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JL MAG Announces Proposed Itemizing on the Main Board of SEHK, Offer Tag between HK$33.80 and HK$40.30 per Offer Fragment

HONG KONG, Dec 31, 2021 - (ACN Newswire) - JL MAG Rare-Earth Co., Ltd. ("JL MAG" or the "Company", together with its subsidiaries, the "Group", stock code: 6680.HK), a leading producer of high-performance rare earth permanent magnets ("REPMs"), announced the proposed listing of its H shares on the Main Board of The Stock Exchange of…

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HONG KONG, Dec 31, 2021 - (ACN Newswire) - JL MAG Rare-Earth Co., Ltd. ("JL MAG" or the "Company", alongside with its subsidiaries, the "Neighborhood", stock code: 6680.HK), a leading producer of high-efficiency rare earth everlasting magnets ("REPMs"), announced the proposed list of its H shares on the Main Board of The Stock Substitute of Hong Kong Shrimp ("SEHK") this day.

JL MAG plans to present an combination of 125,466,000 H shares (the "Offer Shares") under the Global Offering (enviornment to the Over-half Option), comprising a world offering (the "Worldwide Offering") of 112,919,200 shares (enviornment to adjustment and Over-half Option) and Hong Kong public offering (the "Hong Kong Public Offering") of 12,546,800 shares (enviornment to adjustment), at a tag fluctuate between HK$33.80 and HK$40.30 per Offer Fragment.

The Hong Kong Public Offering will delivery at 9: 00 a.m. on 31 December 2021 (Friday) and finish at 12: 00 noon on 7 January 2022 (Friday) in Hong Kong. Dealings in Shares on SEHK are expected to originate at 9: 00 a.m. on 14 January 2021 (Friday), with the stock code 6680.HK in board hundreds 200 Offer Shares every.

CLSA Capital Markets Shrimp and BNP Paribas Securities (Asia) Shrimp are the Joint Sponsors. CLSA Shrimp, BNP Paribas Securities (Asia) Shrimp and DBS Asia Capital Shrimp are the Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers.

The A shares of JL MAG (Stock Code: 300748.SZ) had been listed on the ChiNext Market of the Shenzhen Stock Substitute (the "SZSE") since September 2018. The Company is now looking out out out the list of its H shares on the Main Board of the SEHK as a dual predominant list alongside its A shares on the SZSE.

Global Leading Producer of High-Efficiency REPMS with Speedily Development

JL MAG is a leading producer of high-efficiency REPMs. In line with Frost & Sullivan, the Company produced 9,612.9 tonnes of high-efficiency REPMs in 2020, ranking first in the arena by high-efficiency REPM manufacturing quantity with a market share of roughly 14.5%. Meanwhile, the Company utilized grain boundary diffusion ("GBD") expertise in producing 4,111 tonnes of high-efficiency REPMs in 2020, ranking first in the arena's GBD REPM market with a market share of roughly 21.3%. Since its establishment, JL MAG has targeted on the R&D, manufacturing and gross sales of high-efficiency NdFeB rare earth everlasting magnets ("NdFeB PMs") frail globally in the fields of most standard vitality, vitality conservation and environmental safety. The Company's merchandise like a enormous option of functions in downstream sectors including contemporary vitality vehicles ("NEVs") and car parts, everlasting magnetic wind turbine mills ("PM wind turbine mills"), vitality-saving variable-frequency air conditioners ("Energy-saving VFACs"), 3C merchandise, vitality-saving elevators, robotics and wise manufacturing.

JL MAG produces personalized high-efficiency NdFeB PMs essentially essentially based on decide orders from possibilities. Its manufacturing capabilities duvet your entire manufacturing cycle of high efficiency NdFeB PMs, including R&D, mold pattern and manufacturing, blank manufacturing, carried out product processing, surface treatment, magnetization, testing, manufacturing of magnetic facet parts and packaging. The Company has strategically scaled up its manufacturing skill in anticipation of the sizable enhance of the downstream sectors. The Company's annual manufacturing skill of high-efficiency NdFeB PM blank increased from 7,000 tonnes in 2018 to 12,800 tonnes in 2020, representing a CAGR of 35.2%. The Company is in process to extra make stronger and create bigger the present manufacturing bases in Ganzhou and the contemporary manufacturing bases in Baotou and Ningbo. The annual manufacturing skill of high-efficiency NdFeB PM blanks is expected to reach 23,000 tonnes in 2022 and 40,000 tonnes in 2025, respectively. The completion-essentially essentially based review and acceptance of organising for the Company's Baotou Production Rotten became as soon as carried out in December 2021 and Baotou Production Rotten is expected to originate operation by the stay of 2021 with a designed manufacturing skill of 8,000 tonnes every year of high-efficiency NdFeB PM blanks.

