According to the Investor Relations Activity Record of Tianhe Magnetics (July 23, 2026): 1. What were the main drivers of the company's sales growth in H1 2026? Tianhe Magnetics responded: The company expects its net profit attributable to equity holders of the parent in H1 2026 to be 73 million yuan to 93 million yuan, up 36.56% to 73.98% YoY; and net profit after deducting non-recurring gains and losses attributable to equity holders of the parent to be 68 million yuan to 88 million yuan, up 91.94% to 148.39% YoY. This was mainly driven by overall high raw material price fluctuations in H1, the company's optimized pricing strategies for some existing and new orders, and raised product selling prices; the company proactively seized market opportunities and carried out sales efforts centered on "focusing on emerging markets, deepening customer relationships, and optimizing channel layout," achieving dual-driven growth in international and domestic markets with significant market development results. Overall operating revenue is expected to increase approximately 30% YoY, with domestic business revenue increasing approximately 50% YoY. For details, please refer to the company's disclosed 2026 H1 performance forecast. 2. What was the breakdown of the company's domestic and international business in H1 2026? Tianhe Magnetics responded: In 2025, the company’s international business generated operating revenue of 1,032.05 million yuan, accounting for 44.02%; domestic business generated revenue of 1,312.51 million yuan, accounting for 55.98%. For the H1 2026 breakdown, please refer to the company’s 2026 semi-annual report to be disclosed on August 26, 2026. 3. How is the construction progress of the new project of the subsidiary Tianhe New Materials planned? Tianhe Magnetics responded: Based on confidence in its own development and market prospects, and to meet current business planning and future development needs, the company invested in establishing the wholly-owned subsidiary Tianhe New Materials and is constructing the "Tianhe New Materials Rare Earth Zero-Carbon Industrial Park (High-Performance Rare Earth Permanent Magnets and Components, Equipment Manufacturing and R&D Project)." The project is progressing smoothly, with an initially planned capacity of 20,000 mt. The construction of this capacity will be steadily advanced by the company in line with market orders and company development. 4. How is the company’s expansion in new businesses? Tianhe Magnetics responded: The company is deepening its presence in emerging fields, developing customized magnets and components to precisely meet performance requirements in emerging markets. At the same time, it is accelerating the expansion of a diversified product system, actively promoting the R&D and industrialisation of high value-added products such as injection-molded magnets, bonded magnets, and magnetic assemblies, driving the company’s transformation and upgrade from a "magnetic material product supplier" to an "integrated rare earth permanent magnet solutions provider." In addition, the company's wholly-owned subsidiary Tianzhihe focuses on the R&D, production, manufacturing, and sales of key production equipment for rare earth permanent magnet materials. In 2025, the specialized production equipment developed by Tianzhihe, while meeting the needs of the parent company, successfully achieved commercialized external sales and deliveries. In 2025, cumulative external order signing amounted to 37.3066 million yuan, with external operating revenue reaching 25.4441 million yuan. 5. How does the company respond to fluctuations in raw material prices? Tianhe Magnetics responded: The company's procurement model is centered on "procurement based on production plus safety inventory," achieving precise on-demand procurement and dynamic inventory management through ERP and other information systems. The company has signed long-term agreements with major suppliers, establishing a stable and reliable supply chain system, and employs a scientific reserve mechanism to flexibly adjust inventory levels, effectively smoothing raw material price fluctuations, thereby securing stable supply while controlling procurement costs and risks. 6. What is the impact of export control policies on the company? Answer: The company has always strictly adhered to all national laws, regulations, and regulatory requirements. Upon the release of relevant export control policies, it promptly deployed and proactively responded, comprehensively establishing and continuously improving a full-process compliance management system for export controls. The company strictly follows the compliance management system to carry out export license application work, obtaining export licenses issued by the Ministry of Commerce in an orderly and lawful manner, thereby ensuring the smooth, orderly, sustained, and healthy development of its overseas international business. At the same time, the company continues to advance its market diversification strategy, actively expands into different regional markets, reduces reliance on single markets, and enhances its overall risk resistance capability. Furthermore, the refinement and strict enforcement of relevant export control policies have significantly raised the industry's standardization level. This creates favorable conditions for enterprises that have established sound compliance systems and can continuously meet licensing and delivery requirements, helping to guide industry resources toward well-operated enterprises, supporting them to secure long-term cooperation with high-quality clients, and promoting the entire industry's development toward a more orderly and higher-quality direction. 7. Is there any plan to develop rare earth targets? Tianhe Magnetics responded: The company is a leading domestic provider of high-performance rare earth permanent magnetic materials, primarily engaged in the R&D, production, and sales of high-performance rare earth permanent magnetic materials such as sintered NdFeB and sintered SmCo. It also extends its industry chain to injection molded magnets, bonded magnets, and magnetic assemblies, offering clients comprehensive rare earth permanent magnet solutions. The company currently has no such R&D plan. 8. What is the company's view on future rare earth prices? Tianhe Magnetics responded: Rare earths are important strategic resources of the nation. Rare earth product prices are influenced by factors such as market conditions, policy changes, and industry supply-demand cycles. Fluctuations of rare earth prices within a reasonable range benefit the development of both upstream and downstream sectors of the rare earth industry chain. Tianhe Magnetics disclosed its semi-annual performance forecast on July 9, which showed, based on preliminary estimates by the financial department, that the net profit attributable to owners of the parent company for the first half of 2026 is expected to range from RMB 73 million to RMB 93 million. Compared with the same period last year (statutory disclosed data), this represents an increase of RMB 19.5448 million to RMB 39.5448 million, up 36.56% to 73.98% YoY. It is estimated that in H1 2026, the net profit attributable to shareholders of the parent company, excluding non-recurring gains and losses, will be between 68 million yuan and 88 million yuan, representing an increase of 32.5723 million to 52.5723 million yuan compared with the same period last year (as disclosed in statutory reports), up 91.94% to 148.39% YoY. Regarding the main reasons for the expected increase in H1 performance, Tianhe Magnetics stated: 1. In H1, raw material prices fluctuated at high levels overall. The company optimized its pricing strategy for some existing and new orders and raised product selling prices. 2. In 2026, the company proactively seized market opportunities, centered its sales efforts on "focusing on emerging markets, deepening customer relationships, and optimizing channel layout," achieving dual-wheel drive from both international and domestic markets, with significant results in market development. Overall operating revenue is expected to increase by approximately 30% YoY, of which domestic revenue is expected to grow by about 50% YoY. 3. During the reporting period, the impact of non-recurring gains and losses on net profit is estimated to be approximately 5 million yuan, compared with 18.0275 million yuan (after tax) in the same period last year. In its 2025 annual report, introducing its main business, products, and application fields, Tianhe Magnetics stated: The company is an advanced provider of high-performance rare earth permanent magnetic materials in China. Guided by the corporate vision of "being the innovator in permanent magnet material innovation," it mainly engages in the R&D, production, and sales of high-performance rare earth permanent magnetic materials such as sintered NdFeB and sintered SmCo, and extends its business to injection-molded magnets, bonded magnets, and magnetic assemblies, providing clients with comprehensive rare earth permanent magnet solutions. Focused on independent R&D and technological innovation, and oriented by application scenarios and development needs in cutting-edge fields such as NEVs and automotive parts, wind power, intelligent manufacturing, and 3C consumer electronics, as well as emerging industries such as humanoid robots and low-altitude economy, the company effectively leverages the fundamental and pioneering role of rare earth permanent magnets as key strategic materials, continuously promoting the innovation and application of high-performance, resource-efficient rare earth permanent magnet materials, and facilitating downstream technological upgrades, product replacements, and industrial advances. Regarding its business plan, Tianhe Magnetics introduced in its 2025 annual report: 2026 marks the second year since Tianhe Magnetics' listing and is also the opening year of the 15th Five-Year Plan. Standing at a new starting point, the company adopts "innovation" as its annual development theme, adheres to the philosophy of "breaking conventions and embracing change," and continues to deepen its presence in the high-performance rare earth permanent magnetic materials sector. The company will rely on two major rare earth bases in Baotou, focus on core technology upgrades and the expansion of both domestic and international high-end markets, seize the strategic opportunities of global energy transition and intelligent development, and foster "development" through "innovation."Under the leadership of the Board of Directors, the Company will further integrate resources, leverage its strengths, and systematically advance all work around its operational objectives to ensure high-quality and sustainable development. In 2026, the Company will focus on the following tasks: 1. With "innovation" at the core, continuously strengthen R&D investment to drive product and technology upgrades. 