HONG KONG, May 12, 2023 /PRNewswire/ — Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2022 (“Fiscal 2022”).
The Company’s revenues for Fiscal 2022 were US$14,949,000, an approximate 30.1% decrease compared to US$21,388,000 in Fiscal 2021. The decrease was principally due to adverse impacts of the COVID-19 pandemic and Shanghai’s lockdown in 2022.
Gross profits decreased by 18.9% to US$4,618,000 for Fiscal 2022 as compared to approximately US$5,695,000 for Fiscal 2021. The decrease was primarily due to the decrease in revenues.
Selling and administrative expenses decreased by 8.6% to approximately US$4,490,000 for Fiscal 2022 as compared to approximately US$4,911,000 for Fiscal 2021. The decrease was principally due to decrease in expenses related to sales and control over overheads, particularly the closure of the business operations of Shanghai Euro Tech Limited in September 2022 because it has suffered loss for the past few years during which it focused on the manufacturing of analytical and testing instruments.
The Company had net income of US$369,000 in Fiscal 2022, as compared to US$989,000 for the fiscal year ended December 31, 2021 (“Fiscal 2021”). This decrease was primarily due to decrease in sales orders and revenues as affected by COVID-19.
Mr. David Leung, CEO of the company commented, “In 2022, the COVID-19 had affected our sales revenue and net income due to the lockdown policy, travel restriction, disruption of the supply chain and the subsequent delay of projects.
Despite the adverse situation, we managed to increase sales orders for Ballast Water Treatment Systems (“BWTS”) from maritime industry in 2022 due to our competitiveness in terms of price, delivery time, and reliability of our design systems. We still maintained good relationship with our clients and have received letters of appreciation for our satisfactory turnkey industrial wastewater treatment service (“WWT”) from Fortune 500 clients (a USA food/beverage company and a Germany chemical company).
Although China has already lifted and relaxed with her COVID policy since March 2023, it still takes time for foreign and domestic companies to back to normal. Thus, we now focus more on sales promotions in strong GDP growth countries, such as Middle East and South East Asia regions for both BWTS and WWT. We will participate in more exhibitions and road shows in these countries to seek more potential agents and distributors for both BWTS and WWT.
While the China’s economy is still trying to recover from tough COVID restrictions, we would also like to further strengthen our domestic market through our own BWTS technology for port solutions as well as seeking new opportunities for both BWTS and WWT.”
About BWTS
BWTS are an imminent requirement by The International Maritime Organization (“IMO”) to prevent the biological unbalance caused by the estimated 12 billion tons of ballast water transported across the seas by ocean-going vessels when their ballast water tanks are emptied or refilled. In 2012, ballast water discharge standard became a law in the US. Any vessel constructed in December 2013 or later will need to comply when entering US waters, and existing vessels will follow shortly after. IMO’s Ballast Water Management Convention entered into force for new-built vessels on September 8, 2017 after ratification by 52 States, representing 35.1441% of world merchant shipping tonnage. In July 2017, IMO decided that the phase-in period for ballast water system retrofits started on 8 September 2019.
The company obtained type approval certificate from China’s Classification Society for its 200, 300, 500, 750, 1200 and 1250 Cubic Meters per hour BWTS in 2016.
The IMO convention stipulates that type approval for revised G8 requirements must be obtained for all BWTS installed on or after October 28, 2020, and the company have been in compliance with such requirements.
The ballast water port solution system is a system installed in port to offer ballast water treatment services for ocean going ships without their own BWTS and for those with damaged BWTS.
Forward Looking Statements
Certain statements in this news release regarding the Company’s expectations, estimates, present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, or expects, or words of similar import, constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements indicate uncertainty and the Company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, having the Company’s offices and operations situated in Hong Kong and China, doing business in China, competing with Chinese manufactured products, competing with the Company’s own suppliers, dependence on vendors, and lack of long term written agreements with suppliers and customers, development of new products, entering new markets, possible downturns in business conditions, increased competition, loss of significant customers, availability of qualified personnel, negotiating definitive agreements, new marketing efforts and the timely development of resources. See the “Risk Factor” discussions in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for its fiscal year ended December 31, 2022.
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CONDENSED STATEMENTS OF OPERATIONS |
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(Dollar amounts in US$ thousands, except share and per share data) |
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Year Ended December 31, |
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2022 |
2021 |
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Revenues |
14,949 |
21,388 |
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Net Income Attributable to the Company |
369 |
989 |
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Net Income Per Ordinary Share – Basic |
$0.05 |
$0.13 |
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Weighted Average Number of Ordinary Shares Outstanding –Basic |
7,732,132 |
7,732,132 |
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SELECTED BALANCE SHEET DATA |
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As of December 31, |
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2022 |
2021 |
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Cash and Cash Equivalents |
5,628 |
5,269 |
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Total Current Assets |
9,450 |
11,504 |
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Total Assets |
19,363 |
21,250 |
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Total Current Liabilities |
4,470 |
6,405 |
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Total Liabilities |
4,557 |
6,449 |
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Total Euro Tech Shareholders’ Equity |
13,772 |
13,884 |
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SOURCE EURO TECH HOLDINGS COMPANY LIMITED