Core Viewpoint - The company announced advancements in the development of heavy rare earth-free magnetic materials, highlighting two main technological pathways for achieving high-performance materials [1] Group 1: Technological Pathways - The first pathway involves formula design and process optimization to develop high-performance heavy rare earth-free magnetic materials [1] - The second pathway utilizes grain boundary diffusion technology to infiltrate elements such as praseodymium, neodymium, copper, and gallium into the surface of magnetic materials to achieve high performance [1] Group 2: Product Development - The company has successfully achieved mass production of the N50SH material, while the N52SH material is currently undergoing small batch verification [1] - Future research and development efforts will focus on other high-performance grades of heavy rare earth-free materials to continuously promote product technology upgrades [1]

Group 1: Market Dynamics and Material Performance - The potential for samarium iron nitrogen and cerium iron boron to replace neodymium iron boron is limited due to high prices of praseodymium and neodymium. Current samarium iron nitrogen on the market is primarily adhesive type, with sintered types still in R&D, making it less competitive [2][3] - In high-end applications such as consumer electronics and new energy vehicles, neodymium iron boron remains irreplaceable due to its superior performance characteristics, despite the introduction of lower-cost alternatives [3] Group 2: Production Capacity and Customization - The company’s products are highly customized and non-standardized, making it impossible to directly convert production capacity into neodymium iron boron equivalents. Capacity planning is based on specific order requirements and product characteristics [3][4] - The company has achieved small-scale delivery of magnetic materials for humanoid robots, which require high precision and dynamic response, but the overall impact on company performance is currently minimal [3] Group 3: Development of Rare Earth Alternatives - Two main approaches exist for reducing the content of regulated elements like dysprosium and terbium in magnetic materials: one through formulation design and process optimization, and the other via grain boundary diffusion techniques [4] - The company has successfully mass-produced N50SH materials and is in the small-scale validation phase for N52SH materials, with ongoing R&D for other high-performance rare earth-free materials [4]