Financial Performance - The company's operating revenue for Q1 2025 was CNY 1,754,254,463.18, representing a 14.19% increase compared to CNY 1,536,247,143.43 in the same period last year[10] - Net profit attributable to shareholders for Q1 2025 was CNY 160,525,258.63, a significant increase of 57.85% from CNY 101,692,621.31 year-on-year[10] - The net profit after deducting non-recurring gains and losses surged by 331.10% to CNY 105,876,943.19 from CNY 24,559,682.72 in the previous year[10] - The basic and diluted earnings per share for Q1 2025 were both CNY 0.12, reflecting a 50.00% increase from CNY 0.08 in the same quarter last year[10] - The company achieved operating revenue of RMB 1.754 billion, a year-on-year increase of 14.19%[29] - Net profit attributable to shareholders reached RMB 161 million, up 57.85% year-on-year[29] - The company’s net profit excluding non-recurring gains and losses was RMB 106 million, reflecting a significant increase of 331.10% year-on-year[29] - Operating profit increased to ¥184,223,659.37, a rise of 60.6% compared to ¥114,654,714.32 in the last period[38] Assets and Liabilities - The total assets at the end of Q1 2025 amounted to CNY 13,775,686,575.86, up 12.02% from CNY 12,297,311,673.87 at the end of the previous year[11] - The total assets of the company as of March 31, 2025, were RMB 13.776 billion, an increase from RMB 12.297 billion at the beginning of the period[33] - The total liabilities increased to ¥6,500,122,037.63 from ¥5,179,863,454.31, reflecting a growth of 25.5%[35] - Total equity attributable to the parent company reached ¥7,170,608,090.39, up from ¥7,016,033,171.08, indicating a growth of 2.2%[35] Cash Flow - The net cash flow from operating activities improved by 43.03%, reducing the outflow to CNY -350,442,034.40 from CNY -615,182,046.97 in the previous year[10] - Operating cash flow improved by 43.03%, with a net outflow of approximately ¥350.44 million, primarily due to reduced material procurement expenses[18] - Cash flow from financing activities generated a net inflow of $309,308,075.36, up from $55,280,366.64 in the previous period, reflecting stronger financing efforts[45] - The company reported a significant decrease in cash and cash equivalents, ending the period with $1,514,443,970.05, down from $2,347,082,156.47[45] Shareholder Information - The total number of common shareholders at the end of the reporting period was 77,461[19] - The largest shareholder, Jiangxi Ruide Venture Capital Co., Ltd., holds 28.21% of shares, amounting to 387,100,160 shares[20] - The second-largest shareholder, HKSCC Nominees Limited, holds 16.59% of shares, totaling 227,640,800 shares[20] Operational Highlights - In Q1 2025, the company’s production capacity utilization rate exceeded 90%, with raw magnetic material output of approximately 8,770 tons, finished magnetic material output of about 6,600 tons, and sales volume of finished magnetic materials reaching around 6,024 tons, all increasing by over 40% compared to the same period last year[29] - Revenue from the new energy vehicle and auto parts sector amounted to RMB 882 million, accounting for 50.28% of total operating revenue[29] - Revenue from energy-saving variable frequency air conditioning reached RMB 513 million, representing 29.25% of total operating revenue[29] - Export sales revenue was RMB 312 million, making up 17.76% of total operating revenue, with sales to the United States contributing RMB 122 million, or 6.94% of total operating revenue[29] - The company is focusing on expanding its market and production capacity in the new energy and energy-saving sectors, particularly in new energy vehicles and components, energy-saving air conditioning, and robotics[28] Expenses - Total operating costs amounted to ¥1,621,523,660.51, up 8.3% from ¥1,497,437,075.56 in the prior period[37] - Research and development expenses were ¥82,764,290.89, an increase of 10.4% from ¥74,588,597.44 in the previous period[37] - Sales expenses increased by 67.00% to approximately ¥17.68 million, attributed to a 40% growth in sales volume and higher market expansion costs[18] Other Comprehensive Income - The company reported a decrease in other comprehensive income, which was -¥50,430,748.99 compared to -¥42,492,378.41 in the prior period[35] - Other comprehensive income after tax attributable to the parent company was -$48,856,950.64, a substantial decline from -$2,709,351.23 in the previous period[39]

Financial Performance - In 2024, the company achieved a revenue of RMB 6,763.3 million, a year-on-year increase of 1.13%, while net profit attributable to the parent company was RMB 291.0 million, a decrease of 48.37%[7]. - The company reported a revenue of RMB 1.2 billion for the fiscal year ending December 31, 2023, representing a year-over-year increase of 15%[36]. - The company has set a revenue guidance of RMB 1.5 billion for the fiscal year 2024, which reflects an expected growth of 25% compared to 2023[36]. - The company reported a gross margin of 35% for the year, an improvement from 30% in the previous year[36]. - The net profit attributable to the parent company's owners for 2024 was RMB 291.0 million, a decrease of 48.37% from RMB 563.7 million in 2023[37]. - The gross profit for 2024 was RMB 752.6 million, representing a decrease of 29.98% compared to RMB 1,074.9 million in 2023[37]. - The company's annual profit margin decreased from 8.48% in 