In 2008, SmartHeat has experienced a continued rapid growth in favorable market environment. The increased product sales were directly attributed to strong brand name, broader market acceptance of the company’s products and services, deeper market penetration and also economic expansion in China’s energy savings industry. The company’s advanced clean technology energy savings products drastically decrease heat energy waste, lower heat energy costs and decrease air pollution.
Record 2008 Revenue:
The increase in revenues was primarily due to the considerable increase in sales to the new and existing customers.
Record 2008 Earnings:
The increase in net income was primarily due to rapid growth in the revenues and reductions in costs from enhanced economies of scale and continuing efforts to increase the efficiency of operations.
Expects considerable sales growth in 2009 in a favorable market environment:
Additionally to expected new customer orders via organic growth, SmartHeat is a beneficiary of China’s favorable environmental policies. China has assigned important resources within its national economic stimulus plan to increase the government spending on environmental protection associated products and technology. The company stands to greatly benefit from these initiatives as company’s products directly address the efficient energy use and reduction in air pollution.
Management Comments: 2008 Financial Results and 2009 Market Guidance:
James Jun Wang, chief executive officer of SmartHeat, stated: “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.”
