YANTAI, China, March 10, 2025 (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, 2024.

Full Year 2024 Financial Highlights

Total revenue for the full year of 2024 increased by 22.2% to US$11.5 million, from US$9.4 million in the prior year.
Gross profit for the full year of 2024 remained stable at $3.2 million, even though the gross profit margin declined to 27.8% from 34.0% in the prior year.
Net income for the full year of 2024 increased to $2.1 million, compared with $1.9 million in the prior year.
Operating expenses for the full year of 2024 decreased by 29.0% to $0.7 million from $1.0 million in the prior year, benefiting from improved operational efficiency.

Mr. Dingxin Sun, Chairman of the Company commented: "In fiscal year 2024, we achieved a significant 22.2% increase in total revenue, which reflects our resilience and adaptability in navigating a dynamic economic environment. This growth was driven by successful strategies across our business segments, particularly in wastewater treatment and river water quality management."

"Despite this positive revenue trajectory, our gross profit margin approximately to about 27.8% in fiscal year 2024. This decline was largely due to a higher proportion of revenue derived from lower-margin projects. Nevertheless, we maintained a stable gross profit of $3.2 million, underscoring our commitment to profitability even in challenging conditions. We are particularly encouraged by the 121.2% increase in other related revenues, which maintained a 100% gross profit margin. This demonstrates our ability to identify and capitalize on new opportunities without incurring additional costs."

Mr. Sun added: "Our focus on operational efficiency was reflected in the approximately 29% reduction in total operating expenses, which has been instrumental in sustaining our profitability. As a result, net income rose to $2.1 million, compared with $1.9 million in the prior year."

"Looking ahead, we remain committed to enhancing our service offerings and optimizing our revenue mix to improve margins. We plan to invest in innovative technologies and expand our market presence, particularly in high-growth areas such as sustainable water management solutions. By fostering strategic partnerships and leveraging our expertise, we aim to drive long-term growth and create additional value for our stakeholders."

Selected Financial Results

Total revenue

Total revenue increased by 22.2%, or $2.1 million, to $11.5 million for the fiscal year ended October 31, 2024, compared with $9.4 million for the fiscal year ended October 31, 2023, demonstrating the Company's resilience and adaptability to maintain profitability in a fluctuating economic environment. Specifically:

Revenue from Wastewater Treatment Service for the fiscal year ended October 31, 2024 rose to $2.5 million from $2.4 million for the fiscal year ended October 31, 2023, reflecting a 4.8% increase driven by new customer acquisitions. Cost of revenue for wastewater treatment service was $1.8 million in fiscal year 2024, a 0.2% increase from 2023. This resulted in an increase in gross profit margins of 15.7% to 25.2 % for fiscal year 2024 from 21.8% for fiscal year 2023.
Revenue from River Water Quality Management for the fiscal year ended October 31, 2024 rose significantly to $6.9 million, a 54.7% increase from $4.4 million in fiscal year 2023, driven by successful bids and project completions. However, most projects involved civil works like dredging and stormwater networks, which typically yield lower margins. Consequently, the gross profit margin declined to 26.1% in fiscal year 2024 from 28.6% in fiscal year 2023.
Revenue from Product Sales for the fiscal year ended October 31, 2024, declined by 17.2% to approximately $2.2 million, down from $2.6 million in fiscal year 2023. This decrease was mainly due to reduced procurement from local enterprises, particularly in microbial inoculum used for river water quality management. Cost of revenue for this segment increased by 15.07% to about $1.4 million in fiscal year 2024, due to upgrades in pharmaceutical formulations. As a result, gross profit fell by 18.0% to approximately $0.78 million, compared with $1.4 million in fiscal year 2023, leading to a gross profit margin of 35.8%, compared with 53.8% in the prior year.
Other Related Revenues increased by 121.2% to $16,700 for the fiscal year ended October 31, 2024, compared with $7,549 in fiscal year 2023, maintaining a 100% gross profit margin with no associated costs.

Cost of Revenue

Total cost of revenue for the fiscal years ended October 31, 2024, and 2023, was $8.3 million and $6.2 million, respectively. The increase was driven by higher revenues and the reclassification of maintenance guarantee expenses for wastewater treatment and river water quality management projects from selling expenses to cost of revenue.

