Conference Call Scheduled on November 20, 2013 at 9:00 AM EST
BEIJING, Nov. 19, 2013 /PRNewswire/ -- Tri-Tech Holding Inc. (Nasdaq:TRIT), which provides turn-key water resources management, water and wastewater treatment, industrial safety and pollution control solutions, announced its financial performance for the third quarter ended September 30, 2013.
(Logo: http://photos.prnewswire.com/prnh/20100603/CNTH016LOGO )
Tri-Tech CEO Phil Fan and CFO & COO Peter Dong will host a conference call at 9:00AM EST, November 20, 2013, (10:00PMBeijing/Hong Kong Time on November 20, 2013) to review the company's financial results and outlook of operations, to discuss our growth strategies and to respond to questions and comments.
To participate, call U.S. toll free number (877) 941- 2068 approximately 10 minutes before the call. International callers, please dial 1 (480) 629 - 9712. The conference ID number is 4652009. A live and archived webcast of the call will be available at http://public.viavid.com/index.php?id=106873.
In discussing third quarter results, Mr. Phil Fan, CEO of Tri-Tech Holding Inc., commented, "In an attempt to control costs, we implemented an8% reduction in headcount to control costs. Despite a decline in  revenues, our rigorous selection of projects improved our gross margin and payment collectability. With payments received from the Ordos projects, as well as the divestiture of the Baodi land, we paid off our corporate bond as well as a few other financial obligations to improve our debt ratios and cash positions. While noting some promising signs of improvement, we projected a potential loss from our project in Yelaman Township, Buerjin County, Xinjiang Uygur Autonomous Region. We recognized approximately $1.6 million  as  bad debt. Although currently delayed, our Indian projects, which originally were to be completed in November 2013, received an approval for extension from the client. The extension extended the completion of the projects to 2015.
Highlights from our third quarter 2013 performance include the following:
Cash and cash equivalents were approximately $12 million, an improvement of approximately $3.9 million when compared to the beginning of the period.
Operating activities generated approximately $1.9 million.
We achieved $9.1 million in revenues, a decline of 49.8% compared to $18.1 million from the same period in 2012.
Our cost of revenues was $6.8 million, a decline of 49.9% compared to $13.5 million from the same period in 2012.
Our loss from operations was $2.6 million, compared to a loss from operations of $0.28 million in the same period of 2012.
Our net loss was $1.2 million, compared to a net loss of $0.68 million in the same period of 2012.
Our Weighted average number of diluted shares outstanding was 8,215,536 compared to 8,407,085 the same period in 2012.
Our diluted loss per share was $0.15 compared to diluted loss per share of $0.08 in the same period of 2012.
2013 Q3 Financial Performance Metrics
Revenue
Our total revenues declined by 49.8%, compared to that from the same period last year. This decrease is primarily attributable to the Ordos and India projects. Revenue from the Ordos project decreased from $1,847,272 for the three months period ended September 30, 2012 to $0 in the same period 2013 because the project was substantially completed. The India projects didn't recognize revenue in the third quarter of 2013, mainly because of the client received India government permissions late, redesigns per the client's request and the recent rainy season. In the same period of 2012, the India projects recognized revenue of $4.1 million. We expect there will be project progress in the fourth quarter of 2013 or next year. In order to reduce cash flow pressures, we evaluated the projects we planned to bid on and elected not to bid on domestic build and transfer projects, which typically require significant investment and feature slower client payment periods.
For the nine months ended September 30, 2013, total revenues declined by 40.6%, compared to that from the same period last year. The nine-month decrease was mainly due to the our shift away from build and transfer projects and the progress in Ordos project and the India projects.
Gross Margin
Our gross margin increased from 25.7% in the third quarter of 2012 to 25.8% in the third quarter of 2013. The slight increase was attributed to our selection of projects and the improvement of project implementation.
Our gross margin decreased from 26.0% for the nine months ended of 2012 to 23.2% in the same period 2013. The decrease resulted from increases in material and equipment costs, labor subcontracting costs and shifting from build and transfer projects.
Selling and Marketing Expenses
