Lithium & Boron Technology (LBTI) 10-K 6 May 15 2014 FY Annual report Financial data

Document_And_Entity_Informatio

Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	6-May-15	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Smartheat Inc.
Document Type	10-K
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		6,783,399
Entity Public Float			$1,017,500
Amendment Flag	FALSE
Entity Central Index Key	1384135
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	31-Dec-14
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and equivalents	$13,682,624	$13,602,399
Restricted cash	9,913,104	2,458,758
Accounts receivable, net	16,052,184	12,167,565
Retentions receivable, net	1,309,057	4,202,109
Advances to suppliers, net	2,417,949	4,280,593
Other receivables (net), prepayments and deposits	5,068,411	4,948,761
Inventories, net	49,349,195	56,324,363
Taxes receivable	325,252	989,635
Notes receivable - bank acceptances	2,271,131	2,759,251
Total current assets	100,388,907	101,733,434
NONCURRENT ASSETS
Long term investment	29,540	26,721
Restricted cash	123,002	135,926
Retentions receivable, net	0	237,882
Property and equipment, net	1,995,520	1,638,120
Intangible assets, net	576,999	11,042,719
Construction in progress	84,533	0
Total noncurrent assets	2,809,594	13,081,368
TOTAL ASSETS	103,198,501	114,814,802
CURRENT LIABILITIES
Accounts payable	7,384,756	6,683,860
Advances from customers	2,714,603	2,630,061
Taxes payable	196,246	197,078
Accrued liabilities and other payables	19,319,461	17,215,006
Notes payable - bank acceptances	1,401,530	2,590,025
Loans payable	25,111,702	24,462,299
Total current liabilities	56,128,298	53,778,329
CREDIT LINE PAYABLE	2,749,335	1,396,378
LONG-TERM LOAN	0	2,132,231
DEFERRED TAX LIABILITY	66,024	17,177
TOTAL LIABILITIES	58,943,657	57,324,115
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value; 75,000,000 shares authorized, 6,783,399 shares and 6,133,399 shares issued and outstanding as of December 31, 2014 and 2013, respectively	6,783	6,133
Paid-in capital	87,500,456	87,393,606
Statutory reserve	5,389,057	5,389,057
Accumulated other comprehensive income	8,549,568	8,991,269
Accumulated deficit	-76,198,760	-66,630,772
Total Company stockholders' equity	25,247,104	35,149,293
NONCONTROLLING INTEREST	19,007,740	22,341,394
TOTAL EQUITY	44,254,844	57,490,687
TOTAL LIABILITIES AND EQUITY	$103,198,501	$114,814,802

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Common stock, par value (in Dollars per share)	$0.00	$0.00
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	6,783,399	6,133,399
Common stock, shares outstanding	6,783,399	6,133,399

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Net sales	$34,075,959	$44,709,526
Cost of sales	32,941,074	40,401,380
Gross income	1,134,885	4,308,146
Operating expenses
Selling	6,563,729	6,864,060
General and administrative	7,767,391	10,400,323
Long-lived assets impairment	0	13,730,849
Impairment of long-term investment	0	908,084
Provision for bad debts	-4,663,703	24,980,195
Provision for advance to supplier	3,470,029	1,666,906
Total operating expenses	13,137,446	58,550,417
Loss from operations	-12,002,561	-54,242,271
Non-operating income (expenses)
Investment income	2,808	153,237
Interest income	161,123	159,972
Interest expense	-1,792,765	-1,816,457
Financial expense	-284,387	-249,681
Foreign exchange transaction loss	-3,785	-9,495
Gain on issuance of stock	130,000	0
Loss on sale of equity interest	0	-842,491
Other income, net	952,470	1,314,945
Total non-operating expenses, net	-834,536	-1,289,970
Loss before income tax	-12,837,097	-55,532,241
Income tax (benefit) expense	48,717	-50,657
Net loss including noncontrolling interest	-12,885,814	-55,481,584
Less: loss attributable to noncontrolling interest	-3,317,826	-5,812,243
Net loss to SmartHeat Inc.	-9,567,988	-49,669,341
Other comprehensive item
Foreign currency translation loss attributable to SmartHeat Inc.	-441,701	-2,282,228
Foreign currency translation loss attributable to noncontrolling interest	-15,828	-31,371
Comprehensive loss attributable to SmartHeat Inc.	-10,009,689	-51,951,569
Comprehensive loss attributable to noncontrolling interest	($3,333,654)	($5,843,614)
Basic and diluted weighted average shares outstanding (in Shares)	6,564,084	5,870,111
Basic and diluted net loss per share (in Dollars per share)	($1.46)	($8.46)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss including noncontrolling interest	($12,885,814)	($55,481,584)
Adjustments to reconcile loss including noncontrolling interest to net cash used in operating activities:
Investment loss	-2,808	-153,237
Depreciation and amortization	816,240	2,151,325
Long-lived assets impairment	0	13,730,849
Impairment of long-term investment	0	908,084
Provision for bad debts	-4,663,703	24,980,195
Provision for inventory impairment	7,145,929	6,343,530
Provision for advances to suppliers	3,470,029	1,666,906
Changes in warranty reserves	-44,518	-44,518
Loss (gain) on disposal of fixed assets	-124,153	19,133
Gain on issuance of stock	-130,000	0
Loss on sale of equity interest	0	842,491
Unearned interest on accounts receivable	0	13,476
Amortization of loan amendment fee paid by shares	0	31,315
Shares issued for equity interest sale consent	0	30,000
Loss on settlement of note by shares	0	20,000
Stock based compensation for shares issued to officers and director	37,500	0
Changes in deferred taxes	48,717	-77,269
(Increase) decrease in assets and liabilities:
Accounts receivable	4,846,488	1,134,956
Retentions receivable	779,325	-73,493
Advances to suppliers	656,818	1,461,069
Other receivables, prepayments and deposits	-4,199,351	-6,846,995
Inventories	-498,765	-2,746,109
Taxes receivable	569,812	-827,925
Accounts payable	-439,247	3,966
Advances from customers	-2,872,095	-32,609
Taxes payable	84,079	-676,552
Accrued liabilities and other payables	3,601,250	9,077,728
Net cash used in operating activities	-3,804,267	-4,545,268
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in restricted cash	-7,421,563	-1,502,829
Cash received from fixed assets disposal	130,227	0
Cash disposed in equity interest sale	0	-399,241
Acquisition of property and equipment	-867,851	-565,295
Acquisition of intangible asset	0	-79,169
Government refund of land use right	10,322,150	0
Sale of equity interest	1,383,666	804,609
Notes receivable	476,278	122,483
Construction in progress	-57,020	-1,851
Net cash provided by (used in) investing activities	3,965,887	-1,621,293
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank loans	28,874,261	24,483,311
Repayment on bank loans	-30,255,598	-24,846,320
Credit line payable	1,450,000	1,312,841
Net cash provided by financing activities	68,663	949,832
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND EQUIVALENTS	-150,058	482,965
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS	80,225	-4,733,764
CASH AND EQUIVALENTS, BEGINNING OF YEAR	13,602,399	18,336,163
CASH AND EQUIVALENTS, END OF YEAR	13,682,624	13,602,399
Supplemental cash flow data:
Income tax paid	12,719	720,001
Interest paid	$1,851,127	$1,663,459

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Common Stock [Member]	Additional Paid-in Capital [Member]	Statutory Reserves [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2012	$5,733	$103,607,559	$5,396,014	$11,273,497	($11,771,349)	$1,057,872	$108,511,454
Balance (in Shares) at Dec. 31, 2012	5,733,399
Shares issued for debt repayment	200	119,800					120,000
Shares issued for debt repayment (in Shares)	200,000
Shares issued for loan fee	100	59,900					60,000
Shares issued for loan fee (in Shares)	100,000
Shares issued for equity interest sale consent	100	29,900					30,000
Shares issued for equity interest sale consent (in Shares)	100,000
Sale of equity interest and deconsolidation		-16,423,553	-9,537	-4,924,845	-5,187,502	27,127,137	-26,545,437
Net income					-49,669,341	-5,812,244	-49,669,341
Transfer to statutory reserves			2,580		-2,580
Foreign currency translation gain				2,642,617		-31,371	2,642,617
Balance at Dec. 31, 2013	6,133	87,393,606	5,389,057	8,991,269	-66,630,772	22,341,394	35,149,293
Balance (in Shares) at Dec. 31, 2013	6,133,399						6,133,399
Shares issued to officers and directors	250	37,250					37,500
Shares issued to officers and directors (in Shares)	250,000
Shares issued for loan fee	400	69,600					70,000
Shares issued for loan fee (in Shares)	400,000
Net income					-9,567,988	-3,317,826	-9,567,988
Foreign currency translation gain				-441,701		-15,828	-441,701
Balance at Dec. 31, 2014	$6,783	$87,500,456	$5,389,057	$8,549,568	($76,198,760)	$19,007,740	$25,247,104
Balance (in Shares) at Dec. 31, 2014	6,783,399						6,783,399

1_ORGANIZATION_AND_DESCRIPTION

1. ORGANIZATION AND DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block [Abstract]
Nature of Operations [Text Block]	1. ORGANIZATION AND DESCRIPTION OF BUSINESS
	SmartHeat Inc., formerly known as Pacific Goldrim Resources, Inc. (the “Company” or “SmartHeat”), was incorporated on August 4, 2006, in the State of Nevada. The Company, through its operating subsidiaries in China and Germany, designs, manufactures, sells and services plate heat exchangers (“PHEs”), PHE Units, which combine PHEs with various pumps, temperature sensors, valves and automated control systems, heat meters and heat pumps for use in commercial and residential buildings.
	On April 14, 2008, the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement”) to acquire Shenyang Taiyu Machinery and Electronic Equipment Co., Ltd., subsequently renamed SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. (“Taiyu”), a privately held Sino-foreign joint venture company formed under the laws of the People’s Republic of China (“PRC”) on July 24, 2002, and engaged in the design, manufacture, sale and servicing of plate heat exchange products in China. The Share Exchange Agreement was entered into by SmartHeat, Taiyu and the shareholders of Taiyu. Pursuant to the Share Exchange Agreement, all of the equitable and legal rights, title and interests in and to Taiyu’s share capital of RMB 25,000,000 ($3.95 million) were exchanged for 1,850,000 shares of SmartHeat’s common stock (the “Share Exchange”). SmartHeat received PRC government approval on May 28, 2008, of its subscription for 71.6% of the registered capital of Taiyu, and approval on June 3, 2009, of the transfer of the remaining 28.4% ownership of Taiyu from the original joint venture shareholders who had received shares of SmartHeat common stock in the Share Exchange. Concurrent with the Share Exchange, one of SmartHeat’s shareholders cancelled 250,000 issued and outstanding shares of SmartHeat common stock pursuant to a split-off agreement dated April 14, 2008. As a result of the Share Exchange, Taiyu became a wholly foreign-owned enterprise of SmartHeat.
	On September 25, 2008, the Company entered into a Share Exchange Agreement with Asialink (Far East) Limited to acquire all of the outstanding capital stock of SanDeKe Co., Ltd., a Shanghai-based manufacturer of PHEs (“SanDeKe”) for $741,500.  In June 2013, SanDeKe temporary halted its factory operations as a result of cost control; Taiyu temporarily took over SanDeKe’s business including existing sales orders and manufacturing tasks fulfillment, and consumption of inventory in stock.  The management resumed the operation of SanDeKe’s factory in Shanghai in 2014.
	On June 12, 2009, the Company incorporated a new subsidiary, SmartHeat Siping Beifang Energy Technology Co., Ltd. (“SmartHeat Siping”), to manufacture PHEs.
	On June 16, 2009, Taiyu closed an asset purchase transaction with Siping Beifang Heat Exchanger Manufacture Co., Ltd. (“SipingBeifang”), a company organized under the laws of the PRC, to purchase certain assets consisting of plant, equipment and certain land use rights for RMB 54,000,000 ($7.91 million). Taiyu then transferred all the acquired assets to SmartHeat Siping, the newly incorporated subsidiary. The Company paid RMB 7,250,000 ($1.06 million) on completion of inventory inspection, with the remaining consideration paid as of June 30, 2011.
	On August 14, 2009, the Company formed Beijing SmartHeat Jinhui Energy Technology Co., Ltd. (“Jinhui”), a joint venture in Beijing with registered capital of RMB 10 million ($1.46 million), to provide consulting services and expand the Company’s sales of PHEs into new industries and regions of China. SmartHeat owns 52% of Jinhui and invested $765,000.
	On April 7, 2010, the Company formed SmartHeat (China) Investment Co., Ltd. (“SmartHeat Investment”), an investment holding company and wholly owned subsidiary in Shenyang with registered capital of $70 million.
	On April 12, 2010, SmartHeat Investment formed SmartHeat (Shenyang) Energy Equipment Co., Ltd. (“SmartHeat Energy”), a wholly owned subsidiary in Shenyang with registered capital of $30 million, for research, development, manufacturing and sales of energy products.
	On May 6, 2010, the Company formed SmartHeat (Shanghai) Trading Co., Ltd. (“SmartHeat Trading”) through a nominee to market and expand sales of the Company’s Taiyu-branded products. The Company made a capital contribution of $1.5 million and, from inception until November 9, 2011, controlled and was entitled to 100% of the profit or loss of SmartHeat Trading pursuant to an investment agreement dated February 1, 2010. Effective November 9, 2011, the Company terminated the nominee-owner relationship and acquired direct control over SmartHeat Trading.
	On January 7, 2011, the Company invested $771,600 for 51% of the equity in Hohhot Ruicheng Technology Co., Ltd. (“Ruicheng”), a joint venture (“JV”) formed on December 2, 2010, in Hohhot City, China, for the design and manufacture of heat meters.
	On March 1, 2011, the Company entered into a purchase agreement with Shenyang Bingchuan Refrigerating Machine Limited Company, a Shenyang-based state-owned heat pump manufacturer and designer, which was renamed SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. (“SmartHeat Pump”). The Company paid RMB 50 million ($7.6 million) to acquire 95% of the equity in SmartHeat Pump, with a local government entity retaining the remaining 5%. The Company increased its ownership in SmartHeat Pump to 98.8% in late 2011.
	On March 3, 2011, the Company completed the acquisition of GustrowerWarmepumpen GmbH, a designer and manufacturer of high efficiency heat pumps in Germany subsequently renamed SmartHeat Deutschland GmbH (“SmartHeat Germany”), from Conergy AG for EUR 4.25 million ($5.90 million) paid at closing. This acquisition extended the Company’s clean technology heating solutions into the rapidly growing heat pump markets in Europe and China, enabling its customers to purchase technologically advanced heat pumps at competitive prices.
	In April 2012, the Company invested RMB 4,600,000 ($0.72 million) to establish a new JV named Urumchi XinRui Technology Limited Liability Company (“XinRui”). The Company owns 46% of XinRui. During 2012, XinRui commenced operations. Xinrui mainly conducts research and development, production and selling of heat meters and automatic control of heat supply network. Urumchi Annai energy Conservation Company Ltd. (“Annai”) owns 30% of Xinrui’s registered capital and Beijing Taiyu Huineng Company Ltd. (“Huineng”) owns 24% of Xinrui’s registered capital.
	Effective February 7, 2012, the Company implemented a one-for-ten reverse split of its common stock as approved by the Board of Directors on January 19, 2012. All share amounts and per share prices were retroactively adjusted to reflect the effect of this reverse split.
	On August 23, 2013, the Company formed two new wholly-owned subsidiaries in the State of Nevada, Heat HP Inc., and HEAT PHE Inc.  On the same date, the Company’s United States parent entered into Assignment Agreements with Heat HP Inc. and Heat PHE Inc., respectively. Under the Assignment Agreements, the Company agreed to transfer 100% of its right, title and interest in certain subsidiaries to Heat HP Inc. and Heat PHE Inc. The reorganization was performed so the Company’s subsidiaries would be organized along their respective operating segments with Heat HP holding those subsidiaries that operated in the heat pumps and related products segment and Heat PHE holding those subsidiaries that operated in the plate heating equipment, meters and related products segment.
	After the assignment, Heat HP Inc. owned 100% of SmartHeat (China) Investment Co., Ltd. (“SmartHeat Investment”), SmartHeat Trading, Jinhui, SmartHeat Germany, and 98.8% of SmartHeat Pump.
	After the assignment, Heat PHE Inc. owned 100% of Taiyu, SanDeKe, SmartHeat Siping, SmartHeat Energy, and 51% of Ruicheng.
	On August 23, 2013, the Company entered into a Stock Pledge Agreement with Northtech Holdings Inc. (“Northtech”).  The Company agreed to deliver share certificates to Northtech representing 55% of Heat HP Inc. and Heat PHE Inc. to perfect the security interest in each of the Company’s directly and wholly-owned subsidiaries granted to Northtech as collateral security for all of the obligations of the Company owed to Northtech.
	In December 2013, SmartHeat US parent incorporated SmartHeat Heat Exchange Equipment Co. (“Heat Exchange”) in China with register capital of $3.00 million for manufacturing and sale of PHE and PHE related products.
	On December 30, 2013, the Company, closed the transaction contemplated by the Equity Interest Purchase Agreement (“EIPA”) dated October 10, 2013, whereby the buyers purchased 40% of the Company’s equity interests in the following PHE segment subsidiaries: Taiyu; SmartHeat Siping; SmartHeat Energy; Ruicheng; and XinRui (collectively, the “Target Companies”). The purchase price was RMB 5 million. XinRui was 46% owned by SmartHeat US parent prior to 40% equity interest sell.
	The 40% equity interest sale of Taiyu, SmartHeat Siping, SmartHeat Energy changes the parent company’s ownership interest while it retains controlling financial interest in the subsidiaries and is accounted for as an equity transaction (investments by owners and distributions to owners acting in their capacity as owners).  No gain or loss was recognized in consolidated net income or comprehensive income. The carrying amount of the noncontrolling interest was adjusted to reflect the change in the parent’s ownership interest in the subsidiaries. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is recognized in equity attributable to the parent. The amount of difference recognized and allocated to noncontrolling interest was $22.09 million including $4.86 million the carrying amount of accumulated other comprehensive income (FASB ASC Topic 810-10-45-23 & 24). The 40% equity interest sale of Ruicheng and Xinrui changes the parent’s ownership interest and the parent lost controlling interest; accordingly, an $842,491 loss was recognized from the sale.
	On November 28, 2014, the Company entered into an Amended and Restated EIPA, which amended and restated the EIPA dated October 10, 2013 between the Company and the buyers. Under the terms of the Amended EIPA, the buyers have agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consists of: (i) consideration of RMB 8.5 million and (ii) the forgiveness of all net indebtedness owing to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA.
	The effectiveness of the transaction is subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the Board of Directors (“BOD” or the “Board”) of the Company of an opinion that the purchase and sale transaction is fair to the shareholders of SmartHeat from a financial point of view. The parties executed a mutual release to be delivered at the closing which provided, in part, for the target companies to forgive all net indebtedness from SmartHeat and all of its other subsidiaries. In the event that the conditions are not met prior to December 31, 2014, the consideration and all documents will be deposited into escrow and released when the conditions have been satisfied; provided that if the conditions are not satisfied on or before March 31, 2015, either party may terminate the Amended EIPA and the funds and documents will be returned to the depositing party.  The conditions are not met at December 31, 2014.
	The buyers consist of a group of 25 natural persons, all of whom are PRC citizens, including Wen Sha, Jun Wang and Xudong Wang, managers of the Company’s subsidiaries engaged in the PHE segment of its business, and Huajuan Ai and Yingkai Wang, the Company’s Corporate Secretary and Acting Chief Accountant, respectively.  Huajuan Ai, Wen Sha, Jun Wang and Xudong Wang are also principals in Northtech.  SmartHeat's subsidiaries made an application to State Administration for Industry and Commerce (“SAIC”) to register the ownership transfers as of December 31, 2014.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).
	Principles of Consolidation
	The accompanying consolidated financial statements include the accounts of SmartHeat’s US parent, its subsidiaries Heat HP and Heat PHE, and their subsidiaries Taiyu, SanDeKe, SmartHeat Siping, Jinhui, SmartHeat Investment, SmartHeat Energy, SmartHeat Trading, Ruicheng, SmartHeat Germany, SmartHeat Pump, and Heat Exchange, which are collectively referred to as the “Company.” All significant intercompany accounts and transactions were eliminated in consolidation. After the sale of 40% equity interest of Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and Xinrui (See Note 9) on December 30, 2013, the Company now owns 60% of Taiyu, SmartHeat Siping and SmartHeat Energy, and 30.6% of Ruicheng, which is accounted for under the equity method of accounting.
	Going Concern
	The Company has incurred significant recurring losses from operations in the past several years, including a net loss of $9.57 million for the year ended December 31, 2014; of which, $4.93 million was attributable to sold entities and $4.64 million was attributable to the remaining entities. In addition, the Company expected to recognize a loss of $35.27 million from the 100% equity interest sale on the entities to be sold. These conditions raise a substantial doubt about the Company's ability to continue as a going concern. However, given the fact of increasing demand for heat pump products in China, the Company will put more resources and efforts to grow heat pump business after completing the operation restructure of disposing PHE business.
	Equity Method Investee
	Prior to the sale of 40% equity interest of Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and Xinrui, the Company owned 46% of XinRui and accounted for this investment under the equity method of accounting (FASB ASC Subtopic 323-30). The Company recorded its investment at the original cost. This investment increased with income and decreased for dividends and losses accrued by the Company. After 40% equity interest sale on December 30, 2013, the Company now owns 30.6% of Ruicheng (See Note 9) and 27.6% of XinRui, which are accounted for under the equity method of accounting.
	Noncontrolling Interest
	The Company follows Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 810,  “Consolidation,”  which established new standards governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs, previously referred to as minority interests, be treated as a separate component of equity, not as a liability, as was previously the case, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance.
	After the sale of 40% equity interest of Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and Xinrui (See Note 9) on December 30, 2013, the Company now owns 60% of Taiyu, SmartHeat Siping and SmartHeat Energy, and 30.6% of Ruicheng and 27.6% of Xinrui. For accounting purposes, the 40% net loss of Taiyu, SmartHeat Siping, SmartHeat Energy were not allocated to noncontrolling interest between December 30, 2013 and December 31, 2013, as the change in ownership interest may not change financial results substantially between December 30, 2013 and December 31, 2013. However, the Company performed long-lived assets impairment test for Taiyu, SmartHeat Siping, SmartHeat Energy on December 31, 2013, and recognized $13.73 million impairment loss with $5.49 million allocated to noncontrolling interest on December 31, 2013.
	Use of Estimates
	In preparing the financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates.
	Cash and Equivalents
	For purposes of the statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.  As of December 31, 2014 and December 31, 2013, the Company maintained restricted cash deposit in several bank accounts for the purposes described below.
			2014			2013
			(In millions)
	Support of performance guarantee		$	0.41		$	1.16
	Support of bank acceptance			0.7			1.29
	Support of letter of credit			0.21			0.01
	Financial product *			8.59			-
	Total restricted cash - current		$	9.91		$	2.46
	Performance guarantee - noncurrent		$	0.12		$	0.14
	* Financial product from a commercial bank in the PRC for RMB 40,000,000 ($8.59 million) was entered into on November 27, 2014 with maturity on January 7, 2015. The financial product has an expected annual interest rate of 4.5%.
	The following table presents in US dollars (“USD”) the amount of cash and equivalents held by the Company as of December 31, 2014 and 2013, based on the jurisdiction of deposit. The Company’s US parent holds cash and equivalents in US bank accounts denominated in USD.
			United States			China			Germany		Total
	31-Dec-14		$	68,103		$	13,118,523		$	495,998	$	13,682,624
	31-Dec-13		$	251,461		$	11,326,282		$	2,024,656	$	13,602,399
	Accounts and Retentions Receivable
	The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, the Company had allowances of $39.26 million and $48.25 million at December 31, 2014 and 2013, respectively.
	At December 31, 2014 and 2013, the Company had retentions receivable from customers for product quality assurance of $3.64 million and $4.44 million, respectively. The retention rate varies from 5% to 20% of the sales price with variable terms from three to 24 months depending on the shipping date, and for PHE Units, the customer acceptance date, of the products and the number of heating seasons that the warranty period covers. The Company had allowances of $2.33 million and $0 at December 31, 2014 and 2013, respectively.
	Accounts receivable is net of unearned interest of $26,558 and $26,655 at December 31, 2014 and 2013, respectively. Unearned interest is imputed interest on accounts receivable with due dates over one year from the invoice date discounted at the Company’s borrowing rate of 6.15% at December 31, 2012. The Company did not record additional unearned interest after December 31, 2012 due to no long-term accounts receivable.
	Bad Debt Allowance
	The Company records 50% and 100% of accounts receivable aged over 180 and 360 days, respectively, from the payment due date as bad debt allowance.  Management of the Company’s subsidiaries further analyzes each individual customer for which it was taken a bad debt allowance to further assess the likelihood of collectability.  Customers which are either state-owned or have a history of support from the state, or larger companies with long operating histories, that management of the Company’s subsidiaries believe the chance of non-payment will be remote, are excluded for the purpose of calculating bad debt allowance.
	Advances to Suppliers
	The Company makes advances to certain vendors to purchase raw material and equipment for production. The advances are interest-free and unsecured.
	Inventories
	Inventories are valued at the lower of cost or market, with cost determined on a moving weighted-average basis. The difference is recorded as a cost of goods sold, if the current market value is lower than their historical cost.  In addition, the Company makes an inventory impairment provision analysis at each period end for inventory held over 360 days. Cost of work in progress and finished goods comprises direct material, direct labor and an allocated portion of production overheads.
	Certain raw materials, such as stainless steel products, plates, shims, gaskets, and pump valves, require longer than normal procurement periods, or “lead times,” with some procurement periods running longer than six months. To guarantee availability of raw materials for production and sales, the Company’s subsidiaries, based on historical sales patterns, estimate and purchase material for the upcoming periods.
	As part of inventory impairment analysis, the Company performs an evaluation of raw materials stored over one year and not anticipated to be consumed, and an evaluation of potential impairment to the quality of these raw materials. If management anticipates that obsolete raw materials in inventory can be utilized and will be consumed within the next six months through new customer orders or substitute orders, no impairment is recorded. The Company collects information about delayed and canceled contracts and meets with affected customers to discuss their financing situation and their projections of future orders. Finished goods manufactured for delayed and canceled contracts that the Company does not expect to be reinstated and contracts for which the Company has been unable to find substitute customers become impaired.
	Property and Equipment, net
	Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 10% salvage value and estimated lives as follows:
	Buildings	20 years
	Vehicles	5 years
	Office equipment	5 years
	Production equipment	5-10 years
	Land Use Rights, net
	Rights to use land is stated at cost less accumulated amortization. Amortization is provided using the straight-line method over 50 years.
	Impairment of Long-Lived Assets
	Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.
	Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value (“FV”) of the assets. FV generally is determined using the asset’s expected future discounted cash flows or market value, if readily determinable.
	On December 30, 2013, the Company closed the transaction contemplated by the EIPA dated October 10, 2013, whereby the buyers purchased 40% of the Company’s equity interests in the Target Companies: Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and XinRui for the purchase price of RMB 5 million ($0.82 million) (See Note 1). The buyers had the option to purchase the remaining 60% equity interest in the Target Companies for an additional purchase price of RMB 8.5 million ($1.39 million).
	According to FASB ASC Subtopic 360-10-35, a long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company believed the following events or changes in circumstances indicated the carrying amount of its long-lived assets (asset group) may not be recoverable: 1) a current expectation that, more likely than not, a long-lived assets (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, and 2) a significant decrease in the market price of a long-lived asset (asset group). Since the Company has the option to sell 100% ownership in Target Companies for RMB13.5 million ($2.21 million), a significant decrease in the market price before the end of its previously estimated useful life for their long-lived assets, the Company therefore performed asset recoverability testing by comparing the assets’ estimated future undiscounted cash flows with their carrying value, and concluded the long-lived assets were not recoverable as a result of future cash flows being less than the carrying amount.  The Company further calculated the impairment losses of Target Companies by determining the FV for the long-lived asset group and recorded a write-down (loss) for the difference between their carrying value and their FV.  FV is an asset’s purchase or sale price in a current transaction between willing parties. The best evidence of FV is prices quoted in active markets, although the Company has the option to sell 100% ownership in Target Companies for RMB13.5 million ($2.21 million), the market prices are not available for many long-lived assets such as equipment, the Company therefore used discounted cash flow method for estimating the FV of long-lived assets which are acceptable under FASB ASC Subtopic 360-10.
	Based on its evaluation, the Company believed, as of December 31, 2013, the long-lived assets of Target Companies including construction in progress, property and equipment, and intangible assets were impaired for $13.73 million.  In addition, the Company retained remaining 30.6% and 27.6% interest in Ruicheng and XinRui (after the 40% sale), respectively, at December 31, 2013, that was accounted for under the equity method of accounting, the Company recorded the long-term investment in Ruicheng and XinRui at FV as provided in FASB ASC Subtopic 323-10-30-2.  The FV of the long-term investment was the prorated selling price for the remaining 60% equity interest that are allocated to Ruicheng and XinRui for $26,720; accordingly, the Company recorded $0.91 million impairment loss of long-term investment in Ruicheng and XinRui for the excess of the carrying amount over the FV for the year ended December 31, 2013.
	Warranties
	The Company offers all customers standard warranties on its products for one or two heating seasons depending on the terms negotiated. The Company accrues for warranty costs based on estimates of the costs that may be incurred under its warranty obligations. The warranty expense and related accrual is included in the Company’s selling expenses and other payables respectively, and is recorded when revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, its estimates of anticipated rates of warranty claims, costs per claim and estimated support labor costs and the associated overhead. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.
	Activity in the Company’s warranty reserve from January 1, 2013, to December 31, 2014, is as follows:
			2014			2013
	Beginning balance		$	472,558		$	517,076
	Provisions			338,589			331,989
	Actual costs incurred			(338,589	)		(376,507	)
	Ending balance in current liabilities (Note 13)		$	472,558		$	472,558
	Research and Development Costs
Research and development (“R&D”) costs are expensed as incurred and included in general and administrative (G&A”) expenses. These costs primarily consist of cost of materials used, salaries paid for the Company’s development department and fees paid to third parties. R&D costs for the years ended December 31, 2014 and 2013, were $723,910 and $1,424,400, respectively.
Income Taxes
The Company utilizes FASB ASC Topic 740, “Income Taxes,” which requires recognition of deferred tax assets and liabilities for expected future tax consequences of events included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.
Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified as selling, general and administrative expense in the statements of operation. At December 31, 2014, the Company had not taken any significant uncertain tax position on its tax returns for 2013 or prior years, or in computing its tax provision for 2014.
Revenue Recognition
The Company’s revenue recognition policies comply with FASB ASC Topic 605, “Revenue Recognition.” Sales revenue is recognized when PHEs, heat meters and heat pumps are delivered, and for PHE Units when customer acceptance occurs, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition met are recorded as unearned revenue under “Advance from customers.”
The Company’s sales generally provide for 30% of the purchase price on placement of an order, 30% on delivery, 30% upon installation and acceptance of the equipment after customer testing and 10% no later than the termination of the standard warranty period, which ranges from three to 24 months from the acceptance date.
Due to the slowdown of the Chinese economy and tightened monetary policy, and to attract and retain customers, the Company’s subsidiaries adjusted their contract and payment terms to permit more flexible and longer payment terms.
Sales revenue is the invoiced value of goods, net of value-added tax (“VAT”). All of the Company’s products sold in the PRC are subject to a VAT of 17% of gross sales price. This VAT may be offset by the VAT paid by the Company on raw materials and other materials purchased in China and included in the cost of producing the Company’s finished product. The Company recorded VAT payable and VAT receivable net of payments in the financial statements. The Company files VAT tax returns online with PRC tax authorities and offsets the payables against the receivables. SmartHeat Germany, the Company’s German subsidiary, is subject to 19% VAT.
Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday.
Sales returns and allowances were $0 for the years ended December 31, 2014 and 2013. The Company does not provide a right of return, price protection or any other concessions to its customers.
The Company provides a standard warranty to all customers, which is not considered an additional service; rather, an integral part of the product’s sale. The Company believes the existence of its standard product warranty in a sales contract does not constitute a deliverable in the arrangement and thus there is no need to apply the FASB ASC Subtopic 605-25 separation and allocation model for a multiple deliverable arrangement. FASB ASC Topic 450,  “Contingencies,”  specifically addresses the accounting for standard warranties. The Company believes that accounting for its standard warranty pursuant to FASB ASC Topic 450 does not impact revenue recognition because the cost of honoring the warranty can be reliably estimated.
The Company charges for after-sales services provided after the expiration of the warranty period, with after-sales services mainly consisting of cleaning PHEs and repairing and exchanging parts. The Company recognizes such revenue when the service is provided. For the years ended December 31, 2014 and 2013, revenue from after-sales services after the expiration of the warranty period was $215,867 and $24,732, respectively.  Such revenue was recorded in other income.
Cost of Sales
Cost of sales (“COS”) consists primarily of material costs and direct labor and manufacturing overhead directly attributable to the products. Write-down of inventories to the lower of cost or market is also recorded in COS.  The Company also records inventory reserve for inventories aging over 360 days to COS.
Advance from Customers
The Company records payments received from customers in advance of their orders to advance account. These orders normally are delivered within a reasonable period of time based upon contract terms and customer demand.
Concentration of Credit Risk
Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts.
Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable.
The operations of the Company are located primarily in China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, as well as by the general state of the PRC economy.
Statement of Cash Flows
In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts shown on the statement of cash flows may not necessarily agree with changes in the corresponding asset and liability on the balance sheet.
Basic and Diluted Earnings (Loss) per Share (EPS)
Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.
Basic and diluted shares outstanding are the same for the years ended December 31, 2014 and 2013, because the common stock equivalent of the convertible securities outstanding, consisting of unexercised options issued to the Company’s directors and an officer, are anti-dilutive and, accordingly, were excluded from the computation of diluted loss per share. At December 31, 2014 and December 31, 2013, options to purchase 2,500 shares of common stock were outstanding and exercisable, respectively.
Fair Value of Financial Instruments
For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts and other receivables, advances to suppliers, accounts payable, advances from customers, accrued liabilities and short-term debts, the carrying amounts approximate their FVs due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the FV of financial instruments held by the Company. FASB ASC Topic 825, “Financial Instruments,”  defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:
	•	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
	•	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
	•	Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement.
The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815, “Derivatives and Hedging”.
As of December 31, 2014 and 2013, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV.
Foreign Currency Translation and Comprehensive Income (Loss)
The accounts of the US parent company are maintained in USD. The functional currency of the Company’s China subsidiaries is the Chinese Yuan Renminbi (“RMB”) and the functional currency of SmartHeat Germany, the Company’s subsidiary in Germany, is the Euro (“EUR”). The accounts of the China subsidiaries and German subsidiary were translated into USD in accordance with FASB ASC Topic 830,  “Foreign Currency Matters .” According to FASB ASC Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date, stockholders’ equity was translated at the historical rates and statement of operations items were translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220,  “Comprehensive Income).”
The RMB to USD exchange rates and EUR to USD exchange rates in effect as of December 31, 2014 and 2013, and the average exchange rates for the years ended December 31, 2014 and 2013 are as following.  The exchange rates used in translation from RMB to USD were published by State Administration of Foreign Exchange (“SAFE”) of the PRC. The exchange rates used in translation from EUR to USD were published by OANDA Rates.
		Average Exchange Rate						Balance Sheet Date
		For the Years Ended						Exchange Rate
		12/31/14			12/31/13			12/31/14		12/31/13
RMB - USD			6.1431			6.2142			6.119		6.0969
EUR - USD			0.7535			0.753			0.8266		0.7263
Stock-Based Compensation
The Company accounts for its stock-based compensation in accordance with FASB ASC Topics 718 “Compensation – Stock Compensation”  and 505  “Equity” . The Company recognizes in the income statement the grant date FV of stock options and other equity-based compensation issued to employees and non-employees.
Segment Reporting
FASB ASC Topic 280, “Segment Reporting,” Disclosures about Segments of an Enterprise and Related Information, requires use of the “management approach” model for segment reporting.  The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.
The Company has two operating segments: 1) plate heating equipment, meters and related products; and 2) heat pumps and related products.   These operating segments were determined based on the nature of the products offered.  Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.  The Company's chief executive officer and acting chief accountant were identified as the chief operating decision makers.  The Company’s chief operating decision makers direct the allocation of resources to operating segments based on the profitability, cash flows, and other measurement factors of each respective segment.  Historically they were not segmented because the heat pump business was relatively small compared to the plate heating business and both businesses reported to the same executives; however, the Company’s Board and senior management determined that it is useful and efficient to analyze and manage these businesses separately starting from 2013.
The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes. The following table shows the operations of the Company's reportable segments for the years ended December 31, 2014 and 2013, and as of December 31, 2014 and 2013, respectively.
		Years Ended December 31,
		2014			2013
Revenue from unaffiliated customers:
Plate heating, meters and related		$	28,010,658		$	38,882,321
Heat pumps and related			6,065,301			5,959,011
Inter-segment elimination			-			(131,806	)
Consolidated		$	34,075,959		$	44,709,526
Operating loss:
Plate heating, meters and related		$	(7,741,793	)	$	(48,917,343	)
Heat pumps and related			(2,885,498	)		(2,886,815	)
Corporation			(1,375,270	)		(2,439,168	)
Inter-segment elimination			-			1,055
Consolidated		$	(12,002,561	)	$	(54,242,271	)
Net loss to SmartHeat Inc:
Plate heating, meters and related		$	(5,633,520	)	$	(44,283,015	)
Heat pumps and related			(2,326,142	)		(2,095,207	)
Corporation			(1,608,326	)		(3,292,174	)
Inter-segment elimination			-			1,055
Consolidated		$	(9,567,988	)	$	(49,669,341	)
Depreciation and amortization:
Plate heating, meters and related		$	176,476		$	1,537,002
Heat pumps and related			462,512			511,846
Corporation			177,252			133,792
Consolidated		$	816,240		$	2,182,640
Total assets:		As of December 31, 2014			As of December 31, 2013
Plate heating, meters and related		$	105,010,408		$	113,919,061
Heat pumps and related			41,466,608			13,674,622
Corporation			3,921,076			3,374,858
Inter-segment elimination			(47,199,591	)		(16,153,739	)
Consolidated		$	103,198,501		$	114,814,802
New Accounting Pronouncements
In January 2014, FASB issued, Accounting Standards Update (“ASU”) 2014-05, Service Concession Arrangements (ASC Topic 853). The objective of this Update is to specify that an operating entity should not account for a service concession arrangement within the scope of this Update as a lease in accordance with FASB ASC Topic 840, “ Leases ”. Service concession arrangements may become more prevalent in the United States as public-sector entities seek alternative ways to provide public services on a more efficient and cost-effective basis. The amendments apply to an operating entity of a service concession arrangement entered into with a public-sector entity grantor when the arrangement meets certain conditions. The amendments in this Update should be applied on a modified retrospective basis to service concession arrangements that exist at the beginning of an entity’s fiscal year of adoption. The modified retrospective approach requires the cumulative effect of applying this Update to arrangements existing at the beginning of the period of adoption to be recognized as an adjustment to the opening retained earnings balance for the annual period of adoption. The amendments are effective for a public business entity for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU will not affect the Company’s financial statements.
The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in FASB ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.
The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (ASC Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position and results of operations.
As of December 31, 2014, there is no recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements.
Reclassification
Certain prior year amounts were reclassified to conform to the manner of presentation in the current period, which includes the reclassification of a $2.30 million allowance for other receivables to allowance for advances to suppliers.

