UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10−Q

(Mark One)

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: ~~June~~September 30, 2017

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________to _____________

Commission File Number: 001-34812

THT HEAT TRANSFER TECHNOLOGY, INC.
(Exact Name of Registrant as Specified in Its Charter)

Nevada	20-5463509
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
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, Zip Code)

86-434-3265241
(Registrant’s telephone number, including area code)

_____________________________________________________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [ X ] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ X ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] (Do not check if a smaller reporting company) Smaller reporting company [ X ] Emerging ~~Growth~~growth ~~Company~~company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [ X ]

The number of shares outstanding of each of the issuer’s classes of common stock, as of ~~August~~November 1514, 2017 is as follows:

Class of Securities		Shares Outstanding
Common Stock, $0.001 par value		20,453,500

THT HEAT TRANSFER TECHNOLOGY, INC. Quarterly Report on Form 10-Q Period Ended ~~June~~September 30, 2017

TABLE OF CONTENTS

PART I		1
FINANCIAL INFORMATION		ii
ITEM 1.	FINANCIAL STATEMENTS.	1
ITEM 1.FINANCIAL STATEMENTS.		ii
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	11
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.		10
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	18
ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.		18
ITEM 4.	CONTROLS AND PROCEDURES.	18
ITEM 4. CONTROLS AND PROCEDURES.		18
PART II		19
OTHER INFORMATION		19
ITEM 1.	LEGAL PROCEEDINGS.	19
ITEM 1A.	RISK FACTORS.	19
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES.	19
ITEM 4.	MINE SAFETY DISCLOSURES.	19
ITEM 5.	OTHER INFORMATION.	19
ITEM 6.	EXHIBITS.	1921

PART I
FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

THT HEAT TRANSFER TECHNOLOGY, INC. CONSOLIDATED ~~FINANCIAL~~ FINANCIAL STATEMENTSFOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~JUNE~~ SEPTEMBER 30, 2017 AND 2016

	Pages
	Pages(s)
Consolidated Balance Sheets (Unaudited)	2F-1
Consolidated Statements of Income and Comprehensive Loss (Unaudited)	3F-2
Consolidated Statements of Cash Flows (Unaudited)	4
Consolidated Statements of Changes in Equity (Unaudited)	F-3
Notes to Unaudited Consolidated Financial Statements	5-10
Consolidated Statements of Cash Flows (Unaudited)	F-4
Notes to Unaudited Consolidated Financial Statements	F-5- F-10

1ii

THT Heat Transfer Technology, Inc. Consolidated Balance Sheets ~~Sheet~~ (Stated in US dollars)

		June 30,			December 31,
		September 30,			December 31,
		2017			2016
		(Unaudited)
ASSETS
Current assets
Current Assets
Cash and cash equivalents	$	42,~~211~~631,~~863~~367		$	6,609,680
Restricted cash, current		~~817~~633,~~637~~427			974,749
Trade receivables, net		3329,~~849~~766,~~248~~530			37,074,481
Trade receivables - related party		~~245,065~~-			1,358,399
Bills receivable		1,~~810~~475,~~137~~717			398,374
Other receivables, prepayments and deposits, net		814,~~545~~532,~~563~~629			8,904,968
Due from related parties		2,~~007~~037,~~804~~103			1,839,932
Inventories, net		2537,~~202~~965,~~002~~154			21,087,301
Total Current Assets		7689,~~689~~041,~~319~~927			78,247,884
Restricted cash, non-current		1,~~042~~114,~~139~~549			514,201
Retention receivable		~~834~~1,~~768~~241,313			1,653,956
Property, plant and equipment, net		8,~~559~~587,~~875~~274			8,437,632
Land use rights, net		5,~~171~~236,~~162~~446			5,104,121
Deferred tax assets		~~633~~528,~~925~~427			149,525
TOTAL ASSETS	$	92105,~~931~~749,~~188~~936		$	94,107,319
LIABILITIES & SHAREHOLDERS’ EQUITY
LIABILITIES & EQUITY
Current Liabilities
Accounts payable	$	513,~~619~~423,~~442~~389		$	6,727,206
Other payables and accrued liabilities		2124,~~486~~213,~~356~~940			20,525,878
Income tax payable		-12,323			511,314
Short-term loans		4,~~721~~808,~~923~~776			4,608,494
Due to related parties		16,~~380~~280,~~881~~558			383,232
Total Current Liabilities		3348,~~208~~738,~~602~~986			32,756,124
TOTAL LIABILITIES		3348,~~208~~738,~~602~~986			32,756,124
SHAREHOLDERS’ EQUITY
EQUITY
Preferred stock, $.001 par value, 10,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock, $.001 par value, 190,000,000 shares authorized, 20,453,500 shares issued and outstanding at June 30, 2017 and December 31, 2016		20,454			20,454
Common stock, $.001 par value, 190,000,000 shares authorized, 20,453,500 shares issued and outstanding at September 30, 2017 and December 31, 2016		20,454			20,454
Additional paid-in capital		2627,~~524~~136,~~324~~310			26,524,324
Statutory reserve		4,270,861			4,270,861
Retained earnings		2924,~~297~~254,~~188~~815			32,366,400
Accumulated other comprehensive loss		(390,241	)		(1,830,844	)
Accumulated other comprehensive income (loss)		657,334			(1,830,844	)
TOTAL SHAREHOLDERS’ EQUITY		59,722,586			61,351,195
Total THT Heat Transfer Technology Inc. Shareholders’ Equity		56,339,774			61,351,195
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	92,931,188		$	94,107,319
Non-controlling interest		671,176			-
TOTAL EQUITY		57,010,950			61,351,195
TOTAL LIABILITIES AND EQUITY	$	105,749,936		$	94,107,319

The accompanying notes are an integrated part of these unaudited consolidated financial statements

2F-1

THT Heat Transfer Technology, Inc.
Consolidated Statements of Income and Comprehensive Loss
(Stated in US dollars)
(Unaudited)

		For the six months ended June 30,						For the three months ended June 30,
		For the nine months ended						For the three months ended
		September 30,						September 30,
		2017			2016			2017			2016
Revenues:
Sales revenue	$	1124,~~540~~861,~~890~~019		$	1120,~~914~~720,~~496~~004		$	713,~~542~~320,~~784~~129		$	78,~~813~~805,~~670~~647
Sales revenue - related party		8,232			342,~~089~~882			-			339,~~089~~654
Total Revenues		1124,~~549~~869,~~122~~251			1120,~~917~~762,~~585~~886			713,~~542~~320,~~784~~129			78,~~816~~845,~~759~~301
Cost of Revenues		(6,854,567	)		(7,464,516	)		(4,686,741	)		(4,491,790	)
Cost of revenues		(20,572,238	)		(13,066,894	)		(13,717,671	)		(5,602,378	)
Gross Profit		4,~~694~~297,~~555~~013			47,~~453~~695,~~069~~992			2(397,~~856,043~~542	)		3,~~324~~242,~~969~~923
Operating Expenses
Operating Expenses:
General and Administrative expenses		2,677,819			2,510,597			1,855,218			1,057,606
General and administrative expenses		5,047,734			4,153,756			2,369,915			1,643,159
Research and development expenses		~~732~~1,~~575~~144,441			~~531~~1,~~901~~139,973			~~414~~411,~~577~~866			~~112~~608,~~044~~072
Selling expenses		46,~~774~~136,~~451~~642			34,~~704~~498,~~436~~080			21,~~552~~362,~~403~~191			1793,~~808,455~~644
Total Operating Expenses		812,~~184~~328,~~845~~817			69,~~746~~791,~~934~~809			4,~~822~~143,~~198~~972			23,~~978~~044,~~105~~875
Income (Loss) from Operations		(38,~~490~~031,~~290~~804	)		(2,~~293~~095,~~865~~817	)		(14,~~966~~541,~~155~~514	)		~~346~~198,~~864~~048
Other Income (Expenses)
Other Income (Expenses):
Interest income		69,~~509~~742			913,~~328~~335			3,~~239~~233			54,~~767~~007
Other income		50119,~~345~~475			91129,~~809~~349			769,~~360~~130			9929,~~455~~889
Finance costs		(~~119~~178,~~564~~942	)		(3497,~~722~~217	)		(6159,~~352~~378	)		(1662,~~148~~495	)
Investment income		2829,~~943~~235			820,~~793~~972			~~5,469~~292			512,~~932~~179
Other expense		(18483,~~526~~087	)		-(72,904	)		(18464,~~526~~561	)		-(65,253	)
Total Other Income (Expenses)		(52,293	)		75,208			(63,810	)		95,006
Total Other Expenses		(503,577	)		(6,465	)		(451,284	)		(81,673	)
Income (Loss) before Income Taxes		(3,542,583	)		(2,218,657	)		(2,029,965	)		441,870
Income (loss) before income taxes		(8,535,381	)		(2,102,282	)		(4,992,798	)		116,375
Income Tax Benefit (Expense)		473,371			251,091			321,949			(94,028	)
Income tax benefit (expense)		363,587			274,492			(109,784	)		23,401
Net Income (Loss)	$	(38,~~069~~171,~~212~~794	)	$	(1,~~967~~827,~~566~~790	)	$	(15,~~708~~102,~~016~~582	)	$	~~347~~139,~~842~~776
Net loss attributable to non-controlling interest		(60,209	)		-			(60,209	)		-
Net Income (Loss) Attributable to THT Heat Transfer Technology, Inc. common shareholders	$	(8,111,585	)	$	(1,827,790	)	$	(5,042,373	)	$	139,776
Comprehensive Loss
Net Income (Loss)	$	(3,069,212	)	$	(1,967,566	)	$	(1,708,016	)	$	347,842
Net income (loss)	$	(8,171,794	)	$	(1,827,790	)	$	(5,102,582	)	$	139,776
Other Comprehensive Income (Loss)
Other comprehensive income (loss)
Foreign currency translation adjustments		12,~~440~~488,~~603~~178			(1,~~386~~649,~~991~~056	)		~~975~~1,~~020~~047,592			(1262,~~761,306~~065	)
Comprehensive Loss	$	(15,~~628~~683,~~609~~616	)	$	(3,~~354~~476,~~557~~846	)	$	(~~732~~4,~~996~~054,990	)	$	(1122,~~413,464~~289	)
Earnings (Loss) per common share
Less: comprehensive loss attributable to non- controlling interest		(60,209	)		-			(60,209	)		-
Basic and diluted	$	(0.15	)	$	(0.10	)	$	(0.08	)	$	0.02
Comprehensive Loss Attributable to THT Heat Transfer Technology, Inc. common shareholders	$	(5,623,407	)	$	(3,476,846	)	$	(3,994,781	)	$	(122,289	)
Earnings (loss) per share attributable to THT Heat Transfer Technology, Inc. common shareholders
Basic and Diluted	$	(0.40	)	$	(0.09	)	$	(0.25	)	$	0.01
Weighted average number of shares outstanding
Basic and diluted		20,453,500			20,453,500			20,453,500			20,453,500

