Recently, the finals of the 14th China Innovation and Entrepreneurship Competition's Disruptive Technology Innovation Contest concluded. After multiple rounds of selection, including preliminary screening, field competitions, and the national finals, the project titled "Key Technologies for the Industrialisation of Rare Earth-Modified Polymer Material Masterbatches and Products" by China Northern Rare Earth Ruihong Company stood out from 891 competing projects nationwide and successfully won the Excellence Award.

[Breaking News: Jinmeng Rare Earth's 4,000 mt NdFeB Scrap Recycling Automated Production Line Enters Trial Production] The newly constructed 4,000 mt/year NdFeB scrap recycling automated production line of Jinmeng Rare Earth under China Northern Rare Earth has now entered the trial production phase. As a crucial part of China Northern Rare Earth's strategy to establish a 10kt-level comprehensive utilization system for rare earth resources in both southern and northern regions, this project not only perfects the resource circulation system linking Pr-Nd alloy with scrap but also fills the gap in the rare earth scrap processing industry in the Inner Mongolia Autonomous Region. The production line is at the forefront of the industry in terms of equipment, technology, and automation. It places particular emphasis on the application of full-element recovery technology, achieving comprehensive and efficient utilization of metallic elements from scrap, fully tapping into the potential value of scrap resources. After the official launch of the project, it is expected to process up to 16,000 mt of NdFeB scrap annually and produce approximately 4,000 mt of rare earth oxides.

Recently, China Northern Rare Earth's joint venture moves in the magnet sector have attracted industry attention: the company has partnered with Ningbo Zhaobao, Suzhou Tongrun Drive, and Ningbo Xici to establish Northern Zhaobao Magnetics, advancing the implementation of a 3,000 mt/year high-performance NdFeB project. This seemingly independent set of moves actually reveals a fundamental shift in the underlying logic of the high-performance NdFeB industry's development—vertical integration and horizontal collaboration within the industry chain are becoming the core engines for technological breakthroughs and market competition.

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.

Driven by progress in the China-US economic and trade negotiations, rare earth concept stocks surged strongly on Wednesday. Both sides formulated an implementation framework for fulfilling the consensus reached in the previous round of talks in Geneva. The US negotiators expressed "absolute confidence" in resolving differences over the export of rare earth minerals and magnets. Influenced by the positive news, the A-share market opened higher in the morning session, with gains narrowing somewhat before noon. The Shanghai Composite Index rose by 0.54%, the Shenzhen Component Index increased by 0.89%, and the ChiNext Index climbed by 1.29%. On the futures market, sectors such as non-ferrous metals, automobiles, and non-banking finance took turns to rally, with the rare earth permanent magnets concept standing out particularly. Both the rare earth permanent magnets index and the rare earth index ranked among the top gainers. In the Hong Kong stock market, rare earth concept stocks also performed strongly, with China Rare Earth Holdings Limited surging over 14% during the trading session. Among individual stocks, Zhongke Magnetic Industry hit the daily limit of 20%, while Beikuang Technology and Ningbo Yunsheng hit the daily limit of 10%. Multiple stocks, including INST, Earth-Panda, Galaxy Magnets, and Longci Technology, saw gains exceeding 10%. Larger-cap stocks such as China Northern Rare Earth, Bao Gang United Steel, and China Rare Earth also delivered notable performances.

