JL Mag Rare-Earth (300748) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue rose 4.33% YoY to RMB3.51bn; attributable net profit increased 154.81% to RMB304.95m, supported by stronger margins and non-recurring gains.

• Core magnetic-material sales expanded, led by automotive and variable-frequency air-conditioning demand; operating cash flow turned negative as inventory and procurement increased.

Financial highlights

• Revenue RMB3.507bn, up 4.33% YoY; core business revenue RMB3.226bn, up 11.08%.

• Attributable net profit RMB304.95m, up 154.81%; excluding non-recurring items, attributable net profit was RMB234.01m, up 588.18%.

• Operating profit RMB350.04m vs. RMB127.15m in H1 2024; net profit RMB309.45m vs. RMB120.75m.

• Operating cash flow was negative RMB549.06m vs. positive RMB330.76m; higher material purchases and inventory contributed to the decline.

• Non-recurring government grants contributed RMB79.21m to H1 income.

Outlook and guidance

• Capacity plan targets 60,000 tonnes of high-performance rare-earth permanent-magnet materials by 2027, including a new 20,000-tonne green intelligent-manufacturing project launched in Jan. 2025; capacity plans are not earnings forecasts.

• Small-batch deliveries of humanoid-robot motor rotors and low-altitude aircraft products; dedicated facilities, equipment and teams are being prepared for scale production.

• Global high-performance rare-earth magnet consumption is forecast to reach 227,100 tonnes in 2028, with a 17.2% CAGR for 2023–2028, according to Frost & Sullivan.