Tri-Tech Holding Reports Third Quarter 2013 Financial Results

        Tri-Tech Holding Reports Third Quarter 2013 Financial Results

Conference Call Scheduled on November 20, 2013 at 9:00 AM EST

PR Newswire

BEIJING, Nov. 19, 2013

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, (10:00PM Beijing/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 dial1 (480) 629 -
9712.The conference ID number is4652009. A live and archived webcast of the
call will be available athttp://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:

  oCash and cash equivalents were approximately $12 million, an improvement
    of approximately $3.9 million when compared to the beginning of the
    period.
  oOperating activities generated approximately $1.9 million.
  oWe achieved $9.1 million in revenues, a decline of 49.8% compared to $18.1
    million from the same period in 2012.
  oOur cost of revenues was $6.8 million, a decline of 49.9% compared to
    $13.5 million from the same period in 2012.
  oOur loss from operations was $2.6 million, compared to a loss from
    operations of $0.28 million in the same period of 2012.
  oOur net loss was $1.2 million, compared to a net loss of $0.68 million in
    the same period of 2012.
  oOur Weighted average number of diluted shares outstanding was 8,215,536
    compared to 8,407,085 the same period in 2012.
  oOur 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:

  oWe 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.
  oWe 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.
  oWe 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  USD Million  % of Total  % Change
                         Backlog                  Backlog
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  USD Million  % of Total  % Change
                         Pipeline                 Pipeline
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,   December 31,
                                                2013
                                                (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     26,675,635      18,598,110
and $1,475,771 as of September 30, 2013 and
December 31 2012, respectively*
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              8,795,489       6,400,659
individuals*
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          12,361,041      8,150,041
$7,478,149 and $2,754,158 as of September 30,
2013 and December 31, 2012, respectively)*
 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        8,471           8,259
December 31, 2012, respectively; 8,449,774 and
8,238,406 shares outstanding as of September
30, 2013 and December 31, 2012, respectively)
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,      (193,750)       (193,750)
respectively)
Accumulated other comprehensive income            5,812,376       5,086,827
Total Tri-Tech Holding Inc. shareholders'         72,734,626      74,306,070
equity
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     (213,204)       (188,176)
interests
Net loss attributable to Tri-Tech Holding Inc.  $ (1,230,576)   $ (677,022)
shareholders
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          (182,231)       (204,827)
noncontrolling interests
Comprehensive loss attributable to Tri-Tech     $ (1,521,931)   $ (2,062,757)
Holding Inc.
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        -               7,000
consideration
Investment gain                                   -               78,558
 Total other income (expense)                938,742         (327,016)
(Loss) income before provision for income         (3,287,682)     2,476,773
taxes
Provision for income taxes                        218,778         601,555
Net (loss) income                                 (3,506,460)     1,875,218
Less: net loss attributable to noncontrolling     (575,091)       (256,772)
interests
Net (loss) income attributable to Tri-Tech      $ (2,931,369)   $ 2,131,990
Holding Inc. shareholders
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                (478,412)       (253,030)
attributable to noncontrolling interests
Comprehensive (loss) income attributable to     $ (2,302,499)   $ 1,015,099
Tri-Tech Holding Inc.
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               331,953               951,964
compensation expense
Depreciation and amortization             919,376               873,276
Provision for doubtful accounts           2,144,637             554,033
Loss on disposal of plant and             85,599                -
equipment
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)            1,853,162             (17,011,378)
operating activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash proceeds from sale of assets         8,926,705             -
Payment in business acquisition           -                     (35,273)
Cash paid on investment                   -                     (82,159)
consideration
Cash proceeds from disposal of PPE        27,522                -
Payment to purchase plant and         $   (132,096)             (262,584)
equipment
Cash paid to acquire intangible           -                     (36,914)
asset
Cash paid for construction in             (420,098)             (557,279)
progress
Collection of loan to third-party         -                     105,230
companies
Payment of loan to third-party            -                     (149,378)
companies
Net cash provided by (used in)            8,402,033             (1,018,357)
investing activities
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             302,419               -
ordinary shares
Proceeds from the Issuance of             -                     7,893,407
corporate bond
Payment of the corporate bond             (8,174,583)           -
Proceeds from amount due to               156,509               1,105,077
shareholder
Proceeds from loan from third-party       6,187,532             5,015,222
companies and individuals
Payment of loan from third-party          (4,142,089)           (962,768)
companies and individuals
Proceeds from loan from                   -                     773,554
non-controlling shareholders
Payment of loan from non-controlling      (4,307,975)           (1,979,667)
shareholders
Net cash (used in) provided by            (5,970,435)           18,160,085
financing activities
EFFECTS OF EXCHANGE RATE CHANGE IN        (422,754)             960,482
CASH
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        302,407               229,875
in business combination
Gain on long-term investment to           -                     78,558
India Joint Venture
Fair value change on contingent           -                     7,000
consideration payable

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.

For more information, please contact:

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

SOURCE Tri-Tech Holding Inc.

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