According to the Investor Relations Activity Record of Tianhe Magnetics (July 23, 2026): 1. What were the main drivers of the company's sales growth in H1 2026? Tianhe Magnetics responded: The company expects its net profit attributable to equity holders of the parent in H1 2026 to be 73 million yuan to 93 million yuan, up 36.56% to 73.98% YoY; and net profit after deducting non-recurring gains and losses attributable to equity holders of the parent to be 68 million yuan to 88 million yuan, up 91.94% to 148.39% YoY. This was mainly driven by overall high raw material price fluctuations in H1, the company's optimized pricing strategies for some existing and new orders, and raised product selling prices; the company proactively seized market opportunities and carried out sales efforts centered on "focusing on emerging markets, deepening customer relationships, and optimizing channel layout," achieving dual-driven growth in international and domestic markets with significant market development results. Overall operating revenue is expected to increase approximately 30% YoY, with domestic business revenue increasing approximately 50% YoY. For details, please refer to the company's disclosed 2026 H1 performance forecast. 2. What was the breakdown of the company's domestic and international business in H1 2026? Tianhe Magnetics responded: In 2025, the company’s international business generated operating revenue of 1,032.05 million yuan, accounting for 44.02%; domestic business generated revenue of 1,312.51 million yuan, accounting for 55.98%. For the H1 2026 breakdown, please refer to the company’s 2026 semi-annual report to be disclosed on August 26, 2026. 3. How is the construction progress of the new project of the subsidiary Tianhe New Materials planned? Tianhe Magnetics responded: Based on confidence in its own development and market prospects, and to meet current business planning and future development needs, the company invested in establishing the wholly-owned subsidiary Tianhe New Materials and is constructing the "Tianhe New Materials Rare Earth Zero-Carbon Industrial Park (High-Performance Rare Earth Permanent Magnets and Components, Equipment Manufacturing and R&D Project)." The project is progressing smoothly, with an initially planned capacity of 20,000 mt. The construction of this capacity will be steadily advanced by the company in line with market orders and company development. 4. How is the company’s expansion in new businesses? Tianhe Magnetics responded: The company is deepening its presence in emerging fields, developing customized magnets and components to precisely meet performance requirements in emerging markets. At the same time, it is accelerating the expansion of a diversified product system, actively promoting the R&D and industrialisation of high value-added products such as injection-molded magnets, bonded magnets, and magnetic assemblies, driving the company’s transformation and upgrade from a "magnetic material product supplier" to an "integrated rare earth permanent magnet solutions provider." In addition, the company's wholly-owned subsidiary Tianzhihe focuses on the R&D, production, manufacturing, and sales of key production equipment for rare earth permanent magnet materials. In 2025, the specialized production equipment developed by Tianzhihe, while meeting the needs of the parent company, successfully achieved commercialized external sales and deliveries. In 2025, cumulative external order signing amounted to 37.3066 million yuan, with external operating revenue reaching 25.4441 million yuan. 5. How does the company respond to fluctuations in raw material prices? Tianhe Magnetics responded: The company's procurement model is centered on "procurement based on production plus safety inventory," achieving precise on-demand procurement and dynamic inventory management through ERP and other information systems. The company has signed long-term agreements with major suppliers, establishing a stable and reliable supply chain system, and employs a scientific reserve mechanism to flexibly adjust inventory levels, effectively smoothing raw material price fluctuations, thereby securing stable supply while controlling procurement costs and risks. 6. What is the impact of export control policies on the company? Answer: The company has always strictly adhered to all national laws, regulations, and regulatory requirements. Upon the release of relevant export control policies, it promptly deployed and proactively responded, comprehensively establishing and continuously improving a full-process compliance management system for export controls. The company strictly follows the compliance management system to carry out export license application work, obtaining export licenses issued by the Ministry of Commerce in an orderly and lawful manner, thereby ensuring the smooth, orderly, sustained, and healthy development of its overseas international business. At the same time, the company continues to advance its market diversification strategy, actively expands into different regional markets, reduces reliance on single markets, and enhances its overall risk resistance capability. Furthermore, the refinement and strict enforcement of relevant export control policies have significantly raised the industry's standardization level. This creates favorable conditions for enterprises that have established sound compliance systems and can continuously meet licensing and delivery requirements, helping to guide industry resources toward well-operated enterprises, supporting them to secure long-term cooperation with high-quality clients, and promoting the entire industry's development toward a more orderly and higher-quality direction. 7. Is there any plan to develop rare earth targets? Tianhe Magnetics responded: The company is a leading domestic provider of high-performance rare earth permanent magnetic materials, primarily engaged in the R&D, production, and sales of high-performance rare earth permanent magnetic materials such as sintered NdFeB and sintered SmCo. It also extends its industry chain to injection molded magnets, bonded magnets, and magnetic assemblies, offering clients comprehensive rare earth permanent magnet solutions. The company currently has no such R&D plan. 8. What is the company's view on future rare earth prices? Tianhe Magnetics responded: Rare earths are important strategic resources of the nation. Rare earth product prices are influenced by factors such as market conditions, policy changes, and industry supply-demand cycles. Fluctuations of rare earth prices within a reasonable range benefit the development of both upstream and downstream sectors of the rare earth industry chain. Tianhe Magnetics disclosed its semi-annual performance forecast on July 9, which showed, based on preliminary estimates by the financial department, that the net profit attributable to owners of the parent company for the first half of 2026 is expected to range from RMB 73 million to RMB 93 million. Compared with the same period last year (statutory disclosed data), this represents an increase of RMB 19.5448 million to RMB 39.5448 million, up 36.56% to 73.98% YoY. It is estimated that in H1 2026, the net profit attributable to shareholders of the parent company, excluding non-recurring gains and losses, will be between 68 million yuan and 88 million yuan, representing an increase of 32.5723 million to 52.5723 million yuan compared with the same period last year (as disclosed in statutory reports), up 91.94% to 148.39% YoY. Regarding the main reasons for the expected increase in H1 performance, Tianhe Magnetics stated: 1. In H1, raw material prices fluctuated at high levels overall. The company optimized its pricing strategy for some existing and new orders and raised product selling prices. 