JL MAG Rare-Earth Q1 2026: Revenue Climbs 16%, Net Profit Up 20% as Operating Cash Flow Swings to RMB 357.64 Million

JL MAG Rare-Earth (JLMAG) released unaudited results for the three months ended 31 March 2026, prepared under PRC GAAP.

Revenue expanded 16.05% year on year (YoY) to RMB 2.04 billion, supported by stable demand for rare-earth permanent magnets (REPM). Profit attributable to owners rose 20.09% YoY to RMB 192.77 million, delivering basic earnings per share of RMB 0.14. Excluding RMB 17.07 million in non-recurring gains, underlying profit reached RMB 175.70 million, up 65.95% YoY.

Gross profit margin widened 6.13 percentage points to 21.83%, offsetting higher R&D (+47.70% YoY to RMB 122.24 million) and administrative expenses (+43.64% to RMB 70.41 million), both inflated by RMB 49.97 million in equity-incentive charges. Adjusting for share-based payments, net profit would have been RMB 235 million, a 44.57% YoY increase; recurring net profit would have more than doubled (+106.82% YoY).

Cash generation improved sharply. Net operating cash inflow reached RMB 357.64 million versus an outflow of RMB 350.44 million a year earlier, driven by stronger receivable collections. Free cash flow nonetheless remained negative after RMB 101.22 million of capital expenditure and RMB 851.96 million deployed into structured deposits and other investments, leaving investing cash outflow at RMB 953.18 million.

The balance sheet remained liquid. Monetary funds stood at RMB 3.30 billion, supplemented by RMB 0.86 billion in large-denomination certificates maturing within one year and RMB 0.57 billion maturing beyond one year. Total assets reached RMB 15.96 billion, up 4.12% from year-end, while equity attributable to owners edged up 3.11% to RMB 7.80 billion. Interest-bearing debt totalled RMB 2.50 billion (short- and long-term borrowings plus bonds payable).

Business development highlights included:

1. New capacity: the planned 20,000-tonne REPM expansion was completed on schedule, reinforcing supply capability amid volatile neodymium–praseodymium (NdPr) prices.

2. Emerging growth engines: Revenue from humanoid-robot and industrial servo-motor applications reached RMB 118 million, an 81.84% YoY surge, reflecting early commercial traction in advanced robotics.

3. Overseas momentum: Export sales grew 22.16% YoY to RMB 381 million, contributing 18.7% of total revenue. The company secured early-stage export licences under China’s new medium- and heavy-rare-earth regulations.

4. Upstream security: JL MAG maintained long-term supply agreements with China Rare Earth Group and Northern Rare Earth, and leveraged its majority stake in Yinhai New Materials for recycled rare-earth feedstock.

Cost structure shifts were evident. Finance expenses swung to a RMB 23.31 million charge (versus a RMB 12.40 million credit) on higher loan costs and interest accruals for H-share convertible bonds, while government grants recognised as other income fell 69.35% YoY to RMB 19.44 million.

The first-quarter weighted average return on equity improved to 2.51%, up 0.25 percentage points YoY. Management reiterated its focus on compliance, customer-centric operations and technology-driven efficiency to navigate raw-material price volatility and a softer new-energy-vehicle backdrop.