JL MAG Announces Proposed Listing on the Main Board of SEHK, Offer Price between HK$33.80 and HK$40.30 per Offer Share

.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 manufacturer of high-performance uncommon earth long-term magnets (” REPMs”), revealed the proposed listing of its H shares on the Main Board of The Stock Exchange of Hong Kong Limited (” SEHK”) today.JL MAG prepares to use an aggregate of 125,466,000 H shares (the “Offer Shares”) under the Global Offering (based on the Over-allotment Option), making up a worldwide offering (the “International Offering”) of 112,919,200 shares (topic to modification and Over-allotment Option) and Hong Kong public offering (the “Hong Kong Public Offering”) of 12,546,800 shares (topic to modification), at a cost variety in between HK$3380 and HK$4030 per Offer Share.The Hong Kong Public Offering will open at 9: 00 a.m. on 31 December 2021 (Friday) and close at 12: 00 twelve noon on 7 January 2022 (Friday) in Hong Kong. Transactions in Shares on SEHK are anticipated to begin at 9: 00 a.m. on 14 January 2021 (Friday), with the stock code6680 HK in board great deals of 200 Offer Shares each.CLSA Capital Markets Limited and BNP Paribas Securities (Asia) Limited are the Joint Sponsors. CLSA Limited, BNP Paribas Securities (Asia) Limited and DBS Asia Capital Limited are the Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers.The A shares of JL MAG (Stock Code:300748 SZ) have actually been noted on the ChiNext Market of the Shenzhen Stock Exchange (the “SZSE”) because September2018 The Company is now looking for the listing of its H shares on the Main Board of the SEHK as a double main listing along with its A shares on the SZSE.International Leading Producer of High-Performance REPMS with Fast Growth.JL MAG is a leading manufacturer of high-performance REPMs. According to Frost & Sullivan, the Company produced 9,6129 tonnes of high-performance REPMs in 2020, ranking initially worldwide by high-performance REPM production volume with a market share of around 14.5%. The Company used grain border diffusion (” GBD”) innovation in producing 4,111 tonnes of high-performance REPMs in 2020, ranking initially in the world’s GBD REPM market with a market share of around 21.3%. Because its facility, JL MAG has actually concentrated on the R&D, production and sales of high-performance NdFeB unusual earth long-term magnets (” NdFeB PMs”) utilized internationally in the fields of brand-new energy, energy preservation and environmental management. The Company’s items have a large variety of applications in downstream sectors consisting of brand-new energy automobiles (” NEVs”) and automobile parts, long-term magnetic wind turbine generators (” PM wind turbine generators”), energy-saving variable-frequency a/c unit (” Energy-saving VFACs”), 3C items, energy-saving elevators, robotics and smart production.JL MAG produces personalized high-performance NdFeB PMs based upon order from clients. Its production abilities cover the whole production cycle of high efficiency NdFeB PMs, consisting of R&D, mold advancement and production, blank production, completed item processing, surface area treatment, magnetization, screening, production of magnetic part and product packaging. The Company has actually tactically scaled up its production capability in anticipation of the considerable development of the downstream sectors. The Company’s yearly production capability of high-performance NdFeB PM blank increased from 7,000 tonnes in 2018 to 12,800 tonnes in 2020, representing a CAGR of 35.2%. The Company remains in procedure to additional upgrade and broaden the existing production bases in Ganzhou and the brand-new production bases in Baotou and Ningbo. The yearly production capability of high-performance NdFeB PM blanks is anticipated to reach 23,000 tonnes in 2022 and 40,000 tonnes in 2025, respectively. The completion-based check and approval of building for the Company’s Baotou Production Base was finished in December 2021 and Baotou Production Base is anticipated to start operation by the end of 2021 with a developed production capability of 8,000 tonnes per year of high-performance NdFeB PM blanks.JL MAG has actually developed a market-leading position in lots of crucial downstream sectors. In NEVs sector, the Company ranked 2nd worldwide by the variety of guest NEVs that utilize its high-performance NdFeB PMs in2020 The REPMs that it dispatched into the NEV sector sufficed for gearing up roughly 450,000 guest NEVs with NEV drive motors, equivalent to around 14.5%of the overall variety of NEVs produced worldwide in2020 In wind power sector, the Company was the biggest provider worldwide of high-performance NdFeB PMs utilized in the wind generator turbines in 2020 by freshly set up capability. It’s high-performance REPMs dispatched to the wind power sector sufficed for the production of PM wind turbine generators with an approximate aggregate set up capability of 10 GW, equivalent