Decent Holding Inc. Reports FY2025 Financial Results
YANTAI, China, March 04, 2026 (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, 2025.
Fiscal Year 2025 Financial Highlights
- Total revenue for fiscal year 2025 increased by 12.2% to US$12.9 million, from US$11.5 million for fiscal year 2024. Revenue from wastewater treatment service increased by 68.7% to US$4.2 million from US$2.5 million in the prior fiscal year, primarily due to the completion of a wastewater treatment project during fiscal year 2025.
- Gross profit for fiscal year 2025 grew by 5.42% to $3.4 million, even though the gross profit margin declined to 26.1% from 27.8% in the prior year.
Mr. Dingxin Sun, Chairman of the Company, commented: “Fiscal year 2025 marked a period of significant top-line expansion for the Company, demonstrating our resilience and adaptability in a fluctuating economic environment. Total revenue grew by 12.2%, driven largely by the successful execution of major wastewater treatment projects, which surged by nearly 69% year-over-year. While our core River Water Quality Management and Product Sales segments experienced slight contractions due to shifting customer procurement cycles, the robust demand for our wastewater services successfully offset these declines. This performance validates our diversified service strategy, even as the revenue mix shifted toward these service-heavy projects.”
“Despite the strong revenue growth, the Company faced pressure on its profitability due to this shift in revenue mix combined with substantial strategic and operational investments. Gross profit margin moderated to 26.2%, primarily because the high-growth wastewater segment carries lower gross profit margins compared to our product sales, which conversely saw margin improvement to 39.1%. More significantly, the swing to a net loss of $0.32 million was driven by a sharp increase in operating expenses. This rise was largely attributable to prudent financial measures, including a $0.9 million increase in provisions for credit losses, alongside higher spending on consulting services and R&D intended to bolster our long-term capabilities.”
“Looking ahead, management is focused on further optimizing the Company’s cost structure and improving operating efficiency while sustaining our revenue momentum. We intend to leverage the increased R&D investments made during the past fiscal year to enhance operational efficiencies and improve margins within our lower-margin service segments. By continuing to expand its project pipeline while maintaining disciplined control over administrative costs and credit risk management, management believes that the Company is well-positioned to strengthen profitability and enhance long-term shareholder value.”
Selected Financial Results
Total revenue
Total revenue increased by 12.2%, or $1.4 million, to $12.9 million for the fiscal year ended October 31, 2025, compared with $11.5 million for the fiscal year ended October 31, 2024, demonstrating the Company’s resilience, adaptability and maintaining profitability in a fluctuating economic environment. Specifically:
- Revenue from Wastewater Treatment Service for the fiscal year ended October 31, 2025 rose to $4.2 million from $2.5 million for the fiscal year ended October 31, 2024, reflecting a 68.7% increase as the Company successfully completed a wastewater treatment project in the current fiscal year. Cost of revenue for wastewater treatment service was $3.3 million in fiscal year 2025, an 81.1% increase from 2024. As a result, the gross profit margin was 19.7% and 25.2% for the fiscal years ended October 31, 2025 and 2024, respectively.
- Revenue from River Water Quality Management for the fiscal year ended October 31, 2025 slightly declined to $6.6 million, a 3.6% decrease from $6.9 million in fiscal year 2024.
- Revenue from Product Sales for the fiscal year ended October 31, 2025 also slightly declined by 4.6% to $2.1 million, down from $2.2 million in fiscal year 2024. Some of the Company’s regular customers’ procurement demand dropped off due to the reduction of their river water quality management projects, so there was a slight drop on the product sales revenues. Gross profit for product sales for the fiscal year ended October 31, 2025 increased by 4.4% from the prior year, and gross profit margin was 39.1% and 35.8% for the fiscal years ended October 31, 2025 and 2024, respectively.
- Other Related Revenues increased by 344.4% to $74,218 for the fiscal year ended October 31, 2025, from $16,700 for the prior year. Gross profit margin was 6.46% for the fiscal year ended October 31, 2025.
