Summary of Baowu Magnesium Industry Conference Call Industry and Company Overview - **Company**: Baowu Magnesium Industry - **Industry**: Magnesium alloy applications in robotics, particularly humanoid robots Key Points and Arguments 1. **Application of Magnesium Alloys**: Baowu Magnesium is actively promoting the use of magnesium alloys in humanoid robots, particularly in collaboration with UBTECH to replace aluminum alloys. The humanoid robot is priced at approximately 290,000 yuan on JD.com [2][3] 2. **Material Selection Criteria**: Customers prioritize cost and lightweight properties when selecting materials for robots. Magnesium alloys can replace aluminum with minor modifications to existing molds, reducing costs while offering superior lightweight performance [2][3] 3. **Usage in Humanoid Robots**: Each humanoid robot can use up to 5 kilograms of magnesium alloy, primarily in the chest, back cover, and joints of arms and legs. The processing costs for humanoid robots are higher than for automotive parts due to thinner wall thickness [2][7] 4. **Production Timeline**: From design freeze to mass production, the timeline is approximately 45 to 60 days, contingent on completing preliminary R&D and technical exchanges [12] 5. **Competitive Advantage of Magnesium**: Magnesium has a density of about 1.8 grams per cubic centimeter, making it a cost-effective choice due to its lightweight and good processing adaptability. The price of magnesium is expected to remain competitive compared to aluminum [5][6] 6. **Market Potential**: There is significant potential for expanding the use of magnesium alloys in humanoid robots, with successful applications in certain parts likely to be replicated in others [9] 7. **Collaboration with Other Companies**: Baowu Magnesium is the first company to replace aluminum with die-cast magnesium alloy components in humanoid robots. Other companies, like Ningbo Top and Tesla, are also exploring applications but are using forging instead of die-casting [11] 8. **Profitability and Market Conditions**: Recent magnesium price increases to around 17,000 yuan per ton are attributed to industry resistance to price competition and production halts by some companies. Baowu Magnesium's facilities, except for Qingyang, are profitable under current conditions [21] 9. **Financial Performance**: The company reported a net profit of over 60 million yuan in the first half of 2025, with magnesium and aluminum businesses contributing similarly to profits [25] 10. **Future Projections**: The expected shipment volume for Yuanmei and Baiyun Stone is around 1.1 million tons for 2025, but profitability remains low. The company anticipates a separate guidance for the new Qingyang plant to ensure production targets are met [22][21] Additional Important Insights - **Corrosion Resistance**: Surface treatment can effectively address corrosion issues, making magnesium suitable for export to regions with strict carbon emission standards [4] - **Challenges in Automotive Industry**: The automotive sector faces challenges in promoting magnesium alloys due to concerns over corrosion resistance, mechanical properties, and cost, but major manufacturers are increasingly recognizing the benefits of magnesium [18] - **Price Comparison**: Magnesium alloy prices are currently lower than aluminum, and while processing costs are similar, magnesium's lightweight nature offers additional benefits [19]

证券日报网讯宝武镁业（002182）9月11日在互动平台回答投资者提问时表示，截至2025年9月10日，公 司的股东户数为60494户。 ...

Group 1 - Baowu Magnesium Industry's stock rose by 5.33% to 15.62 CNY per share, with a trading volume of 935 million CNY and a turnover rate of 7.27%, resulting in a total market capitalization of 15.492 billion CNY [1] - The company, established on November 30, 1993, and listed on November 13, 2007, is located in Lishui District, Nanjing, Jiangsu Province, and specializes in the production and deep processing of magnesium and aluminum alloy materials [1] - The revenue composition of Baowu Magnesium Industry includes: aluminum alloy extrusion products (35.90%), magnesium alloy products (26.03%), intermediate alloys (13.14%), magnesium-aluminum alloy die-casting products (11.10%), aluminum alloy products (6.67%), and others [1] Group 2 - Southern Fund's Southern CSI 1000 ETF (512100) is among the top ten circulating shareholders of Baowu Magnesium Industry, having increased its holdings by 1.1998 million shares in Q2, totaling 6.4054 million shares, which represents 0.74% of the circulating shares [2] - The Southern CSI 1000 ETF (512100) was established on September 29, 2016, with a latest scale of 64.953 billion CNY, achieving a year-to-date return of 22.64% and a one-year return of 62.7% [2] - The fund manager of Southern CSI 1000 ETF is Cui Lei, who has been in the position for 6 years and 310 days, with a total asset scale of 94.976 billion CNY [3]

9月11日，宝武镁业大宗交易成交17万股，成交额277.27万元，占当日总成交额的0.18%，成交价16.31 元，较市场收盘价16.31元持平。 | 权益类证券大宗交易(协议交易) | | | | | | 国下载 | | --- | --- | --- | --- | --- | --- | --- | | 交易日期 | 证券代码 | 证券简称 | 成交价格 (元) | 成交量 (万股/万份) | 成交金额 买方营业部 (万元) | 卖方营业部 | | 2025-09-11 | 002182 | 宝武镁业 | 16.31 | 17.00 | 277.27 中信证券股份有限 | 机构专用 | | | | | | | 公司泉州温陵北路 | | | | | | | | 证券营业部 | | ...

