SHENZHEN, China, Dec. 23, 2025 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holdings Limited (Nasdaq: CDTG) ("CDT", the "Company", or "we"), a leading provider of waste treatment systems and services throughout China, today reports its unaudited interim financial results for the six months ended June 30, 2025, and provides updates on key business developments.
All amounts are expressed in US dollars unless otherwise stated.
2025 Unaudited Interim Financial Results and Business Update
-- Revenues decreased by approximately $5.4 million, or 42.3%, to
approximately $7.3 million for the six months ended June 30, 2025, from
approximately $12.7 million for the same period in 2024. The decline was
driven by three factors:(i) reduced external demand for the Company's
traditional environmental engineering services amid the PRC economic
slowdown; and(ii) the Company's deliberate strategic shift to scale back
on legacy projects with excessively long receivable cycles, reallocating
resources toward its new green hydrogen and organic waste-to-energy
initiatives.(iii) decrease in the number and timing of project revenue
recognitions, as six project contracts contributed revenue during the
comparable prior-year period, whereas only four projects contributed
revenue during the current period, with certain remaining projects not
yet meeting revenue recognition criteria. Among the four projects
recognized in the current period, except for the Guankou project phase 6,
the other three projects had reached over 95% completion and were in
their final stages, resulting in limited incremental revenue recognized
during the period.
-- Gross profit decreased by approximately $1.6 million, or 35.1%, to
approximately $2.9 million for the six months ended June 30, 2025 from
approximately $4.5 million for the six months ended June 30, 2024. The
decrease in gross profit is primarily due to a decrease in sewage
treatment systems revenue. For the six months ended June 30, 2025 and
2024, our overall gross profit percentage was 39.9% and 35.5%,
respectively. The increase in gross profit percentage of 4.4% was
primarily due to the following:(i) The approximately 4.8% increase in the
gross profit margin of sewage treatment systems was primarily
attributable to the Company's engagement in a new project that generated
approximately $3.1 million in revenue with a relatively higher gross
profit margin of 40.3%.(ii) This increase was partially offset by a 4.7%
decrease in the gross profit margin of sewage treatment services and
other revenue, primarily due to higher labor and material costs.
-- Total operating expenses increased by approximately $1.4 million, or
51.9%, to approximately $4.1 million for the six months ended June 30,
2025, from approximately $2.7 million for the same period in 2024.
-- The Company reported a net loss of approximately $1.3 million, or $0.11
per share, for the six months ended June 30, 2025, compared to net income
of $1.4 million, or $0.14 per share, for the same period in 2024. The
swing from profit to loss was primarily due to:(i) lower revenue from
reduced project activity amid weakened market demand; and(ii) the
recognition of $2.1 million in non-cash stock-based compensation expense
related to the Company's 2025 Equity Incentive Plan, under which shares
were granted to key employees and advisors and accounted for as
compensation in accordance with ASC 718.
Business Update
As of June 30, 2025, the Company had three projects in backlog:
-- the Sichuan Anya Project, -- the Xinjiang Project, and -- Phase VI of the Guankou Project.
Both the Sichuan Anya and Xinjiang Projects were signed and commenced in August 2024. Phase VI of the Guankou Project is a supplemental agreement to the existing Guankou Project, which was signed and commenced in April 2024, and represents an incremental scope under the original contract--it does not constitute a new, standalone project. The combined tentative contract value of these three projects is approximately $19.6 million.
Green Hydrogen Initiative
-- Strategic move into green hydrogen: As announced on November 20, 2025,
the Company initiated a new growth opportunity with its shift to become a
provider of urban and rural organic waste resource utilization solutions
and clean energy.
-- Technology and partnerships: The Company's plan is to utilize
high-temperature gasification technology to convert organic waste into
syngas, which can then be purified to produce hydrogen. In May 2025, the
Company appointed a senior expert from the Guangzhou Institute of Energy
Conversion, Chinese Academy of Sciences, as Chief Scientist for the
Company's new energy initiative, establishing a technical collaboration
with the Guangzhou Institute of Energy Conversion, Chinese Academy of
Sciences.
-- Addressing market demand: The initiative aims to capitalize on the
significant demand for organic waste treatment in China and the rapidly
growing hydrogen energy market.
