SHENZHEN, China, June 20, 2025 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holdings Limited (NASDAQ:CDTG) (“CDT” or the “Company”), a leading provider of waste treatment systems and services throughout China, today announced that it received a notification letter, dated June 18, 2025 (the “Notification Letter”), from the Listing Qualifications Department of The Nasdaq Stock Market Inc. (“Nasdaq”) indicating that the Company is no longer in compliance with the minimum bid price requirement se ...

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]

Core Insights - CDT Environmental Technology Investment Holdings Limited has signed a strategic cooperation agreement with a subsidiary of a large state-owned construction group in China, which is ranked among the top 40 contractors globally according to ENR's 2023 list [1][2] - The agreement involves planning and constructing infrastructure projects in Fuzhou New Area, with an estimated total value exceeding RMB 3 billion, contributing approximately RMB 1 billion net to CDT, and is expected to increase CDT's revenue by over 50% in the next 3-5 years [2][4] - Fuzhou New Area, established in 2015, is a significant state-level district aimed at promoting urbanization and integrated development, covering 800 square kilometers with a population of 1.55 million [2][5] Company Positioning - The collaboration will leverage the strengths of both parties, with CDT providing local market influence and the state-owned builder offering financial resources for large projects, expected to create synergies [3][4] - This partnership is seen as a crucial step for CDT in enhancing its market position and is anticipated to lead to further collaborations in other regions of China [4][5] - CDT is recognized as a leading player in China's waste treatment sector, focusing on innovative solutions and sustainable development, having completed over 150 plants across the country [6][7]

Core Insights - CDT Environmental Technology Investment Holdings Limited has formed a consortium with a subsidiary of a Fortune Global 500 company to bid for a sewage treatment plant project in Hengqin, China, with a total contracted value of approximately 1.16 billion Yuan (USD $160 million) [1][2][3] Company Overview - CDT is a leading provider in China's waste treatment sector, focusing on designing, developing, manufacturing, and maintaining sewage treatment systems [4][5] - The company aims to promote sustainable development through innovative solutions and has completed over 150 plants across China [5] Project Details - The Hengqin project consists of three phases, ultimately establishing a 400,000 tons/day water purification facility over 16.4 hectares, with Phase 1 targeting an initial treatment capacity of 100,000 tons/day [2] - The project's funding is guaranteed by local municipalities, and construction timelines will depend on various preparatory factors [2] Consortium Structure - The consortium will leverage the strengths of both companies by splitting project scopes, with one party potentially leading civil works and the other focusing on equipment supply and process engineering [3] - This strategic partnership enhances the consortium's prospects for securing the contract, combining CDT's waste treatment expertise with its partner's engineering capabilities [3]

Core Viewpoint - CDT Environmental Technology Investment Holdings Limited reported strong financial performance for the fiscal year 2023, with significant growth in revenues, gross profit, and net income, alongside positive expectations for 2024 [2][3][4]. Financial Performance - Revenues for 2023 reached $34.2 million, an increase of 18.6% year-over-year [2]. - Gross profit was $11.4 million, representing 33.3% of sales, with an 11.0% increase from the previous year [2]. - Operating expenses decreased to $2.8 million, or 8.2% of sales, down by $1.1 million, or 28.9% year-over-year [2]. - Net income for 2023 was $7.0 million, or $0.81 per share, reflecting a 34.6% increase compared to $5.2 million, or $0.63 per share in 2022 [2][10]. - Working capital improved to $24.2 million from $12.9 million [2]. Business Developments - The company announced three new patents for AI-powered intelligent waste-sorting technologies [3]. - Sewage treatment systems revenue increased by over 20% for the year, with significant projects in Lianjiang and Wuyishan progressing [3]. - Upcoming projects include an $11.7 million contract in Jianyang District, Nanping City, China [3]. Future Outlook - Management anticipates revenues for 2024 to be between $42.5 million and $47.0 million, with net income expected to range from $8.7 million to $10.2 million, indicating a growth of 30% for revenue and 35% for net income at the midpoint [4]. Company Overview - CDT is a leading provider in China's waste treatment sector, focusing on innovative solutions for sustainable development [5][6]. - The company has completed over 150 plants across China and aims to address environmental challenges through advanced technologies [6].

Core Insights - CDT Environmental Technology Investment Holdings Limited has been granted three patents by the China National Intellectual Property Administration, enhancing its waste management technologies [1][2][3] Patent Details - Patent 202322542684.5 is an energy-saving sludge drying device aimed at reducing energy consumption and secondary pollution during the drying process [1] - Patent 202322542851.6 focuses on a wastewater treatment device designed to efficiently remove nitrogen and phosphorus, addressing chemical wastage issues [2] - Patent 202322542588.0 is a highly efficient anaerobic fermentation device developed using AI-powered waste sorting technology, aimed at producing organic slurry and high-concentration liquid [2] Company Overview - CDT is a leading player in China's waste treatment sector, involved in the design, development, manufacturing, and maintenance of sewage treatment systems [4][5] - The company aims to promote sustainable development through innovative waste treatment solutions and has completed over 150 plants across China [5] Leadership and Innovation - The CEO of CDT emphasized the company's commitment to innovation and addressing common wastewater management issues through advanced technologies [3]

Core Points - CDT Environmental Technology Investment Holdings Limited has been awarded a contract valued at RMB 85 million (approximately $11.7 million) for a water treatment project in Jianyang District, Nanping City, China [1] - The project aims to manage domestic sewage, curb pollution, and support rural environmental improvements, covering 11 towns [1] - Initial design and engineering work is currently underway, with project completion scheduled for the end of 2025 [1] Company Overview - CDT is a leading provider in China's waste treatment sector, focusing on designing, developing, manufacturing, and maintaining sewage treatment systems [3] - The company is dedicated to promoting sustainable development through innovative solutions and has completed over 150 plants across China [4] - Recently listed on the Nasdaq Capital Market, CDT aims to advance next-generation technologies to address environmental challenges [4] Strategic Commitment - The collaboration for the water treatment project represents CDT's commitment to sustainable development and innovative solutions [2] - The CEO of CDT emphasized that this collaboration marks a significant milestone in establishing partnerships for environmentally-responsible infrastructure [2] - The company aims to leverage this project to unlock new development opportunities and drive sustainable practices [2]