Breaking Down Yechiu Metal Recycling (China) Ltd. Financial Health: Key Insights for Investors

From its founding in 1984 in Kempas, Malaysia, Yechiu Metal Recycling Ltd. has grown into a global recycler of aluminum alloys with operations extending to China and the United States, and is recognized as China's first secondary aluminum company listed on the A-share market; specializing in environmentally compliant ingots such as ADC12, ALSI9CU3, and A380, Yechiu pairs a mission to "pursue excellence, seek sustainable development, rise to meet challenges, and expand the business internationally" with a vision to "expand the recycling business and create a first-class secondary aluminum facility" while embedding core values of loyalty, responsibility, efficiency, discipline, and teamwork into operations, quality control through advanced testing and ERP systems, and adherence to Chinese environmental regulations as well as international standards like EU ROHS and REACH to drive its ambition to become the world's number one secondary aluminum company.

Yechiu Metal Recycling Ltd. (601388.SS) - Intro

• To deliver premium secondary aluminum products that enable customers to reduce carbon footprint and raw-material consumption while maintaining competitive cost and performance.
• To lead industry transformation toward circularity by scaling recycled-material supply chains and advancing low-carbon production technologies.
• To generate sustainable value for shareholders, employees and communities through disciplined financial management and continuous operational improvement.

• To become the world's number one secondary aluminum company, recognized for quality, sustainability and innovation.
• To expand global footprint and throughput capacity while achieving best-in-class environmental performance and customer service.

• Environmental stewardship - prioritize emissions control, waste minimization and resource recovery.
• Quality & compliance - meet or exceed regulatory and customer specifications (EU ROHS, REACH and Chinese environmental standards).
• Customer focus - deliver reliable supply, material traceability and technical support.
• Innovation - invest in process optimization, testing technologies and digital ERP systems.
• Integrity & safety - maintain ethical sourcing and safe workplaces across all sites.

• Manufacturing footprint: Headquartered origins in Kempas, Malaysia; major production hubs in eastern China; commercial recycling/processing presence in the United States for automotive scrap streams.
• Aggregate annual melting capacity: ~350,000 to 450,000 metric tons (FY recent range).
• Key end markets: Automotive die-casters (40% revenue mix), electronics & consumer goods (30%), construction & industrial components (30%).

• Recycling rate: Processes >90% post-industrial and post-consumer aluminum feedstock into secondary ingots.
• Energy intensity: Ongoing projects targeting a 15-25% reduction in smelting energy per ton over five years via furnace upgrades and waste-heat recovery.
• Emissions: Continuous investment in dust capture, sulfur and NOx control systems to comply with Chinese environmental regulations and international supply-chain requirements.

• Testing capabilities: Spectrometers, mechanical-property rigs and porosity analysis for each production batch.
• ERP & traceability: Full-lot traceability from source scrap to final ingot shipment using ERP-controlled recipes, QC checkpoints and digital records.
• R&D focus: Alloy development for lower-density, higher-strength formulations suitable for EV and lightweighting applications.

• Supply risk mitigation: Diversified scrap-sourcing network across Southeast Asia, China and North America; long-term procurement agreements with automotive recyclers.
• Regulatory compliance: Continuous monitoring of environmental standards and product-restriction lists (ROHS/REACH) to reduce market access risk.
• Corporate governance: Public reporting, independent board oversight and internal controls aligned with A-share listing requirements.

Yechiu Metal Recycling Ltd. (601388.SS) - Overview

• Pursue excellence: continuous improvement in product quality, process efficiency, and ESG compliance.
• Seek sustainable development: minimizing environmental footprint through closed-loop recycling, emissions control, and resource efficiency.
• Rise to meet challenges: operational resilience, supply-chain agility, and technological adaptation to market signals and regulatory change.
• Expand internationally: targeted overseas partnerships, export growth, and cross-border acquisitions to diversify end markets.

• Capital allocation prioritizes modernization of shredding, sorting, and smelting lines to improve yield and lower energy intensity.
• Sustainability commitments translate into measurable targets: reduced CO2 intensity per tonne processed and increased rate of closed-loop recycled inputs.
• Risk-management programs focus on volatile scrap prices, regulatory tightening, and logistics constraints for exports.

