JL MAG Delivers 32.6 % Revenue and 51.6 % Profit Growth in H1 2026, Targets 75 % Cash Payout

Bulletin Express08-27

JL MAG Rare-Earth Co., Ltd. (JLMAG) reported H1 2026 revenue of RMB4.65 billion, a 32.57 % rise year-on-year, driven mainly by a 33.04 % surge in sales to the new-energy vehicle segment and a 96.40 % jump in robot and industrial servo-motor sales.

\n\nProfit attributable to shareholders reached RMB462.24 million, up 51.58 %. Gross margin widened to 21.73 %, 5.34 percentage points higher than a year earlier. Operating cash inflow totalled RMB1.21 billion, reversing a RMB549.06 million outflow in H1 2025.

\n\nThe Board proposes an interim dividend of RMB2.50 per 10 shares (tax inclusive), amounting to RMB345.49 million and representing a 75 % payout ratio. Since listing in 2018, cumulative cash dividends exceed RMB1.70 billion.

\n\nSegment highlights\n• NEV & automotive parts: RMB2.23 billion revenue (55.97 % of total), up 33.04 %.\n• Energy-saving variable-frequency air-conditioners: RMB955.90 million, down 9.00 % year-on-year amid high base and inventory adjustments.\n• Robots & industrial servo motors: RMB260.81 million, up 96.40 %.\n• Wind power: RMB250.42 million, up 17.14 %.\n• Other applications: RMB285.96 million.

\n\nCapital and R&D\nCash and bank balances stood at RMB3.28 billion with an additional RMB1.53 billion in large-amount deposit certificates. R&D spending rose 46.16 % to RMB248.23 million, equal to 5.34 % of revenue. Group capacity is 40,000 tonnes of high-performance NdFeB magnets, with Phase III in Baotou adding 20,000 tonnes to reach 60,000 tonnes by 2027.

\n\nStrategic moves\n• Humanoid robot motor-rotor project secured with a global tech firm; dedicated automated line completed.\n• Acquisition plan for a 9.24 % stake in Baotou Rare Earth Products Exchange to strengthen raw-material sourcing.\n• Remaining net proceeds of HKD96.50 million from 2025 convertible-bond issue reallocated fully to R&D.

\n\nPost-period events\n• 17 Jul 2026: Repurchased 2.72 million H Shares for HKD44.31 million; shares cancelled on 7 Aug 2026.\n• 3 Aug 2026: Issued 9.10 million new H Shares to satisfy share-incentive awards.\n• 20 Aug 2026: Board confirmed interim dividend proposal; subject to shareholder approval on 24 Sep 2026.

\n\nOutlook\nManagement reiterated plans to commission the Baotou Phase III project, advance rare-earth recycling, and scale humanoid-robot component output, while maintaining a policy of high cash returns to shareholders.

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