Company leverages collaboration with Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, to convert urban and rural organic waste into green hydrogenSHENZHEN, China, Nov. 20, 2025 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holding Co., Ltd. (NASDAQ: CDTG) (the "Company" or "CDT"), an environmental company focused on urban and rural organic waste treatment, today announced a new strategic growth initiative with its official entry into the green hydrogen sector. The Company ...

SHENZHEN, China, Nov. 20, 2025 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holding Co., Ltd. (NASDAQ: CDTG) (the "Company" or "CDT"), an environmental company focused on urban and rural organic waste treatment, today announced a new strategic growth initiative with its official entry into the green hydrogen sector. The Company, building upon its initial R&D investments and collaborations with leading scientific organizations and government regulatory bodies, is positioning itself to become a ...

Group 1 - The top five gainers among Chinese concept stocks include: Hong Kong Pharmaceutical Digital Technology up 47.41%, Smart Logistics up 28.61%, Lixiang Education up 24.6%, Chengdao Environmental Technology up 19.76%, and Mercurity Fintech up 15.37% [1][1][1] Group 2 - Hong Kong Pharmaceutical Digital Technology (HKPD) closed at 1.710 with a gain of 47.41%, increasing by 0.550 and a trading volume of 2.5604 million [1][1][1] - Smart Logistics (SLGB) closed at 5.260 with a gain of 28.61%, increasing by 1.170 and a trading volume of 4.1425 million [1][1][1] - Lixiang Education (LXEH) closed at 0.5622 with a gain of 24.60%, increasing by 0.1110 and a trading volume of 12.1477 million [1][1][1] - Chengdao Environmental Technology (CDTG) closed at 0.7200 with a gain of 19.76%, increasing by 0.1188 and a trading volume of 0.0341 million [1][1][1] - Mercurity Fintech (MFH) closed at 11.260 with a gain of 15.37%, increasing by 1.500 and a trading volume of 1.8935 million [1][1][1]

Core Viewpoint - CDT Environmental Technology Investment Holdings Limited held an extraordinary general meeting (EGM) on September 23, 2025, where significant resolutions regarding share capital and amendments to the company's articles of association were passed [3][4]. Share Capital Changes - The authorized share capital of the company has been increased to US$250,000, divided into 94,000,000 class A ordinary shares and 6,000,000 class B ordinary shares [4][5]. - A total of 18,800,000 existing ordinary shares will be re-designated as class A ordinary shares, while 1,200,000 authorized but unissued ordinary shares will be cancelled and replaced with class B ordinary shares, which will have enhanced voting rights [5][6]. - The EGM saw 5,894,505 shares voted, representing approximately 47.83% of the outstanding shares as of the record date [4][6]. Company Overview - CDT is a leading provider of waste treatment systems and services in China, focusing on sustainable development through innovative solutions [7][8]. - The company has completed over 150 plants across China and aims to advance next-generation technologies to address environmental challenges [8].

Core Viewpoint - CDT Environmental Technology Investment Holdings Limited has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, but this does not lead to immediate delisting and the company has a compliance period to rectify the situation [1][2][3]. Company Compliance Status - The company was notified that its closing bid price per ordinary share has been below US$1.00 for 30 consecutive business days [1]. - CDT has an initial compliance period of 180 calendar days, until December 15, 2025, to regain compliance by achieving a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days [2]. - If compliance is not regained by the deadline, the company may be eligible for an additional 180-day compliance period if it meets other listing requirements [3]. Monitoring and Future Actions - The company plans to monitor its closing bid price and is considering options to regain compliance with Nasdaq's minimum bid price requirement [4]. - CDT is currently in compliance with all other applicable Nasdaq continued listing standards [4]. Company Overview - CDT is a leading provider in China's waste treatment sector, focusing on designing, developing, and maintaining sewage treatment systems [6][8]. - The company aims to promote sustainable development through innovative waste treatment solutions and has completed over 150 plants across China [8].

Financial Performance - Total revenues decreased by approximately $4.4 million, or 13.0%, to approximately $29.8 million for the year ended December 31, 2024, compared to approximately $34.2 million for the same period in 2023[3] - Net income decreased by approximately $5.6 million, or 80.0%, to $1.4 million for the year ended December 31, 2024, from approximately $7.0 million for the same period in 2023[3] - Gross profit margin increased to 37.4% for the year ended December 31, 2024, compared to 33.0% for the year ended December 31, 2023, reflecting improved operational efficiency[3] - Total operating expenses increased by approximately $6.5 million, or 233.5%, to approximately $9.2 million for the year ended December 31, 2024, primarily due to higher provisions for credit losses[3] Working Capital and Projects - As of December 31, 2024, working capital was approximately $26.0 million compared to $24.2 million[3] - The Company has two projects in backlog with a total tentative contracted amount of approximately $15.4 million, expected to commence in 2025[4] - The Company is in the process of acquiring three additional projects for its sewage treatment systems, anticipated to be signed by the third quarter of 2025[5] Strategic Initiatives - CDT is actively collaborating on waste-to-energy initiatives to diversify revenue streams and support sustainability goals[6] - The CEO stated that despite economic challenges, the Company achieved a 440-basis point margin expansion due to cost-saving efforts and restructuring actions[7] - CDT aims to enhance its competitive position and create new growth opportunities through continued investment in innovation and project acquisition[8]

