or expenses, results of operations, liquidity or capital expenditures, or capital resources that are material to an investment in our securities.

Critical Accounting Policies

Critical accounting policies are those we believe are most important to portraying our financial conditions and results of operations and also require the greatest amount of subjective or complex judgments by management. Judgments and uncertainties regarding the application of these policies may result in materially different amounts being reported under various conditions or using different assumptions. See Note 3 to our unaudited condensed consolidated financial statements included elsewhere in this report.

Recent Accounting Pronouncements

See Note 3 to our unaudited condensed consolidated financial statements included elsewhere in this report.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable.

ITEM 4.  CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Interim Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15(e), our management has carried out an evaluation, with the participation and under the supervision of our Chief Executive Officer, Mr. Guohong Zhao, and Interim Chief Financial Officer, Mr. ZhigangXu, of the effectiveness of the design and operation of our disclosure controls and procedures, as of September 30, 2012. Based upon, and as of the date of this evaluation, Messrs. Zhao and Xu determined that, because of the material weaknesses described in Item 9A “Controls and Procedures” of our Annual Report on Form 10-K for the year ended December 31, 2011, which we are still in the process of remediating as of September 30, 2012, our disclosure controls and procedures were not effective. Investors are directed to Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2011 for the description of these weaknesses.

Changes in Internal Control over Financial Reporting

We regularly review our system of internal control over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that we maintain an effective internal control environment.

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Changes may include such activities as implementing new, more efficient systems, consolidating activities, and migrating processes.

During its evaluation of the effectiveness of internal control over financial reporting as of December 31, 2011, our management identified material weakness related to our lack of: (1) sufficient and adequately trained accounting and finance personnel; (2) qualified resources to perform the internal audit functions properly; and (3) an internal audit department, which renders ineffective our ability to prevent and detect control lapses and errors in the accounting of certain key areas. As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011, our management has identified the steps necessary to address the material weaknesses, and in the third quarter of 2012, we continued to implement these remedial procedures.

Other than in connection with the implementation of the remedial measures described above, there were no changes in our internal controls over financial reporting during the third quarter of 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II
OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these, or other matters, may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition, cash flow or operating results.

ITEM 1A. RISK FACTORS.

Our auditor, like other independent registered public accounting firms operating in China, is not inspected by the U.S. Public Company Accounting Oversight Board, or the PCAOB, and as such, our investors currently do not have the benefits of PCAOB oversight.

Auditors of companies that are registered with the SEC and traded publicly in the United States, including our independent registered public accounting firm, must be registered with the PCAOB and are required by U.S. law to undergo regular inspections by the PCAOB to assess their compliance with U.S. law and professional standards in connection with their audits of public company financial statements filed with the SEC.

Our auditors have been last inspected by the PCAOB in 2010. As our auditors are located in Hong Kong, a special administrator region of China, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the Chinese authorities, there is no guarantee that the PCAOB will be allowed to inspect the audit work and practices of our auditors, like other registered audit firms operating in China, in the future.

This lack of PCAOB inspections in China prevents the PCAOB from regularly evaluating audits and quality control procedures of any auditors operating in China, including our auditor. As a result, investors may be deprived of the benefits of PCAOB inspections.

The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of our auditor’s audit procedures or quality control procedures as compared to auditors outside of China that are subject to PCAOB inspections. Investors may lose confidence in our reported financial information and procedures and the quality of our financial statements.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

We have not sold any equity securities during the third quarter of 2012 that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K that was filed during quarter.

No repurchases of our common stock were made during the third quarter of 2012.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION.

We have no information to disclose that was required to be in a report on Form 8-K during the third quarter of 2012, but was not reported. There have been no material changes to the procedures by which security holders may recommend nominees to our board of directors.

ITEM 6. EXHIBITS.

The list of exhibits in the Exhibit Index to this report is incorporated herein by reference.

- 32 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 14, 2012	THT HEAT TRANSFER TECHNOLOGY, INC.
	By:	/s/ Guohong Zhao
		Guohong Zhao, Chief Executive Officer
		(Principal Executive Officer)
	By:	/s/ ZhigangXu
		ZhigangXu, Interim Chief Financial Officer
		(Principal Financial Officer and Principal
		Accounting Officer)

- 33 -

EXHIBIT INDEX

Exhibit No.	Description
31.1	Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certifications of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive data files pursuant to Rule 405 of Regulation S-T (furnished herewith).

- 34 -

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Guohong Zhao, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of THT Heat Transfer Technology, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2012

/s/ Guohong Zhao                                          
Guohong Zhao
Chief Executive Officer
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, ZhigangXu, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of THT Heat Transfer Technology, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2012

/s/ ZhigangXu                                                                
ZhigangXu
Interim Chief Financial Officer
(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Guohong Zhao, the Chief Executive Officer of THT HEAT TRANSFER TECHNOLOGY, INC. (the “Company”), DOES HEREBY CERTIFY that:

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, each of the undersigned has executed this statement this 14th day of November, 2012.

/s/ Guohong Zhao                                  
Guohong Zhao
Chief Executive Officer
(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to THT Heat Transfer Technology, Inc. and will be retained by THT Heat Transfer Technology, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, ZhigangXu, the Chief Financial Officer of THT HEAT TRANSFER TECHNOLOGY, INC. (the “Company”), DOES HEREBY CERTIFY that:

1. The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, each of the undersigned has executed this statement this 14th day of November, 2012.

/s/ZhigangXu                                     
ZhigangXu
Interim Chief Financial Officer
(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to THT Heat Transfer Technology, Inc. and will be retained by THT Heat Transfer Technology, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Long-Term Loan (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Assets Used to Secure Long-Term Bank Loans [Table Text Block]

		September 30,		December 31,
		2012		2011
		(Unaudited)
Property, plant and equipment (Note 9)	$	550,785	$	706,695
Inventories (Note 7)		3,473,800		3,456,574
	$	4,024,585	$	4,163,269

Schedule of Maturities of Long-term Debt [Table Text Block]

Year
2012	$	947,400
2013		1,894,800
2014		947,400
	$	3,789,600

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Short-Term Bank Loans (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Short-term Bank Loans 1	100.00%
Short-term Bank Loans 2	120.00%
Short-term Bank Loans 3	2.00%
Short-term Bank Loans 4	$ 236,850
Short-term Bank Loans 5	$ 235,676

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Other Receivables, Prepayments And Deposits (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Other Receivables, Prepayments And Deposits 1	$ 8,657

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Schedule of Other Payable and Accrued Liabilities (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 1	$ 0
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 2	105,000
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 3	16,620,332
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 4	11,003,379
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 5	634,600
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 6	631,506
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 7	462,971
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 8	417,726
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 9	675,906
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 10	58,026
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 11	811,970
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 12	2,656
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 13	3,508,330
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 14	3,635,517
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 15	22,714,109
Other Payables And Accrued Expenses Schedule Of Other Payable And Accrued Liabilities 16	$ 15,853,810

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Long-Term Loan (Narrative) (Details)	9 Months Ended
	Sep. 30, 2012 USD ($)	Sep. 30, 2012 CNY
Long-term Loan 1	15.00%	15.00%
Long-term Loan 2	2.50%	2.50%
Long-term Loan 3	$ 236,850
Long-term Loan 4	235,676
Long-term Loan 5		22,000,000
Long-term Loan 6	$ 3,500,000

XML

Schedule of Segment Reporting Information, by Products (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Segment Information Schedule Of Segment Reporting Information, By Products 1	$ 13,393,408
Segment Information Schedule Of Segment Reporting Information, By Products 2	38
Segment Information Schedule Of Segment Reporting Information, By Products 3	20,009,468
Segment Information Schedule Of Segment Reporting Information, By Products 4	52
Segment Information Schedule Of Segment Reporting Information, By Products 5	11,837,940
Segment Information Schedule Of Segment Reporting Information, By Products 6	34
Segment Information Schedule Of Segment Reporting Information, By Products 7	7,860,800
Segment Information Schedule Of Segment Reporting Information, By Products 8	20
Segment Information Schedule Of Segment Reporting Information, By Products 9	1,117,187
Segment Information Schedule Of Segment Reporting Information, By Products 10	3
Segment Information Schedule Of Segment Reporting Information, By Products 11	2,640,027
Segment Information Schedule Of Segment Reporting Information, By Products 12	7
Segment Information Schedule Of Segment Reporting Information, By Products 13	4,271,045
Segment Information Schedule Of Segment Reporting Information, By Products 14	12
Segment Information Schedule Of Segment Reporting Information, By Products 15	4,137,442
Segment Information Schedule Of Segment Reporting Information, By Products 16	11
Segment Information Schedule Of Segment Reporting Information, By Products 17	4,533,375
Segment Information Schedule Of Segment Reporting Information, By Products 18	13
Segment Information Schedule Of Segment Reporting Information, By Products 19	3,894,697
Segment Information Schedule Of Segment Reporting Information, By Products 20	10
Segment Information Schedule Of Segment Reporting Information, By Products 21	35,152,955
Segment Information Schedule Of Segment Reporting Information, By Products 22	100
Segment Information Schedule Of Segment Reporting Information, By Products 23	38,542,434
Segment Information Schedule Of Segment Reporting Information, By Products 24	$ 100

