Tri-Tech Holding Reports Second Quarter 2012 Financial Results Conference Call on August 15, 2012 at 9:00 AM EDT

BEIJING, Aug. 14, 2012 /PRNewswire-Asia-FirstCall/ -- Tri-Tech Holding Inc. (Nasdaq: TRIT), a premier Chinese company that provides leading turn-key solutions for water resources management, water and wastewater treatment, industrial safety and pollution control announced today that revenues for the second fiscal quarter ended June 30, 2012 increased by 14.1% to $23 million from $20.2 million in Q2 2011. Net income for the quarter was $1.4 million, a 22.2% decrease from that of $1.8 million in Q2 2011. Diluted EPS was $0.17 compared to that of $0.21 in Q2 2011.

(Logo: http://photos.prnewswire.com/prnh/20100603/CNTH016LOGO )

The decrease in net income and EPS in Q2 2012 was due to the following several factors: (i) a substantial increase in operating expenses mainly due to employee headcount, which increased by 50%, and officers' options cost, which constituted 13.5% of general and administrative expenses, (ii) longer periods between contract awards and their implementation, and (iii) delayed revenue recognition from two of the Company's largest projects, the Ordos water processing plant and the India wastewater system.

Additional Second Quarter of 2012 Highlights

  • Revenue from Water Resource Management Systems and Engineering Services increased 264.5% to $8.4 million from $2.3 million in Q2 2011
  • Revenue from Industrial Pollution Control and Safety increased 459.2% to $6.3 million from $1.1 million in Q2 2011
  • Gross profit for the quarter was $5.8 million, a slight increase from $5.3 million in Q2 2011
  • Weighted average number of diluted shares outstanding was 8,207,427 for Q2 2012, compared to 8,202,784 for Q2 2011

Key Events in the Second Quarter of 2012

  • Won multiple flash flood early warning and hydrologic monitoring contracts collectively valued at $16.67 million in Heilongjiang, Fujian, Guizhou, Anhui, Shanxi, Shandong, Guangxi, Hebei, Qinghai and Gansu Provinces and Beijing
  • Awarded a natural gas field project valued at over $1.6 million in Turkmenistan
  • Awarded a water conservation irrigation project valued at $1.3 million for a township in Xinjiang

Financial Performance in the First Six Months of 2012

Revenues for the six months ended June 30, 2012 were $42.3 million, an increase of $4.5 million, or 11.9%, compared to $37.8 million in the same period of 2011. Gross profit was $11 million, compared to $10.3 million in the same period of 2011. Gross margin was 26.1%, compared to 27.3% in the same period of 2011. Operating income for the six months ended June 30, 2012 decreased from $5.5 million to $3.1 million. Net income attributable to the shareholders of TRIT was down 18.8% to $2.8 million, compared to $3.5 million in the same period of 2011. Diluted EPS was $0.34 compared to $0.42 for the same period of 2011.

Financial Performance in the Second Quarter of 2012

Revenues

Revenues for Q2 2012 were $23 million, an increase of $2.8 million, or 14.1%, from $20.2 million in the same period of 2011.

 

Revenue by Segment


Three months ended June 30,


2012

2011


$

% of
Total
Revenues

$

% of
Total
Revenues

Segment 1
(Water/Wastewater Treatment and Municipal Infrastructure)

8,354,428

36.3%

16,769,633

83.0%

Segment 2
(Water Resources Management Systems and Engineering Services)

8,436,000

36.6%

2,314,470

11.5%

Segment 3
(Industrial Pollution Control and Safety)

6,250,106

27.1%

1,117,784

5.5%

Total

23,040,534

100.0%

20,201,887

100.0%

Revenue from the Water/Wastewater Treatment and Municipal Infrastructure segment for the second quarter of 2012 was $8.4 million, a decrease by $8.4 million, or 50.2%, from $16.8 million in the same period of 2011. Revenue from this segment constitutes 36.3% of total revenues. The decrease was mainly due to delayed revenue recognition from the expansion phase of the Ordos drinking water plant project and the Indian Bihar municipal wastewater projects. The Ordos project contributed 8.1% of the total revenues for Q2 2012 compared to 79.5% of the total revenues in Q2 2011. In Q2 2012, as the initial phase project was completed, we recognized only $1.9 million of revenue from the expansion phase of the Ordos project, or 10% of the expansion phase contract value. By comparison, we recognized $16 million of revenue from the initial and expansion phases in Q2 2011. The Indian Bihar municipal wastewater projects, contributing $3.98 million, or 17.3%, of the Company's revenues in Q2 2012, were 25% completed as of the end of Q2 2012, which was also behind schedule.

