Company Address:
Tri-Tech Holding Inc.
5D, Tower A, 2 Bld Bus Ctr
Jinyuan Shidai
2 E. Road Landianchang
Haidian District, Beijing,
100097
People’s Republic of China
Phone:
1+86-10-8887-6366
Website:
www.tri-tech.cn
 Ticker:
TRIT
 Exchange:
Nasdaq
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5D, Tower A, 2 Bld Bus Ctr • Jinyuan Shidai • 2 E. Road Landianchang • Haidian District, Beijing • 100097 • People’s Republic of China • www.tri-tech.cn
Investor Contact: Frank N. Hawkins, Jr. or Julie Marshall · Hawk Associates Inc. · (305) 451-1888 · www.hawkassociates.com
Q2'10 Revenue Up 157.8% to $8.1M; Net Income Up 66.9% to $1.4M; EPS $0.19; 6Mo Revenue Up 105.9% to $12.3M; EPS $0.34; Acquires Beijing Satellite Science & Technology Co.
ALERT: Click here for the archived MP3 Audio Replay of the August 16, 2010 Q2 Earnings Conference Call.

Tri-Tech is a leading provider of integrated solutions for the protection, control and enhancement of China’s water resources. Combining software, hardware and highly experienced and talented engineering services, TRIT enables local and regional governments to monitor and manage China’s natural and municipal water resources. Since 2002, TRIT has successfully implemented over 250 projects throughout China.

TRIT designs and installs customized sewage treatment and odor control systems for municipalities and larger cities. These systems combine software, information management systems, enterprise resource planning and local and wide area networking with hardware including sensors, distribution control systems, programmable logic controllers, supervisory control and data acquisition systems. This technology allows local governments to seamlessly monitor and control multiple variables in sewage treatment and odor control while managing the process from initial intake of raw sewage all the way to the return of water for consumer reuse.

TRIT also provides effective software and hardware solutions for tracking natural waterway levels for drought and flood control, groundwater quality monitoring, irrigation and assisting the government in planning and managing its use of increasingly precious water resources.

TRIT's business is focused on Chinese cities and municipalities that need extensive moni- toring and management systems expertise. TRIT has seven software copyrights and two technology patents. TRIT has 120 employees, 75% of whom are in engineering and technical support.


Company Overview

The Major Challenge to China’s Water Resources

China’s water infrastructure is under great stress. The country faces widespread water scarcity, frequent floods in the south and east and droughts in the north and west. China also suffers serious water pollution that strains the environment. China's water supply is smaller than the U.S. but serves approximate- ly five times as many people. It is estimated that 300 million Chinese citizens have no daily access to clean water.

Over 70 million Chinese citizen drink water that does not meet current World Health Organization standards. Water usage in China has quintupled since 1949 and almost 90% of underground water in Chinese cities is affected by pollution. In short, China is struggling to procure clean and provide enough potable water for a growing population.

As a result of the high population density, the poor ratio of available water supply to demand, and regional imbalances in available water, China faces serious challenges in managing its usable water supply. These challenges in managing water resources provide TRIT strong growth opportunities in helping to provide usable water, reduce the effects of drought and alleviate flooding. Differentiators

Company Strategy

TRIT provides customized solutions and integrated technology to Chinese governments. These include extensive monitoring and management expertise following engineering and system integration. Future strategies include broadening product offerings by extending product lines to upstream and down- stream business segments, strengthening research, building alliances with research institutions, diversi- fying client base and seeking early entry into new markets or other countries. TRIT intends to continue employing modified BTO models, exploring over- seas business opportunities and seeking candidates for merger and acquisition opportunities as well.

Lines of Service



Wastewater and Tail Gas Treatment
TRIT's sewage treatment, water recycling and sew- age water pipeline network technologies include automation and management systems for large cities. TRIT enables a city to electronically control its systems to react to chemical and other changes and to ensure safe and efficient treatment of sew- age. These systems also allow smaller municipalities to reuse and recycle both grey water and indus- trial waste water. TRIT also provide electrical and mechanical equipment for pump stations, municipal water supply plants and distribution pipelines. Other services include patented biofiltration odor control systems, chemical scrubbing odor controls, process control and monitoring systems and sewage treat- ment operation management systems for recycling.