-- Diversified revenue streams: The Company's new "EPC engineering +
long-term operation" business model includes revenue from waste treatment
fees as well as expected future sales of energy products like green
hydrogen, clean industrial steam, and grid-connected electricity.
Li Yunwu, CEO of CDT, said "Our first half 2025 performance was challenging as we continued to experience economic headwinds in the PRC market that have impacted new infrastructure projects and delayed some that are in the pipeline. Despite these challenges and the resulting volume pressure, we achieved 250 basis points of gross profit margin expansion compared to the same period last year through the restructuring initiatives we undertook in 2024 and other cost-saving measures. As economic conditions in China stabilize, we believe we remain well positioned to capitalize on opportunities associated with favorable, long-term secular trends including water conservation, safety and regulation.
Mr. Li added, "Even as we face an unpredictable operating environment in the near-term with soft end market demand, we are taking proactive and strategically targeted steps to leverage our core operational capabilities through technological innovation and partnerships. Our recently announced strategic initiative to support the growth of the hydrogen economy is an integral part of our planned transformation and broader strategy to participate in new energy by commercializing operations of organic solid waste-to-hydrogen production facilities in China. We believe our collaborations with leading scientific organizations and government regulatory bodies have created a foundation for the Company to accelerate the transition to a hydrogen economy. We expect to report several milestones related to our green hydrogen initiative including advancements in the Company's hydrogen enabling technologies, as well as progress in executing several customers' hydrogen projects and new partnerships in the sector.
We believe the actions we have taken to streamline our operations, along with our planned long-term investments in our new energy growth initiatives, are expected to deliver value to customers and improve returns for shareholders."
About CDT Environmental Technology Investment Holdings Limited
CDT, headquartered in Shenzhen, China, is a leading national player in China's waste treatment sector that designs, develops, manufactures, sells, installs, operates and maintains sewage treatment systems and provides sewage treatment services in China, and is dedicated to promoting sustainable development through innovative solutions. Founded by pioneers in waste treatment, CDT aims to advance next-generation technologies that directly address environmental challenges and promote sustainable solutions. CDT is a recognized brand in China and is committed to innovation and customer satisfaction.
CDT's mission is to help its customers achieve their critical infrastructure objectives while enabling positive changes in technological environmental protection. It collaborates with industry leaders, environmental experts, and stakeholders to develop and implement advanced waste treatment solutions. Recently listed on the Nasdaq Capital Market, CDT is a prominent player in the waste treatment market, capable of providing comprehensive solutions to diverse customer needs, and has completed more than 150 plants across China.
For more information, please visit CDT's website at https://www.cdthb.cn.
Forward Looking Statements
This press release contains forward-looking statements that are based on the beliefs and assumptions of the management of CDT and on information currently available to such management. These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond CDT's control. When the Company uses words such as "may," "should, " "will," "future," "expect," "anticipate," "project," "estimate," "believe," and "intend," or similar expressions that do not relate solely to historical matters, it is intended to identify forward-looking statements. All statements, other than statements of historical fact, contained in this press release, including statements regarding future events, future financial performance, business strategy and plans, and objectives of CDT for future operations, are forward-looking statements. Although CDT does not make forward-looking statements unless it believes it has a reasonable basis for doing so, CDT cannot guarantee their accuracy. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause the actual results, levels of activity,
performance or achievements of CDT and its markets to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. For these reasons, among others, investors should not place undue reliance on any forward-looking statement. CDT undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that arise after the date hereof, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