Selling and marketing expenses consist primarily of compensation, marketing, travel and business entertainment expenses. In the third quarter of 2013, total selling and marketing expenses decreased by 40.7%, from $1,031,607 in the third quarter of 2012 to $611,776 in the same period of 2013. Compensation-related expenses decreased by 34.2% from $552,203 in the third quarter of 2012 to $363,134 in the same period of 2013 due to the downsizing. Our decreased headcount in sales also attributed to the decrease of traveling expenses, entertainment expenses and other expenses.
For the nine months ended September 30, 2013, total selling and marketing expenses decreased by 10.7%, from $2,806,453 in the first nine months of 2012 to $2,506,853 in the same period of 2013, mainly because of the downsizing and budget control. Compensation-related expenses increased by 6.0% from $1,260,994 for the nine months ended September 30, 2012 to $1,336,356 in the same period of 2013.  This increase was primarily attributable to the compensation expense for laying off selling and marketing employees. As to such employees, we expect such expenses are a one - time expense.
Selling and marketing expenses for the three months ended and nine months ended September 30, 2013 constituted approximately 6.7% and 7.0% of total revenues, respectively.
General and Administrative Expenses
General and administrative expenses consist primarily of compensation costs, rental expenses, professional fees, and other overhead expenses. General and administrative expenses increased by 4.7% from $3,908,026 in the third quarter of 2012 to $4,093,434 in the third quarter of 2013. Officers' salary expenses, salaries for mid-level management and other office staff, rental expenses and insurance expenses declined because of the downsizing and budget control. Other general and administrative expenses increased by 43.2% from the amount in the third quarter of 2012 to the amount in the third quarter of 2013, including office expenses, utilities, travel, communication, other services support and bad debt expenses. We had a $96,808 non-cash option expense as a part of other general and administrative expense in the third quarter 2013 and $421,376 in the same period of 2012. A bad debt $1,589,516 was recognized from Buerjin in the third quarter of 2013. We projected a potential loss from our project in Yelaman Township, Buerjin County, Xinjiang Uygur Autonomous Region due to a dispute over quality controls as the quality of materials purchased from one of the suppliers became questionable. Since the client, the supplier and we couldn't agree on the resolution of the issue, we determined that the potential risk exceeded our projection, and terminated the execution of the contract. Meanwhile, we started to seek solutions to protect and to defend our interests. Out of prudence, the Company recognized, in its worst case scenario, approximately $1.6 million as bad debt under General and Administrative Expenses. The Buerjin bad debt resulted in the final increase of the total general and administrative expenses.
General and administrative expenses decreased by 3.7% from $10,008,932 for the nine months ended September 30, 2012 to $9,635,485 in the same period of 2013. The officers' salaries expenses, salaries for mid-level management and other office staff, rental expenses and insurance expenses declined because of the downsizing and budget control. Other general and administrative expenses increased by 4.9% from the amount for the nine months ended September 30, 2012 to the amount in the same period of 2013, including mainly office expenses, utilities, travel, communication, other services support and bad debt expenses. We had a $331,966 non-cash option expense as a part of other general and administrative expense for the nine months ended September 30, 2013 and $951,964 in the same period of 2012.
General and administrative expenses for the three months and nine months ended September 30, 2013 constituted approximately 45.0% and 26.9% of total revenues, respectively.
General and administrative expenses for the three months and nine months ended September 30, 2012 constituted approximately 21.5% and 16.6% of total revenues, respectively.
Loss before Income Taxes
In the third quarter ended September 30, 2013, our net loss before provision for income taxes was $1,379,395, an increase of 59.4% compared to that of $865,198 in the same period of 2012. In the third quarter ended September 30, 2013, net loss attributable to the our shareholders was $1,230,576, an increase of 81.8%, from a net loss of $677,022 for the same period in 2012, mainly due to the significant decline of revenues.
For the nine months ended September 30, 2013, our net loss before provision for income taxes was $3,287,682, a decrease of 232.7% from net income of $2,476,774 in the same period in 2012. For the nine months ended September 30, 2013, net loss attributable to the our shareholders was $2,931,369, a decrease of 237.5% from net income of $2,131,990 for the same period in 2012, mainly due to the significant decline of revenue.
Liquidity and Capital Resources
