x
|
Quarterly
Report Pursuant to Section 13 Or 15(d) of the Securities Exchange
Act of
1934 for the Quarterly Period Ended June 30,
2008
|
¨
|
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
¨
|
Large
accelerated filer
|
¨
|
Accelerated
filer
|
¨
|
Non-accelerated
filer
|
¨
|
Smaller
reporting company
|
x
|
|
Yes
¨
|
|
|
No
x
|
3
|
||
23
|
||
|
||
34
|
||
34
|
||
PART
II – OTHER INFOMRATION
|
||
34
|
||
34
|
||
34
|
||
34
|
||
34
|
||
34
|
||
35
|
Page
|
||||
4
|
||||
5
|
||||
6
|
||||
7
|
||||
8 to
22
|
June 30, 2008
|
December 31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
4,761,252
|
$
|
2,240,901
|
|||
Accounts
receivable, trade
|
5,325,700
|
4,061,352
|
|||||
Inventories
|
1,437,880
|
1,448,386
|
|||||
Prepayments
and other receivables
|
972,812
|
605,989
|
|||||
Total
current assets
|
12,497,644
|
8,356,628
|
|||||
Plant
and equipment, net
|
2,592,141
|
2,514,795
|
|||||
TOTAL
ASSETS
|
$
|
15,089,785
|
$
|
10,871,423
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable, trade
|
$
|
1,229,217
|
$
|
1,259,081
|
|||
Customer
deposits
|
135,542
|
22,719
|
|||||
Value
added tax payable
|
66,071
|
70,604
|
|||||
Other
payables and accrued liabilities
|
165,410
|
355,390
|
|||||
Total
current liabilities
|
1,596,240
|
1,707,794
|
|||||
Commitments
and contingencies
|
268,825
|
-
|
|||||
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 June 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
|
1,245,949
|
557,503
|
|||||
Retained
earnings
|
3,983,363
|
2,341,893
|
|||||
Total
stockholders’ equity
|
13,493,545
|
9,163,629
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
15,089,785
|
$
|
10,871,423
|
Three months ended June 30,
|
Six months ended June 30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
REVENUE,
NET
|
|
|
|
||||||||||
Product
|
$
|
3,036,313
|
$
|
3,013,085
|
$
|
5,279,366
|
$
|
3,945,336
|
|||||
Services
|
837,555
|
1,015,812
|
1,168,936
|
1,086,047
|
|||||||||
Projects
|
422,659
|
-
|
713,182
|
-
|
|||||||||
Total
operation revenues
|
4,296,527
|
4,028,897
|
7,161,484
|
5,031,383
|
|||||||||
COST
OF REVENUES:
|
|||||||||||||
Cost
of products
|
2,092,071
|
2,266,486
|
3,752,218
|
3,007,717
|
|||||||||
Cost
of services
|
582,581
|
258,510
|
792,101
|
294,734
|
|||||||||
Cost
of projects
|
370,866
|
-
|
610,636
|
-
|
|||||||||
Total
cost of revenues
|
3,045,518
|
2,524,996
|
5,154,955
|
3,302,451
|
|||||||||
GROSS
PROFIT
|
1,251,009
|
1,503,901
|
2,006,529
|
1,728,932
|
|||||||||
OPERATING
EXPENSES:
|
|||||||||||||
Sales
and marketing
|
48,921
|
14,709
|
62,280
|
14,709
|
|||||||||
Research
and development
|
47,254
|
329,906
|
85,586
|
329,906
|
|||||||||
Stock-based
compensation
|
-
|
255,000
|
-
|
510,000
|
|||||||||
General
and administrative
|
113,401
|
71,759
|
241,824
|
129,229
|
|||||||||
Total
operating expenses
|
209,576
|
