Jl Mag Rare-earth Co., Ltd. Class A · SZSE:300748
Jl Mag Rare-earth Co., Ltd. Class A — Q1 2024 Earnings Presentation
23 slides from Jl Mag Rare-earth Co., Ltd. Class A's earnings presentation, April 2024
Slide 1: 2024Q1 Results Update
2024Q1 Results Update Stock Code: 300748.SZ / 06680.HK April 2024
Slide 2: Disclaimer
Disclaimer 用稀土创造美好生活 THIS DOCUMENT IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO BE, AND SHALL NOT BE CONSTRUED AS, AN OFFER, INDUCEMENT, INVITATION, SOLICITATION, COMMITMENT OR ADVERTISEMENT WITH RESPECT TO THE PURCHASE, SUBSCRIPTION OR SALE OF ANY SECURITY AND NO PART OF IT SHALL FORM
Slide 3: Company Overview
Company Overview
Slide 4: Company Overview
Company Overview 用稀土创造美好生活 ◼ JL MAG is a high-tech enterprise engaging in the R&D, production and sales of high-performance NdFeB Permanent Magnets (PMs), magnetic components and the recycling and comprehensive utilization of Rare Earth Permanent Magnets (REPMs), and a leading supplier of high-perfo
Slide 5: Company Products
Company Products 用稀土创造美好生活 NEVs and Automotive Parts PM Wind Turbine Generators Energy-saving VFACs ◼ The use of REPMs in NEV drive motors, ABS ◼ REPMs are used in PM wind turbines, which ◼ Using REPMs in the motors of household (anti-lock braking system), EPS (electronic feature simple structure, l
Slide 6: Production Bases and Production Workflow
Production Bases and Production Workflow 用稀土创造美好生活 ◼ The company’s REPM blank production capacity has reached 23,000 tons annually. The Baotou Phase II, Ningbo Project, and Ganzhou II Project are currently under construction as scheduled and are expected to commence operation progressively in 2024 ◼
Slide 7: Top Shareholders of the Company
Top 10 Shareholders of the Company 用稀土创造美好生活 Top Ten Shareholders (As of March 31, 2024) Name Shareholder Shareholding Type Percentage Jiangxi Ruide Venture Investment Co., Ltd. Domestic Non-state 28.79% Owned Legal Person HKSCC NOMINEES LIMITED Overseas Legal Person 14.93% Ganzhou Industrial Invest
Slide 8: Development History
Development History 用稀土创造美好生活 2009.06 2011.12 2013.10 2018.09 2021.01 2022.06 Started trial production Became a supplier for Was awarded the Listed on the Issued 15,725,922 Awarded the first of REPMs and the Shanghai Haili's energy- title of “Key High-tech ChiNext Market of A-shares to Certificate o
Slide 9: Operation Updates
Operation Updates
Slide 10: Sufficient Orders, with Newly Released Capacity
Sufficient Orders, with Newly Released Capacity 用稀土创造美好生活 ◼ In 2024Q1, despite declining RE raw material prices and intensified industry competition, the Company secured sufficient orders from downstream clients and progressively commenced the construction of new projects ◼ The Company's new capacit
Slide 11: Higher Inventory Cost under Weighted Average Method Resulted in Lower GPM
Higher Inventory Cost under Weighted Average Method Resulted in Lower GPM 用稀土创造美好生活 ◼ In 2024Q1, the gross margin was 10.04%, down 5.2 percentage points from 15.24% in the same period of 2023 ◼ On the one hand, major rare earth raw material priced continued declining in 2024Q1. The average price of
Slide 12: Company Strategy
Company Strategy
Slide 13: Ramp-up Production Capacity of REPMs
Ramp-up Production Capacity of REPMs 用稀土创造美好生活 Expanding Production Capacity Meets the Increasing Downstream Demand By the end of 2023, the Company's total annual production capacity of high-performance NdFeB PMs blanks amounts to 23,000 tons, with a capacity utilization 1 rate exceeding 90% The Bao
Slide 14: Continuously Invest in R&D
Continuously Invest in R&D 用稀土创造美好生活 ◼ Further invest in R&D/innovation to enhance production technology, enrich existing product portfolio, and foster cooperation with downstream industry leaders Continue R&D projects to solidify the Company's Maintain the Company's technological edge in the existi
Slide 15: Expand Global Footprints
Expand Global Footprints 用稀土创造美好生活 ◼ Due to REPMs’ energy-saving advantage and robust performance, we are experiencing a robust demand growth of REPMs globally, especially under the backdrop of global initiative of achieving carbon neutrality ◼ JL MAG has subsidiaries in Hong Kong SAR, Europe, Japan
Slide 16: Commit to Social Responsibility and Sustainable Development
Commit to Social Responsibility and Sustainable Development 用稀土创造美好生活 ◼ The Company is dedicated to the global mission of achieving carbon neutrality and has taken initiatives including constructing photovoltaic power stations, adopting lean production, saving energy in production, innovating in new
Slide 17: Q&A
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Slide 18: Appendix: Industry Overview
Appendix: Industry Overview
Slide 19: Broad Applications and Rapid Demand Growth of High-Performance REPMs
Broad Applications and Rapid Demand Growth of High-Performance REPMs 用稀土创造美好生活 ◼ According to the report by Frost & Sullivan, over 50% of global electricity consumption is attributed to motors. Compared to traditional motors, REPMs motors can save up to 15% to 20% of energy. Furthermore, the applica
Slide 20: NEVs Sector
NEVs Sector 用稀土创造美好生活 ◼ Currently, numerous global automakers have announced their plans for NEVs and are actively expanding their NEVs production capacities. High-performance NdFeB PMs, as core components of NEV drive motors, are expected to continue experiencing strong demand in the future ◼ Accor
Slide 21: Energy-saving VAFCs Sector
Energy-saving VAFCs Sector 用稀土创造美好生活 ◼ With the official implementation of the "Room Air Conditioners Energy Efficiency Limits and Grades" on July 1, 2020, fixed-frequency air conditioning have been phased out, and high-efficiency VFACs have become the market mainstream. High-performance NdFeB magne
Slide 22: Wind Power Sector
Wind Power Sector 用稀土创造美好生活 ◼ In the future, as turbine units become larger, especially with the rapid increase in the proportion of offshore wind power installations, the market share of PM motors will further increase, which will in turn further promote the growth in consumption of high-performanc
Slide 23: Robots and Industrial Servo Motors Sector
Robots and Industrial Servo Motors Sector 用稀土创造美好生活 ◼ In October 2023, the Ministry of Industry and Information Technology issued the “Guidelines for the Innovative Development of Humanoid Robots”, elevating the humanoid robot industry to a national level for the first time. The guidelines aim to es