CDT Environmental Technology Reports 2024 Unaudited Interim Financial Results and Provides Business Updates
CDT Environmental Technology (NASDAQ: CDTG) reported its H1 2024 unaudited financial results, showing revenue of $12.7 million, down 18.1% from $15.5 million in H1 2023. Net income decreased 21.6% to $1.4 million ($0.14 per share) from $1.8 million ($0.22 per share). Despite challenges, gross profit margin improved to 35.5% from 31.2%.
The company revised its full-year 2024 guidance downward, now expecting revenue between $30.2-$32.7 million and net income of $6.5-$7.9 million, compared to previous guidance of $42.5-$47.0 million in revenue and $8.7-$10.2 million in net income. The reduction primarily reflects the economic slowdown in China and project delays.
CDT Environmental Technology (NASDAQ: CDTG) ha riportato i risultati finanziari non auditati del primo semestre del 2024, mostrando un fatturato di $12.7 milioni, in calo del 18.1% rispetto ai $15.5 milioni del primo semestre del 2023. Il reddito netto è diminuito del 21.6% a $1.4 milioni ($0.14 per azione) rispetto a $1.8 milioni ($0.22 per azione). Nonostante le difficoltà, il margine di profitto lordo è migliorato al 35.5% rispetto al 31.2%.
L'azienda ha rivisto al ribasso le stime per l'intero anno 2024, ora prevedendo fatturato tra $30.2-$32.7 milioni e reddito netto di $6.5-$7.9 milioni, rispetto alle precedenti stime di $42.5-$47.0 milioni di fatturato e $8.7-$10.2 milioni di reddito netto. La riduzione riflette principalmente il rallentamento economico in Cina e i ritardi nei progetti.
CDT Environmental Technology (NASDAQ: CDTG) reportó sus resultados financieros no auditados del primer semestre de 2024, mostrando ingresos de $12.7 millones, una disminución del 18.1% en comparación con $15.5 millones en el primer semestre de 2023. Los ingresos netos cayeron un 21.6% a $1.4 millones ($0.14 por acción) desde $1.8 millones ($0.22 por acción). A pesar de los desafíos, el margen de beneficio bruto mejoró al 35.5%, frente al 31.2% anterior.
La empresa revisó a la baja su guía de ingresos para todo el año 2024, ahora esperando ingresos entre $30.2-$32.7 millones y un ingreso neto de $6.5-$7.9 millones, en comparación con la anterior guía de $42.5-$47.0 millones en ingresos y $8.7-$10.2 millones en ingresos netos. La reducción refleja principalmente la desaceleración económica en China y los retrasos en los proyectos.
CDT 환경 기술 (NASDAQ: CDTG)는 2024 년 상반기 감사되지 않은 재무 결과를 발표했으며, $12.7 백만의 수익을 기록했으며, 이는 2023 년 상반기 $15.5 백만에서 18.1% 감소한 수치입니다. 순이익은 $1.4 백만 ($0.14 per 주)로 21.6% 감소했으며, 이는 $1.8 백만 ($0.22 per 주)에서 하락한 것입니다. 도전에도 불구하고, 총 이익률은 31.2%에서 35.5%로 개선되었습니다.
회사는 2024 년 전체 연도 가이던스를 하향 조정했으며, 현재 $30.2-$32.7 백만의 수익과 $6.5-$7.9 백만의 순이익을 기대하고 있습니다. 이는 이전의 $42.5-$47.0 백만 수익과 $8.7-$10.2 백만 순이익 가이드와 비교됩니다. 이러한 감소는 주로 중국의 경제 둔화와 프로젝트의 지연을 반영합니다.
CDT Environmental Technology (NASDAQ: CDTG) a annoncé ses résultats financiers non audités pour le premier semestre 2024, affichant un chiffre d'affaires de $12.7 millions, en baisse de 18.1% par rapport aux $15.5 millions du premier semestre 2023. Le résultat net a diminué de 21.6% à $1.4 millions ($0.14 par action) contre $1.8 millions ($0.22 par action). Malgré les défis, la marge brute a augmenté à 35.5% contre 31.2% précédemment.
L’entreprise a revu à la baisse ses prévisions pour l’ensemble de l’année 2024, s’attendant maintenant à un chiffre d'affaires compris entre $30.2-$32.7 millions et un résultat net de $6.5-$7.9 millions, comparé à des prévisions précédentes de $42.5-$47.0 millions de chiffre d'affaires et $8.7-$10.2 millions de résultat net. Cette réduction reflète principalement le ralentissement économique en Chine et les retards de projets.
CDT Environmental Technology (NASDAQ: CDTG) berichtete über die nicht testierten Finanzergebnisse für das erste Halbjahr 2024, mit einem Umsatz von $12.7 Millionen, was einem Rückgang von 18.1% im Vergleich zu $15.5 Millionen im ersten Halbjahr 2023 entspricht. Der Nettoertrag sank um 21.6% auf $1.4 Millionen ($0.14 pro Aktie) von $1.8 Millionen ($0.22 pro Aktie). Trotz der Herausforderungen verbesserte sich die Bruttomarge auf 35.5% von 31.2%.
