New Stock News | Ningbo Yunsheng (600366.SH) submits application to Hong Kong Stock Exchange, is one of the world's largest manufacturers of rare earth permanent magnets.

According to the disclosure by the Hong Kong Stock Exchange on June 15th, Ningbo Yunsheng Co., Ltd. (referred to as Ningbo Yunsheng (600366.SH)) has submitted an application to the Hong Kong Stock Exchange for a listing on the main board, with CICC as the sole sponsor. Company Profile The prospectus shows that Ningbo Yunsheng is a supplier of neodymium-iron-boron permanent magnets. According to Zhuisi Consulting, the company is one of the few in China that possesses the complete preparation technology for neodymium-iron-boron permanent magnets and covers a wide range of downstream application markets. Through independent research and development and improvement of the entire production process, the company has mastered advanced preparation technology, significantly improving the quality and production capacity of magnetic materials. As of the last feasible date, the company has an annual production capacity of 26,000 tons of neodymium-iron-boron permanent magnet billets and is one of the largest rare earth permanent magnet manufacturers in the world. The company continues to focus on research and development by deepening its technical capabilities through core technologies such as high-purity magnets, grain refinement, boundary optimization, boundary diffusion, selective diffusion, magnet assembly, and regenerated magnets. The company's sintered neodymium-iron-boron permanent magnets, bonded neodymium-iron-boron permanent magnets, and magnetic components have successfully covered high-end manufacturing industries such as the new energy vehicle industry, consumer electronics industry, industrial motors, and others, as well as rapidly growing and promising emerging industries such as intelligent robots and automation by Siasun Robot & Automation and low-altitude aircraft. The revenue breakdown of neodymium-iron-boron products by category is as follows: According to Zhuisi Consulting, China is the largest supplier of neodymium-iron-boron permanent magnets in the world, with Chinese companies accounting for 91.1% of global sales by 2025. The global neodymium-iron-boron permanent magnet market is highly concentrated, with leading companies competing around core technologies such as boundary diffusion technology, Halbach arrays, and solutions involving low or zero heavy rare earth elements. The industry has high entry barriers, including technical processes and equipment accumulation, large capital investments, strict product quality requirements, and stable rare earth resource supply. The company competes with other major global neodymium-iron-boron permanent magnet suppliers. The company ranks first globally in sales of neodymium-iron-boron permanent magnets for HDD use, with a market share of 37.8%; and second globally in sales of neodymium-iron-boron permanent magnets for main drive motors in new energy vehicles, with a market share of 12.0%. Financial Information Revenue: For the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 5.326 billion, RMB 4.998 billion, and RMB 5.417 billion, respectively. Net profit: For the fiscal years 2023, 2024, and 2025, the company's annual net profits were approximately -RMB 225 million, RMB 97.22 million, and approximately RMB 336 million, respectively. Gross margin: For the fiscal years 2023, 2024, and 2025, the company's gross margins were approximately 4.6%, 11.2%, and 16.4%, respectively. Industry Overview From 2021 to 2025, the global neodymium-iron-boron permanent magnet market (measured by sales volume) is expected to increase from 168.3 thousand tons to 251.6 thousand tons, with a compound annual growth rate of 10.6%. In terms of downstream application distribution, the new energy vehicle sector is expected to be the largest demand source by 2025, accounting for 29.4% of the global market, while the industrial motor and consumer electronics sectors account for 12.1% and 4.1%, respectively. The market is expected to further expand, with the global market size projected to reach 400.3 thousand tons by 2030, with a compound annual growth rate of 9.7% from 2025 to 2030. From 2025 to 2030, the global sales of neodymium-iron-boron permanent magnets for use in intelligent robots and automation by Siasun Robot & Automation and low-altitude aircraft are expected to achieve compound annual growth rates of 128.3% and 49.8%, respectively, making them the fastest-growing industries. China is the largest country in terms of neodymium-iron-boron permanent magnet sales. With abundant domestic rare earth resources and a mature value chain, Chinese companies have established a dominant position in the global neodymium-iron-boron permanent magnet industry. From 2021 to 2025, the total sales volume of neodymium-iron-boron permanent magnets by Chinese companies is expected to increase from 151.9 thousand tons to 229.1 thousand tons, with a compound annual growth rate of 10.8%. By 2025, Chinese companies are expected to account for approximately 91.1% of global sales. Looking ahead, it is expected that the sales volume of neodymium-iron-boron permanent magnets by Chinese