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Restricted Cash (Narrative) (Details)	9 Months Ended
	Sep. 30, 2012
Restricted Cash 1	100.00%

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Other Receivables, Prepayments And Deposits (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Other Receivables, Prepayments and Deposits, Net [Table Text Block]

		September 30,			December 31,
		2012			2011
		(Unaudited)
Advances to staff	$	4,402,117		$	2,201,875
Deposits for public bid		1,341,819			953,444
Prepayments to suppliers		8,698,046			3,284,002
VAT receivable		407,173			1,199,778
Other receivable from sales of scrap materials		409,933			-
Other receivables		734,355			293,224
		15,993,443			7,932,323
Less : Allowance for doubtful accounts		(64,471	)		(72,760	)
	$	15,928,972		$	7,859,563

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Schedule of Assets Used to Secure Long-Term Bank Loans (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Long-term Loan Schedule Of Assets Used To Secure Long-term Bank Loans 1	$ 550,785
Long-term Loan Schedule Of Assets Used To Secure Long-term Bank Loans 2	706,695
Long-term Loan Schedule Of Assets Used To Secure Long-term Bank Loans 3	3,473,800
Long-term Loan Schedule Of Assets Used To Secure Long-term Bank Loans 4	3,456,574
Long-term Loan Schedule Of Assets Used To Secure Long-term Bank Loans 5	4,024,585
Long-term Loan Schedule Of Assets Used To Secure Long-term Bank Loans 6	$ 4,163,269

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Make Good Escrow Agreement (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Make Good Escrow Agreement 1	2,000,000
Make Good Escrow Agreement 2	$ 8,000,000
Make Good Escrow Agreement 3	12,000,000
Make Good Escrow Agreement 4	10.00%
Make Good Escrow Agreement 5	$ 640,000
Make Good Escrow Agreement 6	50.00%
Make Good Escrow Agreement 7	1,000,000
Make Good Escrow Agreement 8	1,000,000
Make Good Escrow Agreement 9	$ 3.2
Make Good Escrow Agreement 10	10.00%

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Schedule of Finance Costs (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Finance Costs Schedule Of Finance Costs 1	$ 471,014
Finance Costs Schedule Of Finance Costs 2	315,910
Finance Costs Schedule Of Finance Costs 3	1,365,126
Finance Costs Schedule Of Finance Costs 4	643,909
Finance Costs Schedule Of Finance Costs 5	3,573
Finance Costs Schedule Of Finance Costs 6	44,792
Finance Costs Schedule Of Finance Costs 7	12,673
Finance Costs Schedule Of Finance Costs 8	118,779
Finance Costs Schedule Of Finance Costs 9	474,587
Finance Costs Schedule Of Finance Costs 10	360,702
Finance Costs Schedule Of Finance Costs 11	1,377,799
Finance Costs Schedule Of Finance Costs 12	$ 762,688

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Schedule of Contracted Commitments (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Commitments And Contingencies Schedule Of Contracted Commitments 1	$ 0
Commitments And Contingencies Schedule Of Contracted Commitments 2	$ 317,342

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Schedule of Short-term Bank Debt (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Short-term Bank Loans Schedule Of Short-term Bank Debt 1	$ 20,069,090
Short-term Bank Loans Schedule Of Short-term Bank Debt 2	13,826,296
Short-term Bank Loans Schedule Of Short-term Bank Debt 3	2,368,500
Short-term Bank Loans Schedule Of Short-term Bank Debt 4	2,356,755
Short-term Bank Loans Schedule Of Short-term Bank Debt 5	22,437,590
Short-term Bank Loans Schedule Of Short-term Bank Debt 6	$ 16,183,051

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Commitments And Contingencies

9 Months Ended

Sep. 30, 2012

Commitments And Contingencies [Text Block]

20.	Commitments and contingencies
	As of September 30, 2012 and December 31, 2011, the Company had the following commitments that were contracted for but not provided in the condensed consolidated financial statements.

		September 30,		December 31,
		2012		2011
		(Unaudited)
Plant and machineries	$	-	$	317,342

Contingencies

As of September 30, 2012 and December 31, 2011, the Company had contingencies arising from the division of Old Juyuan Company into Siping Juyuan, New Juyuan Company and Juyuan Hanyang Pressure Vessels. According to the division agreement of Old Juyuan Company (“Division Agreement”), all parties to the Division Agreement undertook joint and several liabilities for the indebtedness of Old Juyuan Company.

In accordance with ASC 450 “Contingencies”, the Company records a liability in the condensed consolidated financial statements for these contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded.

The Company’s loss in respect of this undertaking is possible but not known or probable. Accordingly, no liability was recognized as of September 30, 2012 and December 31, 2011 respectively. The Company believes that a reasonable estimate of the possible loss range from $Nil to approximately $1,731,000 as of September 30, 2012 (December 31, 2011: from $Nil to approximately $1,741,000)

In accordance with the PRC tax regulations, the Company’s sales are subject to value added tax (“VAT”) at 17% upon the issuance of VAT invoices to its customers. When preparing these financial statements, the Company recognized revenue when goods were delivered, and made full tax provision in accordance with relevant national and local laws and regulations of the PRC.

The Company follows the practice of reporting its revenue for PRC tax purposes when invoices are issued. In the local statutory financial statements prepared under the PRC GAAP, the Company recognized revenue on an “invoice basis” instead of when goods are delivered. Accordingly, despite the fact that the Company has made full tax provision in these condensed consolidated financial statements, the Company may be subject to a penalty for the deferred reporting of tax obligations. The exact amount of penalty cannot be estimated with any reasonable degree of certainty. The management considers it is very unlikely that the tax penalty will be imposed.

The Company’s operations are subject to the laws and regulations in the PRC relating to the generation, storage, handling, emission, transportation and discharge of certain materials, substances and waste into the environment, and various other health and safety matters. Governmental authorizes have the power to enforce compliance with their regulations, and violators may be subject to fines, injunctions or both. The Company must devote substantial financial resources to ensure compliance and believes that it is in substantial compliance with all the applicable laws and regulations.

The Company is currently not involved in any environmental remediation and has not accrued any amounts for environmental remediation relating to its operations. Under existing legislation, management believes that there are no probable liabilities that will have a material adverse effect on the financial position, operating results or cash flows of the Company.

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Income Tax (Narrative) (Details)	9 Months Ended
	Sep. 30, 2012
Income Tax 1	34.00%
Income Tax 2	16.50%
Income Tax 3	25.00%
Income Tax 4	15.00%
Income Tax 5	50.00%
Income Tax 6	12.50%

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Commitments And Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Contracted Commitments [Table Text Block]

		September 30,		December 31,
		2012		2011
		(Unaudited)
Plant and machineries	$	-	$	317,342

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Schedule of Other Nonoperating Income (Expense) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Other Income Schedule Of Other Nonoperating Income (expense) 1	$ 75,670
Other Income Schedule Of Other Nonoperating Income (expense) 2	57,684
Other Income Schedule Of Other Nonoperating Income (expense) 3	202,480
Other Income Schedule Of Other Nonoperating Income (expense) 4	205,103
Other Income Schedule Of Other Nonoperating Income (expense) 5	135
Other Income Schedule Of Other Nonoperating Income (expense) 6	3,554
Other Income Schedule Of Other Nonoperating Income (expense) 7	11,060
Other Income Schedule Of Other Nonoperating Income (expense) 8	546,250
Other Income Schedule Of Other Nonoperating Income (expense) 9	206,986
Other Income Schedule Of Other Nonoperating Income (expense) 10	1,037
Other Income Schedule Of Other Nonoperating Income (expense) 11	206,986
Other Income Schedule Of Other Nonoperating Income (expense) 12	159,388
Other Income Schedule Of Other Nonoperating Income (expense) 13	0
Other Income Schedule Of Other Nonoperating Income (expense) 14	0
Other Income Schedule Of Other Nonoperating Income (expense) 15	229,461
Other Income Schedule Of Other Nonoperating Income (expense) 16	0
Other Income Schedule Of Other Nonoperating Income (expense) 17	0
Other Income Schedule Of Other Nonoperating Income (expense) 18	0
Other Income Schedule Of Other Nonoperating Income (expense) 19	0
Other Income Schedule Of Other Nonoperating Income (expense) 20	4,221
Other Income Schedule Of Other Nonoperating Income (expense) 21	282,791
Other Income Schedule Of Other Nonoperating Income (expense) 22	62,275
Other Income Schedule Of Other Nonoperating Income (expense) 23	649,987
Other Income Schedule Of Other Nonoperating Income (expense) 24	$ 914,962

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Other Payables and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Other Payable and Accrued Liabilities [Table Text Block]

