[SMM News Flash] According to reports, based on its operational and strategic development needs, Lizhong Group's second-tier wholly owned subsidiary, Hebei New Lizhong Nonferrous Metals Group Co., Ltd., has established a third-tier wholly owned subsidiary in Thailand. The new company in Thailand will mainly engage in the production and sales of cast aluminum alloy ingot/liquid and other businesses. Lizhong Group stated that, as a core automobile manufacturing and export hub in Southeast Asia, Thailand's ongoing electrification transition continues to drive growth in demand for lightweight materials, with significant location and trade advantages. After the project is put into operation, it will further optimize the company's global security system for secondary aluminum raw material, impro

Lizhong Group announced that the company achieved operating revenue of 32,139.17 million yuan in 2025, an increase of 17.96% compared to the same period last year. In 2025, the cumulative net profit attributable to shareholders of the listed company was 889.17 million yuan, an increase of 25.75% year-on-year. Benefiting from the recovery in market prices, coupled with the introduction of strategic investors, the company's lithium hexafluorophosphate business saw steady growth in capacity utilization and order volume. Starting from November, the business returned to profitability, with sustained positive momentum in profitability.

Lizhong Group announced that the company achieved operating revenue of 32,139.17 million yuan in 2025, up 17.96% YoY. The cumulative net profit attributable to shareholders of the publicly listed firm in 2025 was 889.17 million yuan, up 25.75% YoY. The company's LiPF6 business benefited from market price recovery and the introduction of strategic investors, with capacity utilization rate and orders growing steadily; it turned profitable starting in November, and profitability continues to improve.

Lizhong Group disclosed its 2025 preliminary financial results on the evening of February 26. The company achieved operating revenue of 32.139 billion yuan, a year-on-year increase of 17.96%; net profit attributable to the parent company was 889 million yuan, a year-on-year increase of 25.75%. According to the data, the company's main businesses are functional intermediate alloy new materials, recycled cast aluminum alloy materials, and aluminum alloy wheel products.

Rare earth permanent magnet concept stocks have been repeatedly active. As of Friday's close, BGRIMM Technology, which focuses on the R&D, production, sales, and services of mining and metallurgical equipment as well as magnetic materials, achieved five consecutive daily limit-ups. Huayang New Materials, whose subsidiary's business scope includes the recycling and utilization of high-magnetic rare earth materials, recorded three consecutive daily limit-ups. On the news front, the Ministry of Commerce stated that it reviews export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications, and will continue to strengthen the approval process for compliant applications. Ma Yan, an analyst at Caida Securities, pointed out in a research report on April 1 that assuming shipments of humanoid robots reach 890,000 units by 2030, the demand for rare earth permanent magnet materials in the humanoid robot sector is projected to reach 3,115 mt. The explosive growth in the market size of humanoid robots is expected to bring broad incremental space to the rare earth permanent magnet industry . Li Chao and Wang Qinyang, analysts at Guojin Securities, pointed out in a research report on February 20 that rare earth permanent magnets, as excellent magnets that currently balance performance and cost, are the top choice for magnetic components in humanoid robots and magnetic materials for low-altitude aircraft , and the dividends from industry chain integration are expected to gradually materialize. Emphasis should be placed on the layout opportunities brought about by "supply-side reform," integration, and the catalyzing effect of humanoid robots. Choice data shows that rare earth permanent magnet concept stocks that received institutional surveys in the past two months (April 14 - June 14) include Sinomine Resource Group, Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Yahua Group, Zhenghai Magnetic Material, DMEGC, Lizhong Group, Zhongju Hi-Tech, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Xinlaifu, China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., Goldwind Science&Technology, Instyle, GEM, Wuchan Zhongda Group, NCS Testing Technology Co., Ltd., Jintian Copper, Yian Technology, Advanced Powder Materials, and Sinosteel NMC . The specific situations are as follows: Among the above-mentioned rare earth permanent magnet concept stocks that received institutional surveys, publicly listed firms that have clearly responded regarding their "rare earth permanent magnet" related business situations mainly include Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Zhenghai Magnetic Material, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Instyle, GEM, and Jintian Copper . Shenghe Resources disclosed an investor relations activity record on June 10, stating that the company maintains a close and good market cooperation relationship