Sino Green Land Corp. (SGLA)

Sino Green Land Corporation operates in the PET recycling industry, manufacturing and selling recovered and recycled products in Malaysia since 2019 ¹. The global recycled-PET (R-PET) market was estimated to be worth around US$11 billion in 2023 and is projected to reach US$15 billion by 2028, representing a compound annual growth rate of 6.5% over that five-year span ². The industry is driven by consumer shifts toward eco-friendly products, government policies endorsing recycling and circular economy principles, and mandatory recycling directives in certain jurisdictions such as the EU, where food-grade R-PET demand consistently outpaces supply ³. The Asia-Pacific region, a dominant global production nexus, presents opportunities due to multinational entities across food & beverage, personal care, and household products sectors, with the European R-PET market projected to escalate to US$3.9 billion by 2028 at a CAGR of 6.1% ⁴. The global PET fiber production capacity stands at approximately 60.53 million tons as of 2021 ⁵. The industry faces challenges including the need for broad and reliable supply chain networks, adherence to international standards for recycled PET, and addressing environmental concerns associated with the recycling process ⁶.

The Company's competitive strengths include its depth of understanding in the plastic recycling sector, strict adherence to Malaysian government regulations, and integration of practices from recycling standards observed in developed nations ⁷. The facility houses over 40 pieces of advanced equipment, emphasizing consistent quality and innovation ⁸. The Company has a production capability of 50,000 tons of PET waste plastic bottles annually, a production line for PET plastic-steel strapping belts with an annual yield of 3,000 tons, and produces HDPE recycled pellets with an annual output ranging between 3,500 to 4,000 tons ⁹. The Company's strategic positioning in Semenyih, Malaysia, serves as a logistical advantage, facilitating efficient connections with local and international customers via major transportation hubs, reducing delivery times and transportation costs ¹⁰. The Company's founders and core team possess a blend of experience and technical knowledge, positioning it as a notable player in the PET recycling sector ¹¹.

The Company generates revenue primarily from the sales of plastic recycled products, including PET bottle flakes, PET strapping belts, and HDPE pellets ¹². The business model involves sourcing raw materials such as PET bottle bundles from Cambodia, Southeast Asia, and New Zealand, then processing them through sorting, cutting, crushing, washing, cleaning, drying, separating, and further processing until they are recycled into plastic end products like flakes or strapping belts, which are then sold to local or overseas trading companies ¹³. Revenue is recognized at a point in time when control of the goods is transferred to the customer, which occurs upon delivery, with a signed delivery receipt serving as evidence of transfer ¹⁴. The Company acts as a principal in all arrangements and does not offer obligations for returns, refunds, or warranties beyond standard assurance ¹⁵. Payment terms are typically 30% deposit payable upon signing of the sales contract and 70% payable upon delivery of the plastic recycled products to the designated location ¹⁶.

The Company's primary product offerings include PET Bottle Flakes, processed through a sequence of sorting, crushing, washing, separation, and drying, serving as an alternate raw material to traditional polyester with applications ranging from staple fibers to strapping belts ¹⁷. The PET flakes have specifications including Intrinsic Viscosity (IV) greater than 0.7, Moisture less than 1%, PVC Content less than 0.01%, and Foreign Material less than 0.02% ¹⁸. The PET Strapping Belt product line offers belts in varied colors and surface finishes, recognized for high tensile strength comparable to steel straps reaching up to 80%, durability across varying climatic conditions, heat resistance, and enhanced longevity ¹⁹. Specific models include the T1608-G with dimensions of 1100m by 16mm by 0.8mm, weight of 20KG, and tensile strength of 496 Kgf, and the T1910-G with dimensions of 800m by 19mm by 1.0mm, weight of 20KG, and tensile strength of 798 Kgf ²⁰. The Company also produces HDPE Pellets sourced from caps and rings of PET bottles, suited for casting molding applications, defined by density greater than 0.941 g/cm3, and renowned for impact resistance, lightweight properties, low moisture absorption, and high tensile strength ²¹.

The Company's PET bottle flakes cater to diverse geographical markets including the Asia-Pacific, Europe, and the Americas, with exports to nations like Germany, the U.S., Ukraine, Vietnam, Thailand, Malaysia, Indonesia, and Turkey ²². PET plastic-steel straps have reached markets in countries such as China, Australia, Vietnam, Malaysia, Indonesia, and Thailand, with ongoing expansion initiatives ²³. HDPE recycled pellets find customers in China and Malaysia ²⁴. The Company's mission is rooted in advocating for waste recycling, aiming for a sustainable environmental future, with the objective to become a prominent environmental recycling entity in Asia over the coming five years ²⁵. The Company operates with necessary legal and safety permits, including licenses and reports from the environmental impact assessment (EIA) and the environment management plan (EMP), and permits from the Malaysia Investment Development Authority (MIDA) ²⁶.