		September 30,		December 31,
		2012		2011
		(Unaudited)
Accrued audit fee	$	-	$	105,000
Receipt in advance from customers		16,620,332		11,003,379
Pension payable		634,600		631,506
Salaries payable		462,971		417,726
Advances from third parties		675,906		58,026
Security deposit received for project bids		811,970		2,656
Other payables and accrued expenses		3,508,330		3,635,517
	$	22,714,109	$	15,853,810

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Land Use Rights (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Land Use Rights 1	$ 42,591
Land Use Rights 2	16,379
Land Use Rights 3	22,000
Land Use Rights 4	$ 5,150,000

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Schedule of Property, Plant and Equipment (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 1	$ 6,164,160
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 2	6,133,593
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 3	4,865,416
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 4	4,275,088
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 5	788,288
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 6	715,153
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 7	483,020
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 8	388,052
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 9	12,300,884
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 10	11,511,886
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 11	(4,648,848)
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 12	(3,808,279)
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 13	7,652,036
Property, Plant And Equipment, Net Schedule Of Property, Plant And Equipment 14	$ 7,703,607

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Schedule of Noncontrolling Interests (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 1	$ (565,365)
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 2	(61,891)
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 3	76,833
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 4	(341,986)
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 5	0
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 6	(38,336)
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 7	(2,866)
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 8	(8,025)
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 9	(491,398)
Summary Of Significant Accounting Policies Schedule Of Noncontrolling Interests 10	$ (450,238)

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Trade Receivables, Net (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Trade Receivables, Net 1	$ 9,474,000
Trade Receivables, Net 2	$ 5,421,295

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Restricted Cash

9 Months Ended

Sep. 30, 2012

Restricted Cash [Text Block]

4. Restricted cash

		September 30,		December 31,
		2012		2011
		(Unaudited)
Bank deposits held as collateral for performance bonds issued by the banks to customers	$	1,653,405	$	1,725,546

When the Company’s customers request to receive performance bonds issued by the banks in relation to the Company’s performance under the sales contracts, the Company has to place deposits with banks equal to 100% of the bonds amount at the time of issuance.

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Schedule of Restricted Cash and Cash Equivalents (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Restricted Cash Schedule Of Restricted Cash And Cash Equivalents 1	$ 1,653,405
Restricted Cash Schedule Of Restricted Cash And Cash Equivalents 2	$ 1,725,546

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Segment Reporting Information, by Products [Table Text Block]

		Nine months ended September 30,
		2012	%		2011	%
		(Unaudited)			(Unaudited)
Plate heat exchanger	$	13,393,408	38	$	20,009,468	52
Heat exchange unit		11,837,940	34		7,860,800	20
Air-cooled heat exchanger		1,117,187	3		2,640,027	7
Shell-and-tube heat exchanger		4,271,045	12		4,137,442	11
Others		4,533,375	13		3,894,697	10
	$	35,152,955	100	$	38,542,434	100

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2012

Basis of presentation and consolidation [Policy Text Block]

Basis of presentation and consolidation

The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements and accompanying notes thereto for the year ended December 31, 2011 filed with the SEC in the Company’s Form 10-K on March 30, 2012.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three-month and nine-month periods have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year.

The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions have been eliminated on consolidation.

Concentration of credit risk [Policy Text Block]

Concentration of credit risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, restricted cash, trade receivables and other receivables. As of September 30, 2012 and December 31, 2011, substantially all of the Company’s cash and cash equivalents and restricted cash were held by major financial institutions located in the PRC, which management believes are of high credit quality. With respect to trade receivables, the Company extends credit based on an evaluation of the customer’s financial condition. The Company generally does not require collateral for trade receivables and maintains an allowance for doubtful accounts of trade and other receivables.

Fair value of financial instruments [Policy Text Block]

Fair value of financial instruments

Accounting Standards Codification (“ASC”) Topic 820 requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which fair value option was not elected. Except for long-term loan disclosed as below, the carrying amounts of other financial assets and liabilities approximated their fair values due to short maturities or the applicable interest rates approximated the current market rates:

		As of				As of
		September 30, 2012				December 31, 2011
		Carrying		Fair value		Carrying		Fair value
		amount				amount
Long terms loans	$	3,789,600	$	3,841,954	$	4,713,510	$	4,755,538

Noncontrolling interests [Policy Text Block]

Noncontrolling interests

Noncontrolling interest on the condensed consolidated balance sheets resulted from the consolidation of 75% owned subsidiary, Beijing Juyuan.

The schedule below illustrates the movements in the noncontrolling interests:

		Nine months ended September 30,
		(Unaudited)
		2012			2011
Balance at beginning of period	$	(565,365	)	$	(61,891	)
Net income/(loss) attributable to non-controlling interests		76,833			(341,986	)
Dissolution of subsidiary		-			(38,336	)
Foreign currency translation adjustments		(2,866	)		(8,025	)
Balance at end of period	$	(491,398	)	$	(450,238	)

Recently issued accounting pronouncements [Policy Text Block]

Recently issued accounting pronouncements

In April 2011, the FASB issued ASU 2011-03, “Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements”. The amendments in this ASU remove from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion. The guidance in this ASU is effective for the first interim or annual period beginning on or after December 15, 2011. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Early adoption is not permitted. The adoption of ASU 2011-03 has no material impact on the Company’s condensed consolidated financial statements.

In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. The FASB and the International Accounting Standard Board (IASB) works together to ensure that fair value has the same meaning in U.S. GAAP and IFRSs and that their respective fair value measurement and disclosure requirements are the same (except for minor differences in wording and style). The Boards concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The amendments in this ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted. The adoption of ASU 2011-04 has no material impact on the Company’s condensed consolidated financial statements.

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”. In this ASU, the entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This Update eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments in this ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. In December 2011, ASU 2011-12 “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” was issued. The amendments in this Update supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to re-deliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. The amendments in this ASU are to be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early application by public entities is permitted. The adoption of ASU 2011-05 has no material impact on the Company’s condensed consolidated financial statements.

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Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Text Block]

23.	Subsequent events
	The Company has evaluated all events or transactions that occurred through the date the condensed consolidated financial statements were issued, and has determined that there were no material recognizable nor subsequent events or transactions which would require recognition or disclosure in the condensed consolidated financial statements.

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Common Stock (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012 warrant
Common Stock 1	4,453,500
Common Stock 2	21.80%
Common Stock 3	$ 14,251,200
Common Stock 4	$ 3.2
Common Stock 5	13,390,000
Common Stock 6	222,675
Common Stock 7	222,675
Common Stock 8	5.00%
Common Stock 9	3.84
Common Stock 10	$ 396,939

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Corporate Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 2012 USD ($) D	Sep. 30, 2012 CNY
Corporate Information 1	$ 0.001
Corporate Information 2	$ 0.001
Corporate Information 3	14,800,000	14,800,000
Corporate Information 4	92.50%	92.50%
Corporate Information 5	100.00%	100.00%
Corporate Information 6	100.00%	100.00%
Corporate Information 7	100.00%	100.00%
Corporate Information 8		60,000,000
Corporate Information 9	8,795,075
Corporate Information 10	75.00%	75.00%
Corporate Information 11	4,805,387	4,805,387
Corporate Information 12	180	180
Corporate Information 13	3,246,160
Corporate Information 14	90	90
Corporate Information 15	10,240,786	10,240,786
Corporate Information 16	7,291,440
Corporate Information 17	1,467,555
Corporate Information 18	$ 37,630
Corporate Information 19	99.50%	99.50%
Corporate Information 20	0.50%	0.50%

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Summary Of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Fair Value, by Balance Sheet Grouping [Table Text Block]

		As of				As of
		September 30, 2012				December 31, 2011
		Carrying		Fair value		Carrying		Fair value
		amount				amount
Long terms loans	$	3,789,600	$	3,841,954	$	4,713,510	$	4,755,538

Schedule of Noncontrolling Interests [Table Text Block]

		Nine months ended September 30,
		(Unaudited)
		2012			2011
Balance at beginning of period	$	(565,365	)	$	(61,891	)
Net income/(loss) attributable to non-controlling interests		76,833			(341,986	)
Dissolution of subsidiary		-			(38,336	)
Foreign currency translation adjustments		(2,866	)		(8,025	)
Balance at end of period	$	(491,398	)	$	(450,238	)

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Restricted Cash (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Restricted Cash and Cash Equivalents [Table Text Block]

		September 30,		December 31,
		2012		2011
		(Unaudited)
Bank deposits held as collateral for performance bonds issued by the banks to customers	$	1,653,405	$	1,725,546

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Summary Of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Summary Of Significant Accounting Policies [Text Block]

3. Summary of significant accounting policies

Basis of presentation and consolidation

The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements and accompanying notes thereto for the year ended December 31, 2011 filed with the SEC in the Company’s Form 10-K on March 30, 2012.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the three-month and nine-month periods have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year.

The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter-company balances and transactions have been eliminated on consolidation.