companies will reach 369.5 thousand tons by 2030, with a compound annual growth rate of 10.0% from 2025 to 2030. Neodymium-iron-boron permanent magnets are used in the main drive motors of new energy vehicles, as well as in a wide range of auxiliary components such as power steering sensors, electric pumps, and various motor, sensor, and pump body components. The global sales of new energy vehicles are expected to increase from 63 million units in 2021 to 235 million units in 2025, with a compound annual growth rate of 39.0%. By 2030, sales are expected to reach 440 million units, with a compound annual growth rate of 13.4% from 2025 to 2030. Neodymium-iron-boron permanent magnets have a high maximum energy product, which helps improve the efficiency and power output of main drive motors and indirectly improves the overall vehicle's range performance, making them the mainstream choice for main drive motors of new energy vehicles. In 2025, sales of neodymium-iron-boron permanent magnets for main drive motors in new energy vehicles reached 53,400 tons, accounting for approximately 72.1% of total sales in the new energy vehicle sector. In terms of shipment volume, the global smartphone market is expected to grow from 1.26 billion units in 2025 to 1.58 billion units in 2030, with a compound annual growth rate of 4.6% from 2025 to 2030. With the accelerated penetration of AI functions, the market's demand for higher-performance chips, more advanced imaging capabilities, and richer audio interactions is expected to increase, leading to growth in demand for consumer electronics products. The HDD in the consumer electronics sector is an important data storage medium, and its efficient operation relies on key components. In consumer electronics HDDs, the Voice Coil Motor (VCM) is a key actuator for precise positioning of read/write heads and high-speed seek operations. Neodymium-iron-boron permanent magnets have a high maximum energy product and stable magnetic performance, providing strong and stable magnetic field support for VCMs to meet the high-capacity, high-reliability, and efficient operation requirements of HDDs. The company is one of the earliest Chinese companies engaged in the neodymium-iron-boron permanent magnet business. In the global market, the company is also one of the few enterprises that comprehensively covers downstream application areas. Through fine process control and continuous technological iterations, the company has achieved the highest combination magnetic performance of neodymium-iron-boron permanent magnet products in terms of maximum energy product and intrinsic coercive force among its peers. In 2025, the company's sales of neodymium-iron-boron permanent magnets reached 14,200 tons, making it the world's third-largest producer of neodymium-iron-boron permanent magnets with a market share of 5.6%. Board of Directors Information The board of directors consists of nine directors, including four executive directors, one non-executive director, and four independent non-executive directors. Equity Structure As of the last feasible date, the remaining equity is held by Mr. Wang Guolong, Mr. Guo Zhenglun, Ms. Wang Yan, and Mr. Lin Rongliang, with holdings of 1.32%, 1.12%, 0.20%, and 0.16% respectively. Apart from their holdings in Ningbo Chengyuan, they are each independent third parties. They are passive investors and do not participate in the management and decision-making of the group. Therefore, they are not considered as members of the controlling shareholder group. According to the 2023 unanimous action agreement, Yunsheng Holdings and Gan Hao Investment are concerted parties. Ms. Dong Weizhen is the spouse of Mr. Zhu Yunde, and Executive Director Mr. Zhu Xiaodong is their son. They are members of the controlling shareholder group. Gan Hao Investment is owned 70.00% by Ms. Chen Yinfen and 30.00% by Mr. Zhuang Deyan. As of the last feasible date, apart from their holdings in Gan Hao Investment, they are each independent third parties. They do not participate in the management and decision-making of the group, so they are not considered members of the controlling shareholder group. Apart from her holdings in Yunsheng Holdings, Ms. Fang Hongyan is an independent third party. She is a passive investor and does not participate in the management and decision-making of the group. Therefore, she is not considered a member of the controlling shareholder group. As of the last feasible date, Baotou Yunsheng Qiangci is owned 92.94% by the company and 7.06% by Ningbo Yunsheng Qiangci. Ningbo Yunsheng Qiangci is owned 95.00% by the company and 5.00% by Yunsheng Investment. Yunsheng Investment is owned 90.00% by the company and 10.00% by Yunsheng Holdings. Intermediary Team Sole Sponsor: China International Finance Hong Kong Securities Limited Company's Legal Advisor: Hong Kong Law: Joint venture between Zhou Junxuan Law Firm and Beijing Tongshang Law Firm; Chinese Law: Beijing Guofeng Law Firm Legal Advisor for the Sole Sponsor: Hong Kong Law: Joint venture partnership of JT & G; Chinese Law: Beijing Deheng Law Firm Auditors and Reporting Accountants: Ernst & Young LLP Industry Consultant: Zhuisi Enterprise Management Consulting (Shanghai) Co., Ltd.