On November 29, 2016, the Board of Directors of SmartHeat Inc. (the “Company”) accepted the resignation of Mr. Oliver Bialowons as President and member of the Board of Directors of the Company. On December 29, 2016, the Board of Directors of the Company appointed Kenneth Scipta as acting President of the Company.

Mr. Bialowon’s resignation is due to his other professional commitments and demands on his time, and not due to any disagreement with the Company on any matter related to the Company’s operations, policies or practices. The size of the Board was reduced to four directors effective December 29, 2016.

Mr. Scipta, age 74, was appointed to our Board of Directors and as Chairman of our Audit Committee on July 10, 2012. Mr. Scipta, a certified public accountant, has over 35 years of relevant accounting experience, and has served on several boards of directors. From 1993 to 1996, Mr. Scipta was the president and a board member of Mid-West Springs Manufacturing Company, a NASDAQ traded company, where he was responsible for day to day operations, planning, administration and financial reporting. Upon Mr. Scipta’s resignation he assumed the duties of president of the special products division, which included catalog sales, die springs and the development of international sales. Previously, from 1979-1993, Mr. Scipta served in various positions such as president, vice president of finance and vice president of sales and marketing for Mid-West’s primary subsidiary. From 1998 to 2006, Mr. Scipta was the chief executive officer and a board member of First National Entertainment Company, a multi-million dollar company traded on NASDAQ.

Mr. Scipta and the Company have not determined his compensation for his duties as acting President of the Company at this time.

With respect to the disclosure required by Item 401(d) of Regulation S-K, there are no family relationships between Mr. Scipta and any director or executive officer of PMI or Prosper Funding. With respect to Item 404(a) of Regulation S-K, there are no relationships or related transactions between Mr. Scipta and the Company that would be required to be reported.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

None.

About SMARTHEAT INC. (OTCMKTS:HEAT)

SmartHeat Inc. is a holding company. The Company, through its subsidiaries, designs, manufactures and sells heat pumps in the People’s Republic of China. The Company operates through the Heat Pump (HP) segment. Its HP segment subsidiaries produce heat pumps in sizes that have applications primarily in industrial. Its HP subsidiaries design and build specific to customer specifications and particular operating conditions. The Company’s products provide a solution to energy consumption and air pollution problems in China. The Company’s components generally include pumps, valves, pipes and electronic meters purchased from various international and domestic suppliers. The Company’s products are used in the industrial, residential and commercial markets. Its customer base consists of state-owned enterprises diversified across a range of end markets in China. The Company’s subsidiaries include Heat HP Inc. and Heat PHE Inc. Its subsidiaries produce heat pumps in Shenyang China.

SMARTHEAT INC. (OTCMKTS:HEAT) Recent Trading Information

SMARTHEAT INC. (OTCMKTS:HEAT) closed its last trading session 00.00000 at 0.00100 with 200 shares trading hands.