671,374
|
389,690
|
983,844
|
|||||||||
INCOME
FROM OPERATIONS
|
1,041,433
|
832,527
|
1,616,839
|
745,088
|
|||||||||
Other
income:
|
|||||||||||||
Interest
income
|
8,813
|
342
|
8,813
|
342
|
|||||||||
Other
income
|
12,141
|
4,867
|
16,123
|
11,519
|
|||||||||
Total
other income
|
20,954
|
5,209
|
24,936
|
11,861
|
|||||||||
INCOME
BEFORE INCOME TAXES
|
1,062,387
|
837,736
|
1,641,775
|
756,949
|
|||||||||
Income
tax expense
|
(4
|
)
|
-
|
(305
|
)
|
-
|
|||||||
NET
INCOME
|
$
|
1,062,383
|
$
|
837,736
|
$
|
1,641,470
|
$
|
756,949
|
|||||
Other
comprehensive income:
|
|||||||||||||
-
Foreign currency translation gain
|
275,802
|
35,254
|
688,446
|
71,852
|
|||||||||
COMPREHENSIVE
INCOME
|
$
|
1,338,185
|
$
|
872,990
|
$
|
2,329,916
|
$
|
828,801
|
|||||
Net
income per share – basic and diluted
|
$
|
0.03
|
$
|
0.03
|
$
|
0.05
|
$
|
0.02
|
|||||
Weighted
average shares outstanding – basic and
diluted
|
36,033,153
|
31,527,328
|
34,630,241
|
31,388,439
|
Six months ended June 30,
|
|||||||
2008
|
2007
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
1,641,470
|
$
|
756,949
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
|||||||
Depreciation
|
170,415
|
113,254
|
|||||
Gain
on disposal of plant and equipment
|
-
|
(10,533
|
)
|
||||
Stock-based
compensation
|
-
|
510,000
|
|||||
Change
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
(974,464
|
)
|
(288,838
|
)
|
|||
Inventories
|
100,786
|
192,661
|
|||||
Prepayments
and other receivables
|
(330,241
|
)
|
(1,142,062
|
)
|
|||
Accounts
payable
|
(107,754
|
)
|
50,319
|
||||
Customer
deposits
|
108,199
|
63,720
|
|||||
Income
tax payable
|
-
|
(378,069
|
)
|
||||
Value
added tax payables
|
2,324
|
139,235
|
|||||
Other
payables and accrued liabilities
|
(132,019
|
)
|
215,173
|
||||
Net
cash provided by operating activities
|
478,716
|
221,809
|
|||||
Cash
flows from investing activities:
|
|||||||
Purchase
of plant and equipment
|
(160,722
|
)
|
(74,170
|
)
|
|||
Proceeds
from disposal of plant and equipment
|
-
|
53,823
|
|||||
Net
cash used in investing activities
|
(160,722
|
)
|
(20,347
|
)
|
|||
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
|
202,357
|
71,852
|
|||||
NET
CHANGE IN CASH AND CASH EQUIVALENTS
|
2,520,351
|
1,143,314
|
|||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
2,240,901
|
796,944
|
|||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
4,761,252
|
$
|
1,940,258
|
|||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|||||||
Cash
paid for income taxes
|
$
|
305
|
$
|
378,069
|
|||
Cash
paid for interest expenses
|
$
|
-
|
$
|
-
|
Common stock
|
|
|
|
Accumulated
other
|
|
|
|
|
|
Total
|
|
|||||||||||
|
|
No. of
shares
|
|
Amount
|
|
Additional
paid-in capital
|
|
comprehensive
income
|
|
Statutory
reserve
|
|
Retained
earnings
|
|
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