2023 to 4.35% in 2024[125]. - The net cash flow from operating activities was RMB 507.9 million, down 66.53% from RMB 1,517.8 million in 2023[38]. - The net cash flow from financing activities for the year ending December 31, 2024, was RMB 916 million, primarily from bank loans of RMB 908.8 million and H-share issuance proceeds of RMB 197.5 million[129]. Production and Capacity - The company's production capacity utilization rate exceeded 90%, with high-performance magnetic material sales volume increasing by approximately 40% year-on-year, reaching a historical high[10]. - The company produced approximately 29,300 tons of high-performance magnetic materials in 2024, representing a year-on-year increase of 39.48%[69]. - The sales volume of high-performance magnetic materials reached about 20,900 tons in 2024, marking a year-on-year growth of 37.88%[69]. - The company aims to achieve an annual production capacity of 60,000 tons of high-performance rare earth permanent magnet materials by 2027, with a focus on advanced humanoid robot magnetic components[137]. - The company has achieved an actual production capacity of 32,000 tons of high-performance rare earth permanent magnet materials, with a utilization rate exceeding 90%[93]. - By the end of 2024, the company is expected to have a production capacity of 38,000 tons per year for high-performance rare earth permanent magnet materials, with plans to reach 40,000 tons by 2025[93]. Market and Sales - In the new energy vehicle sector, sales revenue from magnetic steel products amounted to RMB 3,313.7 million, with a sales volume growth of 38.62%, enabling the assembly of approximately 5.5 million new energy passenger vehicles[20]. - The company’s sales revenue in the 3C sector reached RMB 213.4 million, with a year-on-year growth of 104.54%[21]. - The company’s sales revenue from energy-saving variable frequency air conditioning magnetic steel products was RMB 1,540.4 million, with a sales volume growth of 61.81%[20]. - The company aims to enhance its market share in sectors such as new energy vehicles, energy-efficient variable frequency air conditioning, wind power generation, and industrial robots[142]. - The company is focusing on high-performance rare earth permanent magnet materials, which are expected to see a compound annual growth rate (CAGR) of over 60%[28]. Research and Development - The company is investing RMB 200 million in R&D for new permanent magnet materials, aiming to enhance product performance and reduce production costs[36]. - The company’s R&D expenditure in 2024 was RMB 321 million, accounting for 4.74% of total revenue[90]. - The company is actively developing humanoid robot magnetic components, with initial small-scale production already underway[85]. - The company plans to increase R&D investment in humanoid robot magnetic components to meet the growing market demand[144]. - The company is leveraging advanced technologies such as crystal boundary penetration technology to improve its product performance[28]. Environmental, Social, and Governance (ESG) - The company’s ESG score improved significantly to 56 points in 2024, reflecting its commitment to sustainable development[8]. - The company is committed to ESG (Environmental, Social, and Governance) initiatives as part of its long-term strategy[28]. - The company has received the ISO 14064 carbon inspection certificate and improved its S&P Global ESG Score to 56, reflecting significant progress in sustainable development[104]. - The company has committed RMB 3,134 million to environmental protection and health safety expenditures during the reporting period[100]. - The company’s green electricity usage accounted for 26% of its total electricity consumption in 2024, with solar power projects generating 4.8 million kWh, reducing carbon emissions by 2,812 tons[98]. Corporate Governance - The company maintains high standards of corporate governance, continuously improving its governance structure and internal management systems[167]. - The board of directors consists of 9 members, including 2 executive directors, 4 non-executive directors, and 3 independent non-executive directors, with independent directors making up at least one-third of the board[1]. - The company emphasizes the importance of internal control systems and has implemented measures to enhance internal audit supervision and compliance training[181]. - The company has established a high-level corporate governance framework, adhering to the applicable code provisions of the corporate governance code[182]. - The company ensures equal rights for all shareholders during general meetings, adhering to legal and regulatory requirements[168]. Shareholder Information - The top shareholder, Jiangxi Ruide Venture Capital Co., Ltd., holds 28.21% of the shares, with 387,100,160 shares pledged[152]. - The company has a total of 20,171,400 H-shares held by Jiangxi Ruide Venture Capital Co., Ltd., which represents 8.86% of the H-share equity[154]. - The beneficial ownership of A-shares by Jiangxi Ruide Venture Capital Co., Ltd. is 387,100,160, accounting for 33.82% of the relevant equity[154]. - The company has no other corporate shareholders holding 10% or more of the shares, excluding the Hong Kong Central Clearing and Settlement System[162]. - The company’s major shareholders have signed a concerted action agreement, indicating a unified approach to shareholding[155].