with major domestic rare earth concentrate suppliers . In addition, the company has signed long-term supply agreements for rare earth concentrates with Sichuan Hedi Mining, US MP Materials, Peak Rare Earths, and others, establishing a diversified supply channel for rare earth concentrates and providing sufficient raw material guarantees for the company's downstream businesses such as rare earth smelting and separation. Additionally, the imports of ore from Myanmar have been significantly influenced by the local situation, exhibiting fluctuating characteristics. The company will continue to closely monitor the situation of ore from Myanmar. During a survey conducted by institutions on June 13, JL MAG Rare-Earth stated that after the implementation of export control measures on medium-heavy rare earth-related items, the company had initiated export declaration work in accordance with relevant national regulations. It had also successively obtained export licenses issued by national authorities. The export regions include the US, Europe, and Southeast Asia, among others. The company exports magnetic materials, components, and motor rotors in compliance with laws and regulations. The company has established production facilities in Ganzhou, Jiangxi, a major production area for heavy rare earths, and in Baotou, Inner Mongolia, a major production area for light rare earths. The company has established long-term strategic cooperative relationships with major suppliers of rare earth raw materials, including China Northern Rare Earth Group and China Rare Earth Group. In 2024, the procurement amount from these two groups accounted for 63% of the company's total annual procurement. On May 21, Xiamen Tungsten disclosed the record of investor relations activities, indicating that since the second half of 2024, rare earth prices have generally shown a steady upward trend. If this trend continues, the price center of rare earths will gradually rise, and the fluctuation range will narrow compared to the past. In terms of magnetic material capacity layout, Jinlong Rare Earth has achieved an annual production capacity of 12,000 mt at its Changting base and is currently planning new capacity projects at its Changting and Baotou bases. Upon full commissioning of these two projects, Jinlong Rare Earth's magnetic material capacity will reach 22,000 mt. At the performance briefing on May 15, Zhenghai Magnetic Material, when answering the question "What rare earth permanent magnet projects are currently under construction?", stated that the construction of the third phase of 6,000 mt capacity at the company's Nantong base will adjust the investment pace and method in a timely manner based on changes in the external economic environment. The company's sales of high-performance NdFeB permanent magnet materials have achieved seven consecutive years of growth. During a survey conducted by institutions on May 23, Zhong Ke San Huan stated that the current export control measures on medium-heavy rare earth-related items mainly involve the company's NdFeB permanent magnet material products containing dysprosium and terbium. Exporting these products requires declaration and approval before they can be exported. The company has proactively taken measures to initiate export declarations in accordance with relevant regulations at the earliest opportunity, and has already obtained export licenses for a small number of orders. The company's main products are NdFeB permanent magnet materials, which are currently widely used in automobiles (including NEVs), consumer electronics, industrial robots, computers, energy-efficient home appliances, wind power, industrial motors, and other fields. Longi Magnet disclosed the record of investor relations activities on May 27, stating that building a capacity of 60,000 mt for permanent ferrite magnetic tiles has always been a medium and long-term goal . The company will make more optimizations in capacity layout integration, existing capacity utilization, and efficiency improvement, striving to increase capacity through low-cost expansion methods and controlling the pace of capacity release based on downstream demand. The technological transformation and upgrading work at the production sites in Lujiang, Jinzhai, and Vietnam have all shown initial results, and the expected capacity this year will reach 50,000 mt. China Northern Rare Earth stated during an institutional survey on May 21 that the company holds an optimistic view on the future price trend of rare earths . Currently, the upstream supply of rare earths is showing a steady growth trend, thanks to the country's scientific planning and rational development of rare earth resources, as well as the continuous progress in rare earth mining technology. Although the release speed of downstream consumer demand has not met expectations to a certain extent, the fluctuation range of mainstream product prices has significantly narrowed, indicating that the supply-demand relationship is gradually moving towards balance. This balance not only helps stabilize market expectations but also provides a solid foundation for the healthy development of the rare earth industry. On the demand side, the continuous growth in demand for rare earth products in fields such as