Gem Co., Ltd. (002340.SZ) maintained continuous operations at its Jingmen production base during the Spring Festival holiday, aiming for a strong start in the first quarter. According to a February 22 announcement on the company’s official platform, key production processes ran 24 hours a day, with a total of 14,301 employees on duty from the first to the fifth day of the Lunar New Year. Manufacturing output during this period exceeded 4 billion yuan.
Financially, Gem forecasts its net profit attributable to shareholders for 2025 to reach between 1.429 billion yuan and 1.735 billion yuan, representing year-on-year growth of 40% to 70%. Even at the lower end of this projection, the company’s net profit would hit a record high.
Huaxin Securities recently noted that Gem has strengthened its self-sufficiency in nickel and cobalt supply. The brokerage predicts sustained revenue growth from 2025 to 2027, supported by structural upgrades in demand for ternary battery materials.
Over the past two decades, Gem has focused on innovation, developing global recycling of key metals, retired power battery recycling, and new energy battery materials. The company has overcome key technological challenges to produce core recycled products for major global markets.
Founder and Chairman Xu Kaihua, a graduate of Central South University’s metallurgy program, previously worked as a researcher and educator before establishing Gem in Shenzhen in 2001. Guided by the "urban mining" concept, the company specializes in recovering valuable materials from used batteries and electronic waste.
In February 2025, Xu stated that the company’s production schedule for the year was fully booked. This strong order momentum continued into 2026. On February 22, the company reported that its Jingmen base maintained uninterrupted operations during the Spring Festival, laying a solid foundation for a robust first-quarter performance.
Despite challenging global market conditions in 2025, Gem achieved significant growth through technological leadership and global production capacity. Key accomplishments included increased recycling of critical metals, full production at its nickel resource project in Indonesia, and further penetration into high-end new energy materials markets.
For full-year 2025, Gem expects net profit attributable to shareholders to reach 1.429 billion to 1.735 billion yuan, up 40% to 70% year-on-year. Adjusted net profit is projected between 1.226 billion yuan and 1.549 billion yuan, representing a change of -5% to +20% compared to the previous year. Even at the lower end of the forecast range, net profit would set a new company record.
In the first three quarters of 2025, Gem reported revenue of 27.498 billion yuan, a 10.55% increase year-on-year. Full-year revenue is expected to exceed 35 billion yuan, also reaching a historic high.
The company’s steady performance is attributed to ongoing improvements in quality and efficiency. In 2025, nickel metal shipments from its Indonesia nickel resource project (including joint venture capacity) surpassed 110,000 tons, more than doubling from the prior year and setting a new record for self-produced nickel output.
Amid nickel price volatility and complex global trade conditions, Gem has enhanced supply chain resilience and cost competitiveness through a flexible internal supply and external sales system.
Significant growth in nickel resource shipments, along with continuous optimization of production processes and costs, helped offset temporary impacts from heavy rainfall on capacity. The company expects its Indonesia nickel project to maintain full annual production capacity of 150,000 tons (including joint venture capacity) in 2026, supporting continued performance growth.
Additionally, in 2025, Gem recycled over 10,000 tons of tungsten resources, establishing itself as a world-leading green tungsten industrial base and creating a new growth driver in key metal recycling. The company also recycled and dismantled more than 52,000 tons of power batteries, a year-on-year increase of over 45%, highlighting strong prospects in the recycling sector.
Cathode material shipments exceeded 23,000 tons, up more than 15% year-on-year, demonstrating a clear competitive edge through product differentiation. Nickel-cobalt precursor shipments surpassed 160,000 tons. Although this represents a decrease compared to 2024, the company has optimized its precursor product mix to improve quality and efficiency, contributing to overall profit growth.
Huaxin Securities recently highlighted Gem’s enhanced self-supply capability for nickel and cobalt, forecasting continued revenue growth from 2025 to 2027, supported by structural upgrades in ternary material demand.
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