|
-
|
-
|
-
|
688,446
|
-
|
-
|
688,446
|
|||||||||||||||
Net
income for the period
|
-
|
-
|
-
|
-
|
-
|
1,641,470
|
1,641,470
|
|||||||||||||||
Balance
as of June 30, 2008
|
39,872,704
|
$
|
39,872
|
$
|
7,706,587
|
$
|
1,245,949
|
$
|
517,774
|
$
|
3,983,363
|
$
|
13,493,545
|
Depreciable life
|
Residual value
|
||||||
Plant
and machinery
|
3 –
20 years
|
5
|
%
|
||||
Furniture,
fixture and equipment
|
5 –
8 years
|
5
|
%
|
2008
|
2007
|
||||||
Months
end RMB:US$ exchange rate
|
7.0726
|
7.3141
|
|||||
Average
monthly RMB:US$ exchange rate
|
6.8718
|
7.5633
|
June 30, 2008
|
December 31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Raw
materials
|
$
|
381,273
|
$
|
310,040
|
|||
Work-in-process
|
1,043,474
|
734,711
|
|||||
Finished
goods
|
13,133
|
403,635
|
|||||
$
|
1,437,880
|
$
|
1,448,386
|
June 30, 2008
|
December 31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Prepayment
to vendors for raw materials
|
$
|
878,616
|
$
|
558,047
|
|||
Advance
to employees
|
59,410
|
-
|
|||||
Deposits
|
23,284
|
-
|
|||||
Prepaid
expenses
|
9,336
|
25,874
|
|||||
Value
added tax receivable
|
1,875
|
12,537
|
|||||
Other
receivables
|
291
|
9,531
|
|||||
$
|
972,812
|
$
|
605,989
|
June 30, 2008
|
December 31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Plant
and machinery
|
$
|
2,798,838
|
$
|
2,566,042
|
|||
Furniture,
fixture and equipment
|
40,142
|
33,968
|
|||||
Construction
in progress
|
234,729
|
223,029
|
|||||
Foreign
translation difference
|
194,828
|
162,460
|
|||||
3,268,537
|
2,985,499
|
||||||
Less:
accumulated depreciation
|
(641,119
|
)
|
(448,981
|
)
|
|||
Less:
foreign translation difference
|
(35,277
|
)
|
(21,723
|
)
|
|||
$
|
2,592,141
|
$
|
2,514,795
|
June 30, 2008
|
December 31, 2007
|
||||||
(Unaudited)
|
(Audited)
|
||||||
Rent
payable
|
$
|
18,190
|
$
|
37,599
|
|||
Welfare
payable
|
87,203
|
108,125
|
|||||
Accrued
expenses
|
36,005
|
74,576
|
|||||
Advance
to staff
|
4,279
|
-
|
|||||
Payable
to equipment vendors
|
19,733
|
135,090
|
|||||
$
|
165,410
|
$
|
355,390
|
Three
months ended June 30, 2008:
|
Valves
manufacturing
business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
3,036,313
|
$
|
-
|
$
|
3,036,313
|
||||
-
Services
|
-
|
837,555
|
837,555
|
|||||||
-
Projects
|
-
|
422,659
|
422,659
|
|||||||
Total
operating revenues
|
3,036,313
|
1,260,214
|
4,296,527
|
|||||||
Cost
of revenues
|
2,092,071
|
953,447
|
3,045,518
|
|||||||
Gross
profit
|
944,242
|
306,767
|
1,251,009
|
|||||||
Depreciation
|
58,840
|
24,422
|
83,262
|
|||||||
Net
income
|
750,774
|
311,609
|
1,062,383
|
|||||||
Expenditure
for long-lived assets
|
$
|
32,171
|
$
|
13,353
|
$
|
45,524
|
Six
months ended June 30, 2008:
|
Valves
manufacturing
business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
5,279,366
|
$
|
-
|
$
|
5,279,366
|
||||
-