Revenue from the Water Resources Management Systems and Engineering Services segment saw substantial growth of 264.5%, to $8.4 million from $2.3 million in Q2 2011, representing 36.6% of total revenues. The significant increase in this segment was due mainly to the strong revenue stream from the flash flood early warning and small river hydrologic monitoring projects awarded in the second quarter of 2012 and the timely implementation of projects awarded in previous quarters.

Revenue from the Industrial Pollution Control and Safety segment was $6.3 million, an increase of 459.2% from $1.1 million in Q2 2011, representing 27.1% of total revenues for Q2 2012. This increase was due primarily to an increase of revenues from the wastewater system contract for Xushui Dawangdian Industrial Park in Hebei and our international projects in Canada and Mexico. The Canada Fairmont Jasper Lodge water treatment project was near completion; the Xushui Dawangdian Industrial Park wastewater project was 40% completed; and the Mexican steel plant wastewater treatment project was 30% completed by the end of Q2 2012.

Gross Profit and Margin

Gross profit was $5.8 million for the quarter, slightly higher than that for Q2 2011. Gross margin for the quarter declined slightly from 26.3% for the second quarter of 2011 to 25.3% for the same period this year. The decrease was mainly due to the lower gross margin for the Indian municipal wastewater projects and the Xushui industrial park wastewater treatment project, which collectively constituted 35% of total revenues.

Total Operating Expenses

Total operating expenses for Q2 2012 were $4.2 million, or 18.2% of the total revenues, an increase of 76.2% from $2.4 million, or 11.8% of the total revenue for Q2 2011. The increase resulted from rising general and administrative expenses as the Company implements its growth plans amidst rising expenses.

  • Selling and Marketing Expenses

    In Q2 2012, total selling and marketing expenses increased by 98.2% from $0.5 million in Q2 2011 to $0.9 million. This was caused by our increased marketing development efforts to pursue new businesses and our growing sales forces.


  • General and Administrative Expenses

    General and administrative expenses increased by 72.5%, from $1.9 million in Q2 2011 to $3.2 million in Q2 2012. This increase was mainly due to increases in office expenses, utilities expenses, staff compensation and other related service expenses. We had a total headcount of 446 as of June 30, 2012, which represents an almost 50% increase over the headcount of 300 as of the same time last year. General and administrative expenses for Q2 2012 were approximately 14.1% of total revenues, compared with 9.3% in the same period last year.

Income from Operations

Income from operations totaled $1.6 million, a 44.3% decrease from $2.9 million in Q2 2011. Operating margin for Q2 2012 was 7.1%, compared to 14.5% in Q2 2011. The decrease in operating margin was a result of a flat gross margin and higher operating expenses.

Net Income and EPS

Diluted EPS was $0.17, based on net income of $1.4 million and weighted average number of diluted shares outstanding for the quarter ended June 30, 2012 of 8,207,427, compared to $0.21 in Q2 2011, based on net income of $1.8 million and weighted average number of diluted shares outstanding of 8,202,784 in Q2 2011.

Liquidity and Capital Resources

As of June 30, 2012, cash and cash equivalents, excluding restricted cash of $4.3 million, were $9.6 million. As of June 30, 2012, working capital was $9.0 million. We received $7.9 million from the Ordos water treatment plant build-transfer ("BT") contract in Q2 2012 and $3.1 million in July 2012. In the aggregate, $19 million in cash has been collected from the Ordos project as of the time of this announcement. We expect additional collection in the amount of $1.6 million by the end of Q3 2012.

As of June 30, 2012, the Company had aggregate lines of credit of $31.1 million, consisting of $12.7 million, $8.8 million and $9.6 million underwritten by Hangzhou Bank, ICBC Bank and CITIC Bank, respectively.

Projects Backlog and Pipeline

As of June 30, 2012, the Company's total project backlog was $79.2 million, which it expects to record in 2012 and onwards. The backlog included $41.9 million in the Water and Wastewater Treatment segment, $12.2 million in the Water Resource Management segment and $25.1 million in the Industrial Pollution Control segment.

