Harbin
Electric Reports Significantly Higher Second-Quarter Earnings
 
 
 Harbin, China, August
9, 2010–Harbin Electric,
Inc.(“Harbin Electric”or the “Company”, NASDAQ: HRBN),a leading developer and manufacturer of
a wide array of electric motors in the People’s Republic of China, today reported its
financial results for the second quarter of 2010.
 
 Financial Highlights
 §
              Total revenues were$105.44 million, up 175% from $38.36 million in
      2Q09
 §
              Operating income totaled $28.08
      million, up 219% from $8.82 million in
  2Q09
 §
              Adjusted net income attributable
      to controlling interest was $24.02million,up 224%compared to $7.42 million in
      2Q09
 §
              GAAP earnings per diluted share
      attributable to controlling interest were $0.82, comparedtoa net loss of $0.24 in
      2Q09
 §
              Adjusted earnings per diluted
      share attributable to controlling interest were $0.77 per diluted share,
      comparedto$0.33 in
      2Q09
 
 Quarterly Financial
Summary:
 
 2Q10
                      
                      
                      
                      2Q09
                      
                      
                      YoY% ChangeRevenue
                      
                      $
                      105,435,970
                      
                      
                      $
                      38,363,484
                      
                      
                      
                      175
                      %Gross
      Profit
                      
                      $
                      35,332,187
                      
                      
                      $
                      12,863,276
                      
                      
                      
                      175
                      %Gross
      Profit Margin
                      
                      
                      33.51
                      %
                      
                      
                      33.53
                      %Operating
      Income
                      
                      $
                      28,083,350
                      
                      
                      $
                      8,815,820
                      
                      
                      
                      219
                      %Operating
      Margin
                      
                      
                      26.64
                      %
                      
                      
                      22.98
                      %Net
      Income Attributable to Controlling Interest
                      
                      $
                      25,674,804
                      
                      
                      $
                      (5,419,364
                      )
                      
                      NAAdjusted
      Net Income Attributable to Controlling Interest*
                      
                      $
                      24,017,347
                      
                      
                      $
                      7,422,866
                      
                      
                      
                      224
                      %Adjust
      Net Margin*
                      
                      
                      22.78
                      %
                      
                      
                      19.35
                      %Diluted
      EPS Attributable to Controlling Interest
                      
                      $
                      0.82
                      
                      
                      $
                      (0.24
                      )
                      
                      NAAdjusted
      Diluted EPS Attributable to Controlling Interest*
                      
                      $
                      0.77
                      
                      
                      $
                      0.33
                      
                      
                      
                      131
                      %
 *See Reconciliation of non-GAAP measure
to GAAP net income. Also see “About Non-GAAP Financial
Measures”toward the end of
this release
  1
  “We are very pleased withour outstanding secondquarter earnings,”said Mr. Yang, Chairman and Chief
Executive Officer of Harbin Electric. “Adjusted net income,bywhich we judge our managementperformance, was up 224% year-over-year at $24.02million.We have made remarkable progress in the
restructuring andintegration of
Xi’an Tech Full Simo Motor, whichhas led to a significant
improvement in our operating efficiency. During this quarter, we restructured itssubsidiaries, acquiring full ownership in four
partially owned subsidiaries and disposing of non-strategic businesses.  This
brings us enhanced synergies across our diversifiedproduct lines and strengthensprofit margins and earnings
power. While our top line benefited from the acquisition of Xi’an Tech Full Simo Motor, earlier
strategic movescontinued to add to
revenues. Weihai revenues wereup 39% and oil pumps and coal
transportationprojectperformed
strongly.”
 
 Revenues
 For the second quarter of 2010, total
revenues were $105.44 million, up 175% compared with $38.36 million in the
second quarterof 2009,
which was negatively impacted by the global financial crisis. The significant
sales growth was mainly the result of higher sales across all product lines and
a contribution of $44.57 million from Xi’an Tech Full Simo which was acquired in
October2009. Excluding the acquisition,
organic growth was 59% year over year.
 