Financial Performance - For the fiscal year ending December 31, 2024, the company achieved a revenue of RMB 6,763.3 million, representing a year-on-year growth of 1.13%[10] - The net profit attributable to the parent company was RMB 291.0 million, a decrease of 48.37% compared to the previous year[10] - The company generated a net cash flow from operating activities of RMB 507.9 million[10] - The gross profit margin decreased to 11.13% in 2024 from 16.07% in 2023, indicating a decline in profitability[46] - The basic and diluted earnings per share dropped by 47.62% to RMB 0.22 from RMB 0.42 in the previous year[40] - The net cash flow from operating activities was RMB 507.9 million, a significant decline of 66.53% from RMB 1,517.8 million in 2023[41] - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2023, representing a year-over-year increase of 15%[34] - The company’s revenue for 2024 was RMB 6,763.3 million, representing a year-on-year growth of 1.13%, while net profit attributable to shareholders decreased by 48.37% to RMB 291.0 million[87] Production Capacity and Utilization - The company's production capacity utilization rate exceeded 90%, with high-performance magnetic material sales volume increasing by approximately 40% year-on-year, reaching a historical high[10] - The company plans to achieve a production capacity of 38,000 tons per year for high-performance rare earth permanent magnetic materials by the end of 2024[27] - By 2025, the company aims to establish a production capacity of 40,000 tons for high-performance rare earth permanent magnetic materials and advanced humanoid robot magnetic components[27] - The company aims to achieve a total production capacity of 60,000 tons of high-performance rare earth permanent magnet materials in the future[12] - The company produced approximately 29,300 tons of high-performance magnetic materials in 2024, representing a year-on-year increase of 39.48%[72] - The sales volume of high-performance magnetic materials reached about 20,900 tons in 2024, marking a year-on-year growth of 37.88%[72] Market Position and Sales Performance - The company has established a leading market position in key downstream sectors, including new energy vehicles and energy-efficient variable frequency air conditioning[10] - The sales revenue of the company's new energy vehicle drive motor magnetic steel products reached RMB 3,313.7 million, with a year-on-year sales volume growth of 38.62%[23] - The sales revenue from wind power magnetic steel products was RMB 497.0 million, with a year-on-year sales volume growth of 2.03%[23] - The sales revenue from energy-saving variable frequency air conditioning magnetic steel products reached RMB 1,540.4 million, with a year-on-year sales volume growth of 61.81%[23] - In 2024, the revenue from the robotics and industrial servo motor sector reached RMB 196.2 million, with a year-on-year sales volume growth of 5.17%[24] - The revenue from the 3C sector in 2024 was RMB 213.4 million, with a year-on-year sales volume growth of 104.54%[24] Research and Development - The company is focusing on R&D investments, with a budget increase of 10% for the upcoming fiscal year to support innovation[34] - New product development includes a next-generation Nd-Fe-B magnet, expected to enhance performance by 25%[34] - The company has a strong R&D capability, with over 90% of its high-performance rare earth permanent magnet materials produced using boundary diffusion technology in 2024[79] - The humanoid robot magnetic component business is expected to be a significant growth point, with initial small batch deliveries already made in 2024[95] - The company aims to reduce the proportion of heavy rare earths in high-performance neodymium-iron-boron permanent magnetic materials and enhance automation levels as part of its R&D efforts[142] Sustainability and ESG Initiatives - The company’s ESG score improved significantly to 56 points, reflecting its commitment to sustainable development[11] - The company has recycled 2,575 tons of rare earth raw materials, accounting for 30.4% of the total raw materials used in 2024[11] - The company is committed to sustainable development and aims to reduce carbon emissions through various initiatives, including the construction of photovoltaic power stations and increasing the proportion of green electricity[144] - The company contributed to a reduction of approximately 62.06 million tons of carbon emissions through its sales of magnetic steel products in various sectors[100] - The company invested approximately RMB 31.34 million in environmental protection and health safety during the reporting period[103] Strategic Partnerships and Market Expansion - The company has established long-term strategic partnerships with major rare earth suppliers, with 63.62% of its annual procurement amount coming from Northern Rare Earth Group and China Rare Earth Group in 2024[78] - The company is actively expanding into new application areas such as low-altitude aircraft and rail transportation[24] - The company plans to expand its market presence in Southeast Asia, targeting a 30% growth in that region by 2025[34] - The company has initiated a strategic partnership with a leading automotive manufacturer to supply rare earth materials for electric vehicles, aiming for a revenue contribution of RMB 300 million in 2024[34] Corporate Governance and Shareholding Structure - The company maintains high standards of corporate governance and complies with relevant laws and regulations[170] - The total number of shares held by the major shareholders reflects a concentrated ownership structure, with the top three shareholders controlling a significant portion of the equity[158] - The company has a significant presence in the market with multiple shareholders, including state-owned and private entities, indicating a diverse ownership structure[158] - The company has established a high-level management performance evaluation system based on responsibility, incentive, performance, and competition principles[183] - The company has confirmed that all directors and supervisors complied with the management regulations during the reporting period[176]

