On July 3, JL MAG Rare-Earth's share price rose, closing 3.79% higher at 34.25 yuan per share. On the news front, JL MAG's H1 performance forecast released on July 1 showed: net profit attributable to parent for H1 2026 is expected to be 400 million to 460 million yuan, up 31.17% to 50.84% YoY. Regarding the reasons for performance changes, JL MAG stated in an announcement: 1. In H1 2026, the management adhered to the annual operating policy of "adhering to compliance and regulations, being customer-oriented, focusing on the magnetic materials main business, constructing 20,000 mt of new capacity on schedule, actively deploying embodied robot motor rotors, and reaching new heights." Through measures including technological innovation, organizational optimization, digitalization, and lean management, the company ensured full contract fulfillment and delivery to customers while achieving steady business growth. The company continued to strengthen its leading position in new energy and environmental protection sectors and actively explored emerging markets, with revenue expected to increase by about 30% YoY. Specifically, revenue from the NEV and auto parts sector rose about 30% YoY; in the robot and industrial servo motor sector, revenue rose about 90% YoY, with small-batch deliveries of embodied robot motor rotors already underway. 2. During the reporting period, non-recurring gains and losses are expected to impact net profit by approximately 32.00 million yuan, compared to 70.9405 million yuan (after tax) in the same period last year. 3. In this reporting period, due to A-share and H-share equity incentives as well as H-share convertible bond issuance, total related share-based payment expenses and financial expenses amounted to about 121 million yuan. There were no such expenses in the same period last year. A recent JL MAG announcement shows: to implement the company's development strategy and strengthen comprehensive competitiveness, it plans to acquire a 9.24% equity stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth, through public listing and transfer on the Inner Mongolia Property Rights Exchange Center . According to the valuation report issued by Northern Yashi Asset Evaluation Co., Ltd., as of the valuation date December 31, 2025, the total equity value of the exchange under the market approach was 239.00 million yuan, representing an appreciation of 27.8551 million yuan, or 13.19%, over the net asset book value of 211.1449 million yuan. The expected transaction price for the subject equity is 22.0836 million yuan. Under the Shenzhen Stock Exchange ChiNext Listing Rules and the company's articles of association, this external investment falls within the CEO's approval authority. This investment does not constitute a related party transaction, nor does it constitute a material asset restructuring as defined in the *Administrative Measures for the Material Asset Restructuring of Publicly Listed Firms*. Regarding the company's main business and product applications, JL MAG Rare-Earth introduced in its 2025 annual report: 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 utilization of rare earth recycling. It is a leading supplier of rare earth permanent magnet materials in the new energy and environmental protection sectors. The company’s products are widely used in NEVs and auto parts, energy-saving variable-frequency air conditioners, wind power generation, robotics and industrial servo motors, 3C, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term and stable cooperative relationships with industry leaders both in and outside China in these sectors. The company actively positions itself in the robotics field. On one hand, it collaborates with internationally renowned technology companies to conduct R&D and capacity building for embodied robot motor rotors, with small-batch product deliveries already made. On the other hand, through direct investment or participation in industry funds, it strategically lays out key links in the relevant industry chain to accelerate industrial synergy and commercialization. Regarding the operating plan for 2026, JL MAG Rare-Earth introduced in its 2025 annual report: The company's operating policy for 2026: "Adhere to legal compliance, adhere to client orientation, focus on the magnetic material main business, build 20,000 mt of new capacity on schedule, actively position embodied robot motor rotors, and scale new peaks." Based on this operating policy and under the premise of legal compliance, the company will focus on advancing the following tasks: 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 consider factors such as equipment commissioning and market demand, advancing the commissioning and ramp-up of new capacity in an orderly manner. 2. Continuous improvement of R&D capabilities. 3. Continuous optimization of the product mix. The company will continue to enrich its product matrix for different application scenarios based on client needs, enhancing product structure resilience and client stickiness. Meanwhile, it will steadily advance the layout of projects such as magnetic assemblies and embodied robot motor rotors, equip dedicated production lines and professional teams, and drive the upgrade of small-batch pilot 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 the construction of the ESG system. Regarding potential risks the company may face, when introducing the risk of rare earth raw material price fluctuations, JL MAG Rare-Earth stated: Rare earth metals are the main raw materials for producing NdFeB magnets. China is an important global supply base for rare earth raw materials, and wild swings in rare earth raw material prices will adversely affect the company's production and sales in the short term. Mitigation measures: The company has built production plants in Ganzhou, Jiangxi, the main production area for heavy rare earth, and in Baotou, Inner Mongolia, the main 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. Meanwhile, through measures such as procuring rare earth raw material in advance based on orders on hand, establishing price adjustment mechanisms with key clients, optimizing formulations, and improving processes, the company strives to reduce the adverse impact of rare earth raw material price fluctuations on its operating performance. A review of Pr-Nd alloy’s price performance in H1 this year shows : 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 this year was 23.13%. The annual daily average price of Pr-Nd alloy in H1 this year was 904,650.86 yuan/mt. Compared with its annual daily average price of 529,559.83 yuan/mt in H1 2025, the semiannual daily average price rose by 375,091.03 yuan/mt, up 70.83% YoY. According to SMM quotations: On July 3, the Pr-Nd alloy price was 920,000-930,000 yuan/mt, with an average of 925,000 yuan/mt, up 1.09% from the previous trading day. Currently, rare earth market prices overall are showing a broad upward trend. Driven by a marked increase in market trading activity on July 2, low-priced supply of Pr-Nd oxide tightened, and suppliers of oxides raised their quotations one after another. However, overall inquiry activity in the market declined somewhat compared with yesterday, and actual transactions were not ideal. In the metal market, supported by oxide costs, prices also rose. However, downstream magnetic material enterprises made fewer inquiries, and metal enterprises were not very proactive in offering quotations, resulting in a generally sluggish trading atmosphere and relatively strong wait-and-see sentiment. In the short term, affected by the tightening of low-priced supply in the market, Pr-Nd product prices are expected to drift higher amid consolidation. Recommended reading:

[China's ore shortage situation unchanged, July zinc concentrate TCs continue to decline]: From weekly data, the SMM Zn50 domestic weekly average TC fell 400 yuan/mt Zn WoW to -600 yuan/mt Zn, and the SMM imported zinc concentrate index fell $5.33/dmt WoW to -$82.83/dmt....