2. Heading toward the new: focus on expanding new products, new clients, and new markets. 3. Continuously strengthen production and quality management to improve yield and workflow efficiency. 4. Deepen the construction of digital smart factories to continuously enhance production efficiency. 5. Steadily advance fundraising and investment projects and new project construction, expanding capacity to underpin performance growth. (1) Continue to advance the construction of fundraising and investment projects. In 2026, the Company will continue to push forward the implementation of these projects as planned. Upon full completion and reaching full production, the Company will achieve an annual capacity of 12,300 mt. Through automated production line upgrades, deployment of digital management systems, and green production process upgrades, the Company will continuously enhance manufacturing efficiency, ensure capacity matching at every stage from blank production to finished product inspection, and lay a solid foundation for performance growth. (2) Advance the construction of the Tianhe New Materials project. The first phase of the "Tianhe New Materials Rare Earth Zero-Carbon Industrial Park (High-Performance Rare Earth Permanent Magnets and Components, 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 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 organization and talent development. 8. Continuously improve ESG efforts to promote sustainable development. 9. Strengthen investor relations and market value management to drive the continuous enhancement of the Company’s value. In its announcement regarding the risk of rare earth raw material price fluctuations, Tianhe Magnetics stated: The main raw materials required for the Company’s production are rare earth metals, which are relatively high-priced. Affected by multiple factors such as macroeconomic conditions, the trade environment, industrial policies, and market supply and demand, their prices fluctuate noticeably. Although rare earth permanent magnet enterprises can dynamically adjust product selling prices based on raw material price changes and other factors, due to the price lock-in of some existing orders and the negotiation period required for new order price adjustments, product price adjustments typically lag behind raw material price fluctuations. If raw material prices experience sustained wild swings in the future and the Company fails to respond in a timely and effective manner, it may adversely affect its operating results. Countermeasures: To address this risk, the Company continuously strengthens supply chain management, enters into long-term agreements with major suppliers to establish stable cooperative relationships, and implements scientific raw material reserve strategies to smooth out the impact of price fluctuations. Looking back at the price performance of Pr-Nd alloy in H1 this year, we can see: at the beginning of the year, Pr-Nd alloy was quoted at 740,000 yuan/mt. Driven by a confluence of supply-demand fundamentals, including tight spot Pr-Nd oxide supply and stockpiling purchases by downstream magnetic material enterprises around the Chinese New Year, prices surged rapidly, hitting a yearly high of 1.09 million yuan/mt at the end of February, representing a cumulative increase of 47.3%. In March, end-use demand contracted materially, coupled with the spread of bearish market news, causing prices to quickly pull back to around 900,000 yuan/mt. In April, supported by higher ore concentrate prices that boosted oxide costs, production suspensions at some separation plants, and the release of export orders during the export control window period, prices recovered and rebounded to 999,000 yuan/mt. From May to June, downstream demand entered the traditional off-season, with magnetic material enterprises reducing inquiries and purchases for Pr-Nd alloy, causing prices to hit bottom again at 830,000 yuan/mt. In mid-to-late June, large-scale production cuts at scrap recycling enterprises due to tax invoice issues led to expectations of tightening supply, driving Pr-Nd prices to bottom out, closing at 905,000 yuan/mt on June 30. The average price in H1 was about 905,000 yuan/mt, with a fluctuation range of 48.3%. On July 24, the average price of Pr-Nd alloy was 917,500 yuan/mt, edging up 0.27% from the previous trading day. From the Pr-Nd market perspective, the rise in Pr-Nd oxide futures prices reduced suppliers' willingness to sell spot cargo at low prices, prompting them to raise their Pr-Nd oxide quotes. However, market inquiry activity did not pick up as a result, and actual price gains were relatively limited. Supported by raw material costs, Pr-Nd alloy prices also rose in tandem, and low-priced cargo in the market gradually tightened. Yet, downstream magnetic material enterprises still had limited inquiries, making high-priced alloy transactions difficult, and market trading remained stagnant. Over the short term, affected by the tug-of-war stalemate between upstream and downstream, Pr-Nd product prices are expected to move sideways. Recommended reading:

Recently, Gokin Solar joined hands with its Australian local partner OSW to successfully complete a roadshow in the Australian market, discussing market trends, cutting-edge technologies, and cooperation opportunities with local channel dealers, system integrators, and PV engineering practitioners. At the roadshow, Gokin showcased the iteration journey of its full-spectrum BC products. Driven by a record-setting innovation pace of four iterations per year, Gokin has completed the series upgrades from BC1.0 Standard, BC1.1 Classic, BC2.0 Full-Cell, to BC2.1 Full-Screen. As one of the only two enterprises worldwide to achieve mass production of BC full-screen modules, Gokin leverages hidden busbar technology to create an integrated all-black aesthetic design that balances efficient light absorption with Australian rooftop architectural aesthetics, suitable for diverse application scenarios including Australian residential, commercial, and industrial rooftops, which garnered attention from attending clients.

Against the backdrop of ongoing automotive lightweighting, aluminum alloys are rapidly expanding into more application scenarios such as structural body parts, battery packs, and chassis systems. Among them, 6-series aluminum alloys, which combine strength, formability, corrosion resistance, and lightweighting advantages, have become one of the key directions for automotive aluminum development. As NEVs raise higher requirements for vehicle safety, driving range, and manufacturing efficiency, the market is posing new challenges to the overall performance of 6-series aluminum alloys. How can the balance between material strength and toughness be further improved? How can formability, joining performance, and service reliability be balanced? How can the new demands brought by the continuous upgrading of automotive manufacturing processes be met? These questions are becoming a key focus for the automotive materials industry... Against the backdrop of the continuous upgrading and iteration of automotive aluminum alloy materials, we are honored to have invited Dr. Zhu Xiao, R&D Director of Liaoning Xiangyu Aluminum Co., Ltd., to attend the SMM (8th) Automotive Supply Chain Conference and deliver a keynote speech titled —— " Performance Iteration Direction of 6-Series Aluminum Alloys in the Automotive Sector ," combining industrialization implementation experience to share solutions for the R&D, process optimization, and mass production of next-generation 6-series aluminum materials tailored for NEV complete vehicles. Dr. Zhu Xiao is a senior engineer, a high-end manufacturing talent recognized by the MIIT, and a high-end industrial talent under Liaoning Province's "Xing Liao Ying Cai" program. He is primarily responsible for the development of new products, new technologies, and new processes at Xiangyu Aluminum, the application of engineering technologies, science and technology projects, and intellectual property-related work . Over the past five years, he has led five national and provincial-level scientific research projects, including those under the National Key R&D Program and Provincial Science and Technology Major Projects, won the Liaoning Province Science and Technology Progress First Prize twice, obtained over 50 nationally authorized patents, and published more than 30 papers, achieving multiple technological breakthroughs in the forming and product processing of high-end aluminum alloy materials . Focusing on automotive lightweight material