The main questions raised by investors and the company's responses in the recent earnings briefing announced by Jintian Co., Ltd. show:
1. What is the current capacity utilization rate of the 80,000 mt/year precision copper pipe & tube production project in Thailand, and when is it expected to reach full production? What is the current progress of the 30,000 mt liquid cooling product production project in Vietnam and the 4,000 mt rare earth permanent magnet project in Inner Mongolia?
Jintian Co., Ltd. responded: Hello! In H1 2026, the company's "80,000 mt/year precision copper pipe & tube production project in Thailand" progressed smoothly, with equipment installation and commissioning completed and trial production underway. The Vietnam "30,000 mt/year high-precision copper busbar production project for liquid cooling and rack busbars" is accelerating construction and is currently progressing smoothly. Meanwhile, the company is actively planning and advancing the second-phase rare earth permanent magnet project at the Baotou base. For details, please refer to the company's subsequent periodic reports. Thank you!
2. Hello! The company's semi-annual performance is commendable, but there is a situation of revenue growth without profit growth. Although this is a characteristic of the company's core copper processing business, we have also seen the company working hard to develop higher-margin secondary copper and AI-related liquid cooling businesses. May I ask whether the company will continue to invest heavily in these areas in the future? When can we expect to see a more significant change in profit composition?
Jintian Co., Ltd. responded: Hello! The company's copper semis adopt a "raw material price + processing fee" pricing model. In H1 2026, the company's copper and copper alloy material production and sales were basically flat YoY. The growth in revenue was mainly driven by rising copper prices, while profit growth mainly came from higher processing fees, with per-mt profit achieving YoY growth. The company will always focus on its high-end strategic goals, deepen applications in key emerging fields, and continuously expand product market share and import substitution capabilities. It will adhere to its international strategic layout, accelerate the construction of overseas bases, and steadily increase the share of overseas revenue and international brand influence. It will seize opportunities in green and low-carbon development and further strengthen technical reserves and business cooperation in the green high-end secondary copper sector. At the same time, the company will continue to comprehensively improve procurement, production, and sales management, strengthen cost and expense control, and enhance operational efficiency through digitalization, thereby driving sustained improvement in overall profitability. Thank you!
3. Currently, the main business is still copper semis with relatively low gross margins, which ties up substantial capital, and the asset-liability ratio remains high. As liquid cooling products ramp up, will the company reduce production of traditional products in the later stage?
Jintian Co., Ltd. responded: Hello! The high-end strategy is a key direction for the company's future development. Since 2023, the company's copper product production and sales have remained basically stable. Through the "dual upgrade of products and clients" strategy, the company has continuously increased the revenue share of high-end products. In H1 2026, the company's profit scale achieved YoY growth. The company will continue to deepen high-end product applications in key emerging fields and dynamically adjust capacity arrangements across segments based on market supply and demand to strengthen profitability. Thank you!
4. Could you provide more details on the company's international business expansion and capacity layout?
Jintian Co., Ltd. responded: Hello! The company is firmly advancing its international strategic layout, deeply cultivating overseas target markets, and gradually completing a systematic upgrade from product exports to capacity going global and the globalization of operating networks and supply chains, continuously increasing the share of overseas revenue. In H1 2026, the company's "80,000 mt/year precision copper pipe & tube production project in Thailand" entered trial production. The Vietnam NEV flat magnet wire project has completed construction and is actively advancing downstream client production line certification and related matters. The Vietnam "30,000 mt/year high-precision copper busbar production project for liquid cooling and rack busbars" is progressing smoothly and is expected to further boost the company's overseas copper semis sales in the future. In H1 2026, the company achieved overseas main business revenue of 12.305 billion yuan, up 65.97% YoY, accounting for 16.77% of main business revenue, up 3.2 percentage points YoY. Overseas sales of copper semis including copper pipe & tube, magnet wire, copper strip, and copper wire reached 130,800 mt, up 31.87% YoY, with export volume ranking among the industry's top. The company's comprehensive competitive advantages overseas continue to strengthen, with overall gross margin of overseas sales products exceeding that in China, and overseas business maintaining a strong growth trajectory. Thank you!
