On June 30, JL MAG Rare-Earth's stock price rose. As of the close on June 30, JL MAG gained 4.83%, closing at 30.85 yuan per share. On the news front: An announcement released by JL MAG Rare-Earth earlier showed that, in order to implement the company's development strategy and enhance its comprehensive competitiveness, it plans to acquire a 9.24% equity stake in Baotou Rare Earth Products Exchange Co., Ltd. held by China Northern Rare Earth (Group) High-Tech Co., Ltd. through a public listing and transfer on the Inner Mongolia Property Rights Exchange Center. According to the appraisal report issued by North Asia Asset Appraisal Co., Ltd., as of the appraisal base date of December 31, 2025, the total equity value of the Exchange appraised using the market approach was 239 million yuan, representing an increase of 27.8551 million yuan over the net asset book value of 211.1449 million yuan on the base date, reflecting a value-added rate of 13.19%. The expected transaction price for the target equity is 22.0836 million yuan. In accordance with relevant provisions such as the Rules Governing the Listing of Stocks on the ChiNext Board of the Shenzhen Stock Exchange and the Articles of Association, this external investment falls within the approval authority of the company's CEO. This investment does not constitute a related-party transaction, nor does it constitute a major asset restructuring as defined by the Administrative Measures for the Material Asset Restructurings of Listed Companies. Discussing the purpose of the investment and its impact on the company, the JL MAG announcement stated: Rare earths are the core raw material for producing NdFeB permanent magnet materials. The 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. In line with the principles of cooperative, co-construction, and mutual benefit, the company will fully leverage and utilize its own advantages to support the Exchange's efforts to build a national-level rare earth (metal) resource trading platform. Funds for this acquisition of the Exchange's equity will come from the company's own funds and will not have a material adverse impact on the company's financial condition and operating results. It is conducive to achieving the company's strategic objectives and does not compromise the interests of the company and its shareholders. In its announcement, JL MAG Rare-Earth also highlighted existing risks: 1. The company's planned acquisition of a partial stake in the Exchange constitutes a transfer of state-owned assets, requiring strict compliance with statutory procedures such as state-owned asset transaction approvals and public listings. There is uncertainty as to whether this equity transfer will be implemented smoothly. 2. As a domestic spot exchange specializing in various rare earth products, the Exchange provides services to upstream and downstream enterprises in the rare earth industry chain, and its operations will be subject to various factors including macroeconomic conditions, industry cycles, and the market environment. Regarding the main risks of the investment, the company will promptly follow up on and cooperate with the approval process for this state-owned asset transfer, while leveraging its own industrial strengths to strengthen collaborative development with the Rare Earth Exchange and manage post-investment and risk control effectively to mitigate investment risks. The company will fulfill its information disclosure obligations in strict compliance with relevant regulations based on subsequent progress of this equity transfer. Investors are advised to exercise caution regarding investment risks. In terms of performance, JL MAG Rare-Earth’s previously disclosed Q1 2026 report showed that during the quarter, the company achieved total revenue of RMB 2.036 billion, up 16.05% YoY, with a net profit attributable to the parent company of RMB 193 million, up 20.09% YoY. JL MAG Rare-Earth’s Q1 2026 report revealed: In Q1 2026, facing a complex landscape where total NEV sales declined YoY while the price of the key raw material Pr-Nd experienced short-term wild swings, the company’s management upheld the annual operating policy of "adhering to legal and regulatory compliance, maintaining a client-centric approach, focusing on the core magnetic materials business, constructing 20,000 mt of new capacity on schedule, actively deploying embodied robot motor rotors, and scaling new heights." By driving technological innovation, organizational optimization, digital transformation, and lean management initiatives, the company mobilized employee initiative to ensure contract fulfillment and on-time delivery to clients while achieving steady business performance growth. In Q1 2026, the company recorded revenue of RMB 2.036 billion, up 16.05% YoY; net profit attributable to shareholders of the publicly listed firm of RMB 193 million, up 20.09% YoY; and non-recurring gain/loss-adjusted net profit attributable to shareholders of the publicly listed firm of RMB 176 million, up 65.95% YoY. The income statement included equity incentive-related share-based payment expenses of RMB 49.9682 million. Net profit excluding the share-based payment impact was RMB 235 million, up 44.57% YoY, and non-recurring gain/loss-adjusted net profit excluding the share-based payment impact was RMB 219 million, up 106.82% YoY. Robots liberate human productivity and represent a critical direction in the next wave of technological transformation, with broad industry growth prospects. In Q1 2026, the company’s robotics and industrial servo motor segment generated revenue of RMB 118 million, up 81.84% YoY, serving clients that include multiple global industrial robot and servo motor producers. The company is actively collaborating with a world-renowned tech firm on the R&D of embodied robot motor rotors and has delivered small-batch products. Additionally, through direct investments and participation in industry funds, the company is making strategic moves in key nodes of the industry chain to accelerate industrial synergy and commercialization. After the introduction of export control measures on medium-heavy rare earth-related items, the company carried out export declaration work in accordance with relevant national regulations, has successively obtained export licenses issued by the national competent authority, and became one of the first enterprises granted a general license by the state. The company's export business was basically stable. During the reporting period, export sales revenue reached 381 million yuan, accounting for 18.7% of operating revenue, up 22.16% YoY. 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 its controlled subsidiary Yinhai New Materials' upstream rare earth recycling business to build a diversified rare earth resource supply system. In Q1 2026, the company achieved a consolidated gross margin of 21.83%, an increase of 6.13 percentage points YoY; net cash flow from operating activities was 358 million yuan, a significant improvement from -350 million yuan in the same period last year, with overall operating cash flow remaining healthy; as of the end of the reporting period, the company held cash and cash equivalents of 3.298 billion yuan, certificates of deposit maturing within one year of 860 million yuan, and certificates of deposit maturing beyond one year of 571 million yuan, reflecting a strong cash reserve. In addition, JL MAG Rare-Earth's 2025 annual report shows: In 2025, the company achieved total operating revenue of 7.718 billion yuan and core business revenue of 7.028 billion yuan, up 14.11% and 19.00% YoY, respectively, both hitting record highs. Of this, domestic sales revenue was 6.447 billion yuan, up 16.36% YoY; overseas sales revenue was 1.27 billion yuan, up 3.92% YoY, of which export sales to the US were 501 million yuan, up 39.80% YoY. Net profit attributable to shareholders of the publicly listed firm was 706 million yuan, up 142.44% YoY; net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses was 620 million yuan, up 264.00% YoY. The consolidated gross margin reached 21.18%, up 10.05 percentage points from 11.13% in the previous year. The income statement included share-based payment expenses from equity incentives and financial expenses for convertible bonds recognized using the effective interest method, totaling approximately 107 million yuan, of which only 5.11 million yuan will require actual cash outflow in the future. Overall operating cash flow remained healthy. Regarding the company's main businesses and product applications, JL MAG Rare-Earth's 2025 annual