|  [ x ] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
|-------------|------------------------------------------------------------------------------------------|

|  [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------------------|------------------------------------------------------------------------------------------|

| Nevada(State or other jurisdiction ofincorporation or organization) | 84-0601802(I.R.S. EmployerIdentification No.) |
|---------------------------------------------------------------------|-----------------------------------------------|

| No. 485 Tengfei Third,Shuangliu Southwest Airport Economic Development Zone,Shuangliu, ChengduPeople’s Republic of China, 610207 |
|----------------------------------------------------------------------------------------------------------------------------------------|
| (Address of principal executive offices including zip code)                                                                            |

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| ITEM     |   |                                                                                        |   |  Page |
|----------|--------|---------------------------------------------------------------------------------------------|--------|------------|
|     |   |                                                                                        |   |       |
| PART I   |   | FINANCIAL INFORMATION                                                                  |   |       |
| Item 1.  |   | Financial Statements                                                                        |   |   3   |
| Item 2.  |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |   14  |
| Item 4T. |   | Controls and Procedures                                                                     |   |   23  |
|     |   |                                                                                        |   |       |
| PART II  |   | OTHER INFORMATION                                                                           |   |       |
| Item 1.  |   | Legal Proceedings                                                                           |   |   24  |
| Item 2.  |   | Unregistered Sales of Equity and Use of Proceeds                                            |   |   24  |
| Item 3.  |   | Defaults Upon Senior Securities                                                             |   |   24  |
| Item 4.  |   | Submission of Matters to a Vote of Security Holders                                         |   |   24  |
| Item 5.  |   | Other Information                                                                           |   |   24  |
| Item 6.  |   | Exhibits                                                                                    |   |   24  |
|     |   |                                                                                        |   |       |
|     |   | Signatures                                                                                  |   |   25  |

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| APOLLO SOLAR ENERGY, INC.                                                                                                                                                          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                        |   |
|                                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                                               |   | September 30, |   |   | December 31, |   |
|                                                                                                                                                                               |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                               |   | (Unaudited) |   |   |   |   |
| ASSETS                                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |
| Current assets:                                                                                                                                                                    |   |   |   |   |   |   |
| Cash                                                                                                                                                                               |   | $ | 1,222,686 |   |   | $ | 4,874,044 |   |
| Account receivable net of allowance for doubtful accounts                                                                                                                          |   |   | 833,305 |   |   |   | 961,600 |   |
|    $29,822 and  $14,657, respectively                                                                                                                     |   |   |   |   |   |   |   |   |
| Inventories                                                                                                                                                                        |   |   | 7,680,682 |   |   |   | 7,496,477 |   |
| Value added taxes receivable                                                                                                                                                       |   |   | - |   |   |   | 494,387 |   |
| Purchase deposit                                                                                                                                                                   |   |   | 758,140 |   |   |   | 321,300 |   |
| Due from related parties                                                                                                                                                           |   |   | 1,957,390 |   |   |   | 2,313,198 |   |
| Deferred tax assets                                                                                                                                                                |   |   | 33,827 |   |   |   | 25,880 |   |
| Other sundry current assets                                                                                                                                                        |   |   | 129,190 |   |   |   | 83,001 |   |
| Total current assets                                                                                                                                                               |   |   | 12,615,220 |   |   |   | 16,569,887 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Property, machinery and mining assets, net                                                                                                                                         |   |   | 22,837,311 |   |   |   | 19,549,909 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Non-marketable  investment                                                                                                                                               |   |   | 43,947 |   |   |   | - |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                                                       |   | $ | 35,496,478 |   |   | $ | 36,119,796 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Short-term loan                                                                                                                                                                    |   |   | 4,413,367 |   |   |   | - |   |
| Notes payable                                                                                                                                                                      |   |   | 4,394,748 |   |   |   | - |   |
| Account payable - trade                                                                                                                                                            |   |   | 319,780 |   |   |   | 876,221 |   |
|                           - Construction vendors |   |   | 2,469,522 |   |   |   | 2,546,890 |   |
| Due to shareholders                                                                                                                                                                |   |   | 5,777,180 |   |   |   | 9,032,382 |   |
| Accrued expenses and other sundry current liabilities                                                                                                                              |   |   | 1,034,963 |   |   |   | 959,186 |   |
| Total current liabilities                                                                                                                                                          |   |   | 18,409,560 |   |   |   | 13,414,679 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                                                                                                     |   |   | - |   |   |   | 4,397,215 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Shareholders' equity                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Preferred stock, $.001 par value, 25,000,000 shares authorized,                                                                                                                    |   |   |   |   |   |   |   |   |
| 0 shares issued and outstanding at September 30, 2009 and December 31, 2008                                                                                                        |   |   |   |   |   |
| Common stock, $.001 par value, 100,000,000 shares authorized,                                                                                                                      |   |   | 44,555 |   |   |   | 44,555 |   |
| 44,555,131 issued and outstanding at Septermber 30, 2009 and December 31, 2008                                                                                                |   |   |   |   |   |
| Additional paid-in capital                                                                                                                                                         |   |   | 17,753,853 |   |   |   | 17,347,905 |   |
| Accumulated deficit                                                                                                                                                                |   |   | (1,987,555 | ) |   |   | (383,221 | ) |
| Accumulated other comprehensive income                                                                                                                                             |   |   | 1,276,065 |   |   |   | 1,298,663 |   |
| Total shareholders' equity                                                                                                                                                         |   |   | 17,086,918 |   |   |   | 18,307,902 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                                         |   | $ | 35,496,478 |   |   | $ | 36,119,796 |   |
| The accompanying notes are integral part of the financial statements                                                                                                               |