Gross Profit and Margin

Gross profit for the year ended October 31, 2024, was $3.2 million, remaining relatively stable compared with fiscal year 2023. Gross margin declined to 27.8% in fiscal year 2024 from 34.0% in fiscal year 2023, 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 decreased by 29.0% to $0.7 million for the fiscal year ended October 31, 2024, from $1.0 million in fiscal year 2023. The decrease is primarily attributed to a decrease in selling expenses due to reduced marketing costs from improved reputation, the reclassification of maintenance guarantee expenses to costs of revenue, and a decrease in both general and administrative expenses and research and development expenses.

Net income

As a result of the factors described above, net income for the fiscal years ended October 31, 2024 and 2023 was $2.1 million and $1.9 million, respectively.

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)


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

	As of October 31, 2024			As of October 31, 2023
ASSETS
CURRENT ASSETS
Cash	$	407,031		$	1,325,458
Accounts receivable, net		8,702,303			2,178,923
Prepayment, net		7,699			530,215
Other receivables		11,410			22,741
Contract assets		603,979			144,876
Due from related parties		40,154			514
Inventories		134			187
Total current assets		9,772,710			4,202,914
NON-CURRENT ASSETS
Deferred IPO costs		967,793			531,491
Other long-term assets		—			15,888
Operating lease assets, net		67,934			118,181
Finance lease assets, net		43,520			56,853
Property and equipment, net		242,185			266,987
Intangible assets, net		6,088			6,264
Deferred tax asset		136,799			142,957
Total non-current assets		1,464,319			1,138,621
TOTAL ASSETS	$	11,237,029		$	5,341,535

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	1,851,723		$	87,591
Due to related parties		63,222			106,789
Payroll payable		23,401			5,724
Tax payables		821,010			434,631
Other payables		3,353,963			1,749,615
Finance lease liabilities – current		21,893			23,235
Operating lease liabilities – current		6,382			52,094
Estimated warranty liabilities		64,576			26,513
Total current liabilities		6,206,170			2,486,192
NON-CURRENT LIABILITIES
Finance lease liabilities – non-current		—			21,299
Operating lease liabilities – non-current		13,550			19,390
Total non-current liabilities		13,550			40,689
TOTAL LIABILITIES		6,219,720			2,526,881

SHAREHOLDERS' EQUITY
Ordinary shares, US$0.0001 par value, authorized 500,000,000 shares as of October 31, 2024 and 2023; 15,000,000 shares issued and outstanding as of October 31, 2024 and 2023, respectively		1,500			1,500
Subscription receivable		(1,500	)		(1,500	)
Additional paid-in capital		1,210,094			1,210,094
Statutory reserve		402,621			188,144
Retained earnings		3,551,019			1,662,139
Accumulated other comprehensive loss		(146,425	)		(245,723	)
Total shareholders' equity		5,017,309			2,814,654
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	11,237,029		$	5,341,535


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

	For The Years Ended October 31,
	2024			2023			2022
REVENUE
Wastewater treatment revenue	$	2,468,097		$	2,355,126		$	650,308
River water quality management revenue		6,864,631			4,436,214			1,910,425
Product sales revenue		2,192,864			2,648,445			1,008,042
Others		16,700			7,549			24,927
TOTAL REVENUE		11,542,292			9,447,334			3,593,702

COST OF REVENUE
Wastewater treatment revenue		1,845,434			1,841,604			482,554
River water quality management revenue		5,075,552			3,165,712			1,227,365
Product sales revenue		1,408,894			1,224,396			229,894
TOTAL COST OF REVENUE		8,329,880			6,231,712			1,939,813
GROSS PROFIT		3,212,412			3,215,622			1,653,889

OPERATING EXPENSES
Selling expenses		16,489			70,128			32,517
General and administrative expenses		662,158			851,130			1,061,967
Research and development expenses		28,981			122,441			60,883
Impairment loss		33,841			—			—
Total operating expenses, net		741,469			1,043,699			1,155,367

