THT Heat Transfer Technology, Inc. Announces Fourth Quarter And Fiscal Year 2013 Results

 THT Heat Transfer Technology, Inc. Announces Fourth Quarter And Fiscal Year
                                 2013 Results

Sales revenue rose 42.2% year-over-year in fourth quarter 2013, exceeding
guidance

PR Newswire

SIPING, China, March 31, 2014

SIPING, China, March 31, 2014 /PRNewswire/ -- THT Heat Transfer Technology,
Inc. (Nasdaq: THTI) ("THT" or the "Company"), a leading provider of heat
exchangers and heat exchange solutions in China'sclean technology industry,
today announced its financial results for the fourth quarter and fiscal year
ended December 31, 2013.

Fourth Quarter 2013 (Unaudited) Financial Highlights

  oSales revenue increased by 42.2% year-over-year to US$39.3 million,
    exceeding the Company's previously stated guidance of US$7 million to US$9
    million.
  oGross profit increased by 44.1% year-over-year to US$10.1 million.
  oGross margin for the fourth quarter 2013 was 27.7%, compared to 25.5% for
    the fourth quarter 2012.
  oOperating income increased by 55.6% year-over-year to US$2.8 million.
  oNet income attributable to common stockholders increased by 141.4%
    year-over-year to US$1.7 million.

Fiscal Year 2013  (Audited) Financial Highlights

  oSales revenue increased by 14.4% year-over-year to US$71.8 million.
  oGross profit increased by 2.3% year-over-year to US$22.2 million.
  oOperating income decreased by 6.2% year-over-year to US$5.0 million.
  oNet income attributable to common stockholders decreased by 3.4%
    year-over-year to US$3.1 million.
  oBasic and fully diluted net income per share was US$0.1545 for 2013,
    compared with net income per share of US$0.1496 for 2012.

Comment from Zhao Guohong, Chairman and CEO

Chairman and Chief Executive Officer Guohong Zhao commented, "We are pleased
to report the 42% year-over-year revenue growth we achieved in the fourth
quarter 2013 exceeded our guidance, thanks to the rapid urbanization in China
in 2013. The solid fourth quarter growth was primarily attributed to increased
demand of heat exchange units and air-cooled heat exchangers.

"Looking forward to the next year, we expect steady demand from our heat
exchange products. Nevertheless, we will be confronted with the negative
effect of Chinese economic slowdown. With the purpose of improving our
prospects of steady growth, the Company will continually focus on maintaining
competitive advantage in substantial market and expanding sales of components
and maintenance service. Meanwhile, manufacturing and sales of more products
with high technology and high added value will be a new profit growth engine
for our long-term development."

Fiscal Year 2013 Audited Financial Results

Sales Revenue

Sales revenue for the fiscal year 2013 was US$71.8 million, a 14.4% increase
from US$62.8 million in 2012, primarily attributable to increased demand of
heat exchange units in response to rapid urbanization in China. Sales volume
of heat exchange products amounted to 3,418 units, a decrease of 308 units
from 3,726 units in 2012. Unit price increased 24.8%, to US$21,017 in 2013
from US$16,846 in 2012. Such increase was mainly because we manufactured more
products with high price and costs to suit our customers' higher requirements.

For the fiscal year 2013, sales revenue from heat exchange units increased
US$7.0 million, or 28.4% year-over-year, to US$31.6 million. Sales revenue
from air-cooled heat exchangers increased 143.37% year-over-year to US$4.2
million from US$1.7 million in 2012. The increased revenue from heat exchange
units and air-cooled heat exchangers was mainly due to increased demand for
our products as a result of the overall economic recovery in China in 2013.

Cost of Sales

Cost of sales for the fiscal year 2013 increased by 20.8% year-over-year to
US$49.7 million from US$41.1 million in 2012, mainly attributable to our
increased sales revenue in 2013.

