Magnesium alloys have received a lot of attention in aerospace, automotive, electronic communications and other fields due to their low density, high specific strength and damping performance. However, magnesium alloy sheets prepared by conventional thermomechanical processing usually have a strong basal texture, resulting in poor formability. In this paper, Mg–Mn–Ce alloys with good plastic forming ability were prepared by studying and optimizing the annealing process. Under the low-temperature annealing condition, it can promote the static recrystallization and grain refinement of Mg–Mn–Ce alloy, and also eliminate the internal stress. With the increase of annealing temperature, a large amount of dispersed Mg12Ce as a stable second phase effectively hindered the grain boundary migration, while the nanoscale α-Mn forms a fine second phase to inhibit grain growth, and both of them together greatly stabilize the deformation structure of the alloy, and maintain a good grain organization under the condition of annealing temperature of 300 °C and holding time of 30 min. The present work also improves the Arrhenius constitutive equation for the Mg–Mn–Ce alloy with respect to the degree of deviation, which significantly improves the accuracy of the model in predicting the thermoforming behavior. Meanwhile, to address the shortcomings of the traditional forming method of magnesium alloy, the processing process of spreading the centrifugal casting tube flat is proposed, the forming process is simulated, and the location of easy breakage in the forming process is predicted. These findings provide microanalytical support for the improvement of forming properties of magnesium alloys by annealing.