CDT Environmental Technology Investment Holdings Limited (Nasdaq: CDTG), a Chinese provider of waste treatment systems and services, filed its annual report on Form 20-F for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission on May 15, 2026. The report, available on the SEC's website at www.sec.gov and CDT's website at https://www.cdthb.cn, shows total revenues of $18.2 million, a decrease of $11.5 million or 38.8% year-over-year.
The revenue decline was primarily driven by a 39.2% drop in sewage treatment system installation revenues to $17.3 million, attributed to delays in projects initiated between 2021 and 2024 due to prolonged local government review and approval processes, as well as fewer new projects secured in 2025. Sewage treatment services revenues also fell 29.8% to $0.9 million, reflecting reduced demand amid an ongoing economic downturn in the People's Republic of China.
Gross profit decreased by 32.8% to $7.6 million, though gross profit margin improved to 41.5% from 37.8% in 2024, due to a higher proportion of profitable projects completed during the year. Total operating expenses surged 107.7% to $19.2 million, largely due to a $1.7 million increase in stock-based compensation and a $14.7 million provision for credit losses, net of recoveries, compared to a net recovery of $6.5 million in 2024. The provision was driven by increased credit risk and collectability concerns, though management noted that customers are primarily state-owned companies backed by local governments and expects to realize outstanding balances within twelve months. As of the report date, the company had received $1.9 million of its accounts receivable.
Net loss for 2025 was $10.3 million, compared to net income of $1.4 million in 2024. Working capital stood at $26.4 million as of December 31, 2025, slightly up from $26.0 million a year earlier.
As of March 31, 2026, CDT had three projects in backlog with a total provisional contract value of approximately $26.8 million: Phase VI of the Jimei Guankou Project, the Xiamen Xinglin Pipeline Network Renovation Project, and the Hubei Wuxue Project. The company is also bidding on two new wastewater treatment system projects, with results expected by the third quarter of 2026.
CEO Li Yunwu stated that the company's cost optimization program expanded operating margin by 370 basis points year-over-year and that the enduring need for clean water will underpin long-term demand. He also highlighted strategic partnerships to achieve China's 'Dual Carbon' goals through converting organic solid waste into new energy, aiming to diversify revenue streams while driving organic growth in the core business.
