YDDL Fiscal Year 2025 Business and Financial Overview (Part III): Gross Margin Trends and Operational Efficiency

In fiscal year 2025, $One and one Green Technologies (YDDL.US)$ gross margin improved to 23.94% from 19.77% in the prior year, an increase of approximately 417 basis points. Changes in gross margin are a key indicator of annual operating performance and reflect comprehensive shifts across multiple areas during the reporting period, including raw materials, products, production, and sales.

For businesses related to recycled metals and industrial materials, gross margin is typically influenced by a combination of factors, including raw material procurement costs, product selling prices, product mix, smelting efficiency, energy costs, logistics expenses, and capacity utilization. During the reporting period, YDDL’s gross profit rose by 49% year-over-year, outpacing revenue growth, and gross margin also improved compared to the prior year.

YDDL's gross margin improvement in 2025 is attributable to multiple factors, including core business growth, shifts in product mix, raw material procurement, and production operations. During the reporting period, YDDL's product mix changed somewhat due to increased revenue from recycled metal products such as copper alloys. Additionally, capacity ramp-up and production process management have influenced unit costs and operational efficiency.

In its day-to-day operations, YDDL continuously monitors raw material supply stability, production efficiency, energy cost control, and changes in downstream customer demand. Given that the recycled metals business is linked to commodity prices, raw material costs, and energy and logistics expenses, gross margins may fluctuate across different periods. YDDL will continue strengthening integrated management across the raw material, production, and sales functions in future operations.

Going forward, YDDL will continue advancing capacity utilization and product mix optimization, focusing its operational management on raw material procurement, production efficiency, energy consumption, and customer mix. The company will also continue disclosing relevant operational and financial information in accordance with regulatory requirements.

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