x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
NEVADA
|
98-0514768
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Large accelerated filer ¨
|
Accelerated filer ¨
|
Non-accelerated filer ¨
|
Smaller reporting company x
|
(do not check if a smaller
reporting company)
|
PART I –
FINANCIAL INFORMATION
|
||
Item 1.
|
Financial
Statements (Unaudited)
|
1
|
Item 2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
18
|
Item 3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
24
|
Item 4T.
|
Controls
and Procedures
|
24
|
Item 1.
|
Legal
Proceedings
|
25
|
Item 1A.
|
Risk
Factors
|
25
|
Item 2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
25
|
Item 3.
|
Defaults
Upon Senior Securities
|
25
|
Item 4.
|
Submission
of Matters to a Vote of Security Holders
|
25
|
Item 5.
|
Other
Information
|
25
|
Item 6.
|
Exhibits
|
26
|
SIGNATURES
|
62
|
SEPTEMBER 30, 2009
|
DECEMBER 31, 2008
|
|||||||
(UNAUDITED)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
& cash equivalents
|
$ | 60,294,695 | $ | 1,435,212 | ||||
Restricted
cash
|
1,043,524 | 462,048 | ||||||
Accounts
receivable, net
|
20,276,792 | 11,390,169 | ||||||
Retentions
receivable
|
553,105 | 290,852 | ||||||
Advances
to suppliers
|
3,474,936 | 412,524 | ||||||
Other
receivables, prepayments and deposits
|
3,282,014 | 698,834 | ||||||
Inventories
|
14,394,162 | 6,107,583 | ||||||
Note
receivable - bank acceptance
|
70,655 | 14,631 | ||||||
Total
current assets
|
103,389,881 | 20,811,853 | ||||||
NON-CURRENT
ASSETS
|
||||||||
Restricted
cash
|
19,185 | 219,472 | ||||||
Accounts
receivable, net
|
582,375 | 310,810 | ||||||
Retentions
receivable
|
2,309,852 | 166,912 | ||||||
Construction
in progress
|
60,230 | - | ||||||
Intangible
assets, net
|
4,122,844 | 1,155,131 | ||||||
Property
and equipment, net
|
7,578,356 | 2,436,553 | ||||||
Total
noncurrent assets
|
14,672,842 | 4,288,878 | ||||||
TOTAL
ASSETS
|
$ | 118,062,723 | $ | 25,100,731 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable
|
$ | 6,030,827 | $ | 1,210,906 | ||||
Unearned
revenue
|
2,084,036 | 850,408 | ||||||
Notes
payable - bank acceptance
|
1,000,543 | - | ||||||
Taxes
payable
|
2,147,376 | 1,327,775 | ||||||
Accrued
liabilities and other payables
|
7,071,473 | 1,330,812 | ||||||
Due
to minority shareholder
|
- | 5,303 | ||||||
Loans
payable
|
5,564,504 | 2,443,450 | ||||||
Total
current liabilities
|
23,898,759 | 7,168,654 | ||||||
DEFERRED
TAX LIABILITY
|
15,519 | 38,854 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock, $0.001 par value; 75,000,000 shares authorized, 32,756,575 and
24,179,900 shares issued and outstanding at September 30, 2009 and
December 31, 2008, respectively
|
32,757 | 24,180 | ||||||
Paid
in capital
|
71,679,770 | 8,223,453 | ||||||
Statutory
reserve
|
2,689,432 | 1,150,542 | ||||||
Accumulated
other comprehensive income
|
1,255,603 | 984,629 | ||||||
Retained
earnings
|
18,490,884 | 7,510,419 | ||||||
Total
stockholders' equity
|
94,148,446 | 17,893,223 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 118,062,723 | $ | 25,100,731 |
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
sales
|