 By product line, linear motor sales were
up 76% driven by higher oil pump sales (150 units in the second quarter of 2010
compared to 105 units in the second quarter of 2009) and revenues from coal transportation project
($5.31 million), which started to contribute in the fourth quarter of 2009.
Sales of specialty micro motors were up 77% from the second quarter of 2009.
Sales of industrial rotary motors increased from $17.00 millionto $68.12 million including $44.57
million from Xi’an Tech Full Simo. Sales of rotary
motors at Weihai Tech Full Simo totaled $23.56 million for the quarter, up
39% compared with $17 million in the
second quarter of 2009.
 
 International sales totaled $5.60
million, or 5.3% of total sales, for the quarter, an increase of 56% compared
with $3.58 million in the second quarter of 2009, when the global economic
downturn hit our international business severely. The internationalsales growth was driven primarily by
increased sales in our specialty micro motor and rotary motor
products.
 
 The following table presents the revenue
contribution by percentage for each major product line in the second quarter of
2010 in comparison with the
second quarter of 2009.
 
 Percent of Total
      RevenuesProduct
Line
                    
                    
                    2Q10
                    
                    
                    
                    2Q09Linear Motors and Related
      Systems
                    
                    
                    19.1
                    %
                    
                    
                    30.0
                    %Specialty
    Micro-Motors
                    
                    
                    14.4
                    %
                    
                    
                    22.3
                    %Rotary
    Motors
                    
                    
                    64.6
                    %
                    
                    44.3
                    %Weihai
                    
                    
                    22.3
                    %
                    
                    
                    44.3
                    %Xi’an
                    
                    
                    42.3
                    %
                    
                    
                    NAOthers
                    
                    
                    1.9
                    %
                    
                    
                    3.4
                    %Total
                    
                    
                    100
                    %
                    
                    
                    100
                    %International
Sales
                    
                    
                    5.3
                    %
                    
                    
                    9.3
                    %
  2
 
 Net Income
 The Company recorded a net income
attributable to controlling interest of $25.67 million ($0.82 per diluted
share), compared with a net loss of $5.42 million (a loss of $0.24 per diluted
share) in the second quarterof 2009, which included a non-cash
charge of $14.01 million due to change in fair value of the warrants issued with
our 2010 Notes and our 2012 Notes.
 
 During the second quarter,
Xi’an Tech Full Simo acquired all of the
equity interests in four of its non-wholly-owned subsidiaries.These acquisitions contributed $2.03
million ($0.06 per dilutedshare) to the total net income attributable to controlling interest for the
quarter.
 
 Excluding the $1.66 million non-cash gain
due to change in fair value of warrants, the adjusted net income for the quarter
was $24.02 million ($0.77 per diluted share). This compares to the adjusted net
income of $7.42 million ($0.34per diluted share) for thequarter ended June 30, 2009, which
excluded a $14.01 million non-cash charge due to change in fair value of
warrants and a $1.17 million (RMB 8 million) government grant. This is a 224% increase
year-over-year. The higher adjusted net income of the
current period was
primarily driven by higher sales across all product lines, contributions from
Xi’an Tech Full Simo, and higher other
income.
 
 The adjusted net profit margin increased
to 22.78% in the current quarter from
19.35% in the second quarter of
2009,reflecting a
significant improvement in operating efficiency as a result of business
integration and consolidation.
 
 The following table provides the
non-GAAP financial measure and a reconciliation of the non-GAAP measure to the
GAAP net income.
 
 2Q10
                  
                  
                  
                  2Q09Net
      Income Attributable to Controlling Interest
                  
                  $
                  25,674,804
                  
                  
                  $
                  (5,419,364
                  )Add
      back (Deduct):Other
      Income – Government Grant
                  
                  $
                  0
                  
                  
                  $
                  (1,172,560
                  )Change
      in fair value of warrant
                  
                  $
                  (1,657,457
                  )
                  
                  $
                  14,014,790Adjusted
      Net Income Attributable to Controlling Interest
                  
                  $
                  24,017,347
                  
                  
                  $
                  7,422,866Diluted
      EPS Attributable to Controlling Interest
                  