With the rapid development of the global economy and advancements in science and technology, rare earth elements, as indispensable key materials in modern high-tech industries, are increasingly receiving significant attention from governments, enterprises, and scientific research institutions worldwide. The distribution of global rare earth resources is highly uneven, with China, as the largest producer and consumer of rare earths, playing a crucial role in supplying the global market. However, with increasingly stringent environmental protection policies and rising costs of resource extraction, the rare earth industry is facing major challenges in sustainable development and transformation and upgrading. Meanwhile, other countries are accelerating the development of rare earth resources and the layout of supply chains, striving to gain more influence and market share in this strategic industry. Against this backdrop, the 2025 SMM (2nd) Rare Earth Industry Forum will be held. The forum aims to gather the wisdom and strength of governments, enterprises, academia, and investors to jointly explore the future development trends, technological innovations, market dynamics, and policy environments of the rare earth industry. In-depth discussions will be held on these topics. It is expected that through this forum, all sectors can reach a consensus, jointly address the opportunities and challenges facing the rare earth industry, and promote the healthy and stable development of the industry. Leveraging the platform of the 2025 SMM (2nd) Rare Earth Industry Forum, we will jointly witness the new opportunities and challenges facing the rare earth industry, formulate strategies, work hand in hand, contribute to the sustainable development of the global economy, and shape a bright future for the rare earth industry. At this conference, North Zhongxin Antai New Materials (Inner Mongolia) Co., Ltd. will make a grand appearance. Along with peers from upstream and downstream of the rare earth industry, the company will engage in in-depth discussions on the pain points and challenges of industry development, jointly explore business opportunities for win-win cooperation, and discuss strategies to promote high-quality development of the industry. Click on the registration form to register immediately for the conference. Gather momentum, plan for the future, and embark on a new journey. We look forward to seeing you in Ningbo. The company is located at No. 3 Ruicheng Road, Rare Earth High-Tech Industrial Development Zone, Baotou City, Inner Mongolia. The Baotou Rare Earth High-Tech Industrial Development Zone is the only national-level high-tech zone named after rare earth resources in China and the only national-level high-tech zone in the Inner Mongolia Autonomous Region. Our company is situated in the core area of the Rare Earth Industry Application Park within this zone. The surrounding enterprises are all involved in the production, processing, and deep processing of rare earth metals, with strong capabilities in upstream and downstream process integration, smooth technology sharing and complementary mechanisms, and convenient transportation. (1) Product Structure and Production Line Overview The company mainly produces and operates various types of rare earth metals, including four categories: Pr-Nd alloy, lanthanum metal, cerium metal, and lanthanum-cerium alloy. Currently, the company has put into operation a 7,000 mt/year high-purity rare earth metal production line, which operates stably and smoothly. (2) R&D and Technology The company boasts a strong R&D team with comprehensive professional configurations and a reasonable age structure. It has established close industry-university-research cooperation relationships with scientific research institutions such as the Inner Mongolia Rare Earth Quality Supervision and Inspection Research Institute and the Baotou Rare Earth Research Institute. The R&D center has undertaken over 30 scientific research projects, all of which have been successfully implemented, resulting in 3 invention patents and 10 utility model patents. In 2019, the company developed seven technological achievements, including "Rare Earth Oxide Molten Salt Electrolysis," which were evaluated and identified by experts organized by the Chinese Society of Rare Earths. Three of these technologies were rated as domestically leading, and four were rated as domestically advanced. In August 2019, the company became a member unit of the National Rare Earth Standardization Technical Committee. It collaborated with the Baotou Rare Earth Research Institute to draft two industry standards, including "Lanthanum-Iron Alloy," five group standards, such as "Sintered NdFeB Permanent Magnet Materials for Motors," "Cerium Metal," and "Pr-Nd Alloy," and five enterprise standards, including "Lanthanum Metal," "Cerium Metal," and "Neodymium Metal." (3) Testing Center The company has established a testing center that serves as a base for R&D and talent cultivation. While meeting its own production testing and inspection needs, it also provides testing and inspection services for other rare earth enterprises. The testing results are accurate and comprehensive, making it a benchmarking unit among similar rare earth enterprises. In addition, the testing center is equipped with advanced testing equipment from both domestic and overseas sources. Among them, the rapid testing instrument undertakes the testing tasks for all metal products of the company and can issue testing results within 30 seconds. Company Advantages (1) Regional Advantages: Baotou City's advantages in rare earth metal production lie in two aspects. On one hand, Baotou has unique resource advantages, being a world-class rare earth mineral resource production area. Its rare earth ore reserves account for 56% of the world's total and 80% of China's total. On the other hand, Baotou's rare earth industry has developed for over four decades, with a relatively complete industrial system and significant cluster effects. Its unique resource endowments and mature technological accumulation have contributed to Baotou City's prominent competitive advantages in the rare earth industry. (2 ) Industrial Advantages: As a national strategic resource, rare earths possess monopolistic advantages. Stringent access thresholds have been set in mining, separation, deep processing, and application, providing tailored protection for