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With a First Position Advantage in China's Booming Waste Treatment Sector, CDT Environmental Technology Investment Holdings Limited Goes Public with a NASDAQ Listing!

CDT Environmental Technology Investment Holdings Limited (NASDAQ: CDTG) is a leading national player in China's waste treatment sector whose story is only now beginning on Wall Street with its recent listing on the NASDAQ Capital Market!

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    The company has assembled a high-quality research and development team and is collaborating with third-party institutions to support the Company’s wastewater management methodologies and technology offerings to keep CDTG at the forefront of China’s growing treatment industry.  With three patents recently granted from the China National Intellectual Property Administration (CNIPA), CDTG continues to add to its extensive portfolio of previously issued patents to maintain  a balance between the need for coverage in its strategic market and the need to maintain reasonable costs.

    Company Overview:

    CDTG designs, develops, manufactures, sells, installs, operates, and maintains sewage treatment systems and provides sewage treatment services in China. The company is dedicated to promoting sustainable development through innovative solutions. 

    Founded by pioneers in waste treatment, CDTG aims to advance next-generation technologies that directly address environmental challenges and promote sustainable solutions. 

    CDTG 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. 

    This is a company that is already a recognized brand in China and is committed to innovation and customer satisfaction.

    Financial Performance Full Year 2023

    • Revenues increased to $34.2 million, representing a year-over-year increase of 18.6%
    • Gross profit rose to $11.4 million, or 33.3% of sales, representing a year-over-year increase of 11.0%
    • Operating expenses were $2.8 million, or 8.2% of sales, representing a year-over-year decrease of $1.1 million, or 28.9%
    • Net income of $7.0 million, or $0.81 per share, compared to $5.2 million, or $0.63 per share, representing a year-over-year increase of 34.6%
    • Working capital of $24.2 million compared to $12.9 million

    Financial Guidance for 2024

    Based on current visibility, management currently expects revenues for the full year 2024 to be in the range of $42.5 to $47.0 million, with net income in the range of $8.7 to $10.2 million. The midpoint of these ranges would represent growth of 30% for revenue and 35% for net income.

    Company Mission:

    CDTG’s mission is to help its customers achieve their critical infrastructure objectives while enabling positive change in technological environmental protection. It collaborates with industry leaders, environmental experts, and stakeholders to develop and implement advanced waste treatment solutions.

    The TOP TEN Reasons to Have CDTG on Your Radar:


               1. Sales

    • CDTG has established an extensive operation and marketing network with 11 subsidiaries in 9 provinces in China.
    • The company’s customers are Central Government Owned construction companies in China. CDTG has close relationships and mutually beneficial partnerships with them.
    • Through this relationship, the company has successfully expanded its business to all parts of China. This is an advantage as many of its competitors can only do regional business!

      2. Established Track Record
    • CDTG has rich experience in completed projects and multiple projects in the pipeline. The company has built approximately 150 rural sewage treatment plants in Fujian, Zhejiang, Liaoning, Jiangxi and other provinces, enabling it to establish a solid reputation with different levels of government agency, and state-owned enterprises.

      3. Competition: 
    • In terms of rural sewage treatment, the company’s target customers are scattered in rural areas across the country, and other large companies in China generally do not enter this field to compete with CDTG. Currently, CDTG’s competitors are small regional companies, providing it a great advantage in this segment of the market. Regarding its septic tank business, the company has its own invention patents that meet government standards. Most of its peers do not have this kind of high technology to treat septic tank to meet the standards of the Chinese government.

      4. Management: 
    • Experienced management team and personnel with a demonstrated track record. 
    • CEO and chairman of the board, Yunwu Li, founded the company. Previously, he served as the general manager of Fujian Optical Instruments and has served as chairman of two listed companies in the A-share market in China.

      5. R&D: 
    • As a national high-tech company, CDTG has 33 patents, including 2 invention patents and 31 utility model patents. 
    • The company has internal R&D personnel and cooperates with universities in R&D.
    • Worked with Tsinghua University to develop a new technology.

      6. Financial Data:
    • From 2021 to 2023, the company's gross profit margin remained stable at a range of 30-35% and the company's net profit margin remained at around 20%. The company is expected to maintain the current gross profit margin and net profit margin in the next 2 years.
    • In the next two years, the company's revenue and net profit growth rate is expected to maintain a 30% growth rate.

      7. Valuation:
    • The company is the first and currently the only Nasdaq listed company in China that focuses on rural sewage treatment.

      9. A Tremendous Market:
    • The rural sewage treatment market in China is tremendous. It is estimated to reach approximately RMB 200 billion (approximately $29.9 billion) in 2030 (Source: Forward the Economist, January 2018)

      10. Pipeline: 
    • CDTG is also in the process of acquiring four projects for its sewage treatment systems.
    • April 24, 2024, the company announced it has been awarded a contract valued at RMB 85 million (approximately $11.7 million). Initial design and engineering work is underway with CDT and its partner, and the project is scheduled to be completed by the end of 2025. The project represents one of the four recently awarde pipeline projects. 
    • The other three projects are expected to be signed in the second half of 2024. The total contract amount of these projects is about $150 million US dollars, which will support the company's expected high growth in the next two years.