Our liquidity and available capital resources are impacted by four key components: (i) cash and cash equivalents, (ii) operating activities, (iii) financing activities, and (iv) investing activities.
Cash and Cash Equivalents
As of September 30, 2013, our cash and cash equivalents amounted to $11,960,663. The restricted cash as of September 30, 2013 and December 31, 2012 amounted to $7,742,693 and $7,816,967, respectively, which are not included in the total amount of cash and cash equivalents. The restricted cash consisted of deposits as collateral for the issuance of letters of credit. Our subsidiaries that own these deposits do not have material cash obligations to any third parties. Therefore, the restriction does not impact our liquidity.
Operating Activities
Net cash provided by operating activities was $1,853,162 for the nine months ended September 30, 2013, compared with net cash used in operating activities of $17,011,378 in the same period in 2012. The increase of $18,864,540 in operating cash inflow was due to the receipt of $25.2 million from the Ordos project and prepayments on projects.
Investing Activities
Net cash provided by investing activities was $8,402,033 during the nine months ended September 30, 2013, an increase of $9,420,390 from net cash used in investing activities of $1,018,357 in the same period of 2012. The increase was attributed to the proceeds from the pending asset sale of Baoding in the amount of $8,926,705.
Financing Activities
The cash used in financing activities was $5,970,435 for the nine months ended September 30, 2013, compared to cash provided by financing activities of $18,160,085 in the same period of 2012. The decrease was due to the payment of bank borrowings, loans from third-party companies and noncontrolling shareholders. We have repaid the corporate bond with the funds received from the buyer of the land and property in Baoding .
Restricted Net Assets
Our ability to pay dividends is primarily dependent on receiving distributions of funds from our subsidiaries, VIEs and other affiliated entities, which is restricted by certain regulatory requirements. Relevant Chinese statutory laws and regulations permit payments of dividends by our Chinese affiliates only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, our PRC affiliates are required to set aside at least 10% of their after-tax profit after deducting any accumulated deficit based on PRC accounting standards each year to our general reserves until the accumulated amount of such reserves reach 50% of our registered capital. These reserves are not distributable as cash dividends. Our off-shore subsidiaries, TIS and Tri-Tech International Investment, Inc. ("TTII"), do not have material cash obligations to third parties. Therefore, the dividend restriction does not impact our liquidity. There is no significant difference between accumulated profit calculated pursuant to PRC accounting standards and our accumulated profit calculated pursuant to U.S. GAAP. As of September 30, 2013 and December 31, 2012, restricted retained earnings were $2,246,910 for both, and restricted net assets were $1,878,976 and $4,878,975, respectively. Unrestricted retained earnings as of September 30, 2013 and December 31, 2012 were $14,107,030 and $17,038,396, respectively, which were the amounts available for distribution in the form of dividends or for reinvestment.
Working Capital and Cash Flow Management
As of September 30, 2013, our working capital was $29,612,633, with current assets totaling $107,022,653 and current liabilities totaling $77,410,020.
We believe our current assets are sufficient to meet our capital requirements for the next 12 months. However, we may require additional cash to undertake new projects and to improve the implementation of the current projects. In the event our current capital is insufficient to fund these and other business plans, we may take the following actions to meet such working capital needs:
We may look into the possibility of optimizing our funding structure by obtaining short- and/or long-term debt through commercial loans. We are actively exploring opportunities with other major Chinese banks, and we expect to obtain additional lines of credit to pursue favorable project opportunities in the future. Other financing instruments into which we are currently looking include supply chain financing, project financing, trust fund financing and capital leasing.
We may focus on improving our collection of accounts receivable. Most of our clients are central, provincial and local governments. We believe that our clients are in good financial conditions. Therefore, we expect good collectability from relatively high quality accounts receivables. The accounts receivable collection should catch up with our rapid growth in the near future. Given the high contractual interest rate on unpaid amounts for long-term projects, we expect that some clients may choose to pay before such interest starts to accrue.
We avoided build and transfer projects, which tend to constrain our cash.


