UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 FORM 10-Q
 
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2009
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to .
 Asia Electrical Power International Group Inc.
  NEVADA
    
    0-51787
    
    98-0522960(State or other
    
    (Commission File No.)
    
    (IRS Employeejurisdiction of
    
    
    
    Identification No.)incorporation ororganization)
 E-4, Floor 3, Haijin Square  Taizi Road, Nanshan District, Shenzhen, PRC 518067
 86 755 2823 1993  (Issuer Telephone number)
 þ o
 þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o(Do not check if a smaller reporting company)
    
    Smaller reporting company þ
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PART I  FINANCIAL INFORMATION
 Item 1. Financial Statements.
 ASIA ELECTRICAL POWER INTERNATIONAL GROUP INC.
CONSOLIDATED BALANCE SHEETS
 June 30, 2009
    
    
    December 31, 2008(Unaudited)
    
    
    (Audited)Current Assets:Cash
    
    $
    3,048,326
    
    
    $
    3,013,900Accounts receivables
    
    
    3,264,925
    
    
    
    2,465,300Other receivables
    
    
    178,852
    
    
    
    141,203Advances to suppliers
    
    
    43,393
    
    
    
    66,351Inventory
    
    
    1,720,208
    
    
    
    2,290,470Total current assets
    
    
    8,255,704
    
    
    
    7,977,224Fixed AssetsLand use right
    
    
    2,756,429
    
    
    
    2,791,248Plant, property, and equipment
    
    
    7,830,770
    
    
    
    7,387,62810,587,199
    
    
    
    10,178,876Less: depreciation and amortization
    
    
    1,240,129
    
    
    
    1,056,603Net fixed assets
    
    
    9,347,070
    
    
    
    9,122,273Other Assets:Deposits
    
    
    618,890
    
    
    
    1,043,807Advances to affiliate
    
    
    920,500
    
    
    
    920,500Total other assets
    
    
    1,539,390
    
    
    
    1,964,307Total Assets
    
    $
    19,142,164
    
    
    $
    19,063,804LIABILITIES AND STOCKHOLDERS EQUITYCurrent Liabilities:Notes payable
    
    $
    
    
    
    $
    201,653Accounts payable
    
    
    3,624,592
    
    
    
    3,727,138Advances from customers
    
    
    1,229,333
    
    
    
    1,105,403Accrued liabilities
    
    
    309,259
    
    
    
    337,803Other liabilities
    
    
    692,048
    
    
    
    396,531Total current liabilities
    
    
    5,855,232
    
    
    
    5,768,528Convertible Note Payable
    
    
    1,377,502
    
    
    
    1,321,508Total Liabilities
    
    
    7,232,734
    
    
    
    7,090,036Stockholders Equity:Preferred stock: authorized 5,000,000 shares of
$0.001 par value; issued and outstanding,
5,000,000 shares
    
    
    5,000
    
    
    
    5,000Common stock: authorized 150,000,000 shares
of $0.001 par value; issued and outstanding,
51,959,693 shares
    
    
    51,960
    
    
    
    51,960Capital in excess of par value
    
    
    8,221,456
    
    
    
    8,221,456Paid in capital  stock options
    
    
    2,933,333
    
    
    
    2,933,333Accumulated deficit
    
    
    (324,739
    )
    
    
    (245,975
    )Earnings appropriated for statutory reserves
    
    
    183,749
    
    
    
    183,749Comprehensive income
    
    
    838,671
    
    
    
    824,245Total stockholders equity
    
    
    11,909,430
    
    
    
    11,973,768Tot Total Liabilities and Stockholders Equity
    
    $
    19,142,164
    
    
    $
    19,063,804
  2




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##### 



ASIA ELECTRICAL POWER INTERNATIONAL GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)
For the Three and Six Month Periods Ended June 30, 2009 and 2008
(Unaudited)
 Six Month Periods Ended June 30,
    
    
    Three Month Periods Ended June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenue
    
    $
    6,713,518
    
    
    $
    5,409,018
    
    
    $
    4,634,236
    
    
    $
    2,868,240Cost of Sales
    
    
    5,397,613
    
    
    
    4,517,773
    
    
    
