Wastewater Treatment Demand Drives Top-Line Expansion Despite Profit Pressure
Decent Holding (DXST) reported strong revenue growth for fiscal year 2025, highlighting rising demand for wastewater treatment services despite increased operating costs that weighed on profitability.
For the fiscal year ended October 31, 2025, total revenue rose 12.2% to $12.9 million, compared with $11.5 million in fiscal year 2024. The growth was primarily driven by the company’s wastewater treatment service segment, which surged 68.7% year-over-year to $4.2 million following the completion of a major treatment project during the year.
Chairman Dingxin Sun described the period as one of resilience and adaptation in a fluctuating economic environment. According to Sun, the company’s diversified service model helped offset modest declines in its River Water Quality Management and Product Sales segments, both of which experienced slight contractions due to shifts in customer procurement cycles.
Revenue from River Water Quality Management declined 3.6% to $6.6 million, while product sales slipped 4.6% to $2.1 million as some customers reduced their project activity. However, product sales margins improved to 39.1%, up from 35.8% in the prior year.
Despite the revenue growth, profitability faced pressure due to higher operating expenses and a shift in the company’s revenue mix toward lower-margin service projects. Gross profit reached $3.4 million, representing a 5.4% increase from the previous year, though gross margin declined to 26.2% from 27.8%.
Operating expenses rose sharply to $3.5 million, driven by increased consulting costs, research and development investments, higher salaries, and a $0.9 million rise in provisions for credit losses. As a result, the company recorded a net loss of $322,202 for fiscal year 2025, compared with net income of $2.1 million in fiscal year 2024.
Looking ahead, management plans to focus on improving operating efficiency, optimizing cost structures, and leveraging its recent R&D investments to enhance margins and long-term growth.
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