to roughly 40%of the worldwide PM wind power freshly set up capability in2020 In Energy-saving VFACs sector, the Company was the biggest provider internationally of high-performance NdFeB PMs utilized for the production of Energy-saving VFACs in regards to the variety of energy-saving VFAC compressors geared up with high-performance NdFeB PMs produced by it in 2020, with a market share of around 31.5%.Throughout the Track Record Period, JL MAG attained fast monetary development and high levels of ROE. The Company’s profits increased from RMB1,2820 million in 2018 to RMB2,2887 million in 2020, representing a CAGR of 33.6%. The Company’s profits likewise increased from RMB9155 million for the 6 months ended June 30, 2020 to RMB1,7665 million for the 6 months ended June 30, 2021, representing a boost of 92.9%. The Company’s net revenue increased from RMB1463 million in 2018 to RMB2447 million in 2020, representing a CAGR of 29.3%. The Company’s net earnings likewise increased from RMB 91.6 million for the 6 months ended June 30, 2020 to RMB2206 million for the 6 months ended June 30,2021, representing a boost of 140.8%. In 2020, the Company’s gross revenue margin, net revenue margin and weighted ROE were 23.7%, 10.7%and 17.1%respectively. For the 6 months ended June 30, 2021, the Company’s gross revenue margin, net revenue margin and annualized weighted ROE were 24.3%,125%and 20.7%respectively.Extensive Cooperation with Top Player Customers in New Energy and Energy Saving Industries to Capture Growing Downstream Demand.REPMs embody a fundamental benefit in decreasing carbon emission. With the international patterns of carbon emission decrease, JL MAG’s primary downstream sectors are experiencing quick development, which equates into strong and increasing need for its items.Leveraging its big production scale, top quality item offerings, exceptional R&D abilities, exclusive innovations and strong item shipment ability, JL MAG has actually participated in the supply chain systems of numerous worldwide leading business in its downstream sectors. In 2020, the Company’s significant clients consisted of 4 of the leading 5 gamers in the worldwide NEV sector by sales volume in 2020, 3 of the leading 5 gamers in the international wind power sector by 2020 freshly included set up capability and the leading 2 family air-conditioner manufacturers by production volume in China. In addition, in the 3C, energy-saving elevators, robotics and smart production, rail transit and other sectors, the Company has actually participated in the supply chain systems of a variety of top-tier clients, consisting of Bosch Rexroth and Kone Elevator. The Company’s strong and integrated relationships with the leading gamers in each of these sectors put it at a tactically advantaged position to record the growing need therefrom.First-mover Advantage in the REPM Industry Characterized by Customer Stickiness and High Entry Barriers.The REPM market is identified by strong client stickiness and high entry barriers. The quality of NdFeB PMs has a considerable influence on the efficiency and quality of the consumers’ end products, so clients tend not to alter their provider quickly. JL MAG leverages its expert and technical competence in high-performance NdFeB PMs to take part in the brand-new item style of the clients, helping clients to enhance their items’ efficiency and decrease production expense. The Company displays high responsiveness to customers’ specialized requirements of producing non-standardized items. Its strong R&D capability, supplemented with execution ability and quality assurance have actually made it possible for the Company to continuously fulfill the requirements set by the clients, which in turn has actually added to its success in structure and keeping strong relationships with them.Due to the fact that of the high barriers in clients’ accreditation, JL MAG’s status as a recognized provider of numerous leading consumers boosts its brand name acknowledgment and credibility, allowing it to utilize the first-mover benefit to protect its recognized leading position in the market and more broaden the consumer base.Strong R&D Capabilities for Production Optimization and Global-leading GBD Technologies.The production of high-performance NdFeB PMs has high technical barriers. JL MAG enhances the solutions to assist the consumers in the wind power sector minimize their production expenses through reducing the medium and heavy unusual earth included the production of high-performance NdFeB PMs. In addition, the Company uses its exclusive GBD innovation to accomplish mass production and establish top-quality items for Energy-saving VFACs sector and NEVs and automobile parts sector that significantly decrease using medium and heavy uncommon earth while keeping high efficiency. According to Frost & Sullivan, the GBD innovation can usually lower making use of medium and heavy uncommon earth by 50%to 70%. The Company’s GBD innovation is commonly used in the production of its high-performance NdFeB PM ended up items in Energy-saving VFACs sector and NEVs and automobile parts sector. It is likewise used in the production of particular high-performance NdFeB PM ended up items in 3C sector.Long-lasting and Stable Strategic Cooperation with Major Rare Earth Suppliers.JL MAG has actually preserved long-lasting and firm tactical cooperation with significant unusual earth providers. 