Backlog by Segment



(In USD million)




June 30, 2012

March 31, 2012




$

% of
Total
Backlog

$

% of
Total
Backlog

%
Change

Segment 1
(Water/Wastewater Treatment and Municipal Infrastructure)

41.9

52.9%

49.3

56.9%

(15)

%

Segment 2
(Water Resources Management Systems and Engineering Services)

12.2

15.4%

14.2

16.4%

(14.1)

%

Segment 3
(Industrial Pollution Control and Safety)

25.1

31.7%

23.2

26.7%

8.2

%

Total

79.2

100.0%

86.7

100.0%

(8.7)

%

The Company is currently monitoring potential projects with a total expected value of $152.2 million, of which approximately $89.7 million is in Water and Wastewater Treatment, $23.1 million is in Water Resource Management and $39.4 million is in Industrial Pollution Control. The Company has not been awarded any of these projects, and there are no guarantees that it will be selected for any of such projects if and when it bids.

Fiscal 2012 Guidance Reaffirmation

Based on the performance in the second quarter of 2012 and the estimate for the remaining quarters, the Company reaffirms its previously announced guidance for fiscal 2012. Revenues are expected to be between $103 million to $128 million. Net income will likely be between $9.7 million and $12.1 million. Assuming the weighted average number of diluted shares remains the same, we expect our EPS to be between $1.18 and $1.47. These are the Company's targets, not predictions of actual performance. The foregoing statements regarding targets are forward-looking and actual results may differ materially.

Mr. Warren Zhao, Joint CEO of the Company, commented, "We continued to accomplish a moderate growth in the second quarter 2012. Although we reported stronger-than-expected results from our water resources management and industrial pollution control and safety segments, our municipal water and wastewater treatment business declined due to the slow progress on several key projects. The impact from the macroeconomic environment, including rising financing, labor and raw materials costs, as well as the weakened market demands, presented unprecedented challenges to our sales in the second quarter.

"To address the challenges, we are improving our profitability through enhanced corporate governance and cost efficiency. On the other hand, we also emphasize strategic market development where our core technological advantages allow us a competitive edge over our competitors. In addition, we will grow our market share in the water and wastewater treatment segment overseas in order to diversify our revenue stream portfolio."

Recent Business Developments

Domestic Projects

By the end of the second quarter, the initial phase of the Ordos project was completed, and the expansion phase contract was 80% completed, including civil construction and procurement of equipment and materials. Part of the equipment has been delivered to the project site and the installation has started. We expect to conduct the test runs of the expansion phase by the end of the third quarter.

For the Tianjin Airport Economic Zone Wastewater Treatment Plant expansion project, we delivered part of the equipment and made preparations on the project site.

We also had a breakthrough in the water quality monitoring market. Recently, we won a water quality testing equipment procurement contract for Water Quality Testing Center of Zhongwei City, Ningxia. The contract totaled $1.78 million.

We completed 40% of the construction for the wastewater treatment plant contract in Dawangdian Industrial Park in Xushui County, Hebei Province. We have completed the design stage of the project and have started equipment procurement and pipeline construction. In addition, we were awarded a $5.5 million contract of wastewater pipeline network construction for the Dawangdian industrial park wastewater treatment project.

In the second quarter, the order backlog from the Water Resources Management segment continued to increase. We won $8.6 million flash flood and small river hydrologic monitoring contracts in six provinces and have completed 70% of these projects, with part of the completed projects currently undergoing customer testing. In the third quarter so far, we have been awarded another $8.06 million worth of contracts in flash flood and small river hydrologic monitoring projects in ten provinces and municipality.

We continue to pursue opportunities in new business sectors such as information system upgrading for irrigation infrastructure. In the third quarter, we have successfully bid for $1.3 million worth contracts for agricultural irrigation water conservation project in Yelaman Township, Xinjiang.

International Projects

In addition to the domestic market, we also pursue business in overseas markets.

The India Bihar project progressed in the second quarter but fell behind schedule. We have largely completed the survey of proposed sewerage pipe network and sewage treatment plants, soil testing, pipeline design, and engineering of sewerage treatment plants. Currently, we are negotiating subcontracting and materials procurement. We completed the Canada Jasper Lodge water treatment project and it is undergoing a trial run.  

For the Qatar project of seawater desalination unit, we completed most of the detailed engineering work. For the water treatment project for the Mexico steel plant, the engineering drawing has been submitted to the customer for review and approval. For the South Yolotan-Osman gas field project in Turkmenistan, we have completed the design of the security component and the ordering of the communication component.

