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

1. DXST revenue surged 147.3%, reaching approximately $5.5 million. 2. Gross profit increased by 170.5%, indicating strong operational performance improvements. 3. Net loss was approximately $0.5 million, reflecting increased operating expenses. 4. Elevated operational expenses grew by 227.8%, showing risk in cost management. 5. Future growth strategies include expanding services and AI-driven technology investments.

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Why Bullish?

The significant revenue and gross profit increases demonstrate strong market demand. Similar trends in past financial announcements for growth stocks have led to price gains.

How important is it?

The substantial revenue growth and shifts in cost structure indicate a pivotal moment for DXST, likely influencing investor confidence. Such quarterly results are key determinants in stock valuation.

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Market reactions to quarterly results typically occur immediately as investors digest news. Historical market trends show rapid stock adjustments post-announcement.

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August 13, 2025 08:00 ET  | Source: Decent Holding Inc. 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 SUBSIDIARIESUNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS(Stated in US dollars, except for share and per share data)   As ofApril 30,2025  As ofOctober 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 SUBSIDIARIESUNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME(Stated in US dollars, except for share and per share data)   For The Six Months EndedApril 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 SUBSIDIARIESUNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Stated in US dollars, except for share and per share data)   For The Six Months EndedApril 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) $- 

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