Das Unternehmen hat seine Prognose für das gesamte Jahr 2024 nach unten revidiert und erwartet nun einen Umsatz zwischen $30.2-$32.7 Millionen und einen Nettoertrag von $6.5-$7.9 Millionen, im Vergleich zu zuvor prognostizierten $42.5-$47.0 Millionen Umsatz und $8.7-$10.2 Millionen Nettoertrag. Die Reduzierung spiegelt hauptsächlich die wirtschaftliche Verlangsamung in China und Projektverzögerungen wider.
- Gross profit margin improved to 35.5% from 31.2% year-over-year
- Successful cost reduction initiatives through disposal of non-profitable subsidiaries
- Decrease in material costs for sewage treatment systems
- Revenue declined 18.1% to $12.7 million in H1 2024
- Net income decreased 21.6% to $1.4 million
- Operating expenses increased 7.8% to $2.7 million
- Significant downward revision in FY2024 guidance
- Reduced project activity due to economic slowdown in China
Insights
Revenue of
SHENZHEN, China, Dec. 27, 2024 (GLOBE NEWSWIRE) -- CDT Environmental Technology Investment Holdings Limited (NASDAQ: 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 , or18.1% , 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 , or6.7% , 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% and31.2% , respectively. The increase in gross profit percentage of4.3% was primarily due to the following: (1) a3.6% increase from sewage treatment systems driven by a decrease in material costs resulting from temporary price fluctuations, and (2) a17.2% 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 , or7.8% , 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 , or21.6% , 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
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 t o$32.7 million , with net income in the range of$6.5 t o$7.9 million . The change in guidance from the previous range of revenue of$42.5 t o$47.0 million and net income of$8.7 t o$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 | ||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||||||||
| Basic and diluted | 9,810,714 | 9,200,000 | ||||||
| EARNINGS PER SHARE | ||||||||
| Basic and diluted | $ | 0.14 | $ | 0.22 | ||||
| CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 96,324 | $ | 268,102 | ||||
| Accounts receivable, net | 41,317,558 | 29,076,549 | ||||||
| Other receivables, net | 315,758 | 418,891 | ||||||
| Other receivables - related parties | 121,722 | 115,718 | ||||||
| Contract assets | 29,634,565 | 34,280,084 | ||||||
| Prepayments and other current assets, net | 461,749 | 582,149 | ||||||
| Total current assets | 71,947,676 | 64,741,493 | ||||||
| OTHER ASSETS | ||||||||
| Property and equipment, net | 1,403,927 | 1,695,348 | ||||||
| Right-of-use assets, net | 44,150 | 210,058 | ||||||
| Intangible assets, net | 10,987 | 16,397 | ||||||
| Deferred tax assets, net | 369,407 | 252,882 | ||||||
| Contract assets, noncurrent | 4,885,755 | 4,885,755 | ||||||
| Prepaid initial public offering (“IPO”) costs | — | 989,628 | ||||||
| Escrow receivable | 600,000 | — | ||||||
| Total other assets | 7,314,226 | 8,050,068 | ||||||
| Total assets | $ | 79,261,902 | $ | 72,791,561 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 27,129,736 | $ | 23,784,781 | ||||
| Short-term loans - banks | 1,901,205 | 2,728,385 | ||||||
| Short-term loans - third parties | 773,980 | 312,028 | ||||||
| Short-term loans - related parties | 2,681,915 | 5,386,156 | ||||||
| Other payables and accrued liabilities | 1,827,424 | 2,466,501 | ||||||
| Other payables - related parties | 241,408 | 270,806 | ||||||
| Contract liabilities | 28,254 | 28,430 | ||||||
| Taxes payable | 7,042,632 | 5,423,955 | ||||||
| Lease liabilities | 53,900 | 118,833 | ||||||
| Total current liabilities | 41,680,454 | 40,519,875 | ||||||
| OTHER LIABILITIES | ||||||||
| Long-term loan - bank | 79,463 | 79,463 | ||||||
| Lease liabilities, non-current | 1,987 | 105,980 | ||||||
| Total other liabilities | 81,450 | 185,443 | ||||||
| Total liabilities | 41,761,904 | 40,705,318 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Ordinary shares, | ||||||||
| issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | 27,063 | 23,000 | ||||||
| Additional paid-in capital | 11,678,633 | 7,453,265 | ||||||
| Statutory reserves | 3,396,227 | 3,192,855 | ||||||
| Retained earnings | 24,508,602 | 23,242,946 | ||||||
| Accumulated other comprehensive loss | (2,256,233 | ) | (2,009,421 | ) | ||||
| Total CDT Environmental Technology Investment Holdings Limited shareholders’ equity | 37,354,292 | 31,902,645 | ||||||
| Noncontrolling interests | 145,706 | 183,598 | ||||||
| Total shareholders’ equity | 37,499,998 | 32,086,243 | ||||||
| Total liabilities and shareholders’ equity | $ | 79,261,902 | $ | 72,791,561 | ||||
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. In evaluating such statements, prospective investors should carefully review various risks and uncertainties identified in CDT’s filings with the SEC. 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
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
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