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Established in 2016, we, through our Operating Entities, are a technology driven renewable resources recycling company and system provider and, according to the CIC Report, the largest waste household appliance recycling platform in China with a market share of approximately 1.04% in 2023, recycling approximately 21.8 million units of waste household appliances since our inception to December 31, 2023. (Incorporated in the Cayman Islands)
We purchase and sell recycled renewable resources, primarily waste ferrous metals and waste household appliances, and provide our renewable resources recycling platform and services based on an O2O (Online to Offline) model through online applications and offline sites. We believe that we are positioned as an innovative driving force in the traditional recycling business, leading the digitization of recycling ecosystems in China. Our goal is to establish comprehensive, digitized, and standardized waste recycling services, covering all categories of recyclable materials.
Our first operating subsidiary in China, ABGreen Shenzhen, was founded in 2016, and in 2017, we launched our proprietary technology software and applications Boolv ShouShou and Boolv Collect. Currently, more than 60,000 electrical and electronic appliance sales personnel are registered in our mini-program Boolv ShouShou and provide waste household appliances and consumer electronics source information. More than 33,000 third-party recycling personnel who perform on-site collection of renewable resources are registered in our Boolv Collect app, which allows registered recycling personnel to bid for and accept recycling orders by connecting with suppliers on our renewable resources recycling online system. In 2020, we launched our Boolv Sorting Center app for sourcing information on collection, inventory management, and settlement systems. The app is now used in third-party recycling stations, transit yards, and sorting centers, in addition to our sorting center.
In 2021, we launched our recycling and disposal of waste metallic resources business, which developed rapidly and became the recycling category that contributed to the largest percentage of our revenue in fiscal years 2022 and 2023. Our business scope currently includes waste metallic resource recycling, waste household appliances recycling, consumer electronics recycling, as well as downstream services such as waste household appliances and waste consumer electronics dismantling and disposal. Our main revenue is generated from waste metallic resources and waste household appliances. In 2022 and 2023, our revenues reached RMB 3.0 billion and RMB 4.0 billion (US $0.6 billion), respectively, with a year-over-year growth of 34.6% in 2023 compared to 2022.
Our Competitive Strengths
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Extensive Nationwide Recycling Network: We have established a renewable resources recycling network covering more than 500 cities (including county-level cities). Our network includes approximately 2,970 third-party recycling stations and more than 33,000 registered recycling personnel. This capability allows end-to-end coverage for connecting the upstream suppliers to the downstream second-hand sales platforms and markets and dismantling and disposal enterprises. We believe our network offers us four major advantages: |
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Efficient Recycling: We allow complete on-site collection within 24 hours after users/suppliers place their orders for recycling, greatly improving service efficiency and establishing a leading competitive edge in nationwide recycling services in China. |
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Effective Sourcing of Supply: Leveraging the recycling service capabilities of our recycling network, we have access to a vast supply of waste products nationwide, enabling us to establish a leading supply capacity. |
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Full Category Business Expansion: With our existing network of third-party recycling stations, transfer yards, and sorting centers, we can efficiently expand our services to include other recycling categories, such as plastic waste recycling and textile waste recycling, thereby increasing revenue and profitability. |
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Cost Reduction and Efficiency Enhancement: Through strategic supply partnerships with over 15 downstream waste dismantling and disposal companies and more than 10 steel production companies, we ensure seamless integration of the entire life cycle of renewable resources, from collection to disposal and dismantling. |
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Tech-Driven Innovations: Through a combination of internet technology and offline recycling networks, we have created a digitized recycling ecosystem comprising: |
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Boolv ShouShou for collection of recycling information from registered users; |
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Boolv Collect for convenient door-to-door recycling used by recycling personal; and |
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Boolv Sorting Center for refined classification of the recycled items used by recycling station, transit yard, and sorting center personnel to manage the collected renewable resources. |
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Industry-Leading Traceability System for Renewable Resources: Our system provides key information such as product details, sources, destinations, and sales records, which are recorded data in the system, and technical support. Our system enables unique Environmental, Social, and Corporate Governance (“ESG”) traceability capabilities for renewable resources recycling and monitors and traces different processes of every business unit. Our objective is to collectively enhance corporate, environmental, and social value.
