Group 1: Company Strategy and Market Position - The company will continue to focus on R&D, production, and sales of high-performance NdFeB permanent magnet materials, maintaining its leading position in wind power generation, energy-saving variable frequency air conditioning, new energy vehicles, and automotive components [2][3] - The company aims to expand into the 3C market, optimize product and customer structures, and reduce operational risks [3] Group 2: Fundraising and Production Capacity - In 2018, the company raised 224 million yuan through its IPO to establish a new production line with an annual capacity of 1,300 tons of high-performance magnetic steel, which began production in 2019 [3] - As of the end of 2019, the company had a production capacity of 10,000 tons, with plans to increase capacity by an additional 1,500 tons through convertible bond projects and 3,000 tons through future fundraising efforts [3][4] Group 3: Financial Performance - In Q1 2020, the company achieved a revenue of 413.13 million yuan, a year-on-year increase of 15.12%, and a net profit attributable to shareholders of 35.76 million yuan, up 35.68% [4] - The net profit after deducting non-recurring gains and losses was 35.91 million yuan, reflecting a significant growth of 59.63% year-on-year [4] Group 4: Risk Management - The company has implemented measures to stabilize the supply of rare earth materials and mitigate price fluctuations, including a production-sales model based on order status and establishing pricing mechanisms with key customers [4][5] - Strategic partnerships with leading rare earth companies ensure a stable supply of materials, particularly heavy rare earths [5] Group 5: Non-Public Offering - The company plans to raise up to 718 million yuan through a non-public offering, with 503 million yuan allocated for a project to produce 3,000 tons of high-end magnetic materials for new energy vehicles and the 3C sector [5][6]

Group 1: Company Strategy and Goals - The company aims to maintain its leading position in sectors such as wind power generation, energy-efficient variable frequency air conditioning, new energy vehicles, and smart manufacturing while expanding into the 3C market [3] - The focus will be on increasing R&D investment and implementing lean management to enhance profitability and industry standing [3] Group 2: Stock Incentive Plan - The company approved a stock incentive plan on August 26, 2020, granting 7.837 million restricted stocks at a price of 21.62 CNY per share, representing approximately 1.90% of the total share capital as of June 30, 2020 [4] - Performance targets for net profit growth relative to 2019 are set at a minimum of 30% for 2020, 60% for 2021, and 90% for 2022 [4] Group 3: Production Capacity - As of mid-2020, the company has a production capacity of 12,000 tons per year for its raw materials [5] - Plans are in place to raise funds for a project aimed at producing 3,000 tons of high-end magnetic materials for new energy vehicles and the 3C sector [5] Group 4: Business Performance - In the first half of 2020, revenue from energy-efficient variable frequency air conditioning reached 339 million CNY, a 72.84% increase year-on-year [5] - Revenue from the new energy vehicle sector amounted to 127 million CNY, reflecting a 27.76% year-on-year growth [5]

Group 1: Company Overview - Jiangxi Jinli Permanent Magnet Technology Co., Ltd. specializes in the R&D, production, and sales of high-performance NdFeB permanent magnet materials, serving as a leading supplier in the new energy and energy-saving environmental protection sectors [2][4]. Group 2: Key Application Areas and Major Clients - Wind Power: Permanent magnet direct-drive wind turbines with major clients including Goldwind Technology, Siemens-Gamesa, and CRRC [5]. - New Energy Vehicles: Applications in drive motors and ABS systems, with key customers like BYD and Bosch Group [5]. - Energy-saving Variable Frequency Air Conditioning: Used in air conditioning compressors, serving clients such as Mitsubishi and Midea [5]. - Robotics and Intelligent Manufacturing: Serves the servo motor market, with Bosch Rexroth as a primary client [5]. - Energy-saving Elevators: Supplies traction machines for elevators, with KONE as a major customer [5]. Group 3: Technological Advancements and Development - The company focuses on customer-oriented technology upgrades and product differentiation, leveraging its expertise in NdFeB materials to assist clients in product design and performance optimization [6][7]. - It possesses core technologies in formulation and production processes, including grain boundary penetration technology and high corrosion-resistant coatings, maintaining strong competitiveness in the industry [7]. Group 4: Response to Raw Material Price Fluctuations - The company does not own rare earth mines or engage in related separation and smelting services. To mitigate risks from rare earth price fluctuations, it employs a sales-based production model, pre-purchasing materials based on orders [7]. - It has established pricing mechanisms with key clients and maintains a safety stock of rare earth materials based on market trends [7]. - Strategic partnerships with leading companies like Ganzhou Rare Earth Group ensure a stable long-term supply of rare earth materials [7].

Sales Revenue Distribution - In the first half of 2018, the company's total sales revenue was ¥61,247.12 million, with the following distribution: - Energy-saving variable frequency air conditioning: ¥21,119.73 million (34.48%) [4] - Wind power generation: ¥16,681.43 million (27.24%) [4] - New energy vehicles and auto parts: ¥13,183.87 million (21.53%) [4] - Robotics and intelligent manufacturing: ¥3,967.15 million (6.48%) [4] - Energy-saving elevators: ¥2,006.77 million (3.28%) [4] - Others: ¥4,288.16 million (7.00%) [4] Production Capacity and Future Plans - The designed production capacity for NdFeB magnetic materials in 2017 was 6,000 tons, with ongoing projects to add 1,000 tons and 1,300 tons of high-performance magnetic steel production capacity [5][9] - By 2020, the demand for high-performance NdFeB materials in the new energy vehicle sector is expected to exceed that of the wind power sector, with an estimated annual compound growth rate of 16% from 2017 to 2020, increasing from 12,800 tons to 20,000 tons [6] Market Trends and Growth - The non-wind power sector's sales revenue from 2015 to 2017 had a compound annual growth rate of 75.11%, with specific sectors showing significant growth: - New energy vehicles and auto parts: 63.66% [8] - Energy-saving variable frequency air conditioning: 180.25% [8] - Robotics and intelligent manufacturing: 23.08% [8] - Energy-saving elevators: 32.68% [8] - The company anticipates that by 2018, sales revenue will continue to grow significantly, primarily driven by non-wind power sectors, with sales from wind power clients dropping below 30% [8] Risk Management and Supply Stability - The company has implemented measures to mitigate risks from fluctuations in rare earth material prices, including: - Adopting a production-sales model based on orders to manage procurement [6] - Establishing pricing mechanisms with key clients [6] - Maintaining a safety stock of 3-4 months of required materials [6] - Partnerships with major suppliers like Ganzhou Rare Earth Group and Sichuan Jiangtong Rare Earth ensure stable supply [7] Technological Development and Innovation - The company focuses on customer-oriented technology upgrades and product differentiation, participating in client product design to enhance performance and reduce costs [9] - Plans for the next three years include expanding production capacity, automating existing lines, and establishing a national-level technology center to enhance R&D capabilities [9]