Concentration of credit risk

Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash and cash equivalents, restricted cash, trade receivables and other receivables. As of September 30, 2012 and December 31, 2011, substantially all of the Company’s cash and cash equivalents and restricted cash were held by major financial institutions located in the PRC, which management believes are of high credit quality. With respect to trade receivables, the Company extends credit based on an evaluation of the customer’s financial condition. The Company generally does not require collateral for trade receivables and maintains an allowance for doubtful accounts of trade and other receivables.

During the three-month and nine-month periods ended September 30, 2012 and 2011, the Company did not have any customers which represented 10% or more of the Company’s condensed consolidated sales revenue.

As of September 30, 2012 and December 31, 2011, the Company did not have any balance of gross trade receivable due from individual customer that represented 10% or more of the Company’s gross trade receivables.

Fair value of financial instruments

Accounting Standards Codification (“ASC”) Topic 820 requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which fair value option was not elected. Except for long-term loan disclosed as below, the carrying amounts of other financial assets and liabilities approximated their fair values due to short maturities or the applicable interest rates approximated the current market rates:

		As of				As of
		September 30, 2012				December 31, 2011
		Carrying		Fair value		Carrying		Fair value
		amount				amount
Long terms loans	$	3,789,600	$	3,841,954	$	4,713,510	$	4,755,538

Noncontrolling interests

Noncontrolling interest on the condensed consolidated balance sheets resulted from the consolidation of 75% owned subsidiary, Beijing Juyuan.

The schedule below illustrates the movements in the noncontrolling interests:

		Nine months ended September 30,
		(Unaudited)
		2012			2011
Balance at beginning of period	$	(565,365	)	$	(61,891	)
Net income/(loss) attributable to non-controlling interests		76,833			(341,986	)
Dissolution of subsidiary		-			(38,336	)
Foreign currency translation adjustments		(2,866	)		(8,025	)
Balance at end of period	$	(491,398	)	$	(450,238	)

Recently issued accounting pronouncements

In April 2011, the FASB issued ASU 2011-03, “Transfers and Servicing (Topic 860): Reconsideration of Effective Control for Repurchase Agreements”. The amendments in this ASU remove from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion. The guidance in this ASU is effective for the first interim or annual period beginning on or after December 15, 2011. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Early adoption is not permitted. The adoption of ASU 2011-03 has no material impact on the Company’s condensed consolidated financial statements.

In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. The FASB and the International Accounting Standard Board (IASB) works together to ensure that fair value has the same meaning in U.S. GAAP and IFRSs and that their respective fair value measurement and disclosure requirements are the same (except for minor differences in wording and style). The Boards concluded that the amendments in this ASU will improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with U.S. GAAP and IFRSs. The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. The amendments in this ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early application by public entities is not permitted. The adoption of ASU 2011-04 has no material impact on the Company’s condensed consolidated financial statements.

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”. In this ASU, the entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This Update eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments in this ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. In December 2011, ASU 2011-12 “Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” was issued. The amendments in this Update supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to re-deliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. The amendments in this ASU are to be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Early application by public entities is permitted. The adoption of ASU 2011-05 has no material impact on the Company’s condensed consolidated financial statements.

In September 2011, the FASB issued ASU 2011-08, “Intangibles - Goodwill and Other (Topic 350)”. The amendments in this update will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment. The amendments in this ASU are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The adoption of this ASU has no material impact on the Company’s condensed consolidated financial statements

In September 2011, the FASB issued ASU 2011-09, “Compensation - Retirement Benefits - Multiemployer Plans (Subtopic 715 – 80)”. The amendments in this update require additional disclosures about an employer's participation in a multiemployer plan. ASU 2011-09 is effective for annual periods for fiscal years ending after December 15, 2011, and early adoption is permitted. ASU 2011-09 should be applied retrospectively for all prior periods presented. The adoption of this ASU has no material impact on the Company’s condensed consolidated financial statements.

In December 2011, the FASB issued ASU 2011-11, “Balance Sheet (Topic 210)”. The objective of this ASU is to provide enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. This includes the effect or potential effect of rights of setoff associated with an entity’s recognized assets and recognized liabilities within the scope of this Update. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. An entity is required to apply the amendments retrospectively for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The management is assessing the impact of this ASU on the Company’s condensed consolidated financial statements.

In July 2012, the FASB issued ASU 2012-02 on impairment testing for indefinite-lived intangible assets. This ASU amends FASB Codification Topic 350, Intangibles-Goodwill and Other to allow, but not require, an entity, when performing its annual or more frequent indefinite-lived intangible asset impairment test, to first assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount. ASU2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The management is assessing the impact of this ASU on the Company’s condensed consolidated financial statements.

Other recently issued ASUs were assessed and determined to be either not applicable or are expected to have a minimal impact on the Company’s condensed consolidated balance sheet and condensed consolidated statements of income and comprehensive income .

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Trade Receivables, Net (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Accounts Receivable [Table Text Block]

		September 30,			December 31,
		2012			2011
		(Unaudited)
Trade receivables	$	37,598,034		$	35,600,032
Less : Allowance for doubtful accounts		(3,508,692	)		(2,026,809	)
	$	34,089,342		$	33,573,223

Schedule of Allowance for Doubtful Account [Table Text Block]

		Nine months ended,
		September 30
		(Unaudited)
		2012		2011
Balance at beginning of period	$	2,026,809	$	1,353,375
Addition/(reversal) of doubt debt expense, net		1,472,714		(107,156	)
Translation adjustments		9,169		38,454
Balance at end of period	$	3,508,692	$	1,284,673

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Other Income (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

		Three months ended				Nine months ended
		September 30,				September 30,
		(Unaudited)				(Unaudited)
		2012		2011		2012		2011
Refund of value-added tax under Tax Concession	$	75,670	$	57,684	$	202,480	$	205,103
Government grants		135		3,554		11,060		546,250
Sales of scrap materials		206,986		1,037		206,986		159,388
Service income for installation of equipment		-		-		229,461		-
Others, net		-		-		-		4,221
	$	282,791	$	62,275	$	649,987	$	914,962

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Other Payables and Accrued Expenses (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Other Payables And Accrued Expenses 1	$ 3,254,319
Other Payables And Accrued Expenses 2	$ 3,237,831

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Schedule of Assets Used to Secure Short-Term Bank Loans (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 1	$ 9,474,000
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 2	5,421,295
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 3	4,824,536
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 4	4,972,769
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 5	905,831
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 6	1,019,045
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 7	15,204,367
Short-term Bank Loans Schedule Of Assets Used To Secure Short-term Bank Loans 8	$ 11,413,109

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Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 7,233,578	$ 7,340,068
Restricted cash	1,653,405	1,725,546
Trade receivables, net	34,089,342	33,573,223
Counter guarantee receivable	236,850	235,676
Bills receivable	1,742,940	1,415,890
Other receivables, prepayments and deposits, net	15,928,972	7,859,563
Inventories, net	38,357,642	32,531,053
Deferred tax assets	259,375	251,561
Total current assets	99,502,104	84,932,580
Retention receivable	735,356	1,184,382
Counter guarantee receivable	236,850	235,676
Property, plant and equipment, net	7,652,036	7,703,607
Deposit for acquisition of property, plant and equipment	0	345,658
Land use rights	6,129,099	1,019,045
Deposits for land use rights	0	4,389,330
TOTAL ASSETS	114,255,445	99,810,278
Current liabilities
Trade payables	7,141,219	6,619,676
Other payables and accrued expenses	22,714,109	15,853,810
Income tax payable	265,867	1,389,140
Short-term bank loans	22,437,590	16,183,051
Current maturities of long-term loan	1,894,800	1,885,404
Total current liabilities	54,453,585	41,931,081
Long-term loan	1,894,800	2,828,106
TOTAL LIABILITIES	56,348,385	44,759,187
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDERS' EQUITY
Preferred stock : par value of $0.001 per share Authorized 10,000,000 shares; none issued and outstanding	0	0
Common stock : par value $0.001 per share Authorized 190,000,000 shares; issued and outstanding 20,453,500 shares as of September 30, 2012 and December 31, 2011	20,454	20,454
Additional paid-in capital	27,396,455	27,396,455
Statutory reserve	3,204,265	2,979,827
Accumulated other comprehensive income	4,002,996	3,721,877
Retained earnings	23,774,288	21,497,843
Total THT Heat Transfer Technology, Inc. stockholders' equity	58,398,458	55,616,456
Non-controlling interests	(491,398)	(565,365)
TOTAL EQUITY	57,907,060	55,051,091
TOTAL LIABILITIES AND EQUITY	$ 114,255,445	$ 99,810,278

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Summary Of Significant Accounting Policies (Narrative) (Details)	9 Months Ended
	Sep. 30, 2012
Summary Of Significant Accounting Policies 1	10.00%
Summary Of Significant Accounting Policies 2	10.00%
Summary Of Significant Accounting Policies 3	75.00%

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Corporate Information

9 Months Ended

Sep. 30, 2012

Corporate Information [Text Block]

1.	Corporate information
	THT Heat Transfer Technology, Inc. (the “Company” or “THT” or the “Surviving Corporation”) is the surviving corporation pursuant to the Reincorporation Merger as detailed below. The Company’s shares are quoted for trading on the Nasdaq Global Market in the United States.