upgrades, secure this practical knowledge-sharing session, and explore with top aluminum material R&D experts the opportunities for the iterative development of 6-series aluminum alloys. Conference Agenda Overview The conference spans two days, featuring one main forum + three sub-forums + an automaker end-user procurement networking session + an automaker cost and new technology exchange meeting , each session packed with highlights. September 10, Full Day – Main Forum ▶ Main Forum & Automotive Globalization Session ▶ Lightweight Materials Session: Aluminum, Magnesium, Steel ▶ Commercial Vehicle Session: Battery, Intelligence, Lightweighting September 11, Morning ▶ Sub-forum 1: Automotive & Robotics Collaborative Forum ▶ Sub-forum 2: Automotive Chassis Development Forum ▶ Sub-forum 3: Automotive Lightweighting & High-End Steel Innovation Forum September 11, Afternoon ▶ Automaker Procurement Supply-Demand Networking Session (Scroll down for details) ▶ Automaker Cost Communication & New Technology Seminar Full Agenda September 10 – Main Forum & Automotive Globalization Session 9:00-9:15 Opening Remarks 09:15-09:40 Development Trends of China's Automotive Industry During the 15th Five-Year Plan Period Guest Speaker: Xu Haidong, Deputy Secretary-General, CAAM 9:40-10:30 Roundtable Dialogue: The Next Five Years of the Automotive Supply Chain – Going Global, Low Carbon, and Intelligence · Opportunities and risks of Chinese enterprises establishing factories overseas (Southeast Asia, Europe, Mexico) · Impact of carbon border taxes (CBAM) on aluminum/steel exports and response strategies · How AI and digitalization can assist with metal material R&D and supply chain management Companies to be Invited (TBD): Lizhong Group Jintuo Technology NIO Volkswagen 10:30-10:50 Coffee Break & Exhibition Tour 10:50-11:10 Under the Overlay of "Involution" and "Going Global": Changes and Strategic Choices in the Automotive Industry Companies to be Invited (TBD): SAIC, Chery 11:10-11:30 Redefining Materials for the Next-Generation Vehicle Platform: The Material Selection Logic for 2030 Car Models Companies to be Invited (TBD): NIO, XPeng Motors, Xiaomi Automobile 11:30-12:00 Safety First, Materials as the Foundation – The Metal Material Logic in the Design of Power Battery Safety Systems Guest Speaker: Jia Shuyuan, Battery Assembly Design Lead Engineer, R&D Institute, Dongfeng Motor Group Corporation 12:00-13:30 Lunch Buffet September 10 – Lightweight Materials Session: Aluminum, Magnesium, Steel 13:30-13:50 Applications and Development Trends of Composite Materials in NEV Lightweighting Guest Speaker: Shen Weidong, Senior Director, Professor-Level Senior Engineer, SAIC Volkswagen Automotive Co., Ltd. 13:50-14:10 The Limited Volume of the Magnesium Alloy Industry – Can It Really Open the Automotive Market? Companies to be Invited (TBD): Shanxi Regal 14:10-14:30 New Opportunities for Magnesium Alloys in NEVs: Motor Housings, Electronic Control Cases, Instrument Panel Frames Presenting Company: Mao Mingzhi, Meridian Lightweight Technologies Co., Ltd. 14:30-14:50 Performance Iteration Direction of 6-Series Aluminum Alloys in the Automotive Sector Guest Speaker: Zhu Xiao, R&D Director, Liaoning Xiangyu Aluminum Co., Ltd. 14:50-15:10 Innovative Applications and Solutions of High-Strength and Tough Special Steel in Automotive Chassis Safety Components Companies to be Invited (TBD): Ansteel 15:10-15:30 Steel Auto Body and Integrated Solutions Companies to be Invited (TBD): Great Wall Motor, Rizhao Steel 15:30-15:45 Coffee Break September 10 – Commercial Vehicle Sustainable Development Session: Battery, Intelligence, Lightweighting 15:45-16:05 Commercial Vehicle Market Analysis and Outlook Invited: Lu Huaping, Secretary General, National NEV Commercial Vehicle Ecological Joint Committee (Commercial Vehicle Alliance) 16:05-16:25 BYD Commercial Blade Battery Fast Recharge Technology and Ecosystem Development Guest Speaker: Dr. Deng Qingming, Director, Global Commercial Vehicle Business Center Solutions, BYD Battery 16:25-16:45 Commercial Vehicle Battery Technology and Core Component Development To be Invited (TBD): REPT Battero Energy Co., Ltd. 16:45-17:05 Lightweight Material Technology and Development Trends for Commercial Vehicles To be Invited (TBD): Dongfeng Commercial Vehicle Co., Ltd. September 11 – Automotive & Robotics Collaborative Forum 9:20-9:40 Shared Supply Chain: When Automotive Parts Companies Build Robots – Downward Disruption or a World Apart? Guest Speaker: Huang Li, Senior Vice President, Huizhou Desay SV Automotive Electronics Co., Ltd. 9:40-10:00 Scenario Applications of Embodied AI Robots in Automotive Manufacturing Guest Speaker: Zhang Chaopeng, Embodied AI Robot Expert 10:00-10:20 Current Status and Outlook of High-Performance Aluminum Alloys in Humanoid Robot Applications Guest Speaker: Cheng Hanming, President, Hongjin New Materials Group Research Institute 10:20-10:40 Mid-Session Break 10:40-11:00 From Automotive to Embodied AI: Supply Chain Synergy and New Paradigm Leap Driven by Common Technology Origins Guest Speaker: Lei Xiong, General Manager, Ningbo Joyson Lingxi Intelligent Technology Co., Ltd. 11:00-11:20 Convergent Innovation and Industrialization Implementation Pathways for Automotive and Embodied Robotics Guest Speaker: Yang Shaoping, Purchasing Director, Humanoid Robot (Shanghai) Co., Ltd. 11:20-11:40 Lightweighting Challenges and Material Selection Analysis for Automotive & Humanoid Robots Guest Speaker: Huang Jiaqi, Material Expert, lron Humanoid Robot 11:40-12:00 AI Robots – Frontier Technology and Outlook for Robotics Guest Speaker (TBD): Chen Weidong, Tenured Professor and Doctoral Supervisor, School of Automation and Perception, Shanghai Jiao Tong University; Executive Vice Dean, Medical Robotics Research Institute, Shanghai Jiao Tong University September 11 – Automotive Chassis Development Forum 9:00-9:30 The Process Route Debate: From Casting to Extrusion for Aluminum Alloy Subframes Companies to be Invited (TBD): ZF Friedrichshafen AG, Bosch 9:30-10:00 Exploring Integrated Die-Casting Chassis: Beyond the Rear Floor, How Far Can Chassis Structural Parts Be Integrated? Companies to be Invited (TBD): Seres Automobile, Guangdong Hongtu, ZEEKR, GAC Huadi 10:00-10:30 Application Prospects of Electromagnetic Thermal Control Technology in Large Integrated Die-Castings Guest Speaker: Renowned Industry Expert 10:30-11:00 The Way Forward for Integrated Die-Casting: From "Expansion" to a "Rational" Perspective Companies to be Invited (TBD): GAC Group, LK Group 11:00-11:30 Domestic Substitution of Aluminum Forgings for Chassis: Mass Production and Performance Validation of Steering Knuckles and Control Arms Presenting Company: Hangzhou Rima Precision Forging Co., Ltd. 11:30-12:00 The Deep Change of Skateboard Chassis on Vehicle Development Models: From "One Car, One Chassis" to "One Chassis, Multiple Cars" Companies to be Invited (TBD): Volkswagen September 11 – Automotive Lightweighting and High-End Steel Innovation Forum 09:00–09:30 Synergistic Development of Vehicle Corrosion Protection, Dual Carbon Goals, and Cost Reduction – Compliant Application of Green Coatings and Low-Carbon Automotive Steel Companies to be Invited (TBD): Institute for Carbon Neutrality in Steel, University of Science and Technology Beijing 09:30–10:00 Innovation in High-Performance Body-in-White Steel Technology and Vehicle Manufacturing Implementation Presenting Company: Zhang Honghong, Deputy General Manager, Suzhou Pressler Technology Co., Ltd. 10:00–10:30 Fatigue Performance Optimization and Long-Life Durability Technology for High-End Special Steel in New Energy Vehicles Presenting Company: Baowu Jufei Special Steel Co., Ltd. 10:30–11:00 Building a Multi-Dimensional Lightweight Material Selection System for Complete Vehicles and Multi-Material Collaborative Application Companies to be Invited (TBD): CITIC Pacific Group 11:00–11:30 Vehicle Engineering Adaptation and On-the-Ground Application of Advanced Joining Technologies for Automotive Steel and Dissimilar Metals/Heterogeneous Materials Companies to be Invited (TBD): Shougang Group Research Institute of Technology, Ansteel Iron & Steel Institute 11:30–12:00 Upgrading of High-Purity Special Steel Smelting Processes and Material Applications for Core Components of Electric Drive Systems Companies to be Invited (TBD): Dongbei Special Steel, Fushun Special Steel, Beijing Jianlong Heavy Industry Group September 11 – Automaker Procurement Supply-Demand Networking Session 13:30–16:00 Procurement Networking Session + Going Global Networking Session September 11 – Automaker Cost Communication and New Technology Seminar 15:00–16:00 Automaker Cost Communication and New Technology Seminar

The second-life battery cell market in China edged up slightly this week, with overall performance remaining steady. On the cost side, trends diverged: prices of lithium carbonate and cobalt sulphate declined, while nickel sulphate edged up, resulting in limited impact of raw material fluctuations on second-life battery cell costs. The supply side stayed stable, with no significant fluctuations in supply sources, exerting a relatively small impact on market conditions. Demand was structurally differentiated: traditional small-power demand nearly faded, while demand from energy storage and other application scenarios held steady. Markets outside China delivered an impressive performance, as demand for second-life battery cells used in energy storage continued to surge in the Middle East and Africa, effectively boosting shipments. Coupled with rising prices of new battery cells, the cost advantage of second-life battery cells became more pronounced, improving downstream customers’ acceptance of the price increase and supporting the slight market uptick.