3_INVENTORIES_NET

3. INVENTORIES, NET	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	3. INVENTORIES, NET
	Inventories at December 31, 2014 and 2013, were as follows:
		2014			2013
	Raw materials	$	47,748,997		$	48,258,773
	Work in process		8,473,197			6,822,102
	Finished goods		11,655,631			12,639,202
	Total		67,877,825			67,720,077
	Inventory allowance		(18,528,630	)		(11,395,714	)
	Inventories, net	$	49,349,195		$	56,324,363

4_NOTES_RECEIVABLE_BANK_ACCEPT

4. NOTES RECEIVABLE - BANK ACCEPTANCES	12 Months Ended
	Dec. 31, 2014
Receivables [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	4. NOTES RECEIVABLE – BANK ACCEPTANCES
	The Company sold goods to its customers and received commercial notes (bank acceptances) from them in lieu of payments for accounts receivable. The Company discounted the commercial notes with the banks or endorsed the commercial notes to vendors for payment of their own obligations or to get cash from third parties. Most of the commercial notes have a maturity of less than nine months. As of December 31, 2014 and 2013, the Company was contingently liable for the notes endorsed to vendors of $0.92 million and $1.37 million, respectively.

5_OTHER_RECEIVABLES_NET_PREPAY

5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block Supplement [Abstract]
Other Assets Disclosure [Text Block]	5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS
	Other receivables, prepayments and deposits consisted of the following at December 31, 2014 and 2013, respectively:
		2014			2013
	Advance to third party companies	$	14,212,310		$	10,059,572
	Deposit for public bids of sales contracts		168,235			758,465
	Prepayment for freight, related, insurance, advertisement and consulting expenses		287,998			73,773
	Other deposits		60,185			53,863
	Advance to employees		1,334,715			926,441
	Others		676,157			680,588
	Total		16,739,600			12,552,702
	Less: bad debt allowance		(11,671,189	)		(7,603,941	)
	Other receivables (net), prepayments and deposits	$	5,068,411		$	4,948,761
	Advances to third party companies were short-term unsecured advances to unrelated parties with payment usually due within a year and includes an advance to Siping Beifang of RMB 22.13 million ($3.60 million) that is non-interest bearing and with due date extended to the end of 2014. The Company had bad debt allowance of $3.60 million for advance to Siping Beifang as of December 31, 2014.
	Deposits for public bidding represented the deposits for bidding on expected contracts, which will be returned to the Company after the bidding process is completed, usually within three to four months from the payment date. Prepayment for freight, related insurance expenses and advertisement represented prepaid shipping and freight insurance expenses for customers and is generally repaid upon customer receipt of products and prepaid advertising expense.
	Other deposits mainly consisted of deposits for rents, payroll expense and utilities. Advance to employees represented short-term loans to employees and advances for business trips and related expenses. Other receivables (consisting of advance to third parties and employees, deposit for public bids and others), prepayments and deposits are reimbursed or settled within 12 months.

6_PROPERTY_AND_EQUIPMENT_NET

6. PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	6. PROPERTY AND EQUIPMENT, NET
	Property and equipment consisted of the following at December 31, 2014 and 2013:
		2014			2013
	Buildings	$	4,967,230		$	4,980,184
	Production equipment		9,134,092			8,599,701
	Office equipment		1,139,249			1,124,176
	Vehicles		932,657			940,624
	Total		16,173,228			15,644,685
	Less: accumulated depreciation		(5,661,537	)		(5,459,525	)
	Less: impairment		(8,516,171	)		(8,547,040	)
	Property and equipment, net	$	1,995,520		$	1,638,120
	Depreciation for the years ended December 31, 2014 and 2013, was $371,172 and $1,482,500, respectively.

7_INTANGIBLE_ASSETS_NET

7. INTANGIBLE ASSETS, NET	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block [Abstract]
Intangible Assets Disclosure [Text Block]	7. INTANGIBLE ASSETS, NET
	Intangible assets consisted mainly of land use rights, trademarks, computer software, know-how technology, customer lists and covenants not to compete. All land in the PRC is government-owned and cannot be sold to any individual or company. However, the government grants the user a “land use right” to use the land. The Company acquired land use rights during 2005 for RMB 3.55 million ($0.44 million). In June 2009, the Company acquired land use rights for $3.1 million from Siping Beifang. In November 2010, the Company’s subsidiary, SmartHeat Energy, acquired land use rights for $10.10 million. The Company has the right to use the land for 50 years and is amortizing such rights on a straight-line basis over that period.
	SmartHeat Energy later cancelled the purchase of the land use right due to the adjustments of the overall development plan of the area by the local authority. On May 21, 2014, SmartHeat Energy and Shenyang City Development and Land Resource Bureau Economy and Technology Development Office entered into an official agreement, whereby full purchase price of the land use right would be returned to SmartHeat Energy in installments within five days from the effective date of the official agreement.  SmartHeat Energy will make the ownership change of the land use right upon receiving the refund from the local authority. SmartHeat Energy received total amount of $14.89 million (RMB 91.62 million) as of December 31, 2014 and is in the process of title transfer, which is expected to complete by the end of 2015. Currently the land is used by an unrelated third party.
	Intangible assets consisted of the following at December 31, 2014 and 2013, respectively:
		Estimated Useful	2014			2013
		Life (In years)
	Land use rights	50	$	4,134,587		$	15,167,552
	Know-how technology	5 – 10		610,121			911,423
	Customer lists	5		-			214,841
	Covenants not to compete	5		-			116,873
	Software	5		460,899			680,049
	Trademarks	7		297,471			298,549
	Total			5,503,078			17,389,287
	Less: accumulated amortization			(1,097,055	)		(2,503,664	)
	Less: impairment			(3,829,024	)		(3,842,904	)
	Intangible assets, net		$	576,999		$	11,042,719
	Amortization of intangible assets for the years ended December 31, 2014 and 2013, was $267,810 and $566,300, respectively.  Annual amortization for the next five years from December 31, 2014, is expected to be $138,010, $133,180, $128,500, $75,750 and $66,740, and $34,820 thereafter.

8_CONSTRUCTION_IN_PROGRESS

8. CONSTRUCTION IN PROGRESS	12 Months Ended
	Dec. 31, 2014
Constructions In Process Disclosure [Abstract]
Constructions In Process Disclosure [Text Block]	8. CONSTRUCTION IN PROGRESS
	As of December 31, 2014, SmartHeat Siping had construction in progress of $84,533 for expanding and upgrading its production line and production equipment. Total cost for the construction is $0.98 million, and is expected to complete in June 2015.

9_LONG_TERM_INVESTMENT

9. LONG TERM INVESTMENT	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block Supplement [Abstract]
Cost and Equity Method Investments Disclosure [Text Block]	9. LONG TERM INVESTMENT
	Prior to December 30, 2013, the Company invested $722,700 to establish XinRui. The Company owned 46% of XinRui and accounted for this investment under the equity method. On December 30, 2013, the Company sold 40% equity interest of XinRui and owns 27.6% of Xinrui after the sale (See Note 2). The carrying amount of investment in Xinrui after the sale was $612,808. The investment income from XinRui was $10,390 during the year ended December 31, 2014.
	The unaudited condensed Statement of Income of XinRui for the year ended December 31, 2014 is below:
	Net revenue	$	1,150,104
	Cost of revenue		(866,903	)
	Gross profit		283,201
	Operating expenses		234,612
	Income from operations		48,589
	Non-operating income		1,628
	Income tax expense		(12,571	)
	Net income	$	37,646
	Prior to December 30, 2013, the Company invested $771,600 for 51% of the equity in Ruicheng.  The Company sold 40% equity interest of Ruicheng on December 30, 2013, and owns 30.6% of Ruicheng after the sale (See Note 2). The carrying amount of investment in Ruicheng after the sale was $321,997. The investment loss from Ruicheng was $7,582 during the year ended December 31, 2014.
	The unaudited condensed Statement of Income of Ruicheng for the year ended December 31, 2014 is below:
	Net revenue	$	1,006,085
	Cost of revenue		(864,666	)
	Gross profit		141,419
	Operating expenses		171,379
	Loss from operations		(29,960	)
	Non-operating income		5,181
	Income tax expense		-
	Net loss	$	(24,779	)
	The long term investment was accounted for under the equity method of accounting, the Company recorded the long-term investment in Ruicheng and XinRui at FV as provided in FASB ASC Subtopic 323-10-30-2.  The FV of the long-term investment was the prorated selling price for the remaining 60% equity interest that are allocated to Ruicheng and XinRui for $26,721 at December 31, 2013,  accordingly, the Company recorded $0.91 million impairment loss of long-term investment in Ruicheng and XinRui for the excess of the carrying amount over the FV for the year ended December 31, 2013.  The FV of the long-term investment was $29,540 at December 31, 2014.

10_MAJOR_CUSTOMERS_AND_VENDORS

10. MAJOR CUSTOMERS AND VENDORS	12 Months Ended
	Dec. 31, 2014
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	10. MAJOR CUSTOMERS AND VENDORS
	For the year ended December 31, 2014, no customers accounted for over 10% of the Company’s total sales.
	One customer accounted for 10% of total sales for the year ended December 31, 2013. At December 31, 2013, total receivable from this customer was $1,286,257.
	For the year ended December 31, 2014, one vendor accounted for 14% of the Company’s total purchases. At December 31, 2014, total payable to this vendor was $0.
	For the years ended December 31, 2013, no vendors accounted for over 10% of the Company’s total purchases.

11_TAXES_RECEIVABLE

11. TAXES RECEIVABLE	12 Months Ended
	Dec. 31, 2014
Taxes Receivable [Abstract]
Taxes Receivable [Text Block]	11. TAXES RECEIVABLE
	Taxes receivable consisted of the following at December 31, 2014 and 2013:
		2014		2013
	Income	$	180,111	$	180,764
	Value-added		122,816		787,293
	Other		22,325		21,578
	Taxes receivable	$	325,252	$	989,635

12_TAXES_PAYABLE

12. TAXES PAYABLE	12 Months Ended
	Dec. 31, 2014
Tax Disclosure [Abstract]
Tax Disclosure [Text Block]	12. TAXES PAYABLE
	Taxes payable consisted of the following at December 31, 2014 and 2013:
		2014		2013
	Income	$	-	$	516
	Value-added		160,033		160,118
	Other		36,213		36,444
	Taxes payable	$	196,246	$	197,078

13_ACCRUED_LIABILITIES_AND_OTH

13. ACCRUED LIABILITIES AND OTHER PAYABLES	12 Months Ended
	Dec. 31, 2014
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	13. ACCRUED LIABILITIES AND OTHER PAYABLES
	Accrued liabilities and other payables consisted of the following at December 31, 2014 and 2013:
		2014		2013
	Advance from third parties	$	3,273,985	$	3,378,167
	Payable to Siping Beifang		2,368,285		2,306,184
	Payable for equipment purchase		326,688		322,295
	Payable to employees		226,308		-
	Deposit from customer		2,977,447		2,988,240
	Refund of land use right purchased		4,816,685		4,627,270
	Other		2,805,560		1,738,241
	Warranty reserve (See Note 2)		472,558		472,558
	Accrued expenses		2,051,945		1,382,051
	Accrued liabilities and other payables	$	19,319,461	$	17,215,006
	Advances from third parties were short-term, non-interest-bearing advances due on demand. Payable to Siping Beifang (unrelated third party company) represented loans to them without interest and payable upon demand. Deposit from customer represented advance payment from a customer for the Company to execute the sales order; however, the customer wanted to cancel the order after the Company commenced manufacturing and the Company refused to return the deposit claiming breach of the contract by the customer. The dispute was filed with the court and is currently docketed for trial.
	Refund of land use right previously purchased represented the refund received for the land use right SmartHeat Energy purchased in November 2010. SmartHeat Energy later cancelled the purchase due to the adjustments of the overall development plan of the area by the local authority. The local government agreed to the cancellation and refunded SmartHeat Energy $4.63 million as of December 31, 2013, and was committed to refund SmartHeat Energy the remaining purchase price.  On May 21, 2014, SmartHeat Energy and Shenyang City Development and Land Resource Bureau Economy and Technology Development Office entered into an official agreement, whereby full purchase price of the land use right will be returned to SmartHeat Energy in installments within 5 days from the effective date of the official agreement.  SmartHeat Energy will make the ownership change of the land use right upon receiving the refund from the local authority. As of December 31, 2014, SmartHeat Energy received a total of $14.89 million (RMB 91.62 million), of which, $4.82 million received in excess of the amount paid to acquire land use right. The local government has not yet made qualitative determination about the excess amount and until such time SmartHeat Energy receives further information, the excess amount will be recorded as other payable. The land use right title transfer is expected to complete by the end of 2015. Currently the land is used by the third party.
	Other represented payables for the Company’s certain construction and installation projects, and miscellaneous expenses including postage, business insurance, employee benefits, project bidding fee, and medical insurance, etc. Accrued expenses mainly consisted of accrued property and land rental fee of $1.23 million, accrued payroll of $0.36 million, accrued welfare, interest and utility.  The accrued rental of $1.23 million represented the office and factory lease of HeatPump from Shenyang Economic and Technological Development Zone State-owned Assets Management Co., Ltd., whom is the minority shareholder of HeatPump, there was no contract for the lease and the lease was on month-to-month basis.

14_NOTES_PAYABLE_BANK_ACCEPTAN

14. NOTES PAYABLE - BANK ACCEPTANCES	12 Months Ended
	Dec. 31, 2014
Notes Payable Disclosure [Abstract]
Notes Payable Disclosure [Text Block]	14. NOTES PAYABLE – BANK ACCEPTANCES
	Notes payable represented the conversion of accounts payable into notes payable, which were issued by a bank. The Company deposited a portion of the acceptance amount into the bank as collateral. The terms of the notes range from 3-6 months and bear no interest. At December 31, 2014 and 2013, the Company deposited $0.70 million and $1.29 million with the bank as restricted cash for the bank issuing the notes (See note 2). The restricted cash is refundable when the notes are repaid.