    3,698,146
    
    
    
    2,413,172Gross Profit
    
    
    1,315,905
    
    
    
    891,245
    
    
    
    936,090
    
    
    
    455,068Expenses:Selling and Administrative
Expenses
    
    
    1,294,868
    
    
    
    621,624
    
    
    
    796,854
    
    
    
    315,443Operating Income
    
    
    21,037
    
    
    
    269,621
    
    
    
    139,236
    
    
    
    139,625Other Income (Expense):Interest expense
    
    
    (58,832
    )
    
    
    (3,688
    )
    
    

    (30,835
    )
    
    
    (1,930
    )Foreign exchange loss
    
    
    (61,148
    )
    
    
    
    
    
    
    (61,148
    )Interest income
    
    
    5,878
    
    
    
    4,303
    
    
    
    3,642
    
    
    
    2,311Other income
    
    
    61,771
    
    
    
    38,480
    
    
    
    37,378
    
    
    
    33,286Net income (expense)
    
    
    (52,331
    )
    
    
    39,095
    
    
    
    (50,963
    )
    
    
    33,667Income (Loss) before Income
Taxes
    
    
    (31,294
    )
    
    
    308,716
    
    
    
    88,273
    
    
    
    173,292Provision for Income Taxes:Current Provision
    
    
    (47,470
    )
    
    
    (25,048
    )
    
    
    (47,470
    )
    
    
    (17,050
    )Net Income (Loss) for the
Period
    
    
    (78,764
    )
    
    
    283,668
    
    
    
    40,803
    
    
    
    156,242Other Comprehensive Income -Foreign currency translation
adjustments
    
    
    14,426
    
    
    
    130,647
    
    
    
    1,394
    
    
    
    67,281Total Comprehensive
Income (Loss)
    
    $
    (64,338
    )
    
    $
    414,315
    
    
    $
    42,197
    
    
    $
    223,523Earnings (Loss) Per Share -Basic and Diluted
    
    $
    0.00
    
    
    $
    0.01
    
    
    $
    0.00
    
    
    $
    0.00Weighted average number of
shares outstanding
    
    
    51,959,693
    
    
    
    51,959,693
    
    
    
    51,959,693
    
    
    
    51,959,693
  3




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##### 



ASIA ELECTRICAL POWER INTERNATIONAL GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Month Periods Ended June 30, 2009 and 2008
 (Unaudited)
 2009
    
    
    2008CASH FLOWS FROM OPERATIONS:Net income (loss)
    
    $
    (78,764
    )
    
    $
    283,668Adjustments to reconcile net income (loss) to net cash
consumed by operating activities:Charges not requiring the outlay of cash:Depreciation and amortization
    
    
    182,283
    
    
    
    153,825Amortization of discount on convertible note
    
    
    55,994
    
    
    
    Changes in assets and liabilities:Increases in accounts receivable
    
    
    (787,655
    )
    
    
    (675,411
    )(Increase) decrease in other receivables
    
    
    (46,231
    )
    
    
    251,833Decreases in advances to suppliers
    
    
    23,055
    
    
    
    55,488Decrease (increase) in inventory
    
    
    573,538
    
    
    
    (259,579
    )Decrease in notes payable
    
    
    (201,976
    )
    
    
    Decreases in accounts payable
    
    
    (107,690
    )
    
    
    (324,039
    )Increase (decrease) in advances from customers
    
    
    122,441
    
    
    
    (224,476
    )Increase (decrease) in other payables
    
    
    292,468
    
    
    
    (1,441,332
    )Decreases in accrued liabilities
    
    
    (29,015
    )
    
    
    (15,628
    )Net Cash Consumed By Operating Activities
    
    
    (1,552
    )
    
    
    (2,195,651
    )CASH FLOWS FROM INVESTING ACTIVITIES:Release of guarantee fund
    
    
    203,664
    
    
    
    Purchases of fixed assets
    
    
    (438,843
    )
    
    
    (245,961
    )Increase in construction in progress
    
    
    
    
    
    
    (331,273
    )Decrease (increase) in deposits
    
    
    267,025
    
    
    
    (289,468
    )Funds set aside for collateral deposit
    
    
    
