Core Viewpoint - Guangdong Jingsheng New Energy Co., Ltd. (Jingsheng New Energy) has refiled its listing application on the Hong Kong Stock Exchange amid a challenging period for the lithium battery industry, characterized by price declines and increased competition, while the company aims to leverage its resource recycling technology to tell a new story in the capital market [1][2]. Company Overview - Jingsheng New Energy is a leading global provider of lithium battery recycling and regeneration solutions, recognized as the second-largest in the world by revenue from recycling sales in 2024, and the largest third-party service provider in this sector [2]. - The company's recycling business covers mainstream battery systems, including ternary lithium batteries and lithium iron phosphate batteries, with products widely used in electric vehicles, energy storage systems, and consumer electronics [2]. Financial Performance - The company has reported cumulative losses exceeding 1 billion RMB over the past three and a half years, with a significant revenue drop of 56.5% year-on-year in the first half of 2025 [2][3]. - Revenue figures for the years 2022 to 2025 show a decline from approximately 2.905 billion RMB in 2022 to 937 million RMB in the first half of 2025, with net profits fluctuating from a profit of 151 million RMB in 2022 to a loss of 144 million RMB in the first half of 2025 [3][4]. Market Dynamics - The lithium battery metal market has experienced extreme volatility, with lithium carbonate prices plummeting over 80% from a peak of 426,900 RMB per ton in 2022 to 80,100 RMB per ton in 2024, further dropping to a historical low of 62,300 RMB per ton in the first half of 2025 [5][6]. - Despite these challenges, the company achieved a positive gross margin in the first half of 2025, attributed to both market improvements and internal operational efficiencies [5][6]. Strategic Initiatives - Jingsheng New Energy is pursuing an aggressive vertical integration strategy, aiming to strengthen upstream black powder production and extend downstream into cathode material manufacturing, thereby creating a closed-loop industry chain from recycling to regeneration [7][8]. - The company plans to enhance its processing capacity for retired batteries and expand its black powder production to reduce reliance on external suppliers and control costs [7]. Risks and Challenges - The company faces execution risks in its strategy, including technological barriers in transitioning from recycling to cathode material production and potential financial strain from capital expenditures amid tight cash flow [9]. - Customer concentration is a significant concern, with the top five customers accounting for 67.3% of revenue in the first half of 2025, raising the risk of operational instability if any major customer defaults or delays payments [9][10]. Conclusion - The company has shown resilience with a positive gross margin in the first half of 2025, but the focus remains on how well it can navigate the cyclical pressures of commodity prices while maintaining operational stability and growth in the resource recycling narrative [11].
碳酸锂暴跌80%行业至暗时刻 金晟新能谋“一体化”破局
Zhi Tong Cai Jing·2025-09-12 00:33