Core Viewpoint - Greeenme Co., Ltd. has officially initiated the planning for its H-share listing on the Hong Kong Stock Exchange to support its global development strategy and enhance its international brand image and competitiveness [1] Group 1: H-share Listing - The company held a board and supervisory committee meeting on August 21 to approve the series of proposals for the H-share issuance [1] - The purpose of the H-share issuance is to leverage diversified financing channels in the international capital market for sustainable development and management [1] Group 2: Company Overview - Founded in 2001 and headquartered in Shenzhen, Greenme specializes in the manufacturing of new energy materials and urban mining [1] - The company has established a full lifecycle value chain encompassing battery recycling, raw material regeneration, material regeneration, battery pack regeneration, and new energy vehicle services [1] - Greenme is a pioneer in urban mining in China and a promoter of the global new energy industry, having built 16 major recycling industrial parks worldwide [1]

Financial Performance - In 2024, the company achieved a revenue of CNY 33.2 billion, a year-on-year increase of 8.75%, marking a historical high [3] - The net profit attributable to shareholders reached CNY 1.02 billion, up 9.19% year-on-year [3] - In Q1 2025, the company reported a revenue of CNY 9.496 billion, a 13.67% increase compared to the same period last year [3] - The net profit for Q1 2025 was CNY 511 million, reflecting a 12.10% year-on-year growth [3] Market Trends and Challenges - The global ternary battery market share is declining, with domestic share dropping to 18% in 2024, posing strategic challenges [2] - By 2030, the global market for ternary batteries and lithium iron phosphate (LFP) batteries is expected to balance out [2] - The company anticipates a significant increase in the recycling of retired power batteries, with an estimated utilization of over 300,000 tons in 2024 [6] Innovation and Technology - The company has invested CNY 8 billion in technology, achieving significant breakthroughs in nickel resources, ternary precursors, and battery recycling [2][3] - The company has developed a complete CTP battery pack disassembly process with a disassembly yield exceeding 92%, significantly higher than the industry average of 80% [5] - The company is focusing on digital upgrades and AI integration to enhance operational efficiency and innovation [3] Strategic Initiatives - The company aims to achieve a revenue target of CNY 60 billion by 2027, emphasizing resource recycling and new energy material manufacturing [6] - Plans for 2025 include expanding production capacity and forming strategic alliances to enhance competitiveness [3][4] - The company is actively pursuing global partnerships to mitigate trade challenges and enhance market stability [6] Environmental and Regulatory Factors - The company is adapting to changes in electronic waste subsidy policies, which have led to a reduction in electronic waste dismantling scale [4] - The company is committed to sustainable practices, focusing on low-carbon nickel resource products to align with global environmental standards [17] Talent and Management - The company has implemented a talent reserve strategy, focusing on recruiting innovative and globally-minded individuals to strengthen its management team [4] - A new management team has been appointed to navigate future challenges and drive international expansion [4] Financial Strategy - The company plans to optimize its capital structure and enhance shareholder value through share buybacks and dividend policies [22] - The company is exploring overseas financing options, including issuing H-shares and green bonds, to support its global expansion [20]