Research and Development

In the second quarter, we continued our research and development of zero liquid discharge system for industrial wastewater treatment. Our Baoding facility is being established for the purpose of researching and developing applications of ZLD technologies. Part of the Baoding facility has been completed and put to use in the first quarter. We established a ZLD technology team and completed the preparation for lab experimentation in that space. Other parts and aspects of the facility are undergoing construction, such as exterior land leveling, landscaping, utilities and interior decoration for the completed main structures of the office building and staff dormitory.

Research and development of the membrane technology and applications in the municipal water and wastewater treatment segment will be one of our main focuses in the following quarters. To that end, we actively seek partnerships and potential domestic acquisition opportunities emphasizing proprietary technologies.

We continued to conduct market surveys and analysis to assess domestic market demand for forward osmosis membrane products, with a focus on products used in military and mine safety and rescue settings.

Conference Call

Our Joint CEOs, Warren Zhao and Gavin Cheng, President Phil Fan and CFO Peter Dong will host a conference call at 9:00 AM EDT, Aug 15, 2012 (9:00 PM Beijing/Hong Kong Time, Aug 15, 2012) to review the Company's financial results, growth strategies and to respond to questions and comments.

To participate, call U.S. Toll Free Number +1 (888) 846-5003 approximately 10 minutes before the call. International callers, please dial +1 (480) 629-9856. The conference ID number is 4558990. A live webcast of the call will be available at http://p2.viavid.com/player/index.php?id=101414. Both an MP3 file one hour after the call and a transcript 48 hours after the call will be available. These will be archived for 90 days and accessible via www.tri-tech.cn.

About Tri-Tech Holding Inc.

Tri-Tech designs customized sewage treatment and odor control systems for municipalities and private sectors in China and international markets. These systems combine software, information management systems, resource planning and local and distant networking hardware that includes sensors, control systems, programmable logic controllers, supervisory control and data acquisition systems. The company also designs systems that track natural waterway levels for drought control, monitor groundwater quality and assist the Chinese government in managing its water resources. The company is also moving into the industrial pollution control market. Tri-Tech owns 39 software copyrights and 11 product patents, and employs 446 people. Please visit www.tri-tech.cn for more information.

An online investor kit including a company profile, presentations, press releases, current price quotes, stock charts and other valuable information for investors is available at www.tri-tech.cn/ir. To subscribe to future releases via e-mail alert, visit www.tri-tech.cn/ir/info/request.

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Tri-Tech Holding Inc.
www.tri-tech.cn
IR Department
+86 (10) 57323666
ir@tri-tech.cn

 

[Financial Tables Follow]

TRI-TECH HOLDING INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 



June 30, 2012


December 31, 2011



(Unaudited)



ASSETS





Current assets





Cash

$

9,562,563

$

11,935,746

Restricted cash


1,723,780


2,087,920

Accounts and notes receivable,
net of allowance for doubtful accounts of $859,405 and $619,062
as of June 30, 2012 and December 31, 2011, respectively


23,040,575


19,888,084

Unbilled revenue


21,011,695


7,254,830

Other receivables


4,183,816


2,761,548

Inventories


6,516,162


7,705,752

Deposits on projects


1,053,579


1,212,691

Prepayments to suppliers and subcontractors


8,654,805


4,908,697

Total current assets


75,746,975


57,755,268

Long-term unbilled revenue


57,183,407


59,298,740

Plant and equipment, net


1,542,846


1,436,838

Construction in progress


4,713,277


4,566,934

Intangible assets, net


11,179,975


11,609,662

Long-term restricted cash


2,554,376


2,541,958

Goodwill


1,441,278


1,441,278

Total Assets

$

154,362,134

$

138,650,678

LIABILITIES AND EQUITY





Current liabilities





Accounts payable

$

8,049,201

$

11,401,187

VIE notes payable


302,313


1,176,197

Costs accrual on projects


23,860,658


19,402,047

Advance from customers


3,144,861


1,886,607

Other payables


1,828,578


1,659,532

Amount due to noncontrolling interest investor


7,247,545


6,057,250

Other taxes payable


5,551,460


3,067,350

Accrued liabilities


418,103


379,357

Payable on investment consideration


582,966


895,000

Income taxes payable


73,337


154,519

Deferred income taxes


1,021,991


358,519

Short-term bank borrowing
(including VIE short-term borrowing of the
consolidated VIEs without recourse to
Tri-Tech Holdings of $3,678,103 and $2,296,895
as of June 30, 2012 and December 31, 2011, respectively)


