THT HEAT TRANSFER TECHNOLOGY INC 
By SIPING,
Fiscal Year 2009 Financial Highlights
-- Sales revenue increased by 7.47% year-over-year to US$34.89 million
-- Gross profit increased by 45.93% year-over-year to US$14.92 million
-- Operating income increased by 43.77% year-over-year to US$4.98 million
-- Net income increased by 38.82% year-over-year to US$4.14 million
-- Basic and fully diluted net income per share was US$0.27, compared with
net income per share of US$0.20 for 2008
Chairman and Chief Executive Officer
"Looking ahead, clean technology and energy saving industries continue to receive strong government support, as evidenced by the government's recent decision to further strengthen its policies on emission reductions. Moreover, the government has pledged to increase spending on energy efficient technologies, as well as to continue investing in clean technology and other technologies that promote the growth of a low carbon economy. The government's stimulus package will also continue to lend strong support to market growth.
"This favorable market environment and the trend towards improving energy efficiency and reducing businesses' emission footprints create enormous potential for THT. Our leading market position, diversified product mix and applications, and superior R&D achievements make THT well positioned to capitalize on growth in the clean technology sector," Mr. Zhao concluded.
Fiscal Year 2009 Unaudited Financial Results
Revenue
Sales revenue for fiscal year 2009 was
During the year, the high efficiency heat exchange unit saw the highest growth, of 240%, as a result of intensified efforts to expand sales in the district heat system market. This segment accounted for 16.7% of total revenue during the year.
Despite impressive sales volume increases, the Company experienced a fall in average selling prices. This decline was directly linked to a 40% fall in the price of steel, which is THT's major raw material input, from the start of 2009. As a result of lower raw material prices, average selling prices decreased by 25.84% during 2009.
Cost of Sales
Cost of sales for fiscal year 2009 decreased by 10.22% to
Gross Profit and Gross Margin
Gross profit increased to
The gross margin increased to 42.77% in 2009 from 31.50% in 2008, an expansion of 11.27 percentage points. The significant improvement in gross margin was mainly due to efforts to optimize the product mix and maximize profitability. In response to strong market demand, and as a result of intensive sales initiatives, there was a significant increase in sales of high-margin products to the petrochemical and shipbuilding industries, including air-cooled heat exchangers, plate heat exchangers, and plate and frame heat exchangers. Sales of these products accounted for 50% of total sales revenue, compared with 35% in 2008.
Operating Expenses
Administrative expenses were
Research and development (R&D) expenses increased by 8.21% to
Selling expenses amounted to
Accordingly, total operating expenses increased by 47.03% to
Income Before Income Taxes
Income before income taxes for fiscal year 2009 increased by 44.43% to
Income Tax
Income tax expenses increased to
Net Income
Net income attributable to shareholders was
Basic and fully diluted net income per share was
Liquidity
As of
First Quarter Fiscal 2010 Guidance
THT expects to generate net revenues in the range of
About THT
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 exchangers play an integral part in helping customers 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,
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.
For more information, please contact:
The Company:
Mr. Jianjun He
Chief Financial Officer
THT Heat Transfer Technology, Inc.
Tel: +86-434-3266779
Email: IR@tht.cn
Investor Relations (HK):
Pamela Leung
Taylor Rafferty
Tel: +852-2167-2018
Email: tht@taylor-rafferty.com
Investor Relations (US):
Fares Ezziddin
Taylor Rafferty
Tel: +1-212-493-6962
Email: tht@taylor-rafferty.com
THT Heat Transfer Technology, Inc.
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2009 and December 31, 2008
(Stated in US Dollars thousands)
December 31,2009 December 31,2008
Assets
Current assets
Cash and cash equivalents 5,380 12,579
Restricted cash 1,376 1,594
Accounts receivable, net 14,882 6,845
Inventories 10,158 10,813
Other current assets 6,897 2,937
Total current assets 38,693 34,768
Long-term accounts
receivable 1,000 430
Other non-current assets 7,406 6,880
Total assets 47,099 42,078
Liabilities
Current liabilities
Short-term bank loans 5,850 4,419
Other current liabilities 16,764 15,499
Total current liabilities 22,615 19,918
Long-term debt 1,609 3,374
Total liabilities 24,224 23,292
Total shareholders equity 22,634 18,467
Non controlling interests 241 319
Total liabilities and
equity 47,099 42,078
THT Heat Transfer Technology, Inc.
Unaudited Condensed Consolidated Statements of Income
(Stated in US Dollars thousands)
Year ended December 31,
2009 2008
Sales revenue $34,891 $32,467
Cost of sales (19,968) (22,240)
Gross profit 14,923 10,227
Operating expenses
Administrative expenses 3,065 2,197
Research and development expenses 1,096 1,013
Selling expenses 5,782 3,553
Total operating expenses 9,943 6,763
Operating income / (loss) 4,980 3,464
Interest income 17 22
Other income / (expense) 491 337
Interest expense (681) (495)
Income before income taxes 4,807 3,328
Income taxes (664) (344)
Net income before non-controlling
interests 4,143 2,984
Net (income)/loss attributable to non
controlling interest 77 12
Net income attributable to the equity
shareholders 4,220 2,996
Earnings per share attributable to THT
Heat Transfer Technology Inc. common
stockholders $0.27 $0.20
Weighted average number of shares
outstanding
- Basic and diluted 15,408,219 14,800,000
THT Heat Transfer Technology, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
For Fiscal Year ended December 31, 2009 and 2008
(Stated in US Dollars thousands)
Fiscal Year Ended December 31,
2009 2008
Net cash provided by (used in)
operating activities $(6,251) $4,563
Net cash provided by (used in)
investing activities (1,249) 1,042
Net cash provided by financing
activities 342 8,596
Effect of exchange rate changes
on cash (42) 138
Net increase/(decrease) in cash
and cash equivalents 12,254 (7,199)
Cash at beginning of the period 12,579 325
Cash at end of the period $5,380 $12,579
SOURCE THT Heat Transfer Technology, Inc.
