SmartHeat Inc. Announces Record 2008 Annual Results - Revenues Up 146%, Net Income Up 203%, EPS of $0.29, Anticipates Rapid Earnings Growth in 2009 from Clean Technology Energy Savings Product Sales
- 2008 revenue of $32.7 million, up 146% compared to $13.3 million in 2007
- 2008 net income of $6.34 million, up 203% compared to $2.09 million in 2007
- 2008 earnings per share (EPS) of $0.29, up 164% compared to $0.11 in 2007
- Benefits from China¡¯s national economic stimulus plan towards clean technology energy savings industry
- Anticipates growth momentum to continue in 2009
NEW YORK, March 18 /PRNewswire-Asia/ -- SmartHeat Inc. (Nasdaq: HEAT - News; website: www.smartheatinc.com), a market leader in China's clean technology energy savings industry today announced audited 2008 financial results for the fiscal year ended December 31, 2008. SmartHeat is a US company with its primary operations in China. SmartHeat was the first China based company listed on NASDAQ in 2009.
In 2008, SmartHeat experienced continued rapid growth in a favorable market environment. Increased product sales were directly attributed to strong brand name, broader market acceptance of the Company¡¯s products and services, deeper market penetration as well as economic expansion in China¡¯s energy savings industry. SmartHeat¡¯s advanced clean technology energy savings products significantly reduce heat energy waste, lower heat energy costs and reduce air pollution.
Record 2008 Revenue
- Revenue of $32.7 million, up 146% compared to $13.3 million in 2007.
- Revenue increase was primarily due to the significant increase in sales to new and existing customers.
Record 2008 Earnings
- Net income of $6.34 million, up 203% compared to $2.09 million in 2007.
- Net income increase was primarily due to rapid growth in revenue and reductions in costs from improved economies of scale and continuing efforts to increase the efficiency of operations.
Anticipates Significant Sales Growth in 2009 in a Favorable Market Environment
In addition to anticipated new customer orders through organic growth, SmartHeat is a beneficiary of China¡¯s favorable environmental policies. China has allocated significant resources within its national economic stimulus plan to increase government spending on environmental protection related products and technology. SmartHeat stands to greatly benefit from these initiatives as the Company¡¯s products directly address efficient energy use and reduction in air pollution.
Management Comments: 2008 Financial Results and 2009 Market Guidance
James Jun Wang, CEO of SmartHeat, commented: ¡°Our audited 2008 financial results exceeded management¡¯s financial performance targets as we laid out in early 2008. SmartHeat expects to experience significant product sales in 2009 as China has made reduction in air pollution a national priority through stronger environmental protection measures, greater funding efforts and broad mandates for clean technology energy savings equipment use. Based on significantly increased product orders received in the first two months in 2009 compared to the same period in 2008, SmartHeat anticipates strong product sales and earnings growth in 2009 from all sectors of our customer base: government, industrial, commercial and consumers. We look forward to another year of record earnings in 2009.¡±
About SmartHeat Inc.
SmartHeat Inc. (www.smartheatinc.com) is a NASDAQ Global Market listed (Nasdaq: HEAT - News) US company with its primary operations in China. SmartHeat is a market leader in China's clean technology energy savings industry. SmartHeat manufactures standard plate heat exchangers and custom plate heat exchanger units. SmartHeat's products directly address air pollution problems in China where massive coal burning for cooking and heating purposes is the only source of economical heat energy in China. With broad product applications, SmartHeat's products significantly reduce heating costs, increase energy use and reduce air pollution. SmartHeat's customers include global Fortune 500 companies as well as municipalities and industrial/residential users. 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.