Decent Holding Inc. Announces First Half of Fiscal Year 2025 Financial Results
YANTAI, China, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Decent Holding Inc. (NASDAQ:DXST) ("Decent" or the "Company"), an established wastewater treatment services provider in China, today announced its unaudited financial results for the first half of fiscal year 2025 ended April 30, 2025.
Financial Highlights for the First Half of Fiscal Year 2025
Total revenue increased by 147.3% to approximately $5.5 million, from approximately $2.2 million in the prior-year period.
Gross profit increased by 170.5% to approximately $1.5 million, from approximately $0.6 million; gross margin improved to 27.5% from 25.1% in the prior year.
Net loss was approximately $0.5 million and $0.02 million for the six months ended April 30, 2025 and 2024, respectively.
Mr. Dingxin Sun, Chairman of Decent Holding Inc. commented: "Our first-half performance underscores the strength of our market position and the growing demand for Decent's comprehensive water quality solutions. Total revenue jumped more than 147% to $5.5 million in the first half of 2025, driven by an over 187% surge in river water quality management to $4.7 million and an above 221% rise in product sales, while wastewater treatment held steady around $0.5 million."
"Overall gross profit grew to $1.5 million, also lifting our margin to 27.5%. Looking ahead, we'll accelerate deployment of integrated treatment solutions across wider regions in China, deepen academic collaborations to develop next-generation microbial formulations and digital monitoring platforms, and leverage patented technologies to introduce higher-margin customized service packages while investing in AI-driven analytics and remote sensing to optimize execution and real-time performance tracking as we explore expansion into overseas markets."
Selected Financial Results for the First Half of Fiscal Year 2025
Total revenue
Total revenue increased by 147.3%, or approximately $3.3 million, to approximately $5.5million for the half year ended April 30, 2025, from approximately $2.2 million in the prior-year period, demonstrating the Company's resilience and adaptability in a fluctuating economic environment. Specifically:
Revenue from Wastewater Treatment Service for the six months ended April 30, 2025 rose slightly by 0.2% to $493,123 from $491,991 a year earlier. During the same period, cost of revenue jumped 19.2% to $401,310 from $336,709, reflecting higher operating expenses and increased provisioning for payment collection risks among newly onboarded customers. As a result, the gross profit margin narrowed to 18.6% in 2025, down from 31.6% in the prior period.
Revenue from River Water Quality Management climbed 187.4% to approximately $4.7 million for the six months ended April 30, 2025, compared with approximately $1.6 million in the prior year, driven by successful bid awards and accelerated project completions. Although associated costs increased in line with this expansion, improved project execution lifted the gross profit margin to 27.6%, up from 22.9% in the same period last year.
Revenue from Product Sales jumped 220.6% to $277,081 for the six months ended April 30, 2025, versus $86,433 in the prior year, as local river water quality projects fueled demand for Decent's microbial inoculum. Cost of revenue rose 173.7% to $161,511 from $59,009, broadly matching sales growth. Economies of scale and stable pricing boosted the gross profit margin to 41.7%, compared with 31.7% in the corresponding period of 2024.
Cost of Revenue
Cost of revenue rose to approximately $4.0 million for the six months ended April 30, 2025 from approximately $1.7 million in the prior-year period. This increase reflects higher sales volumes and the reclassification of maintenance guarantee expenses for wastewater treatment and river water quality management projects from selling expenses into cost of revenue.
Gross Profit and Gross Margin
Gross profit increased to approximately $1.5 million for the six months ended April 30, 2025, up from $558,657 during the same period in 2024. Gross margin expanded to 27.5% from 25.1%, driven by a larger share of revenue generated from higher-margin river water quality management projects.
Operating Expenses
Operating expenses jumped 227.8% to approximately $2.0 million for the six months ended April 30, 2025, compared with $603,133 during the same period in 2024. Specifically, selling expenses rose by $215,908, primarily due to increased marketing fees tied to revenue growth. General and administrative expenses grew by approximately $1.2 million, driven by an approximately $0.6 million provision for doubtful debts, approximately $0.4 million in consultant and service fees, and approximately $0.2 million in salary and welfare costs following internal personnel adjustments. Research and development expenses fell $46,442 as headcount reductions curtailed R&D spending.
Net loss
As a result of the cumulative effect of the factors described above, net loss for the six months ended April 30, 2025 and 2024 were $479,165 and $15,849, respectively.
Cash and equivalents
As of April 30, 2025, the Company had cash of $838,415, compared with $909,765 as of April 30, 2024.
About Decent Holding Inc.
Decent Holding Inc. specializes in the provision of wastewater treatment by cleansing the industrial wastewater, ecological river restoration and river ecosystem management by enhancing the water quality, as well as microbial products primarily used for pollutant removal and water quality enhancement, through the Company's subsidiary, Shandong Dingxin Ecology Environmental Co., Ltd. For more information, please visit: https://ir.dxshengtai.com.
Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and all other factors discussed in the "Risk Factors" section of the Company's latest Annual Report on Form 20-F filed with the SEC, available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For investor and media inquiries, please contact:
WFS Investor Relations Inc
Connie Kang, Partner
Email:
Tel: +86 1381 185 7742 (CN)
DECENT HOLDING INC. AND SUBSIDIARIESUNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS(Stated in US dollars, except for share and per share data)
As ofApril 30,2025
As ofOctober 31,2024
ASSETS
CURRENT ASSETS
Cash
$
838,415
$
407,031
Accounts receivable, net
8,381,394
8,702,303
Prepayment, net
-
7,699
Other Receivables
1,988,115
11,410
Contract assets
588,603
603,979
Due from related parties
158
40,154
Inventories
129
134
Other assets, current
1,188,375
-
Total current assets
12,985,189
9,772,710
NON-CURRENT ASSETS
Deferred IPO costs
-
967,793
Operating lease assets, net
39,366
67,934
Finance lease assets, net
35,302
43,520
Property and equipment, net
200,914
242,185
Intangible assets, net
5,788
6,088
Deferred tax asset
247,754
136,799
Total non-current assets
529,124
1,464,319
TOTAL ASSETS
$
13,514,313
$
11,237,029
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable
$
1,109,481
$
1,851,723
Due to related parties
6,877
63,222
Payroll payable
34,509
23,401
Tax payables
947,327
821,010
Other payables
3,915,440
3,353,963
Finance lease liabilities – current
9,742
21,893
Operating lease liabilities – current
6,373
6,382
Estimated warranty liabilities
36,188
64,576
Total current liabilities
6,065,937
6,206,170
NON-CURRENT LIABILITIES