the industry's development. From the outset of establishing the development zone, Baotou positioned itself as a "national-level" rare earth development zone, aiming to be a material science, processing science, and applied science cluster that influences the world, human survival patterns, and national strategic directions. Therefore, the transformation and upgrading by economic and information technology departments, R&D innovation by science and technology departments, clean emissions by environmental protection departments, and preferential policies by tax departments all provide support. Each enterprise entering the park can receive a one-on-one service model from government departments. (3) Corporate Advantages ① The company was merged into China Northern Rare Earth in July 2024, becoming a holding subsidiary of China Northern Rare Earth. This ensures a stable supply of raw materials and also steadily improves the quality of raw materials, thereby further guaranteeing the company's product quality. ② The government provides preferential electricity prices for rare earth enterprises in terms of electricity usage. In March 2018, the company was approved by the Inner Mongolia Industry and Information Technology Department to participate in the quarterly bidding in the Inner Mongolia Power Multilateral Trading Market, enjoying strategic new industry electricity policy support. This gives the company a more advantageous position in terms of electricity costs for rare earth metal processing compared to the southern region. (4) Operating Performance: The company was established in January 2017 and acquired "Baotou Weilinna New Materials Technology Co., Ltd." through equity acquisition. After more than a year of intensive construction, it commenced production in April 2018. Within three years of its establishment, the company achieved rapid development, continuously upgrading from a "small" to a "medium" and then to a "large" scale enterprise. (5) Product Quality: Quality is the lifeblood of a company's survival and development. From the outset of production, the company conducted comprehensive quality management training for all employees, controlling various aspects such as "personnel, machinery, materials, methods, and environment." In high-purity series rare earth metals and alloy products, it can achieve carbon content (6) Safety and Environmental Protection: The company adheres to the philosophy of "high-standard planning and design, high-standard construction and management." In terms of safety, the company has established a safety work leading group and a safety committee, implementing a safety production responsibility system, and formulating safety management systems, safety archives for key units, and emergency evacuation drill plans in accordance with safety standards. In terms of environmental protection, the company adopts all domestically advanced, environmentally friendly, and technologically advanced production processes and equipment, with environmental pollutant emission values being among the lowest in the industry. A new circulating cooling system provides cooling conditions for equipment in the rare earth alloy manufacturing workshop. The waste gas fluoride treatment system uses a three-stage spray, two-stage backwash, and one-stage cyclone plate method. The treatment system is externally connected to a circulating water pool, with all cooling water being recycled and not discharged. There is no production water usage in the NdFeB workshop, truly achieving zero industrial water discharge. In addition, by utilizing the waste heat from the circulating water inside the electrolytic furnace cover, the company realizes internal heating for all buildings in the plant area during winter, achieving energy conservation and emission reduction. (7) Financial Management: From its inception, the company has hired tax experts and accounting experts as senior executives to conduct comprehensive financial planning and establish a sound financial management system. The company's accounting, financial management, and tax management are all carried out in accordance with the standards of publicly listed firms, ensuring accurate, comprehensive, and timely financial data, and establishing a solid financial foundation for the company's long-term development. (8) Cultural Construction: The company has established a labor union organization to regularly carry out work in safeguarding the legitimate rights and interests of employees, transmitting the company's management philosophy, and communicating the demands between the company and employees, achieving the results of "people-oriented, harmonious win-win." Corporate culture is the spiritual guide for the company's development. Since 2018, the company has published a corporate newsletter, with over 30 issues having been edited and printed since its inception. The establishment of the newsletter has created a platform for the company to convey its cultural philosophy and also provided a good platform for employees to understand the company's development, keep abreast of industry trends, and showcase their personal talents. In addition, the company occasionally holds various cultural and sports team activities, which not only enrich employees' cultural lives, enhance their sense of happiness in the enterprise, but also strengthen their cohesion and corporate responsibility. (9) Corporate Honors: In February 2018, the company was designated as a "Pilot Unit for the Transformation and Upgrading of the Rare Earth Industry" by the Ministry of Industry and Information Technology and received financial support for rare earth industry transformation and upgrading projects. In April 2018, it was awarded the Rare Earth High-Tech Zone Key Project Support Fund. In 2019, the company was rated as a national-level high-tech enterprise by the Ministry of Science and Technology and the Ministry of Finance. Our company is a member unit of the National Rare Earth Standardization Technical Committee, a council member unit of the Chinese Society of Rare Earths, a backbone member unit of the Baotou Rare Earth Industry Alliance, an off-campus practical teaching base for the Metallurgical Engineering Excellence Program of Inner Mongolia University of Science and Technology, and a "Green Channel" enterprise in the Rare Earth High-Tech Zone. The company owns the "Zhongxin Antai" trademark. Looking Ahead 1. Expand Production Scale The company is currently constructing an 8,000 mt/year rare earth metal and alloy project, with a planned total investment of 93.2232 million yuan and an additional capacity of 8,000 mt. Upon completion, the annual production capacity will reach 15,000 mt, making it the top rare earth metal enterprise in the surrounding area in terms of capacity. 