The minutes of Tianhe Magnetics' investor briefing held on May 7 showed: 1. What is the trend in the revenue share of the NEV business, and how is the recovery in wind power, consumer electronics, and other segments? Tianhe Magnetics responded: Hello, thank you for your attention! The company's products are widely used in NEVs and parts, wind power, energy-efficient home appliances, consumer electronics, and other fields. Its clients are all industry leaders, and the company has been deeply integrated into the core supply chains of top-tier players in and outside China. During the reporting period, NEVs and parts remained the downstream segment with the highest share; wind power and consumer electronics segments recovered and grew YoY. The company adheres to a diversified strategy, deepens strategic cooperation with clients, strengthens client loyalty, and continues to expand downstream applications to support steady business growth. 2. What is the specific progress of "small-batch delivery" of dedicated magnets for humanoid robots, and what is the expected revenue contribution? Tianhe Magnetics responded: Hello, thank you for your attention! In the humanoid robot field, the company works closely with relevant clients to jointly conduct R&D and trial production of related projects. The specific revenue contribution is directly linked to the promotion and application progress of humanoid robots. 3. Against the backdrop of tightening rare earth export controls, how can the sustainability of the 44% ex-China business be ensured? Tianhe Magnetics responded: Hello, thank you for your attention! The company coordinates and obtains export licenses from the Ministry of Commerce in an orderly manner based on client orders to ensure the smooth and sustained operation of its export business. At the same time, the company actively expands markets outside China, deepens engagement with existing clients and develops new clients, increases efforts in developing zero-heavy-rare-earth products, and scales up product exports to ensure steady growth in ex-China performance. Tianhe Magnetics' Q1 2026 report disclosed on April 28 showed: the company achieved total operating revenue of 594 million yuan, up 13.12% YoY; net profit attributable to the parent company was 47.873 million yuan, up 33.41% YoY. Tianhe Magnetics' Q1 report showed: raw material prices remained at high levels, and selling prices of some sales orders were raised, which in turn affected related profit indicators. Tianhe Magnetics' annual report showed: 2025 was the inaugural year of Tianhe Magnetics' entry into the capital market, and the company embarked on a new phase of high-quality development. Positioned at the forefront of the industry, amid the trend of high-end, intelligent, and green development in the rare earth industry, the company anchored on technological innovation and intelligent management as its core, deepened collaborative partnerships with clients, continuously optimized its supply chain layout, steadily released capacity from IPO-funded projects, and progressively implemented automated production line upgrades and green process improvements. Meanwhile, the company actively expanded its product portfolio and industrial reach into injection-molded magnets, bonded magnets, and magnetic assemblies to provide clients with comprehensive rare earth permanent magnet solutions. In addition, the company accelerated its positioning in emerging sectors such as humanoid robots and the low-altitude economy to build momentum for long-term growth. In 2025, the company achieved operating revenue of 2.346 billion yuan, down 9.47% YoY, total profit of 170.908 million yuan, up 18.81% YoY, and net profit of 161.161 million yuan, up 18.43% YoY. In its annual report, when introducing its main business, products, and application fields, Tianhe Magnetics stated: The company is a leading high performance rare earth permanent magnet material provider in China. With the corporate vision of "being a leader in permanent magnet material innovation," the company is primarily engaged in the R&D, production, and sales of high performance rare earth permanent magnet materials such as sintered NdFeB and sintered SmCo, while extending its industrial reach into injection-molded magnets, bonded magnets, and magnetic assemblies to provide clients with comprehensive rare earth permanent magnet solutions. With independent R&D and technological innovation at its core, and guided by the application scenarios and development needs of downstream cutting-edge fields such as NEVs and auto parts, wind power generation, intelligent manufacturing, and 3C consumer electronics, as well as emerging industries such as humanoid robots and the low-altitude economy, the company effectively leverages the fundamental and pioneering role of rare earth permanent magnets as key strategic materials, continuously advancing the innovation and application of high performance, resource-efficient rare earth permanent magnet materials to drive downstream technological innovation, product upgrades, and industrial transformation. Regarding the company's business plan, Tianhe Magnetics stated in its annual report: 2026 is the second year since Tianhe Magnetics' listing and the opening year of the 15th Five-Year Plan. Standing at a new starting point, the company adopts "innovation" as its annual development theme, upholds the philosophy of "breaking conventions and embracing change," and continues to deepen its presence in the high performance rare earth permanent magnet material field. Leveraging its two rare earth bases in Baotou, the company plans to focus on core technology upgrades and high-end market expansion both in and outside China, seize the strategic opportunities of the global energy transition and intelligent development, and drive "development" through "innovation." Under the leadership of the board of directors, the company plans to further integrate resources, leverage its strengths, and systematically advance various initiatives around its business objectives to ensure high-quality and sustainable development. In 2026, the company plans to focus on the following initiatives: 1. With "innovation" at the core, continuously strengthen R&D investment and drive product and technology upgrades. 2. Pursue new frontiers: focus on expanding new products, new clients, and new markets. 3. Continuously strengthen production and quality management to improve yield and turnover efficiency. 4. Deepen the construction of digital smart factories to continuously enhance production efficiency. 5. Steadily advance IPO-funded and new project construction to expand capacity and support performance growth. (1) Continue to advance IPO-funded project construction. In 2026, the company plans to continue advancing the implementation of IPO-funded projects as planned. Upon full production, the company will reach an annual capacity of 12,300 mt. The company plans to continuously improve manufacturing efficiency through automated production line upgrades, digital management system deployment, and green production process transformation, ensuring capacity alignment across all stages from blank production to finished product inspection, and laying a solid foundation for performance growth. (2) Advance the Tianhe New Materials project construction. The Phase I of the "Tianhe New Materials Rare Earth Zero-Carbon Industrial Park (High Performance Rare Earth Permanent Magnets and Assemblies, Equipment Manufacturing and R&D Project)" invested and constructed by the company's subsidiary Tianhe New Materials has been launched. Upon completion, the project will further expand the business scale and enhance the company's overall profitability, market competitiveness, and risk resilience. 6. Enhance intelligent equipment manufacturing capabilities and cultivate new growth drivers. 7. Management empowerment: continuously strengthen organizational and talent development. 8. Continue to improve ESG efforts and promote sustainable development. 9. Strengthen investor relations and market capitalization management to drive sustained enhancement of company value. When disclosing the risk of raw material price fluctuations, Tianhe Magnetics stated: The main raw materials required for the company's production are rare earth metals, which are relatively expensive and subject to notable fluctuations due to multiple factors including macro economy, trade environment, industrial policies, and market supply and demand. Although rare earth permanent magnet material enterprises can dynamically adjust product selling prices based on factors such as raw material price changes, some existing order prices are locked in, and price adjustments for new orders also involve negotiation cycles, so product price adjustments typically lag behind raw material price fluctuations. If raw material prices continue to swing wildly in the future and the company fails to respond in a timely and effective manner, it may adversely affect business performance. Countermeasures: To address this risk, the company continuously strengthens supply chain management, signs long-term agreements with major suppliers to establish stable partnerships, and implements a scientific raw material reserve strategy to smooth out the impact of price fluctuations. A review of the 2025 price performance of Pr-Nd alloy, a key raw material for NdFeB, showed: the average price of Pr-Nd alloy on December 31, 2025 was 735,000 yuan/mt, up 50.31% compared with its average price of 489,000 yuan/mt on December 31, 2024. The annual daily average price of Pr-Nd alloy in 2025 was 602,181.07 yuan/mt, up 117,476.52 yuan/mt or 24.24% YoY compared with the annual daily average price of 484,704.55 yuan/mt in 2024. A review of the price trend of Pr-Nd alloy in Q1 this year showed: the average price of Pr-Nd alloy on March 31 this year was 880,000 yuan/mt, up 145,000 yuan/mt or 19.73% compared with its average price of 735,000 yuan/mt on December 31, 2025. The daily average price of Pr-Nd alloy in Q1 this year was 913,035.71 yuan/mt, up 385,018.17 yuan/mt or 72.92% compared with the Q1 2025 daily average price of 528,017.54 yuan/mt. On May 8, the price of Pr-Nd alloy was 925,000–930,000 yuan/mt, with an average price of 927,500 yuan/mt, down 0.8% from the previous trading day. Currently, rare earth market prices continue to weaken. Pr-Nd market, downstream purchasing inquiries showed no improvement, and suppliers of oxides maintained a low-price selling strategy to facilitate shipments. However, Pr-Nd oxide futures prices recovered somewhat on the morning of May 8, narrowing the price decline of Pr-Nd oxide. Metal market, constrained by sluggish downstream inquiries, factories showed limited willingness to actively quote, and some suppliers chose to continue lowering their offers. However, as the decline in spot oxide prices narrowed, the actual decline in Pr-Nd alloy prices also narrowed. Nevertheless, downstream wait-and-see sentiment remained strong, and the market trading atmosphere did not see effective improvement. In the short term, Pr-Nd product prices are expected to move sideways amid the tug-of-war between upstream and downstream players.

