Securities code: Jl Mag Rare-Earth Co.Ltd(300748) securities abbreviation: Jl Mag Rare-Earth Co.Ltd(300748)
Jl Mag Rare-Earth Co.Ltd(300748)
Record of investor relations activities
No.: 2022004
□ specific object research □ analyst meeting
Investor relations □ media interview √ performance briefing
Activity category □ press conference □ Roadshow
□ site visit
□ others (please specify other activities in words)
See the attached table for the names of participating units
call
Time: April 1, 2022
Location teleconference
Chairman and general manager: Cai Baogui
Deputy general manager and Secretary of the board of directors of the listed company: Lu Ming name of waiting person: Chief Financial Officer: Xie Hui
Investor Relations Director: Wang Congmin
1. Q: please introduce the company’s performance in 2021.
A: in 2021, the company continued to focus on new energy, energy conservation and environmental protection, focusing on new energy vehicles and auto parts, energy-saving variable frequency air conditioning, wind power generation, 3C, industrial energy-saving motors, energy-saving elevators, rail transit and other core application fields. The company’s operating revenue and net profit maintained a significant growth. During the reporting period, the company achieved an operating revenue of 408072400 yuan, a year-on-year increase of 68.78%; The domestic sales revenue was 3701658400 yuan, an increase of 78.26% year-on-year, and the overseas sales revenue of investor relations was 378414000 yuan, an increase of 11.04% year-on-year, of which the sales revenue exported to the United States was about 543881 million yuan; The net profit attributable to the shareholders of the listed company was 453074200 yuan, a year-on-year increase of 85.32%; Rong introduced that the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 423314 million yuan, a year-on-year increase of 86.37%.
In 2021, the company’s revenue in the field of new energy vehicles and auto parts reached 1.051 billion yuan, an increase of 222.73% over the same period of the previous year. In 2021, the company’s sales of new energy vehicle drive motor magnetic steel products can assemble about 1.24 million new energy passenger vehicles. In 2021, the company’s revenue in the field of energy-saving variable frequency air conditioning reached 1.4 billion yuan, an increase of 59.41% over the same period of the previous year. In 2021, the company’s sales of energy-saving variable frequency air conditioning magnetic steel products can be equipped with about 48.5 million sets of variable frequency air conditioning compressors. In 2021, the company’s revenue in the field of wind power generation reached 887 million yuan, basically the same as last year. In 2021, the company’s sales of wind electromagnetic steel products, and the installed capacity of wind turbines that can be assembled is about 8.65gw.
2. Q: what is the future market space of magnetic material application in the field of new energy vehicles? What is the market position of the company in this field? A: according to frost Sullivan’s report, by 2025, the global sales volume of new energy passenger vehicles is expected to reach about 11.3 million, and the compound annual growth rate from 2020 to 2025 is about 30.9%; The global consumption of high-performance NdFeB permanent magnet materials for new energy vehicles is expected to reach about 37500 tons, with a CAGR of about 30.9% from 2020 to 2025. In 2020, Jl Mag Rare-Earth Co.Ltd(300748) ranked first in the world in terms of the number of new energy vehicles using high-performance NdFeB permanent magnet materials.
In the field of new energy vehicles, the company’s products were used to produce drive motors by eight of the world’s top ten new energy vehicle manufacturers in 2021. The company is a magnetic steel supplier for driving motors of new energy vehicles such as Tesla, Byd Company Limited(002594) , United Automotive Electronics and Nippon electric power. Saic Motor Corporation Limited(600104) , Weilai and ideal cars are the end users of the company. The company is also a magnetic steel supplier for auto parts of Bosch Group for many years. The company is also a supplier of rare earth permanent magnet materials for Volkswagen, GM and new energy vehicle platforms. 3. Q: what is the market prospect of industrial energy-saving motors? Does the company have a layout in this regard?
A: in October 2021, the Ministry of industry and information technology and the State Administration of market supervision jointly issued the motor energy efficiency improvement plan (20212023), which proposed to guide enterprises to update and upgrade key energy consuming equipment such as motors, give priority to high-efficiency and energy-saving motors, and speed up the elimination of backward and low-efficiency motors that do not meet the requirements of the current national energy efficiency standards. Increase the application of high-efficiency and energy-saving motors. In particular, it is proposed to promote variable frequency speed regulation permanent magnet motors with level 2 energy efficiency and above for variable load operation conditions. For the transmission system using gearbox and coupler, low-speed direct drive and high-speed direct drive permanent magnet motors are encouraged. The implementation of the motor energy efficiency improvement plan (20212023) will improve the penetration rate of rare earth permanent magnet motors in the next two years and further increase the demand for rare earth permanent magnet materials.
