CDT Environmental Technology Investment Holdings Limited Files Annual Report on Form 20-F
CDT Environmental Technology Investment Holdings (NASDAQ: CDTG) filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The report shows revenue growth of 18.6% to $34.2 million and a net income increase of 34.6% to $7.0 million, or $0.81 per share. Gross profit also rose by 11.0% to $11.4 million. Operating expenses decreased by 28.9% to $2.8 million. CDT announced three new patents featuring AI-powered intelligent waste-sorting technologies. The company expects 2024 revenues between $42.5 million and $47.0 million, and net income between $8.7 million and $10.2 million.
- Revenue increased by 18.6% to $34.2 million in 2023.
- Net income rose by 34.6% to $7.0 million, or $0.81 per share.
- Gross profit increased by 11.0% to $11.4 million.
- Operating expenses decreased by 28.9% to $2.8 million.
- Working capital almost doubled to $24.2 million from $12.9 million.
- Three new AI-powered intelligent waste-sorting technology patents announced.
- Significant ongoing projects in Lianjiang and Wuyishan with $23.2 million in contract revenue to be recognized.
- New projects, including an $11.7 million contract in Jianyang District, are coming online.
- Forecasted 2024 revenues are between $42.5 million and $47.0 million.
- Forecasted 2024 net income is between $8.7 million and $10.2 million.
- No negative aspects were reported in the press release.
Insights
The financial results from CDT Environmental Technology Investment Holdings Limited are highly encouraging. With revenues increasing by 18.6% year-over-year to $34.2 million and net income rising by 34.6% to $7.0 million, the company demonstrates robust financial health and growth. Interestingly, the decrease in operating expenses by 28.9% is particularly noteworthy, indicating operational efficiency improvements despite a challenging economic environment. Such efficiencies typically bode well for the company's future profitability and suggest strong managerial execution.
The company's working capital nearly doubled to $24.2 million, compared to $12.9 million the previous year. This significant increase in liquidity enhances CDT's ability to invest in new projects and technologies, underscoring a solid financial foundation for future growth. Investors should consider the potential for sustained revenue and net income growth, especially with the projected earnings for 2024 ranging from
Given the company's consistent financial performance and strategic investments, this report signals a positive trajectory for CDT, bolstering investor confidence in its long-term viability.
CDT's performance should be viewed in the context of the larger waste treatment market, which continues to grow as environmental regulations tighten and sustainability becomes a key priority globally. The revenue growth of over
The company’s introduction of three new patents for AI-powered intelligent waste-sorting technologies is an exciting development. These technologies could significantly enhance operational efficiencies and reduce costs, while also opening new revenue streams. This kind of innovative leap aligns well with the market trends towards automation and smart technology integration in waste management.
Investors should consider the long-term potential of such technological advancements, as they can lead to a substantial competitive edge and create barriers for new entrants in the market.
Reports Second Consecutive Year of Revenue Growth and Profitability
SHENZHEN, China, May 15, 2024 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holdings Limited (NASDAQ: CDTG) (“CDT”), a leading provider of waste treatment systems and services throughout China, today announces that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2023 with the U.S. Securities and Exchange Commission (the “SEC”) on May 15, 2024. The annual report on Form 20-F, which contains CDT’s audited consolidated financial statements, can be accessed through the SEC’s website at www.sec.gov or CDT’s website at https://www.cdthb.cn.
CDT will provide a hard copy of its annual report on Form 20-F, containing CDT’s audited consolidated financial statements, free of charge, to its shareholders upon request. To request a hard copy, shareholders should email a written request to investors@cdthb.cn.
Full Year 2023 Financial Highlights (comparisons are with the 2022 year, unless otherwise noted):
- Revenues increased to
$34.2 million , representing a year-over-year increase of18.6% - Gross profit rose to
$11.4 million , or33.3% of sales, representing a year-over-year increase of11.0% - Operating expenses were
$2.8 million , or8.2% of sales, representing a year-over-year decrease of$1.1 million , or28.9% - Net income of
$7.0 million , or$0.81 per share, compared to$5.2 million , or$0.63 per share, representing a year-over-year increase of34.6% - Working capital of
$24.2 million compared to$12.9 million
Subsequent to 2023 year-end:
- Announced three new patents that feature new AI-powered intelligent waste-sorting technologies
“Following our IPO just a few weeks ago, we are pleased to report our third consecutive year of growth at both the top- and bottom-lines, with fundamentals continuing to trend well for our shareholders,” remarked Yunwu Li, Chief Executive Officer of CDT. “The market demand continues to support the growth of our business, and indeed, we are proud of the consistent progress we have made since the lifting of COVID-19 related operating restrictions throughout our key markets. Sales, gross profit, and net profit, our key performance indicators all were higher, and reflect excellent execution from our team, as we complete existing projects and add on new projects. Sewage treatment systems revenue was up over
Based on current visibility, management currently expects revenues for the full year 2024 to be in the range of
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.
