Yi'an Technology: The rise in raw material prices has a certain impact on production costs, and magnesium alloy product revenue in 2025 was about 617 million.

On July 31, the stock price of Eontec rose. As of the close on the 31st, Eontec was up 2.64% to 12.83 yuan per share.

Investor relations management information announced by Eontec on July 30, 2026, shows:

1. What is the business structure of the company’s main revenue?

Eontec responded: The magnesium-aluminum alloy business is the company’s core revenue source. In 2025, the company’s revenue from aluminum alloy products was approximately 784 million yuan, and revenue from magnesium alloy products was approximately 617 million yuan.

2. What are the gross margins for magnesium alloy products and aluminum alloy products?

Eontec responded: In 2025, the gross margin for the company’s magnesium products was 14.19%, and that for aluminum products was 4.84%. Precisely because of the high margin of magnesium products, and as domestic OEMs vigorously promote the industrial upgrade trend of "replacing aluminum with magnesium," the company, relying on its technical accumulation and capacity advantages in the magnesium alloy materials field, will actively seize market opportunities, deeply cultivate application fields such as NEVs and two-wheelers, and make every effort to expand magnesium alloy business orders, which will also become a new performance growth driver for the company.

3. What is the client composition of the company’s main business?

Eontec responded: The auto parts business remains the core pillar of the company’s revenue. In 2025, this business achieved revenue of 1,186.6104 million yuan. The main clients for the auto parts business include Huawei, BYD, BOSCH, Aumovio, Thyssenkrupp, Harman, Garmin, ZF, Faurecia, Alpine, Desay SV, Skyworth Auto, XPeng Heitec, and E&E Electronics.

4. Has the rise in aluminum raw material prices this year affected the company?

Eontec responded: The rise in raw material prices has had a certain impact on the company’s production costs. The company has agreements with clients to adjust prices within a specified % change range and within a stipulated timeframe. Meanwhile, the company has coordinated and deployed multiple cost-reduction and efficiency-enhancement measures to minimize the impact of raw material price increases on the company’s profitability and ensure operational stability.

5. What are the current application scenarios for the company’s amorphous alloys?

Eontec responded: The application fields of the company’s amorphous alloys mainly cover four major segments: the first segment is consumer electronics structural parts (including hinges, wearable devices, and precision structural parts for mobile phones, etc.), the second segment is NEV parts, the third segment is medical device structural parts, and the fourth segment is musical and sports equipment structural parts.

6. What is the application status of the company’s amorphous alloys in foldable screen phones?

Eontec responded: Since 2019, the company has jointly conducted R&D on hinge structural parts for foldable screen phones with clients. Currently, the spindle structural parts produced by the company have been applied to hinge products in multiple Android-based foldable screen phones. Leveraging long-term technical expertise, the company has mastered the core manufacturing processes for amorphous alloy hinge structural components, possesses large-scale production capacity and reliable delivery capabilities, and has become an important partner for hinge shaft structural components.

7. How does the company view the future development prospects of amorphous alloys?

Yi'an Technology responded: The company firmly believes in the broad market application space and long-term development potential of amorphous alloy materials, and will continue to increase resource investment to promote technological iteration and scale upgrading in the amorphous alloy industry, fully advance the expansion planning and construction of the Yihao Metal project, and further consolidate the company's core competitive advantage in the amorphous alloy sector.

8. Are international major clients potential cooperation targets for the company?

Yi'an Technology responded: The company will accurately assess industry development trends, seize industry opportunities, continuously strengthen its core capabilities, optimize its business layout, and create favorable conditions for expanding more high-quality clients and deepening industrial cooperation.

In addition, Yi'an Technology announced on July 30 that the company's degradable magnesium interface screw project has completed the enrollment of all 130 subjects according to the clinical trial protocol, with over 70 cases having completed one-year postoperative follow-up. Imaging and clinical functional assessments show stable fixation results. Subsequently, the company will submit a product registration application, and upon approval, it will be marketed and sold, which is expected to fill the domestic market gap for degradable metal orthopedic implant consumables.

Regarding the impact on the company and risk warning: Yi'an Technology announced: After obtaining the clinical trial summary report for the degradable magnesium interface screw, the company will formally submit a registration application for the product to the National Medical Products Administration (NMPA). Once the review and approval are passed and product registration is completed, production and market sales can commence. After the product is launched, it will further enrich the company's high-end medical new material product line, fill the domestic market gap for degradable metal orthopedic implant consumables, optimize traditional orthopedic internal fixation treatment plans, reduce the burden on patients undergoing secondary surgeries due to healing failure, and play a positive role in promoting the high-quality development of China's medical device industry and the upgrading of clinical orthopedic diagnosis and treatment. The timing of obtaining the clinical trial summary report for the degradable magnesium interface screw product, whether it can be approved for registration by the NMPA, and the time of market approval are all subject to uncertainty. The actual sales performance of the aforementioned product after production may be affected by factors such as future market promotion effectiveness and changes in the market environment, and it is currently impossible to predict the impact of the aforementioned product on the company's future operating performance. The company will actively promote the subsequent progress of the degradable magnesium interface screw project and fulfill its information disclosure obligations in a timely manner. Investors are advised to make prudent decisions and pay attention to investment risks.