Gross Profit and Gross Margin

Gross profit for 2013 was US$22.2 million, representing a 2.3% increase from
US$21.7 million in 2012, mainly attributable to increased sales from heat
exchanger units and air-cooled heat exchangers.

Gross margin decreased to 30.9% in 2013 compared to 34.5% in 2012, mainly due
to an increase in labor costs and raw material costs consorted with the
special products as mentioned above in 2013.

Operating Expenses

Administrative expenses increased 45.9% year-over-year to US$8.6 million in
2013, compared to US$5.9 million in 2012. The rise was driven primarily by
higher bad debt expense. The increase in bad debt expense was mainly caused by
China's tightened credit policy which gave rise to delayed delivery schedules
and delayed payments by our customers.

Research and development (R&D) expenses rose by 18.8% to US$2.6 million in
2013 from US$2.2 million in 2012, primarily due to the higher costs of raw
materials used in R&D.

Selling expenses totalled US$5.9 million in 2013, representing a decrease of
28.0% over 2012, mainly due to a decrease in our sales personnel's travelling
expenses.

Accordingly, total operating expenses increased by 5.1% to US$17.2 million in
2013 compared to US$16.3 million in 2012.

Income before Income Taxes

Income before income taxes for the fiscal year 2013 increased by 7.3% to
US$4.2 million from US$3.9 million in 2012. The decrease was mainly
attributable to the increased gross profit.

Income Tax

Income tax expenses decreased to US$1.1 million in 2013 from US$0.7 million in
2012 as a result of an increase in taxable income.

Net Income

Net income attributable to common stockholders was US$3.1 million in 2013, a
decrease of 2.2% compared to US$3.2 million in 2012.

Basic and fully diluted net income per share was US$0.1494 in 2013, compared
with US$0.1546 in 2012.

Liquidity

As of December 31, 2013, the Company had cash and cash equivalents of US$9.1
million and restricted cash of US$1.7 million. During the year, there was a
net cash outflow of US$1.6 million, compared with a net cash inflow of US$3.4
million in 2012.

Net cash provided by operating activities was US$2.9 million for 2013,
compared with net cash used in operating activities of US$4.3 million for
2012. The decrease in net cash provided by operating activities was mainly
because an US$8.2 million decrease in other payables and accrued expenses, and
a US$1.2 million increase in allowance for doubtful accounts.

Net cash used in investing activities was US$0.1 million for 2013, compared
with US$1.5 million for 2012.

Net cash provided by financing activities was US$4.8 million for 2013,
compared with US$0.5 million for 2012.

Outlook for First Quarter Fiscal 2014

THT expects to generate net revenues in the range of US$6 million to US$7
million during the first quarter 2014, compared with US$7.9 million in the
same period of 2013. This represents the Company's current and preliminary
view, and is subject to change.

About THT Heat Transfer Technology, Inc.

Through its Chinese operating subsidiaries, THT Heat Transfer Technology, Inc.
designs, manufactures and sells plate heat exchangers, shell-and-tube heat
exchangers, heat exchanger units and other heat exchanger products with total
heat exchange solutions. Heat exchangersplayan integral part in
helpingcustomers improve energy efficiency.Used in a number of industries,
THT's products focus on energy conservation, emission reduction and other
environmentally friendly applications.Its six major product categories are
plate heat exchangers, shell-and-tube heat exchangers, air-cooled heat
exchangers, weld plate heat exchangers, heat exchanger units and
plate-and-shell heat exchangers. The Company also offers comprehensive heat
exchange solutions.

THT's in-house R&D capabilities enable it to deliver tailored products that
better meet the changing demands of its customers. The Company has a strong
record of delivering high-quality products and services to leading domestic
and international customers. THT has completed over 3,000 projects and has
provided heat exchange solutions to several Fortune 500 companies. The Company
is headquartered in Siping City, Jilin Province, China. For more information,
please visit the Company's website at www.tht.cn.

