JL MAG Rare-Earth: Has successively obtained export licenses issued by national authorities. Export regions include the US, Europe, and Southeast Asia, etc.

According to the record of a survey with specific targets announced by JL MAG Rare-Earth on June 26:

1. Please briefly introduce the company's operating situation.

JL MAG Rare-Earth responded: In Q1 2025, the company's management actively explored the market and simultaneously expanded capacity, maintaining stable operations. The company continued to focus on the fields of new energy and energy-saving environmental protection, concentrating on core application areas such as NEVs and automotive parts, energy-efficient variable frequency air conditioners, wind power generation, robots and industrial servo motors, 3C products, and low-altitude aircraft. It also actively collaborated with internationally renowned technology companies in the R&D and capacity construction of motor rotors for embodied robots, with small-batch deliveries gradually being made.

In Q1 2025, the company achieved operating revenue of 1.754 billion yuan, up 14.19% YoY, and a net profit attributable to shareholders of publicly listed firms of 161 million yuan, up 57.85% YoY. The net profit attributable to shareholders of publicly listed firms after deducting non-recurring gains and losses was 106 million yuan, up 331.10% YoY.

For the company's semi-annual operating situation, please refer to the "2025 Semi-Annual Report" to be released by the company.

2. Please introduce the export license situation.

JL MAG Rare-Earth responded: Recently, when answering reporters' questions about export control measures for medium-heavy rare earth, the spokesperson of the Ministry of Commerce mentioned: "As a responsible major country, China fully considers the reasonable demands and concerns of various countries in the civilian field, reviews export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications in accordance with the law, and will continue to strengthen the approval work for compliant applications."

After the introduction of export control measures for medium-heavy rare earth-related items, the company has carried out export declaration work in accordance with relevant national regulations andhas successively obtained export licenses issued by national authorities, with export regions including the US, Europe, and Southeast Asia.

In Q1 2025, the company's export sales revenue was 312 million yuan, accounting for 17.76% of operating revenue. Among this, export sales revenue to the US was 122 million yuan, accounting for 6.94% of operating revenue, and the company does not involve in military-related businesses.

The company will continue to strictly comply with national laws, regulations, and relevant policies. For products involving categories in the export control announcement, the company will apply to relevant authorities in accordance with regulations and conduct exports after obtaining licenses.

3. Please introduce the progress of the company's current share repurchase plan.

JL MAG Rare-Earth responded: Based on confidence in the company's future development prospects and recognition of the company's value, the company's board of directors resolved to use the company's own funds or self-raised funds (such as special loans for share repurchases) to repurchase the company's A shares through centralized bidding transactions. Among this, self-raised funds (such as special loans for share repurchases) account for no more than 90% of the total repurchase funds. The total amount of funds for share repurchases is no less than 100 million yuan (inclusive) and no more than 200 million yuan (inclusive). The shares repurchased this time will all be used for cancellation and reduction of registered capital in accordance with the law. The share repurchase plan for Company A's A-shares has been approved at the 2024 annual general meeting of shareholders, and preparatory procedures such as securities account opening have been completed. The company will promptly disclose repurchase progress in accordance with relevant regulations.

4. What is the progress of the company's Baotou Phase III project?

JL MAG Rare-Earth responded: In January 2025, responding to national policies on building "two rare earth bases" and anticipating market demand from NEVs, inverter air conditioners, and embodied robots, the board approved the investment in a "20,000 mt high-performance rare earth permanent magnets green smart manufacturing project." The company aims to achieve 60,000 mt high-performance rare earth permanent magnets capacity by 2027. The project is currently progressing as planned.

5. Please update on the company's embodied robots and low-altitude aircraft businesses.

JL MAG Rare-Earth responded: The company is actively collaborating with world-renowned tech firms on R&D and capacity building for embodied robot motor rotors, with small-batch deliveries underway. Dedicated facilities, equipment, and teams have been established to support initial mass production capabilities. Future R&D investments in this sector will continue to enhance industrialization readiness. Additionally, small-batch deliveries have commenced in the low-altitude aircraft sector.

JL MAG Rare-Earth's Q1 report showed revenue of 1.754 billion yuan (up 14.19% YoY), net profit attributable to shareholders of 161 million yuan (up 57.85% YoY), and adjusted net profit of 106 million yuan (up 331.10% YoY).

The Q1 report highlights JL MAG Rare-Earth as a global leader in rare earth permanent magnets, specializing in R&D, production, and sales of high-performance NdFeB permanent magnet materials, magnetic components, embodied robot motor rotors, and rare earth recycling. 1. In Q1 2025, new capacity was further utilized with a capacity utilization rate exceeding 90%. Production reached approximately 8,770 mt of magnetic material blanks and 6,600 mt of finished products, with sales of 6,024 mt (all up over 40% YoY). 2. As a top supplier for NEVs and energy-efficient inverter air conditioners, Q1 revenue from these segments totaled 882 million yuan (50.28% of total revenue) and 513 million yuan (29.25%), respectively. Additionally, export sales revenue for this reporting period was 312 million yuan, accounting for 17.76% of total operating revenue. Among this, export sales revenue to the US was 122 million yuan, accounting for 6.94% of total operating revenue.

JL MAG Rare-Earth's performance in Q1 showed significant growth. Reviewing the price trend of Pr-Nd alloy, the raw material for rare earth permanent magnets, in Q1 of this year, we can see that the average price of Pr-Nd alloy on March 31, 2025, was 543,000.00 yuan/mt. Compared with the average price of 489,000 yuan/mt on December 31, 2024, the average price increased by 54,000 yuan/mt, with a growth rate of 11.04%. The daily average price of Pr-Nd alloy in Q1 of this year was 528,017.54 yuan/mt. Compared with the daily average price of 472,051.72 yuan/mt in Q1 of 2024, it increased by 55,965.82 yuan/mt, with a growth rate of 11.86%.

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According to SMM quotes, on June 27, the price of Pr-Nd alloy dropped to 542,000-546,000 yuan/mt, with an average price of 544,000 yuan/mt, down 0.18% from the previous trading day. Compared with the average price of 489,000 yuan/mt on December 31, 2024, it increased by 55,000 yuan/mt, with a growth rate of 11.25%. Compared with the average price of 543,000 yuan/mt on March 31, it rose slightly by 1,000 yuan/mt, with a growth rate of 0.18%. Currently, the rare earth market price has shown a slight decline, mainly due to the impact of some suppliers reducing prices and selling off inventory to cash in as the month-end approaches, resulting in a decrease in market transaction prices. However, due to the difficulty in purchasing low-priced ore raw materials by separation plants, most market quotes remain firm. Meanwhile, influenced by the price reduction of oxides in the metal market, some suppliers have also tentatively reduced their quotes. However, recent tenders for Pr-Nd alloy by large magnetic material producers have provided some support for metal prices. Overall, although the market price has declined due to some traders reducing prices and selling off inventory, the support from raw material costs and tenders by large magnetic material producers has resulted in an overall slight downward trend in market prices. It is expected that in the short term, rare earth prices will remain relatively stable without significant volatility.