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.8 per 10 shares for the first half of 2024, amounting to approximately RMB 107 million, which represents about 90% of the net profit attributable to the parent company for that period[6]. - Since its listing in 2018, the company has distributed a total cash dividend of approximately RMB 952 million, accounting for over 40% of the cumulative net profit attributable to the parent company[6]. - The company proposed an interim dividend of RMB 0.8 per share (tax included) for the six months ended June 30, 2024[36]. - The company plans to distribute a cash dividend of RMB 0.8 per share, totaling approximately RMB 107 million, which accounts for about 90% of the net profit for the first half of 2024[62]. - The declared and paid final dividend was RMB 0.26 per share, totaling RMB 347,677,000 for the six months ended June 30, 2024, compared to RMB 218,163,000 for the same period in 2023[186]. Financial Performance - For the six months ended June 30, 2024, the company reported operating revenue of RMB 3,361.5 million, a decrease of RMB 68.5 million or 2.00% compared to RMB 3,430.0 million for the same period in 2023[36]. - The net profit attributable to the owners of the parent company for the reporting period was RMB 119.7 million, representing a decrease of approximately 64.02% from RMB 332.6 million for the six months ended June 30, 2023[36]. - The gross profit for the reporting period was RMB 291.2 million, a decrease of RMB 248.0 million or 46.00% compared to the previous year[35]. - Basic and diluted earnings per share for the reporting period were RMB 0.09, down 64.00% from RMB 0.25 in the same period last year[35]. - The net cash flow from operating activities for the reporting period was RMB 330.8 million, down 57.55% from RMB 779.2 million for the same period in 2023[36]. - The company reported a profit attributable to ordinary shareholders of RMB 119,677 thousand for the six months ended June 30, 2024, down from RMB 332,603 thousand in the same period of 2023[184]. - The company's total assets as of June 30, 2024, were RMB 11,372,910 thousand, a decrease from RMB 11,825,956 thousand at the end of 2023[156]. - The company's cash and cash equivalents were RMB 2,930,136 thousand, down from RMB 3,156,726 thousand, indicating a decrease of 7.2%[156]. - The company reported a net loss of RMB 201,000 from the sale of assets with a net book value of RMB 8,543,000 for the six months ended June 30, 2024[187]. Market Position and Product Utilization - The company's products are utilized by eight out of the top ten global variable frequency air conditioning compressor manufacturers, and five out of the top ten wind turbine manufacturers[7]. - The sales volume of the company's new energy vehicle drive motor magnetic steel products can equip approximately 2.45 million new energy passenger vehicles[7]. - The sales volume of the company's energy-saving variable frequency air conditioning magnetic steel products can equip approximately 46.37 million variable frequency air conditioning compressors[7]. - The sales volume of the company's wind power magnetic steel products can equip wind turbines with a total installed capacity of approximately 5.73 GW[7]. - The company has consistently maintained a leading position in the industry, with a focus on high-performance rare earth permanent magnet materials[7]. Research and Development - The company aims to expand its market presence and enhance its product offerings through ongoing research and development initiatives[7]. - The company is focusing on the development of rare earth permanent magnet materials, which have seen significant advancements since the 1960s[32]. - R&D expenses for the first half of 2024 amounted to RMB 153 million, accounting for 4.55% of operating revenue[56]. - The production of high-performance rare earth permanent magnet materials using grain boundary diffusion technology increased by 52% year-on-year, representing 88% of the total product output[68]. - The company is actively involved in the research and development of magnetic components for humanoid robots, aligning with global market trends[49]. Market Trends and Projections - The global consumption of high-performance rare earth permanent magnet materials increased from 47,500 tons in 2018 to 102,500 tons in 2023, with a compound annual growth rate (CAGR) of approximately 16.6%[39]. - The consumption of rare earth permanent magnet materials in the global new energy vehicle market rose from 6,400 tons in 2018 to 43,200 tons in 2023, achieving a CAGR of about 46.5%[41]. - The global energy-efficient variable frequency air conditioning market's consumption of rare earth permanent magnet materials grew from 6,300 tons in 2018 to 12,900 tons in 2023, with a CAGR of approximately 15.4%[42]. - The global wind power market's consumption of rare earth permanent magnet materials increased from 6,700 tons in 2018 to 12,800 tons in 2023, reflecting a CAGR of about 13.8%[43]. - The global consumption of high-performance rare earth permanent magnet materials is projected to reach 227,100 tons by 2028, with a CAGR of 17.2% from 2023 to 2028[39]. Strategic Initiatives - The company is planning to issue up to 26,895,424 new H shares as part of its capital raising strategy[29]. - The company has formed strategic partnerships with major rare earth suppliers, ensuring a stable supply chain and mitigating the impact of price fluctuations[55]. - The company is actively pursuing market expansion strategies and exploring new technologies in the rare earth sector[32]. - The company plans to build a production capacity of 40,000 tons of high-performance rare earth permanent magnetic materials by 2025, with a current capacity utilization rate exceeding 90%[54]. - The company is committed to ESG initiatives, focusing on reducing carbon emissions and supporting global carbon neutrality goals through various measures, including the construction of photovoltaic power stations[97]. Shareholder and Governance Structure - Major shareholders include Cai Baogui, Hu Zhibin, and Li Xinnong, each holding significant stakes in the company, with Cai Baogui controlling approximately 36.85% of the A shares[109]. - The company has a significant ownership structure with multiple layers of control among its major shareholders, impacting governance and decision-making[112]. - The company has adopted a restricted stock incentive plan to motivate qualified management and employees[32]. - The new board includes a strategic committee led by the newly appointed chairman, with a focus on enhancing corporate governance and strategic direction[107]. - The company continues to focus on enhancing its corporate governance structure and shareholder engagement strategies[107]. Risks and Challenges - The company faces risks from fluctuations in rare earth material prices, which have shown significant volatility in the first half of 2024, potentially impacting revenue and profit growth[142]. - The company is expanding its overseas market presence, which exposes it to geopolitical and economic risks, as well as currency exchange rate fluctuations affecting sales revenue[144]. - The company has a significant amount of accounts receivable, which could impact cash flow if collection efforts are unsuccessful; however, it has implemented strict management measures to mitigate this risk[146]. - The company is actively monitoring national policies and market dynamics in key application areas like new energy vehicles and energy-saving technologies to adapt to potential economic slowdowns[143].