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| APOLLO SOLAR ENERGY, INC.                                                   |
|-----------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| (Unaudited)                                                                 |
|                                                                        |   |   |   |   |   |
|                                                                        |   |   |   |   | Three months ended September 30, |   |  Nine months ended September 30, |
|                                                                        |   |   |   |   | 2009 |   |   | 2008 |   | 2009 |   | 2008 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                                                                       |   |   |   |  $             2,289,669 |   |   |  $                892,400 |   |  $       6,280,044 |   |  $      3,937,573 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                               |   |   |                 1,624,416 |   |   |                    716,163 |   |           4,723,694 |   |         2,814,875 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                |   |   |                   665,253 |   |   |                    176,237 |   |           1,556,350 |   |         1,122,698 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                                                          |   |   |   |   |   |   |   |   |   |
|    General and adminstrative expenses                             |                   726,982 |   |   |                    249,682 |   |           1,978,936 |   |            611,189 |
|    Stock based compensation                                       |                   178,686 |   |   |                              - |   |             551,947 |   |                      - |
|    Selling expenses                                               |   |                     28,491 |   |   |                     65,526 |   |             150,208 |   |            224,150 |
|    Research and development                                       |                     29,370 |   |   |                     28,755 |   |               79,332 |   |              74,044 |
| Total Operating Expenses                                                    |                   963,529 |   |   |                    343,963 |   |           2,760,423 |   |            909,383 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income (loss)                                                     |                  (298,276) |   |   |                  (167,726) |   |         (1,204,073) |   |            213,315 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest Income (expenses)                                     |                  (114,109) |   |   |                    (53,126) |   |            (303,213) |   |            (42,423) |
|    Other income (expenses)                                        |                    (51,189) |   |   |                       7,894 |   |             (51,189) |   |               7,894 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                           |                  (463,574) |   |   |                  (212,958) |   |         (1,558,475) |   |            178,786 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                  |                     22,371 |   |   |                       1,500 |   |               45,859 |   |            160,217 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (loss)                                                           |   |  $              (485,945) |   |   |  $              (214,458) |   |  $     (1,604,334) |   |  $          18,569 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Income (loss)                                           |   |   |   |   |   |   |   |   |
|                                                                        | Foreign Currency Translation Adjustment |  $                (16,328) |   |   |  $                724,322 |   |  $          (22,598) |   |  $      1,188,644 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income (loss)                                                 |                          $              (502,273) |   |   |  $                509,864 |   |  $     (1,626,932) |   |  $      1,207,213 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and Diluted Income per common share                                   |   |   |   |   |   |   |   |
|                                                                        | Basic |   |   |  $                   (0.01) |   |   |  $                   (0.00) |   |  $             (0.03) |   |  $             0.00 |
|                                                                        | Diluted |   |   |  $                   (0.01) |   |   |  $                   (0.00) |   |  $             (0.04) |   |  $             0.00 |
|                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common share outstanding                                   |   |   |   |   |   |   |   |
|                                                                        | Basic |   |   |               44,555,131 |   |   |               44,555,131 |   |         44,555,131 |   |        44,555,131 |
|                                                                        | Diluted |   |   |               45,385,131 |   |   |               44,555,131 |   |         45,376,047 |   |        44,555,131 |
| The accompanying notes are integral part of the financial statements        |