                  $
                  0.82
                  
                  
                  $
                  (0.24
                  )Add
      back (Deduct):Other
      Income – Government Grant
                  
                  $
                  0
                  
                  
                  $
                  (0.05
                  )Change
      in fair value of warrant
                  
                  $
                  (0.05
                  )
                  
                  $
                  0.63Adjusted
      EPS Attributable to Controlling Interest
                  
                  $
                  0.77
                  
                  
                  $
                  0.34
 
 
 3
  Gross
Profit Margin
 The
following table presents the average gross profit margin by product line for the
second quarter of 2010, in comparison to the second quarter of
2009.
 Gross Profit
      MarginProduct
Line
                              
                              
                              2Q10
                              
                              
                              
                              2Q09Linear Motors and Related
      Systems
                              
                              
                              60.9
                              %
                              
                              
                              56.9
                              %Specialty
    Micro-Motors
                              
                              
                              37.1
                              %
                              
                              
                              40.4
                              %Rotary
    MotorsWeihai
                              
                              
                              12.2
                              %
                              
                              
                              13.2
                              %Xi’an
                              
                              
                              30.9
                              %
                              
                              
                              NAOthers
                              
                              
                              38.3
                              %
                              
                              
                              48.0
                              %Corporate
      Average
                              
                              
                              33.5
                              %
                              
                              
                              33.5
                              %
 
 The
overall gross margin remained stable. By product line, higher gross margin for
linear motors is attributable to increased sales of oil pumps and sales of
linear motor systems for coal transportation, which have higher gross margin
relative to other types of linear motors. The gross margin for specialty
micro-motors declined slightly primarily as a result of moving the production
from Harbin to Shanghai, where manufacturing costs such as labor and fixed costs
are relatively higher, particularly at the start-up stage. The slight decline in
gross margin for the rotary motor business was related to a combination of
factors such as higher raw material costs and changes in product
mix.
 
 Operating
Income
 Operating
income in the second quarter of 2010 totaled $28.08 million, compared with $8.82
million in the second quarter of 2009, representing a 219% year over year
growth. Higher operating income was mainly due to increased sales, the
acquisition of Xi’an Tech Full Simo, and improved operating efficiency. Total
operating costs including selling, general and administrative (“SG&A”)
expenses and research & development (R&D) expenses totaled $7.25
million, compared with $4.05 million a year ago. The higher operating costs were
mainly due to the addition of Xi’an Tech Full Simo, higher expenses related to
higher sales such as shipping and handling costs, higher depreciation expense,
and higher costs associated with the production start-up at our Shanghai
facility. As a percentage of total sales, total operating costs decreased from
10.6% to 6.9%. Operating margin improved to 26.6% in the current quarter from
23.0% in the second quarter of 2009, reflecting a significant improvement in
operating efficiency as a result of business integration and
consolidation.
 
 Loss from Disposal of
Subdivision
 Effective April 1, 2010, Xi’an Tech Full Simo sold its equity
interests in three of its non-wholly-owned subsidiaries. As a result of the
dispositions, a net loss of $623,158wasrecorded in loss from disposal of
subdivisions, net of income taxes, in the Company’s Consolidated Statementsof Operations.
 
 Interest Expense
 Net interest expense was $0.98 million
for the current quarter. This included $0.45 millioninamortization of debt discount and debt
issuance cost in connection with the Company’s 2012 Notes issued in 2006, $0.70
millionininterest expense and $0.21
millionininterest income. This compares to net
interest expense of $0.84 million for the second quarter of 2009. In all periods, net
interest expense included non-cash amortization expense of debt discount and
debt issuance cost.
  4
 Income Taxes
 The income tax provision was $3.79
million for the current quarter, compared with $1.48 million for the
second quarter of 2009. The
year-over-year increase in income tax was mainly attributable to the taxable
income contributed by Xi’an Tech Full Simo that was acquired in
October 2009, higher income due to the start-up of Shanghai Tech Full in the
fourth quarterof 2009, and higher income at ourHarbinand Weihai
facilities.
 
