Business
Euro Tech Holdings Company Limited Reports Interim Results For The Six Months Ended June 30, 2022
HONG KONG, Dec. 23, 2022 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported its unaudited financial results for the six months
About this update from Euro Tech Holdings Company Limited
[{"type":"text","content":"HONG KONG, Dec. 23, 2022 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported its unaudited financial results for the six months ended June 30, 2022.\nThe Company's business for the six months ended June 30, 2022 (\"1H 2022\") was severely affected by the COVID-19 pandemic-control measures in China and Hong Kong, especially the strict lockdown measures imposed in Shanghai from March to May 2022.\nThe Company's revenues for 1H 2022 were US$6,730,000, a 33.1% decrease as compared to US$10,054,000 for the six months ended June 30, 2021 (\"1H 2021\"). Revenues from trading and manufacturing activities, and engineering activities decreased by US$305,000 and US$3,019,000, respectively.\nGross profits decreased by 37.5% to US$1,888,000 for 1H 2022 as compared to US$3,022,000 for 1H 2021. The decrease was primarily due to the decrease in revenues from engineering activities which is of higher gross profit margin %.\nSelling and administrative expenses decreased by US$142,000 to US$2,372,000 for 1H 2022 as compared to US$2,514,000 for 1H 2021. The decrease was principally due to the decrease in selling expenses resulting from the decrease in revenues.\nThe Company's net loss for 1H 2022 was US$184,000 as compared to net income of US$490,000 for 1H 2021 resulting from decrease in revenues.\nMr. David, CEO of the company commented,\n\"China's severe \"zero-COVID\" policy and the recent relaxation of COVID policy has significantly affected our business performance for 2022. China's economy had slowed amid macroeconomic headwinds and a slumping property market. Global markets have been falling in the wake of the Covid-19 pandemic, which has caused global supply chain disruption for many industries. Russia-Ukraine war also set off an inflationary spiral for many countries, leading to higher interest rates. Weak overseas demand and the strict zero-COVID policy combined to reduce our sales orders. The market could still be very uncertain and challenging due to the high interest rates, global economic slowdown and the likelihood of a recession in major economies.\nIn view of the poor economic environment, we have ceased the business operations of Shanghai Euro Tech Limited (\"SET\") on September 30, 2022 because SET has suffered loss for the past few years during which it focused on the manufacturing of analytical and...