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.8 per share (before tax), totaling approximately RMB 107 million, which represents about 90% of the net profit attributable to the parent company for the first half of 2024[5]. - Since its listing in 2018, the company has distributed a cumulative cash dividend of approximately RMB 952 million, accounting for over 40% of the cumulative net profit attributable to the parent company[5]. - The company proposed an interim dividend of RMB 0.8 per 10 shares (tax included) for the six months ended June 30, 2024[35]. - The company plans to propose a 10% withholding tax on cash dividends distributed to non-resident corporate shareholders listed in the H-share register, in accordance with the Corporate Income Tax Law of the People's Republic of China[99]. - For individual investors through the Shanghai-Hong Kong Stock Connect, the company will withhold income tax at a rate of 20% on dividends received from H-shares[100]. Financial Performance - For the six months ended June 30, 2024, the company reported operating revenue of RMB 3,361.5 million, a decrease of RMB 68.5 million or 2.00% compared to RMB 3,430.0 million for the same period in 2023[34]. - The net profit attributable to the owners of the parent company for the same period was RMB 119.7 million, representing a decrease of approximately 64.02% from RMB 332.6 million in the previous year[34]. - The net cash flow from operating activities was RMB 330.8 million, down 57.55% from RMB 779.2 million for the six months ended June 30, 2023[34]. - The basic and diluted earnings per share for the reporting period were RMB 0.09, a decrease of 64.00% from RMB 0.25 in the previous year[34]. - The gross profit for the reporting period was RMB 291.2 million, a decline of RMB 248.0 million or 46.00% compared to the previous year[34]. Market Position and Expansion - The company maintains a leading position in the industry, with eight of the top ten global variable frequency air conditioning compressor manufacturers as customers[6]. - The company has plans for market expansion and potential mergers and acquisitions to strengthen its market presence[2]. - The company is exploring market expansion opportunities and potential mergers and acquisitions to enhance its competitive position[32]. - The company is actively expanding into robotics and industrial servo motors, becoming a key supplier of high-performance magnetic steel in these sectors[62]. Research and Development - The company is committed to continuous research and development of new products and technologies to enhance its market competitiveness[2]. - In the first half of 2024, the company's R&D expenses amounted to RMB 153 million, accounting for 4.55% of operating revenue[55]. - The company plans to enhance its R&D efforts to improve production technology and expand its product range, focusing on high-performance magnetic materials and components[95]. Rare Earth Materials Market - The global consumption of high-performance rare earth permanent magnet materials increased from 47,500 tons in 2018 to 102,500 tons in 2023, with a compound annual growth rate (CAGR) of approximately 16.6%[38]. - The consumption of rare earth permanent magnet materials in the global new energy vehicle market rose from 6,400 tons in 2018 to 43,200 tons in 2023, achieving a CAGR of about 46.5%[40]. - The global energy-efficient variable frequency air conditioning market's consumption of rare earth permanent magnet materials increased from 6,300 tons in 2018 to 12,900 tons in 2023, with a CAGR of approximately 15.4%[41]. - The global wind power market's consumption of rare earth permanent magnet materials grew from 6,700 tons in 2018 to 12,800 tons in 2023, with a CAGR of about 13.8%[42]. Operational Efficiency and Cost Management - The management is committed to improving operational efficiency and cost management in response to the declining revenue and profit margins[32]. - The company continues to focus on the development of rare earth permanent magnet materials, which are critical for various industrial applications[32]. - The company has formed strategic partnerships with major rare earth suppliers, mitigating the impact of price fluctuations on operational performance[54]. Shareholder Structure and Governance - The company has a total of 1,345,236,723 shares issued, including 200,745,600 H shares and 1,144,491,123 A shares, with 8,015,784 A shares being treasury shares[111]. - The major shareholders hold approximately 36.85% of the A shares and 10.05% of the H shares, indicating significant control over the company[108]. - The company has established various committees, including a strategy committee and an audit committee, with specific members appointed to lead these committees[106]. - The company has no changes in the information of directors, supervisors, and senior management that require disclosure during the reporting period[106]. Risks and Challenges - The company faces risks from fluctuations in rare earth material prices, which have shown significant volatility in the first half of 2024, potentially impacting revenue and profit growth[141]. - The company is actively monitoring national policies and market dynamics in key application areas, including new energy vehicles and energy-saving technologies, to adapt to potential economic slowdowns[142]. - The company has a significant amount of accounts receivable, which poses a risk to cash flow if collection efforts are unsuccessful; however, management has implemented measures to assess customer creditworthiness and monitor receivables[145]. Capital Raising and Investments - The company plans to issue up to 26,895,424 H-shares at a price of HKD 8.19 per share, pending shareholder approval[13]. - The company has agreed to acquire 19.647 million shares of Hastings at a subscription price of AUD 0.36 per share, totaling approximately AUD 7.07 million, which will increase its stake to 9.8%[148]. - The company has reallocated funds originally intended for potential acquisitions to the new project of building a production line for 1 million magnetic components annually in Mexico[137]. Employee and Incentive Plans - The company established an equity incentive plan, granting a total of 8,252,000 restricted shares to 221 participants, recognizing their contributions[194]. - The total number of shares reserved for future grants includes 418,000 shares of the second type, equivalent to 1,070,080 A-shares after the capital increase in July 2023[194]. - The company aims to attract and retain talent through the restricted stock incentive plan, aligning interests with shareholders[122].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 JL MAG RARE-EARTH CO., LTD. 江西金力永磁科技股份有限公司 （在 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 碼：06680） 2024年第一季度報告 本公告乃由江西金力永磁科技股份有限公司（「本公司」，連 同 其 附 屬 公 司「本 集 團」）根據香港聯合交易所有限公司證券上市規則第13.09條及第13.10B條以及證 券及期貨條例（香 港 法 例 第571章）第XIVA部項下的內幕消息條文（定 義 見 上 市 規 則）而 作 出。 以下為本公司的2024年 第 一 季 度 報 告。本2024年第一季度報告所載之財務數據 乃 根 據 中 國 企 業 會 計 準 則 編 製 且 未 經 審 計。 承董事會命 江西金力永磁科技股份有限公司 董事長 蔡報貴 江 西，2024年4月26 ...

