Jinyuan Environmental Protection solves the pain points of used clothing sorting with AI sorting technology and plans to raise 20 million yuan in financing
I. Jinyuan Environmental Solutions Leverages AI Sorting Technology to Solve Post-Consumer Textile Sorting Pain Points, Plans to Raise 20 Million RMB in Financing
The traditional waste textile recycling industry has long been constrained by manual sorting models, which suffer from low sorting efficiency, high material identification errors, and inconsistent classification standards. A large number of small and medium-sized recycling merchants in Northeast China cannot afford investments in intelligent equipment, resulting in high sorting difficulty for mixed post-consumer textile "black materials", insufficient purity of recycled raw materials, and a lack of full-process traceability systems—all of which restrict the large-scale development of the industrial chain. Jinyuan Environmental Solutions, located in Tieling, Liaoning, has launched an AI-powered intelligent fine sorting project for waste textiles. The project aims to close the industrial loop through automated production lines, OEM processing services, and carbon value-added businesses. Currently in the preparation phase, the company plans to raise 20 million RMB in financing and release 20% of its equity to support project implementation and construction.
II. The Regional Market Faces a Large-Scale Processing Gap, With Prominent Industry Pain Points
The project sets a 200-kilometer raw material radiation radius, where over 500,000 tons of waste textiles are available annually. However, there are no similar standardized intelligent sorting bases in northern Liaoning, and the market supply is dominated by small manual workshops.
For upstream recycling merchants, building self-owned sorting equipment involves high input costs, and manually sorted materials lack sufficient purity, limiting downstream manufacturers' procurement bargaining power. Multi-material mixed waste fabrics are difficult to fully separate manually, leading to a large amount of recyclable resources being disposed of at low value and low resource utilization rates. Meanwhile, small workshops lack standardized traceability systems, resulting in no complete data records for the circulation of recycled raw materials, which makes it difficult to meet the compliant procurement requirements of large downstream enterprises.
Local chemical fiber, thermoelectric, and agricultural enterprises have stable demand for recycled raw materials. There is a clear supply-demand mismatch between regional raw material supply and standardized processing capacity, creating viable space for a large-scale intelligent sorting project to be implemented.
III. Integrated AI-Spectroscopy Equipment Builds Core Technical Barriers
Jinyuan Environmental Solutions has established an exclusive equipment partnership with Tianjin TiDai to deploy a complete integrated sorting production line combining AI visual recognition, near-infrared spectroscopy detection, and intelligent robots, replacing traditional manual operations.
The equipment can accurately distinguish various fabric materials such as cotton-linen, polyester, nylon, and wool, with a material identification accuracy of 98%. Its sorting efficiency is 10 times that of manual operations, reducing overall operating costs by 60%. It can process the mixed "black materials" that the industry struggles to handle, achieving a comprehensive resource utilization rate of 98%. The high-purity PET recycled materials produced have market premium capabilities.
The project is equipped with a supporting blockchain traceability system that retains data throughout all stages: product warehousing, sorting processing, and finished product outbound. This enables traceability and verification of every batch of recycled raw materials, meeting the compliant operation needs of upstream and downstream enterprises. The entire production line adopts a fully enclosed clean production design, generating no process wastewater during processing. Only 16 employees are required to complete the lightweight full-process operation. The equipment partner will continuously iterate the intelligent recognition algorithm to maintain long-term technical competitiveness.
IV. A Diversified and Tiered Business Model Covering Two Types of Upstream and Downstream Customers
The project's service targets are divided into the upstream recycling end and the downstream production end. Upstream, it serves scattered recycling stations and post-consumer textile recycling merchants in Northeast China, providing incoming material sorting OEM services and supporting warehousing and logistics. Downstream, it connects with recycled textile, rubber-plastic, energy, and infrastructure enterprises, selling three types of recycled products: high-purity PET raw materials, low-value filling materials, and combustion rods.
In addition to revenue from basic processing and product sales, the project simultaneously expands value-added businesses, including carbon asset accounting, carbon benefit development, industrial policy interpretation, and project declaration services, to tap into the added value of the circular economy.
Relying on circular industry support policies, the project can enjoy VAT refund upon collection, green credit, and special industrial subsidies. It has already completed project filing and obtained EIA exemption, making the compliance operation threshold significantly lower than that of small processing workshops. Financial calculations show that the project's break-even point is 40.53%, the after-tax internal rate of return is 19.65%, and the static payback period of investment is 5.5 years. The multi-category revenue structure can hedge against the risk of single-product market fluctuations.
V. Led by a Senior Industrial Team, the Industrial Layout Will Be Promoted in Three Stages
The project is led by General Manager Tie Chengwei, who has 8 years of frontline practical experience in the entire waste textile industry chain, fully covering recycling, sorting, processing, and distribution. He has in-depth knowledge of industry costs, operational rules, and market pain points. His previous civil engineering work experience enables him to scientifically complete site planning, production line layout, cost accounting, and large-scale operation management. Meanwhile, he has accumulated resources covering upstream and downstream recycling, processing, production, and sales channels across Northeast China and the rest of the country, which can quickly open up the regional industrial chain.
Based on the current project preparation status, the team has formulated a clear phased development plan:
In the short term, by the first year of production in 2027, a production line with an annual processing capacity of 20,000 tons will be completed, 300 community intelligent recycling bins will be deployed, raw material supply and long-term downstream cooperative orders will be secured, and the target annual revenue will exceed 40 million RMB;
In the medium term, from 2028 to 2029, the sorting and RDF forming production lines will be expanded, the annual processing capacity will be increased to 100,000 tons, the recycling network around Liaoning and Jilin will be expanded, CCER carbon emission reduction filing will be completed, the green factory qualification will be applied for, and the annual net profit will exceed 30 million RMB;
In the long term, within 5 to 10 years, 3 to 5 sorting bases will be laid out across the country, with a total production capacity exceeding 200,000 tons. The PET deep processing business will be extended, overseas sales channels will be opened, the entire industrial chain layout will be improved, and preparations will be made to enter the capital market to build a leading enterprise in the waste textile recycling sector in Northeast China.
The raised financing funds will be used for production line construction, recycling network deployment, algorithm iteration, and market channel expansion. Relying on the multiple advantages of regional resources, technology, and policies, the project is expected to fill the gap in waste textile resource processing in Northeast China, achieving a balance between environmental benefits and commercial returns.