Tri-Tech Holding Reports Third Quarter 2012 Financial Results

        Tri-Tech Holding Reports Third Quarter 2012 Financial Results

Conference Call on November 15, 2012 at 9:00 AM EST

PR Newswire

BEIJING, Nov. 14, 2012

BEIJING, Nov. 14, 2012 /PRNewswire-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
third fiscal quarter ended September 30, 2012 decreased by 24.4% to $18.1
million from $24 million in Q3 2011. Net loss attributable to TRIT for the
quarter was $677K, a 135.0% decrease from net income of $1.9 million in Q3
2011. Diluted net loss per share was $0.08 compared to diluted net earnings
per share of $0.24 in Q3 2011.

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

Key Financial Results of Q3 2012

  oRevenue from Water, Wastewater and Municipal Infrastructure decreased
    58.6% to $6.4 million from $15.5 million in Q3 2011
  oRevenue from Water Resource Management Systems and Engineering Services
    increased 90.3% to $6.7 million from $3.5 million in Q3 2011
  oRevenue from Industrial Pollution Control and Safety slightly increased
    2.2% to $5.1 million from $4.9 million in Q3 2011
  oGross profit for the quarter was $4.7 million, a decrease of 22.6% or $1.4
    million from $6.1 million in Q3 2011
  oGross margin was 25.6%, matching 25.3% in the same period of 2011

Mr. Warren Zhao, Joint CEO of the Company, commented on the operating results,
"While we continued to grow in two of our three operating segments, the third
quarter of 2012 was a challenging one for our company as a whole. This was
because overall revenues decreased and expenses grew in our historically
largest segment, resulting in net losses for our company. These challenges
primarily related to (i) difficulties driving revenues in the municipal water,
wastewater and industrial markets, largely due to reduced local government
spending and uncertain economic growth in our industry; (ii) unanticipated
customer-driven delays in evaluating project bids; (iii) slowed revenue
recognition from several of our large projects, resulting from regulatory
requirements and customers' changed engineering requirements, which made us
extend our projects schedule; and (iv) substantial increases in operating
expenses, mainly due to headcount, which increased by 59% to 474 by the end of
the third quarter from 299 a year ago.

"Although we are striving to diversify our customer base beyond our core of
government-related or state-owned entities, these efforts will take time.
Uncertain industrial economic growth and delayed and more restrained fiscal
expenditure plans in sectors we focus on (due in part to the central
government transition in China), rising labor and raw materials costs, and
intense market competition presented unprecedented challenges to our profit
growth.

"To address these challenges and improve profitability, we will focus on
completing existing projects to convert our backlog into revenues as
efficiently as possible. While we will continue to seek new projects, we will
seek to reduce our sales expense growth rate and control overall operating
expenses. In addition, we will continue striving to grow our market share in
the three lines of business by adjusting our strategies to current market
conditions, such as, for example, focusing on projects that tie up less of our
resources, projects in smaller, less well-developed areas and projects that
benefit from government fiscal support."

Recent Business Developments

We made some progress in implementing our business strategies during the third
quarter, although we confronted temporary difficulties in achieving growth
from our business of water, wastewater and municipal engineering services. We
are pleased that phase one of our Ordos Water Treatment Plant was fully put
into operation and is successfully purifying and supplying water to the
residents with a preliminary capacity of 2,000 to 3,000 cubic meters per day.
The expansion phase was almost completed by the end of the quarter and is
currently in trial operation. Our India Bihar wastewater system project
received all the regulatory approvals required by the Reserve Bank of India in
September, and we have been accelerating implementation steps since the
approval. At present we have completed the specific design for the sewage
plants, pump stations and are in the midst of procuring equipment.

