The brand's influence continues to expand in the global market.
On August 28, Jinjing Xinneng Holdings Co., Ltd. (hereinafter referred to as “Jinjing Xinneng”) issued an announcement “Business update relating to the signing of a Memorandum of Understanding with Cainiao Supply Chain Hong Kong Co., Ltd.” The announcement stated that the two sides signed a memorandum of understanding on the same day to jointly develop and promote reverse logistics business. The agreement will come into effect on September 1.
Cainiao Supply Chain Hong Kong Co., Ltd. (hereinafter referred to as “Cainiao Supply Chain”) is a subsidiary of Cainiao Group. It is rooted in Hong Kong and focuses on global logistics and supply chain solutions, providing innovative and efficient distribution services for e-commerce and other industries around the world. Cooperation will help Jinjing Xinneng to strengthen the global service system of the power battery recycling industry chain and empower its core business development. As a result, intrinsic value will be further enhanced as cooperation progresses, and brand influence will continue to expand in the global market.
Judging from the contents of this agreement, the two sides will carry out in-depth cooperation on multiple dimensions. Jinjing Xinneng and Cainiao Supply Chain have joined forces to build a battery materials trading center centered in Hong Kong to comprehensively promote the recycling of power batteries and the development of a green logistics industry chain.
The main contents include: building a logistics system for waste power batteries; Cainiao Group's huge logistics network provides efficient collection and transportation support for the global layout of Jinjing Xinneng battery recycling; the two sides establish a battery materials trading center in Hong Kong to guarantee downstream supply chain supply through centralized trading of key raw materials, establish a regional center for non-ferrous metals global warehousing to enable green supply chain finance; and jointly build a green logistics system centered on battery recycling, using new energy transportation and warehousing automation technology to minimize carbon emissions throughout the battery recycling process.
As can be seen, Jinjing Xinneng and Cainiao's supply chain will achieve close cooperation in recycling, resources, technology and markets, which will have sufficient demonstration effects in promoting the sustainable development of the global power battery industry. By forming low-carbon industrial development, diversified cooperation models, integration and shared resources, Jin Jing Xinneng is creating a new pattern of the power battery recycling industry chain to achieve win-win economic benefits, environmental and social values.
Returning to the business level, the current cooperation between Jin Jing Xinneng and Cainiao Supply Chain can be described as a “strong partnership”. As a leading enterprise in the global logistics industry, Cainiao Group has accumulated deep operational experience and digital intelligence advantages, developed rapidly in businesses such as global express delivery, global supply chain and integrated logistics technology, and is actively building green logistics. Currently, it has a world-leading logistics network.
Meanwhile, Jinjing Xinneng has recycling channels accumulated over decades, cooperates with automakers and battery cell manufacturers. With leading recycling and battery disposal technology, Jinjing Xinneng has established a closed loop in the global power battery recycling industry chain in recent years. As the first green energy company to obtain a full license for the disposal, transportation and export of power batteries in Hong Kong, Jinjing Xinneng has taken an important position in the global power battery recycling market along with technological innovation and market development.
As a result, this cooperation will have a business synergy effect. Jinjing Xinneng will use the advantages of Cainiao Group to promote business growth on a global scale and consolidate its competitive advantage in the global battery recycling industry.
The global service system is becoming more and more perfect, ushering in more deterministic increases
Currently, Jinjing Xinneng has a rapid layout. Starting from Hong Kong, it is building a huge global service system for battery recycling and recycling covering the Southeast Asian, European, and American markets. This partnership with Cainiao Group is also a microcosm of Jinjing Xinneng's strategic layout. Previously, Jin Jing Xinneng disclosed a memorandum of cooperation involving its layout in the European market (including Germany, Slovakia, Lithuania, Poland, Turkey, etc.), but now its strategic layout is picking up again.
Looking at long-term development from the perspective of the market environment, with the rapid expansion of the global electric vehicle market, the wave of power battery scrapping will spawn a long-term path of high prosperity, which provides full certainty for Jinjing Xinneng's future performance growth.
According to CITIC Securities's latest research report, the continued increase in power battery capacity strongly supports the growth space for subsequent battery recycling. Considering the 6-8 year battery life cycle, combined with the promotion of the trade-in policy, it is expected that the inflection point of large-scale decommissioned batteries will reach an inflection point. It is estimated that in 2030, the global recycling volume of decommissioned batteries is expected to reach 831 GWh, with a market space exceeding 100 billion yuan.
Currently, global battery recycling requirements are gradually being upgraded. For example, the new EU regulations clearly require the ratio of recycled materials and full process carbon footprint tracking. The carbon footprint calculation must include the entire process from material extraction to production and recycling. Meanwhile, Jin Jing Xinneng is leading in recycling technology and scale, and has a further advantage in the global strategic layout. As a result, it can naturally enjoy more opportunities for industrial development, and is expected to usher in a double increase in business performance and intrinsic value.
Therefore, looking forward to the future, through various forms of in-depth cooperation, the two sides will use their respective resource advantages to develop collaboratively. Jinjing Xinneng's core business and global service system will become more and more perfect, which will attract more downstream customers and bring significant deterministic increases.
Previously, Jinjing Xinneng established cooperation with Guoxuan Hi-Tech to serve cell companies going overseas. The latter's global battery production capacity will reach about 300 GWh in 2025. As a result, Jinjing Xinneng's profitability is further guaranteed, opening up room for future growth. This brings unlimited room for imagination to the capital market, so it is likely that Jin Jing Xinneng will enjoy a higher valuation premium in the future.
Summarizing:
This joint cooperation with Cainiao Group will help consolidate Jinjing Xinneng's industrial chain layout, solidify its leading position in the global power battery recycling market, and have a demonstration effect on the industry.
At present, a global service system for recycling and recycling of Jinjing Xinneng batteries has taken shape. With the further expansion of the global market, the inflection point of large-scale disposal of decommissioned batteries has arrived. The present may only be the starting point for a new round of performance growth for Jinjing Xinneng. Well, for investors pursuing fundamental investments, the value of Jin Jing Xinneng has not yet been fully reflected in the market value, so they need to look forward to it even more.