FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
For the month of September 2002
Euro Tech Holdings Company Limited
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(Translation of registrant's name into English)
18/F Gee Chang Hong Centre, 65 Wong Chuk Hang Road, Hong Kong
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(Address of Principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.
Form 20-F [ X ] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes [ ] No [ X ]
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12G3-2(b):82-______________.
Euro Tech Holdings Company Limited
Form 6-K
Page 2 of 6
Item 5. Other Events
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On September 16, 2002, the Registrant issued a press release
reporting on certain of its financial results for the first six
months, ending on June 30, 2002, of its fiscal year to end December
31, 2002, a copy of which is attached hereto as an exhibit to this
Report on Form 6-K and is incorporated by reference.
Exhibit
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Registrant's press release dated September 16, 2002.
Euro Tech Holdings Company Limited
Form 6-K
Page 3 of 6
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
EURO TECH HOLDINGS COMPANY LIMITED
(Registrant)
Dated: September 23, 2002 By: /s/ T. C. Leung
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T.C. Leung, Chief Executive
Officer and Chairman of the Board
EXHIBIT - EURO TECH HOLDINGS COMPANY LIMITED
FORM 6-K
SEPTEMBER 2002
PRESS RELEASE
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For Further Information:
Euro Tech Holdings Company Limited Investor Relations International
18/F Gee Chang Hong Center 15260 Ventura Boulevard
65 Wong Chuk Hong Rd. Suite 1210
Hong Kong Los Angeles, CA 91403
Contact: T.C. Leung, Chairman and Contact: Haris Tajyar
CEO, or Managing Partner
Jerry Wong, CFO (818) 981-5300
Tel: 011-852-2814-0311 htajyar@irintl.com
Fax: 011-852-2873-4887 ------------------
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FOR IMMEDIATE RELEASE
September 16, 2002
EURO TECH HOLDINGS REPORTS GAINS IN
FINANCIAL RESULTS FOR FIRST HALF OF 2002
Company Sees Another Year of Significant Growth in Sales and Net Income
HONG KONG and LOS ANGELES, CALIFORNIA - September 16, 2002 - Euro Tech
Holdings Company Limited (NasdaqSC: CLWT; Warrants: CLWTW), a leading
distributor of environmental technology in China, today reported
financial results for the first six months of 2002, ending June 30,
2002.
The Company reported that net sales for the first half totaled
approximately $9.3 million, up 11% from the approximately $8.4 million
for the same period of 2001. Net income was approximately $119,000,
or $0.04 per diluted share, up 70% from approximately $70,000, or
$0.02 per diluted share, in the first half of 2001. In the full year
2001, the Company reported net income of $584,000, or $0.18 a share,
on net sales of $19.7 million. Based on past experience, net sales
for the second half of the year are normally higher than those for the
first half (as the China customers use the budget available before end
of the year). Euro Tech has made a profit each year since it became a
publicly traded company in 1997.
The Company attributed its rise in revenue largely to continuing
improvement in the economy of the People's Republic of China. The
rise in net income was due to the combined impact of higher sales and
higher gross margins.CEO Sees Continued Growth Throughout Fiscal 2002
and Beyond
Commenting on the outlook for 2002, Euro Tech Chairman and CEO T.C Leung
said, "We are pleased that Euro Tech appears to be headed for its sixth
consecutive full fiscal year of profitability, along with rising sales,
EXHIBIT - EURO TECH HOLDINGS COMPANY LIMITED
FORM 6-K
SEPTEMBER 2002
Euro Tech Holdings Company Limited
Page 2
since it became a public company. We also see growing demand in the
near future for Euro Tech products as a result of increased regulation
of environmental and industrial pollution in the China, along with the
Chinese people's desire for cleaner water and a healthier, safer
environment."
Strong Balance Sheet with No Debt
On its balance sheet, the Company as of June 30, 2002 had cash or cash
equivalents of approximately $2,552,000 compared with approximately
$3,551,000 on December 31, 2001. Shareholders' equity on June 30,
2002 was approximately $6,330,000. Long-term debt (minus the portion
currently due) was zero. The decrease in cash from the end of fiscal
2001 was primarily due to approximately $300,000 used in the
acquisition of PACT, $150,000 toward the opening of three new shops in
Chongqing, Guangzhou and Xian, and an increase in inventories of
approximately $220,000 to support the increase in net sales and the
three new shops.
Large and Growing Market to Support Expansion Efforts
Euro Tech distributes a wide range of advanced water treatment
equipment, test kits, analyzers, laboratory gear and related supplies.