During the third quarter, we continued to develop our water and wastewater
treatment, water supply and pollution control businesses in China. We secured
industrial wastewater and sewage treatment contracts worth an aggregate of
$2.08 million, by which we will provide system procurement services, hot water
softening and water supply for multiple customers in different cities. Our
water resources business market expansion strategies have grown this business
segment to record levels for our company. We secured flash flood foresting and
river hydrologic monitoring contracts worth $8.06 million. We were also
awarded a water conservation irrigation contract for Buerjin County in
Xinjiang, and we are providing the township of Yelaman with four sets of water
conservation irrigation systems for a new irrigation area covering 625
hectares. To further our attempts of the water resources business in the
Indian market in the third quarter, we bid to provide river water quality
monitoring and groundwater monitoring in several states in India. These
projects are in a final stage of tender evaluation.

Recently we signed a strategic partnering agreement with Rubicon Water, an
Australian irrigation solution provider. We are the exclusive PRC distributor
of Rubicon's irrigation products, which target the information-based
infrastructure market in Chinese irrigation districts, leveraging our matured
sales networking to promote the system. We have established a business
division to promote these products and have begun to market them in several
Chinese irrigation areas.

Financial Performance in Q3 2012

Revenues

Revenues for Q3 2012 were $18.1 million, a decrease of $5.8 million, or 24.4%,
from $24 million in the same period of 2011.

Revenue by Segment

                                Three months ended September 30,
                                2012                  2011
                                $          % of Total $          % of Total
                                           Revenues              Revenues
Segment 1 (Water/Wastewater
Treatment and Municipal         6,430,937  35.4%      15,544,356 64.8%
Infrastructure)
Segment 2 (Water Resources
Management Systems and          6,660,438  36.7%      3,499,953  14.6%
Engineering Services)
Segment 3 (Industrial Pollution 5,055,436  27.9%      4,944,679  20.6%
Control and Safety)
Total                           18,146,811 100.0%     23,988,988 100.0%

Revenue from the Water/Wastewater Treatment and Municipal Infrastructure
segment for the third quarter of 2012 was $6.4 million, a 58.6% decrease, from
$15.5 million in the same period of 2011. Revenue from this segment
constitutes 35.4% of total revenues. The decrease was mainly due to decline of
new project contracts sales, smaller sales recognized from Ordos water plants
projects as they were close to completion and slower sales recognition from
India Bihar municipal wastewater projects. The Ordos project contributed 10.2%
of the total revenues for Q3 2012, compared with 57.1% of total revenues in Q3
2011. In Q3 2012, the initial phase project was almost completed, and backlog
left to be completed was only $1.3 million. We recognized only $1.8 million
of revenue from the expansion phase of the Ordos project, or 10% of the
expansion phase contract value, with backlog of $1.9 million left to be
completed. The Indian Bihar municipal wastewater projects, which contributed
$1.98 million, or 5%, of the Company's revenues in Q3 2012, were 30% completed
as of the end of Q3 2012. This project is currently behind schedule.

Revenue from the Water Resources Management Systems and Engineering Services
segment saw substantial growth of 90.3%, to $6.7 million from $3.5 million in
Q3 2011, representing 36.7% of total revenues. The water resources segment was
still quite promising in the third quarter, and business continued to benefit
from government support, in the form of efficient government policy execution
and fund allocation. 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 third quarter of 2012 and
the timely implementation of projects awarded in previous quarters.

Revenue from the Industrial Pollution Control and Safety segment was $5.1
million, a slight increase of 2.2% from $4.9 million in Q3 2011, representing
27.9% of total revenues for Q3 2012. This increase was due primarily to an
increase of revenues from the industrial wastewater system contract for Xushui
Dawangdian Industrial Park in Hebei, industrial communication contracts for
oil and gas fields and our international projects in Qatar and Mexico. The
Xushui Dawangdian Industrial Park wastewater project was 60% completed, which
contributed the largest proportion of the revenue in Q3 2012.

Gross Profit and Margin

Gross profit was $4.7 million for the quarter, decreased 23.3% from $6.1
million for Q3 2011. Gross margin for the quarter was 25.7%, which was 25.3%
in the third quarter of 2011. The flat gross margin continued to reflect the
decrease of overall revenue and proportional decrease of overall cost.