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| APOLLO SOLAR ENERGY, INC.                                            |   |
|----------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                |   |
|                                                                 |   |
| (Unaudited)                                                          |   |
|                                                                 |   | Nine months ended |   |
|                                                                 |   | September 30, |   |
|                                                                 |   | 2009 |   |   | 2008 |   |
|                                                                 |   |   |   |   |   |   |
| Cash flows from operating activities                                 |   |   |   |   |   |   |
| Net income (loss)                                                    |   | $ | (1,604,334 | ) |   | $ | 18,569 |   |
| Adjustments to reconcile net income to net cash                      |   |   |   |   |   |   |   |   |
| Used in operating activities:                                        |   |   |   |   |   |   |   |   |
| Issurance of options for service                                     |   |   | 551,947 |   |   |   | - |   |
| Depreciation                                                         |   |   | 857,044 |   |   |   | 339,772 |   |
| Deferred tax assets                                                  |   |   | (7,955 | ) |   |   |   |   |
| Changes in assets and liabilities:                                   |   |   |   |   |   |   |   |   |
| Account receivable-trade                                             |   |   | 127,644 |   |   |   | (138,688 | ) |
| Inventory                                                            |   |   | (158,789 | ) |   |   | (4,369,298 | ) |
| Other sundry current assets                                          |   |   | (46,193 | ) |   |   | 11,988 |   |
| Tax receivable                                                       |   |   | 523,891 |   |   |   | (389,322 | ) |
| Advance for purchases                                                |   |   | (506,535 | ) |   |   | (682,644 | ) |
| Account payable-trade                                                |   |   | (555,459 | ) |   |   | 282,577 |   |
| Accounts payable - construction                                      |   |   | (75,875 | ) |   |   | 67,789 |   |
| Accrued expenses and other sundry currenty liabilities               |   |   | (189,752 | ) |   |   | 97,737 |   |
| Accrued interests                                                    |   |   | 281,796 |   |   |   | 214,793 |   |
| Net cash used in operating activities                                |   |   | (802,570 | ) |   |   | (4,546,727 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash flows from investing activities                                 |   |   |   |   |   |   |   |   |
| Non-marketable investment                                            |   |   | (43,909 | ) |   |   | - |   |
| Purchase of property & equipments                                |   |   | (1,491,382 | ) |   |   | (6,335,555 | ) |
| Government subsidy to purchase of Fixed Assets                       |   |   | 2,019,803 |   |   |   | - |   |
| Acquisition of land use rights                                       |   |   | (3,674,831 | ) |   |   | - |   |
| Net cash used in investing activities                                |   |   | (3,190,319 | ) |   |   | (6,335,555 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                 |   |   |   |   |   |   |   |   |
|      Proceeds from short-term loans         |   |   | 4,419,432 |   |   |   | - |   |
| Capital contribution                                                 |   |   | - |   |   |   | 8,024,914 |   |
| Advance from (payment to) shareholder                                |   |   | (3,258,745 | ) |   |   | 3,875,921 |   |
| Payment to related party                                             |   |   | (813,923 | ) |   |   | (2,421,015 | ) |
| Net cash provided by financing activities                            |   |   | 346,764 |   |   |   | 9,479,820 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                              |   |   | (5,233 | ) |   |   | 70,969 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Net decrease in cash                                                 |   |   | (3,651,358 | ) |   |   | (1,331,493 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash, beginning of year                                              |   |   | 4,874,044 |   |   |   | 2,619,176 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash, end of period                                                  |   | $ | 1,222,686 |   |   | $ | 1,287,683 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                   |   |   |   |   |   |   |   |   |
| Interest paid                                                        |   | $ | 303,835 |   |   | $ | - |   |
| Income taxes paid                                                    |   | $ | 35,321 |   |   | $ | 160,217 |   |
| The accompanying notes are integral part of the financial statements |