14,745,472


8,010,365

Total current liabilities  


66,826,485


54,447,930

Long-term bank borrowing


20,406


-

Noncurrent deferred income taxes


3,264,929


3,455,823

Total Liabilities


70,111,820


57,903,753

Equity





Tri-Tech Holding Inc. shareholders' equity





Ordinary shares ($0.001 par value, 30,000,000 shares authorized; 8,233,506 and 8,203,299 shares issued as of June 30, 2012 and December 31, 2011, respectively)


8,233


8,203

Additional paid-in-capital


49,532,740


48,772,307

Statutory reserves


1,866,994


1,866,994

Retained earnings


22,491,398


19,682,386

Treasury shares (21,100 shares in treasury as of June 30, 2012 and December 31, 2011, respectively)


(193,750)


(193,750)

Accumulated other comprehensive income


4,682,402


4,593,046

Total Tri-Tech Holding Inc. shareholders' equity


78,388,017


74,729,186

Noncontrolling interests


5,862,297


6,017,739

Total shareholders' equity


84,250,314


80,746,925

Total liabilities and equity

$

154,362,134

$

138,650,678

 

TRI-TECH HOLDING INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)




For The Three Months Ended June 30,




2012


2011

Revenues






              System integration


$

21,741,770

$

19,883,553

              Hardware products



1,298,764


318,334

Total revenues



23,040,534


20,201,887

Cost of revenues






              System integration



16,608,958


14,622,576

              Hardware products



607,510


275,093

Total cost of revenues



17,216,468


14,897,669

Gross profit



5,824,066


5,304,218

Operating expenses:






              Selling and marketing expenses



935,853


472,150

              General and administrative expenses



3,247,546


1,882,432

              Research and development expenses



11,528


26,759

Total operating expenses



4,194,927


2,381,341

Income from operations



1,629,139


2,922,877

Other expense:






              Other income (expense)



410,889


(132,558)

              Interest income



40,770


46,446

              Interest expense



(559,158)


(6,955)

              Investment gain



73,149


-

Total other expenses



(34,350)


(93,067)

Income before provision for income taxes



1,594,789


2,829,810

Provision for income taxes



287,062


439,423

Net income



1,307,727


2,390,387

Less: Net (loss) income attributable to noncontrolling interests



(63,160)


628,699

Net income attributable to Tri-Tech Holding Inc. shareholders


$

1,370,887

$

1,761,688







Net income



1,307,727


2,390,387

Other comprehensive income






              Foreign currency translation adjustment



95,884


833,706

Comprehensive income



1,403,611


3,224,093

Less: Comprehensive income attributable to noncontrolling interests



(56,632)


721,172

Comprehensive income attributable to Tri-Tech Holding Inc.


$

1,460,243

$

2,502,921

Net income attributable to Tri-Tech Holding Inc. shareholders per share are:






              Basic


$

0.17

$

0.22

              Diluted


$

0.17

$

0.21

Weighted average number of ordinary shares outstanding:






              Basic



8,207,427


8,133,130

              Diluted



8,207,427


8,202,784


 


TRI-TECH HOLDING INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)



For The Six Months Ended June 30,



2012


2011

Revenues:





              System integration

$

40,274,432

$

35,754,047

              Hardware products


1,987,414


2,001,051

Total revenues


42,261,846


37,755,098

Cost of revenues





              System integration


30,193,175


26,273,325

              Hardware products


1,027,105


1,167,375

Total cost of revenues


31,220,280


27,440,700

Gross profit


11,041,566


10,314,398

Operating expenses:





              Selling and marketing expenses


1,774,846


786,323

              General and administrative expenses


6,100,906


3,949,226

              Research and development expenses


80,398


66,744

Total operating expenses


7,956,150


4,802,293

Income from operations


3,085,416


5,512,105

Other income (expenses):





              Other income (expense)


1,083,384


(150,787)

              Interest income


82,544


60,608

              Interest expense


(994,931)


(6,955)

              Investment gain


78,558


-

              Fair value change on contingent investment consideration


7,000


-

Total other income (expenses), net


256,555


(97,134)

Income before provision for income taxes


3,341,971


5,414,971

Provision for income taxes


601,555


845,059

Net income


2,740,416


4,569,912

Less: Net (loss) income attributable to noncontrolling interests


(68,596)


1,109,243

Net income attributable to Tri-Tech Holding Inc. shareholders

$

2,809,012

$

3,460,669






Net income


2,740,416


4,569,912

Other comprehensive income





              Foreign currency translation adjustment


289,237


1,347,203

Comprehensive income


3,029,653


5,917,115

Less: Comprehensive income attributable to noncontrolling interests


(48,203)


1,175,406

Comprehensive income attributable to Tri-Tech Holding Inc.

