HONG KONG, April 28, 2012 /PRNewswire-Asia/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2011 ("Fiscal 2011").
The Company's revenues for Fiscal 2011 were approximately $20,213,000, an approximate 9% decrease compared to approximately $22,305,000 in the Company's fiscal year ended December 31, 2010 ("Fiscal 2010"). The net income for Fiscal 2011 was approximately $521,000, as compared to net loss of approximately $1,087,000 for Fiscal 2010.
The decrease of the company's revenues was mainly due to further decline in revenues from trading activities as some major foreign suppliers market and sell their products directly or through many distributors in China instead of using the Company as their sole distributor as in the past.
The net income for Fiscal 2011 was mainly due to the increase in contributions from the affiliate, particularly Blue Sky, gain on disposal of a property and decrease in selling and administrative expenses which offset the declines in total revenues and gross profit, research and development costs for Ballast Water Treatment System (BWTS) and additional expenses for closing some non-profitable operations.
Mr. T.C. Leung, Chairman and CEO of the company commented: "As a result of the streamlining of sales forces and offices in the Company and the decision to close Pact Environmental Equipment Co. Limited and shift its activities to PACT in October 2011, the company has become a lean and efficient organization ready to face the slowdown of economy in China."
The lean operation can help the company survived even at reduced revenues, and adverse environment: For distribution business, the company focuses on the trading of third party products in Hong Kong only. For manufacturing business, the Company focuses on chemical reagent business which is a repetitive and more profitable business than the instruments it manufactures. For water treatment business, the company focuses on multinational companies in China and international contractors based in China. These strategies render the company low overheads, low risks and guarantee of getting payments as many local companies in China have various degrees of payment problem
Blue Sky, which made substantial contributions in 2010 and 2011 to the company, has submitted an initial public offering application in March 2012 with the appropriate government authorities in China. The contemplated offering by Blue Sky is subject to the approval of those government authorities.
Regarding the potential BWTS business, despite the hardship in the past two years, the company has still been investing a lot of its resources in the BWTS, and is positive about it for the worldwide maritime industry. The company expects to get the necessary certifications in China by the end of 2012 and some retrofit business in 2013.
BWTS is 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 ships when their ballast water tanks are emptied or refilled. The market potential for retrofits and new installations of BWTS in these old and new ocean-going ships is enormous.
About PACT:
Pact Environmental Technology Co. Ltd. ("Pact"), based in Shanghai, is a global provider of environmental solutions for industrial and municipal clients, focusing on water and wastewater treatment. Pact's capabilities cover design, manufacturing, sourcing, installation and servicing of water/wastewater treatment, water desalination plants and equipment.
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.
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, 2011.
CONDENSED STATEMENTS OF OPERATIONS
(Dollar amounts in US$ thousands, except share and per share data)
Year Ended December 31, | |||
2011 | 2010 | ||
Revenues | $ 20,213 | $ 22,305 | |
Net Income/(Loss) Attributable to the Company | 521 | (1,087) | |
Net Income/(Loss) Per Share -- Basic | 0.25 | (0.52) | |
Weighted Average Number of Ordinary Shares Outstanding -- Basic |
2,087,922 |
2,099,894 | |
SELECTED BALANCE SHEET DATA
As of December 31, | |||
2011 | 2010 | ||
Cash and Cash Equivalents | $ 5,339 | $ 6,130 | |
Total Current Assets | 11,685 | 13,556 | |
Total Assets | 23,864 | 25,213 | |
Total Current Liabilities | 5,955 | 7,112 | |
Total Liabilities | 5,955 | 7,112 | |
Total Euro Tech Shareholders' Equity | 16,299 | 15,746 | |
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 website: http://www.pactchina.com/
Blue Sky's website: http://www.tianlan.cn/