Market Overview - The small metals sector increased by 2.63% on September 11, with Baowu Magnesium leading the gains [1] - The Shanghai Composite Index closed at 3875.31, up 1.65%, while the Shenzhen Component Index closed at 12979.89, up 3.36% [1] Key Stocks Performance - Baowu Magnesium (002182) closed at 16.31, up 9.98% with a trading volume of 997,700 shares and a transaction value of 1.53 billion [1] - China Rare Earth (000831) closed at 55.10, up 4.83% with a trading volume of 1,029,200 shares and a transaction value of 5.64 billion [1] - Haotong Technology (301026) closed at 31.31, up 4.05% with a trading volume of 84,600 shares and a transaction value of 260 million [1] - Other notable performers include Zhongtung High-tech (000657) up 3.88% and Shenghe Resources (600392) up 3.52% [1] Capital Flow Analysis - The small metals sector saw a net inflow of 861 million from institutional investors, while retail investors experienced a net outflow of 701 million [2][3] - Major stocks like China Rare Earth and Baowu Magnesium had significant net inflows from institutional investors, indicating strong institutional interest [3] Individual Stock Capital Flow - China Rare Earth had a net inflow of 34 million from institutional investors, while retail investors saw a net outflow of 204 million [3] - Baowu Magnesium experienced a net inflow of 26.6 million from institutional investors, with retail investors facing a net outflow of 145 million [3] - Shenghe Resources had a net inflow of 90 million from institutional investors, while retail investors had a net outflow of 59 million [3]

Industry Overview - In the first half of 2025, China's primary magnesium production was approximately 476,800 tons, a year-on-year decrease of about 2.19% [1] - Total exports of various magnesium products reached around 221,500 tons, down 6.18% year-on-year [1] - Magnesium prices fluctuated between 15,000-17,000 RMB/ton (including tax), with the magnesium-aluminum ratio dropping to a historical low of 0.8-0.9, highlighting the cost-effectiveness of magnesium materials [1] Company Resource Status - Subsidiary Chao Lake Bao Magnesium holds white marble mineral resources with a reserve of 90 million tons, currently in operation [2] - Subsidiary Wutai Bao Magnesium has white marble mineral resources with a reserve of 580 million tons [2] - The company’s associate Anhui Bao Magnesium possesses white marble mineral resources with a reserve of 1.3 billion tons, which is not yet in production [2] - Gansu Bao Magnesium's subsidiary has quartzite mineral resources with a reserve of 2.95 million tons, with mining rights obtained and expected to commence in Q4 2025, which will effectively reduce silicon iron production costs [2] Automotive Sector Applications - Magnesium prices have remained lower than aluminum prices, accelerating the penetration of magnesium in automotive lightweighting [3] - Die-casting plants are increasingly adopting magnesium die-casting, including some aluminum die-casting companies [3] - New energy vehicle companies, including brands like Geely and SAIC, are increasing the use of magnesium products, with some vehicles using over 20 kg of magnesium per unit, potentially reaching 50-100 kg with larger magnesium die-cast components [3] Robotics Industry Applications - Magnesium alloys enhance the robotics industry with advantages such as lightweight, speed, stability, and cost-effectiveness [4] - The use of advanced magnesium alloy materials reduces the weight of similar components, improves operational speed, and extends the lifespan of robotic joints due to superior thermal conductivity [4] - The company has established a robotics business working group to engage with clients and promote magnesium applications [4] Electric Bicycle Applications - Magnesium's lightweight, electromagnetic shielding, and vibration damping properties are being utilized in electric bicycles [6] - Leading electric vehicle manufacturers like Aima and Yadea are incorporating magnesium alloy components, resulting in reduced weight and improved range and shock absorption [6] - The adoption of magnesium alloys is expected to lower production costs and enhance competitiveness against aluminum alloys [6]

