2014

Euro Tech Holdings Company Limited Reports 2013 Year-End Results

HONG KONG, April 29, 2014 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2013 ("Fiscal 2013").

The Company's revenues for Fiscal 2013 were approximately $18,602,000, an approximate of 14% decrease compared to approximately $21,645,000 in the Company's fiscal year ended December 31, 2012 ("Fiscal 2012"). The net loss for Fiscal 2013 was approximately $18,000, as compared to net loss of approximately $429,000 for Fiscal 2012.

The decrease of the company's revenues was mainly due to decrease in revenues from engineering activities as a result of keen competition from companies offering similar services, that we believe to be of lower quality than our services in China.

Despite the decrease in revenues, and research and development costs of approximately US$425,000 spent for Ballast Water Treatment Systems ("BWTS"), it was a nearly break-even position of small net loss of approximately US$18,000 for Fiscal 2013 as a result of the reduction in selling and administrative expenses and the income contributions of approximately US$325,000 from the affiliates, Blue Sky and Jia Huan.

Mr. T.C. Leung, Chairman and CEO of the company commented, "We are positive that we will obtain the formal certificate for our 300 Cubic Meters per hour BWTS from China's Classification Society by the end of June of 2014. In the meantime, we also look for investors or partners to develop other sizes of our BWTS so that we have a wide range to meet different requirements of our potential customers. We are optimistic about the near-term business potential and its contributions to us in the coming years."

"In the wake of the Chinese Premier's speech to fight against air pollution vigorously, we believe our two affiliates in air pollution control business, namely; Blue Sky and Jia Huan will consequently be benefited. They will not only make substantial contributions to us in the coming years, but also fund our further business development in BWTS in case we cannot find external investors."

"As China wants to tap its huge shale gas resources and copy the American success in developing shale gas industry, the potential of fracking water treatment in China is huge. We are looking for strategic partners and also a suitable personnel to develop this quite a long-term but lucrative business."

About BWTS

BWTS is 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. The market potential for retrofits and new installations of BWTS in these old and new ocean-going vessels is enormous.

About fracking water

In Shale-gas drilling operations, a huge amount of water is injected deep underground, along with sand and chemicals to fracture shale rock and extract the embedded natural gas. Some of that water returns to the surface immediately after the fracturing (fracking). The rest comes back over the course of months and years. The result is that each well brings up a large amount of fracturing wastewater (fracking water) and many companies are after this wastewater treatment business.

About Blue Sky

Zhejiang Tianlan Environmental Protection Technology Co. Ltd., ("Blue Sky"),  found in 2000, is a fast growing company which provides a comprehensive service for design, general contract, equipment manufacturing, installation, testing and operation management of the treatment of waste gases emitted from various boilers and industrial furnaces of power plants, steel works and chemical plants.

About Jia Huan

Zhejiang Jia Huan Electronic Co. Ltd. in Zhejiang, China ("Jia Huan"), an established company, has been in business since 1969. 95% of Jia Huan's business is related to air pollution control and less than 5% is for water and wastewater treatment. Jia Huan designs and manufactures automatic control systems and electric voltage control equipment for electrostatic precipitators which are major air purification equipment for power plants, cement plants and incinerators to remove and collect dust and pollutants from the exhaust stacks.

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, 2013.

CONDENSED STATEMENTS OF OPERATIONS

(Dollar amounts in US$ thousands, except share and per share data)




Year Ended December 31,


2013

2012

Revenues

$     18,602

$     21,645




Net Loss attributable to the Company

(18)

(429)




Net Loss Per Share - Basic

(0.01)

(0.21)

 

Weighted Average Number of

    Ordinary Shares Outstanding - Basic

 

 

2,069,223

 

 

2,070,685

 

SELECTED BALANCE SHEET DATA

(Dollar amounts in US$ thousands, except share and per share data)




As of December 31,


2013

2012

Cash and Cash Equivalents

$  5,406

$  7,468

Total Current Assets

11,831

12,897

Total Assets

23,878

24,947

Total Current Liabilities

6,001

7,191

Total Liabilities

6,001

7,191

Total Euro Tech Shareholders' Equity

15,872

15,837

Website: http://www.euro-tech.com

Blue Sky's website: http://www.tianlan.cn/

Jia Huan's website: http://www.jiahuan.com

SOURCE Euro Tech Holdings Company Limited



RELATED LINKS
http://www.euro-tech.com
http://www.tianlan.cn
http://www.jiahuan.com

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