2. In 2026, the company proactively seized market opportunities, centered its sales efforts on "focusing on emerging markets, deepening customer relationships, and optimizing channel layout," achieving dual-wheel drive from both international and domestic markets, with significant results in market development. Overall operating revenue is expected to increase by approximately 30% YoY, of which domestic revenue is expected to grow by about 50% YoY. 3. During the reporting period, the impact of non-recurring gains and losses on net profit is estimated to be approximately 5 million yuan, compared with 18.0275 million yuan (after tax) in the same period last year. In its 2025 annual report, introducing its main business, products, and application fields, Tianhe Magnetics stated: The company is an advanced provider of high-performance rare earth permanent magnetic materials in China. Guided by the corporate vision of "being the innovator in permanent magnet material innovation," it mainly engages in the R&D, production, and sales of high-performance rare earth permanent magnetic materials such as sintered NdFeB and sintered SmCo, and extends its business to injection-molded magnets, bonded magnets, and magnetic assemblies, providing clients with comprehensive rare earth permanent magnet solutions. Focused on independent R&D and technological innovation, and oriented by application scenarios and development needs in cutting-edge fields such as NEVs and automotive parts, wind power, intelligent manufacturing, and 3C consumer electronics, as well as emerging industries such as humanoid robots and low-altitude economy, the company effectively leverages the fundamental and pioneering role of rare earth permanent magnets as key strategic materials, continuously promoting the innovation and application of high-performance, resource-efficient rare earth permanent magnet materials, and facilitating downstream technological upgrades, product replacements, and industrial advances. Regarding its business plan, Tianhe Magnetics introduced in its 2025 annual report: 2026 marks the second year since Tianhe Magnetics' listing and is also the opening year of the 15th Five-Year Plan. Standing at a new starting point, the company adopts "innovation" as its annual development theme, adheres to the philosophy of "breaking conventions and embracing change," and continues to deepen its presence in the high-performance rare earth permanent magnetic materials sector. The company will rely on two major rare earth bases in Baotou, focus on core technology upgrades and the expansion of both domestic and international high-end markets, seize the strategic opportunities of global energy transition and intelligent development, and foster "development" through "innovation."Under the leadership of the Board of Directors, the Company will further integrate resources, leverage its strengths, and systematically advance all work around its operational objectives to ensure high-quality and sustainable development. In 2026, the Company will focus on the following tasks: 1. With "innovation" at the core, continuously strengthen R&D investment to drive product and technology upgrades. 2. Heading toward the new: focus on expanding new products, new clients, and new markets. 3. Continuously strengthen production and quality management to improve yield and workflow efficiency. 4. Deepen the construction of digital smart factories to continuously enhance production efficiency. 5. Steadily advance fundraising and investment projects and new project construction, expanding capacity to underpin performance growth. (1) Continue to advance the construction of fundraising and investment projects. In 2026, the Company will continue to push forward the implementation of these projects as planned. Upon full completion and reaching full production, the Company will achieve an annual capacity of 12,300 mt. Through automated production line upgrades, deployment of digital management systems, and green production process upgrades, the Company will continuously enhance manufacturing efficiency, ensure capacity matching at every stage from blank production to finished product inspection, and lay a solid foundation for performance growth. (2) Advance the construction of the Tianhe New Materials project. The first phase of the "Tianhe New Materials Rare Earth Zero-Carbon Industrial Park (High-Performance Rare Earth Permanent Magnets and Components, Equipment Manufacturing and R&D Project)", invested and constructed by the Company’s subsidiary Tianhe New Materials, has been launched. Upon completion, the project will further expand business scale and enhance the Company’s overall profitability, market competitiveness, and risk resilience. 6. Enhance intelligent equipment manufacturing capabilities and cultivate new growth drivers. 7. Management empowerment: continuously strengthen organization and talent development. 8. Continuously improve ESG efforts to promote sustainable development. 9. Strengthen investor relations and market value management to drive the continuous enhancement of the Company’s value. In its announcement regarding the risk of rare earth raw material price fluctuations, Tianhe Magnetics stated: The main raw materials required for the Company’s production are rare earth metals, which are relatively high-priced. Affected by multiple factors such as macroeconomic conditions, the trade environment, industrial policies, and market supply and demand, their prices fluctuate noticeably. Although rare earth permanent magnet enterprises can dynamically adjust product selling prices based on raw material price changes and other factors, due to the price lock-in of some existing orders and the negotiation period required for new order price adjustments, product price adjustments typically lag behind raw material price fluctuations. If raw material prices experience sustained wild swings in the future and the Company fails to respond in a timely and effective manner, it may adversely affect its operating results. Countermeasures: To address this risk, the Company continuously strengthens supply chain management, enters into long-term agreements with major suppliers to establish stable cooperative relationships, and implements scientific raw material reserve strategies to smooth out the impact of price fluctuations. Looking back at the price performance of Pr-Nd alloy in H1 this year, we can see: at the beginning of the year, Pr-Nd alloy was quoted at 740,000 yuan/mt. Driven by a confluence of supply-demand fundamentals, including tight spot Pr-Nd oxide supply and stockpiling purchases by downstream magnetic material enterprises around the Chinese New Year, prices surged rapidly, hitting a yearly high of 1.09 million yuan/mt at the end of February, representing a cumulative increase of 47.3%. In March, end-use demand contracted materially, coupled with the spread of bearish market news, causing prices to quickly pull back to around 900,000 yuan/mt. In April, supported by higher ore concentrate prices that boosted oxide costs, production suspensions at some separation plants, and the release of export orders during the export control window period, prices recovered and rebounded to 999,000 yuan/mt. From May to June, downstream demand entered the traditional off-season, with magnetic material enterprises reducing inquiries and purchases for Pr-Nd alloy, causing prices to hit bottom again at 830,000 yuan/mt. In mid-to-late June, large-scale production cuts at scrap recycling enterprises due to tax invoice issues led to expectations of tightening supply, driving Pr-Nd prices to bottom out, closing at 905,000 yuan/mt on June 30. The average price in H1 was about 905,000 yuan/mt, with a fluctuation range of 48.3%. On July 24, the average price of Pr-Nd alloy was 917,500 yuan/mt, edging up 0.27% from the previous trading day. From the Pr-Nd market perspective, the rise in Pr-Nd oxide futures prices reduced suppliers' willingness to sell spot cargo at low prices, prompting them to raise their Pr-Nd oxide quotes. However, market inquiry activity did not pick up as a result, and actual price gains were relatively limited. Supported by raw material costs, Pr-Nd alloy prices also rose in tandem, and low-priced cargo in the market gradually tightened. Yet, downstream magnetic material enterprises still had limited inquiries, making high-priced alloy transactions difficult, and market trading remained stagnant. Over the short term, affected by the tug-of-war stalemate between upstream and downstream, Pr-Nd product prices are expected to move sideways. Recommended reading:

According to the Department of Industry and Information Technology of the autonomous region, the Ministry of Industry and Information Technology (MIIT) recently released a list of smart PV typical cases. The "Honyuan New Materials Smart PV Typical Case" from Honyuan New Materials (Baotou) Co., Ltd. was successfully selected, making it the only selected project in the region. With "N-type entire industry chain + digital intelligence empowerment" at its core, the case builds a fully digital system across the chain of "smart production—data hub—scenario application—smart O&M," creating a smart PV ecosystem that integrates green manufacturing, smart energy, and intelligent services. It achieves a full life-cycle closed loop from product manufacturing to energy services, providing a replicable and scalable demonstration model for the digital, intelligent, and high-quality development of the industry. Reportedly, the selection of these smart PV typical cases was jointly organized by MIIT, together with the Ministry of Housing and Urban-Rural Development, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, and the National Energy Administration—five departments in total—aiming to identify a group of smart PV typical cases featuring advanced technology, mature models, remarkable results, and value for nationwide replication and promotion. These cases represent the advanced level in China's smart PV, PV+ESS integration, and green and low-carbon application fields. Going forward, the Department of Industry and Information Technology of the autonomous region will strengthen the promotion and dissemination of the typical cases, accelerate the application of smart PV technologies, promote the deep integration of energy technologies with artificial intelligence, new materials, and advanced manufacturing technologies, and support the autonomous region's PV industry in quality improvement and upgrading.