NET PROFIT FROM OPERATIONS		2,470,943			2,171,923			498,522

OTHER INCOME (EXPENSES)
Interest income		12,343			5,420			1,341
Interest expense		—			(6,017	)		(86,671	)
Other income		851			5,214			18,257
Other expense		(13	)		—			—
Total other income (expenses), net		13,181			4,617			(67,073	)

NET INCOME BEFORE TAXES		2,484,124			2,176,540			431,449

Income tax expenses		(380,767	)		(316,927	)		(59,014	)

NET INCOME		2,103,357			1,859,613			372,435

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment		99,298			(67,065	)		(131,378	)

COMPREHENSIVE INCOME	$	2,202,655		$	1,792,548			241,057

Weighted average number of shares outstanding during the year – basic and diluted		15,000,000			15,000,000			15,000,000
Earnings per Ordinary Share – basic and diluted	$	0.14		$	0.12			0.02


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,
	2024			2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,103,357		$	1,859,613		$	372,435
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses and bad debts		(95,193	)		132,561			400,411
Provision for inventory obsolescence		185			26,585			—
Gain from the disposal of property and equipment		—			(5,214	)		(18,236	)
Depreciation and amortization		76,594			45,455			19,527
Impairment of property and equipment		33,841			—			—
Amortization of finance lease assets		14,781			15,098			1,271
Non-cash operating lease expenses		53,044			49,446			45,574
Deferred income tax effect		10,054			(27,991	)		(53,400	)
Estimated warranty expenses		36,971			27,462			—
Changes in operating assets and liabilities:
Accounts receivable		(6,318,575	)		(626,233	)		130,082
Prepayment - third parties		544,461			1,626,312			(2,311,240	)
Prepayment - related party		—			—			101,708
Other receivables		12,393			(15,197	)		13,402
Contract assets		(450,769	)		(150,063	)		—
Due from related party		96			7,995			(7,752	)
Inventories		(127	)		1,775,773			479,331
Deferred expenses		16,178			(16,457	)		—
Tax payables		370,714			344,918			112,414
Other payables		1,540,827			1,015,988			401,304
Accounts payable		1,745,087			87,085			(371,389	)
Contract liabilities		—			(4,591,413	)		2,397,667
Operating lease liabilities		(53,044	)		(52,396	)		(52,580	)
Amount due to related parties		(20,643	)		56,628			(271,800	)
Payroll payable		17,446			(1,709	)		2,193
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(362,322	)		1,584,246			1,390,922

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		(78,133	)		(153,794	)		(241,211	)
Proceed of disposal of property and equipment		—			—			21,995
Purchase of intangible assets		—			—			(7,559	)
Payment to acquire finance lease assets		—			—			(13,615	)
Loan made to related parties		(39,348	)		—			(1,472,562	)
Repayment from related parties		—			10,759			2,312,566
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(117,481	)		(143,035	)		599,614

CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred IPO costs		(417,487	)		(207,969	)		(365,786	)
Proceeds of bank loans		—			—			1,510,204
Repayment of bank loans		—			(1,867,293	)		(1,637,652	)
Principal payment for obligation under finance leases		(23,659	)		(24,067	)		(2,142	)
Proceeds from related parties		—			132,084			29,630
Repayment to related parties		(25,468	)		(133,924	)		(78,609	)
CASH USED IN FINANCING ACTIVITIES		(466,614	)		(2,101,169	)		(544,355	)

EFFECT OF EXCHANGE RATE ON CASH		27,990			20,058			(228,683	)

NET CHANGE IN CASH		(918,427	)		(639,900	)		1,217,498

CASH AT BEGINNING OF YEAR		1,325,458			1,965,358			747,860

CASH AT END OF YEAR	$	407,031		$	1,325,458			1,965,358

SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
Income taxes	$	—		$	—			—
Interest	$	—		$	6,017			86,671

NON-CASH TRANSACTIONS
Operating lease assets obtained in exchange for lease obligations	$	—		$	32,742			152,632
Finance lease assets obtained in exchange for lease obligations		—			—			77,098

Decent Holding Inc. Reports Full Year 2024 Financial Results