YDDL 2025 Earnings Call Q&A: Long-Term Opportunities from Hazardous Waste Import Licenses to AI Infrastructure Metal Demand

The following content is compiled from $One and one Green Technologies (YDDL.US)$ the Q&A session of the 2025 annual earnings call.

Matthew: I'm not very familiar with the company's story. Could you please introduce the regulatory framework for the company's hazardous waste import license? How difficult is it to obtain and maintain this license? And how does this affect the competitive landscape the company faces in the Philippines?

CFO Chun Kit Wong: The license we hold operates under the framework of the Basel Convention.

The Basel Convention regulates the transboundary movement of hazardous waste globally. In practice, this means that a company engaged in our line of business needs authorization from the Philippines Environmental Management Bureau (EMB) to obtain a full operating license, a valid emissions permit, and specific import-export permits issued by the Philippine Customs Bureau. Moreover, each of these permits must be continuously maintained in good compliance. These are not licenses routinely granted to new entrants. Our emissions system undergoes annual review and approval by the EMB. In fact, the number of competitors able to enter this field is relatively limited. We will continue to operate according to the highest compliance standards to safeguard this position. We believe that this regulatory qualification system is one of the most enduring assets the company possesses.

Matthew: On April 6, the White House expanded the scope of Section 232 tariffs on copper, aluminum, and steel to apply to the full customs value of imported goods. Primary metals are subject to a 50% tariff, derivatives to a 25% tariff, while copper scrap is exempt. How will such a large-scale reshaping of global metal flows impact the company's competitive position?

YDDL CFO Chun Kit Wong: The direct impact on us is limited. We primarily sell to the Asia-Pacific region rather than the US market. Our raw material inflows are regulated by Philippine customs, not US trade policy. However, the indirect effects are more noteworthy. When the US imposes a 50% tariff on copper products, it reshapes global metal flows. Some of that supply is now seeking alternative demand markets in the Asia-Pacific region, which is the market we already serve. Our access to certain categories of e-waste and metal scrap is supported by a bilateral regulatory approval process between exporting jurisdictions and the Philippines. Once approved, a specified quantity of materials is authorized and designated for delivery to us. This mechanism gives the company better control over the rhythm of raw material supply and helps mitigate fluctuations in raw material costs. Compared to Western recycling companies operating in different cost environments, this distinction may gradually become apparent to institutional investors by 2026.

Matthew: A recent analysis report pointed out that AI is creating a 'dual shock.' On the one hand, it compresses profit margins in the software industry. On the other hand, it turns US hyperscale cloud service providers into the largest capital expenditure entities in history. By 2026, hyperscale cloud providers' capital expenditures are projected to reach approximately $1.5 trillion, with over $650 billion in 2026 alone. This construction cycle will consume vast amounts of copper, aluminum, and specialty alloys. How do you view the impact of this on demand in the company's sector?

YDDL CFO Chun Kit Wong: A modern hyperscale data center may require thousands of tons of copper just for power distribution and cooling systems. Additionally, it requires significant amounts of aluminum and specialty alloys for power infrastructure. Scaling this demand to the global construction cycle, combined with the independent copper and aluminum demand driven by the EV transition, creates two parallel structural demand drivers. Each driver, viewed individually, could result in historically rare levels of demand for these metal categories. Let me clarify what this means for the company. We are not direct suppliers to any hyperscale cloud service providers. Our customers are manufacturers in the Asia-Pacific region. But when global metal demand tightens in the categories we handle, such a market environment will favor operators with licenses, compliant capacity, and sufficient processing capabilities. And this is precisely the market position the company has already established.

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