HONG KONG, Dec. 22, 2017
/PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq:
CLWT) today reported its unaudited financial results for the six
months ended June 30, 2017.
The Company's revenues for the six months ended June 30, 2017 ("1H 2017") were approximately
US$8,707,000, a 16.8% decrease as
compared to approximately US$10,469,000 for the six months ended
June 30, 2016 ("1H 2016"). This
decrease was primarily due to the decrease in revenues from trading
and manufacturing activities.
Gross profits slightly decreased by 1.7% to approximately
US$1,895,000 for 1H 2017 as compared
to approximately US$1,929,000 for 1H
2016. The decrease was due to the decrease in the Company's revenue
which was mostly offset by the improvement of the gross profit
margin % .
Selling and administrative expenses decreased by approximately
US$323,000 to US$2,491,000 for
1H 2017 as compared to approximately US$2,814,000 for 1H 2016. The decrease was
primarily due to the decrease of approximately US$213,000 in development costs of Ballast Water
Treatment Systems ("BWTS") to approximately US$39,000 for 1H 2017 as compared to
approximately US$252,000 for 1H 2016,
and decrease in general overheads resulting from actions to trim
overheads.
The profit contribution from the affiliates, Zhejiang Tianlan
Environmental Protection Technology Co. Ltd., ("Blue Sky") and
Zhejiang Jia Huan Electronic Co. Ltd. ("Jia
Huan"), increased by approximately US$164,000 to US$232,000 for 1H 2017 as compared to
approximately US$68,000 for 1H
2016.
The net loss decreased by US$392,000 to approximately US$92,000 for 1H 2017, as compared to
approximately US$484,000 for 1H 2016.
This was primarily due to decrease in selling and administrative
expenses, and profit contribution from the affiliates.
Despite some changes in the decision by IMO, the Company
continues to develop its BWT business. It has recently received an
order for one set of P-300 BWTS for a scientific research ship from
Russia. Moreover, the Company has
developed a handheld ballast water checker which is the first
handheld rapid indicative compliance instrument made in
China, based on well accepted PAM
fluorescence Technology. The instrument is a very powerful
screening tool for ship owners, compliance officers, ship builders
and BWTS providers.
The company is now one of the few qualified local and foreign
candidates to participate in China
Marine Safety Administration's evaluation of indicative testing
instruments to be used by Port State Control officers for
compliance test according to IMO D2 standard. The evaluation is
still in progress and the result will be announced in the first
quarter of 2018.
In the past few months, the Company has attended and
participated in local and international trade shows in Shanghai, Beijing, Qingdao and Zhanjiang to promote BWTS and
handheld ballast water checker.
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 will start 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 and
Alternate Management Systems ('AMS") acceptance for its full range
BWTS in 2016.
About AMS
AMS acceptance by the U.S. Coast Guard is a temporary
designation given to BWTS approved by a foreign administration. It
enables BWTS to be used on vessels for a period of up to 5 years,
while the treatment system undergoes approval testing to U.S. Coast
Guard standards.
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. Its shares have been listed on the New Third Board
in the People's Republic of
China ("PRC") in November
2015. The New Third Board is a national over-the-counter
market in the PRC regulated by China Securities Regulatory
Commission, and managed by the National Equities Exchange and
Quotations, which serves as a platform for the sale of existing
shares or directed share placements for small and medium-sized
enterprises. Blue Sky announced its shares were suspended from
trading on the New Third Board since 15
August 2017 as it is planning some material events.
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 mainland
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, 2016.
