JL Mag Rare-Earth (300748) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue rose 32.57% YoY to RMB 4.65bn; attributable net income increased 51.58% to RMB 462.2m, while adjusted net income excluding non-recurring items grew 70.31% to RMB 398.5m.

• Core high-performance NdFeB magnet sales volumes remained stable; growth came from applications including NEVs and robotics, alongside stronger margins and operating cash flow.

• Manufacturing is organized across four plants in Ganzhou, Baotou and Ningbo, with current annual magnet capacity of 40,000 tonnes and 60,000 tonnes targeted by end-2027.

Financial highlights

• H1 revenue was RMB 4.649bn, up 32.57% YoY; Q2 revenue reached RMB 2.613bn, up 28.37% QoQ.

• Attributable net income was RMB 462.2m, up 51.58% YoY; adjusted net income excluding non-recurring items was RMB 398.5m, up 70.31%.

• Operating profit was RMB 542.3m versus RMB 350.0m YoY; gross margin was 21.73%, up 5.34 percentage points from 16.39%.

• Operating cash flow was RMB 1.206bn versus an outflow of RMB 549.1m in H1 2025; management attributed the improvement mainly to faster receivables turnover and collections.

• H1 R&D investment was RMB 248.2m, up 46.16% YoY and equal to 5.34% of revenue.

Outlook and guidance

• Annual magnet capacity is planned to reach 60,000 tonnes by end-2027, up from 40,000 tonnes currently; the 20,000-tonne Baotou project was substantially complete in its main construction work, with equipment installation and capacity ramp-up planned in stages.

• A global technology customer awarded a humanoid-robot motor-rotor program; production preparation is underway, with mass-production readiness progressing to customer schedules.

• Market opportunities cited include robotics, industrial automation, NEVs, wind power and energy-efficient motors; BNEF forecast global NEV passenger-car sales of 23.3m for 2026, up 11%.