Core Viewpoint - Greeenme plans to initiate an "A+H" dual financing model to support its global expansion and enhance its international brand image and competitiveness through the issuance of H-shares in Hong Kong [2][3]. Company Overview - Greenme, established in 2001 and headquartered in Shenzhen, focuses on "battery materials" and "battery recycling" [2]. - The company is currently the largest battery recycling enterprise globally, processing over 10% of retired power batteries in China and recovering more than 20% of the country's nickel resources [2]. Financial Performance - Greenme's revenue for 2024 is projected to be 33.2 billion yuan, reflecting an 8.75% year-on-year increase, with a net profit of 1.02 billion yuan, up 9.19% [3]. - The revenue from ternary materials reached 25.76 billion yuan, a 10.24% increase, accounting for 77.6% of total revenue, while battery recycling generated 7.44 billion yuan, a 3.87% increase, making up 22.4% of total revenue [3]. Market Trends - The battery recycling industry is expected to see a peak in battery retirements between 2027 and 2030, with Greenme aiming to recycle over 500,000 tons of batteries and achieve sales exceeding 10 billion yuan by 2030 [4]. - The actual recovery volume of used lithium-ion batteries in China is estimated at 654,000 tons in 2024, with projections of 4.246 million tons by 2030 [4]. Strategic Partnerships - Greenme has established strategic partnerships with several major battery manufacturers and automotive companies, including CATL, GAC Group, and others, to enhance its battery recycling capabilities [5]. Industry Challenges - Despite being a leading player, Greenme faces challenges such as intense competition for battery sources and the need to improve recycling and reuse technologies while ensuring safety [5][6]. Regulatory Environment - The regulatory framework for battery recycling is evolving, with new guidelines being implemented to strengthen the recycling system and enhance compliance [6]. - The recent wave of companies from the lithium battery supply chain, including Greenme, seeking to list in Hong Kong reflects a strategic response to global energy transformation and capital market opportunities [6].

Core Insights - The current state of the used power battery recycling industry is characterized by a mismatch between supply and demand, leading to a seller's market and pressure on profitability [1][4][5] - The anticipated "retirement wave" of power batteries is expected to occur in 4-5 years, which may alleviate some supply-demand pressures, but the industry still requires better guidance and regulation [1][3][6] Industry Overview - The rapid growth of the new energy vehicle (NEV) industry has led to a surge in the power battery recycling sector, with over 172,000 battery recycling-related companies in China, more than 60% of which were established within the last three years [2] - Despite the expansion, the actual utilization rate of the industry's nominal capacity is only 15.5%, with a significant gap between the expected and actual retirement of batteries [2][3] Market Dynamics - The recycling market is currently facing high acquisition prices for retired batteries, while the selling prices of recycled products do not cover raw material costs, resulting in a "cost inversion" scenario [4] - Informal recycling operations without environmental and safety certifications are exacerbating the situation by offering higher prices for retired batteries, further straining the profitability of legitimate companies [4] Future Projections - While the recycling volume of lithium-ion batteries is projected to exceed 4 million tons by 2030, the lack of regulatory guidance may lead to continued supply-demand imbalances [3] - The price of lithium carbonate is expected to decline, which could lead to long-term cost inversion for recycling companies, shifting their revenue model towards service fees for waste management rather than product sales [5] Regulatory Developments - Recent regulations, such as the "Interim Measures for the Recycling and Utilization of Waste Power Batteries for New Energy Vehicles" in Sichuan, aim to standardize the recycling process and ensure retired batteries enter formal channels [6] - The national government is working on revising the existing regulations to enhance industry oversight and promote sustainable development, with new guidelines expected to be released within the year [6]

Core Viewpoint - The rising prices of ternary waste materials are driving a recovery in the battery recycling industry [1] Group 1: Price Trends - Ternary waste material prices have seen continuous increases, with price hikes ranging from hundreds to thousands of yuan [2] - As of March 28, the prices for scrapped ternary batteries have risen, with specific increases of 400 yuan/ton for square shell batteries and 550 yuan/ton for soft-pack batteries [2] - The price of scrapped ternary pole pieces has reached 46,000 - 48,150 yuan/ton, while ternary pole piece powder fluctuates between 52,400 - 54,900 yuan/ton, and ternary battery powder is priced at 32,850 - 35,250 yuan/ton [2] - Cobalt prices have increased by over 60% since mid-February, and nickel prices have risen by more than 5% in the first quarter of this year [2] Group 2: Market Reactions - Holders of ternary waste materials are generally reluctant to sell, anticipating further price increases for metal salts, leading to reduced actual circulation of ternary waste materials and exacerbating supply tightness [3] - Downstream recycling companies are cautious despite the potential for increased profit margins due to rising raw material prices, as rapid price fluctuations pose significant risks [3] - Some recycling companies prefer to consume existing inventory rather than procure new materials to mitigate uncertainties from price volatility [3] Group 3: Industry Outlook - The increase in waste material prices is beneficial for the battery recycling industry, allowing legitimate recycling companies to acquire waste at more reasonable prices and attract more used batteries into formal channels [3] - The battery recycling market requires deeper commercial model support, as issues related to sourcing, channels, scale, equipment, and technology still hinder the industry's development [4] - The potential for the battery recycling market is significant, especially with the anticipated wave of retired power batteries around 2027, but the industry is still in its early stages of growth [4] - Challenges such as technical standards, business models, and regulatory policies need to be addressed collaboratively to resolve existing issues in the battery recycling industry [4]