2. Enrich Product Structure To further expand market share, the company will continuously optimize its product structure and expand into medium and heavy rare earths based on its existing product structure. It plans to add metal and alloy products such as gadolinium-iron alloy, aiming to create a rare earth metal enterprise with a comprehensive product coverage. 3. Automation Construction The company plans to implement technological transformations for "machine substitution" in the rare earth metal production line, aiming to achieve full-process "machine substitution" in rare earth metal production, including automatic feeding, furnace unloading, intelligent detection, automatic sorting and packaging, and full-process material handling. With a keen global perspective, the company adheres to the development philosophy of revitalizing the enterprise through science and technology and achieving win-win cooperation. Guided by the value concepts that have been continuously cultivated, the company will gradually fulfill the shared responsibilities of individuals, enterprises, society, and the country, realizing the shared prosperity of corporate and social interests. Contact Information Li Xin 13304723535 Wang Zhenxin 18586166986 Long press to scan the QR code and register immediately 2025 SMM (2nd) Rare Earth Industry Forum

On May 26, JL MAG Rare-Earth announced that Ganzhou Geshuo, a concerted actor of the controlling shareholder, had pledged 1.8 million shares it held, accounting for 20.92% of its total shareholding and 0.13% of the company's total share capital. As of the announcement disclosure date, Ganzhou Geshuo had cumulatively pledged 3.8 million shares, representing 44.17% of its total shareholding and 0.28% of the company's total share capital. The Q1 report previously released by JL MAG Rare-Earth showed that in the first quarter of this year, the company achieved operating revenue of 1.754 billion yuan, up 14.19% YoY; net profit attributable to shareholders of the publicly listed firm was 161 million yuan, up 57.85% YoY; and net profit excluding non-recurring gains and losses was 106 million yuan, up a substantial 331.10% YoY. On the evening of April 27, JL MAG Rare-Earth also announced that it planned to repurchase shares worth 100 million to 200 million yuan for cancellation and reduction of registered capital. The repurchase price would not exceed 31.18 yuan per share. The Q1 report of JL MAG Rare-Earth indicated that the company is a leading enterprise in the global rare earth permanent magnets industry, primarily engaged in R&D, production, and sales of high-performance NdFeB permanent magnet materials, magnetic components, motor rotors for embodied robots, as well as the comprehensive recycling and utilization of rare earth permanent magnet materials. In Q1 2025, the company's management actively explored the market and simultaneously expanded capacity, maintaining stable operations. The company continued to focus on the new energy and energy-saving and environmental protection sectors, concentrating on core application areas such as NEVs and automotive parts, energy-saving inverter air conditioners, wind power generation, robots and industrial servo motors, 3C products, and low-altitude aircraft. It also actively collaborated with internationally renowned technology companies in the R&D and capacity construction of motor rotors for embodied robots, with small-batch deliveries being made sequentially. During the reporting period, the company achieved operating revenue of 1.754 billion yuan, up 14.19% YoY; net profit attributable to shareholders of the publicly listed firm was 161 million yuan, up 57.85% YoY; and net profit excluding non-recurring gains and losses was 106 million yuan, up 331.10% YoY. 1. In Q1 2025, the company's new capacity was further released, with the capacity utilization rate exceeding 90%. The production of magnetic material blanks was approximately 8,770 mt, the production of finished magnetic materials was approximately 6,600 mt, and the sales of finished magnetic materials were approximately 6,024 mt, all showing growth of over 40% compared to the same period last year. 2. The company is a leading supplier in global application areas such as NEVs and energy-saving inverter air conditioners. In Q1 2025, the company's revenue from the NEV and automotive parts sector was 882 million yuan, accounting for 50.28% of operating revenue; revenue from the energy-saving inverter air conditioner sector was 513 million yuan, accounting for 29.25% of operating revenue. In addition, export sales revenue during the reporting period was 312 million yuan, accounting for 17.76% of operating revenue, of which export sales revenue to the US was 122 million yuan, accounting for 6.94% of operating revenue. Additionally, the institutional survey record disclosed by JL MAG Rare-Earth on May 22 addressed the company's Q1 2025 operational performance, developments in embodied robotics and low-altitude aircraft businesses, as well as capacity utilization and revenue structure during Q1 2025. 1. Please briefly introduce the company's Q1 2025 operational performance. JL MAG Rare-Earth responded: In Q1 2025, the management proactively expanded market reach while scaling up capacity, maintaining steady operations. The company continued focusing on new energy and energy-saving environmental protection sectors, specializing in core applications including NEVs & auto parts, energy-efficient inverter air conditioners, wind power generation, robotics & industrial servo motors, 3C products, and low-altitude aircraft. It also collaborated with internationally renowned tech firms on R&D and capacity building for embodied robotics motor rotors, achieving small-batch deliveries. During Q1 2025, the company recorded revenue of 1.754 billion yuan (up 14.19% YoY), net profit attributable to shareholders of 161 million yuan (up 57.85% YoY), and adjusted net profit excluding non-recurring items of 106 million yuan (up 331.10% YoY). 