Capacity side, according to incomplete statistics, China’s alkaline electrolyzer market remained at 43.77 GW, and the PEM electrolyzer market at 2.7 GW. This week, Qinghui Energy’s 15 MW PEM hydrogen production integrated system was officially shipped to a project in Romania, Europe, linking renewable energy electrolysis for hydrogen production; Wenshi Hydrogen’s three AEM hydrogen production units were shipped to the Netherlands, representing the first repeat order from a European client, with this equipment delivered to a local farm. Project-related updates: Henan Shunli Alcohol Hydrogen Energy Technology Co., Ltd. : Henan Shunli Alcohol Hydrogen Energy Technology Co., Ltd. released a public inquiry for the supervision services for an integrated power generation, biomass gasification and green methanol synthesis project. The project is located in the Coal Chemical Park, Tongye Town, Yindu District, Anyang City, with a total investment of about 1.6 billion yuan, and a supporting raw material pretreatment sub-project investment of about 120 million yuan. The tender scope covers full-cycle supervision services for the raw material pretreatment project, with the service period initially planned from early August 2026 to July 2027. The project uses agricultural and forestry waste as raw material, and plans to produce 70,000 mt/year of non-food biomass green ethanol and 244,000 mt/year of green methanol, with construction in phases. Junrui Green Hydrogen Energy (Chahar Right Rear Banner) Co., Ltd. : The 80,000 mt/year green ammonia production site project has been filed. The project is located in the New Materials Industrial Park, Chahar Right Rear Banner, Ulanqab City, Inner Mongolia, with a total investment of 905.6 million yuan. The project plans to build an 80,000 mt/year ammonia synthesis plant and supporting utilities and auxiliary facilities, relying on upstream wind and solar power green hydrogen production, with an air separation unit to supply nitrogen and ammonia synthesis process to produce green ammonia, and a turndown ratio of 30% to 110%. The project covers an area of 509 mu, with a total floor area of 99,188 m². Construction is planned to start in October 2026 and complete in December 2027. Huaneng Xi’an Thermal Power Research Institute : The scientific research project’s alkaline electrolysis hydrogen production equipment and instruments tender has announced the shortlisted candidates. The first candidate is Fuxin Zhongqing Innovation Technology Co., Ltd., with a bid price of 1.1992 million yuan; the second is Shenzhen Ruilin Technology Co., Ltd., at 1.5808 million yuan; the third is Beijing Leidong Zhichuang Technology Co., Ltd., at 1.6334 million yuan. The project is located at the Baotou Third Thermal Power Plant of North United Power in Baotou, Inner Mongolia, and involves the procurement of a complete alkaline electrolysis hydrogen production system and supporting instruments. The supplier shall provide on-site installation guidance and commissioning services to support the development of high-efficiency single-cycle super alkaline electrolysis hydrogen production equipment. The project does not accept consortium bids, and delivery is required within 70 days after contract signing. CSSC (Handan) Peric Hydrogen Energy Technology Co., Ltd. : secured two orders from an Ecuadorian partner, one for equipment renovation and the other for new equipment for production line expansion, extending their strategic cooperation of over 20 years. Reports indicate that the Ecuadorian partner enterprise introduced Peric hydrogen production equipment in 2004. The equipment has operated stably for 22 consecutive years under complex overseas working conditions with zero failures. Long-term field verification highlights the excellent stability, durability, and environmental adaptability of Peric's electrolytic hydrogen production equipment. Maoming City Public Transport Co., Ltd. The inauguration ceremony for Maoming's first hydrogen fuel cell buses was held at the Maoming Railway Station North Square bus terminal. The vehicles deployed are customized Chery Wanda models, suited for urban, urban-rural, and township passenger transport scenarios, and are equipped with the Tianneng Hydrogen Electric Chenxing-T80 fuel cell system. The buses require only 15 minutes for hydrogen refueling, significantly reducing energy replenishment time compared to pure electric buses, extending operating hours and improving vehicle turnover efficiency, supporting the development of green transport in western Guangdong. PowerChina Beijing Engineering Corporation Limited: The Jiuyuan District hydrogen production and storage integration demonstration project has been filed and will be located in the Jiuyuan Industrial Park, Baotou City. The project has a total investment of RMB 1.4695 billion and is planned to include an annual hydrogen production unit of 7,366 mt, a hydrogen storage facility of 168,900 standard cubic meters, along with supporting hydrogen production testing platforms, a hydrogen quality inspection center, a hydrogen R&D center, and a science popularization base. The project is scheduled to start construction in October 2026 and be completed and operational by December 2028. China Energy Engineering Group Bochuang Green Fuel (Shenyang) Co., Ltd. China Energy Engineering Group's East China Institute has secured the EPC contract for the first phase of the Shenyang wind-solar hydrogen production integrated with biomass green methanol oil demonstration project, involving 10kt of green methanol. The project is located in Kangping County, Shenyang, and is a benchmark project among the first domestic initiatives combining wind-solar electrolytic hydrogen production with biomass gasification to methanol. It leverages local wind power and straw resources to establish a complete 'green electricity-green hydrogen-green methanol' industry chain, producing 10kt of green methanol annually. The project can consume local wind power and agricultural/forestry waste, reducing full life-cycle carbon emissions by about 70% compared to traditional coal-to-methanol processes, with significant environmental and economic benefits. Envision Zero-Carbon Technology (Chifeng) Co., Ltd. The 12 electrolytic hydrogen production rectifier transformers independently developed by XD Electric for the Envision Energy Chifeng Zero-Carbon Hydrogen-Ammonia Phase I project have been fully energized. This project is the world's largest green hydrogen-ammonia project, with core equipment fully deployed. It is planned to produce 1.52 million mt of green ammonia annually, making it the world's first commercial green hydrogen-ammonia project. It builds an entire integrated industry chain of wind, solar, storage, hydrogen, ammonia, and methanol, relies on 100% green electricity to produce liquid ammonia, and holds the world's first renewable ammonia certification issued