Services
|
-
|
1,168,936
|
1,168,936
|
|||||||
-
Projects
|
-
|
713,182
|
713,182
|
|||||||
Total
operating revenues
|
5,279,366
|
1,882,118
|
7,161,484
|
|||||||
Cost
of revenues
|
3,752,218
|
1,402,737
|
5,154,955
|
|||||||
Gross
profit
|
1,527,148
|
479,381
|
2,006,529
|
|||||||
Depreciation
|
125,616
|
44,799
|
170,415
|
|||||||
Net
income
|
1,226,306
|
415,164
|
1,641,470
|
|||||||
Expenditure
for long-lived assets
|
$
|
118,482
|
42,240
|
160,722
|
Three
months ended June 30, 2007:
|
Valves
manufacturing
business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
3,013,085
|
-
|
3,013,085
|
||||||
-
Services
|
-
|
1,015,812
|
1,015,812
|
|||||||
Total
operating revenues
|
3,013,085
|
1,015,812
|
4,028,897
|
|||||||
Cost
of revenues
|
2,266,486
|
258,510
|
2,524,996
|
|||||||
Gross
profit
|
746,599
|
757,302
|
1,503,901
|
|||||||
Depreciation
|
44,415
|
12,294
|
56,709
|
|||||||
Net
income
|
351,261
|
486,475
|
837,736
|
|||||||
Expenditure
for long-lived assets
|
$
|
61,294
|
$
|
12,876
|
$
|
74,170
|
Six months ended June 30, 2007:
|
Valves
manufacturing
business
|
Energy-saving
related business
|
Total
|
|||||||
Operating
revenues
|
||||||||||
-
Products
|
$
|
3,945,336
|
$
|
-
|
$
|
3,945,336
|
||||
-
Services
|
- |
1,086,047
|
1,086,047 | |||||||
Total
operating revenues
|
3,945,336 |
1,086,047
|
5,031,383 | |||||||
Cost
of revenues
|
3,007,717 |
294,734
|
3,302,451 | |||||||
Gross
profit
|
937,619 |
791,313
|
1,728,932 | |||||||
Depreciation
|
100,995 |
12,259
|
113,254 | |||||||
Net
income
|
270,474 |
486,475
|
756,949 | |||||||
Expenditure
for long-lived assets
|
$
|
61,294
|
$
|
12,876
|
$
|
74,170
|
Three months ended June 30, 2008
|
June 30, 2008
|
|||||||||||||
Customers
|
Revenues
|
Percentage
of revenues
|
Accounts
receivable, trade
|
|||||||||||
Customer
A
|
$
|
426,724
|
10
|
%
|
$
|
837,481
|
||||||||
Customer
B
|
648,623
|
15
|
%
|
592,747
|
||||||||||
Customer
C
|
2,455,184
|
56
|
%
|
2,720,899
|
||||||||||
|
Total:
|
$
|
3,530,531
|
81
|
%
|
Total:
|
$
|
4,151,127
|
Six months ended June 30, 2008
|
June 30, 2008
|
|||||||||||||
Customers
|
Revenues
|
Percentage
of revenues
|
Accounts
receivable, trade
|
|||||||||||
Customer
A
|
$
|
713,899
|
10
|
%
|
$
|
837,481
|
||||||||
Customer
B
|
874,927
|
12
|
%
|
592,747
|
||||||||||
Customer
C
|
4,620,642
|
65
|
%
|
2,720,899
|
||||||||||
|
Total:
|
$
|
6,209,468
|
87
|
%
|
Total:
|
$
|
4,151,127
|
Three months ended June 30, 2007
|
June 30, 2007
|
|||||||||||||
Customers
|
Revenues
|
Percentage
of revenues
|
Accounts
receivable, trade
|
|||||||||||
Customer
C
|
$
|
939,455
|
23
|
%
|
$
|
189,908
|
||||||||
Customer
D
|
559,953
|
14
|
%
|
-
|
||||||||||
Customer
E
|
479,174
|
12
|
%
|
231,081
|
||||||||||
Customer
F
|
392,490
|
10
|
%
|
-
|
||||||||||
|
Total:
|
$
|
2,371,072
|
59
|
%
|
Total:
|
$
|
420,989
|
