On April 27, Zhong Ke San Huan's share price rose. As of the close on April 27, the share price was up 0.84% to 11.99 yuan per share.
On the news front, on April 25, Zhong Ke San Huan disclosed its Q1 2026 report, which showed that the company achieved revenue of 1.677 billion yuan in Q1, up 14.79% YoY, and net profit attributable to shareholders of the publicly listed firm of 16.3958 million yuan, up 21.54% YoY.
In response to questions from survey participants, Zhong Ke San Huan stated that the company had established a technology innovation centre, completed the initiation and advancement of key R&D projects, built a platform for sharing technological achievements, and achieved efficient transformation and reuse of technological achievements within the group. The company continued to increase R&D investment, focused on tackling core industry technologies, undertook multiple national major science and technology projects, and achieved industrialisation of many results. The company deepened industry-academia-research collaborative innovation, carried out in-depth cooperation with scientific research institutes, and jointly developed innovative products such as high performance magnetic materials and wind power-dedicated magnetic materials.
The investor relations activity record disclosed by Zhong Ke San Huan on April 15 showed:
1. Despite strong earnings growth, the share price declined continuously for a month? Zhong Ke San Huan responded: Share prices are influenced by multiple factors and are subject to uncertainty in the short term. The company has been committed to growing and strengthening its core business, striving to achieve long-term, stable, and healthy development through continuous R&D innovation and market expansion, and endeavouring to create long-term value for shareholders and investors. Thank you!
2. In which direction will future R&D efforts be focused? Zhong Ke San Huan responded: Hello! The company's current key R&D projects include: research and development of new-type grain boundary diffusion technology, development of anisotropic bonded magnets, R&D and industrialisation of high-efficiency energy-saving NdFeB new-type equipment line processes, research on preparation processes for high performance NdFeB magnets, research on mechanisms of heavy rare earth reduction combination technologies, and research on grain boundary diffusion of magnets with high-abundance element substitution. Going forward, the company will continue to focus on common key technological bottlenecks in the industry, actively participate in national and local major scientific research projects, and develop high performance rare earth permanent magnet materials for strategic emerging fields such as NEVs, robotics, and the low-altitude economy. The company will build a full-chain innovation system covering "mechanism research—prototype verification—mass production verification—product transformation," deepen industry-academia-research collaboration and coordination with downstream clients, proactively position itself in new-type permanent magnet material technologies, and build a core technology moat. Thank you!
3. Has the company expanded its business in new energy and other dual-carbon-related fields? Zhong Ke San Huan responded: Hello! As an important energy-saving material, the rare earth permanent magnet materials produced by the company have been applied for many years in fields such as NEVs, energy-saving home appliances, and industrial robots. With the continuous development of low-carbon economic sectors such as robotics, industrial motors, the low-altitude economy, and digitalisation and intelligent technologies, there remain broad application prospects ahead, which will continue to bring new market opportunities for the company. Thank you!
4. What is the company's expansion target in markets outside China in 2026? Zhong Ke San Huan responded: Hello! In 2025, the company's revenue from outside China accounted for 49.45%. The company will continue to optimize market development strategies based on market conditions, deepen engagement with core clients and key markets, actively expand into emerging application fields, improve sales channels and service systems, and enhance the breadth and depth of market coverage; continuously optimize the market structure in and outside China to strengthen market risk resilience. Thank you!