Capacity side, according to incomplete statistics, China’s alkaline electrolyzer market remained at 43.77 GW, and the PEM electrolyzer market at 2.7 GW. This week, Qinghui Energy’s 15 MW PEM hydrogen production integrated system was officially shipped to a project in Romania, Europe, linking renewable energy electrolysis for hydrogen production; Wenshi Hydrogen’s three AEM hydrogen production units were shipped to the Netherlands, representing the first repeat order from a European client, with this equipment delivered to a local farm. Project-related updates: Henan Shunli Alcohol Hydrogen Energy Technology Co., Ltd. : Henan Shunli Alcohol Hydrogen Energy Technology Co., Ltd. released a public inquiry for the supervision services for an integrated power generation, biomass gasification and green methanol synthesis project. The project is located in the Coal Chemical Park, Tongye Town, Yindu District, Anyang City, with a total investment of about 1.6 billion yuan, and a supporting raw material pretreatment sub-project investment of about 120 million yuan. The tender scope covers full-cycle supervision services for the raw material pretreatment project, with the service period initially planned from early August 2026 to July 2027. The project uses agricultural and forestry waste as raw material, and plans to produce 70,000 mt/year of non-food biomass green ethanol and 244,000 mt/year of green methanol, with construction in phases. Junrui Green Hydrogen Energy (Chahar Right Rear Banner) Co., Ltd. : The 80,000 mt/year green ammonia production site project has been filed. The project is located in the New Materials Industrial Park, Chahar Right Rear Banner, Ulanqab City, Inner Mongolia, with a total investment of 905.6 million yuan. The project plans to build an 80,000 mt/year ammonia synthesis plant and supporting utilities and auxiliary facilities, relying on upstream wind and solar power green hydrogen production, with an air separation unit to supply nitrogen and ammonia synthesis process to produce green ammonia, and a turndown ratio of 30% to 110%. The project covers an area of 509 mu, with a total floor area of 99,188 m². Construction is planned to start in October 2026 and complete in December 2027. Huaneng Xi’an Thermal Power Research Institute : The scientific research project’s alkaline electrolysis hydrogen production equipment and instruments tender has announced the shortlisted candidates. The first candidate is Fuxin Zhongqing Innovation Technology Co., Ltd., with a bid price of 1.1992 million yuan; the second is Shenzhen Ruilin Technology Co., Ltd., at 1.5808 million yuan; the third is Beijing Leidong Zhichuang Technology Co., Ltd., at 1.6334 million yuan. The project is located at the Baotou Third Thermal Power Plant of North United Power in Baotou, Inner Mongolia, and involves the procurement of a complete alkaline electrolysis hydrogen production system and supporting instruments. The supplier shall provide on-site installation guidance and commissioning services to support the development of high-efficiency single-cycle super alkaline electrolysis hydrogen production equipment. The project does not accept consortium bids, and delivery is required within 70 days after contract signing. CSSC (Handan) Peric Hydrogen Energy Technology Co., Ltd. : secured two orders from an Ecuadorian partner, one for equipment renovation and the other for new equipment for production line expansion, extending their strategic cooperation of over 20 years. Reports indicate that the Ecuadorian partner enterprise introduced Peric hydrogen production equipment in 2004. The equipment has operated stably for 22 consecutive years under complex overseas working conditions with zero failures. Long-term field verification highlights the excellent stability, durability, and environmental adaptability of Peric's electrolytic hydrogen production equipment. Maoming City Public Transport Co., Ltd. The inauguration ceremony for Maoming's first hydrogen fuel cell buses was held at the Maoming Railway Station North Square bus terminal. The vehicles deployed are customized Chery Wanda models, suited for urban, urban-rural, and township passenger transport scenarios, and are equipped with the Tianneng Hydrogen Electric Chenxing-T80 fuel cell system. The buses require only 15 minutes for hydrogen refueling, significantly reducing energy replenishment time compared to pure electric buses, extending operating hours and improving vehicle turnover efficiency, supporting the development of green transport in western Guangdong. PowerChina Beijing Engineering Corporation Limited: The Jiuyuan District hydrogen production and storage integration demonstration project has been filed and will be located in the Jiuyuan Industrial Park, Baotou City. The project has a total investment of RMB 1.4695 billion and is planned to include an annual hydrogen production unit of 7,366 mt, a hydrogen storage facility of 168,900 standard cubic meters, along with supporting hydrogen production testing platforms, a hydrogen quality inspection center, a hydrogen R&D center, and a science popularization base. The project is scheduled to start construction in October 2026 and be completed and operational by December 2028. China Energy Engineering Group Bochuang Green Fuel (Shenyang) Co., Ltd. China Energy Engineering Group's East China Institute has secured the EPC contract for the first phase of the Shenyang wind-solar hydrogen production integrated with biomass green methanol oil demonstration project, involving 10kt of green methanol. The project is located in Kangping County, Shenyang, and is a benchmark project among the first domestic initiatives combining wind-solar electrolytic hydrogen production with biomass gasification to methanol. It leverages local wind power and straw resources to establish a complete 'green electricity-green hydrogen-green methanol' industry chain, producing 10kt of green methanol annually. The project can consume local wind power and agricultural/forestry waste, reducing full life-cycle carbon emissions by about 70% compared to traditional coal-to-methanol processes, with significant environmental and economic benefits. Envision Zero-Carbon Technology (Chifeng) Co., Ltd. The 12 electrolytic hydrogen production rectifier transformers independently developed by XD Electric for the Envision Energy Chifeng Zero-Carbon Hydrogen-Ammonia Phase I project have been fully energized. This project is the world's largest green hydrogen-ammonia project, with core equipment fully deployed. It is planned to produce 1.52 million mt of green ammonia annually, making it the world's first commercial green hydrogen-ammonia project. It builds an entire integrated industry chain of wind, solar, storage, hydrogen, ammonia, and methanol, relies on 100% green electricity to produce liquid ammonia, and holds the world's first renewable ammonia certification issued by Bureau Veritas, showcasing outstanding industry demonstration value. Inner Mongolia Energy Group: The winning candidates for the hydrogen production system equipment procurement of the Jinshan Power Plant 2×660MW coal-fired power expansion project have been announced. The tender covers complete hydrogen production equipment for two 660MW high-efficiency ultra-supercritical air-cooled coal-fired units, with an estimated contract value of RMB 5.5 million. The candidates and their quoted prices are as follows: First candidate Beijing Zhongdian Fengye, quoting RMB 2.46 million; Second candidate Shanghai Qingrui Technology, quoting RMB 2.0833 million; Third candidate Changzhou Xingran Technology, quoting RMB 2.1 million. The project is located in Dongtaosuhao Village, Huangheshao Town, Saihan District, Hohhot. Construction started in December 2024, with Unit #1 planned to be commissioned in June 2027 and Unit #2 in October 2027. Zhuzhou CRRC Times Electric Co., Ltd.: has announced a direct procurement notice for the hydrogen power supply container assembly. The procuring entity is the Green Energy Branch of Zhuzhou CRRC Times Electric, with a procurement target of three sets of hydrogen power supply container assemblies. The designated supplier for this project is Guangdong Anpei Electric Power Co., Ltd. Policy Review 1. Scientifically plan the development of green hydrogen, ammonia, and methanol. Coordinate factors such as wind and solar resources, carbon sources, and water sources, integrate infrastructure construction for transportation, refueling, and transshipment, and plan the layout of green hydrogen, ammonia, and methanol production bases according to local conditions. Based on market demand, build integrated wind-solar hydrogen-ammonia-methanol projects for nearby consumption and utilization. Encourage the development of wind-solar hydrogen production in weak-grid or off-grid modes. Large-scale development projects for green hydrogen, ammonia, and methanol. Focus on northeast China, planning to build green hydrogen, ammonia, and methanol production bases primarily for outward transmission. Based on local conditions, plan to build green hydrogen, ammonia, and methanol production bases for nearby utilization in regions such as the 'Jiziwan' area of the Yellow River, northern North China, and the northern foothills of the Tianshan Mountains. 2. The Department of Economy and Information Technology of Zhejiang Province issued a notice on the 'Work Plan for Accelerating Scenario Cultivation and Openness to Promote Large-Scale Demonstration Applications of New Technologies, New Products, and New Scenarios.' Hydrogen energy application scenarios: Leverage the advantage of industrial by-product hydrogen resources to build the Yangtze River Delta Hydrogen Highway and Hydrogen Corridor, promote fuel cell vehicles such as port heavy-duty trucks, cold chain logistics, and bus passenger transport, and develop demonstration application scenarios for hydrogen transportation such as ships, forklifts, two-wheelers, and drones. For industrial application scenarios, advance the integrated construction of renewable energy hydrogen production projects, produce green hydrogen at scale or further synthesize green ammonia and green methanol, and promote the substitution of hydrogen-based chemical raw materials and green fuels. In industrial and civil fields, on the premise of ensuring safety, explore hydrogen-ammonia-methanol co-firing application scenarios. 3. The Beijing Municipal Administration for Market Regulation, the Tianjin Municipal Market Regulation Commission, and the Hebei Provincial Administration for Market Regulation jointly formulated the 'Technical Specification for Carbon Inclusive Project Emission Reduction Accounting - Hydrogen Fuel Cell Vehicles' (DB11/T 3054-2026), released on July 6, 2026, and will be implemented from October 1, 2026. This standard defines the terms and definitions related to hydrogen fuel cell vehicles in the carbon inclusive project emission reduction accounting for the Beijing-Tianjin-Hebei region, and stipulates the basic requirements, greenhouse gas types, project boundaries and crediting periods, accounting methods, data monitoring and management, and key verification points for hydrogen fuel cell vehicle carbon inclusive projects. This document applies to the design, construction, and operation of hydrogen fuel cell vehicle carbon inclusive projects within the administrative region of Beijing-Tianjin-Hebei. Enterprise Developments Shaanxi Hydrogen Energy (Xianyang) Development Co., Ltd. has settled in the Shaanxi Hydrogen Energy Quality Technology Innovation Base. It will subsequently focus on the layout of liquid hydrogen storage system R&D and industrialization projects within the base. Leveraging the platform advantages of the base in inspection and testing, standard research, and industry-university-research collaboration, it will conduct performance testing, safety verification, and process optimization for liquid hydrogen storage equipment, accelerating product iteration for liquid hydrogen storage tanks and complete refueling systems. China Energy Engineering Group (Jiuquan) New Energy Co., Ltd. is a new energy company established by China Energy Engineering Group with a registered capital of RMB 1 million, located in the Economic and Technological Development Zone, Northwest Street Subdistrict, Suzhou District, Jiuquan City, Gansu Province. Its business scope includes permitted projects: power generation business, power transmission business, power supply (distribution) business; power supply operations (projects subject to legal approval can only be carried out after approval by relevant departments). General projects: contract energy management; engaging in investment activities with its own funds; power generation technical services; sales of hydrogen refueling station and hydrogen storage facilities, etc. Shanghai Hyfun Energy Technology Co., Ltd. : Its Shanghai Standardization Pilot Project has been successfully accepted. Companies in the same hydrogen refueling field can directly reuse the mature model established by Hyfun for this standard system, including