x
|
Quarterly
Report Pursuant to Section 13 Or 15(d) of the Securities Exchange
Act of
1934 for the Quarterly Period Ended September 30,
2008
|
o
|
Transition
Report Pursuant to Section 13 or 15(d) of The Securities Exchange
Act of
1934 for the Transition Period from _______ to
_______
|
Delaware
|
02-0563302
|
(State
or Other Jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
|
Yes
x
|
|
|
No
o
|
Large
accelerated filer
|
o |
Accelerated
filer
|
o | |||
Non-accelerated
filer
|
o |
Smaller
reporting company
|
x | |||
|
Yes
o
|
|
|
No
x
|
Item
1. Financial Statements
|
4
|
Item
2. Management’s Discussion and Analysis of Financial
Condition
|
|
and
Results of Operations
|
24
|
Item
3. Quantitative and Qualitative Disclosures About Market
Risk
|
35
|
Item
4T. Controls and Procedures
|
35
|
PART
II - OTHER INFORMATION
|
|
Item
1. Legal Proceedings
|
35
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
35
|
Item
3. Defaults Upon Senior Securities
|
35
|
Item
4. Submission of Matters to a Vote of Security Holders
|
36
|
Item
5. Other Information
|
36
|
Item
6. Exhibits
|
36
|
Signatures
|
36
|
Page
|
||
Condensed
Consolidated Balance
Sheets as
of
September 30, 2008 and December 31, 2007
|
5
|
|
Condensed
Consolidated Statements
of Operations And Comprehensive Income
for
the three and nine months ended September 30, 2008 and
2007
|
6
|
|
Condensed
Consolidated Statements
of Cash Flows
for
the nine months ended September 30, 2008 and 2007
|
7
|
|
Condensed
Consolidated Statement
of
Stockholders’ Equity
for
the nine months ended September 30, 2008
|
8
|
|
Notes
to Condensed Consolidated Financial Statements
|
9
to 23
|
|
September
30, 2008
|
December
31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
2,904,609
|
$
|
2,240,901
|
|||
Accounts
receivable, trade
|
8,264,829
|
4,061,352
|
|||||
Inventories
|
2,175,182
|
1,448,386
|
|||||
Prepayments
and other receivables
|
953,803
|
605,989
|
|||||
Total
current assets
|
14,298,423
|
8,356,628
|
|||||
Plant
and equipment, net
|
3,150,192
|
2,514,795
|
|||||
TOTAL
ASSETS
|
$
|
17,448,615
|
$
|
10,871,423
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable, trade
|
$
|
2,221,138
|
$
|
1,259,081
|
|||
Customer
deposits
|
379,229
|
22,719
|
|||||
Value
added tax payable
|
76,293
|
70,604
|
|||||
Other
payables and accrued liabilities
|
166,487
|
355,390
|
|||||
Total
current liabilities
|
2,843,147
|
1,707,794
|
|||||
Stockholders’
equity:
|
|||||||
Common
stock, $0.001 par value; 50,000,000 shares authorized; 39,872,704
and
33,227,328 shares issued and outstanding as of September 30, 2008
and
December 31, 2007
|
39,872
|
33,227
|
|||||
Additional
paid-in capital
|
7,706,587
|
5,713,232
|
|||||
Statutory
reserve
|
517,774
|
517,774
|
|||||
Accumulated
other comprehensive income
|
1,323,135
|
557,503
|
|||||
Retained
earnings
|
5,018,100
|
2,341,893
|
|||||
Total
stockholders’ equity
|
14,605,468
|
9,163,629
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
17,448,615
|
$
|
10,871,423
|
Three
months ended September 30,
|
Nine
months ended September 30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
REVENUE,
NET
|
|||||||||||||
Product
|
$
|
3,557,112
|
$
|
1,383,252
|
$
|
8,836,478
|
$
|
5,328,588
|
|||||
Services
|
939,406
|
211,915
|
2,108,342
|
1,297,962
|
|||||||||
Projects
|
105,308
|
435,849
|
818,490
|
435,849
|
|||||||||
Total
operation revenues
|
4,601,826
|
2,031,016
|
11,763,310
|
7,062,399
|
|||||||||
COST
OF REVENUES:
|
|||||||||||||
Cost
of products
|
2,639,688
|
881,432
|
6,391,906
|
3,889,149
|
|||||||||