new energy and high-tech has become a strong driving force for the development of the rare earth industry. During an institutional survey on June 12, Instyle stated that the company's products are mainly delivered through domestic bonded zones and domestic sales channels, and do not involve direct exports to the United States. Export control measures affect businesses involving products containing medium-heavy rare earths dysprosium and terbium, and the company has been handling relevant procedures in compliance with national laws, regulations, and customer order requirements . The company's core competitive advantages mainly lie in its advantages in magnetic circuit design and production manufacturing processes, its advantages in high-quality customer resources, and its advantages in having the origin of rare earths and lower electricity costs in Baotou. GEM stated at the earnings presentation on May 6 that the company has currently conducted technological reserves in the recycling of permanent magnetic materials in the dismantling and recycling field and has reserved the wet process for recycling and synthesizing rare earth oxides. The company has been continuously monitoring the market for rare earth permanent magnets and actively developing the recycling and utilization of rare and scattered metals such as germanium, gallium, indium, and rare earths, as well as expanding the recycling of energy metals like nickel, cobalt, and lithium. Jintian Stock disclosed the record of investor relations activities on May 23, stating that the company has been engaged in the magnetic materials business since 2001. Currently, the company has two magnetic material production sites in Ningbo and Baotou . The first phase of the Baotou site has been put into operation, and the company's annual capacity for rare earth permanent magnets has increased by 4,000 mt on the original basis. The company's rare earth permanent magnet products are widely used in multiple high-end fields, including NEVs, wind power generation, high-efficiency energy-saving motors, robots, consumer electronics, and medical devices.

SMM News on June 11: In the morning of June 11, the auto parts sector surged rapidly, with the index rising nearly 3% at one point during the trading session, and individual stocks experiencing a wave of strong limit-up rallies. By the end of the day's trading, the auto parts index had risen by 2.32%. Among individual stocks, 10 stocks including Tongxin Transmission, Meichen Technology, Dishengli, and Jinqilin hit their daily limits, while multiple stocks such as Zhejiang Huayuan, Xiangyang Bearing, and Lizhong Group followed suit with gains. The reasons behind all these developments are closely tied to the collective "voices" of dozens of automakers yesterday and today. It is reported that on the evening of June 10, four automakers, namely FAW Group, Dongfeng Motor, GAC Group, and Seres, issued separate statements committing to "payment terms not exceeding 60 days." On June 11, a host of automakers including BYD, Great Wall Motor, Xiaomi Auto, XPeng Motors, Chery Group, Leap Motor, BAIC Group, Li Auto, and NIO also followed suit, issuing announcements mentioning their decision to "unify supplier payment terms to within 60 days." In the announcements of these enterprises, many mentioned their active response to the "Regulation on Ensuring Payments to Small and Medium-sized Enterprises" issued by the State Council. Public information shows that the "Regulation on Ensuring Payments to Small and Medium-sized Enterprises" was revised and adopted at the 43rd executive meeting of the State Council on October 18, 2024, and came into effect on June 1, 2025. It clearly stipulates that large enterprises shall not exceed 60 days for the payment of project funds. Meanwhile, they shall not force small and medium-sized enterprises to accept non-cash payment methods such as commercial bills of exchange to extend payment terms in disguise. Undoubtedly, the automakers' collective response to the decision to "unify supplier payment terms to within 60 days" is undoubtedly a significant positive for auto parts enterprises. On the one hand, the shortening of automakers' payment terms allows parts suppliers to receive payments as quickly as possible, accelerating the speed of capital inflows. Suppliers can use the recycled funds to purchase raw materials, avoiding shortages in raw material supply due to capital constraints that could affect production schedules. This can expedite the capital turnover of auto parts enterprises and reduce the risk of production halts caused by financial constraints. Additionally, it can enhance the operational stability of auto parts enterprises and promote the coordinated development of the entire automotive supply chain. CITIC Securities commented on this, stating that automakers' active response to policies indicates that the automotive industry has entered a stage of high-quality development. Dai Chang from Guohai Securities pointed out that under the catalysis of the trade-in policy in 2024, passenger vehicle sales exceeded expectations. With the continuation of the trade-in policy in 2025, it will support the upward trend in automotive consumption. The industry is expected to remain highly prosperous throughout