On April 27, Zhong Ke San Huan's share price rose. As of the close on April 27, the share price was up 0.84% to 11.99 yuan per share. On the news front, on April 25, Zhong Ke San Huan disclosed its Q1 2026 report, which showed that the company achieved revenue of 1.677 billion yuan in Q1, up 14.79% YoY, and net profit attributable to shareholders of the publicly listed firm of 16.3958 million yuan, up 21.54% YoY. In response to questions from survey participants, Zhong Ke San Huan stated that the company had established a technology innovation centre, completed the initiation and advancement of key R&D projects, built a platform for sharing technological achievements, and achieved efficient transformation and reuse of technological achievements within the group. The company continued to increase R&D investment, focused on tackling core industry technologies, undertook multiple national major science and technology projects, and achieved industrialisation of many results. The company deepened industry-academia-research collaborative innovation, carried out in-depth cooperation with scientific research institutes, and jointly developed innovative products such as high performance magnetic materials and wind power-dedicated magnetic materials. The investor relations activity record disclosed by Zhong Ke San Huan on April 15 showed: 1. Despite strong earnings growth, the share price declined continuously for a month? Zhong Ke San Huan responded: Share prices are influenced by multiple factors and are subject to uncertainty in the short term. The company has been committed to growing and strengthening its core business, striving to achieve long-term, stable, and healthy development through continuous R&D innovation and market expansion, and endeavouring to create long-term value for shareholders and investors. Thank you! 2. In which direction will future R&D efforts be focused? Zhong Ke San Huan responded: Hello! The company's current key R&D projects include: research and development of new-type grain boundary diffusion technology, development of anisotropic bonded magnets, R&D and industrialisation of high-efficiency energy-saving NdFeB new-type equipment line processes, research on preparation processes for high performance NdFeB magnets, research on mechanisms of heavy rare earth reduction combination technologies, and research on grain boundary diffusion of magnets with high-abundance element substitution. Going forward, the company will continue to focus on common key technological bottlenecks in the industry, actively participate in national and local major scientific research projects, and develop high performance rare earth permanent magnet materials for strategic emerging fields such as NEVs, robotics, and the low-altitude economy. The company will build a full-chain innovation system covering "mechanism research—prototype verification—mass production verification—product transformation," deepen industry-academia-research collaboration and coordination with downstream clients, proactively position itself in new-type permanent magnet material technologies, and build a core technology moat. Thank you! 3. Has the company expanded its business in new energy and other dual-carbon-related fields? Zhong Ke San Huan responded: Hello! As an important energy-saving material, the rare earth permanent magnet materials produced by the company have been applied for many years in fields such as NEVs, energy-saving home appliances, and industrial robots. With the continuous development of low-carbon economic sectors such as robotics, industrial motors, the low-altitude economy, and digitalisation and intelligent technologies, there remain broad application prospects ahead, which will continue to bring new market opportunities for the company. Thank you! 4. What is the company's expansion target in markets outside China in 2026? Zhong Ke San Huan responded: Hello! In 2025, the company's revenue from outside China accounted for 49.45%. The company will continue to optimize market development strategies based on market conditions, deepen engagement with core clients and key markets, actively expand into emerging application fields, improve sales channels and service systems, and enhance the breadth and depth of market coverage; continuously optimize the market structure in and outside China to strengthen market risk resilience. Thank you! 5. What does the company plan to do to improve competitiveness? The earnings every year just go to paying salaries? Can the financial statements be more stable, with impairments fluctuating wildly? Zhong Ke San Huan responded: The company is one of the world's leading rare earth permanent magnet suppliers. In order to continue maintaining the company's leading position in the industry, we focus on improving competitiveness in the following areas: targeting major scientific and technological issues in the future rare earth permanent magnet industry and major demands of the low-carbon economy, continuously researching new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and developing and producing high performance rare earth permanent magnetic materials suitable for low-carbon energy saving, intelligent manufacturing, and traditional high-tech fields; further improving the technology innovation and intellectual property system, rationally allocating scientific and technological resources, and establishing innovation platforms with smooth information flow, close integration, and efficient processes both within and outside the company. Fully leveraging the company's advantageous resources, establishing long-term new product development partnerships with top international clients, and continuously enhancing innovation capabilities; continuously intensifying market development efforts, refining sales channels construction, improving service capabilities, strengthening brand promotion, innovating marketing models, and continuously increasing market share, with particular attention to downstream high-end market and emerging application field demands; accelerating the informatization, automation, and intelligentization of production lines, further enhancing equipment automation levels, continuously improving digital and intelligent management and control of production processes, and driving further improvements in production efficiency, product quality, and profitability; continuing to seek cooperation opportunities in the upstream rare earth raw material industry to support the company's sustainable development; while steadily developing the rare earth permanent magnetic material core business and safeguarding the company's competitive advantages in this field, actively expanding into new industrial development areas and extending into downstream application fields at appropriate times. 6. Peers in the rare earth permanent magnet sector have delivered strong performance and market capitalization, yet the company, as a significant player in the rare earth permanent magnet sector, has been consistently disappointing in terms of performance and share price. What concrete measures does the management plan to take to improve performance and market capitalization? Zhong Ke San Huan responded: Hello! The company is one of the world's leading rare earth permanent magnet suppliers. In order to continue maintaining the company's leading position in the industry, we focus on the following areas: targeting major scientific and technological issues in the future rare earth permanent magnet industry and major demands of the low-carbon economy, continuously researching new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and developing and producing high performance rare earth permanent magnetic materials suitable for low-carbon energy saving, intelligent manufacturing, and traditional high-tech fields; further improving the technology innovation and intellectual property system, rationally allocating scientific and technological resources, and establishing innovation platforms with smooth information flow, close integration, and efficient processes both within and outside the company. Fully leverage the Company's advantageous resources, establish long-term new product development partnerships with top international clients, and continuously enhance innovation capabilities; continuously intensify market development efforts, deepen channel development, improve service capabilities, strengthen brand promotion, innovate marketing models, and continuously increase market share. Pay particular attention to demand in downstream high-end markets and emerging application fields; accelerate the informatization, automation, and intelligent upgrading of production lines, further enhance the level of equipment automation, continuously improve digital and intelligent management and control of production processes, and drive further improvements in production efficiency, product quality, and profitability; continue to seek cooperation opportunities in the upstream rare earth raw material industry to support the Company's sustainable development; while steadily developing the core business of rare earth permanent magnet materials and safeguarding the Company's competitive advantages in this field, actively expand into new industrial development areas and extend into downstream application fields at appropriate times. Thank you! 7 How is the progress of intelligent and automated upgrades at each production site? Zhong Ke San Huan responded: Hello! Based on industry characteristics and actual conditions, the Company has been actively pursuing informatization/automation/intelligent transformation and upgrades, continuously promoting the integrated development of informatization and digitalization with enterprise operation and management, improving management and production efficiency, and providing solid support for the Company's overall digital transformation. Thank you! 8 What are the Company's target plans regarding high-performance magnets for humanoid robots? Zhong Ke San Huan responded: Hello! The NdFeB permanent magnet materials produced by the Company have been applied in the industrial robot field for many years. Currently, the humanoid robot industry has not yet achieved large-scale mass production. Once commercialization is realized, it is expected to bring positive impacts to the NdFeB permanent magnet materials industry and the Company. In recent years, the Company has been continuously conducting technology development in this field, actively communicating with downstream application clients, and striving to capture potential market opportunities. Thank you! 9 How does the Company hedge against the risk of raw material price fluctuations? Zhong Ke San Huan responded: Hello! The Company will continue to monitor raw material price movements and actively address the adverse impacts of raw material price fluctuations through measures such as strengthening concentrated procurement of raw materials and optimizing inventory management. Thank you! 10 Please share the Company's performance guidance for 2026. Zhong Ke San Huan responded: Hello! For relevant information, please refer to the announcements released by the Company on its designated information disclosure media. Thank you! 11 Does the Company have any plans for expansion into emerging