Cost
of services
|
711,781
|
93,152
|
1,517,172
|
387,886
|
|||||||||
Cost
of projects
|
14,115
|
330,878
|
609,811
|
330,878
|
|||||||||
Total
cost of revenues
|
3,365,584
|
1,305,462
|
8,518,889
|
4,607,913
|
|||||||||
GROSS
PROFIT
|
1,236,242
|
725,554
|
3,244,421
|
2,454,486
|
|||||||||
OPERATING
EXPENSES:
|
|||||||||||||
Sales
and marketing
|
16,318
|
9,568
|
78,598
|
24,277
|
|||||||||
Research
and development
|
10,377
|
14,014
|
95,963
|
343,920
|
|||||||||
Stock-based
compensation
|
-
|
-
|
-
|
510,000
|
|||||||||
General
and administrative
|
153,262
|
125,478
|
411,091
|
254,707
|
|||||||||
Total
operating expenses
|
179,957
|
149,060
|
585,652
|
1,132,904
|
|||||||||
INCOME
FROM OPERATIONS
|
1,056,285
|
576,494
|
2,658,769
|
1,321,582
|
|||||||||
Other
income:
|
|||||||||||||
Interest
income
|
8,902
|
4,085
|
17,716
|
4,427
|
|||||||||
Other
income
|
76
|
(2,662
|
)
|
194
|
8,857
|
||||||||
Total
other income
|
8,978
|
1,423
|
17,910
|
13,284
|
|||||||||
INCOME
BEFORE INCOME TAXES
|
1,065,263
|
577,917
|
2,676,679
|
1,334,866
|
|||||||||
Income
tax expense
|
(167
|
)
|
-
|
(472
|
)
|
-
|
|||||||
NET
INCOME
|
$
|
1,065,096
|
$
|
577,917
|
$
|
2,676,207
|
$
|
1,334,866
|
|||||
Other
comprehensive income:
|
|||||||||||||
-
Foreign currency translation gain
|
77,186
|
206,182
|
765,632
|
278,034
|
|||||||||
COMPREHENSIVE
INCOME
|
$
|
1,142,282
|
$
|
784,099
|
$
|
3,411,839
|
$
|
1,612,900
|
|||||
Net
income per share - basic and
diluted
|
$
|
0.03
|
$
|
0.02
|
$
|
0.07
|
$
|
0.04
|
|||||
Weighted
average shares
outstanding
- basic and diluted
|
33,227,328
|
32,320,661
|
36,377,728
|
31,699,180
|
Nine
months ended September 30,
|
|||||||
2008
|
2007
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
2,676,207
|
$
|
1,334,866
|
|||
Adjustments
to reconcile net income to net cash provided by
operating
activities
|
|||||||
Depreciation
|
238,702
|
190,161
|
|||||
Gain
on disposal of plant and equipment
|
(7,640
|
)
|
|||||
Stock-based
compensation
|
510,000
|
||||||
Change
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
(3,804,182
|
)
|
(1,004,058
|
)
|
|||
Inventories
|
(609,412
|
)
|
213,836
|
||||
Prepayments
and other receivables
|
(306,187
|
)
|
(1,878,371
|
)
|
|||
Accounts
payable
|
849,318
|
16,063
|
|||||
Customer
deposits
|
343,490
|
67,294
|
|||||
Income
tax payable
|
167
|
(392,183
|
)
|
||||
Value
added tax payables
|
8,618
|
5,123
|
|||||
Other
payables and accrued liabilities
|
(156,442
|
)
|
(23,392
|
)
|
|||
Net
cash provided by operating activities
|
(759,721
|
)
|
(968,301
|
)
|
|||
Cash
flows from investing activities:
|
|||||||
Purchase
of plant and equipment
|
(738,043
|
)
|
(166,605
|
)
|
|||
Proceeds
from disposal of plant and equipment
|
-
|
79,504
|
|||||
Net
cash (used in) provided by investing activities
|
(738,043
|
)
|
(87,101
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Proceeds
from private sale of common stock
|
2,000,000
|
870,000
|
|||||
Net
cash provided by financing activities
|
2,000,000
|
870,000
|
|||||
Effect
on exchange rate change on cash and cash equivalents
|
161,472
|
38,262
|
|||||
NET
CHANGE IN CASH AND CASH EQUIVALENTS
|
663,708
|
(147,140
|
)
|
||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
2,240,901
|
796,944
|
|||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
2,904,609
|
$
|
649,804
|
|||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|||||||
Cash
paid for income taxes
|
$
|
305
|
$
|
392,183
|
|||
Cash
paid for interest expenses
|
$
|
-
|
$
|
-
|
Common
stock
|
||||||||||||||||||||||
No.
