HONG KONG, Dec. 30, 2025 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported its unaudited financial results for the six months ended June 30, 2025.
The Company's revenue for the six months ended June 30, 2025 ("1H 2025") were US$5,888,000, a 18.9% decrease as compared to US$7,259,000 for the six months ended June 30, 2024 ("1H 2024"). Revenue from trading activities decreased significantly, primarily due to lowered sales of U.S. products to China following U.S. tariffs and Chinese retaliatory measures.
Gross profit decreased by 5.2% to US$1,697,000 for 1H 2025 as compared to US$1,790,000 for 1H 2024. The decrease was due to the decrease in revenue. However the gross profit margin % for 1H 2025 increased by 4.2% to 28.8% as compared to 24.6% for 1H 2024.
General and administrative expenses decreased by US$102,000 to US$2,065,000 for 1H 2025 as compared to US$2,167,000 for 1H 2024.
The Company's net loss for 1H 2025 was US$127,000 as compared to net income of US$44,000 for 1H 2024 resulting from decrease in revenue and equity in income of affiliate.
Mr. David Leung, CEO of the company commented,
"Despite the challenging business environment, we have seen a remarkable increase in sales orders, achieving double-digit growth in the first half of the year. This growth is primarily driven by heightened engineering activities in water and wastewater treatment ("WWT"), although the delivery timelines will be extended until the end of this year or early next year.
Recently, we have also secured additional purchase orders from international markets, including Mongolia, Norway, and Dubai, for both WWT and ballast water treatment systems ("BWTS").
In the coming days, we intend to diversify our sales channels and explore new product applications in high-growth regions and industries to further leverage this momentum."
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.
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.
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.
EURO TECH HOLDINGS COMPANY LIMITED
CONSOLIDATED BALANCE SHEETS
As of As of
June 30, December 31,
2025 2024
(Unaudited) (Audited)
US$'000 US$'000
ASSETS
Current assets:
Cash and cash equivalents 4,493 5,805
Restricted cash 1,517 1,132
Accounts receivable, net 1,342 1,386
Prepayments and other current assets 437 271
Contract assets 80 135
Inventories 302 500
------------ ------------
Total current assets 8,171 9,229
------------ ------------
Property, plant and equipment, net 157 159
Investments in affiliates 9,774 9,947
Goodwill 1,071 1,071
Operating lease right-of-use assets, net 231 101
Deferred tax assets 80 62
Restricted cash 315 139
------------ ------------
Total non-current assets 11,628 11,479
------------ ------------
TOTAL ASSETS 19,799 20,708
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,547 2,279
Contract liabilities 761 593
Other payables and accrued expenses 895 1,050
Current portion of long-term operating lease
liabilities 127 83
------------ ------------
Total current liabilities 3,330 4,005
------------ ------------
Long-term operating lease liabilities, net of
current portion 95 9
------------ ------------
Total non-current liabilities 95 9
------------ ------------
TOTAL LIABILITIES 3,425 4,014
------------ ------------
Commitments and contingencies - -
SHAREHOLDERS' EQUITY:
Ordinary share, 20,000,000 shares authorized
and no par value; 7,899,832 and 7,899,832
shares issued as of June 30, 2025
and December 31, 2024, respectively 123 123
Additional paid-in capital 9,774 9,774
Treasury stock, 330,306 and 183,533 shares at
cost as of June 30, 2025 and December 31,
2024, respectively (981) (807)
PRC statutory reserves 345 345
Accumulated other comprehensive income 734 713
Retained earnings 5,468 5,595
------------ ------------
Total shareholders' equity attributable to Euro
Tech Holdings Company Limited 15,463 15,743
Noncontrolling interests 911 951
------------ ------------
Shareholders' equity 16,374 16,694
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 19,799 20,708
EURO TECH HOLDINGS COMPANY LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
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