fields? Zhong Ke San Huan responded: Hello! In response to major scientific and technological challenges in the future rare earth permanent magnet industry and major demands of the low-carbon economy, the Company continuously researches new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and develops and produces high-performance rare earth permanent magnet products suitable for low-carbon energy conservation, intelligent manufacturing, and other emerging high-technology application fields. Thank you! 12. What is the status of the commercialisation of industry-academia-research collaboration outcomes? Zhong Ke San Huan responded: Hello! The Company established a Technology Innovation Centre, completed the initiation and advancement of key R&D projects, built a technology achievement sharing platform, and achieved efficient conversion and reuse of technology achievements within the Group. The Company continued to increase R&D investment, focused on tackling core industry technologies, undertook multiple national major science and technology projects, and achieved industrialisation of most outcomes. The Company deepened industry-academia-research collaborative innovation, conducted in-depth cooperation with scientific research institutes, and jointly developed innovative products such as high performance magnetic materials and wind power-dedicated magnetic materials. Thank you! 13. What is the revenue contribution from the low-altitude economy segment? Zhong Ke San Huan responded: Hello! The Company's products have been applied in the drone sector. Currently, products used in drones account for a relatively small proportion of the Company's total shipments. Thank you! Zhong Ke San Huan released its 2025 annual report on the evening of March 27, which showed that: In 2025, facing a complex and volatile external environment and increasingly fierce industry competition, the Company's management and all employees worked together, continuously optimised business management, actively adopted effective measures such as cost reduction and efficiency improvement, and strived to promote the Company's stable operations and healthy development, achieving significant YoY growth in operating performance. During the period, the Company's foreign exchange gains increased to a certain extent compared with the same period of the previous year, and the Company's asset impairment losses decreased significantly compared with the same period of the previous year. During the reporting period, the Company achieved operating profit of 176.573 million yuan, a YoY increase of 372.87%; total profit of 179.8863 million yuan, a YoY increase of 379.71%; net profit attributable to shareholders of the publicly listed firm of 91.3186 million yuan, a YoY increase of 660.50%; and after excluding the impact of non-recurring gains and losses such as government subsidies, net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses of 60.6065 million yuan during the reporting period, a YoY increase of 451.03%. Regarding the Company's main business and product applications, Zhong Ke San Huan stated in its 2025 annual report: The Company's main products are sintered NdFeB and bonded NdFeB permanent magnet materials, which are widely used in NEVs, automotive motors, consumer electronics, robots, industrial motors, energy-saving elevators, variable-frequency air conditioners, wind power generation, and other fields. Amid the global trend of low-carbon economy, countries around the world have focused on environmental protection and low-carbon emissions as key technology areas. Rare earth permanent magnet materials, represented by sintered NdFeB and bonded NdFeB, play an important role in establishing a complete low-carbon and green industry chain for emission reduction. Humanoid robots and the low-altitude economy are two emerging growth drivers for high performance NdFeB demand. The former boosts explosive growth in high-end magnetic materials through joint servo motors, while the latter expands demand for high power density magnetic materials driven by eVTOL aircraft and drones. Together, they are reshaping the demand structure and technological direction of rare earth permanent magnets. Currently, the humanoid robot industry has not yet achieved large-scale mass production. Once commercialisation is realised, it will have a positive impact on the NdFeB permanent magnet materials industry and the Company. During the reporting period, the Company focused on the R&D of high performance magnets for humanoid robots to capture market opportunities following their future commercialisation. Meanwhile, the Company actively and continuously monitored developments in the low-altitude economy sector, striving to seize potential market opportunities. Regarding the business plan for 2026, Zhong Ke San Huan stated: In 2026, the Company will closely align with its future development strategy, focus on core objectives, advance the implementation of key initiatives, and drive sustained improvement in business operations. (1) Continue to strengthen technological R&D, focus on key R&D directions, intensify efforts in core technology breakthroughs, promote the industrialisation of R&D achievements, and enhance product technological content and market competitiveness; improve R&D management and incentive mechanisms to stimulate the innovation vitality of R&D teams. (2) Optimise market development strategies, deepen engagement with core clients and key markets, actively expand into emerging application fields, improve sales channels and service systems, and enhance the breadth and depth of market coverage; continuously optimise the market structure in and outside China to strengthen market resilience against risks. (3) Deepen production and operations management, advance the intelligent and automated upgrading of production sites, optimise production processes and resource allocation, and further reduce costs and increase efficiency; strengthen supply chain coordination management to ensure stable raw material supply and controllable costs. (4) Advance digital transformation, expand the coverage of information system applications, improve business-finance integration, enhance data consolidation and analytical capabilities, and empower business management and decision-making through digitalisation. (5) Strengthen the talent and incentive system, continue to recruit talent in key areas, improve talent development and career pathways, and fully mobilise employee enthusiasm and creativity. (6) Strengthen compliance management, continuously track changes in industry policies, dynamically optimise the compliance management system, and ensure that all business activities of the Company strictly comply with laws, regulations, and regulatory requirements. In highlighting the raw material supply and price risks that the Company may face, Zhong Ke San Huan stated in its 2025 annual report: Rare earth raw materials are the core input for the Company's product manufacturing. Their supply is significantly affected by policies such as industry rectification and production controls, and there may be risks of tight supply. Meanwhile, rare earth raw material prices are influenced by multiple factors including the international economic environment, policy regulation, and market supply and demand. Price fluctuations may cause fluctuations in the Company's production costs, thereby affecting business performance. A review of the 2025 price performance of Pr-Nd alloy, a key raw material for NdFeB, shows that the average price of Pr-Nd alloy on 31 December 2025 was 735,000 yuan/mt, compared with 489,000 yuan/mt on 31 December 2024, representing an increase of 50.31% in 2025. The annual daily average price of Pr-Nd alloy in 2025 was 602,181.07 yuan/mt, compared with its annual daily average price of 484,704.55 yuan/mt in 2024, representing an increase of 117,476.52 yuan/mt, up 24.24% YoY. Looking back at the price trend of Pr-Nd alloy in Q1 this year: the average price of Pr-Nd alloy on March 31 this year was 880,000 yuan/mt, up 145,000 yuan/mt or 19.73% compared with its average price of 735,000 yuan/mt on December 31, 2025. The Q1 daily average price of Pr-Nd alloy this year was 913,035.71 yuan/mt, up 385,018.17 yuan/mt or 72.92% compared with the Q1 2025 daily average price of 528,017.54 yuan/mt. According to SMM's latest quotes: on April 27, the price of Pr-Nd alloy was 940,000-960,000 yuan/mt, with an average price of 950,000 yuan/mt, unchanged from the previous trading day. Currently, the rare earth market is showing a clear divergence: the oxide market experienced notable fluctuations, while the metal market remained relatively stable. Focusing on the Pr-Nd market, affected by ongoing fermentation of market news, Pr-Nd oxide futures prices continued to decline, and some oxide traders lowered their offers accordingly. However, most producers chose to suspend quoting, with a strong wait-and-see sentiment prevailing in the market and actual trading volumes remaining sluggish. In the metal market, despite the continued decline in oxide prices, metal enterprises showed limited willingness to sell at low prices due to inventory cost support, keeping their offers relatively firm. Magnetic material enterprises adopted a cautious purchasing stance, mostly inclined to seek lower prices for procurement, leading to a stalemate in market trading. In the short term, affected by the tug-of-war between upstream and downstream, Pr-Nd product prices are expected to move sideways. Recommended reading:

China Northern Rare Earth disclosed its 2025 annual report on April 18, which stated: 2025 was a pivotal year for the reshaping of the global rare earth industry landscape, a pivotal year for the strategic elevation of China's rare earth industry, and a pivotal year for the company to achieve historic breakthroughs in its business development. Over the past year, the company implemented national industrial policies and enhanced its capacity to serve national strategies. Production of major products hit record highs , with operating revenue reaching 42.563 billion yuan, up 29.11% YoY; net profit attributable to shareholders of the publicly listed firm reaching 2.251 billion yuan, up 124.17% YoY. The company maintained its industry-leading position in revenue, profit, output value, and market capitalization, successfully concluding the "14th Five-Year Plan" period. It effectively safeguarded the security and stability of China's rare earth industry chain and supply chain, and elevated China's rare earth industry to a new level of high-quality development. The explanation of operating revenue changes disclosed in China Northern Rare Earth's announcement stated: In 2025, amid an overall rise in rare earth market prices, the company seized market opportunities and coordinated the advancement of the "Five Unifications" scientific production model. Production and sales of major products, including smelting and separation products, rare earth metals, rare earth new materials, and rare earth permanent magnet motors, all achieved YoY growth. The main business disclosed in China Northern Rare Earth's 2025 annual report stated: Adhering to the development philosophy of "optimizing and expanding rare earth raw materials, refining and strengthening