GreenMed Group Co., Ltd. (hereinafter referred to as 'GreenMed') was officially listed on the Swiss Stock Exchange during the Central European Summer Time on July 28, 2022. The final issue price of GDRs was $12.28 per share. Before the exercise of the over-allotment rights, the company issued 28,184,100 GDRs, representing 281,841,000 underlying A-share stocks, raising a total of $346 million.
During the process of listing on the Hong Kong Stock Exchange, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, sponsor, and other professional intermediary institutions in completing relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important sections), facilitating communication between the issuer and the Hong Kong Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on industry-related issues from the Hong Kong Stock Exchange.
Global Lithium-ion Battery Cathode Materials Market Overview
Thanks to the growth in downstream applications of lithium-ion batteries, the global market for lithium-ion battery cathode materials has rapidly expanded. Shipments increased from 450.9 thousand tons in 2017 to 1,458.1 thousand tons in 2021, with a compound annual growth rate of 34.1% during the same period. With the continuous growth of the global electric vehicle, consumer electronics, and energy storage markets, it is expected that shipments of the global lithium-ion battery cathode materials market will continue to grow at a compound annual rate of 26.5% from 2022 to 2026, reaching 4,968.0 thousand tons by 2026.
Lithium iron phosphate (LFP) and ternary cathode materials dominate the market for lithium-ion battery cathode materials, accounting for over 80% of the market share, mainly due to their widespread application in electric vehicles and energy storage batteries. Ternary batteries offer higher energy density, faster charging efficiency, and better low-temperature adaptability. With the growing demand for higher energy density in high-end electric vehicles, ternary batteries are expected to develop towards higher nickel content, continuing to stimulate demand for ternary cathode materials.
Lithium-ion battery cathode material shipments (by cathode material)
Global, 2017 - 2026E
Source: Frost & Sullivan report
Global Ternary Precursor Market Overview
Ternary precursors are an important component in the production of ternary lithium-ion batteries. Ternary lithium-ion batteries are mainly used for downstream applications such as electric vehicles, energy storage systems, and consumer electronics. From the perspective of downstream demand, electric vehicle power batteries are the primary application of ternary precursors, with tremendous development potential. Due to the rapid growth of the global electric vehicle market and the continuous increase in the penetration rate of electric vehicles, the demand for ternary precursor materials has further increased. It is expected that from 2022 to 2026, global ternary precursor shipments will reach 2,803.0 thousand tons in 2026, at a compound annual growth rate of 28.7%, consistent with the rapid growth of the global electric vehicle market.
Global shipments of ternary precursors, 2017 - 2026E
Source: Frost & Sullivan report
Overview of the Global Cobalt Tetroxide Market
Cobalt tetroxide (Co3O4) is mainly used as a precursor for the production of lithium cobalt oxide batteries. Lithium cobalt oxide batteries are widely used in consumer electronics such as smartphones, tablet computers, and smart wearable devices. With the increasing popularity of 5G terminal products, smartphones will face upgrading demands; moreover, with increased efforts in technological innovation, several new products in the consumer electronics field, such as wearable devices, AR/VR, and consumer drones, have emerged, which are expected to stimulate demand for cobalt tetroxide.
With the continuous growth of the global consumer electronics market, it is expected that the shipments of cobalt tetroxide globally will continue to grow at a compound annual rate of 10.4% from 2022 to 2026, reaching 158.8 thousand tons in 2026.
Cooperated Tungsten Oxide shipments, global, 2017 - 2026E
Source: Frost & Sullivan report
Overview of China's Urban Mining Industry
Urban mining refers to the industry practice where participants recycle various waste materials from scrapped products and convert them into new raw materials or usable components for further production and processing. It is also known as urban waste recycling. It typically includes the recycling and utilization of scrapped automobiles, electronic waste, scrap cobalt and tungsten resources, waste power batteries, scrap steel, and waste plastics.
China's urban mining industry has an astonishing potential market space. It is estimated that the potential market size of China's urban mining industry will increase from RMB 16 trillion in 2022 to RMB 20 trillion by 2026. By 2026, scrap steel, waste plastics, and scrapped automobiles are expected to become the main upstream raw materials for China's urban mining industry, accounting for 35.4%, 25.5%, and 17.9% of the potential market size respectively.
