SmartHeat Inc. Announces National High Tech Enterprise Status and 10% Reduction
in Corporate Income Taxes for 3 Years
Energy Saving Equipment Industry to Benefit from China's Newly Adopted $580 Billion Economic Stimulus Plan
Thursday December 11, 2008, 6:55 am EST
NEW YORK, Dec. 11 /PRNewswire-Asia/ -- SmartHeat Inc. (OTC Bulletin Board: SMHT.OB - News), a market leader in China's "green" technology, environmentally friendly energy savings industry, today announced that the Company has been granted 'National High Tech Enterprise' status by the Chinese government valid for 3 years. Through this national level high-tech certification, SmartHeat's technology and products are formally recognized as market leaders in China's energy savings industry. Moreover, as a result of this certification, SmartHeat automatically receives a 3-year, 10% corporate income tax reduction to 15% annually beginning in 2008. China's normal corporate income tax is a flat 25%.
Under the current National High Tech certification program, SmartHeat is able to apply for renewal every 3 years. If approved, the Company will continue to enjoy tax reductions among other benefits.
SmartHeat also believes it will benefit from various economic initiatives in a favorable market environment in 2009. Specifically, the Chinese government recently announced a $580 billion economic stimulus plan, which heavily focuses on infrastructure development. Under the plan approximately $58 billion has been earmarked to make ecological/environmental improvements by encouraging the broad adoption of energy savings equipment by both private and government entities.
James Wang, Chief Executive Officer of SmartHeat, commented: "Today's award reflects SmartHeat's leadership position with significant technological advantages in China's heat energy savings industry. We look forward to benefiting from the Chinese government's economic stimulus plan. SmartHeat is dedicated to reducing pollution through our advanced heat energy savings products."
About SmartHeat Inc.
SmartHeat Inc. is a US company with its primary operations in China. SmartHeat is a market leader in China's "green" technology heat energy saving industry. SmartHeat manufactures plate heat exchangers and compact plate heat exchanger units -- the technology that helps to capture and recycle waste heat thus reducing fossil fuel related costs and pollution. SmartHeat's products and technology have broad residential and industrial applications. China's heat transfer market is currently estimated at approximately $2.4 billion with double-digit annual growth according to China Heating Association.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. SmartHeat's actual results may differ from its projections. Further, preliminary results are subject to normal year-end adjustments. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect SmartHeat's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in SmartHeat's filings with the Securities and Exchange Commission.