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 ResultsTotal revenueTotal 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 RevenueTotal 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 MarginGross 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 ExpensesTotal 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 StatementThis 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 IncConnie Kang, PartnerEmail: [email protected]Tel: +86 1381 185 7742 (CN)
DECENT HOLDING INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Stated in US dollars, except for share and per share data)
As ofOctober 31,2025
As ofOctober 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 SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE (LOSS) INCOME(Stated in US dollars, except for share and per share data)