 Outlook
 “Despite concerns about the slowing down
of the Chinese economy, we continue to see strong demand for many of our
products.   As we expect continued strongorder volumefor our rotary motors, our focus in the months ahead
is to addressproductioncapacity constraints at our
Weihai andXi’anfacilities. In our specialty motor
lines including linear motors andspecialty micro-motors, wherespeed of product
development and market launchisthekey tofuturegrowth, we havemade substantial capital
investments.We believe that capacity expansion and theexpected and long-awaited launch of new
products, coupled with our success in business integration, restructuring, and
consolidation,willhelp us further extendour leadership position in
the industry. ”
 
 Conference Call
Details
 
 The
Company will host a conference call to discuss the second quarter 2010 financial
results at 8:30 a.m. ET on Monday, August 9th, 2010. Tianfu Yang, Chairman and
Chief Executive Officer, Zedong Xu, Chief Financial Officer, and Christy Shue,
Executive Vice President, Finance will be on the call.
 
 To
participate in the conference call, please dial any of the following
numbers:
 
 USA:
                    1-888-208-1812International:
                    1-719-457-2710North
      China:
                    10-800-714-1202South
      China:
                    10-800-140-1181
 The
conference ID for the call is 4760224.
 
 A replay
of the call will be available beginning at 12:00 PM ET on August 9th, 2010 and
will remain available through 12:00 PM ET on August 23, 2010.
 
 To access
the replay, please dial any of the following numbers:
  USA:
                      1-888-203-1112International:
                      1-719-457-0820Passcode:
                      4760224
 5
  This
conference call will be broadcast live over the Internet. To listen to the live
webcast, go to http://www.harbinelectric.com and click on "Harbin Electric Q2
2010 Financial Results Conference Call." The replay of the webcast will be
available for 30 days and will be archived on the Investor Kits page of the
website after 30 days.
 
 About
Non-GAAP Financial Measures
 The
management of Harbin Electric uses non-GAAP adjusted net earnings to measure the
performance of the Company’s business internally by excluding non-recurring
items as well as special non-cash charges.  The Company’s management
believes that these non-GAAP adjusted financial measures allow the management to
focus on managing business operating performance because these measures reflect
the essential operating activities of Harbin Electric and provide a consistent
method of comparison to historical periods. The Company believes that providing
the non-GAAP measures that management uses internally to its investors is useful
to investors for a number of reasons. The non-GAAP measures provide a consistent
basis for investors to understand Harbin Electric's financial performance in
comparison to historical periods without variations caused by non-recurring
items and non-operating related charges. In addition, it allows investors to
evaluate the Company's performance using the same methodology and information as
that used by the management. Non-GAAP measures are subject to inherent
limitations because they do not include all of the expenses included under GAAP
and because they involve the exercise of judgment of which charges are excluded
from GAAP financial measure. However, the management of Harbin Electric
compensates for these limitations by providing the relevant disclosure of the
items excluded.
 
 About
Harbin Electric, Inc.:
 Harbin
Electric, headquartered in Harbin, China, is a leading developer and
manufacturer of a wide array of electric motors with a focus on innovative,
customized, and value-added products. Its major product lines include industrial
rotary motors, linear motors, and specialty micro-motors. The Company's products
are purchased by a broad range of domestic and international customers,
including those involved in the energy industry, factory automation, food
processing, packaging, transportation, automobile, medical devices, machinery
and tool manufacturing, chemical, petrochemical, as well as in the metallurgical
and mining industries. The Company operates four manufacturing facilities in
China located in Xi'an, Weihai, Harbin, and Shanghai.
 
 Harbin
Electric has built a strong research and development capability by recruiting
talent worldwide and through collaborations with top scientific institutions.
The Company owns numerous patents in China and has developed award-winning
products for its customers. Relying on its own proprietary technology, the
Company developed an energy efficient linear motor driven oil pump, the first of
its kind in the world, for the largest oil filed in China. Its self-developed
linear motor propulsion system is powering China's first domestically made
linear motor driven metro train. As China continues to grow its industrial base,
Harbin Electric aspires to be a leader in the industrialization and technology
transformation of the Chinese manufacturing sector. To learn more about Harbin
Electric, visit http://www.harbinelectric.com.
 
