Euro Tech Holdings Company Limited Reports Interim Results for the Six Months Ended June 30, 2012

Euro Tech Holdings Company Limited Reports Interim Results for the Six Months
                             Ended June 30, 2012

PR Newswire

HONG KONG, Dec. 27, 2012

HONG KONG, Dec. 27, 2012 /PRNewswire/ --Euro Tech Holdings Company Limited
(Nasdaq: CLWT) today reported its unaudited financial results for the six
months ended June 30, 2012.

The Company's revenues for the six months ended June 30, 2012 ("1H 2012") were
approximately US$8,963,000, a 6.2% decrease as compared to approximately
US$9,554,000 for the six months ended June 30, 2011 ("1H 2011"). This drop was
primarily attributable to the unfavorable economic conditions caused by the
ongoing European debt crisis and slowdown in China's economic growth.

Gross profits increased by 11.4% to approximately US$2,648,000 for 1H 2012 as
compared to approximately US$2,378,000 for 1H 2011 even though the total
revenues dropped. The increase was mainly contributed by the improvement in
pricing and cost control.

Selling and administrative expenses were approximately US$2,813,000 for 1H
2012 as compared to approximately US$2,794,000 (which was after offsetting
gain on disposal of a property of approximately US$328,000) for 1H 2011.
Hence, the recurring selling and administrative expenses for 1H 2012 decreased
by approximately US$309,000 as compared to 1H 2011. The decrease was primarily
due to reduction of operating expenses, despite the increase of development
costs of approximately US$200,000 for Ballast Water Treatment Systems
("BWTS").

The net loss for 1H 2012 was approximately US$120,000, as compared to net
income of approximately US$12,000 for 1H 2011. If the overheads spent in
developing the BWTS were excluded, there would be a small net income for 1H
2012. The net income for 1H 2011 was primarily contributed by the
non-recurrent gain on disposal of a property.

The Company expects its businessto rebound in 2013 especially in the second
half of 2013 when its BWTS are available for sales and shipments. For the past
two and half years, the Company has been investing a lot of resources in
developing its BWTS for the global market amid the worldwide economy slowdown
and the hardship of continuous shrinkage of its distribution business of third
party products. The Company expects the new BWTS businessto not only offset
its shrinking distribution business but also earn significant incomes for
coming years.

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 ships when
their ballast water tanks are emptied or refilled. The market potential for
retrofits and new installations of BWTS in these old and new ocean-going ships
is enormous.

After passing the land base test, the Company has recently started marketing
its BWTS while it is getting all other approvals before mid 2013. So far a few
shipping companies have shown great interest in its systems for their new
ships which are being built in China. The price for each basic system is
around US$100,000. As each existing or new built ocean going ship needs one or
more or bigger systems according to the size of the ship, the Company is very
pleased and positive about the big business potential both inside and outside
of China.

The Company will focus more on wastewater engineering projects outside of
China as there are keener competitions from local contractors in China. On the
other hand, outside of China, the Company remains competitive and cooperates
successfully with large international engineering firms to win contracts.

The Company is continuously streamlining and restructuring its operations to
cope with these two businesses.

According to the latest list of potential initial public offering candidates
for the Growth Enterprise Market in China, Blue Sky's application is still
under review.

About Blue Sky

Zhejiang Tianlan Environmental Protection Technology Co. Ltd., ("Blue Sky"),
found in 2000, is a fast growing company which provides a comprehensive
service for design, general contract, equipment manufacturing, installation,
testing and operation management of the treatment of waste gases emitted from
various boilers and industrial furnaces of power plants, steel works and
chemical plants.

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, 2011.



EURO TECH HOLDINGS COMPANY LIMITED
CONSOLIDATED BALANCE SHEETS
                                                   As of
                                                                  As of
                                                   June 30,       December 31,
                                                                  2011
                                                   2012
                                                                  (Audited)
                                                   (Unaudited)
                                                    US$'000    US$'000
Assets
Current assets:
Cash and cash equivalents                          6,029          5,339
Restricted cash                                    888            246
Accounts receivable, net                           2,752          3,744
Prepayments and other current assets               2,683          1,773
Inventories                                        655            583
Total current assets                               13,007         11,685
Property, plant and equipment, net                 994            1,058
Investments in affiliates                          9,982          9,763
Goodwill                                           1,071          1,071
Deferred tax assets                                291            287
Total assets                                       25,345         23,864
Liabilities and shareholders' equity
Current liabilities:
Accounts payable                                   2,672          2,875
Other payables and accrued expenses                4,299          2,658
Taxation payable                                   512            422
Total current liabilities                          7,483          5,955
Commitments and contingencies                      -              -


Shareholders' equity:
Ordinary share, 20,000,000 (As of December 31,
2011:
 20,000,000) shares authorized; 2,229,628         123            123
 (As of December 31, 2011: 2,229,628) shares
 issued and outstanding
Additional paid-in capital                         9,532          9,533
Treasury stock, 160,386 (As of December 31,        (765)          (733)
 2011: 151,747) shares at cost
PRC statutory reserve                              274            274
Accumulated other comprehensive income             718            731
Retained earnings                                  6,251          6,371
Equity attributable to owners of Euro Tech         16,133         16,299
Non-controlling interest                           1,729          1,610
Total shareholders' equity                         17,862         17,909
Total liabilities and shareholders' equity         25,345         23,864

EURO TECH HOLDINGS COMPANY LIMITED
CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011
                                      2012         2011

                                      (Unaudited)  (Unaudited)
                                      US$'000      US$'000
Revenue
Trading and manufacturing             5,290        5,601
Engineering                           3,673        3,953
Total revenue                         8,963        9,554
Cost of revenue
Trading and manufacturing             (4,023)      (4,302)
Engineering                           (2,292)      (2,874)
Total cost of revenue                 (6,315)      (7,176)
Gross profit                          2,648        2,378
Selling and administrative            (2,813)      (2,794)
 expenses
Operating loss                        (165)        (416)
Interest income                       27           28
Other income, net                     16           55
Loss before income taxes and          (122)        (333)
 equity in profit of affiliates
Income taxes                          (90)         7
Equity in profit of affiliates        219          166
Net income/(loss)                     7            (160)
Less: net loss/(income)
 attributable to non-controlling     (127)        172
 interest
Net income/(loss) attributable to     (120)        12
 the Company
Net income/(loss) per ordinary share
- Basic                               US($0.058)   US$0.001
- Diluted                             US($0.058)   US$0.001
Weighted average number of
 ordinary shares outstanding
- Basic                               2,072,182    2,093,302
- Diluted                             2,079,142    2,116,034

CONTACT: Euro Tech Holdings Company Limited, Hong Kong
             T.C. Leung, Chairman and CEO, or
             Jerry Wong, CFO
             Tel: 852-2814-0311
             Fax: 852-2873-4887
             Website: http://www.euro-tech.com
             Blue Sky's website: http://www.tianlan.cn

SOURCE Euro Tech Holdings Company Limited

Website: http://www.euro-tech.com
Website: http://www.tianlan.cn