Guangdong Jinsheng New Energy Co., Ltd. (hereinafter referred to as "Jinsheng New Energy") has recently resubmitted its listing application materials, launching another assault on a Hong Kong IPO. In fact, before this latest attempt at the Hong Kong Stock Exchange, this lithium battery recycling and regeneration unicorn enterprise founded by the five Li brothers had previously sought listings on both A-shares and Hong Kong stocks, but ultimately failed to achieve their goal. Behind this "persistent" pursuit of listing, Jinsheng New Energy appears to be facing relatively urgent financing needs.

**No Profitability in First Half of Year**

According to the prospectus, Jinsheng New Energy is a lithium battery recycling and regeneration solution provider, offering a series of regeneration products mainly including lithium carbonate, nickel sulfate, and cobalt sulfate. The company's products are widely used downstream in mainstream lithium battery applications such as electric vehicles, energy storage systems, and consumer electronics, forming a comprehensive and vertically integrated business model with a complete industrial closed loop.

According to a report by consulting firm Frost & Sullivan, based on regeneration sales revenue in 2024, Jinsheng New Energy is the world's second-largest lithium battery recycling and regeneration enterprise, and also the world's largest third-party lithium battery recycling and regeneration company.

Jinsheng New Energy's recent financial performance has been less than optimistic. From 2022 to 2024, the company achieved revenues of approximately 2.905 billion yuan, 2.892 billion yuan, and 2.157 billion yuan respectively, showing consecutive declines. Corresponding annual profits were 151 million yuan, -471 million yuan, and -344 million yuan respectively.

Entering the first half of 2025, the company still failed to achieve profitability. It generated revenue of approximately 937 million yuan, down from 995 million yuan in the same period last year. The corresponding period profit was -144 million yuan, compared to -143 million yuan in the same period last year. By calculation, the company accumulated losses of approximately 959 million yuan during 2023, 2024, and the first half of 2025.

"Losses are not a substantial obstacle for companies attempting IPOs. The Hong Kong Stock Exchange focuses more on loss-making companies' technical barriers and market prospects," said Zhi Peiyuan, Vice Chairman of the Listed Company Investment Professional Committee of the China Investment Association.

While experiencing consecutive net losses, Jinsheng New Energy currently bears significant financial pressure. Specifically, as of June 30, 2025, the company's interest-bearing bank borrowings and other borrowings totaled 2.1 billion yuan, with bank and other loans due within one year or payable on demand amounting to 1.8 billion yuan. In the prospectus, Jinsheng New Energy frankly stated that the company has consistently relied on interest-bearing bank borrowings and other borrowings to fund part of its capital expenditures and support operations, and expects this dependence to continue in the future.

Regarding asset-liability ratios, at the end of 2022, 2023, and 2024, the company's asset-liability ratios were approximately 48.5%, 61.6%, and 74.8% respectively, showing significant year-on-year growth. At the end of the first half of 2025, the company's asset-liability ratio was 73.3%, a slight decrease of 1.5 percentage points from the end of 2024.

Additionally, the prospectus shows that during the reporting period, sales to the company's top five customers accounted for approximately 52.7%, 41.3%, 53.9%, and 67.3% respectively, with sales to the largest customer accounting for approximately 13.9%, 18.4%, 26.6%, and 45.2% respectively.

**Latest Valuation Exceeds 10 Billion Yuan**

In fact, this Hong Kong IPO launch is not Jinsheng New Energy's first attempt at the capital markets.

According to CICC's official website, the company initiated listing guidance in 2022, intending to list on the Shenzhen Stock Exchange, but terminated that listing guidance in August 2024, citing "market reasons and its own strategic considerations, intending to adjust listing plans." After terminating the previous A-share listing guidance, Jinsheng New Energy quickly turned its attention to the Hong Kong stock market, first submitting to the Hong Kong Stock Exchange on December 20, 2024. However, the company's listing application materials ultimately expired.

Jinsheng New Energy reportedly holds a certain market position in the lithium battery recycling and regeneration field. According to the Frost & Sullivan report, based on 2024 regeneration sales revenue, the company is the world's second-largest lithium battery recycling and regeneration enterprise, and also the world's largest third-party lithium battery recycling and regeneration company.

From Jinsheng New Energy's enterprise valuation perspective, according to the 2025 Hurun Global Unicorn List, the company ranked 1,183rd with an enterprise valuation of 7.3 billion yuan.

In terms of financing, Jinsheng New Energy has completed five investment rounds. From completing Series A financing in 2021 to share subscription in May 2025, it raised 130 million yuan, 300 million yuan, 610 million yuan, 321 million yuan, and 148 million yuan respectively, totaling 1.508 billion yuan in financing.

However, it should be noted that according to the latest financing information disclosed in the company's prospectus, in May 2025, Jiangxi Dongliang agreed to subscribe for 5.363 million company shares for 148 million yuan. At that time, the company's pre-investment valuation was approximately 10.2 billion yuan, exceeding the enterprise valuation listed in the 2025 Hurun Global Unicorn List by nearly 3 billion yuan.

Regarding control, Jinsheng New Energy was co-founded by the five Li brothers - Li Sen, Li Xin, Li Yao, Li Yan, and Li Wang. Currently, Li Sen serves as executive director, chairman, and general manager, Li Xin as executive director and vice chairman, and Li Yao as deputy general manager. Before the IPO, according to the unanimous action agreement, the Li brothers and Jiangxi Dongliang have the right to control approximately 47.87% of the company's total voting rights. Additionally, Li Sen is the general partner of Zhaoqing Shengda and Zhaoqing Senlong, controlling approximately 7.82% of the company's voting rights held through Zhaoqing Shengda and Zhaoqing Senlong. The five Li brothers collectively control approximately 55.69% of the company's voting rights.