rare earth new materials, and specializing and differentiating end-use application products," the company is capable of producing 11 major categories, over 100 varieties, and more than 1,000 specifications of rare earth products. The company's products are mainly divided into rare earth raw material products, rare earth new material products, and rare earth end-use application products. Among them, the company's rare earth raw material products include rare earth salts, rare earth oxides, and rare earth metals, which serve as the primary raw materials for downstream rare earth new material and new material product processing enterprises. Rare earth new material products include rare earth magnetic materials, polishing materials, hydrogen storage materials, catalytic materials, and rare earth alloys. The company's rare earth end-use application products mainly include rare earth permanent magnet high-efficiency energy-saving motors, solid-state hydrogen storage cylinders, and hydrogen-powered two-wheelers. Regarding the business plan for 2026, China Northern Rare Earth stated in its 2025 annual report: 2026 is the opening year of the "15th Five-Year Plan" period and a critical year for the company to advance high-quality development and accelerate its transformation into a world-class leading rare earth enterprise. The company will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, take forging a strong sense of community for the Chinese nation as the main theme, fully implement the spirit of the 20th National Congress of the Communist Party of China and its successive plenary sessions, implement the spirit of General Secretary Xi Jinping's important speeches and instructions on Inner Mongolia and the rare earth industry, as well as the decisions and deployments of the Inner Mongolia Autonomous Region, Baotou Municipality, and other higher-level authorities. The company will maintain the general principle of seeking progress while ensuring stability, fully and accurately implement the new development philosophy, shoulder its responsibilities and mission, steadily improve operational quality and efficiency, build a comprehensive all-element and all-category industrial system, promote the deep integration of technological innovation and industrial innovation, accelerate the pace of deepening reform, enhance the level of modern governance, continuously strengthen core functions and enhance core competitiveness, accelerate the building of a world-class leading rare earth enterprise, achieve a good start for the "15th Five-Year Plan" period, and make new and greater contributions to the construction of the "two rare earth bases." Key production and operating targets for 2026 (these targets are planning targets only; whether they can ultimately be achieved is subject to uncertainty and do not constitute substantive commitments by the Company to investors; investors and relevant parties should maintain sufficient risk awareness and understand the differences between plans, forecasts, and commitments): achieve operating revenue of over 44 billion yuan and total profit of over 3.5 billion yuan. On the premise of meeting operating targets, ensure that employee income moves in tandem with the enterprise's economic performance and labor productivity. Centering on the work targets, the following key initiatives will be carried out: 1. Stabilize production, promote sales, and improve quality and efficiency, demonstrating a new outlook of a strong start. Based on the national rare earth total volume control indicators, organize and arrange production schedules scientifically. Make every effort to ensure stable and high output from Phase I of the green smelting upgrade and renovation project. Enhance the capability of full-element rare earth extraction and separation. Optimize rare earth metal production processes to improve product quality and capacity scale. Release newly added magnetic material alloy capacity, with per-mt product costs reaching industry-leading levels. The polishing segment will leverage resource and capacity advantages, implement transformation toward high-end and precision products, and enhance product competitiveness. Rare earth additives will focus on high value-added product development to ensure stable product supply. Monitor mainstream product price trends and maintain market stability. Achieve production-sales balance for rare earth lanthanum-cerium products while actively digesting inventories. Strengthen procurement and sales channel development for rare earth Pr-Nd products to enhance market control. The functional materials segment will seize policy and market opportunities to secure orders. Rare earth permanent magnet motors will target frontier fields to achieve new breakthroughs in sales. Refine cost management and implement comprehensive measures to deepen cost reduction, quality improvement, and efficiency enhancement. Optimize financing methods to provide low-cost funding support for the Company's development. 2. Optimize layout and add momentum, shaping new advantages in industrial development. Efficiently advance the construction of key projects and accelerate the construction of Phase II of the green smelting upgrade and renovation project. Promote the Northern Jinlong separation production line to achieve trial production within the year. Promote stable and smooth production at the Jinmeng rare earth secondary resource project. Build a full-category industrial system and accelerate the implementation of joint venture and cooperation projects. Promote stable production and full production at the Northern Magnetic Material digital green technology empowerment project, and expand segmented application fields of rare earth permanent magnet materials. Strengthen the promotion and application of solid-state hydrogen storage materials and expand new applications in the rare earth catalysis field. Enhance the level of digital and intelligent management, deepen the construction of information management and control systems, continue to advance the in-depth application of business systems such as human resources, discipline inspection, and engineering projects, and further consolidate the digital form of business operations. Build a procurement-sales collaborative management platform to form a closed-loop business process covering "procurement, production, inventory, sales, and finance," achieving business-finance integration. Advance the construction of green smelting smart factories, progressively cultivate major production units to build smart factories, and continuously improve the CNC rate of key processes and the digitalization rate of production equipment. 3. Coordinating internal and external efforts to tackle key challenges, empowering innovation to seek new breakthroughs. Increase high-quality scientific and technological supply and strengthen R&D investment intensity. Focus on project deployment and research breakthroughs in areas such as cost reduction in smelting and separation, quality improvement in metal electrolysis, development of new rare earth materials, and expansion of new rare earth applications, developing new products, new processes, and new equipment. Conduct high-value patent cultivation and standards development and revision in key areas across the entire industry chain. Improve the "1+2+N+4" rare earth industry technology innovation platform system, launch high-level rare earth innovation platform projects, and comprehensively optimize and integrate technology innovation resources. Further leverage the role of the industrial transformation center, streamline the pathway for commercializing research outcomes, and enhance the quality and efficiency of technology transfer. Deepen the integration of industry, academia, and research, and promote the establishment of joint laboratories with renowned universities in China. Carry out "Three Firsts" application work in areas such as NdFeB alloy production equipment, rare earth permanent magnet motors, rare earth polishing fluids, and rare earth functional additives, and achieve substantive results. Further leverage the functions of the company's collaborative innovation centers across various industrial sectors, strengthen resource coordination and centralized management, and implement organized research. Focus on tackling key common technologies, promote close interaction and coordinated development among subsidiaries, and drive the output and transfer incubation of major scientific and technological achievements. Introduce the technology readiness level evaluation system into the entire R&D management process to establish quantitative assessment channels. Continue to strengthen the recruitment and cultivation of scientific and technological talent, providing full support in terms of compensation, research funding, and living benefits. 4. Deepening and substantiating reforms to stimulate new vitality in enterprise development. Enhance the company's management and control effectiveness, improve the board of directors' construction and authorization system, explore the formulation of management systems for the performance of duties by full-time and part-time chairpersons, and elevate the board's standardized performance and scientific decision-making capabilities. Optimize the company's management and control matters, processes, and authorities to improve decision-making efficiency. Promote the optimization and integration of subsidiaries. Implement the requirements of the "doubling" initiative for specialized, refined, distinctive, and innovative enterprises, and cultivate additional such enterprises. Deepen the reform of the three systems, improve the cadre assessment and evaluation system, and strengthen the rigid implementation of assessment results. Optimize the selection and appointment mechanism, intensify competitive recruitment and market-oriented hiring, implement "3+6" contract-based management, and firmly establish a talent selection orientation that prioritizes actual performance and practical contributions. Closely align with the company's development and actual business needs, scientifically evaluate organizational structures, reasonably reduce management layers, and enhance management effectiveness. Leverage new projects and production lines to establish shared employment mechanisms, promoting dynamic position integration and workforce optimization. Deepen the reform of the compensation distribution system, build a "same-level, broad-grade" compensation system based on position value and performance contributions, strengthen the linkage between subsidiary performance and the company's overall profitability, and drive a close connection between employee income and enterprise profitability as well as individual contributions. 