by Bureau Veritas, showcasing outstanding industry demonstration value. Inner Mongolia Energy Group: The winning candidates for the hydrogen production system equipment procurement of the Jinshan Power Plant 2×660MW coal-fired power expansion project have been announced. The tender covers complete hydrogen production equipment for two 660MW high-efficiency ultra-supercritical air-cooled coal-fired units, with an estimated contract value of RMB 5.5 million. The candidates and their quoted prices are as follows: First candidate Beijing Zhongdian Fengye, quoting RMB 2.46 million; Second candidate Shanghai Qingrui Technology, quoting RMB 2.0833 million; Third candidate Changzhou Xingran Technology, quoting RMB 2.1 million. The project is located in Dongtaosuhao Village, Huangheshao Town, Saihan District, Hohhot. Construction started in December 2024, with Unit #1 planned to be commissioned in June 2027 and Unit #2 in October 2027. Zhuzhou CRRC Times Electric Co., Ltd.: has announced a direct procurement notice for the hydrogen power supply container assembly. The procuring entity is the Green Energy Branch of Zhuzhou CRRC Times Electric, with a procurement target of three sets of hydrogen power supply container assemblies. The designated supplier for this project is Guangdong Anpei Electric Power Co., Ltd. Policy Review 1. Scientifically plan the development of green hydrogen, ammonia, and methanol. Coordinate factors such as wind and solar resources, carbon sources, and water sources, integrate infrastructure construction for transportation, refueling, and transshipment, and plan the layout of green hydrogen, ammonia, and methanol production bases according to local conditions. Based on market demand, build integrated wind-solar hydrogen-ammonia-methanol projects for nearby consumption and utilization. Encourage the development of wind-solar hydrogen production in weak-grid or off-grid modes. Large-scale development projects for green hydrogen, ammonia, and methanol. Focus on northeast China, planning to build green hydrogen, ammonia, and methanol production bases primarily for outward transmission. Based on local conditions, plan to build green hydrogen, ammonia, and methanol production bases for nearby utilization in regions such as the 'Jiziwan' area of the Yellow River, northern North China, and the northern foothills of the Tianshan Mountains. 2. The Department of Economy and Information Technology of Zhejiang Province issued a notice on the 'Work Plan for Accelerating Scenario Cultivation and Openness to Promote Large-Scale Demonstration Applications of New Technologies, New Products, and New Scenarios.' Hydrogen energy application scenarios: Leverage the advantage of industrial by-product hydrogen resources to build the Yangtze River Delta Hydrogen Highway and Hydrogen Corridor, promote fuel cell vehicles such as port heavy-duty trucks, cold chain logistics, and bus passenger transport, and develop demonstration application scenarios for hydrogen transportation such as ships, forklifts, two-wheelers, and drones. For industrial application scenarios, advance the integrated construction of renewable energy hydrogen production projects, produce green hydrogen at scale or further synthesize green ammonia and green methanol, and promote the substitution of hydrogen-based chemical raw materials and green fuels. In industrial and civil fields, on the premise of ensuring safety, explore hydrogen-ammonia-methanol co-firing application scenarios. 3. The Beijing Municipal Administration for Market Regulation, the Tianjin Municipal Market Regulation Commission, and the Hebei Provincial Administration for Market Regulation jointly formulated the 'Technical Specification for Carbon Inclusive Project Emission Reduction Accounting - Hydrogen Fuel Cell Vehicles' (DB11/T 3054-2026), released on July 6, 2026, and will be implemented from October 1, 2026. This standard defines the terms and definitions related to hydrogen fuel cell vehicles in the carbon inclusive project emission reduction accounting for the Beijing-Tianjin-Hebei region, and stipulates the basic requirements, greenhouse gas types, project boundaries and crediting periods, accounting methods, data monitoring and management, and key verification points for hydrogen fuel cell vehicle carbon inclusive projects. This document applies to the design, construction, and operation of hydrogen fuel cell vehicle carbon inclusive projects within the administrative region of Beijing-Tianjin-Hebei. Enterprise Developments Shaanxi Hydrogen Energy (Xianyang) Development Co., Ltd. has settled in the Shaanxi Hydrogen Energy Quality Technology Innovation Base. It will subsequently focus on the layout of liquid hydrogen storage system R&D and industrialization projects within the base. Leveraging the platform advantages of the base in inspection and testing, standard research, and industry-university-research collaboration, it will conduct performance testing, safety verification, and process optimization for liquid hydrogen storage equipment, accelerating product iteration for liquid hydrogen storage tanks and complete refueling systems. China Energy Engineering Group (Jiuquan) New Energy Co., Ltd. is a new energy company established by China Energy Engineering Group with a registered capital of RMB 1 million, located in the Economic and Technological Development Zone, Northwest Street Subdistrict, Suzhou District, Jiuquan City, Gansu Province. Its business scope includes permitted projects: power generation business, power transmission business, power supply (distribution) business; power supply operations (projects subject to legal approval can only be carried out after approval by relevant departments). General projects: contract energy management; engaging in investment activities with its own funds; power generation technical services; sales of hydrogen refueling station and hydrogen storage facilities, etc. Shanghai Hyfun Energy Technology Co., Ltd. : Its Shanghai Standardization Pilot Project has been successfully accepted. Companies in the same hydrogen refueling field can directly reuse the mature model established by Hyfun for this standard system, including grounded verification and iterative optimization, significantly reducing standardization construction costs. The complete set of standardized R&D and production processes for hydrogen refueling station equipment can be transferred and reused in hydrogen refueling production scenarios across various regions nationwide. Shanghai Xinran Compressor Co., Ltd.: has successfully signed a hydrogen compressor procurement project with Shandong Taihe Technology Co., Ltd., with both parties having completed the project signing. This customized equipment is designed for the operating conditions of a large PetroChina hydrogen production station, relying on the group's mature liquid-driven compression technology, with advantages