Euro Tech Holdings Company Limited Reports 2021 Year-End Results

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May 16, 2022, 06:30 ET

HONG KONG, May 16, 2022 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2021 ("Fiscal 2021").

The Company had net income of US$989,000 in Fiscal 2021, as compared to US$769,000 for the fiscal year ended December 31, 2020 ("Fiscal 2020"). This increase was primarily due to increase in operating income which far exceeded the non-recurrent gain on disposal of a property of US$1,429,000 in Fiscal 2020.

The Company's revenues for Fiscal 2021 were US$21,388,000, an approximate 60.1% increase compared to US$13,357,000 in Fiscal 2020. The increase was principally due to the increase in revenue generated by Ballast Water Treatment Systems ("BWTS") sales and the completion of prior years' projects as the COVID-19 situation became stable in 2021.

Gross profits increased by 54.5% to US$5,695,000 for Fiscal 2021 as compared to approximately US$3,685,000 for Fiscal 2020. The increase was primarily due to the increase in revenues.

Selling and administrative expenses decreased by 8.6% to approximately US$4,911,000 for Fiscal 2021 as compared to approximately US$5,374,000 for Fiscal 2020. The decrease was principally due to the decrease in research and development costs and redundancy provision.

Mr. David, CEO of the company commented,

"In view of the current epidemic situation and its negative impact in China especially Shanghai, the Company will seek several ways to mitigate risks:

The Company is exploring the more fast growing markets in South East Asia especially Vietnam and Indonesia in order to grow its BWTS business. The company is seeking more potential partners in these countries for business co-operations not ruling out to consider manufacturing in this region.

The Company will continue to optimize and develop more new applications for BWTS and its derived wastewater solutions for maritime industry in the upcoming days.

The Company is also targeting certain market sectors with a faster business growth than others, such as pharmaceutical and semiconductor industries for its industrial wastewater treatment business."

About BWTS

BWTS are an imminent requirement by The International Maritime Organization ("IMO") to prevent the biological imbalance 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.

Forward Looking Statements

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 Mainland 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, 2021.

CONDENSED STATEMENTS OF OPERATIONS
(Dollar amounts in US$ thousands, except share and per share data)

	Year Ended December 31,
	2021	2020
Revenues	21,388	13,357

Net Income Attributable to the Company	989	769

Net Income Per Ordinary Share – Basic	$0.19	$0.25
Weighted Average Number of Ordinary Shares Outstanding –Basic	5,154,759	3,092,859

SELECTED BALANCE SHEET DATA

	As of December 31,
	2021	2020
Cash and Cash Equivalents	5,269	3,519
Total Current Assets	11,504	10,448
Total Assets	21,250	20,095
Total Current Liabilities	6,405	5,533
Total Liabilities	6,449	5,632
Total Euro Tech Shareholders' Equity	13,884	13,935