Financial Performance - The company's operating revenue for 2023 was RMB 6,687.9 million, a decrease of 6.7% compared to the previous year[5]. - The net profit attributable to the parent company for 2023 was RMB 563.7 million, a decrease of 19.8% year-on-year[5]. - The cash flow from operating activities for 2023 was RMB 101.8 million, representing a significant increase of 389.5% compared to the previous year[17]. - The gross margin for the year improved to 35%, up from 30% in the previous year, reflecting better cost management[24]. - The company's operating revenue for the year ended December 31, 2023, was RMB 6,687.9 million, a decrease of 6.7% compared to RMB 7,165.2 million for the year ended December 31, 2022[32]. - The net profit attributable to the owners of the parent company for the year was RMB 563.7 million, down 19.8% from RMB 702.7 million in the previous year[33]. - The net cash flow from operating activities increased significantly to RMB 1,517.8 million, a rise of 389.4% compared to RMB 310.1 million in 2022[33]. - The gross profit margin for 2023 was 16.07%, slightly down from 16.18% in 2022[40]. - The company's revenue for the reporting period was RMB 6,687.9 million, a decrease of RMB 477.3 million or 6.7% compared to RMB 7,165.2 million in 2022[112]. - The net profit attributable to the parent company was RMB 563.7 million, down RMB 139.0 million or 19.8% from RMB 702.7 million in 2022, primarily due to a significant decrease in foreign exchange gains and increased R&D expenses[112]. Production and Capacity - In 2023, the sales volume of high-performance rare earth permanent magnet materials reached 15,122 tons, an increase of 25.6% year-on-year[5]. - The annual production capacity of high-performance rare earth permanent magnet materials has reached 23,000 tons, with an annual capacity utilization rate exceeding 90%[6]. - The company plans to gradually increase the annual production capacity of high-performance rare earth permanent magnet materials to 40,000 tons by 2025[6]. - The total production of high-performance rare earth permanent magnet materials reached 15,154 tons in 2023, an increase of 18.52% year-on-year[67]. - The company produced 13,226 tons of high-performance rare earth permanent magnet materials using grain boundary diffusion technology, a 32.72% increase year-on-year, accounting for 87.28% of total production[67]. - The company has reported a 15% increase in production capacity, now reaching 10,000 tons of rare earth magnets annually[25]. - The company plans to establish a production capacity of 40,000 tons of high-performance rare earth permanent magnet materials by 2025, with current capacity utilization exceeding 90%[71]. - The company is investing in a new production line in Mexico with an annual capacity of 1 million sets of magnetic components, enhancing its competitiveness in humanoid robots and new energy vehicles[71]. Market and Product Development - The company’s products have been adopted by five of the top ten global wind turbine manufacturers in 2023[20]. - The sales volume of the company's new energy vehicle drive motor magnetic steel products can equip approximately 3.9 GW of wind power generation capacity, reducing carbon emissions by about 645 million tons per year[20]. - New product development includes the launch of a high-performance neodymium-iron-boron permanent magnet, which is expected to enhance market competitiveness[25]. - The company is actively pursuing market expansion, with plans to enter two new international markets by the end of 2024[24]. - Revenue from the new energy vehicle and automotive parts segment accounted for 49.5% of total revenue in 2023, compared to 47.5% in 2022[37]. - Revenue from the new energy vehicle and automotive parts segment was RMB 3,303.2 million, accounting for 57.3% of total revenue, up from 47.5% in 2022[114]. - The company is recognized as a leading supplier of magnetic steel for drive motors in the global new energy vehicle industry, with major manufacturers utilizing its products[67]. - The company aims to maintain its leading position in the fields of new energy vehicles, energy-saving variable frequency air conditioning, and wind power generation, while actively exploring markets in humanoid robots, 3C, and rail transportation[103]. Research and Development - The company has invested RMB 200 million in R&D for new technologies, focusing on improving the efficiency of rare earth materials[25]. - The company's R&D expenses amounted to RMB 354 million in 2023, representing 5.29% of its operating revenue[69]. - The company is committed to enhancing its R&D efforts to improve production technology and expand its product range, focusing on high-performance magnetic materials and components[104]. - The company has established long-term strategic partnerships with major rare earth suppliers, allowing for better management of raw material costs and supply stability[73]. - The company holds 115 authorized and pending patents in regions including Europe, the United States, and Japan as of December 31, 2023[87]. Environmental, Social, and Governance (ESG) - The company has established an ESG committee in 2023 to enhance its ESG strategy and performance, achieving a leading level in global industry ESG ratings[6]. - The company aims to expand its global business footprint while adhering to low-carbon development principles and fulfilling