5. What does the company plan to do to improve competitiveness? The earnings every year just go to paying salaries? Can the financial statements be more stable, with impairments fluctuating wildly? Zhong Ke San Huan responded: The company is one of the world's leading rare earth permanent magnet suppliers. In order to continue maintaining the company's leading position in the industry, we focus on improving competitiveness in the following areas: targeting major scientific and technological issues in the future rare earth permanent magnet industry and major demands of the low-carbon economy, continuously researching new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and developing and producing high performance rare earth permanent magnetic materials suitable for low-carbon energy saving, intelligent manufacturing, and traditional high-tech fields; further improving the technology innovation and intellectual property system, rationally allocating scientific and technological resources, and establishing innovation platforms with smooth information flow, close integration, and efficient processes both within and outside the company. Fully leveraging the company's advantageous resources, establishing long-term new product development partnerships with top international clients, and continuously enhancing innovation capabilities; continuously intensifying market development efforts, refining sales channels construction, improving service capabilities, strengthening brand promotion, innovating marketing models, and continuously increasing market share, with particular attention to downstream high-end market and emerging application field demands; accelerating the informatization, automation, and intelligentization of production lines, further enhancing equipment automation levels, continuously improving digital and intelligent management and control of production processes, and driving further improvements in production efficiency, product quality, and profitability; continuing to seek cooperation opportunities in the upstream rare earth raw material industry to support the company's sustainable development; while steadily developing the rare earth permanent magnetic material core business and safeguarding the company's competitive advantages in this field, actively expanding into new industrial development areas and extending into downstream application fields at appropriate times.
6. Peers in the rare earth permanent magnet sector have delivered strong performance and market capitalization, yet the company, as a significant player in the rare earth permanent magnet sector, has been consistently disappointing in terms of performance and share price. What concrete measures does the management plan to take to improve performance and market capitalization? Zhong Ke San Huan responded: Hello! The company is one of the world's leading rare earth permanent magnet suppliers. In order to continue maintaining the company's leading position in the industry, we focus on the following areas: targeting major scientific and technological issues in the future rare earth permanent magnet industry and major demands of the low-carbon economy, continuously researching new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and developing and producing high performance rare earth permanent magnetic materials suitable for low-carbon energy saving, intelligent manufacturing, and traditional high-tech fields; further improving the technology innovation and intellectual property system, rationally allocating scientific and technological resources, and establishing innovation platforms with smooth information flow, close integration, and efficient processes both within and outside the company. Fully leverage the Company's advantageous resources, establish long-term new product development partnerships with top international clients, and continuously enhance innovation capabilities; continuously intensify market development efforts, deepen channel development, improve service capabilities, strengthen brand promotion, innovate marketing models, and continuously increase market share. Pay particular attention to demand in downstream high-end markets and emerging application fields; accelerate the informatization, automation, and intelligent upgrading of production lines, further enhance the level of equipment automation, continuously improve digital and intelligent management and control of production processes, and drive further improvements in production efficiency, product quality, and profitability; continue to seek cooperation opportunities in the upstream rare earth raw material industry to support the Company's sustainable development; while steadily developing the core business of rare earth permanent magnet materials and safeguarding the Company's competitive advantages in this field, actively expand into new industrial development areas and extend into downstream application fields at appropriate times. Thank you!
7 How is the progress of intelligent and automated upgrades at each production site? Zhong Ke San Huan responded: Hello! Based on industry characteristics and actual conditions, the Company has been actively pursuing informatization/automation/intelligent transformation and upgrades, continuously promoting the integrated development of informatization and digitalization with enterprise operation and management, improving management and production efficiency, and providing solid support for the Company's overall digital transformation. Thank you!
8 What are the Company's target plans regarding high-performance magnets for humanoid robots? Zhong Ke San Huan responded: Hello! The NdFeB permanent magnet materials produced by the Company have been applied in the industrial robot field for many years. Currently, the humanoid robot industry has not yet achieved large-scale mass production. Once commercialization is realized, it is expected to bring positive impacts to the NdFeB permanent magnet materials industry and the Company. In recent years, the Company has been continuously conducting technology development in this field, actively communicating with downstream application clients, and striving to capture potential market opportunities. Thank you!
9 How does the Company hedge against the risk of raw material price fluctuations? Zhong Ke San Huan responded: Hello! The Company will continue to monitor raw material price movements and actively address the adverse impacts of raw material price fluctuations through measures such as strengthening concentrated procurement of raw materials and optimizing inventory management. Thank you!