in high-pressure output, stable continuous operation, and convenient maintenance. The equipment has completed full-process simulated operating condition testing before leaving the factory, strictly meeting the standards for hydrogen refueling, storage, and transportation in the oil and gas industry. Jiangsu Huade Hydrogen Energy Technology Co., Ltd.: A set of CarNeu-500 500kW large-power hydrogen power generation system has completed manufacturing and factory acceptance testing, and has been officially shipped to Brazil, marking the first project delivery in the South American market. This system is also the largest single-unit power station product delivered by the company to date. Tianneng Hydrogen Energy Technology Co., Ltd.: The first batch of officially operational hydrogen fuel cell buses in Maoming City, Guangdong Province, are equipped with the Chenxing-T80 fuel cell system independently developed by Tianneng Hydrogen Energy Technology Co., Ltd., aiming to support the construction of the local green public transportation system. Guangzhou Shipbuilding Industry Co., Ltd.: The 2000-ton hydrogen fuel cell powered cargo ship 'Yuntao No.1', undertaken by the company and developed by the 605th Research Institute for Guangdong Yuntao Hydrogen Energy Technology Co., Ltd., has been launched in Zhaoqing, Guangdong. The ship is the largest hydrogen-powered multipurpose cargo vessel in China. The ship has an overall length of 69.3 meters, a beam of 13.7 meters, and a maximumdwt of 2,000 mt. The ship uses hydrogen fuel as its power source, paired with an efficient electric propulsion system, achieving zero carbon emissions. It is equipped with an integrated energy management system that intelligently optimizes and precisely distributes energy to ensure high-efficiency energy utilization. Zaihe Automobile Technology (Suzhou) Co., Ltd.: has teamed up with Jieqing Technology to launch a new hydrogen-electric heavy truck. The two parties have reached a strategic partnership to jointly promote the popularization of hydrogen-powered heavy trucks. Patent Applications 1. The Shanghai Institute of Ceramics, Chinese Academy of Sciences (China) published patent CN2025110028, developing a ceramic-based anion exchange membrane with a laboratory test life of 80,000 hours. 2. Johnson Matthey (UK) filed patent WO2025109876, disclosing a Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity close to platinum-based materials. Technology Footprints / Technical Specifications 1. The latest research achievement of Professor Hu Wenbin's team at Tianjin University has been published online in the international top journal Science. The study overcomes a key challenge in the precise preparation of platinum group catalysts, opening up a new technical pathway for the atomically precise preparation of platinum group catalysts. 2. The teams of Tong Lei and Liang Haiwei from the University of Science and Technology of China (USTC), together with Zhang Liang from Tsinghua University, proposed a Carbon Mesopore Depth Engineering (CMDE) strategy. Based on hollow mesoporous carbon spheres to regulate ionomer penetration depth, it solves the inherent contradiction between kinetic activity and oxygen mass transfer in low-platinum fuel cells, developing a PtCo low-platinum catalyst with poisoning tolerance, high mass transfer, and excellent durability, achieving power, activity, and durability targets set by the US DOE at an ultra-low platinum loading of 0.1 mgPt cm⁻². 3. Professor Li Zhipeng's team at Northwestern Polytechnical University innovatively constructed a three-dimensional multi-physics field coupling model for tubular solid oxide fuel cells, systematically revealing the quantitative influence laws of temperature, electrode thickness, porosity, and oxygen domain geometric parameters on the cell's output performance. 4. The National Hydrogen Power Quality Inspection and Testing Center of China Automotive Engineering Research Institute has built a 0-400kW hydrogen-related loaded three-comprehensive vibration test platform and opened it for commercial use, filling the gap in large-power hydrogen-related multi-physics field coupled testing in China. 5. The high specific power cathode closed air-cooled stack technology developed by the team of Academician Chen Zhongwei and Associate Researcher Zhang Meng at the State Key Laboratory of Energy Catalytic Conversion, Dalian Institute of Chemical Physics, has passed the scientific and technological achievement appraisal by the China Petroleum and Chemical Industry Federation. This technology effectively overcomes the industry contradiction between water retention and oxygen mass transfer in air-cooled fuel cells, solving technical challenges including low-humidity performance degradation, carbon corrosion, membrane dry-out/flooding, and high-power thermal management.

Recently, the Baotou Jiuyuan District Hydrogen Production and Storage Integrated Demonstration Project, developed by PowerChina Beijing Engineering Corporation Limited, has officially completed filing, marking the project's entry into the implementation preparation phase. Located in the Jiuyuan Industrial Park in Baotou, Inner Mongolia, the project has a total investment of approximately 1.47 billion yuan and will focus on hydrogen production, hydrogen storage, and supporting R&D and detection system development, creating a hydrogen energy demonstration platform that integrates production, storage and transportation, and scientific research. According to information, the project is planned to commence construction in October 2026 and complete construction by December 2028. The total investment is 1.4695 billion yuan, of which the enterprise's own funds account for 293.906 million yuan and bank loans account for 1.175624 billion yuan. The construction content covers multiple hydrogen energy infrastructure and functional platforms, including a hydrogen production unit with an annual capacity of 7,366 mt, 168,900 standard cubic meters of hydrogen storage facilities , as well as the supporting construction of a hydrogen production testing platform, a hydrogen storage and compression area, a hydrogen quality testing center, a hydrogen energy technology R&D center, and a hydrogen energy science education base, further enhancing the supporting capacity of the entire hydrogen energy industry chain. This filing signifies that the project has completed the preliminary approval procedures, laying the foundation for subsequent legal procedures such as construction permit, safety assessment, and environmental assessment. Once completed, the project will further improve the level of hydrogen energy infrastructure construction in Baotou, strengthen regional capabilities in hydrogen production, storage, and technology R&D, and provide support for the demonstration application and industrial cluster development of the local hydrogen energy industry.

