Earnings call transcript: One and One Green Tech Q2 2025 sees strong growth

One and One Green Tech Ltd (symbol:YDDL) reported robust financial results for the second quarter of 2025, showcasing significant growth across key performance indicators. The company experienced a notable 50.7% increase in total revenue compared to the first half of 2024, reaching $28.1 million. The stock's premarket activity saw a decrease of 4.21%, with shares priced at $5, following a previous day’s close at $5.22, reflecting a 31.82% increase from the last close.

Key Takeaways

• Total revenue surged by 50.7% to $28.1 million.
• Copper ingot sales saw a remarkable 125% growth.
• Gross margin improved significantly to 35.3%.
• The company holds zero interest-bearing debt.
• Stock experienced a 31.82% increase, followed by a premarket dip of 4.21%.

Company Performance

One and One Green Tech Ltd demonstrated strong performance in Q2 2025, driven by substantial growth in its core business areas. The company has capitalized on the growing demand for sustainable recycling solutions, particularly in the Asia-Pacific region, which represents a significant portion of the global metal recycling market. The strategic expansion in the Philippines and preferential trade access to major markets have positioned the company favorably against competitors.

Financial Highlights

• Revenue: $28.1 million, a 50.7% increase from H1 2024.
• Copper ingot sales: $18.5 million, up 125% from $8.2 million.
• Gross profit: $7.1 million, a 74% increase.
• Gross margin: 35.3%, up from 21.9%.
• Net income: $3.8 million, a 59.5% increase.
• Diluted EPS: $0.0736, up from $0.0461.
• Total assets: $49.9 million.
• Shareholders' equity: $25.3 million.

Market Reaction

The company's stock price saw a significant surge of 31.82% in the regular trading session, reflecting investor optimism following the earnings release. However, in premarket trading, the stock experienced a 4.21% decline, with shares priced at $5. This movement suggests some investor caution, possibly due to broader market conditions or profit-taking activities.

Outlook & Guidance

Looking ahead, One and One Green Tech Ltd remains committed to expanding its capacity and pursuing growth opportunities. The company aims to capitalize on global supply chain restructuring and maintain operational excellence. The projected EPS for FY2025 and FY2026 stands at $0.19 and $0.24, respectively, with revenue forecasts of $64.16 million and $72.18 million.

Executive Commentary

• "We are not just recyclers. We are a critical link in securing clean copper, aluminum, strategic metals, and precious metals," stated Matthew Abenante, President of Strategic Investor Relations.
• "The convergence of trade policy, critical materials demand, and supply chain security concerns create a once-in-a-generation opportunity," Abenante added.
• "We are witnessing a fundamental transformation in global trade dynamics," he concluded, reflecting the company's strategic positioning.

Risks and Challenges

• Supply chain disruptions could impact raw material availability.
• Fluctuating global metal prices may affect profitability.
• Regulatory changes in environmental policies could alter operational costs.
• Economic slowdowns in major markets may dampen demand.
• Intense competition in the metal recycling industry could pressure margins.

The company continues to navigate these challenges while leveraging its strategic advantages and market position to drive future growth.

Full transcript - One and One Green Tech Ltd (YDDL) Q2 2025:

Conference Operator: Thank you for joining the One and One Green Technologies Conference call for the first half of the fiscal year 2025. Please take note that today's call is being recorded. It is my pleasure to introduce Matthew Abenante, President of Strategic Investor Relations. Thank you. You may begin.

Matthew Abenante, President of Strategic Investor Relations, One and One Green Technologies: Thank you, Operator, and thank you, everyone, for joining us today. Our earnings press release was distributed yesterday and can be found on the Investor Relations section of the One and One Green Technologies website at ir-onepgti.com. Joining us on the call today will be Chai Fan Yan, Chairman and Chief Executive Officer, along with Chun Kit Wong, Chief Financial Officer. Before we begin, I want to remind our listeners that any statements on this call that are not historical facts are forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the company uses words such as may, will, intend, should, believe, expect, anticipate, project, estimate, or similar expressions that do not relate solely to historical matters, it is making forward-looking statements.

Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks. Investors are cautioned not to place undue reliance upon any forward-looking statements on today's call. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. With that, I would like to turn the call over to our first speaker, Ms. Yan, Chairman and Chief Executive Officer of One and One Green Technologies. Hello, Ms. Yan.

Chai Fan Yan, Chairman and Chief Executive Officer, One and One Green Technologies: Thank you, Marc, and thank you all for joining us today for our first earnings conference call as a public company. We are very pleased to report an exceptionally strong start to 2025. With record financial performance for the first half of the year, our results reflect our team's focused execution, our strong market position, and the robust demand for our core products. Before I turn the call over, I want to take a moment to acknowledge our IPO on the Nasdaq, which was a momentous achievement for One and One Green Technologies, reflecting the culmination of years of hard work, dedication, and innovation from our entire team. We are deeply honored by the support we have received from the investment community, and we are excited about the opportunities that lie ahead as a public company.

This is an exciting new chapter for One and One Green Technologies, and we are confident that our strategic positions ask for continued growth and value creation for our shareholders. Thank you.

Matthew Abenante, President of Strategic Investor Relations, One and One Green Technologies: Thank you, Ms. Yan. Now, I would like to provide a brief overview of our company. What began as a targeted effort in scrap metal processing has evolved into a comprehensive recycling enterprise driven by a commitment to environmental stewardship and principles of the circular economy. Our commitment to sustainability traces back to the founding of our core operations in the Philippines, where we pioneered innovative approaches to waste management and resource recovery. We have developed a robust platform that transforms waste materials into valuable resources, promoting efficiency and minimizing our ecological impact throughout the entire value chain. With our focus on waste materials and scrap metal recycling, we generate all our revenues from these operations, emphasizing high-quality processing, regulatory compliance, and sustainable practices. Our business model integrates advanced collection, sorting, and recovery techniques, supported by efficient logistics and a commitment to innovation in green technologies.

This structure positions us to expand our impact in the global recycling sector, serving industries that prioritize environmental responsibility and sustainability. For the first six months of the fiscal year, we delivered revenue of $28.1 million, a significant increase of over 50% compared to the same period last year. This top-line growth was driven by outstanding performance in our copper ingot segment, fueled by strong demand across key markets in the Asia-Pacific region. More importantly, this growth was highly profitable. Our gross margin expanded by over 340 basis points to 25.3%, and our net income grew by nearly 60% to $3.8 million. These results demonstrate the strength of our business model and our ability to execute with discipline. Beyond the numbers, I want to emphasize the strategic context in which we are operating. We are witnessing a fundamental transformation in global trade dynamics.

As companies and nations seek to de-risk their supply chains, strategic partners in allied countries, such as the Philippines, become increasingly essential. One and One is perfectly positioned to be that partner for clean copper, aluminum, strategic metals, and precious metals like gold and silver, which are recovered from scrap sources, offering both supply chain security and materials critical to advanced manufacturing and environmental sustainability. I will now turn the call over to our Chief Financial Officer to provide a more detailed review of our financial performance.

Chun Kit Wong, Chief Financial Officer, One and One Green Technologies: Thank you, Matthew. I will now walk you through our financial results for the six month end, June 30, 2025. Total revenue for the first half of 2025 was $28.1 million, representing a 50.7% increase from $18.7 million in the first half of 2024. This $9.4 million increase was primarily driven by our copper ingot sales, which grew to $18.5 million from $8.2 million in the prior year period. This reflects the strong market demand Ms. Yan mentioned. Our aluminum alloy sales also increased modestly to $8.6 million. Our gross profit for the period was $7.1 million, a remarkable 74% increase from $4.1 million in the first half of 2024. Our gross margin expanded significantly to 35.3%, up from 21.9% in the same period last year.