$ | 56,541,795 | $ | 29,345,571 | $ | 37,835,897 | $ | 20,708,288 | ||||||||
Cost
of goods sold
|
36,562,363 | 19,502,070 | 24,687,460 | 13,273,914 | ||||||||||||
Gross
profit
|
19,979,433 | 9,843,501 | 13,148,438 | 7,434,374 | ||||||||||||
Operating
expenses
|
||||||||||||||||
Selling
expenses
|
2,325,471 | 1,664,882 | 1,165,939 | 1,056,854 | ||||||||||||
General
and administrative expenses
|
2,626,775 | 1,470,577 | 1,286,643 | 1,024,107 | ||||||||||||
Total
operating expenses
|
4,952,245 | 3,135,459 | 2,452,581 | 2,080,961 | ||||||||||||
Income
from operations
|
15,027,187 | 6,708,042 | 10,695,856 | 5,353,413 | ||||||||||||
Non-operating
income (expenses)
|
||||||||||||||||
Interest
income
|
145,839 | 318,070 | 65,418 | 57,387 | ||||||||||||
Interest
expense
|
(209,462 | ) | (257,116 | ) | (91,850 | ) | (94,076 | ) | ||||||||
Subsidy
income
|
21,443 | 16,141 | (13,897 | ) | 7,000 | |||||||||||
Financial
expense
|
(222,625 | ) | - | (222,625 | ) | - | ||||||||||
Other
expense
|
(13,676 | ) | 11,199 | (13,676 | ) | |||||||||||
Other
income
|
61,644 | 9,744 | 60,675 | 1,454 | ||||||||||||
Total
non-operating income (expenses)
|
(203,162 | ) | 73,163 | (191,081 | ) | (41,911 | ) | |||||||||
Income
before income tax
|
14,824,026 | 6,781,205 | 10,504,776 | 5,311,502 | ||||||||||||
Income
tax expense
|
2,304,672 | 1,246,935 | 1,624,240 | 980,907 | ||||||||||||
Net
income from operations
|
12,519,354 | 5,534,270 | 8,880,536 | 4,330,595 | ||||||||||||
Less:
net income attributable to noncontrolling interest
|
- | 5,934 | - | 5,934 | ||||||||||||
Net
income
|
12,519,354 | 5,528,336 | 8,880,536 | 4,324,661 | ||||||||||||
Other
comprehensive item
|
||||||||||||||||
Foreign
currency translation
|
270,399 | 578,670 | 257,256 | 167,774 | ||||||||||||
Comprehensive
Income
|
$ | 12,789,753 | 6,107,006 | $ | 9,137,792 | $ | 4,492,435 | |||||||||
Basic
weighted average shares outstanding
|
24,430,806 | 21,503,588 | 24,924,435 | 24,055,878 | ||||||||||||
Diluted
weighted average shares outstanding
|
24,513,092 | 21,503,647 | 25,010,735 | 24,056,054 | ||||||||||||
Basic
earnings per share
|
$ | 0.51 | $ | 0.26 | $ | 0.36 | $ | 0.18 | ||||||||
Diluted
earnings per share
|
$ | 0.51 | $ | 0.26 | $ | 0.36 | $ | 0.18 |
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
|
||||||||
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income including noncontrolling interest
|
$ | 12,519,354 | $ | 5,534,270 | ||||
Adjustments
to reconcile net income including noncontrolling
|
||||||||
interest
to net cash used in operating activities:
|
||||||||
Depreciation
and amortization
|
409,371 | 173,821 | ||||||
Unearned
interest on accounts receivable
|
195,901 | (71,804 | ) | |||||
Stock
option compensation expense
|
1,755 | 1,270 | ||||||
Decrease
in deferred tax liability
|
(23,357 | ) | - | |||||
(Increase)
decrease in current assets:
|
||||||||
Accounts
receivable
|
(9,305,812 | ) | (4,995,840 | ) | ||||
Retentions
receivable
|
(2,403,726 | ) | 107,279 | |||||
Advances
to suppliers
|
(3,051,902 | ) | 320,260 | |||||
Other
receivables, prepayments and deposits
|
485,060 | (2,346,526 | ) | |||||
Inventories
|
(8,277,813 | ) | 118,223 | |||||
