Tri-Tech (NASDAQ:TRIT)

The Company may require additional capital to undertake new and larger projects or to complete strategic acquisitions in the future. In the event its current capital is insufficient to fund these and other business plans, the Company may take the following actions to meet such working capital needs:

  •   The Company may look into the possibilities for optimizing its funding structure by obtaining short- and/or long-term debt through commercial loans. In 2010, the Company obtained a credit line from Bank of Hangzhou for RMB 100,000,000 (approximately $15,000,000). The Company is also actively exploring opportunities with other major Chinese banks, such as ICBC and CITIC Bank, and it expects to acquire more lines of credit to enable it to gain more project opportunities in the future. Other financing instruments into which it is currently looking include supply chain financing, project financing, trust fund financing and capital leasing.

  •   The Company may improve its collection of accounts receivable. Most of its clients are central, provincial and local governments. The Company believes that its clients are in good financial positions. Therefore, it expects to collect more cash from its relatively high accounts receivable, and use the cash collected in business expansion. The accounts receivable collection should catch up with its rapid growth in the near future.