Production and Market Trends - National magnesium production from January to October 2025 reached approximately 818,000 tons, a year-on-year increase of 4.52% [1] - In October 2025, magnesium production was 91,200 tons, with a month-on-month growth of 1.9% and a year-on-year increase of 4.52% [1] - The demand for magnesium alloys in the electric bicycle sector is expected to rise significantly due to new safety standards, with major companies like Aima, Yadea, and Niu adopting magnesium alloys for components [2] Company Operations and Product Lines - The company operates in multiple sectors including magnesium materials, magnesium products, aluminum products, mineral products, and construction templates [1] - The company has established semi-solid magnesium alloy casting lines with capacities of 300 tons, 1,300 tons, 1,500 tons, and 3,500 tons, producing components for automotive and drone applications [3] Future Plans and Market Strategy - Over the next 3 to 5 years, the company aims to enhance production capacity across various bases, focusing on magnesium materials to lead industry development [4] - The company plans to increase the penetration of magnesium metal materials in the automotive market, targeting components like steering wheels and instrument panel supports [4] - A special task force has been established to explore opportunities in low-altitude economy, humanoid robots, electric bicycles, and magnesium hydrogen storage [4] - The company is poised to capitalize on the growing market for magnesium alloy die-casting, aiming for high-quality development and increased market share [4] Compliance and Communication - The company ensured compliance with information disclosure regulations, maintaining the accuracy and timeliness of disclosed information during investor communications [5]

Resource Overview - The company has significant white marble resources: 0.9 billion tons at Chaohu Baomei and 5.8 billion tons at Wutai Baomei, with an additional 1.3 billion tons held by Anhui Baomei, which is not yet operational [3][4]. Magnesium Production Advantages - The company utilizes vertical furnace magnesium smelting technology, recognized in the national "14th Five-Year Plan" for its low energy consumption, high production efficiency, small footprint, low labor costs, and high automation [3][4]. Market Applications - Following the new national standards in 2024, the electric bicycle industry is rapidly adopting magnesium alloys to replace plastic components, with significant growth expected during the "15th Five-Year Plan" period [3][4]. - Major electric vehicle manufacturers are already using magnesium alloy components, leading to weight reduction, improved range, and enhanced shock absorption [3][4]. Future Plans - Over the next 3 to 5 years, the company aims to expand its scale and accelerate production across multiple bases, focusing on magnesium materials, particularly in the automotive sector [3][4]. - The company plans to increase the penetration of magnesium metal materials in various automotive components, including steering wheels and instrument panel supports [3][4]. Market Conditions - Magnesium prices have remained below aluminum prices, presenting unprecedented growth opportunities for magnesium alloy die-casting components [4]. Investor Relations Compliance - The company ensures compliance with information disclosure regulations, maintaining transparency and accuracy in communications with investors [4].

Core Viewpoint - The company held an online performance briefing for the 2024 fiscal year, achieving a high interaction rate with investors, answering 87 out of 88 questions posed during the session, indicating strong investor engagement and transparency [1]. Group 1: Business Operations and Growth - The company is focusing on expanding its magnesium alloy deep processing business, particularly in automotive parts, electric bicycle components, and construction templates, with significant growth expected in these areas [2]. - The company has outlined specific measures to address market competition, including upgrading magnesium smelting technology, optimizing the industrial chain layout, and promoting magnesium application technology innovation [5][6]. - The company currently has a production capacity of 100,000 tons of raw magnesium and 200,000 tons of magnesium alloy, with plans to increase capacity to 500,000 tons [43][46]. Group 2: Market Position and Strategy - The company is positioned as a core platform for the magnesium industry under Baowu Steel Group, with a commitment to avoid competition with its subsidiaries through asset restructuring and other legal means [3][4]. - The company is actively participating in international exhibitions and industry conferences to showcase its technological capabilities and expand its international customer base [5]. - The company is leveraging the current low magnesium prices to promote its products, enhancing the attractiveness of magnesium applications in various sectors [7]. Group 3: Financial Management and Investor Relations - The company has emphasized the importance of market value management, taking various measures to communicate its investment value to the market and protect the interests of minority shareholders [12][20]. - The company has not yet established a specific stock repurchase plan, despite ongoing discussions about its market value and stock price performance [17][27]. - The company reported a nearly 30% increase in accounts receivable, primarily due to rising revenues, indicating a positive sales trend [39].