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 intensified competition, while the company aims to leverage its resource recycling technology to tell a new story in the capital market [1]. 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 56.5% year-on-year revenue decline in the first half of 2025 [2][3]. - Revenue figures for the fiscal years 2022 to 2025 (up to June 30) are approximately 2.905 billion RMB, 2.892 billion RMB, 2.157 billion RMB, and 995 million RMB, respectively, with net profits showing a significant downturn [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 in 2024, and further dropping to 62,300 RMB in the first half of 2025 [5]. - The company has faced significant pressure on profitability due to the drastic decline in metal prices, leading to a situation where product prices fell below production costs [4][5]. Strategic Initiatives - Jingsheng New Energy is pursuing an aggressive vertical integration strategy to mitigate the impacts of price volatility and financial losses by enhancing upstream black powder production capacity and expanding downstream into cathode material manufacturing [7][8]. - The company plans to increase its capacity for processing retired batteries to 80,000 tons per year and aims to produce 10,000 tons of lithium iron phosphate cathode materials, marking its entry into the manufacturing sector [7][8]. Risks and Challenges - The company faces execution risks related to technological barriers in transitioning from recycling to cathode material production, as well as financial pressures from capital expenditures amid tight cash flow [9]. - Customer concentration is a growing concern, with the top five customers accounting for 67.3% of revenue in the first half of 2025, indicating a high dependency on a limited number of clients [9][10]. - The average collection period for trade receivables has increased from 38 days in 2022 to 56 days in the first half of 2025, suggesting potential liquidity issues and a weakening ability of customers to pay [10].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][5] Core Views - The company reported a year-on-year revenue growth of 14.18% in 1H25, reaching 329.60 billion yuan, and a net profit growth of 32.68%, amounting to 11.43 billion yuan. In 2Q25, revenue was 158.97 billion yuan, up 18.91% year-on-year, while net profit was 7.14 billion yuan, reflecting a year-on-year increase of 29.30% [3][4] - The company is positioned as a leading global supplier of ultra-thin flexible glass, with significant market share in the foldable screen segment. The demand for new 3D glass is rapidly increasing, leading to a substantial rise in the value of individual units [4][5] - The company has successfully expanded its product matrix in the smart automotive and cockpit sectors, achieving breakthroughs in core product lines and preparing for mass production of new models in collaboration with major automotive brands [4][5] Summary by Sections Financial Performance - In 1H25, the company's revenue was 329.60 billion yuan, with a year-on-year increase of 14.18%. The net profit for the same period was 11.43 billion yuan, up 32.68% year-on-year. For 2Q25, revenue was 158.97 billion yuan, reflecting an 18.91% year-on-year growth, while net profit reached 7.14 billion yuan, a 29.30% increase year-on-year [3][4] Business Segments - Revenue from the smartphone and computer segment was 272 billion yuan, with a 13% year-on-year growth. The smart automotive and cockpit segment generated 32 billion yuan, growing by 16% year-on-year. The smart wearable and head-mounted display segment saw revenue of 16 billion yuan, up 15% year-on-year, while other smart terminal businesses grew by 128% year-on-year, generating 3.6 billion yuan [3][4] Market Position and Strategy - The company completed the R&D and mass production preparations for several flagship smartphones in the first half of 2025, enhancing its market share and profitability. The personal computer business benefited from a recovery in market demand, with simultaneous increases in production and profitability [4][5] - The company has initiated a global capacity layout through its Hong Kong listing, with 30% of the raised funds allocated for technology reserves and capacity construction for foldable screen components and related accessories [5]

Core Insights - The article discusses the competitive dynamics between Geely and BYD in the Chinese electric vehicle market, highlighting Geely's recent resurgence in the new energy vehicle segment, with a penetration rate of 51.5% and total sales of 1.409 million vehicles in the first half of the year, compared to BYD's 2.146 million vehicles [1][2][20] - Geely's CEO expressed confidence in closing the market share gap with BYD, which currently stands at 4 percentage points, down from 8 percentage points last year [1][2] - The rapid growth of Geely's Galaxy brand, which achieved sales of 643,000 vehicles in the first seven months of the year, is a significant factor in this turnaround, with a year-on-year increase of 556% [1][2] Geely's Strategy and Market Position - Geely's strategy involves closely mirroring BYD's successful approaches, including pricing and technology, with the Galaxy brand's EM-i hybrid system directly competing with BYD's DM-i system [2][5] - The company has shifted from a multi-gear hybrid system to a single-gear system to reduce costs and improve efficiency, which has allowed for better price positioning against BYD [5][6] - Geely's R&D investment has been optimized, with a total of 8.6% reduction in spending compared to the previous year, allowing for more efficient use of resources [6][20] Product Offerings and Market Segmentation - Geely's Galaxy brand focuses on the 50,000 to 150,000 yuan price range, with models like the Galaxy L6, L7, and E5 targeting direct competition with BYD's offerings [6][11] - The company aims to capture the 100,000 yuan market segment by addressing consumer pain points and enhancing product features, as seen in the Galaxy A7's competitive specifications [15][21] - Geely's approach includes a dual-channel sales strategy, with plans to expand its dealer network significantly by 2025 [19][20] Future Outlook and Challenges - Geely aims to achieve a 30% increase in overseas sales in the second half of the year, with a focus on expanding its presence in international markets [20][21] - The company faces challenges in balancing volume and profitability, particularly in the mid-to-high-end market, where the Galaxy E8 has underperformed [17][21] - Geely's future success will depend on its ability to innovate and differentiate itself from competitors like BYD while maintaining cost efficiency and market responsiveness [18][21]

公司具备强大的平台化能力，涵盖人才、技术、供应和智能制造等方面，并积累了深厚的技术和能力， 尤其在消费电子和智能汽车领域。公司积极拓展新业务领域，例如人形机器人和AI眼镜/XR头显的关键 核心部件量产及整机组装。 公司业务涵盖从原材料及功能结构件生产、功能模组贴合到智能终端整机组装的全产业链。拥有多种功 能材料的技术能力，实现了全材料覆盖，是全球消费电子供应链中少有同时具备玻璃和金属先进制程能 力的解决方案提供商。为客户提供从设计到量产的一站式垂直整合服务。 目前，公司已实现从原材料及功能结构件生产、功能模组贴合到整机组装的智能终端全产业链垂直整 合，其材料技术涵盖玻璃、金属、蓝宝石、陶瓷、塑胶、皮革、硅胶、玻纤和碳纤等。公司与全球领先 的消费电子及智能汽车品牌客户建立了长期战略合作伙伴关系，通常在产品上市前2到3年就深度参与到 客户的研发和生产中。此外，公司还横向拓展业务至智慧零售终端、工业及人形机器人、AI眼镜/XR头 显等多元化场景。 蓝思科技（300433）递表港交所主板，中信证券为其独家保荐人。 公司与主要原材料和设备供应商保持稳定和长期的合作关系。2022年、2023年和2024年，公司向前五大 ...