SmartHeat Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Revenues were $37.8 million in the third quarter of 2009 compared to $20.7 million in the same period last year, an 83% increase. The significant revenue increase was due significant sales growth across all product lines as a result of: Increasing traditional heat supply sales as a result growth in the China domestic infrastructure construction industry, accounting for $24.22 million or 43% of total sales, Adding new customers in the chemical, engineering, electric power, metal smelting industries, accounting for $19.37 million or 34% of total sales, rising heat meter sales, accounting for $7.8 million or approximately 14% of total sales. Operating income was $10.7 million in the third quarter of 2009 compared to $5.4 million in the same period last year, a 100% increase. Operating income increased as a result of continued economies of scale in production costs combined with the rapid growth in revenues and improved operating efficiency. Net income was $8.9 million in the third quarter of 2009 compared to $4.3 million in the same period last year, a 105% increase. Diluted earnings per share were $0.36 in the third quarter of 2009 compared to $0.18 in the same period last year. In addition to the increased revenue and income from operations, net income and EPS both benefited from a decrease in the tax rate during the quarter from 18.5% to 15.5%. For the quarter, the company reported income before income tax of $10.6 million compared to income before income tax of $15.3 million for the same period a year ago. For the nine months, the company reported net sales of $56.5 million and income from operations of $15.02 million and income before income tax of $14.8 million and net income of $12.5 million or $0.51 per diluted share compared to net sales of $29.3 million and income from operations of $6.70 million and income before income tax of $6.78 million and net income of $5.5 million or $0.26 per diluted share for the same period a year ago. For the period, the company reported net cash used in operating activities of $6.12 million and acquisition of property and equipment of $3.6 million compared to net cash used in operating activities of $1.4 million and acquisition of property and equipment of $0.28 million for the same period a year ago. The company re-affirms its full year 2009 earnings guidance of approximately $15.5 million in net income and approximately $80 million in revenues compared to $6.3 million in net income and $32.7 million in revenues in 2008.

SmartHeat Inc., Annual General Meeting, Nov 18, 2009, at 10:00 CCT-China Coast, USSR Zone 7. Location: Corporate offices, A-1, 10, Street 7, Shenyang Economic and Technological Development Zone, Shenyang,China. Agenda: To elect five directors to the board of directors of the company to serve until the next annual meeting of stockholders held to elect directors and until their successors are elected and qualified; to ratify the appointment of Goldman Parks Kurland Mohidin, LLP as the company's independent auditors; and to transact such other business as may properly come before the meeting or any adjournment or postponement thereof.

SmartHeat Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net income of $2,617,549 or $0.11 per diluted share on net sales of $12,498,395 compared to the net income of $732,412 or $0.03 per diluted share on the net sales of $5,558,232 for the same period in 2008. Income from operations was $3,055,210 against $870,100 in 2008. Income before income taxes was $3,080,380 against $893,483 in 2008. Significant revenue increase was due to continued market expansion in a favorable market environment. The significant increase in net income was primarily due to greater economies of scale in production costs combined with rapid growth in revenues and improved operating efficiency. For the six months, the company net income of $3,638,818 or $0.15 per diluted share on net sales of $18,705,898 compared to the net income of $1,203,675 or $0.06 per diluted share on the net sales of $8,637,283 for the same period in 2008. Income from operations was $4,331,331 against $1,354,629 in 2008. Income before income taxes was $4,319,250 against $1,469,703 in 2008. Net cash used in operating activities was $130,563 against cash from operations of $442,015 in 2008. The company spent on acquisition of property & equipment of $239,005 against $119,299 in 2008. The company raised third quarter of 2009 earnings guidance to approximately $35 million in revenues and approximately $6.8 million in net income. The company raised full year 2009 earnings guidance to approximately $15.5 million in net income on approximately $80 million in revenues.