Huahong Technology’s semi-annual results forecast disclosed on the evening of July 13 shows that attributable net profit in H1 2026 is expected to be 320 million yuan to 360 million yuan, up 301.84%–352.08% YoY. As for the reasons for the performance change, Huahong Technology said: In H1 2026, driven by industry policies and improved downstream demand, prices of major rare earth products in China climbed steadily. The company’s rare earth comprehensive utilization segment seized market opportunities, fully leveraged its comprehensive advantages in capacity scale, cost control and process technology, and continuously optimized its supply, production and sales coordination and inventory management strategies, effectively driving the full release of the segment’s profitability. The company continued to deepen its rare earth industry chain layout, steadily expanding its downstream rare earth permanent magnet materials business. Driven by steady demand from end-use sectors such as NEVs, wind power and industrial automation, the segment’s business scale kept expanding, its revenue and product mix continued to improve and it became an important supplement to performance growth. A review of SMM’s Pr-Nd oxide price trend in H1 shows that the Pr-Nd oxide price stood at 609,000 yuan/mt at the start of the year, hit its H1 high of 890,000 yuan/mt by late February, a cumulative gain of up to 46.7% from the start of the year. The key driver was the supply side: spot Pr-Nd oxide supply remained tight, futures surged sharply, suppliers held back from selling amid strong bullish sentiment, and pre-holiday stockpiling purchases by metal companies pushed prices up rapidly. At the same time, supply disruptions from Myanmar ore, domestic separation plants’ production resumptions falling short of expectations and market sentiment created a combined effect of “undersupply + bullish hold-back.” From March to April, however, bearish supply-side news combined with weak demand from traditional end-use sectors pulled Pr-Nd oxide prices back quickly to around 700,000 yuan/mt. Yet the rise in China Northern Rare Earth’s concentrate prices in April, supply support from production suspensions at separation plants and export orders released under the export control extension window together drove prices to rebound slightly. From May, downstream sectors gradually entered the off-season and purchases became more cautious. From late June, the formal implementation of the Mineral Resources Law Implementation Regulations, which list rare earths as strategic minerals, and production cuts by scrap recycling enterprises due to tax invoice issues boosted Pr-Nd oxide prices again, which rebounded to 742,500 yuan/mt on June 30. Huahong Technology announced on June 30 that its controlling shareholder Jiangsu Huahong Industrial Group Co., Ltd., which holds a 32.01% stake, plans to reduce its holdings by no more than 15.0102 million shares (1.99% of total equity) through centralized bidding and block trading within three months after 15 trading days; Director and senior executive Zhu Dayong, who holds a 0.19% stake, plans to reduce his holdings by no more than 365,000 shares (0.05% of total equity) through centralized bidding or block trading within three months after 15 trading days; Director and senior executive Liu Weihua, who holds a 1.52% stake, plans to reduce his holdings by no more than 2.8 million shares (0.37% of total equity) through centralized bidding or block trading within three months after 15 trading days. Huahong Technology previously released its 2025 annual performance report, showing that in 2025, the company achieved operating revenue of RMB7.835 billion, up 40.51% YoY, reaching a three-year high. After posting losses for two consecutive years, the company successfully returned to profitability, with net profit attributable to shareholders of the parent company reaching RMB204 million, up 157.46% YoY. 1. The rare earth segment seized the industry opportunity, acting as the "ballast stone" and "engine" for the turnaround. In 2025, the global rare earth market experienced a major shift in the supply-demand pattern. Driven by surging downstream demand from sectors such as new energy and robotics, combined with rigid supply-side constraints, rare earth product prices continued to rise, with the cumulative annual price increase for core products like Pr-Nd oxide exceeding 35%. The company's Rare Earth Resource Comprehensive Utilization Division keenly captured this industry opportunity, made accurate assessments, and acted accordingly: the company kept pace with the market, optimized procurement and sales strategies, and maximized product value during the price upcycle. Technological transformation yielded results and capacity was released: the previously completed technological transformation and capacity expansion projects at Xintai Technology and Jiangxi Wanhong reached full production, with annual capacity for rare earth oxides stabilizing at 12,000 mt, significantly releasing economies of scale. The company tapped internal potential to reduce costs and enhance efficiency: by optimizing process flows, production costs were strictly controlled and recovery rates were improved. During the reporting period, the company's rare earth resource comprehensive utilization business recorded strong production and sales performance with rising volumes and prices, contributing core profits to the company. 2. All business segments collaborated to build a diversified support structure. While the rare earth resource comprehensive utilization segment led the way, other segments also achieved strong operating results, creating a favorable situation of "blossoming in multiple areas and developing in synergy": Rare Earth Magnetic Materials Segment achieved "dual improvement in volume and quality," with production capacity steadily released across various production sites, providing strong support for market expansion and order fulfillment. High-performance magnetic material products were successfully introduced into the supply chain systems of multiple first-tier NEV automakers, with order scale continuing to expand and client quality and business mix continuously optimized. Construction of the key Baotou production site is progressing in an orderly manner and is planned to enter trial production in Q2 2026, laying a critical foundation for doubling magnetic material capacity. Elevator Parts Segment: The traditional business seized the policy dividends from the "program of large-scale equipment upgrades and consumer goods trade-ins," rapidly responding to domestic demand for elevator installation and retrofitting. Through refined production scheduling and efficiency gains, total annual production grew by over 20% YoY. The segment steadily expanded its second growth curve, with customer acquisition and product development activities for emerging businesses such as automotive electronics and energy storage progressing on schedule. At the same time, the division's "going global" process accelerated, closely following market trends and customer needs. Renewable Resource Equipment Segment: In the face of profound industry changes and intense market competition, the business division continued to increase investment in new product R&D and accelerated its deployment in markets outside China, striving to secure survival and development amid fierce competition. Internally, it focused tightly on cost reduction across supply, production, and sales to enhance operational quality. In the renewable resource operations segment, the end-of-life vehicle dismantling and steel scrap processing businesses constantly explored more diverse and flexible business models, and introduced specialized teams to improve operational quality and efficiency. In 2025, the company's total volume of end-of-life vehicle recycling and dismantling reached a record high. The business models continued to mature, internal management was consistently optimized, and industry synergies were accelerated, laying a foundation for future business development. In 2025, the company also achieved notable results in cross-segment industry synergies. The industrial linkages between the Magnetic Materials Business Division and the Rare Earth Business Division, the industry sharing between the Elevator Business Division and the Magnetic Materials Business Division, and the upstream-downstream resonance between the operations segment and the Rare Earth Business Division demonstrated the wisdom and commitment of the company's entire management team. Regarding the company's main business operations, HuaHong Technology's 2025 Annual Report disclosed: The company has consistently upheld its corporate mission of "Serving the Circular Economy, Creating a Green Life" and steadfastly adhered to its corporate spirit of "Striving, Fact-Based, Innovation, and Dedication," committing to becoming a renewable resource processing equipment manufacturer and a comprehensive resource recycling and