The company has a layout of products in the field of industrial motors. In 2021, the company’s sales revenue in this field increased rapidly, but accounted for a small proportion of its main business revenue. At present, the company plans to invest in the construction of “high efficiency and energy-saving motor magnetic material base project” in Ganzhou, Jiangxi Province. The project is expected to reach production from 2024 to 2025, which will enhance the company’s competitiveness in the field of industrial energy-saving motors. 4. Q: how does grain boundary infiltration technology help reduce costs? What advantages does the company have in grain boundary infiltration technology?
A: the company has the industry-leading grain boundary penetration technology and has applied for a number of invention patents at home and abroad for grain boundary penetration technology.
Grain boundary infiltration technology is mainly to help customers reduce costs by reducing the addition of medium and heavy rare earth dysprosium and terbium. At present, we use grain boundary infiltration technology to significantly reduce the addition of medium and heavy rare earths such as dysprosium and terbium by about 50% – 70% in energy-saving variable frequency air conditioning products, new energy vehicle drive motors and some 3C intelligent electronic high-performance products. In the future, we will increase R & D investment and continue to optimize and upgrade a series of core technologies including grain boundary infiltration technology.
According to frost Sullivan’s report, the company used grain boundary infiltration technology to produce 4111 tons of high-performance rare earth permanent magnet products in 2020, ranking first in the world in the crystal boundary infiltration rare earth permanent magnet market, accounting for about 21.3% of the market share.
In 2021, the company used grain boundary infiltration technology to produce 6064 tons of high-performance rare earth permanent magnet products, with a year-on-year increase of 47.51%, accounting for 58.73% of the company’s total product output in the same period, an increase of 16 percentage points over the same period of last year; among
The output of ultra-high brand products is 3437 tons. With huge production capacity, excellent R & D capability, proprietary technology and strong product delivery capacity, the company has become a leading supplier of high-performance rare earth permanent magnet materials in the field of new energy, energy conservation and environmental protection.
5. Q: please introduce the company’s pricing model, price adjustment mechanism and its impact on the company’s gross profit margin.
A: the pricing mode of the company’s products is cost plus mode. The cost of rare earth raw materials accounts for 70% ~ 80% of the product cost. The complexity of processing technology and process makes the added value of products in different fields different, and the gross profit margin will be different; For example, the processing complexity of products in the field of wind power is relatively low, and the processing complexity of 3C products is high. At the same time, products in different fields are at different stages, and the gross profit margin will also be different; For example, in 2021, new customized products in the field of new energy vehicles are in the climbing stage, and the gross profit margin will be relatively low before reaching the mature stage or having scale effect.
The company can adjust the unit price of products within a certain period (monthly / quarterly / semi annual / annual) according to the contract signed with customers. The price adjustment mechanism helps the company to gradually transmit the price fluctuation of rare earth raw materials to customers to a certain extent, but there is still a certain lag.
Under the influence of comprehensive pricing model and price adjustment mechanism, under the background of the continuous rise of rare earth raw materials in 2021, the company’s gross profit margin of magnetic steel in 2021 was 21.32%, down 2.49 percentage points from 2020.
6. Q: with the explosive growth of demand in downstream application fields, how will the company plan its future production capacity?
A: in response to the growing demand of downstream industries, the company plans to expand the existing production capacity of high-performance NdFeB permanent magnet materials, upgrade the production line through R & D, and deepen the penetration of the company’s products in downstream industries. After the completion of Baotou phase I project, the company’s total annual production capacity of high-performance Nd-Fe-B permanent magnet blank will reach 23000 tons, and the production base will move forward from a single factory to a group of factories in multiple places. The company plans to continue to significantly increase production capacity in the next few years, and strive to achieve an annual production capacity of 40000 tons of high-performance Nd-Fe-B permanent magnet materials by 2025.
Capacity (T / a) main project name of the factory project status and production time
15000 Ganzhou – reached production 2021
8000 Baotou high performance rare earth permanent magnet material base project has been put into operation in 2022
3000 Ningbo high-end magnetic materials with an annual output of 3000 tons and 100 million sets of components project under construction 20232024
120 Suning.Com Co.Ltd(002024) high performance rare earth base construction project of Baotou permanent magnet (2024)
2000 Ganzhou high efficiency and energy saving motor magnetic material base project planning and construction 20242025
40,000 –
During the reception, the company had full exchanges and communication with investors, and in strict accordance with the company’s information disclosure management system and other regulations to ensure that the information disclosure is true, accurate, complete, timely and fair, and there is no disclosure of undisclosed major information.
Date: April 1, 2022
Attached table: list of institutions
No. organization name / abbreviation
1. Mixed ownership reform fund of China’s state-owned enterprises
2. China Resources Guoxin
3 CITIC Prudential Life Insurance
4. CCB International
5 China Shouzheng fund
6 Sumitomo Mitsui trust
7 APC China
8 Whitefield Capital Management
9 Rising Stella Investment
10 Nekton Capital
11 Am Bank
12 Goldman Sachs Gaohua securities
13 Morgan Stanley
fourteen