Core Viewpoint - A leaked research report suggests that certain companies are Tier 1 suppliers for Tesla's humanoid robot, impacting stock prices of related firms in the market [2][5]. Group 1: Companies Involved - The report identifies Top Group and Sanhua Intelligent Controls as the two main Tier 1 suppliers for Tesla's humanoid robot [5]. - Other companies like Zhejiang Rongtai, Zhenyu Technology, and Yinlun Co. are also considered potential Tier 1 suppliers, with their stock prices showing significant fluctuations [2][9]. Group 2: Stock Market Reactions - On September 10, stocks of Sanhua Intelligent Controls and Yinlun Co. experienced slight declines, while Zhenyu Technology dropped by 4.64%. In contrast, Zhejiang Rongtai's stock rose by 6.47% [2]. - Since 2025, stock price increases for Yinlun Co., Zhejiang Rongtai, and Zhenyu Technology have been 93%, 355%, and 198% respectively [11]. Group 3: Company Responses - Sanhua Intelligent Controls declined to comment on the report, citing confidentiality regarding client information [7]. - Zhejiang Rongtai has indicated that it is progressing well with humanoid robot projects but cannot disclose specific details due to confidentiality [7]. Group 4: Material Insights - The report claims that Tesla does not use PEEK material but instead relies heavily on magnesium-aluminum alloys for its humanoid robots [11]. - Baowu Magnesium Industry stated that their supply of aluminum-magnesium alloy products for humanoid robots is currently limited [11]. Group 5: Shareholder Activities - Recent shareholder activities at Zhejiang Rongtai show significant reductions in holdings by major shareholders, while notable investors like Zhang Jianping have increased their stakes [12][14]. - Zhejiang Rongtai has been active in expanding its business, including acquiring a majority stake in a precision machinery company and establishing a new subsidiary focused on robotics [14].

Investment Rating - The report maintains a positive outlook on the metals and new materials industry, particularly highlighting the performance of the gold sector [3][4]. Core Insights - The report indicates that the gold sector is expected to benefit from rising interest rate cut expectations, with a long-term trend of central bank gold purchases anticipated due to low current gold reserves in China [4][23]. - The industrial metals segment shows a mixed performance, with copper prices expected to remain strong due to supply constraints and increasing demand from sectors like home appliances and power grid investments [4][36]. - The aluminum market is projected to experience a long-term upward trend in prices, supported by tightening supply-demand dynamics and potential policy support [4][49]. Weekly Market Review - The Shanghai Composite Index fell by 1.18%, while the non-ferrous metals index rose by 2.12%, outperforming the Shanghai Composite by 2.93 percentage points [5][11]. - Precious metals saw a significant increase, with gold prices rising by 3.52% and silver by 1.87% [4][17]. - Year-to-date performance shows precious metals up by 60.89%, aluminum by 23.36%, and copper by 60.11% [11][12]. Price Changes and Key Company Valuations - The report details price changes for various metals, with copper at $9,898 per ton, aluminum at $2,601 per ton, and gold at $3,640 per ounce [17][20]. - Key companies in the sector include Zijin Mining, Shandong Gold, and Huayou Cobalt, with respective valuations and earnings projections provided [20][21]. Supply and Demand Analysis - Copper supply is tightening, with domestic social inventory increasing to 141,000 tons, while demand remains robust with operating rates for copper products showing slight increases [36][49]. - The aluminum sector is experiencing a rise in downstream processing rates, with a current operating rate of 61.70% [49][51]. - Steel production is affected by short-term production limits in Hebei, leading to a decrease in output and an increase in steel prices [4][73].

Investment Rating - The investment rating for the company is "Accumulate" with a target price not specified [6] Core Views - The company is positioned to benefit from the recovery in magnesium prices after a challenging period, with a significant increase in revenue driven by the sales of aluminum alloy extrusion products and intermediate alloys [1][5] - The company has a complete magnesium industry chain with production capacities expected to reach over 500,000 tons per year for both raw magnesium and magnesium alloys [2] - The demand for magnesium is anticipated to grow due to the trend towards lightweight materials in various applications, particularly in the automotive sector [5] Financial Performance - In the first half of 2025, the company achieved revenue of 4.352 billion yuan, a year-on-year increase of 6.78%, while the net profit attributable to the parent company was 64.1242 million yuan, a decrease of 46.47% year-on-year [1] - The gross profit margin for the first half of 2025 was 10.23%, down 1.62 percentage points year-on-year, but there are signs of recovery as magnesium prices begin to rise [4] - The company expects net profits for 2025-2027 to be 178 million, 346 million, and 519 million yuan respectively, reflecting an upward revision due to improving magnesium prices [5] Business Development - The company is expanding its magnesium alloy applications, achieving significant revenue from magnesium alloy and deep processing businesses, which accounted for 37.13% of total revenue [3] - Strategic partnerships with automotive manufacturers like Seres and Geely are being leveraged to enhance market presence and product development [3] - The company has begun mass production of large magnesium alloy integrated die-casting parts, marking a significant advancement in its product offerings [3] Market Position - The company is recognized as a leader in the magnesium sector, with strong competitive advantages in both raw magnesium and magnesium alloy deep processing [5] - The current market conditions, including low magnesium prices, are seen as an opportunity for the company to accelerate the introduction of magnesium in new application areas [5]

Core Insights - Baowu Magnesium Industry reported that as of August 29, 2025, the number of shareholders is 56,894 [2] Company Summary - The company actively engages with investors through interactive platforms, indicating a commitment to transparency and communication [2] - The reported shareholder count reflects the company's growth and potential interest from the investment community [2]