Reincorporation Merger

On November 24, 2009, BTHC VIII, Inc. ("BTHC") entered into an Agreement and Plan of Merger (the "Merger Agreement") with THT, a Nevada corporation and wholly-owned subsidiary of BTHC. Pursuant to the Merger Agreement, BTHC agreed to merge with and into THT, with THT continuing as the surviving entity (the "Reincorporation Merger"). The Reincorporation Merger became effective on November 30, 2009 (the "Effective Time").

As a result of the Reincorporation Merger, the legal domicile of the Surviving Corporation is Nevada. The Merger Agreement and Reincorporation Merger were duly approved by the written consent of stockholders of BTHC owning at least a majority of the outstanding shares of BTHC's common stock, dated September 16, 2009.

Pursuant to the terms of the Merger Agreement, (i) BTHC merged into THT, with THT being the surviving corporation, and BTHC thereby changed its name to THT Heat Transfer Technology, Inc.; (ii) from and after the Effective Time, THT possesses all of the rights, privileges, powers, and franchises of BTHC, and BTHC's debts and liabilities became the debts and liabilities of THT; (iii) BTHC's existing Board of Directors and officers became the Board of Directors and officers of the Surviving Corporation; and (iv) the Articles of Incorporation and By-laws of THT now govern the Surviving Corporation.

The Reincorporation Merger did not result in any change in headquarters, business, jobs, management, location of any of offices or facilities, number of employees, assets, liabilities or net worth (other than as a result of the costs incident to the Reincorporation Merger, which are immaterial). Management, including all directors and officers, remain the same in connection with the Reincorporation Merger. There were no substantive changes in the employment agreements for executive officers or in other direct or indirect interests of the current directors or executive officers as a result of the Reincorporation Merger.

As a result of the Reincorporation Merger, each outstanding share of BTHC's common stock, par value $0.001 per share, was automatically converted into one share of THT's common stock, par value $0.001 per share. Each outstanding certificate representing shares of BTHC's common stock is deemed, without any action by BTHC's stockholders, to represent the same number of shares of THT's common stock.

Reorganization

Before the Reincorporation Merger and on June 30, 2009, BTHC entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Megaway International Holdings Limited, a British Virgin Islands corporation ("Megaway"), and its sole shareholder, Wisetop International Holdings Limited, a British Virgin Islands corporation ("Wisetop"). Pursuant to the Share Exchange Agreement, Megaway became a wholly-owned subsidiary of the Company and Wisetop was issued 14,800,000 shares of the Company's common stock, which, after giving effect to the Cancellation Agreement disclosed below, constituted 92.5% of the Company’s issued and outstanding capital stock on a fully-diluted basis as of and immediately after the consummation of the transactions contemplated by the Share Exchange Agreement, in exchange for 100% of the issued and outstanding shares of Megaway.

Megaway was dormant since its incorporation until it acquired 100% of the outstanding capital stock of Star Wealth International Holdings Limited ("Star Wealth"), a Hong Kong corporation on May 5, 2009. Star Wealth was also dormant since its incorporation until it acquired 100% of the equity interest of Siping City Juyuan Hanyang Plate Heat Exchanger Co., Ltd. (“Siping Juyuan”), a PRC corporation, on May 10, 2009.

On May 10, 2009, Star Wealth entered into an equity transfer agreement with all of the shareholders of Siping Juyuan to acquire their entire interests in Siping Juyuan at a total cash consideration of RMB60,000,000 ($8,795,075). The equity transfer agreement was approved by the local government of the People’s Republic of China (the “PRC”) on May 31, 2009.

Siping Juyuan has a 75% directly owned subsidiary, Beijing Juyuan Hanyang Heat Exchange Equipment Co. Ltd (“Beijing Juyuan”).

As a condition precedent to the consummation of the Share Exchange Agreement, on June 30, 2009, the Company entered into a cancellation agreement, or the Cancellation Agreement, with Mr. Gerald Pascale, who was the major stockholder of the Company immediately before the Share Exchange Agreement and served as the Company’s sole director and officer from February 12, 2009 until June 30, 2009 when he was replaced by Guohong Zhao (“Mr. Zhao”), a founder of Siping Juyuan, whereby Mr. Pascale agreed to the cancellation of 4,805,387 shares of the Company’s common stock owned by him.

Mr. Zhao was appointed as the Company’s director and chief executive officer effective upon the closing of the above reverse acquisition. In addition, the Company’s executive officers were replaced by the executive officers of Siping Juyuan upon the closing of the reverse acquisition.

On June 30, 2009, Mr. Zhao entered into an option agreement with Ms. Jinghua Zhao, the sole shareholder of Wisetop, pursuant to which Mr. Zhao was granted an option, exercisable after 180 days, to acquire all of the equity interests of Wisetop owned by Ms. Jinghua Zhao at an exercise price of $3,246,160. This option expires on June 30, 2011. On May 16, 2011, an amendment was signed by both parties extending the exercise period until June 30, 2012. Mr. Zhao exercised these options in 2012.

Also on June 30, 2009, Wisetop entered into separate option agreements with the other original stockholders of Siping Juyuan, pursuant to which such stockholders were granted options, exercisable after 90 days, to purchase an aggregate of 10,240,786 shares of the Company’s common stock owned by Wisetop at total exercise price of $7,291,440. The stockholders exercised these options on December 17, 2010.

On November 30, 2010, Juyuan Heat Equipment (Tianjin) Co., Ltd. (“Tianjin Juyuan”) was established in the PRC, of which Siping Juyuan and Mr. Zhao contributed $1,467,555 and $37,630 respectively to its registered capital, representing 99.5% and 0.5% equity interest in Tianjin Juyuan respectively. On September 22, 2011, Tianjin Juyuan was formally dissolved with the approval of the Tianjin Industrial and Commercial Administrative Bureau Baodi Branch.

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Commitments And Contingencies (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Commitments And Contingencies 1	$ 0
Commitments And Contingencies 2	1,731,000
Commitments And Contingencies 3	0
Commitments And Contingencies 4	$ 1,741,000
Commitments And Contingencies 5	17.00%

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Property, Plant And Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Property, Plant and Equipment [Table Text Block]

		September 30,			December 31,
		2012			2011
		(Unaudited)
Cost
Buildings	$	6,164,160		$	6,133,593
Plant and machinery		4,865,416			4,275,088
Office equipment		788,288			715,153
Motor vehicles		483,020			388,052
		12,300,884			11,511,886
Accumulated depreciation		(4,648,848	)		(3,808,279	)
Net	$	7,652,036		$	7,703,607

Schedule of Depreciation of Other Assets and Expenses [Table Text Block]

		Nine months ended
		September 30,
		(Unaudited)
		2012		2011
Cost of sales and overheads of inventories	$	402,498	$	324,592
Research and development expenses		173,332		179,339
Administrative expenses		246,281		180,249
	$	822,111	$	684,180

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Schedule of Other Receivables, Prepayments and Deposits, Net (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 1	$ 4,402,117
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 2	2,201,875
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 3	1,341,819
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 4	953,444
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 5	8,698,046
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 6	3,284,002
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 7	407,173
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 8	1,199,778
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 9	409,933
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 10	0
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 11	734,355
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 12	293,224
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 13	15,993,443
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 14	7,932,323
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 15	(64,471)
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 16	(72,760)
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 17	15,928,972
Other Receivables, Prepayments And Deposits Schedule Of Other Receivables, Prepayments And Deposits, Net 18	$ 7,859,563

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Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

17.	Earnings per share
	The basic earnings per share is calculated using the net income attributable to the Company’s common stockholders and the weighted average number of shares outstanding during the reporting periods.
	During the reporting periods, certain share-based awards were not included in the computation of diluted earnings per share because they were anti-dilutive. Accordingly, the basic and diluted earnings per share are the same.

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Land Use Rights (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Land Use Rights [Table Text Block]

		September 30,			December 31,
		2012			2011
		(Unaudited)
Land use rights	$	6,259,843		$	1,106,788
Accumulated amortization		(130,744	)		(87,743	)
	$	6,129,099		$	1,019,045

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Defined Contribution Plan

9 Months Ended

Sep. 30, 2012

Defined Contribution Plan [Text Block]

19.

Defined contribution plan

Pursuant to the relevant PRC regulations, the Company is required to make contributions at a rate of 30.6% to 31.2% of employees’ salaries and wages to a defined contribution retirement scheme organized by a state-sponsored social insurance plan in respect of the retirement benefits for the Company’s employees in the PRC. The only obligation of the Company with respect to the retirement scheme is to make the required contributions under the plan. No forfeited contribution is available to reduce the contribution payable in the future years. The defined contribution plan contributions were charged to the condensed consolidated statements of income and comprehensive income. The Company contributed $218,812 and $420,281 for the nine months ended September 30, 2012 and 2011, respectively.

