Core Viewpoint - Ningbo Likun Resource Technology Co., Ltd. (hereinafter referred to as "Likun Resources" or "the Company") is planning to go public on the Shenzhen Stock Exchange, with CICC as the sponsor. The Company has shown steady revenue growth due to increasing nickel product production and strong market demand, although net profit has experienced fluctuations. The reliance on Indonesian partners for raw materials and the rapid growth of inventory pose potential risks to the Company's performance [2][3][6]. Group 1: Business Overview - Likun Resources was established in 2009 and is headquartered in Ningbo, Zhejiang. The Company started with nickel ore and nickel pig iron trading and has expanded into a vertically integrated business covering nickel product trading, production, and sales [3]. - The Company acquired production capabilities after purchasing Huiran Industrial in 2017 and has since developed wet and pyrometallurgical projects in Indonesia, becoming the first domestic service provider to extend its product service system from trading to production in the nickel industry [3][5]. - From 2022 to the first half of 2025, the Company's revenue figures were 18.319 billion yuan, 21.286 billion yuan, 29.846 billion yuan, and 18.497 billion yuan, with net profits of 1.73 billion yuan, 1.05 billion yuan, 1.768 billion yuan, and 1.428 billion yuan respectively [3][5]. Group 2: Market Position and Performance - In the first half of 2025, the revenue from nickel product trading was 7.822 billion yuan, accounting for 44.73% of total revenue, while nickel product production revenue was 9.666 billion yuan, making up 55.27% [5]. - According to a report by Zrinsight, Likun Resources is projected to be the largest nickel product trader globally in 2024, capturing 10.4% of the global nickel product market demand, and is the largest nickel ore supplier in China with a market share of approximately 35.8% [5]. - As of the end of 2024, Likun Resources ranks second in the global market share for stable operations using HPAL technology in wet metallurgy projects, with a market share of 19.7%, and 25.1% in Indonesia [5]. Group 3: Supply Chain and Inventory Risks - Likun Resources relies heavily on Indonesian partners for its raw material supply, with the proportion of nickel ore purchased from these partners being 54.52%, 70.51%, 64.32%, and 58.89% from 2022 to the first half of 2025 [6]. - The Company has long-term supply agreements with Indonesian partners to ensure stable access to nickel ore, but uncertainties such as partner production halts or regulatory changes could disrupt supply [6]. - The Company's inventory has been growing rapidly, with values of 1.151 billion yuan, 2.189 billion yuan, 3.369 billion yuan, and 4.396 billion yuan from the end of 2022 to June 2025, representing a rising proportion of current assets [9].

Core Viewpoint - In 2024, despite fluctuations in nickel prices, Ningbo Likin Resources Technology Co., Ltd. (referred to as "the company") achieved significant growth, with operating income reaching RMB 29.23 billion, a year-on-year increase of 38.8%, and a net profit attributable to shareholders of RMB 1.77 billion, up 68.7% [1] Group 1: Production and Financial Performance - The company achieved growth in both revenue and net profit in 2024, driven by an integrated upstream and downstream resource layout and breakthroughs in key processes and technologies [2] - The company's production capacity for nickel products is entering a phase of accelerated release, indicating potential for sustained growth in performance [4] Group 2: Supply Chain and Strategic Partnerships - The company has established a comprehensive industrial chain layout from resource acquisition to sales, showcasing advantages in cost, technology, products, and ESG [3] - The company deepened cooperation with major nickel resource suppliers in Indonesia and the Philippines, enhancing supply chain stability and risk resistance [3] - Long-term cooperation agreements with leading downstream companies in the battery sector have been established, ensuring stable nickel supply for the company's trading business [3] Group 3: Market Trends and New Applications - Nickel is a key component in various battery systems, and the rise of new applications, such as solid-state batteries and intelligent robots, is expected to create significant demand for nickel [5][6] - The demand for nickel in the stainless steel market is projected to grow, supported by policies promoting equipment upgrades and the recycling of consumer goods [9][10] - The company is positioned to benefit from the increasing demand for nickel in new energy and high-end manufacturing sectors, as traditional demand shifts [11]