JL MAG Rare-Earth (06680) issues profit warning, expecting a decrease of 42% to 52% in the net profit attributable to shareholders for the year 2024 to approximately 2.71 billion to 3.27 billion yuan compared to the previous year.

Jl Mag Rare-Earth (06680) announced that the group expects the net profit attributable to the shareholders of the listed company for the year ending December 31, 2024 to be approximately RMB 271 million to 327 million, a decrease of 42% - 52% compared to the previous year. The announcement stated that in 2024, the company made efforts to overcome the adverse factors of the continuous decline in rare earth raw material prices since 2022, actively expanding its business, and striving to release capacity according to the plan. The capacity utilization rate exceeded 90%, the production and sales volume of high-performance magnetic materials products reached the highest level in the company's history, and the annual operating income is expected to slightly increase compared to the same period last year. Due to the significant year-on-year decrease in rare earth raw material prices, for example, the average price of metal praseodymium-neodymium (including tax) in 2024 was RMB 490,000/ton from January to December, a decrease of approximately 25% compared to the average price of RMB 650,000/ton in the same period in 2023. The change in raw material costs lagged behind, coupled with the impact of intensified industry competition and other adverse factors, leading to a decrease in the company's net profit. In addition, in 2024, the company's Ningbo factory and Baotou factory Phase II project increased personnel reserves, pre-job training, and investment in auxiliary materials, making a lot of preparations for production, leading to a temporary increase in the product organization cost and management expenses of the subsidiary companies mentioned above, which had a certain impact on the net profit.