On May 8, 2026, GEM held its 2025 Annual Earnings Presentation, under the theme “Seizing Opportunities, Unleashing Imagination for Thriving Growth,” in a hybrid format that connected its Shenzhen headquarters in China with the QMB industrial park site in Sulawesi, Indonesia, combined with an online live broadcast. At the Sulawesi venue, Professor Xu Kaihua, Chairman of GEM, delivered a management and development report titled “Seizing Opportunities and Unleashing the Imagination of Robust Growth” to nearly 100 representatives from financial institutions, media professionals, and over 300,000 online viewers and netizens. The presentation provided a comprehensive overview of the company’s competitiveness in proactively seizing historical opportunities arising from global competition over critical metals, continued explosive growth in new energy, the advent of the mandatory compliance era for power battery recycling, and the national green development strategies of China’s 15th Five-Year Plan period. Professor Xu described GEM’s transformation over the past five years from a leader in waste recycling into a world-leading “nickel resources + recycling – materials” integrated enterprise, and conveyed the enormous value prospects of the company’s future innovations in high-nickel materials, solid-state battery materials and global development, and demonstrated GEM's firm confidence in surmounting the industrial competition cycle and marching toward new incremental growth avenues amid global industry headwinds.

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 report by noting that a “chaotic world” harbors “great opportunities.” He directly addressed four major challenges facing the global industry: (1) intensifying competition over critical metals with mandatory controls becoming the new normal; (2) the mandatory compliance era for power lithium-ion battery recycling accelerating industry consolidation; (3) nickel facing “darkness before dawn,” with prices likely to rise significantly; and (4) ternary materials as the “fighter jets” of batteries, with undoubtable prospects. While recognizing these challenges, Chairman Xu outlined four great opportunities for the company: First, with over 20 years of industry expertise and technological accumulation, GEM has built a deep moat spanning core technologies to global industrial presence, which positions it to seize strategic dividends from global critical metal price increases. Second, as global mandatory compliance for power batteries takes hold, GEM’s integrated chain positioning positions it to capture profits in the coming era. Third, through its “technology + resources” alliance model, GEM has built a durable nickel resource profit moat, positioning it to benefit from rising global nickel prices over the medium to long term. Fourth, leveraging its high-nickel/ultra-specific energy technology and full “resources – materials – recycling” closed-loop industrial chain advantages, GEM is poised to occupy the core position as a key manufacturer in the explosive ternary material demand driven by new emerging markets such as low-altitude aircraft/humanoid robots/AI devices, and solid-state lithium battery industrialization.

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

Upholding the Circular Economy Mission with Green Endeavor Shining Globally

As a global leader in urban mining and a driver of the full life-cycle value chain for lithium batteries, GEM remains steadfast in its founding mission of “Limited Resources, Unlimited Recycling.” Chairman Xu Kaihua systematically reviewed GEM’s journey in green development, providing a comprehensive overview of the company’s three core value-chain closed-loop businesses, along with its world-class green contributions in critical metal recycling, power lithium-ion battery recycling, core supply of new energy battery materials, and greenhouse gas mitigation—embodying the world-class green mission of “green endeavor for mankind.”

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

Over the past five years, GEM navigated through industry cycles, moved forward against the waves, grew stronger with each challenge and advanced toward growth channels. Chairman Xu Kaihua summarized these five years through seven key achievements:

1.Persistent Resilience Across Industry Cycles, with Stable Counter-Trend Growth. Over the past five years, the company’s financial indicators grew steadily. Critical metal extraction and recycling, along with power lithium-ion battery recycling, emerged as new growth drivers in 2025, enabling GEM to break through industry involution, continue to grow against industry headwinds, and enter a new phase of high-quality and stable development.