of shares
|
|
Amount
|
|
Additional
paid-in
capital
|
|
Statutory
reserve
|
|
Accumulated
other
comprehensive
income
|
|
Retained
earnings
|
|
Total
stockholders’
equity
|
||||||||||
Balance
as of January 1, 2008
|
33,227,328
|
$
|
33,227
|
$
|
5,713,232
|
$
|
557,503
|
$
|
517,774
|
$
|
2,341,893
|
$
|
9,163,629
|
|||||||||
Private
sale of common stock
|
6,645,376
|
6,645
|
1,993,355
|
-
|
-
|
-
|
2,000,000
|
|||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
765,632
|
-
|
-
|
765,632
|
|||||||||||||||
Net
income for the period
|
-
|
-
|
-
|
-
|
-
|
2,676,207
|
2,676,207
|
|||||||||||||||
Balance
as of September 30, 2008
|
39,872,704
|
$
|
39,872
|
$
|
7,706,587
|
$
|
1,323,135
|
$
|
517,774
|
$
|
5,018,100
|
$
|
14,605,468
|
l |
Use
of estimates
|
l |
Basis
of consolidation
|
l |
Cash
and cash equivalents
|
l |
Accounts
receivable
|
l |
Inventories
|
l |
Plant
and equipment, net
|
Depreciable
life
|
Residual
value
|
|||
Plant
and machinery
|
3
-
20 years
|
5%
|
||
Furniture,
fixture and equipment
|
5
-
8 years
|
5%
|
l |
Impairment
of long-lived assets
|
l |
Revenue
recognition
|
l |
Cost
of revenues
|
l |
Stock-based
compensation
|
l |
Income
taxes
|
l |
Net
income per share
|
l |
Comprehensive
income
|
l |
Product
warranty
|
l |
Foreign
currencies translation
|
2008
|
2007
|
||||||
Months
end RMB:US$ exchange rate
|
7.0726
|
7.3141
|
|||||
Average
monthly RMB:US$ exchange rate
|
6.8718
|
7.5633
|
l |
Segment
reporting
|
l |
Fair
value of financial instruments
|
l |
Recent
accounting pronouncements
|
September
30, 2008
|
December
31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Raw
materials
|
$
|
910,352
|
$
|
310,040
|
|||
Work-in-process
|
896,625
|
734,711
|
|||||
Finished
goods
|
368,205
|
403,635
|
|||||
$
|
2,175,182
|
$
|
1,448,386
|
September
30, 2008
|
December
31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Prepayment
to vendors for raw materials
|
$
|
839,914
|
$
|
558,047
|
|||
Prepaid
operating expenses
|
27,975
|
25,874
|
|||||
Value
added tax receivable
|
5,431
|
12,537
|
|||||
Other
receivables
|
80,483
|
9,531
|
|||||
$
|
953,803
|
$
|
605,989
|
September
30, 2008
|
December
31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Plant
and machinery
|
$
|
2,832,941
|
$
|
2,566,042
|
|||
Furniture,
fixture and equipment
|
43,454
|
33,968
|
|||||
Construction
in progress
|
843,023
|
223,029
|
|||||
Foreign
translation difference
|
179,689
|
162,460
|
|||||
3,899,107
|
2,985,499
|
||||||
Less:
accumulated depreciation
|
(709,406
|
)
|
(448,981
|
)
|
|||
