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:

On July 17, at the 2026 World AI Conference and High-Level Meeting on AI Global Governance held in Shanghai, the Global AI Innovation Index Report 2026 was released. Regarding global AI development trends, the report shows that: AI infrastructure continues to expand, and energy supply becomes a new variable for future development; the focus of large model industrialisation is shifting from general to vertical, from training to inference, and from single-point technology application to full business process reengineering, with enterprises showing significant heavy asset investment characteristics; global AI governance faces urgent demands, and China promotes global governance and inclusive cooperation in multiple dimensions.

Grain-Oriented Silicon Steel Price Movements Shanghai B23R085 grade: 12,200-12,200 yuan/mt Wuhan 23RK085 grade: 11,700-11,700 yuan/mt This week, China’s grain-oriented silicon steel market remained stable overall, with no notable price fluctuations. Mainstream quotations in the spot market were steady. Steel mills showed strong willingness to hold prices firm. For August, the base price for GO silicon steel was raised by 50 yuan/mt, with no significant rise or fall. Supply-demand conditions were generally stable. Steel mills maintained a steady production pace, resource supply was orderly, and market circulating inventory remained within reasonable range. Downstream end-users such as transformer enterprises purchased as needed, with just-in-time procurement dominating. The overall transaction pace was moderate. Market trading sentiment was cautious and rational. Traders mostly sold at stable prices, taking a wait-and-see stance, and price concessions or adjustments were rare. Looking at market fundamentals, bullish and bearish factors are currently balanced. The cost side provides bottom support, while the demand side shows no significant boost or weakening signs. Overall, the GO silicon steel market is expected to continue its stable pattern next week, with prices likely to remain steady. Transactions will mostly be just-in-time procurement against a wait-and-see stance, with no clear upward or downward trend for now. Data source statement: Data other than publicly available information is based on public information, market communication, and SMM’s internal database models, processed by SMM. It is for reference only and does not constitute decision-making advice. Note: This article is original content of this official account. For any needs regarding reproduction, whitelisting, or cooperation, please contact us. Without permission, no one may reproduce, modify, use, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above content to any third party or authorize any third party to use it. Once discovered, SMM will pursue legal liability for infringement, including but not limited to requiring the assumption of contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses.