2. Global Innovation Leadership, Setting Industry Benchmarks. GEM achieved four outstanding accomplishments in innovation, leading the global industry and bolstering national competitiveness: First, building a global innovation platform that places GEM at the forefront of industry innovation; second, achieving technological breakthroughs in efficient extraction and recycling of critical metals; third, developing full-chain systematic innovation covering “theory – technology – equipment” in power lithium-ion battery recycling, establishing a globally leading moat through three major new core technologies; fourth, developing new-generation ultra-high nickel, ultra-specific energy materials that lead the global industry. 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. With a forward-looking strategic vision, GEM has completed a global production footprint that strengthens the security of its global operations. In Indonesia, over 1,000 GEM employees have worked tirelessly for five years, overcoming immense challenges to successfully build a green nickel refining industrial park, whose primary green nickel production capacity ranks among the world’s Top 3. The company has historically built a complete nickel industrial chain spanning “laterite nickel ore → MHP → nickel sulfate → electrodeposited nickel → ternary precursor,” achieving the remarkable milestone of “feeding in laterite nickel ore and producing new energy materials.” This global production footprint effectively offsets trade barriers and geopolitical risks.

4.Optimizing Business Structure and Concentrating on Core Operations. GEM proactively divested non-earning businesses to concentrate on and deepen its core operations. The entry of state-owned enterprises into waste recycling marks the formal arrival of the green circular economy era. 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 pioneered an integrated expansion model blending “industry, technology and culture,” deeply cultivating Indonesia through a long-term strategy akin to cultivating “black soil”: In the industrial sphere, QMB has become a driver of Indonesia’s nickel industry transformation toward new energy. In talent development, the company has progressively run Sino-Indonesian master’s programs in engineering, established a green metallurgy school, and co-founded a Sino-Indonesian academy of excellence for engineers, training 266 Indonesian master’s and doctoral graduates in engineering, thereby localizing advanced metallurgical talent. In technology, GEM has invested in establishing its own R&D center in Indonesia and co-built the China-Indonesia Joint Research Laboratory. Through a balanced “taking and giving” ecosystem, GEM has effectively hedged geopolitical risks, established deep roots in Indonesia and secured its long-term global positioning.

7.Globally Recognized ESG Excellence, Unleashing a Powerful Force. GEM takes "green development, pollution reduction and carbon emission cuts" as its mission and launches initiatives to build a world‑class green and low‑carbon industrial park. It plans to install 1,000 MW of photovoltaic power generation in the park, targeting a 65% share of green power by 2028. In 2025, the company completed 221.5 MW of photovoltaic installations, achieving a 25.7% green power ratio, built 100 hectares of wetlands, and reduced carbon dioxide emissions by 1.429 million tons, representing a 30% year‑on‑year increase. It is further integrating production, daily life and ecological protection in depth.

Meanwhile, through sustainable development‑oriented assistance, the company has established an "enterprise‑village‑run company‑villagers" model in Indonesia. It has created more than 500 jobs and generated over 20 billion Indonesian rupiah in revenue in 2025, delivering the goal of "one job for one person, increased income for one household, and prosperity for one village".

Serving National Strategic Needs and Building a World-Class Green Industry Enterprise

On the strategic level, Chairman Xu Kaihua, in his 15th Five-Year Plan development outline, began by articulating the company’s new mission – serving national strategic needs and building 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 the 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 will concentrate on its core businesses, move forward with steady steps and comprehensively enhance its profitability.

2026 Operational Plan: Making a Good Start, Establishing a Solid Footing and Forging Ahead at the Forefront

In the first quarter of 2026, GEM delivered a report of steady growth: operating revenue reached RMB 9.982 billion, up 5.12% year-on-year; net profit attributable to shareholders of the parent company was RMB 522 million, up 2.18% year-on-year. These core operating indicators maintained positive growth despite multiple challenges, demonstrating the strong resilience of the company’s business foundation.

Looking ahead, Chairman Xu Kaihua proposed a new operational philosophy of “Compliance and Steadiness, Quality and Efficiency,  Building Global Competitiveness.” This marks GEM’s strategic shift from pursuing speed and scale to a comprehensive management strategy centered on compliance governance, financial stability, and quality and efficiency improvement. The company will focus on deepening its three core business areas—the extraction and recycling of critical metals, power lithium-ion battery recycling, and new energy battery material manufacturing—and will implement ten major upgrading initiatives: upgrading 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, respond to challenges, and advance into a new stage of growth.