The accompanying notes are an integrated part of these unaudited consolidated financial statements

3 F-2

THT Heat Transfer Technology, Inc.
Consolidated Statement of Changes in Equity
(Stated in US dollars)

	THT Heat Transfer Technology, Inc.
	Common Stock								Accumulated
	No. of Shares		Amount		Additional Paid-in Capital		Statutory Reserve		Other Comprehensive Income			Retained Earnings			Non- controlling Interest			Total Shareholders' Equity
Balance, December 31, 2015	20,453,500	$	20,454	$	26,524,324	$	3,943,474	$	2,381,097		$	29,446,126		$	-		$	62,315,475
Net income												3,247,661						3,247,661
Foreign currency translation adjustment									(4,211,941	)								(4,211,941	)
Appropriation to reserve							327,387					(327,387	)					-
Balance, December 31, 2016	20,453,500	$	20,454	$	26,524,324	$	4,270,861	$	(1,830,844	)	$	32,366,400		$	-		$	61,351,195
Net loss												(8,111,585	)		(60,209	)		(8,171,794	)
Foreign currency translation adjustment									2,483,913						12,146			2,496,059
Contribution from non-controlling investor in subsidiary					611,986				4,265						719,239			1,335,490
Balance, September 30, 2017 (unaudited)	20,453,500	$	20,454	$	27,136,310	$	4,270,861	$	657,334		$	24,254,815		$	671,176		$	57,010,950

The accompanying notes are an integrated part of these unaudited consolidated financial statements

F-3

THT Heat Transfer Technology, Inc.
Consolidated Statements of Cash Flows
(Stated in US dollars)
(Unaudited)

		For the Six Months ended June 30,
		For the Nine Months ended September 30,
		2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(38,~~069~~171,~~212~~794	)	$	(1,~~967~~827,~~566~~790	)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on sales of property, plant and equipment		~~336~~340			-
Depreciation and amortization		~~585~~890,~~382~~456			~~710~~1,~~398~~026,090
Deferred tax assets		(~~473~~364,~~908~~130	)		(~~251~~274,~~091~~492	)
Allowance for doubtful accounts		~~652~~2,~~766~~190,140			~~680~~810,~~808~~583
Inventory write-down		4,717,317			-
Changes in operating assets and liabilities:
Trade receivables, net		36,~~564~~670,~~582~~507			34,~~090~~616,~~853~~060
Trade receivables - related party		1,~~130~~385,~~521~~944			-9,631
Bills receivable		(1,~~382~~036,~~093~~480	)		(~~831~~1,~~034~~303,617	)
Other receivables, prepayments and deposits		65(5,~~317~~634,386	)		13,~~194~~077,~~637~~675
Inventories, net		(320,~~544~~324,~~733~~121	)		(19,~~235~~643,~~333~~311	)
Retention receivable		~~847~~473,~~713~~758			1686,~~020,317~~131
Due from related parties		30,~~225~~083			(4,~~887~~911,~~120~~690	)
Accounts payable		(16,~~262~~153,~~249~~971	)		~~156~~2,~~860~~997,828
Other payables and accrued expenses		~~462~~2,~~912~~761,179			~~(157~~2,~~782~~940,391	)
Income taxes payable		(~~516~~509,~~476~~633	)		~~176~~175
NET CASH USED IN OPERATING ACTIVITIES		(210,~~908~~766,~~917~~849	)		(21,~~475~~796,~~877~~336	)
CASH FLOWS FROM INVESTING ACTIVITIES
Change in restricted cash		(~~329~~189,~~443~~999	)		(~~104~~117,~~847~~046	)
Proceeds from disposal of property, plant and equipment		~~324~~61,221			-724
Payments to acquire property, plant and equipment		(~~437~~483,~~112~~803	)		(2647,~~020~~589	)
Loans made to others		(1,742,110	)		(~~619~~975,~~704~~743	)
Loans made to related party		(~~383~~440,~~825~~679	)		(~~204~~418,~~289~~211	)
Repayments from others		2,112,475			-
Repayments from related party		232,751			~~122~~156,~~410~~097
NET CASH FLOWS USED IN INVESTING ACTIVITIES		(~~546~~450,~~940~~144	)		(~~832~~1,~~450~~401,768	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceed from bank loan		4,710,080			11,571,429
Proceeds from bank loans		9,516,833			12,781,187
Repayment to bank loan		(4,664,845	)		(12,729,135	)
Repayments to bank loans		(9,465,974	)		(14,010,820	)
Proceeds from related parties		16,~~839~~959,~~765~~146			-45,598
Repayments to related parties		(~~879~~1,~~638~~236,399	)		-(75,997	)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES		1,005,362			(1,157,706	)
Contribution from non-controlling investor		1,335,490			-
Effect of foreign currency translation on cash and cash equivalents		52,678			(132,590	)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES		7,109,096			(1,260,032	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(2,397,817	)		(4,598,623	)
Effect of foreign currency translation on cash and cash equivalents		129,584			(203,176	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		6,609,680			9,680,293
NET DECREASE IN CASH AND CASH EQUIVALENTS		(3,978,313	)		(4,661,312	)
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	4,211,863		$	5,081,670
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		6,609,680			9,680,293
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	2,631,367		$	5,018,981
Supplementary Disclosures for Cash Flow Information:
Interest paid	$	~~111~~166,~~376~~617		$	2997,~~733~~114
Income taxes paid	$	~~538~~543,~~176~~601		$	21,494
Non-cash investing and financing activities:
Operating expense paid by related party	$	14,088		$	-
Operating expense paid by related parties	$	27,275		$	-
Liabilities assumed in connection with purchase of property, plant and equipment	$	6107,~~936~~581		$	31482,~~949~~269

The accompanying notes are an integrated part of these unaudited consolidated financial statements

F-4

THT Heat Transfer Technology, Inc.
Notes to Unaudited Consolidated Financial Statements
(Unaudited)
(Stated in US Dollars)

1. Corporate information

THT Heat Transfer Technology, Inc. (the “Company” or “THT” or the “Surviving Corporation”) is a Nevada corporation with major operations in the People's Republic of China (the "PRC").

2. Description of business

The Company is a holding company whose primary business are conducted through its subsidiaries, namely ~~Siping~~SipingJuyuan ~~Juyuan~~ which is located in the Jilin Province and Beijing Juyuan which is located in Beijing City of the PRC. The Company is engaged in the manufacturing and trading of plate heat exchangers and various related products.

~~Siping~~SipingJuyuan ~~Juyuan~~ was established in the PRC on May 31, 2006 following the division (the “Division”) of Siping City Juyuan Heat Exchange Equipment Co., Ltd. (“Old Juyuan Company”) into three companies, namely ~~Siping Juyuan~~SipingJuyuan, Siping City Juyuan Heat Exchange Equipment Co., Ltd. (“New Juyuan Company”) and Siping City JuyuanHanyang Pressure Vessels Co., Ltd (“JuyuanHanyang Pressure Vessels”).

3. Summary of significant accounting policies

Basis of presentation and consolidation

The accompanying unaudited consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements and accompanying notes thereto for the year ended December 31, 2016 filed with the SEC in the Company’s Form 10-K on April 17, 2017.

In the opinion of the management of the Company, all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the ~~six~~nine-month period have been made. Results for the interim periods presented are not necessarily indicative of the results that might be expected for the entire fiscal year.

Certain amounts from prior year have been reclassified to conform to the current year presentation. ~~The~~This reclassification has resulted in no change to the Company’s retained earnings or net income presented.

The consolidated financial statements include the financial statements of the Company and its majority owned subsidiaries. All significant inter-company balances and transactions have been eliminated on consolidation.

F-5

Non-controlling Interest

Non-controlling interest on the consolidated balance sheets is resulted from the consolidation of SipingJuyuan, a 98.82% owned subsidiary starting from July 27, 2017. The portion of the income or loss applicable to non-controlling interest in subsidiary is reflected in the consolidated statements of income and comprehensive loss.

Fair value of financial instruments

Accounting Standards Codification (“ASC”) Topic 820 requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which fair value option was not elected. As of ~~June~~September 30, 2017 and December 31, 2016, the carrying amounts of the Company’s financial assets and liabilities approximated their fair values due to short maturities or the applicable interest rates approximated the current market rates.

Recently issued accounting pronouncements

In January 2017, the FASB issued ASU 2017-03, “Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323)”. This pronouncement amends the SEC's reporting requirements for public filers in regard to new accounting pronouncements or existing pronouncements that have not yet been adopted. Companies are to provide qualitative disclosures if they have not yet implemented an accounting standards update. Companies should disclose if they are unable to estimate the impact of a specific pronouncement, and provide disclosures including a description of the effect on accounting policies that the registrant expects to apply. These provisions apply to all pronouncements that have not yet been implemented by registrants. There are additional provisions that relate to corrections to several other prior FASB pronouncements. The Company has incorporated language into other recently issued accounting pronouncement notes, where relevant for the corrections in FASB ASU 2017-03. The Company is implementing the updated SEC requirements on not yet adopted accounting pronouncements with these consolidated financial statements.

4. ~~Trade~~Non-controlling ~~receivables,~~Interest ~~net~~

		June 30,			December 31,
		2017			2016
		(Unaudited)
Trade receivables	$	42,543,934		$	45,050,908
Less: Allowance for doubtful accounts		(8,694,686	)		(7,976,427	)
	$	33,849,248		$	37,074,481

On July 27, 2017, Jilin Science and Technology Fund Operation and Service Center (the “Center”), an organization controlled by local government, contributed RMB9,000,000 ($1,335,490) in cash in SipingJuyuan in order to obtain a 1.18% ownership interest in SipingJuyuan.

