HONG
KONG, Dec. 13, 2016 /PRNewswire/ -- Euro Tech Holdings
Company Limited (Nasdaq: CLWT) today reported its unaudited
financial results for the six months ended June 30, 2016.
The Company's revenues for the six months ended June 30, 2016 ("1H 2016") were approximately
US$10,469,000, a 26.5% increase as
compared to approximately US$8,273,000 for the six months ended
June 30, 2015 ("1H 2015"). This
increase was due to the increase in revenues from trading
activities and engineering activities of approximately US$1,367,000 and US$829,000, respectively.
Gross profits increased by 3.9% to approximately US$1,929,000 for 1H 2016 as compared to
approximately US$1,857,000 for 1H
2015. The increase was due to the increase in the Company's revenue
even though the gross profit margin % is lower because of keen
competition under poor economic conditions.
Selling and administrative expenses decreased by approximately
US$189,000 to US$2,814,000 for 1H 2016 as compared to
approximately US$3,003,000 for 1H
2015. The decrease was primarily due to the decrease of
approximately US$111,000 in
development costs of Ballast Water Treatment Systems ("BWTS") to
approximately US$252,000 for 1H 2016
as compared to approximately US$363,000 for 1H 2015, and decrease in general
overheads resulting from actions to trim overheads.
The profit contribution from the affiliates increased by
approximately US$206,000 to profit
contribution of US$68,000 for 1H 2016
as compared to negative contribution of approximately US$138,000 for 1H 2015.
The net loss decreased by US$178,000 to approximately US$484,000 for 1H 2016, as compared to
approximately US$662,000 for 1H 2015.
This was primarily due to increase in revenue, decrease in selling
and administrative expenses, and profit contribution from the
affiliates, despite the decrease in other income due to exchange
loss arising from devaluation of Chinese Renminbi.
The company obtained type approval certificate from China's Classification Society ("CCS") for its
200, 300, 500, 750, 1200 and 1250 Cubic Meters per hour BWTS in
May 2016. Alternate Management
Systems ('AMS") acceptance for its full range BWTS was obtained in
October 2016.
In September 2016, the
International Maritime Organization had received acceptance from 52
States, representing 35.1441% of world merchant shipping tonnage.
The Ballast Water Management Convention will enter into force 12
months after this ratification, i.e. September 8, 2017. The Company has since received
a number of enquiries for its BWTS from China, Hong
Kong, Russia, India and other Southeast Asian countries,
despite worldwide recession in shipping industries.
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 requires that the Ballast Water Management Convention will
enter into force on September 8, 2017
after ratification by 52 States, representing 35.1441% of world
merchant shipping tonnage. The market potential for retrofits and
new installations of BWTS in these old and new ocean-going vessels
is enormous.
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.
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, 2015.