We are in the process of selling our real property in Baoding, along with all construction including the costs of construction and operation expended since acquisition for approximately $18.7 million. We acquired this property on November 26, 2010. The sale is expected to close before the end of 2013. We previously received approximately $8.9 million from the buyer which was used to satisfy our corporate bond obligations.
Order Backlog and Pipeline
Our  backlog represents the amount of contract work remaining to be completed -- revenues from existing contracts and work in progress expected to be recognized in current period, based on the assumption that these projects will be completed on time according to the project schedules. We evaluate the ongoing projects regularly and updates the schedules as appropriate.
The following table provides backlog by segments for as of September 30, 2013 and December 31, 2012, respectively.




September 30, 2013




December 31, 2012








USD Million


% of Total

Backlog


USD Million


% of Total

Backlog


% Change
Segment 1:




34.2




65.8%




38.7




64.4%




(11.7)%
Segment 2:




6.1




11.7%




6.7




11.1%




(9.4)%
Segment 3:




11.7




22.5%




14.7




24.5%




(20.5)%
Total




52.0




100.0%




60.1




100.0%




(13.6)%
Pipeline represents the values of projects we have been actively pursuing. The pipeline as of September 30, 2013 and December 31, 2012 was as below:




September 30, 2013




December 31, 2012








USD Million


% of Total

Pipeline


USD Million


% of Total

Pipeline


% Change
Segment 1:




17.3




51.0%




50.7




57.6%




(65.9)%
Segment 2:




2.3




6.8%




2.5




2.8%




(7.2)%
Segment 3:




14.3




42.1%




34.8




39.5%




(59.0)%
Total




33.9




100.0%




88.0




100.0%




(61.5)%
Having a dynamic nature, the values of secured projects move from pipeline into backlog and backlog to revenue based on percentage of completion, sometimes simultaneously. The backlog decreased by 13.6% from December 31, 2012 to September 30, 2013, because of the projects' progress in the third quarter of 2013. Being more rigorous in project selection, we narrowed down the number of candidate projects, so the pipeline declined significantly.


-FINANCIAL TABLES -

TRI-TECH HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS







September 30,

2013




December 31,






(Unaudited)




2012


ASSETS
















Current assets
















Cash*


$
11,960,663




$
8,098,657


Restricted cash*




5,087,685






4,352,443


Accounts and notes receivable, net of allowance for doubtful accounts of $3,683,789 and $1,475,771 as of September 30, 2013 and December 31 2012, respectively*




26,675,635






18,598,110


Unbilled revenue*




17,721,365






27,954,525


Other current assets*




4,596,575






3,825,770


Inventories*




11,797,155






8,459,073


Deposits on projects*




1,248,814






1,469,550


Prepayments to suppliers and subcontractors*




14,834,471






8,376,944


Assets held for sale




13,100,290






11,828,493


    Total current assets




107,022,653






92,963,565


Long-term unbilled revenue*




40,806,309






51,219,694


Long-term accounts receivable




777,836






413,770


Plant and equipment, net*




1,543,939






1,764,784


Construction in progress




125,794






2,560


Intangible assets, net*




4,989,240






5,407,891


Long-term restricted cash




2,655,008






3,464,524


Goodwill




1,441,278






1,441,278


    Total Assets


$
159,362,057




$
156,678,066




















LIABILITIES AND EQUITY
















Current liabilities
















Accounts payable


$
6,653,877




$
5,890,511


Costs accrual on projects*




21,651,738






23,637,751


Advance from customers*




2,375,589






1,157,247


Advance from buyer of assets held for sale




9,033,350






-


Loans from third party companies and individuals*




8,795,489






6,400,659


Amount due to noncontrolling interest investor




5,623,017






9,047,068


Amount due to related party




1,847,263






1,656,420


Other payables*




504,074






461,258


Taxes payable*




6,151,286






5,577,533


Accrued liabilities*




580,893






485,354


Payable on investment consideration




280,559






582,966


Deferred income taxes*




1,551,844






1,782,786


Deferred revenue




-






289,485


Short-term bank borrowing (including VIE short-term borrowing of the consolidated VIEs without recourse to Tri-Tech Holdings of $7,478,149 and $2,754,158 as of September 30, 2013 and December 31, 2012, respectively)*




12,361,041






8,150,041


    Total current liabilities




77,410,020






65,119,079


Noncurrent deferred income taxes




4,084,424






3,699,790


Long-term bank borrowings




11,370






17,976


Corporate Bond




-






7,935,122


    Total Liabilities




81,505,814






76,771,967




















Equity
















Tri-Tech Holding Inc. shareholders' equity
















Ordinary shares ($0.001 par value, 30,000,000 shares authorized; 8,470,874 and 8,259,506 shares issued as of September 30, 2013 and December 31, 2012, respectively; 8,449,774 and 8,238,406 shares outstanding as of September 30, 2013 and December 31, 2012, respectively)




8,471






8,259


Additional paid-in-capital




50,753,589






50,119,428


Statutory reserves




2,246,910






2,246,910


Retained earnings




14,107,030






17,038,396


Treasury shares (21,100 shares in treasury as of September 30, 2013 and December 31, 2012, respectively)