Water Resource Management
TRIT is a leader in drought and flood control through the use of remote terminals that provide multiple levels of data including rainfall measurement and early warnings for small watershed flood hazards. Groundwater is monitored for water quality using remote terminal systems. For water resource utiliza- tion and management, TRIT has developed irriga- tional and agricultural water conservation systems, a national flood control system for river basins, damp controls for reservoirs, water resource equip- ment monitoring systems, mountain torrent forecast systems and special software platforms and tools for decision making, as well as systems for managing municipal water supplies.

Recent News
Tri-Tech Holding Announces New Senior Executive Appointments
Tri-Tech Holding Q2’10 Revenue Up 157.8% to $8.1M; Net Income Up 66.9% to $1.4M; YTD Revenue Up 105.9% to $12.3M; EPS $0.34
Tri-Tech Holding Closes Acquisition of Beijing Satellite Science & Technology Co.
Tri-Tech Holding Announces Agreement To Acquire Beijing Satellite Science & Technology Co.
Tri-Tech Holding To Report Q2 2010 Financial Results August 13

    Risk Factors
  • Single industry focus
  • Significant competition from competitors and new market entrants
  • Company unknown in U.S.
  • Continuing U.S. investor interest in Chinese companies

The Outlook From 2005 through 2010, China’s environmen- tal investment is expected to be approximately $184.2B and it is estimated that $39.5B of that is to be used for water resource management, urban water management, wastewater treatment, and sew- age reuse. Between 2007 and 2009, the Chinese spent approximately $526M to establish a National Water Resources Management System.

In November 2008, the Chinese government announced a $585B stimulus package in response to the global economic crisis. This included approximately$3.3B for environmental projects. China’s spending in water resources, environmental protection and other infrastructure increased 54.5% year to year. The second tranche of central govern- ment funding $4.6 billion was allocated to rural infrastructure projects, of which $1.6 billion was allocated to environmental projects. According to the budget plan announced by Ministry of Water Resources, China expected to invest $11.7 billion in 2009 in water resources sectors. China’s central government has allocated $3.8 billion in the first half of 2009. With the projects the central govern- ment has approved, this investment is expected to increase to $45 billion in the aggregate over the next three years.

TRIT is currently pursuing 100 small river basin flood monitoring and forecasting systems in more than 100 counties with a market potential of $72.5M. Projects for water monitoring and dispatching sys- tems of the Northward Rerouting of Southern River engineering construction are being pursued through distributors and partnerships with a potential value of $43.5M. TRIT is also pursuing wastewater treat- ment projects in Tianjin Binhai New Area where over 40 large pumping stations and 30 sewage treatment plants are being built with a market potential of $8.7B.

Tianjin Central's storm and sanitary sewage construction and pipe retrofit- ting construction offer a potential mar- ket of $704.4M and $70.6M. Hebei Province plans to construct 50 sewage and grey water reuse treatment plants in the next two years.

TRIT is also seeking business in the industrial wastewater and process tail gas treatment markets for the petro- chemical industry. Increased sales are expected from nationwide projects proposed by the Ministry of Water Resources. Increased sales are also anticipated from long-distance water transfer projects in major cities includ- ing Beijing, Tianjin and Shijiazhuang where TRIT is already engaged. TRIT plans to increase its workforce and is setting up new offices.

Use of IPO Proceeds
Tri-Tech received net proceeds of $10.18M after its IPO last Sept.

Description of Use
%Net Proceeds
Working Captial
50%
Product R & D
20%
Application Expansion
15%
Sales and Marketing
15%
Management
Chairman, CEO and Director-
Warren Zhao

President-
Phil Fan

Chief Financial Officer -
Peter Dong

Director-
David Hu

Director-
Dr. Peiyao Zhang

Director-
Dr. Xiaoping Zhou

Director-
Robert W. Kraft

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