Executive Summary / Key Takeaways

• Sino Green Land Corporation (SGLA) has strategically pivoted to plastic recycling in Malaysia, positioning itself within the rapidly expanding global recycled-PET (R-PET) market, which is projected to grow from an estimated US$11 billion in 2023 to US$15 billion by 2028.
• Despite a growing customer base and an environmentally critical mission, SGLA faces severe financial distress, reporting a 36% decrease in net revenues and a 126% increase in net loss for the fiscal year ended June 30, 2025, raising substantial doubt about its ability to continue as a going concern.
• The company's operational strengths include two factories in Malaysia, over 40 pieces of advanced recycling equipment, established raw material supply chains, and adherence to international recycling standards, enabling the production of PET flakes, strapping belts, and HDPE pellets.
• Significant risks include a critical working capital deficit of $4.44 million, material weaknesses in internal controls, heavy reliance on foreign labor, the absence of long-term customer and supplier contracts, and exposure to Malaysian regulatory and currency fluctuations.
• SGLA's future hinges on successfully executing its planned $2.3 million capital investment to enhance production, effectively remediating its internal control deficiencies, and leveraging its operational base to capitalize on the Asia-Pacific R-PET market opportunities amidst intense competition.

A New Chapter in Green Recycling: SGLA's Sustainable Ambition

Sino Green Land Corporation (SGLA) has embarked on a transformative journey, shifting from its historical role as a wholesale fruit distributor to a dedicated player in the plastic recycling sector. Incorporated in Nevada in 2008, the company experienced a period of dormancy before a significant strategic pivot in 2023. This involved the merger with Sunshine Green Land Corp. (SGL) and the acquisition of its Malaysian subsidiary, Tian Li Eco Holdings Sdn. Bhd., which has been actively engaged in manufacturing and selling recovered and recycled products since 2019. This strategic move firmly anchors SGLA in Malaysia, where it now operates two factories spanning approximately 8,759.83 square meters.

The company's mission is rooted in advocating for waste recycling, aiming for a sustainable environmental future. SGLA's objective is to become a prominent environmental recycling entity in Asia over the coming five years. This ambition aligns with a critical global imperative: addressing the escalating plastic waste crisis. Global plastic production surged from 2 million tons annually in the 1950s to 348 million tons by 2017, with projections indicating a potential doubling of the industry's value by 2040. The environmental toll is immense, exacerbating climate change and biodiversity reduction. Recycled-PET (R-PET) offers a compelling solution, reducing landfill waste, curtailing reliance on virgin plastics, and significantly cutting carbon emissions. Producing R-PET consumes approximately 75% less energy and can reduce greenhouse gas emissions by 70% compared to virgin plastic. The global R-PET market itself is a burgeoning sector, estimated at US$11 billion in 2023 and projected to reach US$15 billion by 2028, reflecting a robust compound annual growth rate (CAGR) of 6.50%. This growth is propelled by shifting consumer preferences towards eco-friendly products and heightened governmental support for recycling and circular economy principles, particularly in the Asia-Pacific region.

SGLA's core technology and operational differentiation lie in its advanced methodologies for processing waste PET beverage and packaging bottles. The company's facilities house over 40 pieces of advanced equipment, emphasizing consistent quality and innovation in transforming raw plastic waste into valuable recycled materials. This technological capability enables SGLA to produce high-quality PET bottle flakes, PET plastic-steel strapping belts, and HDPE pellets. These recycled raw materials are closely comparable to virgin plastics and are cost-effective, presenting a viable option for customers. The company's strategic positioning in Semenyih, Malaysia, provides a logistical advantage, facilitating efficient connections with both local and international customers, thereby reducing delivery times and transportation costs.

Operational Foundation and Product Portfolio

SGLA's business model is centered on a comprehensive recycling process. It collects and sources raw materials, such as PET Bottle Bundles, from various locations including Cambodia, Southeast Asia, and New Zealand. Upon arrival at its Malaysian factories, these materials undergo a meticulous sequence of sorting, cutting, crushing, washing, cleaning, drying, separating, and further recycling. The ultimate goal is to produce plastic end products like flakes or strapping belts, which are then sold to local and international trading companies.