15_LOANS_PAYABLE

15. LOANS PAYABLE	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	15. LOANS PAYABLE
	Short-Term Bank Loans
	The Company was obligated for the following short-term loans as of December 31, 2014 and 2013:
		2014		2013		Subsidiary obligated
	From a commercial bank in the PRC for RMB 7,200,000 entered into on February 20, 2014.The loan bore interest at 6% with maturity on February 19, 2015.  This loan was repaid at maturity.	$	1,176,663	$	-	Taiyu
	From a commercial bank in the PRC for RMB 20,000,000 entered into on August 11, 2014. The loan bore interest at 7.2% with maturity on August 11, 2015. The loan was guaranteed by Heat Pump and SanDeKe.		3,268,508		-	Taiyu
	From a commercial bank in the PRC for RMB 20,000,000 entered into on August 19, 2014. The loan bore interest at 7.2% with maturity on August 19, 2015. The loan was guaranteed by Heat Pump and SanDeKe.		3,268,508		-	Taiyu
	From a commercial bank in the PRC for RMB 8,765,114 entered into on September 17, 2014. The loan bore interest at 7.2% with maturity on March 17, 2015.  The loan was pledged by the Taiyu’s accounts receivable.  This loan was repaid at maturity.		1,432,442		-	Taiyu
	From a commercial bank in the PRC for RMB 13,344,190 entered into on September 26, 2012. The loan bore interest at 6.16% with maturity on January 18, 2014. The loan was repaid at maturity.		-		2,188,684	Taiyu
	From a commercial bank in the PRC for RMB 10,000,000 entered into on November 30, 2012. The loan bore interest at 7.87% with maturity on November 22, 2014. The loan was guaranteed by Taiyu. This loan was repaid at maturity.		-		1,640,178	SmartHeat Siping
	From a commercial bank in the PRC for RMB 40,000,000 entered into on March 11, 2013. The loan bore interest at 6.60% with maturity on March 10, 2014. The loan was guaranteed by Siping, HeatPump and management of Chinese subsidiaries. This loan was repaid at maturity.		-		6,560,711	Taiyu
	From a commercial bank in the PRC for RMB 10,000,000 entered into on May 21, 2013. The loan bore interest at 6.60% with maturity on May 20, 2014. This loan was repaid at maturity.		-		1,640,178	Taiyu
	From a commercial bank in the PRC for RMB 5,000,000 entered into on August 29, 2013. The loan bore interest at 7.20% with maturity on August 29, 2014.  The loan was guaranteed by Taiyu. This loan was repaid at maturity.		-		820,089	SmartHeat
	From a commercial bank in the PRC for RMB 5,000,000 entered into on September 4, 2013. The loan bore interest at 7.20% with maturity on September 4, 2014.  The loan was guaranteed by Taiyu. This loan was repaid at maturity.		-		820,089	SmartHeat
	From a commercial bank in the PRC for RMB 30,000,000 entered into on August 8, 2013. The loan bore interest at 6.90% with maturity on August 7, 2014. The loan was paid in full at maturity.		-		4,920,533	Taiyu
	From a commercial bank in the PRC for RMB 9,900,000 entered into on September 18, 2013. The loan bore interest at 6.0% with maturity on September 17, 2014.  This loan was pledged by Taiyu’s accounts receivable. This loan was repaid at maturity.		-		1,623,776	Taiyu
	From a commercial bank in the PRC for RMB 9,900,000 entered into on October 11, 2013.  The loan bore interest at 6.0% with maturity on October 10, 2014. This loan was pledged by Taiyu’s accounts receivable. This loan was repaid at maturity.		-		1,623,776	Taiyu
	From a commercial bank in the PRC for RMB 16,000,000 entered into on July 10, 2013. The loan bore interest at 6.0% with maturity on January 9, 2014. This loan was pledged by Taiyu’s accounts receivable. This loan was repaid at maturity.					Taiyu
			-		2,624,285
	From a commercial bank in the PRC for RMB 36,000,000 entered into on April 23, 2014. The loan bore interest at 7.2% with maturity on April 22, 2015. This loan was pledged by Siping, Heat Pump, SanDeKe, and two officers of the Chinese subsidiaries.		5,883,314		-	Taiyu
	From a commercial bank in the PRC for RMB 4,000,000 entered into on April 23, 2014. The loan bore interest at 7.2% with maturity on April 22, 2015. This loan was guaranteed by Siping, Heat Pump, SanDeKe, and two officers of the Chinese subsidiaries.		653,702		-	Taiyu
	From a commercial bank in the PRC for RMB 24,693,389 entered into on October 15, 2014. The loan bore interest at 7.2% with maturity on April 15, 2015.		4,035,527		-	Taiyu
	From a commercial bank in the PRC for RMB 13,000,000 entered into on October 30, 2013. The loan bore interest at 6.46% with maturity on October 29, 2015.  The loan was pledged by the Taiyu’s land and building.		2,124,530		-	Taiyu
	From a commercial bank in the PRC for RMB 10,000,000 entered into on November 17, 2014. The loan bore interest at 7.00% with maturity on November 17, 2015.  The loan was guaranteed by Taiyu.		1,634,254		-	SmartHeat Siping
	From a commercial bank in the PRC for RMB 10,000,000 entered into on October 13, 2014. The loan bore interest at 5.60% with maturity on September 19, 2015.  The loan was guaranteed by Taiyu.		1,634,254		-	SmartHeat Siping
	TOTAL	$	25,111,702	$	24,462,299
	The banks sometimes require loan guarantee provided by a third party to the Company, the third party loan guarantor was Liaoning Wugang Metal Trading Co., Ltd. (“Liaoning Wugang”), with a maximum guarantee of RMB 46 million ($7.32 million). The guarantee was for the loans entered from February 20, 2012 to August 16, 2013, with the guarantee length equal to the loan term; the guarantee service was extended for the loans entered from September 18, 2013 to September 12, 2014 with the guarantee length equal to the loan term, the maximum guarantee amount was revised to RMB 44 million ($7.05 million).  The Company was not required to pay any guarantee fees. However, the Company has contracted to provide similar guarantees for up to RMB 20 million ($3.18 million) to Liaoning Guorui Commercial Trading Co., Ltd. (“Guorui”). The guarantee was for the loans entered from January 12, 2012 to January 11, 2013 with the guarantee length equal to the loan term, the Company did not require Guorui to pay any guarantee fees.  The Company did not extend the guarantee term for Guorui after January 11, 2013.  These arrangements are common to the banking industry in China, and there are no other relationships between the Company and Liaoning Wugang or Guorui, both of whom were referred to the Company by the lending bank.  As of December 31, 2014 and 2013, the Company did not have any loan guarantees from Liaoning Wugang.
	Holding Company Credit Agreement – Credit Line Payable
	On July 27, 2012, the Company entered into a secured, revolving credit facility under the terms of a Secured Credit Agreement (the “Credit Facility” or the “Credit Agreement”) with Northtech Holdings Inc., a British Virgin Islands business corporation (“Northtech”), owned by certain members of the Company’s former management, James Wang, Rhett Wang and Wen Sha. Jane Ai, the Company’s Corporate Secretary is also a part owner of Northtech. As amended on December 21, 2012, the Credit Facility provides for borrowings of up to $2.5 million.
	Borrowings under the Credit Facility are secured by the Company’s deposit accounts located in the US, its trademarks in the PRC and 55% of its equity in each of its wholly-, directly owned subsidiaries.  An origination fee of 4% of the Committed Amount was accrued to Northtech upon the signing of the Credit Agreement. As amended, Borrowings bear interest of 10% annually, payable quarterly, and the Credit Facility matured on April 30, 2013, and extended to April 30, 2014 with an extension fee of 4% of the Committed Amount. Generally, borrowings may be prepaid at any time without premium or penalty, provided however that if the Company prepays any amount due under the Credit Facility from the proceeds of another instrument or agreement of indebtedness, the Company shall pay a 10% prepayment fee.  All amounts due under the Credit Facility may, at the Company’s option, be paid in either cash or restricted shares of the Company’s common stock.
	On June 25, 2013, the Board approved second amendment to the credit and security agreement and on August 23, 2013, the Company entered into second amendment to the credit and security agreement with Northtech, which redefined the “base rate”, and adjusted the base rate to 10% annually, compounded quarterly, effective January 1, 2013.  The Company delivered to Northtech 100,000 restricted shares of the Company’s common stock as an Amendment Fee (see Note 19), issued in September 2013.
	On December 21, 2012, the Company’s BOD approved the issuance of 1,300,000 Restricted Shares of Common Stock to Northtech in cancellation of $1,301,300 of indebtedness under the Credit Facility.  The balance owing to Northtech under the Credit Agreement as of December 31, 2014 and 2013 was $2,749,335 and $1,396,378, respectively, and was recorded as a noncurrent obligation under FASB ASC Subtopic 470-10-45-12 through FASB ASC Subtopic 470-10-45-14 due to the Note being secured by 55% of the equity interest in each of HEAT PHE Inc. and HEAT HP Inc., and the Company’s option to repay the note by issuance of the Company’s shares.
	The Company had $100,000 payable to a consulting firm that was paid by a third party on behalf of the Company during 2012, this payable to the third party was assumed by Northtech on August 23, 2013, in exchange for 200,000 shares of the Company’s common stock issued in September 2013, and payable for a credit line balance from Northtech.  The stock price was $0.60 on August 23, 2013, the Company recognized $20,000 loss for the settlement of this payable by shares with Northtech.
	On March 26, 2014, the Company gave notice to Northtech pursuant to the terms of the Credit and Security Agreement between the Company and Northtech, dated July 27, 2012, as amended, extending the maturity date on the Credit Agreement from April 30, 2014 to January 3, 2015. The Company elected to pay the extension fee of 4% of the credit line amount of $2.5 million by issuing 200,000 shares of its common stock to Northtech at $0.50 per share. The BOD approved such extension on March 27, 2014.  The FV of 200,000 shares on March 27, 2014 was $30,000. The Company recorded $70,000 gain from issuance of 200,000 shares.
	On July 14, 2014, the Board approved and the Company entered the third amendment to the Credit Agreement with Northtech, the Amendment modifies the definition of “Average Share Price” in the Credit Agreement to decrease the minimum and maximum values for the “Average Share Price,” by 20% each from $0.50 to $0.40 and from $3.50 to $2.80, respectively.  The Amendment also increases the maximum line which may be borrowed under the Credit Agreement from $2,500,000 to $3,250,000 and extends the maturity date for amounts borrowed from April 30, 2014 to October 31, 2015.  Pursuant to the terms of the Amendment, the Company extended the Initial Maturity Date by a payment to Northtech of an extension fee of 4% of the Maximum Line under the Credit Agreement. Northtech agreed to the extension of the maturity in consideration of an extension fee of 200,000 Restricted Shares of the Company’s Common Stock at $0.50 per share issued on July 22, 2014. The FV of 200,000 shares on July 22, 2014 was $40,000.  The Company recorded $60,000 gain from issuance of 200,000 shares.
	Long-Term Bank Loan
	Taiyu entered into a long-term loan of $2,112,962 (RMB13 million) with China Construction Bank on November 30, 2013 with maturity on November 29, 2015. The interest rate for the loan is variable currently at 6.46%, and to be paid on the 20th of each month. This loan is guaranteed by Taiyu’s building and land. As of December 31, 2014, long-term bank loan was $0 due to this loan was reclassified as a short-term bank loan.

16_DEFERRED_TAX_ASSET_LIABILIT

16. DEFERRED TAX ASSET (LIABILITY)	12 Months Ended
	Dec. 31, 2014
Deferred Tax Assets Liabilities Net Disclosure [Abstract]
Deferred Tax Assets Liabilities Net Disclosure [Text Block]	16. DEFERRED TAX ASSET (LIABILITY)
	As of December 31, 2014 and 2013, deferred tax asset (liability) consisted of the following:
		2014			2013
	Deferred tax asset - current (bad debt allowance for accounts receivable)	$	6,361,682		$	7,715,041
	Deferred tax asset - current (bad debt allowance to retention receivable)		364,697			-
	Deferred tax asset - current (inventory allowance)		3,446,251			2,321,878
	Deferred tax asset – current (bad debt allowance for other receivables)		2,822,959			1,523,065
	Deferred tax asset – current (allowance for advance to supplier)		589,761			974,284
	Deferred tax asset – current (reserve for warranty)		42,643			75,808
	Deferred tax asset – noncurrent (NOL)		2,931,171			2,464,239
	Deferred tax asset – noncurrent (impairment loss on long – lived assets)		3,054,588			3,334,594
	Less: valuation allowance		(19,613,752	)		(18,408,909	)
	Deferred tax assets, net	$	-		$	-
	Deferred tax liability - noncurrent (depreciation of fixed assets)	$	(66,024	)	$	(17,177	)

17_INCOME_TAXES

17. INCOME TAXES	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	17. INCOME TAXES
	The Company is subject to income taxes by entity on income arising in or derived from the tax jurisdiction in which each entity is domiciled.  The Company’s PRC subsidiaries file their income tax returns online with PRC tax authorities.
	SmartHeat, the parent company, was incorporated in the US and has net operating losses (“NOL”) for income tax purposes, which can be carried forward for up to 20 years from the year the loss is incurred. SmartHeat has NOL carry forwards for income taxes of approximately $8.50 million at December 31, 2014, which may be available to reduce future years’ taxable income. Management believes the realization of benefits from these losses remains uncertain due to SmartHeat’s limited operating history and continuing losses. Accordingly, a 100% deferred tax asset valuation allowance was provided.
	Taiyu and SanDeKe are governed by the Income Tax Law of the PRC concerning privately-run enterprises, which are generally subject to tax at 25% on income reported in the statutory financial statements after appropriate tax adjustments. Under the Income Tax Law that became effective January 1, 2008, new high-tech enterprises given special support by the PRC government are subject to an income tax rate of 15%. Taiyu has been classified as a high-tech enterprise since 2009 and eligible for an income tax rate of 15% through 2014.  Local PRC government reviews the high-tech status of such enterprises annually. The income tax rate for SanDeKe was 13% for 2012, because of its foreign-invested enterprise status, and its income tax rate increased to 24% in 2013 and 25% in 2014.
	SmartHeat Siping, Jinhui, SmartHeat Investment, SmartHeat Energy, SmartHeat Pump, SmartHeat Trading and Heat Exchange are subject to the regular 25% PRC income tax rate. SmartHeat Germany is subject to a 15% corporate income tax in Germany.
	The following table reconciles the US statutory rates to the Company’s effective tax (benefit) rate for the years ended December 31, 2014 and 2013:
		2014			2013
	US statutory tax (benefit) rates		(34.0	)%		(34.0	)%
	Tax rate difference		8	%		8.4	%
	Effect of tax holiday		5	%		5.2	%
	Valuation allowance		21.4	%		20.3	%
	Tax (benefit) per financial statements		0.4	%		(0.1	)%
	The income tax expense (benefit) for the years ended December 31, 2014 and 2013, consisted of the following:
		2014			2013
	Income tax expense - current	$	-		$	26,612
	Income tax expense (benefit) - deferred		48,717			(77,269	)
	Total income tax expense (benefit), net	$	48,717		$	(50,657	)

18_STATUTORY_RESERVES_AND_REST

18. STATUTORY RESERVES AND RESTRICTED NET ASSETS	12 Months Ended
	Dec. 31, 2014
Statutory Reserves Disclosure [Abstract]
Statutory Reserves Disclosure [Text Block]	18. STATUTORY RESERVES AND RESTRICTED NET ASSETS
	The Company’s ability to pay dividends primarily depends on the Company receiving funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of the subsidiary’s retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with US GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries.
	In accordance with the PRC Regulations on Enterprises with Foreign Investment and their articles of association, a foreign-invested enterprise (“FIE”) established in the PRC is required to provide certain statutory reserves, which are appropriated from net profit as reported in the FIE’s PRC statutory accounts. An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve has reached 50% of its respective registered capital based on the FIE’s PRC statutory accounts. Appropriations to other funds are at the discretion of the BOD for all FIEs. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Additionally, shareholders of an FIE are required to contribute capital to satisfy the registered capital requirement of the FIE. Until such contribution of capital is satisfied, the FIE is not allowed to repatriate profits to its shareholders, unless otherwise approved by the State Administration of Foreign Exchange. Taiyu, SanDeKe, SmartHeat Siping, Jinhui, SmartHeat Investment and Ruicheng were established as FIEs and therefore are subject to the above-mandated restrictions on distributable profits. As of December 31, 2014, the Company met all registered capital requirements for its FIEs except for SmartHeat Investment, for which the Company is committed to contribute an additional $40.00 million in registered capital by April 2015 (See note 20).
	Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide discretionary surplus reserve, at the discretion of the BOD, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. SmartHeat Energy, SmartHeat Trading and SmartHeat Pump were established as domestic enterprises and therefore are subject to the above-mentioned restrictions on distributable profits.
	As a result of these PRC laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company as a dividend.

19_STOCKHOLDERS_EQUITY

19. STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	19. STOCKHOLDERS’ EQUITY
	Stock Options to Independent Directors and Officer
	On February 1, 2010, the Company issued stock options to an officer. The terms of the options were 5,000 shares at an exercise price per share of $118.50, with a life of five years and vesting over two years as follows: 2,500 shares vested on June 30, 2011, and 2,500 shares vested on June 29, 2012. The options were valued using a volatility of 74%, risk free interest rate of 2.76%, and dividend yield of 0%. The grant-date FV of the options was $367,107. On May 25, 2012, the officer resigned from his position as VP of Strategy and Development of the Company, and was not entitled to the remaining unvested options. The remaining obligations of the Company to the officer were released pursuant to a severance agreement and mutual release.
	Based on the FV method under FASB ASC 718, “Compensation-Stock Compensation,” and FASB ASC 505,  “Equity,”  the FV of each stock option granted is estimated on the date of the grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model has assumptions for risk-free interest rates, dividends, stock volatility and expected life of an option grant. The risk-free interest rate is based upon market yields for US Treasury debt securities at a maturity near the term remaining on the option. Dividend rates are based on the Company’s dividend history. The stock volatility factor is based on the historical volatility of the Company’s stock price. The expected life of an option grant is based on management’s estimate. The FV of each option grant to independent directors is calculated by the Black-Scholes method and is recognized as compensation expense over the vesting period of each stock option award.
	Following is a summary of the option activity:
		Number of		Average		Weighted
		Shares		Exercise		Average
				Price per Share		Remaining
						Contractual
						Term in Years
	Outstanding at January 1, 2013		3,500		97.8		1.65
	Exercisable at January 1, 2013		3,500		97.8		1.65
	Granted		-		-		-
	Exercised		-		-		-
	Forfeited		1,000		46		-
	Outstanding at December31, 2013		2,500		118.5		1.34
	Exercisable at December31, 2013		2,500		118.5		1.34
	Granted		-		-		-
	Exercised		-		-		-
	Forfeited		-		-		-
	Outstanding at December 31, 2014		2,500	$	118.5		0.08
	Exercisable at December 31, 2014		2,500	$	118.5		0.08
	There were no options exercised during the years ended December 31, 2014 and 2013. The Company recorded $0 as compensation expense for stock options during the years ended December 31, 2014 and 2013.
	Common Stock Issued
	The Company had $100,000 payable to a consulting firm that was paid by a third party on behalf of the Company during 2012, this payable to the third party was assumed by Northtech on August 23, 2013, for 200,000 shares of the Company’s common stock issued in September 2013. The stock price was $0.60 on August 23, 2013, the Company recognized $20,000 loss for the settlement of this payable by shares with Northtech (see Note 15).
	On June 25, 2013, the Board approved second amendment to the credit and security agreement and on August 23, 2013, the Company entered into second amendment to the credit and security agreement with Northtech, which redefined the “base rate”, and adjusted the base rate to 10% annually, compounded quarterly, effective January 1, 2013.  The Company delivered Northtech 100,000 restricted shares of the Company’s common stock as an Amendment Fee.  The FV of the stocks issued for the Amendment fee was $60,000 (See Note 15).
	On September 17, 2013, the Company’s BOD approved the issuance of 100,000 restricted shares of common stock to Northtech for their consent to the Company to enter into an Equity Interest Purchase Agreement as contemplated by the stalking horse proposal and approved by the Company’s Board. The stock price on the approval date was $0.30, the FV of the shares issued was $30,000. Under the terms of the Equity Interest Purchase Agreement, the buyers agreed to purchase 40% of the Company’s equity interests in the following PHE segment subsidiaries: Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng, and XinRui (collectively, the “Target Companies”).  The purchase price was RMB5 million ($0.82 million), was paid by the buyers on December 30, 2013.
	On March 27, 2014, The Compensation Committee of the Board approved to grant certain individuals the Company’s common stock in recognition of their valuable services to the Company and its subsidiaries in 2013. The individual and number of shares granted is as follows: 100,000 shares to Oliver Bialowons, 50,000 shares to Huajun Ai, 50,000 shares to Xudong Wang and 50,000 shares to Kenneth Scipta. The stock price was $0.15 on grant date, and the FV of the shares granted at the grant date was $37,500 and were issued on April 3, 2014.
	On March 27, 2014, the BOD approved the Company’s request to Northtech for extending the maturity date on the Credit Agreement from April 30, 2014 to January 3, 2015, and pay the extension fee of 4% of the credit line amount of $2.5 million by issuing 200,000 shares of its common stock to Northtech at $0.50 per share. The FV of 200,000 shares on grand date was $30,000 and the Company recognized $70,000 gain from such stock issuance. The shared were issued on April 3, 2014.
	On July 14, 2014, the Company entered the third amendment to the Credit Agreement with Northtech, Pursuant to the terms of the Amendment, the Company extended the Initial Maturity Date by a payment to Northtech of an extension fee of 4% of the Maximum Line under the Credit Agreement. Northtech agreed to the extension of the maturity in consideration of an extension fee of 200,000 Restricted Shares of the Company’s Common Stock at $0.50 per share issued on July 22, 2014. The FV of 200,000 shares on July 22, 2014 was $40,000 and the Company recognized $60,000 gain from such stock issuance.

20_OTHER_INCOME_NET

20. OTHER INCOME, NET	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block [Abstract]
Interest and Other Income [Text Block]	20. OTHER INCOME, NET
	The Company had net other income, of $952,470 and $1,314,945 for the years ended December 31, 2014 and 2013, respectively.  The net other income for the year ended December 31, 2014 consisted of income (net) from sales of raw material of $460,043, government subsidy of $174,364 and other non-operating income of $586,317, but offset by loss (net) from after-sales services of $268,254.  The net other income for the year ended December 31, 2013 consisted of income (net) from sales of raw material of $810,653, government subsidy of $457,717 and other non-operating income of $245,119, but offset by loss (net) from after-sales services of $198,544.

21_COMMITMENTS

21. COMMITMENTS	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block Supplement [Abstract]
Commitments Disclosure [Text Block]	21. COMMITMENTS
	Lease Agreements
	The Company leased offices for its sales representative in several different cities under various one-year, non-cancellable and renewable operating lease agreements. Rental expense for the years ended December 31, 2014 and 2013, was $465,800 and $425,400, respectively.
	Capital Contribution
	The Company formed SmartHeat Investment on April 7, 2010, as an investment holding company with registered capital of $70 million to enable its establishment and investment in new businesses in China. Under PRC company law, registered capital must be used in the operations of the domestic company within its approved business scope. SmartHeat Investment was established as a separate subsidiary of the Company to allow allocation of capital to new businesses in China separate from its existing subsidiaries and operations. As a PRC investment holding company, the $70 million in approved registered capital of SmartHeat Investment is deemed a planned investment amount for the entity, not a traditional registered capital requirement under PRC corporate law. The Company contributed $30 million in capital to SmartHeat Investment on April 15, 2010, from proceeds of its public offering that closed on September 22, 2009. On April 12, 2010, SmartHeat Investment formed SmartHeat Energy, a wholly owned subsidiary in Shenyang with registered capital of $30 million, subsequently satisfied out of the registered capital of SmartHeat Investment, for the research, development, manufacturing and sale of energy products. As of December 31, 2014, the Company is committed to contributing the remaining $40 million in registered capital to SmartHeat Investment by April 2015. The Company may satisfy this contribution through cash flow provided by operations, sales of assets, such as physical assets, financial assets, or interests in its subsidiaries, and funds raised through offerings of its securities, if and when the Company determines such offerings are required, and at such time that the Company identifies a new acquisition, investment or business opportunity to be financed through SmartHeat Investment, although no specific investment candidate has been identified to date.
	Restructuring Agreement with a Consulting Firm
	On April 23, 2012, the Company entered into an agreement (“Agreement”) with Nimbus Restructuring Manager LLC (“Nimbus”), for advice on raising capital and restructuring the Company to maximize value for the benefit of all of the stockholders of the Company.
	Upon execution of the Agreement, the Company paid $200,000 as a deposit and a $50,000 advance for future expenses incurred by Nimbus. Additionally, the Company paid $70,000 per month for 6 months. An additional $600,000 is to be paid upon the completion of the Company’s restructuring to the satisfaction of the Board.
	The Company also issued and sold to Nimbus 300,000 shares of the Company’s restricted common stock for $15,000, or $0.05 per share, the Company has the right to repurchase such shares for $0.20 per share until January 31, 2013, $0.40 per share until September 30, 2013, $0.60 per share until June 30, 2014, $0.80 per share until March 31, 2015 and $1.00 per share until January 31, 2016. On October 12, 2012, the Company issued 300,000 shares of stock to an affiliate of Nimbus at $0.05 per share in accordance with the restructuring agreement.
	The Company shall reimburse Nimbus and its affiliates for all reasonable and appropriate out-of-pocket expenses actually incurred in performance of the services specified in the Agreement.
	On May 9, 2013, the Company entered a Restated Restructuring Agreement with Nimbus, which was intended to be a legally binding restatement of the Restructuring Agreement entered on April 23, 2012. Pursuant to the Restated Restructuring Agreement, the term was extended for an additional 12 monthly periods from original expiration date of January 23, 2013 to January 22, 2014. A monthly service fee of $30,000 is to be paid on the first day of each month for 10 months through November 2013. In addition, a $300,000 termination fee will be paid on the earlier of the expiration of the stated term or the termination by the Company.
	On September 18, 2013, the Company entered Amendment #1 to the Restated Restructuring Agreement with Nimbus, pursuant to the Amendment, the service term was revised after the initial expiration date of January 23, 2013, for an extension of 10 additional month until November 2013, and thereafter extended for 4 additional months until March 2014.  The termination fee of $300,000 will be paid in 4 equal monthly payments of $75,000 each commencing in December 2013 and running through March 2014 or on the earlier of the expiration of the Stated Term or the earlier termination by the Company.
	As of December 31, 2014, the outstanding balance to Nimbus for the service fee was paid in full.

22_CONTINGENCIES

22. CONTINGENCIES	12 Months Ended
	Dec. 31, 2014
Loss Contingency [Abstract]
Contingencies Disclosure [Text Block]	22. CONTINGENCIES
	The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments in China and foreign currency exchange. The Company’s results may be adversely affected by changes in PRC government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad and rates and methods of taxation, among other things.
	The Company’s sales, purchases and expense transactions in China are denominated in RMB and all of the Company’s assets and liabilities in China are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current PRC law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance.
	Legal Proceedings
	On August 31, 2012, a putative class action lawsuit, Steven Leshinsky v. James Wang, et. al., which purported to allege federal securities law claims against the Company and certain of its former officers and directors, was filed in the United States District Court for the Southern District of New York.  Thereafter, two plaintiffs filed competing motions to be appointed lead plaintiff in the proceeding.  A lead plaintiff was appointed and an amended complaint was filed on January 28, 2013, by the Rosen Law Firm. The amended complaint included Oliver Bialowons, our President, and Michael Wilhelm, our former Chief Financial Officer, as defendants in the proceeding though they were not officers of the Company during the alleged class period. A second amended complaint was filed on April 8, 2013, under the caption Stream Sicav, Dharanendra Rai et al. v. James Jun Wang , SmartHeat, Inc. et al., removing Messrs. Wilhelm and Bialowons as defendants.  The second amended complaint alleges two counts against the Company, both asserting violations of the federal securities laws arising from alleged insider sales or management sales of securities and alleged false disclosures relating to those sales. On May 8, 2013, the Company filed a motion to dismiss the second amended complaint which was denied. On March 17, 2014 the court, denied, the lead plaintiff's motion for class certification, without prejudice. On August 6, 2014, the lead plaintiff once again filed a motion for class certification.  On September 19, 2014, the Company filed an opposition to the lead plaintiff’s motion for class certification, to which plaintiff filed a response on October 20, 2014.  By Opinion and Order dated January 21, 2015, the Court denied plaintiffs’ class certification motion, finding that it failed to satisfy the requirements of Fed. R. Civ. Pro. 23 for typicality, adequacy and predominance.  Specifically, the Court found that plaintiffs’ theory of liability required a trade-by-trade inquiry as to whether the sale of the locked-up shares resulted in price inflation of the company’s stock, and that, as a result, the injury to all class members could not be established by common proof.  In addition to finding a lack of predominance of common issues, the Court expressed substantial concerns about the adequacy of the class representative, and that his claims were typical of other class members.  The Court also expressed doubts as to how plaintiffs would establish damages.  The Court’s denial of class certification was without prejudice, and the Court gave plaintiffs until February 17, 2015 to file a “far more rigorous, and a far more convincing submission…”.  The pleadings and court orders are publicly available.
	The Company has entered into an agreement to settle all claims in a US securities class action lawsuit. No findings of any wrongdoings were ever made against SmartHeat, any current or former officer or director of SmartHeat or any of the defendants, and the Company and all other defendants continue to deny any wrongdoing.  The default judgment previously entered against James Jun Wang was vacated and was dismissed with prejudice. The Company entered into the settlement in order to avoid further cost of defending any of the purported actions. According to the settlement, the Company paid the plaintiffs $120,000. In return, the plaintiffs dismissed all claims against the Company and all of the individual defendants with prejudice.  As a result of the settlement, the case will not be allowed to be re-filed.
	The settlement is not an admission of wrongdoing or acceptance of fault by the Company or any of the individual defendants.  The Company has and continues to assert that the allegations made in the consolidated lawsuits lack merit and no evidence was ever asserted supporting the allegations made in the consolidated lawsuits. The Company has nevertheless agreed to the settlement in order to eliminate the uncertainties, burden and expense of further litigation. The Company believes that putting this matter behind it is in the best interest of its customers, employees and shareholders so that it can remain focused on growing and strengthening its business.