grounded verification and iterative optimization, significantly reducing standardization construction costs. The complete set of standardized R&D and production processes for hydrogen refueling station equipment can be transferred and reused in hydrogen refueling production scenarios across various regions nationwide. Shanghai Xinran Compressor Co., Ltd.: has successfully signed a hydrogen compressor procurement project with Shandong Taihe Technology Co., Ltd., with both parties having completed the project signing. This customized equipment is designed for the operating conditions of a large PetroChina hydrogen production station, relying on the group's mature liquid-driven compression technology, with advantages in high-pressure output, stable continuous operation, and convenient maintenance. The equipment has completed full-process simulated operating condition testing before leaving the factory, strictly meeting the standards for hydrogen refueling, storage, and transportation in the oil and gas industry. Jiangsu Huade Hydrogen Energy Technology Co., Ltd.: A set of CarNeu-500 500kW large-power hydrogen power generation system has completed manufacturing and factory acceptance testing, and has been officially shipped to Brazil, marking the first project delivery in the South American market. This system is also the largest single-unit power station product delivered by the company to date. Tianneng Hydrogen Energy Technology Co., Ltd.: The first batch of officially operational hydrogen fuel cell buses in Maoming City, Guangdong Province, are equipped with the Chenxing-T80 fuel cell system independently developed by Tianneng Hydrogen Energy Technology Co., Ltd., aiming to support the construction of the local green public transportation system. Guangzhou Shipbuilding Industry Co., Ltd.: The 2000-ton hydrogen fuel cell powered cargo ship 'Yuntao No.1', undertaken by the company and developed by the 605th Research Institute for Guangdong Yuntao Hydrogen Energy Technology Co., Ltd., has been launched in Zhaoqing, Guangdong. The ship is the largest hydrogen-powered multipurpose cargo vessel in China. The ship has an overall length of 69.3 meters, a beam of 13.7 meters, and a maximumdwt of 2,000 mt. The ship uses hydrogen fuel as its power source, paired with an efficient electric propulsion system, achieving zero carbon emissions. It is equipped with an integrated energy management system that intelligently optimizes and precisely distributes energy to ensure high-efficiency energy utilization. Zaihe Automobile Technology (Suzhou) Co., Ltd.: has teamed up with Jieqing Technology to launch a new hydrogen-electric heavy truck. The two parties have reached a strategic partnership to jointly promote the popularization of hydrogen-powered heavy trucks. Patent Applications 1. The Shanghai Institute of Ceramics, Chinese Academy of Sciences (China) published patent CN2025110028, developing a ceramic-based anion exchange membrane with a laboratory test life of 80,000 hours. 2. Johnson Matthey (UK) filed patent WO2025109876, disclosing a Fe-Ni-Mo ternary non-precious metal catalyst formulation with activity close to platinum-based materials. Technology Footprints / Technical Specifications 1. The latest research achievement of Professor Hu Wenbin's team at Tianjin University has been published online in the international top journal Science. The study overcomes a key challenge in the precise preparation of platinum group catalysts, opening up a new technical pathway for the atomically precise preparation of platinum group catalysts. 2. The teams of Tong Lei and Liang Haiwei from the University of Science and Technology of China (USTC), together with Zhang Liang from Tsinghua University, proposed a Carbon Mesopore Depth Engineering (CMDE) strategy. Based on hollow mesoporous carbon spheres to regulate ionomer penetration depth, it solves the inherent contradiction between kinetic activity and oxygen mass transfer in low-platinum fuel cells, developing a PtCo low-platinum catalyst with poisoning tolerance, high mass transfer, and excellent durability, achieving power, activity, and durability targets set by the US DOE at an ultra-low platinum loading of 0.1 mgPt cm⁻². 3. Professor Li Zhipeng's team at Northwestern Polytechnical University innovatively constructed a three-dimensional multi-physics field coupling model for tubular solid oxide fuel cells, systematically revealing the quantitative influence laws of temperature, electrode thickness, porosity, and oxygen domain geometric parameters on the cell's output performance. 4. The National Hydrogen Power Quality Inspection and Testing Center of China Automotive Engineering Research Institute has built a 0-400kW hydrogen-related loaded three-comprehensive vibration test platform and opened it for commercial use, filling the gap in large-power hydrogen-related multi-physics field coupled testing in China. 5. The high specific power cathode closed air-cooled stack technology developed by the team of Academician Chen Zhongwei and Associate Researcher Zhang Meng at the State Key Laboratory of Energy Catalytic Conversion, Dalian Institute of Chemical Physics, has passed the scientific and technological achievement appraisal by the China Petroleum and Chemical Industry Federation. This technology effectively overcomes the industry contradiction between water retention and oxygen mass transfer in air-cooled fuel cells, solving technical challenges including low-humidity performance degradation, carbon corrosion, membrane dry-out/flooding, and high-power thermal management.

SMM, July 21 – To deepen industry exchanges, smooth information channels, and accurately grasp development trends and market dynamics in the zinc and indium sectors, on July 21, a team from SMM Information & Technology Co., Ltd. (SMM) — including Geng Zhiyao, Senior Analyst for Copper, Lead and Zinc; Li Hanyu, Senior Zinc Analyst; and Dai Junxiu, Senior Business Manager — visited Yunnan Tin Wenshan Zinc Indium Smelting Co., Ltd. for an exchange and was warmly received by relevant leaders of the company. During the exchange, the two parties had in-depth discussions on core industry topics, such as current zinc and indium price trends, the enterprise’s comprehensive recovery technologies for zinc and indium metals, existing production and processing capacity, and the regional layout of new mine capacity. Meanwhile, the SMM team introduced in detail the platform’s existing pricing system, pricing logic, and mainstream market application scenarios, conducted in-depth exchanges with the enterprise on industry pricing standards and market quotation applications, fully listened to frontline production and market demands, and further broke down information barriers between upstream and downstream. This visit effectively consolidated the foundation for information sharing across the industry and provided strong support for accurately assessing zinc and indium market trends and promoting the green, high-quality, and standardized development of the industry. Profile of Yunnan Tin Wenshan Zinc Indium Smelting Co., Ltd. Yunnan Tin Wenshan Zinc Indium Smelting Co., Ltd. is a wholly-owned subsidiary of Yunnan Tin Co., Ltd. Established in May 2016 with a registered capital of 1.1 billion yuan and 843 registered employees, it is a state-owned enterprise integrating production, R&D, and trade, mainly engaged in the smelting, processing, sales, and trading of non-ferrous metals and ore products. After six years of independent process and equipment R&D, the company overcame the industrialization challenges of hematite technology and equipment. In 2018, it invested 2.44 billion yuan to build China’s first and the world’s second demonstration plant for hematite iron removal hydrometallurgical zinc smelting. The plant reached full production and standards within one year, with core indicators leading the industry: zinc recovery rate >98%, indium recovery rate >83%, copper recovery rate >95%, lead and silver recovery rate >99%, iron resource utilization rate >95%, comprehensive energy consumption for zinc electrowinning 99.96%, and tail gas SO 2 <60 mg/Nm 3 . Leveraging its technological and green development strengths, the company has received more than 30 honors, including national-level “Quality Engineering” award, national-level specialized and sophisticated key “Little Giant” enterprise, national-level green factory, and high-tech enterprise. It holds 42 authorized patents (including 21 invention patents), and three of its core technologies have won the First Prize of China Nonferrous Metals Industry Science and Technology Award. The “New Green and Efficient Zinc Smelting Technology for Complex Polymetallic Iron-bearing Sphalerite” and the “Hematite Process for Iron Removal and Zinc Smelting” have been respectively listed by the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT), and other authorities in the industry carbon peak action plan and energy-saving and carbon-reduction guide, and are promoted as key advanced technologies. SMM Contact: Geng Zhiyao Tel: 13818541149

Recently, the Energy Bureau of Shandong Province issued the Implementation Plan for Scenario Development in the New Energy Sector of Shandong Province, systematically deploying measures around new energy technology innovation, scenario cultivation, and industry development. The plan proposes to use scenario development as a lever to accelerate the transformation of new energy technology achievements and their industrialisation application, further cultivate new quality productive forces in the new energy sector, and support the province’s green, low-carbon, and high-quality development. The Implementation Plan clarifies the commitment to driving technology R&D, achievement transformation, and industry clustering through new energy scenario development, combining resource endowments and industrial foundations to create demonstrative, replicable, and scalable application scenarios. According to the plan, by 2027, the province will have cultivated more than 30 projects in the provincial scenario bank, established 2 to 3 provincial scenario innovation laboratories, and launched a batch of replicable and scalable demonstration scenarios. By 2030, a nationally leading new energy scenario innovation ecosystem will be basically established. Centering on key tasks, the plan follows a "4+2" overall layout to systematically advance 22 new energy scenario development tasks, covering multiple fields such as new energy production, transmission and distribution, consumption, industrial application, and urban governance. Among them, priority will be given to the comprehensive utilisation of onshore wind power, marine energy, nuclear energy, geothermal energy, and other resources to create high-efficiency clean energy development scenarios. At the same time, it will promote new-type power system applications such as direct green electricity connection, virtual power plants, and smart microgrids to enhance new energy consumption capacity. In the hydrogen energy sector, the plan proposes accelerating the deployment of integrated green hydrogen production, storage, and transportation, new energy coupled carbon capture and utilisation, hydrogen supply assurance and other application scenarios, promoting diversified new energy utilisation and synergistic industry development, and providing support for the green hydrogen industry chain construction and demonstration application. Additionally, Shandong will promote the deep integration of new energy with industries such as industrial transformation, green transportation, modern agriculture, and computing power to create scenarios for new energy empowering industrial development. It will simultaneously advance comprehensive demonstration projects such as new-type power system demonstration zones, new energy-rich areas, and new energy ports to form a new energy application system covering multiple fields and levels. To accelerate project implementation, the Implementation Plan proposes establishing a new energy scenario project reserve and dynamic management mechanism. Projects meeting the criteria will be given priority for inclusion in provincial key projects, and full life cycle service support for projects will be strengthened to promote the coordinated advancement of technology breakthroughs, achievement transformation, and project construction. Meanwhile, a scenario innovation evaluation mechanism will be established to dynamically adjust projects with slow construction progress or poor implementation effects, continuously improving the quality of scenario development. It is understood that during the plan drafting process, Shandong Province simultaneously organised the collection of landmark application scenario projects in the new energy sector. After evaluation based on policy compliance, pre-existing foundations, and demonstration and driving effects, the first batch of 67 provincial landmark application scenario projects in the new energy sector has been selected and released together with the Implementation Plan.