report describes: The company is a high-tech enterprise integrating R&D, production, and sales of high-performance NdFeB permanent magnet materials, magnetic assemblies, motor rotors for embodied robots, and comprehensive rare earth recycling. It is a leading supplier of rare earth permanent magnet materials in the new energy and energy-saving and environmental protection sectors. The company's products are widely used in NEVs and automotive parts, energy-saving inverter air conditioners, wind power generation, robots and industrial servo motors, 3C, low-altitude aircraft, energy-saving elevators, rail transit, and other fields, and it has established long-term, stable cooperative relationships with industry leaders both in and outside China in each field. The company has actively deployed in the robotics field: on the one hand, it cooperates with internationally renowned technology companies to conduct R&D on motor rotors for embodied robots and capacity building, with small-batch product deliveries already achieved; on the other hand, through direct investments or participation in industry funds, it strategically deploys in key links of the relevant industry chain, accelerating industry synergy and commercialization. JL MAG Rare-Earth, in its annual report, discussed its industry situation during the reporting period and touched on rare earth price trends: In 2025, Pr-Nd alloy prices fluctuated upward overall. According to data from the China Rare Earth Industry Association, the average price of Pr-Nd alloy in 2025 was 601,300 yuan/mt, a YoY increase of 23.8%. Rare earth prices are generally determined by the interplay of multiple factors, including supply, demand, policies, inventory, and market expectations. Meanwhile, compared to short-term fluctuations in rare earth prices, the industry places greater emphasis on medium- and long-term changes, as relatively stable rare earth prices are conducive to the industry's high-quality development. Regarding its outlook for future development, JL MAG Rare-Earth stated: (1) Corporate Development Strategy The company will continue to uphold its vision of "becoming a global leader in the rare earth permanent magnet industry" and its development strategy of "providing clients with full-category magnetic material solutions," centered on rare earth permanent magnets, focusing on application scenarios related to new energy and energy conservation and emission reduction, to continuously enhance product performance and cost efficiency. At the same time, the company adheres to group-oriented operations and collaborative industry chain deployment, guided by client needs and the principle of long-termism, steadily advancing capacity construction and technological upgrades. 1. Commitment to Stable Operations: The company steadfastly upholds intrinsic safety bottom lines, strictly implements national regulations in areas such as export permits, production safety, and environmental protection, solidly pursues compliant operations and comprehensive risk control, and always maintains a prudent financial strategy. It remains focused on its core business, making technological innovation and process improvement long-term core investment priorities, continuously strengthening the automation, digitalization, and intelligent construction of production operations, and gradually building sustainable capabilities for product iteration and lean cost optimization. 2. Collaborative Industry Chain Deployment: The company follows an industry chain layout approach of "upstream recycling collaboration, midstream product diversification, and downstream component extension," comprehensively enhancing collaborative operational efficiency in the industry chain and strengthening its resistance to market fluctuations. Upstream, the company will build a recycling system and deepen resource synergy cooperation, promote the diversification of raw material supply sources, and continuously optimize procurement and inventory management efficiency. Midstream, leveraging existing areas of strength, it will closely target the differentiated needs for magnetic materials across various application scenarios, continuously improve its product portfolio and optimize product structure, steadily transforming from a “single-product supplier” to a “comprehensive solution provider.” Downstream, deeply aligning with core client needs, the company will steadily advance R&D and production capacity building for magnetic assemblies, motor rotors, and other products, continuously enhancing assembly precision and full-process quality control, effectively increasing client stickiness and product added value. 3. Synergistic Strategic Investments In terms of strategic investments, the company will carry out prudent equity investments or partnerships around client needs and key links in the industry chain, adhering to the principle of mutual empowerment between investments and the company’s principal operations. Leveraging industrial funds established in collaboration with professional investment institutions, it will focus on strategic tracks such as high-end manufacturing, embodied AI, and new energy, deepen project layout and value cultivation, and promote industry resource synergy and long-term value enhancement. (II) 2026 Annual Operating Plan The company’s operating policy for 2026: “Adhere to legal and compliant operations, uphold client orientation, focus on the magnetic materials main business, build the 20,000 mt new capacity on schedule, actively position in motor rotors for embodied robots, and reach new heights.” In line with this policy and on the premise of legal and compliant operations, the company will prioritize the following work: 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 continue to enrich its product matrix for different application scenarios based on client needs, enhancing product structure resilience and client stickiness. At the same time, it will steadily advance the layout of projects such as magnetic assemblies and motor rotors for embodied robots, equip dedicated production lines and specialized teams, and upgrade 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 the ESG System. Regarding risks the company may face, JL MAG Rare-Earth noted when describing the risk of rare earth raw material price fluctuations: Rare earth metals are the main raw materials for producing NdFeB magnets. China is an important global supplier of rare earth raw materials. Wild swings in rare earth raw material prices will, in the short term, adversely affect the company’s production and sales. Countermeasures: The company has built production plants in Ganzhou, Jiangxi, a major heavy rare earth production area, and Baotou, Inner Mongolia, a major light rare earth production area. It 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, through measures such as purchasing rare earth raw materials in advance based on orders on hand, setting up price adjustment mechanisms with major clients, optimizing formulations, and improving processes, the company strives to mitigate the adverse impact of rare earth raw material price fluctuations on its business performance. Looking back at the price performance of Pr-Nd alloy in 2025, : The average price of Pr-Nd alloy on December 31, 2025, was 735,000 yuan/mt, compared with the average price of 489,000 yuan/mt on December 31, 2024, representing a 2025 increase of 50.31%. The annual daily average price of Pr-Nd alloy in 2025 was 602,181.07 yuan/mt, compared with the annual daily average of 484,704.55 yuan/mt in 2024, increasing by 117,476.52 yuan/mt, a YoY increase of 24.24%. According to SMM's quotation display: on June 30, the Pr-Nd alloy price was 900,000~910,000 yuan/mt, with an average price of 905,000 yuan/mt, down 0.56% from the previous trading day. Focusing on the Pr-Nd market, on June 30, the increase in Pr-Nd oxide futures prices drove a synchronized rise in suppliers’ spot offer prices, making low-priced oxide hard to find in the market. However, metal enterprises showed a cautious purchasing attitude due to unsatisfactory metal inquiries, resulting in generally moderate overall trading activity. In the metal market, inquiry activity picked up somewhat in the afternoon of the 30th, mainly driven by tender purchases from large magnetic material enterprises. However, most magnetic material enterprises remained on the sidelines, and overall transaction performance was poor. In the short term, given the lack of significant improvement in downstream demand, Pr-Nd product prices are expected to move sideways. Recommended reading:

