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]

Core Viewpoint - Despite achieving revenue of approximately 33.2 billion yuan and a net profit of about 1.02 billion yuan in 2024, the company faces investor concerns regarding its focus on ternary materials in a market where lithium iron phosphate (LFP) materials dominate with over 70% market share [2][3]. Financial Performance - In 2024, the company reported revenue of approximately 33.2 billion yuan, a year-on-year increase of 8.75%, and a net profit attributable to shareholders of about 1.02 billion yuan, up 9.19% [3]. - The net cash flow from operating activities reached 3.055 billion yuan, growing by 41.14%, and the overall gross margin improved by 3.05% to 15.29% [3]. - The fourth quarter net profit was lower than the previous three quarters, primarily due to a decline in the value of shares held in the Korean company ECOPRO MAT [3]. Business Segments - The company operates two main businesses: new energy materials manufacturing and urban mining [5]. - In the new energy materials sector, the sales scale accounted for 77.59% of total sales, with revenue from this segment reaching 25.76 billion yuan, a 10.24% increase year-on-year [6]. - The urban mining business generated revenue of 7.44 billion yuan, reflecting a 3.87% growth [6]. Ternary Battery Market Outlook - The company remains optimistic about the growth of ternary batteries globally, anticipating a balanced market share between LFP and ternary batteries by 2030 [2][9]. - The demand for ternary materials and precursors is projected to reach 3.4 million tons and 3.51 million tons, respectively, by 2030, with a compound annual growth rate (CAGR) of 24% for ternary precursor shipments [9]. Nickel Resource Strategy - The company produced 51,600 tons of nickel in 2024, a 91% increase, and established a nickel resource capacity of 150,000 tons per year [10]. - Nickel business revenue reached 5.848 billion yuan, a significant increase of 143.47%, contributing 17.61% to total revenue [10]. Urban Mining and Recycling - The urban mining segment includes the recovery of key mineral resources and electronic waste, with significant growth in the recycling of retired batteries and scrap vehicles [15]. - The company reported a 31% increase in the recycling of retired batteries, reaching 35,930 tons, and a 133% increase in the recycling of scrap vehicles, totaling 280,000 tons [15]. Electronic Waste Business - The electronic waste recycling business showed poor performance with a gross margin of -7.46%, and revenue decreased by 50.73% [16]. - The company plans to divest its electronic waste business and collaborate with state-owned enterprises for restructuring [16].

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]