JL MAG has established a market-leading space in many key downstream sectors. In NEVs sector, the Company ranked second globally by the quantity of passenger NEVs that utilize its high-efficiency NdFeB PMs in 2020. The REPMs that it dispatched into the NEV sector had been satisfactory for equipping approximately 450,000 passenger NEVs with NEV pressure motors, equal to approximately 14.5% of the entire quantity of NEVs produced globally in 2020. In wind energy sector, the Company became as soon as the perfect seller globally of high-efficiency NdFeB PMs frail in the wind generator generators in 2020 by newly build in skill. It is high-efficiency REPMs dispatched to the wind energy sector had been satisfactory for the manufacturing of PM wind turbine mills with an approximate combination build in skill of 10 GW, equal to approximately 40% of the enviornment PM wind energy newly build in skill in 2020. In Energy-saving VFACs sector, the Company became as soon as the perfect seller globally of high-efficiency NdFeB PMs frail for the manufacturing of Energy-saving VFACs in phrases of the quantity of vitality-saving VFAC compressors geared up with high-efficiency NdFeB PMs produced by it in 2020, with a market share of roughly 31.5%.

At some level of the Notice Document Interval, JL MAG finished swiftly monetary enhance and high phases of ROE. The Company's income increased from RMB1,282.0 million in 2018 to RMB2,288.7 million in 2020, representing a CAGR of 33.6%. The Company's income also increased from RMB915.5 million for the six months ended June 30, 2020 to RMB1,766.5 million for the six months ended June 30, 2021, representing an magnify of 92.9%. The Company's receive income increased from RMB146.3 million in 2018 to RMB244.7 million in 2020, representing a CAGR of 29.3%. The Company's receive income also increased from RMB 91.6 million for the six months ended June 30, 2020 to RMB220.6 million for the six months ended June 30,2021, representing an magnify of 140.8%. In 2020, the Company's horrible income margin, receive income margin and weighted ROE had been 23.7%, 10.7% and 17.1% respectively. For the six months ended June 30, 2021, the Company's horrible income margin, receive income margin and annualized weighted ROE had been 24.3%,12.5% and 20.7% respectively.

In-Depth Cooperation with Prime Participant Customers in Contemporary Energy and Energy Saving Industries to Take hold of Increasing Downstream Save a question to

REPMs embody an inherent advantage in decreasing carbon emission. With the enviornment traits of carbon emission bargain, JL MAG's necessary downstream sectors are experiencing immediate enhance, which translates into sturdy and rising build a question to for its merchandise.

Leveraging its sizable manufacturing scale, high quality product choices, famed R&D capabilities, proprietary technologies and sturdy product supply functionality, JL MAG has entered into the provision chain programs of many world leading firms in its downstream sectors. In 2020, the Company's predominant possibilities incorporated four of the tip 5 avid gamers in the enviornment NEV sector by gross sales quantity in 2020, three of the tip 5 avid gamers in the enviornment wind energy sector by 2020 newly added build in skill and the tip two family air-conditioner producers by manufacturing quantity in China. As well, in the 3C, vitality-saving elevators, robotics and wise manufacturing, rail transit and numerous sectors, the Company has entered into the provision chain programs of a ramification of prime-tier possibilities, including Bosch Rexroth and Kone Elevator. The Company's sturdy and integrated relationships with the tip avid gamers in every of these sectors reveal it at a strategically advantaged space to love interaction the rising build a question to therefrom.

First-mover Serve in the REPM Industry Characterized by Buyer Stickiness and High Entry Barriers

The REPM industry is characterised by sturdy customer stickiness and high entry barriers. The quality of NdFeB PMs has a important affect on the efficiency and quality of the possibilities' final merchandise, so possibilities have a tendency now to no longer change their seller with out peril. JL MAG leverages its expert and technical expertise in high-efficiency NdFeB PMs to participate in the contemporary product originate of the possibilities, aiding possibilities to optimize their merchandise' efficiency and scale again manufacturing tag. Meanwhile, the Company presentations high responsiveness to possibilities' specialized wants of producing non-standardized merchandise. Its sturdy R&D skill, supplemented with execution functionality and quality retain a watch on like enabled the Company to continually meet the components reveal by the possibilities, which in flip has contributed to its success in building and declaring solid relationships with them.

Attributable to of the high barriers in possibilities' accreditation, JL MAG's reveal as an authorized seller of many leading possibilities enhances its tag recognition and fame, enabling it to leverage the principle-mover advantage to stable its established leading space in the industry and extra create bigger the client repulsive.