This 341 basis point improvement is a direct result of our effective supply chain management, which allowed us to procure copper and aluminum alloy at lower purchase prices. Total operating expenses were $1.4 million, compared to $1.1 million in the first half of 2024. This increase is primarily attributable to approximately $354,000 in one-time non-recurring expenses related to our planned initial public offering, including audit and consulting fees. Income from operations increased to $5.7 million, nearly doubling from $3.0 million in the prior year. Our net income for the first half of 2025 was $3.8 million, a 59.5% increase from $2.4 million in the first half of 2024. This resulted in a diluted earnings per share of $0.0736, up from $0.0461. We ended the period with a strong and healthy balance sheet. Total assets were $49.9 million, and total shareholders' equity stood at $25.3 million.

Importantly, we continued to operate with no interest-bearing debt. Cash used in operating activities was $1.7 million for the period. There was a planned and strategic use of cash, primarily directed towards increasing our inventory to $20.6 million. This investment ensured we are well-positioned to meet the strong and growing demand from our customers in the second half of the year. In summary, we delivered a very strong financial performance characterized by strong revenue growth, significant margin expansion, and increased profitability, all while maintaining a debt-free balance sheet. With that, I will turn the call back over to Matthew for closing remarks.

Matthew Abenante, President of Strategic Investor Relations, One and One Green Technologies: Thank you. Looking ahead, we remain very optimistic about our future, and I want to share why we believe One and One is positioned at the intersection of several powerful global trends. First, let me discuss our strategic advantages. The Philippines offers unique competitive advantages in the global metals recycling market. The country has minimal duties on copper and aluminum scrap while providing preferential trade access to U.S., Japanese, and South Korean markets, where Chinese metals face substantial anti-dumping duties. One and One holds a government-issued license to import hazardous waste as raw materials, with a permitted annual processing capacity of approximately 300,000 tons. This provides significant operational flexibility as we scale our business. Moreover, Philippine-origin processed metals benefit from favorable trade agreements with major markets, including the United States, Japan, and South Korea, where Chinese metals face substantial anti-dumping duties and high tariffs. The recent escalation of U.S.

Tariffs on Chinese imports further underscores the strategic value of alternative supply sources in allied nations. This is not just about tariffs; it is about supply chain resilience and national security considerations that are reshaping global trade. The market opportunities before us are substantial. According to a study published by Towards Chemical and Materials, a sister firm of Precedence Research, the global metal recycling market is projected to grow from $590 billion in 2025 to over $1 trillion by 2034, with the Asia-Pacific region, where One and One Green Technologies operates, representing approximately 45% of this expanding market. We operate in a growth industry within a growth region with structural competitive advantages. Our strategy is clear. We will continue to focus on our core high-demand products while leveraging our operational expertise to maximize profitability. We are committed to disciplined cost management and operational excellence.

The strategic inventory build in the first half ensures that we can meet customer demand without interruption. With our strengthened balance sheet following our IPO, we now have even greater flexibility to pursue growth opportunities as they arise. Let me conclude with this perspective. The convergence of trade policy, critical materials demand, and supply chain security concerns create a once-in-a-generation opportunity. Our focus is on executing our capacity expansion plan and demonstrating that One and One can be a reliable, strategically valuable partner in the global transition to more resilient supply chains. We are not just recyclers. We are a critical link in securing the clean copper, aluminum, strategic metals, and precious metals that power everything from electric vehicles to defense systems to renewable energy infrastructure. We are extremely proud of our first-half results.

We have demonstrated our ability to grow our business profitably and are confident in our strategy to continue delivering long-term value to our shareholders. We are well-positioned to capitalize on the growing demand for sustainable and responsible recycling solutions in an era where supply chain security has become a strategic imperative. Thank you again for your time and interest in One and One Green Technologies and for participating in today's call. We look forward to providing additional updates in the near future. In the meantime, you can reach me directly at matthew@strategic-ir.com. Thank you.

Conference Operator: Ladies and gentlemen, that concludes our conference for today. Thank you for your participation. You may now disconnect.

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