YANTAI, China, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Decent Holding Inc. (NASDAQ: DXST) (“Decent” or the “Company”), a technology-driven provider of wastewater treatment and community-based senior health and elderly care services in China, today announced its unaudited financial results for the six months ended April 30, 2026.
Financial Highlights for the First Half of Fiscal Year 2026
- Total revenue increased by 238.0% to approximately $18.6 million, from approximately $5.5 million in the prior-year period, driven by significant growth in wastewater treatment services and contributions from the newly launched digital health and wellness business.
- Gross profit increased by 310.3% to approximately $6.2 million, from approximately $1.5 million in the prior-year period. Gross margin improved to 33.4% from 27.5% in the prior-year period.
- Net loss was approximately $1.1 million, compared with net loss of approximately $0.5 million in the prior-year period, primarily reflecting increased selling, general and administrative expenses associated with business expansion and the digital health business launch.
Selected Financial Results for the First Half of Fiscal Year 2026
Total Revenue
Total revenue increased by 238.0%, or approximately $13.1 million, to approximately $18.6 million for the six months ended April 30, 2026, compared with approximately $5.5 million for the six months ended April 30, 2025. Revenue growth was primarily attributable to the expansion of existing business lines and the incremental contribution from the newly launched digital health and wellness segment, which mainly includes training services and product sales.
Wastewater Treatment Revenue
Wastewater treatment revenue increased by 1,762.8% to approximately $9.2 million for the six months ended April 30, 2026, from approximately $0.5 million in the prior-year period, primarily reflecting successful bids and project completions. Gross profit from wastewater treatment revenue increased to approximately $2.0 million, and gross margin improved to 21.4% from 18.6%.
River Water Quality Management Revenue
River water quality management revenue decreased by 9.1% to approximately $4.3 million for the six months ended April 30, 2026, from approximately $4.7 million in the prior-year period. Gross margin for this revenue category was 23.5%, compared with 27.6% in the prior-year period.
Product Sales Revenue
Product sales revenue increased by 385.4% to approximately $1.3 million for the six months ended April 30, 2026, from approximately $0.3 million in the prior-year period. The increase was driven by higher sales volume of microbial inoculum products and contributions from the newly added digital health business line. Gross margin for product sales was 25.3%, compared with 41.7% in the prior-year period, reflecting pricing adjustments and revenue mix.
Training Revenue
Training revenue, which was generated by the Company’s newly launched digital health business segment, contributed approximately $3.5 million for the six months ended April 30, 2026. Training revenue generated gross profit of approximately $2.6 million and gross margin of 75.1%.
Cost of Revenue
Cost of revenue increased by 210.6% to approximately $12.4 million for the six months ended April 30, 2026, from approximately $4.0 million in the prior-year period, primarily in line with the increase in revenue.
Gross Profit and Gross Margin
Gross profit increased by 310.3% to approximately $6.2 million for the six months ended April 30, 2026, from approximately $1.5 million in the prior-year period. Gross margin increased to 33.4% from 27.5%, primarily attributable to an improved revenue mix, including the high-margin contribution from the Company’s newly launched digital health business line and scale efficiencies in wastewater treatment services.
Operating Expenses
Operating expenses increased by 257.9% to approximately $7.1 million for the six months ended April 30, 2026, from approximately $2.0 million in the prior-year period. The increase was mainly due to higher selling expenses associated with marketing for the Company’s newly launched digital health business line, increased consultant and service fees, higher salary and welfare expenses following internal personnel adjustments, and increased research and development expenses related to external research initiatives.
Net Loss
Net loss was approximately $1.1 million for the six months ended April 30, 2026, compared with net loss of approximately $0.5 million for the six months ended April 30, 2025. Net loss margin narrowed to 5.8% from 8.7% in the prior-year period.
Cash and Equivalents
As of April 30, 2026, the Company had cash of approximately $1.7 million, compared with approximately $0.6 million as of October 31, 2025. Net cash provided by financing activities was approximately $7.0 million for the six months ended April 30, 2026.
Recent Developments
On March 16, 2026, the Company effected a one-for-twenty-five share consolidation of its Class A ordinary shares and Class B ordinary shares. All share and per share amounts presented in this release have been retroactively restated to give effect to the share consolidation.
In March 2026, Suncare launched its digital senior health and elderly care platform. On March 10, 2026, Suncare entered into a strategic cooperation agreement with a regional senior care operator in China, which is expected to expand the platform by approximately 70 additional community service locations across several provinces in eastern and northern China. On June 9, 2026, the Company entered into a partnership with Taihao Robotics to establish a robotics training network in China.
