Jintian Co., Ltd.: Currently, the company has passed the certification of downstream motor customers and has achieved mass supply of high-voltage flat wires for Xiaomi's automobiles.

An investor asked on the investor interaction platform: "The company mentioned last year that it had supplied electromagnetic rectangular wires to Xiaomi. Are Xiaomi's popular car model SU7 and the newly launched Xiaomi Yu7 using the company's products?" On June 27, Jintian Stock responded on the investor interaction platform, "The company continues to make efforts in the field of new energy electromagnetic rectangular wire motors, actively seizing the rapidly growing demand for rectangular wires in both domestic and overseas markets. The number of designated projects for the company's new energy electromagnetic rectangular wires and their high-voltage platform projects continues to grow, with 800V high-voltage platform electromagnetic rectangular wires having achieved mass production in multiple projects. Currently, the company has passed downstream motor customer certification and realized mass supply of high-voltage rectangular wires to Xiaomi Motors. The impact of the above cooperation on the company's operating performance is currently relatively small. Investors are advised to invest rationally."

The investor relations activity record sheet previously announced by Jintian Stock (from May 21 to 23, 2025) shows:

1. The company's industry position and competitive advantages.

Jintian Stock responded: "The company has been focusing on the copper processing industry for 39 years and is one of the largest and most complete copper and copper alloy material manufacturing enterprises in China in terms of industry chain. From 2021 to 2024, the company's copper and copper product production had a compound annual growth rate of 8%. By 2024, the company achieved a total production of 1.9162 million mt of copper and copper alloy materials, accounting for 9% of China's comprehensive copper processing material production, maintaining its leading position in the industry and becoming a major product standard setter in the industry. The company is one of the few domestic enterprises capable of meeting customers' one-stop procurement needs for multiple categories of copper products, including rods, tubes, plates, strips, and wires. Its products are mainly applied in fields such as NEVs, clean energy, communication electronics, power and electrical, chip semiconductors, and AI heat dissipation. The company has competitive advantages in multiple aspects, including strategy and culture, customer resources, scientific and technological R&D, intelligent manufacturing, lean management, and low-carbon environmental protection."

2. The company's business expansion in the NEV field.

Jintian Stock responded: "In the NEV field, the company's rare earth permanent magnets, electromagnetic wires, high-precision copper strips, copper busbars, alloy rods and wires, and other products have entered the supplier systems of benchmark customers such as BYD, Geely, CATL, Bosch, Inovance, Delta, BorgWarner, and Seres, and are widely used in modules such as the three electric systems of NEVs. In 2024, the company's copper product sales in the NEV field (including IGBT) increased by 13% YoY. Leveraging its market share and technological reserve advantages, the company has become a core supplier of copper and copper alloy products in the global new energy field."

3. The company's application in the chip computing power field.

Jintian Stock responded: The development of the AI industry has significantly increased the demand for chip computing power. Copper, with its excellent electrical and thermal conductivity, has become a core material for advanced chip interconnection and heat dissipation, accelerating the transformation of copper-based materials towards high added value. In 2024, the company's high-conductivity precision copper busbar products have entered the supply chain systems of industry leaders in fields such as high-speed copper cable-adapted components and IGBTs. High-precision copper alloy strip materials have achieved large-scale applications in chip lead frames. High-precision profiled oxygen-free copper busbar products, relying on their high thermal conductivity, excellent welding performance, and processing performance, have been successfully mass-produced in 3DVC new-type AI heat dissipation structures. The company has established strategic cooperation with multiple first-tier heat dissipation module enterprises globally and applied them in multiple top-tier GPU heat dissipation solutions. The company's self-developed copper heat pipes, liquid-cooled copper pipes, and other products have been successfully introduced into the computing power server products of multiple top-tier enterprises. In addition, the company is actively deploying high-speed copper cables and developing new-type highly conductive, low-impedance copper wires to meet the demand for next-generation 800G transmission rate connection cables.

4. Development and layout of the company's overseas business.

Jintian Stock responded: The company adheres to a global perspective and deeply promotes its internationalization strategy. During the reporting period, the company established new subsidiaries in Germany, Thailand, and other places. Meanwhile, by building a new production site in Thailand and expanding the production line scale of its Vietnam base, the company expanded the synergistic advantages of overseas bases to better meet the one-stop copper semis procurement needs of global customers. The company's "80,000 mt precision copper pipe production project in Thailand" is progressing smoothly. Projects such as the electromagnetic flat wire project for NEVs in Vietnam and the copper pipe & tube fitting project in Vietnam have commenced mass production. In 2024, the company's overseas main business income was 12.161 billion yuan, up 26.75% YoY, accounting for 10.76% of the company's main business income. The company's overseas sales of copper semis products such as copper pipes, electromagnetic wires, and copper strips reached 169,900 mt, up 20.58% YoY. The steady growth of overseas business is conducive to accelerating the company's product and customer upgrades on a global scale.

5. Capacity and business situation of the company's rare earth permanent magnet products.

Jintian Stock responded: The company has been deploying magnetic material businesses since 2001. After more than 20 years of in-depth development, it has now become one of the enterprises with relatively high technology and a complete product system in the domestic peer industry. Currently, the company has two magnetic material production sites in Ningbo and Baotou. Phase I of the Baotou base has been put into operation, increasing the company's annual capacity of rare earth permanent magnet materials by 4,000 mt on the original basis. The company's rare earth permanent magnet products are widely used in multiple high-end fields such as NEVs, wind power generation, high-efficiency energy-saving motors, robots, consumer electronics, and medical devices.

