Euro Tech Holdings Company Limited Reports Interim Results For The Six Months Ended June 30, 2024

Core Viewpoint - Euro Tech Holdings Company Limited reported a decrease in revenue for the first half of 2024, primarily due to a decline in engineering activities, but showed an increase in gross profit and a return to net income compared to the previous year [1][2]. Financial Performance - Revenue for the first half of 2024 was US$7,259,000, an 8.8% decrease from US$7,957,000 in the first half of 2023 [1]. - Gross profit increased by 19.5% to US$1,790,000 in 1H 2024, up from US$1,498,000 in 1H 2023, attributed to improved gross profit margins in engineering activities [2]. - General and administrative expenses slightly decreased by US$46,000 to US$2,167,000 in 1H 2024 compared to US$2,213,000 in 1H 2023 [2]. - The company achieved a net income of US$44,000 in 1H 2024, a significant improvement from a net loss of US$255,000 in 1H 2023 [2]. Business Segments - The industrial wastewater treatment (WWT) business faced challenges due to a slowdown in China's economy, impacting foreign investments and exports [3]. - Conversely, the Ballast Water Treatment Systems (BWTS) business experienced steady growth in China and overseas, particularly in Turkey, driven by the maritime industry's expansion [4]. - The company anticipates capturing more sales orders for BWTS due to a trend among shipowners acquiring smaller vessels and stricter compliance with environmental regulations [5]. Strategic Developments - The company has established a majority-owned entity in Singapore, PACT Environmental Technology PTE Ltd, to enhance support for international clients and increase bidding opportunities [6]. - Upcoming trade shows for BWTS will also serve to promote the industrial WWT business to the maritime sector, aligning with the green transformation initiatives driven by stringent environmental regulations [6]. Regulatory Context - The International Maritime Organization (IMO) mandates ballast water treatment to prevent ecological imbalances caused by ballast water from ocean-going vessels [7]. - Compliance with revised G8 requirements for BWTS has been achieved, with type approval certificates obtained for various capacities [8].