(193,750)






(193,750)


Accumulated other comprehensive income




5,812,376






5,086,827


Total Tri-Tech Holding Inc. shareholders' equity




72,734,626






74,306,070


Noncontrolling interests




5,121,617






5,600,029


    Total equity




77,856,243






79,906,099


    Total Liabilities and Equity


$
159,362,057




$
156,678,066



TRI-TECH HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS







For The Three Months Ended

September 30,






2013




2012






(Unaudited)




(Unaudited)


Revenues:
















System integration




7,516,723






16,381,899


Hardware products




1,585,706






1,764,912


      Total revenues




9,102,429






18,146,811


Cost of revenues
















System integration




5,507,286






12,110,593


Hardware products




1,248,733






1,371,138


      Total cost of revenues




6,756,019






13,481,731


Gross profit




2,346,410






4,665,080


Operating expenses:
















Selling and marketing expenses




611,776






1,031,607


General and administrative expenses




4,093,434






3,908,026


Research and development expenses




200,363






7,074


      Total operating expenses




4,905,573






4,946,707


Loss from operations




(2,559,163)






(281,627)


Other income (expense):
















Other income, net




1,706,030






41,428


Interest income




76,959






27,205


Interest expense




(603,221)






(652,204)


      Total other income (expense)




1,179,768






(583,571)


Loss before provision for income taxes




(1,379,395)






(865,198)


Provision for income taxes




64,385






-


Net loss




(1,443,780)






(865,198)


Less: net loss attributable to noncontrolling interests




(213,204)






(188,176)


Net loss attributable to Tri-Tech Holding Inc. shareholders


$
(1,230,576)




$
(677,022)


Net loss




(1,443,780)






(865,198)


Other comprehensive loss
















Foreign currency translation adjustment




(260,382)






(1,402,386)


Comprehensive loss




(1,704,162)






(2,267,584)


Less: comprehensive loss attributable to noncontrolling interests




(182,231)






(204,827)


Comprehensive loss attributable to Tri-Tech Holding Inc.


$
(1,521,931)




$
(2,062,757)


Weighted average number of ordinary shares outstanding:
















Basic




8,407,085






8,215,536


Diluted




8,407,085






8,215,536


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
















Basic


$
(0.15)




$
(0.08)


Diluted


$
(0.15)




$
(0.08)



TRI-TECH HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS







For The Nine Months Ended

September 30,






2013




2012






(Unaudited)




(Unaudited)


Revenues:
















System integration




29,776,133






56,656,331


Hardware products




6,089,741






3,752,326


      Total revenues




35,865,874






60,408,657


Cost of revenues
















System integration




22,594,161






42,303,768


Hardware products




4,963,362






2,398,243


      Total cost of revenues




27,557,523






44,702,011


Gross profit




8,308,351






15,706,646


Operating expenses:
















Selling and marketing expenses




2,506,853






2,806,453


General and administrative expenses




9,635,485






10,008,932


Research and development expenses




392,437






87,472


      Total operating expenses




12,534,775






12,902,857


(Loss) income from operations




(4,226,424)






2,803,789


Other income (expense):
















Other income, net




2,874,842






1,124,812


Interest income




106,130






109,749


Interest expense




(2,042,230)






(1,647,135)


Fair Value change on contingent investment consideration




-






7,000


Investment gain




-






78,558


      Total other income (expense)




938,742






(327,016)


(Loss) income before provision for income taxes




(3,287,682)






2,476,773


Provision for income taxes




218,778






601,555


Net (loss) income




(3,506,460)






1,875,218


Less: net loss attributable to noncontrolling interests




(575,091)






(256,772)


Net (loss) income attributable to Tri-Tech Holding Inc. shareholders


$
(2,931,369)




$
2,131,990


Net (loss) income




(3,506,460)






1,875,218


Other comprehensive loss (income)
















Foreign currency translation adjustment




725,549






(1,113,149)


Comprehensive loss




(2,780,911)






762,069


Less: comprehensive (loss) income attributable to noncontrolling interests




(478,412)






(253,030)


Comprehensive (loss) income attributable to Tri-Tech Holding Inc.