5. Striving for Excellence in Management to Elevate Modern Governance to New Heights. Strengthened strategic security management, enhanced information resource integration, and actively participated in the formulation of national industrial policies. Strengthened financial management by rigorously implementing comprehensive budget management, further reinforcing capital control, and establishing a capital risk prevention and control system. Enhanced financial informatization by building a standardized, efficient, and well-adapted financial shared services system. Strengthened risk and compliance management by improving the compliance management system to ensure that business development and compliance management advanced in tandem. Established a legal affairs shared system to reduce legal service costs for subsidiaries and strengthen the company's overall legal risk prevention and control capabilities. Improved the comprehensive risk management system and optimized risk management across the entire process of strategy, operations, and management. Strengthened safety and environmental protection management, guided by the "10000" safety vision, to enhance intrinsic safety levels. Effectively carried out safety management of relevant parties. Rigorously implemented environmental protection accountability, improved integrated traceability management of solid waste across production, sales, transportation, and utilization, and enhanced emergency response capabilities. Strengthened talent management by reinforcing training and empowerment, implementing targeted training by level and category, and improving the competency of key personnel. Deepened specialized cultivation of high-level talent and strengthened the deep integration of talent development with the company's strategic growth. Innovated the training model for industrial workers, built a platform for skills inheritance and innovation, simultaneously consolidated talent reserves, optimized talent structure, and enhanced talent effectiveness. Strengthened market capitalization management by establishing a scientific market capitalization management philosophy, improving the ESG management system, and comprehensively leveraging measures such as information disclosure, investor relations management, cash dividends, mergers and acquisitions, and ESG on the basis of enhancing the company's value creation capabilities, to improve market capitalization management performance and maintain the company's position as the largest by market capitalization in the rare earth industry. When discussing potential risks, China Northern Rare Earth mentioned product price risk: Affected by internal and external factors such as macro economic conditions, cyclical industry fluctuations, changes in rare earth market supply and demand, intensified market competition, and geopolitical disruptions, prices of major rare earth products may fluctuate and decline, posing product price risk. Countermeasures: The company will closely monitor market conditions, strengthen market forecasting and analysis, innovate marketing models, adjust marketing strategies, improve product quality, vigorously expand markets, and increase product market share. While maintaining and expanding the marketing base for Pr-Nd products, the company will intensify marketing efforts for La-Ce products, optimize service quality, and improve client satisfaction. Leveraging the role of a major rare earth group, the company will stabilize confidence, stabilize expectations, and stabilize market operations, adopting comprehensive measures to overcome unfavourable factors and striving to mitigate the impact of product price risk on the company's operating performance. Looking back at the SMM Pr-Nd oxide price trend in 2025: the average price of Pr-Nd oxide on December 31, 2025 was 606,500 yuan/mt, compared with the average price of 398,000 yuan/mt on December 31, 2024, representing an increase of 52.39% in 2025. In comparison, the annual daily average price of Pr-Nd oxide in 2025 was 491,576.13 yuan/mt versus 391,871.9 yuan/mt in 2024, indicating a YoY increase of 25.45% in the daily average price in 2025. Driven by expectations of supply reduction due to partial shutdowns at separation plants, upstream suppliers raised their quotes rapidly, low-priced spot cargo in the market tightened quickly, pushing rare earth prices up for three consecutive days. According to SMM pricing, on April 20, the price of Pr-Nd oxide was 815,000-818,000 yuan/mt, with an average price of 816,500 yuan/mt, up 1.74% from the previous trading day. As the price of Pr-Nd oxide rose, wait-and-see sentiment in the market intensified, while downstream magnetic material enterprises had limited acceptance of high-priced metals, and purchasing enthusiasm declined. In the short term, supported by strong confidence among upstream suppliers to hold prices firm, Pr-Nd product prices are expected to hover at highs. For more information on rare earth fundamentals, technical aspects, and policy developments, please attend the ~ SMM Rare Earth Forum Contact: Wang Haiqiao Contact: 19818727891

[SMM Rare Earth News Flash] Ningbo Yunsheng released its 2025 annual performance report. Full-year revenue reached 5.464 billion yuan, up 8.39% YoY; net profit was 331 million yuan, up 247.95% YoY significantly; non-recurring net profit was 279 million yuan, up 185.27%. The company's NdFeB permanent magnet materials finished product sales volume reached 14,197 mt, up 10.29% YoY. Among them, sales revenue of NdFeB permanent magnet materials supplied in the form of magnetic material assemblies was 705 million yuan, up 59.69% YoY.

According to the investor relations activity record announced by Jintian Holdings on March 19 (March 10-12, 2026): 1. The Company’s 2025 earnings guidance and the reasons for the projected increase. Jintian Holdings replied: In 2025, the company implemented its “dual upgrade in products and clients” strategy, with product applications continuing to deepen in high-end fields; it stepped up expansion among clients outside China, and sales in markets outside China continued to grow; meanwhile, through digitalization initiatives, it improved operational and management efficiency, and the gross margin and profitability of its products improved YoY. The company expected net profit attributable to owners of the parent for 2025 to reach 700 million yuan to 800 million yuan, up 51.50%-73.14% YoY from the same period last year. 2. Progress of the company’s share repurchase. Jintian Holdings replied: From February 3, 2026 to February 28, 2026, the company had cumulatively repurchased 4,942,200 shares through centralized bidding, accounting for 0.29% of its current total share capital, with total funds paid of 56,676,944 yuan (excluding transaction costs). 3. The company’s industry position and competitive advantages. Jintian Holdings replied: The company had focused on the copper processing industry for 39 years and was one of the largest enterprises in China by scale and with the most complete industry chain. In 2024, the company achieved total production of 1.9162 million mt of copper and copper alloy materials, and its total production of copper semis ranked first globally. The company offered a wide range of copper products and could meet clients’ one-stop procurement needs for multiple categories of copper semis, including rods, tubes, plates and strips, and wires. Its copper products had been widely used in NEV, clean energy, communications technology, electrical power and equipment, chips and semiconductors, and other fields. At present, the company had developed a profound cultural heritage and outstanding organizational capability, with a significant market scale position and a global industrial footprint; it possessed leading manufacturing and R&D capabilities; it had built a specialized product matrix and formed a stable base of top-tier industry clients; and it had also established forward-looking green recycling technology barriers, laying a solid foundation for becoming a world-class base for copper products and advanced materials. 4. The capacity and business performance of the company’s rare earth permanent magnet products. Jintian Holdings replied: The company had entered the magnetic materials business in 2001. After more than 20 years of dedicated development, it had become one of the enterprises in China’s peer industry with relatively advanced technology and a well-developed product system. At present, the company had two magnetic material production sites in Ningbo and Baotou. Phase I of the Baotou site had commenced production, and the company’s annual capacity of rare earth permanent magnet materials had increased to 9,000 mt. The company was actively advancing the Phase II project at the Baotou site to further increase capacity to 13,000 mt. At the same time, through its newly established German subsidiary, the company accelerated its international expansion and increased its share in overseas markets. The company was among the first batch of enterprises to obtain a general export license for rare earth permanent magnet products, and it has continued to strengthen and advance export-related business. 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, robotics, consumer electronics, and medical devices. 5. The Company’s Business Development in the Chip Computing Power Sector. Jintian Co., Ltd. responded: With its outstanding electrical and thermal conductivity, copper has become a core material for advanced AI industry chip interconnects and heat dissipation in computing power facilities, and the transition of copper-based materials toward high value-added products has further accelerated. The company has a solid client base and technical reserves in the chip computing power sector, and it is also among the first companies globally to achieve large-scale supply of copper-based materials to leading enterprises in the above fields. Among them, the company’s high-precision special-shaped oxygen-free copper busbar products have been applied in multiple top-tier GPU cooling solutions of several global first-tier thermal module enterprises. Products independently developed by the company, such as copper heat pipes and liquid-cooling copper pipe & tube, have been supplied in batches for computing power server products of multiple top-tier enterprises. The company will closely monitor and follow market demand in the chip computing power sector, further improve its product portfolio, and enhance the competitive advantages of its products. 