EX-99.1
3
v151028_ex99-1.htm
SmartHeat
Inc. Acquires the Assets of One of the Largest PHE Energy Savings Equipment
Manufacturers in China, Anticipates Increase in Earnings per Share by
Approximately $0.14 Annually
NEW YORK,
May 29, 2009 /PRNewswire-Asia/ -- SmartHeat Inc. (Nasdaq:
HEAT
-
News;
website:
www.smartheatinc.com
), a market
leader in China's clean technology, energy savings industry today announced that
it has acquired the assets of one of the largest manufacturers of plate heat
exchangers in China located in the city of Siping ("Siping"), a short distance
from SmartHeat's current production facilities.
SmartHeat
anticipates that the newly acquired factory will be immediately accretive to
2009 earnings, adding approximately $1.8 million in 2009 net income, an increase
of SmartHeat's earnings per share of approximately $0.07 per share for the
remainder of 2009. SmartHeat intends to further improve production efficiencies
at this site.
This
acquisition is expected to be funded with SmartHeat's existing bank credit
facilities as well as internal cash flow. The acquired tangible assets and
intellectual properties include the entire manufacturing facilities and existing
product sales agreements with major oil and chemical companies in China's
petrochemical industries.
Siping is
a leading manufacturer and marketer of heat exchangers and pressure vessels in
China. Founded in 2004, Siping has successfully established a well recognized
brand name in China's petrochemical industries.
James Jun
Wang, CEO of SmartHeat, commented: "As we stated in our first quarter financial
reporting, SmartHeat intends to expand our business through both organic growth
and strategic acquisitions. Today's successful acquisition of a leading upstream
product manufacturer reflects management execution of our growth
strategies".
Mr. Wang
continued: "This strategic acquisition marks SmartHeat's expansion and market
entry into China's vast power generating and oil & gas industries. We are
particularly impressed with Siping's asset quality as well as its broad customer
base, many of which we can immediately benefit from. China has a very large
petrochemical industry, an important market segment from which SmartHeat intends
to derive significant earnings. This synergistic acquisition will further reduce
SmartHeat's overall manufacturing costs, increase gross profit margins and
significantly broaden our customer base beyond our current reach. We anticipate
this highly profitable acquisition to contribute to our 2009 earnings and
beyond."
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, custom plate heat exchanger units
and heat meters. 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.
Contact
Information:
Ms. Jane
Ai, Corporate Secretary
SmartHeat
Inc.
Tel:
011-86-13309831658
Email:
info@SmartHeatinc.com

EX - 99 . 1 3 v151028 _ ex99 - 1 . htm SmartHeat Inc . Acquires the Assets of One of the Largest PHE Energy Savings Equipment Manufacturers in China , Anticipates Increase in Earnings per Share by Approximately $ 0.14 Annually NEW YORK , May 29 , 2009 / PRNewswire - Asia / -- SmartHeat Inc . ( Nasdaq : HEAT - News ; website : www.smartheatinc.com ) , a market leader in China 's clean technology , energy savings industry today announced that it has acquired the assets of one of the largest manufacturers of plate heat exchangers in China located in the city of Siping ( " Siping " ) , a short distance from SmartHeat 's current production facilities . SmartHeat anticipates that the newly acquired factory will be immediately accretive to 2009 earnings , adding approximately $ 1.8 million in 2009 net income , an increase of SmartHeat 's earnings per share of approximately $ 0.07 per share for the remainder of 2009 . SmartHeat intends to further improve production efficiencies at this site . This acquisition is expected to be funded with SmartHeat 's existing bank credit facilities as well as internal cash flow . The acquired tangible assets and intellectual properties include the entire manufacturing facilities and existing product sales agreements with major oil and chemical companies in China 's petrochemical industries . Siping is a leading manufacturer and marketer of heat exchangers and pressure vessels in China . Founded in 2004 , Siping has successfully established a well recognized brand name in China 's petrochemical industries . James Jun Wang , CEO of SmartHeat , commented : " As we stated in our first quarter financial reporting , SmartHeat intends to expand our business through both organic growth and strategic acquisitions . Today ' s successful acquisition of a leading upstream product manufacturer reflects management execution of our growth strategies " . Mr . Wang continued : " This strategic acquisition marks SmartHeat 's expansion and market entry into China 's vast power generating and oil & gas industries . We are particularly impressed with Siping 's asset quality as well as its broad customer base , many of which we can immediately benefit from . China has a very large petrochemical industry , an important market segment from which SmartHeat intends to derive significant earnings . This synergistic acquisition will further reduce SmartHeat 's overall manufacturing costs , increase gross profit margins and significantly broaden our customer base beyond our current reach . We anticipate this highly profitable acquisition to contribute to our 2009 earnings and beyond . " 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 , custom plate heat exchanger units and heat meters . 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 . Contact Information : Ms . Jane Ai , Corporate Secretary SmartHeat Inc . Tel : 011 - 86 - 13309831658 Email : info@SmartHeatinc.com