SMM News: As of March 20, 2026, the market price for Praseodymium-Neodymium (Pr-Nd) metal in China stabilized temporarily at 890,000–910,000 RMB/ton. This article utilizes the SMM Pr-Nd Terminal Demand Calculation Model to dissect the demand logic for 2026 across three core sectors—New Energy Vehicles (NEVs), Internal Combustion Engine (ICE) vehicles, and Wind Power—explaining the current supply-demand dilemma facing the NdFeB magnet and broader Pr-Nd markets.

JL MAG Rare-Earth (Baotou) Technology Co., Ltd. commenced construction on its Phase III green manufacturing project for high-performance rare earth permanent magnet materials with an annual output of 20,000 mt in Baotou Rare Earth High-Tech Zone. Upon completion, the Baotou base of JL MAG Rare-Earth will have an annual production capacity of 40,000 mt of high-performance rare earth permanent magnet materials. Jiangxi JL MAG Rare-Earth Technology Co., Ltd. is the only enterprise in the global rare earth permanent magnet industry listed on both the "A+H" stock exchanges. It ranks first globally in terms of magnetic material production capacity and is a leading supplier of core application materials for the global new energy and energy-saving and environmental protection sectors.

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.

On May 28, the share price of Huahong Technology rose. As of 10:53 a.m. on the 28th, Huahong Technology was up 0.49%, trading at 8.18 yuan per share. An investor asked on the investor interaction platform: "What is the company's capacity for terbium oxide and dysprosium oxide?" Huahong Technology responded on the investor interaction platform on May 28: The company's comprehensive utilisation business of rare earth resources mainly involves the recycling and processing of magnetic material scrap and scrap permanent magnet materials to extract regenerated rare earth oxides. The company currently has a capacity of 12,000 mt/year for regenerated rare earth oxides. The production of different types of rare earth oxides mainly depends on the content of each rare earth element in the scrap. In 2024, the company actually produced approximately 115 mt of dysprosium oxide and approximately 25 mt of terbium oxide. When asked, "What is the current capacity of rare earth permanent magnet materials? What is the company's position in the permanent magnet industry? Are they considered high-end materials?" Huahong Technology responded on the investor interaction platform on May 28 that the company's annual capacity for rare earth permanent magnet materials is 15,000 mt. The company has been deeply involved in the rare earth permanent magnet materials industry for many years, accumulating certain industry experience and industrial advantages. In recent years, the company has continued to increase its investment in the rare earth permanent magnet business, continuously improving production efficiency and product performance through measures such as capacity expansion, technological innovation, and management optimisation, and continuously enriching the application fields of its products. Currently, the company's high-performance magnetic materials have been applied in industries such as NEV motors, industrial drive motors, and 3C electronics, and the company has established business cooperation with relevant enterprises in the industry. In response to the question, "How is the quality of the company's rare earth permanent magnet materials? Can they be used in high-end motors and robotics?" Huahong Technology responded on the investor interaction platform on May 28: The company's high-performance magnetic materials have been applied in industries such as NEV motors, industrial drive motors, and 3C electronics, and the company has established business cooperation with relevant enterprises in the industry. In addition, when asked, "Are the company's future business development priorities the rare earth resource comprehensive utilisation and magnetic materials sectors? What is the current development situation of the rare earth industry? Will they be the company's future profit growth points?" Huahong Technology introduced at the performance briefing: The sales proportion of the company's rare earth resource comprehensive utilisation business and rare earth permanent magnet materials business has accounted for more than 60% of the company's total sales, being the main source of contribution to the company's performance. In recent years, the company has also continued to increase its investment in these two industrial sectors, continuously expanding its capacity scale. Benefiting from the rapid development of industries such as NEVs, industrial automation, energy-efficient home appliances, and servo motors, the downstream demand for rare earth products is also increasing, which will have a positive impact on the company's business development. The company's performance is subject to its periodic reports and earnings forecasts. In response to the questions "1. What were the reasons for the company's increased losses in 2024? Has the company taken any measures to reverse the losses? 2. What were the reasons for the successful turnaround in Q1? Is it related to the improvement in the industry's fundamentals?" at the earnings briefing, Huahong Technology stated: In 2024, the company made impairment provisions of RMB 334 million for the goodwill arising from the acquisition of Jiangsu Wellman, which led to an expansion of the net loss attributable to shareholders to RMB 356 million. Excluding the impact of the impairment provisions for goodwill, the company's operating performance in 2024 had significantly reduced losses compared to 2023. In Q1 2025, domestic rare earth prices stopped falling and rebounded, coupled with an increase in the company's capacity utilisation rate for rare earth oxides, driving a significant YoY improvement in gross profit margin. Meanwhile, the company seized the development opportunities in the permanent magnet motor market, achieving substantial YoY growth in the production and sales of high-performance magnetic materials. The gross profit margin also increased significantly, ultimately leading to a turnaround from losses to profits in Q1. Reviewing the price trend of rare earths, we can observe that: 》Click to view SMM rare earth spot prices 》Subscribe to view historical price trends of SMM metal spot prices Taking the price trend of Pr-Nd oxide in Q1 as an example: Compared to the end of 2024, the price of Pr-Nd oxide generally increased in Q1 2025. Reviewing the price trend of SMM Pr-Nd oxide in Q1, we can see that the average price of Pr-Nd oxide on March 31 this year was RMB 444,500/mt, an increase of RMB 46,500/mt compared to the average price of RMB 398,000/mt on December 31, 2024, with a Q1 increase of 11.68%. Comparing the daily average price of Pr-Nd oxide in Q1 2025 (RMB 429,605.26/mt) with that in Q1 2024 (RMB 381,646.55/mt), we can see that the daily average price in Q1 this year increased by 12.57% YoY. Reviewing the average price trend of SMM Pr-Nd oxide in 2024, we can see that the average price on December 31, 2024, was RMB 398,000/mt, a decrease of RMB 44,500/mt compared to the average price of RMB 442,500/mt on December 29, 2023, representing a 10.06% decline in 2024. The annual daily average price of Pr-Nd oxide in 2024 was RMB 391,871.9/mt, a decrease of RMB 137,402.89/mt compared to the annual daily average price of RMB 529,274.79/mt in 2023, representing a 25.96% YoY decline. According to the latest SMM quotes, the average price of SMM Pr-Nd oxide on May 28 was RMB 435,000/mt, unchanged from the previous trading day. It is reported that recently, most rare earth miners are still reluctant to sell their holdings, with low enthusiasm for shipping. Separation plants are facing difficulties in sourcing raw materials. After a series of large-scale raw material purchases by major plants boosted the confidence of some suppliers, leading to an increase in rare earth prices, with the end of the major plants' purchasing activities, the market is currently experiencing strong wait-and-see sentiment. Downstream buyers are cautious in purchasing, and on May 27, the prices of rare earth oxides generally showed a slight downward trend. Downstream purchasing enthusiasm was low, with relatively few actual transactions in the market, and the price of Pr-Nd fluctuated within a narrow range. It is expected that short-term rare earth prices may remain relatively stable amid increasingly intense back-and-forth negotiations between upstream and downstream.