2. Updates on embodied robotics and low-altitude aircraft businesses? JL MAG Rare-Earth responded: The company is actively supporting a globally leading tech company in R&D and capacity construction for embodied robotics motor rotors, with small-batch deliveries underway. Currently, dedicated facilities, equipment, and teams have been deployed per client requirements, establishing preliminary mass-production capabilities. Future plans include increased R&D investment in this sector and advancing industrialization support to meet growing market demand. Additionally, small-batch deliveries have commenced in the low-altitude aircraft segment. 3. Capacity utilization and revenue structure in Q1 2025? JL MAG Rare-Earth responded: In Q1 2025, new capacity was further ramped up with utilization exceeding 90%. Production reached approximately 8,770 mt of magnetic material blanks and 6,600 mt of finished products, while sales of finished products totaled ~6,024 mt, all exceeding 40% growth YoY. The company is a global leader supplying NEVs and energy-efficient inverter air conditioners. In Q1 2025, revenue from NEVs & auto parts reached 882 million yuan (50.28% of total), with energy-efficient inverter air conditioners contributing 513 million yuan (29.25%). Additionally, export sales revenue during the reporting period was 312 million yuan, accounting for 17.76% of the operating revenue. Among this, export sales revenue to the US was 122 million yuan, accounting for 6.94% of the operating revenue. 4. Could you please provide an update on the progress of the company's plan to repurchase A-shares in 2025? JL MAG Rare-Earth responded: Based on confidence in the company's future development prospects and recognition of its value, the company's board of directors has resolved to repurchase A-shares through centralized bidding transactions using the company's own funds or self-raised funds (including special loans for share repurchases). Self-raised funds (including special loans for share repurchases) will account for no more than 90% of the total repurchase funds. The total amount of funds for the share repurchase will be no less than 100 million yuan (inclusive) and no more than 200 million yuan (inclusive). All shares repurchased in this transaction will be cancelled in accordance with the law to reduce the registered capital. The implementation of this plan to repurchase A-shares is subject to approval at the company's 2024 Annual General Meeting of Shareholders. 5. Could you please provide information on the company's raw material supply situation? JL MAG Rare-Earth responded: The company has established production facilities in Ganzhou, Jiangxi Province, a major producer of heavy rare earths, and in Baotou, Inner Mongolia, a major producer of light rare earths. The company has established long-term strategic cooperative relationships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group. In 2024, the company's procurement amount from China Northern Rare Earth Group and China Rare Earth Group accounted for 63% of the company's total annual procurement amount. Meanwhile, the company prioritizes the procurement of green recycled rare earths. Through its investment in Bayannaoer Yinhai New Materials Co., Ltd., a rare earth recycling company, and after rigorous audits by SCS Global Services, a globally recognized authority on recycled content certification, the company has diversified its rare earth raw material supply and achieved low-carbon products. In 2024, the company used 2,575 mt of recycled rare earth raw materials (including recycled scrap magnets), accounting for 30.4% of the total rare earth raw materials used throughout the year. Guided by the company's values of "customer orientation and value co-creation," the company consistently adheres to honest performance of contracts to ensure client delivery. To this end, the company has established a comprehensive rare earth raw material procurement mechanism to hedge against risks. In the future, the company will closely monitor the price trends of rare earth raw materials and flexibly and prudently adjust inventory and procurement strategies. At the earnings presentation meeting, JL MAG Rare-Earth stated when introducing the company's full-year performance for 2024 : In 2024, led by the management team under the guidance of the company's core values of "customer orientation and value co-creation," the company remained focused on its main business, overcoming unfavourable factors such as the significant decline and bottoming out of rare earth raw material prices since 2022. The company actively expanded its business and strived to expand and release capacity in accordance with the strategic plan formulated by the board of directors. In 2024, rare earth raw material prices showed a downward trend YoY. The lag in raw material cost adjustments, coupled with intensified industry competition and other unfavourable factors, adversely impacted the company's operating performance. The management promptly implemented effective countermeasures, actively expanded market presence while simultaneously increasing capacity, maintaining stable operations. During the reporting period, the company continued to focus on the new energy and energy-saving environmental protection sectors, specializing in core application fields such as NEVs and auto parts, energy-saving variable-frequency air conditioners, wind power generation, robots and industrial servo motors, 3C products, and low-altitude aircraft. In 2024, the company achieved operating revenue of 6.763 billion yuan, up 1.13% YoY. Domestic sales revenue reached 5.541 billion yuan (up 1.88% YoY), while overseas sales revenue totaled 1.222 billion yuan, including approximately 418 million yuan in exports to the Americas. Net profit attributable to shareholders of the publicly listed firm was 291 million yuan, down 48.37% YoY. Net cash flow from operating activities amounted to 508 million yuan. Regarding the company's full-year 2024 production, sales, and product structure: JL MAG Rare-Earth responded at the earnings briefing: In 2024, the company's capacity utilization rate exceeded 90%, with high-performance magnet blank production reaching approximately 29,300 mt (up 39.48% YoY) and finished high-performance magnet sales totaling 20,900 mt (up 37.88% YoY), setting record highs in both production and sales volume. According to publicly available industry statistics, the company has become the top-ranked enterprise in terms of production and sales volume in the