Business
Euro Tech Holdings Company Limited Reports 2020 Year-End Results
HONG KONG, May 13, 2021 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended
About this update from Euro Tech Holdings Company Limited
[{"type":"text","content":"HONG KONG, May 13, 2021 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2020 (\"Fiscal 2020\").\nThe Company had net income of approximately US$769,000 in Fiscal 2020, as compared to net loss of approximately US$146,000 for the fiscal year ended December 31, 2019 (\"Fiscal 2019\"). This was attributed by the increase in profit contribution from the affiliate of approximately US$298,000 and the non-recurrent net gain on disposal of a property of approximately US$1,429,000.\nThe Company's revenues for Fiscal 2020 were approximately US$13,357,000, an approximate 23.2% decrease compared to approximately US$17,399,000 in Fiscal 2019. The decrease was principally caused by the adverse impact of COVID-19 and the China-US escalating trade situation and technology tensions.\nGross profits decreased by 16.6% to approximately US$3,685,000 for Fiscal 2020 as compared to approximately US$4,417,000 for Fiscal 2019. The decrease was primarily due to the drop in revenues. However, the gross margin percentage was increased from 25% in Fiscal 2019 to 28% in Fiscal 2020. \nSelling and administrative expenses increased by 10.7% to approximately US$5,374,000 for Fiscal 2020 as compared to approximately US$4,853,000 for Fiscal 2019. The increase was principally due to the increase in research and development costs relating to BWTS of approximately US$458,000 for the IMO revised G8 requirements compliance and redundancy provision of approximately US$453,000 to scale down the loss making manufacturing operation. The normal selling and administrative expenses were decreased after exclusion of these non-recurrent expenses.\nOperating loss increased by 41.5% to approximately US$1,701,000 for Fiscal 2020 as compared to approximately US$440,000 for Fiscal 2019. This was primarily due to the decrease in revenue, incurrence of non-recurrent research and development costs relating to BWTS and staff redundancy provision.\nThe Company is positive about the future Ballast Water Treatment Systems (\"BWTS\") business from port services and commercial ships. Apart from securing four sales contracts and many serious inquiries for port solutions in China in the last six months, the Company is at the final stage to close the deal to supply 8 sets of BWTS of various sizes to th...