23_CONDENSED_FINANCIAL_INFORMA

23. CONDENSED FINANCIAL INFORMATION OF US PARENT	12 Months Ended
	Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Financial Information of Parent Company Only Disclosure [Text Block]	23. CONDENSED FINANCIAL INFORMATION OF US PARENT
	SmartHeat Inc. is a holding company and owns no operating assets and has no significant operations independent of its subsidiaries. Set forth below are condensed financial statements of SmartHeat Inc. (US Parent) on a stand-alone, unconsolidated basis as of December 31, 2014 and 2013.
	CONDENSED BALANCE SHEETS
		2014			2013
	ASSETS
	Cash and equivalents	$	68,103		$	251,461
	Investment in subsidiaries		26,229,140			34,630,504
	Other current assets		3,852,973			3,830,224
	TOTAL ASSETS	$	30,150,216		$	38,712,189
	LIABILITIES AND STOCKHOLDERS'  EQUITY
	Accrued liabilities and other payables	$	6,292,228		$	3,562,896
	STOCKHOLDERS' EQUITY:
	Common stock	$	6,783		$	6,133
	Additional paid-in capital		86,111,340			87,393,606
	Statutory reserve		5,389,057			5,389,056
	Other comprehensive income		8,549,568			8,991,270
	Accumulated deficit		(76,198,760	)		(66,630,772	)
	Total stockholders' equity		23,857,988			35,149,293
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	30,150,216		$	38,712,189
	CONDENSED STATEMENTS OF OPERATIONS
		2014			2013
	Operating expenses
	General and administrative expenses	$	1,375,270		$	1,531,085
	Impairment of long-term investment		-			908,084
	Loss from operations		(1,375,270	)		(2,439,169	)
	Non-operating expenses		(233,056	)		(1,006,242	)
	Equity loss in subsidiaries		(7,959,661	)		(46,223,930	)
	Total non-operating loss		(8,192,717	)		(47,230,172	)
	Loss before income tax		(9,567,987	)		(49,669,341	)
	Income tax		-			-
	Net loss	$	(9,567,987	)	$	(49,669,341	)
	CONDENSED STATEMENTS OF CASH FLOWS
		2014			2013
	CASH FLOWS FROM OPERATING ACTIVITIES:
	Net loss	$	(9,567,987	)	$	(49,669,341	)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Stock-based compensation		37,500			-
	Shares issued for loan consenting fee		-			30,000
	Loss on settlement of debt		-			20,000
	Gain on issuance of stock		(130,000	)		-
	Amortization of loan origination and extension fee		148,566			102,477
	Amortization of loan amendment fee paid by shares		28,685			31,315
	Equity loss in subsidiaries		7,959,661			46,223,930
	Loss on sale of equity interest		-			842,491
	Impairment of long-term investment		-			908,084
	Increase in current liabilities		1,340,217			367,185
	Net cash used in operating activities		(183,358	)		(1,143,859	)
	CASH FLOWS FROM INVESTING ACTIVITIES:
	Investment in subsidiaries		-			-
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Credit line payable		-			1,312,841
	Net cash provided by financing activities		-			1,312,841
	NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS		(183,358	)		168,982
	CASH AND EQUIVALENTS, BEGINNING OF YEAR		251,461			82,479
	CASH AND EQUIVALENTS, END OF YEAR	$	68,103		$	251,461

24_UNAUDITED_PRO_FORMA_CONSOLI

24. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2014
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	24. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
	On December 30, 2013, the Company, closed the transaction contemplated by the EIPA dated October 10, 2013, whereby the buyers purchased 40% of the Company’s equity interests in the following PHE segment subsidiaries: Taiyu; SmartHeat Siping; SmartHeat Energy; Ruicheng; and XinRui (collectively, the “Target Companies”). The purchase price was RMB 5 million.  Ruicheng was 51% owned and XinRui was 46% owned by SmartHeat US parent company prior to 40% equity interest sell.
	On November 28, 2014, the Company entered into an Amended and Restated EIPA, which amended and restated the EIPA dated October 10, 2013 between the Company and the buyers. Under the terms of the Amended EIPA, the buyers have agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consists of: (i) consideration of RMB8.5 million and (ii) the forgiveness of all net indebtedness owing to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31.  As of December 31 2014, the Company evaluated it is highly probably the shareholders will approve the additional 60% equity sale, and accordingly, the pro forma consolidated financial statements reflecting the total of 100% equity interest sale of Target Companies were presented as following.
	The following pro forma consolidated statements of operations present the SmartHeat Inc. for the years ended December 31, 2014 and 2013, as if the 100% equity sale occurred on January 1, 2013, and January 1, 2014, for the purpose of the statements of operations, respectively. The accompanying pro forma consolidated balance sheet presents the accounts of SmartHeat Inc. as if the 100% equity sale occurred on December 31, 2014. The 100% equity sales results in deconsolidation of disposed entities.
	SMARTHEAT INC. AND SUBSIDIARIES
	UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
	REFLECTING THE SALE OF CERTAIN ENTITIES OF PHE SEGMENT
	AS OF DECEMBER 31, 2014
		Company Historical			Sales of PHE segment			Pro Forma adjustments				Company Pro Forma
	ASSETS
	CURRENT ASSETS
	Cash & equivalents	$	13,682,624		$	9,490,641		$	-			$	4,191,983
	Restricted cash		9,913,104			9,847,182			-				65,922
	Accounts  receivable, net		16,052,184			18,437,984			3,829,234		a, b		1,443,434
	Retentions receivable, net		1,309,057			1,206,786			-				102,271
	Advances to suppliers, net		2,417,949			3,012,776			(609,745)		b		(1,204,572	)
	Other receivables (net), prepayments and deposits		5,068,411			26,902,540			22,677,382		a, b		843,253
	Inventories, net		49,349,195			42,233,818			-				7,115,377
	Taxes receivable		325,252			303,108			-				22,144
	Notes receivable - bank acceptances		2,271,131			2,271,131			-				-
	Total current assets		100,388,907			113,705,966			25,896,871				12,579,812
	NONCURRENT ASSETS
	Long term investment		29,540			-			(29,540	)	b		-
	Restricted cash		123,002			123,002			-				-
	Construction in progress		84,533			84,533			-				-
	Property and equipment, net		1,995,520			757,330			-				1,238,190
	Intangible assets, net		576,999			-			-				576,999
	Total noncurrent assets		2,809,594			964,865			(29,540	)			1,815,189
	TOTAL ASSETS	$	103,198,501		$	114,670,831			25,867,331			$	14,395,001
	LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES
	Accounts payable	$	7,384,756		$	8,106,600		$	1,467,290		a, b	$	745,446
	Advance from customers		2,714,603			1,992,933			(609,745	)	b		111,925
	Taxes payable		196,246			183,185			-				13,061
	Accrued liabilities and other payables		19,319,461			31,649,373			14,860,195		a, b		2,530,283
	Notes payable - bank acceptances		1,401,530			1,401,530			-				-
	Loans payable		25,111,702			25,111,702			-				-
	Total current liabilities		56,128,298			68,445,323			15,717,740				3,400,715
	CREDIT LINE PAYABLE		2,749,335			-			-				2,749,335
	LONG-TERM LOAN		-			-			-				-
	DEFERRED TAX LIABILITY		66,024			-			-				66,024
	STOCKHOLDERS' EQUITY
	Common stock		6,783			-			-				6,783
	Paid-in capital		87,500,456			59,341,363			77,326,388		b		105,485,481
	Statutory reserve		5,389,057			4,608,375			4,608,375		b		5,389,057
	Accumulated other comprehensive income		8,549,568			7,065,900			7,065,900		b		8,549,568
	Accumulated deficit		(76,198,760	)		(43,579,536	)		(78,851,072	)	a, b		(111,470,296	)
	Total Company stockholders' equity		25,247,104			27,436,102			10,149,591				7,960,593
	NONCONTROLLING INTEREST		19,007,740			18,789,406			-				218,334
	TOTAL EQUITY		44,254,844			46,225,508			10,149,591				8,178,927
	TOTAL LIABILITIES AND EQUITY	$	103,198,501		$	114,670,831		$	25,867,331			$	14,395,001
	(a) To reflect the effect of forgiveness of all net indebtness owing to Target Companies by SmartHeat and each of its other subsidiaries.
	(b) To reflect the sale of 100% equity interest in Target companies, and loss on the sale.
	SMARTHEAT INC. AND SUBSIDIARIES
	UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATION
	REFLECTING THE SALE OF CERTAIN ENTITIES OF PHE SEGMENT
		YEAR ENDED DECEMBER 31, 2014
		Company Historical			Sales of PHE segment			Pro Forma adjustments				Company Pro Forma
	Net sales	$	34,075,959		$	28,480,330		$	1,489,420		a	$	7,085,049
	Cost of goods sold		32,941,074			28,657,177			1,489,420		a		5,773,317
	Gross profit (loss)		1,134,885			(176,847	)		-				1,311,732
	Operating expenses
	Selling		6,563,729			4,748,596			-				1,815,133
	General and administrative		7,767,391			3,221,930			-				4,545,461
Provision for bad debts		(4,663,703	)		(2,241,241	)		-				(2,422,462	)
Provision for advance to supplier		3,470,029			1,143,178							2,326,851
Total operating expenses		13,137,446			6,872,463			-				6,264,983
Loss from operations		(12,002,561	)		(7,049,310	)		-				(4,953,251	)
Non-operating income (expenses)
Investment income		2,808			-			-				2,808
Interest income		161,123			142,154			-				18,969
Interest expense		(1,792,765	)		(1,578,275	)		-				(214,490	)
Financial expense		(284,387	)		(132,823	)		-				(151,564	)
Gain on issuance of stock		130,000			-			-				130,000
Foreign exchange transaction loss		(3,785	)		(3,785	)		-				-
Other income, net		952,470			401,389			-				551,081
Total non-operating expenses, net		(834,536	)		(1,171,340	)		-				336,804
Loss before income tax		(12,837,097	)		(8,220,650	)		-				(4,616,447	)
Income tax expense		48,717			-			-				48,717
Net loss before noncontrolling interest		(12,885,814	)		(8,220,650	)		-				(4,665,164	)
Less: loss attributable to noncontrolling interest		(3,317,826	)		(3,288,260	)		-				(29,566	)
Net loss to SmartHeat Inc.		(9,567,988	)		(4,932,390	)		-				(4,635,598	)
Basic and diluted weighted average shares outstanding		6,564,084			-			-				6,564,084
Basic and diluted loss per share	$	(1.46	)		-			-			$	(0.71	)
(a) To include the inter-company sales between disposed entities and other subsidiaries of SmartHeat Inc.
(b) The transaction will result in an expected loss of $35.27 million from the 100% equity interest sale of the entities to be sold consisting of a $44.06 million loss on sale resulting from the difference of the total selling price and the net assets of sold entities, netted off with the $8.79 million the forgiveness of all net indebtedness owing to the sold entities by SmartHeat and each of its other subsidiaries.  The loss is not reflected in the unaudited pro forma statements of operations because it is a material non-recurring charge directly related to the transaction that will be included in our results within the 12 months after the transaction.
SMARTHEAT INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
REFLECTING THE SALE OF CERTAIN ENTITIES OF HEAT PHE SEGMENT
	YEAR ENDED DECEMBER 31, 2013
	Company Historical (1)			Sales of PHE segment (2)			Pro Forma adjustments				Company Pro Forma
Net sales	$	44,709,526		$	38,915,416		$	1,974,163		a	$	7,768,273
Cost of goods sold		40,401,380			35,659,348			1,974,163		a		6,716,195
Gross profit		4,308,146			3,256,068			-				1,052,078
Operating expenses
Selling		6,864,060			5,084,636			-				1,779,424
General and administrative		10,400,323			5,582,360			-				4,817,963
Long-lived assets impairment		13,730,849			13,730,849			-				-
Impairment of long term investment		908,084			-			-				908,084
Provision for bad debts		24,980,195			24,638,062			-				342,133
Provision for advance to supplier		1,666,906			(682,973	)		-				2,349,879
Total operating expenses		58,550,417			48,352,934			-				10,197,483
Loss from operations		(54,242,271	)		(45,096,866	)		-				(9,145,405	)
Non-operating income (expenses)
Investment income (loss)		153,237			-			-				153,237
Interest income		159,972			79,704			-				80,268
Interest expense		(1,816,457	)		(1,758,210	)		-				(58,247	)
Financial expense		(249,681	)		(73,567	)		-				(176,114	)
Foreign exchange transaction gain		(9,495	)		(9,478	)		-				(17	)
Loss on sale of equity interest		(842,491	)		-			-				(842,491	)
Other income, net		1,314,945			470,730			-				844,215
Total non-operating expenses, net		(1,289,970	)		(1,290,821	)		-				851
Loss before income tax		(55,532,241	)		(46,387,687	)		-				(9,144,554	)
Income tax expense (benefit)		(50,657	)		26,725			-				(77,382	)
Net loss before noncontrolling interest		(55,481,584	)		(46,414,412	)		-				(9,067,172	)
Less: loss attributable to noncontrolling interest		(5,812,243	)		(5,798,050	)		-				(14,193	)
Net loss to SmartHeat Inc.		(49,669,341	)		(40,616,362	)		-				(9,052,979	)
Basic and diluted weighted average shares outstanding		5,870,111			-			-				5,870,111
Basic and diluted loss per share	$	(8.46	)		-			-			$	(1.54	)
(a) To include the inter-company sales between disposed entities and other subsidiaries of SmartHeat Inc.

Accounting_Policies_by_Policy_

Accounting Policies, by Policy (Policies)	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation
	The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).
Consolidation, Policy [Policy Text Block]	Principles of Consolidation
	The accompanying consolidated financial statements include the accounts of SmartHeat’s US parent, its subsidiaries Heat HP and Heat PHE, and their subsidiaries Taiyu, SanDeKe, SmartHeat Siping, Jinhui, SmartHeat Investment, SmartHeat Energy, SmartHeat Trading, Ruicheng, SmartHeat Germany, SmartHeat Pump, and Heat Exchange, which are collectively referred to as the “Company.” All significant intercompany accounts and transactions were eliminated in consolidation. After the sale of 40% equity interest of Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and Xinrui (See Note 9) on December 30, 2013, the Company now owns 60% of Taiyu, SmartHeat Siping and SmartHeat Energy, and 30.6% of Ruicheng, which is accounted for under the equity method of accounting.
Liquidity Disclosure [Policy Text Block]	Going Concern
	The Company has incurred significant recurring losses from operations in the past several years, including a net loss of $9.57 million for the year ended December 31, 2014; of which, $4.93 million was attributable to sold entities and $4.64 million was attributable to the remaining entities. In addition, the Company expected to recognize a loss of $35.27 million from the 100% equity interest sale on the entities to be sold. These conditions raise a substantial doubt about the Company's ability to continue as a going concern. However, given the fact of increasing demand for heat pump products in China, the Company will put more resources and efforts to grow heat pump business after completing the operation restructure of disposing PHE business.
Equity Method Investments, Policy [Policy Text Block]	Equity Method Investee
	Prior to the sale of 40% equity interest of Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and Xinrui, the Company owned 46% of XinRui and accounted for this investment under the equity method of accounting (FASB ASC Subtopic 323-30). The Company recorded its investment at the original cost. This investment increased with income and decreased for dividends and losses accrued by the Company. After 40% equity interest sale on December 30, 2013, the Company now owns 30.6% of Ruicheng (See Note 9) and 27.6% of XinRui, which are accounted for under the equity method of accounting.
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	Noncontrolling Interest
	The Company follows Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 810,  “Consolidation,”  which established new standards governing the accounting for and reporting of noncontrolling interests (“NCIs”) in partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCIs, previously referred to as minority interests, be treated as a separate component of equity, not as a liability, as was previously the case, that increases and decreases in the parent’s ownership interest that leave control intact be treated as equity transactions rather than as step acquisitions or dilution gains or losses and that losses of a partially owned consolidated subsidiary be allocated to the NCI even when such allocation might result in a deficit balance. This standard also required changes to certain presentation and disclosure requirements. Losses attributable to the NCI in a subsidiary may exceed the NCI’s interests in the subsidiary’s equity. The excess attributable to the NCI is attributed to those interests. The NCI shall continue to be attributed its share of losses even if that attribution results in a deficit NCI balance.
	After the sale of 40% equity interest of Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and Xinrui (See Note 9) on December 30, 2013, the Company now owns 60% of Taiyu, SmartHeat Siping and SmartHeat Energy, and 30.6% of Ruicheng and 27.6% of Xinrui. For accounting purposes, the 40% net loss of Taiyu, SmartHeat Siping, SmartHeat Energy were not allocated to noncontrolling interest between December 30, 2013 and December 31, 2013, as the change in ownership interest may not change financial results substantially between December 30, 2013 and December 31, 2013. However, the Company performed long-lived assets impairment test for Taiyu, SmartHeat Siping, SmartHeat Energy on December 31, 2013, and recognized $13.73 million impairment loss with $5.49 million allocated to noncontrolling interest on December 31, 2013.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates
	In preparing the financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Equivalents
	For purposes of the statement of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.  As of December 31, 2014 and December 31, 2013, the Company maintained restricted cash deposit in several bank accounts for the purposes described below.
			2014			2013
			(In millions)
	Support of performance guarantee		$	0.41		$	1.16
	Support of bank acceptance			0.7			1.29
	Support of letter of credit			0.21			0.01
	Financial product *			8.59			-
	Total restricted cash - current		$	9.91		$	2.46
	Performance guarantee - noncurrent		$	0.12		$	0.14
	* Financial product from a commercial bank in the PRC for RMB 40,000,000 ($8.59 million) was entered into on November 27, 2014 with maturity on January 7, 2015. The financial product has an expected annual interest rate of 4.5%.
	The following table presents in US dollars (“USD”) the amount of cash and equivalents held by the Company as of December 31, 2014 and 2013, based on the jurisdiction of deposit. The Company’s US parent holds cash and equivalents in US bank accounts denominated in USD.
			United States			China			Germany		Total
	31-Dec-14		$	68,103		$	13,118,523		$	495,998	$	13,682,624
	31-Dec-13		$	251,461		$	11,326,282		$	2,024,656	$	13,602,399
Receivables, Policy [Policy Text Block]	Accounts and Retentions Receivable
	The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Based on historical collection activity, the Company had allowances of $39.26 million and $48.25 million at December 31, 2014 and 2013, respectively.
	At December 31, 2014 and 2013, the Company had retentions receivable from customers for product quality assurance of $3.64 million and $4.44 million, respectively. The retention rate varies from 5% to 20% of the sales price with variable terms from three to 24 months depending on the shipping date, and for PHE Units, the customer acceptance date, of the products and the number of heating seasons that the warranty period covers. The Company had allowances of $2.33 million and $0 at December 31, 2014 and 2013, respectively.
	Accounts receivable is net of unearned interest of $26,558 and $26,655 at December 31, 2014 and 2013, respectively. Unearned interest is imputed interest on accounts receivable with due dates over one year from the invoice date discounted at the Company’s borrowing rate of 6.15% at December 31, 2012. The Company did not record additional unearned interest after December 31, 2012 due to no long-term accounts receivable.
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]	Bad Debt Allowance
	The Company records 50% and 100% of accounts receivable aged over 180 and 360 days, respectively, from the payment due date as bad debt allowance.  Management of the Company’s subsidiaries further analyzes each individual customer for which it was taken a bad debt allowance to further assess the likelihood of collectability.  Customers which are either state-owned or have a history of support from the state, or larger companies with long operating histories, that management of the Company’s subsidiaries believe the chance of non-payment will be remote, are excluded for the purpose of calculating bad debt allowance.
Advances to Suppliers [Policy Text Block]	Advances to Suppliers
	The Company makes advances to certain vendors to purchase raw material and equipment for production. The advances are interest-free and unsecured.
Inventory, Policy [Policy Text Block]	Inventories
	Inventories are valued at the lower of cost or market, with cost determined on a moving weighted-average basis. The difference is recorded as a cost of goods sold, if the current market value is lower than their historical cost.  In addition, the Company makes an inventory impairment provision analysis at each period end for inventory held over 360 days. Cost of work in progress and finished goods comprises direct material, direct labor and an allocated portion of production overheads.
	Certain raw materials, such as stainless steel products, plates, shims, gaskets, and pump valves, require longer than normal procurement periods, or “lead times,” with some procurement periods running longer than six months. To guarantee availability of raw materials for production and sales, the Company’s subsidiaries, based on historical sales patterns, estimate and purchase material for the upcoming periods.
	As part of inventory impairment analysis, the Company performs an evaluation of raw materials stored over one year and not anticipated to be consumed, and an evaluation of potential impairment to the quality of these raw materials. If management anticipates that obsolete raw materials in inventory can be utilized and will be consumed within the next six months through new customer orders or substitute orders, no impairment is recorded. The Company collects information about delayed and canceled contracts and meets with affected customers to discuss their financing situation and their projections of future orders. Finished goods manufactured for delayed and canceled contracts that the Company does not expect to be reinstated and contracts for which the Company has been unable to find substitute customers become impaired.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment, net
	Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method with a 10% salvage value and estimated lives as follows:
	Buildings	20 years
	Vehicles	5 years
	Office equipment	5 years
	Production equipment	5-10 years
Land Use Rights [Policy Text Block]	Land Use Rights, net
	Rights to use land is stated at cost less accumulated amortization. Amortization is provided using the straight-line method over 50 years.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-Lived Assets
	Long-lived assets, which include tangible assets, such as property and equipment, goodwill and other intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.
	Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized based on the excess of the carrying amount over the fair value (“FV”) of the assets. FV generally is determined using the asset’s expected future discounted cash flows or market value, if readily determinable.
	On December 30, 2013, the Company closed the transaction contemplated by the EIPA dated October 10, 2013, whereby the buyers purchased 40% of the Company’s equity interests in the Target Companies: Taiyu, SmartHeat Siping, SmartHeat Energy, Ruicheng and XinRui for the purchase price of RMB 5 million ($0.82 million) (See Note 1). The buyers had the option to purchase the remaining 60% equity interest in the Target Companies for an additional purchase price of RMB 8.5 million ($1.39 million).
	According to FASB ASC Subtopic 360-10-35, a long-lived asset (asset group) shall be tested for recoverability whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company believed the following events or changes in circumstances indicated the carrying amount of its long-lived assets (asset group) may not be recoverable: 1) a current expectation that, more likely than not, a long-lived assets (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, and 2) a significant decrease in the market price of a long-lived asset (asset group). Since the Company has the option to sell 100% ownership in Target Companies for RMB13.5 million ($2.21 million), a significant decrease in the market price before the end of its previously estimated useful life for their long-lived assets, the Company therefore performed asset recoverability testing by comparing the assets’ estimated future undiscounted cash flows with their carrying value, and concluded the long-lived assets were not recoverable as a result of future cash flows being less than the carrying amount.  The Company further calculated the impairment losses of Target Companies by determining the FV for the long-lived asset group and recorded a write-down (loss) for the difference between their carrying value and their FV.  FV is an asset’s purchase or sale price in a current transaction between willing parties. The best evidence of FV is prices quoted in active markets, although the Company has the option to sell 100% ownership in Target Companies for RMB13.5 million ($2.21 million), the market prices are not available for many long-lived assets such as equipment, the Company therefore used discounted cash flow method for estimating the FV of long-lived assets which are acceptable under FASB ASC Subtopic 360-10.
	Based on its evaluation, the Company believed, as of December 31, 2013, the long-lived assets of Target Companies including construction in progress, property and equipment, and intangible assets were impaired for $13.73 million.  In addition, the Company retained remaining 30.6% and 27.6% interest in Ruicheng and XinRui (after the 40% sale), respectively, at December 31, 2013, that was accounted for under the equity method of accounting, the Company recorded the long-term investment in Ruicheng and XinRui at FV as provided in FASB ASC Subtopic 323-10-30-2.  The FV of the long-term investment was the prorated selling price for the remaining 60% equity interest that are allocated to Ruicheng and XinRui for $26,720; accordingly, the Company recorded $0.91 million impairment loss of long-term investment in Ruicheng and XinRui for the excess of the carrying amount over the FV for the year ended December 31, 2013.
Standard Product Warranty, Policy [Policy Text Block]	Warranties
	The Company offers all customers standard warranties on its products for one or two heating seasons depending on the terms negotiated. The Company accrues for warranty costs based on estimates of the costs that may be incurred under its warranty obligations. The warranty expense and related accrual is included in the Company’s selling expenses and other payables respectively, and is recorded when revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, its estimates of anticipated rates of warranty claims, costs per claim and estimated support labor costs and the associated overhead. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.
	Activity in the Company’s warranty reserve from January 1, 2013, to December 31, 2014, is as follows:
			2014			2013
	Beginning balance		$	472,558		$	517,076
	Provisions			338,589			331,989
	Actual costs incurred			(338,589	)		(376,507	)
	Ending balance in current liabilities (Note 13)		$	472,558		$	472,558
Research and Development Expense, Policy [Policy Text Block]	Research and Development Costs
	Research and development (“R&D”) costs are expensed as incurred and included in general and administrative (G&A”) expenses. These costs primarily consist of cost of materials used, salaries paid for the Company’s development department and fees paid to third parties. R&D costs for the years ended December 31, 2014 and 2013, were $723,910 and $1,424,400, respectively.
Income Tax, Policy [Policy Text Block]	Income Taxes
	The Company utilizes FASB ASC Topic 740, “Income Taxes,” which requires recognition of deferred tax assets and liabilities for expected future tax consequences of events included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
	When tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.
	Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified as selling, general and administrative expense in the statements of operation. At December 31, 2014, the Company had not taken any significant uncertain tax position on its tax returns for 2013 or prior years, or in computing its tax provision for 2014.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition
	The Company’s revenue recognition policies comply with FASB ASC Topic 605, “Revenue Recognition.” Sales revenue is recognized when PHEs, heat meters and heat pumps are delivered, and for PHE Units when customer acceptance occurs, the price is fixed or determinable, no other significant obligations of the Company exist and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition met are recorded as unearned revenue under “Advance from customers.”
	The Company’s sales generally provide for 30% of the purchase price on placement of an order, 30% on delivery, 30% upon installation and acceptance of the equipment after customer testing and 10% no later than the termination of the standard warranty period, which ranges from three to 24 months from the acceptance date.
	Due to the slowdown of the Chinese economy and tightened monetary policy, and to attract and retain customers, the Company’s subsidiaries adjusted their contract and payment terms to permit more flexible and longer payment terms.
	Sales revenue is the invoiced value of goods, net of value-added tax (“VAT”). All of the Company’s products sold in the PRC are subject to a VAT of 17% of gross sales price. This VAT may be offset by the VAT paid by the Company on raw materials and other materials purchased in China and included in the cost of producing the Company’s finished product. The Company recorded VAT payable and VAT receivable net of payments in the financial statements. The Company files VAT tax returns online with PRC tax authorities and offsets the payables against the receivables. SmartHeat Germany, the Company’s German subsidiary, is subject to 19% VAT.
	Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. VAT taxes are not affected by the income tax holiday.
	Sales returns and allowances were $0 for the years ended December 31, 2014 and 2013. The Company does not provide a right of return, price protection or any other concessions to its customers.
	The Company provides a standard warranty to all customers, which is not considered an additional service; rather, an integral part of the product’s sale. The Company believes the existence of its standard product warranty in a sales contract does not constitute a deliverable in the arrangement and thus there is no need to apply the FASB ASC Subtopic 605-25 separation and allocation model for a multiple deliverable arrangement. FASB ASC Topic 450,  “Contingencies,”  specifically addresses the accounting for standard warranties. The Company believes that accounting for its standard warranty pursuant to FASB ASC Topic 450 does not impact revenue recognition because the cost of honoring the warranty can be reliably estimated.
	The Company charges for after-sales services provided after the expiration of the warranty period, with after-sales services mainly consisting of cleaning PHEs and repairing and exchanging parts. The Company recognizes such revenue when the service is provided. For the years ended December 31, 2014 and 2013, revenue from after-sales services after the expiration of the warranty period was $215,867 and $24,732, respectively.  Such revenue was recorded in other income.
Cost of Sales, Policy [Policy Text Block]	Cost of Sales
	Cost of sales (“COS”) consists primarily of material costs and direct labor and manufacturing overhead directly attributable to the products. Write-down of inventories to the lower of cost or market is also recorded in COS.  The Company also records inventory reserve for inventories aging over 360 days to COS.
Customer Advances [Policy Text Block]	Advance from Customers
	The Company records payments received from customers in advance of their orders to advance account. These orders normally are delivered within a reasonable period of time based upon contract terms and customer demand.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk
	Cash includes cash on hand and demand deposits in accounts maintained within China. Balances at financial institutions within China are not covered by insurance. The Company has not experienced any losses in such accounts.
	Certain other financial instruments, which subject the Company to concentration of credit risk, consist of accounts and other receivables. The Company does not require collateral or other security to support these receivables. The Company conducts periodic reviews of its customers’ financial condition and customer payment practices to minimize collection risk on accounts receivable.
	The operations of the Company are located primarily in China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, as well as by the general state of the PRC economy.
Statement of Cash Flows [Policy Text Block]	Statement of Cash Flows
	In accordance with FASB ASC Topic 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts shown on the statement of cash flows may not necessarily agree with changes in the corresponding asset and liability on the balance sheet.
Earnings Per Share, Policy [Policy Text Block]	Basic and Diluted Earnings (Loss) per Share (EPS)
	Basic EPS is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Diluted EPS are based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to have been exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.
	Basic and diluted shares outstanding are the same for the years ended December 31, 2014 and 2013, because the common stock equivalent of the convertible securities outstanding, consisting of unexercised options issued to the Company’s directors and an officer, are anti-dilutive and, accordingly, were excluded from the computation of diluted loss per share. At December 31, 2014 and December 31, 2013, options to purchase 2,500 shares of common stock were outstanding and exercisable, respectively.
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments
	For certain of the Company’s financial instruments, including cash and equivalents, restricted cash, accounts and other receivables, advances to suppliers, accounts payable, advances from customers, accrued liabilities and short-term debts, the carrying amounts approximate their FVs due to their short maturities. ASC Topic 820, “Fair Value Measurements and Disclosures,” requires disclosure of the FV of financial instruments held by the Company. FASB ASC Topic 825, “Financial Instruments,”  defines FV, and establishes a three-level valuation hierarchy for disclosures of FV measurement that enhances disclosure requirements for FV measures. The carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. The three levels of valuation hierarchy are defined as follows:
		•	Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
		•	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
		•	Level 3 inputs to the valuation methodology are unobservable and significant to the FV measurement.
	The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC 480, “Distinguishing Liabilities from Equity,” and ASC 815, “Derivatives and Hedging”.
	As of December 31, 2014 and 2013, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at FV.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency Translation and Comprehensive Income (Loss)
	The accounts of the US parent company are maintained in USD. The functional currency of the Company’s China subsidiaries is the Chinese Yuan Renminbi (“RMB”) and the functional currency of SmartHeat Germany, the Company’s subsidiary in Germany, is the Euro (“EUR”). The accounts of the China subsidiaries and German subsidiary were translated into USD in accordance with FASB ASC Topic 830,  “Foreign Currency Matters .” According to FASB ASC Topic 830, all assets and liabilities were translated at the exchange rate on the balance sheet date, stockholders’ equity was translated at the historical rates and statement of operations items were translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220,  “Comprehensive Income).”
	The RMB to USD exchange rates and EUR to USD exchange rates in effect as of December 31, 2014 and 2013, and the average exchange rates for the years ended December 31, 2014 and 2013 are as following.  The exchange rates used in translation from RMB to USD were published by State Administration of Foreign Exchange (“SAFE”) of the PRC. The exchange rates used in translation from EUR to USD were published by OANDA Rates.
			Average Exchange Rate						Balance Sheet Date
			For the Years Ended						Exchange Rate
			12/31/14			12/31/13			12/31/14		12/31/13
	RMB - USD			6.1431			6.2142			6.119		6.0969
	EUR - USD			0.7535			0.753			0.8266		0.7263
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-Based Compensation
	The Company accounts for its stock-based compensation in accordance with FASB ASC Topics 718 “Compensation – Stock Compensation”  and 505  “Equity” . The Company recognizes in the income statement the grant date FV of stock options and other equity-based compensation issued to employees and non-employees.
Segment Reporting, Policy [Policy Text Block]	Segment Reporting
	FASB ASC Topic 280, “Segment Reporting,” Disclosures about Segments of an Enterprise and Related Information, requires use of the “management approach” model for segment reporting.  The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.
	The Company has two operating segments: 1) plate heating equipment, meters and related products; and 2) heat pumps and related products.   These operating segments were determined based on the nature of the products offered.  Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.  The Company's chief executive officer and acting chief accountant were identified as the chief operating decision makers.  The Company’s chief operating decision makers direct the allocation of resources to operating segments based on the profitability, cash flows, and other measurement factors of each respective segment.  Historically they were not segmented because the heat pump business was relatively small compared to the plate heating business and both businesses reported to the same executives; however, the Company’s Board and senior management determined that it is useful and efficient to analyze and manage these businesses separately starting from 2013.
	The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes. The following table shows the operations of the Company's reportable segments for the years ended December 31, 2014 and 2013, and as of December 31, 2014 and 2013, respectively.
			Years Ended December 31,
			2014			2013
	Revenue from unaffiliated customers:
	Plate heating, meters and related		$	28,010,658		$	38,882,321
	Heat pumps and related			6,065,301			5,959,011
	Inter-segment elimination			-			(131,806	)
	Consolidated		$	34,075,959		$	44,709,526
	Operating loss:
	Plate heating, meters and related		$	(7,741,793	)	$	(48,917,343	)
	Heat pumps and related			(2,885,498	)		(2,886,815	)
	Corporation			(1,375,270	)		(2,439,168	)
	Inter-segment elimination			-			1,055
	Consolidated		$	(12,002,561	)	$	(54,242,271	)
	Net loss to SmartHeat Inc:
	Plate heating, meters and related		$	(5,633,520	)	$	(44,283,015	)
	Heat pumps and related			(2,326,142	)		(2,095,207	)
	Corporation			(1,608,326	)		(3,292,174	)
	Inter-segment elimination			-			1,055
	Consolidated		$	(9,567,988	)	$	(49,669,341	)
	Depreciation and amortization:
	Plate heating, meters and related		$	176,476		$	1,537,002
	Heat pumps and related			462,512			511,846
	Corporation			177,252			133,792
	Consolidated		$	816,240		$	2,182,640
	Total assets:		As of December 31, 2014			As of December 31, 2013
	Plate heating, meters and related		$	105,010,408		$	113,919,061
	Heat pumps and related			41,466,608			13,674,622
	Corporation			3,921,076			3,374,858
	Inter-segment elimination			(47,199,591	)		(16,153,739	)
	Consolidated		$	103,198,501		$	114,814,802
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncements
	In January 2014, FASB issued, Accounting Standards Update (“ASU”) 2014-05, Service Concession Arrangements (ASC Topic 853). The objective of this Update is to specify that an operating entity should not account for a service concession arrangement within the scope of this Update as a lease in accordance with FASB ASC Topic 840, “ Leases ”. Service concession arrangements may become more prevalent in the United States as public-sector entities seek alternative ways to provide public services on a more efficient and cost-effective basis. The amendments apply to an operating entity of a service concession arrangement entered into with a public-sector entity grantor when the arrangement meets certain conditions. The amendments in this Update should be applied on a modified retrospective basis to service concession arrangements that exist at the beginning of an entity’s fiscal year of adoption. The modified retrospective approach requires the cumulative effect of applying this Update to arrangements existing at the beginning of the period of adoption to be recognized as an adjustment to the opening retained earnings balance for the annual period of adoption. The amendments are effective for a public business entity for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU will not affect the Company’s financial statements.
	The FASB has issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in FASB ASC 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is effective on January 1, 2017 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations.
	The FASB has issued ASU No. 2014-12, Compensation - Stock Compensation (ASC Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered.. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position and results of operations.
	As of December 31, 2014, there is no recently issued accounting standards not yet adopted that would have a material effect on the Company’s consolidated financial statements.
Reclassification, Policy [Policy Text Block]	Reclassification
	Certain prior year amounts were reclassified to conform to the manner of presentation in the current period, which includes the reclassification of a $2.30 million allowance for other receivables to allowance for advances to suppliers.

