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TriTech Holding Inc. Reports Operating Results (10-Q)

November 15, 2010 | About:
10qk

10qk

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TriTech Holding Inc. (TRIT) filed Quarterly Report for the period ended 2010-09-30.

Tritech Holding Inc. has a market cap of $98.85 million; its shares were traded at around $12.72 with a P/E ratio of 14.96 and P/S ratio of 5.88.
This is the annual revenues and earnings per share of TRIT over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TRIT.


Highlight of Business Operations:

For the quarters ended September 30, 2010 and 2009, our total revenues amounted to approximately $16.9 million and $4.9 million, respectively, a 243.5% quarter-over-quarter increase. For the nine months ended September 30, 2010 and 2009, our total revenues amounted to approximately $29.2 million and $10.9 million, respectively, a 167.9% period-over-period increase. Our revenues are subject to value added tax (“VAT”), business tax, urban maintenance and construction tax and additional education fees. We deduct these amounts from our gross revenues to arrive at our total revenues. Our net income for the quarters ended September 30, 2010 and 2009 was $2.2 million and $1.1 million, respectively, a quarter-over-quarter increase of 109.0%. Our net income for the nine months ended September 30, 2010 and 2009 was $4.5 million and $2.5 million, respectively, a period-over-period increase of 77.5%. Although there are many uncertainties surrounding the macro-economic environment in China, which might affect the overall economic situation during the fourth quarter of 2010, based on our current backlog and pipeline, we have only made slight adjustments to the 2010 guidance we announced early this year. For 2010, we anticipate that our revenues will range between $40.6 million and $50.5 million. We anticipate that our net income will likely reach $7.0 million, adjusted from the previous range between $7.0 million and $9.2 million.

Revenues for this segment were $10.9 million in the quarter ended September 30, 2010, an increase of 185.8% over revenues of $3.8 million in this segment in the quarter ended September 30, 2009. Cost of revenue was $7.9 million in the quarter ended September 30 2010, an increase of 242.3% over cost of revenue of $2.3 million in the quarter ended September 30, 2009. Operating expenses were $1.1 million in the quarter ended September 30 2010, an increase of 186.6% over operating expenses of $0.4 million in the quarter ended September 30, 2009. Net income attributable to Tri-Tech Holding Inc. (“TRIT”) was $1.5 million in the quarter ended September 30, 2010, an increase of 71% over net income of $0.9 million in the quarter ended September 30 2009.

Revenues for this segment were $1.2 million in the quarter ended September 30, 2010, an increase of 11.4% over revenues of $1.1 million in this segment in the quarter ended September 30 2009. Cost of revenue was $1.0 million in the quarter ended September 30, 2010, an increase of 43.3% over cost of revenue of $0.7 million in the quarter ended September 30, 2009. Operating expenses were $0.3 million in the quarter ended September 30, 2010, an increase of 51.1% over operating expenses of $0.2 million in the quarter ended September 30, 2009. Net loss attributable to TRIT was $0.06 million in the quarter ended September 30, 2010, a decrease of 132.1% over net income of $0.2 million in the quarter ended September 30 2009.

This is a new segment for 2010. Revenues for this segment were $4.8 million in the quarter ended September 30, 2010. Cost of revenue was $3.5 million, and net income attributable to TRIT was $0.8 million in the quarter ended September 30, 2010.

According to the China State Bureau of Statistics, China’s GDP totaled RMB 26.9 trillion (or US$4.0 trillion) for the first nine months of 2010, an increase of 10.3% over the same period in 2009. The growth rate increased by 2.5% over the same period in 2009. The GDP growth rate was 11.9% during the first quarter, 10.3% during the second quarter, and 9.6% during the third quarter compared to the same periods in 2009, indicating a moderate slowdown. In addition, industrial production and fixed asset investment (“FAI”) continued to grow during the first nine months. The industrial production growth rate was 16.3% during the first nine months. The growth rate increased by 7.6% over the same period in 2009. In particular, the industrial production growth rate was 19.6% during the first quarter, 15.9% during the second quarter, and 13.5% during the third quarter, also indicating a slowdown. Foreign direct investment (FDI) increased 15.8% during the first nine months of 2010 compared to the same period in 2009. Thirty-eight out of a total of thirty-nine sectors showed growth during the first nine months in 2010 over the same period in 2009. The overall FAI reached RMB19.2 trillion (or US$2.9 trillion) during the first nine months in 2010, an increase of 24.0% over the same period in 2009. In particular, the urban FAI was RMB16.6 trillion (or US$2.5 trillion), an increase of 24.5% over the same period in 2009

From September, 2010 to June 2011, 500 counties will install and implement the systems. Although we do not know the exact amount of total funding that will come from the government, based on our experience, an average of RMB 3 to 6 million ($0.4 to $0.9 million) for each county is a valid estimate, totaling RMB 150 to 300 million ($22.4 to $44.8 million). We have received contracts in 18 of those 103 counties. All of the systems installed and implemented by us have met the clients’ requirements and expectations, and have generated positive results.

Read the The complete Report

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