Less:
foreign translation difference
|
(39,509
|
)
|
(21,723
|
)
|
|||
$
|
3,150,192
|
$
|
2,514,795
|
September
30, 2008
|
December
31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Rent
payable
|
$
|
29,175
|
$
|
37,599
|
|||
Welfare
payable
|
56,524
|
108,125
|
|||||
Accrued
expenses
|
68,534
|
74,576
|
|||||
Payable
to equipment vendors
|
12,254
|
135,090
|
|||||
$
|
166,487
|
$
|
355,390
|
Three
months ended September 30, 2008:
|
Valves
manufacturing business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
3,557,112
|
$
|
-
|
$
|
3,557,112
|
||||
-
Services
|
939,406
|
-
|
939,406
|
|||||||
-
Projects
|
-
|
105,308
|
105,308
|
|||||||
Total
operating revenues
|
4,496,518
|
105,308
|
4,601,826
|
|||||||
Cost
of revenues
|
3,351,469
|
14,115
|
3,365,584
|
|||||||
Gross
profit
|
1,145,049
|
91,193
|
1,236,242
|
|||||||
Depreciation
|
66,724
|
1,563
|
68,287
|
|||||||
Net
income
|
1,040,722
|
24,374
|
1,065,096
|
|||||||
Expenditure
for long-lived assets
|
$
|
564,110
|
$
|
13,211
|
$
|
557,321
|
Nine
months ended September 30, 2008:
|
Valves
manufacturing business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
8,836,478
|
$
|
-
|
$
|
8,836,478
|
||||
-
Services
|
2,108,342
|
-
|
2,108,342
|
|||||||
-
Projects
|
-
|
818,490
|
818,490
|
|||||||
Total
operating revenues
|
10,944,820
|
818,490
|
11,763,310
|
|||||||
Cost
of revenues
|
7,909,078
|
609,811
|
8,518,889
|
|||||||
Gross
profit
|
3,035,742
|
208,679
|
3,244,421
|
|||||||
Depreciation
|
222,093
|
16,609
|
238,702
|
|||||||
Net
income
|
2,489,997
|
186,210
|
2,676,207
|
|||||||
Expenditure
for long-lived assets
|
$
|
686,690
|
51,353
|
738,043
|
Three
months ended September 30, 2007:
|
Valves
manufacturing business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
1,383,252
|
$
|
-
|
$
|
1,383,252
|
||||
-
Services
|
211,915
|
-
|
211,915
|
|||||||
-
Projects
|
-
|
435,849
|
435,849
|
|||||||
Total
operating revenues
|
1,595,167
|
435,849
|
2,031,016
|
|||||||
Cost
of revenues
|
974,584
|
330,878
|
1,305,462
|
|||||||
Gross
profit
|
620,583
|
104,971
|
725,554
|
|||||||
Depreciation
|
39,943
|
10,913
|
50,856
|
|||||||
Net
income
|
418,731
|
159,186
|
577,917
|
|||||||
Expenditure
for long-lived assets
|
$
|
72,599
|
$
|
19,836
|
$
|
92,435
|
Nine
months ended September 30, 2007:
|
Valves
manufacturing business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
5,328,588
|
$
|
-
|
$
|
5,328,588
|
||||
-
Services
|
1,297,962
|
-
|
1,297,962
|
|||||||
-
Projects
|
-
|
435,849
|
435,849
|
|||||||
Total