SMM June 30 News: During the day, the SHFE lead 2608 contract was under pressure overall, opening at 16,134 yuan/mt. After the opening, prices weakened quickly in early trading, and the contract remained in the doldrums throughout the day. In the late session, it dipped to an intraday low of 15,925 yuan/mt and closed at 15,995 yuan/mt, registering a small bearish candlestick, down 235 yuan/mt, or 1.45%. Trading volume continued to expand during the day, with activity picking up significantly in early trading, cooling slightly in the afternoon, and overall volume staying steady. The intraday moving average capped the futures throughout the session, and bulls lacked strong upward momentum. Currently, the primary lead smelting sector is weighed by both tightening ore supply and weakening lead prices. This month, some smelters have already carried out production cuts or halted operations. Secondary lead enterprises are constrained by insufficient supply of scrap battery raw materials, and the number of smelters cutting or halting production continues to rise. The pattern of synchronized weakening in both supply and demand has continued to suppress lead prices. Coupled with the persistent accumulation of social inventory of lead ingots, the current inventory level has reached a new high since June. Looking ahead to the lead price trend in July, the actual recovery of downstream end-use consumption will be a key variable to watch. Data Source Statement: Apart from publicly available information, all other data are processed by SMM based on public information, market communication, and SMM's internal database models, and are for reference only. They do not constitute decision-making advice.