 6
  Safe
Harbor Statement
 The
actual results of Harbin Electric, Inc. could differ materially from those
described in this press release. Detailed information regarding factors that may
cause actual results to differ materially from the results expressed or implied
by statements in this press release may be found in the Company's periodic
filings with the U.S. Securities and Exchange Commission, including the factors
described in the section entitled “Risk Factors” in its annual report on Form
10-K for the year ended December 31, 2009. The Company does not undertake any
obligation to update forward-looking statements contained in the press release.
This press release contains forward-looking information about the Company that
is intended to be covered by the safe harbor for forward-looking statements
provided by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that are not historical facts. These
statements can be identified by the use of forward-looking terminology such as
“believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,”
“intend,” or “anticipate” or the negative thereof or comparable terminology, and
include discussions of strategy, and statements about industry trends and the
Company's future performance, operations and products.
 
 For
investor and media inquiries, please contact:
 
 Christy
Shue
 Harbin
Electric, Inc.
 Executive
VP, Finance & Investor Relations
 Tel:   +1-631-312-8612
 Email:
IR@HarbinElectric.com
 
 Kathy
Li
 Christensen
Investor Relations
 Tel:   +1-212-618-1978
 Email:
kli@christensenir.com
 
 
 7
 
 
  HARBIN
      ELECTRIC, INC. AND SUBSIDIARIESCONSOLIDATED
      BALANCE SHEETSAS
      OF JUNE 30, 2010 AND DECEMBER 31, 2009  ASSETSJune
      30,
                                
                                
                                December
      31,2010
                                
                                
                                2009(Unaudited)CURRENT
      ASSETS:Cash
      and cash equivalents
                                
                                $
                                40,275,201
                                
                                
                                $
                                92,902,400Restricted
      cash
                                
                                
                                5,086,010
                                
                                
                                
                                3,522,009Notes
      receivable
                                
                                
                                317,814
                                
                                
                                
                                1,086,929Accounts
      receivable, net
                                
                                
                                95,484,435
                                
                                
                                
                                93,322,885Inventories,
      net
                                
                                
                                80,865,291
                                
                                
                                
                                74,913,877Other
      receivables & prepaid expenses
                                
                                
                                3,453,818
                                
                                
                                
                                5,828,453Advances
      on inventory purchases
                                
                                
                                13,255,272
                                
                                
                                
                                11,718,544Total
      current assets
                                
                                
                                238,737,841
                                
                                
                                
                                283,295,097PLANT
      AND EQUIPMENT, net
                                
                                
                                182,148,559
                                
                                
                                
                                156,364,548OTHER
      ASSETS:Debt
      issuance costs, net
                                
                                
                                77,319
                                
                                
                                
                                359,255Advance
      on non-current assets
                                
                                
                                24,167,429
                                
                                
                                
                                13,666,414Goodwill
      and other intangible assets, net
                                
                                
                                73,673,741
                                
                                
                                
                                75,546,225Other
      assets
                                
                                
                                1,216,471
                                
                                
                                
                                1,722,693Total
      other assets
                                
                                
                                99,134,960
                                
                                
                                
                                91,294,587Total
      assets
                                
                                $
                                520,021,360
                                
                                
                                $
                                530,954,232LIABILITIES AND SHAREHOLDERS'
      EQUITYCURRENT
      LIABILITIES:Notes
      payable - short term
                                
                                $
                                5,747,885
                                
                                
                                $
                                4,533,268Accounts
      payable
                                
                                
                                55,833,838
                                
                                
                                
                                47,099,135Short
      term loans
                                
                                
                                46,150,243
                                
                                
                                
                                44,439,629Customer
      deposits
                                
                                
                                15,136,028
                                
                                
                                
                                18,455,842Accrued
      liabilities and other payables
                                
                                
                                7,246,715
                                
                                
                                
