Shenzhen, 11 May 2026 – GEM held its 2025 Annual Earnings Presentation on May 8, 2026, under the theme “Seizing Opportunities, Unleashing Imagination for Thriving Growth”. The event was conducted in a hybrid format, linking the company’s headquarters in Shenzhen, China, with the QMB industrial park site in Sulawesi, Indonesia, while also being broadcast live online to domestic and international.

At the Sulawesi venue, Professor Xu Kaihua, Chairman of GEM, delivered a management and development presentation titled “Seizing Opportunities and Unleashing the Imagination of Robust Growth” to nearly 100 representatives from financial institutions and media professionals, alongside more than 300,000 online viewers.

The presentation highlighted GEM’s competitiveness in responding to key global industry trends, including intensifying competition over critical metals, continued growth in the new energy sector, the emergence of mandatory compliance requirements for power battery recycling, and China’s green development priorities during the 15th Five-Year Plan period.

Professor Xu outlined GEM’s transformation over the past five years from a recycling enterprise into a globally integrated “nickel resources + recycling – materials” company. He also emphasized the company’s future growth potential in high-nickel materials, solid-state battery materials, and international expansion, while reaffirming GEM's confidence in navigating industry cycles and unlocking new growth amid global market challenges.

▲ Figure 1: GEM’s 2025 Annual Earnings Presentation in a Global Live Broadcast Connecting the Shenzhen and Sulawesi Venues

▲ Figure 2: GEM’s 2025 Annual Earnings Presentation at the Sulawesi Venue, Indonesia 

▲ Figure 3: GEM’s 2025 Annual Earnings Presentation at the Shenzhen Venue, China

A Chaotic World, a Great Opportunity

Chairman Xu Kaihua opened his presentation by stating that a “chaotic world” also presents “great opportunities.” He outlined four major challenges facing the global industry: intensifying competition over critical metals amid increasingly normalized regulatory controls; the acceleration of industry consolidation driven by mandatory compliance requirements for power lithium-ion battery recycling; short-term pressure on nickel prices despite strong long-term fundamentals; and the growing importance of ternary materials, which he described as the “fighter jets” of battery technology with significant future potential.

While recognizing these challenges, Chairman sees major strategic opportunities for GEM: First, back by more than 20 years of industry expertise and technological accumulation, GEM has established strong competitive advantages spanning core technologies and global industrial operations, positioning the company to benefit from long-term increases in critical metal value. Second, as mandatory compliance standards for power battery recycling continue to expand globally, GEM’s integrated industrial chain positions the company to capture growth opportunities arising from the new regulatory environment. Third, through its “technology + resources” alliance model, GEM has built a resilient competitive advantage in nickel resources, strengthening its ability to benefit from medium- to long-term increases in global nickel prices. Fourth, leveraging its high-nickel and ultra-high specific energy technologies, together with its integrated “resources–materials–recycling” closed-loop industrial chain, GEM is well positioned to play a leading role in meeting rapidly growing demand for ternary materials driven by emerging industries such as low-altitude aircraft, humanoid robotics, AI devices, and the commercialization of solid-state lithium batteries.

▲ Figure 4: Professor Xu Kaihua, Chairman of GEM, delivering the management and development report “Seizing Opportunities, Unleashing Imagination for Thriving Growth”

Advancing Circular Economy and Green Development

As a global leader in urban mining and lithium battery recycling, GEM reaffirmed its founding mission of “Limited Resources, Unlimited Recycling.”

Chairman Xu Kaihua reviewed the GEM’s journey in building three core closed-loop business systems focused on: critical metal recycling, power lithium-ion battery recycling, and new energy battery materials manufacturing. The company also highlighted its contributions to greenhouse gas reduction and sustainable development through its integrated green value chain.

Seven Key Achievements (2021–2025): Forging a Durable Foundation of Core Competitiveness

Chairman Xu Kaihua summarized GEM’s progress between 2021 and 2025 through seven major achievements:

1. Resilience Growth Across Industry Cycles

Despite major volatility, GEM maintained stable growth, supported by expanding contributions from critical metal extraction and power lithium-ion battery recycling businesses.

2. Global Innovation Leadership, Setting Industry Benchmarks.

GEM achieved technological breakthroughs in critical metal recycling, battery recycling systems, ultra-high nickel precursor materials, and ultra-high specific energy cathodes, supported by a globally integrated innovation platform.

Building on these innovations, GEM has successfully established a global innovation system, broken through key bottleneck technologies, and cemented its position as an industry innovation leader.

3.Global Production Footprint, Mitigating Trade Risks.

GEM strengthened its global manufacturing network, particularly in Indonesia, where more than 1,000 employees contributed to building a green nickel refining industrial park with production capacity ranking among the world’s top three.

The company also completed a fully integrated industrial chain spanning: “laterite nickel ore → MHP → nickel sulfate → electrodeposited nickel → ternary precursor”. This structure enhances supply chain security while mitigating geopolitical and trade risks.

4. Optimizing Business Structure and Concentrating on Core Operations.

GEM streamlined non-core businesses to strengthen focus on strategic operations within the circular economy and new energy sectors.

