Decent Holding Inc. Announces First Half of Fiscal Year 2025 Financial Results

Rhea-AI Summary

Decent Holding Inc. (NASDAQ: DXST), a Chinese wastewater treatment provider, reported significant growth in its H1 FY2025 financial results. The company's total revenue surged 147.3% to $5.5 million, primarily driven by a 187.4% increase in river water quality management revenue to $4.7 million.

While gross profit increased by 170.5% to $1.5 million with improved margins of 27.5% (up from 25.1%), the company reported a wider net loss of $479,165 compared to $15,849 in the previous year. Operating expenses increased significantly by 227.8% to $2.0 million, mainly due to higher marketing fees, doubtful debt provisions, and consultant services.

The company's cash position slightly decreased to $838,415 as of April 30, 2025, compared to $909,765 in the previous year. Management plans to expand operations through integrated treatment solutions, academic collaborations, and AI-driven analytics while exploring international markets.

Positive

• Total revenue increased significantly by 147.3% to $5.5 million
• River water quality management revenue surged 187.4% to $4.7 million
• Product sales revenue jumped 220.6% to $277,081
• Overall gross margin improved to 27.5% from 25.1%
• Product sales gross margin increased to 41.7% from 31.7%

Negative

• Net loss increased substantially to $479,165 from $15,849
• Operating expenses surged 227.8% to $2.0 million
• Recorded $0.6 million provision for doubtful debts
• Wastewater treatment gross margin declined to 18.6% from 31.6%
• Cash position decreased to $838,415 from $909,765

Insights

Financial Analyst

Decent shows strong 147% revenue growth but widening net loss signals potential profitability challenges despite margin improvements.

Decent Holding's H1 FY2025 results present a mixed financial picture. While the company achieved impressive 147.3% revenue growth to $5.5 million, this growth came with a significantly expanded net loss of $479,165 compared to just $15,849 in the prior year period – a concerning 2,925% increase in losses.

The revenue expansion was primarily driven by the River Water Quality Management segment, which surged 187.4% to $4.7 million and improved its gross margin to 27.6%. Meanwhile, Product Sales showed strong momentum with 220.6% growth to $277,081 and an impressive 41.7% gross margin. However, the core Wastewater Treatment Service revenue remained essentially flat at $493,123 while its gross margin deteriorated significantly from 31.6% to 18.6% due to higher costs and increased provisioning for collection risks.

The dramatic 227.8% increase in operating expenses to $2.0 million is particularly concerning. This includes a $0.6 million provision for doubtful debts, suggesting potential issues with customer payment reliability. While gross margin improved to 27.5% overall, the substantial operating expense growth overwhelmed these gains, resulting in the wider net loss.

The company's cash position has deteriorated, declining to $838,415 from $909,765 year-over-year. This cash burn, combined with expanding losses and doubtful debt provisions, raises questions about long-term financial sustainability despite the impressive top-line growth. The company appears to be prioritizing revenue expansion over profitability, which may require additional funding if this trajectory continues.

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: ckang@wealthfsllc.com

Tel: +86 1381 185 7742 (CN)

DECENT HOLDING INC. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Stated in US dollars, except for share and per share data)

		As of April 30, 2025				As of October 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
Finance lease liabilities – non-current			-				-
Operating lease liabilities – non-current			6,631				13,550
Total non-current liabilities			6,631				13,550
TOTAL LIABILITIES			6,072,568				6,219,720
SHAREHOLDERS’ EQUITY
Ordinary shares, US$0.0001 par value, authorized 500,000,000 shares as of April 30, 2025 and October 31, 2024; 16,250,000 and 15,000,000 shares issued and outstanding as of April 30, 2025 and October 31, 2024, respectively			1,625				1,500
Subscription receivable			(1,500	)			(1,500	)
Additional paid-in capital			4,245,254				1,210,094
Statutory reserve			420,231				402,621
Retained earnings			3,054,244				3,551,019
Accumulated other comprehensive loss			(278,109	)			(146,425	)
Total shareholders’ equity			7,441,745				5,017,309
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	13,514,313			$	11,237,029

DECENT HOLDING INC. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Stated in US dollars, except for share and per share data)

