SmartHeat Inc. (SmartHeat) is a designer, manufacturer and seller of clean technology plate heat exchangers and related systems in China. The Company designs, manufactures, sells and services plate heat exchangers (PHEs), PHE Units, which combine PHEs with various pumps, temperature sensors, valves and automated control systems (PHE Units), and heat meters for use in commercial and residential buildings. Its products and systems are used in energy conversion for heating, ventilation and air conditioning (HVAC) and industrial use in petroleum refining, petrochemicals, metallurgy, food and beverage and chemical processing. Its PHE Units are designed by its own in-house engineers and sold under its own Taiyu brand name, while its PHEs are sold under both its Taiyu brand, as well as the Sondex brand name. The Company is a dealer of Sondex PHEs in China. On May 27, 2009, the Company acquired the production assets of Siping Beifang Heat Exchanger Manufacture Co., Ltd. (Siping Beifang).