In November 2025, the Company completed a registered offering of its Class A ordinary shares and accompanying warrants for gross proceeds of approximately $8.0 million, before deducting placement agent fees and offering expenses. On April 24, 2026, the Company filed a registration statement on Form F-3, which was declared effective on May 8, 2026.
On July 14, 2026, the Company’s shareholders approved an increase in the Company’s authorized share capital and authorized the board of directors to effect one or more share consolidations within specified ratios within one year of the meeting, together with related amendments to the Company’s memorandum and articles of association.
Suncare Business Overview and Strategic Progress
Suncare is the Company's AI-powered, community-based senior health and elderly care platform, integrating community service locations with digital health technologies, intelligent devices, robotics and home-based care services. Since its launch in March 2026, Suncare has expanded to approximately 480 community service locations and approximately 150,000 paid members as of June 30, 2026. During the first half of fiscal 2026, the Company's digital health business generated approximately $3.5 million in training revenue with a gross margin of 75.1%, providing an early contribution to revenue growth and improving the Company's overall business mix.
Looking ahead, the Company intends to continue expanding Suncare's community service network while strengthening its digital health platform, strategic partnerships and technology capabilities. By integrating AI-enabled health management, intelligent devices, robotics and community-based healthcare services, the Company aims to build a scalable senior healthcare ecosystem and establish an additional long-term growth platform alongside its environmental services business.
Chairman's Commentary
Mr. Dingxin Sun, Chairman of Decent Holding Inc., commented: "Our first-half fiscal 2026 results reflect strong revenue growth and the early contribution from our strategic expansion into senior health and elderly care services. Total revenue reached approximately $18.6 million, exceeding our revenue for the full fiscal year ended October 31, 2025, while gross margin improved to 33.4% as our revenue mix benefited from high-margin training services and continued growth in our environmental services business."
"We are encouraged by the early progress of Suncare. Since its launch in March 2026, the platform has grown to approximately 480 community service locations and approximately 150,000 paid members, while generating approximately $3.5 million in training revenue during the first half of fiscal 2026. We believe this expanding community network provides a solid foundation for developing an AI-powered senior healthcare ecosystem integrating digital health, intelligent devices, robotics and home-based care services. Looking ahead, we will continue executing our environmental services strategy while prudently investing in Suncare to support sustainable long-term growth and shareholder value creation."
About Decent Holding Inc.
Decent Holding Inc. (NASDAQ: DXST) specializes in the provision of wastewater treatment by cleansing industrial wastewater, ecological river restoration and river ecosystem management by enhancing water quality, as well as microbial products primarily used for pollutant removal and water quality enhancement, through the Company's operating subsidiary, Shandong Dingxin Ecology Environmental Co., Ltd. In addition, through its operating subsidiary Suncare (Shanghai) Health Technology Co., Ltd., the Company operates an AI-powered, community-based senior health and elderly care platform serving China's aging population. For more information, please visit: https://ir.dxshengtai.com.
Forward-Looking Statements
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “could,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “intends,” “views,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; the competitive environment of our business; our ability to open and operate new community service centers on our anticipated timeline; our ability to attract and retain paid members; the development and deployment of AI-enabled technologies and related services; the regulatory environment applicable to healthcare and elderly care services in China; and the evolving PRC legal and regulatory framework governing data privacy, data security, and cross-border data transfers. For a more detailed discussion of these and other risks, you should review the risk factors and other disclosures contained in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 20-F. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Investor Relations Contact:
WFS Investor Relations Inc.
