Core Viewpoint - Baowu Magnesium Industry (002182.SZ) highlights the advantages of magnesium alloy building templates, including lightweight, excellent surface demolding effects, and significant cost advantages [1] Group 1: Product Development - The company has improved the surface treatment process of magnesium alloy building templates and utilized direct supply of magnesium for die-casting, significantly reducing production and post-processing costs [1] - The current application ratio of magnesium-aluminum building templates is 50% each, promoting balanced usage [1] Group 2: Market Reception - The application of magnesium building templates has received unanimous praise from customers, particularly from frontline workers [1] Group 3: Future Prospects - The company plans to achieve export sales of magnesium alloy templates by the first half of 2025 and is gradually developing the Southeast Asian market [1]

Group 1: Magnesium Production Methods - The main method used domestically for magnesium production is the silicon thermal reduction method, which has a simpler process and lower investment costs [1] - The electrolytic method, which produces magnesium and chlorine gas from anhydrous magnesium chloride, is more complex and requires higher investment; however, companies are working to overcome technical challenges and reduce production costs [1] Group 2: Resource Availability - The company’s subsidiary, Chaohu Baomei, has a dolomite resource reserve of 90 million tons, currently in operation [2] - Another subsidiary, Wutai Baomei, has a dolomite resource reserve of 580 million tons, while the affiliated company Anhui Baomei holds 1.3 billion tons, which is not yet in production [2] - The ample mineral resources ensure stable raw material supply for magnesium and magnesium alloy production, laying a foundation for the company's full magnesium industry chain development [2] Group 3: Magnesium Alloy Applications - Magnesium alloy building templates are lightweight, have excellent surface release effects, and significant cost advantages; the company has improved surface treatment processes and reduced production costs [3] - The current application ratio of magnesium-aluminum building templates is 50% each, with positive feedback from customers, especially frontline workers [3] - The company has begun exporting magnesium alloy templates and is gradually developing the Southeast Asian market [3] Group 4: Automotive Industry Penetration - Magnesium prices have remained lower than aluminum prices, accelerating the penetration of magnesium in automotive lightweighting [4] - Die-casting factories are increasingly adopting magnesium die-casting, with many aluminum die-casting manufacturers expanding into magnesium [4] - Some automotive companies are using over 20 kg of magnesium alloy products per vehicle, with potential future usage reaching 50-100 kg as larger magnesium die-cast parts are integrated [4] Group 5: Strontium Products - Strontium is a rare alkaline earth metal that can enhance the strength, hardness, and corrosion resistance of alloys when added to aluminum and magnesium [5] - The company has an annual production capacity of 3,000 tons of metallic strontium, with an estimated annual output of about 2,500 tons [5]