UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest event Reported): March 31, 2014
THT HEAT TRANSFER TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Nevada | 001-34812 | 20-5463509 |
(State or other jurisdiction | (Commission File Number) | (IRS Employer Identification No.) |
of incorporation or organization) |
THT Industrial Park
No.5 Nanhuan Road, Tiexi
District
Siping, Jilin Province 136000
People's Republic of
China
(Address of principal executive offices)
86-434-3265241
(Registrant's telephone number,
including area code)
_______________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Item 2.02. Results of Operations and Financial Condition.
On March 31, 2014, THT Heat Transfer Technology, Inc., a Nevada Corporation (the Company) issued a press release announcing 2013 earnings and financial forecasts of the first quarter of 2014. A copy of the press release is hereby furnished as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall such information or such exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
Reference is made to the disclosure set forth under Item 2.02 above, which disclosure is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 | Press release dated March 31, 2014 |
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THT HEAT TRANSFER TECHNOLOGY, INC.
Date: March 31, 2014 | /s/ Guohong Zhao |
Guohong Zhao | |
Chief Executive Officer |
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EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Press release dated March 31, 2014 |
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Exhibit 99.1
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
SIPING, CHINA March 31, 2014 THT Heat Transfer Technology, Inc. (Nasdaq: THTI) (THT or the Company), a leading provider of heat exchangers and heat exchange solutions in Chinas clean technology industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2013.
Fourth Quarter 2013 (Unaudited) Financial Highlights
Fiscal Year 2013 (Audited) Financial Highlights
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.
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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 Chinas tightened credit policy which gave rise to delayed delivery schedules and delayed payments by our customers.
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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 personnels 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.
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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 Companys 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 exchangers play an integral part in helping customers improve energy efficiency. Used in a number of industries, THTs 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.
THTs 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.
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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 -
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THT Heat Transfer Technology, Inc. |
Audited Consolidated Balance Sheets |
As of December 31, 2013 and 2012 |
(Stated in thousands of US Dollars) |
December | December | |||||
31,2013 | 31,2012 | |||||
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 |
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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 interest | (53 | ) | (16 | ) | ||
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 |
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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 activities | 2,893 | 4,316 | ||||
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 cash equivalents | 217 | 78 | ||||
Net (decrease) / increase in cash and cash equivalents | (1,621 | ) | 3,363 | |||
Cash and cash equivalents at beginning of the period | 10,703 | 7,340 | ||||
Cash and cash equivalents at end of the period | 9,082 | 10,703 |