SHANGHAI, Mar 23 (SMM)— JL MAG Rare-Earth released its 2020 annual report on March 18, stating that the company achieved operating income of 2.42 billion yuan in 2020, a year-on-year increase of 42.58%, and the net profit attributable to shareholders of listed companies was 244 million yuan, a year-on-year increase of 55.84%.
In 2020, the company's revenue from new energy vehicles and auto parts was 326 million yuan, a year-on-year increase of 48.07%. The delivered magnetic steel products for NEV drive motor can be assembled with about 450,000 new energy passenger vehicles. The revenue from energy-saving inverter air conditioners was 878 million yuan, up 107.99% year on year, and the delivered magnetic steel products in this field could be applied to about 41 million air-conditioning compressors. The revenue from the wind power generation was 879 million yuan, a year-on-year increase of 2.78%, and the delivered magnetic steel could be applied to the fan installation capacity of 10GW.
Cai Baogui, chairman and general manager of JL MAG, said that various drive motors consume about 60% of electric energy. The rare earth permanent magnet motors can significantly save energy and reduce emissions compared with traditional motors.
JL MAG has formulated a development plan from 2021 to 2025 amid the market demand and the need of carbon peaking and neutrality. Based on the production capacity of 23,000 mt high-performance rare earth permanent magnet materials, the company will gradually allocate resources and capabilities to build production bases in Ganzhou, Baotou, and Ningbo in 2022. It plans to build a production capacity of 40,000 mt of high-performance rare earth permanent magnet materials by 2025.
The company has signed long-term agreements with important rare earth raw material suppliers, including China Southern Rare Earth Group and China Northern Rare Earth Group, guarantee the stable supply of rare earth raw materials. At the same time, the company can reduce the impact of price fluctuations of rare earth raw materials on the company's performance by purchasing raw materials in advance for existing orders, establishing a safety stock of raw materials, setting a price adjustment mechanism with customers, and optimising formulas and technologies.
JL MAG Rare-Earth, which is listed on the Shenzhen Stock Exchange since September 21, 2018, is a high-tech enterprise integrating R&D, production and sales of high-performance NdFeB permanent magnet materials. It is also a supplier of core application materials in the field of new energy, energy conservation and environmental protection. Its products are used in wind power generation, new energy vehicles and auto parts, energy-saving inverter air conditioners, energy-saving elevators, robots, and intelligent manufacturing.
Demand for magnetic materials was growing rapidly in 2020, which has become the fundamental driving force for the growth of rare earth products. Downstream demand continues to expand, and the gap between the supply and demand may extend throughout 2021. In 2021, the first batch of the quotas for rare earth mining, smelting and separation have increased significantly, which also reflects the strong downstream demand. As prices of rare earth products increase, the contradiction between supply and demand is more tense. The growth in downstream industries of new energy vehicles, wind power, and inverter air conditioners will keep driving up the demand for rare earth, and the rare earth prices are likely to rise.
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