$
(2,302,499)




$
1,015,099


Weighted average number of ordinary shares outstanding:
















Basic




8,304,503






8,201,771


Diluted




8,304,503






8,201,771


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
















Basic


$
(0.35)




$
0.26


Diluted


$
(0.35)




$
0.26





TRI-TECH HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS







For The Nine Months Ended September 30,






2013




2012






(Unaudited)




(Unaudited)


CASH FLOWS FROM OPERATING ACTIVITIES:
















Net (loss) income


$
(3,506,460)




$
1,875,218


Adjustments to reconcile net (loss) income to cash provided by operating activities:
















Amortization of share-based compensation expense




331,953






951,964


Depreciation and amortization




919,376






873,276


Provision for doubtful accounts




2,144,637






554,033


Loss on disposal of plant and equipment




85,599






-


Gain on investment in joint venture




-






(78,558)


Deferred income taxes




(61,627)






680,196


Changes in operating assets and liabilities :
















Accounts receivable




(9,932,706)






(1,341,555)


Unbilled revenue




21,113,816






(14,579,623)


Restricted cash




190,321






(850,229)


Other current assets




(604,639)






(3,922,470)


Inventories




(3,289,447)






391,186


Prepaid expenses




148,615






(246,535)


Prepayments




(6,364,681)






(5,544,557)


Accounts payable




529,316






(7,058,085)


Notes payable




-






(1,173,199)


Cost accrual on projects




(1,399,485)






7,135,547


Advance from customers




619,641






1,525,756


Other payables




657,800






1,084,635


Taxes payable


$
632,193






2,898,619


Accrued liabilities




(67,673)






(56,228)


Deferred revenue




(293,387)






(130,769)


Net cash provided by (used in) operating activities




1,853,162






(17,011,378)


CASH FLOWS FROM INVESTING ACTIVITIES:
















Cash proceeds from sale of assets




8,926,705






-


Payment in business acquisition




-






(35,273)


Cash paid on investment consideration




-






(82,159)


Cash proceeds from disposal of PPE




27,522






-


Payment to purchase plant and equipment


$
(132,096)






(262,584)


Cash paid to acquire intangible asset




-






(36,914)


Cash paid for construction in progress




(420,098)






(557,279)


Collection of loan to third-party companies




-






105,230


Payment of loan to third-party companies




-






(149,378)


Net cash provided by (used in) investing activities




8,402,033






(1,018,357)


CASH FLOWS FROM FINANCING ACTIVITIES:
















Proceeds from bank borrowings




9,159,121






14,050,056


Payment of bank borrowing




(5,151,369)






(7,734,796)


Proceeds from the issuance of ordinary shares




302,419






-


Proceeds from the Issuance of corporate bond




-






7,893,407


Payment of the corporate bond




(8,174,583)






-


Proceeds from amount due to shareholder




156,509






1,105,077


Proceeds from loan from third-party companies and individuals




6,187,532






5,015,222


Payment of loan from third-party companies and individuals




(4,142,089)






(962,768)


Proceeds from loan from non-controlling shareholders




-






773,554


Payment of loan from non-controlling shareholders




(4,307,975)






(1,979,667)


Net cash (used in) provided by financing activities




(5,970,435)






18,160,085


EFFECTS OF EXCHANGE RATE CHANGE IN CASH




(422,754)






960,482


INCREASE IN CASH


$
3,862,006




$
1,090,832


CASH, beginning of the period




8,098,657






11,935,746


CASH, end of the period




11,960,663






13,026,578


Supplemental disclosure for cash flow information:
















Income taxes paid




154,095






157,016


Interest paid on debt




1,665,156






684,202


Supplemental disclosure for noncash investing activity:
















Issued 196,368 and 30,207 ordinary shares as one of the consideration in business combination




302,407






229,875


Gain on long-term investment to India Joint Venture




-






78,558


Fair value change on contingent consideration payable




-






7,000


About Tri-Tech Holding Inc.
Tri-Tech is an innovative provider of consulting, engineering, procurement, construction and technical services. The Company supports government, state owned entities and commercial clients by providing efficiency oriented solutions focused on treatment of water and waste water, management of water resources and water-efficient irrigation, as well as industrial emission and safety controls. With software copyrights, product patents, and capable employees in China, the U.S. and India, Tri-Tech's capabilities span the cycle of innovation. 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 http://www.tri-tech.cn/ir. To subscribe to future releases via e-mail alert, visit http://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.