During the fiscal year, the Company completed three private placements on February 11, 2026, issuing 193,500 shares of common stock at $1.00 per share for gross proceeds of $193,500, 68,000 shares at $1.20 per share for gross proceeds of $81,600, and 22,000 shares at $1.80 per share for gross proceeds of $39,600, for aggregate gross proceeds of $314,700 ²⁷. On May 22, 2026, the Company entered into a subscription agreement with a third-party investor for the sale of 2,000,000 shares of common stock at $0.50 per share, for aggregate gross proceeds of $1,000,000, with $200,000 received as of June 30, 2026 ²⁸. On August 7, 2026, the Company entered into stock purchase agreements to acquire 60% of the issued and outstanding capital stock of Xing Da Plastics Sdn. Bhd. and 100% of the issued and outstanding capital stock of Invent Fortune Sdn. Bhd., agreeing to issue 4,800,000 shares of common stock to the Xing Da sellers and approximately 36,527,833 shares to the Invent Fortune sellers in three tranches ²⁹. The acquisitions had not closed as of the end of the reporting period ³⁰. The Company also intends to apply an aggregate of approximately MYR10 million (equivalent to approximately US$2.3 million) in capital investment in facilities, plants, machineries and/or equipment to enhance production efficiency and capacities ³¹.

For the fiscal year ended June 30, 2026, the Company reported net revenues of $1,422,451, an increase of $84,151, or 6.3%, compared to net revenues of $1,338,300 for the prior year ³². Cost of revenues totaled $2,073,261, a decrease of $519,863, or 20.1%, from $2,593,124 in the prior year ³³. Gross loss was $650,810, a decrease of $604,014, or 48.1%, from a gross loss of $1,254,824 in the prior year ³⁴. Operating expenses totaled $569,782, an increase of $132,833, or 30.4%, from $436,949 in the prior year ³⁵. Net loss totaled $1,393,031, a decrease of $415,963, or 23.0%, from a net loss of $1,808,994 in the prior year ³⁶. The Company had an accumulated deficit of $6,093,584 and a total stockholders' deficit of $2,535,519 as of June 30, 2026 ³⁷.

The Company's strategic initiatives aim to become a prominent environmental recycling entity in Asia over the coming five years ³⁸. The Company plans to expand its operational scope, having already introduced a production line for PET plastic-steel strapping belts with an annual yield of 3,000 tons and producing HDPE recycled pellets with an annual output ranging between 3,500 to 4,000 tons ³⁹. The Company intends to secure more customers in Malaysia and overseas and expand the scale of its operations and customer base through capital investment in facilities, plants, machineries and/or equipment ⁴⁰. The Company's PET plastic-steel straps have ongoing expansion initiatives in markets such as China, Australia, Vietnam, Malaysia, Indonesia, and Thailand ⁴¹.

The Company is pursuing acquisitions to establish an integrated waste management business chain covering the collection of plastic waste at source through to the production of finished recycled products ⁴². On August 7, 2026, the Company entered into stock purchase agreements to acquire 60% of Xing Da Plastics Sdn. Bhd. and 100% of Invent Fortune Sdn. Bhd., with the acquired businesses expected to contribute positive cash contributions and to reduce the Company's dependency on external funding ⁴³. The Company may also pursue acquisitions of other complementary businesses, technology licensing arrangements, strategic alliances, and joint ventures to expand its product offerings and geographic presence ⁴⁴. The Company has limited experience with respect to acquiring other companies and forming collaborations, strategic alliances, and joint ventures ⁴⁵.

The Company's gross loss decreased by 48.1% for the year ended June 30, 2026, primarily driven by lower cost of revenues, which decreased by 20.1% due to lower average raw material input costs ⁴⁶. The cost of raw materials amounted to approximately MYR5.7 million and MYR7.0 million, representing approximately 69% and 65% of cost of sales for the years ended June 30, 2026 and 2025, respectively ⁴⁷. The decrease in cost of revenues was also attributable to a net reversal of inventory provision of $124,031 as compared to a provision charge of $119,886 for the year ended June 30, 2025 ⁴⁸. The Company expects depreciation expenses, plant and machinery operating costs, and repair and maintenance costs to increase as a result of planned capital investments ⁴⁹.

The Company's operational outlook includes continued investment in production capacity, with net cash used in investing activities of $230,475 for the fiscal year ended June 30, 2026, solely attributable to the acquisition of property, plant and equipment ⁵⁰. The Company has taken immediate and significant mitigating actions to reduce costs and optimize cash flow and liquidity ⁵¹. The Company anticipates hiring necessary personnel on an as-needed basis only on a per contract basis to be compensated directly from revenues ⁵². The Company's business is dependent on the uninterrupted operation of its waste treatment plants, requiring a stable source of electricity, and any disruption could limit, delay, or halt waste treatment capacities ⁵³.