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2014
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items]
Schedule of Restricted Cash and Cash Equivalents [Table Text Block]	As of December 31, 2014 and December 31, 2013, the Company maintained restricted cash deposit in several bank accounts for the purposes described below.
			2014			2013
			(In millions)
	Support of performance guarantee		$	0.41		$	1.16
	Support of bank acceptance			0.7			1.29
	Support of letter of credit			0.21			0.01
	Financial product *			8.59			-
	Total restricted cash - current		$	9.91		$	2.46
	Performance guarantee - noncurrent		$	0.12		$	0.14
	* Financial product from a commercial bank in the PRC for RMB 40,000,000 ($8.59 million) was entered into on November 27, 2014 with maturity on January 7, 2015. The financial product has an expected annual interest rate of 4.5%.
Schedule of Cash and Cash Equivalents [Table Text Block]	The following table presents in US dollars (“USD”) the amount of cash and equivalents held by the Company as of December 31, 2014 and 2013, based on the jurisdiction of deposit. The Company’s US parent holds cash and equivalents in US bank accounts denominated in USD.
			United States			China			Germany		Total
	31-Dec-14		$	68,103		$	13,118,523		$	495,998	$	13,682,624
	31-Dec-13		$	251,461		$	11,326,282		$	2,024,656	$	13,602,399
Schedule of Product Warranty Liability [Table Text Block]	Activity in the Company’s warranty reserve from January 1, 2013, to December 31, 2014, is as follows:
			2014			2013
	Beginning balance		$	472,558		$	517,076
	Provisions			338,589			331,989
	Actual costs incurred			(338,589	)		(376,507	)
	Ending balance in current liabilities (Note 13)		$	472,558		$	472,558
Schedule of Exchange Rates [Table Text Block]	The RMB to USD exchange rates and EUR to USD exchange rates in effect as of December 31, 2014 and 2013, and the average exchange rates for the years ended December 31, 2014 and 2013 are as following. The exchange rates used in translation from RMB to USD were published by State Administration of Foreign Exchange (“SAFE”) of the PRC. The exchange rates used in translation from EUR to USD were published by OANDA Rates.
			Average Exchange Rate						Balance Sheet Date
			For the Years Ended						Exchange Rate
			12/31/14			12/31/13			12/31/14		12/31/13
	RMB - USD			6.1431			6.2142			6.119		6.0969
	EUR - USD			0.7535			0.753			0.8266		0.7263
Segment Operations, Income Statement [Member]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following table shows the operations of the Company's reportable segments for the years ended December 31, 2014 and 2013, and as of December 31, 2014 and 2013, respectively.
			Years Ended December 31,
			2014			2013
	Revenue from unaffiliated customers:
	Plate heating, meters and related		$	28,010,658		$	38,882,321
	Heat pumps and related			6,065,301			5,959,011
	Inter-segment elimination			-			(131,806	)
	Consolidated		$	34,075,959		$	44,709,526
	Operating loss:
	Plate heating, meters and related		$	(7,741,793	)	$	(48,917,343	)
	Heat pumps and related			(2,885,498	)		(2,886,815	)
	Corporation			(1,375,270	)		(2,439,168	)
	Inter-segment elimination			-			1,055
	Consolidated		$	(12,002,561	)	$	(54,242,271	)
	Net loss to SmartHeat Inc:
	Plate heating, meters and related		$	(5,633,520	)	$	(44,283,015	)
	Heat pumps and related			(2,326,142	)		(2,095,207	)
	Corporation			(1,608,326	)		(3,292,174	)
	Inter-segment elimination			-			1,055
	Consolidated		$	(9,567,988	)	$	(49,669,341	)
	Depreciation and amortization:
	Plate heating, meters and related		$	176,476		$	1,537,002
	Heat pumps and related			462,512			511,846
	Corporation			177,252			133,792
	Consolidated		$	816,240		$	2,182,640
	Total assets:		As of December 31, 2014			As of December 31, 2013
	Plate heating, meters and related		$	105,010,408		$	113,919,061
	Heat pumps and related			41,466,608			13,674,622
	Corporation			3,921,076			3,374,858
	Inter-segment elimination			(47,199,591	)		(16,153,739	)
	Consolidated		$	103,198,501		$	114,814,802
Property and Equipment, Useful Lives [Member]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Line Items]
Property, Plant and Equipment [Table Text Block]	Depreciation of property and equipment is provided using the straight-line method with a 10% salvage value and estimated lives as follows:
	Buildings	20 years
	Vehicles	5 years
	Office equipment	5 years
	Production equipment	5-10 years

3_INVENTORIES_NET_Tables

3. INVENTORIES, NET (Tables)	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories at December 31, 2014 and 2013, were as follows:
		2014			2013
	Raw materials	$	47,748,997		$	48,258,773
	Work in process		8,473,197			6,822,102
	Finished goods		11,655,631			12,639,202
	Total		67,877,825			67,720,077
	Inventory allowance		(18,528,630	)		(11,395,714	)
	Inventories, net	$	49,349,195		$	56,324,363

5_OTHER_RECEIVABLES_NET_PREPAY1

5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block Supplement [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	Other receivables, prepayments and deposits consisted of the following at December 31, 2014 and 2013, respectively:
		2014			2013
	Advance to third party companies	$	14,212,310		$	10,059,572
	Deposit for public bids of sales contracts		168,235			758,465
	Prepayment for freight, related, insurance, advertisement and consulting expenses		287,998			73,773
	Other deposits		60,185			53,863
	Advance to employees		1,334,715			926,441
	Others		676,157			680,588
	Total		16,739,600			12,552,702
	Less: bad debt allowance		(11,671,189	)		(7,603,941	)
	Other receivables (net), prepayments and deposits	$	5,068,411		$	4,948,761

6_PROPERTY_AND_EQUIPMENT_NET_T

6. PROPERTY AND EQUIPMENT, NET (Tables) (Property, Plant and Equipment, Net [Member])	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment, Net [Member]
6. PROPERTY AND EQUIPMENT, NET (Tables) [Line Items]
Property, Plant and Equipment [Table Text Block]	Property and equipment consisted of the following at December 31, 2014 and 2013:
		2014			2013
	Buildings	$	4,967,230		$	4,980,184
	Production equipment		9,134,092			8,599,701
	Office equipment		1,139,249			1,124,176
	Vehicles		932,657			940,624
	Total		16,173,228			15,644,685
	Less: accumulated depreciation		(5,661,537	)		(5,459,525	)
	Less: impairment		(8,516,171	)		(8,547,040	)
	Property and equipment, net	$	1,995,520		$	1,638,120

7_INTANGIBLE_ASSETS_NET_Tables

7. INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
	Dec. 31, 2014
Disclosure Text Block [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Intangible assets consisted of the following at December 31, 2014 and 2013, respectively:
		Estimated Useful	2014			2013
		Life (In years)
	Land use rights	50	$	4,134,587		$	15,167,552
	Know-how technology	5 – 10		610,121			911,423
	Customer lists	5		-			214,841
	Covenants not to compete	5		-			116,873
	Software	5		460,899			680,049
	Trademarks	7		297,471			298,549
	Total			5,503,078			17,389,287
	Less: accumulated amortization			(1,097,055	)		(2,503,664	)
	Less: impairment			(3,829,024	)		(3,842,904	)
	Intangible assets, net		$	576,999		$	11,042,719

9_LONG_TERM_INVESTMENT_Tables

9. LONG TERM INVESTMENT (Tables)	12 Months Ended
	Dec. 31, 2014
Urumchi XinRui Technology LLC [Member]
9. LONG TERM INVESTMENT (Tables) [Line Items]
Condensed Financial Statements [Table Text Block]	The unaudited condensed Statement of Income of XinRui for the year ended December 31, 2014 is below:
	Net revenue	$	1,150,104
	Cost of revenue		(866,903	)
	Gross profit		283,201
	Operating expenses		234,612
	Income from operations		48,589
	Non-operating income		1,628
	Income tax expense		(12,571	)
	Net income	$	37,646
Hohhot Ruicheng Technology Co., Ltd. [Member]
9. LONG TERM INVESTMENT (Tables) [Line Items]
Condensed Financial Statements [Table Text Block]	The unaudited condensed Statement of Income of Ruicheng for the year ended December 31, 2014 is below:
	Net revenue	$	1,006,085
	Cost of revenue		(864,666	)
	Gross profit		141,419
	Operating expenses		171,379
	Loss from operations		(29,960	)
	Non-operating income		5,181
	Income tax expense		-
	Net loss	$	(24,779	)

11_TAXES_RECEIVABLE_Tables

11. TAXES RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2014
Taxes Receivable [Abstract]
Schedule of Taxes and Other Receivables [Table Text Block]	Taxes receivable consisted of the following at December 31, 2014 and 2013:
		2014		2013
	Income	$	180,111	$	180,764
	Value-added		122,816		787,293
	Other		22,325		21,578
	Taxes receivable	$	325,252	$	989,635

12_TAXES_PAYABLE_Tables

12. TAXES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2014
Tax Disclosure [Abstract]
Schedule of Taxes Payable [Table Text Block]	Taxes payable consisted of the following at December 31, 2014 and 2013:
		2014		2013
	Income	$	-	$	516
	Value-added		160,033		160,118
	Other		36,213		36,444
	Taxes payable	$	196,246	$	197,078

13_ACCRUED_LIABILITIES_AND_OTH1

13. ACCRUED LIABILITIES AND OTHER PAYABLES (Tables)	12 Months Ended
	Dec. 31, 2014
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]	Accrued liabilities and other payables consisted of the following at December 31, 2014 and 2013:
		2014		2013
	Advance from third parties	$	3,273,985	$	3,378,167
	Payable to Siping Beifang		2,368,285		2,306,184
	Payable for equipment purchase		326,688		322,295
	Payable to employees		226,308		-
	Deposit from customer		2,977,447		2,988,240
	Refund of land use right purchased		4,816,685		4,627,270
	Other		2,805,560		1,738,241
	Warranty reserve (See Note 2)		472,558		472,558
	Accrued expenses		2,051,945		1,382,051
	Accrued liabilities and other payables	$	19,319,461	$	17,215,006

15_LOANS_PAYABLE_Tables

15. LOANS PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Schedule of Short-term Debt [Table Text Block]	The Company was obligated for the following short-term loans as of December 31, 2014 and 2013:
		2014		2013		Subsidiary obligated
	From a commercial bank in the PRC for RMB 7,200,000 entered into on February 20, 2014.The loan bore interest at 6% with maturity on February 19, 2015.  This loan was repaid at maturity.	$	1,176,663	$	-	Taiyu
	From a commercial bank in the PRC for RMB 20,000,000 entered into on August 11, 2014. The loan bore interest at 7.2% with maturity on August 11, 2015. The loan was guaranteed by Heat Pump and SanDeKe.		3,268,508		-	Taiyu
	From a commercial bank in the PRC for RMB 20,000,000 entered into on August 19, 2014. The loan bore interest at 7.2% with maturity on August 19, 2015. The loan was guaranteed by Heat Pump and SanDeKe.		3,268,508		-	Taiyu
	From a commercial bank in the PRC for RMB 8,765,114 entered into on September 17, 2014. The loan bore interest at 7.2% with maturity on March 17, 2015.  The loan was pledged by the Taiyu’s accounts receivable.  This loan was repaid at maturity.		1,432,442		-	Taiyu
	From a commercial bank in the PRC for RMB 13,344,190 entered into on September 26, 2012. The loan bore interest at 6.16% with maturity on January 18, 2014. The loan was repaid at maturity.		-		2,188,684	Taiyu
	From a commercial bank in the PRC for RMB 10,000,000 entered into on November 30, 2012. The loan bore interest at 7.87% with maturity on November 22, 2014. The loan was guaranteed by Taiyu. This loan was repaid at maturity.		-		1,640,178	SmartHeat Siping
	From a commercial bank in the PRC for RMB 40,000,000 entered into on March 11, 2013. The loan bore interest at 6.60% with maturity on March 10, 2014. The loan was guaranteed by Siping, HeatPump and management of Chinese subsidiaries. This loan was repaid at maturity.		-		6,560,711	Taiyu
	From a commercial bank in the PRC for RMB 10,000,000 entered into on May 21, 2013. The loan bore interest at 6.60% with maturity on May 20, 2014. This loan was repaid at maturity.		-		1,640,178	Taiyu
	From a commercial bank in the PRC for RMB 5,000,000 entered into on August 29, 2013. The loan bore interest at 7.20% with maturity on August 29, 2014.  The loan was guaranteed by Taiyu. This loan was repaid at maturity.		-		820,089	SmartHeat
	From a commercial bank in the PRC for RMB 5,000,000 entered into on September 4, 2013. The loan bore interest at 7.20% with maturity on September 4, 2014.  The loan was guaranteed by Taiyu. This loan was repaid at maturity.		-		820,089	SmartHeat
	From a commercial bank in the PRC for RMB 30,000,000 entered into on August 8, 2013. The loan bore interest at 6.90% with maturity on August 7, 2014. The loan was paid in full at maturity.		-		4,920,533	Taiyu
	From a commercial bank in the PRC for RMB 9,900,000 entered into on September 18, 2013. The loan bore interest at 6.0% with maturity on September 17, 2014.  This loan was pledged by Taiyu’s accounts receivable. This loan was repaid at maturity.		-		1,623,776	Taiyu
	From a commercial bank in the PRC for RMB 9,900,000 entered into on October 11, 2013.  The loan bore interest at 6.0% with maturity on October 10, 2014. This loan was pledged by Taiyu’s accounts receivable. This loan was repaid at maturity.		-		1,623,776	Taiyu
	From a commercial bank in the PRC for RMB 16,000,000 entered into on July 10, 2013. The loan bore interest at 6.0% with maturity on January 9, 2014. This loan was pledged by Taiyu’s accounts receivable. This loan was repaid at maturity.					Taiyu
			-		2,624,285
	From a commercial bank in the PRC for RMB 36,000,000 entered into on April 23, 2014. The loan bore interest at 7.2% with maturity on April 22, 2015. This loan was pledged by Siping, Heat Pump, SanDeKe, and two officers of the Chinese subsidiaries.		5,883,314		-	Taiyu
	From a commercial bank in the PRC for RMB 4,000,000 entered into on April 23, 2014. The loan bore interest at 7.2% with maturity on April 22, 2015. This loan was guaranteed by Siping, Heat Pump, SanDeKe, and two officers of the Chinese subsidiaries.		653,702		-	Taiyu
	From a commercial bank in the PRC for RMB 24,693,389 entered into on October 15, 2014. The loan bore interest at 7.2% with maturity on April 15, 2015.		4,035,527		-	Taiyu
	From a commercial bank in the PRC for RMB 13,000,000 entered into on October 30, 2013. The loan bore interest at 6.46% with maturity on October 29, 2015.  The loan was pledged by the Taiyu’s land and building.		2,124,530		-	Taiyu
	From a commercial bank in the PRC for RMB 10,000,000 entered into on November 17, 2014. The loan bore interest at 7.00% with maturity on November 17, 2015.  The loan was guaranteed by Taiyu.		1,634,254		-	SmartHeat Siping
	From a commercial bank in the PRC for RMB 10,000,000 entered into on October 13, 2014. The loan bore interest at 5.60% with maturity on September 19, 2015.  The loan was guaranteed by Taiyu.		1,634,254		-	SmartHeat Siping
	TOTAL	$	25,111,702	$	24,462,299

16_DEFERRED_TAX_ASSET_LIABILIT1

16. DEFERRED TAX ASSET (LIABILITY) (Tables)	12 Months Ended
	Dec. 31, 2014
Deferred Tax Assets Liabilities Net Disclosure [Abstract]
Summary of Deferred Tax Liability Not Recognized [Table Text Block]	As of December 31, 2014 and 2013, deferred tax asset (liability) consisted of the following:
		2014			2013
	Deferred tax asset - current (bad debt allowance for accounts receivable)	$	6,361,682		$	7,715,041
	Deferred tax asset - current (bad debt allowance to retention receivable)		364,697			-
	Deferred tax asset - current (inventory allowance)		3,446,251			2,321,878
	Deferred tax asset – current (bad debt allowance for other receivables)		2,822,959			1,523,065
	Deferred tax asset – current (allowance for advance to supplier)		589,761			974,284
	Deferred tax asset – current (reserve for warranty)		42,643			75,808
	Deferred tax asset – noncurrent (NOL)		2,931,171			2,464,239
	Deferred tax asset – noncurrent (impairment loss on long – lived assets)		3,054,588			3,334,594
	Less: valuation allowance		(19,613,752	)		(18,408,909	)
	Deferred tax assets, net	$	-		$	-
	Deferred tax liability - noncurrent (depreciation of fixed assets)	$	(66,024	)	$	(17,177	)

17_INCOME_TAXES_Tables

17. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The following table reconciles the US statutory rates to the Company’s effective tax (benefit) rate for the years ended December 31, 2014 and 2013:
		2014			2013
	US statutory tax (benefit) rates		(34.0	)%		(34.0	)%
	Tax rate difference		8	%		8.4	%
	Effect of tax holiday		5	%		5.2	%
	Valuation allowance		21.4	%		20.3	%
	Tax (benefit) per financial statements		0.4	%		(0.1	)%
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	The income tax expense (benefit) for the years ended December 31, 2014 and 2013, consisted of the following:
		2014			2013
	Income tax expense - current	$	-		$	26,612
	Income tax expense (benefit) - deferred		48,717			(77,269	)
	Total income tax expense (benefit), net	$	48,717		$	(50,657	)

19_STOCKHOLDERS_EQUITY_Tables

19. STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Following is a summary of the option activity:
		Number of		Average		Weighted
		Shares		Exercise		Average
				Price per Share		Remaining
						Contractual
						Term in Years
	Outstanding at January 1, 2013		3,500		97.8		1.65
	Exercisable at January 1, 2013		3,500		97.8		1.65
	Granted		-		-		-
	Exercised		-		-		-
	Forfeited		1,000		46		-
	Outstanding at December31, 2013		2,500		118.5		1.34
	Exercisable at December31, 2013		2,500		118.5		1.34
	Granted		-		-		-
	Exercised		-		-		-
	Forfeited		-		-		-
	Outstanding at December 31, 2014		2,500	$	118.5		0.08
	Exercisable at December 31, 2014		2,500	$	118.5		0.08

23_CONDENSED_FINANCIAL_INFORMA1

23. CONDENSED FINANCIAL INFORMATION OF US PARENT (Tables)	12 Months Ended
	Dec. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Balance Sheet [Table Text Block]		2014			2013
	ASSETS
	Cash and equivalents	$	68,103		$	251,461
	Investment in subsidiaries		26,229,140			34,630,504
	Other current assets		3,852,973			3,830,224
	TOTAL ASSETS	$	30,150,216		$	38,712,189
	LIABILITIES AND STOCKHOLDERS'  EQUITY
	Accrued liabilities and other payables	$	6,292,228		$	3,562,896
	STOCKHOLDERS' EQUITY:
	Common stock	$	6,783		$	6,133
	Additional paid-in capital		86,111,340			87,393,606
	Statutory reserve		5,389,057			5,389,056
	Other comprehensive income		8,549,568			8,991,270
	Accumulated deficit		(76,198,760	)		(66,630,772	)
	Total stockholders' equity		23,857,988			35,149,293
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	30,150,216		$	38,712,189
Condensed Income Statement [Table Text Block]		2014			2013
	Operating expenses
	General and administrative expenses	$	1,375,270		$	1,531,085
	Impairment of long-term investment		-			908,084
	Loss from operations		(1,375,270	)		(2,439,169	)
	Non-operating expenses		(233,056	)		(1,006,242	)
	Equity loss in subsidiaries		(7,959,661	)		(46,223,930	)
	Total non-operating loss		(8,192,717	)		(47,230,172	)
	Loss before income tax		(9,567,987	)		(49,669,341	)
	Income tax		-			-
	Net loss	$	(9,567,987	)	$	(49,669,341	)
Condensed Cash Flow Statement [Table Text Block]		2014			2013
	CASH FLOWS FROM OPERATING ACTIVITIES:
	Net loss	$	(9,567,987	)	$	(49,669,341	)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Stock-based compensation		37,500			-
	Shares issued for loan consenting fee		-			30,000
	Loss on settlement of debt		-			20,000
	Gain on issuance of stock		(130,000	)		-
	Amortization of loan origination and extension fee		148,566			102,477
	Amortization of loan amendment fee paid by shares		28,685			31,315
	Equity loss in subsidiaries		7,959,661			46,223,930
	Loss on sale of equity interest		-			842,491
	Impairment of long-term investment		-			908,084
	Increase in current liabilities		1,340,217			367,185
	Net cash used in operating activities		(183,358	)		(1,143,859	)
	CASH FLOWS FROM INVESTING ACTIVITIES:
	Investment in subsidiaries		-			-
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Credit line payable		-			1,312,841
	Net cash provided by financing activities		-			1,312,841
	NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS		(183,358	)		168,982
	CASH AND EQUIVALENTS, BEGINNING OF YEAR		251,461			82,479
	CASH AND EQUIVALENTS, END OF YEAR	$	68,103		$	251,461