6. Industry Position and Product Applications in the Secondary Copper Sector

Jintian Stock responded: The company has become one of the enterprises with the largest utilization volume and highest comprehensive utilization rate of secondary copper in China, and is also one of the few companies globally that can achieve a closed-loop for the entire industry chain of secondary copper. The company's self-developed low-carbon secondary copper products significantly reduce carbon emissions while ensuring product performance, and have passed GRS and SCS recycling certifications, providing downstream customers in the industry chain with high-quality, complete one-stop green copper semis solutions. Currently, the company's secondary copper products cover copper strips, copper wires, magnet wires, copper pipes & tubes, etc., and are widely used in high-end consumer electronics, automotive industries, power and electrical sectors, etc. They have achieved mass production in products of multiple world-renowned customers, forming a new performance-driving factor represented by "green and low-carbon secondary copper products."

Jintian Stock previously disclosed its Q1 2025 report, showing that in the first quarter of this year, the company achieved a total operating revenue of 27.285 billion yuan, up 9.89% YoY; and a net profit attributable to shareholders of 151 million yuan, up 38.55% YoY.

Regarding the reasons for the increase in net profit, Jintian Stock stated: It was mainly due to the upgrade of the company's product customers and the continuous optimization of technical management.

Jintian Stock disclosed its 2024 annual report on April 15, showing that in 2024, the company achieved a total operating revenue of 124.161 billion yuan, up 12.36% YoY; a net profit attributable to shareholders of 462 million yuan, down 12.29% YoY; and a net profit excluding non-recurring items of 339 million yuan, down 10.14% YoY.

In its 2024 annual report, Jintian Stock introduced: In 2024, the company maintained its strategic focus, fully promoted the construction of new capacity projects, actively explored domestic and overseas markets, continuously deepened customer cooperation and product applications in high-end industries and emerging fields, and solidly and effectively advanced various operational management tasks. During the reporting period, the company achieved a main business income of 112.99 billion yuan, up 11.75% YoY;The total production of copper and copper alloy materials for the whole year was 1.9162 million mt, and the total sales volume was 1.8144 million mt, with the leading scale advantage continuing to be consolidated.

In its 2024 annual report, Jintian Stock also announced its 2025 business plan: In 2025, the company will focus on the requirements of high-quality development, guided by the strategic goal of becoming a "world-class copper products and advanced materials base," and formulate targeted segmented strategic goals based on market demand changes and the company's actual situation. With an international perspective and philosophy, the company will introduce advanced technologies, enhance organizational capabilities, comprehensively improve management levels in procurement, production, sales, etc., strive to build a modern industrial system, and firmly move towards the company's strategic goals. Meanwhile, the company has long adhered to an international strategic layout, serving global customers, leveraging high-quality global resources, and driving the company to lead in product, talent, management, and service, providing professional solutions and services to customers. The company will continue to prioritize technological innovation, accelerate the achievement of high-level technological self-reliance and strength, accelerate the development of new quality productive forces, open up new areas and tracks for development, cultivate new growth drivers, enhance new competitive advantages, continue to deeply cultivate the NEV and chip semiconductor industries, and consolidate its industry influence. It will rapidly expand into the AI heat dissipation industry, achieve large-scale mass production, and create growth engines. It will focus on the R&D of robot products to form future competitiveness. It will continue to promote the innovation of the company's low-carbon recycled products and build a low-carbon core competitiveness.

The research report by Guosen Securities on Jintian Stock commented that the unit gross profit of copper products increased. In 2024, with the rebound of the copper processing industry from the bottom and the company's active adjustment of product and customer structures, the gross profit of copper products improved. In 2024, the gross profit of copper busbars was 551 yuan/mt, up 80 yuan/mt YoY; the gross profit of other copper products was 2,273 yuan/mt, up 287 yuan/mt YoY. Since hitting the bottom in 2022, the company's copper product gross profit has rebounded for two consecutive years. Affected by market factors, the company's rare earth permanent magnet product profitability declined. In 2024, the unit gross profit of rare earth permanent magnet products was 21,000 yuan/mt, down 20,000 yuan/mt YoY, and also significantly lower than the average of 70,000 yuan/mt since 2017. The company gradually reduced the proportion of low-margin products: in 2024, the company's copper product sales were 1.814 million mt, down 41,000 mt YoY; among them, sales of low-margin copper busbars decreased by 60,000 mt, while sales of other copper products increased by 20,000 mt. In terms of rare earth permanent magnet business, with the commissioning of the 4,000-ton project in Baotou, the company's rare earth permanent magnet material sales were 5,134 tons in 2024, up 49% YoY. The profitability of electromagnetic wire products grew rapidly. In recent years, the company's electromagnetic flat wire business has grown rapidly, with a capacity of 60,000 mt of new energy electromagnetic flat wires. The subsidiary Jintian Electromagnetic Technology achieved a net profit of 22.18 million yuan in the first half of 2024 and 54.69 million yuan in the second half of 2024. Other electromagnetic wire producers, Jintian New Materials, achieved a net profit of 15.64 million yuan in the first half of 2024 and 37.01 million yuan in the second half of 2024. Investment advice: The company has rapidly expanded in the past few years, establishing a scale advantage. In the future, it will further improve its product and customer structures, and further deploy capacity in Southeast Asia, fully benefiting from the incremental demand for copper semis and rare earth permanent magnet materials in the new energy market, maintaining an "Outperform" rating. Risk warnings: Risk of volatile copper prices, risk of intensified market competition.