This opportunity has not only validated GEM’s long-standing strategic orientation but also infused strong external momentum into its core business growth.

5. Global Ecosystem Alliance, Strengthening Competitive Moats. GEM has built a global alliance network, continuously enhancing its global competitive advantages to effectively address global tariff challenges and stabilize geopolitical relationships. Through strong partnerships with global entities such as Indonesia’s sovereign wealth fund Danantara, PT Vale Indonesia Tbk., Indonesia’s MBM, and South Korea’s ECOPRO, the company integrates resources, capital, technology and market strengths to build a “resources – products – markets” premier competitive alliance, create a world-leading green ecological park for nickel resources and downstream industrial chains, and establish a globally leading green nickel industrial chain.

6. Innovative Global Expansion Model, Strengthening Global Presence.

GEM has continued advancing its pioneering integrated expansion model combining “industry, technology, and culture,” through long-term investment and development initiatives in Indonesia. In the industrial sector, QMB has become a key driver of Indonesia’s nickel industry transformation toward new energy.

In talent development, the company has launched Sino-Indonesian engineering master’s programs, established a green metallurgy school, and co-founded a Sino-Indonesian academy of excellence for engineers. To date, GEM has trained 266 Indonesian master’s and doctoral engineering graduates, helping localize advanced metallurgical talent. In technology and innovation, GEM has established its own R&D center in Indonesia and jointly developed the China-Indonesia Joint Research Laboratory.

7. Globally Recognized ESG Excellence, Unleashing a Powerful Force.

Guided by its mission of promoting “green development, pollution reduction and carbon emission cuts,” GEM continues advancing the development of a world‑class green and low‑carbon industrial park. The company plans to install 1,000 MW of photovoltaic power generation capacity within the park, targeting a 65% share of green power by 2028.

In 2025, the company completed 221.5 MW of photovoltaic installations, increasing its green power ratio to 25.7%. During the same period, the company also developed 100 hectares of wetlands and reduced carbon dioxide emissions by 1.429 million tons, representing a 30% year‑on‑year increase. GEM is further promoting the integrated development of industrial production, community living, and ecological protection.

Meanwhile, through its sustainable development‑oriented community assistance initiatives, GEM has established an “enterprise‑village‑run company‑villagers” model in Indonesia. In 2025, the initiatives created more than 500 jobs and generated over 20 billion Indonesian rupiah in revenue, supporting the company’s goal of “one job for one-person, increased income for one household, and prosperity for one village.”

Strategic Direction for the 15th Five -Year Plan Period

Chairman Xu Kaihua stated that GEM’s long-term mission is to serve” national strategic needs and build a world-class green industry enterprise.”

In the face of mounting global trade challenges, Chairman Xu Kaihua stated that GEM will stand tall as a pillar of green leadership in the circular economy and as a listed company, serve global green development, become a source of national competitiveness and make a contribution of a backbone enterprise as the nation confronts global trade conflicts.

On the operational level, GEM will adhere to its trinity strategy of “stabilizing its foundation, pursuing super innovation, and opening the new growth channel.” In technological innovation, the company will invest heavily to align with global innovation elites, break through ultra-performance core technology, scarce core technology, and high-entropy core technology, and rapidly develop these three “cores” through super innovation to forge an unassailable global core competitiveness. In growth channel expansion, the company has formulated a three-year action plan covering operations, capital and markets.

From 2026 through 2028, GEM plans to concentrate on its core businesses while strengthening profitability, operational efficiency, compliance governance, and global competitiveness.

2026 Operational Outlook: Establishing a Solid Footing and Forging Ahead at the Forefront

In the first quarter of 2026, GEM maintained steady growth momentum, with operating revenue reaching RMB 9.982 billion, a 5.12% year-over-year increase. Meanwhile, net profit attributable to shareholders of the parent company reached RMB 522 million, representing a 2.18% year-over-year increase. Despite a challenging market environment, the company sustained positive growth across its core operating indicators, demonstrating the resilience and stability of its business foundation.

Looking ahead, Chairman Xu Kaihua introduced a new operational philosophy centered on “Compliance and Steadiness, Quality and Efficiency, Building Global Competitiveness.” The strategy marks GEM’s transition from prioritizing speed and scale to a more comprehensive management approach, focusing on compliance governance, financial stability, and operational quality and efficiency.

The company will continue strengthening its three core business areas—the extraction and recycling of critical metals, power lithium-ion battery recycling, and new energy battery material manufacturing—while implementing ten major upgrading initiatives covering compliance governance, financial stability, capital chain security, market and supply chain quality, core business, innovation-driven growth, quality and branding, lean management, team building and talent development, and capital value alongside environmental and social responsibility (ESG). Through these initiatives, GEM aims to strengthen its internal capabilities, enhance risk resilience, and enter a new stage of high-quality growth.

In 2026, the company will prioritize three key operational actions—reducing liabilities, destocking inventories, and controlling investments—while comprehensively advancing the gross margin improvement initiative. Supported by a stable financial structure, an increasingly optimized business portfolio, and steadily improving profitability, GEM is committed to delivering solid performance and rewarding its investors.

