EX-99.3 4 e7154_ex99-3.htm EXHIBIT 99.3

 

 

EXHIBIT 99.3

 

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CDT Environmental Technology Reports 2025 Unaudited Interim Financial Results and Provides Business Updates

 

Revenue of $7.3 million and loss per share of $0.11 impacted by reduced project activity due to a slowdown in the PRC economy

 

SHENZHEN, China, December 23, 2025 (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, 2025, and provides updates on key business developments.

 

All amounts are expressed in US dollars unless otherwise stated.

 

2025 Unaudited Interim Financial Results and Business Update

 

Revenues decreased by approximately $5.4 million, or 42.3%, to approximately $7.3 million for the six months ended June 30, 2025, from approximately $12.7 million for the same period in 2024. The decline was driven by three factors:


(i) reduced external demand for the Company’s traditional environmental engineering services amid the PRC economic slowdown; and

 

(ii) the Company’s deliberate strategic shift to scale back on legacy projects with excessively long receivable cycles, reallocating resources toward its new green hydrogen and organic waste-to-energy initiatives.

 

(iii) decrease in the number and timing of project revenue recognitions, as six project contracts contributed revenue during the comparable prior-year period, whereas only four projects contributed revenue during the current period, with certain remaining projects not yet meeting revenue recognition criteria. Among the four projects recognized in the current period, except for the Guankou project phase 6, the other three projects had reached over 95% completion and were in their final stages, resulting in limited incremental revenue recognized during the period.

Gross profit decreased by approximately $1.6 million, or 35.1%, to approximately $2.9 million for the six months ended June 30, 2025 from approximately $4.5 million for the six months ended June 30, 2024. The decrease in gross profit is primarily due to a decrease in sewage treatment systems revenue. For the six months ended June 30, 2025 and 2024, our overall gross profit percentage was 39.9% and 35.5%, respectively. The increase in gross profit percentage of 4.4% was primarily due to the following:

 

(i)The approximately 4.8% increase in the gross profit margin of sewage treatment systems was primarily attributable to the Company’s engagement in a new project that generated approximately $3.1 million in revenue with a relatively higher gross profit margin of 40.3%.

 

(ii)This increase was partially offset by a 4.7% decrease in the gross profit margin of sewage treatment services and other revenue, primarily due to higher labor and material costs.

 

Total operating expenses increased by approximately $1.4 million, or 51.9%, to approximately $4.1 million for the six months ended June 30, 2025, from approximately $2.7 million for the same period in 2024.

 

  The Company reported a net loss of approximately $1.3 million, or $0.11 per share, for the six months ended June 30, 2025, compared to net income of $1.4 million, or $0.14 per share, for the same period in 2024. The swing from profit to loss was primarily due to:

 

 

 

(i) lower revenue from reduced project activity amid weakened market demand; and

 

(ii) the recognition of $2.1 million in non-cash stock-based compensation expense related to the Company’s 2025 Equity Incentive Plan, under which shares were granted to key employees and advisors and accounted for as compensation in accordance with ASC 718.

 

Business Update 

 

As of June 30, 2025, the Company had three projects in backlog:

 

the Sichuan Anya Project,

 

the Xinjiang Project, and

 

Phase VI of the Guankou Project.

 

Both the Sichuan Anya and Xinjiang Projects were signed and commenced in August 2024. Phase VI of the Guankou Project is a supplemental agreement to the existing Guankou Project, which was signed and commenced in April 2024, and represents an incremental scope under the original contract—it does not constitute a new, standalone project. The combined tentative contract value of these three projects is approximately $19.6 million.

 

Green Hydrogen Initiative

 

Strategic move into green hydrogen: As announced on November 20, 2025, the Company initiated a new growth opportunity with its shift to become a provider of urban and rural organic waste resource utilization solutions and clean energy.

 

Technology and partnerships: The Company’s plan is to utilize high-temperature gasification technology to convert organic waste into syngas, which can then be purified to produce hydrogen. In May 2025, the Company appointed a senior expert from the Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, as Chief Scientist for the Company’s new energy initiative, establishing a technical collaboration with the Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences.    

 

Addressing market demand: The initiative aims to capitalize on the significant demand for organic waste treatment in China and the rapidly growing hydrogen energy market.

 

Diversified revenue streams: The Company’s new “EPC engineering + long-term operation” business model includes revenue from waste treatment fees as well as expected future sales of energy products like green hydrogen, clean industrial steam, and grid-connected electricity.

 

Li Yunwu, CEO of CDT, said Our first half 2025 performance was challenging as we continued to experience economic headwinds in the PRC market that have impacted new infrastructure projects and delayed some that are in the pipeline. Despite these challenges and the resulting volume pressure, we achieved 250 basis points of gross profit margin expansion compared to the same period last year through the restructuring initiatives we undertook in 2024 and other cost-saving measures. As economic conditions in China stabilize, we believe we remain well positioned to capitalize on opportunities associated with favorable, long-term secular trends including water conservation, safety and regulation.

 

 

 

Mr. Li added, “Even as we face an unpredictable operating environment in the near-term with soft end market demand, we are taking proactive and strategically targeted steps to leverage our core operational capabilities through technological innovation and partnerships. Our recently announced strategic initiative to support the growth of the hydrogen economy is an integral part of our planned transformation and broader strategy to participate in new energy by commercializing operations of organic solid waste-to-hydrogen production facilities in China. We believe our collaborations with leading scientific organizations and government regulatory bodies have created a foundation for the Company to accelerate the transition to a hydrogen economy. We expect to report several milestones related to our green hydrogen initiative including advancements in the Company’s hydrogen enabling technologies, as well as progress in executing several customers’ hydrogen projects and new partnerships in the sector.