24_UNAUDITED_PRO_FORMA_CONSOLI1

24. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2014
Business Combinations [Abstract]
Business Deconsolidation, Pro Forma Information [Table Text Block]	AS OF DECEMBER 31, 2014
		Company Historical			Sales of PHE segment			Pro Forma adjustments				Company Pro Forma
	ASSETS
	CURRENT ASSETS
	Cash & equivalents	$	13,682,624		$	9,490,641		$	-			$	4,191,983
	Restricted cash		9,913,104			9,847,182			-				65,922
	Accounts  receivable, net		16,052,184			18,437,984			3,829,234		a, b		1,443,434
	Retentions receivable, net		1,309,057			1,206,786			-				102,271
	Advances to suppliers, net		2,417,949			3,012,776			(609,745)		b		(1,204,572	)
	Other receivables (net), prepayments and deposits		5,068,411			26,902,540			22,677,382		a, b		843,253
	Inventories, net		49,349,195			42,233,818			-				7,115,377
	Taxes receivable		325,252			303,108			-				22,144
	Notes receivable - bank acceptances		2,271,131			2,271,131			-				-
	Total current assets		100,388,907			113,705,966			25,896,871				12,579,812
	NONCURRENT ASSETS
	Long term investment		29,540			-			(29,540	)	b		-
	Restricted cash		123,002			123,002			-				-
	Construction in progress		84,533			84,533			-				-
	Property and equipment, net		1,995,520			757,330			-				1,238,190
	Intangible assets, net		576,999			-			-				576,999
	Total noncurrent assets		2,809,594			964,865			(29,540	)			1,815,189
	TOTAL ASSETS	$	103,198,501		$	114,670,831			25,867,331			$	14,395,001
	LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES
	Accounts payable	$	7,384,756		$	8,106,600		$	1,467,290		a, b	$	745,446
	Advance from customers		2,714,603			1,992,933			(609,745	)	b		111,925
	Taxes payable		196,246			183,185			-				13,061
	Accrued liabilities and other payables		19,319,461			31,649,373			14,860,195		a, b		2,530,283
	Notes payable - bank acceptances		1,401,530			1,401,530			-				-
	Loans payable		25,111,702			25,111,702			-				-
	Total current liabilities		56,128,298			68,445,323			15,717,740				3,400,715
	CREDIT LINE PAYABLE		2,749,335			-			-				2,749,335
	LONG-TERM LOAN		-			-			-				-
	DEFERRED TAX LIABILITY		66,024			-			-				66,024
	STOCKHOLDERS' EQUITY
	Common stock		6,783			-			-				6,783
	Paid-in capital		87,500,456			59,341,363			77,326,388		b		105,485,481
	Statutory reserve		5,389,057			4,608,375			4,608,375		b		5,389,057
	Accumulated other comprehensive income		8,549,568			7,065,900			7,065,900		b		8,549,568
	Accumulated deficit		(76,198,760	)		(43,579,536	)		(78,851,072	)	a, b		(111,470,296	)
	Total Company stockholders' equity		25,247,104			27,436,102			10,149,591				7,960,593
	NONCONTROLLING INTEREST		19,007,740			18,789,406			-				218,334
	TOTAL EQUITY		44,254,844			46,225,508			10,149,591				8,178,927
	TOTAL LIABILITIES AND EQUITY	$	103,198,501		$	114,670,831		$	25,867,331			$	14,395,001
		YEAR ENDED DECEMBER 31, 2014
		Company Historical			Sales of PHE segment			Pro Forma adjustments				Company Pro Forma
	Net sales	$	34,075,959		$	28,480,330		$	1,489,420		a	$	7,085,049
	Cost of goods sold		32,941,074			28,657,177			1,489,420		a		5,773,317
	Gross profit (loss)		1,134,885			(176,847	)		-				1,311,732
	Operating expenses
	Selling		6,563,729			4,748,596			-				1,815,133
	General and administrative		7,767,391			3,221,930			-				4,545,461
	Provision for bad debts		(4,663,703	)		(2,241,241	)		-				(2,422,462	)
	Provision for advance to supplier		3,470,029			1,143,178							2,326,851
	Total operating expenses		13,137,446			6,872,463			-				6,264,983
	Loss from operations		(12,002,561	)		(7,049,310	)		-				(4,953,251	)
	Non-operating income (expenses)
	Investment income		2,808			-			-				2,808
	Interest income		161,123			142,154			-				18,969
	Interest expense		(1,792,765	)		(1,578,275	)		-				(214,490	)
	Financial expense		(284,387	)		(132,823	)		-				(151,564	)
	Gain on issuance of stock		130,000			-			-				130,000
	Foreign exchange transaction loss		(3,785	)		(3,785	)		-				-
	Other income, net		952,470			401,389			-				551,081
Total non-operating expenses, net		(834,536	)		(1,171,340	)		-				336,804
Loss before income tax		(12,837,097	)		(8,220,650	)		-				(4,616,447	)
Income tax expense		48,717			-			-				48,717
Net loss before noncontrolling interest		(12,885,814	)		(8,220,650	)		-				(4,665,164	)
Less: loss attributable to noncontrolling interest		(3,317,826	)		(3,288,260	)		-				(29,566	)
Net loss to SmartHeat Inc.		(9,567,988	)		(4,932,390	)		-				(4,635,598	)
Basic and diluted weighted average shares outstanding		6,564,084			-			-				6,564,084
Basic and diluted loss per share	$	(1.46	)		-			-			$	(0.71	)
	YEAR ENDED DECEMBER 31, 2013
	Company Historical (1)			Sales of PHE segment (2)			Pro Forma adjustments				Company Pro Forma
Net sales	$	44,709,526		$	38,915,416		$	1,974,163		a	$	7,768,273
Cost of goods sold		40,401,380			35,659,348			1,974,163		a		6,716,195
Gross profit		4,308,146			3,256,068			-				1,052,078
Operating expenses
Selling		6,864,060			5,084,636			-				1,779,424
General and administrative		10,400,323			5,582,360			-				4,817,963
Long-lived assets impairment		13,730,849			13,730,849			-				-
Impairment of long term investment		908,084			-			-				908,084
Provision for bad debts		24,980,195			24,638,062			-				342,133
Provision for advance to supplier		1,666,906			(682,973	)		-				2,349,879
Total operating expenses		58,550,417			48,352,934			-				10,197,483
Loss from operations		(54,242,271	)		(45,096,866	)		-				(9,145,405	)
Non-operating income (expenses)
Investment income (loss)		153,237			-			-				153,237
Interest income		159,972			79,704			-				80,268
Interest expense		(1,816,457	)		(1,758,210	)		-				(58,247	)
Financial expense		(249,681	)		(73,567	)		-				(176,114	)
Foreign exchange transaction gain		(9,495	)		(9,478	)		-				(17	)
Loss on sale of equity interest		(842,491	)		-			-				(842,491	)
Other income, net		1,314,945			470,730			-				844,215
Total non-operating expenses, net		(1,289,970	)		(1,290,821	)		-				851
Loss before income tax		(55,532,241	)		(46,387,687	)		-				(9,144,554	)
Income tax expense (benefit)		(50,657	)		26,725			-				(77,382	)
Net loss before noncontrolling interest		(55,481,584	)		(46,414,412	)		-				(9,067,172	)
Less: loss attributable to noncontrolling interest		(5,812,243	)		(5,798,050	)		-				(14,193	)
Net loss to SmartHeat Inc.		(49,669,341	)		(40,616,362	)		-				(9,052,979	)
Basic and diluted weighted average shares outstanding		5,870,111			-			-				5,870,111
Basic and diluted loss per share	$	(8.46	)		-			-			$	(1.54	)
(a) To reflect the effect of forgiveness of all net indebtness owing to Target Companies by SmartHeat and each of its other subsidiaries.
(b) To reflect the sale of 100% equity interest in Target companies, and loss on the sale.
(a) To include the inter-company sales between disposed entities and other subsidiaries of SmartHeat Inc.
(b) The transaction will result in an expected loss of $35.27 million from the 100% equity interest sale of the entities to be sold consisting of a $44.06 million loss on sale resulting from the difference of the total selling price and the net assets of sold entities, netted off with the $8.79 million the forgiveness of all net indebtedness owing to the sold entities by SmartHeat and each of its other subsidiaries.  The loss is not reflected in the unaudited pro forma statements of operations because it is a material non-recurring charge directly related to the transaction that will be included in our results within the 12 months after the transaction.
(a) To include the inter-company sales between disposed entities and other subsidiaries of SmartHeat Inc.

1_ORGANIZATION_AND_DESCRIPTION1

1. ORGANIZATION AND DESCRIPTION OF BUSINESS (Details)

0 Months Ended

12 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

Aug. 23, 2013

Dec. 31, 2014

Dec. 31, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Aug. 23, 2013

Dec. 30, 2013

Jun. 30, 2011

Jun. 30, 2011

Jun. 16, 2009

Jun. 16, 2009

Dec. 31, 2014

Aug. 14, 2009

Aug. 14, 2009

Dec. 31, 2014

Apr. 07, 2010

Dec. 30, 2013

Dec. 31, 2014

Apr. 12, 2010

6-May-10

Dec. 30, 2013

Dec. 31, 2014

Dec. 29, 2013

Jan. 07, 2011

Dec. 30, 2013

Apr. 30, 2012

Apr. 30, 2012

Dec. 31, 2014

Dec. 29, 2013

Apr. 30, 2012

Apr. 30, 2012

Dec. 30, 2013

Dec. 31, 2014

Dec. 31, 2013

Nov. 28, 2014

Nov. 28, 2014

Dec. 30, 2013

Dec. 30, 2013

Oct. 30, 2013

Dec. 31, 2013

Nov. 28, 2014

Dec. 30, 2013

Apr. 14, 2008

Apr. 14, 2008

Jun. 03, 2009

28-May-08

Sep. 25, 2008

Mar. 01, 2011

Mar. 01, 2011

Dec. 31, 2011

Mar. 01, 2011

Mar. 03, 2011

Mar. 03, 2011

USD ($)

USD ($)

Heat HP Inc. [Member]

Heat HP Inc. [Member]

Heat HP Inc. [Member]

Heat HP Inc. [Member]

Heat HP Inc. [Member]

Heat PHE Inc. [Member]

Heat PHE Inc. [Member]

Heat PHE Inc. [Member]

Heat PHE Inc. [Member]

Heat PHE Inc. [Member]

Heat PHE Inc. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

Beijing SmartHeat Jinhui Energy Technology Co., Ltd. [Member]

Beijing SmartHeat Jinhui Energy Technology Co., Ltd. [Member]

SmartHeat (China) Investment Co., Ltd. [Member]

SmartHeat (China) Investment Co., Ltd. [Member]

SmartHeat (Shenyang) Energy Equipment Co., Ltd. [Member]

SmartHeat (Shenyang) Energy Equipment Co., Ltd. [Member]

SmartHeat (Shenyang) Energy Equipment Co., Ltd. [Member]

SmartHeat (Shanghai) Trading Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SmartHeat Heat Exchange Equipment Co. [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SanDeke Co., Ltd. [Member]

SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. [Member]

SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. [Member]

SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. [Member]

SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. [Member]

SmartHeat Deutschland GmbH (SmartHeat Germany) [Member]

SmartHeat Deutschland GmbH (SmartHeat Germany) [Member]

Beijing SmartHeat Jinhui Energy Technology Co., Ltd. [Member]

SmartHeat (China) Investment Co., Ltd. [Member]

SmartHeat (Shanghai) Trading Co., Ltd. [Member]

SmartHeat Deutschland GmbH (SmartHeat Germany) [Member]

SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat (Shenyang) Energy Equipment Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SanDeke Co., Ltd. [Member]

Revolving Credit Facility [Member]

Equity Interest Purchase Agreement [Member]

USD ($)

CNY

USD ($)

CNY

USD ($)

CNY

USD ($)

USD ($)

Equity Interest Purchase Agreement [Member]

USD ($)

USD ($)

Equity Interest Purchase Agreement [Member]

USD ($)

USD ($)

Equity Interest Purchase Agreement [Member]

Urumchi Annai Energy Conservation Company Ltd. [Member]

Beijing Taiyu Huineng Company Ltd. [Member]

USD ($)

USD ($)

CNY

Equity Interest Purchase Agreement [Member]

USD ($)

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

USD ($)

CNY

USD ($)

USD ($)

CNY

USD ($)

EUR (€)

USD ($)

CNY

USD ($)

CNY

CNY

USD ($)

1. ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) [Line Items]

Business Combination, Consideration Transferred, Equity Interests Issued and Issuable

$3,950,000

25,000,000

Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares)

1,850,000

1,850,000

Equity Method Investment, Ownership Percentage

60.00%

52.00%

52.00%

60.00%

100.00%

51.00%

51.00%

46.00%

46.00%

60.00%

60.00%

28.40%

71.60%

98.80%

95.00%

Stock Repurchased and Retired During Period, Shares (in Shares)

250,000

250,000

Payments to Acquire Businesses, Gross

741,500

7,600,000

50,000,000

5,900,000

4,250,000

Payments to Acquire Productive Assets

7,910,000

54,000,000

1,060,000

7,250,000

Capital

1,460,000

10,000,000

40,000,000

70,000,000

30,000,000

3,000,000

Equity Method Investments

29,540

26,721

765,000

1,500,000

321,997

771,600

612,808

720,000

4,600,000

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

40.00%

40.00%

40.00%

40.00%

30.00%

24.00%

40.00%

40.00%

5.00%

Number of Wholly-Owned Subsidiaries Created

2

Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions

100.00%

100.00%

100.00%

100.00%

98.80%

100.00%

100.00%

51.00%

100.00%

100.00%

Debt Instrument, Equity Interest Held as Collateral

55.00%

Equity Method Investment, Net Sales Proceeds (in Yuan Renminbi)

1,390,000

8,500,000

820,000

5,000,000

5,000,000

Noncontrolling Interest, Ownership Percentage by Parent

30.60%

51.00%

27.60%

46.00%

40.00%

Equity Method Investment, Other than Temporary Impairment (in Dollars)

910,000

22,090,000

Other Comprehensive Income (Loss), Transfers from Held-to-maturity to Available-for-Sale Securities, Net of Tax (in Dollars)

4,860,000

Equity Method Investment, Realized Gain (Loss) on Disposal (in Dollars)

$0

($842,491)

Equity Investment, Purchase Option, Description

Under the terms of the Amended EIPA, the buyers have agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consists of: (i) consideration of RMB 8.5 million and (ii) the forgiveness of all net indebtedness owing to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA.The effectiveness of the transaction is subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the Board of Directors (“BOD” or the “Board”) of the Company of an opinion that the purchase and sale transaction is fair to the shareholders of SmartHeat from a financial point of view.

Under the terms of the Amended EIPA, the buyers have agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consists of: (i) consideration of RMB 8.5 million and (ii) the forgiveness of all net indebtedness owing to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA.The effectiveness of the transaction is subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the Board of Directors (“BOD” or the “Board”) of the Company of an opinion that the purchase and sale transaction is fair to the shareholders of SmartHeat from a financial point of view.

Number of Investors

25

25

2_SUMMARY_OF_SIGNIFICANT_ACCOU2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

12 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2012

Dec. 30, 2013

Dec. 30, 2013

Oct. 30, 2013

Oct. 30, 2013

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2013

Dec. 31, 2014

Nov. 27, 2014

Nov. 27, 2014

Nov. 27, 2014

Dec. 30, 2013

Dec. 31, 2014

Dec. 30, 2013

Dec. 31, 2014

Dec. 30, 2013

Dec. 31, 2014

Dec. 29, 2013

Jan. 07, 2011

Dec. 30, 2013

Dec. 31, 2014

Dec. 29, 2013

Apr. 30, 2012

Dec. 30, 2013

Dec. 31, 2014

Dec. 31, 2013

Nov. 28, 2014

Nov. 28, 2014

Dec. 30, 2013

Dec. 30, 2013

Oct. 30, 2013

Nov. 28, 2014

Dec. 30, 2013

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

USD ($)

USD ($)

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Option [Member]

Equity Option [Member]

Tax Payable [Member]

Financial Product [Member]

Financial Product [Member]

Financial Product [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]

SmartHeat (Shenyang) Energy Equipment Co., Ltd. [Member]

SmartHeat (Shenyang) Energy Equipment Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]

Taiyu, Siping and Shengyang Energy [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

SmartHeat Deutschland GmbH (SmartHeat Germany) [Member]

Use Rights [Member]

Urumchi XinRui Technology LLC [Member]

Minimum [Member]

Maximum [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Urumchi XinRui Technology LLC [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

USD ($)

USD ($)

CNY

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

USD ($)

Equity Interest Purchase Agreement [Member]

USD ($)

Equity Interest Purchase Agreement [Member]

USD ($)

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

USD ($)

USD ($)

CNY

USD ($)

CNY

USD ($)

CNY

CNY

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]

Net Income (Loss) Attributable to Parent

($9,567,988)

($49,669,341)

($24,779)

$37,646

Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest

-4,930,000

Income (Loss) Attributable to Noncontrolling Interest

-4,640,000

Equity Investment, Estimated Gain (Loss) on Sale of Investment

-35,270,000

-35,270,000

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

40.00%

40.00%

40.00%

40.00%

40.00%

40.00%

40.00%

40.00%

Noncontrolling Interest, Ownership Percentage by Parent

30.60%

51.00%

27.60%

46.00%

40.00%

Equity Method Investment, Ownership Percentage

60.00%

60.00%

51.00%

51.00%

46.00%

60.00%

60.00%

Asset Impairment Charges

0

13,730,849

Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Noncontrolling Interest

5,490,000

Debt Instrument, Face Amount

8,590,000

40,000,000

Debt Instrument, Issuance Date

27-Nov-14

Debt Instrument, Maturity Date

7-Jan-15

Debt Instrument, Interest Rate, Stated Percentage

4.50%

4.50%

Allowance for Doubtful Accounts Receivable

39,260,000

48,250,000

Retentions Receivable

3,640,000

4,440,000

Retention Receivable, Rate

5.00%

20.00%

Retention Receivable, Terms

3 months

24 months

Allowance for Doubtful Other Receivables, Current

2,330,000

0

Accounts Receivable Net of Unearned Interest

26,558

26,655

Receivable with Imputed Interest, Effective Yield (Interest Rate)

6.15%

Property, Plant and Equipment, Salvage Value, Percentage

10.00%

Finite-Lived Intangible Assets, Amortization Method

straight-line method

Finite-Lived Intangible Asset, Useful Life

50 years

Equity Method Investment, Net Sales Proceeds

820,000

5,000,000

1,390,000

8,500,000

820,000

5,000,000

5,000,000

Equity Investment, Purchase Option, Description

The buyers had the option to purchase the remaining 60% equity interest in the Target Companies for an additional purchase price of RMB 8.5 million ($1.39 million).

The buyers had the option to purchase the remaining 60% equity interest in the Target Companies for an additional purchase price of RMB 8.5 million ($1.39 million).

Under the terms of the Amended EIPA, the buyers have agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consists of: (i) consideration of RMB 8.5 million and (ii) the forgiveness of all net indebtedness owing to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA.The effectiveness of the transaction is subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the Board of Directors (“BOD” or the “Board”) of the Company of an opinion that the purchase and sale transaction is fair to the shareholders of SmartHeat from a financial point of view.

Under the terms of the Amended EIPA, the buyers have agreed to purchase the remaining 60% of the Company’s equity interests in the Target Companies effective as of December 31, 2014 (the “Closing Date”). The purchase price for the remaining 60% consists of: (i) consideration of RMB 8.5 million and (ii) the forgiveness of all net indebtedness owing to the Target Companies by SmartHeat and each of its other subsidiaries as of December 31, 2014 subject to termination provisions as set forth in EIPA.The effectiveness of the transaction is subject to the following conditions: (i) approval of its shareholders and (ii) receipt by the Board of Directors (“BOD” or the “Board”) of the Company of an opinion that the purchase and sale transaction is fair to the shareholders of SmartHeat from a financial point of view.

Impaired Long-Lived Assets Held and Used, Facts and Circumstances Leading to Impairment

Since the Company has the option to sell 100% ownership in Target Companies for RMB13.5 million ($2.21 million), a significant decrease in the market price before the end of its previously estimated useful life for their long-lived assets, the Company therefore performed asset recoverability testing by comparing the assets’ estimated future undiscounted cash flows with their carrying value, and concluded the long-lived assets were not recoverable as a result of future cash flows being less than the carrying amount. The Company further calculated the impairment losses of Target Companies by determining the FV for the long-lived asset group and recorded a write-down (loss) for the difference between their carrying value and their FV. FV is an asset’s purchase or sale price in a current transaction between willing parties.

Other than Temporary Impairment Losses, Investments

0

908,084

Standard Product Warranty Description

The Company offers all customers standard warranties on its products for one or two heating seasons depending on the terms negotiated.

Research and Development Expense

723,910

1,424,400

Revenue Recognition, Sales Description

sales generally provide for 30% of the purchase price on placement of an order, 30% on delivery, 30% upon installation and acceptance of the equipment after customer testing and 10% no later than the termination of the standard warranty period, which ranges from three to 24 months from the acceptance date.

Value-added Tax, Sales

17.00%

19.00%

Sales Returns and Allowances, Goods

0

0

After-Sales Services, After Warranty Period

215,867

24,732

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares)

2,500

2,500

Number of Operating Segments

2

Prior Period Reclassification Adjustment

$2,300,000

2_SUMMARY_OF_SIGNIFICANT_ACCOU3

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Restricted Cash and Cash Equivalents (USD $)	Dec. 31, 2014		Dec. 31, 2013
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current	$9,913,104		$2,458,758
Performance guarantee - noncurrent	123,002		135,926
Bankers Acceptance [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current	700,000		1,290,000
Financial Product [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current	8,590,000	[1]	0	[1]
Performance Guarantee [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current	410,000		1,160,000
Financial Standby Letter of Credit [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, current	$210,000		$10,000
[1]	Financial product from a commercial bank in the PRC for RMB 40,000,000 ($8.59 million) was entered into on November 27, 2014 with maturity on January 7, 2015. The financial product has an expected annual interest rate of 4.5%.

2_SUMMARY_OF_SIGNIFICANT_ACCOU4

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Cash and Cash Equivalents (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash and Cash Equivalents [Line Items]
Cash and equivalents	$13,682,624	$13,602,399	$18,336,163
UNITED STATES
Cash and Cash Equivalents [Line Items]
Cash and equivalents	68,103	251,461
CHINA
Cash and Cash Equivalents [Line Items]
Cash and equivalents	13,118,523	11,326,282
GERMANY
Cash and Cash Equivalents [Line Items]
Cash and equivalents	$495,998	$2,024,656

2_SUMMARY_OF_SIGNIFICANT_ACCOU5

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Estimated Useful Lives of Property, Plant and Equipment	12 Months Ended
	Dec. 31, 2014
Building [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	20 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	5 years
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	5 years
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	5 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	10 years

2_SUMMARY_OF_SIGNIFICANT_ACCOU6

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Product Warranty Liability (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Schedule of Product Warranty Liability [Abstract]
Beginning balance	$472,558	$517,076
Provisions	338,589	331,989
Actual costs incurred	-338,589	-376,507
Ending balance in current liabilities (Note 13)	$472,558	$472,558

2_SUMMARY_OF_SIGNIFICANT_ACCOU7

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Foreign Exchange Rate	Dec. 31, 2014	Dec. 31, 2013
Average Exchange Rate [Member] | China, Yuan Renminbi
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Foreign Exchange Rate [Line Items]
Exchange Rate	6.1431	6.2142
Average Exchange Rate [Member] | Euro Member Countries, Euro
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Foreign Exchange Rate [Line Items]
Exchange Rate	0.7535	0.753
China, Yuan Renminbi
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Foreign Exchange Rate [Line Items]
Exchange Rate	6.119	6.0969
Euro Member Countries, Euro
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Foreign Exchange Rate [Line Items]
Exchange Rate	0.8266	0.7263

2_SUMMARY_OF_SIGNIFICANT_ACCOU8

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Segment Reporting Income Statement Information, by Segment (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Revenue from unaffiliated customers:	$34,075,959	$44,709,526
Income from operations	-12,002,561	-54,242,271
Net income	-9,567,988	-49,669,341
Depreciation and amortization:	816,240	2,182,640
TOTAL ASSETS	103,198,501	114,814,802
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Revenue from unaffiliated customers:	0	-131,806
Intersubsegment Eliminations [Member]
Segment Reporting Information [Line Items]
Income from operations	0	1,055
Net income	0	1,055
TOTAL ASSETS	-47,199,591	-16,153,739
Plate Heating, Meters and Related [Member]
Segment Reporting Information [Line Items]
Revenue from unaffiliated customers:	28,010,658	38,882,321
Income from operations	-7,741,793	-48,917,343
Net income	-5,633,520	-44,283,015
Depreciation and amortization:	176,476	1,537,002
TOTAL ASSETS	105,010,408	113,919,061
Heat Pumps [Member]
Segment Reporting Information [Line Items]
Revenue from unaffiliated customers:	6,065,301	5,959,011
Income from operations	-2,885,498	-2,886,815
Net income	-2,326,142	-2,095,207
Depreciation and amortization:	462,512	511,846
TOTAL ASSETS	41,466,608	13,674,622
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Income from operations	-1,375,270	-2,439,168
Net income	-1,608,326	-3,292,174
Depreciation and amortization:	177,252	133,792
TOTAL ASSETS	$3,921,076	$3,374,858

3_INVENTORIES_NET_Details_Sche

3. INVENTORIES, NET (Details) - Schedule of Inventories (USD $)	Dec. 31, 2014	Dec. 31, 2013
Schedule of Inventories [Abstract]
Raw materials	$47,748,997	$48,258,773
Work in process	8,473,197	6,822,102
Finished goods	11,655,631	12,639,202
Total	67,877,825	67,720,077
Inventory allowance	-18,528,630	-11,395,714
Inventories, net	$49,349,195	$56,324,363

4_NOTES_RECEIVABLE_BANK_ACCEPT1

4. NOTES RECEIVABLE - BANK ACCEPTANCES (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Notes Receivable, Maturity Description	less than nine months
Bank Acceptances Executed and Outstanding	$0.92	$1.37

5_OTHER_RECEIVABLES_NET_PREPAY2

5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS (Details)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014
	USD ($)	USD ($)	Public Bids on Expected Contracts [Member]	Public Bids on Expected Contracts [Member]	Other Receivables and Deposits [Member]	SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]	SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]
			Minimum [Member]	Maximum [Member]		USD ($)	CNY
5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS (Details) [Line Items]
Advances to Affiliate						$3,600,000	22,130,000
Allowance for Doubtful Other Receivables, Current (in Dollars)	$2,330,000	$0				$3,600,000
Other Receivables, Prepayments and Deposits Reimbursement Period			3 months	4 months	12 months

5_OTHER_RECEIVABLES_NET_PREPAY3

5. OTHER RECEIVABLES (NET), PREPAYMENTS AND DEPOSITS (Details) - Schedule of Receivables, Prepayments and Deposits (USD $)	Dec. 31, 2014	Dec. 31, 2013
Schedule of Receivables, Prepayments and Deposits [Abstract]
Advance to third party companies	$14,212,310	$10,059,572
Deposit for public bids of sales contracts	168,235	758,465
Prepayment for freight, related, insurance, advertisement and consulting expenses	287,998	73,773
Other deposits	60,185	53,863
Advance to employees	1,334,715	926,441
Others	676,157	680,588
Total	16,739,600	12,552,702
Less: bad debt allowance	-11,671,189	-7,603,941
Other receivables (net), prepayments and deposits	$5,068,411	$4,948,761