Cost of Revenue
Total cost of revenue for the fiscal years ended October 31, 2025, and 2024, was $9.6 million and $8.3 million, respectively. The increase in cost of revenues is a direct result of the Company’s increase of revenues.
Gross Profit and Margin
Gross profit for the year ended October 31, 2025, was $3.4 million, remaining relatively stable compared with fiscal year 2024. Gross margin declined to 26.2% in fiscal year 2025 from 27.8% in fiscal year 2024, 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 increased $2.8 million, or 375.4% to $3.5 million for the year ended October 31, 2025. Higher revenues drove a $0.4 million increase in selling expenses, while general and administrative costs grew by $2.1 million, mainly from a $0.9 million rise in the provision for credit losses, $0.3 million higher salary and welfare costs, and $0.9 million more in consultant and service fees. Research and development spending increased by $0.3 million, primarily for engagements with external research institutions.
Net income (loss)
As a result of the factors described above, net loss for the fiscal years ended October 31, 2025 was $322,202, compared to net income of $2.1 million for the fiscal year 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 CONSOLIDATED BALANCE SHEETS (Stated in US dollars, except for share and per share data) | ||||||||
| As of October 31, 2025 | As of October 31, 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 572,807 | $ | 407,031 | ||||
| Accounts receivable, net | 12,382,623 | 8,702,303 | ||||||
| Prepayment, net | — | 7,699 | ||||||
| Prepaid expenses, current | 1,963,359 | — | ||||||
| Other receivables | 5,073 | 11,410 | ||||||
| Contract assets | 1,158,370 | 603,979 | ||||||
| Due from related parties | 490 | 40,154 | ||||||
| Inventories | 128 | 134 | ||||||
| Interest receivable | 10,500 | — | ||||||
| Total current assets | 16,093,350 | 9,772,710 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Deferred offering costs | 19,884 | 967,793 | ||||||
| Prepaid expenses, non-current | 105,000 | — | ||||||
| Loan receivable | 350,000 | — | ||||||
| Operating lease assets, net | 154,556 | 67,934 | ||||||
| Finance lease assets, net | — | 43,520 | ||||||
| Property and equipment, net | 201,539 | 242,185 | ||||||
| Intangible assets, net | 5,738 | 6,088 | ||||||
| Deferred tax asset | 248,908 | 136,799 | ||||||
| Total non-current assets | 1,085,625 | 1,464,319 | ||||||
| TOTAL ASSETS | $ | 17,178,975 | $ | 11,237,029 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 3,175,565 | $ | 1,851,723 | ||||
| Advance from Customers | 246 | — | ||||||
| Due to related parties | — | 63,222 | ||||||
| Payroll payable | 15,009 | 23,401 | ||||||
| Tax payables | 1,138,911 | 821,010 | ||||||
| Other payables | 5,005,375 | 3,353,963 | ||||||
| Finance lease liabilities – current | — | 21,893 | ||||||
| Operating lease liabilities – current | 52,217 | 6,382 | ||||||
| Estimated warranty liabilities | 9,650 | 64,576 | ||||||
| Total current liabilities | 9,396,973 | 6,206,170 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Operating lease liabilities – non-current | 54,331 | 13,550 | ||||||
| Total non-current liabilities | 54,331 | 13,550 | ||||||
| TOTAL LIABILITIES | 9,451,304 | 6,219,720 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Class A Ordinary shares (US$0.0001 par value, 495,000,000 shares authorized, 11,250,000 and 10,000,000 shares issued and outstanding as of October 31, 2025 and 2024, respectively) | 1,125 | 1,000 | ||||||