6. The Company’s Position Advantages and Business Achievements in the Secondary Copper Sector. Jintian Co., Ltd. responded: The company has continuously innovated new pathways for the green development of copper-based high-tech materials and has become one of the enterprises in China with the largest utilization of secondary copper and the highest comprehensive utilization rate. It is also one of the few companies in the global industry to achieve a closed-loop entire industry chain covering secondary copper recycling, purification, and deep processing. The company’s independently developed low-carbon secondary copper products significantly reduce carbon emissions while ensuring product performance, enabling it to provide downstream clients across the industry chain with high-quality, comprehensive one-stop green solutions for copper semis. In H1 2025, sales of the company’s green, high-end, low-carbon secondary copper products increased 61% YoY. Its product matrix now covers copper strip, copper wire, magnet wire, copper pipe & tube, copper busbar, copper billet, and more, and has been applied in fields such as high-end consumer electronics, the automotive industry, and electrical equipment. Specific applications include laptop cooling modules, mobile phone vibration motors, NEV power battery connections, and AC/DC power supplies. The products have achieved mass production in the products of multiple world-renowned clients, forming a new performance growth driver represented by “green low-carbon secondary copper products.” An investor asked on the investor interaction platform: Have the company’s copper billet products now become core supplies for top-tier enterprises such as DJI Innovation or EHang Intelligent?With the boom in the low-altitude economy’s payload flight market, have the company’s PEEK materials or high-strength copper alloys developed for drone motor bearings and airframe structural components seen explosive growth in orders? On March 19, Jintian Co., Ltd. stated on the investor interaction platform that the company had a solid client base and technical reserves in the low-altitude economy field. Among its products, high-precision free-cutting copper billet, with excellent properties such as high strength and wear resistance, had already been applied in airborne structural components of low-altitude aircraft. The company’s PEEK material products provide high-voltage drive stability technical solutions for the low-altitude economy’s payload flight market, and it had already carried out R&D cooperation with multiple top-tier enterprises in China. The company will closely monitor and follow market demand in the low-altitude economy field, further improve its product portfolio, and enhance its product competitive advantages. For specific related information, please refer to periodic reports. An investor asked on the investor interaction platform: Hello, Board Secretary. Recently, LME copper prices have risen sharply. Under the company’s strictly implemented hedging strategy, did this generate positive gains from closing positions during the reporting period, or was there a slight loss? Approximately how much was the amount? In addition, as the company’s revenue scale expanded, how well did net operating cash flow match net profit in 2025? Was there any cash flow strain caused by prepayments for raw material procurement? On March 19, Jintian Co., Ltd. stated on the investor interaction platform that the company’s copper processing products adopted a pricing model of “raw material prices + processing fee” and carried out hedging operations in strict accordance with the Hedging Management System to reduce the impact of raw material price fluctuations on the company’s net profit. At present, fluctuations in copper prices had a relatively small impact on the company’s operating performance. For specific related information, please refer to periodic reports. On March 18, when responding to investor questions on the interaction platform, Jintian Co., Ltd. stated that the company had continued to expand its technological leadership in high-voltage electromagnetic flat wire and had further advanced cooperation on new energy high-voltage electromagnetic flat wire projects with world-class OEMs and motor suppliers. As of H1 2025, the company had secured 23 new nominations for its 800V high-voltage platform for new energy drive motors, and had already achieved bulk supply for multiple projects, with the shipment share of high-voltage flat wire continuing to increase. For specific related information, please refer to periodic reports. On March 17, when responding to investor questions on the interaction platform, Jintian Co., Ltd. stated that, with its outstanding electrical and thermal conductivity, copper had become a core material for chip interconnection in the advanced AI industry and heat dissipation in computing power facilities. The company had a solid client base and technical reserves in the AI computing power field. Among its products, the company’s high-precision shaped oxygen-free copper busbar products had already been applied in multiple top-tier GPU cooling solutions of several first-tier thermal module enterprises worldwide. The company will closely monitor and follow market demand in the AI computing power sector, further improve its product portfolio, and enhance its competitive edge. For specific information, please refer to the periodic reports. On March 17, Jintian Co., Ltd. said in response to investor questions on an interactive platform that the company continued to expand its technological leadership in the high-voltage electromagnetic flat wire industry, with both the number of designated projects on high-voltage platforms and shipment volume continuing to grow. Among them, the company's 1,000V flat wire products for drive motors have become an industry benchmark as supporting materials for "megawatt flash charging" technology in the NEV sector, while client-related certification for 1,200V flat wire for drive motors was also progressing in an orderly manner. In addition, the company had a solid client base and sound technical reserves in the chip and semiconductor sector. The company will closely monitor and follow market demand in the chip and semiconductor sector, further improve its product portfolio, and enhance its competitive edge. For specific information, please refer to the periodic reports. On March 17, Jintian Co., Ltd. said in response to investor questions on an interactive platform that the company remained committed to advancing its internationalization strategy, and construction of its newly built Thailand production site was progressing smoothly. The company's copper semis products exported outside China had an overall relatively high gross margin. In H1 2025, revenue from its principal operations outside China was up 21.86% YoY and continued to maintain a solid growth trend. The steady growth of business outside China laid a solid foundation for the company to deepen the upgrading of its global product and client mix. For specific information, please refer to the periodic reports. Jintian Co., Ltd.'s 2025 earnings forecast showed that, based on preliminary estimates by its finance department, the company expected net profit attributable to owners of the parent for 2025 to reach 700 million to 800 million yuan, representing an increase of 237.9574 million to 337.9574 million yuan from the same period last year (statutorily disclosed data), up 51.50% to 73.14% YoY. Net profit attributable to owners of the parent excluding non-recurring gains and losses for 2025 was expected to reach 440 million to 528 million yuan, representing an increase of 101.4004 million to 189.4004 million yuan from the same period last year (statutorily disclosed data), up 29.95% to 55.94% YoY. Regarding the main reasons for the expected increase in results for the period, Jintian Co., Ltd. stated: In 2025, the company implemented its "dual upgrade of products and clients" strategy, with product applications in high-end fields continuing to deepen; it stepped up expansion among clients outside China, and sales in markets outside China continued to grow; meanwhile, through digitalization initiatives, it improved operating and management efficiency, and its product gross margin level and profitability improved YoY. On January 23, Jintian Co., Ltd. said in response to investor questions on an interactive platform that Phase I of its Baotou base had been put into operation, and the annual capacity of rare earth permanent magnets had been increased to 9,000 mt. The company is currently actively advancing Phase II of the Baotou base project, with the aim of further increasing capacity to 13,000 mt. The company has a solid client base and technical reserves in the robotics field, and some rare earth permanent magnets have already been applied in the robotics sector. The company will closely monitor and follow market demand in the robotics field, further improve its product portfolio, and enhance its product competitiveness. A performance preview commentary on Jintian Co., Ltd. for 2025 released by Aijian Securities showed that the share repurchase demonstrated confidence in long-term development, while capital structure optimization was advancing steadily. The company’s high-end copper-based materials were being introduced at an accelerated pace to clients outside China in the computing power cooling sector, with sales rising rapidly and profitability improving significantly. 1) In terms of profitability, processing fees for copper busbar used in computing power are relatively high, and product mix upgrades are expected to continue lifting the company’s gross margin level; 2) In terms of shipment progress, in H1 2025, sales of the company’s copper busbar products in the cooling sector increased 72% YoY, and its high-precision profiled oxygen-free copper busbar has entered GPU cooling solutions of multiple global first-tier cooling module enterprises. The company’s copper heat pipes, liquid-cooling copper pipe & tube, and other products have also achieved bulk supply in computing servers of multiple top-tier enterprises. Copper prices fluctuations had a limited impact on the company’s profitability. 1) The company adopts a “copper prices + processing fee” pricing model, with revenue and profit primarily derived from processing fees rather than copper prices themselves. Processing fees are negotiated between the company and clients based on factors such as product specifications and process complexity, and show a certain degree of historical stickiness; 2) The company effectively hedges copper prices through hedging, while fluctuations in upstream raw material prices are mainly borne by downstream customers, resulting in a relatively small impact on the company’s profit; 3) Rapid copper prices fluctuations may affect downstream ordering willingness in phases and lengthen order cycles, but copper application scenarios are characterized by rigid demand, so the impact on total demand is limited, only changing the pace of copper product orders, and the company’s overall operating stability remains strong. The company is actively expanding into the “aluminum as an substitute for copper” direction, with material substitution optimizing the gross profit structure while enhancing its ability to hedge against copper prices fluctuations. 1) On a per-mt basis, the absolute value of processing fees for aluminum products is usually lower than that of copper-based solutions (at the same performance level, processing fees for high-precision aluminum extrusion are about 10,000 yuan/mt, versus about 20,000 yuan/mt for copper semis); however, since the per-mt price of aluminum semis is significantly lower than that of copper, usually about one-fourth of the latter, the material cost base is lower, increasing the share of processing fees in total product value. The corresponding processing fee rate of aluminum-based solutions is about 13–14 pct higher than that of copper-based solutions, providing positive support to the company’s overall gross margin; 2) In terms of supply progress, the company’s electromagnetic flat aluminum wire and aluminum 3D bent busbars for vehicles have entered the certification and mass supply stage, while inner-grooved aluminum pipe & tube for air conditioners has already begun small-batch supply. Risk Warning: Risks of lower-than-expected downstream demand for new energy or capacity release, rising copper prices, and changes in trade policies outside China.