5 out of the 6 uncommon earth groups in China are the Company’s unusual earth providers. Amongst its providers, China Southern Rare Earth was the 2nd biggest uncommon earth mining group in China by yearly uncommon earth mining quota which was 42,450 tonnes in 2021, accounting for roughly 25.3%of the nationwide mining quota in the exact same year. Its output primarily consists of medium and heavy uncommon earth. China Southern Rare Earth was amongst the Company’s 5 biggest providers throughout the Track Record Period. The Company has actually likewise developed company and tactical cooperative relationship with crucial unusual earth providers such as China Southern Rare Earth and China Northern Rare Earth to guarantee the long-lasting and steady supply of unusual earth. In China, light unusual earth mines are primarily situated in Baotou of the Inner Mongolia Autonomous Region while medium and heavy unusual earth deposits are generally situated in southern areas, consisting of Ganzhou, Jiangxi. As an outcome, the Company’s properties in Ganzhou and Baotou enhance it with expense benefit, practical shipment and the steady and trusted supply of unusual earth products.On December 23, 2021, a brand-new uncommon earth giant, specifically, China Rare Earth Group Co., Ltd, was developed through a merger of leading state-owned operations. China Rare Earth Group Co., Ltd was collectively established by Aluminum Corporation of China, China Minmetals Corporation, Ganzhou Rare Earth, China. Iron & Steel Research Institute Group and Grinm Group Corporation Ltd. The newly-established China Rare Earth Group Co., Ltd will run under the direct guidance of SASAC. The facility of China Rare Earth Group Co., Ltd contributes to incorporating resources, enhancing applications of brand-new innovations and products and promoting the long-lasting noise advancement of the unusual earth market.Extremely Experienced and Committed Management Team with Visionary Leadership and Proven Execution Capabilities.JL MAG’s tested performance history of effective operations and leading market position bears testimony to its management group’s management and execution expertise. Led by the Chairman and president, Mr. Cai Baogui, the Company has a deep bench of extremely certified core management group with complementary strengths and a R&D group which is led by 2 provincial level clinical and technological skills. The management group has deep market background and substantial man agement and functional experience. Together with its senior management, workers’ technical competence, integrated with comprehensive knowledge collected in performing R&D jobs, JL MAG has actually ended up being a crucial provider in the supply chain systems of leading business in numerous carbon-reduction sectors, and attaining long performance history of top quality items consequently underpinning the Company to strengthen its recognized market existence and end up being the No. 1 worldwide leader in the REPM market.Mr. Cai Baogui, the Chairman, Executive Director and General Manager of JL MAG Rare-Earth Co., Ltd. stated, “In action to environment modification, federal governments on the planet are taking active actions to promote brand-new energy and minimize carbon emission. Particularly, China prepares to reach carbon peak by 2030 and carbon neutrality by2060 As REPMs embody a fundamental benefit in decreasing carbon emission, under the worldwide patterns of carbon emission decrease, the need of REPMs for downstream markets will constantly increase. In order to record the growing downstream need, JL MAG prepares to even more scale up its production capability, broaden its market chain through selective acquisitions or tactical financial investments, even more reinforce its R&D efforts in enhancing the production strategies and diversify the present item portfolio, and understand the tactical chance duration of upward advancement of the market to proactively broaden the worldwide organization footprint. Looking forward, JL MAG is devoted to assisting in the pursuit of carbon peak and carbon neutrality both in China and around the globe through production and arrangement of high-performance NdFeB PMs and recognizing its objective of ‘Better Life with Rare Earths’.”.Subject: Press release summary.Sectors: Metals & Mining. http://www.acnnewswire.com. From the Asia Corporate News Network.Copyright © 2022 ACN Newswire. All rights scheduled. A department of Asia Corporate News Network.
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