The following schedule discloses the changes in the Company’s ownership interest in SipingJuyuan on the Company’s equity:

An analysis of the allowance for doubtful accounts for the six months ended June 30, 2017 and 2016 is as follows:

		Nine months ended September 30,
		(Unaudited)
		2017			2016
Net loss attributable to THT Heat Transfer Technology, Inc. common shareholders	$	(8,111,585	)	$	(1,827,790	)
Transfer from the non-controlling interest
Increase in THT Heat Transfer Technology, Inc.'s paid-in capital for contribution from non-controlling investor		611,986			-
Net transfer from non-controlling interest		611,986			-
Change from loss attributable to THT Heat Transfer Technology, Inc. common shareholders and transfer from non-controlling interest	$	(7,499,599	)	$	(1,827,790	)

		Six months ended
		June 30,
		(Unaudited)
		2017		2016
Balance at beginning of period	$	7,976,427	$	7,689,089
Adjustment of bad debt expense		514,540		676,027
Translation adjustments		203,719		(187,725	)
Balance at end of period	$	8,694,686	$	8,177,391

5. Trade receivables, net

		September 30,			December 31,
		2017			2016
		(Unaudited)

Trade receivables	$	40,186,719		$	45,050,908
Less: Allowance for doubtful accounts		(10,420,189	)		(7,976,427	)
	$	29,766,530		$	37,074,481

5.An ~~Inventories~~analysis of the allowance for doubtful accounts for the nine months ended September 30, ~~net~~2017 and 2016 is as follows:

		June 30,			December 31,
		Nine months ended
		2017			2016
		September 30,
		(Unaudited)
Raw materials	$	7,410,684		$	7,626,337
		2017			2016
Work-in-progress		5,189,730			2,831,115
Balance at beginning of period	$	7,976,427		$	7,689,089
Finished goods		12,619,593			10,647,422
Adjustment of bad debt expense		2,050,522			725,909
		25,220,007			21,104,874
Translation adjustments		393,240			(228,543	)
Allowance for obsolete inventories		(18,005	)		(17,573	)
Balance at end of period	$	10,420,189		$	8,186,455
	$	25,202,002		$	21,087,301

NoF-6 ~~allowance for obsolete inventories was recognized during the six months ended June 30, 2017 and 2016.~~

6. ~~Income~~Inventories, ~~tax~~net

The effective tax rate was -16% and 21% for the three-month period ended June 30, 2017 and 2016, respectively. The effective tax rate was -13% and -11% for the six-month period ended June 30, 2017 and 2016, respectively.

		September 30,			December 31,
		2017			2016
		(Unaudited)

Raw materials	$	16,864,023		$	7,626,337
Work-in-progress		7,024,391			2,831,115
Finished goods		18,919,577			10,647,422
		42,807,991			21,104,874
Inventory write-down		(4,842,837	)		(17,573	)
	$	37,965,154		$	21,087,301

7.The ~~Property~~Company recognized inventory write-down of $4,717,317 ~~plant~~and $nil for the nine months ended September 30, 2017 and ~~equipment~~2016, ~~net~~respectively.

As7. ofIncome ~~June~~tax ~~30, 2017 and December 31, 2016, property, plant and equipment with net book values of $4,904,412 and $4,949,198, respectively, were pledged as collateral under certain loan arrangements (see Note 9).~~

8The effective tax rate was 2% and -20% for the three months period ended September 30, 2017 and 2016, respectively. ~~Land~~The ~~use~~effective ~~rights~~tax rate was -4% and -13% for the nine months period ended September 30, ~~net~~2017 and 2016, respectively.

As8. ~~of June 30~~Property, ~~2017~~plant and ~~December 31~~equipment, ~~2016, land use rights with~~ net ~~book values of $5,171,162 and $5,104,121, respectively, were pledged as collateral under certain loan arrangements (see Note 9).~~

~~During~~As ~~the~~of ~~six~~September ~~months ended June~~ 30, 2017 and December 31, 2016, ~~amount~~property, plant ~~recognized~~and ~~for~~equipment ~~amortization~~with ofnet ~~land~~book ~~use~~value ~~rights~~of ~~was~~ $573,~~757~~103,924 and $604,~~752~~949, 198, respectively, was pledged as collateral under certain loan arrangements (see Note 10).

7During the nine months ended September 30, 2017 and 2016, amount recognized for depreciation of property, plant and equipment was $802,947 and $935,568, respectively.

9. ~~Short-term~~Land ~~loans~~use rights, net

As of September 30, 2017 and December 31, 2016, land use rights with net book values of $851,894 and $5,104,121, respectively, were pledged as collateral under certain loan arrangements (see Note 10).

During the nine months ended September 30, 2017 and 2016, amount recognized for amortization of land use rights was $87,509 and $90,522, respectively.

F-7

10. Short-term loans

Short-term bank loans

On May 31, 2016, the Company entered into a one-year loan agreement with Agricultural Bank of China (“ABC”), pursuant to which the Company obtained a loan in the amount of RMB32,000,000, or $4,664,845, payable on May 30, 2017. The loan carries an interest rate of 4.785% per annum and the interest is payable monthly. The loan was repaid in full on May 26, 2017. On June 6, 2017, the Company entered into another one-year loan agreement with Agricultural Bank of China to obtain a loan in the amount of RMB32,000,000, or $4,710,080, payable on June 6, 2018 with the same interest rate payable monthly.

On June 6, 2017, the Company entered into another one-year loan agreement with ABC to obtain a loan in the amount of RMB32,000,000, or $4,801,115, payable on June 5, 2018. The loan carries an interest rate of 4.785% per annum and the interest is payable monthly. The loan was paid in full on August 11, 2017.

On August 10, 2017, the Company entered into a one-year loan agreement with Industrial and Commercial Bank of China (“ICBC”), pursuant to which the Company obtaind a loan in the amount of RMB32,000,000, or $4,806,753, payable on August 9, 2018. The loan carries an interest rate of 4.611% per annum and the interest is payable monthly.

The bank loans discussed above were secured by the following assets of the Company:

		June 30,		December 31,
		September 30,		December 31,
		2017		2016
		(Unaudited)
Property, plant and equipment (Note 7)	$	4,904,412	$	4,949,198
Property, plant and equipment (Note 8)		3,103,924		4,949,198
Land use rights (Note 8)		5,171,162		5,104,121
Land use rights (Note 9)		851,894		5,104,121
	$	103,~~075~~955,~~574~~818	$	10,053,319

Short-term loans from unrelated party

During the year ended December 31, 2016, the Company borrowed funds from a third party individual in the amount of RMB53,487,813 (approximately $8,052,000) and repaid RMB93,577,813 (approximately $14,087,000). As of December 31, 2016, the balance of loan from unrelated party was $nil. The Company also advanced RMB2,521,787 (approximately $380,000) to this individual during the year ended December 31, 2016. The advance bears no interest and is due on demand. The net advance was included in other receivables, prepayments and deposits, net.

During the ~~six~~nine months ended ~~June~~September 30, 2017, the Company ~~advanced~~ advanced additional funds to this third party individual in the amount of RMB12,000,000, or $1,742,110 and received RMB14,521,787, or $2,112,475 as repayment for all outstanding advances.

For the ~~six~~nine months ended ~~June~~September 30, 2017 and 2016, the ~~Company~~ Company included interest expense related to short-term loans of $~~111~~166,~~376~~617 and $2989,~~733~~011, respectively, in finance costs.

F-8

1011. Segment information

The Company is solely engaged in the manufacturing and trading of plate heat exchangers and various related products. Since the nature of the products, their production processes, and their distribution methods are ~~substantially~~ substantially similar, they are considered as a single reportable segment under ASC 280 “Segment Reporting”. ”

The Company’s sales revenues by products for the ~~six~~nine months ended ~~June~~September 30, 2017 and 2016 were as follows:

		Six months ended June 30,
		Nine months ended September 30,
		2017	%		2016	%
		(Unaudited)			(Unaudited)
Plate heat exchanger	$	510,~~818~~694,~~987~~395	5043	$	59,~~075~~867,~~804~~781	4348
Heat exchange unit		27,~~840~~463,~~480~~516	2530		46,~~336~~929,~~349~~784	3633
Air-cooled heat exchanger		89133,~~905~~511	1		-270,212	-1
Shell-and-tube heat exchanger		2185,~~823~~818	-1		~~272,023~~-	2-
Others		26,~~796~~392,~~927~~011	2425		23,~~233~~695,~~409~~109	1918
	$	1124,~~549~~869,~~122~~251	100	$	1120,~~917~~762,~~585~~886	100

All of the Company’s long-lived assets and revenues classified based on the customers are located in the PRC.

1112. Related party transactions

The related parties consist of the following:

Name of Related Party Nature of Relationship Guohong Zhao Chairman, Chief Executive Officer and President Zhigang Xu Interim Chief Financial Officer, Treasurer and Secretary Fucai Zhan Vice President of R&D and Director Kai Liu Chief Engineer, Manager of Market development Others Group of individuals who have significant influence over the Company Jilin Tongda Heat Transfer System Integration, Ltd. (“Tongda”) The Company has significant influence onover Tongda Liaoning Hongsheng Heat Energy Technology, Ltd. (“Hongsheng”) The Company has significant influence onover Hongsheng

F-9

Trade receivables – related party

During the ~~six~~nine months ended ~~June~~September 30, 2017 and 2016, the ~~Company~~ Company sold products to Tongda in the amount of $8,232 and $342,~~089~~822, respectively. The corresponding costs of the related party sales were $3,750 and $129,~~731~~772, , respectively. As of ~~June~~September 30, 2017 and December 31, 2016, the Company had trade receivables from Tongda in the amount of $~~245,065~~nil and $1,358,399, respectively.

Due from related parties

As of ~~June~~September 30, 2017 and December 31, 2016, respectively, ~~the~~ the Company advanced $nil and $31,978 to Guohong Zhao for handling selling and logistic activities for the Company in the ordinary course of business.

As of ~~June~~September 30, 2017 and December 31, 2016, respectively, ~~the~~ the Company advanced $11,~~274~~481 and $11,003 to Kai Liu for handling selling and logistic activities for the Company in the ordinary course of business.

As of ~~June~~September 30, 2017 and December 31, 2016, respectively, ~~the~~ the Company advanced $2,~~030~~068 and $nil to Zhijun Ma for handling selling and ~~logistic~~ logistic activities for the Company in the ordinary course of business.

As of ~~June~~September 30, 2017 and December 31, 2016, respectively, ~~the~~ ~~Company had advance to Hongsheng in~~ the ~~amount~~Company ofadvanced $~~230,133~~457 and $~~224,532~~nil ~~for inventory~~to ~~purchase~~Fucai ~~prepayment.~~Zhan ~~The~~for ~~amounts~~handling ~~were~~selling ~~included~~and logistic inactivities ~~due~~for ~~from~~the ~~related parties~~Company in the ~~accompanying~~ordinary ~~consolidation~~course ~~balance~~of ~~sheets~~business.

During the six months ended June 30, 2017 and 2016, the Company made loans to Tongda in the amount of $383,825 and $204,289, and Tongda repaid to the Company in the amount of $232,751 and $122,410, respectively. The loans were non-secured, non-interest bearing and due on demand. As of ~~June~~September 30, 2017 and December 31, 2016, respectively, the Company had ~~loans~~advance to ~~Tongda~~Hongsheng in the amount of $1234,~~764,367~~366 and $1224,~~572,419,~~532 ~~respectively,~~for inventory ~~which~~purchase prepayment. The amounts were included in due from related parties in the accompanying consolidation balance sheets.