In response to intensifying industry competition, Chairman Xu Kaihua emphasized that GEM will take an active role in promoting a healthy industry ecosystem by strictly controlling irrational capacity expansion, opposing destructive low-price competition and balancing industrial competition with collaborative development, thereby supporting the industry’s transition toward a new paradigm of healthy and sustainable development.

Super Innovation: Unleashing the Potential for Business Upgrading

Dr. Zhang Kun, Senior Deputy General Manager of GEM and President of its Central Research Institute, delivered an innovation and R&D presentation titled “Super Innovation: Unleashing the Potential for Business Upgrading.”

The presentation systematically reviewed GEM’s innovation achievements during the 14th Five-Year Plan period while outlining the company’s innovation strategy for the 15th Five-Year Plan period.

Innovation-Driven Growth and Technological Breakthroughs

During the 14th Five-Year Plan period, GEM advanced its “super technology” through the integration of “super talents + super equipment + super innovation,” establishing a globally leading “6+2” innovation platform. The company achieved a series of world-first technology breakthroughs in areas such as high-pressure acid leaching of laterite nickel ore, efficient recovery of critical metals, full-chain power battery recycling, ultra-high nickel precursors, ultra-specific energy cathodes, and sodium-ion battery cathode materials.

Looking ahead to the 15th Five-Year Plan period, GEM will focus on addressing major national strategic priorities by accelerating research and development in frontier technologies, including all-solid-state battery materials, ultra-specific energy materials, hydrogen catalysis materials, high-entropy alloys, high-purity metals, and advanced ceramic materials. The company also plans to establish an integrated “AI + R&D + manufacturing” intelligent innovation platform to support industrial upgrading and create a new growth driver.

In 2026, GEM will further strengthen its innovation capabilities through a dual-track strategy combining “super leadership + lean process innovation” to accelerate the transition from technological breakthrough to industry leadership. The company will focus on frontier technologies related to ultra-specific energy, high-voltage, and solid-state lithium battery, while advancing commercialization opportunities for first-mover products and supporting its broader quality and efficiency enhancement strategy.

Dr. Zhang Kun emphasized that GEM will continue to uphold its innovation-driven spirit by tackling complex technological challenges, advancing strategic new material development, and supporting the long-term development of the global new energy industry through green and sustainable innovation.

▲ Figure 5: Dr. Zhang Kun, Senior Deputy General Manager of GEM and President of its Central Research Institute, delivering the innovation and R&D report “Super Innovation: Unleashing the Potential for Business Upgrading”

Interactive Exchange with Investors and Media

During the interactive session, GEM’s senior management team addressed investor questions regarding Indonesia’s nickel resource policies, the impact of new power battery recycling regulations introduced by China’s Ministry of Industry and Information Technology, progress related to the company’s Hong Kong listing, and developments in solid-state battery technologies. The management engaged directly with global investors and media, while also responding to questions submitted through the online roadshow platform.

▲ Figure 6: GEM’s Senior Management Team Exchanging with Investors and Media

Advancing Toward Long-Term Growth and Global Competitiveness

The Earnings Presentation concluded with Chairman Xu Kaihua reaffirming the company’s confidence in navigating industry cycles and delivering sustainable long-term value for investors.

Chairman Xu Kaihua expressed appreciation to global investors, industry experts, security institutions, media organization, and Panorama Network for their continued support, noting that investor confidence remains a key driving force behind GEM’s development.

“Looking ahead, GEM’s business, technology and growth channels will all remain sound – and so will our commitment to rewarding shareholders,” Chairman Xu Kaihua said.

Entering 2026, the opening year of China’s 15th Five-Year Plan period, GEM stated that it will continue deepening its presence in the global circular economy and new energy materials sectors, while advancing toward its long-term targets of achieving RMB 100 billion in output value and RMB 100 billion in market capitalization, as part of its broader vision of becoming a world-class green industry enterprise.

The Earnings Presentation was broadcast live via the Panorama Network roadshow platform. The event was attended by Mr. Zhou Bo, Director and Executive Deputy General Manager of GEM; Mr. Pan Hua, Director, Senior Deputy General Manager and Board Secretary of GEM; Professor Tang Sheng, Independent Director of GEM; Mr. Mu Menggang, Senior Deputy General Manager and Chief Financial Officer; Dr. Zhang Kun, Senior Deputy General Manager and President of the Central Research Institute; Mr. Jiang Miao, Senior Deputy General Manager and Head of Overseas Markets; Mr. Lou Huiyou, Senior Deputy General Manager and Head of Funding; Mr. Peng Yaguang, Senior Deputy General Manager and General Manager of QMB; Mr. Chen Yujun, Deputy General Manager and Head of Ternary Cathode Materials; Mr. Song Wei, Deputy General Manager and Head of Strategic Sourcing; and Mr. Dong Yuebin, Deputy General Manager and Head of Domestic Markets, among other senior management members of GEM.