YANTAI, China, March 04, 2026 (GLOBE NEWSWIRE) -- Decent Holding Inc. (Nasdaq: DXST) ("Decent" or the "Company"), an established wastewater treatment services provider in China, today announced its financial results for the fiscal year ended October 31, 2025.
Fiscal Year 2025 Financial Highlights
-- Total revenue for fiscal year 2025 increased by 12.2% to US$12.9 million,
from US$11.5 million for fiscal year 2024. Revenue from wastewater
treatment service increased by 68.7% to US$4.2 million from US$2.5
million in the prior fiscal year, primarily due to the completion of a
wastewater treatment project during fiscal year 2025.
-- Gross profit for fiscal year 2025 grew by 5.42% to $3.4 million, even
though the gross profit margin declined to 26.1% from 27.8% in the prior
year.
Mr. Dingxin Sun, Chairman of the Company, commented: "Fiscal year 2025 marked a period of significant top-line expansion for the Company, demonstrating our resilience and adaptability in a fluctuating economic environment. Total revenue grew by 12.2%, driven largely by the successful execution of major wastewater treatment projects, which surged by nearly 69% year-over-year. While our core River Water Quality Management and Product Sales segments experienced slight contractions due to shifting customer procurement cycles, the robust demand for our wastewater services successfully offset these declines. This performance validates our diversified service strategy, even as the revenue mix shifted toward these service-heavy projects."
"Despite the strong revenue growth, the Company faced pressure on its profitability due to this shift in revenue mix combined with substantial strategic and operational investments. Gross profit margin moderated to 26.2%, primarily because the high-growth wastewater segment carries lower gross profit margins compared to our product sales, which conversely saw margin improvement to 39.1%. More significantly, the swing to a net loss of $0.32 million was driven by a sharp increase in operating expenses. This rise was largely attributable to prudent financial measures, including a $0.9 million increase in provisions for credit losses, alongside higher spending on consulting services and R&D intended to bolster our long-term capabilities."
"Looking ahead, management is focused on further optimizing the Company's cost structure and improving operating efficiency while sustaining our revenue momentum. We intend to leverage the increased R&D investments made during the past fiscal year to enhance operational efficiencies and improve margins within our lower-margin service segments. By continuing to expand its project pipeline while maintaining disciplined control over administrative costs and credit risk management, management believes that the Company is well-positioned to strengthen profitability and enhance long-term shareholder value."
Selected Financial Results
Total revenue
Total revenue increased by 12.2%, or $1.4 million, to $12.9 million for the fiscal year ended October 31, 2025, compared with $11.5 million for the fiscal year ended October 31, 2024, demonstrating the Company's resilience, adaptability and maintaining profitability in a fluctuating economic environment. Specifically:
-- Revenue from Wastewater Treatment Service for the fiscal year ended
October 31, 2025 rose to $4.2 million from $2.5 million for the fiscal
year ended October 31, 2024, reflecting a 68.7% increase as the Company
successfully completed a wastewater treatment project in the current
fiscal year. Cost of revenue for wastewater treatment service was $3.3
million in fiscal year 2025, an 81.1% increase from 2024. As a result,
the gross profit margin was 19.7% and 25.2% for the fiscal years ended
October 31, 2025 and 2024, respectively.
-- Revenue from River Water Quality Management for the fiscal year ended
October 31, 2025 slightly declined to $6.6 million, a 3.6% decrease from
$6.9 million in fiscal year 2024.
-- Revenue from Product Sales for the fiscal year ended October 31, 2025
also slightly declined by 4.6% to $2.1 million, down from $2.2 million in
fiscal year 2024. Some of the Company's regular customers' procurement
demand dropped off due to the reduction of their river water quality
management projects, so there was a slight drop on the product sales
revenues. Gross profit for product sales for the fiscal year ended
October 31, 2025 increased by 4.4% from the prior year, and gross profit
margin was 39.1% and 35.8% for the fiscal years ended October 31, 2025
and 2024, respectively.
-- Other Related Revenues increased by 344.4% to $74,218 for the fiscal year
ended October 31, 2025, from $16,700 for the prior year. Gross profit
margin was 6.46% for the fiscal year ended October 31, 2025.
Cost of Revenue
Total cost of revenue for the fiscal years ended October 31, 2025, and 2024, was $9.6 million and $8.3 million, respectively. The increase in cost of revenues is a direct result of the Company's increase of revenues.
Gross Profit and Margin
Gross profit for the year ended October 31, 2025, was $3.4 million, remaining relatively stable compared with fiscal year 2024. Gross margin declined to 26.2% in fiscal year 2025 from 27.8% in fiscal year 2024, primarily due to a greater proportion of revenue coming from lower-margin wastewater treatment and river water quality management projects.