    
    
    
    (281,955
    )Net Cash Provided (Consumed) By Investing Activities
    
    
    31,846
    
    
    
    (1,148,657
    )CASH FLOWS FROM FINANCING ACTIVITIES:Borrowings under promissory note
    
    
    
    
    
    
    1,545,483Borrowings under bank credit facility
    
    
    
    
    
    
    939,848Net Cash Provided By Financing Activities
    
    
    
    
    
    
    2,485,331Exchange rate effect on cash
    
    
    4,132
    
    
    
    130,647Net change in cash
    
    
    34,426
    
    
    
    (728,330
    )Cash balance, beginning of period
    
    
    3,013,900
    
    
    
    2,920,073Cash balance, end of period
    
    $
    3,048,326
    
    
    $
    2,191,743
  4




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ASIA ELECTRICAL POWER INTERNATIONAL GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2009
(Unaudited)
 1. BASIS OF PRESENTATION
   2. NOTES PAYABLE AND RELATED WARRANTY DEPOSIT
  3. INCOME TAXES
  4. SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
   5




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
 Cautionary Notice Regarding Forward Looking Statements.
  Background
 Berita International
Corporation. Keiji International Group Inc. Asia Electrical Power International Group Inc. Agreement Naiji
 6




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Results of Operations
 June 30, 2009, compared to June 30, 2008
 Revenues
 Six months ended
    
    
    
    
    
    Six months endedJune 30, 2009
    
    % Sales
    
    June 30, 2008
    
    % SalesRevenue
    
    $
    6,713,518
    
    
    
    100
    %
    
    $
    5,409,018
    
    
    
    100
    %Cost of Sales
    
    
    5,397,613
    
    
    
    80
    %
    
    
    4,517,773
    
    
    
    84
    %Gross Profit
    
    $
    1,315,905
    
    
    
    20
    %
    
    $
    891,245
    
    
    
    16
    %
   Three months
    
    
    
    
    
    Three monthsended June 30,
    
    
    
    
    
    ended June 30,2009
    
    % Sales
    
    2008
    
    % SalesRevenue
    
    $
    4,634,236
    
    
    
    100
    %
    
    $
    2,868,240
    
    
    
    100
    %Cost of Sales
    
    
    3,698,146
    
    
    
    80
    %
    
    
    2,413,172
    
    
    
    84
    %Gross Profit
    
    $
    936,090
    
    
    
    20
    %
    
    $
    455,068
    
    
    
    16
    %
  7




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Selling and Administrative Expenses
    8




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Operating (Loss) Income
   Other Income (Expense)
  Income Taxes
  Income (Loss) before Income Taxes, Net Income (Loss) for the Period, Total Comprehensive Income (Loss), and Loss Per Share
   9




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Current Trends in the Industry
   Liquidity and Capital Resources
   Materials, Labor, Overhead
    
    $
    5,000,000Selling Expenses and Administrative Expenses
    
    $
    1,000,000Total
    
    $
    6,000,000
 Sources of Capital
  10




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Material Commitments
  Seasonal Aspect
  Off Balance Sheet Arrangements
  CRITICAL ACCOUNTING POLICIES
  NEW ACCOUNTING PRONOUNCEMENTS
    11




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Off-Balance Sheet Commitments and Arrangements
  Revenue Recognition
  Income Taxes
  12




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Item 3. Quantitative and Qualitative Disclosures about Market Risks
  Item 4. Controls and Procedures
  Changes in Internal Controls
  PART II  OTHER INFORMATION
 Item 6. Exhibits
 31.1
    
    Certification of Chief Executive Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 200231.2
    
    Certification of Chief Financial Officer pursuant to Section 302 of
the Sarbanes-Oxley Act of 200232.
    
    Certification of Chief Executive Officer and Chief Financial Officer
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 (Signatures appear on following page)
 13




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SIGNATURES
  ASIA ELECTRICAL POWER INTERNATIONAL GROUP INC.Date: August 14, 2009By:
    
    /s/ Yulong Guo

Yulong GuoPresident, Chief Executive Officer and DirectorBy:
    
    /s/ Yunbin LiYunbin LiChief Financial Officer
 14