Summary of the Conference Call for Greenme (格林美) Company Overview - Greenme operates primarily in three business segments: 1. Key metal resources, including nickel and cobalt business and material recycling 2. Power battery recycling, which also includes recycling of new energy vehicles 3. New energy material manufacturing, covering ternary precursors, cobalt tetroxide, and cathode materials [3][4] Nickel and Cobalt Business - The nickel resource project in Indonesia is in stable production, with Q4 nickel shipments around 30,000 tons and cobalt shipments approximately 3,000 tons, significantly contributing to profits [2][5] - The new 66,000-ton project is expected to commence production in the second half of 2026, with total MHP shipments projected to reach 170,000-180,000 tons by 2027 [2][5] - Current ownership of the existing 150,000-ton nickel project is about 50%-55%, which is expected to decrease to around 30% after the new project starts, with new shareholders like Echo Pro and Indonesian equity funds joining [2][6] - Nickel resources are primarily shipped in MHP form, sold at a 10% discount to market prices, with production costs estimated at $8,500-$9,000 per ton (excluding financing costs) [2][7] - Cobalt revenue is used to offset nickel production costs, with Q4 cobalt prices calculated at 400,000 RMB per ton, allowing for a cost offset of approximately $5,000 per ton of nickel [2][8] - Q4 average nickel price was approximately $15,000 per ton, leading to a profit of over $5,000 per ton after costs [2][9] Cost Management and Profitability - Greenme aims to reduce costs by $100-$200 per ton by 2025 and to achieve similar reductions in 2026 through raw material improvements, process optimization, and depreciation dilution [2][11] - Q1 production is expected to be around 36,000 tons, with optimistic profit expectations if nickel prices remain high at $17,000 per ton [2][12] - The company avoids using financial instruments for hedging, focusing instead on manufacturing profits [4][13] Tungsten Recovery Business - Tungsten recovery is projected to reach 7,000-8,000 tons in 2025 and potentially 10,000 tons in 2026, with a net profit of about 20,000 RMB per ton [4][16] - The tungsten business is expected to contribute approximately 140 million RMB in profits in 2026, based on a 70% ownership stake [4][18] Market Dynamics and Price Expectations - Nickel prices are expected to fluctuate between $16,000 and $20,000 per ton, with the Indonesian government likely to maintain a price floor [4][22] - The MHP discount coefficient has increased to 90%, with potential for further increases due to tightening cobalt supply [4][27] - The stainless steel market has limited impact on Greenme's business, as it primarily uses nickel iron rather than MHP [4][28] Future Outlook - The company anticipates a 20% increase in ternary precursor sales in 2026 and an additional 10,000 tons of cathode materials [4][35][32] - Greenme plans to list on the Hong Kong stock market in Q2 2026 to enhance its market performance [4][38] - The lithium battery recycling segment is expected to achieve significant profit growth, targeting tens of millions to potentially 100 million RMB in 2026 [4][37] - Overall, the nickel and cobalt market outlook remains positive, with expectations of price increases due to government policies and supply constraints [4][39]