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