----

----

----

----

NOTE 5. INVENTORY 

|             |   | As of              |      |
|------------------|--------|--------------------|-----------|
|             |   | September 30, 2009 |      |   | December 31, 2008 |   |
|             |   |               |      |   |   |   |
| Raw Materials    |   | $                  | 3,716,846 |   |   | $ | 4,351,326 |   |
| Work-in-progress |   |               | 1,304,765 |   |   |   | 1,080,390 |   |
| Finished goods   |   |               | 2,659,071 |   |   |   | 2,064,761 |   |
|             |   |               |      |   |   |   |   |   |
| Total            |   | $                  | 7,680,682 |   |   | $ | 7,496,477 |   |

----

|                                                                          |   | Balance at    |      |
|-------------------------------------------------------------------------------|--------|---------------|-----------|
|                                                                          |   | September 30, |      |   | December 31, |   |
|                                                                          |   | 2009          |      |   | 2008 |   |
| a) Loan payable to Chengdu Xihang Gang Construction & Investment Co., Ltd |   |          |      |   |
| due on August 31, 2010, with interest at                                      |   | $             | 1,655,362 |   |   | $ | - |   |
| 5.31% per annum, collateralized by certain plant equipment of Sichuan Apollo  |   |          |      |   |   |
|                                                                          |   |          |      |   |   |   |   |   |
| b) Loan payable to Bank of Communication, Chengdu branch                      |   |          |      |   |   |   |   |   |
| due on February 5, 2010, with interest at                                     |   |          | 292,983   |   |   |   | - |   |
| 6.903% per annum, collateralized by the buildings and land use right of Diye  |   |          |      |   |   |
|                                                                          |   |          |      |   |   |   |   |   |
| c) Loan payable to Bank of China, Xihanggang Branch, Chengdu                  |   |          |      |   |   |   |   |   |
| due on August 19, 2010, with interest at                                      |   |          | 732,511   |   |   |   | - |   |
| 5.85% per annum, collateralized by the the buildings of Sichuan Apollo        |   |          |      |   |   |   |   |   |
|                                                                          |   |          |      |   |   |   |   |   |
| d) Loan payable to Bank of China, Xihanggang Branch, Chengdu                  |   |          |      |   |   |   |   |   |
| due on September 7, 2010, with interest at                                    |   |          |      |   |   |   |   |   |
| 5.85% per annum, collateralized by the the buildings of Sichuan Apollo        |   |          | 732,511   |   |   |   |   |   |
|                                                                          |   |          |      |   |   |   |   |   |
| d) Loan payable to an unrelated party                                         |   |          |      |   |   |   |   |   |
| due on September 22, 2010, with interest at                                   |   |          |      |   |   |   |   |   |
| 15% per annum                                                                 |   |          | 1,000,000 |   |   |   | - |   |
|                                                                          |   |          |      |   |   |   |   |   |
| Total                                                                         |   | $             | 4,413,367 |   |   | $ | - |   |