Note
receivable
|
(55,986 | ) | (201,118 | ) | ||||
Increase
(decrease) in current liabilities:
|
||||||||
Accounts
payable
|
5,782,299 | 928,337 | ||||||
Unearned
revenue
|
1,232,371 | (1,581,803 | ) | |||||
Taxes
payable
|
818,141 | 864,934 | ||||||
Accrued
liabilities and other payables
|
(4,450,011 | ) | (266,072 | ) | ||||
Net
cash used in operating activities
|
(6,124,354 | ) | (1,414,769 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Restricted
cash
|
(380,457 | ) | (101,542 | ) | ||||
Purchase
asset of Siping
|
(0 | ) | - | |||||
Construction
in progress
|
(60,203 | ) | (83,027 | ) | ||||
Acquisition
of property & equipment
|
(3,610,566 | ) | (287,398 | ) | ||||
Net
cash used in investing activities
|
(4,051,225 | ) | (471,967 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Due
to minority shareholders
|
- | (660 | ) | |||||
Due
from / (to) shareholder
|
- | (587,644 | ) | |||||
Short
term loans
|
12,117,636 | - | ||||||
Repayment
of short term loans
|
(9,216,986 | ) | (1,361,113 | ) | ||||
Issuance
of common stock
|
66,138,390 | 5,100,000 | ||||||
Net
cash provided by financing activities
|
69,039,040 | 3,150,583 | ||||||
EFFECT
OF EXCHANGE RATE CHANGE ON CASH & CASH EQUIVALENTS
|
(3,978 | ) | (9,482 | ) | ||||
NET
INCREASE IN CASH & CASH EQUIVALENTS
|
58,859,482 | 1,254,365 | ||||||
CASH
& CASH EQUIVALENTS, BEGINNING OF PERIOD
|
1,435,213 | 448,573 | ||||||
CASH
& CASH EQUIVALENTS, END OF PERIOD
|
$ | 60,294,695 | $ | 1,702,938 | ||||
Supplemental
Cash flow data:
|
||||||||
Income
tax paid
|
$ | 1,272,797 | $ | 426,809 | ||||
Interest
paid
|
$ | 219,061 | $ | 201,269 |
Payment
in RMB
|
Payment
in USD
|
Payment
Date
|
|||
RMB
3,000,000
|
$
|
439,239
|
May
27, 2009
|
||
RMB
10,250,000
|
$
|
1,500,732
|
June
30, 2009
|
||
RMB 13,000,000
|
$
|
1,903,367
|
September
30, 2009
|
||
RMB
12,300,000
|
$
|
1,800,878
|
March
1, 2010
|
||
RMB
8,200,000
|
$
|
1,200,586
|
September
30,
2010
|
Building
|
20
years
|
Vehicles
|
5
years
|
Office
Equipment
|
5
years
|
Production
Equipment
|
5-10
years
|
For the Nine
Months
Ended
September 30, 2009
|
For the Year Ended
December 31, 2008
|
|||||||
Beginning
balance
|
$ | - | $ | - | ||||
Provisions
made
|
564,466 | 95,000 | ||||||
Actual
costs incurred
|
(42,207 | ) | (95,000 | ) | ||||
Ending
balance in current liabilities
|
$ | 522,259 | $ | - |
|
For the Nine
Months Ended September 30,
(Unaudited)
|
For the Three Months
Ended September 30,
(Unaudited)
|
||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Net
income
|
$
|
12,519,354
|
$
|
5,528,336
|
$
|
8,880,536
|
$
|
4,324,661
|
||||||||
Weighted
average shares outstanding - basic
|
24,430,806
|
21,503,588
|
24,924,435
|
24,055,878
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Unexercised
warrants and options
|
82,286
|
59
|
86,300
|
176
|
||||||||||||
Weighted
average shares outstanding - diluted
|
24,513,092
|
21,503,647
|
25,010,735
|
24,056,054
|
||||||||||||
Earnings
per share - basic
|
$
|
0.51
|
$
|
0.26
|
$
|
0.36
|
$
|
0.18
|
||||||||
Earnings
per share - diluted
|
$
|
0.51
|
$
|
0.26
|
$
|
0.36
|
$
|
0.18
|
2009
|
2008
|
|||||||
Raw
materials
|