utilization operator serving global markets. The company actively deployed renewable resource operation businesses, building a circular economy industry chain centered on end-of-life vehicle recycling and dismantling, extending downstream to the comprehensive utilization of steel scrap, rare earth recycling materials, and other metallic and non-metallic resources, while continuously exploring possibilities for expansion into related industries such as high-end manufacturing and smart manufacturing. During the reporting period, the company's main business was divided into four major segments: "Renewable Resource Equipment and Operations," "High-End Manufacturing of Elevator Parts," "Comprehensive Utilization of Rare Earth Resources," and "Rare Earth Magnetic Materials." HuaHong Technology's corporate development strategy and business plan announced in its 2025 Annual Report indicate: The company's overall development approach is as follows: strengthen product upgrades and technological innovation in renewable resource processing equipment to further consolidate its leading position in the renewable resource processing equipment industry; actively deploy renewable resource operation businesses, vigorously develop the end-of-life vehicle recycling and dismantling business, and use this as a main line to expand the comprehensive recycling and utilization of downstream steel scrap, rare earth scrap, and other metallic and non-metallic resources, building the company into a well-known enterprise in the circular economy sector. It will continue to advance the company's dual-wheel drive strategy, increase R&D, production, and sales of precision elevator parts, thereby building Weilman into a global industry leader in elevator signal systems and safety components; through fund operations, equity investments, mergers and acquisitions, and other capital operation models, accelerate the enhancement of the company's capital operation capabilities, achieve resource optimization and integration, continuously monitor extension opportunities in the upstream and downstream industry chain, and actively explore possibilities for the company's expansion into environmental protection, smart manufacturing, and IoT-related industries, forming new driving forces for company development and further enhancing its core competitiveness and profitability. According to the latest SMM price report: On July 17, the average price of Pr-Nd oxide was 766,000 yuan/mt, down 0.33% from the previous trading day. On July 17, Pr-Nd oxide futures prices declined, while inquiries in the spot market were sluggish. As a result, offers from Pr-Nd oxide suppliers edged lower. Nevertheless, most market participants remain confident about the outlook and showed a strong willingness to hold prices firm, which limited the actual decline in oxide prices, and low-cost supply remained scarce and hard to find. In the metals market, prices also fell. Magnetic material enterprises saw poor new orders, limiting their ability to accept high metal prices; purchases mainly served rigid restocking demand, leading to sluggish inquiries in the metal market. Upstream and downstream sectors remained locked in a stalemate, with the metals segment continuing to face pressure. In the short term, due to the stagnant trading, Pr-Nd product prices are expected to move sideways in a narrow range. Recommended Reading:

JL MAG Rare-Earth's July 15 investor relations activity record shows: 1. Please elaborate on the company's expected H1 2026 performance growth? JL MAG Rare-Earth responded: In H1 2026, the company's management upheld the annual operating policy of "adhering to compliance and integrity, staying customer-oriented, focusing on the magnetic material core business, building 20,000 mt of capacity on schedule, actively deploying embodied robot motor rotors, and scaling new heights." Through measures such as technological innovation, organizational optimization, digitalization, and lean management, while fully ensuring contract fulfillment and delivery to a broad client base, the company achieved steady growth in operating performance. The company continued to consolidate its leading position in the new energy and environmental protection sectors and actively explored emerging markets, with operating revenue expected to grow approximately 30% YoY. In the NEV and parts sector, revenue grew approximately 30% YoY; in the robot and industrial servo motor sector, revenue grew approximately 90% YoY, with small-volume deliveries of embodied robot motor rotors already underway. In H1 2026, net profit attributable to the parent is expected to be 400 million to 460 million yuan, up 31% to 51% YoY; deducted non-recurring net profit attributable to the parent is expected to be 370 million to 430 million yuan, up 57% to 83% YoY. In Q2 2026, net profit attributable to the parent is expected to be 210 million to 270 million yuan, up 43% to 85% YoY and up 7% to 39% QoQ; deducted non-recurring net profit attributable to the parent is expected to be 190 million to 250 million yuan, up 50% to 97% YoY and up 9% to 44% QoQ. 2. What is the latest progress of the company's embodied robot business? JL MAG Rare-Earth responded: Robots liberate human productivity and represent a key direction in the new wave of technological change, with broad industry development prospects. The company is actively cooperating with world-renowned tech companies in the R&D of embodied robot motor rotors and has made small-volume product deliveries. In addition, through direct investment or participation in industrial funds, the company is making strategic deployments in key links of the relevant industry chain to accelerate industrial synergy and commercialization. 3. What about the company's raw material supply and recycling layout? JL MAG Rare-Earth responded: The company has established long-term strategic partnerships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group, and fully leverages the advantage of controlling Yin Hai New Materials to deploy upstream rare earth recycling business, building a diversified rare earth resource supply system. The company was an early mover in rare earth recycling in the industry and currently holds a 51% stake in Yin Hai New Materials. Leveraging the group's manufacturing system, recyclable materials such as magnetic sludge and off-cuts generated during production at the company's various plants can be steadily supplied to Yinhai New Materials for recycling and processing, meeting its production needs while providing strong assurance for the company's raw material supply. In 2025, the company recovered a total of 3,681 mt of rare earth raw materials. Yinhai New Materials has already generated operating revenue and profit contributions. In 2025, it achieved operating revenue of 195 million yuan and net profit of 50.5 million yuan (the above are actual operating results, excluding adjustments related to purchase price allocation). Currently, Yinhai New Materials has passed ISO 14021 certification, and its main products have received certification for 100% recycled content under international standards. 4. Please elaborate on the situation regarding the company's planned acquisition of a partial stake in Baotou Rare Earth Products Exchange Co., Ltd.? JL MAG Rare-Earth responded: In order to implement the company's development strategy and enhance its overall competitiveness, the company plans to acquire, through public listing and transfer on the Inner Mongolia Property Rights Exchange Center, a 9.24% equity interest in Baotou Rare Earth Products Exchange Co., Ltd. (hereinafter referred to as the "Rare Earth Exchange") held by China Northern Rare Earth (Group) High-Tech Co., Ltd. According to the appraisal report issued by Northern Asia Asset Appraisal Co., Ltd., as of the valuation date of December 31, 2025, the total equity value of the Rare Earth Exchange assessed using the market approach was 239 million yuan, a premium of 27.86 million yuan over the net asset book value of 211.14 million yuan as of the valuation date, representing an appreciation rate of 13.19%. The estimated transaction price for the target equity is 22.08 million yuan. Rare earths are the core raw material for producing NdFeB permanent magnet materials. The Rare Earth Exchange serves as a specialized trading platform for rare earth (metal) resources. If this equity acquisition is successfully completed, it will further enhance the company's ability to secure rare earth raw material supply, strengthen its overall competitiveness, and consolidate its market position in the rare earth permanent magnet industry. The company will, in accordance with the principle of cooperative co-construction and mutual benefit, fully leverage its own strengths to assist the Rare Earth Exchange in becoming a national-level rare earth (metal) resource trading platform. This planned acquisition of part of the Rare Earth Exchange's equity constitutes a state-owned asset transfer matter, and the transaction