New Stock News | GEM Co., Ltd. (002340.SZ) submits application again to Hong Kong Stock Exchange, ranking first in China in nickel, cobalt, and tungsten resource recycling volume.

According to the disclosure on April 27 by the Hong Kong Stock Exchange, GEM Co., Ltd. (referred to as GEM Co., Ltd., 002340.SZ) has once again submitted its listing application to the Hong Kong Stock Exchange, with J.P. Morgan, CITIC SEC, and China Securities Co., Ltd. International serving as its joint sponsors. Company Overview According to the prospectus, the company is one of the pioneers in the key metal resource recycling and lithium-ion battery recycling industries, and holds a leading position in the new energy material manufacturing industry. The company adopts a commercial model of mining urban mines to eliminate pollution, rejuvenate resources, curb global greenhouse effects, promote carbon reduction and carbon neutrality, adhere to the concept of green development, and drive global green transformation. Since its establishment in 2001, the company has developed a comprehensive business operation model covering the following three core businesses: Key Metal Resources: Leveraging technological advantages, the company is engaged in the recovery and utilization of key metal resources. The company's revenue mainly comes from the sale of nickel, cobalt, and tungsten products widely used in battery and alloy raw materials production. According to Frost & Sullivan data, based on the recovery volume by 2025, the company's nickel, cobalt, and tungsten resource recovery volume ranks first in China. The company is one of the earliest pioneers in developing nickel, cobalt, and tungsten smelting technology and applying wet metallurgical technology to produce mixed hydroxide precipitate (MHP) and other related intermediates. The company started production of MHP and other nickel-based metal products in 2023 and has built the world's largest laterite nickel mine autoclave. The company has partnered with industrial partners to lead the establishment of production bases in Indonesia, with an annual MHP production capacity of 150,000 tons. Based on the 2025 MHP equity production volume, the company ranks in the top three globally. Lithium-ion Battery and Scrap Car Recycling: The company recycles batteries from third parties and scrapped electric vehicles (electric cars) and generates income through the sale of (i) reused batteries; (ii) metal intermediates used in battery production (such as black powder, lithium phosphate, iron phosphate, and lithium carbonate). The company also generates income by selling metal products recycled from scrapped cars (such as steel, aluminum, and copper). Currently, the company has established partnerships with over 1,100 global automotive companies and battery manufacturers, and has set up six lithium-ion battery recycling subsidiaries in China, all of which are included in the Ministry of Industry and Information Technology's... Financial Data Revenue In 2023, 2024, and 2025, the company's revenue was approximately RMB 30.529 billion, RMB 33.2 billion, and RMB 37.124 billion, respectively. Profit In 2023, 2024, and 2025, the company's annual profit was approximately RMB 1.162 billion, RMB 1.328 billion, and RMB 1.722 billion, respectively. Gross Margin In 2023, 2024, and 2025, the company's gross margins were 12.2%, 15.3%, and 14.7%, respectively. Industry Overview The demand for key new energy metals is growing continuously with the expansion of new energy applications. According to Frost & Sullivan data, China's nickel demand is expected to increase from 354,600 tons of metal in 2026 to 1,296,100 tons of metal in 2031, with recycled nickel accounting for 32.1% of total demand. China's cobalt demand is expected to increase from 112,900 tons of metal in 2026 to 371,700 tons of metal in 2031, with recycled cobalt accounting for 36.5% of total demand. China's tungsten demand is expected to increase from 117,300 tons of metal in 2026 to 160,100 tons of metal in 2031, with recycled tungsten accounting for 42.0% of total supply by 2031. The recycling and utilization of key metals will become increasingly important under the dual promotion of environmental protection policies and resource security policies. The rapid development of the electric vehicle and 3C electronics industries has driven the continuous growth in the use of lithium-ion batteries, leading to an increasing number of retired lithium-ion batteries and creating huge opportunities for the recycling business. According to Frost & Sullivan data, the number of retired electric vehicle batteries in China is expected to grow at a compound annual growth rate of 53.6% from 2026 to 2031. By 2031, around 15% of the nickel, cobalt, and lithium needed for new electric vehicle battery production will be supplied through recycling. According to Frost & Sullivan data, the shipment volume of lithium-ion battery positive electrode materials is expected to increase from 7.2802 million tons in 2026 to 20.7769 million tons in 2031, with a compound annual growth rate of 23.3% from 2026 to 2031. The shipment volume of ternary precursor materials is expected to increase from 996.2 thousand tons in 2026 to 3,472.2 thousand tons in 2031, with a compound annual growth rate of 28.4% from 2026 to 2031. The penetration rate of high-nickel ternary precursor materials is expected to significantly increase in the coming years due to the demand for long-range electric vehicles, as well as new demand for high-nickel high-voltage products from low-altitude aircraft and humanoid Siasun Robot & Automation. Demand for cobalt oxide is expected to steadily increase, with a shipment volume of 200.6 thousand tons expected by 2031, with a compound annual growth rate of 8.7% from 2026 to 2031. In the future, the development of ternary precursor materials and cobalt oxide will be driven by their core downstream industries (including electric vehicles and 3C electronics) and emerging applications such as low-altitude aircraft and humanoid Siasun Robot & Automation. Board of Directors Information The board of directors consists of seven directors, including four executive directors and three independent non-executive directors. All directors are elected by the shareholders' meeting for a term of three years, and may be re-elected. According to relevant Chinese laws and regulations, the tenure of independent non-executive directors cannot exceed six years. Equity Structure After compilation, Mr. Xu, Ms. Wang, Shenzhen Huifengyuan, and Fengcheng Xinyuanxing form a single largest shareholder group. Intermediary Team Joint Sponsors: J.P. Morgan Securities (Far East) Limited, CITIC SEC (Hong Kong) Limited, China Securities Co., Ltd. (International) Finance Co., Ltd.; Legal Advisors: King & Wood Mallesons, Guangdong Junxin Jinglun Junhou Law Firm, Santoso, Martinus & Muliawan Advocates, Hogan Lovells International; Joint Sponsors and Legal Advisors for Compilation: Junhe LLP, Jingtian & Gongcheng LLP; Independent Auditors and Reporting Accountants: PricewaterhouseCoopers (Hong Kong) Limited; Transfer Pricing Advisor: PricewaterhouseCoopers Tax Consultants Limited Liability Company, Shenzhen Branch; Industry Consultants: Frost & Sullivan Consulting (Beijing) Co., Ltd., Shanghai Branch.