On February 4, Jintian Copper responded to investor inquiries on the interactive platform, stating that the company focuses on its internationalization strategic goal, continuously expanding its overseas business scale and international brand influence. Currently, the Vietnam capacity expansion project continues to broaden business cooperation, and the construction of the new Thailand production site is progressing smoothly. The company is deepening product applications in high-end industries and emerging sectors. By the end of 2025, the proportion of high-voltage flat wires for NEVs increased to 47%, and copper semis sales in the chip semiconductor field exceeded 40,000 mt, of which over 14,000 mt were in computing power heat dissipation, with a YoY growth rate of nearly 60%, continuously expanding market share. Meanwhile, the company seized opportunities in green and low-carbon development, further strengthening technical reserves and business cooperation in the secondary copper field, helping to continuously enhance the company's overall profitability. On February 4, Jintian Copper responded to investor inquiries on the interactive platform, stating that the company's copper processing products adopt a "raw material price + processing fee" pricing model and strictly follow the "Hedging Management System" for hedging operations to reduce the impact of raw material price fluctuations on the company's net profit. Currently, fluctuations in copper prices have a relatively small impact on the company's operating performance, and the company's production and operations are normal and orderly. Jintian Copper recently announced that on February 3, 2026, the company repurchased 850,000 shares for the first time via centralized bidding, accounting for 0.05% of the company's current total shares. The transaction price range was 11.3 to 11.64 yuan per share, with a total payment of 9.7058 million yuan (excluding transaction fees). Jintian Copper released its 2025 annual performance forecast, showing that based on preliminary calculations by the finance department, the company expects to achieve a net profit attributable to owners of the parent company of 70 million to 80 million yuan for the full year of 2025, compared with the legally disclosed data from the same period last year, an increase of 23.79574 million to 33.79574 million yuan, up 51.50% to 73.14% YoY. It is expected to achieve a net profit attributable to owners of the parent company after deducting non-recurring gains and losses of 44 million to 52.8 million yuan for the full year of 2025, compared with the legally disclosed data from the same period last year, an increase of 10.14004 million to 18.94004 million yuan, up 29.95% to 55.94% YoY. Regarding the main reasons for the expected performance growth in this period, Jintian Copper stated: In 2025, the company implemented the "dual upgrade of products and clients" strategy, deepening product applications in high-end fields; strengthened overseas client expansion, with overseas market sales continuing to grow; and through digitalization, improved management efficiency, leading to a YoY increase in the company's product gross margin level and profitability. On January 29, Jintian Co., Ltd. stated on the interactive platform in response to investor inquiries that the company's raw material inventory is maintained to meet normal production and operational needs, and it effectively reduces the impact of raw material fluctuations on operations through hedging tools. Currently, the company is not involved in copper mine business. On January 23, Jintian Co., Ltd. stated on the interactive platform in response to investor inquiries that in H1 2025, sales of the company's copper busbar products used in the heat dissipation sector increased 72% YoY, and the strong growth trend continued. On January 23, Jintian Co., Ltd. stated on the interactive platform in response to investor inquiries that Phase I of the company's Baotou base has commenced production, raising the annual capacity of rare earth permanent magnets to 9,000 mt. The company is actively advancing Phase II of the Baotou base to further increase capacity to 13,000 mt. The company has a solid client base and technical reserves in the robotics sector, and some rare earth permanent magnet materials have been applied in robotics. The company will closely monitor and follow market demand in the robotics sector, further improve the product portfolio, and enhance product competitiveness. On January 23, Jintian Co., Ltd. stated on the interactive platform in response to investor inquiries that the company continues to expand its technological leadership in high-voltage electromagnetic flat wires. Among these, the company's flat wire products for 1,000V drive motors have become an industry benchmark as supporting materials for the "megawatt (MW) flash charging" technology in the NEV sector, while customer-related certification for 1,200V drive motor flat wires is being advanced in an orderly manner. On January 23, Jintian Co., Ltd. stated on the interactive platform in response to investor inquiries that the high-precision, easy-to-cut copper billet developed by the company, with its excellent properties such as high strength and wear resistance, has been applied in airborne structural components of low-altitude aircraft. The company's PEEK material products provide high-voltage drive stability solutions for the load-carrying flight market in the low-altitude economy, and the company has initiated R&D collaborations with several domestic top-tier enterprises. The company will closely monitor and follow market demand in the above sectors, further improve the product portfolio, and enhance product competitiveness. For details, please refer to the company's periodic reports. On January 23, Jintian Co., Ltd. stated on the interactive platform in response to investor inquiries that the company is one of the enterprises in China with the largest utilization volume and the highest comprehensive utilization rate of secondary copper, and it is also one of the few companies globally capable of achieving a closed-loop entire industry chain for secondary copper. The overall gross margin of green products in the secondary copper sector is relatively high. The company has launched multiple low-carbon secondary copper materials and collaborates with several world-renowned clients to provide high-quality, complete one-stop green and low-carbon copper semis solutions for clients in sectors such as consumer electronics and new energy, meeting their product performance and carbon reduction needs. On January 23, Jintian Co., Ltd. responded to investor inquiries on the interactive platform, stating that the company is committed to advancing its international layout. Currently, the construction of the "80,000 mt annual precision copper pipe & tube production project" in Thailand is progressing smoothly. The overall gross margin of the company's copper semis products exported overseas is relatively high. In H1 2025, the company's overseas main business revenue was up 21.86% YoY and maintained a good growth trend. For more details, please refer to the company's regular reports. On January 20, Jintian Co., Ltd. responded to investor inquiries on the interactive platform, stating that copper has become a core material in advanced AI industry chip interconnection and heat dissipation for computing facilities due to its excellent electrical and thermal conductivity. The company has a solid client base and technical reserves in the computing field, with its high-precision oxygen-free copper busbar products already applied in multiple top-tier GPU cooling solutions by several first-tier global cooling module enterprises. The company will closely monitor and follow market demand in the computing field, further improve its product range, and enhance product competitiveness. For more specific information, please refer to the regular reports. The investor relations activity record form (January 8-12, 2026) announced by Jintian Co., Ltd. shows: The company introduced to investors the basic situation regarding its development strategy, capacity layout, product applications, and operational highlights. 1. The company's industry position and competitive advantages. Jintian Co., Ltd. responded: The company has been focusing on the copper processing industry for 39 years and is one of the largest and most complete industry chain enterprises in China. In 2024, the company achieved a total production of 1.9162 million mt of copper and copper alloy materials, ranking first globally in terms of total copper semis production. The company offers a wide variety of copper products, meeting clients' one-stop procurement needs for rods, pipes, plates, strips, and wires. The company's copper products have been widely used in NEVs, clean energy, communication technology, power and electricity, and chip semiconductors. The company has now formed a profound cultural heritage and outstanding organizational capabilities, possessing a significant market size and a global industrial layout; it boasts leading manufacturing and R&D capabilities, has established a specialized product matrix, and has built a stable group of top-tier industry clients. Additionally, the company has constructed a green and regenerative technology barrier for the future, laying a solid foundation for becoming a world-class base for copper products and advanced materials. 2. The construction progress and business status of the company's new energy electromagnetic flat wire. Jintian Co., Ltd. responded: The company is actively engaging in deep cooperation with world-class host manufacturers and motor suppliers on new energy electromagnetic flat wire projects. In H1 2025, the company's new energy electromagnetic flat wire development project had achieved mass production of over 100 items, with 42 new NEV drive motor designated projects added, including 23 new designations for the 800V high-voltage platform, and has already realized multiple batch deliveries. The company's share of high-voltage flat wire shipments continues to increase. The company's 1000V flat wire products for drive motors have become an industry benchmark for supporting materials in the "megawatt (MW) flash charging" technology within the NEV sector, while also advancing customer-related certifications for 1200V drive motor flat wires in an orderly manner. 3. Capacity and business status of the company's rare earth permanent magnet products. Jintian Copper's response: Since 2001, the company has been developing its magnetic material business, and after more than 20 years of dedicated development, it has become one of the enterprises with advanced technology and a comprehensive product system among domestic peers. 