must strictly follow the statutory procedures for state-owned asset transactions, including approvals and listing. The company will monitor progress and fulfill its information disclosure obligations in accordance with relevant regulations. JL MAG Rare-Earth's semi-annual performance forecast released on July 1 showed: Net profit attributable to shareholders of the parent company is estimated to be between 400 million yuan and 460 million yuan in H1 2026, up 31.17% to 50.84% YoY. Regarding the reasons for the performance change, JL MAG Rare-Earth stated in its announcement: 1. In H1 2026, the company's management adhered to the annual operating policy of "upholding legal compliance, maintaining client focus, concentrating on the core magnetic materials business, adding 20,000 tons of capacity on schedule, proactively developing motor rotors for embodied robots, and scaling new heights." Through measures such as technological innovation, organizational optimization, digital transformation, and lean management, while ensuring full performance of contracts and delivery to a broad client base, the company achieved steady growth in its operating results. The company continued to strengthen its leading position in the new energy and environmental protection sectors and actively explored emerging markets. Revenue is expected to rise by approximately 30% YoY. Specifically, in the NEV and auto parts segment, revenue rose by about 30% YoY; in the robotics and industrial servo motor segment, revenue rose by approximately 90% YoY, and embodied robot motor rotor products have already seen small-batch deliveries. 2. During the reporting period, the estimated impact of non-recurring gains and losses on net profit was approximately 32 million yuan, compared with non-recurring gains and losses (after tax) of 70.94 million yuan in the same period last year. 3. During this reporting period, due to A-share and H-share equity incentives and the issuance of H-share convertible bonds, related expenses such as share-based compensation costs and financial expenses totaled approximately 121 million yuan. No such expenses existed in the same period last year. A recently issued announcement by JL MAG Rare-Earth showed that, to implement its development strategy and enhance overall competitiveness, it planned to acquire a 9.24% stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth (Group) High-Tech Co., Ltd. through a public listing and transfer process on the Inner Mongolia Equity Exchange , According to the appraisal report issued by Northern Asia Assets Appraisal Co., Ltd., the total equity value of the Rare Earth Exchange assessed using the market approach as of the valuation reference date of December 31, 2025, was 239 million yuan, representing an increase of 27.8551 million yuan over the net asset book value of 211.1449 million yuan on that date, an appreciation rate of 13.19%. The expected transaction price for the target equity stake is 22.0836 million yuan. In accordance with the Shenzhen Stock Exchange ChiNext Listing Rules, the Company’s Articles of Association, and other relevant regulations, this external investment falls within the approval authority of the CEO. It does not constitute a connected transaction, nor does it constitute a major asset restructuring as defined under the Administrative Measures for Major Asset Restructurings of Publicly Listed Companies. In its 2025 annual report, JL MAG described its main business and product applications as follows: The company is a high-tech enterprise integrating R&D, production and sales of high-performance NdFeB permanent magnet materials, magnetic assemblies, embodied robot motor rotors, and comprehensive recycling of rare earths. It is a leading supplier of rare earth permanent magnet materials for the new energy and environmental protection sectors. Its products are widely used in NEVs and auto parts, energy-efficient inverter air conditioners, wind power generation, robotics and industrial servo motors, 3C electronics, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term and stable partnerships with leading enterprises in these fields both within and outside China. The company has been actively deploying in the robotics field: on one hand, it collaborates with internationally renowned technology companies on the R&D and capacity building for embodied robot motor rotors, with small-batch product deliveries; on the other hand, through direct investment or participation in industry funds, it makes strategic moves in key links of the relevant industry chain to accelerate industrial synergy and commercialization. Regarding the 2026 annual operating plan, JL MAG Rare-Earth stated in its 2025 annual report: The company's 2026 business guideline: "Adhere to legal compliance, uphold customer orientation, focus on the core business of magnetic materials, build new capacity of 20,000 mt as scheduled, actively position in embodied robot motor rotors, and scale new heights." In accordance with the company's business guideline and on the premise of legal compliance, the company will focus on advancing the following efforts: 1. Orderly release of capacity under construction. In 2026, some of the company's projects under construction will gradually release capacity. The specific release progress will comprehensively consider factors such as equipment commissioning and market demand, advancing the commissioning and ramp-up of new capacity in an orderly manner. 2. Continuous enhancement of R&D capabilities. 3. Continuous optimization of product structure. The company will center on client needs, continuously enrich the product portfolio for different application scenarios, and enhance the resilience of the product structure and client stickiness. At the same time, it will steadily advance the layout of projects such as magnetic components and embodied robot motor rotors, equip dedicated production lines and professional teams, and drive the upgrade of small-batch production lines to large-scale, standardized manufacturing and quality systems. 4. Continuous improvement of operational capabilities. 5. Strengthening capital expenditure efficiency. 6. Improving incentive mechanisms and shareholder returns. 7. Advancing ESG system construction. As for the risks the company may face, JL MAG Rare-Earth stated when introducing the risk of price fluctuations in rare earth raw materials: Rare earth metals are the main raw materials for producing NdFeB magnetic steel. China is an important global supply hub for rare earth raw materials. Wild swings in rare earth raw material prices will adversely impact the company's production and sales in the short term. Countermeasures: The company has built manufacturing plants in Ganzhou, Jiangxi, a major production area for heavy rare earth, and Baotou, Inner Mongolia, a major production area for light rare earth. The company has established long-term cooperative relationships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group. At the same time, the company strives to mitigate the adverse impact of rare earth raw material price fluctuations on its operating performance through measures such as pre-purchasing rare earth raw materials based on orders on hand, establishing price adjustment mechanisms with key clients, optimizing formulations, and improving processes. Looking back at the price performance of Pr-Nd alloy in H1 this year, it can be seen that: : The average price of Pr-Nd alloy on June 30 was 905,000 yuan/mt. Compared with its average price of 735,000 yuan/mt on December 31, 2025, the increase in H1 was 23.13%. The annual daily average price of Pr-Nd alloy in H1 this year was 904,650.86 yuan/mt, compared with 529,559.83 yuan/mt in H1 2025, with the semi-annual daily average price increasing by 375,091.03 yuan/mt, for a YoY increase of 70.83%. According to SMM's price quotes, on July 17, the price of Pr-Nd alloy was 920,000-930,000 yuan/mt, with an average price of 925,000 yuan/mt, down 0.54% from the previous trading day. Currently, rare earth market prices are trending slightly downward. Focusing on the Pr-Nd market, Pr-Nd oxide futures prices declined, while spot market inquiries were sluggish. Affected by this, suppliers lowered their offers for Pr-Nd oxide. However, most industry participants remain confident about the market outlook and show a strong willingness to hold prices firm, resulting in a relatively small actual decline in oxide prices, with low-priced goods still scarce and hard to find. Metal market prices also slipped. New orders at magnetic material enterprises were poor, limiting their capacity to accept high-priced metals, with procurement mainly driven by rigid restocking demand, leading to sluggish metal market inquiries. The upstream-downstream stalemate persisted in negotiations, with the metal side continuing to face pressure. It is expected that in the short term, due to sluggish trading activity, Pr-Nd product prices will likely move sideways in a narrow range. Recommended Reads: