Core Viewpoint - The article discusses the challenges and opportunities in the lithium battery recycling industry, particularly focusing on the business model of Guangdong Jingsheng New Energy Co., Ltd. (Jingsheng New Energy), which is preparing for an IPO in Hong Kong while facing financial difficulties due to fluctuating raw material prices and inventory devaluation [1][8]. Industry Overview - The lithium battery recycling and regeneration market is emerging with significant growth potential, driven by the increasing volume of retired batteries from electric vehicles and consumer electronics [3][4]. - The total amount of retired lithium batteries in mainland China is projected to grow from 157,100 tons in 2020 to 455,100 tons in 2024, with a compound annual growth rate (CAGR) of 30.5% [3]. Company Profile - Jingsheng New Energy is identified as the second-largest lithium battery recycling and regeneration company globally, and the largest third-party provider in this sector [2]. - The company operates three production facilities in Guangdong and Jiangxi provinces to prepare for the anticipated surge in retired lithium batteries [2]. Financial Performance - In 2022, Jingsheng New Energy reported revenue of 2.905 billion yuan and a net profit of 151 million yuan, benefiting from increased demand in the electric vehicle and energy storage sectors [8]. - However, the company has faced continuous losses since then, with projected revenues of 2.891 billion yuan in 2023 and 2.157 billion yuan in 2024, alongside net losses of 471 million yuan and 344 million yuan, respectively [8][11]. - The significant drop in lithium carbonate prices, from 426,900 yuan per ton in 2022 to 60,000 yuan per ton in 2025, has adversely affected the company's profitability due to inventory devaluation and pricing mismatches [10][11]. Market Dynamics - The primary sources of retired lithium batteries are power batteries from electric vehicles and consumer electronics, accounting for 54.9% and 44.8% of the total retired batteries, respectively [2]. - The lifespan of power batteries typically ranges from five to eight years, leading to a growing supply of retired batteries as the electric vehicle market expands [2][4]. Future Outlook - Jingsheng New Energy plans to enhance its resilience to price fluctuations, optimize procurement and inventory management, and diversify its product offerings to achieve profitability [10].

Core Viewpoint - Jinsheng New Energy has faced continuous losses over the past three years due to inventory impairment, despite a brief profit in 2022. The company is preparing for an IPO in Hong Kong, highlighting its business model focused on lithium battery recycling and reuse, which connects downstream applications with upstream battery material production, forming a circular economy within the lithium battery industry [1][3]. Company Performance - Jinsheng New Energy reported a revenue of 2.905 billion yuan in 2022, with a net profit of 151 million yuan, driven by increased demand in the electric vehicle and energy storage sectors. However, the company has since experienced losses, with revenues of 2.891 billion yuan and 2.157 billion yuan in 2023 and 2024, respectively, alongside net losses of 471 million yuan and 344 million yuan [8][9]. - The company’s inventory impairment losses increased from 57 million yuan in 2022 to 109 million yuan in 2023, significantly impacting gross profit [9]. Market Potential - The lithium battery recycling and reuse market is emerging with substantial growth potential. According to Frost & Sullivan, the total amount of retired lithium batteries in mainland China is expected to grow from 157,100 tons in 2020 to 455,100 tons in 2024, representing a compound annual growth rate (CAGR) of 30.5%. By 2031, this figure is projected to reach 4.8 million tons, with a CAGR of 40.1% from 2024 to 2031 [4][5]. - Jinsheng New Energy is positioned as the second-largest lithium battery recycling and reuse company globally and the largest third-party provider in this sector, with operations in key locations to address the upcoming wave of retired lithium batteries [3][4]. Industry Dynamics - The primary sources of retired lithium batteries are power batteries and consumer electronics, accounting for 54.9% and 44.8% of the total retired batteries, respectively, in 2024 [3]. - The electric vehicle industry has seen rapid growth since 2020, leading to a significant increase in the volume of retired batteries. Battery manufacturers have advantages in recycling due to established sales networks and service systems, which allow them to provide convenient battery recovery services [5]. Future Outlook - Jinsheng New Energy plans to achieve profitability by enhancing price volatility resilience, optimizing procurement and inventory management, diversifying product offerings, and improving operational efficiency. The company aims to mitigate pricing risks through mechanisms such as price locking and dynamic pricing contracts [9].

