Shenzhen, January 31 2026 — GEM convened the 2026 Annual Strategy Seminar on Incremental Growth, Quality Improvement, and Efficiency Enhancement at its new headquarters in the Satcom Tower. The conference opened with the majestic national anthem.

Chairman Xu Kaihua, Chairman of GEM, attended the meeting and delivered a keynote speech titled “Compliance and Steadiness, Quality and Efficiency, Building Global Competitiveness.” Members of the Board and senior management, along with heads of subsidiaries and core business departments, gathered to review the journey of 2025, analyze the new landscape of global competition, and envision new opportunities for green development.

Chairman Xu Kaihua systematically deployed the 2026 operational goals, policies, and the “Ten Major Upgrade Projects”, sketching a grand blueprint for GEM’s evolution into a world-class, 100-billion-yuan green industrial corporation.

▲ Scene of GEM’s 2026 Annual Strategy Seminar on Incremental Growth, Quality Improvement, and Efficiency Enhancement.

Reviewing 2025: Crossing Mountains and Seas, Riding the Waves of a Momentous Year!

Chairman Xu Kaihua began with a poignant review of the company’s 25-year entrepreneurial journey. Since its inception, GEM has embraced “Green” and “Recycling” as its mission, overcoming core technical challenges and deepening its commitment to low-carbon circulation. Step by step, GEM has led China’s “Urban Mining” technology and industry to meet world-leading standards, establishing itself as a leader in China’s urban mining sector and a core provider in the global new energy supply chain. Subsequently, Chairman Xu Kaihua summarized the 2025 achievements across nine dimensions.

▲ Chairman Xu Kaihua, Chairman of GEM, delivers the keynote speech titled “Compliance and Steadiness, Quality and Efficiency, Building Global Competitiveness.”

1. Massive Capacity Release and Record Performance

In 2025, the company’s sales revenue grew steadily, reaching an all-time high. The total recovery and extraction of key metals—nickel, cobalt, tungsten, and lithium—saw significant growth. Notably, nickel extraction in Indonesia increased markedly, and the volume of recycled strategic cobalt exceeded five times China’s primary cobalt mining output.

During critical global cobalt embargoes, GEM successfully secured the supply of strategic cobalt, safeguarding China’s new energy development. Tungsten recovery grew substantially, exceeding 10% of China’s primary mining output. Lithium battery recycling and dismantling volumes continued to grow, maintaining an industry-leading position. Total shipments in the new energy business increased, successfully weathering intense industry competition. Core construction projects were fully completed.

Overseas nickel resource projects finished the “three-step symphony” of commissioning, reaching capacity, and stabilizing production on schedule, adding a new chapter to the global nickel industry legend. Intelligent manufacturing upgrade projects across all campuses were completed, significantly boosting labor productivity.

2. Consolidating Market Chains and Opening New Channels

In 2025, the company achieved significant results in upgrading its global market quality. GEM established multi-faceted partnerships, including directional recycling, market cooperation, and resource collaboration, with top-tier global enterprises. These efforts consolidated a premium market chain and supported the global expansion of China’s new energy industry through overseas capacity. Core products made a historic breakthrough into the Japanese market, constructing a “Resources-Materials-Recycling” full-lifecycle value chain for new energy.

3. Expanding Alliances to Enhance Competitiveness

2025 marked the inaugural year of GEM’s era of global alliance cooperation. The company signed agreements with over 100 supply chain partners to form a “Global Expansion Alliance” and co-built the “Resources-Products-Market” first-tier competitiveness alliance with ECOPRO, significantly enhancing the company’s ability to address global industrial challenges.

4. Doubling Innovation to Serve National Competitiveness

In 2025, the company made breakthroughs in a series of key technologies, which have become core technical assets for the nation in global trade competitions. The world’s first 9-series ultra-high nickel core-shell ternary precursor and quaternary medium-nickel high-voltage materials were successfully launched. Ultra-specific energy cathode materials were equipped in advanced batteries, and power battery recycling products achieved large-scale commercialization, effectively solving technical and economic hurdles in low-value component recovery.

5. Strengthening Capital and Expanding the Funding Pool

Critical progress was made in capital operations in 2025. GEM successfully initiated its IPO on the Hong Kong Stock Exchange (HKEX). Overseas green bonds were oversubscribed in the global inter-bank market, and partnerships with major domestic banks were fully upgraded. Strategic investments also yielded favorable returns.