                                12,329,394Taxes
      payable
                                
                                
                                9,012,807
                                
                                
                                
                                8,233,862Amounts
      due to original shareholders
                                
                                
                                736,500
                                
                                
                                
                                28,681,976Current
      portion of notes payable, net
                                
                                
                                5,083,486
                                
                                
                                
                                7,660,210Total
      current liabilities
                                
                                
                                144,947,502
                                
                                
                                
                                171,433,316LONG
      TERM LIABILITIES:Long
      term bank loans
                                
                                
                                -
                                
                                
                                
                                4,401,000Warrant
      liability
                                
                                
                                3,200,179
                                
                                
                                
                                4,623,558Total
      liabilities
                                
                                
                                148,147,681
                                
                                
                                
                                180,457,874COMMITMENTS
      AND CONTINGENCIESSHAREHOLDERS'
      EQUITY:Common
      Stock, $0.00001 par value, 100,000,000 shares authorized,31,067,471
      and 31,067,471 shares issued and outstandingas
      of June 30, 2010 and December 31, 2009, respectively
                                
                                
                                310
                                
                                
                                
                                310Paid-in-capital
                                
                                
                                213,216,504
                                
                                
                                
                                218,094,374Retained
      earnings
                                
                                
                                110,778,315
                                
                                
                                
                                69,594,111Statutory
      reserves
                                
                                
                                27,913,711
                                
                                
                                
                                22,869,423Accumulated
      other comprehensive income
                                
                                
                                20,051,102
                                
                                
                                
                                18,638,299Total
      shareholders' equity
                                
                                
                                371,959,942
                                
                                
                                
                                329,196,517NONCONTROLLING
      INTERESTS
                                
                                
                                (86,263
                                )
                                
                                
                                21,299,841Total
      liabilities and shareholders' equity
                                
                                $
                                520,021,360
                                
                                
                                $
                                530,954,232
 8




HARBIN
      ELECTRIC, INC. AND SUBSIDIARIESCONSOLIDATED
      STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOMEFOR
      THE THREE MONTHS AND SIX MONTHS ENDED  JUNE 30, 2010 AND
      2009(Unaudited)  Three
      Months Ended June 30
                  
                  
                  Six
      Months Ended June 302010
                  
                  
                  2009
                  
                  
                  2010
                  
                  
                  2009REVENUES
                  
                  $
                  105,435,970
                  
                  
                  $
                  38,363,484
                  
                  
                  $
                  210,921,127
                  
                  
                  
                  69,088,377COST
      OF SALES
                  
                  
                  70,103,783
                  
                  
                  
                  25,500,208
                  
                  
                  
                  139,846,870
                  
                  
                  
                  45,301,323GROSS
      PROFIT
                  
                  
                  35,332,187
                  
                  
                  
                  12,863,276
                  
                  
                  
                  71,074,257
                  
                  
                  
                  23,787,054RESEARCH
      AND DEVELOPMENT EXPENSE
                  
                  
                  362,783
                  
                  
                  
                  408,520
                  
                  
                  
                  956,978
                  
                  
                  
                  801,802SELLING,
      GENERAL AND  ADMINISTRATIVE EXPENSES
                  
                  
                  6,886,054
                  
                  
                  
                  3,638,936
                  
                  
                  
                  14,302,812
                  
                  
                  
                  6,143,840INCOME
      FROM OPERATIONS
                  
                  
                  28,083,350
                  
                  
                  
                  8,815,820
                  
                  
                  
                  55,814,467
                  
                  
                  
                  16,841,412OTHER
      EXPENSE (INCOME), NETOther
      income, net
                  
                  
                  (1,326,675
                  )
                  
                  
                  (2,100,885
                  )
                  
                  
                  (2,445,961
                  )
                  
                  
                  (2,640,264
                  )Interest
      expense, net
                  
                  
                  977,858
                  
                  
                  
                  842,528
                  
                  
                  
                  2,624,781
                  
                  
                  
                  2,283,912Loss
      from disposal of subdivision
                  
                  
                  623,158
                  
                  
                  
