| SmartHeat Inc. (NASDAQ Global Market: HEAT) is a highly profitable US public company and a market leader in serving China's clean technology, energy savings industry. A "Green" Technology Company: China is a country that derives the majority of its heat energy through burning coal. Massive air pollution is created due to inefficient coal burning. As the developer of 6 key patents across our product lines, SmartHeat's plate heat exchanger (PHE) technology and products help reduce fossil fuel related costs and pollution by capturing and recycling waste heat thereby producing less CO2 emissions. More efficient energy use also leads to significant savings for end users as shown in the following illustration: | Heating Method | Coal Consumption (metricons) | Heat Produced (Kcal, million) | CO2 Emitted
(tons) | Costs in Coal, USD
(excluding water and other costs) | | WITH SMARTHEAT PRODUCTS:
District heating system connected to a co-generation power plant | 550 | 1,680-1,870 KCal | 1,944 | $46,750 | | WITHOUT SMARTHEAT PRODUCTS:
Small Boiler with traditional shell-and-tube
heat exchanger | 1,496 | 1,680-1,870
KCal | 5,293 | $127,160 | | Rapid Earnings Growth: SmartHeat reported US$0.18 per share in net income, an increase of 1700% in the quarter ended September 30, 2008. For the year 2008, we reported net income of $0.29 per share, an increase of 203% from 2007. This dramatic increase in earnings is a direct result of strong customer demand for our energy saving equipment in a favorable market environment. We anticipate continued rapid expansion in China's heat and energy savings industry, a market which is currently estimated at approximately $2.4 billion dollars annually with double digit annual growth. Direct Beneficiary of China's National Economic Stimulus Plan: Industry growth is fostered by numerous government initiatives. The Chinese government has begun to mandate efficient energy use to ensure sustainable development during the country's rapid economic growth. SmartHeat recently announced an initial order from a Chinese municipality which had received funding from China's central government under China's national economic stimulus plan. Strong Customer Base: SmartHeat provides energy efficient heat solutions to industrial, residential, and commercial markets. Notable customers include Motorola, Dalkia, Veolia, BeijingInternationalAirport, Sinopec, and ACIC Air and many others. Founders/Managers Have Vested Interest with Our Shareholders: SmartHeat is run by company founders / managers. Our senior executives are industry experts who are also our controlling shareholders. Our in-depth understanding of the markets which we serve ensures long term success for our company and for our shareholders. |