Company overview

CDT helps local governments in China treat rural sewage by supplying its proprietary equipment, building or renovating treatment plants, and operating and maintaining them. It usually reaches these projects through state-owned construction companies: CDT supports their bids with its technology, then supplies equipment and services if they win. Those companies are its main customers, while local governments fund and use the systems. This work generates most of CDT’s revenue.

Revenue comes from a small group of customers, with the Xiamen Xinglin Pipeline Network Renovation Project supplying a large share. Cash collection depends on government inspections and payment approvals, which can also wait for other contractors to finish their work. Delays in these processes have held up major customer payments, making collection timing central to funding CDT’s operations.

CDT is winding down its smaller septic-tank treatment service. It is exploring turning organic waste into energy, including hydrogen, but that business has not generated income.

The listed company is a Cayman Islands holding company operating through Chinese subsidiaries. Chinese rules limit subsidiary dividends to distributable accumulated profits after required reserves, and overseas transfers for foreign-currency debt repayment or other capital spending require approval or registration.