Innuovo: A small number of export licenses for permanent magnet products have been approved. The capacity of magnetic material blanks is approximately 13,000 mt.

The investor relations activity record sheet recently announced by Innuovo shows the following:

1. What is the company's current magnetic material capacity? What is the capacity utilization rate? What is the proportion of magnetic material exports? What is the situation in downstream application areas?

Innuovo responded: The company has two magnetic material production sites in Hengdian and Ganzhou. Currently, the capacity for magnetic material blanks is approximately 13,000 mt, with a capacity utilization rate of about 80%. In 2024, the company's sales of finished magnetic materials exceeded 6,200 mt, and the export proportion of the magnetic material business accounted for 20-30%. Currently, the company's magnetic material products are widely used in downstream areas such as the automotive sector, high-end audio, energy-efficient motors, traction machines, and smart consumer electronics.

2. What is the company's situation regarding raw material procurement and inventory?

Innuovo responded: The company has established long-term and good cooperative relationships with major raw material suppliers, including China Rare Earth and China Northern Rare Earth, adopting a procurement model that combines long-term agreements with flexible procurement. The company's production is mainly scheduled based on customer orders, with raw material inventory generally maintained at around two months. The company also prudently adjusts its procurement and inventory strategies based on the trend of raw material prices.

3. What is the company's situation regarding obtaining export licenses?

Innuovo responded: Since the implementation of export control policies, the company has actively taken measures in accordance with relevant requirements, applying for export licenses for permanent magnet products subject to export controls. Currently, a small number of orders have gradually obtained export licenses.

4. What are the main downstream application areas of the company's electromechanical products? What is the export proportion and the main export regions?

Innuovo responded: Currently, the downstream applications of the company's electromechanical products are mainly in the fields of healthy travel, smart home appliances, garden and agricultural machinery, and security systems. The export proportion of motors is 60-70%, mainly exported to regions such as Europe, America, and Asia.

5. What is the development situation of the company's health equipment business? What are the reasons for the good development of the health equipment business?

Innuovo responded: The company's health equipment products are mainly electric wheelchairs and electric scooters, primarily made of iron, aluminum, carbon fiber, magnesium alloy, and other materials, mainly positioned in the mid-to-high-end market. In the domestic market, sales are mainly through online channels such as Tmall, JD.com, Pinduoduo, and Douyin, focusing on building domestic private brands. Overseas, the business is mainly ODM and OEM. Overseas business accounts for about 70-80%.

The development of the company's health equipment business benefits from the company's brand building, the application of new carbon fiber materials, market expansion of related products, economies of scale in production, as well as continuous automation transformation, lean management, and cost optimization.

6. Which aspects of business development will the company's Vietnam site mainly be used for?

Innuovo responded: The company's Vietnam production site primarily serves as a production base for motors, health equipment, and electro-acoustic products.

7. What are the future development plans for the company's electronic acoustics business?

Innuovo responded: The company's electronic acoustics products currently mainly include speakers, as well as end-user audio systems, headphones, and other products. In the future, the company will further expand into in-vehicle high-end audio systems, and continuously expand product categories, target high-end customers, and increase the development of customized products in the consumer electronics sector.

8. What are the company's plans for humanoid robots? Are the products applied in the low-altitude economy sector?

Innuovo responded: The company's motors and reducers are currently used in small quantities in industrial robots. The company will continue to closely monitor and follow the development trends of the robotics industry, focusing more on future commercial mass deployment, and will prepare well in terms of talent, technology, and product reserves. Currently, the company produces a small quantity of electric linear actuators for drone base stations.

9. What is the company's overall strategic layout and positioning?

Innuovo responded: The company adheres to the development strategy of "refining electromechanical products, strengthening magnetic materials, and optimizing downstream applications," with each business forming a collaborative upstream-downstream industry chain. Centered around its current business structure and management framework, the company leverages complementary strengths and resource sharing, with motors as the foundation, and simultaneous advancement of upstream magnetic materials and downstream applications for joint development.

10. What are the company's plans for market capitalization management?

Innuovo responded: The company will continue to focus on its core business, optimize its operating performance, and enhance its intrinsic value and sustainable development capabilities. While ensuring the company's continuous operation and long-term development, the company places great importance on providing reasonable returns to investors and fully utilizes methods such as cash dividends and share repurchases to share the company's development achievements with investors. At the same time, the company actively communicates its business philosophy and investment value through various channels, conducts market capitalization management in compliance with laws and regulations, and better creates value for investors.

Innuovo's Q1 2025 report shows that in the first quarter of 2025, the company achieved a total operating revenue of 840 million yuan, a year-over-year (YoY) decrease of 6.17%; net profit attributable to shareholders was 68.8231 million yuan, up 4.01% YoY; net profit excluding non-recurring gains and losses was 56.8379 million yuan, down 9.63% YoY; net cash flow from operating activities was 103 million yuan, up 234.16% YoY. During the reporting period, Innuovo's basic earnings per share was 0.0627 yuan, and the weighted average return on net assets was 2.53%.

Innuovo's 2024 annual report shows that in 2024, the company achieved an operating revenue of 4.01 billion yuan, up 4.2% YoY; net profit attributable to shareholders was 248 million yuan, up 185.6% YoY. In 2024, facing fierce market competition, the company focused on internal potential tapping, cost-cutting, and efficiency enhancement, while externally expanding markets, diversifying revenue sources, and improving product quality. As a result, it achieved magnetic material sales exceeding 6,200 mt, up 15.12% YoY.

Regarding its core businesses, Innuovo stated in its 2024 annual report: The company is a high-tech enterprise engaged in diversified development, integrating the R&D, production, and sales of NdFeB permanent magnet materials, motor series products, health equipment products, and electro-acoustic products. The company specializes in producing sintered and bonded NdFeB permanent magnet materials and their magnetic components. It currently operates two NdFeB production sites in Hengdian and Ganzhou. Its products are mainly applied in the automotive sector (including NEVs), high-end audio, energy-efficient home appliances, traction machines, servo motors, smart consumer electronics, wind power generation, and other fields. The company's motor series products mainly include micro and special motors such as AC, permanent magnet DC, brushless, stepper, and servo motors, as well as electric linear actuator, parallel shaft, worm gear, planetary gear reducers, harmonic reducers, and various motor drivers. These products are widely used in fields such as healthy travel, garden and agricultural machinery, specialty home appliances, security, and intelligent logistics. Meanwhile, the company extends its downstream applications, currently involving the production and sales of health equipment products such as electric wheelchairs, elderly scooters, and walkers, as well as electro-acoustic products such as loudspeakers.

When discussing the company's future development strategy and operational plans, Innuovo stated in its 2024 annual report: The company will closely adhere to the development strategy of "refining electromechanical products, strengthening magnetic materials, and optimizing downstream applications," continuously exploring market demands, targeting the forefront of the industry, fully leveraging the synergistic advantages of the industry chain, and strengthening its core businesses. It will implement intelligent manufacturing empowerment, based on advanced manufacturing, deepen and solidify digital and intelligent construction, and build smart factories. Driven by its own brands, it will consolidate its technological foundation, establish high-quality leading benchmarks, and promote the upgrading of the company's brand image. It will adapt to the profound changes in the global political and economic landscape, promote the implementation of the "going global" strategy, and accelerate its international layout. It will attach importance to the development and changes in the capital market, enhance its capital operation capabilities, and upgrade its industrial level.

On June 23, Innuovo's share price rose. By the close of trading on the 23rd, Innuovo was up 0.78%, at 10.39 yuan per share.