JL MAG Rare-Earth's July 15 investor relations activity record shows: 1. Please elaborate on the company's expected H1 2026 performance growth? JL MAG Rare-Earth responded: In H1 2026, the company's management upheld the annual operating policy of "adhering to compliance and integrity, staying customer-oriented, focusing on the magnetic material core business, building 20,000 mt of capacity on schedule, actively deploying embodied robot motor rotors, and scaling new heights." Through measures such as technological innovation, organizational optimization, digitalization, and lean management, while fully ensuring contract fulfillment and delivery to a broad client base, the company achieved steady growth in operating performance. The company continued to consolidate its leading position in the new energy and environmental protection sectors and actively explored emerging markets, with operating revenue expected to grow approximately 30% YoY. In the NEV and parts sector, revenue grew approximately 30% YoY; in the robot and industrial servo motor sector, revenue grew approximately 90% YoY, with small-volume deliveries of embodied robot motor rotors already underway. In H1 2026, net profit attributable to the parent is expected to be 400 million to 460 million yuan, up 31% to 51% YoY; deducted non-recurring net profit attributable to the parent is expected to be 370 million to 430 million yuan, up 57% to 83% YoY. In Q2 2026, net profit attributable to the parent is expected to be 210 million to 270 million yuan, up 43% to 85% YoY and up 7% to 39% QoQ; deducted non-recurring net profit attributable to the parent is expected to be 190 million to 250 million yuan, up 50% to 97% YoY and up 9% to 44% QoQ. 2. What is the latest progress of the company's embodied robot business? JL MAG Rare-Earth responded: Robots liberate human productivity and represent a key direction in the new wave of technological change, with broad industry development prospects. The company is actively cooperating with world-renowned tech companies in the R&D of embodied robot motor rotors and has made small-volume product deliveries. In addition, through direct investment or participation in industrial funds, the company is making strategic deployments in key links of the relevant industry chain to accelerate industrial synergy and commercialization. 3. What about the company's raw material supply and recycling layout? JL MAG Rare-Earth responded: The company has established long-term strategic partnerships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group, and fully leverages the advantage of controlling Yin Hai New Materials to deploy upstream rare earth recycling business, building a diversified rare earth resource supply system. The company was an early mover in rare earth recycling in the industry and currently holds a 51% stake in Yin Hai New Materials. Leveraging the group's manufacturing system, recyclable materials such as magnetic sludge and off-cuts generated during production at the company's various plants can be steadily supplied to Yinhai New Materials for recycling and processing, meeting its production needs while providing strong assurance for the company's raw material supply. In 2025, the company recovered a total of 3,681 mt of rare earth raw materials. Yinhai New Materials has already generated operating revenue and profit contributions. In 2025, it achieved operating revenue of 195 million yuan and net profit of 50.5 million yuan (the above are actual operating results, excluding adjustments related to purchase price allocation). Currently, Yinhai New Materials has passed ISO 14021 certification, and its main products have received certification for 100% recycled content under international standards. 4. Please elaborate on the situation regarding the company's planned acquisition of a partial stake in Baotou Rare Earth Products Exchange Co., Ltd.? JL MAG Rare-Earth responded: In order to implement the company's development strategy and enhance its overall competitiveness, the company plans to acquire, through public listing and transfer on the Inner Mongolia Property Rights Exchange Center, a 9.24% equity interest in Baotou Rare Earth Products Exchange Co., Ltd. (hereinafter referred to as the "Rare Earth Exchange") held by China Northern Rare Earth (Group) High-Tech Co., Ltd. According to the appraisal report issued by Northern Asia Asset Appraisal Co., Ltd., as of the valuation date of December 31, 2025, the total equity value of the Rare Earth Exchange assessed using the market approach was 239 million yuan, a premium of 27.86 million yuan over the net asset book value of 211.14 million yuan as of the valuation date, representing an appreciation rate of 13.19%. The estimated transaction price for the target equity is 22.08 million yuan. Rare earths are the core raw material for producing NdFeB permanent magnet materials. The Rare Earth Exchange serves as a specialized trading platform for rare earth (metal) resources. If this equity acquisition is successfully completed, it will further enhance the company's ability to secure rare earth raw material supply, strengthen its overall competitiveness, and consolidate its market position in the rare earth permanent magnet industry. The company will, in accordance with the principle of cooperative co-construction and mutual benefit, fully leverage its own strengths to assist the Rare Earth Exchange in becoming a national-level rare earth (metal) resource trading platform. This planned acquisition of part of the Rare Earth Exchange's equity constitutes a state-owned asset transfer matter, and the transaction must strictly follow the statutory procedures for state-owned asset transactions, including approvals and listing. The company will monitor progress and fulfill its information disclosure obligations in accordance with relevant regulations. JL MAG Rare-Earth's semi-annual performance forecast released on July 1 showed: Net profit attributable to shareholders of the parent company is estimated to be between 400 million yuan and 460 million yuan in H1 2026, up 31.17% to 50.84% YoY. Regarding the reasons for the performance change, JL MAG Rare-Earth stated in its announcement: 1. In H1 2026, the company's management adhered to the annual operating policy of "upholding legal compliance, maintaining client focus, concentrating on the core magnetic materials business, adding 20,000 tons of capacity on schedule, proactively developing motor rotors for embodied robots, and scaling new heights." Through measures such as technological innovation, organizational optimization, digital transformation, and lean management, while ensuring full performance of contracts and delivery to a broad client base, the company achieved steady growth in its operating results. The company continued to strengthen its leading position in the new energy and environmental protection sectors and actively explored emerging markets. Revenue is expected to rise by approximately 30% YoY. Specifically, in the NEV and auto parts segment, revenue rose by about 30% YoY; in the robotics and industrial servo motor segment, revenue rose by approximately 90% YoY, and embodied robot motor rotor products have already seen small-batch deliveries. 2. During the reporting period, the estimated impact of non-recurring gains and losses on net profit was approximately 32 million yuan, compared with non-recurring gains and losses (after tax) of 70.94 million yuan in the same period last year. 3. During this reporting period, due to A-share and H-share equity incentives and the issuance of H-share convertible bonds, related expenses such as share-based compensation costs and financial expenses totaled approximately 121 million yuan. No such expenses existed in the same period last year. A recently issued announcement by JL MAG Rare-Earth showed that, to implement its development strategy and enhance overall competitiveness, it planned to acquire a 9.24% stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth (Group) High-Tech Co., Ltd. through a public listing and transfer process on the Inner Mongolia Equity Exchange , According to the appraisal report issued by Northern Asia Assets Appraisal Co., Ltd., the total equity value of the Rare Earth Exchange assessed using the market approach as of the valuation reference date of December 31, 2025, was 239 million yuan, representing an increase of 27.8551 million yuan over the net asset book value of 211.1449 million yuan on that date, an appreciation rate of 13.19%. The expected transaction price for the target equity stake is 22.0836 million yuan. In accordance with the Shenzhen Stock Exchange ChiNext Listing Rules, the Company’s Articles of Association, and other relevant regulations, this external investment falls within the approval authority of the CEO. It does not constitute a connected transaction, nor does it constitute a major asset restructuring as defined under the Administrative Measures for Major Asset Restructurings of Publicly Listed Companies. In its 2025 annual report, JL MAG described its main business and product applications as follows: The company is a high-tech enterprise integrating R&D, production and sales of high-performance NdFeB permanent magnet materials, magnetic assemblies, embodied robot motor rotors, and comprehensive recycling of rare earths. It is a leading supplier of rare earth permanent magnet materials for the new energy and environmental protection sectors. Its products are widely used in NEVs and auto parts, energy-efficient inverter air conditioners, wind power generation, robotics and industrial servo motors, 3C electronics, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term and stable partnerships with leading enterprises in these fields both within and outside China. The company has been actively deploying in the robotics field: on one hand, it collaborates with internationally renowned technology companies on the R&D and capacity building for embodied robot motor rotors, with small-batch product deliveries; on the other hand, through direct investment or participation in industry funds, it makes strategic moves in key links of the relevant industry chain to accelerate industrial synergy and commercialization. Regarding the 2026 annual operating plan, JL MAG Rare-Earth stated in its 2025 annual report: The company's 2026 business guideline: "Adhere to legal compliance, uphold customer orientation, focus on the core business of magnetic materials, build new capacity of 20,000 mt as scheduled, actively position in embodied robot motor rotors, and scale new heights." In accordance with the company's business guideline and on the premise of legal compliance, the company will focus on advancing the following efforts: 1. Orderly release of capacity under construction. In 2026, some of the company's projects under construction will gradually release capacity. The specific release progress will comprehensively consider factors such as equipment commissioning and market demand, advancing the commissioning and ramp-up of new capacity in an orderly manner. 