 

We believe the actions we have taken to streamline our operations, along with our planned long-term investments in our new energy growth initiatives, are expected to deliver value to customers and improve returns for shareholders.”

 

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 changes 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, please 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. When the Company uses words such as “may,” “should,” “will,” “future,” “expect,” “anticipate,” “project,” “estimate,” “believe,” and “intend,” or similar expressions that do not relate solely to historical matters, it is 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. Further information regarding these and other risks, uncertainties, or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. For these reasons, among others, investors should not place undue reliance on any forward-looking statement. CDT undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that arise after the date hereof, whether as a result of new information, future events or otherwise, except as may be required by applicable law.

 

 

 

For more information, please contact:

 

Investor and Media Contact
United States

 

PCG Advisory
Kevin McGrath
Tel: +1-646-418-7002
Email: kevin@pcgadvisory.com

 

 

 

CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
 
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

    June 30,   December 31,
    2025   2024
ASSETS                
CURRENT ASSETS                
Cash   $ 175,877     $ 124,379  
Accounts receivable, net     65,238,735       45,188,231  
Other receivables, net     239,560       424,313  
Other receivables - related parties     135,920       123,532  
Contract assets     31,126,553       31,438,860  
Prepayments and other current assets, net     488,969       405,136  
Total current assets     97,405,614       77,704,451  
                 
OTHER ASSETS                
Property and equipment, net     1,182,693       1,291,322  
Intangible assets, net     715       5,628  
Deferred tax assets, net     1,305,492       1,208,689  
Contract assets, noncurrent     8,525,057       8,550,498  
Escrow     600,000       600,000  
Total other assets     11,613,957       11,656,137  
                 
Total assets   $ 109,019,571     $ 89,360,588  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
                 
CURRENT LIABILITIES                
Accounts payable   $ 40,192,963     $ 36,347,893  
Short-term loans - banks     1,321,665       1,814,551  
Short-term loans - third parties     840,388       836,765  
Short-term loans - related parties     3,183,506       2,794,894  
Other payables and accrued liabilities     2,948,482       2,220,896  
Other payables - related party     254,173       256,863  
Contract liabilities     13,691,295       28,026  
Taxes payable     7,878,159       7,408,674  
Total current liabilities     70,310,631       51,708,562  
                 
OTHER LIABILITIES                
Long-term loan - bank     279,384       213,969  
Total other liabilities     279,384       213,969  
                 
Total liabilities     70,590,015       51,922,531  
                 
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 December 31, 2024 and 2023, respectively     30,813       27,063  
Additional paid-in capital     13,719,883       11,578,633  
Statutory reserves     3,667,369       3,433,589  
Retained earnings     22,959,457       24,455,403  
Accumulated other comprehensive loss     (2,089,346 )     (2,210,909 )
Total CDT Environmental Technology Investment Holdings Limited shareholders' equity     38,288,176       37,283,779  
                 
Noncontrolling interests     141,380       154,278  
Total shareholders' equity     38,429,556       37,438,057  
                 
Total liabilities and shareholders' equity   $ 109,019,571     $ 89,360,588  

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 

   For the Six Months Ended
   June 30,
   2025  2024
       
REVENUES          
Sewage treatment systems  $6,762,644   $12,066,255 
Sewage treatment services and others   556,579    620,453 
Total revenues   7,319,223    12,686,708 
           
COST OF REVENUES          
Sewage treatment systems   4,088,886    7,869,468 
Sewage treatment services and others   308,864    315,405 
Total cost of revenues   4,397,750    8,184,873 
           
GROSS PROFIT   2,921,473    4,501,835 
           
OPERATING EXPENSES:          
Selling   102,096    25,725 
General and administrative   1,191,360    1,361,481 
Research and development   31,918    34,706 
Stock-based compensation   2,145,000    454,250 
Provision for (Recovery from) credit loss, net   588,484    795,757 
Total operating expenses   4,058,858    2,671,919 
           
INCOME FROM OPERATIONS   (1,137,385)   1,829,916 
           
OTHER INCOME (EXPENSE)          
Interest income   (6,814)   138 
Interest expense   (39,200)   (69,446)
Other (expense) income, net   89,556    58,212 
Total other (expense) income, net   43,542    (11,096)
           
INCOME BEFORE INCOME TAXES   (1,093,843)   1,818,820 
           
INCOME TAXES EXPENSE   214,668    401,401 
           
NET (LOSS) INCOME   (1,308,511)   1,417,419 
           
Less: net loss attributable to noncontrolling interest   (46,345)   (51,609)
           
NET (LOSS) INCOME ATTRIBUTABLE TO          
CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED  $(1,262,166)  $1,469,028 
           
NET(LOSS) INCOME   (1,308,511)   1,417,419 
           
FOREIGN CURRENCY TRANSLATION ADJUSTMENT   122,198    (249,654)
           
TOTAL COMPREHENSIVE (LOSS) INCOME   (1,186,313)   1,167,765 
           
Less: Comprehensive loss attributable to noncontrolling interest   (45,710)   (54,451)
           
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO          
CDT ENVIRONMENTAL TECHNOLOGY INVESTMENT HOLDINGS LIMITED  $(1,140,603)  $1,222,216 
           
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES          
Basic and diluted   11,910,635    9,810,714 
           
EARNINGS PER SHARE          
Basic and diluted  $(0.11)  $0.15 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.