CDT Environmental Technology Reports 2024 Unaudited Interim Financial Results and Provides Business Updates

Revenue of $12.7 million and earnings per share of $0.14 impacted by reduced project activity due to a slowdown in the PRC economy

SHENZHEN, China, Dec. 27, 2024 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holdings Limited $(CDTG)$ ("CDT", the "Company", or "we"), a leading provider of waste treatment systems and services throughout China, today reports its unaudited interim financial results for the six months ended June 30, 2024 and provides updates on key business developments and outlook.

All amounts are expressed in US dollars unless otherwise stated.

2024 Interim Financial Results and Business Updates

   -- Revenues decreased by approximately $2.8 million, or 18.1%, to 
      approximately $12.7 million for the six months ended June 30, 2024 from 
      approximately $15.5 million for the six months ended June 30, 2023. This 
      decrease was primarily attributed to ongoing work related to one new 
      project during the six months ended June 30, 2024, compared to two new 
      projects in the same period of 2023, and fewer projects in progress or 
      completed in 2024. The reduced project activity was largely driven by 
      decreased demand for the Company's services due to the economic downturn 
      in the People's Republic of China (the "PRC"). 
 
   -- Gross profit decreased by approximately $0.3 million, or 6.7%, to 
      approximately $4.5 million for the six months ended June 30, 2024 from 
      approximately $4.8 million for the six months ended June 30, 2023. The 
      decrease in gross profit is primarily due to a decrease in sewage 
      treatment systems revenue. 
 
   -- For the six months ended June 30, 2024 and 2023, overall gross profit 
      percentage was 35.5% and 31.2%, respectively. The increase in gross 
      profit percentage of 4.3% was primarily due to the following: (1) a 3.6% 
      increase from sewage treatment systems driven by a decrease in material 
      costs resulting from temporary price fluctuations, and (2) a 17.2% 
      increase in gross profit from sewage treatment services, mainly due to 
      reduced labor costs following the disposal of two non-profitable 
      subsidiaries. 
 
   -- Total operating expenses increased by approximately $0.2 million, or 7.8%, 
      to approximately $2.7 million for the six months ended June 30, 2024 from 
      approximately $2.5 million for the six months ended June 30, 2023. 
 
   -- 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 from approximately $1.8 million, or $0.22 per share, for 
      the six months ended June 30, 2023. The reduction in net income was 
      primarily attributable to decreased demand for the Company's services due 
      to the economic downturn in the PRC. 

Yunwu Li, CEO of CDT, said "Amidst the challenging economic and market conditions, our revenue declined in the first half of fiscal year 2024, primarily due to the overall slowing of the economy in the PRC and the delay in certain projects. The recent PRC economic data indicates that while many positive stimulus policies have been announced, they have yet to fully restore confidence in the general economy and for new infrastructure projects. Despite these challenges, we successfully maintained a relatively stable revenue stream from our core operations, which remains the backbone of our income. We are also pleased to report that we were able to sustain a gross margin of 35.5%, driven by our established business strategies and targeted restructuring efforts. Our ongoing cost reduction initiatives continue with a focus on further streamlining operations and enhancing efficiency. Looking ahead, we expect that revenue growth and profitability will inevitably face pressure due to the circumstances detailed in our first half 2024 results."

Yunwu Li, added, "We have continued to successfully navigate near-term challenges related to softening economic conditions by delivering excellent customer service and by driving productivity. Our focus remains on investing for the future and positioning ourselves to capitalize on opportunities associated with favorable, long-term secular trends including water conservation, safety and regulation. Looking forward, we remain confident in our business model and committed to translating our efforts into sustained growth and creating value for our shareholders."

Updated Full Year 2024 Outlook

   -- Based on current visibility, management expects full-year 2024 revenue to 
      be in the range of $30.2 to $32.7 million, with net income in the range 
      of $6.5 to $7.9 million. The change in guidance from the previous range 
      of revenue of $42.5 to $47.0 million and net income of $8.7 to $10.2 
      million reflects the slowdown in the PRC economy and delay of certain 
      projects. 