Core Viewpoint - The company has reported significant growth in its first quarter of 2025, with record high sales revenue, net profit, and operating cash flow, driven by strong demand in its dual-track business model of urban mining and new energy materials manufacturing [24][25]. Financial Performance - The company achieved operating revenue of 9.496 billion yuan, a year-on-year increase of 13.67% [24] - Net profit attributable to shareholders reached 511 million yuan, up 12.10% year-on-year [24] - The net cash flow from operating activities was 634 million yuan, reflecting a substantial increase of 77.92% compared to the previous year [24] - Investment income surged by 1.35 billion yuan, marking a growth of 4,103.55% due to the sale of ECOPRO MAT shares [4] Business Operations - The average capacity utilization rate for core products exceeded 97%, with a strong average shipment growth rate of approximately 42% [24] - Nickel resource MHP shipments exceeded 25,000 tons, showing a significant year-on-year increase of over 138% [7] - The company has successfully completed the election of a new management team, focusing on attracting young and innovative talent to enhance its competitive edge [9][10] Strategic Initiatives - The company has initiated a global supplier alliance to address trade challenges and enhance market stability, involving over 120 global suppliers [13][25] - Strategic partnerships have been established with ECOPRO and other firms to develop an integrated supply chain for nickel resources and precursor materials in Indonesia [14][25] - The company is actively pursuing overseas capital market development, including plans for H-share issuance in Hong Kong [16] ESG and Social Responsibility - The company has signed a memorandum of understanding with UNU Yogyakarta University in Indonesia to promote higher education cooperation, reflecting its commitment to social responsibility and cultural exchange [17] - The company has achieved ISO37301 compliance management system certification, enhancing its risk management capabilities [19] Governance and Shareholder Engagement - The company has completed a new round of share repurchase amounting to 137 million yuan, aimed at boosting market confidence [16][37] - The company has consistently maintained high standards in information disclosure, receiving an A rating for eleven consecutive years from the Shenzhen Stock Exchange [36]

Core Insights - The company reported a total revenue of 33.2 billion yuan in 2024, marking an 8.75% year-on-year increase, and a net profit attributable to shareholders of 1.02 billion yuan, up 9.19% year-on-year [1] - Despite significant progress in new energy materials and urban mining operations, the company faced operational pressure as revenue and net profit declined sequentially in the fourth quarter [1][8] New Energy Materials Business - The new energy materials segment showed strong performance with an average capacity utilization rate exceeding 95%, significantly above the industry average [4] - The total shipment of ternary precursor materials for power batteries reached 189,000 tons, a 5% increase year-on-year, maintaining a top two position globally [4] - Sales of nickel-rich high-voltage ternary precursors grew by 66% to 44,000 tons, indicating the company's leading position in high-voltage precursor technology [4] - Cobalt oxide sales reached 20,664 tons, an 88% increase, capturing over 25% of the global supply, and the company achieved a 102% year-on-year growth in cathode material shipments [4] - Despite strong performance, the fourth quarter saw a 19.2% and 69.9% sequential decline in revenue and net profit, respectively, highlighting short-term market demand fluctuations [4] Urban Mining Operations - The urban mining segment experienced significant growth, particularly in battery recycling and tiered utilization, with revenue from battery recycling rising substantially [5] - The company recycled and dismantled 35,930 tons of power batteries, a 31% increase, equivalent to 4.31 GWh, which is a 41% year-on-year growth [5] - Lithium carbonate recovery exceeded 4,000 tons, with a growth rate of over 44% and a lithium recovery rate surpassing 95% [5] - Tungsten recovery reached 6,486 tons, a 39% increase, and cobalt product sales grew by 76% to 12,557 tons, maintaining over 50% of the global market share for ultra-fine cobalt powder [6] - The scrap vehicle business also saw significant growth, with total recovery reaching 280,000 tons, a 133% increase [6] - However, the fourth quarter net profit for this segment declined by 20.95%, indicating short-term profitability challenges [6] Nickel Resource Development - The company achieved a global output of 51,677 tons of nickel metal, a 91% year-on-year increase, and established a nickel resource capacity of 150,000 tons per year in Indonesia [7] - The company ranks among the top three globally in MHP nickel production capacity, with 110,000 tons controlled and 40,000 tons in joint ventures [7] - The company successfully launched the world's first 1,168m³ high-pressure hydrometallurgical reactor, achieving world-class operational and product quality metrics while significantly reducing carbon emissions [7] - Despite these advancements, the fourth quarter saw a 1250.90% sequential decline in non-recurring net profit, indicating ongoing profitability pressures in this segment [7] Summary - The company achieved revenue and net profit growth in 2024 through its dual-driven strategy in new energy materials and urban mining operations [8] - However, the performance fluctuations in the fourth quarter reveal operational pressures that the company must address to enhance profitability and navigate increasing market competition and economic uncertainties [8]