During the nine months ended September 30, 2017 and 2016, the Company made loans to Tongda in the amount of $440,679 and $418,211, and Tongda repaid to the Company in the amount of $232,751 and $156,097, respectively. The loans were non-secured, non-interest bearing and due on demand.

On December 28, 2016, the Company sold certain used equipment with original cost and net book value of $977,650 and $121,307, respectively, to Tongda in exchange for $1,315,958. During the nine months ended September 30, 2017, the Company collected $60,893 from Tongda for the equipment.

As of September 30, 2017 and December 31, 2016, the aggregated balances, including loans to Tongda and other receivable from Tongda related to sale of property, plant and equipment, of $1,788,731 and $1,572,419, respectively, were included in due from related parties in the accompanying consolidation balance sheets.

Due to related parties

Due to related parties consist of the following:

		June 30,		December 31,
		September 30,		December 31,
		2017		2016
		(Unaudited)
Zhigang Xu	$	~~73,780~~-	$	72,008
Fucai Zhan		~~147~~135,~~632~~247		148,498
Kai Liu		~~147,560~~-		144,015
Others		16,~~009~~140,~~531~~485		18,711
Guohong Zhao		24,~~378~~826		-
	$	16,~~380~~280,~~881~~558	$	383,232

Amounts owed by the Company represent non-secured and non-interest bearing loans obtained from related parties which are due on demand.

~~The Company received loans from office managers and an individual who has significant influence over the Company (collectively the “Others”).~~ During the ~~six~~nine months ended ~~June~~September 30, 2017, the Company was advanced $16,~~783~~959,~~724~~ 146 from the ~~individual~~related parties and made repayment of $~~814~~1,~~628~~236,399 against the borrowings.

~~12.~~F-10 ~~Subsequent events~~

In November 2016, the Company entered into an capital injection agreement with Jilin Science and Technology Fund Operation Service Center (the “Center”), an organization controlled by local government, pursuant to which the Center will invest RMB9,000,000 ($1,335,495) in Siping Juyuan in order to obtain 1.18% of the ownership interest in Siping Juyuan. Based on the agreement, the Center is entitled to the ownership interest after completion of registration process with the local administrative department and the investment. The Company completed the registration on July 20, 2017 and received the investment proceed from the Center on July 27, 2017. The transaction was then consummated.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Special Note Regarding Forward Looking Statements

In addition to historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We use words such as “believe,” “expect,” “anticipate,” “project,” “target,” “plan,” “optimistic,” “intend,” “aim,” “will” or similar expressions which are intended to identify forward-looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those identified in Item 1A “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2016, as well as assumptions, which, if they were to ever materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and our other filings with the SEC. These reports attempt to advise interested parties of the risks and factors that may affect our business, financial condition and results of operations and prospects. The forward-looking statements made in this report speak only as of the date hereof and we disclaim any obligation, except as required by law, to provide updates, revisions or amendments to any forward-looking statements to reflect changes in our expectations or future events.

Use of Terms

Except where the context otherwise requires and for the purposes of this report only:

• “THT,” “Company,” “we,” “us,” or “our” are to the combined business of THT Heat Transfer Technology, Inc., a Nevada corporation, and its consolidated subsidiaries: Megaway, Star Wealth, ~~Siping~~SipingJuyuan ~~Juyuan~~ and Beijing Juyuan; • “Megaway” ~~are~~is to Megaway International Holdings Limited, a BVI company; • “Star Wealth” ~~are~~is to Star Wealth International Holdings Limited, a Hong Kong company; • “~~Siping Juyuan~~SipingJuyuan” ~~are~~is to Siping City Juyuan Hanyang Plate Heat Exchanger Co. Ltd., a PRC company; • “Beijing Juyuan” ~~are~~is to Beijing Juyuan Hanyang Heat Exchange Equipment Co., Ltd., a PRC company; • “BVI” ~~are~~is to the British Virgin Islands; • “Hong Kong” ~~are~~is to the Hong Kong Special Administrative Region of the People’s Republic of China; • “PRC” and “China” are to the People’s Republic of China; • “SEC” ~~are~~is to the Securities and Exchange Commission; • “Exchange Act” ~~are~~is to the Securities Exchange Act of 1934, as amended; • “Securities Act” ~~are~~is to the Securities Act of 1933, as amended; • “Renminbi” and “RMB” are to the legal currency of China; and • “U.S. dollars,” “dollars” and “$” are to the legal currency of the United States. • “Center” or “Investor” are to Jilin Province Technology Fund Operation and Service Center, a non-controlling interest that holds 1.18% ownership interest in SipingJuyuan

Overview of our Business

We are a leading total solution provider in the heat exchange industry. Our major products are plate heat exchangers, heat ~~exchange~~exchanger units, air-cooled heat exchangers and shell-and-tube heat exchangers. Unlike most other heat exchanger manufacturers in China, we not only provide heat exchange products, but also provide total solutions to our customers. As a total solutions provider, we analyze the working condition of our customers, provide optimized designs based on analysis and simulation, offer high quality heat exchange products, and continuously assist our customers in improving the heat exchange process.

Over the past ten years, we have successfully completed over 3,000 projects in more than 15 industries, including metallurgy, heat and power, petrochemical, food and beverage, pharmaceutical and shipbuilding. We have provided heat exchange solutions to Fortune 500 companies, including Shell, BP, BASF, LG, Sinopec and China Shenhua. We have also provided heat exchange products for important Chinese and international projects such as the Beijing 2008 Olympics Wukesong Sports Center, Guangdong Linao nuclear plant and BASF Chemical plant in Germany.

11Our operations are headquartered in Siping, Jilin Province, PRC. Our primary Chinese operating subsidiaries are SipingJuyuan and BeijingJuyuan.

Our operations are headquartered in Siping, Jilin Province, PRC. Our primary Chinese operating subsidiaries are Siping Juyuan and Beijing Juyuan.

Recent Development

In ~~November~~February ~~2016~~2017, ~~the~~SipingJuyuan ~~Company~~signed ~~entered into~~ an ~~capital injection~~ agreement with ~~Jilin Science and Technology Fund Operation Service~~the Center ~~(the~~to ~~“Center”),~~receive ancapital ~~organization~~funding ~~controlled~~from ~~by local government, pursuant to which~~ the Center ~~will~~of ~~invest~~ RMB9,000,000 ~~($1~~,~~335,495)~~ inaccounted ~~Siping Juyuan in~~for ~~order to obtain~~ 1.18% of the ownership interest ~~in Siping Juyuan. Based on the agreement, the Center is entitled to the ownership interest after completion~~ of ~~registration~~ ~~process~~SipingJuyuan ~~with the local administrative department and the~~ post-investment. ~~The~~On ~~Company completed the registration on~~ July 2027, 2017, ~~and~~SipingJuyuan received ~~the~~ ~~investment proceed from~~ the ~~Center~~RMB9,000,000, onor ~~July 27~~$1,335,490, ~~2017.~~and ~~The~~the transaction ~~was~~ ~~then~~was ~~consummated~~completed.

~~Second~~Third Quarter Financial Performance Highlights

The following summarizes certain key financial information for the ~~second~~third quarter of 2017:

• Sales revenue: Sales revenue ~~decreased~~increased by $04.2747 million, or 3.50.59%, to $713.5432 million for the three months ended ~~June~~September 30, 2017, from $78.8185 million for the same period in 2016. • Gross profit: Gross profit decreased by $03.4664 million, or 14112.1026%, to $2(0.8640) million for the three months ended ~~June~~September 30, 2017, from $3.3224 million for the same period in 2016. As a percentage of sales revenue, gross profit decreased by 439.6864%, to 37(2.8698) % for the three months ended ~~June~~September 30, 2017, from 4236.5466% for the same period in 2016. • Net loss attributable to THT Heat Transfer Technology, Inc. common shareholders: Net loss attributable to THT Heat Transfer Technology, Inc. common shareholders increased by $25.0618 million, or ~~591~~3707.0347%, to $15.7104 million for the three months ended ~~June~~September 30, 2017, from net income attributable to THT Heat Transfer Technology, Inc. common shareholders of $0.3514 million for the same period in 2016. • Net loss attributable to non-controlling interest: As of September 30, 2017, we had a 98.82% controlling economic interest and 100% voting interest in SipingJuyuan. As of September 30, 2016, we had a 100% controlling economic interest and 100% voting interest in SipingJuyuan. We consolidate SipingJuyuan’s operating results for financial statement purposes. Net loss attributable to non-controlling interest represents the portion of net loss attributable to the Center. • Fully diluted ~~net~~earings (loss) per share attributable to THT Heat Transfer Technology, Inc. common shareholders: Fully diluted ~~net~~ loss per share attributable to THT Heat Transfer Technology, Inc. common shareholders was $0.0825 for the three months ended ~~June~~September 30, 2017, as compared to ~~fully~~Fully diluted ~~net~~earnings ~~income~~ per share attributable to THT Heat Transfer Technology, Inc. common shareholders of $0.0201 for the same period in 2016.

Results of Operations

Comparison of Three Months Ended ~~June~~September 30, 2017 and September ~~June~~ 30, 2016

The following table sets forth key components of our results of operations for the periods indicated.