2. Continuous enhancement of R&D capabilities. 3. Continuous optimization of product structure. The company will center on client needs, continuously enrich the product portfolio for different application scenarios, and enhance the resilience of the product structure and client stickiness. At the same time, it will steadily advance the layout of projects such as magnetic components and embodied robot motor rotors, equip dedicated production lines and professional teams, and drive the upgrade of small-batch production lines to large-scale, standardized manufacturing and quality systems. 4. Continuous improvement of operational capabilities. 5. Strengthening capital expenditure efficiency. 6. Improving incentive mechanisms and shareholder returns. 7. Advancing ESG system construction. As for the risks the company may face, JL MAG Rare-Earth stated when introducing the risk of price fluctuations in rare earth raw materials: Rare earth metals are the main raw materials for producing NdFeB magnetic steel. China is an important global supply hub for rare earth raw materials. Wild swings in rare earth raw material prices will adversely impact the company's production and sales in the short term. Countermeasures: The company has built manufacturing plants in Ganzhou, Jiangxi, a major production area for heavy rare earth, and Baotou, Inner Mongolia, a major production area for light rare earth. The company has established long-term cooperative relationships with major rare earth raw material suppliers, including China Northern Rare Earth Group and China Rare Earth Group. At the same time, the company strives to mitigate the adverse impact of rare earth raw material price fluctuations on its operating performance through measures such as pre-purchasing rare earth raw materials based on orders on hand, establishing price adjustment mechanisms with key clients, optimizing formulations, and improving processes. Looking back at the price performance of Pr-Nd alloy in H1 this year, it can be seen that: : The average price of Pr-Nd alloy on June 30 was 905,000 yuan/mt. Compared with its average price of 735,000 yuan/mt on December 31, 2025, the increase in H1 was 23.13%. The annual daily average price of Pr-Nd alloy in H1 this year was 904,650.86 yuan/mt, compared with 529,559.83 yuan/mt in H1 2025, with the semi-annual daily average price increasing by 375,091.03 yuan/mt, for a YoY increase of 70.83%. According to SMM's price quotes, on July 17, the price of Pr-Nd alloy was 920,000-930,000 yuan/mt, with an average price of 925,000 yuan/mt, down 0.54% from the previous trading day. Currently, rare earth market prices are trending slightly downward. Focusing on the Pr-Nd market, Pr-Nd oxide futures prices declined, while spot market inquiries were sluggish. Affected by this, suppliers lowered their offers for Pr-Nd oxide. However, most industry participants remain confident about the market outlook and show a strong willingness to hold prices firm, resulting in a relatively small actual decline in oxide prices, with low-priced goods still scarce and hard to find. Metal market prices also slipped. New orders at magnetic material enterprises were poor, limiting their capacity to accept high-priced metals, with procurement mainly driven by rigid restocking demand, leading to sluggish metal market inquiries. The upstream-downstream stalemate persisted in negotiations, with the metal side continuing to face pressure. It is expected that in the short term, due to sluggish trading activity, Pr-Nd product prices will likely move sideways in a narrow range. Recommended Reads:

On July 14, China Northern Rare Earth's stock price rose. As of the close on July 14, it was up 2.18% to 39.83 yuan per share. In market news, China Northern Rare Earth released its semi-annual earnings forecast, showing: Based on preliminary estimates by the company's financial department, net profit attributable to owners of the parent for H1 2026 is expected to be between 1.98 billion and 2.06 billion yuan, representing an increase of 1.05 billion to 1.13 billion yuan compared with the same period last year (as per statutory disclosure data), up 112.74% to 121.33% YoY. Excluding non-recurring items, net profit attributable to owners of the parent for H1 2026 is expected to be between 1.99 billion and 2.07 billion yuan, an increase of 1.093 billion to 1.173 billion yuan YoY, up 121.90% to 130.82%. The main reasons for the expected profit increase in the period are: In H1 2026, the company served the national rare earth resource strategy and fully implemented the requirements for safety control of the rare earth industry chain. Affected by factors such as supply constraints on the raw material side and the release and sustained growth of downstream demand at multiple points, rare earth product prices generally strengthened and consolidated. The company focused on its annual production and operation targets, carried out integrated planning and comprehensive measures, strengthened comprehensive budget management, and worked on cost reduction, quality improvement, and efficiency gains in a coordinated manner. It scientifically organized production scheduling, intensified marketing operations, deepened reform and innovation, and strengthened group management and risk control. The company advanced the deep integration of professional management, lean management, and 5S management to a high standard, promoted key project construction, and accelerated the development of new quality productive forces through management and R&D innovation. With strong value creation capabilities across the industry chain and core competitiveness, the company provided solid support and assurance for achieving good operating results. The company refined the organization and operation of production scientifically, with production volumes of rare earth smelting and separation products, rare earth metal products, and new rare earth materials all reaching historical highs for the same period; the subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. achieved operating revenue of approximately 9.5 billion yuan in H1, up about 107% YoY, maintaining growth for three consecutive years; the subsidiary Inner Mongolia Xi'ao Ke Hydrogen Storage Alloy Co., Ltd. officially put its first batch of 1,000 hydrogen-powered two-wheelers into operation in Baotou, with a cumulative safe driving mileage of 170,000 kilometers, demonstrating notable project success. The company persisted in benchmarking against internal and external excellence, tapping into internal potential, and strengthening refined management, leading to significant improvements in multiple economic and technical indicators. Targeted measures were adopted for each business segment: In smelting and separation, the division overcame new cost changes brought by rising prices of raw and auxiliary materials, effectively managed cost fluctuations, scientifically organized production scheduling, and ensured new product supply demands. In rare earth metals, leveraging the concept of lean production as a starting point, digital and intelligent methods were further used to strengthen on-site process operation management, driving new breakthroughs in economic and technical indicators such as quality and material ratios. In new rare earth materials and applications, the segment fully utilized newly added capacity advantages, precisely aligned with client needs, and made new progress in promoting sales through production. Deepening industry chain synergy, the Company solidified the foundation of downstream client cooperation while ensuring stable product supply. The Company closely tracked market demand, strengthened marketing management, optimized sales structure, client credit evaluation, and product account period management, adjusted and shortened account periods by category, secured the fundamental base with long-term agreement orders, and met differentiated market demand through retail. Sales of rare earth metals and magnetic materials rose steadily, achieving full coverage of top-tier magnetic material players; sales of lanthanum-cerium products increased YoY, further digesting historical inventory; sales of polishing materials increased YoY; 5 new equipment items and 20 customized and distinctive new products were developed, continuously expanding product application scenarios. Key project construction advanced efficiently, continuously enhancing intelligence and informatization levels. The first phase of the rare earth green smelting upgrade and transformation project has been put into production, with the entire production line connected; the second phase construction is progressing in an orderly manner. Projects across the industry chain, including mergers and acquisitions, restructuring, joint ventures, cooperation, and capacity expansion and production increase for rare earth metals, magnetic material alloys, magnets, and secondary resource utilization, are accelerating toward implementation. The secondary resource utilization project achieved volume increase and quality and efficiency improvement; the Company accelerated its pace of digital and intelligent transformation, with digitalization and intelligence levels continuously improving. Regarding the 2026 operating plan, China Northern Rare Earth announced in its 2025 annual report: 2026 is the opening year of the 15th Five-Year Plan and a crucial year for the Company to advance high-quality development and accelerate the building of a world-class rare earth leader. The Company will uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guide, take fostering a strong sense of community for the Chinese nation as the main theme, fully implement the spirit of the 20th CPC National Congress and all previous plenary sessions of the 20th CPC Central Committee, and translate into action the important speeches and instructions of General Secretary Xi Jinping on Inner Mongolia and the rare earth industry, as well as the decisions and plans of higher-level authorities such as the Inner Mongolia Autonomous Region and Baotou City. Adhering to the general principle of pursuing progress while ensuring stability, the Company will fully, accurately, and comprehensively implement the new development philosophy, bravely shoulder its responsibilities and missions, steadily improve the quality and efficiency of operations, build an industry system covering all elements and categories, promote the deep integration of scientific and technological innovation with industrial innovation, accelerate the pace of deepening reforms, enhance modern governance capabilities, continuously strengthen core functions and enhance core competitiveness, accelerate the realization of a world-class rare earth leader, ensure a good start and solid beginning for the 15th Five-Year Plan, and make new and greater contributions to the construction of the "Two Rare Earth Bases." The main production and operation targets for 2026 (these targets are merely