Jinli permanent magnet plans to issue H shares to take advantage of new energy Dongfeng business development continues to improve

Recently, Jinli permanent Magnet announced that the company intends to issue overseas listed foreign capital shares (H shares) and list on the Hong Kong Stock Exchange, and the company's board of directors authorizes the management of the company to start the preparatory work for the listing of H shares. The purpose of this H-share issue is to speed up the company's international strategy and overseas business layout, enhance the company's overseas financing capacity, and further improve the company's capital strength and comprehensive competitiveness. According to the company's development strategy and operational needs, the company plans to issue overseas listed foreign capital shares (H shares) and be listed on the Stock Exchange of Hong Kong Limited. The company will fulfill its information disclosure obligations in time in accordance with the provisions of relevant laws and regulations and in accordance with the follow-up progress of this H-share listing.

Jinli permanent Magnet is a high-tech enterprise integrating R & D, production and sales of high-performance NdFeB permanent magnet materials, and is a leading supplier of core application materials in the field of new energy and energy saving and environmental protection. The company's products are widely used in new energy vehicles and auto parts, energy-saving frequency conversion air conditioning, wind power generation, 3C, energy-saving elevators, robot and intelligent manufacturing, rail transit and other fields, and has established long-term and stable cooperative relations with leading enterprises at home and abroad in various fields. While taking effective measures to ensure the long-term and stable supply of rare earth raw materials, the company can reduce the impact of price fluctuations of rare earth raw materials on the company's business performance by purchasing rare earth raw materials in advance according to on-hand orders, establishing safety inventory of rare earth raw materials, establishing price adjustment mechanism with customers, optimizing formula and process, and so on.

In addition, Jinli permanent Magnet said on the investor interactive platform that at present, the company has technical development and sample delivery of magnetic products for rail transit applications, including magnetic levitation.

Recently, with the continuous improvement of the new energy vehicle plate, Jinli permanent magnet has benefited. At present, the company is in good condition, with sufficient orders on hand and full utilization of production capacity. In the first quarter of 2021, the company's operating income in the field of new energy vehicles and auto parts was about 126 million yuan, an increase of 66.78 percent over the same period last year. The company is a magnet supplier of drive motors for new energy vehicles such as Tesla, BYD and United Automotive Electronics. SAIC, Lulai and ideal Automobile are the end users of the company, and the company has been a magnet supplier of auto parts for Bosch Group for many years. On September 21, 2020, the company and Tesla signed the parts Purchasing Agreement, which lasts from January 1, 2021 to December 31, 2023. Tesla will purchase NdFeB magnetic steel products from the company, which is the first-class supplier of Tesla. At present, the company has supplied Tesla according to the contract order. In addition, the MEB factory of Volkswagen Anhui Electric vehicle has been officially built, and Jinli permanent Magnet is a supplier of rare earth permanent magnet materials for the MEB pure electric platform project of Volkswagen Group.

Jinli permanent Magnet said in a survey that the company's current blank production capacity has reached 15000 tons. The company plans to increase the investment project Ganzhou "annual production of 3000 tons of new energy vehicles and 3C field high-end magnetic materials project" has been smoothly started, the project is expected to be completed and put into production this year. At the same time, the company has started construction of the "High performance rare Earth permanent Magnet material Base Project" in Baotou. After reaching production, the project will form an annual production capacity of 8000 tons of high-end magnetic materials. The company's performance has continued to grow in recent years, with a compound annual growth rate of 38.41% from 2017 to 2020. Combined with the future market demand, and the demand of the "carbon neutralization" cause, the company formulates the development plan from 2021 to 2025: the company plans to have a production capacity of 23000 tons of high-performance rare earth permanent magnet materials in 2022. Gradually allocate resources and capacity, build Ganzhou, Baotou, Ningbo production base; plan to build 40000 tons of high-performance rare earth permanent magnet production capacity by 2025.

With the continuous promotion of carbon neutralization, Jinli permanent magnet related business continues to improve, and it is expected that there is still a lot of room for growth in the future.