6_PROPERTY_AND_EQUIPMENT_NET_D

6. PROPERTY AND EQUIPMENT, NET (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation	$371,172	$1,482,500

6_PROPERTY_AND_EQUIPMENT_NET_D1

6. PROPERTY AND EQUIPMENT, NET (Details) - Schedule of Property, Plant and Equipment (USD $)	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property & equipment, gross	$16,173,228	$15,644,685
Less: accumulated depreciation	-5,661,537	-5,459,525
Less: impairment	-8,516,171	-8,547,040
Property and equipment, net	1,995,520	1,638,120
Building [Member]
Property, Plant and Equipment [Line Items]
Property & equipment, gross	4,967,230	4,980,184
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property & equipment, gross	9,134,092	8,599,701
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property & equipment, gross	1,139,249	1,124,176
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property & equipment, gross	$932,657	$940,624

7_INTANGIBLE_ASSETS_NET_Detail

7. INTANGIBLE ASSETS, NET (Details)	12 Months Ended		1 Months Ended		12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Nov. 30, 2010	Jun. 30, 2009	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2005	Dec. 31, 2005
	USD ($)	USD ($)	Use Rights [Member]	Use Rights [Member]	Use Rights [Member]	Use Rights [Member]	Use Rights [Member]	Use Rights [Member]
			SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]	SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]	USD ($)	CNY	USD ($)	CNY
			USD ($)	USD ($)
7. INTANGIBLE ASSETS, NET (Details) [Line Items]
Payments to Acquire Intangible Assets	$0	$79,169	$10,100,000	$3,100,000			$440,000	3,550,000
Finite-Lived Intangible Asset, Useful Life			50 years		50 years	50 years
Increase (Decrease) in Deposit Assets					14,890,000	91,620,000
Amortization of Intangible Assets	267,810	566,300
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	138,010
Finite-Lived Intangible Assets, Amortization Expense, Year Two	133,180
Finite-Lived Intangible Assets, Amortization Expense, Year Three	128,500
Finite-Lived Intangible Assets, Amortization Expense, Year Four	75,750
Finite-Lived Intangible Assets, Amortization Expense, Year Five	66,740
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	$34,820

7_INTANGIBLE_ASSETS_NET_Detail1

7. INTANGIBLE ASSETS, NET (Details) - Schedule of Intangible Assets (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets, gross	$5,503,078	$17,389,287
Less: accumulated amortization	-1,097,055	-2,503,664
Less: impairment	-3,829,024	-3,842,904
Intangible assets, net	576,999	11,042,719
Use Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	50 years
Finite lived intangible assets, gross	4,134,587	15,167,552
Developed Technology Rights [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Developed Technology Rights [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible assets, gross	610,121	911,423
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Finite lived intangible assets, gross	0	214,841
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Finite lived intangible assets, gross	0	116,873
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years
Finite lived intangible assets, gross	460,899	680,049
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years
Finite lived intangible assets, gross	$297,471	$298,549

8_CONSTRUCTION_IN_PROGRESS_Det

8. CONSTRUCTION IN PROGRESS (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Constructions In Process Disclosure [Abstract]
Construction in Progress, Gross	$84,533	$0
Estimated Construction Costs	$980,000

9_LONG_TERM_INVESTMENT_Details

9. LONG TERM INVESTMENT (Details)

12 Months Ended

12 Months Ended

12 Months Ended

12 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2014

Dec. 31, 2014

Dec. 30, 2013

Dec. 31, 2014

Dec. 30, 2013

Dec. 29, 2013

Dec. 31, 2014

Apr. 30, 2012

Apr. 30, 2012

Dec. 29, 2013

Dec. 31, 2014

Jan. 07, 2011

USD ($)

USD ($)

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

USD ($)

USD ($)

USD ($)

CNY

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

9. LONG TERM INVESTMENT (Details) [Line Items]

Payments to Acquire Interest in Joint Venture

$722,700

$771,600

Noncontrolling Interest, Ownership Percentage by Parent

46.00%

27.60%

51.00%

30.60%

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

40.00%

40.00%

Equity Method Investments

26,721

29,540

612,808

720,000

4,600,000

321,997

771,600

Income (Loss) from Equity Method Investments

10,390

-7,582

Equity Method Investment, Ownership Percentage

46.00%

46.00%

51.00%

51.00%

Equity Method Investment, Other than Temporary Impairment

$910,000

9_LONG_TERM_INVESTMENT_Details1

9. LONG TERM INVESTMENT (Details) - Schedule of Condensed Financial Statements (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net revenue	$34,075,959	$44,709,526
Gross profit	1,134,885	4,308,146
Operating expenses	13,137,446	58,550,417
Income from operations	-12,002,561	-54,242,271
Non-operating income	-834,536	-1,289,970
Income tax expense	-48,717	50,657
Net income	-9,567,988	-49,669,341
Urumchi XinRui Technology LLC [Member]
Condensed Financial Statements, Captions [Line Items]
Net revenue	1,150,104
Cost of revenue	-866,903
Gross profit	283,201
Operating expenses	234,612
Income from operations	48,589
Non-operating income	1,628
Income tax expense	-12,571
Net income	$37,646

9_LONG_TERM_INVESTMENT_Details2

9. LONG TERM INVESTMENT (Details) - Schedule of Condensed Financial Statements (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net revenue	$34,075,959	$44,709,526
Gross profit	1,134,885	4,308,146
Operating expenses	13,137,446	58,550,417
Loss from operations	-12,002,561	-54,242,271
Non-operating income	-834,536	-1,289,970
Income tax expense	-48,717	50,657
Net loss	-9,567,988	-49,669,341
Hohhot Ruicheng Technology Co., Ltd. [Member]
Condensed Financial Statements, Captions [Line Items]
Net revenue	1,006,085
Cost of revenue	-864,666
Gross profit	141,419
Operating expenses	171,379
Loss from operations	-29,960
Non-operating income	5,181
Income tax expense	0
Net loss	($24,779)

10_MAJOR_CUSTOMERS_AND_VENDORS1

10. MAJOR CUSTOMERS AND VENDORS (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
10. MAJOR CUSTOMERS AND VENDORS (Details) [Line Items]
Accounts Payable, Current	7,384,756	6,683,860
Supplier #1 [Member] | Cost of Goods, Total [Member] | Supplier Concentration Risk [Member]
10. MAJOR CUSTOMERS AND VENDORS (Details) [Line Items]
Accounts Payable, Current	0
Customer #1 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
10. MAJOR CUSTOMERS AND VENDORS (Details) [Line Items]
Concentration Risk, Percentage		10.00%
Accounts Receivable, Net		1,286,257
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
10. MAJOR CUSTOMERS AND VENDORS (Details) [Line Items]
Concentration Risk, Customer	no customers accounted for over 10% of the Company’s total sales
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member]
10. MAJOR CUSTOMERS AND VENDORS (Details) [Line Items]
Concentration Risk, Percentage	14.00%
Concentration Risk, Supplier		no vendors accounted for over 10% of the Company’s total purchases

11_TAXES_RECEIVABLE_Details_Sc

11. TAXES RECEIVABLE (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable (USD $)	Dec. 31, 2014	Dec. 31, 2013
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract]
Income	$180,111	$180,764
Value-added	122,816	787,293
Other	22,325	21,578
Taxes receivable	$325,252	$989,635

12_TAXES_PAYABLE_Details_Sched

12. TAXES PAYABLE (Details) - Schedule of Taxes Payable (USD $)	Dec. 31, 2014	Dec. 31, 2013
Schedule of Taxes Payable [Abstract]
Income	$0	$516
Value-added	160,033	160,118
Other	36,213	36,444
Taxes payable	$196,246	$197,078

13_ACCRUED_LIABILITIES_AND_OTH2

13. ACCRUED LIABILITIES AND OTHER PAYABLES (Details)	12 Months Ended			12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
	USD ($)	USD ($)	Building [Member]	Use Rights [Member]	Use Rights [Member]	Use Rights [Member]
			USD ($)	USD ($)	CNY	USD ($)
13. ACCRUED LIABILITIES AND OTHER PAYABLES (Details) [Line Items]
Proceeds from Collection of Other Receivables	$10,322,150	$0		$14,890,000	91,620,000	$4,630,000
Other Loans Payable				4,820,000
Accrued Rent, Current	1,230,000		1,230,000
Accrued Salaries, Current	$360,000

13_ACCRUED_LIABILITIES_AND_OTH3

13. ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - Schedule of Accrued Liabilities and Other Payables (USD $)	Dec. 31, 2014	Dec. 31, 2013
Schedule of Accrued Liabilities and Other Payables [Abstract]
Advance from third parties	$3,273,985	$3,378,167
Payable to Siping Beifang	2,368,285	2,306,184
Payable for equipment purchase	326,688	322,295
Payable to employees	226,308	0
Deposit from customer	2,977,447	2,988,240
Refund of land use right purchased	4,816,685	4,627,270
Other	2,805,560	1,738,241
Warranty reserve (See Note 2)	472,558	472,558
Accrued expenses	2,051,945	1,382,051
Accrued liabilities and other payables	$19,319,461	$17,215,006

14_NOTES_PAYABLE_BANK_ACCEPTAN1

14. NOTES PAYABLE - BANK ACCEPTANCES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
14. NOTES PAYABLE - BANK ACCEPTANCES (Details) [Line Items]
Restricted Cash and Cash Equivalents, Current	9,913,104	$2,458,758
Bankers Acceptance [Member]
14. NOTES PAYABLE - BANK ACCEPTANCES (Details) [Line Items]
Restricted Cash and Cash Equivalents, Current	700,000	$1,290,000
Bankers Acceptance [Member] | Minimum [Member]
14. NOTES PAYABLE - BANK ACCEPTANCES (Details) [Line Items]
Debt Instrument, Term	3 months
Bankers Acceptance [Member] | Maximum [Member]
14. NOTES PAYABLE - BANK ACCEPTANCES (Details) [Line Items]
Debt Instrument, Term	6 months
Bankers Acceptance [Member]
14. NOTES PAYABLE - BANK ACCEPTANCES (Details) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	0.00%

15_LOANS_PAYABLE_Details

15. LOANS PAYABLE (Details)

12 Months Ended

0 Months Ended

0 Months Ended

1 Months Ended

0 Months Ended

Dec. 31, 2014

Dec. 31, 2013

Mar. 27, 2014

Sep. 18, 2013

Sep. 18, 2013

Feb. 20, 2012

Feb. 20, 2012

Jan. 12, 2012

Jan. 12, 2012

Nov. 30, 2013

Nov. 30, 2013

Nov. 30, 2013

Jul. 22, 2014

Jul. 14, 2014

Mar. 27, 2014

Sep. 17, 2013

Jun. 25, 2013

Dec. 21, 2012

Jul. 27, 2012

Sep. 30, 2013

Dec. 31, 2014

Jul. 22, 2014

Jul. 14, 2014

Mar. 27, 2014

Dec. 31, 2013

Sep. 17, 2013

Dec. 21, 2012

Aug. 23, 2013

Aug. 23, 2013

USD ($)

USD ($)

USD ($)

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Notes Payable to Banks [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Stock Issued for Notes Payable [Member]

Stock Issued for Notes Payable [Member]

Financial Guarantee [Member]

Financial Guarantee [Member]

Financial Guarantee [Member]

Financial Guarantee [Member]

Financial Guarantee [Member]

Financial Guarantee [Member]

USD ($)

CNY

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

CNY

USD ($)

CNY

USD ($)

CNY

15. LOANS PAYABLE (Details) [Line Items]

Guarantor Obligations, Current Carrying Value

$7,050,000

44,000,000

$7,320,000

46,000,000

$3,180,000

20,000,000

Line of Credit Facility, Maximum Borrowing Capacity

3,250,000

2,500,000

Debt Instrument, Collateral

This loan is guaranteed by Taiyu’s building and land.

Borrowings under the Credit Facility are secured by the Company’s deposit accounts located in the US, its trademarks in the PRC and 55% of its equity in each of its wholly-, directly owned subsidiaries.

Line of Credit Facility, Commitment Fee Percentage

4.00%

4.00%

Line of Credit Facility, Interest Rate During Period

10.00%

10.00%

Debt Instrument, Maturity Date

29-Nov-15

31-Oct-15

3-Jan-15

30-Apr-14

Debt Instrument, Fee

extension fee of 4% of the Maximum Line under the Credit Agreement

extension fee of 4% of the credit line amount of $2.5 million

extension fee of 4% of the Committed Amount

Debt Instrument, Payment Terms

Generally, borrowings may be prepaid at any time without premium or penalty, provided however that if the Company prepays any amount due under the Credit Facility from the proceeds of another instrument or agreement of indebtedness, the Company shall pay a 10% prepayment fee.

Line of Credit Facility, Description

On July 14, 2014, the Board approved and the Company entered the third amendment to the Credit Agreement with Northtech, the Amendment modifies the definition of “Average Share Price” in the Credit Agreement to decrease the minimum and maximum values for the “Average Share Price,” by 20% each from $0.50 to $0.40 and from $3.50 to $2.80, respectively.

Company entered into second amendment to the credit and security agreement with Northtech, which redefined the “base rate”, and adjusted the base rate to 10% annually, compounded quarterly, effective January 1, 2013

Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares)

200,000

100,000

100,000

1,300,000

100,000

Extinguishment of Debt, Amount

1,301,300

Long-term Line of Credit

2,749,335

1,396,378

Line of Credit Facility, Collateral

secured by 55% of the equity interest in each of HEAT PHE Inc. and HEAT HP Inc., and the Company’s option to repay the note by issuance of the Company’s shares

Other Significant Noncash Transaction, Consideration Given

$100,000

Stock Issued During Period, Shares, Other (in Shares)

200,000

200,000

Share Price (in Dollars per share)

$0.30

$0.60

Gains (Losses) on Restructuring of Debt

130,000

0

60,000

70,000

-20,000

Shares Issued, Price Per Share (in Dollars per share)

$0.15

$0.50

$0.50

Stock Issued During Period, Value, Other

70,000

60,000

30,000

Stock Issued During Period, Value, Restricted Stock Award, Gross

40,000

30,000

60,000

Debt Instrument, Face Amount

2,112,962

13,000,000

Debt Instrument, Interest Rate, Effective Percentage

6.46%

6.46%

Long-term Debt, Excluding Current Maturities

$0

$2,132,231

15_LOANS_PAYABLE_Details_Sched

15. LOANS PAYABLE (Details) - Schedule of Short Term Loans (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2014
Short-term Debt [Line Items]
Loans payable	$24,462,299	$25,111,702
Notes Payable to Banks [Member] | Note Payable One [Member]
Short-term Debt [Line Items]
Loans payable	0	1,176,663
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Two [Member]
Short-term Debt [Line Items]
Loans payable	0	3,268,508
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Three [Member]
Short-term Debt [Line Items]
Loans payable	0	3,268,508
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Four [Member]
Short-term Debt [Line Items]
Loans payable	0	1,432,442
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Five [Member]
Short-term Debt [Line Items]
Loans payable	2,188,684	0
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Six [Member]
Short-term Debt [Line Items]
Loans payable	1,640,178	0
Subsidiary obligated	SmartHeat Siping
Notes Payable to Banks [Member] | Note Payable Seven [Member]
Short-term Debt [Line Items]
Loans payable	6,560,711	0
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Eight [Member]
Short-term Debt [Line Items]
Loans payable	1,640,178	0
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Nine [Member]
Short-term Debt [Line Items]
Loans payable	820,089	0
Subsidiary obligated	SmartHeat
Notes Payable to Banks [Member] | Note Payable Ten [Member]
Short-term Debt [Line Items]
Loans payable	820,089	0
Subsidiary obligated	SmartHeat
Notes Payable to Banks [Member] | Note Payable Eleven [Member]
Short-term Debt [Line Items]
Loans payable	4,920,533	0
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Twelve [Member]
Short-term Debt [Line Items]
Loans payable	1,623,776	0
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Thirteen [Member]
Short-term Debt [Line Items]
Loans payable	1,623,776	0
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Fourteen [Member]
Short-term Debt [Line Items]
Loans payable	2,624,285	0
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Fifteen [Member]
Short-term Debt [Line Items]
Loans payable	0	5,883,314
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Sixteen [Member]
Short-term Debt [Line Items]
Loans payable	0	653,702
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Seventeen [Member]
Short-term Debt [Line Items]
Loans payable	0	4,035,527
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Eighteen [Member]
Short-term Debt [Line Items]
Loans payable	0	2,124,530
Subsidiary obligated	Taiyu
Notes Payable to Banks [Member] | Note Payable Nineteen [Member]
Short-term Debt [Line Items]
Loans payable	0	1,634,254
Subsidiary obligated	SmartHeat Siping
Notes Payable to Banks [Member] | Note Payable Twenty [Member]
Short-term Debt [Line Items]
Loans payable	$0	$1,634,254
Subsidiary obligated	SmartHeat Siping

15_LOANS_PAYABLE_Details_Sched1

15. LOANS PAYABLE (Details) - Schedule of Short Term Loans (Parentheticals) (Notes Payable to Banks [Member], CNY)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Note Payable One [Member]
Short-term Debt [Line Items]
Loan	7,200,000
Loan, entered into on	20-Feb-14
Loan, interest at	6.00%
Loan, maturity on	19-Feb-15
Note Payable Two [Member]
Short-term Debt [Line Items]
Loan	20,000,000
Loan, entered into on	11-Aug-14
Loan, interest at	7.20%
Loan, maturity on	11-Aug-15
Loan guaranteed by	Heat Pump and SanDeKe
Note Payable Three [Member]
Short-term Debt [Line Items]
Loan	20,000,000
Loan, entered into on	19-Aug-14
Loan, interest at	7.20%
Loan, maturity on	19-Aug-15
Loan guaranteed by	Heat Pump and SanDeKe
Note Payable Four [Member]
Short-term Debt [Line Items]
Loan	8,765,114
Loan, entered into on	17-Sep-14
Loan, interest at	7.20%
Loan, maturity on	17-Mar-15
Loan pledged by	Taiyu's accounts receivable
Note Payable Five [Member]
Short-term Debt [Line Items]
Loan	13,344,190	13,344,190
Loan, entered into on	26-Sep-12	26-Sep-12
Loan, interest at	6.16%	6.16%
Loan, maturity on	18-Jan-14	18-Jan-14
Note Payable Six [Member]
Short-term Debt [Line Items]
Loan	10,000,000	10,000,000
Loan, entered into on	30-Nov-12	30-Nov-12
Loan, interest at	7.87%	7.87%
Loan, maturity on	22-Nov-14	22-Nov-14
Loan guaranteed by	Taiyu	Taiyu
Note Payable Seven [Member]
Short-term Debt [Line Items]
Loan	40,000,000	40,000,000
Loan, entered into on	11-Mar-13	11-Mar-13
Loan, interest at	6.60%	6.60%
Loan, maturity on	10-Mar-14	10-Mar-14
Loan guaranteed by	Siping, HeatPump and management of Chinese subsidiaries	Siping, HeatPump and management of Chinese subsidiaries
Note Payable Eight [Member]
Short-term Debt [Line Items]
Loan	10,000,000	10,000,000
Loan, entered into on	21-May-13	21-May-13
Loan, interest at	6.60%	6.60%
Loan, maturity on	20-May-14	20-May-14
Note Payable Nine [Member]
Short-term Debt [Line Items]
Loan	5,000,000	5,000,000
Loan, entered into on	29-Aug-13	29-Aug-13
Loan, interest at	7.20%	7.20%
Loan, maturity on	29-Aug-14	29-Aug-14
Loan guaranteed by	Taiyu	Taiyu
Note Payable Ten [Member]
Short-term Debt [Line Items]
Loan	5,000,000	5,000,000
Loan, entered into on	4-Sep-13	4-Sep-13
Loan, interest at	7.20%	7.20%
Loan, maturity on	4-Sep-14	4-Sep-14
Loan guaranteed by	Taiyu	Taiyu
Note Payable Eleven [Member]
Short-term Debt [Line Items]
Loan	30,000,000	30,000,000
Loan, entered into on	8-Aug-13	8-Aug-13
Loan, interest at	6.90%	6.90%
Loan, maturity on	7-Aug-14	7-Aug-14
Note Payable Twelve [Member]
Short-term Debt [Line Items]
Loan	9,900,000	9,900,000
Loan, entered into on	18-Sep-13	18-Sep-13
Loan, interest at	6.00%	6.00%
Loan, maturity on	17-Sep-14	17-Sep-14
Loan pledged by	Taiyu's accounts receivable	Taiyu's accounts receivable
Note Payable Thirteen [Member]
Short-term Debt [Line Items]
Loan	9,900,000	9,900,000
Loan, entered into on	11-Oct-13	11-Oct-13
Loan, interest at	6.00%	6.00%
Loan, maturity on	10-Oct-14	10-Oct-14
Loan pledged by	Taiyu's accounts receivable	Taiyu's accounts receivable
Note Payable Fourteen [Member]
Short-term Debt [Line Items]
Loan	16,000,000	16,000,000
Loan, entered into on	10-Jul-13	10-Jul-13
Loan, interest at	6.00%	6.00%
Loan, maturity on	9-Jan-14	9-Jan-14
Loan pledged by	Taiyu's accounts receivable	Taiyu's accounts receivable
Note Payable Fifteen [Member]
Short-term Debt [Line Items]
Loan	36,000,000	36,000,000
Loan, entered into on	23-Apr-14
Loan, interest at	7.20%
Loan, maturity on	22-Apr-15
Loan pledged by	Siping, Heat Pump, SanDeKe, and two officers of the Chinese subsidiaries
Note Payable Sixteen [Member]
Short-term Debt [Line Items]
Loan	4,000,000	4,000,000
Loan, entered into on	23-Apr-14
Loan, interest at	7.20%
Loan, maturity on	22-Apr-15
Loan guaranteed by	Siping, Heat Pump, SanDeKe, and two officers of the Chinese subsidiaries
Note Payable Seventeen [Member]
Short-term Debt [Line Items]
Loan	24,693,389
Loan, entered into on	15-Oct-14
Loan, interest at	7.20%
Loan, maturity on	15-Apr-15
Note Payable Eighteen [Member]
Short-term Debt [Line Items]
Loan	13,000,000
Loan, entered into on	30-Oct-13
Loan, interest at	6.46%
Loan, maturity on	29-Oct-15
Loan pledged by	Taiyu's land and building
Note Payable Nineteen [Member]
Short-term Debt [Line Items]
Loan	10,000,000
Loan, entered into on	17-Nov-14
Loan, interest at	7.00%
Loan, maturity on	17-Nov-15
Loan guaranteed by	Taiyu
Note Payable Twenty [Member]
Short-term Debt [Line Items]
Loan	10,000,000
Loan, entered into on	13-Oct-14
Loan, interest at	5.60%
Loan, maturity on	19-Sep-15
Loan guaranteed by	Taiyu

16_DEFERRED_TAX_ASSET_LIABILIT2

16. DEFERRED TAX ASSET (LIABILITY) (Details) - Schedule of Deferred Tax Liability (USD $)	Dec. 31, 2014	Dec. 31, 2013
Schedule of Deferred Tax Liability [Abstract]
Deferred tax asset - current (bad debt allowance for accounts receivable)	$6,361,682	$7,715,041
Deferred tax asset - current (bad debt allowance to retention receivable)	364,697	0
Deferred tax asset - current (inventory allowance)	3,446,251	2,321,878
Deferred tax asset b current (bad debt allowance for other receivables)	2,822,959	1,523,065
Deferred tax asset b current (allowance for advance to supplier)	589,761	974,284
Deferred tax asset b current (reserve for warranty)	42,643	75,808
Deferred tax asset b noncurrent (NOL)	2,931,171	2,464,239
Deferred tax asset b noncurrent (impairment loss on long b lived assets)	3,054,588	3,334,594
Less: valuation allowance	-19,613,752	-18,408,909
Deferred tax assets, net	0	0
Deferred tax liability - noncurrent (depreciation of fixed assets)	($66,024)	($17,177)

17_INCOME_TAXES_Details

17. INCOME TAXES (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
17. INCOME TAXES (Details) [Line Items]
Operating Loss Carryforwards, Expiration, Years	20 years
Operating Loss Carryforwards (in Dollars)	8.5
Effective Income Tax Rate Reconciliation, Percent	0.40%	-0.10%
Foreign Tax Authority [Member] | SmartHeat Taiyu (Shenyang) Energy Technology Co., Ltd. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	15.00%
Foreign Tax Authority [Member] | SanDeke Co., Ltd. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%	24.00%	13.00%
Foreign Tax Authority [Member] | SmartHeat Siping Beifang Energy Technology Co., Ltd. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%
Foreign Tax Authority [Member] | Beijing SmartHeat Jinhui Energy Technology Co., Ltd. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%
Foreign Tax Authority [Member] | SmartHeat (China) Investment Co., Ltd. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%
Foreign Tax Authority [Member] | SmartHeat (Shenyang) Heat Pump Technology Co., Ltd. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%
Foreign Tax Authority [Member] | SmartHeat (Shanghai) Trading Co., Ltd. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%
Foreign Tax Authority [Member] | SmartHeat Heat Exchange Equipment Co. [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	25.00%
Foreign Tax Authority [Member] | SmartHeat Deutschland GmbH (SmartHeat Germany) [Member]
17. INCOME TAXES (Details) [Line Items]
Effective Income Tax Rate Reconciliation, Percent	15.00%

17_INCOME_TAXES_Details_Schedu

17. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Schedule of Effective Income Tax Rate Reconciliation [Abstract]
US statutory tax (benefit) rates	-34.00%	-34.00%
Tax rate difference	8.00%	8.40%
Effect of tax holiday	5.00%	5.20%
Valuation allowance	21.40%	20.30%
Tax (benefit) per financial statements	0.40%	-0.10%

17_INCOME_TAXES_Details_Schedu1

17. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Schedule of Components of Income Tax Expense [Abstract]
Income tax expense - current	$0	$26,612
Income tax expense (benefit) - deferred	48,717	-77,269
Total income tax expense (benefit), net	$48,717	($50,657)

18_STATUTORY_RESERVES_AND_REST1

18. STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Apr. 07, 2010
18. STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items]
After-Tax Income, Percentage, Appropriations	10.00%
SmartHeat (China) Investment Co., Ltd. [Member]
18. STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items]
Capital	40	$70
Foreign Invested Enterprise [Member]
18. STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items]
Statutory Reserves, Description	An FIE is required to allocate at least 10% of its annual after-tax profit to the surplus reserve until such reserve has reached 50% of its respective registered capital based on the FIE’s PRC statutory accounts.
Domestic Enterprise [Member]
18. STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) [Line Items]
Statutory Reserves, Description	Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide surplus reserve at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts.