The Company intends to apply an aggregate of approximately MYR10 million (equivalent to approximately US$2.3 million) in capital investment in facilities, plants, machineries and/or equipment to enhance production efficiency and capacities ⁵⁴. The Company financed its capital requirements through a loan from a third party of $833,619, short-term borrowings of $127,000, and a credit facility from OCBC Bank in Malaysia ⁵⁵. As of June 30, 2026, the loan from OCBC Bank in Malaysia totaled $2,189,901, with a current portion of $86,453 and total non-current borrowings of $2,103,448 ⁵⁶. The Company has not declared any cash dividends with respect to its common stock and does not intend to declare dividends in the foreseeable future ⁵⁷.

The Company faces structural headwinds including substantial doubt about its ability to continue as a going concern, with current liabilities exceeding current assets by $4,482,441 and a stockholders' deficit of $2,535,519 ⁵⁸. The Company's ability to achieve expansion objectives depends on factors including the ability to further develop methodology, attract and retain skilled employees, successfully position and market the Company, protect existing intellectual property, capitalize on potential opportunities with third parties, and secure sufficient funding ⁵⁹. The Company may need additional funding for existing business and growth plans, and there is no assurance that additional financing will be available on satisfactory terms ⁶⁰. The Company is subject to risks related to its operations in Malaysia, including changes in Malaysian economic, political, and social conditions, government policies, and foreign exchange controls ⁶¹.

The Company's growth may be limited by its dependence on third parties for the supply of raw materials, with no assurance that key suppliers will continue providing raw materials at acceptable prices and terms ⁶². The Company generally does not enter into long-term agreements with customers, and failure to retain existing customers or attract new customers could materially affect revenue and profitability ⁶³. Cross-border sales transactions expose the Company to tariffs, import/export duties, and other international trade risks, including changes in foreign trade policies, currency exchange rate fluctuations, extended transit and customs clearance times, and heightened customs inspections ⁶⁴. The Company's business is also subject to environmental laws and regulations in Malaysia, and any violation could lead to substantial fines, clean-up costs, environmental liabilities, or suspension of operations ⁶⁵.

Management's message emphasizes the Company's mission rooted in advocating for waste recycling and aiming for a sustainable environmental future, with the objective to become a prominent environmental recycling entity in Asia over the coming five years ⁷⁴. Management highlights the Company's strategic positioning in Semenyih, Malaysia, as a logistical advantage facilitating efficient connections with local and international customers ⁷⁵. Management emphasizes the Company's competitive strengths, including its depth of understanding in the plastic recycling sector, adherence to Malaysian government regulations, and integration of practices from recycling standards observed in developed nations ⁷⁶. Management also highlights the Company's production capabilities, including 50,000 tons of PET waste plastic bottles annually, 3,000 tons of PET plastic-steel strapping belts, and 3,500 to 4,000 tons of HDPE recycled pellets ⁷⁷. Management's forward-looking statements include plans to expand operational scope, secure more customers, and apply approximately MYR10 million (equivalent to approximately US$2.3 million) in capital investment to enhance production efficiency and capacities ⁷⁸. Management also emphasizes the intended acquisitions of Xing Da Plastics Sdn. Bhd. and Invent Fortune Sdn. Bhd. to establish an integrated waste management business chain and reduce dependency on external funding ⁷⁹. Management has taken immediate and significant mitigating actions to reduce costs and optimize cash flow and liquidity ⁸⁰.