5. Many industry insiders say that Jintian's flat magnet wire is already very leading in the industry. Could you elaborate on the specific business development?
Jintian Co., Ltd. responded: Hello! In H1 2026, the company's flat magnet wire shipments reached 16,700 mt, up 61% YoY. Among them, shipments of 800V and above high-voltage flat wire reached 8,635 mt, up 98% YoY, accounting for 52% of total flat magnet wire shipments, up 10 percentage points YoY, with market share continuing to lead. The company's NEV flat magnet wire development projects have cumulatively achieved mass production of over 200 items. In H1, 39 new NEV drive motor designated projects were added, of which 21 were for high-voltage platforms, accounting for 54%, with multiple projects already in volume supply. The company's 1000V drive motor flat wire products have become a core supporting material for "megawatt flash charging" technology in the NEV sector, with some projects already in volume supply. Client certification for 1200V drive motor flat wire products is progressing in an orderly manner, and the 1500V platform has completed product design verification, building first-mover advantages for next-generation high-voltage platform mass production. Thank you!
Jintian Co., Ltd.'s 2026 semi-annual report shows: In H1, the company achieved main business revenue of 73.373 billion yuan, up 34.33% YoY. Total production of copper and copper alloy materials reached 959,500 mt, with total sales of 888,700 mt, maintaining a leading operating scale. Net profit attributable to shareholders of the publicly listed firm reached 442 million yuan, up 18.44% YoY, with profitability continuing to improve. High-end transformation and upgrading accelerated: Copper semis production and product variety in the AI computing power sector steadily increased, with sales of copper substrates for computing power cooling and rack busbar copper substrates continuing to grow. Capacity for NEV high-voltage flat magnet wire continued to be released. Downstream clients for green high-end secondary copper were gradually expanded, achieving more applications in AI computing power, consumer electronics, NEVs, and other fields. During the reporting period, the company's rack busbar copper substrate sales reached 3,185 mt, up 94% YoY, and copper substrate sales in the computing power cooling sector reached 12,700 mt, up 68% YoY. Shipments of 800V and above high-voltage flat wire reached 8,635 mt, up 98% YoY. Overseas layout continued to deepen: The company's overseas base construction progressed smoothly, and the share of overseas revenue steadily increased. During the reporting period, the company achieved overseas main business revenue of 12.305 billion yuan, up 65.97% YoY, accounting for 16.77% of main business revenue, up 3.2 percentage points YoY. Overseas sales of copper and copper alloy materials reached 130,800 mt, up 31.87% YoY. Rare earth magnetic materials segment profitability improved: During the reporting period, the rare earth magnetic materials segment achieved main business revenue of 1.1 billion yuan, up 49.93% YoY. In H1, rare earth magnetic material production reached 3,925 mt, up 12% YoY, with capacity utilization rate remaining at a relatively high level. At the same time, product prices on the sales side steadily increased. During the reporting period, the gross margin of rare earth magnetic materials was 14.80%, up 1.8 percentage points YoY.
Jintian Co., Ltd. stated in its semi-annual report: The company integrates R&D, production, and sales, focusing on the advanced materials processing sector for 40 years. Upholding the original aspiration of "technological breakthroughs, client needs, and Jintian products," the company continues to provide high-value comprehensive solutions of advanced materials to key emerging fields such as AI computing power, NEVs, consumer electronics, humanoid robots, and low-altitude flight, having formed a multi-category segmented product matrix including copper and copper alloy materials and rare earth permanent magnet materials.
Regarding raw material price fluctuation risks, Jintian Co., Ltd. stated in its semi-annual report: The company's copper products are mainly priced on the principle of "raw material price + processing fee." These raw material prices are affected by domestic and international commodity futures prices, market demand, and other factors, carrying price fluctuation risks. Copper price fluctuations have a significant impact on the company's operating costs. Countermeasures: To mitigate operational and performance risks from copper price fluctuations, the company strictly conducts hedging operations in accordance with the Hedging Management System to avoid raw material price fluctuation risks.