    More Company Highlights:

    • Advanced rural sewage treatment technology includes the company’s quick separation technology for cost-effective and decentralized treatment.
    • Advanced septic tank treatment systems, including the company’s automated mobile system and integrated fixed system.
    • Diversified strategy in application of the company’s septic tank treatment systems in public toilets in urban areas and in service stations along highways, and organic fertilizer production.
    • Extensive operation and marketing network with 11 subsidiaries in 9 provinces in China.
    • Distinguished reputation and close relationships among the state-owned companies, local governments and residential and business property management companies, and recurring or long-term service contracts.
    • Rich experience in completed projects and multiple projects in the pipeline.
    • Experienced management team and personnel with a demonstrated track record.

    Products and Services:

    Rural Sewage Treatment

    • Turn-key solutions: construction of rural sewage treatment plants, installation of our systems, and provision of on-going operation and maintenance services
    • Decentralized treatment system based on quick separation technology
      • Newly emerged biochemical process in the last 5 to 10 years
      • Cost-effective solution for treating 5 tons to 500 tons of sewage per day
      • Sewage is decomposed biochemically by quick separation balls (containing numerous microorganisms)

    Quick Separation Technology

    • A newly emerged biochemical process for sewage treatment in the last 5 to 10 years and effective in treating sewage at small scales.
      • Primary filtration and treatment process occurs inside quick separation balls, which are numerous porous ceramic balls hosting microorganisms collected in a spherical plastic frame 
      • Requires no additional pressure and suspended solids in the fluid accumulate inside the balls with low flow rate
      • Decomposition of organic matters occurs near the surface of the balls and decrease of phosphorus and nitrogen occurs near the core
      • Quick separation technology innovatively creates a varied, aerobic and anaerobic environment in one tank while traditional biochemical methodologies, such as A/O methodology, maintain only one environment in one tank

    Mobile Septic Tank Treatment System

    • The company’s mobile system is composed of an integrated waste treatment system assembled on a vehicle:
      • Modular design for flexibility
      • Continuous operation
      • Reduced odor and noise
      • Highly automated - requires only 2 to 3 workers per system 
      • Capacity of a typical mobile system is 400-cubic-meter of septic tank sewage per day

    Fixed Septic Tank Treatment System

    • The company’s fixed system is an integrated and stand-alone waste treatment system designed for public toilets in cities:
      • Compact structure - only requiring twelve square meters for a system capable of treating twenty tons of sewage per day
      • Adopts quick separation technology 
      • Decomposes solid waste
    • Treats the sewage to meet the Sewage Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015)

    Competitive Strengths Set CDTG  Apart:

    • Advanced rural sewage treatment technology
    • Quick separation technology, technological know-how, and years of operational knowledge
    • Cost-effective solution for decentralized sewage treatment at a small scale 
    • High quality of outflowing water, high degree of automation and integrated equipment with a general lifespan of over 10 years
    • Advanced on site septic tank treatment systems
    • Adaptable to the needs of specific customers and produces treated water that we believe meets applicable government standards
    • High degree of automation and reduced odor and noise
    • Extensive operation and marketing network
    • Numerous completed and successful projects across China, including the Fujian, Jiangxi, Liaoning, and Zhejiang provinces
    • Recognized brand
    • A distinguished reputation and close relationships among the state-owned companies, local governments and residential and business property management companies from which we acquire new projects
    • Full range of sewage treatment solutions
    • Maintenance support, installation, and technical advice
    • Experienced management team and personnel with a demonstrated track record

    Two Industries – Two Ways to Capitalize

    The rural sewage treatment industry's total revenue generated from decentralized rural sewage treatment services and equipment in China increased at a compound annual growth rate of approximately 40.3% from 2015 to 2019 (Source: the Prospective Industry Research Institute, October 2020). 

    The large rural sewage treatment market in China is estimated to reach approximately RMB 200 billion (approximately $29.9 billion) in 2030 (Source: Forward the Economist, January 2018);

    • Low percentage of sewage treatment before discharge: only approximately 22% of the incorporated villages in China treated rural sewage water in 2016 (Source: the Ministry of Environmental Protection of China and the Ministry of Finance of China, December 2016); In addition, the Ministry of Ecology and Environment of China held a press conference in April 2022, and the spokesperson stated that the data of the Ministry of Housing and Urban-Rural Development of China showed that as of 2021, only 28% of rural sewage in China was treated before discharge, and the percentage was up by only 6% during the five years between 2016 and 2022 

    Government support in recent years (as seen below) has also been promising giving CDTG the door to a growing market.

