Research Express | Galaxy Magnetic Materials Conducts Investor Research on Termination of Reorganization, Responds to Core Issues Including Product Structure and Market Value Management

Log in to Sina Finance App and search for [Information Disclosure] to see more evaluation levels

On March 16, Galaxy Magnet (code not mentioned) held an investor briefing on the termination of the issuance of shares and cash purchase of assets, as well as the fundraising of supporting funds. The company responded to questions from investors regarding the reasons for the termination of the restructuring, product structure, customer dependence, market value management, and other issues. The briefing was held online via the Panorama Network “Investor Relations Interactive Platform,” with company management and representatives participating.

Basic Information of the Investor Briefing

Key Issue Responses

Reasons for Termination of Restructuring: Transaction Price Not Agreed Upon

In response to investors’ concerns about the reasons for the termination of the restructuring, Tang Mingxing, chairman of the target company, stated that the termination of cooperation with Galaxy Magnet was mainly due to the inability of both parties to reach an agreement on core terms such as the transaction price. However, this does not affect the company’s current operations and future development. Galaxy Magnet added that the termination decision was made after careful consideration to protect the interests of all shareholders, especially small and medium shareholders, and the company’s interests. It has no significant adverse impact on the company’s existing operations and strategic development.

Product Structure and Customer Dependence: Diverse Varieties, No Excessive Dependence

An investor asked whether the products such as bonded NdFeB magnets and hot-pressed NdFeB magnets are single varieties and whether there is over-reliance on major customers. The company responded that it offers a wide range of magnet varieties and specifications, with no issue of product homogeneity. It maintains a mutually beneficial relationship with downstream customers, expanding the market through high-quality products and services, and does not rely excessively on any large customer.

Samarium-Cobalt Magnet Business: Focus on Market Development, No Immediate Capacity Expansion

Regarding whether to expand capacity for the samarium-cobalt magnet business (currently accounting for less than 2%, with higher gross margins), the company stated that current capacity can meet order demands. In the future, it will focus on developing the samarium-cobalt magnet market to increase sales revenue. When asked about the impact of national restrictions on exports of core materials for military-grade samarium-cobalt magnets, the company did not directly respond to cooperation or expansion plans, only emphasizing its focus on main business.

Magnetic Powder Project Progress: Silver Magnetic Material Phase II to be Operational in 2026

Investors inquired about the magnetic powder supplier for the wholly owned subsidiary Chengdu Silver Magnetic Material and the prospects for Phase II. The company explained that the upstream suppliers of Silver Magnetic Materials are manufacturers of Nd, Pr-Nd metals, etc. Its high-performance rare earth permanent magnet project (Phase II) is scheduled for completion and operation in 2026. The company will continue to focus on its main business and explore related opportunities as appropriate.

Market Value Management: Performance-Centric, Market Fit Focus

Regarding the long-term “market value divergence” (not outperforming the broader market and industry indices, falling below key support levels), the company stated it will strive to improve performance to reward shareholders. It also noted that stock price fluctuations are influenced by overall market conditions, policies, industry trends, and investor risk appetite, which are outside the company’s direct control. The company hopes its market value can better align with its performance.

Future M&A Plans: Subject to Official Announcements

When asked whether it will continue to expand capital through “mergers and acquisitions with private placements,” the company responded that it will strictly disclose relevant information according to disclosure requirements. Please refer to official announcements for details.

Other Important Responses

• Dividend Policy: The company has maintained steady dividends since listing and will continue to adhere to its main business and stable development strategy.
• Information Disclosure: In response to investor concerns about disclosure timing, the company emphasized strict compliance with timely and proper disclosure requirements.
• Impact of New Patents: The new patent for “Anisotropic Bonded Magnets” currently cannot be predicted to have a specific impact on profits.

Galaxy Magnet stated that after this restructuring termination, the company will continue to focus on its core business, enhance core competitiveness through technological R&D and market expansion, and safeguard shareholders’ rights.

Disclaimer: The market involves risks; investments should be cautious. This article is automatically published by an AI model based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to official announcements for accuracy. For questions, contact biz@staff.sina.com.cn.

Click to view the original announcement>>