In addition, Jintian Co., Ltd. announced on the evening of August 18 that the company plans to spin off its controlling subsidiary Ningbo Ketian Magnetic Industry Co., Ltd. for listing on a domestic stock exchange. The company held a board meeting that day and approved the relevant proposal. However, this spin-off is still in the early planning stage, and no specific plan has been formed yet, so there is uncertainty.
Regarding its operating plan, Jintian Co., Ltd. stated in its 2025 annual report: In 2026, the company will focus on high-quality development requirements, guided by the strategic goals of the 15th Five-Year Plan, and formulate targeted segmented strategic goals based on changes in market demand and the company's actual situation. With an international perspective and philosophy, the company will introduce advanced technologies, strengthen organizational capabilities, comprehensively improve procurement, production, and sales management, strive to build a modern industrial system, and make solid progress toward its strategic goals. At the same time, the company has long adhered to its international strategic layout, serving global clients and utilizing global high-quality resources to promote product leadership, talent leadership, management leadership, and service leadership, providing clients with professional solutions and services. The company will continue to adhere to technological innovation leadership, accelerate the achievement of high-level technological self-reliance, accelerate the development of new quality productive forces, open up new fields and new tracks, cultivate new momentum, and enhance new competitive advantages. It will continue to deepen its presence in the NEV industry, clean energy, and chip semiconductor industries to consolidate industry influence; rapidly expand the computing power cooling industry to achieve large-scale mass production and build a growth engine; focus on frontier R&D in robotics and low-altitude flight to build future competitiveness; and continuously promote low-carbon recycled product innovation to build low-carbon core advantages.
A research report from Aijian Securities commenting on Jintian Co., Ltd.'s semi-annual report shows: High-end transformation continues to accelerate, AI computing power copper semis client onboarding is progressing smoothly, and capacity expansion opens up growth space. 1) AI power density continues to rise, and liquid cooling and high-voltage DC architectures are accelerating penetration, driving increased copper semis demand and higher value. The 800V high-voltage platform for NEVs is accelerating penetration, and the ramp-up of high-voltage flat magnet wire is driving product structure upgrades. As AI computing power-related copper semis accelerate in volume, the revenue share of high-value-added products continues to rise, and per-unit processing fees, gross margins, and client stickiness are expected to continue improving. The copper processing business's profit model is expected to be further optimized, driving the company's profit center upward. Risk warnings: NEV downstream demand or capacity release may fall short of expectations, copper price increase risks, and overseas trade policy change risks.
A research report from China Post Securities pointed out: The main drivers of the company's performance growth are: copper prices fluctuating at highs amplifying revenue, the ramp-up of high-end products such as AI computing power copper semis and 800V high-voltage flat wire, plus government subsidies of 103 million yuan and fair value change gains of 120 million yuan contributing non-recurring gains of 219 million yuan. Rising copper prices tie up short-term capital, and the asset-liability ratio has risen. AI copper semis continue to ramp up, with chip copper semis sales reaching 26,000 mt in H1. Rubin's ramp-up is driving demand growth. In the rack busbar copper substrate sector, the company supplies conductive copper semis to AI computing power enterprises through the supply chains of leading connector system companies such as Amphenol and TE Connectivity. As the power of AI computing power cabinets rapidly increases, the advantages of rack busbar power supply solutions are gradually emerging, becoming the preferred choice for solving heat dissipation and high current carrying issues. The Vietnam base continues to advance, and chip-related product capacity is expected to expand to 100,000 mt. High-voltage flat wire product structure is upgrading. Subsidiary Ketian Magnetic Industry's performance is improving, with plans for a spin-off and listing. In the rare earth permanent magnet segment, subsidiary Ketian Magnetic Industry is a core enterprise in the magnetic material industry. In H1, rare earth permanent magnet finished product production reached 3,925 mt, up 12% YoY. The gross margin of rare earth magnetic materials was 14.80%, up 1.8 percentage points YoY, achieving net profit of 66 million yuan. The company plans to spin off Ketian Magnetic Industry for listing on a domestic stock exchange. Investment recommendation: Considering that the company's Vietnam project is about to commence production, capacity utilization is improving, and AI copper semis performance contribution is expected to continue growing. Risk warnings: price fluctuation risks, project progress falling short of expectations, etc.
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