| Class B Ordinary shares (US$0.0001 par value, 5,000,000 shares authorized, 5,000,000 shares issued and outstanding as of October 31, 2025 and 2024, respectively) | 500 | 500 | ||||||
| Subscription receivable | (1,500 | ) | (1,500 | ) | ||||
| Additional paid-in capital | 4,222,882 | 1,210,094 | ||||||
| Statutory reserve | 512,732 | 402,621 | ||||||
| Retained earnings | 3,118,706 | 3,551,019 | ||||||
| Accumulated other comprehensive loss | (126,774 | ) | (146,425 | ) | ||||
| Total shareholders’ equity | 7,727,671 | 5,017,309 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 17,178,975 | $ | 11,237,029 | ||||
| DECENT HOLDING INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE (LOSS) INCOME (Stated in US dollars, except for share and per share data) | ||||||||||||
| For The Years Ended October 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| REVENUE | ||||||||||||
| Wastewater treatment revenue | $ | 4,163,965 | $ | 2,468,097 | $ | 2,355,126 | ||||||
| River water quality management revenue | 6,619,693 | 6,864,631 | 4,436,214 | |||||||||
| Product sales revenue | 2,091,469 | 2,192,864 | 2,648,445 | |||||||||
| Others | 74,218 | 16,700 | 7,549 | |||||||||
| TOTAL REVENUE | 12,949,345 | 11,542,292 | 9,447,334 | |||||||||
| COST OF REVENUE | ||||||||||||
| Wastewater treatment revenue | 3,341,944 | 1,845,434 | 1,841,604 | |||||||||
| River water quality management revenue | 4,878,220 | 5,075,552 | 3,165,712 | |||||||||
| Product sales revenue | 1,273,157 | 1,408,894 | 1,224,396 | |||||||||
| Others | 69,423 | — | — | |||||||||
| TOTAL COST OF REVENUE | 9,562,744 | 8,329,880 | 6,231,712 | |||||||||
| GROSS PROFIT | 3,386,601 | 3,212,412 | 3,215,622 | |||||||||
| OPERATING EXPENSES | ||||||||||||
| Selling expenses | 446,718 | 16,489 | 70,128 | |||||||||
| General and administrative expenses | 2,776,341 | 662,158 | 851,130 | |||||||||
| Research and development expenses | 302,118 | 28,981 | 122,441 | |||||||||
| Impairment loss | — | 33,841 | — | |||||||||
| Total operating expenses, net | 3,525,177 | 741,469 | 1,043,699 | |||||||||
| NET (LOSS) PROFIT FROM OPERATIONS | (138,576 | ) | 2,470,943 | 2,171,923 | ||||||||
| OTHER INCOME (EXPENSES) | ||||||||||||
| Interest income | 14,616 | 12,343 | 5,420 | |||||||||
| Interest expense | — | — | (6,017 | ) | ||||||||
| Other income | 4,658 | 851 | 5,214 | |||||||||
| Other expense | — | (13 | ) | — | ||||||||
| Total other income | 19,274 | 13,181 | 4,617 | |||||||||
| NET (LOSS) INCOME BEFORE TAXES | (119,302 | ) | 2,484,124 | 2,176,540 | ||||||||
| Income tax expenses | 202,900 | 380,767 | 316,927 | |||||||||
| NET (LOSS) INCOME | (322,202 | ) | 2,103,357 | 1,859,613 | ||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
| Foreign currency translation adjustment | 19,651 | 99,298 | (67,065 | ) | ||||||||
| COMPREHENSIVE (LOSS) INCOME | $ | (302,551 | ) | $ | 2,202,655 | $ | 1,792,548 | |||||
| Weighted average shares outstanding during the year – basic and diluted | 16,250,000 | 15,000,000 | 15,000,000 | |||||||||
| (Loss) Earnings per Ordinary Share – basic and diluted | $ | (0.02 | ) | $ | 0.14 | $ | 0.12 | |||||
| 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, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net income | $ | (322,202 | ) | $ | 2,103,357 | $ | 1,859,613 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||
| Provision for credit losses | 842,339 | (95,193 | ) | 132,561 | ||||||||