the year, and we continue to be optimistic about opportunities in the auto sector, particularly high-quality parts suppliers with upward operating cycles. Additionally, according to information from Cailian Press, data released by the China Automobile Manufacturers Association (CAAM) showed that in May 2025, China's automobile production and sales reached 2.649 million units and 2.686 million units, respectively, up 1.1% MoM and 3.7% MoM, and up 11.6% YoY and 11.2% YoY. From January to May, automobile production and sales totaled 12.826 million units and 12.748 million units, respectively, up 12.7% YoY and 10.9% YoY. In terms of new energy vehicles (NEVs), production and sales in May reached 1.27 million units and 1.307 million units, respectively, up 35% YoY and 36.9% YoY. NEV sales accounted for 48.7% of total new vehicle sales. From January to May, NEV production and sales totaled 5.699 million units and 5.608 million units, respectively, up 45.2% YoY and 44% YoY. In terms of exports, China exported 551,000 vehicles in May, up 6.6% MoM and 14.5% YoY. From January to May, total vehicle exports reached 2.49 million units, up 7.9% YoY. SMM summarized the key points of the announcements from several automakers as follows: [FAW Group: Fulfilling Responsibilities, Building a Healthy Supply Chain Ecosystem] FAW Group announced that as a large state-owned automotive enterprise group, it has always regarded suppliers as its closest partners, adhering to the principles of shared destiny and mutual benefit to achieve high-quality development together. Recently, national ministries and commissions, including the Ministry of Industry and Information Technology (MIIT) and the State-owned Assets Supervision and Administration Commission (SASAC), have issued a series of deployment requirements to ensure the stability of the industrial and supply chains and promote high-quality development of the automotive industry. FAW Group has resolutely implemented these requirements, continuously optimizing its internal procurement and financial settlement processes to maintain a healthy and stable market economic order. Firstly, it has improved mechanisms and strengthened execution by clarifying payment terms and methods, setting a "60-day payment" requirement for affiliated units, and enhancing financial supervision and process management. Secondly, it has optimized processes to improve efficiency by strengthening internal coordination among departments such as procurement and finance, further streamlining approval processes, and ensuring smooth payment procedures. Thirdly, it has leveraged technology for precise control by fully utilizing digital cloud workbenches to achieve real-time monitoring of nodes throughout the entire process, including contract execution, invoice matching, and payment applications, ensuring that all payables are paid on schedule. [Dongfeng Motor: Fulfilling Central State-Owned Enterprise Responsibilities, Unifying Payment Terms to Within 60 Days!] On June 10, to thoroughly implement the spirit of national policies and support the healthy development of small and medium-sized enterprises, Dongfeng Motor Corporation (hereinafter referred to as Dongfeng Motor) officially announced that it would unify payment terms to within 60 days. This move is an important initiative by Dongfeng Motor to actively respond to the Regulations of the State Council on Ensuring Payments to Small and Medium-sized Enterprises, aiming to drive efficient capital flow between upstream and downstream enterprises through concrete actions and facilitate the coordinated development of the industry chain. [GAC Group: A Solemn Commitment on Supplier Payment Terms] GAC Group has consistently been committed to providing customers with safe and high-grade products and services. The healthy development of the supply chain system is the foundation for ensuring product safety and quality. To this end, GAC Group will, as always, adhere to a supplier payment term of no more than 60 days to ensure efficient capital turnover in the supply chain. It will work hand in hand with upstream and downstream partners to jointly promote the high-quality development of the industry. [Seres: An Initiative on Jointly Promoting High-Quality Industry Development] Seres actively responds to the Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development issued by the China Association of Automobile Manufacturers. The achievements made by China's NEV industry have not come easily. We call for a more orderly marketization, with enterprises strengthening self-discipline to jointly promote the high-quality development of the industry. We are willing to continue working hand in hand with industry peers to jointly maintain a fair and orderly market environment and build a new era of intelligent electric mobility! Seres is actively promoting product integration and intelligent manufacturing clustering, effectively facilitating the coordinated development of upstream and downstream enterprises in the industry chain and enhancing the competitiveness of the entire industrial cluster. Seres has been making payments in accordance with contractual agreements with suppliers, with a normal payment term of 60 days, achieving a win-win situation for both OEMs and