rare earth permanent magnet industry, both domestically and globally. The company's 2024 sales revenue in NEVs, variable-frequency air conditioners, and wind power generation sectors is as follows: Regarding the main reasons for the YoY decline in 2024 net profit: JL MAG Rare-Earth responded at the earnings briefing: In 2024, rare earth raw material prices showed a downward trend YoY. The lag in raw material cost adjustments, coupled with intensified industry competition and other unfavourable factors, adversely impacted the company's operating performance. In 2024, leveraging relatively sufficient orders on hand, the company actively planned its layout, expanded capacity, coordinated group resources, and advanced projects such as JL MAG Ningbo Technology and Jin Cheng Permanent Magnet, making extensive preparations for reaching full production. This led to temporary increases in product unit costs and management expenses at these subsidiaries, affecting net profit. JL MAG Ningbo Technology alone contributed approximately -57.56 million yuan to consolidated net profit. Despite the adverse impact of declining rare earth raw material prices, the company continued R&D investments, actively expanded into the humanoid robot magnetic components sector, promoted production management informatization and automation for cost reduction and efficiency improvement. Additionally, the execution of price-locked orders signed with certain clients when rare earth material prices were at relatively high levels gradually commenced after Q3, leading to progressive improvements in profitability during Q3 and Q4. Recently, several securities firms have published research reports on JL MAG Rare-Earth, with some of the content as follows: Huayuan Securities issued a research report on May 22, recommending a "Buy" rating for JL MAG Rare-Earth. The reasons for the rating include: 1) The company possesses both cyclical and growth attributes, with sustained expansion in demand for high-performance rare earth permanent magnets; 2) Having experienced the cycle and enjoyed growth, the top-tier enterprise in rare earth permanent magnets continues to deliver performance; 3) The first year of the humanoid robot industry has begun, and the Mexico project opens up long-term growth opportunities. Risk warnings: Demand fluctuation risks, risks of project construction falling short of expectations, risks of raw material fluctuations, risks of new business expansion falling short of expectations, and risks of deviations in market space estimates. Ping An Securities issued a research report on April 30, recommending a "Buy" rating for JL MAG Rare-Earth. The reasons for the rating include: 1) Rapid rebound in production and sales of high-performance magnetic materials; 2) Gradual improvement in quarterly profitability; 3) Steady progress in capacity expansion. Risk warnings: (1) Project progress falling short of expectations. If the current projects under construction progress unexpectedly slowly, it may affect the company's future earnings growth pace. (2) Downstream demand falling short of expectations. If demand contracts significantly due to end-user influences, the company's product sales may be affected to a certain extent. (3) Intensified industry competition. A significant increase in industry competition may lead to the company's product sales falling short of expectations. Sinolink Securities issued a research report on April 28, recommending a "Buy" rating for JL MAG Rare-Earth. The reasons for the rating include: 1) Both volume and price increased, with performance exceeding expectations; 2) Overall expense control was good, and R&D expenses continued to grow; 3) Attention is paid to the overall rebound in rare earth prices, from which the company is expected to benefit. Risk warnings: Demand falling short of expectations; fluctuations in rare earth prices; magnetic material supply exceeding expectations. Reviewing the price trends of Pr-Nd alloy in the first quarter of this year and 2024, it can be seen that: 》Click to view SMM spot prices of rare earths 》Subscribe to view historical price trends of SMM metal spot cargo Reviewing the price trends of Pr-Nd alloy in the first quarter of this year, it can be seen that: The average price of Pr-Nd alloy on March 31, 2025, was 543,000.00 yuan/mt, an increase of 54,000 yuan/mt compared to the average price of 489,000 yuan/mt on December 31, 2024, representing an increase of 11.04%. The daily average price of Pr-Nd alloy in the first quarter of this year was 528,017.54 yuan/mt, an increase of 55,965.82 yuan/mt compared to the daily average price of 472,051.72 yuan/mt in the first quarter of 2024, representing an increase of 11.86%. Reviewing the price trends of Pr-Nd alloy in 2024, it can be seen that: The average price of Pr-Nd alloy on December 31, 2024, was 489,000 yuan/mt, a decrease of 53,000 yuan/mt compared to the average price of 542,000 yuan/mt on December 29, 2023, representing a decrease of 9.78% in 2024. The annual daily average price of Pr-Nd alloy in 2024 was 484,704.55 yuan/mt. Compared with the annual daily average price of 645,330.58 yuan/mt in 2023, the annual daily average price fell by 160,626.03 yuan/mt, representing a YoY decline of 24.89%. According to SMM quotes, on May 26, the price of Pr-Nd alloy dropped to the range of 534,000-537,000 yuan/mt, with an average price of 535,500 yuan/mt, up 1.61% from the previous trading day. Compared with the average price of 489,000 yuan/mt on December 31, 2024, it increased by 46,500 yuan/mt, a rise of 9.51%. Compared with the average price of 543,000 yuan/mt on March 31, it slightly decreased by 7,500 yuan/mt, a drop of 1.38%. It is reported that recent raw material purchases by major manufacturers have boosted the confidence of some suppliers, leading to a tightening of low-priced supplies in the market, which in turn supported the rise in rare earth prices. Given the relatively high cost of raw materials, metal manufacturers have also raised their quotes accordingly. Currently, there is a strong wait-and-see sentiment in the market, with downstream buyers being cautious in their purchases. As upstream and downstream players remain in a stalemate, the future market will need to continue monitoring the import situation of ion-adsorption ore after Southeast Asia gradually enters the rainy season, as well as the progress of end-use demand gradually emerging from the off-season.