Operating Expenses
Total operating expenses increased $2.8 million, or 375.4% to $3.5 million for the year ended October 31, 2025. Higher revenues drove a $0.4 million increase in selling expenses, while general and administrative costs grew by $2.1 million, mainly from a $0.9 million rise in the provision for credit losses, $0.3 million higher salary and welfare costs, and $0.9 million more in consultant and service fees. Research and development spending increased by $0.3 million, primarily for engagements with external research institutions.
Net income (loss)
As a result of the factors described above, net loss for the fiscal years ended October 31, 2025 was $322,202, compared to net income of $2.1 million for the fiscal year 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: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 $(CN)$
DECENT HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Stated in US dollars, except for share and per share
data)
As of As of
October 31, October 31,
2025 2024
-------------- --------------
ASSETS
-----------------------------------
CURRENT ASSETS
Cash $ 572,807 $ 407,031
Accounts receivable, net 12,382,623 8,702,303
Prepayment, net -- 7,699
Prepaid expenses, current 1,963,359 --
Other receivables 5,073 11,410
Contract assets 1,158,370 603,979
Due from related parties 490 40,154
Inventories 128 134
Interest receivable 10,500 --
---------- ----------
Total current assets 16,093,350 9,772,710
---------- ----------
NON-CURRENT ASSETS
Deferred offering costs 19,884 967,793
Prepaid expenses, non-current 105,000 --
Loan receivable 350,000 --
Operating lease assets, net 154,556 67,934
Finance lease assets, net -- 43,520
Property and equipment, net 201,539 242,185
Intangible assets, net 5,738 6,088
Deferred tax asset 248,908 136,799
---------- ----------
Total non-current assets 1,085,625 1,464,319
---------- ----------
TOTAL ASSETS $ 17,178,975 $ 11,237,029
========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
-----------------------------------
CURRENT LIABILITIES
Accounts payable $ 3,175,565 $ 1,851,723
Advance from Customers 246 --
Due to related parties -- 63,222
Payroll payable 15,009 23,401
Tax payables 1,138,911 821,010
Other payables 5,005,375 3,353,963
Finance lease liabilities --
current -- 21,893
Operating lease liabilities --
current 52,217 6,382
Estimated warranty liabilities 9,650 64,576
---------- ----------
Total current liabilities 9,396,973 6,206,170
---------- ----------
NON-CURRENT LIABILITIES
Operating lease liabilities --
non-current 54,331 13,550
---------- ----------
Total non-current liabilities 54,331 13,550
---------- ----------
TOTAL LIABILITIES 9,451,304 6,219,720
---------- ----------
SHAREHOLDERS' EQUITY
Class A Ordinary shares
(US$0.0001 par value,
495,000,000 shares
authorized, 11,250,000 and
10,000,000 shares issued and
outstanding as of October 31,
2025 and 2024, respectively) 1,125 1,000
Class B Ordinary shares
(US$0.0001 par value,
5,000,000 shares authorized,
5,000,000 shares issued and
outstanding as of October 31,
2025 and 2024, respectively) 500 500
Subscription receivable (1,500) (1,500)
Additional paid-in capital 4,222,882 1,210,094
Statutory reserve 512,732 402,621
Retained earnings 3,118,706 3,551,019
Accumulated other
comprehensive loss (126,774) (146,425)
---------- ----------
Total shareholders' equity 7,727,671 5,017,309
---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 17,178,975 $ 11,237,029
========== ==========
DECENT HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE
(LOSS) INCOME
(Stated in US dollars, except for share and per share
data)
For The Years Ended
October 31,
---------------------------------------
2025 2024 2023
----------- ----------- -----------
REVENUE
Wastewater
treatment
revenue $ 4,163,965 $ 2,468,097 $ 2,355,126
River water
quality
management
revenue 6,619,693 6,864,631 4,436,214
Product sales
revenue 2,091,469 2,192,864 2,648,445
Others 74,218 16,700 7,549
---------- ---------- ----------
TOTAL REVENUE 12,949,345 11,542,292 9,447,334
---------- ---------- ----------
COST OF REVENUE
Wastewater
treatment
revenue 3,341,944 1,845,434 1,841,604
River water
quality
management
revenue 4,878,220 5,075,552 3,165,712
Product sales
revenue 1,273,157 1,408,894 1,224,396
Others 69,423 -- --
---------- ---------- ----------
TOTAL COST OF
REVENUE 9,562,744 8,329,880 6,231,712
---------- ---------- ----------
GROSS PROFIT 3,386,601 3,212,412 3,215,622
---------- ---------- ----------
OPERATING EXPENSES
Selling expenses 446,718 16,489 70,128
General and
administrative