planned objectives, and there is uncertainty as to whether they can ultimately be achieved. They do not constitute a substantive commitment 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 44 billion yuan or more, and total profit of 3.5 billion yuan or more. While achieving operational targets, employee compensation is linked to enterprise economic performance and labor productivity in the same direction. Looking back at the price trend of Pr-Nd oxide in H1, SMM data show that it started the year at 609,000 yuan/mt, then hit a H1 high of 890,000 yuan/mt by the month-end of February, marking a cumulative increase of up to 46.7% from the beginning of the year. The core driver came from the supply side: spot Pr-Nd oxide remained tight, futures surged sharply, suppliers held back from selling amid strong bullish sentiment, and metals enterprises were stockpiling ahead of holidays, all of which pushed prices up rapidly. At the same time, disruptions in Myanmar ore supply, domestic separation plants resuming production slower than expectations, and boosted market sentiment formed a combined effect of "undersupply + bullish holdback." However, during March-April, affected by bearish supply-side news and lackluster demand from end-user traditional sectors, the Pr-Nd oxide price quickly pulled back to around 700,000 yuan/mt. That said, the rise in China Northern Rare Earth's concentrate prices in April, supply support from production halts at separation plants, and the release of export orders under the export control extension window jointly drove prices to rebound slightly. Starting in May, the downstream gradually entered the off-season, and purchasing became more cautious. It was not until late June that the Pr-Nd oxide price was boosted again by factors including the official implementation of the Mineral Resources Law Implementation Regulations, which designates rare earths as strategic minerals, and production cuts at scrap recycling enterprises due to tax invoice issues, rebounding to 7.425 billion yuan/mt on June 30. According to SMM quotes, as of July 14, the average price of Pr-Nd oxide was 762,500 yuan/mt, down 0.33% from the previous trading day. Currently, influenced by the intense tug-of-war between upstream and downstream, the oxide market is experiencing significant price fluctuations, while the metals market is relatively sluggish in terms of inquiries, with suppliers holding their quotes relatively firm and showing no obvious adjustments. In the short term, as some raw ore separation and scrap recycling plants undergo production cuts and suspensions, oxide suppliers' willingness to sell at low prices is weak, which is expected to drive Pr-Nd product prices to drift higher. Recommended reading:

SMM, July 14: Metals Market: Overnight, base metals on overseas and domestic markets showed mixed performance. LME tin led the decline with a drop of 2.47%, while LME lead, LME zinc, and SHFE tin all fell over 1%—LME lead (-1.32%), LME zinc (-1.23%), and SHFE tin (-1.27%)—with the rest of the metals seeing relatively small changes. Alumina main contract edged up 0.15%, while cast aluminum main contract edged down 0.22%. Overnight, ferrous metals generally fell, with only iron ore and stainless steel rising—stainless steel gained 1.85% and iron ore rose 0.47%. Hot-rolled coil and rebar both edged down. For coking coal and coke, coking coal fell 0.04% and coke dropped 1.04%. In precious metals overnight, COMEX gold fell 2.55%, briefly dipping below the $4,000/oz psychological level again during the session, while COMEX silver dropped 3.63%. In China, SHFE gold fell 2.12% and SHFE silver declined 2.84%, mainly as escalating Middle East tensions fueled rate-hike expectations. As of 6:44 a.m. July 14, overnight closing prices: Macro Front China: [State Council: Target total retail sales of consumer goods to reach around 60 trillion yuan by 2030] The State Council approved the “Expanding Consumption” 15th Five-Year Plan, aiming for the consumer market to keep expanding in scale by 2030, with the household consumption rate rising notably and total consumption of goods and services growing rapidly; total retail sales of consumer goods are to reach around 60 trillion yuan, providing a stronger boost to economic growth. The consumption structure will be further optimized, with the share of per capita service consumption expenditure in per capita consumption expenditure steadily increasing, development-oriented and improvement-oriented consumption continuing to grow, digital consumption scale constantly expanding, and urban-rural, regional, and group consumption gaps gradually narrowing. Consumption capacity will keep improving, high-quality full employment will make new progress, household income will grow in step with the economy, the social security system will be more optimized and sustainable, and consumers will have stronger spending power, more stable expectations, and greater confidence. [State Council: Launch access and on-road pilot programs for intelligent connected vehicles] The State Council approved the “Expanding Consumption” 15th Five-Year Plan, which notes that high-quality development of digital consumption will be promoted, “AI + consumption” will be deepened, and a digital consumption upgrade campaign will be implemented. The plan calls for expanding digital product consumption, increasing effective supply of new-generation intelligent end-use products such as AI phones and computers, smart wearables, intelligent robots, and desktop 3D printing equipment, accelerating R&D and interconnection of smart security and video care systems, and launching access and on-road pilot programs for intelligent connected vehicles. Digital service consumption will be upgraded by leveraging AI, virtual reality, and other technologies to empower lifestyle services, scenic spots, and neighborhoods, promoting integrated applications of AI with education, healthcare, culture, tourism, sports, and other sectors, and expanding agent application scenarios. Digital content consumption will be innovated by launching more high-quality digital cultural and museum products, strengthening the supply of ultra-high-definition radio, TV, and online audio-visual content, and developing new film formats such as virtual reality movies and LED digital cinemas. US Dollar: The US dollar index gained 0.35% overnight to 101.31, as Fed Governor Waller sent hawkish signals, while the market awaited the US CPI data and remarks by Warsh later today. Fed Governor Waller said on Monday that if future data show inflation remains well above the 2% target, the Fed may need to raise rates “in the near term.” He described current monetary policy as being at a “crossroads,” adding that the direction will be determined by new information such as the CPI report due Tuesday, and that if data take an unfavorable turn, the Fed is at a stage where it must not be “complacent.” Waller stated: “At current policy levels, inflation could still gradually return to the 2% target. But I am equally concerned about the alternative scenario that data in the coming weeks will show inflation staying elevated or even rising further, which would require tighter policy in the near term.” He specifically noted he worries that recent inflation reports suggest price pressures appear to be broadening across the economy, extending beyond the effects of last year’s tariff hikes or recent energy cost increases, possibly reflecting broader, systemic inflation that would demand tighter monetary policy. Waller said, “If core inflation comes in hot again this week, the FOMC will have to consider tightening in the near term. We need to see sustained declines in inflation data over several months to believe that inflation is moving in the right direction.” (Jin10 Data App) Market pricing showed that expectations for at least one rate hike by September had been almost fully priced in, and two hikes by end-March next year had been fully priced. Earlier, Trump announced on social media that the US had reinstated a blockade on Iran and planned to impose a 20% fee on any cargo passing through the Strait of Hormuz. (Jin10 Data App) According to CME FedWatch: the probability of the Fed keeping rates unchanged in July was 58.3%, while the probability of a cumulative 25bp hike stood at 41.7%. For September, the probability of rates staying on hold was 24.9%, a cumulative 25bp hike 51.2%, and a cumulative 50bp hike 23.9%. (Jin10 Data App) Macro Side: Today, data releases will include China’s June trade balance, June import/export y/y growth rates, the US June unadjusted CPI y/y, June seasonally adjusted CPI m/m, June seasonally adjusted core CPI m/m, June unadjusted core CPI y/y, June NFIB Small Business Optimism Index, and the weekly change in ADP employment for the week ended June 27. Crude Oil: At the overnight close, both benchmarks surged sharply—WTI crude jumped 9.23% and Brent crude soared 9.62%, as the US-Iran geopolitical conflict escalated after Trump announced a blockade of the Strait of Hormuz, triggering supply disruption fears. According to CCTV News, Trump said on his social media platform on Monday that the US will impose a 20% fee on all cargo shipped through the Strait of Hormuz, with related procedures and deployment to begin immediately. During the US stock market afternoon session, US Central Command confirmed that US forces will restart the maritime blockade on Iran starting at 4:00 p.m. Eastern Time on Tuesday (4:00 a.m. Beijing time on Wednesday), and international crude gains briefly widened to nearly 10%. Goldman Sachs’s base case forecasts Brent to move sideways in a $75–85 range, based on the logic that Iran effectively controls transit while the US tacitly accepts this reality, with traffic gradually resuming. A move above $100 would require direct strikes on regional energy infrastructure—such as an offshore platform hit over the weekend—or a simultaneous disruption of both the Strait of Hormuz and Bab el-Mandeb. Chris Hussey of Goldman Sachs added a long-term perspective, projecting that by 2028 over half of the crude oil originally shipped through the Strait of Hormuz will find alternative pipeline routes, noting that history shows a single-country pipeline in the Middle East can be built in as little as two and a half years, with seven pipelines already under construction. (Wallstreetcn) Russia’s June crude output fell to the lowest level in at least two and a half years, as Ukraine attacked Russian oil infrastructure on an almost daily basis. According to the OPEC monthly report, Russian producers pumped 8.928 million barrels per day (bpd) of crude in June. These figures underscore the enormous pressure on Russia’s oil sector: refiners were forced to cut runs because of Ukrainian drone strikes, leaving Russia to export large volumes of crude. OPEC data based on secondary sources showed that Russia’s June output was 834,000 bpd below its OPEC+ target and 61,000 bpd below the slightly revised May figure. (From the Wallstreetcn App)