		Three Months Ended
		June 30,						$		%
		September 30,						$		%
		2017			2016			Change		Change
Sales revenue-third parties	$	713,~~542~~320,~~784~~129		$	78,~~813~~805,~~670~~647		$	~~(270~~4,~~886~~514,482	)	(351.4727	)
Sales revenue-related party		-			339,~~089~~654			(339,~~089~~654	)	(100~~.00~~	)
Total sales revenues		713,~~542~~320,~~784~~129			78,~~816~~845,~~759~~301			~~(273~~4,~~975~~474,828	)	~~(3.~~50.59	)
Total cost of revenues		(413,~~686~~717,~~741~~671	)		(45,~~491~~602,~~790~~378	)		(~~194~~8,~~951~~115,293	)	(4144.3485	)
Gross profit		2(397,~~856,043~~542	)		3,~~324~~242,~~969~~923			(~~468~~3,~~926~~640,465	)	(14112.1026	)
Operating expenses:
General and administrative expenses		12,~~855~~369,~~218~~915			1,~~057~~643,~~606~~159			~~797~~726,~~612~~756		7544.4223
Research and development expenses		~~414~~411,~~577~~866			~~112~~608,~~044~~072			~~302~~(196,~~533~~206	)	~~270~~(32.0127	)
Selling expenses		21,~~552~~362,~~403~~191			1793,~~808,455~~644			~~743~~568,~~948~~547		4171.1464
Total operating expenses		4,~~822~~143,~~198~~972			23,~~978~~044,~~105~~875			1,~~844~~099,~~093~~097		6136.9210
Income (loss) from operations		(14,~~966~~541,~~155~~514	)		~~346~~198,~~864~~048			(24,~~313~~739,~~019~~562	)	(~~666~~2,393.8414	)
Interest income		3,~~239~~233			54,~~767~~007			(~~2,528~~774	)	(4319.8432	)
Other income		769,~~360~~130			9929,~~455~~889			~~(92~~39,~~095~~241	)	~~(92~~131.6029	)
Finance costs		(6159,~~352~~378	)		(1662,~~148~~495	)		~~(45~~3,~~204~~117	)	~~(279~~4.9499	)
Investment income		~~5,469~~292			512,~~932~~179			(~~463~~11,887	)	(797.8160	)
Other expenses		(18464,~~526~~561	)		-(65,253	)		(18399,~~526~~308	)	(~~100~~611.0094	)
Income (loss) before income taxes		(24,~~029~~992,~~965~~798	)		~~441~~116,~~870~~375			(25,~~471~~109,~~835~~173	)	(~~559~~4,390.4027	)
Income tax benefits (expense)		~~321~~(109,~~949~~784	)		~~(94~~23,~~028~~401	)		~~415~~(133,~~977~~185	)	(~~442~~569.4014	)
Net income (loss)	$	(15,~~708~~102,~~016~~582	)	$	~~347~~139,~~842~~776		$	(25,~~055~~242,~~858~~358	)	(~~591~~3,750.0354	)
Net loss attributable to non-controlling Interest		(60,209	)		-			(60,209	)	(100	)
Net income (loss) attributable to THT Heat Transfer Technology, Inc. common shareholders		(5,042,373	)		139,776			(5,182,149	)	(3,707.47	)

Sales revenue. Our sales revenue is generated from sales of heat exchange products. Sales revenue increased by $4.47 million, or 50.59%, to $13.32 million for the three months ended September 30, 2017, from $8.85 million for the same period in 2016. Our sales volume in the three months ended September 30, 2017 amounted to 845 units, an increase of 291 units, from 554 units for the same period in 2016. Such increase was mainly due to increased sales revenue from heat exchanger units and other products in the three months ended September 30, 2017 as compared with the same period in 2016. Sales revenues from heat exchange units increased by $2.03 million, or 78.26%, to $4.62 million for the three months ended September 30, 2017, from $2.59 million for the same period in 2016. Sales revenues from other products increased by $2.14 million, or 146.26%, to $3.60 million for the three months ended September 30, 2017 from $1.46 million for the same period in 2016. We sold more products for the three-month period ended September 30, 2017 because the sales in this period also contained orders made in 2016, which were produced and sold in 2017. We generated more revenue from selling heat exchange unites and other products. This increase concentrates in the third quarter when production has fully begun.

The following table shows our sales revenue by product for the three months ended September 30, 2017 and 2016:

			Three Months Ended September 30,
		2017			2016
		$	%		$	%
Plate heat exchanger	$	4,875,408	37	$	4,791,977	54
Heat exchange unit		4,623,036	35		2,593,435	29
Air-cooled heat exchanger		43,606	0		-	-
Shell-and-tube heat exchanger		182,995	1		-	-
Others		3,595,084	27		1,459,889	17
TOTAL	$	13,320,129	100	$	8,845,301	100

Cost of revenues. Our cost of revenues is primarily comprised of the costs of our raw materials, labor and factory overhead. Our cost of revenues increased by $8.12 million, or 144.85%, to $13.72 million for the three months ended September 30, 2017, from $5.6 million for the three months ended September 30, 2016. Cost of revenues as a percentage of sales revenue were 102.98% and 63.34% for the three months ended September 30, 2017 and 2016, respectively, an increase of 39.64 percentage points. The increase was mainly attributable to increase in percentage of sale of less profitable products and our recognition of inventory write-down to address the continuous decrease of market price of raw materials used in production in the three months ended September 30, 2017, compared to same period in 2016.

~~Sales~~Gross ~~revenue~~profit. Our ~~sales~~gross ~~revenue~~profit is ~~generated~~equal to the ~~from~~ difference between our sales ofrevenue ~~heat~~and ~~exchange~~our ~~products~~cost of revenues. ~~Sales~~Our ~~revenue~~gross profit decreased by $03.2764 million, or 3112.5026%, to $7(0.5440) million for the three months ended ~~June~~September 30, 2017, from $73.81 24 million for the same period in 2016. ~~Our sales volume in the three months ended~~The ~~June 30, 2017 amounted to 493 units, a~~ decrease ~~of 10 units, from 503 units for the same period~~ in ~~2016.~~our ~~Such~~gross ~~decrease~~profit was mainly ~~due~~attributable to ~~decreased~~increase ~~sales~~of ~~revenue~~cost of ~~from~~ revenues. ~~heat~~The ~~exchange~~average unit ~~and~~selling ~~shell-and-tube~~price ~~heat~~of ~~exchanger,~~our ~~offset by increase in sales from plate heat exchanger, air-cooled heat exchanger, and other~~ products indecreased ~~the three months ended June 30, 2017 as compared with the same period in 2016. Sales revenue from plate heat exchangers increased~~ by $01.~~28 million, or 9.06~~27%, to $~~3.42~~15,763 ~~million~~in ~~for~~ the three months ended ~~June~~September 30, 2017~~, from~~ ~~$3.14 million for the same period~~ in ~~2016.~~comparison ~~Sales~~with ~~revenues from heat exchange unit decreased by~~ $~~0.83 million~~15, ~~or 29.50%, to $1.99 million for the~~966 ~~three~~ in ~~months ended June 30, 2017, from $2.82 million for~~ the same period in 2016., ~~Sales~~and ~~revenues~~the ~~from~~average ~~air-cooled~~unit ~~heat~~cost ~~exchanger~~ increased by $060.~~09 million, or 100~~53%, to $~~0.09~~16,234 ~~million~~in ~~for~~ the three months ended ~~June~~September 30, 2017, ~~from~~in comparison with $~~nil~~10,113 ~~for~~ in the same period in 2016. ~~Sales~~As ~~revenues~~a ~~from~~result ~~shell-and-tube~~of ~~heat~~these ~~exchanger decreased by $0.27 million~~factors, orour ~~100%,~~gross toprofit margin ~~$nil~~ for the three months ended ~~June~~September 30, 2017, ~~from~~decreased ~~$0.27~~to ~~million for the same period in 2016~~(2.98)% ~~Sales revenues~~ from ~~other~~ ~~products increased by $0~~36.~~46 million, or 28.59~~66%, ~~to $2.05 million~~ for the ~~three months ended June 30, 2017 from $1.59 million for the~~ same period in 2016. We sold more heat exchange unit for the three-month period ended June 30, 2016 because the sales of heat exchange units in this period also contains orders made in 2015, which were produced and sold in 2016. We generated more revenue from selling other products. This increase concentrates in the second quarter when production phase has begun.

~~The~~General ~~following~~and ~~table~~administrative ~~shows~~expenses. Our general and administrative expenses consist of the costs associated with staff and supporting personnel who manage our ~~sales~~business ~~revenue~~activities and cost incurred by business ~~product~~operations. Our general and administrative expenses increased by $0.73 million, or 44.23%, to $2.37 million for the three months ended ~~June~~September 30, 2017, ~~and~~from $1.64 million for the same period in 2016:. The increase in general and administrative expenses was primarily due to increase in bad debt allowance for the three months ended on September 30, 2017.

		Three Months Ended June 30,
		2017			2016
		$	%		$	%
Plate heat exchanger	$	3,419,733	46	$	3,135,726	40
Heat exchange unit		1,986,238	26		2,817,176	36
Air-cooled heat exchanger		89,905	1		-	-
Shell-and-tube heat exchanger		-	-		272,023	4
Others		2,046,908	27		1,591,834	20
TOTAL	$	7,542,784	100	$	7,816,759	100

Research and development expenses. Our research and development expenses consist of the costs associated with research and development personnel and expense in research and development projects. Our research and development expenses decreased by $0.20 million, or 32.27%, to $0.41 million for the three months ended September 30, 2017, from $0.61 million for the same period in 2016. The decrease in research and development expenses was mainly attributable to less product research and development to accommodate purchase orders for different products we have received for the three months ended September 30, 2017, compared to same period in 2016.

~~Cost~~Selling ~~of revenues~~expenses. Our ~~cost~~selling ofexpenses ~~revenues is~~include ~~primarily~~sales ~~comprised~~commissions, oftravel cost, the ~~costs~~cost of ~~our~~advertising ~~raw~~and promotional materials, ~~labor~~salaries and ~~factory~~fringe benefits of sales personnel, after-sale support ~~overhead~~services and other sales-related costs. Our ~~cost~~selling ofexpenses ~~revenues~~ increased by $0.20 57 million, or 471.3464%, to $41.69 36 million for the three months ended ~~June~~September 30, 2017, from $40.4979 million for the ~~three~~ ~~months~~same ~~ended~~period ~~June~~in ~~30,~~ 2016. ~~The~~As ~~increase of cost of revenues is mainly due to increase in sale of other products in which we yield less profit. Cost of revenues as~~ a percentage of sales revenue, ~~were~~selling ~~62.14%~~expenses ~~and~~increased 57to 10.4623% for the three months ended September ~~June~~ 30, 2017, ~~and~~as ~~2016,~~compared ~~respectively,~~to an8.97% ~~increase~~for ofthe ~~4.68 percentage~~same ~~points~~period in 2016. The increase was mainly attributable to ~~increase in percentage of sale of less profitable products in~~ the ~~three~~Company’s ~~months~~efforts ~~ended~~to ~~June~~develop new 30customers, ~~2017,~~which ~~compared~~led to ~~same~~more ~~period~~travelling inand ~~2016~~other marketing activities.

