On September 7, Eontec's share price edged down. As of the close on September 7, Eontec fell 0.45% to 15.6 yuan per share.
In terms of news: According to the investor management information record released by Eontec on September 7:
1. Please briefly introduce the company's operating performance for H1 2026.
Eontec responded: In H1 2026, the company achieved operating revenue of 798.9791 million yuan, up 10.70% YoY. The net loss attributable to shareholders of the publicly listed firm was 52.9325 million yuan, with the loss widening by 183.30% YoY. In main revenue, magnesium products generated 376.5 million yuan, up 64.41% YoY, while aluminum products generated 299.8 million yuan, down 17.05% YoY.
2. What were the main reasons for the company's losses in H1 this year?
Eontec responded: From 2025 to H1 2026, the company continued to advance the optimisation and upgrading of its capacity structure, increased investment in core production equipment, and saw a larger scale of depreciation and amortisation of fixed assets. Coupled with exchange losses arising from exchange rate fluctuations during the period and inventory asset impairment losses, these factors led to the company's operating losses in H1 2026.
3. What are the reasons for the decline in the company's product gross margin?
Eontec responded: Currently, market competition in China's automotive vehicle manufacturing industry continues to intensify. Price competition in the end-use market has been transmitted upstream to the supply chain system. The company's downstream core automaker clients have implemented annual price reduction agreements, which have created phased pressure on the profitability of the company's corresponding products. In addition, with raw material market prices rising in H1 2026, unit production costs increased YoY, leading to a decline in the gross margin of the company's corresponding products.
4. How does the company view the future development trends of the magnesium-aluminum alloy business?
Eontec responded:As domestic automakers vigorously promote the industrial upgrading trend of "replacing aluminum with magnesium," the company, leveraging its technical expertise and capacity advantages in the magnesium alloy materials field, will actively seize market opportunities, deeply deploy in application fields such as NEVs and two-wheelers, and make every effort to expand client orders, which is expected to become a new growth point for the company's performance. The company's disclosed 430 million yuan designated project for NEV magnesium alloy powertrain housings is a landmark project in the industry for the application of magnesium alloys transitioning from thin-walled small components to thick-walled large components.
5. Are the equipment capacities for the company's magnesium-aluminum alloy business independently separated? What is the overall capacity utilisation rate?
Eontec responded: Some equipment is dedicated, but the overall manufacturing process logic of magnesium alloys is highly similar to that of aluminum alloy production. Most existing aluminum alloy production lines can achieve a smooth transition and efficient conversion to magnesium alloy production through technical modifications and process parameter optimisation. In H1 this year, the company's revenue rose 10.70% YoY, and overall equipment capacity utilisation rate remained at a favourable level.
6. Why did amorphous alloy revenue decline in H1?
Eontec responded: Last year, the company adjusted its production lines in accordance with client requirements during the factory audit for a key client, resulting in the loss of some client orders and projects. This year, the re-introduction of the client's new projects requires a certain period of time, leading to an overall decline in amorphous alloy revenue in H1.
7. What is the current progress with this key client?
Eontec responded: The company passed the key client's factory audit in 2025 and delivered samples for the P1 and P2 stages to the client. The final solution selected by the client will be subject to the client's product launch.
8. What is the yield rate of the company's amorphous alloy products?
Eontec responded: Yield rates vary depending on differences in process difficulty, technical requirements, and production stages across different products. For the amorphous alloy hinge shafts produced by the company, the yield rate can meet client requirements through stringent production control and technical optimisation.
9. Which metal costs mainly affect the raw material cost of the company's amorphous alloy products, and what proportion of the product selling price does raw material cost account for?
Eontec responded: The company's amorphous alloy material is primarily zirconium, and changes in zirconium prices have a certain impact. Currently, the company's amorphous alloy products are mainly precision structural parts, and raw material cost accounts for a relatively small proportion of the overall product selling price.
10. Does the company have further capacity expansion plans for amorphous alloy?
Eontec responded: The company's amorphous alloy capacity expansion is progressing in an orderly manner according to plan. The main part of the project at the company's production site in Changshantou, Dongguan is expected to be completed by the end of 2026, and the site is planned to be officially put into use in H1 2027. After the completion of this site, the existing production capacity of the subsidiary Dongguan Yihao Metal Materials Technology Co., Ltd. will be relocated in its entirety to the new Changshantou site. As for the Zhuzhou site, Zhuzhou High-tech Zone has provided 132 mu of land in a modern industrial park, where over 130,000 m² of modern standard factory buildings have been completed and are all handed over to Hunan Yihao for the construction of a globally leading liquid metal production site. Trial production at this site is expected to commence at the end of September 2026, with subsequent phased progress according to plan based on the pace of client order fulfilment.
11. The company is registered in Dongguan, while its major shareholder is in Zhuzhou. How does the major shareholder support the development of the publicly listed firm in its daily management?
Eontec responded: Zhuzhou State-owned Assets Investment Holding Group Co., Ltd., as the company's controlling shareholder, leverages its positioning as a professional industrial investment platform to provide enabling support to the company within the compliance framework, mainly in the following aspects: 1. Governance standardization empowerment. The controlling shareholder assists the company in strengthening compliance governance and continuously improving its corporate governance standards. 2. Capital operation support. The controlling shareholder firmly recognizes the company's long-term investment value, implements shareholding increases in accordance with regulations during market fluctuations and periods of depressed stock prices, and supports the company in compliantly carrying out refinancing and other capital operation matters in accordance with regulations. 3. Industrial resource synergy. The controlling shareholder fully leverages the industrial coordination advantages of Zhuzhou's state-owned assets and the industrial chain agglomeration advantages of the Changsha-Zhuzhou-Xiangtan region, focusing on the company's core businesses such as lightweight magnesium-aluminum alloys, amorphous alloys, and biomedical magnesium, helping the company deepen its presence in its main business tracks, consolidate its industrial foundation, and strengthen and optimize its core businesses.