Six months ended June 30, 2007
|
June 30, 2007
|
|||||||||||||
Customers
|
Revenues
|
Percentage
of revenues
|
Accounts
receivable, trade
|
|||||||||||
Customer
C
|
$
|
1,696,433
|
34
|
%
|
$
|
189,908
|
||||||||
Customer
D
|
1,187,225
|
24
|
%
|
-
|
||||||||||
|
Total:
|
$
|
2,883,658
|
58
|
%
|
Total:
|
$
|
189,908
|
Three months ended June 30, 2008
|
June 30, 2008
|
|||||||||||||
Vendors
|
Purchases
|
Percentage
of purchases
|
Accounts
payable
|
|||||||||||
Vendor
B
|
$
|
240,117
|
11
|
%
|
$
|
245,498
|
||||||||
Vendor
C
|
250,443
|
11
|
%
|
-
|
||||||||||
|
Total:
|
$
|
490,560
|
22
|
%
|
Total:
|
$
|
245,498
|
Six months ended June 30, 2008
|
June 30, 2008
|
|||||||||||||
Vendors
|
Purchases
|
Percentage
of purchases
|
Accounts
payable
|
|||||||||||
Vendor
A
|
$
|
730,197
|
17
|
%
|
$
|
-
|
||||||||
Vendor
B
|
1,402,461
|
32
|
%
|
245,498
|
||||||||||
|
Total:
|
$
|
2,132,658
|
49
|
%
|
Total:
|
$
|
245,498
|
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
|
|
|||||||||||||||||
June 30 2008
|
June 30 2007
|
Change
|
|||||||||||||||||
Amount
|
% of
Total
Revenues
|
Amount
|
% of Total
Revenues
|
Amount
|
% change
|
||||||||||||||
REVENUE, NET
|
|||||||||||||||||||
Products
|
$
|
3,036,313
|
70.67
|
%
|
$
|
3,013,085
|
74.79
|
%
|
$
|
23,228
|
1
|
%
|
|||||||
Service
|
837,555
|
19.49
|
%
|
1,015,812
|
25.21
|
%
|
-178,257
|
-18
|
%
|
||||||||||
Projects
|
422,659
|
9.84
|
%
|
-
|
-
|
422,659
|
-
|
||||||||||||
Total
Operating Revenues
|
$
|
4,296,527
|
100
|
%
|
$
|
4,028,897
|
100
|
%
|
$
|
267,630
|
7
|
%
|
Six Months Ended
|
Six Months Ended
|
|
|||||||||||||||||
June 30 2008
|
June 30 2007
|
Change
|
|||||||||||||||||
Amount
|
% of
Total
Revenues
|
Amount
|
% of Total
Revenues
|
Amount
|
% change
|
||||||||||||||
REVENUE,
NET
|
|||||||||||||||||||
Products
|
$
|
5,279,366
|
73.72
|
%
|
$
|
3,945,336
|
78.41
|
%
|
$
|
1,334,030
|
34
|
%
|
|||||||
Service
|
1,168,936
|
16.32
|
%
|
1,086,047
|
21.59
|
%
|
82,889
|
8
|
%
|
||||||||||
Projects
|
713,182
|
9.96
|
%
|
-
|
-
|
713,182
|
-
|
||||||||||||
Total
Operating Revenues
|
$
|
7,161,484
|
100
|
%
|
$
|
5,031,383
|
100
|
%
|
$
|
2,130,101
|
42
|
%
|
Three Months Ended
|
Three Months Ended
|
|
|||||||||||||||||
June 30 2008
|
June 30 2007
|
Change
|
|||||||||||||||||
Amount
|
% of
Total
Cost of
Revenues
|
Amount
|
% of Total
Cost of
Revenues
|
Amount
|
% change
|
||||||||||||||
COST
OF REVENUES
|
|||||||||||||||||||
Cost
of Products
|
$
|
2,092,071
|
68.69
|
%
|
$
|
2,266,486
|
89.76
|
%
|
-$174,415
|
-8
|
%
|
||||||||
Cost
of Service
|
582,581
|
19.13
|
%
|
258,510
|
10.24
|
%
|
324,071
|
125
|
%
|
||||||||||
Cost
of Projects
|
370,866
|
12.18
|
%
|
-
|
-
|
370,866
|
-
|
||||||||||||
Total
Cost of Revenues
|
$
|
3,045,518
|
100.00
|
%
|
$
|
2,524,996
|
100.00
|
%
|
$
|
520,522
|
21
|
%
|
Six Months Ended
|
Six Months Ended
