Decent Holding Inc. (NASDAQ:DXST), a China-based wastewater treatment services provider, reported its financial results for the fiscal year ended October 31, 2025, highlighting strong revenue growth driven primarily by its wastewater treatment segment.
Revenue growth led by wastewater projects
Total revenue for fiscal year 2025 rose 12.2% year over year to $12.9 million, compared with $11.5 million in fiscal 2024. The increase was largely fueled by a surge in wastewater treatment services, which climbed 68.7% to $4.2 million from $2.5 million in the previous year following the completion of a major project during the period.
Revenue from river water quality management totaled $6.6 million, a slight 3.6% decline from $6.9 million in fiscal 2024. Product sales also slipped modestly, falling 4.6% to $2.1 million from $2.2 million as some recurring customers reduced procurement amid a slowdown in their own river management projects.
Other related revenue rose sharply to $74,218, up 344.4% from $16,700 in the prior year.
Profitability pressured by cost increases
Gross profit for the year reached $3.4 million, representing a 5.4% increase compared with the previous year. However, the gross margin declined to 26.2% from 27.8% as revenue shifted toward lower-margin wastewater service projects.
Total cost of revenue increased to $9.6 million from $8.3 million, reflecting higher activity levels across the company’s project portfolio.
Operating expenses climbed significantly, rising 375.4% year over year to $3.5 million. Selling expenses increased by $0.4 million due to higher revenue, while general and administrative costs rose by $2.1 million. The increase was mainly driven by a $0.9 million rise in provisions for credit losses, $0.3 million in higher salary and welfare costs, and $0.9 million more spent on consulting and service fees. Research and development spending also increased by $0.3 million as the company engaged external research institutions.
As a result, Decent Holding reported a net loss of $322,202 for fiscal 2025, compared with net income of $2.1 million in fiscal 2024.
CEO commentary
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.”
He added: “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, Sun said: “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.”
About Decent Holding Inc.
Decent Holding Inc. provides wastewater treatment services, including industrial wastewater purification, ecological river restoration, and river ecosystem management aimed at improving water quality. Through its subsidiary, Shandong Dingxin Ecology Environmental Co., Ltd., the company also develops microbial products used for pollutant removal and water quality enhancement.