CDT Environmental Technology Investment Holdings Limited reported first‑half 2025 revenue of $7.3 million, a 42.3% decline from $12.7 million in the same period of 2024. The company posted a net loss of $1.3 million, or $0.11 per share, compared with a net income of $1.4 million, or $0.14 per share, in the prior year. Gross profit fell by $1.6 million, or 35.1%, but the gross‑profit margin expanded from 35.5% to 39.9%, a 440‑basis‑point lift driven by a higher‑margin new project and cost‑saving measures implemented in 2024.
Revenue contraction was largely attributable to a weaker macro environment in China, which reduced external demand for infrastructure projects. The company also scaled back legacy projects with long receivable cycles and experienced a lower number of revenue recognitions during the period. These headwinds offset the positive impact of the new high‑margin project that generated $3.1 million in revenue with a 40.3% margin.
Operating expenses rose 51.9% to $4.1 million, largely because of $2.1 million in non‑cash stock‑based compensation. The increase in expenses, combined with the decline in gross profit, explains the shift from a $0.14 per share profit in 2024 to a $0.11 per share loss in 2025.
CDT is accelerating a strategic pivot toward the green hydrogen economy. The company announced plans to commercialize organic solid‑waste‑to‑hydrogen production facilities and has partnered with the Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences. CEO Li Yunwu said the company remains focused on cost discipline and strategic investments in high‑return verticals, signaling confidence in the long‑term potential of the hydrogen market.
The company is also facing a Nasdaq compliance risk. A notification received on June 18, 2025, indicated that CDT had fallen below the minimum bid price requirement. The firm had until December 15, 2025, to regain compliance, adding a liquidity and listing risk to the earnings picture.
Analysts have issued a “Hold” rating with a modest price target, reflecting concerns about liquidity and the Nasdaq compliance issue, while acknowledging the positive momentum from the green hydrogen initiative. The market reaction underscores the balance between short‑term financial challenges and the company’s long‑term strategic shift.
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