		For The Six Months Ended April 30,
		2025				2024
REVENUE
Wastewater treatment revenue		$	493,123			$	491,991
River water quality management revenue			4,728,449				1,645,366
Product sales revenue			277,081				86,433
TOTAL REVENUE			5,498,653				2,223,790
COST OF REVENUE
Wastewater treatment revenue			401,310				336,709
River water quality management revenue			3,424,737				1,269,415
Product sales revenue			161,511				59,009
TOTAL COST OF REVENUE			3,987,558				1,665,133
GROSS PROFIT			1,511,095				558,657
OPERATING EXPENSES
Selling expenses			223,821				7,913
General and administrative expenses			1,740,278				535,994
Research and development expenses			12,784				59,226
Total operating expenses, net			1,976,883				603,133
NET LOSS FROM OPERATIONS			(465,788	)			(44,476	)
OTHER INCOME (EXPENSES)
Interest income			2,674				3,236
Interest expense			11,180				-
Other income			2,521				14,749
Other expenses			-				(13	)
Total other income, net			16,375				17,972
NET LOSS BEFORE TAXES			(449,413	)			(26,504	)
Income tax (benefits) expenses			(29,752	)			10,655
NET LOSS			(479,165	)			(15,849	)
OTHER COMPREHENSIVE (LOSS) GAIN
Foreign currency translation adjustment			(131,684	)			30,352
COMPREHENSIVE (LOSS) INCOME		$	(610,849	)		$	14,503
Weighted average number of shares outstanding during the period – basic and diluted			16,250,000				15,000,000
Earnings per Ordinary Share – basic and diluted		$	(0.03	)		$	(0.001	)

DECENT HOLDING INC. AND SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Stated in US dollars, except for share and per share data)

		For The Six Months Ended April 30,
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	(479,165	)		$	(15,849	)
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts			789,852				189,101
Depreciation and amortization			36,951				35,364
Amortization of finance lease assets			7,306				7,381
Non-cash operating lease expenses			27,149				26,363
Deferred income tax effect			(113,869	)			(25,142	)
Estimated warranty expenses			(27,040	)			(16,530	)
Changes in operating assets and liabilities:
Accounts receivable			(651,784	)			(1,559,822	)
Prepayment			(592,460	)			437,185
Other receivables			6,463				11,809
Contract assets			2,683				141,767
Due from related party			264				245
Inventories			2				(120	)
Deferred IPO costs			947,424				(269,235	)
Deferred expenses			(588,411	)			(5,875	)
Tax payables			143,621				14,486
Other payables			632,182				275,934
Accounts payable			(703,567	)			507,246
Operating lease liabilities			(6,511	)			(5,515	)
Advance from related parties			(55,035	)			(69,261	)
Payroll payable			11,390				1,037
CASH USED IN OPERATING ACTIVITIES			(612,555	)			(319,431	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment			(585	)			(75,694	)
Loan made to third party			(1,984,087	)			-
Repayment from related parties			38,901				-
CASH USED IN INVESTING ACTIVITIES			(1,945,771	)			(75,694	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payment for obligation under finance leases			(11,695	)			(11,814	)
Repayment to related parties			-				(25,435	)
Net proceeds from offering			3,035,285				-
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES			3,023,590				(37,249	)
EFFECT OF EXCHANGE RATE ON CASH			(33,880	)			16,681
NET CHANGE IN CASH			431,384				(415,693	)
CASH AT BEGINNING OF YEAR			407,031				1,325,458
CASH AT END OF YEAR		$	838,415			$	909,765
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Income taxes		$	-			$	-
Interest		$	(11,180	)		$	-

FAQ

What was Decent Holding's (DXST) revenue growth in H1 2025?

Decent Holding reported a 147.3% increase in total revenue to $5.5 million for H1 2025, compared to $2.2 million in the previous year.

Why did Decent Holding (DXST) report a larger net loss in H1 2025?

The increased net loss of $479,165 was primarily due to a 227.8% rise in operating expenses, including higher marketing fees, $0.6 million in doubtful debt provisions, and $0.4 million in consultant fees.

How did Decent Holding's (DXST) different business segments perform in H1 2025?

River water quality management revenue grew 187.4% to $4.7 million, product sales increased 220.6% to $277,081, while wastewater treatment revenue remained relatively flat at $493,123.

What is Decent Holding's (DXST) gross margin in H1 2025?

The company's overall gross margin improved to 27.5% from 25.1%, driven by higher-margin river water quality management projects.

What are Decent Holding's (DXST) future growth plans?

The company plans to expand integrated treatment solutions across China, develop next-generation microbial formulations, implement AI-driven analytics, and explore international markets.