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Thank you for joining the One and One Green Technologies Earnings Conference Call for 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. Please go ahead.

Thank you, operator, and thank you everyone for joining us today. Our earnings press release was distributed earlier today and is available in the investor relations section of the One and One Green Technologies website at ir.onepgti.com. Joining us on the call today will be Tina 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, Tina Yan, Chairwoman and Chief Executive Officer of One and One Green Technologies. Hello, Ms. Yan.

Thank you, Matt, thank you all for joining us today. Fiscal year 2025 was a defining year for One and One. We delivered record revenue of $65.8 million, nearly doubled net income to $11.8 million, expanded gross margin by more than 400 basis points, and completed our initial public offering on NASDAQ. These results reflect the disciplined execution of a business model. We have been building for more than a decade a licensed capacity reach, environmentally responsible recycling platform, serving real industry demand across Asia Pacific. Our 2025 results validated our operating model. Our core copper alloy ingot business grew revenue by 37% year-over-year, driving by sustained demand manufacturing across Asia Pacific, and by our ability to secure favorable raw material pricing through long-standing supplier relationships.

That combination demand at the top line and the softening on input costs is what produces the margin execution expansion you see in our numbers. Going forward, we end 2026 with a clear roadmap. Our growth strategy is focused on 3 priorities: geographic expansion into Southeast Asia, Japan, South Korea, Europe, and the Americas. Building an International Business Environment team with the language and cultural expertise to support that expansion, and preparing for the launch of the dedicated lithium battery recycling facility within the next 3 years to capture the end-of-life opportunity created by the global electric vehicle transition. We believe these 3 priorities, working from the foundation of a government-issued hazardous waste import license, permitted annual process capacity of approximately 300,000 tons, and proprietary emissions technology approved by the Environmental Management Bureau of the Philippines, position One and One for a durable multi-year growth path.

I want to thank you, shareholders, for the confidence they have placed in us, our employees, for the execution that made this year possible, and our customers and suppliers for the partnerships that sit at the center of everything we do. I will now turn the call over to our Chun Kit Wong, our CFO, to provide a more detailed business overview and the review of our financing performance.

Thank you, Ms. Yan. Good morning to everyone on the call. I will now provide a brief overview of our business for those who may be newer to the One and One story and walk you through our fiscal 2025 financial results. One and One Green Technologies is a Philippines-based recycler of non-ferrous metals and industrial materials. We hold a government-issued license to import hazardous waste as raw materials into the Philippines, along with a full complement of operating permits from the Bureau of Customs, the Department of Environment and Natural Resources, and the Environmental Management Bureau. Our permitted annual processing capacity is approximately 300,000 tons. We operate three production sites in Bulacan Province, and we employ 90 staff, including seven engineers.

We take in electronic waste, scrap metal, and industrial byproducts from suppliers in Korea, Japan, Southeast Asia, Europe, and the United States, and we transform those inputs into copper alloy ingots, aluminum scraps, brass alloy ingots, and related products that are sold into casting, vehicle manufacturing, and equipment manufacturing end markets. We believe our competitive position rests on three pillars. First, the regulatory framework consisting of our hazardous waste import license and our full suite of environmental permits, difficult to obtain in creating meaningful barriers to entry. Second, our proprietary exhaust gas recirculation system, approved annually by the Environmental Management Bureau, captures ash and slag from emissions for further metal recovery, improving both yield and compliance.

Third, a supplier base of over 100 counterparties across multiple geographies, supported by supply arrangements with our key partners and a regulatory approval and registration process under which specified quantities of certain materials are designated for delivery to us, which has proven valuable in managing raw material cost volatility. Turning to the numbers. Total revenue for fiscal year 2025 was $65.8 million, compared to $53.5 million in fiscal 2024, an increase of $12.4 million or 23% year-over-year. The growth was concentrated in our two largest product lines. Copper alloy ingot revenue grew to $45.1 million, up from $32.8 million in the prior year.

On a volume basis, copper alloy sales increased 37% year-over-year, reflecting sustained demand from manufacturers across the Asia-Pacific region and our ability to meet that demand with consistently specified output. Aluminum alloy revenue was $19.8 million, compared to $15.5 million in 2024. Another year of meaningful growth in a product line where we have been scaling carefully to match customer specifications. Brass alloy ingot revenue was $994,000, compared to $4.3 million in 2024. That decline reflects a shift in demand within specific customer segments that we continue to monitor. We are not currently assuming a recovery in this product line in our near-term plans, and I would encourage investors to model the business on the strength of copper and aluminum rather than on a brass rebound.

Gross profit for the year was $15.8 million, up from $10.6 million in fiscal 2024, a 49% increase. Gross margin expanded to 23.94%, compared to 19.77% in the prior year, an improvement of 417 basis points. The margin expansion was driven principally by lower purchase prices for copper and aluminum raw materials, which reflects two things. The benefit of the regulatory approval and registration process that supports visibility over certain inbound material volumes. Second, disciplined execution by our procurement team. Operating expenses for the year were $3.9 million, compared to $2.5 million in 2024. The year-over-year increase of approximately $1.4 million was driven by two non-recurring items tied to our transition to public company status.

Approximately $363,000 of one-time listing related expenses incurred in connection with our October IPO and approximately $1.1 million of additional senior executive compensation put in place in preparation for public company requirements. Income from operations was $11.9 million for the year, up from $8.1 million in 2024, an increase of 47%. Net income was $11.8 million, compared to $6.5 million in the prior year, an 82% increase. Earnings per share, both basic and diluted, were $0.2254, compared to $0.1246 in fiscal 2024, an increase of approximately 81%.