Core Viewpoint - CDT Environmental Technology Investment Holdings Limited reported a revenue of $29.8 million and a net income of $1.4 million for the fiscal year ended December 31, 2024, reflecting a decrease due to reduced project activity amid a slowdown in the PRC economy [1][6][8]. Financial Performance - Total revenues decreased by approximately $4.4 million, or 13.0%, to approximately $29.8 million for the year ended December 31, 2024, compared to approximately $34.2 million for the same period in 2023 [6]. - Gross profit decreased by approximately $0.1 million, or 1.2%, to approximately $11.2 million for the year ended December 31, 2024, from approximately $11.4 million for the year ended December 31, 2023 [6]. - The overall gross profit margin improved to 37.4% in 2024 from 33.0% in 2023, attributed to enhanced operational efficiency [6]. - Total operating expenses increased by approximately $6.5 million, or 233.5%, to approximately $9.2 million for the year ended December 31, 2024, primarily due to increased stock-based compensation and provisions for credit losses [6]. - Net income decreased by approximately $5.6 million, or 80.0%, to $1.4 million for the year ended December 31, 2024, from approximately $7.0 million for the same period in 2023 [6]. Project Backlog and Future Opportunities - As of March 31, 2025, the company had two projects in backlog, the Xinjiang Project and Sichuan Anya Project, with a total tentative contracted amount of approximately $15.4 million [4]. - The company is in the process of acquiring three additional projects for its sewage treatment systems, expected to be signed and commenced by the third quarter of 2025 [5]. - CDT is actively pursuing new energy opportunities to diversify revenue streams and support sustainability goals, focusing on waste-to-energy initiatives [7]. Management Commentary - The CEO of CDT highlighted the economic challenges in China and project delays, which contributed to the revenue decline, but noted a significant margin expansion due to cost-saving efforts [8]. - The company is committed to identifying innovative opportunities to create new revenue streams while enhancing its core business [8]. - CDT's management expressed confidence in navigating economic cycles and positioning the company for future growth opportunities [9].