~~Gross~~Income ~~profit.~~(Loss) ~~Our~~before ~~gross~~income ~~profit~~taxes. isLoss ~~equal to the~~before ~~difference~~income ~~between~~taxes ~~our~~increased ~~sales revenue and our cost of revenues. Our gross profit decreased~~ by $05.4611 million, or 144390.1027%, to $24.8699 million for the three months ended ~~June~~September 30, 2017, from ~~$3.32~~income ~~million~~before ~~for~~income ~~the~~taxes ~~same~~of ~~period in 2016~~$0. ~~Gross~~12 ~~profit~~million ~~margin~~ for the ~~three months ended June 30, 2017 decreased to 37.86% from 42.54% for the~~ same period in 2016. ~~The~~Such ~~decrease~~increase ~~in our gross profit~~ was mainly attributable to ~~increase in percentage of sale of less profitable products in~~ the ~~three~~decrease ~~months ended June 30, 2017, compared to same period~~ in ~~2016. Due to the same reason, the average unit selling price of~~ our products decreased by 1.54% to $15,300 in the three months ended June 30, 2017 in comparison with $15,540 in the same period in 2016, and the average unit cost increased by 6.46% to $9,507 in the three months ended June 30, 2017 in comparison with $8,930 in the same period in 2016. As a result of these factors, our gross profit ~~margin for the three months ended June 30, 2017 decreased to 37~~.~~86%~~ ~~from 42.54% for the same period in 2016.~~

~~General~~Income ~~and~~taxes ~~administrative~~benefits ~~expenses~~(expense). ~~Our general~~ ~~and administrative expenses consist of the costs associated with staff and support personnel who manage our business activities.~~ Our ~~general~~income ~~and administrative~~taxes ~~expenses~~expense increased byto $0.8011 million, ~~or 75.42%, to $1.86 million~~ for the three months ended ~~June~~September 30, 2017, from income taxes benefit of $10.0602 million for the same period in 2016., Asas asome ~~percentage~~costs ofthat ~~sales~~resulted ~~revenue,~~a ~~general~~net ~~and~~loss ~~administrative~~position ~~expenses~~were added ~~increased~~back tofor ~~24.60%~~tax ~~for~~purpose, thus yielded a taxable income in the three months ended September ~~June~~ 30, 2017, aswhereas ~~compared~~our ~~to 13.53%~~operation ~~for~~in the same period in 2016. ~~The~~has ~~increase~~yielded a innet ~~general~~income ~~and~~that ~~administrative expenses~~ was ~~primarily~~able ~~due~~ to ~~recognition~~benefit offrom ~~more~~deferred ~~bad~~tax ~~debt~~asset recognized from ~~expense~~our ~~for~~operations ~~the~~in ~~three~~six months ended on June 30, ~~2017 as the economy became worse for the industry~~2016.

Net loss attributable to THT Heat Transfer Technology, Inc. common shareholders. As a result of the cumulative effect of the foregoing factors, our net loss attributable to THT Heat Transfer Technology, Inc. common shareholders increased by $5.18 million, or 3,707.47%, to $5.04 million for the three months ended September 30, 2017, from net income of $0.14 million for the same period in 2016. As a percentage of sales revenue, our net income (loss) was (37.86%) and 1.58% for the three months ended September 30, 2017 and 2016, respectively.

Net loss attributable to non-controlling interest. Non-controlling interest represents the ownership interests the Center holds in SipingJuyuan and the amount recorded as non-controlling interest in our consolidated statements of income and comprehensive loss is computed by multiplying after-tax income (loss) for the three months ended September 30, 2017 by the percentage ownership in SipingJuyuan not directly attributable to us. For the three months ended September 30, 2017 and 2016, the weighted average non-controlling interest attributable to ownership interests in SipingJuyuan not directly attributable to us was 0.85% and 0%, respectively.

Comparison of Nine Months Ended September 30, 2017 and September 30, 2016

Research and development expenses. Our research and development expenses consist of the costs associated with research and development personnel and expense in research and development projects. Our research and development expenses increased by $0.30 million, or 270.01%, to $0.41 million for the three months ended June 30, 2017, from $0.11 million for the same period in 2016. The increase in research and development expenses was mainly attributable to more product research and development to accommodate purchase orders for different products we have received for the three months ended June 30, 2017, compared to same period in 2016.

Selling expenses. Our selling expenses include sales commissions, travel cost, the cost of advertising and promotional materials, salaries and fringe benefits of sales personnel, after-sale support services and other sales-related costs. Our selling expenses increased by $0.74 million, or 41.14%, to $2.55 million for the three months ended June 30, 2017, from $1.81 million for the same period in 2016. As a percentage of sales revenue, selling expenses increased to 33.84% for the three months ended June 30, 2017, as compared to 23.14% for the same period in 2016. The increase was mainly attributable to the Company’s effort to develop new customers, which lead to more travelling and other marketing activities.

Loss before income taxes. Loss before income taxes increased by $2.47 million, or 559.40%, to $2.03 million for the three months ended June 30, 2017, from income before income taxes of $0.44 million for the same period in 2016. Such increase was mainly attributable to the increase in our selling and operating expenses.

Income taxes benefits. Our income taxes benefits increased to $0.32 million for the three months ended June 30, 2017, from income taxes expenses of $0.09 million for the same period in 2016, as we resulted in a net loss position in the three months ended June 30, 2017, compared to a net income in the same period in 2016.

Net loss: As a result of the cumulative effect of the foregoing factors, our net loss increased by $2.06 million, or 591.03%, to $1.71 million for the three months ended June 30, 2017, from net income of $0.35 million for the same period in 2016. As a percentage of sales revenue, our net income (loss) was (22.64%) and 4.45% for the three months ended June 30, 2017 and 2016, respectively.

Comparison of Six Months Ended June 30, 2017 and June 30, 2016

The following table sets forth key components of our results of operations for the periods indicated.

		Six Months Ended
		Nine Months Ended
		June 30,						$		%
		September 30,						$		%
		2017			2016			Change		Change
Sales revenue-third parties	$	1124,~~540~~861,~~890~~019		$	1120,~~914~~720,~~496~~004		$	~~(373~~4,~~606~~141,015	)	(319.1499	)
Sales revenue-related party		8,232			342,~~089~~882			5(34,~~143~~650	)	~~166~~(80.4980	)
Total sales revenues		1124,~~549~~869,~~122~~251			1120,~~917~~762,~~585~~886			~~(368~~4,~~463~~106,365	)	(319.0978	)
Cost of revenues		(620,~~854~~572,~~567~~238	)		(713,~~464~~066,~~516~~894	)		~~609~~7,~~949~~505,344		857.1744
Gross profit		4,~~694~~297,~~555~~013			47,~~453~~695,~~069~~992			~~241~~(3,~~486~~398,979	)	5(44.4217	)
Operating expenses:
General and administrative expenses		25,~~677~~047,~~819~~734			24,~~510~~153,~~597~~756			~~167~~893,~~222~~978		621.6652
Research and development expenses		~~732~~1,~~575~~144,441			~~531~~1,~~901~~139,973			~~200~~4,~~674~~468		370.7339
Selling expenses		46,~~774~~136,~~451~~642			34,~~704~~498,~~436~~080			1,~~070~~638,~~015~~562		2836.8843
Total operating expenses		812,~~184~~328,~~845~~817			69,~~746~~791,~~934~~809			12,~~437~~537,~~911~~008		2125.3191
Loss from operations		(38,~~490~~031,~~290~~804	)		(2,~~293~~095,~~865~~817	)		(15,~~196~~935,~~425~~987	)	(52283.1623	)
Interest income		69,~~509~~742			913,~~328~~335			(23,~~819~~593	)	(3026.2294	)
Other income		50119,~~345~~475			91129,~~809~~349			(419,~~464~~874	)	(457.1663	)
Finance costs		(~~119~~178,~~564~~942	)		(3497,~~722~~217	)		(8481,~~842~~725	)	(~~244~~84.3506	)
Investment income		2829,~~943~~235			820,~~793~~972			208,~~150~~263		~~229~~39.1640
Other expenses		(18483,~~526~~087	)		-(72,904	)		(18410,~~526~~183	)	(~~100~~562.0063	)
Loss before income taxes		(38,~~542~~535,~~583~~381	)		(2,~~218~~102,~~657~~282	)		(16,~~323~~433,~~926~~099	)	(59306.6700	)
Income tax benefits		~~473~~363,~~371~~587			~~251~~274,~~091~~492			~~222~~89,~~280~~095		8832.5346
Net Loss	$	(38,~~069~~171,~~212~~794	)	$	(1,~~967~~827,~~566~~790	)	$	(16,~~101~~344,~~646~~004	)	(55347.9909	)
Net loss attributable to non-controlling interest		(60,209	)		-			(60,209	)	(100	)
Net loss attributable to THT Heat Transfer Technology, Inc. common shareholders		(8,111,585	)		(1,827,790	)		(6,283,795	)	(343.79	)

Sales revenue. Our sales revenue increased by $4.11 million, or 19.78%, to $24.87 million for the nine months ended September 30, 2017, from $20.76 million for the same period in 2016. Our sales volume in the nine months ended September 30, 2017 amounted to 1,643 units, an increase of 254 units, from 1,389 units for the same period in 2016. Such increase was mainly due to increased sales revenue from plate heat exchanger, heat exchanger unit, and other products in the nine months ended September 30, 2017 as compared with the same period in 2016. Sales revenue from plate heat exchangers increased by $0.83 million, or 8.31%, to $10.69 million for the nine months ended September 30, 2017, from $9.87 million for the same period in 2016. Sales revenues from heat exchange unit increased by $0.53 million, or 7.7%, to $7.46 million for the nine months ended September 30, 2017, from $6.93 million for the same period in 2016. Sales revenues from other products increased by $2.69 million, or 72.99%, to $6.39 million for the nine months ended September 30, 2017 from $3.70 million for the same period in 2016. We generated more revenue from selling other products as we are trying to sell our aged raw materials and replenish our stock with the newer ones to stable the profit line and respond to supply-side structural reform of by the Chinese government.