The company's product offerings cater to diverse industrial needs:

• PET Bottle Flakes: These are processed PET materials, serving as an alternative to traditional polyester. They find applications in staple fibers and strapping belts, with specifications including an Intrinsic Viscosity (IV) of 0.70, moisture content of 1%, PVC content of 0.01%, and foreign material content of 0.02%. SGLA's PET bottle flakes are exported to markets across Asia-Pacific, Europe, and the Americas, including Germany, the U.S., Ukraine, Vietnam, Thailand, Malaysia, Indonesia, and Turkey.
• PET Strapping Belt: Manufactured using superior raw materials and additives, these belts are offered in various colors and finishes. They are recognized for high tensile strength, comparable to steel straps (up to 80%), durability across diverse climatic conditions, heat resistance, and enhanced longevity.
• HDPE Pellets: Sourced from the caps and rings of PET bottles, these pellets are suitable for casting molding applications. HDPE is a robust polyethylene variant known for its density (0.94 g/cm³), impact resistance, lightweight properties, low moisture absorption, high tensile strength, and non-toxic, non-staining characteristics. HDPE recycled pellets are supplied to customers in China and Malaysia.

SGLA boasts significant production capabilities, with an annual capacity of 50,000 tons of PET waste plastic bottles. It also produces 3,000 tons of PET plastic-steel strapping belts and between 3,500 to 4,000 tons of HDPE recycled pellets annually. These operational strengths, coupled with strict adherence to Malaysian government regulations and the integration of international recycling standards, form the bedrock of SGLA's competitive positioning.

Financial Performance: A Challenging Reality

Despite its strategic pivot and operational capabilities, SGLA's recent financial performance reveals significant challenges. For the fiscal year ended June 30, 2025, net revenues totaled $1.34 million, marking a substantial decrease of $749,728, or 36%, compared to $2.09 million in the prior year. This decline occurred despite a 15% increase in the number of clients (from 33 to 38) and an 8% increase in total orders (from 250 to 270), indicating a notable drop in the average quantity of products sold per transaction. Compounding the revenue decline, the cost of revenues increased by 20% to $2.59 million for the year ended June 30, 2025, up from $2.16 million in the previous year. This upward trend was primarily attributed to impurities in purchased raw materials, leading to a higher incidence of defective materials and escalating overall costs. Consequently, the company's gross loss widened dramatically to $1.25 million in FY2025 from $75,393 in FY2024, representing a 1564% increase. The net loss for the year ended June 30, 2025, also significantly increased by 126% to $1.81 million, compared to a net loss of $798,804 in the prior year, primarily driven by decreased sales and increased cost of revenue. General and administrative expenses, however, saw a positive trend, decreasing by 32% to $436,949, reflecting some cost management efforts.

SGLA's liquidity and capital resources are under considerable strain. As of June 30, 2025, the company reported total current assets of $279,622, a decrease from $834,790 in the prior year, mainly due to reductions in inventory and accounts receivable. Conversely, current liabilities surged to $4.72 million, resulting in a substantial working capital deficit of $4.44 million. This deficit, coupled with an accumulated deficit of $4.70 million and a stockholder deficit of $2.39 million, has led the independent registered public accounting firm to raise substantial doubt about SGLA's ability to continue as a going concern. Cash flow used in operating activities increased to $845,971 in FY2025, primarily due to the higher net loss and increased cost of sales. While cash flow used in investing activities decreased to $38,180, reflecting less acquisition of property and equipment, cash flow provided by financing activities also saw a slight decrease to $1.36 million, mainly due to reduced amounts from related parties and short-term bank borrowing.

Strategic Outlook and Growth Initiatives

SGLA's management acknowledges the severe financial challenges and has outlined plans to address them. These include seeking debt financing and/or third-party equity, implementing cost reduction measures such as deferring discretionary spending and freezing non-essential recruitment, and securing new equity financing to replenish working capital. The company has also obtained a financial support letter from Empower International Trading Sdn. Bhd., its holding company, expressing willingness to provide necessary financial support.

Looking forward, SGLA intends to expand its operational scope, with plans to deploy approximately MYR10 million (equivalent to approximately US$2.3 million) in capital investment for facilities, plants, machinery, and equipment. This investment aims to enhance production efficiency and capacities, which is crucial for securing more customers in Malaysia and overseas. The company's strategic objective to become a prominent environmental recycling entity in Asia within five years is underpinned by the significant opportunities in the Asia-Pacific R-PET market. This region, a global production nexus, is experiencing a growing demand for recycled PET, further bolstered by evolving regulatory landscapes that promote the incorporation of recycled materials in packaging.

