Core Viewpoint - Guangdong Jinseng New Energy Co., Ltd. has appointed Jianyin International Financial Co., Ltd. as its overall coordinator for the Hong Kong IPO, having submitted its application to the Hong Kong Stock Exchange [1] Company Overview - Jinseng New Energy is a leading provider of lithium battery recycling and regeneration solutions globally, ranked as the second largest in terms of sales revenue from regeneration in 2024 and the largest third-party recycling company [1][2] - The company's recycling business includes mainstream battery systems such as ternary lithium batteries and lithium iron phosphate batteries, with products used in electric vehicles, energy storage systems, and consumer electronics [2] Financial Performance - The company has experienced a decline in revenue over recent years, with reported revenues of 2.905 billion yuan, 2.892 billion yuan, 2.157 billion yuan, and 937 million yuan for the years 2022, 2023, 2024, and the first half of 2025, respectively [2] - Net profits have also declined, with figures of 151 million yuan, -471 million yuan, -344 million yuan, and -144 million yuan for the same periods [2] - The company recorded gross losses of 157.6 million yuan and 87.7 million yuan in 2023 and 2024, attributed to price volatility of products and significant impairment losses on inventory [3] Market Challenges - The average price of lithium carbonate has significantly decreased, dropping from 426,900 yuan per ton in 2022 to 62,300 yuan per ton by June 30, 2025, impacting the market value of recycled products and compressing profit margins [5] - The company faces operational risks, including increased reliance on major clients for revenue, with the top four clients contributing 67.3% of revenue in the first half of 2025 [5] - Short-term debt pressure is notable, with interest-bearing bank loans and other borrowings totaling 2.1 billion yuan and 1.8 billion yuan due within a year, while cash and cash equivalents stand at only 36.61 million yuan [5] Competitive Landscape - The lithium battery recycling industry is becoming increasingly competitive, with large battery manufacturers and automakers entering the recycling business, putting pressure on third-party recyclers like Jinseng New Energy [6] - The presence of numerous low-cost "black workshop" enterprises further disrupts market order [6] Strategic Focus - The company needs to enhance its channel capabilities and resource integration to secure stable and low-cost access to waste battery materials [8] - Jinseng New Energy plans to expand its operations upstream and downstream in the lithium material production chain, aiming to establish a closed-loop industrial chain and direct links with major battery manufacturers [8] - The long-term outlook for the lithium battery recycling market remains positive, with projections indicating a compound annual growth rate of 48.1% from 2024, reaching a processing scale of 20.6 million tons by 2031 [9]

Group 1: Report Industry Investment Rating - The report does not provide an industry investment rating [1][2][3][5] Group 2: Core View of the Report - Due to the expected loose supply of domestic lithium carbonate in April and the weakening price trend, it is recommended that investors wait and see, paying attention to the support level around 30,000 - 60,000 and the resistance level around 73,000 - 75,000 [5] Group 3: Summary by Related Catalogs Lithium Futures and Spot Price - On April 24, 2025, the closing prices of lithium carbonate futures contracts (near - month, continuous - one, continuous - two, continuous - three) all decreased compared to the previous day, with the near - month contract closing at 68,380 yuan/ton, down 680 yuan. The trading volume of the active contract was 104,384 lots, a decrease of 111,782 lots from the previous day, and the open interest increased by 6,068 lots. The inventory decreased by 180 tons [1] - The average prices of various lithium minerals (lithium spodumene concentrate, lithium mica, etc.) remained unchanged compared to the previous day, while the average prices of lithium carbonate (99.5% battery - grade/ domestic, 99.2% industrial - grade/ domestic) decreased by 50 yuan/ton [1] - The average prices of some lithium compounds (lithium hydroxide, lithium hexafluorophosphate) decreased, while the average prices of some ternary precursors and ternary materials increased slightly [1] Industry News and Company Dynamics - In April 2020, the Ministry of Industry and Information Technology upgraded the "no fire, no explosion" requirement for electric vehicle power batteries from a recommended standard to a mandatory one [2] - The 20,000 - ton iron phosphate lithium hydroxide material project of Baiyin Times Ruitai New Material Technology Co., Ltd. was officially put into production in Baiyin City, Gansu Province. The total planned production capacity of the project is 100,000 tons, to be built in three phases [2] - Fangyuan Co., Ltd. decided to terminate the "Battery - grade Lithium Carbonate Production and Comprehensive Utilization of Waste Lithium - ion Batteries Project" with a planned investment of no more than 2 billion yuan, and has invested 97 million yuan in the project [2] - Linyi Bucha Weimang Environmental Protection New Material Co., Ltd. plans to invest 100 million yuan to build a project for recycling and reusing 10,000 tons of waste lithium - ion batteries annually [1] Supply and Demand Analysis - Supply side: Tianqi Lithium's 30,000 - ton wet - process project at Greenbushes may be put into production in October 2025, which may lead to a decline in the price of imported lithium ore. The monthly production of domestic lithium carbonate may increase, and the supply is expected to be loose. Some production lines will undergo maintenance, and new production capacity will be put into operation [3][5] - Demand side: The downstream demand for lithium products is gradually recovering. The production and inventory of some products (such as lithium iron phosphate) may increase, while the export volume of some products (such as lithium hydroxide) may decrease [3][5]