The following table shows our sales revenue by product for the nine months ended September 30, 2017 and 2016:

		Nine Months Ended September 30,
		2017			2016
		$	%		$	%
Plate heat exchanger	$	10,694,395	43	$	9,867,781	48
Heat exchange unit		7,463,516	30		6,929,784	33
Air-cooled heat exchanger		133,511	1		-	0
Shell-and-tube heat exchanger		185,818	1		270,212	1
Others		6,392,011	25		3,695,109	18
	$	24,869,251	100	$	20,762,886	100

~~Sales~~Cost ~~revenue~~of revenues. Our ~~sales~~cost ~~revenue~~of ~~decreased~~revenues byincreased by $07.3751 million, or 357.0944%, to $1120.5557 million for the ~~six~~nine months ended September ~~June~~ 30, 2017, from $1113.9206 million for the ~~same~~nine ~~period in 2016. Our sales volume in the six~~ months ended ~~June~~September 30, 2016. ~~2017~~The ~~amounted~~increase toof ~~798~~cost ~~units, a decrease~~ of 37revenues ~~units, from~~is ~~835 units for the same period in 2016. Such decrease was~~ mainly due to ~~decreased~~ ~~sales revenue from heat exchange unit and shell-and-tube heat exchanger, offset by~~ increase in ~~sales~~sale ~~from plate heat exchange and other~~of other products in ~~the~~which ~~six~~we ~~months~~yield ~~ended~~less ~~June~~profit ~~30,~~and ~~2017~~our asrecognition ~~compared~~of ~~with the same period~~inventory inwrite-down ~~2016. Sales revenue from plate heat exchangers increased by $0.74 million, or 14.64%,~~ to ~~$5.82~~address ~~million for~~ the ~~six~~continuous ~~months~~decrease ~~ended~~of ~~June~~market ~~30,~~price ~~2017,~~of ~~from~~raw ~~$5.08~~materials ~~million~~used ~~for the same period~~ in ~~2016~~production. ~~Sales~~Cost of revenues ~~from~~as ~~heat~~a ~~exchange~~percentage ~~unit decreased~~of bysales ~~$1.50~~revenue ~~million, or 34~~were 82.5072%, toand $262.8493% ~~million~~ for the ~~six~~nine months ended ~~June~~ September 30, 2017, ~~from $4.34 million for the same period in 2016. Sales revenues from shell-~~and~~-tube~~ ~~heat exchanger decreased by $0.27 million~~2016, ~~or 98.96%, to~~ $2respectively,~~823~~ ~~for~~an ~~the~~increase ~~six~~of ~~months ended June 30, 2017, from $0~~19.2779 ~~million~~percentage ~~for the same period in 2016~~points. ~~Sales~~Comparing ~~revenues from other products increased by $0.57 million, or 25.23%, to $2.80 million for~~ the ~~six~~nine months ended ~~June~~in September 30, 2017 ~~from~~to ~~$2.23 million for the~~ same period in 2016., Wewe sold more heat ~~exchange unit for the~~exchanger ~~six-month period ended June 30~~unit, ~~2016~~a ~~because~~product ~~the~~that ~~sales~~require ofmore ~~heat~~material ~~exchange units in this period also contains orders made in 2015, which were produced~~ and ~~sold~~labor ~~in 2016.~~to Weassemble ~~sold~~compared ~~more plate heat exchangers due~~ to ~~a rise in demand for~~ the ~~six-month~~rest ~~period~~of ~~ended~~our ~~June 30, 2017. We generated more revenue from selling other~~ products. ~~This increase concentrates in the second quarter when production phase has begun.~~

Gross profit. Our gross profit decreased by $3.40 million, or 44.17%, to $4.30 million for the nine months ended September 30, 2017, from $7.70 million for the same period in 2016. The ~~following~~decrease ~~table~~in ~~shows~~our gross profit was mainly attributable to increase of cost of revenues. The average unit selling price of our ~~sales~~products ~~revenue~~increased by ~~product~~1.26% ~~for~~to $15,136 in the ~~six~~ ~~months~~nine months ended ~~June~~September 30, 2017 in comparison with $14,948 in the same period in 2016, and the average unit cost increased by 33.10% to $12,521 in the nine months ended September 30, 2017 in comparison with $9,407 in the same period in 2016:. As a result of these factors, our gross profit margin for the nine months ended September 30, 2017 decreased to 17.28% from 37.07% for the same period in 2016.

		Six Months Ended June 30,
		2017			2016
		$	%		$	%
Plate heat exchanger	$	5,818,987	50	$	5,075,804	43
Heat exchange unit		2,840,480	25		4,336,349	36
Air-cooled heat exchanger		89,905	1		-	-
Shell-and-tube heat exchanger		2,823	-		272,023	2
Others		2,796,927	24		2,233,409	19
TOTAL	$	11,549,122	100	$	11,917,585	100

General and administrative expenses. Our general and administrative expenses increased by $0.89 million, or 21.52%, to $5.04 million for the nine months ended September 30, 2017, from $4.15 million for the same period in 2016. As a percentage of sales revenue, general and administrative expenses increased to 39.27% for the nine months ended September 30, 2017, as compared to 20.01% for the same period in 2016. The increase in general and administrative expenses was mainly attributable to increase in bad-debt allowance for the nine months ended September 30, 2017, compared to the same period in 2016.

~~Cost~~Research ofand ~~revenues.~~development expenses. Our ~~cost~~research ofand ~~revenues~~development ~~decreased~~ expenses increased by $~~0.61 million~~4,468, or 80.1739%, to $61.8514 million for the ~~six~~nine months ended ~~June~~September 30, 2017, from $71.4613 million for the ~~six~~same ~~months~~period ~~ended~~in ~~June 30,~~ 2016. The ~~decrease~~research ~~in the~~and ~~cost~~development ofactivities ~~revenues was generally in line with the decrease in our sales~~conducted ~~revenue. Cost of revenues as a percentage of sales revenue were 59.35% and 62.63%~~ for the ~~six~~nine months ended ~~June~~September 30, 2017 and ~~2016, respectively, a decrease of 3.28 percentage points. Comparing~~ the ~~six months ended in June 30, 2017 to~~ same period in 2016, ~~we sold less heat exchange unit, a product that require~~were ~~more~~generally ~~material and labor to assemble compared to the rest of our products~~stable.

~~Gross~~Selling ~~profit~~expenses. Our ~~gross~~selling ~~profit~~expenses increased by $01.24 64 million, or 536.4243%, to $46.6914 million for the ~~six~~nine months ended September ~~June~~ 30, 2017, from $4.4550 million for the same period in 2016. ~~The~~As ~~increase in our gross profit was~~a ~~mainly~~percentage ~~attributable to decrease in cost~~ of ~~revenues.~~sales ~~The~~revenue, ~~average unit~~ selling ~~price~~ ofexpenses ~~our products~~ increased byto 124.4068% tofor ~~$14,473 in~~ the ~~six~~ nine months ended ~~June~~ September 30, 2017 ~~in comparison with $14~~,~~273~~ inas ~~the~~compared ~~same~~to ~~period in 2016, and the average unit cost decreased by 3~~21.9166% tofor ~~$8,590 in~~ the ~~six months ended June 30, 2017 in comparison with $8,940 in the~~ same period in 2016. AsThe aincrease ~~result~~was ofmainly ~~these~~attributable ~~factors, our~~to ~~gross profit margin for~~ the ~~six~~Company’s ~~months~~efforts ~~ended~~to ~~June~~develop new 30customers, ~~2017~~which ~~increased~~led to ~~40.65%~~ ~~from~~more ~~37.37%~~travelling ~~for~~and ~~the~~other ~~same~~marketing ~~period in 2016~~activities.

~~General~~Loss ~~and~~before ~~administrative~~income ~~expenses~~taxes. ~~Our~~Loss ~~general~~before income ~~and~~taxes ~~administrative expenses~~ increased by $06.1744 million, or 6306.6601%, to $28.68 54 million for the ~~six~~ nine months ended ~~June~~September 30, 2017, from $2.5110 million for the same period in 2016. ~~As a percentage of sales revenue, general and administrative~~ ~~expenses~~Such ~~increased~~increase towas ~~23.19%~~mainly ~~for~~attributable ~~the six months ended June 30, 2017, as compared~~ to ~~21.07%~~decrease ~~for the same period~~ in ~~2016~~gross profit.

~~Research~~Income ~~and~~tax ~~development expenses~~benefits. Our ~~research~~income ~~and~~tax benefits ~~development expenses~~ increased ~~by $0.20 million, or 37.73%,~~ to $0.7336 million for the ~~six~~nine months ended ~~June~~September 30, ~~2017~~ 2016, from $0.53 27 million for the same period in 2016., ~~The~~as ~~increase~~a inresult ~~research~~of ~~and~~more ~~development~~net ~~expenses~~loss was ~~mainly~~generated ~~attributable~~in tothe ~~more~~nine ~~product~~months ~~research~~ended ~~and~~September ~~development~~30, ~~due~~2017 compared to the ~~different~~same ~~purchase~~period ~~order~~in we2016, ~~have~~net ~~received~~off ~~for~~by the ~~six~~tax ~~months~~effect ~~ended~~due ~~June 30, 2017, compared~~ to ~~same~~costs ~~period~~added inback ~~2016~~for tax purpose.

~~Selling~~Net ~~expenses~~loss attributable to THT Heat Transfer Technology, Inc. ~~Our~~common ~~selling~~shareholders. ~~expenses~~As ~~increased~~a result of the cumulative effect of the foregoing factors, our net loss attributable to THT Heat Transfer Technology, Inc. common shareholders increased by $16.0728 million, or 28343.8879%, to $48.7711 million for the ~~six~~nine months ended ~~June~~September 30, 2017, from $31.7083 million for the same period in 2016. As a percentage of sales revenue, ~~selling~~our net ~~expenses~~loss ~~increased~~was to32.62% 41and 8.4380% for the ~~six~~nine months ended ~~June~~September 30, 2017, ~~as compared~~and ~~to 31.08% for the same period in~~ 2016~~. The increase was mainly attributable to the Company’s effort to develop new customers~~, ~~which lead to more travelling and other marketing activities~~respectively.

Net loss attributable to non-controlling interest. Non-controlling interest represents the ownership interests the Center holds in SipingJuyuan and the amount recorded as non-controlling interest in our consolidated statements of income and comprehensive loss is computed by multiplying after-tax loss for the nine months ended September 30, 2017 by the percentage ownership in SipingJuyuan not directly attributable to us. For the nine months ended September 30, 2017 and 2016, the weighted average non-controlling interest attributable to owcnership interests in SipingJuyuan not directly attributable to us was 0.29% and 0%, respectively.

Loss before income taxes. Loss before income taxes increased by $1.32 million, or 59.67%, to $3.54 million for the six months ended June 30, 2017, from $2.22 million for the same period in 2016. Such increase was mainly attributable to increase in selling and operating expenses.

Income tax benefits. Our income tax benefits increased to $0.47 million for the six months ended June 30, 2016, from $0.25 million for the same period in 2016, as a result of more net loss was generated in the six months ended June 30, 2017 compared to the same period in 2016.

Net Loss. As a result of the cumulative effect of the foregoing factors, our net loss increased by $1.10 million, or 55.99%, to $3.07 million for the six months ended June 30, 2017, from $1.97 million for the same period in 2016. As a percentage of sales revenue, our net loss was 26.58% and 16.51% for the six months ended June 30, 2017 and 2016, respectively.

Liquidity and Capital Resources

As of ~~June~~September 30, 2017, we had cash and cash equivalents of $42.21 63 million. We anticipate that cash on hand and borrowing capacity under our ~~bank~~ bank loans will be sufficient to satisfy our ongoing obligations.

