HONG KONG, April 30, 2025 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2024 ("Fiscal 2024").
The Company had net income of US$734,000 in Fiscal 2024, as compared to US$1,828,000 for the fiscal year ended December 31, 2023 ("Fiscal 2023"). There was an exceptional increase in equity in income of affiliates in Fiscal 2023 arising from the disposal of 2 desulfurization treatment plants for a "Build-operate-transfer" project, which contributed approximately US$1,450,000 to the Company's net income of Fiscal 2023. The Company's net income had a substantial increase if the non-recurrent profit is excluded.
The Company's revenues for Fiscal 2024 were US$15,383,000, an approximate 14.3% decrease compared to US$17,940,000 for Fiscal 2023. The decrease in revenue was mainly a result of substantial drop in sales of high value analytical instruments to Hong Kong Government.
Gross profits increased by 15.4% to US$4,454,000 for Fiscal 2024 as compared to approximately US$3,861,000 for Fiscal 2023. The increase was principally due to decrease in sales of high value analytical instruments of lower gross profit % and increase in revenue of Ballast Water Treatment Systems ("BWTS") of higher gross profit margin.
Selling and administrative expenses slightly decreased by 0.9% to approximately US$4,067,000 for Fiscal 2024 as compared to approximately US$4,103,000 for Fiscal 2023.
Mr. David Leung, CEO of the company commented,
"In 2024, the company's performance has remained stable despite a challenging economic landscape. We have maintained stable growth overall for BWTS. However, our Wastewater Treatment ("WWT") business continues to struggle due to the industrial sector being impacted by declines in foreign investment.
Looking ahead, even though economic challenges still exist, we are confident in our ability to develop the company. We see market potential for using mobile port BWT systems and related shore-based water solutions because of certain maritime cities experiencing high traffic congestion and a demand for using port BWT as emergency and rapid solutions. Additionally, more maritime countries will soon launch stricter environmental regulations to protect their coastlines, which will benefit us in promoting clean water solutions, such as ballast water, industrial wastewater and water solutions, etc. Last but not least, we will continue to capture the small and medium-sized ships market for BWTS retrofit at full speed and are planning to engage in direct marketing with shipowners by co-organizing technical seminars with distributors in high-growth shipping regions outside China.
Turning adversity into opportunity is the way forward!"
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'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.
Its ballast water port solution, HarborBallast, 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 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, 2024.
CONDENSED STATEMENTS OF OPERATIONS
(Dollar amounts in US$ thousands, except share and per share data)