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Schedule of Depreciation of Other Assets and Expenses (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 1	$ 402,498
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 2	324,592
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 3	173,332
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 4	179,339
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 5	246,281
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 6	180,249
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 7	822,111
Property, Plant And Equipment, Net Schedule Of Depreciation Of Other Assets And Expenses 8	$ 684,180

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Description Of Business

9 Months Ended

Sep. 30, 2012

Description Of Business [Text Block]

2.	Description of business
	The Company is a holding company whose primary business are conducted through its subsidiaries, namely Siping Juyuan which is located in the Jilin Province and Beijing Juyuan which is located in Beijing City of the PRC. The Company is engaged in the manufacturing and trading of plate heat exchangers and various related products.

Siping Juyuan was established in the PRC on May 31, 2006 following the division (the “Division”) of Siping City Juyuan Heat Exchange Equipment Co., Ltd. (“Old Juyuan Company”) into three companies, namely Siping Juyuan, Siping City Juyuan Heat Exchange Equipment Co., Ltd. (“New Juyuan Company”) and Siping City Juyuan Hanyang Pressure Vessels Co., Ltd (“Juyuan Hanyang Pressure Vessels”)

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Preferred Stock, Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	190,000,000	190,000,000
Common Stock, Shares, Issued	20,453,500	20,453,500
Common Stock, Shares, Outstanding	20,453,500	20,453,500

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Short-Term Bank Loans

9 Months Ended

Sep. 30, 2012

Short-Term Bank Loans [Text Block]

12. Short-term bank loans

		September 30,		December 31,
		2012		2011
		(Unaudited)
Secured bank loans	$	20,069,090	$	13,826,296
Unsecured bank loans		2,368,500		2,356,755
	$	22,437,590	$	16,183,051

All bank loans are repayable within one year and carry annual interest from 100% to 120% of the benchmark interest rate published by the People’s Bank of China (the “PBOC”).

The bank loans were secured by the following assets of the Company :-

		September 30,		December 31,
		2012		2011
		(Unaudited)
Trade receivables (Note 5)	$	9,474,000	$	5,421,295
Property, plant and equipment (Note 9)		4,824,536		4,972,769
Land use rights (Note 10)		905,831		1,019,045
	$	15,204,367	$	11,413,109

The unsecured bank loans as of September 30, 2012 and December 31, 2011 were guaranteed by Mr. Zhao and certain third parties. The third parties received 2% of the loan balance as compensation for acting as guarantors for the Company. The Company also made the counter guarantee deposits to the guarantors of $236,850 and $235,676 as of September 30, 2012 and December 31, 2011, respectively. These deposits will be returned to the Company upon the Company’s settlement of the loans.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2012	Nov. 13, 2012
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2012
Trading Symbol	thti
Entity Registrant Name	THT Heat Transfer Technology, Inc.
Entity Central Index Key	0001375686
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		20,453,500
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

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Long-Term Loan

9 Months Ended

Sep. 30, 2012

Long-Term Loan [Text Block]

13.	Long-term loan
	The loan is borrowed from a financial institution, bearing interest at an annual rate of 15% over the benchmark rate of the PBOC for the three-year long-term loans and guaranteed by a third party.
	The loan was secured by the following assets of the Company :-

		September 30,		December 31,
		2012		2011
		(Unaudited)
Property, plant and equipment (Note 9)	$	550,785	$	706,695
Inventories (Note 7)		3,473,800		3,456,574
	$	4,024,585	$	4,163,269

As a condition to the guarantees for the loans, the Company paid 2.5% of the loan balance to the third party as compensation for acting as guarantor for the Company and made the counter guarantee deposits to the guarantor of $236,850 and $235,676 as of September 30, 2012 and December 31, 2011, respectively. These deposits will be returned to the Company upon the Company’s settlement of the loans.

During the nine months ended September 30, 2012, there was no other covenant requirement under the bank loans granted to the Company except that the inventory level cannot be lower than RMB22 million (approximately $3.5 million) during the loan period.

There was no other covenant requirement under the bank loans agreement for the nine months ended September 30, 2012 and 2011.

Maturities of the loans as of September 30, 2012 are as follow :-

Year
2012	$	947,400
2013		1,894,800
2014		947,400
	$	3,789,600

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Condensed Consolidated Statements of Income and Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Sales revenue	$ 12,508,183	$ 10,309,768	$ 35,152,955	$ 38,542,434
Cost of sales	(7,325,961)	(5,799,160)	(20,549,861)	(21,911,721)
Gross profit	5,182,222	4,510,608	14,603,094	16,630,713
Operating expenses
Administrative expenses	2,382,820	1,645,904	4,423,011	3,386,046
Research and development expenses	315,229	365,037	814,509	1,149,699
Selling expenses	1,637,436	2,300,748	5,845,212	5,524,796
Total operating expenses	4,335,485	4,311,689	11,082,732	10,060,541
Income from operations	846,737	198,919	3,520,362	6,570,172
Interest income	7,055	10,568	19,796	34,484
Other income	282,791	62,275	649,987	914,962
Finance costs	(474,587)	(360,702)	(1,377,799)	(762,688)
Income/(loss) before income taxes and noncontrolling interests	661,996	(88,940)	2,812,346	6,756,930
Income taxes	(123,732)	(89,283)	(234,630)	(1,006,821)
Net income/(loss) before noncontrolling interests	538,264	(178,223)	2,577,716	5,750,109
Net (income)/loss attributable to noncontrolling Interests	(34,270)	300,336	(76,833)	341,986
Net income attributable to THT Heat Transfer Technology, Inc. common stockholders	503,994	122,113	2,500,883	6,092,095
Net income /(loss) before noncontrolling interests	538,264	(178,223)	2,577,716	5,750,109
Other comprehensive (loss)/income
Foreign currency translation adjustments	(108,319)	466,534	278,253	1,451,520
Comprehensive income	429,945	288,311	2,855,969	7,201,629
Comprehensive (income)/loss attributable to noncontrolling interests	(35,274)	306,588	(73,967)	350,011
Comprehensive income attributable to THT Heat Transfer Technology, Inc. common stockholders	$ 394,671	$ 594,899	$ 2,782,002	$ 7,551,640
Earnings per share attributable to THT Heat Transfer Technology, Inc. common stockholders
- Basic and diluted	$ 0.02	$ 0.01	$ 0.12	$ 0.3
Weighted average number of shares outstanding
- Basic and diluted	20,453,500	20,453,500	20,453,500	20,453,500

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Inventories, net

9 Months Ended

Sep. 30, 2012

Inventories, net [Text Block]

7. Inventories, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Raw materials	$	6,457,169		$	6,198,179
Work-in-progress		31,607,833			25,791,085
Finished goods		311,906			560,959
		38,376,908			32,550,223
Allowance for obsolete inventories		(19,266	)		(19,170	)
	$	38,357,642		$	32,531,053

No further allowance for obsolete inventories was recognized during the nine months ended September 30, 2012 and 2011.

As of September 30, 2012 and December 31, 2011, inventories with a value of $3,473,800 and $3,456,574 respectively, were pledged under floating charge for certain loan agreement (Note 13).

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Other Receivables, Prepayments And Deposits

9 Months Ended

Sep. 30, 2012

Other Receivables, Prepayments And Deposits [Text Block]

6. Other receivables, prepayments and deposits, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Advances to staff	$	4,402,117		$	2,201,875
Deposits for public bid		1,341,819			953,444
Prepayments to suppliers		8,698,046			3,284,002
VAT receivable		407,173			1,199,778
Other receivable from sales of scrap materials		409,933			-
Other receivables		734,355			293,224
		15,993,443			7,932,323
Less : Allowance for doubtful accounts		(64,471	)		(72,760	)
	$	15,928,972		$	7,859,563

The advances to staff mainly represent staff drawings for handling selling and logistic activities for the Company in the ordinary course of business.

Reversal of allowance for doubtful accounts of $8,657 was recognized during the nine months ended September 30, 2012 and no further allowance for doubtful accounts was recognised for the nine months ended September 30, 2011.