6. Business Upgrade Successfully Concluded

In 2025, the company successfully completed its two-year business structure adjustment strategy. Through deep cooperation with the Henan Circular Industry Group, the optimization and integration of the electronic waste recycling business were achieved, creating a model for state-owned and private enterprise cooperation in China’s circular economy.

Consequently, core business will now focus on three key areas: key metal recycling, lithium power battery recycling, and core manufacturing of new energy materials. Meanwhile, the intelligent equipment remanufacturing business developed rapidly, effectively serving the national equipment renewal strategy and realizing the efficient utilization of idle equipment and materials.

7. Standardized Governance and Investor Returns

In 2025, the company carried out an action plan to improve the quality of the listed company, centered on financial foundations, internal control systems, and investor relations, aiming to return value to investors. In 2025, the stability of the company’s stock price ranked among the top in the new energy industry, and its market capitalization remained firmly within the top 500 of Chinese listed companies. The quality of the company’s information disclosure again received an “A” rating from the Shenzhen Stock Exchange, marking the 12th consecutive year of achieving this distinction.

8. Planting Green, Reducing Pollution, and Cutting Carbon: ESG Excellence Shines Globally

In 2025, the carbon reduction volume of the company’s circular industries increased significantly. The construction of green industrial parks was fully promoted, with the implementation of photovoltaic power generation and ecological wetland projects, leading to a comprehensive increase in green electricity usage and a substantial decrease in unit energy consumption. In-depth pollution reduction actions were carried out, resulting in a continuous decline in pollutant emissions.

Regarding social responsibility, the “Green Recycling, Low-Carbon Life” public welfare activities reached tens of millions of people, embedding the concept of green recycling into households. In Indonesia, the China-Indonesia Cultural Integration Village was constructed, and educational cooperation projects continued to advance. In response to sudden geological disasters at overseas projects, the company organized a thousand-person rescue team that worked day and night, fully demonstrating its international responsibility and commitment.

9. Management Upgrade: New Heights and New Brilliance

In 2025, the company completed a historic management transition. The leadership successfully shifted from being dominated by those born in the 1960s and 1970s to a new, younger, and more internationalized leadership team primarily composed of the post-85s generation, with the post-90s serving as the talent reserve. This new leadership will guide the company through the waves of the new era, serving as the powerful driving force for GEM to meet global industrial challenges and advance toward becoming a world-class green enterprise. On October 1, 2025, the headquarters moved to the 41st-43rd floors of Satcom Tower in Shenzhen, marking the company’s entry into a new stage of high-level development.

Chairman Xu Kaihua emotionally stated that the brilliant achievements of 2025 were created by tens of thousands of GEM heroes who crossed mountains and seas through sweat and struggle. He expressed immense pride in the employees of GEM and commended the striving spirit of these heroes!

Prospects for 2026: Leading the Way with High Morale, Welcoming a 2026 Filled with Infinite Hope!

The year 2026 is full of infinite challenges and opportunities. Chairman Xu Kaihua pointed out that the new landscape of global competition for critical minerals brings historic growth opportunities for the company’s core business of key metal recycling. The Central Economic Work Conference reaffirmed the strategy of "Leading with Dual Carbon Goals to Drive a Comprehensive Green Transition," ushering in a new era of green and circular development for GEM. As long as GEM adheres to its three core businesses: key metal recycling, lithium power battery recycling, and core manufacturing of new energy materials, continuously creates competitiveness, and keeps pace with China’ circular era, it will face infinite opportunities and a bright future.

At the same time, the company faces three severe challenges: the increased risk of global supply chain disruptions, the erosion of gross profit margins due to commodity price fluctuations, and the need for global management upgrades brought about by rapid international expansion. Chairman Xu Kaihua called on all GEM personnel to meet various challenges in 2026 with the spirit of “daring to change the world,” seizing new opportunities and creating new achievements!

Chairman Xu Kaihua emphasized that the work motto for 2026 is “Compliance and Steadiness, Quality and Efficiency, Building Global Competitiveness,” marking a significant shift in business philosophy from focusing on “speed and scale” to “compliant governance, financial steadiness, and quality and efficiency enhancement.”