The gap between the roughly 47% growth in operating income and the 82% growth in net income is explained primarily by a lower effective tax rate in 2025 relative to 2024. Moving to the balance sheet. As of December 31st, 2025, total assets were $56.0 million, up from $36.5 million at the end of 2024. Total shareholders' equity was $41.8 million, more than double the $20.7 million at year-end 2024. We closed the year with no interest-bearing debt on the balance sheet, a capital structure we have maintained throughout our history and one we intend to preserve as we fund our growth. Cash and cash equivalents at year-end were $957,000, compared to $1.85 million at the end of 2024.

Net cash used in operating activities was $9.0 million in 2025, compared to $2.0 million of cash provided by operations in 2024. The shift was driven by working capital investment. Specifically, accounts receivable increased by $9.7 million as the revenue base grew and customer payment terms extended in line with industry norms. Inventories increased by $2.1 million to support higher production volumes. Advances to suppliers increased by $2.1 million as we secured raw material positions under our lockup arrangements, and accounts payable declined by $4.1 million as we managed supplier relationships through the IPO period. The business generated $11.8 million in net income.

As shown on the operating cash flow line, net income is being redeployed into the working capital required to support a larger revenue base going forward. Net cash used in investing activities was $2.7 million, which included approximately $736,000 of capital expenditures and a $2.0 million loan to a third party. Net cash provided by financing activities was $10.1 million, substantially all of which represented the net proceeds from our October IPO. Gross proceeds from the offering, including the full exercise of the underwriter's over-allotment, were approximately $11.5 million, with the difference reflecting underwriting discounts and other offering expenses.

Taken together, the full year 2025 picture is a business that grew revenue by 23%, expanded gross margin by more than 400 basis points, nearly doubled net income, invested aggressively in working capital to support continued growth, and capitalized itself through the public markets without taking on debt. We believe that is the right profile for the stage we are in. Looking ahead to 2026 and beyond, our operating priorities are focused on three areas. First, geographic expansion. We are working to deepen our sourcing of raw materials from Japan and South Korea and to expand our customer footprint into additional Southeast Asian, European, and American markets. To support that expansion, we are recruiting an international business development team with the language skills and cultural expertise to operate across these markets. Second, new processing capacity.

We expect to build out an additional processing facility within the next 3 years dedicated to lithium battery recycling. According to the International Energy Agency, global electric vehicle sales exceeded 17 million units in 2024, with a compound annual growth rate of approximately 30%. The first generation of lithium batteries from these vehicles is now approaching the end of life, and we believe our existing licensing framework, environmental infrastructure, and technical capability position us to be an early mover in recovering these materials. Third, disciplined capital deployment. Our priority is to deploy capital into the highest returning opportunities, whether that is organic capacity, selective acquisitions that strengthen our technology position, or investments that deepen our supplier relationships. Any material capital commitment will be reviewed and considered by our board. With that, I will turn the call back to Matthew for questions.

Thank you, and thanks to everyone for submitting their questions. Our first question: I am new to the One and One story. Can you walk us through the regulatory framework for your hazardous waste import license? How difficult is it to obtain and maintain, and how does that shape the competitive dynamics you face in the Philippines?

The license we hold operates under the Basel Convention, which governs the transboundary movement of hazardous waste worldwide. In practice, that means a company operating in our space needs authorization from the Environmental Management Bureau of the Philippines, a full permit to operate, a valid discharge permit, and specific import and export permits issued through the Bureau of Customs, and each of those has to be maintained in good standing on an ongoing basis. These are not routinely granted permits to new entrants. Our emissions system is reviewed and approved annually by the EMB. The practical effect is that the competitive field in our space is structurally limited, and we intend to continue operating at the highest compliance standard to protect that position. We view this regulatory footprint as one of the most durable assets the company holds.

Our next question. On April 6th, the White House expanded Section 232 tariffs on copper, aluminum, and steel to apply to the full customs value of imported articles. 50% on primary metals and 25% on derivatives, with copper scrap exempted. How does a reshuffling of global metals flows of this magnitude affect One and One's competitive position?

Our direct exposure is limited. We sell primarily into Asia-Pacific, not the United States, and our raw material inflows are governed by Philippine customs, not U.S. trade policy. The indirect picture is more interesting. When the U.S. applies a 50% tariff on copper articles, it reshapes global metal flows, and some of that supply is now seeking alternative demand in the Asia-Pacific markets we already serve. Our access to certain categories of waste electronic and metal scrap materials is supported by a bilateral regulatory approval process between the exporting jurisdiction and the Philippines. Once approved, specific quantities of materials are authorized and designated for delivery to us, which provides supply visibility and helps mitigate raw material cost volatility. The contrast with Western recyclers operating in a very different cost environment is something we expect to become more visible to institutional investors over the course of 2026.

Recent analyst reports argue that AI is creating a dual shock, compressing margins in software while turning the U.S. hyperscalers into the largest capital spenders in history. Roughly one and a half trillion dollars of hyperscaler CapEx through 2026. Over $650 billion in 2026 alone. A build-out that consumes enormous volumes of copper, aluminum, and specialized alloys. How do you see that affecting demand in your space?

A single modern hyperscale data center can require thousands of tons of copper for power distribution and cooling, as well as substantial amounts of aluminum and specialized alloys for power infrastructure. Multiply that across the global build-out, layer it on top of the independent copper and aluminum demand from the EV transition. You have two structural demand drivers operating in parallel, each among the largest demand events in the history of these categories. I want to be precise about what this means for us. We are not a direct supplier to any hyperscaler. Our customers are manufacturers across the Asia-Pacific. When global metals demand tightens across the categories we process, that is a condition that favors licensed operators with permitted capacity-rich positions. That is the position we have built.

Well, thank you. That's our last question. Again, we wanna thank everyone 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 [email protected]. Goodbye.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.