EX-99.1 2 clwt_ex991.htm PRESS RELEASE DATED DECEMBER 2, 2021 clwt_ex991
 
Exhibit 99.1
 
Euro Tech Holdings Company Limited Reports Interim Results For The Six Months Ended June 30, 2021
 
Hong Kong – December 1, 2021 – Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported its unaudited financial results for the six months ended June 30, 2021.
 
The Company’s business has turned around from operating loss of US$726,000 for the six months ended June 30, 2020 (“1H 2020”) to operating income of US$507,000 for the six months ended June 30, 2021 (“1H 2021”).
 
The Company’s revenues for 1H 2021 were US$10,054,000, a 75.8% increase as compared to US$5,718,000 for 1H 2020. The increase was primarily due to the completion of prior years’ projects as the Covid-19 situation became stable in China. Revenues from trading and manufacturing activities, and engineering activities increased by US$364,000 and US$3,972,000, respectively.
 
Gross profits increased by 86.6% to US$3,022,000 for 1H 2021 as compared to US$1,619,000 for 1H 2020. The increase was primarily due to the increase in revenues and the gross profit margin of approximately 1.7%.
 
Selling and administrative expenses increased by US$173,000 to US$2,514,000 for 1H 2021 as compared to US$2,341,000 for 1H 2020. The increase was principally due to the increase in selling expenses resulting from the increase in revenues and the effect of general inflation.
 
 The Company’s net income for the 1H 2021 decreased by approximately US$379,000 to US$490,000 as compared to US$869,000 for 1H 2020. This was due to a non-recurrent net gain on disposal of a property of US$1,429,000 for 1H 2020. The net profit for 1H 2021 was increased by approximately US$1,050,000 if this non-recurrent gain was excluded in 1H 2020.
 
The Company is positive about the future Ballast Water Treatment Systems (“BWTS”) business from port services and commercial ships. In order to expand its market coverage, the Company has been undergoing the procedures to apply for type approval certificates for its BWTS from a number of European and Asian Classification Societies. During the year, the Company has appointed new distributors in Dubai and South Africa to develop the markets in the Middle East, African and Indian Ocean Island Countries.
 
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.
 
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, 2020.
 
 
 
 
EURO TECH HOLDINGS COMPANY LIMITED
 
CONSOLIDATED BALANCE SHEETS
 
 
As of
June 30,
2021
(Unaudited)
 
 
As of
December 31,
2020
(Audited)
 
 
 
US$’000
 
 
US$’000
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
  5,422 
  3,519 
Restricted cash
  1,540 
  1,672 
Accounts receivable, net
  1,747 
  3,199 
Prepayments and other current assets
  843 
  1,514 
Contract assets
  956 
  202 
Inventories
  311 
  342 
Total current assets
  10,819 
  10,448 
 
    
    
Property, plant and equipment, net
  240 
  259 
Investments in affiliates
  7,927 
  8,084 
Goodwill
  1,071 
  1,071 
Deferred tax assets
  - 
  - 
Operating lease right-of-use assets
  330 
  233 
Long-term investment
  - 
  - 
Restricted cash
  - 
  - 
Total non-current assets
  9,568 
  9,647 
Total assets
  20,387 
  20,095 
 
    
    
Liabilities and shareholders’ equity
    
    
Current liabilities:
    
    
Bank borrowings
  - 
  361 
Accounts payable
  1,725 
  2,394 
Contract liabilities
  1,593 
  1,063 
Other payables and accrued expenses
  2,537 
  1,593 
Current portion of long-term operating lease obligations
  171 
  118 
Income tax payable
  21 
  4 
Total current liabilities
  6,047 
  5,533 
 
    
    
Deferred tax liabilities
  4 
  5 
Long-term operating lease obligations, net of current maturities
  137 
  94 
Total non-current liabilities
  141 
  99 
Total liabilities
  6,188 
  5,632 
Commitments and contingencies (Note 21)
    
    
Shareholders’ equity:
    
    
Ordinary share,
20,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively
5,154,759 no par value shares issued as of June 30, 2021 (December 31, 2020: 3,092,859)
  123 
  123 
Additional paid-in capital
  9,642 
  9,615 
Treasury stock, 167,700 shares at cost as of June 30, 2021 and December 31, 2020, respectively
  (786)
  (786)
PRC statutory reserves
  316 
  316 
Accumulated other comprehensive income
  826 
  851 
Retained earnings
  3,275 
  3,816 
Total shareholders’ equity attributable to Euro Tech Holdings Company Limited
  13,396 
  13,935 
Non-controlling interests
  803 
  528 
Total shareholders’ equity
  14,199 
  14,463 
Total liabilities and shareholders’ equity
  20,387 
  20,095 
 
 
 
 
EURO TECH HOLDINGS COMPANY LIMITED
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020
 
 
 
2021
(Unaudited)
 
 
2020
(Unaudited)
 
 
 
US$’000
 
 
US$’000
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
Trading and manufacturing
  4,291 
  3,927 
Engineering
  5,763 
  1,791 
Total revenues
  10,054 
  5,718 
 
    
    
Cost of revenues
    
    
Trading and manufacturing
  (3,031)
  (2,819)
Engineering
  (4,001)
  (1,280)
Total cost of revenues
  (7,032)
  (4,099)
Gross profit
  3,022 
  1,619 
 
    
    
Finance costs
  (1)
  (4)
Selling and administrative expenses
  (2,514)
  (2,341)
Operating income / (loss)
  507 
  (726)
Interest income
  8 
  16 
Other income, net
  59 
  46 
Gain on disposal of property, plant and equipment
  - 
  1,429 
Equity in income of affiliates
  205 
  28 
Net income before income taxes
  779 
  793 
 
    
    
Income taxes expense
  (17)
  (50)
Net income
  762 
  743 
 
    
    
Net (income) / loss attributable to non-controlling interests
  (272)
  126 
Net income attributable to Euro Tech Holdings Company Limited’s shareholders
  490 
  869 
Other comprehensive income
    
    
    Net income
  762 
  743 
    Foreign exchange translation      Adjustments
  (22)
  (2)
Comprehensive income
  740 
  741 
Comprehensive (income) / loss attributable to non-controlling interests
  (275)
  136 
Comprehensive income attributable to the Company
  465 
  877 
 
 
 
 
Net income per ordinary share attributable to Euro Tech Holdings Company Limited’s shareholders
 
 
 
 
 
 
- Basic
 $US0.11 
 $US0.28 
- Diluted
 $US0.11 
 $US0.28 
Weighted average number of ordinary shares outstanding
    
    
- Basic
  4,459,864 
  3,092,859 
- Diluted
  4,459,864 
  3,092,859 
 
    
    
 
    
    
Dividend per share
 $US0.20 
 $US0.42 
 
 
 
 
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