Wednesday, December 6, 2023

Ten billion unicorns reappear, and Zhaoqing, Guangdong has an IPO!-Guangdong Jinsheng New Energy

Ten billion unicorns reappear, and Zhaoqing, Guangdong has an IPO!

Xingyanjun IPO Foreword 2023-02-17 15:00 Published in Guangdong

Source: Intercontinental Battery Circle, Elephant IPO

Guangdong Jinsheng New Energy Co., Ltd., which recently started manufacturing non-ferrous metal raw materials, has attracted the attention of many investment institutions in the industry. Within three months, Jinsheng New Energy completed two rounds of financing worth hundreds of millions of yuan, with a valuation as high as 12 billion yuan.

Five brothers recycle old batteries

Founded in December 2010, Jinsheng Xinneng is China's leading lithium battery recycling solutions provider. The company focuses on the comprehensive recycling of decommissioned lithium batteries.

This is a company without a controlling shareholder. Tianyancha shows that the five brothers of the Li family in Guangdong, Li Sen, Li Xin, Li Yan, Li Wang, and Li Yao, each hold 20% of the company's shares. According to the listing guidance filing announcement, the largest shareholder of Jinsheng Xinneng is Jiangxi Dongliang Investment Holding Co., Ltd., which holds 20.93% of the voting rights of Jinsheng Xinneng. The company is still equally held by five brothers.

The five brothers started their entrepreneurial journey 17 years ago. In 2005, five brothers founded Gaoyao Gold Industry Metal Development Co., Ltd. in Zhaoqing, Guangdong, mainly engaged in the smelting and rolling processing industry of non-ferrous metals. In just 5 years, the five brothers turned this small business with only 20 or 30 people in its early days into a company. The company has developed into the number one private brand in the non-ferrous metal raw material manufacturing industry.

As the scale grew, in 2010, five brothers founded Zhaoqing Jinsheng Metal Industrial Co., Ltd., which was the predecessor of Jinsheng Xinneng.

In January 2022, "Zhaoqing Jinsheng Metal Industrial Co., Ltd." officially changed its name to "Guangdong Jinsheng New Energy Co., Ltd."

The company's core business is the harmless treatment and resource utilization of retired lithium batteries, including cascade utilization and recycling, which is a key link in the lithium battery cycle. Its main products include battery-grade cobalt sulfate, nickel sulfate, manganese sulfate, lithium carbonate, etc. Lithium battery materials have been extended to battery products and have successfully entered the global mainstream battery manufacturer supply chain system. The company always takes innovation as its core, continues to increase investment in research and development, and is committed to becoming the most valuable comprehensive recycling enterprise in the global new energy industry and contributing sustained value to "carbon neutrality and carbon peaking".

Jinsheng New Energy turns waste into treasure through harmless treatment and resource utilization of retired lithium batteries, realizes the recycling of retired lithium batteries, and creates an industrial closed loop of lithium batteries. On the one hand, it effectively reduces the environmental pollution of retired lithium batteries. On the other hand, the economic value of retired lithium batteries is refined to achieve a high degree of social and economic benefits.

It is worth mentioning that Jinsheng New Energy is one of the whitelist companies for the recycling of used power batteries by the Ministry of Industry and Information Technology. In September 2018, December 2020 and December 2021, the Ministry of Industry and Information Technology released three batches of lists of companies that meet the "Industry Standards for Comprehensive Utilization of New Energy Vehicle Waste Power Batteries", and only 47 companies entered the white list.

In the 2021 white list, Jiangxi Ruida New Energy Technology Co., Ltd., the Jiangxi base of Jinsheng New Energy, was successfully selected and was approved for comprehensive recycling qualifications of 124,000 tons/year, ranking first in the country.

Valuation: 12 billion yuan

Up to now, Jinsheng New Energy has completed four rounds of financing. In the nearly three months before starting the listing guidance filing, Jinsheng New Energy completed the latest two rounds of financing.

In August this year, Jinsheng New Energy completed the B round of financing, led by Fosun Ruizheng, with participation from Guotiao Zhanxin Fund, GAC Capital and other institutions. Original shareholders CICC Capital and National Venture Capital continued to invest, with the investment amount reaching Hundreds of millions of dollars. In November, Jinsheng New Energy announced the completion of hundreds of millions of yuan in Series B+ financing, jointly led by Dachen and Cornerstone Capital. Bosch, Shaanxi Automobile, Guotiao Zhanxin, Guangdong Industrial Development Fund, Small and Medium Enterprises Guozhong Fund, and Bosera Fund Wait for institutions to follow suit.

In July 2021, Jinsheng New Energy announced the completion of Series A financing supported by China Electronics CICC, Guangdong Ruoque, National Venture Capital, and Gaotai Yuntian; in December 2020, Jinsheng New Energy completed the Pre-A round of financing. Invested by Jiangxi Dongliang Investment Holding Co., Ltd.

Ten billion unicorns reappear, and Zhaoqing, Guangdong has an IPO!-Guangdong Jinsheng New Energy

Data source: Tianyancha

Financing has been smooth along the way, and the valuation of Jinsheng New Energy has been rising. According to reports, Jinsheng Xinneng’s current primary market valuation has reached 12 billion yuan, making it a unicorn in the lithium battery recycling industry.

Today, this unicorn has launched listing guidance and is making continuous progress towards its goal of listing.

The market continues to be "frenetic"

Since 2022, the price of power battery raw materials has continued to rise. In December 2022, the price of lithium carbonate was as high as 570,997 yuan/ton, a year-on-year increase of more than 115%. Battery costs remain high, industry chain profits are gradually concentrated upstream, and more and more companies are entering the battery recycling track.

Data shows that there are currently 40,600 power battery recycling-related companies in my country. The mainstream domestic recycling companies with lithium extraction capacity include GEM, Bump Cycle, Ganfeng Cycle, Huayou Cycle, Hunan Guanghua, Tianqi Jintige, and Chizhou Xi'an, Jiangxi Ruida, Guanghua Technology (002741.SZ) and other companies.

According to the chief engineer of the Solid Waste and Chemical Management Technology Center of the Ministry of Ecology and Environment, a total of 1.47 million tons of battery recycling production capacity has been approved in China. According to information on the official website of Jinsheng New Energy, it can achieve a production capacity of 100,000 tons of lithium-ion battery materials and has the qualifications to process 204,000 tons of used lithium batteries, which is approximately 14% of the approved production capacity.

Zhongtai Securities believes that the theoretical number of retired power batteries in 2025 is expected to be approximately 428,000 tons, and will reach 3.001 million tons in 2030. Calculated based on the single-ton recycling income of various types of batteries, the corresponding market space is 148.533 billion yuan.

In terms of policy, in January 2022, eight departments including the Ministry of Industry and Information Technology issued the "Implementation Plan for Accelerating the Comprehensive Utilization of Industrial Resources" to improve the recycling system of used power batteries; in August, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology and Environment jointly issued the "Carbon Reduction in the Industrial Sector" "Dafeng Implementation Plan" clearly "promotes the construction of a recycling system for new energy vehicle power batteries."

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