Competitive Dynamics and Strategic Positioning

SGLA operates in a competitive landscape shaped by both direct and indirect players in the broader agricultural and recycling sectors. While its historical operations were in fruit wholesale, its current focus on plastic recycling positions it against a different set of competitors. In the context of its recycling business, SGLA's recycled raw materials are closely comparable to virgin plastics and are cost-effective, providing a viable option for customers. The company's competitive strengths include a deep understanding of the plastic recycling sector, strict adherence to Malaysian government regulations, and the integration of recycling standards observed in developed nations.

However, SGLA faces significant competitive disadvantages. Its smaller scale and current financial distress limit its ability to compete on the same level as larger, more diversified entities. For instance, in the broader materials sector, companies with established global supply chains and robust financial health would have inherent advantages in raw material procurement and market reach. SGLA's reliance on non-long-term agreements with both customers and suppliers also creates revenue volatility and procurement risks, contrasting with competitors who might leverage long-term contracts for stability. The company's dependence on foreign labor also exposes it to potential increases in labor wages due to competition for skilled workers or changes in Malaysian government policies.

Barriers to entry in the plastic recycling sector include the need for established supply chain networks for raw materials, adherence to international quality standards for recycled PET, and compliance with environmental regulations. SGLA has invested in building its supply chain and operates with necessary legal and safety permits, which helps it navigate these barriers. However, the capital-intensive nature of expanding production capacity and the need for continuous technological upgrades remain significant hurdles.

Key Risks and Mitigating Factors

SGLA is confronted with several critical risks that could materially impact its investment thesis. The most pressing is the substantial doubt about its ability to continue as a going concern, stemming from persistent net losses, negative operating cash flow, and a significant working capital deficit. Management's plans to seek additional financing and implement cost reductions are crucial, but their effectiveness remains uncertain.

Material weaknesses in internal controls over financial reporting pose another significant threat. These include the absence of a functioning independent audit committee, inadequate segregation of duties, and an insufficient number of personnel with U.S. GAAP knowledge. While management has outlined plans to appoint independent directors, redesign financial processes, and hire qualified personnel, failure to remediate these weaknesses could lead to material misstatements and impact investor confidence.

Operational risks include potential disruptions at its waste treatment plants due to machinery breakdowns or power shortages, which could severely affect production and revenue generation. The company's dependence on key management and operational personnel, including Ms. Wo Kuk Ching and Mr. Luo Xiong, means the loss of their services could materially impact business operations. Furthermore, SGLA's reliance on foreign workers for its labor-intensive operations exposes it to changes in Malaysian government policies or increased labor costs.

The absence of long-term agreements with most customers and suppliers introduces revenue and supply chain volatility. Cross-border sales transactions carry inherent risks such as changes in import taxes, regulations, and logistics challenges. Operating primarily in Malaysia, SGLA is also exposed to changes in Malaysian economic, political, and social conditions, as well as evolving environmental protection policies. Currency conversion and exchange rate risks related to the Malaysian Ringgit (MYR) could adversely affect financial performance. Lastly, the trading of SGLA's common stock on the OTC Pink Sheets subjects it to lower liquidity, higher volatility, and "penny stock" regulations, which may deter broker-dealers and limit investor ability to trade shares. The company also faces potential cybersecurity threats, though it has implemented measures like enhanced technical security and emergency response plans.

Conclusion

Sino Green Land Corporation stands at a pivotal juncture, embodying the transformative potential of sustainable recycling within Asia's burgeoning R-PET market. Its strategic pivot, operational assets in Malaysia, and commitment to addressing the global plastic waste crisis present a compelling long-term vision. The company's established infrastructure, advanced recycling methodologies, and diverse product offerings position it to capitalize on increasing demand for recycled materials, driven by global environmental mandates and evolving consumer preferences.

However, this promising narrative is significantly challenged by a precarious financial reality. The substantial net losses, negative cash flow from operations, and a critical working capital deficit raise serious concerns about SGLA's immediate viability. While management has articulated plans to secure financing and enhance operational efficiencies through capital investments, the successful execution of these initiatives and the remediation of identified internal control weaknesses are paramount. For investors, SGLA represents a high-risk, high-reward proposition. Its ability to overcome current financial headwinds and effectively leverage its operational strengths and technological capabilities to capture market share in the competitive R-PET sector will be the ultimate determinant of its long-term success. Close monitoring of its financial stability, governance improvements, and the impact of its planned capital expenditures on production and profitability will be critical for discerning investors.