Highlights

• JL MAG is a leading neodymium-iron-boron (NdFeB) magnet manufacturer.
• Record 2024 production volumes and strategic 2025 expansion plans targeting electric vehicles and robotics.
• The company generated RMB 6.763 billion in 2024 revenue.
• Strong market presence in NEV/auto parts, vehicle air conditioners, and wind power sectors.
• Demonstrates resilience through strategic supplier relationships, recycling initiatives.
• Diversification into emerging technology components like humanoid robot motors.

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JL MAG (opens in a new tab) is a scale leader in neodymium–iron–boron (NdFeB) magnets with tangible upstream links into China’s rare earth ecosystem—sourcing light rare earths from Baotou and heavy rare earths from Ganzhou—and formal strategic supply agreements with both China Northern Rare Earth Group and China Rare Earth Group. In 2024, the company delivered record production volumes but saw margins squeezed by a steep rare-earth price trough. Its 2025 plan doubles down on capacity expansion and next-generation “humanoid robot” components, offering high-growth potential alongside execution risk.

In 2024, JL MAG generated RMB 6.763 billion in revenue, up 1.13% year-on-year, but earnings fell 48.37% to RMB 291 million as NdPr prices declined sharply. Volumes, however, surged: about 29,300 tonnes of high-performance rare earth permanent magnet (REPM) blanks (+39.5% YoY) and 20,900 tonnes of finished products (+37.9% YoY), supporting management’s claim—though unaudited by third parties—that it is now the largest REPM producer in China and globally. The business mix shows strong exposure to key demand segments: RMB 3.314 billion from NEV/auto parts, RMB 1.540 billion from vehicle-grade air conditioners (VFACs), and RMB 497 million from wind power, with customers including most of the world’s top ten NEV makers, eight of the ten leading VFAC compressor manufacturers, and five of the top ten wind turbine producers.

JL MAG’s manufacturing base is split between Ganzhou in Jiangxi and Baotou in Inner Mongolia, mirroring the geographic distribution of China’s rare earth resources. Roughly 63% of its raw materials are supplied directly by the two national rare earth groups, locking in access to quota-controlled light and heavy rare earths. While it remains a downstream manufacturer, the company uses commercial mechanisms such as price-adjustment clauses, formula optimization, and disciplined inventory management to hedge raw material volatility. Recycling is a growing pillar of its supply chain strategy—2,575 tonnes of recycled feed, including scrap magnets, accounted for 30.4% of total rare earth consumption in 2024, a notable counter to perceptions that China lags in rare earth recycling capabilities.

For 2025, Huayuan Securities projects revenue of RMB 8.788 billion—around 30% YoY growth—while JL MAG’s own guidance suggests a range of RMB 8–9 billion, or USD 1.2–1.3 billion. First-quarter revenue of RMB 1.754 billion (+14% YoY) and half-year guidance of RMB 3.5 billion support the higher end of that forecast. Growth will be driven by the near-completion of its 40,000-tonne capacity target and the ongoing construction of a 20,000-tonne “Green Intelligent Manufacturing” project, which should lift total capacity to 60,000 tonnes by 2027. Strategic priorities include maintaining leadership in core REPM markets, executing the capacity build on schedule, and scaling humanoid-robot magnet component production from pilot batches to commercial volumes.

The company is also branching into low-altitude aircraft components and robot motor rotors through collaborations with international tech firms, and has acquired a 9.8% stake in Australia’s Hastings Rare Earths (opens in a new tab) to diversify feedstock sources. Risks remain material: continued volatility in rare earth prices, potential delays in expansion projects, exposure to policy shifts in China’s NEV and appliance sectors, overseas tariffs and FX swings, and the uncertainties of escalating trade frictions—particularly under renewed U.S.–China tensions.

Q1 2025 Summary & Outlook

JL MAG Rare-Earth posted a solid first quarter for 2025 (opens in a new tab), with revenue of RMB 1.754 billion, up 14.19% from the same period last year. Net profit attributable to shareholders surged 57.85% to RMB 160.5 million, and net profit excluding non-recurring items climbed an impressive 331% to RMB 105.9 million, indicating improved operational efficiency and underlying profitability. Basic and diluted EPS both came in at RMB 0.12, compared to RMB 0.08 in Q1 2024.

Operational momentum

Capacity utilization exceeded 90% as newly built production lines came fully online. The company produced ~8,770 t of REPM blanks and 6,600 t of finished products, with finished product sales volume at ~6,024 t—more than 40% higher than last year. NEV and automotive parts remained the top segment, contributing RMB 882 million (50.28% of total revenue), followed by variable-frequency air conditioners at RMB 513 million (29.25%). Export revenue reached RMB 312 million, or 17.76% of total sales, with RMB 122 million going to the U.S.

Cash flow and balance sheet

Operating cash flow improved to -RMB 350.4 million, a narrower outflow than the -RMB 615.2 million in Q1 2024, primarily due to lower procurement spending. Investing cash flow was -RMB 519.3 million, reflecting heavy spending on structured deposits and other investment products. Financing cash flow swung positive to RMB 309.3 million thanks to new liquidity loans. Total assets stood at RMB 13.78 billion, up 12% from year-end 2024, while equity attributable to shareholders rose 2.2% to RMB 7.17 billion.

Strategic positioning

JL MAG reinforced its role as a global REPM leader, serving major NEV, appliance, and wind power OEMs. The company continued advancing new product areas, including humanoid robot motor rotors and low-altitude aircraft components, with early-stage deliveries for robot applications. Its supply chain remains anchored by long-term relationships with China Northern Rare Earth Group and China Rare Earth Group, covering both light and heavy rare earth inputs, and it maintains a strong recycling program—key to mitigating raw material volatility.

On track for 2025 targets?

On track for RMB 8–9bn in 2025 makes assumptions: With Q1 revenue RMB 1.754bn and company guidance indicating H1 ~RMB 3.5bn, H2 must deliver ~RMB 5.0–5.5bn to hit RMB 8.5–9.0bn. That implies ~RMB 2.5–2.75bn per quarter—about 42–57% above Q1 run-rate. It’s possible given the capacity ramp and seasonal mix, but it requires a pronounced H2 acceleration. We’ll monitor.

JL Mag is expected to release its Q2 2025 earnings report on August 11th. 

REEx’s view

JL MAG’s combination of production scale, dual-hub location, strategic supplier ties, and an increasingly diversified application base positions it uniquely in the global magnet market. Yet, its sharp profit compression in 2024 (despite improvement so far in 2025) underscores the sector’s sensitivity to raw material price regimes. Delivering on the 2025 plan (we are just over halfway through) will require disciplined execution, stable supply conditions, and a measure of good fortune in the geopolitical and commodity markets. For investors, tracking quarterly performance, capacity milestones, and rare earth price trends will be critical to gauging whether JL MAG can convert its ambitious growth targets into sustained shareholder value.