Potential market size of urban mining industry
China, 2022E&2026E
Source: Frost & Sullivan report
Potential market size of urban mining industry (by sector
China, 2026E
Source: Frost & Sullivan report
Global Market Overview of Lithium-ion Battery Precursor Materials
Based on the shipment volume of ternary precursors, the total global market size for ternary precursors in 2021 was 763,300 tons. The top three ternary precursor suppliers accounted for 40.4% of the market size. In terms of ternary precursor shipments in 2021, Green Motion shipped more than 91,000 tons, holding a market share of 11.9%, ranking second globally.
Top 3 global ternary precursor suppliers (by shipment volume), 2021
Source: Frost & Sullivan report
Note: The term 'ternary precursor supplier' refers to companies that supply ternary precursors to agents/third-party customers in the market, excluding cathode material manufacturing companies that only use ternary precursors internally.
Based on the shipment volume of cobalt tetroxide, the total global market size for cobalt tetroxide in 2021 was 97,000 tons. The global cobalt tetroxide market is highly concentrated, with the top three cobalt tetroxide suppliers accounting for 47.1% of the market size. In terms of shipments of cobalt tetroxide in 2021, Green Motion ranked second globally with a shipment volume of 16,100 tons and a market share of 16.6%.
Top 3 Cobalt Tetroxide Producers Worldwide (by shipment volume), 2021
Source: Frost & Sullivan report
Note:
(1) The cobalt tetroxide mentioned here refers to the cobalt tetroxide used in consumer electronic lithium-ion batteries.
(2) Cobalt tetroxide suppliers refer to companies that supply cobalt tetroxide to agents/third-party customers in the market, excluding cobalt tetroxide manufacturing companies that only use it internally for cathode materials.
Overview of Market Competition in China's Urban Mining Industry
In terms of revenue scale, in 2021, the total market size of specific areas of urban mining extraction in China was RMB 59.14 billion. The market is highly fragmented, with the top three companies accounting for 15.7% of the market share in terms of total operating revenue. Green Energy Materials Group (GEM) is the largest participant in this field, with an annual revenue of RMB 5 billion and a market share of 8.5%.
Participation of specific sector players (by revenue) in mining industry in China's top three cities, 2021
Source: Frost & Sullivan report
Note: Specific areas include the recycling and utilization of scrapped vehicles, electronic waste, scrap cobalt, scrap tungsten resources, and waste power batteries.
Frost & Sullivan has rich research experience in energy and power, circular economy and environmental protection, as well as other related industries. It assists well-known enterprises in successfully listing on the capital market. Successful listing cases include: MYSE:LI MingYang Smart Energy, 0587.HK Conch Environmental Protection, 2265.HK Hongcheng Environmental Protection, SDIC:LI Power Investment Corporation of China, 1597.HK Naquan Energy Technology, 1650.HK Hygieia Group, 6812.HK Yongshun Holdings, 3718.HK Beikong Urban Services, 1542.HK Taizhou Water Affairs, 1987.HK Beng Soon, 1955.HK Zhuangchen Holdings, 6805.HK Jinmaoyuan Environmental Protection, 1857.HK Everbright Water Affairs, 1845.HK Weigang Environmental Protection, 1759.HK Sinopec Clean Energy, 0807.HK Shanghai Industrial Environment, 2377.HK Boqi Environmental Protection, 2337.HK Zhongcheng Energy, 8472.HK Ligo Holdings, 1257.HK Everbright Green Environmental Protection, 8309.HK Wancheng Global, 3768.HK Dianchi Water Affairs, 2281.HK Xinglu Water Affairs, 2017.HK Canghai Holdings, 8421.HK Datang Environment, 1272.HK Peiran Environmental Protection, 8320.HK Jinjiang Environment (CJE.SP), 6136.HK Kangda International Environmental Protection, 1799.HK Xintele Energy, 3996.HK China Energy Engineering Group Corporation, 2014.HK Haoze Water Purification, etc.
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