[At least six rare earth magnetic material enterprises have been granted export licenses! Industry insiders: It is expected that the increase in rare earth mining quotas this year will be approximately 3.7%] ①As of May 18, Zhongke Sanhuan, Ningbo Yunsheng, Zhenghai Magnetic Material, Tianhe Magnetic Material, Insteel, and Earth-Panda had obtained rare earth export licenses; ②Before the introduction of rare earth export control measures, export orders could confirm revenue within a relatively short period, but now this cycle will be prolonged; ③SMM forecasts that the combined rare earth mining quotas for the two batches in 2025 will reach 280,000 mt, up approximately 3.7% YoY. (Cailian Press)

It has been 45 days since export control measures were implemented on seven categories of medium-heavy rare earth-related items, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. A reporter from Cailian Press learned from the industry that at least six enterprises have already obtained the export licenses for dual-use rare earth substances (hereinafter referred to as "rare earth export licenses") issued by the Ministry of Commerce. Additionally, the approval process for rare earth export licenses of several publicly listed firms is continuously progressing. As of May 18, enterprises that have obtained rare earth export licenses include at least six rare earth magnetic material enterprises, such as Zhongke Sanhuan (000970.SZ), Ningbo Yunsheng (600366.SH), Zhenghai Magnetic Material (300224.SZ), Tianhe Magnetic Material (603072.SH), Instar (301622.S), and Earth Panda (688077.SH). In addition, the rare earth export licenses of companies such as China Northern Rare Earth (600111.SH), Guangsheng Nonferrous Metals (600259.SH), and Yinluo Hua (000795.SZ) are currently under application. Due to restrictions imposed by policies, market conditions, production and transportation factors, the supply of rare earths on the supply side may experience a certain degree of reduction in the short term. However, at the same time, downstream demand has entered the off-season. The industry expects that rare earth prices will not experience significant fluctuations throughout the year. At least six rare earth magnetic material enterprises have obtained individual licenses In April this year, the Ministry of Commerce and the General Administration of Customs jointly implemented export controls on seven categories of medium-heavy rare earth-related items, including samarium, gadolinium, terbium, dysprosium, etc., covering various forms such as metals, alloys, and permanent magnet materials. These seven categories of medium-heavy rare earth-related items have also become the first dual-use substances to be explicitly included in export controls. "As the dominant player in the global rare earth supply chain, China controls approximately 85% of the global smelting capacity. These control measures have directly led to an expansion of the supply gap for medium-heavy rare earths in overseas markets, with significant impacts particularly on key varieties such as dysprosium and terbium," Yang Jiawen, a rare earth analyst at Shanghai Metals Market (SMM), told a reporter from Cailian Press. "According to our understanding, as of late April, the prices of dysprosium and terbium in Europe had already doubled or tripled." Industry insiders told a reporter from Cailian Press that under the current circumstances, all export orders for products containing the aforementioned seven categories of medium-heavy rare earth-related items must be reported to the Ministry of Commerce and can only be exported after approval. According to the "Regulations on the Export Control of Dual-Use Items," the current review period for export license applications for dual-use rare earth items is generally 45-60 working days. "If unexpected situations arise, the period may be longer," a relevant person from Tianhe Magnetic Material told a reporter from Cailian Press. "The first batch of goods that our company has obtained approval for is to be delivered to Volkswagen."Currently, a separate application is required for each "formula." If the content of rare earth elements in the product differs, a new application must be submitted. If there are additional new orders subsequently, they will continue to be queued for application submission," said a representative from Insteel to a Caixin reporter. "According to the announcement on export controls for seven categories of medium-heavy rare earths issued by the Ministry of Commerce and the General Administration of Customs on April 4, our company does have some products containing dysprosium and terbium that fall under the control scope. We have applied for dual-use export licenses as required. The licenses are managed on a one-batch-one-license basis, and secondary use is prohibited. Currently, the company has gradually obtained some licenses, and the relevant processes are progressing smoothly," said a representative from Insteel to a Caixin reporter. A representative from Zhongke Sanhuan also stated to a Caixin reporter that the company submitted applications as soon as