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Make Good Escrow Agreement

9 Months Ended

Sep. 30, 2012

Make Good Escrow Agreement [Text Block]

18.	Make good escrow agreement
	In connection with a private placement completed on November 2, 2010, Mr. Zhao, the major shareholder of the Company, entered into a make good escrow agreement (the "Escrow Arrangement") with the investors under the private placement pursuant to which he agreed to place 2,000,000 shares of our common stock (the “Make Good Shares”) owned by him in an escrow account administrated by an escrow agent. In the event that the Company failed to achieve the After Tax Net Income (“ATNI”) targets of at least $8 million in 2010 and $12 million in 2011, the escrow agent was authorized to distribute the Make Good Shares to the investors on a pro-rata basis for any shortfall.
	Pursuant to ASC 718-10-S99-2, the Company considers the aforementioned escrow arrangement as an inducement to facilitate the private placement on behalf of the Company rather than as compensatory and accordingly, adopted ASC 718-10-S99-2 to recognize this arrangement. The management estimated the probability of the Company not achieving the 2010 Guaranteed ATNI and 2011 Guaranteed ATNI to be 10% (the “Probability %”) and calculated the fair value of the escrow arrangement with reference to the Probability % and the Placement Price. The calculated fair value of $640,000 was deducted from the placement proceeds with a corresponding credit in additional paid-in capital, resulting in no net change in the Company’s equity.
	As the target was met for 2010 Guaranteed ATNI, 50% of the Make Good Shares or 1,000,000 shares were returned to stockholders in 2011. As the Company did not meet the 2011 Guaranteed ATNI, the pledgor is required to transfer the 2011 Make Good Shares or remaining 1,000,000 shares to the investors on a pro-rata basis.
	In July, 2012, the Escrow Arrangement was amended. In the event that the Investors’ shares are acquired by a third party at a price no less than $3.2 per share multiplied by the annual compound interest rate at 10% before January 12, 2013, Make Good Pledgor’s shares shall be returned to Make Good Pledgor in thirty business days after the acquisition. If no acquisition will be made before January 12, 2013, the 2011 Make Good Shares shall be transferred to the Investors in thirty business days after January 12, 2013.

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Common Stock

9 Months Ended

Sep. 30, 2012

Common Stock [Text Block]

14.	Common stock
	On November 2, 2010, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with several accredited investors (the “Investors”) pursuant to which the Company agreed to issue and sell to the Investors 4,453,500 shares of the Company’s common stock, representing approximately 21.8% of the issued and outstanding capital stock of the Company on a fully-diluted basis as of and immediately after consummation of the transactions contemplated by the Securities Purchase Agreement, for an aggregate purchase price of approximately $14,251,200, or $3.20 per share (the “Placement Price”). Before the deduction of fair value of the escrow arrangement (Note 18), the Company received approximately $13,390,000 in net proceeds after deducting the issuance costs.
	In connection with the offering of shares under the private placement, 222,675 warrants were issued to the financial advisor on December 7, 2010, as partial compensation for services, to purchase an aggregate of 222,675 shares of common stock of the Company, representing 5% of the offered shares. The warrants have a term of three years and are exercisable from the first anniversary of the issuance and have an exercise price of $3.84. The fair value of the warrants at date of issue was $396,939 as of grant date. At September 30, 2012, all the issued share warrants were still outstanding.
	In connection with its entry into the Securities Purchase Agreement, the Company also entered into a make good escrow arrangement with Wisetop, the Investors and other parties, details of which are set out in Note 18 to the condensed consolidated financial statements.

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Land Use Rights

9 Months Ended

Sep. 30, 2012

Land Use Rights [Text Block]

10. Land use rights

		September 30,			December 31,
		2012			2011
		(Unaudited)
Land use rights	$	6,259,843		$	1,106,788
Accumulated amortization		(130,744	)		(87,743	)
	$	6,129,099		$	1,019,045

The Company obtained the right from the relevant PRC land authority for a period of fifty years to use the land on which the Company’s office premises, production facilities and warehouse are situated. As of September 30, 2012 and December 31, 2011, part of the land use rights were pledged as collateral under certain loan arrangements (Note 12).

During the nine months ended September 30, 2012 and 2011, amortization amounted to $42,591 and $16,379 respectively. The estimated amortization expense for each of the five succeeding years from 2012 is approximately $22,000 each year.

The Company transferred $5.15 million to land use rights from deposits for land use rights upon obtaining the land use rights certificate on July 10, 2012. The land is intended for future manufacturing facilities expansion.

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Schedule of Fair Value, by Balance Sheet Grouping (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 1	$ 3,789,600
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 2	3,841,954
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 3	4,713,510
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 4	$ 4,755,538

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Income Tax

9 Months Ended

Sep. 30, 2012

Income Tax [Text Block]

8.	Income tax
	United States
	The Company is subject to the United States Federal and state income tax at a statutory rate of 34%. No provision for the U.S. Federal income taxes has been made as the Company had no taxable income in this jurisdiction for the reporting periods.
	The Company has not recognized a deferred tax liability for the undistributed earnings of its non-U.S. subsidiaries as of September 30, 2012 because the Company currently does not expect those unremitted earnings to reverse and become taxable to the Company in the foreseeable future. A deferred tax liability will be recognized when the Company no longer plans to permanently reinvest undistributed earnings. Calculation of related unrecognized deferred tax liability is not practicable.
	BVI
	Megaway was incorporated in the BVI and, under the current laws of the BVI, is not subject to income taxes.

HK

Star Wealth was incorporated in Hong Kong and is subject to Hong Kong profits tax at a tax rate of 16.5%. No provision for Hong Kong profits tax has been made as Star Wealth had no taxable income during the reporting periods.

PRC

Siping Juyuan, and Beijing Juyuan are subject to PRC enterprise income tax (“EIT”) at the statutory rate of 25%. As Siping Juyuan was qualified as a “High-tech Enterprise”, it was entitled to a preferential EIT rate of 15% during the reporting periods. Beijing Juyuan, being a Sino-foreign joint venture enterprise, is entitled to two years’ EIT exemption from the first profit making calendar year of operations after offset of accumulated taxable losses, followed by a 50% tax reduction for the immediate next three calendar years (“Tax Holiday”). The Tax Holiday commenced in the fiscal year 2008 and Beijing Juyuan was subject to EIT at the rate of 12.5% for both the periods ended September 30, 2012 and 2011 respectively.

Siping Juyuan was also entitled to a special tax concession (“Tax Concession”) because it employed the required number of handicapped staff according to the relevant PRC tax rules. In particular, this Tax Concession entitled Siping Juyuan a refund of value-added tax paid during the reporting periods (Note 15).

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Property, Plant And Equipment, Net

9 Months Ended

Sep. 30, 2012

Property, Plant And Equipment, Net [Text Block]

9. Property, plant and equipment, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Cost
Buildings	$	6,164,160		$	6,133,593
Plant and machinery		4,865,416			4,275,088
Office equipment		788,288			715,153
Motor vehicles		483,020			388,052
		12,300,884			11,511,886
Accumulated depreciation		(4,648,848	)		(3,808,279	)
Net	$	7,652,036		$	7,703,607

During the reporting periods, depreciation is included in :-

		Nine months ended
		September 30,
		(Unaudited)
		2012		2011
Cost of sales and overheads of inventories	$	402,498	$	324,592
Research and development expenses		173,332		179,339
Administrative expenses		246,281		180,249
	$	822,111	$	684,180

As of September 30, 2012 and December 31, 2011, plant and equipment with net book values of $550,785 and $706,695 (Note 13), and buildings with net book values of $4,824,536 and $4,972,769 respectively, were pledged as collateral under certain loan arrangements (Note 12).

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Other Payables and Accrued Expenses

9 Months Ended

Sep. 30, 2012

Other Payables and Accrued Expenses [Text Block]

11. Other payables and accrued expenses

		September 30,		December 31,
		2012		2011
		(Unaudited)
Accrued audit fee	$	-	$	105,000
Receipt in advance from customers		16,620,332		11,003,379
Pension payable		634,600		631,506
Salaries payable		462,971		417,726
Advances from third parties		675,906		58,026
Security deposit received for project bids		811,970		2,656
Other payables and accrued expenses		3,508,330		3,635,517
	$	22,714,109	$	15,853,810

Pension payable represents accrued staff medical, industry injury claims, labor and unemployment insurances, all of which are third parties insurance and the insurance premiums are based on certain percentage of salaries. The obligations of the Company are limited to those premiums contributed by the Company. Advances from third parties was unsecured, interest-free and repayable upon demand.

Included in other payables as of September 30, 2012 and December 31, 2011 was an amount of $3,254,319 and $3,237,831 respectively, representing governmental financial support received for the Company’s efficient heat exchange equipment manufacture project (the “Project”). The Project will be subject to the government’s inspection and whether the government support is repayable or not is subject to the inspection results.