sustainable development responsibilities[7]. - The company emphasizes ESG initiatives, aiming to reduce carbon emissions and support carbon neutrality through various sustainable practices[75]. - The company achieved a carbon emission reduction of approximately 34.02 million tons through the sales of its magnetic products in various sectors, including new energy vehicles[94]. - The company has invested approximately RMB 24.89 million in environmental protection and health safety during the reporting period[97]. - The company has completed a photovoltaic power station project with a total installed capacity of approximately 2.6 MW in Ganzhou, and is constructing a "green sponge factory" in Ningbo[105]. - The company is committed to sustainable development and aims to reduce carbon emissions through various initiatives, including the construction of photovoltaic power stations and collaboration with leading new energy companies[105]. Shareholder and Corporate Governance - The company has distributed cash dividends exceeding RMB 600 million since its listing, with the 2023 dividend plan proposing a distribution of RMB 26 per 10 shares, totaling approximately RMB 347.6 million, which is over 60% of the net profit attributable to the parent company[93]. - The company is committed to maintaining high standards of corporate governance and improving its internal management and control systems[153]. - The company ensures that all shareholders enjoy equal status and rights during the general meetings[154]. - The company has a significant concentration of ownership, with major shareholders holding 387,100,160 A-shares, which is part of a controlled corporation[160]. - The company maintains independence from its controlling shareholders in terms of business, assets, and finances, ensuring autonomous operational capabilities[162]. - The company has established a comprehensive performance evaluation system for senior management, guided by principles of responsibility, incentive, performance, and competition[165]. - The company has implemented a robust internal control system to ensure effective governance and risk management[164]. - The board consists of 9 members, including 2 executive directors, 4 non-executive directors, and 3 independent non-executive directors, ensuring strong independence[173].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's performance was impacted by a decline in neodymium iron boron prices, but its core technology provides strong competitiveness and resilience [3] - Future recovery in electric vehicles and wind power, along with potential demand from robotics, positions the company as a leading beneficiary in the industry [3] - Despite short-term cost disturbances, the company's growth trend remains intact [3] Financial Performance - 2023 revenue was RMB 6.69 billion, a year-on-year decrease of 6.7% [3] - Net profit attributable to shareholders was RMB 564 million, a year-on-year decrease of 19.8% [3] - Q4 net profit attributable to shareholders was RMB 70 million, a year-on-year increase of 338%, but a quarter-on-quarter decrease of 57% [3] - Q4 production of magnetic materials was approximately 4,200 tons, a year-on-year increase of 27%, but a quarter-on-quarter decrease of 3% [3] - Q4 operating costs and various expenses totaled RMB 1.56 billion, a quarter-on-quarter increase of 8% (approximately RMB 110 million) [3] Technological and Operational Highlights - The company's grain boundary diffusion technology is leading in the industry, with 85% of products utilizing this technology in 2023 [3] - The company has strong partnerships with leading clients across various downstream sectors, ensuring robust order and performance capabilities [3] - New projects in Baotou, Ganzhou, and Ningbo are expected to gradually commence production in 2024, contributing to future performance growth [3] - The company has shifted its focus from a waste magnet recycling project in Mexico to a new project producing 1 million sets of magnetic components annually, aiming to enhance added value and benefit from overseas demand in new energy vehicles and humanoid robots [3] Market and Industry Outlook - Wind power: With single consumption at a low level, demand recovery is expected as wind power installations increase [3] - Electric vehicles: The trend towards multiple motors is expected to increase the use of magnetic materials per vehicle [3] - Humanoid robots: The value of magnetic components per robot is high, and with expected order increases in 2024-2025, the company's performance is likely to see significant growth [3] Financial Summary - 2023 revenue: RMB 6,688 million, a year-on-year decrease of 7% [4] - 2023 net profit: RMB 564 million, a year-on-year decrease of 20% [4] - 2023 PE ratio: 16.3 [4] - 2023 PB ratio: 1.3 [4] Market Data - Current stock price: HKD 6.85 [5] - 52-week price range: HKD 6.48-23.00 [6] - Current market capitalization: HKD 9,212 million [6]