We use our Boolv ShouShou mini-program to collect recycling information, including order sources, categories of waste, and quantity of waste. Recycling personnel will upload the collected information via the Boolv Collect mobile application. The recycling station, transit yard, and sorting center personnel use our Boolv Sorting Center mobile application to register order sources, categories, quantities, inventory management, and sales. We then use our Boolv Sorting Center application to allocate and sell renewable resources to the dismantling enterprises. The data collected from the above four processes forms a full lifecycle of waste household appliance products from the user to the dismantling enterprises.
The Ministry of Commerce of the People’s Republic of China invited us to share and promote this traceability system to other local governments, and we were invited by companies in the same industry to share our system. |
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Empower Business Partners and Create a Diverse Ecosystem: Given our industry knowledge and expertise as well as our business expansion and empowerment capabilities, we cooperate with numerous industry partners in the upstream supplier and downstream customer aspects of the renewable resources recycling industry. These partners are well established in China’s renewable resources recycling industry in logistics, environmental protection equipment, and dismantling and disposal. |
Our Growth Strategies
Our strategies aim to further grow our business as well as increase our penetration in the renewable resources recycling industry in China and globally. To accomplish this, we plan to leverage the strengths and capabilities of our renewable resources recycling platform to achieve organic growth and to search for new opportunities to expand our renewable resources recycling categories and integrate additional business segments:
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Innovation Driven Growth Strategies: By improving our current applications and developing more widely applicable digital tools, we plan to strengthen our technology innovation and research and development capabilities, increase investments in digital technology, and emphasize our research on data analysis, traceability management, Internet of Things (IoT) and location-based services (LBS), unique product identifiers, and digital supply chain technologies required by our industry. We aim to grow our user base and promote innovation and enhance capabilities of our technology system and recycling ecosystem. |
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Online and Offline Customer Growth: We intend to expand our range of customer services through both online and offline growth approaches. By establishing a larger network of third-party physical locations that integrate with our online systems, we aim to cover more cities and connect with more upstream supply channels, such as towns and communities for sourcing renewable resources. We believe this approach will ultimately expand our downstream distribution channels as well. In the next three years, we plan to add approximately 3,000 traditional offline recycling stations and to expand to cover over 6,000 offline recycling stations. |
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Expand Recycling Categories and Integrate Business Chain: Increasing revenue and enhancing margin are our top business development priorities. We plan to continue expanding the scope of our recycling services to cover a wider range of renewable resources categories. These categories include not only waste metallic resources and waste household appliances, but also waste paper, plastic, and lithium-ion batteries. By establishing or acquiring a dismantling business, we can extend our business chain from “collection – classification – resale” to include environmentally-sound dismantling. This extension would enable us to increase our gross profit margin, improve profitability and strengthen our value proposition in the industry. For example, our recent investment in Hubei Jinke has expanded our business scope, including waste household appliance dismantling and hazardous waste disposal. We plan to increase the proportion of downstream disposal and dismantling segments in the Company’s total revenue and profit, overall extending the Company’s value chain. |
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Strengthen Business Collaborations: We believe that connecting with a wider network of business partners is a key driver of our future growth. We plan to collaborate with major manufacturing enterprises to diversify our B2B sourcing network. Furthermore, we aim to establish partnerships with various third-party systems, including property management, appliance repair, home cleaning, and charitable foundations, leveraging their “at-home service” capabilities to expand our sourcing network and user base. |
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Support ESG Sustainable Growth: ESG principals have become a crucial concept for enterprises globally, and China has implemented policies requiring annual ESG accountability reports from companies nationwide. By supporting compliance and consistency with ESG principles in our business model, we believe we will attract more customers and business collaboration to support our ultimate mission of zero waste product solutions. |
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Participation in Carbon Trading: In 2021, China launched the world’s largest carbon emissions trading system, which will play a fundamental role in reducing carbon emissions. We plan to capitalize on the data and information we collect via our system to accumulate carbon quotas for future profit growth by participating in international/domestic carbon markets. On September 11, 2023, we have obtained a Product Carbon Footprint Certification/PCF Certification of Registration in the PRC from Auburn Inspection & Certification Group Co., Ltd. |
Note: Net income and revenue are in U.S. dollars for the year that ended Dec. 31, 2023.
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