For more information, please contact:
Investor and Media Contact
United States
PCG Advisory
Kevin McGrath
Tel: +1-646-418-7002
Email: kevin@pcgadvisory.com
CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED
AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2025 2024
ASSETS
CURRENT ASSETS
Cash $ 175,877 $ 124,379
Accounts receivable, net 65,238,735 45,188,231
Other receivables, net 239,560 424,313
Other receivables - related parties 135,920 123,532
Contract assets 31,126,553 31,438,860
Prepayments and other current
assets, net 488,969 405,136
Total current assets 97,405,614 77,704,451
OTHER ASSETS
Property and equipment, net 1,182,693 1,291,322
Intangible assets, net 715 5,628
Deferred tax assets, net 1,305,492 1,208,689
Contract assets, noncurrent 8,525,057 8,550,498
Escrow 600,000 600,000
Total other assets 11,613,957 11,656,137
Total assets $109,019,571 $89,360,588
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 40,192,963 $36,347,893
Short-term loans - banks 1,321,665 1,814,551
Short-term loans - third parties 840,388 836,765
Short-term loans - related parties 3,183,506 2,794,894
Other payables and accrued
liabilities 2,948,482 2,220,896
Other payables - related party 254,173 256,863
Contract liabilities 13,691,295 28,026
Taxes payable 7,878,159 7,408,674
Total current liabilities 70,310,631 51,708,562
OTHER LIABILITIES
Long-term loan - bank 279,384 213,969
Total other liabilities 279,384 213,969
Total liabilities 70,590,015 51,922,531
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Ordinary shares, $0.0025 par value,
20,000,000 shares authorized,
10,825,000 and 9,200,000 shares issued
and outstanding as of December 31,
2024 and 2023, respectively 30,813 27,063
Additional paid-in capital 13,719,883 11,578,633
Statutory reserves 3,667,369 3,433,589
Retained earnings 22,959,457 24,455,403
Accumulated other comprehensive loss (2,089,346) (2,210,909)
Total CDT Environmental Technology
Investment Holdings Limited
shareholders' equity 38,288,176 37,283,779
Noncontrolling interests 141,380 154,278
Total shareholders' equity 38,429,556 37,438,057
Total liabilities and
shareholders' equity $109,019,571 $89,360,588
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements.
CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED
AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
For the Six Months Ended
----------------------------
June 30,
----------------------------
2025 2024
------------ --------------
REVENUES
Sewage treatment systems $ 6,762,644 $12,066,255
Sewage treatment services and others 556,579 620,453
---------- ----------
Total revenues 7,319,223 12,686,708
---------- ----------
COST OF REVENUES
Sewage treatment systems 4,088,886 7,869,468
Sewage treatment services and others 308,864 315,405
---------- ----------
Total cost of revenues 4,397,750 8,184,873
---------- ----------
GROSS PROFIT 2,921,473 4,501,835
---------- ----------
OPERATING EXPENSES:
Selling 102,096 25,725
General and administrative 1,191,360 1,361,481
Research and development 31,918 34,706
Stock-based compensation 2,145,000 454,250
Provision for (Recovery from) credit
loss, net 588,484 795,757
---------- ----------
Total operating expenses 4,058,858 2,671,919
---------- ----------
INCOME FROM OPERATIONS (1,137,385) 1,829,916
---------- ----------
OTHER INCOME (EXPENSE)
Interest income (6,814) 138
Interest expense (39,200) (69,446)
Other (expense) income, net 89,556 58,212
---------- ----------
Total other (expense) income, net 43,542 (11,096)
---------- ----------
INCOME BEFORE INCOME TAXES (1,093,843) 1,818,820
INCOME TAXES EXPENSE 214,668 401,401
---------- ----------
NET (LOSS) INCOME (1,308,511) 1,417,419
Less: net loss attributable to
noncontrolling interest (46,345) (51,609)
---------- ----------
NET (LOSS) INCOME ATTRIBUTABLE TO
CDT ENVIRONMENTAL TECHNOLOGY
INVESTMENT HOLDINGS LIMITED $(1,262,166) $ 1,469,028
========== ==========
NET(LOSS) INCOME (1,308,511) 1,417,419
FOREIGN CURRENCY TRANSLATION ADJUSTMENT 122,198 (249,654)
---------- ----------
TOTAL COMPREHENSIVE (LOSS) INCOME (1,186,313) 1,167,765
Less: Comprehensive loss attributable to
noncontrolling interest (45,710) (54,451)
---------- ----------
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE
TO
CDT ENVIRONMENTAL TECHNOLOGY
INVESTMENT HOLDINGS LIMITED $(1,140,603) $ 1,222,216
========== ==========
WEIGHTED AVERAGE NUMBER OF ORDINARY
SHARES
Basic and diluted 11,910,635 9,810,714
========== ==========
EARNINGS PER SHARE
Basic and diluted $ (0.11) $ 0.15
========== ==========
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements.
(END) Dow Jones Newswires
December 23, 2025 09:03 ET (14:03 GMT)
Comments