10 Please share the Company's performance guidance for 2026. Zhong Ke San Huan responded: Hello! For relevant information, please refer to the announcements released by the Company on its designated information disclosure media. Thank you!
11 Does the Company have any plans for expansion into emerging fields? Zhong Ke San Huan responded: Hello! In response to major scientific and technological challenges in the future rare earth permanent magnet industry and major demands of the low-carbon economy, the Company continuously researches new rare earth permanent magnet technologies, products, and equipment with core proprietary intellectual property rights, and develops and produces high-performance rare earth permanent magnet products suitable for low-carbon energy conservation, intelligent manufacturing, and other emerging high-technology application fields. Thank you!
12. What is the status of the commercialisation of industry-academia-research collaboration outcomes? Zhong Ke San Huan responded: Hello! The Company established a Technology Innovation Centre, completed the initiation and advancement of key R&D projects, built a technology achievement sharing platform, and achieved efficient conversion and reuse of technology achievements within the Group. The Company continued to increase R&D investment, focused on tackling core industry technologies, undertook multiple national major science and technology projects, and achieved industrialisation of most outcomes. The Company deepened industry-academia-research collaborative innovation, conducted in-depth cooperation with scientific research institutes, and jointly developed innovative products such as high performance magnetic materials and wind power-dedicated magnetic materials. Thank you!
13. What is the revenue contribution from the low-altitude economy segment? Zhong Ke San Huan responded: Hello! The Company's products have been applied in the drone sector. Currently, products used in drones account for a relatively small proportion of the Company's total shipments. Thank you!
Zhong Ke San Huan released its 2025 annual report on the evening of March 27, which showed that: In 2025, facing a complex and volatile external environment and increasingly fierce industry competition, the Company's management and all employees worked together, continuously optimised business management, actively adopted effective measures such as cost reduction and efficiency improvement, and strived to promote the Company's stable operations and healthy development, achieving significant YoY growth in operating performance. During the period, the Company's foreign exchange gains increased to a certain extent compared with the same period of the previous year, and the Company's asset impairment losses decreased significantly compared with the same period of the previous year. During the reporting period, the Company achieved operating profit of 176.573 million yuan, a YoY increase of 372.87%; total profit of 179.8863 million yuan, a YoY increase of 379.71%; net profit attributable to shareholders of the publicly listed firm of 91.3186 million yuan, a YoY increase of 660.50%; and after excluding the impact of non-recurring gains and losses such as government subsidies, net profit attributable to shareholders of the publicly listed firm after deducting non-recurring gains and losses of 60.6065 million yuan during the reporting period, a YoY increase of 451.03%.
Regarding the Company's main business and product applications, Zhong Ke San Huan stated in its 2025 annual report: The Company's main products are sintered NdFeB and bonded NdFeB permanent magnet materials, which are widely used in NEVs, automotive motors, consumer electronics, robots, industrial motors, energy-saving elevators, variable-frequency air conditioners, wind power generation, and other fields. Amid the global trend of low-carbon economy, countries around the world have focused on environmental protection and low-carbon emissions as key technology areas. Rare earth permanent magnet materials, represented by sintered NdFeB and bonded NdFeB, play an important role in establishing a complete low-carbon and green industry chain for emission reduction. Humanoid robots and the low-altitude economy are two emerging growth drivers for high performance NdFeB demand. The former boosts explosive growth in high-end magnetic materials through joint servo motors, while the latter expands demand for high power density magnetic materials driven by eVTOL aircraft and drones. Together, they are reshaping the demand structure and technological direction of rare earth permanent magnets. Currently, the humanoid robot industry has not yet achieved large-scale mass production. Once commercialisation is realised, it will have a positive impact on the NdFeB permanent magnet materials industry and the Company. During the reporting period, the Company focused on the R&D of high performance magnets for humanoid robots to capture market opportunities following their future commercialisation. Meanwhile, the Company actively and continuously monitored developments in the low-altitude economy sector, striving to seize potential market opportunities.