We believe our allowance for doubtful accounts is appropriate. We have an installment payment arrangement with our customers. The current economic slowdown and China’s tightened credit policy led to delayed payments and delayed delivery schedules by our customers, which in turn caused us to increase our allowance for doubtful accounts from $8.18 million in the ~~six~~nine months ended ~~June~~September 30, 2016 to $810.6942 million in the same period in 2017. To control inflation after a massive stimulus plan, the Chinese government tightened its credit policy. As a result, state-owned banks limited their lending to large state-owned corporations and privately held companies continue to have difficulty accessing capital. Most of our customers have been affected by the tightened credit policy and have limited access to capital. The Company records an allowance for doubtful accounts at a rate of 25% for receivables aged between 1 to 2 years, 50% for receivables aged between 2 to 3 years and 100% for receivables aged over 3 years.

Our allowance of obsolete inventory is also appropriate because we purchase raw materials after we receive purchase orders. Although our customers may delay their payment or delivery schedules, which increase our inventories, they do not cancel their orders so as to cause us to classify the delayed inventories as obsolete inventories.

We expect that the trend of delayed customer payments and delayed delivery schedules will continue in the future. We have been taking the following measures to mitigate the situation: 1) send the collection letters or call the customers to request payment; 2) appoint specialists to visit our customers to collect payment; 3) file law suits.

PRC legal restrictions permit payments of dividends by our PRC subsidiaries only out of their accumulated after-tax profits, if any, determined in accordance with PRC accounting standards and regulations. Our PRC subsidiaries are also required under PRC laws and regulations to allocate at least 10% of their annual after-tax profits determined in accordance with PRC GAAP to a statutory general reserve fund until the amounts in said fund reaches 50% of our registered capital. Allocations to these statutory reserve funds can only be used for specific purposes and are not transferable to us in the form of loans, advances, or cash dividends. Given that the Company and the PRC subsidiaries do not intend to pay dividends for the foreseeable future, we consider the impact of restrictions on our liquidity, financial condition and results of operations is not significant.

The following table provides a summary of our net cash flows from operating, investing, and financing activities.

Cash Flow

		Six Months Ended June 30,
		Nine Months Ended
		September 30,
		2017			2016
Net cash used in operating activities	$	(210,~~908~~766,~~917~~849	)	$	(21,~~475~~796,~~877~~336	)
Net cash used in investing activities		(~~546~~450,~~940~~144	)		(~~832~~1,~~450~~401,768	)
Net cash provided by (used in) financing activities		17,~~005~~109,~~362~~096			(1,~~157~~260,~~706~~032	)
Effects of exchange rate change in cash		52129,~~678~~584			(~~132~~203,~~590~~176	)
Net decrease in cash and cash equivalents		(23,~~397~~978,~~817~~313	)		(4,~~598~~661,~~623~~312	)
Cash and cash equivalents at beginning of the period		6,609,680			9,680,293
Cash and cash equivalent at end of the period	$	42,~~211~~631,~~863~~367		$	5,~~081~~018,~~670~~981

Operating Activities

Net cash used in operating activities was $210.9177 million for ~~the~~ ~~six~~the nine months ended ~~June~~September 30, 2017, compared to $21.4880 million for the same period in 2016. The increase in net cash used in operating activities was mainly due to the increase in ~~change in~~ net loss of $16.1034 million, ~~outflow~~deferred oftax ~~inventories,~~assets ~~net~~ of $20.31 09 million, ~~accounts~~outflow ~~payable~~of inventories, net of $110.4268 million, other receivables, ~~prepayments~~ prepayments and deposits of $18.1371 million, and decrease in income ~~taxed~~taxes payable of $0.5251 million, offset by increase inof ~~inflow~~allowance for doubtful accounts of $1.38 million and inventory write-down of $4.72 million, trade receivables of $2.05 million, trade receivables from a related party of $1.1337 million, accounts payable of $3.16 million, and decrease of due from related parties of $4.92 94 million.

Investing Activities

Net cash used in investing activities was $0.5551 million for the ~~six~~nine months ended ~~June~~September 30, 2017, compared with $01.8340 million in the same ~~period~~ period in 2016. The decrease of net cash used in investing activities during the ~~six~~ nine months ended ~~June~~September 30, 2017 was primarily due to increase in repayment ~~from~~ from others of $2.11 million, offset by increase in loans made to others of $10.1277 million, ~~payments to acquire property, plant~~ and ~~equipment~~related parties of $0.4144 million, ~~and~~payments ~~change~~to inacquire property, ~~restricted~~plant ~~cash~~and equipment of $0.22 44 million.

Financing Activities

Net cash provided by financing activities was $17.0111 million for the ~~six~~nine months ended ~~June~~September 30, 2017, compared with $1.1626 million net cash used in financing activities for the same period in 2016. The increase in net ~~cash~~ cash provided by financing activities resulted from an increase in proceeds from related parties of $6.91 million and increase in proceeds from non-controlling interest of $1.8434 million, decrease in repayment of short-term loans of $84.06 54 million, offset by decrease in proceeds from short-term loan of $63.~~86 million~~26 million and increase in repayment to related parties of $01.8816 million.

Capital Expenditures

Our capital expenditures were used primarily for the purchase of equipment to expand our production capacity and deposits for land use rights. The table below sets forth the breakdown of our capital expenditures by use for periods indicated.

		Six Months Ended June 30,
		Nine Months Ended September 30,
		2017		2016
Construction costs	$	-	$	2040,~~049~~683
Purchase of equipment		~~442~~483,~~333~~803		56,~~971~~906
Total capital expenditures	$	~~442~~483,~~333~~803	$	2647,~~020~~589

We estimate that our total capital expenditures in fiscal year 2017 will reach approximately $0.85 million to buy the equipment for necessary products used in the nuclear power industry.

Obligations under Material Contracts

Except with respect to the loan obligations disclosed above, we have no material obligations to pay cash or deliver cash to any other party.

Seasonality

Our operating results and operating cash flows historically have been subject to seasonal variations. Our revenues usually increase over each quarter of the calendar year with the ~~second~~third quarter usually the slowest quarter because fewer projects are undertaken during and around the Chinese spring festival.

Inflation

Inflation and changing prices have not had a material effect on our business, and we do not expect that inflation or changing prices will materially affect our business in the foreseeable future. However, our management will closely monitor price changes in the Chinese economy and our industry and continually maintain effective cost controls in operations.

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, sales or expenses, results of operations, liquidity or capital expenditures, or capital resources that are material to an investment in our securities.

Critical Accounting Policies

Critical accounting policies are those we believe are most important to portraying our financial conditions and results of operations and also require the greatest amount of subjective or complex judgments by management. Judgments and uncertainties regarding the application of these policies may result in materially different amounts being reported under various conditions or using different assumptions. There have been no material changes to the critical accounting policies previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

Recent Accounting Pronouncements

See Note 3 to our unaudited condensed consolidated financial statements included elsewhere in this report.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable.

ITEM 4.

CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Interim Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15(e), our management has carried out an evaluation, with the participation and under the supervision of our Chief Executive Officer, Mr. Guohong Zhao, and Interim Chief Financial Officer, Mr. Zhigang Xu, of the effectiveness of the design and operation of our disclosure controls and procedures, as of ~~June~~September 30, 2017. Based upon, and as of the date of this evaluation, Messrs. Zhao and Xu determined that because of the ~~material~~ material weaknesses described in Item 9A “Controls and Procedures” of our Annual ~~Report~~ Report on Form 10-K for the year ended December 31, 2016, which we are still in ~~the~~ the process of remediating as of ~~June~~September 30, 2017, our disclosure controls and procedures were not effective. Investors are directed to Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2016 for the description of these weaknesses.

Changes in Internal Control over Financial Reporting

We regularly review our system of internal control over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems, consolidating activities, and migrating processes.

During its evaluation of the effectiveness of internal control over financial reporting as of December 31, 2016, our management identified material weakness related to inadequate segregation of duties relative to key financial reporting functions, and our lack of: (1) sufficient and adequately trained accounting and finance personnel; (2) qualified resources to perform the internal audit functions properly; (3) an internal audit department which renders ineffective our ability to prevent and detect control lapses and errors in the accounting of certain key areas; (4) skills and understanding to operate, review, and supervise the process of bookkeeping under newly implemented ERP system; and (5) well-established procedures to identify, approve, and report related party transactions. As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016, our management has identified the steps necessary to address the material weaknesses, and in the ~~second~~ third quarter of 2017, we continued to implement these remedial procedures.

Other than in connection with the implementation of the remedial measures described above, there were no changes in our internal controls over financial reporting during the third quarter of 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Other than in connection with the implementation of the remedial measures described above, there were no changes in our internal controls over financial reporting during the second quarter of 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II
OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these, or other matters, may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, cash flows, financial condition or operating results.

ITEM 1A.

RISK FACTORS.

Not applicable.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5.

OTHER INFORMATION.

InWe ~~November~~have ~~2016,~~no ~~the~~information ~~Company's~~to ~~subsidiary~~disclose ~~Siping~~that ~~Juyuan signed~~was anrequired ~~agreement~~to ~~(the~~be ~~“Investment~~in ~~Agreement”) with Jilin Technology~~a ~~Fund~~report ~~Operation Service~~on ~~Center~~Form ~~(the~~8-K ~~“Center”)~~during ~~to receive capital funding from~~ the ~~Center~~third quarter of ~~RMB9~~2017,~~000,000,~~ ~~accounted~~but ~~for~~was 1not reported.~~18%~~ ofThere have ~~the~~been ~~ownership~~no ~~interest~~material ofchanges ~~Siping~~to ~~Juyuan~~the ~~post-investment.~~procedures Onby ~~July~~which ~~27,~~security ~~2017,~~holders ~~Siping Juyuan received the~~may ~~RMB9,000,000~~recommend ~~(approximately~~nominees ~~$1,335,495)~~to ~~and~~our ~~the~~board ~~transaction~~of ~~was completed~~directors.

The foregoing description of the terms of the Investment Agreement is qualified in its entirety by reference to the provisions of the document filed as Exhibit 10.1 to this report, which is incorporated by reference herein.

There have been no material changes to the procedures by which security holders may recommend nominees to our board of directors.

ITEM 6.

EXHIBITS.

The list of exhibits in the Exhibit Index to this report is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: August 15, 2017	THT HEAT TRANSFER TECHNOLOGY, INC.
Date: November 14, 2017	THT HEAT TRANSFER TECHNOLOGY, INC.
	By:	/s/ Guohong Zhao
		Guohong Zhao, Chief Executive Officer
		(Principal Executive Officer)
	By:	/s/ Zhigang Xu
		Zhigang Xu, Interim Chief Financial Officer
		(Principal Financial Officer and Principal
		Accounting Officer)

EXHIBIT INDEX

Exhibit No.		Description
10.1		Investment Agreement dated November 25, 2016 entered into by Siping Juyuan and Jilin Province Technology Fund Operation and Service Center.
31.1.		Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.1		Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certifications of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certifications of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		Interactive data files pursuant to Rule 405 of Regulation S-T (furnished herewith).

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