$ | 7,810,861 | $ | 4,411,298 | ||||
Work
in process
|
2,762,646 | 652,472 | ||||||
Finished
Goods
|
3,820,655 | 1,043,813 | ||||||
Total
|
$ | 14,394,162 | $ | 6,107,583 |
2009
|
2008
|
|||||||
Building
|
$
|
4,326,504
|
$
|
1,818,827
|
||||
Production
equipment
|
2,970,416
|
441,065
|
||||||
Office
equipment
|
362,166
|
231,975
|
||||||
Vehicles
|
544,158
|
300,956
|
||||||
8,203,244
|
2,792,823
|
|||||||
Less:
Accumulated depreciation
|
(624,888
|
)
|
(356,270
|
)
|
||||
$
|
7,578,356
|
$
|
2,436,553
|
2009
|
2008
|
|||||||
Cash
advance to third parties
|
$
|
2,346,809
|
$
|
89,628
|
||||
Deposit
for public bids of sales contracts
|
758,769
|
353,399
|
||||||
Prepayment
for freight and related insurance expenses
|
33,728
|
95,888
|
||||||
Deposits
|
21,965
|
42,783
|
||||||
Advance
to employees
|
120,743
|
117,136
|
||||||
Total
|
$
|
3,282,014
|
$
|
698,834
|
2009
|
2008
|
|||||||
Land
use rights
|
$
|
3,627,791
|
$
|
519,369
|
||||
Know-how
technology
|
267,027
|
266,808
|
||||||
Customer
list
|
191,
809
|
191,652
|
||||||
Covenant
not to compete
|
104,
344
|
104,258
|
||||||
Software
|
190,322
|
190,166
|
||||||
4,381,293
|
1,272,253
|
|||||||
Less:
accumulated amortization
|
(258,449
|
)
|
(117,122
|
)
|
||||
$
|
4,122,844
|
$
|
1,155,131
|
2009
|
2008
|
|||||||
Income
tax payable
|
$
|
1,579,058
|
$
|
723,958
|
||||
Value
added tax payable
|
557,693
|
597,676
|
||||||
Other
taxes payable
|
10,625
|
6,141
|
||||||
$
|
2,147,376
|
$
|
1,327,775
|
2009
|
2008
|
|||||||
Advance
from third parties
|
$
|
113,591
|
$
|
453,625
|
||||
Payable
for purchase of SanDeKe
|
-
|
741,516
|
||||||
Payable
to SiPing – current portion
|
6,239,670
|
-
|
||||||
Other
payables
|
17,628
|
99,418
|
||||||
Warranty
reserve
|
522,259
|
-
|
||||||
Accrued
liabilities
|
178,325
|
36,253
|
||||||
Total
|
$
|
7,071,473
|
$
|
1,330,812
|
|
2009
|
2008
|
||||||
From
a commercial bank in the PRC for 30,000,000 RMB. Of which, 17,000,000 RMB
was entered into on April 22, 2009 and is due on April 22, 2010.
13,000,000 RMB was entered into on June 12, 2009 and is due on June 12,
2010. These loans currently bear interest at 5.576%. The
Company pledged its building in the value of approximately RMB 12,430,950
or approximately $1,818,000 for this loan.
|
$
|
4,393,030
|
$
|
-
|
||||
From
a commercial bank in the PRC for 6,000,000 RMB. This loan was entered into
on Apr 28, 2007 and was due on Apr 12, 2008. This loan was renewed on Apr
12, 2008. The Company repaid loan in April, 2009.
|
-
|
877,886
|
||||||
Short
term loans during 2006 and 2007 with a third party company in the PRC for
total of 10, 300,000 RMB. Some of the loans matured during 2008 and some
of the loans are payable on demand. These loans bear variable interest at
8.591% for 2009 and 2008. The Company repaid RMB 2,600,000 in
2008, RMB 2,700,000 in April, 2009, and had RMB 5,000,000 outstanding as
of September 30, 2009, due on December 31, 2009 with interest of
8.591%.
|
732,171
|
1,126,621
|
||||||
One
year loan on July 1, 2008 with another third party company in the PRC for
total of 3,000,000 RMB. This loan is renewed and due on December
31, 2009 with interest of 8.591%.