operating revenues
|
6,626,550
|
435,849
|
7,062,399
|
|||||||
Cost
of revenues
|
4,277,035
|
330,878
|
4,607,913
|
|||||||
Gross
profit
|
2,349,515
|
104,971
|
2,454,486
|
|||||||
Depreciation
|
144,522
|
45,639
|
190,161
|
|||||||
Net
income
|
689,205
|
645,661
|
1,334,866
|
|||||||
Expenditure
for long-lived assets
|
$
|
156,323
|
$
|
10,282
|
$
|
166,605
|
Three
months ended September 30, 2008
|
September
30, 2008
|
|||||||||||||||
Customers
|
Revenues
|
Percentage
of
revenues
|
Accounts
receivable,
trade
|
|||||||||||||
Customer
A
|
$
|
2,212,765
|
48
|
%
|
$
|
5,150,727
|
||||||||||
Customer
D
|
624,632
|
14
|
%
|
709,051
|
||||||||||||
Total:
|
$
|
2,837,397
|
62
|
%
|
Total:
|
$
|
5,859,778
|
Nine
months ended September 30, 2008
|
September
30, 2008
|
|||||||||||||||
Customers
|
Revenues
|
Percentage
of
revenues
|
Accounts
receivable,
trade
|
|||||||||||||
Customer
A
|
$
|
6,833,406
|
58
|
%
|
$
|
5,150,727
|
||||||||||
Customer
D
|
1,499,557
|
13
|
%
|
709,051
|
||||||||||||
Total:
|
$
|
8,332,963
|
71
|
%
|
Total:
|
$
|
5,859,778
|
Three
months ended September 30, 2007
|
September
30, 2007
|
|||||||||||||||
Customers
|
Revenues
|
Percentage
of
revenues
|
Accounts
receivable,
trade
|
|||||||||||||
Customer
A
|
$
|
1,170,151
|
58
|
%
|
$
|
766,359
|
||||||||||
Customer
B
|
385,082
|
19
|
%
|
-
|
||||||||||||
Customer
C
|
230,960
|
11
|
%
|
-
|
||||||||||||
Total:
|
$
|
1,786,193
|
88
|
%
|
Total:
|
$
|
766,359
|
Nine
months ended September 30, 2007
|
September
30, 2007
|
|||||||||||||||
Customers
|
Revenues
|
Percentage
of
revenues
|
Accounts
receivable,
trade
|
|||||||||||||
Customer
A
|
$
|
3,039,508
|
43
|
%
|
$
|
766,359
|
||||||||||
Customer
B
|
918,335
|
13
|
%
|
-
|
||||||||||||
Total:
|
$
|
3,957,843
|
56
|
%
|
Total:
|
$
|
766,359
|
Three
months ended September 30, 2008
|
September
30, 2008
|
|||||||||||||||
Vendors
|
Purchases
|
|
Percentage
of
purchases
|
|
|
|
Accounts
payable
|
|||||||||
Vendor
A
|
S
|
$
|
2,165,463
|
31
|
%
|
$
|
246,096
|
|
|
|
|
Nine
months ended September 30, 2008
|
|
|
|
September
30, 2008
|
||||||||
Vendors
|
Purchases
|
|
Percentage
of
purchases
|
|
|
|
Accounts
Payable
|
|
||||||||
Vendor
A
|
$
|
3,567,924
|
32
|
%
|
Total:
|
$
|
246,096
|
Depreciable
life
|
Residual
value
|
|||
Plant
and machinery
|
3
-
20 years
|
5%
|
||
Furniture,
fixture and equipment
|
5
-
8 years
|
5%
|
Three
Months Ended
|
Three
Months Ended
|
||||||||||||||||||
September
30 2008
|
September
30 2007
|
Change
|
|||||||||||||||||
|
Amount
|
|
%
of Total Revenues
|
|
Amount
|
|
%