12. When is the company's magnesium bone screw expected to be approved?
Eontec responded: The supplementary materials for the registration application of the company's first magnesium bone internal fixation screw were formally submitted on August 18. In accordance with the current medical device registration regulatory policies and statutory approval procedures, after the supplementary materials are formally accepted, the subsequent review and approval cycle is expected to be 3 to 6 months. The specific approval completion time will be subject to the final arrangement of the regulatory approval authority.
Eontec recently released its semi-annual report showing that in the first half of 2026, under the overall leadership of the chairman and the scientific and prudent decision-making of the board of directors, the company firmly adhered to a business orientation driven by actual client needs and fully implemented the core business philosophy of high-quality development. On the one hand, the company strictly enforced end-to-end product quality management, improved its quality control system, and continuously optimized product performance and quality standards. On the other hand, it deeply refined its supply chain system, broke down collaboration barriers across procurement, production, and logistics, steadily enhanced supply chain flexible operations and rapid response capabilities, efficiently adapted to downstream clients' order delivery requirements, and consolidated cooperative relationships with core clients. At the same time, the company continued to strengthen investment in technological innovation, cultivated new growth momentum through technological iteration and process upgrades, and relied on innovation to break through market demand bottlenecks. It coordinated production, costs, capital, markets, and other operational factors, refined internal management, and strictly controlled operating costs. In the first half of 2026, the company achieved operating revenue of 798.9791 million yuan, an increase of 10.70% compared with the same period last year. The net loss attributable to shareholders of the publicly listed firm was 52.9325 million yuan, an increase in loss of 183.30% compared with the same period last year.
Regarding the company's main businesses, Eontec introduced: The company is a national high-tech enterprise specializing in the integrated R&D, design, production, and sales of new materials, a leading new materials company in China, with a complete industry chain that integrates material R&D, precision mold development, precision die casting, CNC precision machining, and surface treatment. Through technological innovation, the company empowers its products and provides clients with one-stop industry chain supporting services and solutions. Materials include amorphous alloys, magnesium alloys, aluminum alloys, medical materials, and polymer materials, which can be applied in NEVs, consumer electronics, medical products, 5G communications, and intelligent manufacturing. Products are mainly intermediate products, including NEV parts, amorphous alloy products, consumer electronics structural components, industrial parts, and precision molds, and are products encouraged by national industrial policies. The company's products mainly adopt new material formulations and efficient, environmentally friendly die-casting and post-treatment processes, with high technical content and added value, and the technical level of major products is at the industry-leading level. Amorphous alloys, biodegradable medical magnesium, and NEV products are the company's main development directions. After more than 30 years of development, the company has accumulated deep technical experience and brand advantages, forming a development pattern supported by renowned clients in China and overseas, guaranteed by key core technologies, and oriented toward high-end advanced new material products. During the reporting period, the company's main business did not undergo major changes, and main business revenue mainly came from sales of automotive parts, amorphous alloys, consumer electronics structural components, silicone adhesives, precision molds, and other products.
Regarding the main operating plan for 2026, Eontec mentioned in its 2025 annual report: Looking ahead to 2026, the company will firmly uphold the bottom line of safety and the red line of quality and efficiency, and steadily advance the established strategic deployment. The company will take technological innovation as the engine and market demand as the guide, and through technical breakthroughs, product commercialization, market deepening, internal control optimization, and talent empowerment, achieve comprehensive improvement in operational quality and efficiency, and promote the company's steady and long-term development. The company will always adhere to an investor-oriented approach and is committed to creating sustainable value returns for investors through excellent operating performance and transparent governance.
Reviewing the price trend of SMM magnesium alloy AZ91D in H1 this year, its average price on June 30, 2026 was 18,100 yuan/mt, compared with its average price of 17,950 yuan/mt on December 31, 2025, up 150 yuan/mt in H1 this year, an increase of 0.83%. The daily average price of SMM magnesium alloy AZ91D in H1 this year was 18,895.69 yuan/mt, compared with its daily average price of 17,989.74 yuan/mt in H1 2025, with its H1 daily average price up 905.95 yuan/mt, an increase of 5.04%.
According to SMM price data: On September 7, the EXW price of SMM magnesium alloy AZ91D was quoted at 18,250-18,350 yuan/mt, with an average price of 18,300 yuan/mt, up 0.27% from the previous trading day.
Currently, on the magnesium alloy supply side, although some producers have halted operations for maintenance, spot inventory accumulated earlier in the industry remains relatively ample, with sufficient market supply and intense competition among peers. The demand side is an even more significant drag. According to feedback from some smelters, since mid-to-late August, some die-casting enterprises have been forced to suspend production for maintenance due to insufficient orders, leading to a decline in operating rates and directly reducing actual magnesium alloy consumption. In terms of prices, magnesium alloy has been consolidating on a strong note along with upstream magnesium ingot, but this is more of a passive rise driven by the cost side, with insufficient support from its own fundamentals. With both supply and demand weakening simultaneously, the pressure on processing fees has become more pronounced.
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