Connie Kang, Partner
Email: ckang@wfsir.com
Tel: +86 1381 185 7742 (CN)
| DECENT HOLDING INC. AND SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Stated in U.S. dollars, except for share and per share data) | ||||||||
| As of April 30, 2026 | As of October 31, 2025 | |||||||
| Unaudited | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 1,653,308 | $ | 572,807 | ||||
| Accounts receivable, net | 21,270,035 | 12,382,623 | ||||||
| Prepayment, net | 5,582,523 | — | ||||||
| Prepaid expenses, current | 1,107,696 | 1,963,359 | ||||||
| Other Receivables | 113,118 | 5,073 | ||||||
| Contract assets | 1,838,135 | 1,158,370 | ||||||
| Loan receivable, current | 600,000 | — | ||||||
| Due from related parties | 347 | 490 | ||||||
| Inventories | 123 | 128 | ||||||
| Interest receivable | 3,500 | 10,500 | ||||||
| Total current assets | 32,168,785 | 16,093,350 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Deferred offering costs | — | 19,884 | ||||||
| Prepaid expenses, non-current | — | 105,000 | ||||||
| Loan receivable, non-current | — | 350,000 | ||||||
| Operating lease assets, net | 760,269 | 154,556 | ||||||
| Property and equipment, net | 179,688 | 201,539 | ||||||
| Intangible assets, net | 5,798 | 5,738 | ||||||
| Deferred tax asset | 411,177 | 248,908 | ||||||
| Total non-current assets | 1,356,932 | 1,085,625 | ||||||
| TOTAL ASSETS | $ | 33,525,717 | $ | 17,178,975 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 7,560,733 | $ | 3,175,565 | ||||
| Advance from Customers | 1,044,553 | 246 | ||||||
| Payroll payable | 89,959 | 15,009 | ||||||
| Tax payables | 1,548,762 | 1,138,911 | ||||||
| Other payables | 7,241,937 | 5,005,375 | ||||||
| Contract liabilities | 1,256,381 | — | ||||||
| Operating lease liabilities – current | 290,326 | 52,217 | ||||||
| Estimated warranty liabilities | 120,161 | 9,650 | ||||||
| Total current liabilities | 19,152,812 | 9,396,973 | ||||||
| NON-CURRENT LIABILITIES | ||||||||
| Operating lease liabilities – non-current | 426,626 | 54,331 | ||||||
| Total non-current liabilities | 426,626 | 54,331 | ||||||
| TOTAL LIABILITIES | 19,579,438 | 9,451,304 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Class A Ordinary shares (US$0.0025 par value, 19,800,000 shares authorized, 1,615,128 and 450,000 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively) | 4,038 | 1,125 | ||||||
| Class B Ordinary shares (US$0.0025 par value, 200,000 shares authorized, 200,000 shares issued and outstanding as of April 30, 2026 and October 31, 2025, respectively) | 500 | 500 | ||||||
| Subscription receivable | (1,500 | ) | (1,500 | ) | ||||
| Additional paid-in capital | 11,257,406 | 4,222,882 | ||||||
| Statutory reserve | 666,232 | 512,732 | ||||||
| Retained earnings | 1,893,290 | 3,118,706 | ||||||
| Accumulated other comprehensive income (loss) | 128,530 | (126,774 | ) | |||||
| Total Decent’s shareholders’ equity | 13,948,496 | 7,727,671 | ||||||
| Non-controlling interests | (2,217 | ) | — | |||||
| Total shareholders’ equity | 13,946,279 | 7,727,671 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 33,525,717 | $ | 17,178,975 | ||||
| DECENT HOLDING INC. AND SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATION AND COMPREHENSIVE (LOSS) INCOME (Stated in U.S. dollars, except for share and per share data) | ||||||||
| For The Six Months Ended April 30, | ||||||||
| 2026 | 2025 | |||||||
| REVENUE | ||||||||
| Wastewater treatment revenue | $ | 9,186,084 | $ | 493,123 | ||||
| River water quality management revenue | 4,297,180 | 4,728,449 | ||||||
| Product sales revenue | 1,344,830 | 277,081 | ||||||
| Training revenue | 3,502,890 | — | ||||||
| Others | 254,541 | — | ||||||
| TOTAL REVENUE | 18,585,525 | 5,498,653 | ||||||
| COST OF REVENUE | ||||||||
| Wastewater treatment revenue | (7,220,924 | ) | (401,310 | ) | ||||
| River water quality management revenue | (3,288,423 | ) | (3,424,737 | ) | ||||
| Product sales revenue | (1,004,580 | ) | (161,511 | ) | ||||
| Training revenue | (872,309 | ) | — | |||||
| TOTAL COST OF REVENUE | (12,386,236 | ) | (3,987,558 | ) | ||||
| GROSS PROFIT | 6,199,289 | 1,511,095 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling expenses | (3,076,861 | ) | (223,821 | ) | ||||
