Euro Tech Holdings Company Limited Reports 2015 Year-End Results
Thursday, April 28, 2016 5:05:00 PM ET
Euro Tech Holdings Company Limited (CLWT ) today reported financial results for the 12-month period ended December 31, 2015 ("Fiscal 2015").
The Companys revenues for Fiscal 2015 were approximately $18,302,000, an approximate 2.8% decrease compared to approximately $18,822,000 in the Companys fiscal year ended December 31, 2014 ("Fiscal 2014").
The net loss increased to approximately US$616,000 in Fiscal 2015 from approximately US$123,000 in Fiscal 2014. This was primarily due to decrease in revenue from engineering activities because of keen competition under the current tough economic environment in PRC, research and development expenses of approximately US$851,000 for Ballast Water Treatment Systems ("BWTS"), and loss of Shanghai Euro Tech Environmental Engineering Company Ltd. ("Shanghai Environmental") of approximately US$558,000.
Mr. T.C. Leung, Chairman and CEO of the company commented, "In view of the economy slowdown in China, we have to take measures to trim our overheads and wind down loss making companies."
"On the other hand, we are positive about the BWTS business potential. Since no further clarifications requested from the Chinas Classification Society (CCS), we expect to obtain the CCS type approval certificates for 200, 500, 750, 1200 and 1250 cubic meters per hour BWTS soon. In the meantime, we are working on the development of a handheld portable Ballast Water checker for rapid Ballast water tests for the Maritime Industry."
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 12 months after ratification by 30 States, representing 35% of world merchant shipping tonnage. As of April 22, 2016, 50 countries had joined, representing 34.83% 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 Shanghai Environmental
Shanghai Environmental is the Companys wholly-owned subsidiary to carry on environmental engineering business. The Company plans to wind it down upon completion of the outstanding projects and collection of outstanding account receivable.
Certain statements in this news release regarding the Companys 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 Companys offices and operations situated in Hong Kong and China, doing business in China, competing with Chinese manufactured products, competing with the Companys 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 Companys filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F for its fiscal year ended December 31, 2015.
CONDENSED STATEMENTS OF OPERATIONS
(Dollar amounts in US$ thousands, except share and per share data)
Year Ended December 31,
Revenues $ 18,302 $ 18,822
Net Loss attributable to the Company (616) (123)
Net Loss Per Share - Basic (0.30) (0.06)
Weighted Average Number of 2,063,738 2,069,223
Ordinary Shares Outstanding - Basic
SELECTED BALANCE SHEET DATA
As of December 31,
Cash and Cash Equivalents $ 2,480 $ 4,857
Total Current Assets 8,512 11,136
Total Assets 21,270 23,399
Total Current Liabilities 4,814 5,869
Total Liabilities 4,814 5,869
Total Euro Tech Shareholders Equity 15,146 15,743
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SOURCE Euro Tech Holdings Company Limited