Total Operating Expenses

Total operating expenses for Q3 2012 were $4.9 million, or 27.3% of the total
revenues, an increase of 69.0% from $2.9 million, or 12.3% of the total
revenue for Q3 2011. The increase resulted from rising selling and marketing
expenses and general and administrative expenses as the Company aggressively
implements its growth plans amidst rising expenses.

  oSelling and Marketing Expenses
    In Q3 2012, total selling and marketing expenses increased by 98.6% from
    $0.5 million in Q3 2011 to $1 million. This was caused by the expansion of
    sales force and increases in compensation and welfare payments to such
    staff.
  oGeneral and Administrative Expenses
    General and administrative expenses increased by 63.3%, from $2.4 million
    in Q3 2011 to $3.9 million in Q3 2012. This increase was mainly due to
    increases in staff compensation and welfare, provision for doubtful
    accounts, non-cash stock option expenses and other related service
    expenses. We had a total headcount of 474 as of September 30, 2012, which
    represents an almost 59% increase over the headcount of 299 as of the same
    time last year. General and administrative expenses for Q3 2012 were
    approximately 19.8% of total revenues, compared with 10% in the same
    period last year.

Income from Operations

Loss from operations totaled $282 thousand, a 109.0% decrease from $3.1
million in Q3 2011.

Net Income and EPS

Diluted net loss per share was $0.08, based on net loss of $677 thousand and
weighted average number of diluted shares outstanding for the quarter ended
September 30, 2012 of 8,215,536, compared to $0.24 in Q3 2011, based on net
income of $1.9 million and weighted average number of diluted shares
outstanding of 8,160,407 in Q3 2011.

Liquidity and Capital Resources

As of September 30, 2012, cash and cash equivalents, excluding restricted cash
of $2.9 million, were $13.0 million. As of September 30, 2012, working capital
was $11.4 million. We received $3.9 million from the Ordos water treatment
plant build-transfer ("BT") contract in Q3 2012 and $1.6 million in October
2012. In the aggregate, $22.9 million in cash has been collected from the
Ordos project as of the time of this announcement, and we expect to collect
approximately $60 million more from the Ordos projects during the next two
years.

As of September 30, 2012, the Company had aggregate lines of credit of $21
million, consisting of $9.2 million, $7.9 million and $3.9 million
underwritten by Hangzhou Bank, ICBC Bank and China Merchants Bank,
respectively. In September 26, 2012, we completed a financing transaction
underwritten by the Bank of Nanjing to issue corporate bonds of $7.89 million
(RMB 50 million by exchange rate of 6.341) with a maturity of three years and
a coupon of 6.2%. We have received the proceeds of the financing and the
initiatives increased our financial flexibility and structure.

Financial Performance in the First Nine Months of 2012

Revenues for the nine months ended September 30, 2012 were $60.4 million, an
increase of $1.3 million, or 2.2%, compared to $61.7 million in the same
period of 2011. Gross profit was $15.7 million, compared to $16.4 million in
the same period of 2011. Gross margin was 26.0%, compared to 26.5% in the same
period of 2011. Operating income for the nine months ended September 30, 2012
decreased from $8.6 million in 2011 to $2.8 million. Net income attributable
to the shareholders of the Company was down 60.5% to $2.1 million, compared to
$5.4 million in the same period of 2011. Diluted EPS was $0.26 compared to
$0.66 for the same period of 2011.

Projects Backlog and Pipeline

As of September 30, 2012, the Company's total project backlog was $70.4
million, which it expects to record in 2012 and onwards. The backlog included
$38.8 million in the Water and Wastewater Treatment segment, $7.9 million in
the Water Resource Management segment and $23.7 million in the Industrial
Pollution Control segment. The decrease on the backlog as of September 30,
2012 was primarily due to receiving fewer and smaller new contracts in the
third quarter. The lower backlog predicts a slow quarter for us in the fourth
quarter, particularly if we have any issues in converting backlog into
revenues or obtaining new projects in the fourth quarter.

