The Company had net income of US$157,000 in Fiscal 2025, as compared to US$734,000 for the fiscal year ended December 31, 2024 ("Fiscal 2024"). The decrease was primarily attributable to a decline in revenue from trading activities and a correspondingreduction in gross profit margin during the period.
The Company's revenues for Fiscal 2025 were US$13,265,000, a 13.8% decrease compared to US$15,383,000 for Fiscal 2024. The decrease in revenue was primarily attributable to decrease in revenue from trading activities, particularly lowered sales of US products to China following US tariffs and Chinese retaliatory measures.
Gross profits decreased by 17.5% to US$3,674,000 for Fiscal 2025 as compared to US$4,454,000 for Fiscal 2024. The decrease was principally due to decrease in revenue.
Selling and administrative expenses slightly decreased by 3.9% to US$3,907,000 for Fiscal 2025 as compared to US$4,067,000 for Fiscal 2024 because of controls over expenses.
Mr. David Leung, CEO of the company commented,
"Building on the momentum from the delayed completion of sales orders, we secured and consolidated a positive result with lesser net income in Fiscal 2025. Notwithstanding the U.S. tariff issue, our sales orders for the trading business maintained results comparable to those of 2024 still. This is somehow caused a substantial drop in revenue and net income. However, in engineering, we are delighted that we anticipated double-digit growth in sales orders for Fiscal 2025, which has compensated for the drop in sales order for US products sold to China.
Looking to 2026, we expect to generate further business growth in industrial wastewater engineering from one of the key high-growth markets based on our current sales leads, such as pharmaceuticals, energy, mining, and data centers. Seeking new local partners to secure long-term after-sales support is essential, such as the EU and ASEAN countries. Meanwhile, the retrofit BWTS market for ships is maturing worldwide, and we are going to focus on new ships market as well as port BWT solutions at multiple locations will create new demand, as shipowners may still encounter water discharge issues to the ocean due to system defects or challenging water quality zones. Thus, IMO and local environmental policies enforced by authorities, particularly in countries with higher environmental standards, such as those in Europe, will mandate regulations. Recruiting local partners there to expand our reach and enhance services will be our priority for long-term growth, given that we have gained extensive know-how and experience from our domestic port market."
About BWTS
BWTS are an imminent requirement by The International Maritime Organization ...