$

3,077,856

$

4,741,709

Net income attributable to Tri-Tech Holding Inc. shareholders per share:





              Basic

$

0.34

$

0.43

              Diluted

$

0.34

$

0.42

Weighted average number of ordinary shares outstanding:





              Basic


8,194,813


8,094,639

              Diluted


8,194,813


8,164,293

 

TRI-TECH HOLDING INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


For The Six Months Ended June 30,



2012


2011

Cash flows from operating activities:





Net income

$

2,740,416

$

4,569,912

Adjustments to reconcile net income to net cash
used in operating activities:





Amortization of option share-based compensation


530,588


183,977

Amortization of warrants share-based payments


-


30,327

Depreciation and amortization


582,513


385,846

Provision for doubtful accounts


243,367


183,428

Fair value change on contingent investment consideration


(7,000)


-

Gain on investment in joint venture


(78,558)


-

Deferred income taxes


472,578


363,266

Changes in operating assets and liabilities:





        Accounts and notes receivable


(3,492,534)


3,720,721

Unbilled revenue


(11,925,515)


(28,535,572)

        Other receivables


(907,482)


(663,056)

        Inventories


1,164,228


(1,543,043)

        Prepaid expenses


(145,032)


-

        Prepayments


(3,513,501)


(2,590,183)

        Accounts payable


(3,495,129)


553,880

        Notes payable


(871,833)


-

        Cost accrual on projects


4,560,906


7,827,724

        Customer deposits


1,392,326


963,528

        Other payables


2,336,813


2,829,968

        Other taxes payable


2,248,544


591,346

        Accrued liabilities


(67,136)


(54,171)

        Taxes payable


(66,531)


796,405 

Net cash used in operating activities


(8,297,972)


(10,385,697)

Cash flows from investing activities:





         Restricted cash


348,969


(541,012)

         Payment in business acquisition


(35,273)


(488,000)

         Cash acquired from business acquisition.


31,336


-

         Payable on investment consideration


(75,159)


-

         Payment to purchase plant and equipment


(205,204)


(67,962)

         Payment to purchase intangible assets


(36,970)


(164,952)

         Addition of construction in progress


(164,126)


(241,612)

         Collection of loan to third-party companies


665,885


-

         Payment of loan to third-party companies


(423,069)


(1,411,411)

Net cash provided by (used in) investing activities


106,389


(2,914,949)

Cash flows from financing activities:





         Proceeds from exercising options into ordinary shares


-


454,009

         Proceeds from bank borrowing


8,538,745


540,825

         Payment of bank borrowing


(1,753,987) 


-

         Capital injection by minority shareholder


-


1,545,213

         Payment of installment of purchasing vehicle


-


(15,344)

         Proceeds from loan from third-party companies


215,620


-

         Payment of loan from third-party companies


(379,499)


-

         Proceeds from amount due to noncontrolling interest investor


776,865 


-

 Payment of amount due to noncontrolling interest investor


(1,988,141)


-

Net cash provided by financing activities


5,409,603


2,524,703

Effect of exchange rate fluctuation on cash and cash equivalents


408,797


499,908

Net decrease in cash and cash equivalents


(2,373,183)


(10,276,035)

Cash and cash equivalents, beginning of period

$ 

11,935,746

$

23,394,995

Cash and cash equivalents, end of period

$

9,562,563

$ 

13,118,960

Supplemental disclosure of cash flow information:





     Income taxes paid

$

154,361

$ 

93,040

     Interest paid on debt

$ 

386,107

$

6,955






Supplemental disclosure of noncash investing activity:





Addition in land use right by transferring from long-term prepayment

$

-

$ 

5,547,907

Payable to purchase intangible assets during the business combination

$ 

-

$ 

735,000

Issued 30,207 and 35,974 ordinary shares as one of the
consideration in business combination

$ 

229,875

$ 

277,000

Fair value change on contingent consideration payable

$ 

7,000

$ 

-

Gain on long-term investment to India Joint Venture

$ 

78,558

$ 

-

 

SOURCE Tri-Tech Holding Inc.



RELATED LINKS
http://www.Tri-Tech.cn
http://www.tri-tech.cn/ir
http://www.tri-tech.cn/ir/info/request

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