Xingyuan Zhuomei: The magnesium content per vehicle is expected to increase continuously in the future. In H1, the new projects undertaken mainly included parts for automotive display systems, etc.

The records of a survey conducted by multiple institutions, recently announced by Xingyuan Zhuomei, show the following:

1. What are the main application directions of the company's products?

Xingyuan Zhuomei responded: The company's main magnesium alloy die-casting products include automotive display system parts, NEV powertrain parts, automotive seat armrest structural components, automotive center console frames, automotive lamp heat dissipation brackets, etc., primarily automotive parts.

2. What is the market size and growth trend of magnesium alloys, and what are the main driving factors?

Xingyuan Zhuomei responded: China is one of the countries with the most abundant magnesium resources globally. In 2024, global primary magnesium production reached 1.12 million mt, up 12% YoY, with China's primary magnesium production at 1.0258 million mt, up 24.73% YoY; magnesium alloy production reached 396,800 mt, up 14.95% YoY. The automotive industry, especially NEVs, has a high demand for lightweighting to improve driving range and energy efficiency. Magnesium alloys, with their low density and high specific strength, make them ideal materials for automotive lightweighting, used in manufacturing powertrain casings, instrument panel brackets, and other components. The target for magnesium usage per vehicle is expected to increase in the future.

3. What are the performance differences between magnesium alloy products and aluminum alloy products?

Xingyuan Zhuomei responded: As the automotive industry's requirements for energy conservation, emission reduction, and improved fuel efficiency continue to rise, automotive lightweighting has become a development trend. Magnesium alloy has a density approximately two-thirds that of aluminum alloy and one-fourth that of steel, effectively reducing vehicle weight when used. Magnesium alloy also possesses good damping performance and electromagnetic shielding performance, meeting customers' special performance needs in areas such as vibration and noise reduction, and electromagnetic interference resistance.

4. What are the company's innovations and unique features in magnesium alloy die-casting technology?

Xingyuan Zhuomei responded: The company provides customers with integrated services including product design optimization, mold manufacturing, die-casting and precision machining production, and surface treatment, continuously improving customer satisfaction, cultivating high-quality customer resources, gaining competitive advantages in market segments, continuously developing innovative R&D capabilities for new application areas, and achieving a leading position in the industry through a complete industry chain layout.

5. In the future, will the company make a large-scale shift towards semi-solid die-casting in terms of die-casting processes?

Xingyuan Zhuomei responded: Semi-solid forming is a new and advanced process method. Compared with traditional liquid forming, it has advantages such as lower forming temperature, long mold life, improved production conditions and environment, refined grain structure, reduced porosity, shrinkage cavities, and improved tissue density. High-pressure casting offers lower costs and mature equipment. In the future, the company will utilize both processes simultaneously, leveraging their respective advantages to achieve product diversification and enhance market competitiveness.

6. What is the current development status of the company's NEV powertrain projects?

Xingyuan Zhuomei responded: Please stay tuned for subsequent announcements regarding the company's major project milestones.

7. What is the product structure classification of the projects the company has undertaken this year?

Xingyuan Zhuomei responded: The new projects undertaken by the company in H1 mainly include NEV powertrain parts and automotive display system components.

8. What is the expected product structure of the Fenghua company?

Xingyuan Zhuomei responded: The current product structure planned for the Fenghua factory primarily focuses on large magnesium alloy precision molding parts for automotive use.

On May 21, Xingyuan Zhuomei's stock price declined. As of 9:53 AM on May 21, Xingyuan Zhuomei fell by 1.48%, trading at 50.09 yuan per share.

Xingyuan Zhuomei recently disclosed its Q1 2025 report, showing that the company achieved an operating revenue of 88.3378 million yuan in Q1, up 7.28% YoY, while net profit attributable to the parent company was 16.9395 million yuan, down 4.08% YoY.

Xingyuan Zhuomei's previously released 2024 annual report indicated that in 2024, the company achieved an operating revenue of 408.6044 million yuan, an increase of 16.01% compared to the previous year. Net profit attributable to the parent company's shareholders was 80.3311 million yuan, up 0.31% YoY, and net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses was 74.0161 million yuan, up 10.35% YoY. Key operating indicators reached new highs, laying a solid material foundation for high-quality development. Looking ahead, we will continue to uphold the spirit of innovation, constantly enhance our capabilities, contribute more to the global automotive industry, and help elevate the influence of China's automotive industry on the international stage.

In its 2024 annual report, Xingyuan Zhuomei stated that in 2024, the company was primarily engaged in the R&D, production, and sales of magnesium alloy and aluminum alloy precision die-casting products and related die-casting molds. The company's main die-casting products include automotive display system components, NEV powertrain components, automotive center console components, automotive seat components, automotive lamp components, high-cleanliness autonomous driving module components, and other automotive die-casting parts, as well as e-bike functional and structural components, garden machinery parts, and other non-automotive die-casting parts. The company's products are ultimately applied to well-known domestic and overseas car models from brands such as BMW, Audi, Porsche, Zhiji, NIO, Great Wall, Chery, and Zeekr.

The annual report of Xingyuan Zhuomei shows that the company's total operating revenue for 2024 reached 409 million yuan, with magnesium alloy die-casting parts contributing 284 million yuan, accounting for 69.40%; aluminum alloy die-casting parts contributing 102 million yuan, accounting for 24.91%; molds and other supplementary businesses contributed 19.4855 million yuan and 3.7651 million yuan, respectively.

The research report from Shanxi Securities on Xingyuan Zhuomei pointed out: the magnesium alloy business has seen high growth, with new energy structural components performing prominently. The overseas layout has shown initial results, and diversified market expansion has opened up growth space. Profitability has improved, and operations have gradually improved. Relying on core technology to bind customers, the company is actively exploring new applications in the magnesium alloy field. In the short term, with the smooth commissioning of new capacity and new projects gradually entering the mass production stage, the company's performance is expected to continue to grow; in the medium and long term, under the trend of automotive lightweighting, the company is expected to capture more market share with magnesium alloy products, and may also leverage its existing technological advantages to expand into new fields such as robotics, opening up greater growth space. Risk warnings: new project mass production may fall short of expectations; key customer sales may fall short of expectations; competition in the magnesium alloy parts product industry may intensify; new business expansion may fall short of expectations.