Euro Tech Holdings Company Limited Reports Interim Results for the Six Months Ended June 30, 2011

HONG KONG, Dec. 12, 2011 /PRNewswire-Asia/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported its unaudited financial results for the six months ended June 30, 2011.

The Company's revenues for the six months ended June 30, 2011 were approximately US$9,554,000, a 7.8% decrease as compared to approximately US$10,363,000 for the six months ended June 30, 2010. The net income for the six months ended June 30, 2011 was approximately US$12,000, as compared to the net loss of approximately US$451,000 for the six months ended June 30, 2010.

Revenues from engineering business increased by approximately US$1,330,000, but were not enough to offset the further drop of revenues from trading business of US$2,139,000.

The Company's operating result changed from the a loss for the six months ended June 30, 2010 to a net income for the six months ended June 30, 2011. This was principally due to the reduction of selling and administrative expenses of approximately US$428,000 which included the reduction of operating expenses of approximately US$100,000 as a result of streamlining operation and gain on the disposal of a property of approximately US$328,000.

The company is positive about the increase of wastewater treatment business outside China in the coming months, as many International Engineering Companies prefer to source wastewater treatment equipment and engineering services in China for their projects in other countries.

The company is also positive about the progress of the development of its Ballast Water Treatment System ("BWTS") for the worldwide maritime industry. The BWTS is now under vigorous testing to prepare for land and sea certification tests in America in March 2012.

Ballast water treatment 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 ships when their ballast water tanks are emptied or refilled. The market potential for retrofits and new installations in these old and new ocean-going ships is enormous.

Since mid 2010, the company has been investing a lot of its resources and has recently taken part in two International conferences In Singapore and Turkey for the Ballast Water Treatment System. The company is upbeat about the potential Ballast Water Treatment business that will generate steady revenues and incomes based on orders from retrofits and new installations from ships in future.

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, 2010.

EURO TECH HOLDINGS COMPANY LIMITED


CONSOLIDATED BALANCE SHEETS




As of
June 30,
2011
(Unaudited)


As of
December 31,
2010
(Audited)



US$'000


US$'000






Assets










Current assets:





Cash and cash equivalents


6,549


6,130

Restricted cash


646


809

Accounts receivable, net


3,287


3,674

Prepayments and other current assets


1,106


1,623

Inventories


1,257


1,320






Total current assets


12,845


13,556











Property, plant and equipment, net


1,151


1,352






Investments in affiliates


8,924


8,976






Goodwill


1,060


1,060






Deferred tax assets


279


269











Total assets


24,259


25,213











Liabilities and shareholders' equity










Current liabilities:





Accounts payable


2,686


3,146

Other payables and accrued expenses


3,134


3,359

Taxation payable


426


607






Total current liabilities


6,246


7,112











Commitments and contingencies


-


-











Shareholders' equity:





Ordinary share, par value US$0.01 each, 20,000,000 (As of December 31, 2010: 20,000,000) shares authorized; 12,262,956 (As of December 31, 2010: 12,262,956) shares issued and outstanding


123


123

Additional paid-in capital


9,535


9,533

Treasury stock, 777,436 (As of December 31, 2010: 741,466) shares at cost


(679)


(639)

PRC statutory reserve


275


275

Accumulated other comprehensive income


669


605

Retained earnings


5,861


5,849






Equity attributable to owners of Euro Tech


15,784


15,746

Non-controlling interest


2,229


2,355






Total shareholders' equity


18,013


18,101











Total liabilities and shareholders' equity


24,259


25,213









EURO TECH HOLDINGS COMPANY LIMITED


CONSOLIDATED STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010




2011
(Unaudited)


2010
(Unaudited)



US$'000


US$'000






Revenue





Trading and manufacturing


5,601


7,740

Engineering


3,953


2,623






Total revenue


9,554


10,363






Cost of revenue





Trading and manufacturing


(4,302)


(6,126)

Engineering


(2,874)


(1,618)






Total cost of revenue


(7,176)


(7,744)






Gross profit


2,378


2,619






Selling and administrative expenses


(2,794)


(3,222)






Operating loss


(416)


(603)

Interest income


28


20

Other income, net


55


(10)






Loss before income taxes and equity in profit of affiliates


(333)


(593)






Income taxes


7


(23)






Equity in profit of affiliates


166


221






Net loss


(160)


(395)

Less: net  loss/(income) attributable to non-controlling interest


172


(56)






Net income/(loss) attributable to the Company


12


(451)











Net income/(loss) per ordinary share





- Basic


US$0.001


US$(0.039)











- Diluted


US$0.001


US$(0.038)






Weighted average number of ordinary shares outstanding





- Basic


11,513,160


11,549,352











- Diluted


11,638,186


11,857,639










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



RELATED LINKS
http://www.euro-tech.com

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