New Stock News | Jinsheng New Energy Submits Listing Application to Hong Kong Stock Exchange, Becoming the World's Second Largest Lithium Battery Recycling and Regeneration Company

According to the disclosure by the Hong Kong Stock Exchange on May 18, Guangdong Jinsheng New Energy Co., Ltd. (referred to as Jinsheng New Energy) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and CMB International as its joint sponsors. The company first submitted its application to the Hong Kong Stock Exchange on December 20, 2024, but the application subsequently lapsed. After submitting the application for the second time on September 3, 2025, the company quickly updated the application documents on September 17. Company Profile The prospectus shows that Jinsheng New Energy is a lithium battery recycling and reuse company, dedicated to exploring a circular and clean future world. According to a Frost & Sullivan report, based on 2025 revenue from recycled products, Jinsheng New Energy is the world's second-largest lithium battery recycling and reuse company, as well as the world's largest third-party lithium battery recycling and reuse company. As one of the earliest companies in mainland China to engage in lithium battery recycling, since 2014, Jinsheng New Energy has built an integrated ecological system for lithium battery recycling, including: "Full-element" recycling: capable of recovering all valuable materials from retired lithium batteries, such as lithium, nickel, cobalt, manganese, and iron; "Full-component" reuse: capable of recovering cathode and anode materials from batteries; and "Full-system" layout: has established comprehensive end-to-end production capabilities, covering the dismantling and crushing of retired batteries, as well as the production of lithium battery cathode and anode materials. Jinsheng New Energy's recycling business covers mainstream battery systems such as ternary lithium batteries and lithium iron phosphate batteries. The company's products are widely used downstream in applications such as electric vehicles, energy storage systems, and consumer electronics, forming a comprehensive and vertically integrated business model with an integrated industrial chain. Jinsheng New Energy focuses on the recycling and reuse of lithium batteries, providing a range of recycled products, mainly including lithium carbonate, nickel sulfate, and cobalt sulfate. As of the year ended December 31, 2025, sales of recycled lithium, nickel, and cobalt products accounted for approximately 88.7% of total revenue, with lithium, nickel, and cobalt recycled products accounting for 44.8%, 24.4%, and 19.4% respectively. The table below shows the revenue details by product type for the period shown: Lithium battery recycling links downstream lithium battery applications with upstream battery material production, forming a circular economy model within the lithium battery industry. Jinsheng New Energy has three production facilities in Zhaoqing, Guangdong Province, Yichun, and Ganzhou, Jiangxi Province, to obtain comprehensive production capacity to meet the upcoming wave of retired lithium batteries. According to a Frost & Sullivan report, in 2025, the company's capacity for recycled lithium batteries and the production capacity of recycled products produced through recycled lithium batteries ranked third in the world. Financial Information Revenue: For the years ending 2023, 2024, and 2025, the company's revenue was approximately RMB 2.892 billion, RMB 2.157 billion, and RMB 2.202 billion respectively. Annual losses: For the years ending 2023, 2024, and 2025, the company reported annual losses of approximately RMB 471 million, RMB 344 million, and RMB 166 million respectively. Gross losses: For the years ending 2023, 2024, and 2025, the company reported gross losses of approximately RMB 158 million, RMB 88 million, and RMB 155 million respectively. Industry Overview In recent years, as the electric vehicle industry in mainland China has rapidly developed and consumer electronics products have been updated more quickly, the supply of retired lithium batteries has significantly increased. The total amount of retired lithium batteries in mainland China increased from 212,100 tons in 2021 to 528,900 tons in 2025, with a compound annual growth rate of 25.7%. Specifically, the quantity of retired consumer batteries increased from 75,700 tons in 2021 to 179,200 tons in 2025, with a compound annual growth rate of 24.0%; and the quantity of retired power batteries increased from 136,300 tons in 2021 to 349,300 tons in 2025, with a compound annual growth rate of 26.5%. The total amount of retired lithium batteries in mainland China is expected to reach 5.1 million tons by 2031, with a compound annual growth rate of 46.0% from 2025 to 2031. In terms of retired lithium batteries, the quantity of retired consumer batteries, power batteries, and energy storage batteries are expected to be 301,800 tons, 4.8 million tons, and 35,800 tons respectively, with compound annual growth rates of 9.1%, 54.6%, and 111.5% from 2025 to 2031. The quantity of retired lithium iron phosphate batteries increased from 88,700 tons in 2021 to 143,900 tons in 2025, with a compound annual growth rate of 12.9%. The quantity of retired ternary lithium batteries increased from 44,500 tons in 2021 to 211,600 tons in 2025, with a compound annual growth rate of 47.7%. With the rapid development of electric vehicles and energy storage, the quantities of retired lithium iron phosphate batteries, retired ternary lithium batteries, and other types of retired batteries are expected to be 3.9 million tons, 0.9 million tons, and 0.3 million tons respectively, with compound annual growth rates of 73.5%, 27.0%, and 9.4% from 2025 to 2031. Due to differences in raw material costs and production processes, the price of ternary batteries is higher than that of lithium iron phosphate batteries. In 2025, the average prices of lithium iron phosphate batteries and ternary batteries are approximately RMB 300-400/kWh and RMB 420-500/kWh respectively. Board of Directors Information The board of directors consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors. Directors serve a term of three years and are eligible for re-selection upon the expiration of their term. Shareholding Structure As of the last practicable date, the Li brothers (Mr. Li Sen, Mr. Li Xin, Mr. Li Yao, Mr. Li Yan, and Mr. Li Wang) hold a total of 21.53% of the issued and outstanding shares of Jinsheng New Energy through (i) Jiangxi Dongliang (a company in which the Li brothers each hold a 20.0% interest), 5.37% through Zhaoqing Shengda (a limited partnership enterprise established under Chinese law, with Mr. Li Sen as its general partner), 2.44% through Zhaoqing Senlong (a limited partnership enterprise established under Chinese law, with Mr. Li Sen as its general partner), and a direct beneficial ownership held by the Li brothers (totaling 26.35% of the issued and outstanding shares of Jinsheng New Energy), giving them control of approximately 55.69% of the voting rights of the company. The Li brothers entered into a joint action agreement with Jiangxi Dongliang on July 22, 2021 (supplemented by a supplementary joint action agreement confirmation letter dated November 16, 2024). The Li brothers, Jiangxi Dongliang, Zhaoqing Shengda, and Zhaoqing Senlong collectively form and will continue to form a controlling group of shareholders of the company as of the last practicable date. Ms. Lai Meifeng, Ms. Zheng Meiqing, Ms. Ye Guilian, Ms. Wang Ying, and Ms. Liu Qiong are spouses of Mr. Li Sen, Mr. Li Xin, Mr. Li Yao, Mr. Li Yan, and Mr. Li Wang respectively. Intermediary Team Joint Sponsors: CICC and CMB International Financing Company's Legal Counsel: Han Kun Law Firm and Zhong Lun Law Firm Legal Counsel for Joint Sponsors: King & Wood Mallesons Independent Auditor and Reporting Accountant: Ernst & Young Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch Compliance Consultant: Howden Financing Limited