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Schedule of Allowance for Doubtful Account (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 1	$ 2,026,809
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 2	1,353,375
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 3	1,472,714
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 4	(107,156)
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 5	9,169
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 6	38,454
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 7	3,508,692
Trade Receivables, Net Schedule Of Allowance For Doubtful Account 8	$ 1,284,673

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Schedule of Inventories, net (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Inventories, Net Schedule Of Inventories, Net 1	$ 6,457,169
Inventories, Net Schedule Of Inventories, Net 2	6,198,179
Inventories, Net Schedule Of Inventories, Net 3	31,607,833
Inventories, Net Schedule Of Inventories, Net 4	25,791,085
Inventories, Net Schedule Of Inventories, Net 5	311,906
Inventories, Net Schedule Of Inventories, Net 6	560,959
Inventories, Net Schedule Of Inventories, Net 7	38,376,908
Inventories, Net Schedule Of Inventories, Net 8	32,550,223
Inventories, Net Schedule Of Inventories, Net 9	(19,266)
Inventories, Net Schedule Of Inventories, Net 10	(19,170)
Inventories, Net Schedule Of Inventories, Net 11	38,357,642
Inventories, Net Schedule Of Inventories, Net 12	$ 32,531,053

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Schedule of Accounts Receivable (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Trade Receivables, Net Schedule Of Accounts Receivable 1	$ 37,598,034
Trade Receivables, Net Schedule Of Accounts Receivable 2	35,600,032
Trade Receivables, Net Schedule Of Accounts Receivable 3	(3,508,692)
Trade Receivables, Net Schedule Of Accounts Receivable 4	(2,026,809)
Trade Receivables, Net Schedule Of Accounts Receivable 5	34,089,342
Trade Receivables, Net Schedule Of Accounts Receivable 6	$ 33,573,223

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Inventories, net (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Inventories, net [Table Text Block]

		September 30,			December 31,
		2012			2011
		(Unaudited)
Raw materials	$	6,457,169		$	6,198,179
Work-in-progress		31,607,833			25,791,085
Finished goods		311,906			560,959
		38,376,908			32,550,223
Allowance for obsolete inventories		(19,266	)		(19,170	)
	$	38,357,642		$	32,531,053

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Property, Plant And Equipment, Net (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Property, Plant And Equipment, Net 1	$ 550,785
Property, Plant And Equipment, Net 2	706,695
Property, Plant And Equipment, Net 3	4,824,536
Property, Plant And Equipment, Net 4	$ 4,972,769

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Finance Costs

9 Months Ended

Sep. 30, 2012

Finance Costs [Text Block]

16. Finance costs

		Three months ended				Nine months ended
		September 30,				September 30,
		(Unaudited)				(Unaudited)
		2012		2011		2012		2011
Interest expense	$	471,014	$	315,910	$	1,365,126	$	643,909
Bank charges and net exchange loss		3,573		44,792		12,673		118,779
	$	474,587	$	360,702	$	1,377,799	$	762,688

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Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Text Block]

21.	Segment information
	The Company is solely engaged in the manufacturing and trading of plate heat exchangers and various related products. Since the nature of the products, their production processes, and their distribution methods are substantially similar, they are considered as a single reportable segment under ASC 280 “Segment Reporting”.
	The Company’s sales revenues by products for the nine months ended September 30, 2012 and 2011 were as follows :-

		Nine months ended September 30,
		2012	%		2011	%
		(Unaudited)			(Unaudited)
Plate heat exchanger	$	13,393,408	38	$	20,009,468	52
Heat exchange unit		11,837,940	34		7,860,800	20
Air-cooled heat exchanger		1,117,187	3		2,640,027	7
Shell-and-tube heat exchanger		4,271,045	12		4,137,442	11
Others		4,533,375	13		3,894,697	10
	$	35,152,955	100	$	38,542,434	100

All of the Company’s long-lived assets and revenues classified based on the customers are located in the PRC.

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Inventories, net (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Inventories, Net 1	$ 3,473,800
Inventories, Net 2	$ 3,456,574

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Finance Costs (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Finance Costs [Table Text Block]

		Three months ended				Nine months ended
		September 30,				September 30,
		(Unaudited)				(Unaudited)
		2012		2011		2012		2011
Interest expense	$	471,014	$	315,910	$	1,365,126	$	643,909
Bank charges and net exchange loss		3,573		44,792		12,673		118,779
	$	474,587	$	360,702	$	1,377,799	$	762,688

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Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net income before noncontrolling interest	$ 2,577,716	$ 5,750,109
Adjustments to reconcile net income before noncontrolling interests to net cash used in operating activities:
Depreciation and amortization	864,702	700,559
Deferred taxes	(6,564)	(36,313)
Provision for (reversal of) doubtful debts of trade receivables	1,472,714	(107,156)
Reversal of doubtful debts of other receivables, prepayment and deposits	(8,657)	0
Changes in operating assets and liabilities:
Trade receivables	(1,821,741)	(5,569,580)
Bills receivable	(320,195)	(441,918)
Other receivables, prepayments and deposits	(7,903,709)	(8,086,432)
Inventories	(5,668,056)	(8,247,187)
Retention receivable	455,217	107,951
Counter guarantee receivable	0	(15,370)
Trade payables	488,863	331,533
Other payables and accrued expenses	6,662,467	2,021,271
Income tax payable	(1,130,912)	(570,290)
Net cash flows used in operating activities	(4,338,155)	(14,162,823)
Cash flows from investing activities
Prepayment for land use rights	0	(4,274,681)
Payment for land use rights	(736,801)	0
Deposit for acquisition of property, plant and equipment	0	(535,183)
Payments to acquire property, plant and equipment	(384,492)	(777,035)
Net cash flows used in investing activities	(1,121,293)	(5,586,899)
Cash flows from financing activities
Proceeds from bank loans	17,237,800	22,142,022
Repayment of bank loans	(11,060,000)	(14,764,422)
Repayment of long-term loan	(948,000)	(1,690,700)
Decrease/(increase) in restricted cash	80,792	(1,325,172)
Net cash flows provided for financing activities	5,310,592	4,361,728
Effect of foreign currency translation on cash and cash equivalents	42,366	253,961
Net decrease in cash and cash equivalents	(106,490)	(15,134,033)
Cash and cash equivalents - beginning of period	7,340,068	18,438,430
Cash and cash equivalents - end of period	7,233,578	3,304,397
Cash paid for:
Interest	1,365,126	643,909
Income taxes	$ 1,380,855	$ 1,630,578

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Trade Receivables, Net

9 Months Ended

Sep. 30, 2012

Trade Receivables, Net [Text Block]

5. Trade receivables, net

		September 30,			December 31,
		2012			2011
		(Unaudited)
Trade receivables	$	37,598,034		$	35,600,032
Less : Allowance for doubtful accounts		(3,508,692	)		(2,026,809	)
	$	34,089,342		$	33,573,223

As of September 30, 2012 and December 31, 2011, the Company’s trade receivables of $9,474,000 and $5,421,295, respectively, were pledged as collateral under certain loan and guarantee arrangements (Note 12).

An analysis of the allowance for doubtful accounts for the nine months ended September 30, 2012 and 2011 is as follows :-

		Nine months ended,
		September 30
		(Unaudited)
		2012		2011
Balance at beginning of period	$	2,026,809	$	1,353,375
Addition/(reversal) of doubt debt expense, net		1,472,714		(107,156	)
Translation adjustments		9,169		38,454
Balance at end of period	$	3,508,692	$	1,284,673

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Defined Contribution Plan (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Defined Contribution Plan 1	30.60%
Defined Contribution Plan 2	31.20%
Defined Contribution Plan 3	$ 218,812
Defined Contribution Plan 4	$ 420,281

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Schedule of Land Use Rights (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Land Use Rights Schedule Of Land Use Rights 1	$ 6,259,843
Land Use Rights Schedule Of Land Use Rights 2	1,106,788
Land Use Rights Schedule Of Land Use Rights 3	(130,744)
Land Use Rights Schedule Of Land Use Rights 4	(87,743)
Land Use Rights Schedule Of Land Use Rights 5	6,129,099
Land Use Rights Schedule Of Land Use Rights 6	$ 1,019,045

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Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Text Block]

22.	Related party transactions
	Apart from the transactions as disclosed in Note 12 to the condensed consolidated financial statements, the Company had no other material transactions carried out with its related parties during the reporting periods.

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Schedule of Maturities of Long-term Debt (Details) (USD $)	9 Months Ended
	Sep. 30, 2012
Long-term Loan Schedule Of Maturities Of Long-term Debt 1	$ 947,400
Long-term Loan Schedule Of Maturities Of Long-term Debt 2	1,894,800
Long-term Loan Schedule Of Maturities Of Long-term Debt 3	947,400
Long-term Loan Schedule Of Maturities Of Long-term Debt 4	$ 3,789,600

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Short-Term Bank Loans (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Short-term Bank Debt [Table Text Block]

		September 30,		December 31,
		2012		2011
		(Unaudited)
Secured bank loans	$	20,069,090	$	13,826,296
Unsecured bank loans		2,368,500		2,356,755
	$	22,437,590	$	16,183,051

Schedule of Assets Used to Secure Short-Term Bank Loans [Table Text Block]

		September 30,		December 31,
		2012		2011
		(Unaudited)
Trade receivables (Note 5)	$	9,474,000	$	5,421,295
Property, plant and equipment (Note 9)		4,824,536		4,972,769
Land use rights (Note 10)		905,831		1,019,045
	$	15,204,367	$	11,413,109

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Other Income

9 Months Ended

Sep. 30, 2012

Other Income [Text Block]

15. Other income

		Three months ended				Nine months ended
		September 30,				September 30,
		(Unaudited)				(Unaudited)
		2012		2011		2012		2011
Refund of value-added tax under Tax Concession	$	75,670	$	57,684	$	202,480	$	205,103
Government grants		135		3,554		11,060		546,250
Sales of scrap materials		206,986		1,037		206,986		159,388
Service income for installation of equipment		-		-		229,461		-
Others, net		-		-		-		4,221
	$	282,791	$	62,275	$	649,987	$	914,962