Financial Performance - The company reported a net income of US$1,828,000 for Fiscal 2023, a significant increase from US$369,000 in Fiscal 2022, primarily due to a non-recurrent gain from the disposal of two desulfurization treatment plants [1] - Revenues for Fiscal 2023 were US$17,940,000, reflecting a 20.0% increase compared to US$14,949,000 in Fiscal 2022, driven by recovery in trading activities post-COVID-19 [1] - Gross profits decreased by 16.4% to US$3,861,000 in Fiscal 2023 from approximately US$4,618,000 in Fiscal 2022, attributed to a decline in gross margin percentage in engineering activities due to economic slowdown in Mainland China [2] Expenses and Operations - Selling and administrative expenses decreased by 8.6% to approximately US$4,103,000 in Fiscal 2023 from approximately US$4,490,000 in Fiscal 2022, mainly due to the cessation of operations of Shanghai Euro Tech Limited since September 2022 [2] - The CEO noted that while COVID-19 related policies were lifted, the pace of economic recovery in China remains slow and below expectations [2] Market Opportunities - The company has seen an increase in sales orders for Ballast Water Treatment Systems (BWTS) from the maritime industry and is expanding its sales regions in Dubai, Singapore, Thailand, and Turkey [3] - Anticipation of a surge in demand for smaller-sized BWTS retrofits, particularly in countries with small and medium-sized ships, is expected, supported by a new agreement with ERMA FIRST from Greece for exclusive distribution across 20 European countries [4] - The company aims to develop sales channels for industrial wastewater treatment in high-growth regions of Southeast Asia, such as the Philippines and Vietnam [5] Compliance and Regulations - BWTS are mandated by the International Maritime Organization (IMO) to prevent biological imbalance caused by ballast water, with compliance requirements established for vessels constructed after December 2013 [6] - The company has obtained type approval certificates for various BWTS capacities and is compliant with revised G8 requirements for systems installed after October 28, 2020 [7][8]
Euro Tech Holdings Company Limited Reports 2023 Year-End Results