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

Dec 12, 2011, 08:00 ET from Euro Tech Holdings Company Limited

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