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.

JL MAG Rare-Earth responded that in 2024, the company's capacity utilization rate exceeded 90%. The production of high-performance magnetic material blanks reached approximately 29,300 mt, up 39.48% YoY, while the sales of high-performance magnetic material finished products reached approximately 20,900 mt, up 37.88% YoY, both setting record highs for the company. According to publicly available industry statistics, the company has become the top-ranked enterprise in terms of production and sales in the rare earth permanent magnet industry both domestically and globally.

JL MAG Rare-Earth responded: Throughout 2024, the company's capacity utilization rate exceeded 90%. The production of high-performance magnetic material blanks reached approximately 29,300 mt, up 39.48% YoY, while the sales of high-performance magnetic material finished products reached approximately 20,900 mt, up 37.88% YoY, both setting new historical highs for the company. According to publicly available industry statistics, the company has become the top-ranked enterprise in terms of production and sales in the rare earth permanent magnet industry both nationally and globally.

JL MAG Rare-Earth responded: Throughout 2024, the company's capacity utilization rate exceeded 90%. The production of high-performance magnetic material blanks reached approximately 29,300 mt, up 39.48% YoY, while the sales of high-performance magnetic material finished products reached approximately 20,900 mt, up 37.88% YoY, both setting new historical highs for the company. According to publicly available industry statistics, the company has become the top-ranked enterprise in terms of production and sales in the rare earth permanent magnet industry both nationally and globally.

[SMM Commentary: Major Breakthrough in Semi-Direct Drive Permanent Magnet Wind Turbines – Will the Rare Earth Permanent Magnet Industry Usher in Significant Benefits?] On January 3, the world's first 20MW-class evaporative cooling semi-direct drive permanent magnet wind turbine, jointly developed by the Ganjiang Innovation Research Institute of the Chinese Academy of Sciences and CRRC Yongji Electric Co., successfully rolled off the production line at the Shandong Green Energy Industrial Park of CRRC Yongji Electric Co. This marks a significant success in the innovative application of evaporative cooling technology in the field of large-scale offshore wind turbines.

[SMM Commentary: Major Breakthrough in Semi-Direct Drive Permanent Magnet Wind Turbines – Will the Rare Earth Permanent Magnet Industry Usher in Significant Benefits?] On January 3, the world's first 20MW-class evaporative cooling semi-direct drive permanent magnet wind turbine, jointly developed by the Ganjiang Innovation Research Institute of the Chinese Academy of Sciences and CRRC Yongji Electric Co., Ltd., successfully rolled off the production line at the Shandong Green Energy Industrial Park of CRRC Yongji Electric Co., Ltd. This marks a significant success in the innovative application of evaporative cooling technology in the field of large offshore wind turbines.