Zhenghai Magnet Posts 2026 H1 Revenue of RMB 3.454 Billion, Net Profit RMB 137 Million

Zhenghai Magnet disclosed its 2026 semi-annual report on the evening of August 27. During the reporting period, the company achieved operating revenue of RMB 3.454 billion, up 12.98% year-on-year, and net profit of RMB 137 million, up 20.91%. On a quarterly basis, second-quarter net profit recovered to RMB 90 million, a sequential increase of approximately 90%, indicating sustained improvement in operating momentum during the period. In the first half of 2025, the company faced dual pressures from raw material price fluctuations and intensifying market competition. A year later, while revenue expanded steadily, profit maintained positive growth.

As a leading enterprise in the high-performance NdFeB permanent magnet materials sector, Zhenghai Magnet has continued to tilt its product structure toward high-growth applications. According to earlier company disclosures, in 2025 its products were installed in more than 8 million units of energy-saving and new-energy vehicle motors, up over 40% year-on-year, with 100% coverage of the top ten international automotive brands, the top five domestic auto brands, and the top five new-energy vehicle startups. In the first half of 2026, the company's products were installed in 3.2 million units of energy-saving and new-energy vehicle motors, up 10% year-on-year. In the smart consumer electronics segment, shipment volumes also maintained rapid growth.

Regarding overseas expansion, Zhenghai Magnet has established marketing and service bases in Germany, France, Japan, South Korea, the United States, and Malaysia, initially forming a sales network covering key global markets and holding routine compliance export qualifications. In the first half of 2026, the company achieved export revenue of RMB 817 million, up 40.14% year-on-year.

On the cost side, rare earth raw material price trends significantly affect the company's profitability. In the first half of 2026, the average price of praseodymium neodymium oxide was approximately RMB 731,000 per ton, up more than 70% year-on-year, remaining at relatively high levels. Against this backdrop, the share of heavy-rare-earth-free and ultra-light-rare-earth products continued to rise, and the process coverage of grain optimization technology and heavy rare earth diffusion technology remained at industry-leading levels, partially offsetting the pressure from rising raw material costs.

At the industry level, the per-vehicle usage of high-performance NdFeB in new-energy vehicle drive motors continues to increase, while demand in wind power generation and industrial automation maintains steady growth. On the supply side, China's rare earth permanent magnet output accounts for nearly 90% of the global total, and industry concentration continues to rise, with leading companies' barriers in technology, capacity, and customer resources becoming increasingly entrenched.