|
439,303
|
438,943
|
||||||
$
|
5,564,504
|
$
|
2,443,450
|
For the Nine Months
|
For the Three Months
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
US
statutory rates
|
34.0 | % | 34.0 | % | 34.0 | % | 34.0 | % | ||||||||
Tax
rate difference
|
(14 .0 | )% | (16.0 | ) % | (14.0 | )% | (16.0 | )% | ||||||||
Effect
of tax holiday
|
(5.0 | )% | - | (5.0 | )% | - | ||||||||||
Valuation
allowance
|
1 .0 | % | - | 0.0 | % | - | ||||||||||
Tax
per financial statements
|
16 | % | 18.0 | % | 15.0 | % | 18.0 | % |
|
|
Number of
Shares
|
|
|
Average
Exercise
Price per Share
|
|
|
Weighed
Average
Remaining
Contractual
Term in Years
|
|
|||
Outstanding
at December 31, 2007
|
-
|
|||||||||||
Exercisable
at December 31, 2007
|
-
|
|||||||||||
Granted
|
393,000
|
$
|
6.00
|
3.00
|
||||||||
Exercised
|
||||||||||||
Forfeited
|
||||||||||||
Outstanding
at December 31, 2008
|
393,000
|
6.00
|
2.51
|
|||||||||
Exercisable
at December 31, 2008
|
393,000
|
6.00
|
2.51
|
|||||||||
Granted
|
||||||||||||
Exercised
|
(243,675)
|
|||||||||||
Forfeited
|
||||||||||||
Outstanding
at September 30, 2009
|
149,325
|
$
|
6.00
|
1.76
|
||||||||
Exercisable
at September 30, 2009
|
149,325
|
$
|
6.00
|
1.76
|
|
|
Number of
Shares
|
|
|
Average
Exercise
Price per Share
|
|
|
Weighed
Average
Remaining
Contractual
Term in Years
|
|
|||
Outstanding
at December 31, 2007
|
-
|
|||||||||||
Exercisable
at December 31, 2007
|
-
|
|||||||||||
Granted
|
20,000
|
$
|
4.60
|
5.00
|
||||||||
Exercised
|
||||||||||||
Forfeited
|
||||||||||||
Outstanding
at December 31, 2008
|
20,000
|
4.60
|
4.54
|
|||||||||
Exercisable
at December 31, 2008
|
20,000
|
4.60
|
4.54
|
|||||||||
Granted
|
||||||||||||
Exercised
|
||||||||||||
Forfeited
|
||||||||||||
Outstanding
at September 30, 2009
|
20,000
|
$
|
4.60
|
3.79
|
||||||||
Exercisable
at September 30, 2009
|
20,000
|
$
|
4.60
|
3.79
|
Year
Ending September 30,
|
Amount
|
|||
2010
|
$
|
87,000
|
Cash
|
$
|
59,245
|
||
Accounts
receivable
|
489,527
|
|||
Advance
to suppliers
|
329,951
|
|||
Other
receivables
|
128,646
|
|||
Inventory
|
92,370
|
|||
Property
and equipment
|
73,324
|
|||
Intangible
assets
|
563,567
|
|||
Accounts
payable
|
(332,276
|
)
|
||
Advance
from customers
|
(557,216
|
)
|
||
Deferred
tax liability
|
(39,076
|
)
|
||
Other
current liabilities
|
(66,546
|
)
|
||
Purchase
price
|
$
|
741,516
|
Pro forma
Consolidated
|
||||
Net
revenue
|
$ | 31,499,617 | ||
Cost
of revenue
|
(21,264,191 | ) | ||
Gross
profit
|
10,235,425 | |||
Selling
expense
|
(1,664,882 | ) | ||
General
& administrative expense
|
(1,877,286 | ) | ||
Total
operating expenses
|
(3,542,168 | ) | ||
Income
from operations
|
6,693,257 | |||
Non-operating
income, net
|
74,936 | |||
Income
before income tax
|
6,768,193 | |||
Income
tax
|
(1,246,935 | ) | ||
Minority
interest
|
5,934 | |||
Net
income
|
$ | 5,515,324 |
Building
|
20
years
|
Vehicles
|
5
years
|
Office
Equipment
|
5
years
|
Production
Equipment
|
5 -
10 years
|
For the Nine Months Ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
$
|
% of Sales
|
$
|
% of Sales
|
|||||||||||||
Sales
|
56,541,795 | 29,345,571 | ||||||||||||||
Cost
of sales
|
36,562,363 | 64.7 | % | 19,502,070 | 66.5 | % | ||||||||||
Gross
Profit
|
19,979,433 | 35.3 | % | 9,843,501 | 33.5 | % | ||||||||||
Operating
Expenses
|
4,952,245 | 8.8 | % | 3,135,459 | 10.7 | % | ||||||||||
Income
from Operations
|
15,027,187 | 26.6 | % | 6,708,042 | 22.8 | % | ||||||||||
Other
Income (Expenses), net
|
(203,162 | ) | (0.4 | )% | 73,163 | 0.3 | % | |||||||||
Income
tax expense
|
2,304,672 | 4.1 | % | 1,246,935 | 4.2 | % | ||||||||||
Net
Income
|
12,519,354 | 22.1 | % | 5,528,336 | 18.8 | % |