----

|                  |   |   | As of             |      |
|-----------------------|--------|--------|-------------------|-----------|
|                  |   |   | September 30,2009 |      |   | December 31, 2008 |   |
| Due to Shareholders   |   |   |              |      |   |   |
| Mar-09                |   |   | $                 | -         |   |   | $ | 3,800,000 |   |
| Jul-09                |   |   |              |      |   |   |   | 2,912,558 |   |
| Nov-09                |   |   |              | -         |   |   |   | 1,465,738 |   |
| On Demand             |   |   |              |      |   |   |   | 854,086 |   |
| Jul-10                |   |   |              | 5,866,750 |   |   |   | - |   |
| Due from shareholders |   |   |              |      |   |   |   |   |
| On Demand             |   |   |              | (89,570   | ) |   |   | - |   |
|                  |   |   |              |      |   |   |   |   |   |
|                  | Total  |   | $                 | 5,777,180 |   |   | $ | 9,032,382 |   |

|   |                                                                    |  September 30, |
|--------|-------------------------------------------------------------------------|---------------------|
|   |                                                                    | 2009           |   | 2008  |
|   | U.S. statutory rate                                                     | 35%                 |   | 35% |
|   | Tax rate difference between China and U.S.                              | -20%                |   | -10% |
|   | GAAP and Chinese tax law difference on amortization of intangibles | -2%                 |   | -22% |
|   | Loss not available for tax purposes                                     | -16%                |   | 87% |
|   | Effective tax rate                                                      | -3%                 |   | 90% |

----

|                          |   |          |      |   |     |   |      |   |   |   | Corporate & |   |   | Consolidated |     |
|-------------------------------|--------|---------------|-----------|--------|----------|--------|-----------|--------|--------|--------|-----------------|--------|--------|--------------|----------|
|                          |   | Manufacturing |      |   | Refining |   |      | Mining |   |   | Others          |   |   | Total        |     |
|                          |   |          |      |   |     |   |      |   |   |   |            |   |   |         |     |
| Revenue                       |   | $             | -         |   |     | $      | 6,280,044 |   |   | $      | -               |   |   | $            | -        |   |   | $ | 6,280,044 |   |
| Operating profit (loss)       |   |          | (166,280  | )      |     |   | 534,773   |   |   |   | (592,952        | )      |   |         | (979,614 | ) |   |   | (1,204,073 | ) |
| Depreciation and amortization |   |          | 606,212   |   |     |   | 230,526   |   |   |   | 20,306          |   |   |         |     |   |   |   | 857,044 |   |
| Capital expenditures          |   |          | 2,800,055 |   |     |   | 156,437   |   |   |   | 189,918         |   |   |         |     |   |   |   | 3,146,410 |   |