Strong R&D Capabilities for Production Optimization and Global-leading GBD Applied sciences

The manufacturing of high-efficiency NdFeB PMs has high technical barriers. JL MAG optimizes the formulations to abet the possibilities in the wind energy sector decrease their manufacturing costs thru reducing the medium and heavy rare earth added in the manufacturing of high-efficiency NdFeB PMs. As well, the Company employs its proprietary GBD expertise to enact mass manufacturing and comprise high-grade merchandise for Energy-saving VFACs sector and NEVs and car parts sector that considerably decrease the utilize of medium and heavy rare earth whereas declaring high efficiency. In line with Frost & Sullivan, the GBD expertise can in overall decrease the utilize of medium and heavy rare earth by 50% to 70%. The Company's GBD expertise is widely utilized in the manufacturing of its high-efficiency NdFeB PM carried out merchandise in Energy-saving VFACs sector and NEVs and car parts sector. It is miles mostly utilized in the manufacturing of particular high-efficiency NdFeB PM carried out merchandise in 3C sector.

Long-term and Right Strategic Cooperation with Main Rare Earth Suppliers

JL MAG has maintained prolonged-term and firm strategic cooperation with predominant rare earth suppliers. 5 out of the six rare earth groups in China are the Company's rare earth suppliers. Amongst its suppliers, China Southern Rare Earth became as soon as the second largest rare earth mining neighborhood in China by annual rare earth mining quota which became as soon as 42,450 tonnes in 2021, accounting for approximately 25.3% of the nationwide mining quota in the identical year. Its output essentially contains medium and heavy rare earth. China Southern Rare Earth became as soon as among the many Company's 5 largest suppliers right thru the Notice Document Interval. The Company has also established firm and strategic cooperative relationship with key rare earth suppliers similar to China Southern Rare Earth and China Northern Rare Earth to be particular the prolonged-term and stable provide of rare earth. In China, light rare earth mines are essentially positioned in Baotou of the Internal Mongolia Self sustaining Anxiety whereas medium and heavy rare earth deposits are essentially positioned in southern regions, including Ganzhou, Jiangxi. As a result, the Company's premises in Ganzhou and Baotou endow it with tag advantage, convenient supply and the stable and bonafide provide of rare earth presents.

Moreover, on December 23, 2021, a brand contemporary rare earth giant, namely, China Rare Earth Neighborhood Co., Ltd, became as soon as established thru a merger of prime reveal-owned operations. China Rare Earth Neighborhood Co., Ltd became as soon as jointly founded by Aluminum Corporation of China, China Minmetals Corporation, Ganzhou Rare Earth, China

Iron & Steel Study Institute Neighborhood and Grinm Neighborhood Corporation Ltd. The newly-established China Rare Earth Neighborhood Co., Ltd will function under the command supervision of SASAC. The establishment of China Rare Earth Neighborhood Co., Ltd is conducive to integrating resources, enhancing functions of most standard technologies and presents and selling the prolonged-term sound pattern of the rare earth industry.

Extremely Experienced and Dedicated Administration Team with Visionary Leadership and Proven Execution Capabilities

JL MAG's confirmed discover story of a hit operations and leading market space bears testament to its management team's management and execution prowess. Led by the Chairman and president, Mr. Cai Baogui, the Company has a deep bench of highly qualified core management team with complementary strengths and a R&D team which is led by two provincial stage scientific and technological talents. The management team has deep industry background and in depth management and operational expertise. Alongside with its senior management, workers' technical expertise, blended with in depth expertise gathered in conducting R&D tasks, JL MAG has turn into a principal seller in the provision chain programs of leading firms in a pair of carbon-bargain sectors, and achieving prolonged discover story of high quality merchandise thereby underpinning the Company to give a enhance to its established market presence and turn into the No. 1 world leader in the REPM market.

Mr. Cai Baogui, the Chairman, Govt Director and Fashioned Supervisor of JL MAG Rare-Earth Co., Ltd. acknowledged, "In response to climate switch, governments in the arena are taking active actions to promote contemporary vitality and scale again carbon emission. Particularly, China plans to reach carbon peak by 2030 and carbon neutrality by 2060. As REPMs embody an inherent advantage in decreasing carbon emission, under the enviornment traits of carbon emission bargain, the build a question to of REPMs for downstream industries will repeatedly magnify. In declare to love interaction the rising downstream build a question to, JL MAG plans to extra scale up its manufacturing skill, create bigger its industry chain thru selective acquisitions or strategic investments, extra strengthen its R&D efforts in enhancing the manufacturing ways and diversify the most standard product portfolio, and favor the strategic opportunity duration of upward pattern of the industry to proactively create bigger the enviornment industry footprint. Having a discover about forward, JL MAG is committed to facilitating the pursuit of carbon peak and carbon neutrality both in China and around the arena thru manufacturing and provision of high-efficiency NdFeB PMs and realizing its mission of 'Better Life with Rare Earths'."


Topic: Press free up summary

Sectors: Metals & Mining


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