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 annual capacity of the company's rare earth permanent magnet materials has been increased to 9,000 mt. The company is actively promoting the second phase of the Baotou site to further increase capacity to 13,000 mt. At the same time, the company is accelerating its international layout and increasing its international market share through its newly established German subsidiary. Recently, the company has obtained a general export license for rare earth permanent magnet products and continues to advance export-related business. The company's rare earth permanent magnet products are widely used in many high-end fields, including NEVs, wind power generation, high-efficiency energy-saving motors, robotics, consumer electronics, and medical devices. 4. Business development in the chip computing power sector. Jintian Copper's response: Copper, with its excellent electrical and thermal conductivity, has become a core material for chip interconnects and heat dissipation in computing power facilities within the advanced AI industry, and the transformation of copper-based materials toward high value-added applications is accelerating further. The company has a solid client base and technical reserves in the chip computing power sector. Among these, the company's high-precision special-shaped oxygen-free copper busbar products have been applied in multiple top-tier GPU cooling solutions by several first-tier cooling module enterprises globally. The company's self-developed copper heat pipes, liquid-cooled copper pipes, and other products have been supplied in bulk to computing power server products of several top-tier enterprises. The company will closely monitor and follow market demand in the chip computing power sector, further improve its product portfolio, and enhance its product competitive advantages. 5. The company's position advantages and business achievements in the secondary copper field. Jintian Copper's response: The company continues to innovate new green development paths for copper-based advanced materials and has become one of the enterprises with the largest secondary copper utilization volume and the highest comprehensive utilization rate domestically, as well as one of the few companies globally in the industry to achieve a closed-loop entire industry chain from secondary copper recycling, purification, to deep processing. The company's self-developed low-carbon secondary copper products significantly reduce product carbon emissions while ensuring performance, providing downstream clients in the industry chain with high-quality, complete one-stop green copper semi solutions. In H1 2025, sales of the company's green, high-end, low-carbon secondary copper products increased 61% YoY. The product matrix already covers copper strips, copper wires, electromagnetic wires, copper pipes & tubes, copper busbars, copper billets, etc., and is applied in high-end consumer electronics, automotive industry, power and electrical sectors, specifically including scenarios such as laptop cooling modules, mobile phone vibration motors, NEV power battery connections, and AC/DC power supplies. It has achieved mass production in products of several world-renowned clients, forming new performance-driving elements represented by "green and low-carbon secondary copper products." When asked, "It is reported that NVIDIA plans to adopt a "long-arm management" model for the toll processing business of next-generation Vera Rubin architecture AI server cabinets and may finalise water-cooling plate suppliers in the near future. Due to extremely high power consumption in the next-generation architecture, the coverage rate of the liquid cooling section will be better, and parts such as power supplies and storage will also adopt liquid cooling. If able to become the cold plate module contractor for the NVIDIA-L10 solution, stable large orders will be secured. If these changes are implemented next year, they will significantly enhance the competitive advantages and shipment expectations of core enterprises within the existing supply chain system. Does your company have the competitive capability to enter the liquid cooling supply chain?" Jin Tian shares replied to investor inquiries on the interactive platform on November 24, Copper, with its excellent electrical and thermal conductivity, has become a core material for chip interconnection in advanced AI industries and heat dissipation in computing power facilities. The company has a solid client base and technical reserves in the chip computing power sector, with its high-precision special-shaped oxygen-free copper busbar products already applied in multiple top-tier GPU cooling solutions from several global leading cooling module enterprises. The company will closely monitor and follow market demands in the chip computing power sector, further improve its product lineup, and enhance product competitive advantages. The performance preview commentary for Jin Tian shares in 2025 released by Aijian Securities indicates: Share repurchases demonstrate long-term development confidence, and capital structure optimisation is progressing steadily. The company's high-end copper-based materials are accelerating their penetration into overseas clients in the computing power heat dissipation sector, with rapidly increasing sales and significantly improved profitability. 1) In terms of profitability, the processing fee rate for copper busbars used in computing power is relatively high, and product structure upgrades are expected to continuously elevate the company's gross profit level; 2) Regarding shipment progress, in H1 2025, the company's copper busbar sales in the heat dissipation sector increased by 72% YoY. High-precision special-shaped oxygen-free copper busbars have entered the GPU cooling solutions of several global leading cooling module enterprises, and the company's copper heat pipes, liquid-cooled copper pipes, and other products have also achieved bulk supply in the computing power servers of several top-tier enterprises. Copper price fluctuations have limited impact on the company's profits. 1) The company's product pricing follows a "copper price + processing fee" model, with core revenue and profits derived from processing fees rather than copper prices themselves. Processing fees are determined through negotiation between the company and clients based on factors such as product specifications and process complexity, with a certain historical stickiness; 2) The company achieves effective hedging against copper prices through futures, with the main impact of upstream raw material price fluctuations borne by downstream entities, having a relatively small effect on the company's profits; 3) Rapid fluctuations in copper prices may temporarily affect the willingness of downstream customers to place orders and extend the ordering cycle, but given the essential nature of copper applications, the total demand is minimally affected, only altering the pace of copper product orders. The company’s overall operational stability is strong. The company is actively positioning itself in the "aluminum as a substitute for copper" direction, optimizing its gross profit structure while enhancing its ability to hedge against copper price volatility. 1) On a per-ton basis, the absolute value of processing fees for aluminum products is typically lower than that for copper (under equivalent performance levels, high-precision aluminum extrusion processing fees are about 10,000 yuan/mt, while copper semis are around 20,000 yuan/mt); however, due to the significantly lower per-ton price of aluminum (usually about one-fourth that of copper), the base cost of materials is lower, increasing the proportion of processing fees in the total product value. The processing fee rate for aluminum solutions is approximately 13–14pct higher than that for copper, providing positive support for the company's overall gross margin; 2) Supply progress: The company's electromagnetic aluminum flat wire and 3D bent aluminum busbars for vehicles have entered the certification and mass production supply stage, and the inner-grooved aluminum pipe for air conditioners has begun small-scale supply. Risk warnings: There is a risk that new energy downstream demand or capacity release may fall short of expectations, along with risks of rising copper prices and changes in overseas trade policies.

Shanghai Metals Market (SMM) is delighted to announce that Touchi International Corp has officially joined our 2026 (3rd) Global Renewable Metals Industry Summit to be held in Tokyo, Japan, on May 11-12, 2026, as the Dinner Sponsor.

The development of industries such as new energy vehicles and aerospace has driven the application of permanent magnet motors, while also creating a demand for measuring the magnetic properties of permanent magnets at high temperatures. Common closed-circuit measurement equipment in the field of rare earth permanent magnets typically uses traditional electromagnets as external magnetic fields, with magnetic field strengths generally below 3 T. Although basic magnetic research equipment is equipped with superconducting magnets to achieve high excitation magnetic fields, it often focuses on measurements in extremely low-temperature environments, rarely includes high-temperature modules, and is expensive, being monopolized by the US company Quantum Design. Recently, a high-temperature vibrating sample magnetometer with a superconducting magnetic field, built entirely from domestically produced modules, was assembled, debugged, and put into use at the Baotou Rare Earth Research Institute. This equipment can simultaneously meet the measurement needs of permanent magnet materials under high temperatures and strong magnetic fields, providing strong support for the research of high-performance permanent magnet materials.

The trial production of the first batch of sintered NdFeB permanent magnet materials by Northern Zhaobao was successfully completed. This achievement marks a significant breakthrough for the company in transitioning from R&D to industrialisation, laying the foundation for subsequent production and market expansion.

To promote recycling within the EU, the bloc is expected to impose export restrictions on rare earth permanent magnet scrap in early 2026. This measure is a key component of the EU's REsourceEU package. The recycling potential for rare earth permanent magnets is substantial, projected to meet 20% of the EU's current demand for 20,000 mt of permanent magnet materials. As a critical material for EVs, national defense, and renewable energy, the importance of permanent magnets is self-evident. Meanwhile, the European Commission stated that it will raise 3 billion euros (approximately $3.5 billion) within the next 12 months to support strategic raw material projects capable of commencing production in the short term.