EURO TECH HOLDINGS
COMPANY LIMITED
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
As of
June 30,
2017
(Unaudited)
|
As of December 31,
2016
(Audited)
|
|
|
US$'000
|
US$'000
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
|
3,626
|
3,751
|
Restricted
cash
|
|
642
|
284
|
Accounts receivable,
net
|
|
3,314
|
4,393
|
Prepayments and other
current assets
|
|
745
|
815
|
Inventories
|
|
481
|
344
|
|
|
──────
|
──────
|
Total current
assets
|
|
8,808
|
9,587
|
|
|
-----------
|
-----------
|
|
|
|
|
Property, plant and
equipment, net
|
|
746
|
771
|
|
|
|
|
Investments in
affiliates
|
|
11,431
|
11,489
|
|
|
|
|
Goodwill
|
|
1,071
|
1,071
|
|
|
|
|
Deferred tax
assets
|
|
165
|
186
|
|
|
──────
|
──────
|
|
|
|
|
Total
assets
|
|
22,221
|
23,104
|
|
|
══════
|
══════
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
|
3,291
|
3,173
|
Loans
payable
|
|
361
|
720
|
Other payables and
accrued expenses
|
|
2,123
|
2,258
|
Taxation
payable
|
|
132
|
335
|
|
|
──────
|
──────
|
Total current
liabilities
|
|
5,907
|
6,486
|
|
|
-----------
|
-----------
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
-
|
|
|
-----------
|
-----------
|
Shareholders'
equity:
|
|
|
|
Ordinary share,
20,000,000 (As of December 31, 2016: 20,000,000) shares authorized;
2,229,609 (As of December 31, 2016: 2,229,609) shares issued and
outstanding
|
|
123
|
123
|
Additional paid-in
capital
|
|
9,551
|
9,551
|
Treasury stock, 167,700
(As of December 31, 2016: 167,700) shares at cost
|
|
(786)
|
(786)
|
PRC statutory
reserve
|
|
352
|
352
|
Accumulated other
comprehensive income
|
|
818
|
857
|
Retained
earnings
|
|
5,246
|
5,338
|
|
|
──────
|
──────
|
Equity attributable
to owners of Euro Tech
|
|
15,304
|
15,435
|
Non-controlling
interest
|
|
1,010
|
1,183
|
|
|
──────
|
──────
|
Total shareholders'
equity
|
|
16,314
|
16,618
|
|
|
-----------
|
-----------
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
22,221
|
23,104
|
|
|
══════
|
══════
|
EURO TECH HOLDINGS
COMPANY LIMITED
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS)/INCOME
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2017 AND 2016
|
|
|
|
|
|
|
|
2017
(Unaudited)
|
2016
(Unaudited)
|
|
|
|
US$'000
|
US$'000
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
Trading and
manufacturing
|
|
5,370
|
8,034
|
|
Engineering
|
|
3,337
|
2,435
|
|
|
|
────────
|
────────
|
|
Total
revenues
|
|
8,707
|
10,469
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
Trading and
manufacturing
|
|
(4,128)
|
(6,689)
|
|
Engineering
|
|
(2,684)
|
(1,851)
|
|
|
|
────────
|
────────
|
|
Total cost of
revenues
|
|
(6,812)
|
(8,540)
|
|
|
|
────────
|
────────
|
|
Gross
profit
|
|
1,895
|
1,929
|
|
|
|
|
|
|
Finance
costs
|
|
(6)
|
(8)
|
|
Selling and
administrative expenses
|
|
(2,491)
|
(2,814)
|
|
|
|
────────
|
────────
|
|
Operating
loss
|
|
(602)
|
(893)
|
|
Interest
income
|
|
2
|
13
|
|
Other income,
net
|
|
99
|
(1)
|
|
|
|
────────
|
────────
|
|
Loss before income
taxes and equity in profit of affiliates
|
|
(501)
|
(881)
|
|
|
|
|
|
|
Income
taxes
|
|
(21)
|
(24)
|
|
Equity in profit of
affiliates
|
|
232
|
68
|
|
|
|
────────
|
────────
|
|
Net loss
|
|
(290)
|
(837)
|
|
Less: net loss
attributable to non-controlling interest
|
|
198
|
353
|
|
|
|
────────
|
────────
|
|
Net loss attributable
to the Company
|
|
(92)
|
(484)
|
|
|
|
════════
|
════════
|
|
Other comprehensive
loss
|
|
|
|
|
Net loss
|
|
(290)
|
(837)
|
|
Foreign exchange translation
Adjustments
|
|
(14)
|
7
|
|
|
|
────────
|
────────
|
|
Comprehensive
loss
|
|
(304)
|
(830)
|
|
Less: Comprehensive
loss attributable to non-controlling interest
|
|
173
|
357
|
|
|
|
────────
|
────────
|
|
Comprehensive loss
attributable to the Company
|
|
(131)
|
(473)
|
|
|
|
════════
|
════════
|
|
|
|
|
|
|
Net loss per ordinary
share
|
|
|
|
|
- Basic
|
|
US($0.04)
|
US($0.23)
|
|
|
|
════════
|
════════
|
|
|
|
|
|
|
- Diluted
|
|
US($0.04)
|
US($0.23)
|
|
|
|
════════
|
════════
|
|
Weighted average
number of ordinary shares outstanding
|
|
|
|
|
- Basic
|
|
2,061,909
|
2,061,909
|
|
|
|
════════
|
════════
|
|
|
|
|
|
|
- Diluted
|
|
2,061,909
|
2,061,909
|
|
|
|
════════
|
════════
|
|
View original
content:http://www.prnewswire.com/news-releases/euro-tech-holdings-company-limited-reports-interim-results-for-the-six-months-ended-june-30-2017-300574904.html
SOURCE Euro Tech Holdings Company Limited