[SMM Tin Morning Update: June Ends with Tin Price Consolidating Around 390,000 Mark; Month-End Position Adjustment Focuses on Contract Rollover]

SMM, June 29: The most-traded SHFE lead 2608 contract opened at 16,190 yuan/mt in intraday trading, moved sideways in the range of 16,150-16,215 yuan/mt during the morning session, softened slightly in the afternoon to a low of 16,135 yuan/mt, then consolidated and rebounded in the closing session, surging to a high of 16,260 yuan/mt before finally closing at 16,230 yuan/mt, posting a small bearish candlestick, down 50 yuan/mt, or 0.31%. This week, an increasing number of secondary lead smelters curtailed or halted production, while primary lead smelters in Henan and Yunnan saw concentrated production resumptions after maintenance, driving operating rates higher WoW; supply was mixed. At month-end, major downstream plants conducted mid-year inventory counts and closed books, causing procurement to stall and orders to be largely deferred to July. Fundamentals provided weak support, while secondary lead smelters held prices firm and held back from selling, showing limited willingness to offer shipments. Secondary refined lead ex-factory prices carried a premium of 0-50 yuan/mt over the SMM #1 lead average price, remaining in a prolonged inversion against primary lead. The sentiment among smelters to hold prices firm helped defend the bottom of lead prices to some extent. In the near term, lead prices are expected to be primarily in the doldrums. Data source statement: All data other than publicly available information is processed by SMM based on public information, market communication, and SMM's internal database models, and is for reference only, not constituting any decision-making advice.