Chinalco (Xiong’an) Mining, a subsidiary of Aluminum Corporation of China, has agreed to acquire a 95% stake in the Opuwo Cobalt-Copper Project in Namibia from Celsius Resources for US$15 million. The Opuwo Project, located in Namibia’s Kunene Region, hosts a mineral resource estimate of 225.5 million tonnes grading 0.12% cobalt, 0.43% copper and 0.54% zinc. The resource contains approximately 259,000 tonnes of cobalt, 970,000 tonnes of copper and around 1.22 million tonnes of contained zinc, including 45.3 million tonnes in the indicated category and 180.2 million tonnes in the inferred category. Under the agreement, Chinalco (Xiong’an) Mining has also committed to invest at least US$750,000 in exploration activities and US$250,000 in metallurgical test work while regulatory approvals and licence renewals are being completed.

Futures: Overnight, the LME lead 3M contract opened at $1,866/mt. After opening, prices initially drifted lower, continuously dipping to an intraday low of $1,858/mt. Once bearish momentum at the low was exhausted, concentrated buying interest rushed in, pushing prices to rebound quickly. During the session, prices surged sharply to hit an intraday high of $1,880.5/mt. Near the close, bulls took profits, and prices pulled back slightly, finally settling at $1,868.5/mt, up $2/mt or 0.11%. Overnight, the SHFE lead 2608 contract opened at 15,790 yuan/mt. After opening, it quickly raced to an intraday high of 15,895 yuan/mt, then bulls’ upward momentum waned. Bears stepped in gradually to pressure the futures, and prices drifted lower, touching a low of 15,785 yuan/mt. After falling to low levels, some bargain-hunting buying interest emerged, leading to a minor rebound and recovery. It finally settled at 15,850 yuan/mt, up 85 yuan/mt or 0.54%. Total trading volume was 26,476 lots, and open interest reached 93,966 lots. On the macro front: US June nonfarm payrolls came in below market expectations. Trump: Will continue to push for the removal of Governor Cook by “winning the lawsuit.” Trump: Micron is red-hot, and we must lead in AI. Sources say the next round of US-Iran talks will be held on July 18. OpenAI reportedly offered a 5% equity stake to the Trump administration. Meta: The development of AI agents has not “accelerated as expected.” The CSRC approved Unitree Robotics’ IPO registration application on the STAR Market. Media: There are errors in Meta’s “essay.” Spot market fundamentals: The decline in SHFE lead slowed. Suppliers actively sold, and spot premiums in the Jiangsu, Zhejiang, Shanghai market were lowered from yesterday. For EXW cargoes from primary lead smelters, suppliers sold along with the market, and quotes in mainstream production areas were around parity with the SMM #1 lead average price for EXW delivery. In the secondary lead sector, increasing production cuts and shutdowns at smelters reduced spot market circulation, leading to scarce and chaotic quotations. Some secondary refined lead was quoted at -25~+75 yuan/mt against the SMM #1 lead average price for EXW delivery. Downstream enterprises maintained a wait-and-see sentiment, with only a few purchasing as needed. Inquiries were also limited, and spot market transactions showed no improvement so far. Inventory: As of July 2, LME lead inventory fell by 1,450 mt to 294,450 mt. As of July 2, total social inventory of SMM lead ingots in five regions increased to 72,500 mt, up 1,300 mt from July 1. Lead price forecast today: On July 2, the SMM #1 lead ingot average price was 15,725 yuan/mt, down 4.26% cumulatively from early June, falling to a stage low. In the short term, lead prices are expected to drift lower: expectations for US Fed interest rate hikes, weak off-season end-user demand, and high LME inventories are weighing on prices; while widespread losses and production cuts among secondary lead producers, along with tight scrap battery supply, provide cost support. Going forward, the focus will be on monitoring storage battery procurement, scrap battery supply and lead ingot imports, and it is expected that lead prices will remain in the doldrums in the short term.

[SMM Morning Meeting Summary: Non-farm payrolls data underperformed expectations, supporting LME zinc's rebound from lows] Overnight, LME zinc opened at $3,487.5/mt. In early trading, prices moved sideways around the daily average, hitting a high of $3,503.5/mt; subsequently, zinc prices gradually pulled back and dipped to a low of $3,432.5/mt; entering the European trading session, prices consolidated and recovered, with the center gradually rising back above the daily average line; in the final session, prices edged down again and finally closed at $3,472.5/mt, down $19.5/mt, a decline of 0.56%.

The US Department of Commerce (USDOC) issued its final determination in the countervailing duty (CVD) administrative review on Turkish rebar for 2023. The USDOC assigned Colakoglu a final net subsidy rate of 1.26%, down from the preliminary 1.84%, after adjusting its calculation methodology based on stakeholder comments.