Forward Looking Statements
This press release contains forward-looking statements that are based on the beliefs and assumptions of the management of CDT and on information currently available to such management. These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond CDT’s control. Words such as “will,” “future,” “expects,” “believes,” and “intends,” or similar expressions, are intended to identify forward-looking statements. All statements, other than statements of historical fact, contained in this press release, including statements regarding future events, future financial performance, business strategy and plans, and objectives of CDT for future operations, are forward-looking statements. Although CDT does not make forward-looking statements unless it believes it has a reasonable basis for doing so, CDT cannot guarantee their accuracy. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievements of CDT and its markets to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on any forward-looking statement. CDT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Investor and Media Contact
United States
Core IR
Peter Seltzberg, SVP Investor Relations and Corporate Advisory
investors@cdthb.cn
212-655-0924
www.CoreIR.com
| CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
| For the Years Ended | ||||||||||||
| December 31, | ||||||||||||
| 2023 | 2022 | 2021 | ||||||||||
| REVENUES | ||||||||||||
| Sewage treatment systems | $ | 32,267,593 | $ | 26,552,481 | $ | 20,272,996 | ||||||
| Sewage treatment services and others | 1,942,326 | 2,296,881 | 3,283,824 | |||||||||
| Total revenues | 34,209,919 | 28,849,362 | 23,556,820 | |||||||||
| COST OF REVENUES | ||||||||||||
| Sewage treatment systems | 21,630,216 | 17,170,669 | 12,816,882 | |||||||||
| Sewage treatment services and others | 1,194,817 | 1,425,538 | 2,245,608 | |||||||||
| Total cost of revenues | 22,825,033 | 18,596,207 | 15,062,490 | |||||||||
| GROSS PROFIT | 11,384,886 | 10,253,155 | 8,494,330 | |||||||||
| OPERATING EXPENSES: | ||||||||||||
| Selling | 106,147 | 164,583 | 177,147 | |||||||||
| General and administrative | 2,674,519 | 3,150,512 | 2,400,318 | |||||||||
| Research and development | 80,948 | 112,668 | 136,690 | |||||||||
| (Recovery from) Provision for credit loss, net | (88,221 | ) | 471,454 | (1,865,622 | ) | |||||||
| Total operating expenses | 2,773,393 | 3,899,217 | 848,533 | |||||||||
| INCOME FROM OPERATIONS | 8,611,493 | 6,353,938 | 7,645,797 | |||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||
| Interest income | 15,510 | 13,437 | 89,510 | |||||||||
| Interest expense | (106,130 | ) | (64,658 | ) | (68,656 | ) | ||||||
| Other (expense) income, net | (92,939 | ) | 93,035 | 119,419 | ||||||||
| Total other (expense) income, net | (183,559 | ) | 41,814 | 140,273 | ||||||||
| INCOME BEFORE INCOME TAXES | 8,427,934 | 6,395,752 | 7,786,070 | |||||||||
| INCOME TAXES EXPENSE | 1,403,880 | 1,152,963 | 1,207,810 | |||||||||
| NET INCOME | 7,024,054 | 5,242,789 | 6,578,260 | |||||||||
| Less: net loss attributable to noncontrolling interest | (393,652 | ) | (539,229 | ) | (197,479 | ) | ||||||
| NET INCOME ATTRIBUTABLE TO CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED | $ | 7,417,706 | $ | 5,782,018 | $ | 6,775,739 | ||||||
| NET INCOME | 7,024,054 | 5,242,789 | 6,578,260 | |||||||||
| FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (497,722 | ) | (2,110,311 | ) | 428,196 | |||||||
| TOTAL COMPREHENSIVE INCOME | 6,526,332 | 3,132,478 | 7,006,456 | |||||||||
| Less: Comprehensive loss attributable to noncontrolling interest | (372,574 | ) | (599,166 | ) | (116,532 | ) | ||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED | $ | 6,898,906 | $ | 3,731,644 | $ | 7,122,988 | ||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||||||
| Basic and diluted | 9,200,000 | 9,200,000 | 9,200,000 | |||||||||
| EARNINGS PER SHARE | ||||||||||||
| Basic and diluted | $ | 0.81 | $ | 0.63 | $ | 0.74 | ||||||
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