----

----

----

----

| ·   | First Option Exclusive Acquiring Agreement, between Sichuan Xinlong Tellurium Industry & Technique Co., Ltd., Sichuan Xinju Mineral Resources Development Co., Ltd., Renyi Hou and Ling Yong, which grants to our wholly-owned subsidiary a first option to purchase the Mining Business at such timeas the purchase becomes advisable, permissible and in our best interest. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Exclusive Sales Agreement, between Sichuan Xinlong Tellurium Industry & Technique Co., Ltd. and Sichuan Xinju Mineral Resources Development Co., Ltd., which grant to our wholly-owned subsidiary the exclusive right to buy all of the output of the Mining Business. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business Operation Agreement, between Sichuan Xinlong Tellurium Industry & Technique Co., Ltd., Sichuan Xinju Mineral Resources Development Co., Ltd., Renyi Hou and Ling Yong, which imposes certain restrictions and obligations on the VIE and certain of its shareholders to support the VIE arrangement,including refraining from competing with our business and modifying the business operations of the VIE without the prior consent of our wholly-owned subsidiary. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    | Three months                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                            | Nine months                                                                                                                                                                                                                                                                                                                |
|------------------------------------|---------------------------------------------------------------------------|--------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |   Ended September 30,                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                            |   Ended September 30,                                                                                                                                                                                                                                                                                            |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    | 2009                                                                                                                                                                                                                                                                                    | 2008                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       | 2009 | 2008 |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Sales                              |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |  $                                          2,289,669                            |  $                                             892,400 |                                                                                                                                                                                                                                            |  $                                      6,280,044                                                                            |  $                                              3,937,573 |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Cost of sales                      |                                                                      |                                                                                 |                                             (1,624,416)                 |                                               (716,163)                |                                                                                                                                                                                                                                                                                    |                                       (4,723,694) |                                                (2,814,875)                           |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Gross profit                       |                                                                      |                                                                                 |                                                  665,253 |                                                 176,237 |                                                                                                                                                                                                                                                                                    |       1,556,350                                                                                                                                                                                                   |  1,122,698                                                                                                                                                                                                                                                                                                            |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Operating Expenses                 |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |
| General and adminstrative expenses |            726,982 |            249,682            |                                                                                                                                                                                                                                                                                                |       1,978,936                                                                                                                                                                                                                                                           |             611,189                                                                                                                                                                                                         |
| Stock based compensation           |                                                                      |            178,686            |                      -                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                    |         551,947                                                                                                                                                                                                                                 |                       -                                                                                                           |
| Selling expenses                   |                                                                      |                                                                                 |              28,491                                                                                                                                                                                                                |              65,526                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |         150,208                                                                                                                                                                                         |             224,150                                                                                                                                                                                                                                            |
| Research and development           |                                                                      |              29,370 |              28,755                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |           79,332                                                                                                                                                                                                                      |               74,044                                                                                                                                                      |
| Total Operating Expenses           |                                                                      |            963,529            |            343,962                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                    |       2,760,423                                                                                                                                                                                                                                           |             909,382                                                                                                                                                                 |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Operating Income (loss)            |                                                                      |          (298,276)                      |          (167,726)                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                    |     (1,204,073)                                                                                                                                                                                                                                                     |             213,316                                                                                                                                                                 |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Interest Income (expenses)         |                                                                      |          (114,109)                      |            (53,126)                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                    |        (303,213)                                                                                                                                                                                                                                     |             (42,423)                                                                                                                                                                |
| Other income (expenses)            |                                                                      |            (51,189)           |               7,894                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                    |          (51,189)                                                                                                                                                                                                                          | 7,894                                                                                                                                                                                                                                           |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Income (loss) before income taxes  |          (463,574)           |          (212,958)                      |                                                                                                                                                                                                                                                                                                |     (1,558,475)                                                                                                                                                                                                                                                                     |             178,786                                                                                                                                                                                                         |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Provision for income taxes         |                                                                      |              22,371 |            1,500                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                    |           45,859                                                                                                                                                                                                                      |             160,217                                                                                                                                                                 |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Net Income (loss)                  |                                                                      |                                                                                 |  $                                            (485,945)                 |  $                                           (214,458)                           |                                                                                                                                                                                                                                                                                    |  $                                   (1,604,334)            |  $                                                   18,569 |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Percentages:                       |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Sales                              |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                | 100%                                                                                                                                                                                                                                                                                                    | 100%                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            | 100%                                                                                                                                                                                                                                                                                                                       | 100% |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Cost of sales                      |                                                                      |                                                                                 | 71%                                                                                                                                                                                                                                                                                                 | 80%                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                    | 75%                                                                                                                                                                                                                                             | 71%                                                                                                                                                                                                                                                                                                                        |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Gross profit                       |                                                                      |                                                                                 | 29%                                                                                                                                                                                                                                                                                                 | 20%                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                    | 25%                                                                                                                                                                                                                                             | 29%                                                                                                                                                                                                                                                                                                                        |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Operating Expenses                 |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |
| General and adminstrative expenses | 32%                                                                       | 28%                                                                                  |                                                                                                                                                                                                                                                                                                | 32%                                                                                                                                                                                                                                                                                                     | 16%                                                                                                                                                                                                                                                                                     |
| Stock based compensation           |                                                                      | 8%                                                                                   | 0%                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                    | 9%                                                                                                                                                                                                                                                                                      | 0%                                                                                                                                                                                                                                              |
| Selling expenses                   |                                                                      |                                                                                 | 1%                                                                                                                                                                                                                                                                                                  | 7%                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                    | 2%                                                                                                                                                                                                                                              | 6%                                                                                                                                                                                                                                                                                                                         |
| Research and development           |                                                                      | 1%                                                                                   | 3%                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                    | 1%                                                                                                                                                                                                                                                                                      | 2%                                                                                                                                                                                                                                              |
| Total Operating Expenses           |                                                                      | 42%                                                                                  | 38%                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                    | 44%                                                                                                                                                                                                                                                                                     | 24%                                                                                                                                                                                                                                             |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Operating Income (loss)            |                                                                      | -13%                                                                                 | -18%                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    | -19%                                                                                                                                                                                                                                                                                    | 5%                                                                                                                                                                                                                                              |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Interest Income (expenses)         |                                                                      | -5%                                                                                  | -6%                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                    | -5%                                                                                                                                                                                                                                                                                     | -1%                                                                                                                                                                                                                                             |
| Other income (expenses)            |                                                                      | -2%                                                                                  | 1%                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                    | -1%                                                                                                                                                                                                                                                                                     | 0%                                                                                                                                                                                                                                              |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Income (loss) before income taxes  | -20%                                                                      | -23%                                                                                 |                                                                                                                                                                                                                                                                                                | -25%                                                                                                                                                                                                                                                                                                    | 4%                                                                                                                                                                                                                                                                                      |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Provision for income taxes         |                                                                      | 1%                                                                                   | 0%                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                    | 1%                                                                                                                                                                                                                                                                                      | 4%                                                                                                                                                                                                                                              |
|                               |                                                                      |                                                                                 |                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                       |   |   |
| Net Income (loss)                  |                                                                      |                                                                                 | -21%                                                                                                                                                                                                                                                                                                | -24%                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                    | -26%                                                                                                                                                                                                                                            | 0%                                                                                                                                                                                                                                                                                                                         |