of Total Revenues
|
|
Amount
|
|
%
change
|
||||||||
REVENUE,
NET
|
|||||||||||||||||||
Products
|
$
|
3,557,112
|
77.30
|
%
|
$
|
1,383,252
|
68.11
|
%
|
$
|
2,173,860
|
157
|
%
|
|||||||
Service
|
939,406
|
20.41
|
%
|
211,915
|
10.43
|
%
|
727,491
|
343
|
%
|
||||||||||
Projects
|
105,308
|
2.29
|
%
|
435,849
|
21.46
|
%
|
-330,541
|
-76
|
%
|
||||||||||
Total
Operating Revenues
|
$
|
4,601,826
|
100
|
%
|
$
|
2,031,016
|
100
|
%
|
$
|
2,570,810
|
127
|
%
|
Nine
Months Ended
|
Nine
Months Ended
|
||||||||||||||||||
September
30 2008
|
September
30 2007
|
Change
|
|||||||||||||||||
Amount
|
%
of Total Revenues
|
Amount
|
%
of Total Revenues
|
Amount
|
%
change
|
||||||||||||||
REVENUE,
NET
|
|||||||||||||||||||
Products
|
$
|
8,836,478
|
75.12
|
%
|
$
|
5,328,588
|
75.45
|
%
|
$
|
3,507,890
|
66
|
%
|
|||||||
Service
|
2,108,342
|
17.92
|
%
|
1,297,962
|
18.38
|
%
|
810,380
|
62
|
%
|
||||||||||
Projects
|
818,490
|
6.96
|
%
|
435,849
|
6.17
|
%
|
382,641
|
88
|
%
|
||||||||||
Total
Operating Revenues
|
$
|
11,763,310
|
100
|
%
|
$
|
7,062,399
|
100
|
%
|
$
|
4,700,911
|
67
|
%
|
Three
Months Ended
|
|
Three
Months Ended
|
|||||||||||||||||
September
30 2008
|
September
30 2007
|
Change
|
|||||||||||||||||
Amount
|
|
%
of Total Cost of Revenues
|
|
Amount
|
|
%
of Total Cost of Revenues
|
|
Amount
|
|
%
change
|
|||||||||
COST
OF REVENUES
|
|||||||||||||||||||
Cost
of Products
|
$
|
2,639,688
|
78.43
|
%
|
$
|
881,432
|
67.52
|
%
|
$
|
1,758,256
|
199
|
%
|
|||||||
Cost
of Service
|
711,781
|
21.15
|
%
|
93,152
|
7.14
|
%
|
618,629
|
664
|
%
|
||||||||||
Cost
of Projects
|
14,115
|
0.42
|
%
|
330,878
|
25.35
|
%
|
-316,763
|
-96
|
%
|
||||||||||
Total
Cost of Revenues
|
$
|
3,365,584
|
100.00
|
%
|
$
|
1,305,462
|
100.00
|
%
|
$
|
2,060,122
|
158
|
%
|
Nine
Months Ended September
30 2008 |
Nine
Months Ended September
30 2007 |
Change
|
|||||||||||||||||
Amount
|
%
of Total Cost of Revenues
|
Amount
|
%
of Total Cost of Revenues
|
Amount
|
%
change
|
||||||||||||||
COST
OF REVENUES
|
|||||||||||||||||||
Cost
of Products
|
$
|
6,391,906
|
75.03
|
%
|
$
|
3,889,149
|
84.40
|
%
|
$
|
2,502,757
|
64
|
%
|
|||||||
Cost
of Service
|
1,517,172
|
17.81
|
%
|
387,886
|
8.42
|
%
|
1,129,286
|
291
|
%
|
||||||||||
Cost
of Projects
|
609,811
|
7.16
|
%
|
330,878
|
7.18
|
%
|
278,933
|
84
|
%
|
||||||||||
Total
Cost of Revenues
|
$
|
8,518,889
|
100.00
|
%
|
$
|
4,607,913
|
100.00
|
%
|
$
|
3,910,976
|
85
|
%
|
Three
Months Ended
September
30 2008
|
|||||||||||||||||||||||||
Products
|
% |
Service
|