19_STOCKHOLDERS_EQUITY_Details

19. STOCKHOLDERS' EQUITY (Details)

0 Months Ended

12 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

0 Months Ended

1 Months Ended

0 Months Ended

Mar. 27, 2014

Dec. 31, 2014

Dec. 31, 2013

Mar. 27, 2014

Jun. 29, 2012

Jun. 30, 2011

Feb. 01, 2010

Mar. 27, 2014

Mar. 27, 2014

Mar. 27, 2014

Mar. 27, 2014

Mar. 27, 2014

Mar. 27, 2014

Mar. 27, 2014

Dec. 31, 2014

Dec. 31, 2013

Nov. 28, 2014

Nov. 28, 2014

Dec. 30, 2013

Dec. 30, 2013

Oct. 30, 2013

Dec. 30, 2013

Jul. 22, 2014

Jul. 14, 2014

Mar. 27, 2014

Sep. 17, 2013

Jun. 25, 2013

Dec. 21, 2012

Jul. 27, 2012

Sep. 30, 2013

Jul. 22, 2014

Mar. 27, 2014

Sep. 17, 2013

Aug. 23, 2013

Aug. 23, 2013

USD ($)

USD ($)

USD ($)

USD ($)

Officer [Member]

Officer [Member]

Officer [Member]

President [Member]

President [Member]

Secretary [Member]

Secretary [Member]

Executive Officer [Member]

Director [Member]

Director [Member]

Employee Stock Option [Member]

Employee Stock Option [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Revolving Credit Facility [Member]

Stock Issued for Notes Payable [Member]

Stock Issued for Notes Payable [Member]

Employee Stock Option [Member]

Employee Stock Option [Member]

Employee Stock Option [Member]

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

USD ($)

CNY

USD ($)

CNY

CNY

19. STOCKHOLDERS' EQUITY (Details) [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

0

0

5,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercise Price of Options

$118.50

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

5 years

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

2 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares

2,500

2,500

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate

74.00%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate

2.76%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate

0.00%

Share-based Compensation by Share-based Payment Award, Options, Grants in Period, Fair Value

$367,107

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period

0

0

0

0

Allocated Share-based Compensation Expense

0

0

Other Significant Noncash Transaction, Value of Consideration Given

100,000

Stock Issued During Period, Shares, Other

200,000

200,000

Share Price

$0.30

$0.60

Gains (Losses) on Restructuring of Debt

130,000

0

60,000

70,000

-20,000

Line of Credit Facility, Interest Rate During Period

10.00%

10.00%

Stock Issued During Period, Shares, Restricted Stock Award, Gross

200,000

100,000

100,000

1,300,000

100,000

Stock Issued During Period, Value, Restricted Stock Award, Gross

40,000

30,000

60,000

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

40.00%

Equity Method Investment, Net Sales Proceeds

1,390,000

8,500,000

820,000

5,000,000

5,000,000

Stock Issued During Period, Shares, Share-based Compensation, Gross

100,000

50,000

50,000

50,000

Shares Issued, Price Per Share

$0.15

$0.15

$0.15

$0.15

$0.50

$0.50

Stock Issued During Period, Value, Share-based Compensation, Gross

37,500

Line of Credit Facility, Expiration Date

3-Jan-15

Line of Credit Facility, Commitment Fee Percentage

4.00%

4.00%

Line of Credit Facility, Commitment Fee Amount

2,500,000

Stock Issued During Period, Value, Other

$70,000

$60,000

$30,000

Debt Instrument, Fee

extension fee of 4% of the Maximum Line under the Credit Agreement

extension fee of 4% of the credit line amount of $2.5 million

extension fee of 4% of the Committed Amount

19_STOCKHOLDERS_EQUITY_Details1

19. STOCKHOLDERS' EQUITY (Details) - Schedule of Stock Option Activity (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule of Stock Option Activity [Abstract]
Number of Shares, Options Outstanding	2,500	2,500	3,500
Average Exercise Price Per Share, Options Outstanding	$118.50	$118.50	$97.80
Weighted Average Remaining Contractual Term, Options Outstanding	29 days	1 year 124 days	1 year 237 days
Number of Shares, Options Exercisable	2,500	2,500	3,500
Average Exercise Price Per Share, Options Exercisable	$118.50	$118.50	$97.80
Weighted Average Remaining Contractual Term, Options Exercisable	29 days	1 year 124 days	1 year 237 days
Number of Shares, Options Granted	0	0
Average Exercise Price Per Share, Options Granted	$0	$0
Number of Shares, Options Exercised	0	0
Average Exercise Price Per Share, Options Exercised	$0	$0
Number of Shares, Options Forfeited	0	1,000
Average Exercise Price Per Share, Options Forfeited	$0	$46

20_OTHER_INCOME_NET_Details

20. OTHER INCOME, NET (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
20. OTHER INCOME, NET (Details) [Line Items]
Other Nonoperating Income (Expense)	$952,470	$1,314,945
Other Nonoperating Income (Expense) [Member] | Raw Materials [Member]
20. OTHER INCOME, NET (Details) [Line Items]
Other Nonoperating Income (Expense)	460,043	810,653
Other Nonoperating Income (Expense) [Member] | Government Subsidy [Member]
20. OTHER INCOME, NET (Details) [Line Items]
Other Nonoperating Income (Expense)	174,364	457,717
Other Nonoperating Income (Expense) [Member] | Other Non-Operating Income [Member]
20. OTHER INCOME, NET (Details) [Line Items]
Other Nonoperating Income (Expense)	586,317	245,119
Other Nonoperating Income (Expense) [Member]
20. OTHER INCOME, NET (Details) [Line Items]
Other Nonoperating Income (Expense)	$268,254	$198,544

21_COMMITMENTS_Details

21. COMMITMENTS (Details) (USD $)	12 Months Ended		0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	9-May-13	Sep. 18, 2013	Oct. 12, 2012	Apr. 23, 2012	Apr. 15, 2010	Mar. 27, 2014	Apr. 07, 2010
21. COMMITMENTS (Details) [Line Items]
Description of Lessee Leasing Arrangements, Operating Leases	The Company leased offices for its sales representative in several different cities under various one-year, non-cancellable and renewable operating lease agreements.
Operating Leases, Rent Expense	$465,800	$425,400
Shares Issued, Price Per Share (in Dollars per share)								$0.15
Nimbus Resructuring Manager LLC [Member] | Monthly Payment [Member]
21. COMMITMENTS (Details) [Line Items]
Contractual Obligation						70,000
Nimbus Resructuring Manager LLC [Member] | Final Payment Due Upon Completion [Member]
21. COMMITMENTS (Details) [Line Items]
Contractual Obligation						600,000
Nimbus Resructuring Manager LLC [Member] | Monthly Service Fee [Member]
21. COMMITMENTS (Details) [Line Items]
Contractual Obligation			30,000
Contractual Obligation, Payment Term			A monthly service fee of $30,000 is to be paid on the first day of each month for 10 months through November 2013.
Nimbus Resructuring Manager LLC [Member] | Termination Fee [Member]
21. COMMITMENTS (Details) [Line Items]
Contractual Obligation				300,000
Contractual Obligation, Payment Term				The termination fee of $300,000 will be paid in 4 equal monthly payments of $75,000 each commencing in December 2013 and running through March 2014 or on the earlier of the expiration of the Stated Term or the earlier termination by the Company.
Nimbus Resructuring Manager LLC [Member]
21. COMMITMENTS (Details) [Line Items]
Payments for Deposits						200,000
Payments for Advance to Affiliate						50,000
Other Commitments, Description			extended for an additional 12 monthly periods from original expiration date of January 23, 2013 to January 22, 2014	On September 18, 2013, the Company entered Amendment #1 to the Restated Restructuring Agreement with Nimbus, pursuant to the Amendment, the service term was revised after the initial expiration date of January 23, 2013, for an extension of 10 additional month until November 2013, and thereafter extended for 4 additional months until March 2014.		Additionally, the Company paid $70,000 per month for 6 months. An additional $600,000 is to be paid upon the completion of the Company’s restructuring to the satisfaction of the Board.
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in Shares)						300,000
Proceeds from Issuance or Sale of Equity						15,000
Shares Issued, Price Per Share (in Dollars per share)					$0.05	$0.05
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award						Company has the right to repurchase such shares for $0.20 per share until January 31, 2013, $0.40 per share until September 30, 2013, $0.60 per share until June 30, 2014, $0.80 per share until March 31, 2015 and $1.00 per share until January 31, 2016
Stock Issued During Period, Shares, Other (in Shares)					300,000
SmartHeat (China) Investment Co., Ltd. [Member]
21. COMMITMENTS (Details) [Line Items]
Capital	40,000,000								70,000,000
Payments to Acquire Equity Method Investments							30,000,000
Contractual Obligation	$40,000,000

22_CONTINGENCIES_Details

22. CONTINGENCIES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Loss Contingency [Abstract]
Payments for Legal Settlements	$120,000

23_CONDENSED_FINANCIAL_INFORMA2

23. CONDENSED FINANCIAL INFORMATION OF US PARENT (Details) - CONDENSED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and equivalents	$13,682,624	$13,602,399	$18,336,163
Other current assets	676,157	680,588
TOTAL ASSETS	103,198,501	114,814,802
LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued liabilities and other payables	19,319,461	17,215,006
STOCKHOLDERS' EQUITY:
Common stock	6,783	6,133
Statutory reserve	5,389,057	5,389,057
Other comprehensive income	8,549,568	8,991,269
Accumulated deficit	-76,198,760	-66,630,772
Total stockholders' equity	25,247,104	35,149,293	108,511,454
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	103,198,501	114,814,802
Parent Company [Member]
ASSETS
Cash and equivalents	68,103	251,461	82,479
Investment in subsidiaries	26,229,140	34,630,504
Other current assets	3,852,973	3,830,224
TOTAL ASSETS	30,150,216	38,712,189
LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued liabilities and other payables	6,292,228	3,562,896
STOCKHOLDERS' EQUITY:
Common stock	6,783	6,133
Additional paid-in capital	86,111,340	87,393,606
Statutory reserve	5,389,057	5,389,056
Other comprehensive income	8,549,568	8,991,270
Accumulated deficit	-76,198,760	-66,630,772
Total stockholders' equity	23,857,988	35,149,293
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$30,150,216	$38,712,189

23_CONDENSED_FINANCIAL_INFORMA3

23. CONDENSED FINANCIAL INFORMATION OF US PARENT (Details) - CONDENSED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Operating expenses
General and administrative expenses	$7,767,391	$10,400,323
Impairment of long-term investment	0	908,084
Loss from operations	-12,002,561	-54,242,271
Non-operating expenses	-834,536	-1,289,970
Total non-operating loss	952,470	1,314,945
Loss before income tax	-12,837,097	-55,532,241
Income tax	-48,717	50,657
Net loss	-9,567,988	-49,669,341
Parent Company [Member]
Operating expenses
General and administrative expenses	1,375,270	1,531,085
Impairment of long-term investment	0	908,084
Loss from operations	-1,375,270	-2,439,169
Non-operating expenses	-233,056	-1,006,242
Equity loss in subsidiaries	-7,959,661	-46,223,930
Total non-operating loss	-8,192,717	-47,230,172
Loss before income tax	-9,567,987	-49,669,341
Income tax	0	0
Net loss	($9,567,987)	($49,669,341)

23_CONDENSED_FINANCIAL_INFORMA4

23. CONDENSED FINANCIAL INFORMATION OF US PARENT (Details) - CONDENSED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($9,567,988)	($49,669,341)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	37,500	0
Loss on settlement of debt	0	20,000
Amortization of loan origination and extension fee	0	30,000
Impairment of long-term investment	0	908,084
Net cash used in operating activities	-3,804,267	-4,545,268
CASH FLOWS FROM FINANCING ACTIVITIES:
Credit line payable	1,450,000	1,312,841
Net cash provided by financing activities	68,663	949,832
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS	80,225	-4,733,764
CASH AND EQUIVALENTS, BEGINNING OF YEAR	13,602,399	18,336,163
CASH AND EQUIVALENTS, END OF YEAR	13,682,624	13,602,399
Parent Company [Member]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	-9,567,987	-49,669,341
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	37,500	0
Shares issued for loan consenting fee	0	30,000
Loss on settlement of debt	0	20,000
Gain on issuance of stock	-130,000	0
Amortization of loan origination and extension fee	148,566	102,477
Amortization of loan amendment fee paid by shares	28,685	31,315
Equity loss in subsidiaries	7,959,661	46,223,930
Loss on sale of equity interest	0	842,491
Impairment of long-term investment	0	908,084
Increase in current liabilities	1,340,217	367,185
Net cash used in operating activities	-183,358	-1,143,859
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in subsidiaries	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Credit line payable	0	1,312,841
Net cash provided by financing activities	0	1,312,841
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS	-183,358	168,982
CASH AND EQUIVALENTS, BEGINNING OF YEAR	251,461	82,479
CASH AND EQUIVALENTS, END OF YEAR	$68,103	$251,461

24_UNAUDITED_PRO_FORMA_CONSOLI2

24. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Details)

Mar. 27, 2014

Nov. 28, 2014

Nov. 28, 2014

Dec. 30, 2013

Dec. 30, 2013

Oct. 30, 2013

Nov. 28, 2014

Dec. 30, 2013

Dec. 30, 2013

Dec. 31, 2014

Dec. 29, 2013

Jan. 07, 2011

Dec. 30, 2013

Dec. 31, 2014

Dec. 29, 2013

Apr. 30, 2012

In Millions, unless otherwise specified

Pro Forma [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Hohhot Ruicheng Technology Co., Ltd. [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

Urumchi XinRui Technology LLC [Member]

PHE Segment Subsidiaries, "Target Companies" [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

Equity Interest Purchase Agreement [Member]

USD ($)

CNY

USD ($)

CNY

CNY

24. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Details) [Line Items]

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

100.00%

40.00%

40.00%

40.00%

Equity Method Investment, Net Sales Proceeds (in Yuan Renminbi)

$1.39

8.5

$0.82

5

5

Noncontrolling Interest, Ownership Percentage by Parent

30.60%

51.00%

27.60%

46.00%

Equity Method Investment, Ownership Percentage

60.00%

51.00%

51.00%

46.00%

Equity Method Investment, Additional Information

The transaction will result in an expected loss of $35.27 million from the 100% equity interest sale of the entities to be sold consisting of a $44.06 million loss on sale resulting from the difference of the total selling price and the net assets of sold entities, netted off with the $8.79 million the forgiveness of all net indebtedness owing to the sold entities by SmartHeat and each of its other subsidiaries.

The transaction will result in an expected loss of $35.27 million from the 100% equity interest sale of the entities to be sold consisting of a $44.06 million loss on sale resulting from the difference of the total selling price and the net assets of sold entities, netted off with the $8.79 million the forgiveness of all net indebtedness owing to the sold entities by SmartHeat and each of its other subsidiaries.

Equity Investment, Estimated Gain (Loss) on Sale of Investment (in Dollars)

($35.27)

24_UNAUDITED_PRO_FORMA_CONSOLI3

24. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Details) - Business Deconsolidation, Pro Forma Information (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
CURRENT ASSETS
Cash & equivalents	$13,682,624		$13,602,399		$18,336,163
Restricted cash	9,913,104		2,458,758
Accounts receivable, net	16,052,184		12,167,565
Retentions receivable, net	1,309,057		4,202,109
Advances to suppliers, net	2,417,949		4,280,593
Other receivables (net), prepayments and deposits	5,068,411		4,948,761
Inventories, net	49,349,195		56,324,363
Taxes receivable	325,252		989,635
Notes receivable - bank acceptances	2,271,131		2,759,251
Total current assets	100,388,907		101,733,434
NONCURRENT ASSETS
Long term investment	29,540		26,721
Restricted cash	123,002		135,926
Construction in progress	84,533		0
Property and equipment, net	1,995,520		1,638,120
Intangible assets, net	576,999		11,042,719
Total noncurrent assets	2,809,594		13,081,368
TOTAL ASSETS	103,198,501		114,814,802
CURRENT LIABILITIES
Accounts payable	7,384,756		6,683,860
Advance from customers	2,714,603		2,630,061
Taxes payable	196,246		197,078
Accrued liabilities and other payables	19,319,461		17,215,006
Loans payable	25,111,702		24,462,299
Total current liabilities	56,128,298		53,778,329
LONG-TERM LOAN	0		2,132,231
DEFERRED TAX LIABILITY	66,024		17,177
STOCKHOLDERS' EQUITY
Common stock	6,783		6,133
Statutory reserve	5,389,057		5,389,057
Accumulated other comprehensive income	8,549,568		8,991,269
Accumulated deficit	-76,198,760		-66,630,772
Total Company stockholders' equity	25,247,104		35,149,293		108,511,454
NONCONTROLLING INTEREST	19,007,740		22,341,394
TOTAL EQUITY	44,254,844		57,490,687
TOTAL LIABILITIES AND EQUITY	103,198,501		114,814,802
Net sales	34,075,959		44,709,526
Cost of sales	32,941,074		40,401,380
Gross income	1,134,885		4,308,146
Operating expenses
Selling	6,563,729		6,864,060
General and administrative	7,767,391		10,400,323
Impairment of long term investment	0		908,084
Provision for bad debts	-4,663,703		24,980,195
Provision for advance to supplier	3,470,029		1,666,906
Total operating expenses	13,137,446		58,550,417
Loss from operations	-12,002,561		-54,242,271
Non-operating income (expenses)
Investment income	2,808		153,237
Interest income	161,123		159,972
Interest expense	-1,792,765		-1,816,457
Financial expense	-284,387		-249,681
Gain on issuance of stock	130,000		0
Foreign exchange transaction loss	-3,785		-9,495
Other income, net	952,470		1,314,945
Total non-operating expenses, net	-834,536		-1,289,970
Loss before income tax	-12,837,097		-55,532,241
Income tax (benefit) expense	48,717		-50,657
Net loss including noncontrolling interest	-12,885,814		-55,481,584
Less: loss attributable to noncontrolling interest	-3,317,826		-5,812,243
Net loss to SmartHeat Inc.	-9,567,988		-49,669,341
Basic and diluted weighted average shares outstanding (in Shares)	6,564,084		5,870,111
Basic and diluted net loss per share (in Dollars per share)	($1.46)		($8.46)
PHE Segment Subsidiaries, "Target Companies" [Member] | Scenario, Actual [Member]
CURRENT ASSETS
Cash & equivalents	9,490,641
Restricted cash	9,847,182
Accounts receivable, net	18,437,984
Retentions receivable, net	1,206,786
Advances to suppliers, net	3,012,776
Other receivables (net), prepayments and deposits	26,902,540
Inventories, net	42,233,818
Taxes receivable	303,108
Notes receivable - bank acceptances	2,271,131
Total current assets	113,705,966
NONCURRENT ASSETS
Long term investment	0
Restricted cash	123,002
Construction in progress	84,533
Property and equipment, net	757,330
Intangible assets, net	0
Total noncurrent assets	964,865
TOTAL ASSETS	114,670,831
CURRENT LIABILITIES
Accounts payable	8,106,600
Advance from customers	1,992,933
Taxes payable	183,185
Accrued liabilities and other payables	31,649,373
Notes payable - bank acceptances	1,401,530
Loans payable	25,111,702
Total current liabilities	68,445,323
CREDIT LINE PAYABLE	0
LONG-TERM LOAN	0
DEFERRED TAX LIABILITY	0
STOCKHOLDERS' EQUITY
Common stock	0
Paid-in capital	59,341,363
Statutory reserve	4,608,375
Accumulated other comprehensive income	7,065,900
Accumulated deficit	-43,579,536
Total Company stockholders' equity	27,436,102
NONCONTROLLING INTEREST	18,789,406
TOTAL EQUITY	46,225,508
TOTAL LIABILITIES AND EQUITY	114,670,831
Net sales	28,480,330		38,915,416
Cost of sales	28,657,177		35,659,348
Gross income	-176,847		3,256,068
Operating expenses
Selling	4,748,596		5,084,636
General and administrative	3,221,930		5,582,360
Long-lived assets impairment			13,730,849
Impairment of long term investment			0
Provision for bad debts	-2,241,241		24,638,062
Provision for advance to supplier	1,143,178		-682,973
Total operating expenses	6,872,463		48,352,934
Loss from operations	-7,049,310		-45,096,866
Non-operating income (expenses)
Investment income	0		0
Interest income	142,154		79,704
Interest expense	-1,578,275		-1,758,210
Financial expense	-132,823		-73,567
Gain on issuance of stock	0
Foreign exchange transaction loss	-3,785		-9,478
Loss on sale of equity interest			0
Other income, net	401,389		470,730
Total non-operating expenses, net	-1,171,340		-1,290,821
Loss before income tax	-8,220,650		-46,387,687
Income tax (benefit) expense	0		26,725
Net loss including noncontrolling interest	-8,220,650		-46,414,412
Less: loss attributable to noncontrolling interest	-3,288,260		-5,798,050
Net loss to SmartHeat Inc.	-4,932,390		-40,616,362
Basic and diluted weighted average shares outstanding (in Shares)	0		0
Basic and diluted net loss per share (in Dollars per share)	$0		$0
Scenario, Actual [Member]
CURRENT ASSETS
Cash & equivalents	13,682,624
Restricted cash	9,913,104
Accounts receivable, net	16,052,184
Retentions receivable, net	1,309,057
Advances to suppliers, net	2,417,949
Other receivables (net), prepayments and deposits	5,068,411
Inventories, net	49,349,195
Taxes receivable	325,252
Notes receivable - bank acceptances	2,271,131
Total current assets	100,388,907
NONCURRENT ASSETS
Long term investment	29,540
Restricted cash	123,002
Construction in progress	84,533
Property and equipment, net	1,995,520
Intangible assets, net	576,999
Total noncurrent assets	2,809,594
TOTAL ASSETS	103,198,501
CURRENT LIABILITIES
Accounts payable	7,384,756
Advance from customers	2,714,603
Taxes payable	196,246
Accrued liabilities and other payables	19,319,461
Notes payable - bank acceptances	1,401,530
Loans payable	25,111,702
Total current liabilities	56,128,298
CREDIT LINE PAYABLE	2,749,335
LONG-TERM LOAN	0
DEFERRED TAX LIABILITY	66,024
STOCKHOLDERS' EQUITY
Common stock	6,783
Paid-in capital	87,500,456
Statutory reserve	5,389,057
Accumulated other comprehensive income	8,549,568
Accumulated deficit	-76,198,760
Total Company stockholders' equity	25,247,104
NONCONTROLLING INTEREST	19,007,740
TOTAL EQUITY	44,254,844
TOTAL LIABILITIES AND EQUITY	103,198,501
Net sales	34,075,959		44,709,526
Cost of sales	32,941,074		40,401,380
Gross income	1,134,885		4,308,146
Operating expenses
Selling	6,563,729		6,864,060
General and administrative	7,767,391		10,400,323
Long-lived assets impairment			13,730,849
Impairment of long term investment			908,084
Provision for bad debts	-4,663,703		24,980,195
Provision for advance to supplier	3,470,029		1,666,906
Total operating expenses	13,137,446		58,550,417
Loss from operations	-12,002,561		-54,242,271
Non-operating income (expenses)
Investment income	2,808		153,237
Interest income	161,123		159,972
Interest expense	-1,792,765		-1,816,457
Financial expense	-284,387		-249,681
Gain on issuance of stock	130,000
Foreign exchange transaction loss	-3,785		-9,495
Loss on sale of equity interest			-842,491
Other income, net	952,470		1,314,945
Total non-operating expenses, net	-834,536		-1,289,970
Loss before income tax	-12,837,097		-55,532,241
Income tax (benefit) expense	48,717		-50,657
Net loss including noncontrolling interest	-12,885,814		-55,481,584
Less: loss attributable to noncontrolling interest	-3,317,826		-5,812,243
Net loss to SmartHeat Inc.	-9,567,988		-49,669,341
Basic and diluted weighted average shares outstanding (in Shares)	6,564,084		5,870,111
Basic and diluted net loss per share (in Dollars per share)	($1.46)		($8.46)
Pro Forma Adjustments [Member]
CURRENT ASSETS
Cash & equivalents	0
Restricted cash	0
Accounts receivable, net	3,829,234	[1],[2]
Retentions receivable, net	0
Advances to suppliers, net	-609,745	[2]
Other receivables (net), prepayments and deposits	22,677,382	[1],[2]
Inventories, net	0
Taxes receivable	0
Notes receivable - bank acceptances	0
Total current assets	25,896,871
NONCURRENT ASSETS
Long term investment	-29,540	[2]
Restricted cash	0
Construction in progress	0
Property and equipment, net	0
Intangible assets, net	0
Total noncurrent assets	-29,540
TOTAL ASSETS	25,867,331
CURRENT LIABILITIES
Accounts payable	1,467,290	[1],[2]
Advance from customers	-609,745
Taxes payable	0
Accrued liabilities and other payables	14,860,195	[1],[2]
Notes payable - bank acceptances	0
Loans payable	0
Total current liabilities	15,717,740
CREDIT LINE PAYABLE	0
LONG-TERM LOAN	0
DEFERRED TAX LIABILITY	0
STOCKHOLDERS' EQUITY
Common stock	0
Paid-in capital	77,326,388	[2]
Statutory reserve	4,608,375	[2]
Accumulated other comprehensive income	7,065,900	[2]
Accumulated deficit	-78,851,072	[1],[2]
Total Company stockholders' equity	10,149,591
NONCONTROLLING INTEREST	0
TOTAL EQUITY	10,149,591
TOTAL LIABILITIES AND EQUITY	25,867,331
Net sales	1,489,420	[3]	1,974,163	[3]
Cost of sales	1,489,420	[3]	1,974,163	[3]
Gross income	0		0
Operating expenses
Selling	0		0
General and administrative	0		0
Long-lived assets impairment			0
Impairment of long term investment			0
Provision for bad debts	0		0
Provision for advance to supplier	0		0
Total operating expenses	0		0
Loss from operations	0		0
Non-operating income (expenses)
Investment income	0		0
Interest income	0		0
Interest expense	0		0
Financial expense	0		0
Gain on issuance of stock	0
Foreign exchange transaction loss	0		0
Loss on sale of equity interest			0
Other income, net	0		0
Total non-operating expenses, net	0		0
Loss before income tax	0		0
Income tax (benefit) expense	0		0
Net loss including noncontrolling interest	0		0
Less: loss attributable to noncontrolling interest	0		0
Net loss to SmartHeat Inc.	0		0
Basic and diluted weighted average shares outstanding (in Shares)	0		0
Basic and diluted net loss per share (in Dollars per share)	$0		$0
Pro Forma [Member]
CURRENT ASSETS
Cash & equivalents	4,191,983
Restricted cash	65,922
Accounts receivable, net	1,443,434
Retentions receivable, net	102,271
Advances to suppliers, net	-1,204,572
Other receivables (net), prepayments and deposits	843,253
Inventories, net	7,115,377
Taxes receivable	22,144
Notes receivable - bank acceptances	0
Total current assets	12,579,812
NONCURRENT ASSETS
Long term investment	0
Restricted cash	0
Construction in progress	0
Property and equipment, net	1,238,190
Intangible assets, net	576,999
Total noncurrent assets	1,815,189
TOTAL ASSETS	14,395,001
CURRENT LIABILITIES
Accounts payable	745,446
Advance from customers	111,925
Taxes payable	13,061
Accrued liabilities and other payables	2,530,283
Notes payable - bank acceptances	0
Loans payable	0
Total current liabilities	3,400,715
CREDIT LINE PAYABLE	2,749,335
LONG-TERM LOAN	0
DEFERRED TAX LIABILITY	66,024
STOCKHOLDERS' EQUITY
Common stock	6,783
Paid-in capital	105,485,481
Statutory reserve	5,389,057
Accumulated other comprehensive income	8,549,568
Accumulated deficit	-111,470,296
Total Company stockholders' equity	7,960,593
NONCONTROLLING INTEREST	218,334
TOTAL EQUITY	8,178,927
TOTAL LIABILITIES AND EQUITY	14,395,001
Net sales	7,085,049		7,768,273
Cost of sales	5,773,317		6,716,195
Gross income	1,311,732		1,052,078
Operating expenses
Selling	1,815,133		1,779,424
General and administrative	4,545,461		4,817,963
Long-lived assets impairment			0
Impairment of long term investment			908,084
Provision for bad debts	-2,422,462		342,133
Provision for advance to supplier	2,326,851		2,349,879
Total operating expenses	6,264,983		10,197,483
Loss from operations	-4,953,251		-9,145,405
Non-operating income (expenses)
Investment income	2,808		153,237
Interest income	18,969		80,268
Interest expense	-214,490		-58,247
Financial expense	-151,564		-176,114
Gain on issuance of stock	130,000
Foreign exchange transaction loss	0		-17
Loss on sale of equity interest			-842,491
Other income, net	551,081		844,215
Total non-operating expenses, net	336,804		851
Loss before income tax	-4,616,447		-9,144,554
Income tax (benefit) expense	48,717		-77,382
Net loss including noncontrolling interest	-4,665,164		-9,067,172
Less: loss attributable to noncontrolling interest	-29,566		-14,193
Net loss to SmartHeat Inc.	($4,635,598)		($9,052,979)
Basic and diluted weighted average shares outstanding (in Shares)	6,564,084		5,870,111
Basic and diluted net loss per share (in Dollars per share)	($0.71)		($1.54)
[1]	To reflect the effect of forgiveness of all net indebtness owing to Target Companies by SmartHeat and each of its other subsidiaries.
[2]	To reflect the sale of 100% equity interest in Target companies, and loss on the sale.
[3]	To include the inter-company sales between disposed entities and other subsidiaries of SmartHeat Inc.