For the Quarter Ended September 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
$
|
% of Sales
|
$
|
% of Sales
|
|||||||||||||
Sales
|
37,835,897 | 20,708,288 | ||||||||||||||
Cost
of sales
|
24,687,460 | 65.2 | % | 13,273,914 | 64.1 | % | ||||||||||
Gross
Profit
|
13,148,438 | 34.8 | % | 7,434,374 | 35.9 | % | ||||||||||
Operating
Expenses
|
2,452,581 | 6.5 | % | 2,080,961 | 10.1 | % | ||||||||||
Income
from Operations
|
10,695,856 | 28.3 | % | 5,353,413 | 25.9 | % | ||||||||||
Other
Income (Expenses), net
|
(191,081 | ) | (0.5 | )% | (41,911 | ) | (0.2 | )% | ||||||||
Income
tax expense
|
(1,624,240 | ) | (4.3 | )% | (980,907 | ) | (4.7 | )% | ||||||||
Net
Income
|
8,880,536 | 23.4 | % | 4,324,661 | 20.8 | % |
2009
|
2008
|
|||||||
Cash
provided by (used in):
|
||||||||
Operating
Activities
|
$ | (6,124,354 | ) | $ | (1,414,769 | ) | ||
Investing
Activities
|
(4,051,225 | ) | (471,967 | ) | ||||
Financing
Activities
|
69,039,040 | (3,150,583 | ) |
|
2009
|
2008
|
||||||
From
a commercial bank in the PRC for 30,000,000 RMB. Of which, 17,000,000 RMB
was entered into on April 22, 2009 and is due on April 22, 2010.
13,000,000 RMB was entered into on June 12, 2009 and is due on June 12,
2010. These loans currently bear interest at 5.576%. The
Company pledged its building in the value of approximately RMB 12,430,950
or approximately $1,818,000 for this loan.
|
$
|
4,393,030
|
$
|
-
|
||||
From
a commercial bank in the PRC for 6,000,000 RMB. This loan was entered into
on Apr 28, 2007 and was due on Apr 12, 2008. This loan was renewed on Apr
12, 2008. The Company repaid loan in April, 2009.
|
-
|
877,886
|
||||||
Short
term loans during 2006 and 2007 with a third party company in the PRC for
total of 10, 300,000 RMB. Some of the loans matured during in 2008 and
some of the loans are payable on demand. These loans bear variable
interest at 8.591% for 2009 and 2008. The Company repaid RMB
2,600,000 in 2008, RMB 2,700,000 in April, 2009, and had RMB 5,000,000
outstanding as of September 30, 2009, due on December 31, 2009 with
interest of 8.591%.
|
732,171
|
1,126,621
|
||||||
One
year loan on July 1, 2008 with another third party company in the PRC for
total of 3,000,000 RMB. This loan is renewed and due on December
31, 2009 with interest of 8.591%.
|
439,303
|
438,943
|
||||||
$
|
5,564,504
|
$
|
2,443,450
|
Exhibit No.
|
Document Description
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Rule 13a-15(e) and 15d-15(e),
promulgated under the Securities and Exchange Act of 1934, as
amended.
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rule13a-15(e) and 15d-15(e),
promulgated under the Securities and Exchange Act of 1934, as
amended.
|
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (Chief Executive
Officer).
|
|
32.2
|
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 (Chief Financial
Officer).
|
SMARTHEAT
INC.
(Registrant)
|
||
By:
|
/s/
Jun Wang
|
|
November
16, 2009
|
Jun
Wang
President
and Chief Executive Officer
|
|
(Principle Executive
Officer)
|
||
By:
|
/s/
Zhijuan Guo
|
|
November
16, 2009
|
Zhijuan
Guo
Chief
Financial Officer
(Principal
Financial and Accounting Officer)
|
Exhibit No.
|
Document
Description
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Rule 13a-15(e) and 15d-15(e),
promulgated under the Securities
and Exchange Act of 1934, as amended.
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rule13a-15(e) and 15d-15(e),
promulgated under the Securities
and Exchange Act of 1934, as amended.
|
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act
of 2002 (Chief Executive Officer).
|
|
32.2
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act
of 2002 (Chief Financial Officer).
|