• Excellence: KPI cascade from plant OEE and product purity to customer satisfaction scores and defect rates.
• Sustainable development: targets for recycled-content rates in feedstock, emissions intensity, water reuse, and hazardous-waste compliance.
• Resilience & challenge response: liquidity and working-capital buffers, diversified supplier base, and scenario planning for scrap-price shocks.
• International expansion: measured by export revenue growth, number of foreign distribution partners, and cross‑border M&A pipeline.

• Process automation and sensor-based sorting to raise yield and reduce labor intensity.
• Investment in energy-efficiency retrofits and renewable-power sourcing to lower emissions.
• Development of standardized quality specifications to support higher-value export contracts.
• Partnerships with downstream metal processors and OEMs to secure offtake and promote circularity.

• Public reporting of ESG metrics and audited financials to align stakeholder expectations.
• Participation in industry consortia to advance recycling standards and promote circular-economy policies.
• Use of third-party certification for hazardous-waste handling and environmental permits.

Yechiu Metal Recycling Ltd. (601388.SS) - Mission Statement

Yechiu's mission is to expand the recycling business and create a first-class secondary aluminum facility, positioning the company to be the world's number one secondary aluminum company. This mission drives investments in capacity, quality control, environmental compliance, and market expansion to capture growing demand for recycled aluminum in China and internationally.

• Strategic focus: scale recycling operations while improving unit economics and product quality.
• Operational excellence: implement world-class smelting and refining processes to produce high-purity secondary aluminum.
• Sustainability: reduce carbon intensity and increase scrap utilization rates to support circular economy goals.
• Market leadership: expand geographic and product-market coverage to raise market share in automotive, packaging, and construction sectors.

The vision underpins capital allocation, R&D, and M&A decisions-prioritizing projects that increase annual recycled aluminum output, reduce energy consumption per tonne, and strengthen downstream partnerships.

Key operational targets aligned with the mission:

• Increase recycling capacity to 600,000 tonnes within 3-5 years through greenfield expansions and acquisitions.
• Improve scrap utilization to >85% and reduce energy use to <5.5 GJ/tonne via process optimization and waste-heat recovery.
• Achieve annual revenue growth of 12-15% while maintaining EBITDA margins above 10% through higher-value product mixes.

Investments and capital strategy are prioritized to meet these targets:

• Capital expenditure allocation: upgrading smelting lines, environmental controls, and automation systems.
• R&D spending: alloy development, impurity control, and post-consumer scrap sorting technology.
• M&A and feedstock security: targeted acquisitions to secure stable input streams and regional logistics hubs.

For historical context, ownership, and a broader view of how the company operates and generates value, see: Yechiu Metal Recycling (China) Ltd.: History, Ownership, Mission, How It Works & Makes Money

Yechiu Metal Recycling Ltd. (601388.SS) - Vision Statement

• Loyalty - cultivating long-term commitment among employees, suppliers, and customers to strengthen supply chain resilience.
• Responsibility - ensuring full regulatory compliance, ethical procurement, and traceability across all scrap streams.
• Efficiency - maximizing yield per tonne through process optimization, yield recovery, and logistics integration.
• Discipline - enforcing strict quality, safety, and environmental management systems to maintain consistency.
• Teamwork - promoting cross-functional collaboration to accelerate innovation and operational improvements.

• Scale: expand collection points and regional hubs to increase feedstock security and lower logistics cost.
• Technology: invest in sensor-based sorting, hydrometallurgical lines, and digital traceability systems to increase recovery and margin.
• ESG: reduce carbon intensity per tonne processed and certify responsible sourcing to access premium industrial clients.
• Customer integration: develop long-term offtake and processing contracts with steelmakers, foundries, and battery recyclers.

• Loyalty - supplier retention rate: 82% (2023), repeat-source share: 68%.
• Responsibility - % of raw material batches fully traceable: 91% (2023).
• Efficiency - average throughput per facility (tonnes/day): 1,800 (2023), target 2,200 by 2025.
• Discipline - safety incident rate (LTIFR): 0.9 per 200,000 hours (2023).
• Teamwork - cross-site project completion rate on schedule: 87% (2023).