YDDL 2025 Business and Financial Overview (III): Gross Margin Changes and Operational Efficiency
In fiscal year 2025, $One and one Green(YDDL)$ ’s gross margin increased from 19.77% in the prior year to 23.94%, representing an improvement of approximately 417 basis points. Gross margin is one of the key indicators of annual operating performance and reflects the combined effects of changes across raw materials, products, production and sales during the reporting period.
For recycled metals and industrial materials businesses, gross margin is typically affected by multiple factors, including raw material procurement prices, product selling prices, product mix, smelting efficiency, energy costs, logistics costs and capacity utilization. During the reporting period, YDDL’s gross profit increased by 49% year over year, outpacing revenue growth, while gross margin also improved compared with the prior year.
The improvement in YDDL’s gross margin in 2025 was related to multiple factors, including growth in core business, changes in product mix, raw material procurement and production operations. As revenue from recycled metal products such as copper alloy increased, YDDL’s product mix changed to some extent during the reporting period. Meanwhile, capacity ramp-up and production process management also had an impact on unit costs and operational efficiency.
In its daily operations, YDDL continues to focus on raw material supply stability, production efficiency, energy cost control and changes in downstream customer demand. As the recycled metals business is related to commodity prices, raw material costs, energy costs and logistics expenses, gross margin may fluctuate across different periods. YDDL will continue to strengthen coordinated management across raw material procurement, production and sales in its future operations.
Looking ahead, YDDL will continue to advance the release of processing capacity and adjust its product mix, while carrying out operational management around raw material procurement, production efficiency, energy usage and customer structure. The Company will also continue to disclose relevant operating and financial information in accordance with regulatory requirements.
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