Core Viewpoint - Greeenmei's upcoming Hong Kong IPO is driven by a pressing need for external financing due to a significant debt gap of nearly 9 billion yuan, despite the company's expanding revenue scale and declining unit value [1][4]. Financial Performance - In the first half of 2025, the company reported a revenue of 17.561 billion yuan, a year-on-year increase of 1.28%, with nearly 60% of this revenue coming from the new energy battery materials business, which grew only 0.56% year-on-year [1][6]. - The company's net profit attributable to shareholders reached 799 million yuan, reflecting a year-on-year growth of 13.91% [6]. Capital Expenditure and Debt - The company's capital expenditure surged from 1.426 billion yuan in 2020 to 11.938 billion yuan in 2024, with 6.628 billion yuan spent in the first half of 2025 [2]. - As of mid-2025, the company had short-term debts of 14.294 billion yuan and long-term debts of 18.686 billion yuan, while its cash and cash equivalents (excluding restricted funds) totaled only 5.4 billion yuan, indicating a short-term debt gap of nearly 10 billion yuan [4]. Business Model and Operations - The company operates a dual business model focusing on "urban mining" and "new energy materials manufacturing," recovering key mineral resources and electronic waste [1]. - Despite a challenging industry environment, the company achieved a significant increase in production capacity utilization, with an average utilization rate of over 95% in its new energy business in 2024, significantly higher than the industry average [6][7]. Inventory and Financial Health - The company's inventory and prepayments rose sharply from 7.479 billion yuan in 2020 to 16.506 billion yuan by mid-2025, accounting for 94% of its revenue during the same period [7]. - The company's gross margin was reported at 15.29% in 2024, higher than its competitor, Zhongwei, which had a gross margin of 12.12% [7].

Core Viewpoint - Greeenme's upcoming Hong Kong IPO is driven by a pressing need for financing due to a significant debt gap of nearly 9 billion, despite the company's expanding revenue. The company's unit value has sharply declined, raising concerns about potential hidden issues in its asset statements [1][5]. Financial Performance - In the first half of 2025, Greenme achieved a revenue of 17.56 billion, a year-on-year increase of 1.28%, with the new energy battery materials business accounting for nearly 60% of total revenue, growing at a mere 0.56% [2][3]. - The company's capital expenditures surged from 1.43 billion in 2020 to 11.94 billion in 2024, with 6.63 billion spent in the first half of 2025 [3][5]. - The net profit attributable to shareholders for the first half of 2025 was 799 million, reflecting a year-on-year growth of 13.91% [10]. Debt and Financing - As of mid-2025, Greenme's short-term debt stood at 14.29 billion and long-term debt at 18.69 billion, while available cash and trading financial assets totaled only 5.4 billion, indicating a short-term debt gap of nearly 10 billion [5]. - The company is heavily reliant on debt for expansion, with financial expenses consuming a significant portion of profits, peaking at 49% of net profit in 2024 [5]. Business Model and Operations - Greenme operates a dual business model of "urban mining and new energy materials manufacturing," focusing on recycling key mineral resources and producing battery materials [2]. - The company has established a comprehensive supply chain for nickel resources, producing high-end battery materials that are widely used in electric vehicles and energy storage [6][7]. Inventory and Production Efficiency - Despite increasing revenue, the efficiency of unit production value has declined, with fixed asset unit values dropping from 2.18 in 2022 to 1.34 in 2024 [10]. - The company reported a high average capacity utilization rate of over 95% in its new energy business, significantly exceeding industry averages, while also experiencing a substantial increase in inventory and prepayments, which rose from 7.48 billion in 2020 to 16.51 billion by mid-2025 [12][14]. Market Position and Strategic Moves - Greenme's new energy materials business saw a revenue increase of 10.24% in 2024, while the urban mining business grew by 3.87% [11]. - The company is seeking to attract strategic investors for its subsidiary in Indonesia to enhance its global competitiveness and integrate deeper into the European and American markets [6][7]. Concerns and Regulatory Issues - There are concerns regarding the high inventory levels and prepayments, which may indicate potential financial engineering practices to defer cost recognition [15]. - The company's auditing firm faced scrutiny for inadequate audit procedures, leading to a change in auditors [16].

Group 1 - The company plans to list H-shares on the Hong Kong Stock Exchange to open overseas financing channels and support future international business development [2] - The H-share listing is not expected to significantly impact the A-share market [2] - The company is actively discussing with intermediaries regarding the details of the H-share issuance and listing [2] Group 2 - In 2024, the company achieved a revenue of 33.2 billion yuan, a year-on-year increase of 8.75%, and a net profit of 1.02 billion yuan, up 9.19% [3] - The net cash flow from operating activities for 2024 was 3.055 billion yuan, reflecting a significant year-on-year growth of 41.14% [3] - In Q1 2025, the company reported a revenue of approximately 9.496 billion yuan, a 13.67% increase year-on-year, and a net profit of about 511 million yuan, up 12.1% [3] Group 3 - The company sees a balanced future market for ternary batteries and lithium iron phosphate (LFP&LMFP) batteries, each thriving in their respective advantageous markets [4] - Ternary batteries are recognized for their high capacity, long range, and superior circular economy performance, with a growing trend in global mid-to-high-end vehicle configurations [4] - The company remains optimistic about the value of rare metals like nickel, cobalt, and lithium in the recycling of ternary battery materials and their unique advantages in low-altitude economy and solid-state battery applications [4]

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]