HONG KONG, June 29 /PRNewswire-Asia/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2008 ("Fiscal 2008").
The Company's revenues for Fiscal 2008 were approximately $31,738,000, an approximate 16% increase compared to approximately $27,230,000 in the Company's fiscal year ended December 31, 2007 ("Fiscal 2007"). The net income for Fiscal 2008 was approximately $149,000, an approximate 65% decrease from Fiscal 2007 net income of approximately $422,000.
The increase of the company's revenues is mainly due to the increase of engineering contracts from Shanghai Euro Tech Environmental Engineering Ltd. ("Euro Tech Engineering") and Yixing Pact Environmental Technology Company Limited ("Pact").
The falling net income is mainly due to selling and administrative expenses increased approximately US$628,000 (9.5%) and income tax increased approximately US$177,000 as compared with Fiscal 2007. The increase in selling and administrative expenses was principally due to the increase of manpower in Euro Tech Engineering, Pact engineering and manufacturing.
Mr. T.C. Leung, Chairman and CEO of the company commented "We started the year of 2008 positively with expansions in Euro Tech Engineering to set up a branch in Southern China and the increase of manpower for both Pact engineering and manufacturing to cope with growing business opportunities, as we did not expect the global financial crisis to happen. When it happened, the Euro Tech Engineering branch was closed and quite a number of staff members from Euro Tech and Pact were trimmed towards the 3rd and 4th quarters of 2008 thus accounting for the major increase of selling and administrative expenses.
The management expects 2009 is a turbulent year, for the first 5 months, amid the global financial crisis and recession, the export trades, foreign and domestic investments in China were badly affected. Even with a cushion of orders received in 2008, further overheads and manpower were trimmed as a result of merging some of our sales departments during this period. On the other hand, despite under difficult circumstances, to demonstrate our confidence, we have been repurchasing our company's shares, and spending more money in developing new products. We believe they are good investments of our excess cash for future growth and our shareholders.
With the global and China economies showing signs of stabilizing now, and environmental protection is still one of the ten major areas of China's 4 trillion Yuan (about 570 billion US dollars) stimulus package to boost economy, and domestic demand. We begin to see some improvement in order level now and expect to see return to growth in coming months."
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, 2008.
CONDENSED STATEMENTS OF OPERATIONS
(Dollar amounts in US$ thousands, except share and per share data)
As of December 31,
2008 2007 %Change
Revenues $31,738 $27,230 +16%
Net Income 149 422 -65%
Net Income Per Share -- Basic 0.01 0.04 --
Weighted Average Number of
Ordinary Shares Outstanding -Basic 11,824,153 11,105,556 --
SELECTED BALANCE SHEET DATA
Year Ended December 31,
2008 2007 %Change
Cash and Cash Equivalents $7,146 $9,387 -24%
Total Current Assets 17,882 17,623 +1%
Total Assets 28,278 25,482 +11%
Total Current Liabilities 9,299 7,524 +24%
Total Liabilities 9,299 7,524 +24%
Total Shareholders' Equity 16,993 16,413 +4%
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
Pact's Websites: http://www.pactchina.com
http://www.pact-mfg.com