Core Viewpoint - Guangdong Jingsheng New Energy Co., Ltd. is attempting a second IPO on the Hong Kong Stock Exchange despite facing significant financial challenges, including a cumulative net loss of 959 million yuan over the past two and a half years due to price wars in the lithium and nickel markets [1][2]. Financial Performance - The average selling price of lithium carbonate dropped from 396,000 yuan/ton to 59,000 yuan/ton, and nickel sulfate from 35,000 yuan/ton to 23,000 yuan/ton during the reporting period [2]. - Despite a nearly 200% increase in lithium carbonate sales and over 40% growth in nickel sulfate sales from 2022 to 2024, total revenue fell to 2.157 billion yuan in 2024, approximately 70% of 2022's revenue [2]. - The gross margin for lithium and nickel recycling products turned negative in the second year, with margins of -2.9%, -2.3%, and -0.1% for lithium products from 2023 to the first half of 2025 [2][3]. Cost Structure - Management and R&D expenses have been rising, with management expense ratio reaching 8.52% and R&D expense ratio at 5.59% in the first half of 2025, totaling 14.11% of revenue [3]. - The company’s net profit for the reporting period was 151 million yuan, -471 million yuan, -344 million yuan, and -144 million yuan, leading to a cumulative loss of 959 million yuan over the last two and a half years [3]. Debt and Cash Flow - The company’s cash flow from operating activities was negative for most of the reporting period, with a significant drop of 98.4% in the first half of 2025 compared to the previous year [4]. - The debt-to-asset ratio increased from 48.53% to 73.30% over the reporting period, indicating growing financial pressure [5]. - As of June 2025, the company had 2.1 billion yuan in short-term and long-term loans, while cash and cash equivalents were only 36.61 million yuan [5]. Production Capacity and Market Conditions - The company’s capacity utilization rates were 74.1%, 77.0%, 78.2%, and 53.2% over the reporting period, with a significant drop in the first half of 2025 due to technical upgrades [6]. - The company faces challenges in generating sufficient orders to utilize new production capacity, with contract liabilities at only 1.325 million yuan and accounts payable at 335 million yuan [6]. - The ongoing price pressure in the lithium and nickel markets raises concerns about the economic viability of expanding production under current conditions [6]. Industry Outlook - Strong demand in the new energy vehicle and energy storage markets is expected to drive the demand for lithium iron phosphate materials, with growth rates potentially exceeding the overall lithium battery industry [6]. - The lithium iron phosphate industry is currently at a historical low in profitability, suggesting conditions for recovery may be present [6].
广东金晟赴港IPO：全球第二难逃价格战两年亏近10亿 产能利用率不饱和继续扩产是否明智？
Xin Lang Cai Jing·2025-10-24 08:57