About CDT Environmental Technology Investment Holdings Limited

CDT, headquartered in Shenzhen, China, is a leading national player in China's waste treatment sector that designs, develops, manufactures, sells, installs, operates and maintains sewage treatment systems and provides sewage treatment services in China, and is dedicated to promoting sustainable development through innovative solutions. Founded by pioneers in waste treatment, CDT aims to advance next-generation technologies that directly address environmental challenges and promote sustainable solutions. CDT is a recognized brand in China and is committed to innovation and customer satisfaction.

CDT's mission is to help its customers achieve their critical infrastructure objectives while enabling positive change in technological environmental protection. It collaborates with industry leaders, environmental experts, and stakeholders to develop and implement advanced waste treatment solutions. Recently listed on the Nasdaq Capital Market, CDT is a prominent player in the waste treatment market, capable of providing comprehensive solutions to diverse customer needs, and has completed more than 150 plants across China.

For more information, visit CDT's website at https://www.cdthb.cn

 
       CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED 
                            AND SUBSIDIARIES 
 
         UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
                        AND COMPREHENSIVE INCOME 
 
                                          For the Six Months Ended 
                                                  June 30, 
                                        ---------------------------- 
                                            2024           2023 
                                        ------------  -------------- 
 
REVENUES 
Sewage treatment systems                $12,066,255   $14,445,779 
Sewage treatment services and others        620,453     1,018,024 
                                         ----------    ---------- 
Total revenues                           12,686,708    15,463,803 
                                         ----------    ---------- 
 
COST OF REVENUES 
Sewage treatment systems                  7,869,468     9,947,063 
Sewage treatment services and others        315,405       692,580 
                                         ----------    ---------- 
Total cost of revenues                    8,184,873    10,639,643 
                                         ----------    ---------- 
 
GROSS PROFIT                              4,501,835     4,824,160 
                                         ----------    ---------- 
 
OPERATING EXPENSES: 
Selling                                      25,725        51,435 
General and administrative                1,361,481     1,292,367 
Research and development                     34,706        42,829 
Stock-based compensation                    454,250            -- 
Provision for credit loss, net              795,757     1,090,957 
                                         ----------    ---------- 
Total operating expenses                  2,671,919     2,477,588 
                                         ----------    ---------- 
 
INCOME FROM OPERATIONS                    1,829,916     2,346,572 
                                         ----------    ---------- 
 
OTHER INCOME (EXPENSE) 
Interest income                                 138         7,448 
Interest expense                            (69,446)      (47,301) 
Other (expense) income, net                  58,212       (69,240) 
                                         ----------    ---------- 
Total other expense, net                    (11,096)     (109,093) 
                                         ----------    ---------- 
 
INCOME BEFORE INCOME TAXES                1,818,820     2,237,479 
 
INCOME TAXES EXPENSE                        401,401       429,197 
                                         ----------    ---------- 
 
NET INCOME                                1,417,419     1,808,282 
 
Less: net loss attributable to 
 noncontrolling interest                    (51,609)     (225,703) 
                                         ----------    ---------- 
 
NET INCOME ATTRIBUTABLE TO 
CDT ENVIRONMENTAL TECHNOLOGY 
 INVESTMENT HOLDINGS LIMITED            $ 1,469,028   $ 2,033,985 
                                         ==========    ========== 
 
NET INCOME                                1,417,419     1,808,282 
 
FOREIGN CURRENCY TRANSLATION 
 ADJUSTMENT                                (249,654)   (1,011,712) 
                                         ----------    ---------- 
 
TOTAL COMPREHENSIVE INCOME                1,167,765       796,570 
 
Less: Comprehensive loss attributable 
 to noncontrolling interest                 (54,451)     (222,237) 
                                         ----------    ---------- 
 
COMPREHENSIVE INCOME ATTRIBUTABLE TO 
CDT ENVIRONMENTAL TECHNOLOGY 
 INVESTMENT HOLDINGS LIMITED            $ 1,222,216   $ 1,018,807 

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December 27, 2024 08:30 ET (13:30 GMT)