|
|
|||||||||||||||||
June 30 2008
|
June 30 2007
|
Change
|
|||||||||||||||||
Amount
|
% of
Total
Cost of
Revenues
|
Amount
|
% of Total
Cost of
Revenues
|
Amount
|
% change
|
||||||||||||||
COST
OF REVENUES
|
|||||||||||||||||||
Cost
of Products
|
$
|
3,752,218
|
72.79
|
%
|
$
|
3,007,717
|
91.08
|
%
|
$
|
744,501
|
25
|
%
|
|||||||
Cost
of Service
|
792,101
|
15.37
|
%
|
294,734
|
8.92
|
%
|
497,367
|
169
|
%
|
||||||||||
Cost
of Projects
|
610,636
|
11.85
|
%
|
-
|
-
|
610,636
|
-
|
||||||||||||
Total
Cost of Revenues
|
$
|
5,154,955
|
100.00
|
%
|
$
|
3,302,451
|
100.00
|
%
|
$
|
1,852,504
|
56
|
%
|
Three
Months Ended
|
|||||||||||||||||||||||||
June
30, 2008
|
|||||||||||||||||||||||||
Products
|
%
|
Service
|
%
|
Projects
|
%
|
Total
|
%
|
||||||||||||||||||
Revenues
|
$
|
3,036,313
|
100.00
|
%
|
$
|
837,555
|
100.00
|
%
|
$
|
422,659
|
100.00
|
%
|
$
|
4,296,527
|
100.00
|
%
|
|||||||||
Cost
of Revenues
|
2,092,071
|
68.90
|
%
|
582,581
|
69.56
|
%
|
370,866
|
87.75
|
%
|
$
|
3,045,518
|
70.88
|
%
|
||||||||||||
Gross
Margin
|
$
|
944,242
|
31.10
|
%
|
$
|
254,974
|
30.44
|
%
|
$
|
51,793
|
12.25
|
%
|
$
|
1,251,009
|
29.12
|
%
|
Three
Months Ended
|
|||||||||||||||||||||||||
June
30 2007
|
|||||||||||||||||||||||||
Products
|
%
|
Service
|
%
|
Projects
|
%
|
Total
|
%
|
||||||||||||||||||
Revenues
|
$
|
3,013,085
|
100.00
|
%
|
$
|
1,015,812
|
100.00
|
%
|
-
|
-
|
$
|
4,028,897
|
100.00
|
%
|
|||||||||||
Cost
of Revenues
|
2,266,486
|
75.22
|
%
|
258,510
|
25.45
|
%
|
-
|
-
|
2,524,996
|
62.67
|
%
|
||||||||||||||
Gross
Margin
|
$
|
746,599
|
24.78
|
%
|
$
|
757,302
|
74.55
|
%
|
-
|
-
|
$
|
1,503,901
|
37.33
|
%
|
Six
Months Ended
|
|||||||||||||||||||||||||
June
30, 2008
|
|||||||||||||||||||||||||
Products
|
%
|
Service
|
%
|
Projects
|
%
|
Total
|
%
|
||||||||||||||||||
Revenues
|
$
|
5,279,366
|
100.00
|
%
|
$
|
1,168,936
|
100.00
|
%
|
$
|
713,182
|
100.00
|
%
|
$
|
7,161,484
|
100.00
|
%
|
|||||||||
Cost
of Revenues
|
3,752,218
|
71.07
|
%
|
792,101
|
67.76
|
%
|
610,636
|
85.62
|
%
|
$
|
5,154,955
|
71.98
|
%
|
||||||||||||
Gross
Margin
|
$
|
1,527,148
|
28.93
|
%
|
$
|
376,835
|
32.24
|
%
|
$
|
102,546
|
14.38
|
%
|
$
|
2,006,529
|
28.02
|
%
|
Six
Months Ended
|
|||||||||||||||||||||||||
June
30 2007
|
|||||||||||||||||||||||||
Products
|
%
|
Service
|
%
|
Projects
|
%
|
Total
|
%
|
||||||||||||||||||
Revenues
|
$
|
3,945,336
|
100.00
|
%
|
$
|
1,086,047
|
100.00
|
%
|
-
|
-
|
$
|
5,031,383
|
100.00
|
%
|
|||||||||||
Cost
of Revenues
|
3,007,717
|
76.23
|
%
|
294,734
|
27.14
|
%
|
-
|
-
|
3,302,451
|
65.64
|
%
|
||||||||||||||
Gross
Margin
|
$
|
937,619
|
23.77
|
%
|
$
|
791,313
|
72.86
|
%
|
-
|
-
|
$
|
1,728,932
|
34.36
|
%
|
NF
Energy Saving Corporation of America
|
||
(Registrant)
|
||
Date:
August 11, 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
|