Gem Co.,Ltd. (002340.SZ) Plans Hong Kong IPO; CSRC Requests Additional Disclosures on Subsidiaries and Branches

Stock News10-31

On October 31, the China Securities Regulatory Commission (CSRC) issued a notice requesting supplementary materials for overseas listings, covering nine companies from October 27 to October 31, 2025. Among them, Gem Co.,Ltd. (002340.SZ) was asked to clarify whether it operates in "high-energy-consumption" or "high-emission" industries and provide details on all subsidiaries and branches.

Gem Co.,Ltd. submitted its listing application to the Hong Kong Stock Exchange on September 22, with J.P. Morgan, CITIC Securities, and CICC International acting as joint sponsors. The CSRC has requested the following supplementary disclosures, requiring legal verification and opinions:

1. Clarification on whether the company falls under "high-energy-consumption" or "high-emission" industries, including verification of existing, ongoing, and planned projects. 2. Updates on: (1) Progress in repurchasing and canceling 8.75045 million restricted shares; (2) Registration updates for changes in registered capital; (3) Filing progress for subsidiary Hubei Green Tungsten’s renewable resource recycling operations; (4) Overseas investment updates for subsidiaries PT Qing Mei Bang Indonesia and PT Mei Ming Indonesia. 3. Disclosure of all subsidiaries and branches per regulatory guidelines, as only major subsidiaries were initially reviewed. 4. Confirmation of compliance with overseas listing prohibitions under the new trial measures for domestic companies.

According to its prospectus, Gem Co.,Ltd. is a leader in critical metal recycling, lithium-ion battery recycling, and new energy materials. Since its founding in 2001, it has built a circular economy model spanning three core businesses: critical metals, battery/auto recycling, and new energy materials.

Financially, the company reported revenues of RMB 29.39 billion (2022), RMB 30.53 billion (2023), RMB 33.2 billion (2024), and RMB 17.56 billion (H1 2025), with net profits of approximately RMB 1.33 billion, RMB 1.16 billion, RMB 1.33 billion, and RMB 843 million for the respective periods.

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