HONG KONG, June 29 /PRNewswire-Asia/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2009 ("Fiscal 2009").
The Company's revenues for Fiscal 2009 were approximately $27,336,000, an approximate 14% decrease compared to approximately $31,738,000 in the Company's fiscal year ended December 31, 2008 ("Fiscal 2008"). The net income for Fiscal 2009 was approximately $32,000, an approximate 78% decrease from Fiscal 2008 net income of approximately $149,000.
The decrease of the company's revenues is mainly due to the global economic downturn that had a significant negative impact on the Company's business in China and further drop of the distribution business for third party products due to more key suppliers selling their products into the China market directly or through distributors other than the Company.
The falling net income is mainly due to the decrease in gross profit resulting from the drop in total revenues partially offset by the decrease in selling and administrative expenses, as a result of tight control of overheads, and an increase in our equity in the profits of our affiliates.
Mr. T.C. Leung, Chairman and CEO of the company commented, "As stated in our 2009 half year result, 2009 was a bad year for us. However, in the wake of the global financial crisis, and amid economy recovery in China, we have been receiving more and more environmental engineering contracts both for water and air since early 2010, although some of them may be completed in 2011.
"Despite the drop of the distribution business for third party products, we re-allocate more resources to our engineering companies and manufacturing facilities as we have been receiving more and more inquiries from both inside and outside China for wastewater treatment equipment, water and air pollution monitoring instruments manufactured by ourselves.
"We naturally believe 2010 is a better year than 2009 for us."
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, 2009.
CONDENSED STATEMENTS OF OPERATIONS (Dollar amounts in US$ thousands, except share and per share data) As of December 31, 2009 2008 % Change Revenues $27,336 $31,738 -14% Net Income Attributable to the Company 32 149 -78% Net Income Per Share - Basic 0.003 0.01 Weighted Average Number of Ordinary Shares Outstanding -Basic 11,632,460 11,824,153 -2% SELECTED BALANCE SHEET DATA Year Ended December 31, 2009 2008 % Change Cash and Cash Equivalents $7,025 $7,146 -2% Total Current Assets 15,515 17,882 -13% Total Assets 26,244 28,278 17% Total Current Liabilities 7,312 9,299 -23% Total Liabilities 7,312 9,299 -23% Total Euro Tech Shareholders' Equity 16,787 16,993 -1% For more information, please contact: Euro Tech Holdings Company Limited, Hong Kong T.C. Leung, Chairman and CEO, or Jerry Wong, CFO Tel: +852-2814-0311 Fax: +852-2873-4887 Website: http://www.euro-tech.com
SOURCE Euro Tech Holdings Company Limited