Safe Harbor Statement

This press release contains certain statements that may include "forward
looking statements". All statements other than statements of historical fact
included herein are "forward-looking statements". These forward-looking
statements are often identified by the use of forward-looking terminology such
as "believes," "expects" or similar expressions, and involve known and unknown
risks and uncertainties. Although the Company believes that the expectations
reflected in these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may prove to be
incorrect. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. The
Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of factors,
including those discussed in the risk factor sections of the Company's
periodic reports that are filed with the Securities and Exchange Commission
and are available on its website (http://www.sec.gov). All forward-looking
statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these factors. Other than as required
under the securities laws, the Company does not assume a duty to update these
forward-looking statements.

Contact:

Mr. Jack Xiao
Investor Relations Manager
THT Heat Transfer Technology, Inc.
Tel: +86 (434) 3266779
Email: IR@tht.cn

Rubing Li
Investor Relations Department
THT Heat Transfer Technology, Inc.
Tel: +65 9235 1765
Email: lirubing@tht.cn



- FINANCIAL TABLES FOLLOW -

THT Heat Transfer Technology, Inc.
Audited Consolidated Balance Sheets
As of December 31, 2013 and 2012
(Stated in thousands of US Dollars)
                              December December
                                       31,2012
                              31,2013
Assets
Current assets
Cash and cash equivalents     9082     10,703
Restricted cash               1,728    1,838
Accounts receivable, net      44,316   37,683
Inventories, net              25,304   31,892
Other current assets          16,621   14,049
Total current assets          97,051   96,165
Long-term accounts receivable 2,209    1,237
Other non-current assets      13,562   14,067
Total assets                  112,822  111,469
Liabilities
Current liabilities
Short-term bank loans         16,038   18,705
Other current liabilities     32,825   33,080
Total current liabilities     48,863   51,785
Long-term loan                573      951
Total liabilities             49,436   52,736
Total shareholders' equity    63,386   59,311
Noncontrolling interests      -        (578)
Total liabilities and equity  112,822  111,469



THT Heat Transfer Technology, Inc.
Audited Consolidated Statements of Income
For Fiscal Year Ended December 31, 2013 and 2012
(Stated in thousands of US Dollars, except number of shares and per share
data)
                                                       Year ended December 31,
                                                       2013        2012
Sales revenue                                          71,836      62,771
Cost of sales                                          (49,678)    (41,119)
Gross profit                                           22,158      21,652
Operating expenses
 Administrative expenses                             8,623       5,910
 Research and development expenses                   2,649       2,231
 Selling expenses                                    5,901       8,195
Total operating expenses                               17,172      16,336
Operating income                                       4,985       5,316
Interest income                                        7           28
Other income                                           685         524
Financial costs                                        (1,469)     (1,814)
Other expense                                          (46)        (175)
Income before income taxes                             4,163       3,879
Income taxes expenses                                  (1,054)     (700)
Net income before noncontrolling interests             3,109       3,179
Net (income) loss attributable to noncontrolling       (53)        (16)
interest
Net income attributable to the equity stockholders     3,055       3,163
Earnings per share attributable to THT Heat Transfer
 Technology Inc. common stockholders                 0.15        0.15
Weighted average number of shares outstanding
- Basic and diluted                                    20,453,500  20,453,500



THT Heat Transfer Technology, Inc.
Audited Consolidated Statements of Cash Flows
For Fiscal Year Ended December 31, 2013 and 2012
(Stated in thousands of US Dollars)
                                               Fiscal Year Ended December 31,
                                               2013            2012
Net cash provided by (used in) operating       2,893           4,316
activities
Net cash used in investing activities          48              (1,505)
Net cash provided by financing activities      (4,779)         475
Effect of exchange rate changes on cash and    217             78
cash equivalents
Net (decrease) / increase in cash and cash     (1,621)         3,363
equivalents
Cash and cash equivalents at beginning of the  10,703          7,340
period
Cash and cash equivalents at end of the period 9,082           10,703

SOURCE THT Heat Transfer Technology, Inc.

Website: http://www.tht.cn
 
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