JL Mag Rare-Earth guarantees subsidiary loan for working capital

Jiangxi JL Mag Rare-Earth Co., Ltd. (JL Mag Rare-Earth) has provided a new guarantee for its subsidiary, Jiangxi JL Mag Bonded Magnet Co., Ltd., for a working capital loan. This guarantee, formalized on September 9, 2025, with Industrial and Commercial Bank of China, Ganzhou Zhangjiang Branch, secures a loan with a maximum outstanding balance of RMB 5 million. The guarantee is a joint and several liability, with a term of three years from the maturity date of the primary loan agreement.

This action falls within the scope of a previously approved comprehensive credit line and guarantee resolution passed by JL Mag Rare-Earth's board of directors on March 28, 2025, and by shareholders on May 28, 2025. The total approved guarantee amount for JL Mag Bonded Magnet was RMB 10 million. Following this new guarantee, the remaining available guarantee amount for JL Mag Bonded Magnet is RMB 5 million.

As of the announcement date, JL Mag Rare-Earth's total effective guarantees for its subsidiaries, including this new one, amount to RMB 16.05 million. This figure represents 22.88% of the company's net assets as per its latest audited financial statements. The company confirmed no overdue external guarantees, no guarantees involved in litigation, and no losses from legally mandated external guarantees.