New Stock News | GEM Rushes to the Hong Kong Stock Exchange to Become a Leader in the Global New Energy Materials Manufacturing Industry

According to the Hong Kong Stock Exchange's disclosure on September 22, Zhitong Finance APP learned that GEM Co., Ltd. (abbreviated as GEM) has submitted a listing application to the main board of the Hong Kong Stock Exchange, with JP Morgan, CITIC Securities, and CITIC Construction Investment International as its joint sponsors. GEM (002340.SZ) is already listed on the Shenzhen Stock Exchange.

The prospectus shows that GEM is a leader in the recycling of critical metal resources and the lithium-ion battery recycling industry, as well as a leading enterprise in the global new energy materials manufacturing industry. Since its establishment in 2001, the company has formed a comprehensive business operation model around the circular economy of its business, covering three core areas: critical metal resources, lithium-ion battery and end-of-life vehicle recycling, and new energy materials.

In the field of critical metal resources, leveraging its technological advantages, GEM engages in the recycling and utilization of critical metal resources (including nickel, cobalt, tungsten, lithium, germanium, titanium, copper, manganese, gold, silver, and platinum). According to Frost & Sullivan, based on the recycling volume in 2024, the company's recycling volume of nickel, cobalt, and tungsten ranks first in China. The company is one of the industry pioneers in developing nickel, cobalt, and tungsten smelting technology and applying hydrometallurgical technology to produce MHP and other related intermediates, and has developed the world's largest high-pressure autoclave for laterite nickel ore, with MHP quality reaching industry-leading levels. The company has partnered with industry partners to lead the establishment of a production base in Indonesia, with an annual MHP production capacity of 150,000 tons. Based on the MHP equity output in 2024, the company ranks among the top three globally.

In the field of lithium-ion battery and end-of-life vehicle recycling, GEM procures retired lithium-ion batteries from third parties and also recycles lithium-ion batteries from end-of-life electric vehicles (EVs). Some of these batteries are reused through cascading utilization, while the remaining batteries are dismantled and processed to produce metal intermediates used in battery manufacturing, such as black powder, lithium phosphate, iron phosphate, and lithium carbonate.

In addition, the company also recycles end-of-life vehicles (including electric and fuel vehicles), dismantling the vehicle bodies and recovering the metal resources within. Currently, the company has established partnerships with over 1,000 automotive companies and battery manufacturers worldwide and has set up six subsidiaries for lithium-ion battery recycling in China, all of which are included in the whitelist of the Ministry of Industry and Information Technology (MIIT) of China. According to Frost & Sullivan, based on the recycling volume in 2024, GEM ranks first in the domestic market for third-party retired lithium-ion battery recycling.

In the field of new energy materials, relying on its advanced manufacturing technology and stable relationships with leading companies in the global new energy materials industry, GEM's supplied products mainly include ternary precursors and cathode materials for lithium-ion batteries, as well as cobalt tetroxide for 3C batteries. Currently, GEM has established long-term stable cooperative relationships with nine of the top ten lithium-ion battery companies globally According to Frost & Sullivan data, based on shipment volume in 2024, GEM ranks second globally in the field of ternary precursors and cobalt tetroxide. In addition, with the capabilities formed by the production of nickel-cobalt hydroxide (MHP), key metal resource recycling, and lithium-ion battery recycling, the company has the ability to achieve self-sufficiency in some key raw materials required for the production of new energy materials.

In terms of finance, for the fiscal years 2022, 2023, 2024, and the six months ending June 30, 2025, the company achieved revenues of RMB 29.392 billion, RMB 30.529 billion, RMB 33.2 billion, and RMB 17.561 billion, respectively; during the same period, the profits were approximately RMB 1.332 billion, RMB 1.162 billion, RMB 1.328 billion, and RMB 843 million, respectively.