% |
Projects
|
% |
Total
|
% | ||||||||||||||||||
Revenues
|
$
|
3,557,112
|
100.00
|
%
|
$
|
939,406
|
100.00
|
%
|
$
|
105,308
|
100.00
|
%
|
$
|
4,601,826
|
100.00
|
%
|
|||||||||
Cost
of Revenues
|
$
|
2,639,688
|
74.21
|
%
|
711,781
|
75.77
|
%
|
14,115
|
13.40
|
%
|
3,365,584
|
73.14
|
%
|
||||||||||||
Gross
Margin
|
$
|
917,424
|
25.79
|
%
|
$
|
227,625
|
24.23
|
%
|
$
|
91,193
|
86.60
|
%
|
$
|
1,236,242
|
26.86
|
%
|
Three
Months Ended
September
30 2007
|
|||||||||||||||||||||||||
Products
|
% |
Service
|
% |
Projects
|
% |
Total
|
% | ||||||||||||||||||
Revenues
|
$
|
1,383,252
|
100.00
|
%
|
$
|
211,915
|
100.00
|
%
|
$
|
435,849
|
100.00
|
%
|
$
|
2,031,016
|
100.00
|
%
|
|||||||||
Cost
of Revenues
|
881,432
|
63.72
|
%
|
93,152
|
43.96
|
%
|
330,878
|
75.92
|
%
|
1,305,462
|
64.28
|
%
|
|||||||||||||
Gross
Margin
|
$
|
501,820
|
36.28
|
%
|
$
|
118,763
|
56.04
|
%
|
$
|
104,971
|
24.08
|
%
|
$
|
725,554
|
35.72
|
%
|
Nine
Months Ended
September
30 2008
|
|||||||||||||||||||||||||
Products
|
%
|
Service
|
%
|
Projects
|
%
|
Total
|
%
|
||||||||||||||||||
Revenues
|
$
|
8,836,478
|
100.00
|
%
|
$
|
2,108,342
|
100.00
|
%
|
$
|
818,490
|
100.00
|
%
|
$
|
11,763,310
|
100.00
|
%
|
|||||||||
Cost
of Revenues
|
6,391,906
|
72.34
|
%
|
1,517,172
|
71.96
|
%
|
609,811
|
74.50
|
%
|
8,518,889
|
72.42
|
%
|
|||||||||||||
Gross
Margin
|
$
|
2,444,572
|
27.66
|
%
|
$
|
591,170
|
28.04
|
%
|
$
|
208,679
|
25.50
|
%
|
$
|
3,244,421
|
27.58
|
%
|
Nine
Months Ended
September
30 2007
|
|||||||||||||||||||||||||
Products
|
%
|
Service
|
%
|
Projects
|
%
|
Total
|
%
|
||||||||||||||||||
Revenues
|
$
|
5,328,588
|
100.00
|
%
|
$
|
1,297,962
|
100.00
|
%
|
$
|
435,849
|
100.00
|
%
|
$
|
7,062,399
|
100.00
|
%
|
|||||||||
Cost
of Revenues
|
3,889,149
|
72.99
|
%
|
387,886
|
29.88
|
%
|
330,878
|
75.92
|
%
|
4,607,913
|
65.25
|
%
|
|||||||||||||
Gross
Margin
|
$
|
1,439,439
|
27.01
|
%
|
$
|
910,076
|
70.12
|
%
|
$
|
104,971
|
24.08
|
%
|
$
|
2,454,486
|
34.75
|
%
|
NF
Energy Saving Corporation of America
(Registrant)
|
||
|
|
|
Date: November 10, 2008 | By: | /s/ Gang Li |
Gang Li |
||
Chairman, Chief Executive Officer and President |
Exhibit
No.
|
Description
|
31.1
|
Certification
of Chief Executive Officer
|
31.2
|
Certification
of Chief Financial Officer
|
32.1
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section
906
of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification
pursuant to
18 U.S.C. Section 1350, as adopted pursuant to section 906
of the Sarbanes-Oxley Act of
2002
|