Core Viewpoint - The company, Zhenghai Magnetic Materials, announced significant growth in its product lines and technology coverage in a recent report, indicating strong performance and future potential in the magnetic materials industry [1] Group 1: Technology Coverage - In the first half of 2025, the coverage rate of products related to the Crystal Grain Optimization Technology (TOPS) is expected to remain above 90% [1] - The coverage rate of products related to the Diffusion Technology (THRED) is approximately 80% [1] Group 2: Production and Shipment Growth - The production of non-heavy rare earth magnets has increased by 55% year-on-year [1] - The shipment volume of ultra-light rare earth magnets has surged by 82% year-on-year [1]

Group 1: R&D and Product Development - The company has a total of approximately 302 authorized and pending invention patents, representing a 47% year-on-year increase, achieving international advanced technical strength [1] - In 2024, the coverage of products related to grain optimization technology (TOPS) reached 97%, while diffusion technology (THRED) exceeded 80%; the output of non-rare earth magnets increased by 50% year-on-year [1][2] - The company’s products are highly compatible with core components for humanoid robots, and small batch supplies have been delivered to downstream customers [2] Group 2: Sales and Market Performance - The company’s product sales have achieved continuous growth for seven consecutive years, with sales in the energy-saving and new energy vehicle markets increasing by 25% and 28% respectively [2] - The pricing model is based on cost-plus, considering production difficulty, and the company adopts a sales-driven production management model [1][2] Group 3: Product Advantages - The company’s products feature low rare earth content, low weight loss, high consistency, high working temperature, and high coating reliability, maintaining world-leading performance [3] - Continuous development of series products such as "non-rare earth magnets," "low rare earth magnets," and "ultra-light rare earth magnets" ensures competitive performance, quality stability, and cost-effectiveness [3] Group 4: Procurement and Supply Chain - The procurement model combines strategic and dynamic procurement, ensuring stable supply of raw materials through established channels and a comprehensive supplier management system [3] - The company formulates raw material procurement plans based on production requirements, ensuring a stable supply through bidding or price comparison [3] Group 5: Market Competitiveness and Strategy - The company has a 100% coverage rate with the top 10 international automotive brands and top 5 domestic brands in the energy-saving and new energy vehicle sectors [4] - The development strategy focuses on technological innovation, continuous improvement, and systematic management to achieve the vision of becoming a leader in the global permanent magnet materials industry [4]