[SMM Tin Futures Commentary: Tin markets in and outside China showed a V-shaped intraday trend, the most-traded SHFE tin contract tested a low of 375,000 and then fluctuated and rebounded]

SMM, June 26 – During the day, the SHFE lead 2608 contract opened at 16,260 yuan/mt. In the morning session, the futures held near the moving average and moved sideways, with the trading pace steady. In the afternoon, funds gradually entered the market, pushing prices to drift higher. Prices hit an intraday high of 16,310 yuan/mt, then pulled back slightly towards the close, finally closing at 16,280 yuan/mt, up 75 yuan/mt on the day, a gain of 0.46%, forming a small bullish candlestick. Open interest declined overall during the day, and trading volume was concentrated during the afternoon rally. Recently, lead prices have been falling continuously, with secondary lead smelters facing deepening losses, leading to reduced willingness to sell and tighter supply in the market. Primary lead producers were actively selling, widening their discounts to facilitate transactions, resulting in a price inversion of up to 100 yuan/mt between secondary and primary lead, which provided a floor for lead prices intermittently. However, at present, with the half-year mark coinciding with month-end settlements, large downstream battery enterprises are focusing on inventory checks and closing accounts, with raw material purchases mostly postponed to July. Weak demand is likely to persist until end-June, keeping lead prices in the doldrums in the short term. Data Disclaimer: All data other than publicly available information are based on public information, market communication, and SMM’s in-house database models, processed by SMM. They are for reference only and do not constitute investment advice.

Today, DCE iron ore futures strengthened in the morning session and dipped slightly in the afternoon today, with the most-traded I2609 contract closing at 744 yuan/mt, up 0.74% from the previous trading session.

DCE iron ore futures strengthened in the morning and saw a slight correction in the afternoon. The most-traded I2609 contract closed at 744 yuan/mt, up 0.74% from the previous trading session. Port spot prices rose 4-9 yuan/mt from the previous day. Ore trader activity was moderate, with steel mills mainly purchasing for restocking. As of now, spot trading volume was mediocre. Currently, fundamentals side, according to an SMM survey, the daily average hot metal output of sampled steel mills this week was 2.4607 million mt, down 4,300 mt WoW. Pig iron production has entered a turning point, and iron ore demand is expected to weaken going forward. News side, market speculation about iron ore supply tightening has interrupted the short-term bearish sentiment. On balance, iron ore prices may trend sideways in the short term, while remaining bearish over the medium and long term. [SMM Steel]

Today, DCE iron ore futures opened weak in the morning session and saw a modest recovery in the afternoon, with the most-traded I2609 contract closing at 738.5 yuan/mt, down 0.54% from the previous trading session. Port spot prices held steady from the previous day.

The DCE iron ore market opened on a weak note this morning, recovering slightly in the afternoon session. The most-traded I2609 contract closed at 738.5 yuan/mt, down 0.54% from the previous trading session. Port spot prices remained stable compared to the previous day. Most traders followed market trends and showed moderate quoting willingness, while steel mills placed few inquiries. As of press time, spot trading volume was moderate. This week, SMM survey estimated the impact from blast furnace maintenance at 1.1633 million mt, up 31,600 mt WoW. Iron ore demand weakened, with hot metal output expected to pull back due to maintenance and environmental protection-driven production restrictions. Additionally, expectations for the ninth round of coke price increases continued to ferment, with bearish sentiment in coal and coke spilling over into iron ore. Coupled with falling oil prices and interest rate hike expectations weighing on overall sentiment in the ferrous metals market, near-term iron ore prices are expected to remain in the doldrums.