| Provision for inventory obsolescence | — | 185 | 26,585 | |||||||||
| Gain from the disposal of property and equipment | — | — | (5,214 | ) | ||||||||
| Depreciation and amortization | 70,497 | 76,594 | 45,455 | |||||||||
| Impairment of property and equipment | — | 33,841 | — | |||||||||
| Amortization of finance lease assets | 13,493 | 14,781 | 15,098 | |||||||||
| Non-cash operating lease expenses | 54,501 | 53,044 | 49,446 | |||||||||
| Deferred income tax effect | (110,563 | ) | 10,054 | (27,991 | ) | |||||||
| Estimated warranty expenses (reversal) | (54,185 | ) | 36,971 | 27,462 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (4,471,382 | ) | (6,318,575 | ) | (626,233 | ) | ||||||
| Prepayment | — | 544,461 | 1,626,312 | |||||||||
| Prepaid expense | (2,060,278 | ) | — | — | ||||||||
| Other receivables | 6,252 | 12,393 | (15,197 | ) | ||||||||
| Contract assets | (546,755 | ) | (450,769 | ) | (150,063 | ) | ||||||
| Due from related party | (58 | ) | 96 | 7,995 | ||||||||
| Inventories | 5 | (127 | ) | 1,775,773 | ||||||||
| Other assets | — | 16,178 | (16,457 | ) | ||||||||
| Tax payables | 313,463 | 370,714 | 344,918 | |||||||||
| Other payables | 1,628,472 | 1,540,827 | 1,015,988 | |||||||||
| Accounts payable | 1,305,885 | 1,745,087 | 87,085 | |||||||||
| Advance from customers | 243 | — | (4,591,413 | ) | ||||||||
| Operating lease liabilities | (54,501 | ) | (53,044 | ) | (52,396 | ) | ||||||
| Amount due to related parties | (62,367 | ) | (20,643 | ) | 56,628 | |||||||
| Payroll payable | (8,416 | ) | 17,446 | (1,709 | ) | |||||||
| CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (3,455,557 | ) | (362,322 | ) | 1,584,246 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
| Purchase of property and equipment | (589 | ) | (78,133 | ) | (153,794 | ) | ||||||
| Loan made to third parties | (360,500 | ) | — | — | ||||||||
| Loan made to related parties | — | (39,348 | ) | — | ||||||||
| Repayment from related parties | 39,186 | — | 10,759 | |||||||||
| CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (321,903 | ) | (117,481 | ) | (143,035 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Offering cost paid | (1,037,551 | ) | (417,487 | ) | (207,969 | ) | ||||||
| Repayment of bank loans | — | — | (1,867,293 | ) | ||||||||
| Principal payment for obligation under finance leases | (21,598 | ) | (23,659 | ) | (24,067 | ) | ||||||
| Proceeds from related parties | — | — | 132,084 | |||||||||
| Repayment to related parties | — | (25,468 | ) | (133,924 | ) | |||||||
| Gross proceeds from offering | 5,000,000 | — | — | |||||||||
| CASH USED IN FINANCING ACTIVITIES | 3,940,851 | (466,614 | ) | (2,101,169 | ) | |||||||
| EFFECT OF EXCHANGE RATE ON CASH | 2,385 | 27,990 | 20,058 | |||||||||
| NET CHANGE IN CASH | 165,776 | (918,427 | ) | (639,900 | ) | |||||||
| CASH AT BEGINNING OF YEAR | 407,031 | 1,325,458 | 1,965,358 | |||||||||
| CASH AT END OF YEAR | $ | 572,807 | $ | 407,031 | $ | 1,325,458 | ||||||
| SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
| Cash paid during the year for: | ||||||||||||
| Income taxes | $ | — | $ | — | $ | — | ||||||
| Interest | $ | — | $ | — | $ | 6,017 | ||||||
| NON-CASH TRANSACTIONS | ||||||||||||
| Operating lease assets obtained in exchange for lease obligations | $ | 139,933 | $ | — | $ | 32,742 | ||||||
| Reclassification from finance lease assets to fixed assets at lease maturity | (29,439 | ) | — | — | ||||||||
