Decent Holding Inc. Reports Full Year 2024 Financial Results

About this update from Decent Holding Inc.

YANTAI, China, March 10, 2025 (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, 2024. Full Year 2024 Financial Highlights Mr. Dingxin Sun, Chairman of the Company commented: “In fiscal year 2024, we achieved a significant 22.2% increase in total revenue, which reflects our resilience and adaptability in navigating a dynamic economic environment. This growth was driven by successful strategies across our business segments, particularly in wastewater treatment and river water quality management.” “Despite this positive revenue trajectory, our gross profit margin approximately to about 27.8% in fiscal year 2024. This decline was largely due to a higher proportion of revenue derived from lower-margin projects. Nevertheless, we maintained a stable gross profit of $3.2 million, underscoring our commitment to profitability even in challenging conditions. We are particularly encouraged by the 121.2% increase in other related revenues, which maintained a 100% gross profit margin. This demonstrates our ability to identify and capitalize on new opportunities without incurring additional costs.” Mr. Sun added: “Our focus on operational efficiency was reflected in the approximately 29% reduction in total operating expenses, which has been instrumental in sustaining our profitability. As a result, net income rose to $2.1 million, compared with $1.9 million in the prior year.” “Looking ahead, we remain committed to enhancing our service offerings and optimizing our revenue mix to improve margins. We plan to invest in innovative technologies and expand our market presence, particularly in high-growth areas such as sustainable water management solutions. By fostering strategic partnerships and leveraging our expertise, we aim to drive long-term growth and create additional value for our stakeholders.” Selected Financial Results Total revenue Total revenue increased by 22.2%, or $2.1 million, to $11.5 million for the fiscal year ended October 31, 2024, compared with $9.4 million for the fiscal year ended October 31, 2023, demonstrating the Company’s resilience and adaptability to maintain profitability in a fluctuating economic environment. Specifically: Cost of Revenue Total cost of revenue for the fiscal years ended October 31, 2024, and 2023, was $8.3 million and $6.2 million, respectively. The increase was driven by higher revenues and the reclassification of maintenance guarantee expenses for wastewater treatment and river water quality management projects from selling expenses to cost of revenue. Gross Profit and Margin Gross profit for the year ended October 31, 2024, was $3.2 million, remaining relatively stable compared with fiscal year 2023. Gross margin declined to 27.8% in fiscal year 2024 from 34.0% in fiscal year 2023, 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 decreased by 29.0% to $0.7 million for the fiscal year ended October 31, 2024, from $1.0 million in fiscal year 2023. The decrease is primarily attributed to a decrease in selling expenses due to reduced marketing costs from improved reputation, the reclassification of maintenance guarantee expenses to costs of revenue, and a decrease in both general and administrative expenses and research and development expenses. Net income As a result of the factors described above, net income for the fiscal years ended October 31, 2024 and 2023 was $2.1 million and $1.9 million, respectively. 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: Wealth Financial Services LLC Connie Kang, Partner Email: [email protected] Tel: +86 1381 185 7742 (CN)

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