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: [email protected]
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 ) — —