Financial Performance - Total revenues decreased by approximately $4.4 million, or 13.0%, to approximately $29.8 million for the year ended December 31, 2024, compared to approximately $34.2 million for the same period in 2023[324]. - Revenues from sewage treatment systems installations decreased by approximately $3.9 million, or 11.9%, to approximately $28.4 million for the year ended December 31, 2024[326]. - Gross profit decreased by approximately $0.1 million, or 1.2%, to approximately $11.2 million for the year ended December 31, 2024[332]. - Total operating expenses increased by approximately $6.5 million, or 233.5%, to approximately $9.2 million for the year ended December 31, 2024[334]. - Net income decreased by approximately $5.6 million, or 80.0%, to approximately $1.4 million for the year ended December 31, 2024, from approximately $7.0 million for the same period in 2023[340]. - Total revenues increased by approximately $5.4 million, or 18.6%, to approximately $34.2 million for the year ended December 31, 2023, compared to approximately $28.8 million for the same period in 2022[342]. - Revenues from sewage treatment systems increased by approximately $5.7 million, or 21.5%, to approximately $32.3 million for the year ended December 31, 2023[344]. - Gross profit increased by approximately $1.1 million, or 11.0%, to approximately $11.4 million for the year ended December 31, 2023[349]. - Total operating expenses decreased by approximately $1.1 million, or 28.9%, to approximately $2.8 million for the year ended December 31, 2023[351]. Cash Flow and Working Capital - Net cash used in operating activities was approximately $1.99 million for the year ended December 31, 2024, a decrease from $3.13 million in 2023[361]. - Working capital as of December 31, 2024, was approximately $26.0 million, with current assets of approximately $77.7 million and current liabilities of approximately $51.6 million[358]. - Net cash provided by investing activities was $545,167 in 2024, an increase from $243,586 in 2023[361]. - Net cash provided by financing activities was approximately $1.0 million for the year ended December 31, 2024, consisting of $2.5 million from loans and $4.3 million from net IPO proceeds[387]. Accounts Receivable and Credit Losses - Accounts receivable increased by approximately $23.1 million in 2024, primarily due to a longer collection cycle caused by delays in government billing approvals[366]. - Days sales outstanding (DSO) increased to 455 days by December 31, 2024, reflecting prolonged delays in the government payment approval process amid economic downturn[368]. - The allowance for doubtful accounts was 14.2% of total accounts receivable as of December 31, 2024[372]. - The allowance for credit loss against accounts receivable was $9,267,851, $3,009,363, and $3,189,642 as of December 31 for the years 2024, 2023, and 2022, representing 17.0%, 9.4%, and 13.7% of gross accounts receivable respectively[400]. Contract Assets and Liabilities - Contract assets increased by approximately $1.4 million, $13.6 million, and $12.2 million for the years ended December 31, 2024, 2023, and 2022, respectively[377]. - As of December 31, 2024, contract assets totaled approximately $40.0 million, with $29.3 million aged over 720 days[380]. - Accounts payable increased by approximately $13.0 million, $9.2 million, and $5.6 million for the years ended December 31, 2024, 2023, and 2022, respectively, primarily due to raw material purchases[384]. - Total contractual obligations as of December 31, 2024, amounted to $5,660,179, with $5,446,210 due within one year[421]. Tax and Other Expenses - Income tax expense decreased by approximately $0.9 million to approximately $0.5 million for the year ended December 31, 2024[339]. - Other expenses, net, amounted to approximately $0.2 million for the year ended December 31, 2023, compared to other income of approximately $41,000 for the same period in 2022[354]. - Income tax expense increased by approximately $0.2 million to approximately $1.4 million for the year ended December 31, 2023[355]. Research and Development - Research and development expenses were $61,786 for the year ended December 31, 2024, $80,948 for 2023, and $112,668 for 2022, indicating a continued investment in R&D to enhance market position[409]. - The company is focused on improving the efficiency of microorganisms in sewage treatment systems and exploring new technologies to enhance water treatment[408]. Company Outlook and Strategy - The company anticipates that current cash resources will be insufficient to execute its business plan for the next twelve months, raising concerns about its ability to operate as a going concern[361]. - The company plans to invest in rural sewage treatments, including building sewage treatment equipment, and explore potential mergers and acquisitions[362]. - The company has enforceable rights to payments for work performed under sewage treatment service contracts, with revenue recognized based on labor costs incurred[398]. - Provisions for estimated losses on uncompleted contracts are recorded in the period when such losses are determined, ensuring accurate financial reporting[401]. - The company has a long history of sewage treatment services, allowing for reasonable estimates of service hours and progress towards completion on fixed-price contracts[399]. - The company has elected to take advantage of the extended transition period for complying with new or revised accounting standards under the JOBS Act[419].

Core Viewpoint - CDT Environmental Technology Investment Holdings Limited reported a significant decline in revenue and net income for the first half of fiscal year 2024, primarily due to the economic downturn in China and delays in project execution [2][4]. Financial Performance - Revenues decreased by approximately $2.8 million, or 18.1%, to approximately $12.7 million for the six months ended June 30, 2024, compared to approximately $15.5 million for the same period in 2023 [3]. - Gross profit decreased by approximately $0.3 million, or 6.7%, to approximately $4.5 million, with a gross profit percentage of 35.5% for the first half of 2024, up from 31.2% in 2023 [3]. - Net income decreased by approximately $0.4 million, or 21.6%, to approximately $1.4 million, or $0.14 per share, for the six months ended June 30, 2024, down from approximately $1.8 million, or $0.22 per share, in 2023 [3][10]. Business Developments - The decrease in revenue was attributed to fewer projects in progress or completed in 2024, with only one new project compared to two in the same period of 2023 [3]. - The company maintained a gross margin of 35.5%, driven by cost reduction initiatives and restructuring efforts [4]. - Management expects full-year 2024 revenue to be in the range of $30.2 to $32.7 million, with net income projected between $6.5 to $7.9 million, reflecting a significant downward revision from previous guidance [5]. Strategic Outlook - The company aims to navigate economic challenges by focusing on customer service and productivity while investing in future opportunities related to water conservation and environmental regulations [4]. - CDT is committed to enhancing operational efficiency and sustaining growth despite the current economic pressures [4].

Core Insights - CDT Environmental Technology Investment Holdings Limited has signed a strategic cooperation framework agreement with a local high-tech company in Fujian Province to enhance its waste treatment services and market access [1][2][3] - The partnership will leverage the local partner's extensive pipeline inspection data, which includes over 4,000 kilometers of sewage pipelines mapped in 2023, to develop targeted solutions for municipal water treatment needs [2][3] - The market for water treatment in China is estimated to be approximately $20 billion per year, indicating significant growth potential for CDT through this collaboration [3] Company Overview - CDT is a leading provider of waste treatment systems and services in China, focusing on sustainable development and innovative solutions [4][5] - The company has completed over 150 sewage treatment plants across China and aims to advance next-generation technologies to address environmental challenges [5] - Recently listed on the Nasdaq Capital Market, CDT is positioned as a prominent player in the waste treatment market, collaborating with industry leaders and stakeholders [5]