#Hong Kong #Euro Tech Holdings #BWTS #WWT

Euro Tech Holdings Company Limited's Interim Results

On December 30, 2025, Euro Tech Holdings Company Limited (Nasdaq: CLWT) released its unaudited financial report for the first half of 2025, revealing noteworthy insights amidst challenging market conditions.

The company reported revenues totaling $5,888,000 for the six-month period ending June 30, 2025, marking a 18.9% decline compared to $7,259,000 during the same period last year. This decline is primarily attributed to a significant drop in sales of U.S. products to China, impacted heavily by U.S. tariffs and subsequent countermeasures from China.

Despite the decrease in revenue, the gross profit for the period stood at $1,697,000, a slight reduction of 5.2% versus $1,790,000 in the first half of 2024. Notably, the gross profit margin saw a positive shift, increasing to 28.8%, up from 24.6%, which reflects improved cost management and pricing strategies. The general and administrative expenses also saw a reduction of $102,000, demonstrating tighter cost controls with total expenses reported at $2,065,000.

However, the company faced a net loss of $127,000 for the first half of 2025, a stark contrast to the net income of $44,000 in the previous year, predominantly reflecting the earnings drop and a decline in affiliated income.

CEO's Insights and Future Strategies

David Leung, CEO of Euro Tech, provided an optimistic perspective on the company's future trajectory. "Despite the unfavorable business landscape, we've recorded a remarkable rise in sales orders, achieving double-digit growth in the first half of 2025. This surge can largely be credited to increased engineering activities in the water and wastewater treatment (WWT) sector, although delivery timelines may extend until the end of this year or early next year," Leung stated.

Furthermore, the company has secured new purchase orders from international markets such as Mongolia, Norway, and Dubai, aimed at enhancing their WWT and ballast water treatment systems (BWTS) offerings. Leung emphasized the intention to diversify sales channels and explore new product applications within high-growth sectors to capitalize on current market dynamics.

The Importance of BWTS

The BWTS plays a crucial role in global maritime operations due to the requirement set by The International Maritime Organization (IMO) to control biological imbalances caused by the discharge of ballast water. The U.S. ballast water discharge standards implemented in 2012, along with the IMO's convention that came into effect for newly-built vessels in September 2017, underline the necessity for compliance among global shipping actors.

In 2016, Euro Tech obtained the type approval certificate from China's Classification Society for its BWTS systems with varying capacities, and the company remains compliant with the revised G8 requirements established by the IMO for installations after October 28, 2020.

Financial Position

Examining the financial health of the company, as of June 30, 2025, total assets are held at $19,799,000, slightly down from $20,708,000 at the end of 2024. Current liabilities have decreased to $3,330,000, while shareholders’ equity reflects a detailed account of its ordinary shares and accumulated reserves.

Euro Tech Holdings is positioned to navigate the complex market landscape with resilience, as evidenced by its proactive steps to secure growth in international markets and enhance its product offerings. While challenges remain, the company's focus on high-potential sectors like WWT and BWTS could pave the way for recovery and growth in the upcoming quarters.