suppliers. [BYD: Fulfilling Social Responsibilities and Promoting High-Quality Industry Development] To implement a series of deployment requirements made by the state and relevant ministries on ensuring the stability of the industry chain and supply chain and promoting the high-quality development of the automotive industry, and to support the healthy development of small and medium-sized enterprises, BYD Auto announced that it will unify supplier payment terms to within 60 days. BYD stated that it will drive the high-quality development of China's automotive industry through concrete actions. In the future, BYD Auto will continue to promote the steady and long-term development of China's automotive industry through technological innovation and management optimization, working hand in hand with upstream and downstream partners. [Great Wall Motor: A Commitment to Unifying Payment Terms to Within 60 Days] To thoroughly implement the Regulations of the State Council on Ensuring Payments to Small and Medium-sized Enterprises, Great Wall Motor Co., Ltd. announced that it will unify supplier payment terms to within 60 days to ensure the stability of the automotive industry chain and supply chain, promote fair market competition, stimulate innovation vitality, and improve development efficiency. [Xiaomi Auto: Unifying Supplier Payment Terms to Within 60 Days] Xiaomi Auto announced on its official Weibo account that it will resolutely implement the deployment requirements made by the state and relevant competent departments on promoting the high-quality development of the automotive industry and ensuring supply chain stability, unifying supplier payment terms to within 60 days. [Chery Group: Unifying Supplier Payment Terms to Within 60 Days] Chery Group stated that recently, national ministries and commissions, including the Ministry of Industry and Information Technology (MIIT) and the State-owned Assets Supervision and Administration Commission (SASAC), have made a series of deployment requirements to ensure the stability of the industry chain and supply chain and promote the high-quality development of the automotive industry. Chery Group is resolutely implementing these requirements and has decided to unify supplier payment terms to within 60 days starting from June 10, in order to accelerate the capital turnover efficiency of the industry chain and ensure the stability of the industry chain and supply chain. [Leap Motor: Will Continue to Adhere to the "60-Day Payment" Principle to Ensure Efficient and Smooth Payment Processes] Leap Motor posted on Weibo that it will continue to adhere to the "60-Day Payment" principle, with zero arrears as the standard, streamline the approval process, continuously strengthen departmental collaboration, and ensure efficient and smooth payment processes. [Li Auto: Will Continue to Implement Payment Terms Within 60 Days] Li Auto posted on Weibo that it has always been committed to creating safer, more comfortable, and more convenient products and services for users. Li Auto will continue to implement payment terms within 60 days and work with industry partners to jointly promote the high-quality development of China's automotive industry. [NIO: Will Continue to Implement Payment Terms Within 60 Days] NIO posted on Weibo that it is committed to becoming a user enterprise leading in technology and experience, existing for user satisfaction, developing ultimate products through technological innovation, providing services that exceed expectations, and building a community for common growth. The healthy development of the supply chain system is the foundation for ensuring product quality and enhancing user experience. NIO will continue to implement payment terms within 60 days and work with upstream and downstream partners to jointly promote the high-quality development of China's automotive industry, creating a sustainable and better future together. [XPeng Motors: Will Unify Payment Terms to Within 60 Days] XPeng Motors posted on Weibo that in order to actively respond to and implement a series of deployment requirements from the state and relevant departments aimed at promoting the high-quality development of the automotive industry, ensuring the stability of the industry chain and supply chain, and supporting the healthy development of small and medium-sized enterprises, XPeng Motors has announced that it will unify payment terms to within 60 days. As a "pioneer in future mobility," XPeng Motors will actively fulfill its corporate social responsibility and commitment, striving to empower the industry chain and upstream and downstream partners through AI technological innovation, and jointly promoting the steady and far-reaching high-quality development of China's automotive industry. [BAIC Group: Strictly Adhering to Settlement Within 60 Days for All Qualified Partners Starting Today] BAIC Group posted on Weibo that starting today, it will strictly adhere to settlement within 60 days for all qualified partners, comprehensively cancel unreasonable settlement methods such as commercial acceptance bills that increase the financial pressure on suppliers, and alleviate the cash flow pressure on small and medium-sized suppliers. Below are screenshots of announcements from major automakers: