Euro Tech Provides Update on Status under Holding Foreign Companies Accountable Act

Rhea-AI Summary

Euro Tech Holdings Company Limited (Nasdaq: CLWT) announced on May 27, 2022, an update on its status under the Holding Foreign Companies Accountable Act (HFCAA). The SEC provisionally identified Euro Tech as a Commission-Identified Issuer on May 20, 2022, due to the inability of the PCAOB to fully inspect its registered public accounting firm's working papers for the fiscal year ended December 31, 2021. If this status continues for three consecutive years, the company risks delisting from Nasdaq. Euro Tech emphasizes its commitment to compliance and maintaining its listing status.

Positive

• The company is actively monitoring market developments and exploring solutions to comply with HFCAA requirements.
• Euro Tech remains committed to complying with applicable laws and regulations in both China and the United States.

Negative

• The SEC's identification under HFCAA raises concerns about potential delisting from Nasdaq.
• The company's inability to provide fully inspectable audit papers could adversely affect investor confidence.

HONG KONG, May 27, 2022 /PRNewswire/ -- Euro Tech Holdings Company Limited (Nasdaq: CLWT) ("Euro Tech" or the "Company") today provides an update on its status under the Holding Foreign Companies Accountable Act (the "HFCAA").

The Company is aware that it has been provisionally identified by the United States Securities and Exchange Commission (the "SEC") under the HFCAA as a Commission-Identified Issuer on May 20, 2022, following the Company's filing of its annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on May 16, 2022.

The Company understands the SEC made such identification pursuant to the HFCAA and its implementation rules issued thereunder, and this indicates that the SEC determines that the Company has retained a registered public accounting firm whose working paper cannot be inspected or investigated completely by the Public Company Accounting Oversight Board of the United States (the "PCAOB") to issue the audit opinion for its financial statements for the fiscal year ended December 31, 2021.

In accordance with the HFCAA, the securities of a company will be delisted from a U.S. stock exchange if such company has been identified by the SEC for three consecutive years due to PCAOB's inability to inspect or investigate the registered public accounting firm's working paper completely.

The Company will continue to monitor market developments and explore possible solutions. The Company will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on Nasdaq.

About Euro Tech Holdings Company Limited

Euro Tech is a premium distributor and manufacturer of high-quality technology instruments as well as an environmental engineering services provider. To meet the environmental needs of the China market, Euro Tech is focusing on the environmental protection for air, water and energy, for which the company can supply monitoring instruments, analytical instruments and testing equipment. Euro Tech's primary goal is to provide high-quality yet competitively priced instruments and engineering services to the Chinese marketplace. More information on the Company can be found at http://www.euro-tech.com/en/default.asp

Forward Looking Statements

This press release contains forward-looking statements that are made under the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management's beliefs and assumptions and on information currently available to the Company's management. Forward-looking statements include statements regarding the Company's ability to file its Annual Report for the year ended December 31, 2021. The Company's actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those described in more detail in the Company's most recent Annual Report on Form 20-F and other documents on file with the Securities and Exchange Commission, each of which can be found on the SEC's website, www.sec.gov. Except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

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SOURCE EURO TECH HOLDINGS COMPANY LIMITED

FAQ

What is the current status of Euro Tech under the Holding Foreign Companies Accountable Act?

Euro Tech has been provisionally identified by the SEC as a Commission-Identified Issuer under the HFCAA, which may lead to delisting if not resolved.

How does Euro Tech plan to address its HFCAA status?

Euro Tech is monitoring market developments and exploring possible solutions while ensuring compliance with relevant regulations.

What happens if Euro Tech is identified under the HFCAA for three consecutive years?

If identified for three consecutive years, Euro Tech's securities could be delisted from U.S. stock exchanges.

When did Euro Tech file its annual report that triggered the HFCAA identification?

Euro Tech filed its annual report on Form 20-F for the fiscal year ended December 31, 2021, on May 16, 2022.