EURO TECH HOLDINGS
COMPANY LIMITED
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
As of
June 30,
2016
(Unaudited)
|
|
As of
December 31,
2015
(Audited)
|
|
|
US$'000
|
|
US$'000
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
2,809
|
|
2,480
|
Restricted
cash
|
|
242
|
|
475
|
Accounts receivable,
net
|
|
3,176
|
|
4,500
|
Prepayments and other
current assets
|
|
990
|
|
500
|
Inventories
|
|
426
|
|
557
|
Total current
assets
|
|
7,643
|
|
8,512
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
756
|
|
773
|
|
|
|
|
|
Investments in
affiliates
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|
10,532
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|
10,712
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|
|
|
|
|
Goodwill
|
|
1,071
|
|
1,071
|
|
|
|
|
|
Deferred tax
assets
|
|
178
|
|
202
|
|
|
|
|
|
Total
assets
|
|
20,180
|
|
21,270
|
|
|
|
|
|
Liabilities and
shareholders' equity
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|
|
|
|
|
|
|
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|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
3,042
|
|
3,054
|
Other payables and
accrued expenses
|
|
1,379
|
|
1,626
|
Taxation
payable
|
|
133
|
|
134
|
Total current
liabilities
|
|
4,554
|
|
4,814
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
Shareholders'
equity:
|
|
|
|
|
Ordinary share,
20,000,000 (As of December 31,
2015: 20,000,000) shares authorized; 2,229,609
(As of December 31, 2015: 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,
2015: 167,700) shares at cost
|
|
(786)
|
|
(786)
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PRC statutory
reserve
|
|
315
|
|
315
|
Accumulated other
comprehensive income
|
|
810
|
|
799
|
Retained
earnings
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|
4,660
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|
5,144
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Equity attributable
to owners of Euro Tech
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14,673
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|
15,146
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Non-controlling
interest
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|
953
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|
1,310
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Total shareholders'
equity
|
|
15,626
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16,456
|
|
|
|
|
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Total liabilities and
shareholders' equity
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|
20,180
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|
21,270
|
EURO TECH HOLDINGS
COMPANY LIMITED
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS)/INCOME
FOR THE SIX
MONTHS ENDED JUNE 30, 2016 AND 2015
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|
|
2016
(Unaudited)
|
|
2015
(Unaudited)
|
|
|
|
US$'000
|
|
US$'000
|
|
|
|
|
|
|
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Revenues
|
|
|
|
|
|
Trading and
manufacturing
|
|
8,034
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6,667
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|
Engineering
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2,435
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|
1,606
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|
Total
revenues
|
|
10,469
|
|
8,273
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
Trading and
manufacturing
|
|
(6,689)
|
|
(5,381)
|
|
Engineering
|
|
(1,851)
|
|
(1,035)
|
|
Total cost of
revenues
|
|
(8,540)
|
|
(6,416)
|
|
Gross
profit
|
|
1,929
|
|
1,857
|
|
|
|
|
|
|
|
Finance
costs
|
|
(8)
|
|
-
|
|
Selling and
administrative expenses
|
|
(2,814)
|
|
(3,003)
|
|
Operating
loss
|
|
(893)
|
|
(1,146)
|
|
Interest
income
|
|
13
|
|
5
|
|
Other income,
net
|
|
(1)
|
|
50
|
|
Loss before income
taxes and equity in profit of affiliates
|
|
(881)
|
|
(1,091)
|
|
|
|
|
|
|
|
Income
taxes
|
|
(24)
|
|
318
|
|
Equity in profit of
affiliates
|
|
68
|
|
(138)
|
|
Net loss
|
|
(837)
|
|
(911)
|
|
Less: net loss
attributable to non-controlling interest
|
|
353
|
|
249
|
|
Net loss attributable
to the Company
|
|
(484)
|
|
(662)
|
|
Other comprehensive
loss
|
|
|
|
|
|
Net loss
|
|
(837)
|
|
(911)
|
|
Foreign exchange translation
Adjustments
|
|
7
|
|
(1)
|
|
Comprehensive
loss
|
|
(830)
|
|
(912)
|
|
Less: Comprehensive
loss attributable to non-controlling interest
|
|
357
|
|
249
|
|
Comprehensive loss
attributable to the Company
|
|
(473)
|
|
(663)
|
|
|
|
|
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|
|
Net loss per ordinary
share
|
|
|
|
|
|
- Basic
|
|
US($0.23)
|
|
US($0.32)
|
|
|
|
|
|
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- Diluted
|
|
US($0.23)
|
|
US($0.32)
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|
Weighted average
number of ordinary shares outstanding
|
|
|
|
|
|
- Basic
|
|
2,061,909
|
|
2,062,409
|
|
|
|
|
|
|
|
- Diluted
|
|
2,061,909
|
|
2,062,409
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/euro-tech-holdings-company-limited-reports-interim-results-for-the-six-months-ended-june-30-2016-300377085.html
SOURCE Euro Tech Holdings Company Limited