                  -
                  
                  
                  
                  623,158
                  
                  
                  
                  -Change
      in fair value of warrants
                  
                  
                  (1,657,457
                  )
                  
                  
                  14,014,790
                  
                  
                  
                  (1,423,379
                  )
                  
                  
                  11,441,369Total
      other (income) expense, net
                  
                  
                  (1,383,116
                  )
                  
                  
                  12,756,433
                  
                  
                  
                  (621,401
                  )
                  
                  
                  11,085,017INCOME
      BEFORE PROVISION FOR INCOME TAXES
                  
                  
                  29,466,466
                  
                  
                  
                  (3,940,613
                  )
                  
                  
                  56,435,868
                  
                  
                  
                  5,756,395PROVISION
      FOR INCOME TAXES
                  
                  
                  3,790,892
                  
                  
                  
                  1,478,751
                  
                  
                  
                  7,854,253
                  
                  
                  
                  2,521,425NET
      INCOME BEFORE NONCONTROLLING INTEREST
                  
                  
                  25,675,574
                  
                  
                  
                  (5,419,364
                  )
                  
                  
                  48,581,615
                  
                  
                  
                  3,234,970LESS:
      NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST
                  
                  
                  770
                  
                  
                  
                  -
                  
                  
                  
                  2,353,123
                  
                  
                  
                  -NET
      INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
                  
                  
                  25,674,804
                  
                  
                  
                  (5,419,364
                  )
                  
                  
                  46,228,492
                  
                  
                  
                  3,234,970OTHER
      COMPREHENSIVE INCOME (LOSS)Foreign
      currency translation adjustment
                  
                  
                  1,320,473
                  
                  
                  
                  (9,110
                  )
                  
                  
                  1,412,069
                  
                  
                  
                  (294,478
                  )Foreign
      currency translation adjustment attributable to noncontrolling
      interest
                  
                  
                  611
                  
                  
                  
                  -
                  
                  
                  
                  (191
                  )
                  
                  
                  -Change
      in fair value of derivative instrument
                  
                  
                  -
                  
                  
                  
                  (711,288
                  )
                  
                  
                  -
                  
                  
                  
                  (3,240,364
                  )COMPREHENSIVE
      INCOME
                  
                  $
                  26,995,888
                  
                  
                  $
                  (6,139,762
                  )
                  
                  $
                  47,640,370
                  
                  
                  
                  (299,872
                  )EARNINGS
      PER SHAREBasicWeighted
      average number of shares
                  
                  
                  31,067,471
                  
                  
                  
                  22,140,568
                  
                  
                  
                  31,067,471
                  
                  
                  
                  22,121,746Earnings
      per share before noncontrolling interest
                  
                  $
                  0.83
                  
                  
                  $
                  (0.24
                  )
                  
                  $
                  1.56
                  
                  
                  $
                  0.15Earnings
      per share attributable to controlling interest
                  
                  $
                  0.83
                  
                  
                  $
                  (0.24
                  )
                  
                  $
                  1.49
                  
                  
                  $
                  0.15Earnings
      per share attributable to noncontrolling interest
                  
                  $
                  -
                  
                  
                  $
                  -
                  
                  
                  $
                  (0.08
                  )
                  
                  $
                  -DilutedWeighted
      average number of shares
                  
                  
                  31,343,306
                  
                  
                  
                  22,140,568
                  
                  
                  
                  31,348,563
                  
                  
                  
                  22,350,126Earnings
      per share before noncontrolling interest
                  
                  $
                  0.82
                  
                  
                  $
                  (0.24
                  )
                  
                  $
                  1.55
                  
                  
                  $
                  0.14Earnings
      per share attributable to controlling interest
                  
                  $
                  0.82
                  
                  
                  $
                  (0.24
                  )
                  
                  $
                  1.47
                  
                  
                  $
                  0.14Earnings
      per share attributable to noncontrolling interest
                  
                  $
                  -
                  
                  
                  $
                  -
                  
                  
                  $
                  (0.08
                  )
                  
                  $
                  -