the export control measures were introduced. Currently, a small number of orders have been approved, and the export licenses for more orders are still under review. "Applications are submitted order by order, and then approved order by order. If the materials are incomplete, they will be rejected, and the submission process will continue, which will extend the entire application cycle," the representative said. It is worth noting that several publicly listed firms in the rare earth permanent magnet sector told Caixin reporters that due to the approval cycle for rare earth export licenses, the companies' performance in the first half of this year may be affected to a certain extent. "Before the introduction of rare earth export control measures, export orders could confirm revenue within a relatively short period. Now, this cycle will be prolonged, which may affect the performance in the first half of the year," they said. A representative from Ningbo Yunsheng stated that currently, only products containing items related to the aforementioned seven categories of medium-heavy rare earths require review. Products from the company that do not contain the aforementioned seven elements are being delivered normally. It is projected that the increase in rare earth mining quotas this year will be around 3.7%. In addition to the implementation of export controls on seven categories of medium-heavy rare earth-related items, this year's domestic total control indicators for rare earth mining are also capturing the attention of the global market. As of now, the first batch of total control indicators for rare earth mining this year has not yet been issued. In contrast, the first batch of total control indicators for rare earth mining and smelting and separation in 2024 was issued on February 7 last year. This year's first batch of rare earth indicators is thus "three months late." The industry believes that the delay in the issuance of this year's first batch of total control indicators for rare earth mining may be related to factors such as the current complex international situation, weak downstream demand, and the inclusion of imported ore in the scope of indicator management. During a recent live broadcast on SMM's rare earth market trends, Yang Jiawen stated, "Based on an analysis of the current market situation, SMM expects that the combined total of the two batches of rare earth mining quotas in 2025 will reach 280,000 mt, with a year-on-year increase of approximately 3.7%."Among them, the output of rock-type rare earths was 261,000 mt, representing a YoY increase of approximately 4%; the output of ion-adsorption type rare earths was 19,000 mt, remaining flat YoY." In Yang Jiawen's view, since the beginning of this year, the supply of rare earth raw materials has remained tight. Meanwhile, the rise of industries such as humanoid robots and the low-altitude economy has brought new demand to the rare earth sector. This year, the global supply-demand gap for Pr-Nd oxide is expected to be 3,500 mt. The improvement in the supply-demand relationship will further support the rebound in rare earth prices. With the regulation of a series of rare earth industry policies, it is expected that the price fluctuation range of Pr-Nd alloy will be controlled within 100,000 yuan/mt, which will help ensure the stability of the profit margin of Pr-Nd alloy. Supply side, the ion-adsorption ore in Myanmar has resumed production, but it is currently the rainy season, affecting the transportation of Myanmar ore. Suppliers at the ore end have shown a significant increase in reluctance to sell. At the same time, downstream NdFeB enterprises have entered the off-season for taking orders, and metal plants in some regions have begun to shut down furnaces and cut production. It is expected that there will be no significant increase in short-term end-use demand in the near future. Huang Ping, the general manager of Shenghe Resources, stated at the 2024 Annual Performance Briefing held recently that despite recent concerns about overall consumer demand triggered by factors such as tariff hikes, which have led to a slight correction in the prices of major rare earth products, the decline has been limited. With the gradual clarification of policies, the market outlook is expected to improve. The company's capacity utilisation rate for rare earth smelting and separation, as well as metal processing, remains high.

The significant price increase in spot rare earth cargo in Q1 drove positive Q1 performance for several rare earth enterprises, including China Northern Rare Earth and China Rare Earth Holdings. The rare earth permanent magnets concept sector performed remarkably after the Labour Day holiday. As of 10:53 on May 6, the rare earth permanent magnets concept sector rose by 4.45%. In terms of individual stocks, Jingyuntong, Shenghe Resources, and Tianhe Magnetic Material hit the daily limit up, Jiuling Technology rose nearly 25%, Xici Technology and Earth-Panda Advanced Magnetic Material rose over 10%, and GSHC Rare Earth, Longi Magnet, and Galaxy Magnets were among the top gainers.