Core Viewpoint - The company, Guangdong Jinsheng New Energy Co., Ltd. (Jinsheng New Energy), has submitted a second IPO application to the Hong Kong Stock Exchange after a failed attempt in December 2024. The funds raised will be used for various purposes, including the construction of a production base for recycling retired lithium iron phosphate batteries, expanding upstream raw material resources, enhancing R&D capabilities, and general corporate purposes [1][2]. Group 1: Business Overview - Jinsheng New Energy is the second-largest lithium battery recycling and regeneration enterprise globally, focusing on recycling solutions for lithium batteries, including ternary lithium batteries and lithium iron phosphate batteries [2]. - The company operates three production bases located in Zhaoqing, Yichun, and Ganzhou to prepare for the upcoming wave of retired lithium batteries [2]. - The main products include lithium carbonate, nickel sulfate, and cobalt sulfate, with nearly 80% of revenue coming from lithium and nickel recycling products in the first half of this year [2]. Group 2: Financial Performance - The company has experienced a continuous decline in revenue over the past two years, with reported revenues of RMB 29.05 billion, RMB 28.92 billion, RMB 21.57 billion, and RMB 9.37 billion for the respective years [4]. - Net profit figures show that the company recorded a profit of RMB 1.51 billion in 2022, but incurred losses of RMB 4.71 billion in 2023, RMB 3.44 billion in 2024, and RMB 1.44 billion in the first half of 2025, totaling nearly RMB 9.6 billion in losses over the reporting period [4]. - The average selling prices of key products have significantly decreased, with lithium carbonate prices dropping nearly 85% from approximately RMB 400,000 per ton in 2022 to less than RMB 60,000 per ton in the first half of this year [3]. Group 3: Financial Health and Risks - The company's short-term solvency has deteriorated, with current and quick ratios both at 0.5 as of June 30, 2025, indicating financial risk [6]. - The net value of current assets has declined from RMB 656 million at the end of 2022 to -RMB 957 million by the end of 2024, further worsening to -RMB 1.029 billion in the first half of 2025 [6]. - The concentration of customers and suppliers has increased, with the top five customers accounting for 52.7% to 67.3% of revenue during the reporting period, and the largest single customer contributing 13.9% to 45.2% of revenue [4][5].

Core Viewpoint - Guangdong Jinsheng New Energy Co., Ltd. has submitted an application to the Hong Kong Stock Exchange, positioning itself as a leading provider of lithium battery recycling and regeneration solutions globally, aiming for a sustainable future [1] Group 1: Company Overview - Jinsheng New Energy is the second largest lithium battery recycling and regeneration company globally by sales revenue in 2024, and the largest third-party provider in this sector [1] - The company has established an integrated ecosystem for lithium battery recycling since its inception in 2014, leveraging its first-mover advantage and comprehensive capabilities [1] Group 2: Fundraising and Use of Proceeds - The funds raised from the application will be used for the construction of a facility in Ganzhou, Jiangxi Province, to process retired lithium iron phosphate batteries, expand upstream raw material resources, enhance R&D capabilities, and attract talent [1] Group 3: Financial Performance - In 2024, the company reported a revenue of 2.157 billion yuan, a year-on-year decrease of 25.39%, and a net loss attributable to shareholders of 344 million yuan, an improvement from a loss of 471 million yuan in the previous year [2] - For the first half of 2025, the company achieved a revenue of 937 million yuan, down 5.83% year-on-year, with a net loss of 144 million yuan, slightly worse than the loss of 143 million yuan in the same period last year [2] Group 4: Cash Flow Analysis - In 2024, the net cash flow from operating activities was -187 million yuan, a decrease of 129 million yuan year-on-year, while financing activities generated a net cash flow of 652 million yuan, down 216 million yuan [6] - For the first half of 2025, the net cash flow from operating activities was 638,000 yuan, a significant decline of 98.4% year-on-year [6] Group 5: Asset Changes - As of June 2025, the company's cash and cash equivalents increased by 48.98%, while inventory decreased by 57.97% [10] - Prepaid accounts decreased by 22.83%, and fixed assets increased by 1.42% [10] Group 6: Liability Changes - As of June 2025, long-term borrowings decreased by 19.77%, while deferred income increased by 22.25% [13] - Other payables decreased by 16.63%, and accounts payable increased by 0.78% [13]

Core Viewpoint - Guangdong Jinsheng New Energy Co., Ltd. (hereinafter referred to as "Jinsheng New Energy") has submitted its IPO application to the Hong Kong Stock Exchange, marking its second attempt after a failed submission in December 2024. The funds raised will be used for various purposes including the construction of a production base for recycling retired lithium iron phosphate batteries, expanding upstream raw material resources, enhancing R&D capabilities, and general corporate purposes [1][2]. Group 1: Company Overview - Jinsheng New Energy, established in 2010, is the second-largest lithium battery recycling and regeneration company globally, and the largest third-party provider in this sector, according to a report by Frost & Sullivan [2]. - The company operates three production bases located in Zhaoqing, Yichun, and Ganzhou to prepare for the upcoming wave of retired lithium batteries [2]. Group 2: Financial Performance - Jinsheng New Energy has experienced a continuous decline in revenue over the past two years, with reported revenues of RMB 29.05 billion, RMB 28.92 billion, RMB 21.57 billion, and RMB 9.37 billion for the respective years [5]. - The company recorded a cumulative loss of nearly RMB 10 billion over the past two and a half years, with only 2022 showing a profit of RMB 1.51 billion, while losses in 2023 and 2024 amounted to RMB 4.71 billion and RMB 3.44 billion respectively [5]. - The average selling prices of key products have significantly decreased, with lithium carbonate prices dropping nearly 85% from approximately RMB 400,000 per ton in 2022 to below RMB 60,000 per ton in the first half of this year [4]. Group 3: Financial Ratios and Risks - The company's short-term solvency has deteriorated, with both the current ratio and quick ratio falling to 0.5 as of June 30, 2025, indicating increasing financial risk [8][9]. - The asset-liability ratio has risen from 48.5% at the end of 2022 to 73.3% by mid-2024, reflecting a growing reliance on debt [8][9]. - Jinsheng New Energy's net cash flow from operating activities has been negative for three consecutive years, primarily due to increased trade receivables following business expansion [9].