Financial Performance - For the fiscal year ending December 31, 2023, the company achieved a revenue of RMB 6,687.9 million, a decrease of 6.7% compared to the previous year[9]. - The net profit attributable to the owners of the parent company for 2023 was RMB 563.7 million, representing a decline of 19.8% year-on-year[9]. - The company's operating revenue for the year ended December 31, 2023, was RMB 6,687.9 million, a decrease of 6.7% compared to RMB 7,165.2 million in 2022[35]. - The net profit attributable to the owners of the parent company for the year was RMB 563.7 million, down 19.8% from RMB 702.7 million in the previous year[36]. - The basic earnings per share for 2023 was RMB 0.42, a decrease of 20.8% from RMB 0.53 in 2022[35]. - The gross profit margin for 2023 was 16.07%, slightly down from 16.18% in 2022[43]. - The company’s net profit attributable to shareholders in 2023 was RMB 563.7 million, a decrease of 19.78% year-on-year[86]. - The company’s cash flow from operating activities significantly increased to RMB 1.518 billion in 2023[86]. - Revenue from the new energy vehicles and automotive parts segment accounted for 49.5% of total revenue in 2023, compared to 47.5% in 2022[40]. - The average selling price of neodymium iron boron products decreased due to fluctuations in rare earth material prices, while sales volume increased by 25.6% from 12,041 tons in 2022 to 15,122 tons in 2023[116]. Production and Capacity - The sales volume of high-performance rare earth permanent magnet materials reached 15,122 tons, an increase of 25.6% compared to 2022[9]. - The company plans to increase the annual production capacity of high-performance rare earth permanent magnet materials to 40,000 tons by 2025[10]. - The company’s production capacity utilization rate exceeded 90% for the year, with ongoing projects in Baotou, Ningbo, and Ganzhou[10]. - The company achieved total production of high-performance rare earth permanent magnet materials of 15,154 tons in 2023, an increase of 18.52% year-on-year[90]. - The company's production capacity for rough blanks has reached 23,000 tons per year, with a capacity utilization rate exceeding 90% in 2023[93]. - The company plans to establish a production line in Mexico with an annual capacity of 1 million sets of magnetic components, which is currently progressing steadily[94]. Research and Development - Research and development expenses amounted to RMB 354 million in 2023, representing 5.29% of total revenue, indicating a strong commitment to innovation[72]. - The company is investing in new technologies, including advanced heat treatment processes to enhance the performance of its magnetic materials[26]. - The company will continue to invest in R&D for humanoid robot magnetic components and collaborate with global customers to drive innovation[111]. - The company emphasizes a customer-centric approach and aims to improve product quality and service through a matrix project management model[110]. Market and Strategic Goals - The company aims to expand its market presence in the renewable energy sector, particularly in wind power generation[26]. - The company anticipates a revenue growth of 20% for the upcoming fiscal year based on current market trends[27]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the market[28]. - The company has established long-term strategic partnerships with major rare earth suppliers, optimizing procurement strategies to mitigate the impact of price fluctuations on operations[76]. - The company’s strategic goal is to become a global leader in the rare earth permanent magnet materials industry, supported by expanding production capacity and optimizing product structure[104]. Environmental, Social, and Governance (ESG) - The company has established an ESG committee to enhance its ESG strategy and has received recognition for its outstanding ESG practices in 2023[10]. - The company is committed to environmental, social, and governance (ESG) initiatives as part of its corporate strategy[26]. - The company has reduced carbon emissions by approximately 34.02 million tons through the sale of magnetic products in various sectors, including new energy vehicles and wind power[97]. - The company has invested approximately RMB 24.89 million in environmental protection and health safety during the reporting period[100]. - The company emphasizes ESG initiatives, aiming to support carbon neutrality through various measures, including the construction of photovoltaic power stations and technological innovations[78]. Corporate Governance - The company maintains high standards of corporate governance and continuously improves its governance structure and internal management systems[156]. - The company ensures equal rights for all shareholders during the general meetings, adhering to the Articles of Association and relevant laws[157]. - The company has established a performance evaluation and incentive mechanism for senior management, focusing on responsibility, motivation, performance, and competition principles[168]. - The independent non-executive directors have confirmed their independence according to Hong Kong listing rules, ensuring compliance with governance standards[175]. - The company has adopted corporate governance codes and has complied with relevant regulations, with minor deviations noted during specific periods[170].

智通财经APP讯，金力永磁(06680)发布公告，于2024年1月26日，董事会审议通过了关于建议H股发行 方案之议案。据此，公司将按H股发行价发行不超过2689.54万股(含本数)H股，发行对象包括控股股东 认购方及其他符合适用法律法规规定及香港联交所要求的独立第三方合格投资者。假设新H股按拟定发 行价格发行，建议H股发行所募集资金总额将不超过2.2亿港元(含本数)，在扣除发行相关费用后，将用 于支持公司业务发展，补充公司营运资金，偿还公司到期债务。拟定发行价格为每股新H股8.19港元。 于2024年1月26日，公司与江西瑞德订立H股认购协议，根据H股认购协议载列的条款及在其条件规限 下，公司已同意向控股股东认购方(即江西瑞德或其指定的境外全资附属公司)配发及发行，而江西瑞德 已同意自行或指定其境外全资附属公司以现金方式按H股发行价认购公司不超过2017.16万股H股(含本 数)。 公告称，建议H股发行有利于提升公司资本实力和资产规模，增强公司核心竞争力和盈利能力，促进公 司主营业务的持续快速增长，为公司进一步做大做强提供资金保障;控股股东认购方作为建议H股发行的 认购方之一，展现其对于公司未来发展的坚定信 ...