Research Brief | Jinli Permanent Magnet Hosts 118 Institutions for Research; Net Profit in 2025 Expected to Increase by 142% Year-over-Year; Embodied Robotics Business Begins Small Batch Delivery

Performance Briefing Basic Information

Jiangxi Jinli Permanent Magnet Technology Co., Ltd. (hereinafter referred to as “Jinli Permanent Magnet”) held a performance briefing on March 26, 2026, in the form of an online meeting, attracting participation from 118 institutional investors, including CITIC Lyon Securities, JPMorgan Chase, Goldman Sachs (Asia), UBS AG, and others. The company’s Chief Financial Officer Xie Hui, Secretary of the Board Lai Xunlong, and Director of Investor Relations Liu Xuyang attended the meeting to provide detailed answers to investors’ concerns regarding the 2025 performance, business layout, capacity planning, and other issues.

2025 Performance: Net Profit Surges by 142%, Gross Margin Significantly Increases

During the meeting, the company disclosed its performance data for 2025, indicating that despite intensified industry competition, the company achieved dual growth in revenue and profit through technological innovation, market expansion, and lean management. Specifically, the total annual operating revenue reached 7.718 billion yuan, a year-on-year increase of 14.11%; the main business income was 7.028 billion yuan, a year-on-year increase of 19.00%. The net profit attributable to shareholders of the listed company was 706 million yuan, an impressive year-on-year increase of 142.44%; the net profit after deducting the impact of share-based payments was 804 million yuan, up 173.58%; the net profit after deducting non-recurring gains and losses was 620 million yuan, a staggering year-on-year increase of 264.00%.

In terms of profitability, the company’s overall gross margin reached 21.18%, up 10.05 percentage points from the previous year’s 11.13%, primarily benefiting from organizational optimization, adjustments in raw material inventory strategies, and product structure upgrades. Notably, the income statement includes share-based incentive compensation expenses and convertible bond financial expenses totaling approximately 107 million yuan, of which only 5.11 million yuan will require actual cash outflow in the future, while the overall operating cash flow remains healthy.

Core Business Areas: Growth in New Energy Vehicles, Robots, and Other Fields

As a leader in the global rare earth permanent magnet industry, Jinli Permanent Magnet achieved new highs in production and sales in 2025, with a rough output of magnetic materials of approximately 34,400 tons, a year-on-year increase of 17.31%; finished magnetic material sales of approximately 25,300 tons, a year-on-year increase of 21.25%. The performance in various application areas is as follows:

Among them, the new energy vehicle sector performed outstandingly, with sales revenue of 3.941 billion yuan, a year-on-year increase of 30.31%, and the ability to assemble approximately 6.5 million new energy passenger vehicles, covering the top ten global new energy vehicle manufacturers. The robot and industrial servo motor sector experienced the fastest growth, generating revenue of 300 million yuan, a year-on-year increase of 45.19%, becoming a new growth engine for the company.

Capacity and Strategic Layout: Baotou Phase III Project Progressing, Small Batch Delivery of Embodied Robot Business

In terms of capacity, the company had established an annual production capacity of 40,000 tons of magnetic materials by the end of 2025, with an actual production capacity of 38,000 tons for the year and a capacity utilization rate exceeding 90%. Additionally, the company launched the Baotou Phase III “Annual Production of 20,000 Tons of High-Performance Rare Earth Permanent Magnet Materials Green Intelligent Manufacturing Project” in January 2025, with some project components already passing acceptance; capacity will be released in batches, and the total magnetic material capacity is expected to reach 60,000 tons per year by the end of 2027.

In emerging business layouts, significant progress has been made in the field of embodied robots. The company has collaborated with internationally renowned technology companies to develop motor rotors and has established automated production lines, with small batches of products already delivered. Motor rotors, as key components of embodied robots, are closer to the customer assembly end compared to traditional magnetic material businesses, possessing the potential to enhance product added value and structural diversification, with large-scale mass production expected to gradually reflect downstream customer production schedules.

Finance and Shareholder Returns: High Dividend Ratio, Sufficient Cash Reserves

In terms of shareholder returns, Jinli Permanent Magnet continues to practice long-termism, proposing to distribute a cash dividend of 2.2 yuan (including tax) for every 10 shares to all shareholders for the fiscal year 2025, with an expected total dividend amount of 302 million yuan. The total cash dividend for the first half and the full year of 2025 reached 550 million yuan, a year-on-year increase of 103%, with a cash dividend ratio of approximately 78%. Furthermore, the company repurchased approximately 3.67 million A-share shares during the year, amounting to 142 million yuan, and completed the cancellation, with the cumulative total of cash dividends and share repurchases reaching 692 million yuan, accounting for 98% of this year’s net profit attributable to shareholders. Since its listing in 2018, the company has cumulatively distributed cash dividends exceeding 1.47 billion yuan, with a dividend ratio exceeding 50%.

In terms of cash reserves, as of the end of 2025, the company held cash and cash equivalents of 3.357 billion yuan, large deposits maturing within one year of 769 million yuan, and large deposits maturing over one year of 663 million yuan, with a sound financial structure and strong financing capability, providing robust support for future development.

In terms of exports, in 2025, the overseas sales revenue was 1.270 billion yuan, a year-on-year increase of 3.92%, including exports to the United States of 501 million yuan, a year-on-year increase of 39.80%. The company has obtained an export license issued by the national competent authority and has become one of the first enterprises with a general license, ensuring compliant business operations.

Regarding raw material supply, the company has established long-term strategic cooperation with Northern Rare Earth Group and China Rare Earth Group, with purchases from these two companies accounting for 72% of the total procurement amount in 2025. At the same time, by holding shares in Yinhai New Material, the company is laying out rare earth recycling, with a cumulative recovery of 3,681 tons of rare earth raw materials in 2025, forming a diversified resource guarantee system.

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