Company Overview - Guangdong Jinsing New Energy Co., Ltd. (Jinsing New Energy) has submitted a listing application to the Hong Kong Stock Exchange, with China International Capital Corporation and China Merchants Bank International as joint sponsors [1] - Jinsing New Energy is a leading provider of lithium battery recycling and regeneration solutions globally, focusing on a circular and clean future [3] Market Position - According to a report by Frost & Sullivan, Jinsing New Energy is the second-largest lithium battery recycling and regeneration company in the world by revenue from regeneration sales in 2024, and the largest third-party lithium battery recycling and regeneration enterprise globally [3] - The company's recycling business covers mainstream battery systems, including ternary lithium batteries and lithium iron phosphate batteries, with products widely used in electric vehicles, energy storage systems, and consumer electronics [3] Industry Growth - The global lithium battery recycling and regeneration solutions market is expected to grow rapidly, reaching a processing scale of 20.6 million tons by 2031, with a compound annual growth rate (CAGR) of 48.1% starting from 2024 [3] - Key growth drivers include the upcoming wave of lithium battery retirements, China's leading position in lithium batteries, and the increasing importance of lithium battery recycling in achieving global carbon reduction goals [3] Production Capacity - Jinsing New Energy has established three production facilities in Zhaoqing, Guangdong Province, and Yichun and Ganzhou in Jiangxi Province, providing comprehensive production capacity to meet the upcoming lithium battery retirement wave [4] - In 2024, the company's lithium battery recycling capacity and the production capacity of regenerated products will rank second in the world [4] Financial Performance - The company's revenue for the fiscal years ending June 30 for 2022, 2023, 2024, and the first half of 2025 were approximately RMB 2.905 billion, RMB 2.891 billion, RMB 2.157 billion, and RMB 937 million, respectively [4][6] - The net profit/loss for the same periods were approximately RMB 151 million, -RMB 471 million, -RMB 344 million, and -RMB 144 million, respectively [4][6]

Core Viewpoint - Guangdong Jinseng New Energy Co., Ltd. (Jinseng New Energy) has submitted a listing application to the Hong Kong Stock Exchange, with CICC and CMB International as joint sponsors. This follows a previous application submitted on December 20, 2024 [1]. Company Overview - Jinseng New Energy is a leading global provider of lithium battery recycling and regeneration solutions, aiming for a circular and clean future. According to a report by Frost & Sullivan, it ranks as the second-largest lithium battery recycling and regeneration company globally by revenue in 2024, and the largest third-party lithium battery recycling and regeneration enterprise [3]. Business Model - The company's recycling business covers mainstream battery systems, including ternary lithium batteries and lithium iron phosphate batteries. Its products are widely used in electric vehicles, energy storage systems, and consumer electronics, forming a comprehensive and vertically integrated business model with a complete industrial chain [3]. Market Growth - The global market for lithium battery recycling and regeneration solutions is expected to grow rapidly, reaching a processing scale of 20.6 million tons by 2031, with a compound annual growth rate (CAGR) of 48.1% starting from 2024. Key growth drivers include the upcoming wave of lithium battery retirements, China's leading position in lithium batteries, and the increasing importance of battery recycling in achieving global carbon reduction goals [3]. Production Capacity - Jinseng New Energy has established three production facilities in Zhaoqing, Guangdong Province, and Yichun and Ganzhou in Jiangxi Province, to prepare for the impending wave of lithium battery retirements. In 2024, the company's lithium battery recycling capacity and the production capacity of regenerated products will rank second in the world [4]. Financial Performance - The company's revenue for the fiscal years ending December 31 for 2022, 2023, and the six months ending June 30 for 2024 and 2025 were approximately RMB 2.905 billion, RMB 2.891 billion, RMB 2.157 billion, and RMB 937 million, respectively. The net profit/loss for the same periods were approximately RMB 151 million, -RMB 471 million, -RMB 344 million, and -RMB 144 million, respectively [4][6].