The 2025 annual report released by Yi'an Technology shows that 2025 was a year when the macroeconomy moved forward under pressure and industry competition grew increasingly fierce. The leadership team centered on the company's chairman consistently maintained strategic resolve, calmly responded to multiple risks and challenges including market fluctuations, and stayed focused on the main theme of high-quality development. They concentrated on core businesses through intensive efforts, strengthened innovation-driven development and lean management, and implemented precise measures to continuously enhance product competitiveness and customer stickiness. By leveraging process reengineering and digital empowerment, they improved operational efficiency and resource allocation. They also strictly controlled costs and prevented risks to ensure stable capital chains and improved operating quality. With the united efforts and collaborative hard work of all employees, the company's core competitiveness was steadily strengthened, and the foundation for sustainable development was continuously consolidated, laying a solid groundwork for high-quality development. In 2025, the company achieved operating revenue of 1.726396 billion yuan, a year-on-year increase of 4.47%; net profit attributable to shareholders of the listed company was -17.6373 million yuan, a year-on-year decrease of 1,854.10%.

Regarding the company's main business, Yi'an Technology stated: The company is a national high-tech enterprise specializing in integrated R&D, design, production, and sales of new materials. As a leading new materials company in China, it possesses a complete integrated industry chain covering material R&D, precision mold development, precision die casting, CNC precision machining, and surface treatment. Through technological innovation, it empowers its products and provides clients with one-stop industry chain supporting services and solutions. Its materials cover amorphous alloys, magnesium alloys, aluminum alloys, medical materials, and polymer materials, which can be applied in NEV, consumer electronics, medical products, 5G communications, intelligent manufacturing, and other fields. The products are primarily intermediate products, including NEV parts, amorphous alloy products, structural components for consumer electronics (such as laptops), industrial components, and precision molds, all of which are encouraged by national industrial policies. The company's products mainly adopt new material formulations and efficient, environmentally friendly die-casting and post-treatment processes, offering high technological content and added value, with the technical level of its key products at the forefront of the industry. Amorphous alloys, biodegradable medical magnesium, and NEV products are the company's main development directions. After more than three decades of development, the company has amassed deep technological expertise and brand advantages, forming a development pattern that relies on famous clients in China and overseas, is underpinned by key core technologies, and is oriented toward high-end, sophisticated new material products. During the reporting period, the company's main business did not undergo significant changes, and its main business revenue was primarily derived from the sales of automotive parts, amorphous alloy products, structural components for consumer electronics such as laptops, silicone rubber, precision molds, and similar products.

Regarding the main business plan for 2026, Yian Technology mentioned in its 2025 annual report: Looking ahead to 2026, the company will firmly uphold the safety baseline and quality-efficiency red line, and steadily advance the established strategic deployments. Driven by technological innovation and guided by market demand, the company will achieve a comprehensive improvement in operational quality and efficiency through measures such as technological breakthroughs, product conversion, market penetration, internal control optimization, and talent empowerment, propelling the company toward steady and sustainable development. The company will always adhere to being investor-oriented, committed to creating sustainable value returns for investors through outstanding operating performance and transparent governance.

Looking back at the price trend of SMM AZ91D magnesium alloy in 2025, it can be seen that the average price on December 31, 2025, was 17,950 yuan/mt, up 150 yuan/mt from 17,800 yuan/mt on December 31, 2024, an increase of 0.84%. The daily average price of SMM AZ91D magnesium alloy in 2025 was 18,141.77 yuan/mt, down 1,674.35 yuan/mt from 19,816.12 yuan/mt in 2024, a decrease of 8.45%.

According to SMM quotes, the mainstream tax-included EXW prices for Chinese magnesium alloy this week were 17,950-18,250 yuan/mt. The magnesium alloy market followed the magnesium ingot market this week, showing a pattern of strength first and then weakness. Affected by the off-season for die-casting, market orders showed a shrinking trend. As a result, the operating rates of magnesium alloy smelters were significantly reduced. Specifically, major magnesium alloy smelters successively implemented their summer maintenance plans, and the operating rates of major magnesium alloy enterprises slightly decreased. Affected by the cliff-like decline in magnesium alloy demand from two-wheeled electric vehicles, small and medium-sized enterprises stopped production for maintenance, causing the market operating rate to be cut in half. Overall, the current magnesium alloy market presents a pattern of weak supply and demand, and magnesium alloy processing fees are expected to remain under pressure.