CDT Environmental Technology Investment Holdings Ltd 6-K, filed Dec 27, 2024
CDT Environmental Technology Investment Holdings Ltd (CDTG)
About this 6-K
CDT Environmental Technology Investment Holdings Ltd filed this 6-K on December 27, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of December, 2024
Commission File Number 001-42007
CDT Environmental Technology Investment Holdings Limited
(Translation of registrant’s name into English)
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C1, 4th Floor, Building 1, Financial Base, No. 8 Kefa Road Nanshan District, Shenzhen, China 518057 (Address of principal executive office) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
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On December 27, 2024, CDT Environmental Technology Investment Holdings Limited issued a press release announcing its unaudited interim financial results for the first half of 2024, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| Exhibit No. | Description of Exhibit | |
| 99.1 | Press Release dated December 27, 2024 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: December 27, 2024
| CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED | ||
| By: | /s/ Yunwu Li | |
| Name: Yunwu Li | ||
| Title: Chief Executive Officer and Chairman of the Board of Directors | ||
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EXHIBIT 99.1
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, December 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, 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 | ||||
| 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, $0.0025 par value, 20,000,000 shares authorized, 10,825,000 and 9,200,000 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.
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