Backlog by Segment

(In USD million)

                                September 30, 2012 June 30, 2012
                                $      % of Total  $    % of Total % Change
                                       Backlog          Backlog
Segment 1 (Water/Wastewater
Treatment and Municipal         38.8   55.1%       41.9 52.9%      (7.4)  %
Infrastructure)
Segment 2 (Water Resources
Management Systems and          7.9    11.2%       12.2 15.4%      (35.2) %
Engineering Services)
Segment 3 (Industrial Pollution 23.7   33.7%       25.1 31.7%      5.6    %
Control and Safety)
Total                           70.4   100.0%      79.2 100.0%     (11.1) %

The Company is currently monitoring potential projects with a total expected
value of $139 million, of which approximately $86.7 million is in Water and
Wastewater Treatment, $5.2 million is in Water Resource Management and $47.1
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 Update

Based on the performance in the third quarter of 2012 and the estimate for the
fourth quarter, the Company expects revenues to be around $80 million.
Assuming the weighted average number of diluted shares remains the same, we
expect our EPS to be around $0.04. These are the Company's targets, not
predictions of the actual performance. The foregoing statements regarding
targets are forward-looking and actual results may differ materially.

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 EST, Nov 15, 2012 (10:00 PM
Beijing/Hong Kong Time, Nov 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 4573871. A live webcast of the call will be
available at public.viavid.com/index.php?id=102380. 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 474 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 STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)


                                                                                       For The Three Months        For The Nine Months Ended
                                                                                       Ended September 30,         September 30,
                                                                                       2012          2011          2012          2011
                                                                                       (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Revenues:
 System integration                                                       16,381,899    23,650,312    56,656,331    59,404,359
 Hardware products                                                        1,764,912     327,768       3,752,326     2,328,819
 Software products                                                        —             10,908        —             10,908
 Total revenues                                                                   18,146,811    23,988,988    60,408,657    61,744,086
Cost of revenues
 System integration                                                       12,110,593    17,652,014    42,303,768    43,925,339
 Hardware products                                                        1,371,138     256,680       2,398,243     1,424,055
 Software products                                                          —             1,745         —            1,745
 Total cost of revenues                                                           13,481,731    17,910,439    44,702,011    45,351,139
Gross profit                                                                           4,665,080     6,078,549     15,706,646    16,392,947
Operating expenses:
Sellingandmarketingexpenses                                           1,031,607     519,451       2,806,453     1,305,774
Generalandadministrativeexpenses   3,908,026     2,393,836     10,008,932    6,343,062
 Research and development expenses                                        7,074         30,596        87,472        97,340
 Total operating expenses                                                         4,946,707     2,943,883     12,902,857    7,746,176
(Loss) Income from operations                                                          (281,627)     3,134,666     2,803,789     8,646,771
Other expense:
 Other income (expense)                                                   41,428        (105,129)     1,124,812     (255,916)
 Interest income                                                          27,205        11,079        109,749       71,687
 Interest expense                                                         (652,204)     (37,212)      (1,647,135)   (44,167)
 Fair Value change on contingent investment consideration                  —             (40,000)      7,000         (40,000)
 Investment gain                                                          —             —             78,558        — 
Total other expenses                                                                   (583,571)     (171,262)     (327,016)     (268,396)
(Loss) Income before provision for income taxes                                        (865,198)     2,963,404     2,476,773     8,378,375
Provision for income taxes                                                             —            499,577       601,555       1,344,636
Net (loss) income                                                                      (865,198)     2,463,827     1,875,218     7,033,739
Less: Net (loss) income attributable to noncontrolling interests                       (188,176)     526,724       (256,772)     1,635,967
Net (loss) income attributable to Tri-Tech Holding Inc. shareholders                 $ (677,022)   $ 1,937,103   $ 2,131,990   $ 5,397,772
Net (loss) income                                                                      (865,198)     2,463,827     1,875,218     7,033,739
 Foreign currency translation adjustment                                  (1,402,386)   1,155,540     (1,113,149)   2,502,743
Comprehensive (loss) income                                                            (2,267,584)   3,619,367     762,069       9,536,482
Less: Comprehensive (loss) income attributable to noncontrolling interests             (204,827)     717,207       (253,030)     1,892,613
Comprehensive (loss) income attributable to Tri-Tech Holding Inc.                    $ (2,062,757) $ 2,902,160   $ 1,015,099   $ 7,643,869
Net (loss) income attributable to Tri-Tech Holding Inc. shareholders per share are:
 Basic                                                                  $ (0.08)      $ 0.24        $ 0.26        $ 0.67
 Diluted                                                                $ (0.08)      $ 0.24        $ 0.26        $ 0.66
Weighted average number of ordinary shares outstanding:
 Basic                                                                    8,215,536     8,160,407     8,201,771     8,116,802
 Diluted                                                                  8,215,536     8,160,407     8,201,771     8,125,590