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|                                                | Nine Months Ended September 30, |
|-----------------------------------------------------|---------------------------------|
|                                                | 2009                            |   | 2008 |
|                                                |                            |
| Net cash (used in) provided by operating activities | $                               | (802,570) |   | $ |           (4,546,727) |
| Net cash (used in) provided by investing activities |                          |              (3,190,319) |   |   |           (6,335,555) |
| Net cash (used in) provided by financing activities |                          |             346,764 |   |   |            9,479,820 |
| Effect of exchange rate changes on cash             |                          |              (5,233) |   |   | 70,969 |
| Net increase (decrease) in cash                     | $                               |             (3,651,358) |   | $ | (1,331,493) |
| Cash at beginning of period                         |                          |             4,874,044 |   |   |               2,619,176 |
| Cash at end of period                               | $                               |             1,222,686 |   | $ |         1,287,683 |

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g. 

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|      |   |                                                                                                                                                                                        |   |          |   | Incorporated by Reference |   |
|-----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|-------------------------------------|--------|
| ExhibitNo |   | Exhibit Title                                                                                                                                                                          |   | FiledHerewith |   | Form                                |   | ExhibitNo. |   | File No. |   | FilingDate |   |
| 31.1      |   | Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14 and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                     |   | X             |   |                                |   |   |   |   |   |   |   |
| 31.2      |   | Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14 and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                     |   | X             |   |                                |   |   |   |   |   |   |   |
| 32.1      |   | Certification of Chief Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002  |   | X             |   |                                |   |   |   |   |   |   |   |

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|   |                                  |   |
|--------|---------------------------------------|--------|
|   |   Apollo Solar Energy, Inc. |

----