On July 14, data from the General Administration of Customs showed that China exported 10.32 million mt of steel in June 2026, down 21,000 mt MoM or 0.2% MoM. Cumulative exports from January to June reached 54.874 million mt, down 5.6% YoY. In June 2026, China imported 441,000 mt of steel, down 10,000 mt MoM or 2.2% MoM. Cumulative imports from January to June were 2.696 million mt, down 11.3% YoY. Table 1: Overview of Steel Imports and Exports, January-June Source: SMM Steel Exports Remained High in June According to SMM's June export production schedule survey, planned HRC export volume for the month stood at 1.05 million mt, slightly lower than actual exports in May, with a relatively limited decline. Meanwhile, SMM export order data showed that steel export orders remained high in mid-April, laying the foundation for high steel exports in May-June. Table 2: China’s Total Steel Exports Source: SMM Steel Imports Stayed Low in June On the import side, steel imports in June were 441,000 mt, down MoM. January-June cumulative imports were 2.696 million mt, down 11.3% YoY. Net steel exports reached 52.178 million mt. Short-Term Steel Export Outlook 1. Global Manufacturing Declined MoM; Domestic New Export Orders Recovered Marginally According to J.P. Morgan global PMI data, the global manufacturing PMI stood at 52.2 in June 2026, still in expansion territory but with momentum slowing for a second consecutive month, mainly due to earlier stockpiling to avoid Middle East shipping risks, while preventive stockpiling demand waned in June. In addition, end-use consumer goods demand in Europe and the US was weak, global export orders fell below the 50 mark, and the ASEAN composite PMI dropped 1 point MoM, with regional sentiment cooling significantly. China's manufacturing new export orders index at 50.1% in June, up 1.5 percentage points MoM, pointed to a marginal recovery in external demand. 2. Supply Outside China Rose MoM; Overall Supply Pressure Intensified Global crude steel production fell 0.3% YoY to 157.9 million mt in May 2026. In China, against a severe backdrop of finished steel destocking falling short of expectations and losses, steel mills proactively brought forward maintenance plans to defensively control output. Excluding China, production in the rest of the world rose 28.8% YoY. The Asian market was unusually resilient, with India's crude steel production recording 14.1 million mt. Meanwhile, Vietnam's production surged 27.2% YoY, driven not by a stress response to trade barriers but by downstream manufacturing entering a concentrated stockpiling phase, coupled with genuine demand from infrastructure projects rushing to meet deadlines ahead of the monsoon season. In contrast, production in the Middle East plunged 19.4% YoY in May, with previous war damage from geopolitical conflicts and wartime energy controls remaining an invisible and heavy ceiling suppressing production resumptions in the region. Production regions in Europe and the US (the US up 9.2% YoY, Germany up 7.3% YoY) maintained relatively active operating rates, supported by new-type data center infrastructure and anticipatory moves to preempt regional trade barriers such as the EU's Carbon Border Adjustment Mechanism (CBAM). It is reported that the Middle East recently started offering billet exports and concluded deals. Meanwhile, increased production in India, Vietnam and others also put some pressure on domestic exports. Figure 1: Global Crude Steel Production by Region Source: SMM 3. Price Advantage Narrowed Significantly; Pressure on Export Orders Intensified As of July 16, 2026, HRC export quotations (FOB) for India, Turkey, and the CIS were $510/mt, $408/mt, and $530/mt, respectively, while China's HRC export quotation (FOB) was $493/mt. Currently, China's HRC export quotations are $17/mt, $115/mt, and $37/mt lower than those countries. China's steel export price advantage narrowed significantly MoM from June. The overseas market remained in the off-season, and low-price export promotion remained the main channel for them to relieve domestic pressure. In China, prices remained relatively firm supported by costs. The price spread between Chinese and overseas markets narrowed markedly, intensifying pressure on export orders. Figure 2: HRC Quotations in Major Global Markets Source: SMM 4. Export Orders Remained at Low Levels in May-June; A Sudden Increase Is Difficult According to SMM's latest steel mill export order schedule, planned HRC exports for this month totaled 1.059 million mt, up 5.2% MoM from actual exports last month. SMM's steel export order data showed that due to the ongoing overseas off-season and consecutive overseas price declines, steel export orders in May-June declined significantly MoM from the previous period. Figure 3: SMM Steel Export Order Volumes Source: SMM 5. Anti-Dumping Cases with Impact Increased in June New anti-dumping related cases in China increased in June, involving products such as steel pipes, coated sheets, cold-rolled, stainless steel, hot-rolled, and medium-thickness plates. Details of the cases and their impact volumes are shown in the table below. Table 3: New Anti-Dumping Cases in June Source: SMM Overall, against the backdrop of the overseas off-season coupled with a narrowing price advantage, the weakness in earlier export orders may gradually be reflected in export data. SMM expects that actual steel exports in July will face some downward pressure. However, as overseas prices continue to pull back and hit bottom, some new procurement demand may be released. Figure 4: Steel Exports and Forecast, 2024-2026 Source: SMM Source Declaration: All data other than publicly available information is processed by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute any decision-making advice. Note: This article is original content of this official account. If you need to reprint, whitelist, or cooperate, please contact us. Without permission, no one may reprint, modify, use, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above content to any third party or permit any third party to use it. Otherwise, Shanghai Metals Market (SMM) will pursue legal liability for infringement, including but not limited to claiming contractual breach of contract liability, disgorgement of unjust enrichment, and compensation for direct and indirect economic losses. Scan to Get Free Information