Chairman Xu Kaihua highlighted the “Ten Major Upgrade Projects” to be systematically implemented in 2026:

1. Compliance Governance Upgrade Project: Establish the concept of legal compliance as the lifeline of governance. A Compliance Management Center will be set up to ensure through three major actions—learning and assessment, enforcement and regulation, and verification and correction—that company operations fully comply with international and domestic laws, regulations, and business rules, moving towards becoming a first-class international company.

2. Financial Steadiness Upgrade Project: Centered on “compliance, steadiness, cost reduction, and efficiency enhancement,” the company will implement a series of actions including compliance standardization, inventory reduction, investment control, expense control, gross margin improvement, accounts receivable reduction, debt reduction, and net income improvement to optimize financial indicators and fortify the financial foundation of steady operations.

3. Capital Chain Security Upgrade Project: Expand the funding pool through multiple channels, efficiently schedule fund usage, strictly control ineffective investments, and resolutely safeguard the bottom line of capital security.

4. Market and Supply Chain Quality Upgrade Project: Adhere to the principles of “no buying or selling at a loss,” “cash flow priority,” and “market risk control.” Deepen relationships with high-quality customers, explore emerging markets, revitalize the supply chain and bulk metal commodity trading, master strategic procurement, and enhance value across the entire chain.

5. Core Business Upgrade Project: Focus on improving gross profit margins, promote product upgrades toward high purification, advanced materials, and “super new energy” applications. Implement the "Strengthening Action" for lithium battery recycling to enhance the global competitiveness of core businesses.

6. Innovation Upgrade Project: Implement a dual-track innovation drive of “Super Leadership + Lean Process Innovation.” Using the “Three Supers + Three Generations + Three Leans” as a starting point, the company aims to break through hard-core technologies, lead the industry, and serve lean process innovation focused on extreme cost reduction, top-tier quality, and business upgrades.

7. Quality and Brand Upgrade Project: With the goal of establishing a world-leading brand, the company will implement lean quality management and zero-defect product standards, introducing top international quality management experts to comprehensively complete the quality upgrade.

8. Lean Management Enhancement Project: Centered on five keywords—extreme cost reduction, clean production, process refinement, intelligent manufacturing, and safety/environmental protection—the company will comprehensively upgrade lean management and fully embed safety and environmental management into production processes to achieve green, efficient, and sustainable development.

9. Team Building and Talent Cultivation Upgrade Project: We must firmly establish the philosophy that “teams are built through leadership, and talent is developed through cultivation.” We adhere to the investment view that “investing in talent is investing in the future; invest in talent before capacity.” Management at all levels should exert utmost effort and goodwill to leading teams and nurturing talent, fostering a corporate culture of “mentoring, assistance, and guidance.”

10. Capital Value and ESG Upgrade Project: Seize the window of opportunity for the HKEX listing to implement global value promotion and create a value promotion system for a leading enterprise in the circular economy industry. In terms of ESG construction, GEM will adhere to “building height, building foundation, and engaging the public,” co-creating global responsibility case studies with international organizations like the United Nations and leading enterprises.

The company will conduct sustainable community co-construction and continue “Green Recycling, Low-Carbon Life” public welfare campaigns. GEM will further deepen China-Indonesia educational cooperation and create a “GEM Green Home” to foster a happy and harmonious green culture through emotional care and value enhancement.

In his conclusion, Chairman Xu Kaihua emphasized that the global economic and trade landscape presents a great opportunity for GEM to prevail globally, and the new round of industry “involution” will once again reveal the true character of GEM’s heroes. By adhering to the work motto of “Compliance and Steadiness, Quality and Efficiency, Building Global Competitiveness,” solidly advancing the “Ten Major Upgrade Projects”, honing internal strengths, and forging new competitive advantages, victory will surely belong to all GEM personnel! Chairman Xu Kaihua called on all the employees to take the lead, seize opportunities, secure a robust opening for 2026, and present brilliant achievements as a grand gift for GEM’s 25th anniversary!

Finally, Chairman Xu Kaihua wished friends across the global upstream and downstream industry chains and all GEM employees happiness every day in 2026, well-being for every family, and a future as bright as “facing the sea with spring blossoms!”

The conference concluded successfully in an atmosphere of high spirits and progress. All GEM personnel have reached a consensus and are ready to forge ahead toward the grand goals of 2026, together composing a new chapter of green development, achieving total victory in the new round of global industry challenges, creating imaginative growth in performance, and rewarding global investors!