Euro Tech Holdings Company Limited Reports 2024 Year-End Results

Rhea-AI Summary

Euro Tech Holdings reported its 2024 financial results with a net income of $734,000, down from $1.83 million in 2023. The company's revenues decreased by 14.3% to $15.38 million, primarily due to reduced sales of analytical instruments to the Hong Kong Government.

Despite lower revenue, gross profits increased by 15.4% to $4.45 million, driven by higher sales of Ballast Water Treatment Systems (BWTS) with better profit margins. The company maintained stable BWTS growth while facing challenges in its Wastewater Treatment business due to declining foreign investment.

Looking forward, Euro Tech sees opportunities in mobile port BWT systems and shore-based water solutions. The company plans to focus on capturing the small and medium-sized ships market for BWTS retrofit and expanding direct marketing efforts with shipowners in high-growth shipping regions outside China.

Positive

• Gross profits increased 15.4% to $4.45M in 2024
• Cash and cash equivalents grew to $5.8M from $5.45M in 2023
• Total current liabilities decreased by 28.4% to $4M
• Strong market potential identified in mobile port BWT systems
• Net income shows substantial increase when excluding 2023's one-time gain

Negative

• Revenue decreased 14.3% to $15.38M in 2024
• Net income declined 59.8% to $734K from $1.83M in 2023
• Total assets decreased to $20.7M from $22.1M
• Wastewater Treatment business struggling due to declining foreign investment
• Total current assets declined to $9.23M from $10.55M

HONG KONG, April 30, 2025 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) today reported financial results for the 12-month period ended December 31, 2024 ("Fiscal 2024").

The Company had net income of US$734,000 in Fiscal 2024, as compared to US$1,828,000 for the fiscal year ended December 31, 2023 ("Fiscal 2023"). There was an exceptional increase in equity in income of affiliates in Fiscal 2023 arising from the disposal of 2 desulfurization treatment plants for a "Build-operate-transfer" project, which contributed approximately US$1,450,000 to the Company's net income of Fiscal 2023.  The Company's net income had a substantial increase if the non-recurrent profit is excluded.

The Company's revenues for Fiscal 2024 were US$15,383,000, an approximate 14.3% decrease compared to US$17,940,000 for Fiscal 2023. The decrease in revenue was mainly a result of substantial drop in sales of high value analytical instruments to Hong Kong Government.

Gross profits increased by 15.4% to US$4,454,000 for Fiscal 2024 as compared to approximately US$3,861,000 for Fiscal 2023. The increase was principally due to decrease in sales of high value analytical instruments of lower gross profit % and increase in revenue of Ballast Water Treatment Systems ("BWTS") of higher gross profit margin.

Selling and administrative expenses slightly decreased by 0.9% to approximately US$4,067,000 for Fiscal 2024 as compared to approximately US$4,103,000 for Fiscal 2023.

Mr. David Leung, CEO of the company commented,

"In 2024, the company's performance has remained stable despite a challenging economic landscape. We have maintained stable growth overall for BWTS. However, our Wastewater Treatment ("WWT") business continues to struggle due to the industrial sector being impacted by declines in foreign investment.

Looking ahead, even though economic challenges still exist, we are confident in our ability to develop the company. We see market potential for using mobile port BWT systems and related shore-based water solutions because of certain maritime cities experiencing high traffic congestion and a demand for using port BWT as emergency and rapid solutions. Additionally, more maritime countries will soon launch stricter environmental regulations to protect their coastlines, which will benefit us in promoting clean water solutions, such as ballast water, industrial wastewater and water solutions, etc. Last but not least, we will continue to capture the small and medium-sized ships market for BWTS retrofit at full speed and are planning to engage in direct marketing with shipowners by co-organizing technical seminars with distributors in high-growth shipping regions outside China.

Turning adversity into opportunity is the way forward!"

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.

Its ballast water port solution, HarborBallast, 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.

Forward Looking Statements

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.

 

CONDENSED STATEMENTS OF OPERATIONS
(Dollar amounts in US$ thousands, except share and per share data)
	Year Ended December 31,
	2024	2023
Revenues	15,383	17,940
Net Income Attributable to the Company	734	1,828
Net Income Per Ordinary Share – Basic	$0.10	$0.24
Weighted Average Number of     Ordinary Shares Outstanding –Basic	7,716,993	7,726,118

 

SELECTED BALANCE SHEET DATA
	As of December 31,
	2024	2023
Cash and Cash Equivalents	5,805	5,453
Total Current Assets	9,229	10,545
Total Assets	20,708	22,120
Total Current Liabilities	4,005	5,596
Total Liabilities	4,014	5,640
Total Euro Tech Shareholders' Equity	15,743	15,641

 

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SOURCE EURO TECH HOLDINGS COMPANY LIMITED

FAQ

What caused Euro Tech (CLWT) net income to drop from $1.8M to $734K in 2024?

The drop was mainly due to a one-time gain in 2023 of $1.45M from selling two desulfurization treatment plants. Excluding this non-recurring profit, CLWT actually showed substantial net income growth in 2024.

Why did Euro Tech (CLWT) revenue decrease by 14.3% in 2024?

CLWT's revenue decreased from $17.94M to $15.38M primarily due to substantially lower sales of high-value analytical instruments to the Hong Kong Government.

How did Euro Tech (CLWT) improve its gross profits in 2024?

CLWT's gross profits increased 15.4% to $4.45M due to reduced sales of lower-margin analytical instruments and increased revenue from higher-margin Ballast Water Treatment Systems (BWTS).

What are Euro Tech's (CLWT) growth plans for Ballast Water Treatment Systems?

CLWT plans to target small and medium-sized ships for BWTS retrofit, expand into mobile port BWT systems, and conduct direct marketing with shipowners through technical seminars in high-growth shipping regions outside China.

What is Euro Tech's (CLWT) financial position as of December 31, 2024?

CLWT reported $5.8M in cash and cash equivalents, total assets of $20.7M, and shareholders' equity of $15.7M, with reduced total liabilities of $4.01M compared to 2023.