Regarding the business plan for 2026, Zhong Ke San Huan stated: In 2026, the Company will closely align with its future development strategy, focus on core objectives, advance the implementation of key initiatives, and drive sustained improvement in business operations. (1) Continue to strengthen technological R&D, focus on key R&D directions, intensify efforts in core technology breakthroughs, promote the industrialisation of R&D achievements, and enhance product technological content and market competitiveness; improve R&D management and incentive mechanisms to stimulate the innovation vitality of R&D teams. (2) Optimise market development strategies, deepen engagement with core clients and key markets, actively expand into emerging application fields, improve sales channels and service systems, and enhance the breadth and depth of market coverage; continuously optimise the market structure in and outside China to strengthen market resilience against risks. (3) Deepen production and operations management, advance the intelligent and automated upgrading of production sites, optimise production processes and resource allocation, and further reduce costs and increase efficiency; strengthen supply chain coordination management to ensure stable raw material supply and controllable costs. (4) Advance digital transformation, expand the coverage of information system applications, improve business-finance integration, enhance data consolidation and analytical capabilities, and empower business management and decision-making through digitalisation. (5) Strengthen the talent and incentive system, continue to recruit talent in key areas, improve talent development and career pathways, and fully mobilise employee enthusiasm and creativity. (6) Strengthen compliance management, continuously track changes in industry policies, dynamically optimise the compliance management system, and ensure that all business activities of the Company strictly comply with laws, regulations, and regulatory requirements.
In highlighting the raw material supply and price risks that the Company may face, Zhong Ke San Huan stated in its 2025 annual report: Rare earth raw materials are the core input for the Company's product manufacturing. Their supply is significantly affected by policies such as industry rectification and production controls, and there may be risks of tight supply. Meanwhile, rare earth raw material prices are influenced by multiple factors including the international economic environment, policy regulation, and market supply and demand. Price fluctuations may cause fluctuations in the Company's production costs, thereby affecting business performance.
A review of the 2025 price performance of Pr-Nd alloy, a key raw material for NdFeB, shows that the average price of Pr-Nd alloy on 31 December 2025 was 735,000 yuan/mt, compared with 489,000 yuan/mt on 31 December 2024, representing an increase of 50.31% in 2025. The annual daily average price of Pr-Nd alloy in 2025 was 602,181.07 yuan/mt, compared with its annual daily average price of 484,704.55 yuan/mt in 2024, representing an increase of 117,476.52 yuan/mt, up 24.24% YoY.
Looking back at the price trend of Pr-Nd alloy in Q1 this year: the average price of Pr-Nd alloy on March 31 this year was 880,000 yuan/mt, up 145,000 yuan/mt or 19.73% compared with its average price of 735,000 yuan/mt on December 31, 2025. The Q1 daily average price of Pr-Nd alloy this year was 913,035.71 yuan/mt, up 385,018.17 yuan/mt or 72.92% compared with the Q1 2025 daily average price of 528,017.54 yuan/mt.
According to SMM's latest quotes: on April 27, the price of Pr-Nd alloy was 940,000-960,000 yuan/mt, with an average price of 950,000 yuan/mt, unchanged from the previous trading day.
Currently, the rare earth market is showing a clear divergence: the oxide market experienced notable fluctuations, while the metal market remained relatively stable. Focusing on the Pr-Nd market, affected by ongoing fermentation of market news, Pr-Nd oxide futures prices continued to decline, and some oxide traders lowered their offers accordingly. However, most producers chose to suspend quoting, with a strong wait-and-see sentiment prevailing in the market and actual trading volumes remaining sluggish. In the metal market, despite the continued decline in oxide prices, metal enterprises showed limited willingness to sell at low prices due to inventory cost support, keeping their offers relatively firm. Magnetic material enterprises adopted a cautious purchasing stance, mostly inclined to seek lower prices for procurement, leading to a stalemate in market trading. In the short term, affected by the tug-of-war between upstream and downstream, Pr-Nd product prices are expected to move sideways.
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