It is profiting from the rapid growth of China's environmental sector
- - businesses that sell products and services for water and sewage
treatment and to alleviate the air pollution, water pollution and
other impacts of China's rapid industrialization. According to the
publication Chinese Environmental News, the sector is growing at an
estimated annual rate of 15%, with the annual value of production now
over US$12 billion.
Euro Tech sells into the Mainland China market through multiple
channels. It distributes products through its offices in seven major
cities, including the two largest cities in China, Beijing and
Shanghai. It also operates retail stores in Shanghai, Beijing,
Chongqing and Guangzhou, and has recently opened one more in Xian..
Product lists and prices are available online at www.euro-tech.com.
The Company also operates a bilingual B2B site,
http://www.chinah2o.com, which now boasts more than 1,500 registered
users.
The Company sells its testing, filtering and other technology mainly
to water purification and waste water treatment plants, both
commercial and government owned. As a distributor, it sells products
from major U.S. and European manufacturers such as USFilter (Wallace &
Tiernan), Rheonik Messgerate GmbH, Hioki, Stanford Research Systems,
ThermoFinnigan, Hach and Lachat.
Euro Tech is also involved in manufacturing and process engineering.
Through its Shanghai Euro Tech Ltd. unit, it makes and sells the IPOA-
2001 Infrared Photometric Oil Analyzer, for measuring the level of
petroleum or animal and vegetable oils in water. It also makes two
types of specialized reagents. Customers include major multinational
firms such as Wyeth-Whitehall Pharmaceutical, large urban commercial
developments such as the Shanghai Jinmao Building, municipal water
plants, sewage treatment facilities and petro-chemical plants.
In January of this year, Euro Tech bolstered its process engineering
business with the partial acquisition of Yixing Pact Environmental
Technology Ltd and Pact Asia Pacific Ltd (PACT), acquiring a 30% equity
interest in PACT for approximately US$288,000. Its expanding engineering
department now runs small- to medium-scale industrial water, wastewater
and power plant projects with PACT, which provides wastewater treatment
EXHIBIT - EURO TECH HOLDINGS COMPANY LIMITED
FORM 6-K
SEPTEMBER 2002
Euro Tech Holdings Company Limited
Page 3
for semiconductor manufacturing plants, PCB manufacturers, pharmaceutical
firms, petrochemical plants, car and car-part manufacturers in Shanghai,
Jiangsu, Beijing, Fujian and Zhejiang.
To be added to Euro Tech's investor fax and/or e-mail lists, please
contact Haris Tajyar at htajyar@irintl.com.
About Euro Tech Holdings
Euro Tech Holdings is a leading distributor of a wide range of
advanced water treatment equipment, test kits, analyzers, laboratory
gear and related supplies in China. The Company has made a profit
each year since it became a publicly-traded Company in 1997 and is
expected to continue and expand on that trend going forward. For more
information on the Company, please visit www.euro-tech.com.
This document includes statements that may constitute forward-looking
statements made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Euro Tech would like to
caution readers regarding certain forward-looking statements in this
document and in all of its communications to shareholders and others,
press releases, securities filings, and all other documents and
communications. Statements that are based on management projections,
estimates and assumptions are forward-looking statements. The words
"believe," "expect," "anticipate," "intend," "will," "should," "may,"
and similar expressions generally identify forward-looking statements.
While Euro Tech believes in the veracity of all statements made
herein, forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by Euro
Tech, are inherently subject to significant business, economic and
competitive uncertainties and contingencies and known and unknown
risks. Many of the uncertainties and contingencies can affect events
and Euro Tech's actual results and could cause its actual results to
differ materially from those expressed in any forward-looking
statements made by, or on behalf of, Euro Tech. Some of the factors
that could cause actual results or future events to differ materially
include Euro Tech having offices and operations situated in Hong Kong
and China, competing with less expensive locally manufactured
products, competing with its own suppliers, the lack of long term
written agreements with suppliers and customers, the development of
new products, entering new markets, availability of qualified
personnel, ongoing development of marketing efforts, the timely
development of resources, inability to find suitable facilities and
personnel to open or maintain new retail shop locations, interruptions
or loss of sources of supply, the cost, pricing of and demand for
distributed products, inability to collect outstanding accounts
receivable when due or within a reasonable period of time thereafter,
the actions of competitors with greater financial resources, economic
and market factors, and other factors. Please see the "Risk Factors"
in Euro Tech's filings (including its Forms 20-F) with the Securities
and Exchange Commission for a description of some, but not all, risks,
uncertainties and contingencies.
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