Decent Holding Inc. Announces the Approval of Dual-Class Share Structure and Governance Enhancements

Rhea-AI Summary

Decent Holding (NASDAQ: DXST), a Chinese wastewater treatment company, has implemented a dual-class share structure through a special resolution. The company's authorized share capital of US$50,000 has been reclassified into Class A and Class B ordinary shares. The restructuring includes converting 16.25M existing ordinary shares into Class A shares (1 vote per share) and redesignating 5M shares held by Decent Limited into Class B shares (20 votes per share). The remaining 483.75M authorized but unissued shares were converted to Class A shares. The new structure results in 495M authorized Class A shares and 5M Class B shares, accompanied by updated governance provisions in the Second Amended and Restated Memorandum and Articles of Association.

Positive

• Class B shares with 20 votes per share strengthen management control and decision-making capabilities
• Enhanced governance flexibility and streamlined voting procedures
• Maintained equal economic rights for all shareholders despite voting power differences

Negative

• Concentration of voting power through Class B shares may reduce minority shareholder influence
• Potential corporate governance concerns due to disproportionate voting rights
• Reduced likelihood of successful activist investor campaigns or hostile takeovers

News Market Reaction

+2.27%

1 alert

+2.27% News Effect

On the day this news was published, DXST gained 2.27%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Yantai, China, June 03, 2025 (GLOBE NEWSWIRE) -- Decent Holding Inc. (Nasdaq: DXST) (“Decent” or the “Company”), an established wastewater treatment services provider in China, today announced the successful adoption of a special resolution to reclassify its authorized share capital and implement updated governance provisions, effective immediately.

Under the resolution, the Company has adopted change in the authorized share capital of US$50,000 divided into 500,000,000 shares of a par value of US$0.0001 each ("Ordinary Shares") by:

(i) re-classifying all 16,250,000 Ordinary Shares issued and outstanding including 8,026,000 Ordinary Shares issued and outstanding held by Decent Limited into class A ordinary shares with a par value of US$0.0001 each, each having one (1) vote per share and with other rights attached to it in the Second Amended and Restated Memorandum and Articles of Association (the "Class A Ordinary Shares") on a one for one basis;

(ii) re-designating 5,000,000 Ordinary Shares issued and outstanding held by Decent Limited into 5,000,000 class B ordinary shares with a par value of US$0.0001 each, each having twenty (20) votes per share and with other rights attached to it in the Second Amended and Restated Memorandum and Articles of Association (the "Class B Ordinary Shares") on a one for one basis; and

(iii) re-designating the 483,750,000 remaining authorized but unissued Ordinary Shares into Class A Ordinary Shares on a one for one basis. (the “Re-designations”)

Upon the Re-designations, the authorized share capital of the Company is US$50,000 divided into 500,000,000 shares of a par value of US$0.0001 each, comprising of (i) 495,000,000 Class A Ordinary Shares, and (ii) 5,000,000 Class B Ordinary Shares.

Concurrently, the Company adopted its Second Amended and Restated Memorandum and Articles of Association, formalizing the rights, conversion mechanisms, and governance frameworks for the new share structure. These updates aim to enhance governance flexibility, streamline voting procedures, director appointments and shareholder communications while maintaining equitable economic rights for all shareholders.

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:
Wealth Financial Services LLC
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)

FAQ

What is the new share structure of Decent Holding (DXST)?

Decent Holding's new structure includes 495M authorized Class A shares with 1 vote per share and 5M Class B shares with 20 votes per share, maintaining a total authorized capital of US$50,000.

How many votes does each class of DXST shares have?

Class A ordinary shares have 1 vote per share, while Class B ordinary shares have 20 votes per share.

How many shares of DXST are currently issued and outstanding?

Decent Holding has 16.25M shares issued and outstanding, including 8.026M shares held by Decent Limited.

What is the purpose of DXST's dual-class share structure?

The dual-class structure aims to enhance governance flexibility, streamline voting procedures, and maintain management control while preserving equal economic rights for all shareholders.

How does the new share structure affect DXST shareholders?

While economic rights remain equal, Class B shareholders gain significantly more voting power (20 votes per share), potentially reducing minority shareholder influence in company decisions.