In 2026, the company will focus on driving three core actions—reducing liabilities, destocking inventories, and controlling investments—while comprehensively advancing the gross margin enhancement initiative. With a stable financial structure, a continuously optimized business structure, and steadily improving profitability, GEM is committed to delivering solid performance and rewarding its investors.

In response to industry involution and competition, Chairman Xu Kaihua made it clear that GEM will take the lead in fostering a healthy industry ecosystem, strictly control blind capacity expansion, reject low-price vicious competition and rationally balance industrial rivalry with collaborative development, guiding the industry toward a new paradigm of healthy 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 report titled “Super Innovation: Unleashing the Potential for Business Upgrading,” which systematically summarized the company’s innovation achievements during the 14th Five-Year Plan period and outlined its innovation strategy for the 15th Five-Year Plan period.

Innovation Multiplied, Outcomes Flourish. During the 14th Five-Year Plan period, GEM drove “super technology” through the formula of “super talents + super equipment + super innovation,” establishing a “6+2” global leading innovation platform. The company achieved a cluster 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. These innovations enabled GEM to break through industry cycles and achieve counter-trend growth.

“Super Technology, Toward the Future.” During the 15th Five-Year Plan period, GEM will focus on addressing major national strategic needs, concentrating on frontier technology tracks such as all-solid-state battery materials, ultra-specific energy materials, hydrogen catalysis materials, high-entropy alloys, high-purity metals and advanced ceramic materials. The company will build an “AI + R&D + manufacturing” intelligent innovation platform to comprehensively break through involution and create a new growth trajectory.

In 2026, GEM will concentrate on innovation upgrading, implementing a dual-track innovation initiative blending “super leadership + lean process innovation” to achieve a leap from technological breakthrough to industry leadership. The company will focus on ultra-specific energy, high-voltage and solid-state lithium battery frontier tracks, tackle core technologies, seize commercialization opportunities for first-mover products and fully support the company’s strategy of quality and efficiency enhancement through development.

Dr. Zhang Kun emphasized that GEM will uphold its innovation spirit daring to tackle tough challenges and venture into uncharted territories bravely embrace the mission of safeguarding national strategic new materials security, and lead the global new energy industry in achieving the great leap from green circularity to value growth.

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: Candid Responses and Value Resonance

During the interactive exchange session, GEM’s senior management team addressed investor concerns in detail, including Indonesia’s new nickel resource policy, the impact of the Ministry of Industry and Information Technology’s new policy on waste power battery recycling on business development, progress on the Hong Kong listing, and GEM’s solid-state battery technology layout. The management engaged in genuine dialogue with global investors, who expressed strong confidence in GEM’s green industry future. The company also answered questions from online investors through online roadshow platform.

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

Galloping Forward Together to Build a National Industry of Lasting Greatness

The Earnings Presentation concluded to the stirring and heroic melody of “The Great Wave Sways the Sea.” With the broad-minded spirit of “The vast sea laughs with one voice, the tides surge on both shores, the landscape is infinitely beautiful,” Chairman Xu Kaihua conveyed to global investors GEM’s unwavering confidence – unafraid of industry cycles, calmly forging ahead in the industry arena, and steadfastly creating stable value returns for global investors.

At the conclusion of the Presentation, Chairman Xu Kaihua extended his sincere thanks to investors, industry experts, securities institutions, mainstream media and Panorama Network for their unwavering support. “The support of our investors is an inexhaustible driving force for GEM‘s progress,” he said. “Looking ahead, GEM’s business, technology and growth channels will all remain sound – and so will our commitment to rewarding shareholders!“

Soaring high like the roc taking flight, a new chapter begins on a new journey. Standing at the threshold of 2026, the opening year of the 15th Five-Year Plan period, GEM is steadily and steadfastly deepening its presence in the global circular economy and new energy materials industry, resolutely charting the ambitious course toward RMB 100 billion in output value and RMB 100 billion in market capitalization, and steadily moving forward to fulfill the grand vision of building a world-class green industry enterprise.

The Earnings Presentation was broadcast live in full 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.