EX-99.1 2 v123889_ex99-1.htm
Exhibit 99.1

 
/ CORRECTION - SmartHeat Inc. Reports Record 2nd Quarter Financial Results, Reaffirms 2008 Sales and Earnings Guidance
 
NEW YORK, NY--(Marketwire - August 14, 2008) - In the news release, "SmartHeat Inc. Reports Record 2nd Quarter Financial Results, Reaffirms 2008 Sales and Earnings Guidance," issued earlier today by SmartHeat Inc. (OTCBB: SMHT), we are advised by the company that the EPS for the second quarter 2008 should have been $0.03 rather than $0.04 as was reported in the first bulleted point in the release. This change should also be made in "CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME" table for the Basic and diluted earnings per share line item for the three months ended June 30, 2008. The corrected table is below.
 
The weighted average number of shares outstanding for the six months ended June 30, 2007 and the three months ended June 30, 2008 were inadvertently reversed in the Company's Consolidated Statements of Income and Other Comprehensive Income ("P&L"), resulting in a miscalculation of the EPS by dividing net income of $732,412 for the quarter by weighted average shares outstanding of 18,500,000 instead of 21,926,838. Accordingly, based on the revised P&L weighted average shares outstanding number, Q2 2008 EPS has been revised to $0.03 as compared to $0.00 per share in the year-ago period.

 
SmartHeat Inc. and Subsidiary
 
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
FOR THE SIX MONTHS ENDED JUNE 30,
 
FOR THE THREE MONTHS ENDED JUNE 30,
 
 
 
2008
 
2007
 
2008
 
2007
  
                   
Net sales
  
$
8,637,283
  
$
2,457,967
  
$
5,558,232
  
$
1,159,098
  
                           
Cost of goods sold
    
6,228,156
   
1,598,789
   
4,115,200
   
756,368
 
                           
Gross profit
    
2,409,127
   
859,178
   
1,443,032
   
402,730
 
                           
Operating expenses
                          
Selling expenses
    
608,028
   
484,893
   
410,607
   
267,682
 
General and administrative expenses
    
446,470
   
298,842
   
162,325
   
141,397
 
                           
Total operating expenses
    
1,054,498
   
783,735
   
572,932
   
409,079
 
                           
Income (loss) from operations
    
1,354,629
   
75,443
   
870,100
   
(6,349
)
                           
Non-operating income (expenses)
                          
Interest income
    
260,683
   
164,421
   
113,545
   
95,396
 
Interest expense
    
(163,040
)
  
(87,966
)
  
(96,412
)
  
(57,854
)
Other income
    
8,290
   
12,000
   
6,116
   
10,923
 
Subsidy income
    
9,141
   
51,830
   
134
   
272
 
                           
Total non-operating income
    
115,074
   
140,285
   
23,383
   
48,737
 
                           
Income before income tax 
    
1,469,703
   
215,728
   
893,483
   
42,388
 
                           
Income tax expense
    
266,028
   
52,486
   
161,071
   
39,178
 
                           
Income after income tax
    
1,203,675
   
163,242
   
732,412
   
3,210
 
                           
Less: minority interest
    
-
   
(1,846
)
  
-
   
(9
)
     
      
   
      
   
      
   
 
  
Net income
    
1,203,675
   
165,088
   
732,412
   
3,219
 
                           
Other comprehensive item
                         
Foreign currency translation
    
410,896
   
77,254
   
168,802
   
39,842
 
                           
Comprehensive Income
  
$
1,614,571
  
$
242,342
  
$
901,214
  
$
43,061
  
                           
Basic and diluted weighted average shares outstanding
    
20,213,419
   
18,500,000
   
21,926,838
   
18,500,000
 
                           
Basic and diluted earnings per share
 
$
0.06
  
$
0.01
  
$
0.03
  
$
0.00
  
 
 
 
 
 
About SmartHeat Inc.
 
SmartHeat Inc. is a US company with its primary operations in China. SmartHeat is a market leader in China's "green" technology heat energy saving industry. SmartHeat manufactures plate heat exchangers and compact plate heat exchanger units -- the technology that helps to capture and recycle waste heat thus reduces fossil fuel related costs and pollution. SmartHeat's products and technology have broad residential and industrial applications. China's heat transfer market is currently estimated at approximately $2.4 billion with double digit annual growth according to China Heating Association. Additional information about SmartHeat is available at its corporate website: www.smartheatinc.com 
 
Safe Harbor Statement
 
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. SmartHeat's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect SmartHeat's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in SmartHeat's filings with the Securities and Exchange Commission.
 
Contact Information:
U.S. Contact:
Mr. Arnold Staloff
Independent Board Member
Tel: 212-631-3510
 
Corporate Contact:
James Wang, CEO
SmartHeat Inc.
Tel: 011-86-13701368262
Email: Email Contact
www.smartheatinc.com