For the fiscal year ended June 30, 2026, net revenues totaled $1,422,451, compared to $1,338,300 for the fiscal year ended June 30, 2025, an increase of $84,151, or 6.3% ⁸¹. Net loss for the year ended June 30, 2026 was $1,393,031, compared to a net loss of $1,808,994 for the prior year, an improvement of $415,963, or 23.0% ⁸². The Company reported a gross loss of $650,810 for fiscal 2026, compared to a gross loss of $1,254,824 for fiscal 2025, a decrease of $604,014, or 48.1% ⁸³. Operating expenses totaled $569,782 for fiscal 2026, compared to $436,949 for fiscal 2025, an increase of $132,833, or 30.4% ⁸⁴. Interest expenses were $176,908 for fiscal 2026, compared to $123,168 for fiscal 2025, an increase of $53,740, or 43.6% ⁸⁵. The Company had cash and cash equivalents of $204,020 as of June 30, 2026, compared to total current assets of $493,806 ⁸⁶. The Company had total current liabilities of $4,976,247 as of June 30, 2026, compared to $4,722,571 as of June 30, 2025 ⁸⁷. The working capital deficit was $4,482,441 as of June 30, 2026, compared to $4,442,949 as of June 30, 2025 ⁸⁸. Net cash used in operating activities was $99,654 for fiscal 2026, compared to $845,971 for fiscal 2025, a decrease of $746,317 ⁸⁹. Net cash used in investing activities was $230,475 for fiscal 2026, compared to $38,180 for fiscal 2025, an increase of $192,295 ⁹⁰. Net cash provided by financing activities was $550,739 for fiscal 2026, compared to $1,024,220 for fiscal 2025, a decrease of $473,481 ⁹¹. The Company had an accumulated deficit of $6,093,584 and a total stockholders' deficit of $2,535,519 as of June 30, 2026 ⁹². The Company's accounts receivable totaled $82,850, inventories totaled $117,352, and prepaid expenses and other current assets totaled $89,584 as of June 30, 2026 ⁹³. The Company's current liabilities included accounts payable of $1,224,542, amount due to related parties of $2,273,528, loan from third party of $833,619, accrued liabilities and other payables of $258,538, contract liabilities of $161,158, and short-term borrowings of $127,000 ⁹⁴. The Company's loan from OCBC Bank in Malaysia totaled $2,189,901 as of June 30, 2026, compared to $2,162,237 as of June 30, 2025 ⁹⁵. The Company's total borrowings, including loans from XU LIMING of $127,000, loan from a third party of $833,619, and loan from OCBC Bank of $2,189,901, totaled $3,150,520 as of June 30, 2026 ⁹⁶. The Company's finance lease liabilities totaled $24,834 as of June 30, 2026, with undiscounted future minimum payments of $12,675 in 2027, $11,507 in 2028, and $1,920 in 2029 ⁹⁷. The Company's revenue recognized at a point in time was $1,422,451 and $1,338,300 for the years ended June 30, 2026 and 2025, respectively ⁹⁸. Revenue recognized during the years ended June 30, 2026 and 2025 that was included in the contract liability balance at the beginning of the year was $22,486 and $68,048, respectively ⁹⁹. The Company's cost of raw materials amounted to approximately MYR5.7 million and MYR7.0 million, representing approximately 69% and 65% of cost of sales for the years ended June 30, 2026 and 2025, respectively ¹⁰⁰. The Company had a net reversal of inventory provision of $124,031 for fiscal 2026, compared to a provision charge of $119,886 for fiscal 2025 ¹⁰¹. Depreciation and amortization expenses were $478,661 for fiscal 2026, compared to $430,371 for fiscal 2025 ¹⁰². The Company's accounts payable increased by $386,831 during fiscal 2026, and accrued liabilities and other payables increased by $139,222 ¹⁰³. Proceeds from issuance of common stock were $514,700, proceeds from related parties were $352,829, repayments of short-term borrowings were $170,880, repayments of bank loan, interest and principal were $119,808, and payments on finance lease liabilities were $26,102 during fiscal 2026 ¹⁰⁴. For fiscal 2025, proceeds from related parties were $1,169,854, proceeds from short-term borrowings were $41,723, repayments of bank loan, interest and principal were $162,910, payments on finance lease liabilities were $21,068, and payment of interest was $3,379 ¹⁰⁵.

The Company faces substantial doubt about its ability to continue as a going concern, having incurred a net loss of $1,393,031 and used cash in operating activities of $99,654 for the year ended June 30, 2026, resulting in an accumulated deficit of $6,093,584, with current liabilities exceeding current assets by $4,482,441 and a stockholders' deficit of $2,535,519 ⁶⁶. The Company's independent registered public accounting firm raised substantial doubt about its ability to continue as a going concern ⁶⁷. The Company identified material weaknesses in internal control over financial reporting, including the lack of a functioning independent audit committee and independent board, inadequate segregation of duties, and insufficient personnel with appropriate U.S. GAAP knowledge and experience ⁶⁸. The Company relies heavily on foreign workers, with 39 of its 47 employees being foreign workers from Indonesia, Myanmar, and Bengal, and is subject to approvals for employment of foreign workers from the Ministry of Home Affairs of Malaysia ⁶⁹. The Company is dependent on third parties for the supply of raw materials, with raw material costs amounting to approximately MYR5.7 million and MYR7.0 million, representing approximately 69% and 65% of cost of sales for the years ended June 30, 2026 and 2025, respectively ⁷⁰. The Company generally does not enter into long-term agreements with customers, and its customers have no obligation to engage it again for future purchases ⁷¹. The Company's common stock trades on the OTC Markets under the symbol SGLA, which may limit liquidity and adversely affect the value of its shares, and it is subject to penny stock regulations that could discourage broker-dealers from effecting transactions ⁷². The Company's operations in Malaysia are subject to risks including changes in Malaysian economic, political, and social conditions, government policies, and foreign exchange controls, which could affect its business and financial performance ⁷³.