Intco Recycling's Revenue Up 16.13% Year-on-Year in H1, Profit Down 6.01%

According to the recent announcement by Yingke Regeneration, the company's operating revenue for the first half of the year increased by 16.13% year-on-year, while the net profit attributable to shareholders of the listed company decreased by 6.01% year-on-year. This was mainly due to the overall appreciation trend of the RMB against the US dollar during the reporting period, where exchange rate fluctuations caused exchange gains and losses that impacted financial expenses. After excluding the impact of this factor, the company's operating profitability, revenue, and net profit all maintained growth in the same direction.

In addition, the net profit attributable to shareholders of the listed company, after deducting non-recurring gains and losses, decreased by 37.87% year-on-year, and the basic earnings per share after deducting non-recurring gains and losses decreased by 38.27% year-on-year. This was mainly due to the use of own funds to purchase certain financial products to increase the efficiency of fund utilization during the reporting period. The fair value changes and maturity gains of these products are accounted for under non-recurring gains and losses. The change in income this period increased compared to the same period last year. Yingke Recycle believes that with its deep accumulation of over 20 years in the renewable plastics field, it has built a global channel network covering three business segments: recycling, regeneration, and utilization, forming a four-main product matrix of "finished frames, decorative building materials, recycled plastics, and environmental protection equipment." From the upstream of the industrial chain, the company owns equipment for compaction, granulation, and cleaning, achieving a transformation from a single equipment supplier to a comprehensive system solution provider. This has effectively improved recycling efficiency and quality and opened up new profit channels. The advantage of front-end environmental protection equipment ensures stable raw material supply and enhances customer loyalty, thereby strengthening the company's risk resistance capability.

In the midstream segment, the production of various recycled plastic particles such as r-PS, r-PET, and r-PE demonstrates the company's technical expertise in plastic recycling and modification, providing high-quality, environmentally friendly raw materials for downstream product manufacturing and achieving efficient resource utilization. In the downstream segment, high-value-added home consumer products such as finished frames and decorative building materials leverage channel advantages to market globally, with revenue accounting for over 75% during the reporting period, laying a solid foundation for stable growth in operating performance.

The recycling, regeneration, and utilization stages operate independently yet are closely interconnected. The vertically integrated operational model results in significant synergies among diverse products. From raw material supply to product manufacturing and sales, the advantages of each stage reinforce one another, creating a strong competitive barrier. Since 2017, Yingke has established its first overseas factory in Selangor, Malaysia, marking the beginning of its journey towards global manufacturing from global procurement and marketing. Subsequently, Yingke set up its second overseas factory in Thanh Hoa Province, Vietnam. In 2024, the full production and sales of the first phase of this factory injected strong momentum into the company's performance growth. In the second quarter of 2025, the second phase of this factory will officially commence production. In the latter half of the year, Yingke will accelerate the construction of the third phase of the Vietnam factory. Once operational, this will continue to enhance the local production layout, forming a more synergistic manufacturing system.