The year 2026 marks the first year of the 15th Five-Year Plan. Against the backdrop of intensifying global macro volatility and China’s deepening high-quality development, the zinc industry is undergoing profound changes: tightness on the ore side and the release of smelting capacity are creating structural tension, diverging inventories in and outside China reflect the complex dynamics of supply-demand rebalancing, and technological innovation is emerging as a key driving force to resolve conflicts and reshape the landscape. Key areas under the 15th Five-Year Plan, such as new energy and new-type infrastructure, are injecting fresh momentum into traditional zinc consumption, while green, low-carbon development and the circular economy are also accelerating the restructuring of industrial logic, driven by technological innovation. With the joint support of upstream and downstream enterprises across the zinc industry chain, industry associations, and all relevant parties, the 2026 SMM Zinc Industry Conference and the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum, the 14th Zinc Salt, Zinc Oxide and Zinc Secondary Resources Development Forum, and the Cast Zinc Alloy Development Forum is about to be held on August 6–8 in Qingdao, Shandong. The conference, themed “Gathering Zinc Momentum, Building the Zinc Industry, Embarking on a New Journey,” will be driven by dual engines of macro perspectives and fundamental analysis, closely following the main theme of high-quality development under the 15th Five-Year Plan, and focusing on four major dimensions: macro policies, supply-demand pattern, global trade, and technological innovation. It will leverage technological breakthroughs to drive cost reduction and efficiency improvement, address market fluctuations through collaborative innovation, and jointly draw a new blueprint for the high-quality and sustainable development of the zinc industry. Shanghai Eagle Metal Materials Co., Ltd. will make a grand appearance at this event to discuss industry development trends with peers and jointly propel the zinc industry to new heights. Click to sign up now, witness and participate in this momentous and far-reaching industry gathering, and together create a brilliant new chapter! Eagle Metal—Eagle Metal is one of the world’s major commodity traders. Established in 2000 and headquartered in Shanghai, China, the group has branches in Singapore, Hong Kong, Thailand and other locations. The group primarily engages in services and operations along the non-ferrous metals industry chain. Its business scope covers copper, aluminum, lead, zinc, tin, nickel, silver, platinum and palladium, copper concentrates, lead concentrates, zinc concentrates, and more. Business activities include domestic trade in multiple commodities and international import and export, with operations spanning mainland China, Singapore, Hong Kong, London, Chicago, Thailand, South America, Africa and other regions. In addition to its core business, the group provides upstream and downstream clients with integrated trade, warehouse financing, logistics and transportation, and other risk management services. Adhering to the business philosophy of “model innovation, win-win cooperation,” the company has established enduring and in-depth partnerships with numerous large domestic and international smelters, mines, trading enterprises, and well-known banks. It has also repeatedly received honors such as “Contract-honoring and Trustworthy Unit,” “Excellent Partner,” “Best Partner,” and “Most Valuable Customer” awarded by national and Shanghai municipal authorities. Eagle Metal – In the course of its development, Eagle Metal has upheld the corporate philosophy of "virtue carries all things, and constant dripping wears away the stone"; it has remained true to its original aspiration and persisted in innovation, fueling growth through innovation and advancing development through growth. Keeping pace with the global economy, it actively participates in competition both in and outside China. Through outstanding quality services, it enhances client value and corporate value, and with firm steps, it contributes all its strength to the advancement of the non-ferrous metal industry! Contact Information Zinc Business Contact: Miao Hanying 15021533905 Zinc Business Contact: Shi Yang 18004502057 Long press or scan the QR code to register now 2026 SMM Zinc Conference

Overseas rare earth markets diverged this week between light and heavy types. Driven by the uptrend in China, terbium oxide and terbium metal prices rose, while light rare earths remained stable. Trading-wise, heavy rare earths saw few transactions due to export controls. On the industrial front, U.S. companies accelerated domestic recycling and purification, while European and Japanese firms advanced R&D on magnetic material recycling and rare-earth-free alternative technologies. Meanwhile, Indo-Pacific and South Korean players actively restructured supply chains, and resource development and processing projects were intensively launched in locations such as Malaysia, Thailand, and Brazil. The global “de-risking” layout for rare earths continued to deepen.