expenses 2,776,341 662,158 851,130
Research and
development
expenses 302,118 28,981 122,441
Impairment loss -- 33,841 --
Total operating
expenses, net 3,525,177 741,469 1,043,699
---------- ---------- ----------
NET (LOSS) PROFIT
FROM OPERATIONS (138,576) 2,470,943 2,171,923
---------- ---------- ----------
OTHER INCOME
(EXPENSES)
Interest income 14,616 12,343 5,420
Interest expense -- -- (6,017)
Other income 4,658 851 5,214
Other expense -- (13) --
---------- ---------- ----------
Total other
income 19,274 13,181 4,617
---------- ---------- ----------
NET (LOSS) INCOME
BEFORE TAXES (119,302) 2,484,124 2,176,540
Income tax expenses 202,900 380,767 316,927
---------- ---------- ----------
NET (LOSS) INCOME (322,202) 2,103,357 1,859,613
---------- ---------- ----------
OTHER
COMPREHENSIVE
INCOME (LOSS)
Foreign currency
translation
adjustment 19,651 99,298 (67,065)
---------- ---------- ----------
COMPREHENSIVE
(LOSS) INCOME $ (302,551) $ 2,202,655 $ 1,792,548
========== ========== ==========
Weighted average
shares outstanding
during the year --
basic and diluted 16,250,000 15,000,000 15,000,000
========== ========== ==========
(Loss) Earnings per
Ordinary Share --
basic and diluted $ (0.02) $ 0.14 $ 0.12
========== ========== ==========
DECENT HOLDING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Stated in US dollars, except for share and per share
data)
For The Years Ended
October 31,
---------------------------------------
2025 2024 2023
----------- ----------- -----------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income $ (322,202) $ 2,103,357 $ 1,859,613
Adjustments to
reconcile net
income to net cash
provided by (used
in) operating
activities:
Provision for
credit losses 842,339 (95,193) 132,561
Provision for
inventory
obsolescence -- 185 26,585
Gain from the
disposal of
property and
equipment -- -- (5,214)
Depreciation and
amortization 70,497 76,594 45,455
Impairment of
property and
equipment -- 33,841 --
Amortization of
finance lease
assets 13,493 14,781 15,098
Non-cash operating
lease expenses 54,501 53,044 49,446
Deferred income
tax effect (110,563) 10,054 (27,991)
Estimated warranty
expenses
(reversal) (54,185) 36,971 27,462
Changes in
operating assets
and liabilities:
Accounts
receivable (4,471,382) (6,318,575) (626,233)
Prepayment -- 544,461 1,626,312
Prepaid expense (2,060,278) -- --
Other receivables 6,252 12,393 (15,197)
Contract assets (546,755) (450,769) (150,063)
Due from related
party (58) 96 7,995
Inventories 5 (127) 1,775,773
Other assets -- 16,178 (16,457)
Tax payables 313,463 370,714 344,918
Other payables 1,628,472 1,540,827 1,015,988
Accounts payable 1,305,885 1,745,087 87,085
Advance from
customers 243 -- (4,591,413)
Operating lease
liabilities (54,501) (53,044) (52,396)
Amount due to
related parties (62,367) (20,643) 56,628
Payroll payable (8,416) 17,446 (1,709)
---------- ---------- ----------
CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES (3,455,557) (362,322) 1,584,246
---------- ---------- ----------
CASH FLOWS FROM
INVESTING
ACTIVITIES
Purchase of
property and
equipment (589) (78,133) (153,794)
Loan made to third
parties (360,500) -- --
Loan made to
related parties -- (39,348) --
Repayment from
related parties 39,186 -- 10,759
---------- ---------- ----------
CASH PROVIDED BY
(USED IN) INVESTING
ACTIVITIES (321,903) (117,481) (143,035)
---------- ---------- ----------
CASH FLOWS FROM
FINANCING
ACTIVITIES:
Offering cost paid (1,037,551) (417,487) (207,969)
Repayment of bank
loans -- -- (1,867,293)
Principal payment
for obligation
under finance
leases (21,598) (23,659) (24,067)
Proceeds from
related parties -- -- 132,084
Repayment to
related parties -- (25,468) (133,924)
Gross proceeds
from offering 5,000,000 -- --
---------- ---------- ----------
CASH USED IN
FINANCING
ACTIVITIES 3,940,851 (466,614) (2,101,169)
---------- ---------- ----------
EFFECT OF EXCHANGE
RATE ON CASH 2,385 27,990 20,058
NET CHANGE IN CASH 165,776 (918,427) (639,900)
CASH AT BEGINNING OF
YEAR 407,031 1,325,458 1,965,358
CASH AT END OF YEAR $ 572,807 $ 407,031 $ 1,325,458
========== ========== ==========
SUPPLEMENTAL CASH
FLOW INFORMATION
Cash paid during
the year for:
Income taxes $ -- $ -- $ --
========== ========== ==========
Interest $ -- $ -- $ 6,017
========== ========== ==========
NON-CASH
TRANSACTIONS
Operating lease
assets obtained
in exchange for
lease
obligations $ 139,933 $ -- $ 32,742
Reclassification
from finance
lease assets to
fixed assets at
lease maturity (29,439) -- --
========== ========== ==========
(END) Dow Jones Newswires
March 04, 2026 08:00 ET (13:00 GMT)