    For the septic tank treatment industry, the Chinese government implemented the new Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) to enhance the treatment of septic tank sewage. Traditional septic tank treatments pump a mixture of solid waste and sewage into a tank truck and transport it to a treatment center for processing. Sewage may be discharged directly onto the ground or into nearby rivers and lakes, which raises environmental concerns. CDTG can effectively treat the sewage from septic tanks in compliance with such government standards by its technology registered as invention patents.

    CTDG is the only company in China that has successfully invented mobile septic tank treatment technology and registered it as a patent!

    Compared with traditional processing methods, CTDG’s septic tank treatment technology can meet the latest government standards, and the company’s technology has been successfully patented!

    The company’s automated mobile system and integrated fixed system is composed of an integrated waste treatment system assembled on a vehicle to allow for transport to septic tanks in all areas. The company’s mobile system is highly automated and requires only two or three workers per system during operation. CDT’s fixed system is an integrated and stand-alone waste treatment system designed for public toilets in cities. It adopts the company’s  quick separation technology and has a compact structure, only requiring twelve square meters for a system capable of treating twenty tons of sewage per day.

    High Quality Research & Development:

    • High-quality research and development team
      • Constantly collect feedback from completed projects
      • Modify integrated equipment and technologies based on previous experiences 
    • As of May 22, 2024, the company had 2 invention patents, 31 utility model patents, and 3 trademarks.
    • Cooperation with third-party institutions
    • High-Tech Enterprise status

    In Conclusion:

    CDT Environmental Technology Investment Holdings Limited (NASDAQ: CDTG), headquartered in Shenzhen, China, is a waste treatment company that designs, develops, manufactures, sells, installs, operates and maintains sewage treatment systems and provides sewage treatment services in China.

    China’s economy remains healthy and continues to grow, providing companies like CDTG exciting upside ahead as a result.

    Given its solid performance in January and February, China has the conditions and support to achieve its full-year growth target of around 5 percent for 2024 through enhanced efforts, NBS spokesperson Liu Aihua said.

    CDTG is at the forefront of a significant industry in China and has established an extensive operation.

    With strong financial results reported for 2023, and guidance of revenue and net income growth of approximately 30 and 35 percent for 2024, numerous patents, government recognition, a growing customer base, and services that uniquely stand apart from competitors, CDTG may see blue-sky growth ahead.

    The company's recent IPO on the NASDAQ Capital Markets makes it an exciting time to have CDTG on your radar! Start your research!

    START YOUR RESEARCH NOW

    Learn More about CDT Environmental Technology Investment Holdings Limited. by gaining access to their comprehensive investor presentation

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    The Publisher may hire service providers to disseminate the Information about the Issuers and the Publisher may not have control over such parties. The Publisher does do not verify the Information it receives from any party or information disseminated by other service providers. As such, you should not rely on the Information when making an investment decision.

    The Information may contain statements asserting that an Issuer’s stock price has increased over a certain period of time which may reflect an arbitrary period of time, and such statements are not predictive or of any analytical quality. As such, Recipients should not rely on the Information as an analysis of the present or future potential of an Issuer or its securities. If you rely on the Information, you will likely lose your investment.

    If any percentage gain of an Issuer’s securities from the previous day’s close is included in the Information, it is not and should not be construed as an indication that the future stock price or future operational results will reflect gains or otherwise prove to be advantageous to an investment in an Issuer. If you rely on the previous days close as an indication of performance, it could cause you to lose your investment.

    Past results of an Issuer do not guarantee future performance. The Information should not be interpreted in any way, shape, form or manner whatsoever as an indication of an Issuer’s future stock price or future financial performance.

    Recipients should consider the securities of the Issuers as high risk, unstable, unpredictable and illiquid which may make it difficult for Recipients to sell any securities of the Issuers that they purchase. During the Campaign the trading volume and price of the securities of each Issuer will likely increase significantly. When the Campaign ends, the volume and price of the Issuer will likely decrease dramatically. As a result, Recipients who purchase during the Campaign or as a result of the Campaign will probably lose most, if not all, of their investment.

    Smallcaps Daily’s publication of the Information involves actual and material conflicts of interest including but not limited to the following: The Publisher receives monetary and/or securities compensation in exchange for disseminating the Information about the Issuers. The Publisher only publishes favorable information about the Issuers and does not publish any negative information about the Issuers. The Paying Parties likely hold securities of an Issuer which they acquired from the Issuer, affiliate or non-affiliate shareholders or from its own open market purchases before, during or after the Campaign. The Paying Parties may have acquired these securities for services or at prices lower than that paid by Recipients. The Paying Parties may sell these securities during the Campaign while the Publisher publishes the Information recommending that Recipients purchase. Selling by a Paying Party will likely cause Recipients who purchase securities of any of the Issuers to suffer losses.

    COMPENSATION

    We do not own any shares in CDTG. The owners of Smallcaps Daily who also are operators of this landing page have been compensated up to Twenty-five Thousand Dollars Cash ($25,000) via bank wire transfer directly from CDTG for a Marketing Program regarding CDTG with a start date of 05/30/2024

     


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