Core Viewpoint - The company, Jinli Permanent Magnet (300748.SZ), is actively expanding its production capabilities in rare earth materials and has established strategic partnerships with major suppliers to secure its raw material needs. Group 1: Production and Supply Chain - The company has built large magnetic material factories in key production areas for heavy rare earths in Ganzhou, Jiangxi, and light rare earths in Baotou, Inner Mongolia, as well as in Ningbo, Zhejiang, which is a major cluster for magnetic materials [1] - The company has established long-term strategic partnerships with major rare earth raw material suppliers, including Northern Rare Earth Group and China Rare Earth Group, with approximately 70% of its procurement amount in the first half of 2025 coming from these suppliers [1] Group 2: Inventory and Pricing Strategy - The company closely monitors the price trends of rare earth raw materials and adjusts its inventory and procurement strategies based on order conditions [1] - As of June 30, 2025, the company's raw material inventory was 1.158 billion yuan, an increase of 107.02% compared to 559 million yuan at the end of 2024 [1] Group 3: Recycling and Sustainability - The company has established a rare earth recycling system and holds a 51% stake in Yinhai New Materials, which has been consolidated into its financial statements, promoting an increase in the proportion of green recycled materials in its products to meet client demands for recycled rare earth raw materials [1]

Core Viewpoint - The company employs a "cost-plus" pricing model, which may experience temporary impacts on gross margins due to rapid fluctuations in raw material prices, but can maintain stability through gradual price adjustments over time [1] Pricing Strategy - The company utilizes a "cost-plus" pricing model, which allows for gradual price transmission to stabilize gross margins in response to long-term trends in raw material prices [1] Supplier Relationships - The company has established long-term stable partnerships with various types of raw material suppliers, ensuring a steady supply of materials from its headquarters in Baotou, Inner Mongolia, a major source of rare earth materials in China [1] Procurement and Inventory Management - The company has signed long-term agreements with suppliers to guarantee stable raw material supply and closely monitors market dynamics and policy changes to predict raw material price trends [1] Operational Measures - The company implements several measures to mitigate the adverse effects of raw material price fluctuations on its operational performance, including advance procurement of rare earth materials based on existing orders, establishing price adjustment mechanisms with customers, optimizing formulations, and improving processes [1]

Core Viewpoint - The establishment of the joint research and development base for rare earth bio-metallurgy in Baotou represents a significant achievement in the integration of industry, academia, and research, aimed at enhancing the sustainable development of China's rare earth industry [1][2]. Group 1: Joint Research and Development Base - The joint research base was officially inaugurated on June 7, involving top universities and leading companies in the rare earth sector, marking a key milestone in the construction of "two rare earth bases" [1]. - The base focuses on developing rare earth bio-separation technology using advanced methods such as microbial synthesis, aiming to efficiently leach, enrich, and separate rare earth elements from tailings and urban waste [1]. Group 2: Technological Innovations - The project utilizes green bio-metallurgy technology developed by Tsinghua University, which addresses pollution issues associated with chemical methods and significantly improves the efficiency of rare earth resource recovery and product value [2]. - The current demonstration lines for processing 10 tons of rare earth tailings and tons of rare earth waste have been completed and validated [1]. Group 3: Future Directions - The next steps involve focusing on key technological breakthroughs and the transformation of research results, particularly in the comprehensive utilization of rare earth tailings and pilot testing [1].