CDT Environmental Technology Reports 2025 Unaudited Interim Financial Results and Provides Business Updates

Rhea-AI Summary

CDT Environmental Technology (Nasdaq: CDTG)revenue $7.3M (down 42.3% YoY) and a net loss $1.3M (loss per share $0.11) versus prior-period net income $1.4M.

Gross profit was $2.9M with a gross margin of 39.9% (up 4.4 percentage points). Operating expenses rose ~51.9% and included $2.1M of non-cash stock-based compensation. Backlog from three projects totals ~$19.6M. The company is shifting toward green hydrogen and organic waste-to-energy using high-temperature gasification and academic partnerships.

Positive

• Gross margin expanded by 4.4 percentage points to 39.9%
• Backlog of $19.6M across three projects
• Strategic pivot to green hydrogen and waste-to-energy initiatives

Negative

• Revenue declined 42.3% to $7.3M for H1 2025
• Reported net loss $1.3M (vs. net income $1.4M prior-year)
• Operating expenses rose 51.9%
• Recognized $2.1M non-cash stock-based compensation expense

Key Figures

H1 2025 Revenue $7.3 million Six months ended June 30, 2025; down from ~$12.7 million in 2024

Revenue Decline $5.4 million (42.3%) Decrease vs. six months ended June 30, 2024

Gross Profit $2.9 million Six months ended June 30, 2025; down from ~$4.5 million in 2024

Gross Margin 39.9% Up from 35.5% in six months ended June 30, 2024

Operating Expenses $4.1 million Six months ended June 30, 2025; up from ~$2.7 million in 2024

Net Result $1.3 million net loss H1 2025 vs. $1.4 million net income in H1 2024

Loss per Share $0.11 H1 2025 vs. $0.14 earnings per share in H1 2024

Non-cash Stock Compensation $2.1 million Recognized under 2025 Equity Incentive Plan (ASC 718)

Market Reality Check

$0.3500 Last Close

Volume Volume 4,595 is low versus 20-day average volume of 36,162 (relative volume 0.13x). low

Technical Shares at 0.4206, trading below the 200-day MA of 0.91 and far under the 52-week high of 4.64.

Peers on Argus

CDTG was down 4.19% while peers were mixed: AQMS up 5.9%, DXST up 9.82%, and AWX/QRHC slightly negative, pointing to a stock-specific reaction to the weak interim results.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 28	AGM outcomes	Neutral	-1.7%	AGM approvals including potential 25-for-1 share consolidation and director changes.
Nov 20	Strategic initiative	Positive	+6.3%	Entry into waste-to-hydrogen market with new partnerships and technology focus.
Sep 26	EGM capital changes	Neutral	-3.3%	Approval of dual-class share structure and increase in authorized share capital.

Pattern Detected

Limited history shows positive reaction to strategic clean-energy news and modest pressure around capital-structure governance events.

Recent Company History

Over the past year, CDT Environmental Technology has focused on capital structure changes and strategic repositioning. In Sep 2025, shareholders approved a new dual-class share structure and higher authorized capital. An Nov 2025 AGM backed a potential 25-for-1 share consolidation. Also in Nov 2025, the company announced a clean-energy pivot into waste-to-hydrogen technologies, which coincided with a positive price move. Today’s H1 2025 results extend the narrative of margin improvement but weakening revenue and profitability.

Market Pulse Summary

This announcement highlights a challenging H1 2025, with revenue down to $7.3 million and a shift from net income to a $1.3 million loss, partly driven by non-cash stock compensation. At the same time, gross margin improved to 39.9%, and the company is repositioning around green hydrogen and organic waste-to-energy projects. Investors may watch backlog conversion, project timing, operating expense control, and concrete milestones in the hydrogen initiative to gauge the transformation.

Key Terms

syngas technical

"to convert organic waste into syngas, which can then be purified"

Syngas is a manufactured fuel gas made mainly of hydrogen and carbon monoxide, produced by heating carbon-based materials (like coal, natural gas, biomass or waste) in a controlled, low-oxygen process—think of it as breaking raw ingredients into a simple cooking gas. Investors care because syngas can be turned into electricity, fuels or chemical feedstocks and its cost, efficiency and emissions profile directly affect project profits, regulatory compliance and long-term market demand.

basis points financial

"we achieved 250 basis points of gross profit margin expansion"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

12/23/2025 - 09:03 AM

Revenue of $7.3 million and loss per share of $0.11 impacted by reduced project activity due to a slowdown in the PRC economy

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.

FAQ

What were CDTG's revenue and EPS for the six months ended June 30, 2025?

CDTG reported revenue $7.3M and a loss per share $0.11 for the six months ended June 30, 2025.

Why did CDTG's revenue drop 42.3% in H1 2025?

The company cited reduced PRC market demand, fewer projects meeting revenue recognition, and a strategic shift away from legacy projects.

How did CDTG's gross margin change in H1 2025 and why?

Gross margin rose to 39.9% (up 4.4 points), driven by a higher-margin sewage treatment systems project contributing ~$3.1M.

What is the size of CDTG's project backlog and which projects are included?

CDTG reported a combined tentative contract value of approximately $19.6M from the Sichuan Anya, Xinjiang, and Guankou Phase VI projects.

How did stock-based compensation affect CDTG's H1 2025 results?

The company recorded $2.1M of non-cash stock-based compensation related to its 2025 Equity Incentive Plan, contributing to the net loss.

What is CDTG's green hydrogen strategy and partners?

CDTG plans high-temperature gasification to produce syngas and hydrogen, has appointed a chief scientist from the Guangzhou Institute of Energy Conversion, and established a technical collaboration with that institute.