TRI-TECH HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


                                             September 30, 2012   December 31,
                                             (Unaudited)          2011
ASSETS
Current assets
Cash                                       $ 13,026,578         $ 11,935,746
Restricted cash                              2,920,692            2,087,920
Accounts receivable, net of allowance for
doubtful accounts of $1,167,087 and          20,529,940           19,888,084
$619,062 as of September 30, 2012 and
December 31, 2011, respectively
Unbilled revenue                             19,632,473           7,254,830
Other current assets                         4,917,800            2,761,548
Inventories                                  7,266,887            7,705,752
Deposits on projects                         3,467,045            1,212,691
Prepayments to suppliers and                 10,640,081           4,908,697
subcontractors
Total current assets                         82,401,496           57,755,268
Long-term unbilled revenue                   61,058,928           59,298,740
Long-term accounts receivables               232,055              —
Plant and equipment, net                     1,519,201            1,436,838
Construction in progress                     5,094,752            4,566,934
Intangible assets, net                       10,949,774           11,609,662
Long-term restricted cash                    2,547,891            2,541,958
Goodwill                                     1,441,278            1,441,278
Total Assets                               $ 165,245,375        $ 138,650,678
LIABILITIES AND EQUITY
Current liabilities
Accounts payable                           $ 4,443,231          $ 11,401,187
Notes payable                                —                    1,176,197
Costs accrual on projects                    26,398,736           19,402,047
Advance from customers                       3,352,133            1,886,607
Loans from third party companies and         5,010,532            972,196
individual
Amount due to shareholders                   1,103,927            —
Amount due to noncontrolling interest        7,386,848            6,057,250
investor
Other payables                               1,529,814            687,336
Other taxes payable                          5,513,608            3,067,350
Accrued liabilities                          423,998              379,357
Payable on investment consideration          582,966              895,000
Income taxes payable                         —                    154,519
Deferred income taxes                        976,259              358,519
Short-term bank borrowing (including VIE
short-term borrowing of the consolidated
VIEs without recourse to Tri-Tech Holdings   14,253,842           8,010,365
of $7,945,689 and $2,296,895 as of
September 30, 2012 and December 31, 2011,
respectively)
Total current liabilities                   70,975,894           54,447,930
Long-term bank borrowing                     19,977               —
Corporate bond                               7,891,889            —
Noncurrent deferred income taxes             3,518,279            3,455,823
Total Liabilities                            82,406,039           57,903,753
Equity
Tri-Tech Holding Inc. shareholders' equity
Ordinary shares ($0.001 par value,
30,000,000 shares authorized; 8,239,506
and 8,203,299 shares issued as of            8,239                8,203
September 30, 2012 and December 31, 2011,
respectively)
Additional paid-in-capital                   49,954,116           48,772,307
Statutory reserves                           1,866,994            1,866,994
Retained earnings                            21,814,376           19,682,386
Treasury shares (21,100 shares in treasury
as of September 30, 2012 and December 31,    (193,750)            (193,750)
2011, respectively)
Accumulated other comprehensive income       3,496,548            4,593,046
Total Tri-Tech Holding Inc. shareholders'    76,946,523           74,729,186
equity
Noncontrolling interests                     5,892,813            6,017,739
Total shareholders' equity                   82,839,336           80,746,925
Total liabilities and equity               $ 165,245,375        $ 138,650,678