| General and administrative expenses | (3,809,799 | ) | (1,740,278 | ) | ||||
| Research and development expenses | (188,381 | ) | (12,784 | ) | ||||
| Total operating expenses, net | (7,075,041 | ) | (1,976,883 | ) | ||||
| NET LOSS FROM OPERATIONS | (875,752 | ) | (465,788 | ) | ||||
| OTHER INCOME (EXPENSES) | ||||||||
| Interest income | 7,595 | 13,854 | ||||||
| Other income | 27 | 2,521 | ||||||
| Total other income, net | 7,622 | 16,375 | ||||||
| NET LOSS BEFORE TAXES | (868,130 | ) | (449,413 | ) | ||||
| Income tax expenses | (205,963 | ) | (29,752 | ) | ||||
| NET LOSS | (1,074,093 | ) | (479,165 | ) | ||||
| Net loss attributable to non-controlling interests | (2,177 | ) | — | |||||
| Net loss attributable to shareholders | (1,071,916 | ) | (479,165 | ) | ||||
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||
| Foreign currency translation adjustment attributable to non-controlling interests | (40 | ) | — | |||||
| Foreign currency translation adjustment attributable to shareholders | 255,304 | (131,684 | ) | |||||
| Total comprehensive income (loss) | 255,264 | (131,684 | ) | |||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | $ | (2,217 | ) | $ | — | |||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO DECENT’S SHAREHOLDERS | $ | (816,612 | ) | $ | (610,849 | ) | ||
| Weighted average shares outstanding during the year – basic and diluted | 1,744,319 | 650,000 | ||||||
| Loss per Ordinary Share – basic and diluted | $ | (0.61 | ) | $ | (0.74 | ) | ||
| DECENT HOLDING INC. AND SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in U.S. dollars, except for share and per share data) | ||||||||
| For The Six Months Ended April 30, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (1,074,093 | ) | $ | (479,165 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Allowance for credit losses and bad debts | 791,245 | 789,852 | ||||||
| Depreciation and amortization | 46,465 | 36,951 | ||||||
| Amortization of finance lease assets | — | 7,306 | ||||||
| Non-cash operating lease expenses | 99,636 | 27,149 | ||||||
| Deferred income tax effect | (148,914 | ) | (113,869 | ) | ||||
| Estimated warranty effect | 108,073 | (27,040 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (8,999,285 | ) | (651,784 | ) | ||||
| Prepayment | (2,018,193 | ) | 7,540 | |||||
| Prepaid expenses | 936,428 | — | ||||||
| Other receivables | (105,843 | ) | 6,463 | |||||
| Contract assets | (4,119,007 | ) | 2,683 | |||||
| Due from related party | 161 | 264 | ||||||
| Inventories | 11 | 2 | ||||||
| Other current assets | — | (1,188,411 | ) | |||||
| Tax payables | 354,877 | 143,621 | ||||||
| Other payables | 1,986,935 | 632,182 | ||||||
| Accounts payable | 4,173,124 | (703,567 | ) | |||||
| Advance from customers | 1,025,049 | — | ||||||
| Contract liabilities | 1,233,224 | — | ||||||
| Operating lease liabilities | (93,034 | ) | (6,511 | ) | ||||
| Advance from related parties | — | (55,035 | ) | |||||
| Payroll payable | 72,943 | 11,390 | ||||||
| CASH USED IN OPERATING ACTIVITIES | (5,730,198 | ) | (1,559,979 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property and equipment | (16,445 | ) | (585 | ) | ||||
| Loan made to third party | (243,000 | ) | (1,984,087 | ) | ||||
| Repayment from related parties | — | 38,901 | ||||||
| CASH USED IN INVESTING ACTIVITIES | (259,445 | ) | (1,945,771 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Offering costs paid | (962,563 | ) | (1,017,291 | ) | ||||
| Principal payment for obligation under finance leases | — | (11,695 | ) | |||||
| Gross proceeds from offering | 8,000,000 | 5,000,000 | ||||||
| CASH PROVIDED BY FINANCING ACTIVITIES | 7,037,437 | 3,971,014 | ||||||
| EFFECT OF EXCHANGE RATE ON CASH | 32,707 | (33,880 | ) | |||||
| NET CHANGE IN CASH | 1,080,501 | 431,384 | ||||||
| CASH AT BEGINNING OF PERIOD | 572,807 | 407,031 | ||||||
| CASH AT END OF PERIOD | $ | 1,653,308 | $ | 838,415 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
| Cash paid during the period for: | ||||||||
| Income taxes | $ | — | $ | — | ||||
| Interest | $ | — | $ | — | ||||
| NON-CASH TRANSACTIONS | ||||||||
| Operating lease assets obtained in exchange for lease obligations | $ | 687,751 | $ | — | ||||
| Cashless exercise of warrants | 1,579 | — | ||||||