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


                                       For The Nine Months Ended September 30,
                                       2012                   2011
                                       (Unaudited)            (Unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income before allocation   $       1,875,218        $     7,033,739
to noncontrolling interests
Adjustments to reconcile net income to cash provided by
operating activities:
Amortization of share-based            951,964                276,474
compensation expense
Amortization of warrants               —                      45,491
Depreciation and amortization          873,276                682,010
Provision for doubtful                 554,033                296,173
accounts
Loss on disposal of plant and          —                      5,657
equipment
Gain on investment in joint            (78,558)               —
venture
Deferred income taxes                  680,196                361,630
Changes in operating assets
and liabilities:
Accounts receivable                    (1,341,555)            1,571,166
Unbilled revenue                       (14,579,623)           (38,280,759)
Restricted cash                        (850,229)              (638,708)
Other current assets                   (3,922,470)            (111,996)
Inventories                            391,186                (1,385,434)
Prepaid expenses                       (246,535)              —
Prepayments                            (5,544,557)            (5,938,596)
Accounts payable                       (7,058,085)            852,108
Notes payable                          (1,173,199)            —
Cost accrual on projects               7,135,547              12,135,018
Advance from customers                 1,525,756              19,212
Billings in excess of revenue          —                      (30,593)
Other payables                         1,084,635              5,821,712
Other taxes payable                    2,898,619              —
Accrued liabilities                    (56,228)               751,401
Taxes payable                          (130,769)              1,298,637
Net cash used in operating             (17,011,378)           (15,235,658)
activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Payment in business                    (35,273)               (488,000)
acquisition
Cash paid on investment                (82,159)               —
consideration
Cash acquired from business            —                      825,395
combination
Cash proceeds from disposal of         —                      4,311
plant and equipment
Payment to purchase plant and          (262,584)              (298,925)
equipment
Cash paid to acquire                   (36,914)               (1,444,294)
intangible asset
Cash paid for construction in          (557,279)              (289,274)
progress
Collection of loan to                  105,230                —
third-party companies
Payment of loan to third-party         (149,378)              (1,473,607)
companies
Net cash used in investing             (1,018,357)            (3,164,394)
activities
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from bank borrowings          14,050,056             6,853,470
Payment of bank borrowing              (7,734,796)            —
Proceeds from amounts due from         1,105,077              —
shareholders
Proceeds from the issuance of          7,893,407              —
corporate bond
Proceeds from loan from
third-party companies and              5,015,222              —
individual
Payment of loan from                   (962,768)              (43,540)
third-party companies
Proceeds from loan from                773,554                —
noncontrolling shareholders
Payment of loan from                   (1,979,667)            —
noncontrolling shareholders
Payment of installment of              —                      (15,344)
purchasing vehicle
Capital Injection by                   —                      187,935
noncontrolling shareholders
Proceeds from exercising               —                      454,009
options into ordinary shares
Net cash provided by financing         18,160,085             7,436,530
activities
Effect of exchange rate
fluctuation on cash and cash           960,482                606,782
equivalents
Net increase (decrease) in             1,090,832              (10,356,740)
cash and cash equivalents
Cash and cash equivalents,     $       11,935,746       $     23,394,995
beginning of period
Cash and cash equivalents, end $       13,026,578       $     13,038,255
of period
Supplemental disclosure for
cash flow information:
Income taxes paid                      157,016                96,490
Interest paid on debt                  684,202                44,167
Supplemental disclosure for
noncash investing activity:
Fair value change on
contingent consideration               7,000                  —
payable
Gain on long-term investment           78,558                 —
to India Joint Venture
Issued 30,207 and 35,974 ordinary
shares as one of the consideration in  229,875                277,000
business combination
Addition in land use right by
transferring from long-term            —                      5,547,907
prepayment
Payable to purchase intangible
assets during the business             —                      735,000
combination





SOURCE Tri-Tech Holding Inc.

Website: http://www.Tri-Tech.cn
 
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