China Northern Rare Earth High-Tech: Revenue and net profit soared, with record rare earth product output and strong project progress

Revenue rose 45.24% and net profit jumped 1,951.52% year-over-year, with strong cash flow and improved return on equity. No profit distribution is planned, and the shareholder structure remains stable.

Original document: China Northern Rare Earth (Group) High-Tech Co., Ltd. Class A [600111] Interim report — Aug. 27 2025

Revenue and net profit surged 45.24% and 1,951.52% year-over-year, driven by higher rare earth product prices and sales. Production and sales of rare earth metals and functional materials reached record highs, and the company maintained its industry leadership.

Original document: China Northern Rare Earth (Group) High-Tech Co., Ltd. Class A [600111] Interim report — Aug. 26 2025

By Sherry Qin

Chinese rare-earth stocks rose sharply after Chinese authorities published new rules to strengthen oversight of production and trading of the critical minerals.

Rare-earth stocks surged in Hong Kong and mainland China markets on Monday. JL Mag Rare-Earth closed 14% higher and Zijin Mining advanced 6.4% in Hong Kong. China Northern Rare Earth (Group) High-Tech ended 9.9% higher in Shanghai and ZheJiang ZhongKe Magnetic advanced 6.5% in Shenzhen.

The gains came after China's Ministry of Industry and Information Technology published the latest regulations on Friday, setting output controls on rare-earth mining and smelting, and requiring companies to closely monitor and report product flows. The new rules took effect July 28.

China's dominant position in supplying rare-earth magnets and metals has been a powerful bargaining chip in trade negotiations with the U.S. After years of taking market share from the West, the country now produces about two-thirds of the world's rare-earth minerals, and processes around 90% of the supply.

Producers must record and submit monthly reports on the circulation of rare-earth products--critical for electric vehicles, jet fighters and wind turbines--to a government-run tracking system, according to the rules.

The rules specify that China's quota system applies not only to domestically produced materials but also imported materials for refining.

"China is implementing a wider range and higher level of monitoring on industry supply," Sinolink Securities analysts said in a research note, comparing the latest rules with the measures that were issued for public comment in February.

With the MIIT and the Ministry of Natural Resources deciding which entities are eligible for rare-earth production, the rules signal China's determination to strengthen its control over rare-earth supply, Sinolink added.

Write to Sherry Qin at sherry.qin@wsj.com

By Tracy Qu

Shares of one China's top producer of rare earths climbed Thursday after it guided for a massive profit rise, even as trade issues complicate the outlook for the sector.

China Northern Rare Earth rose 10% in Shanghai, hitting the daily limit of gains. That marked the stock's biggest advance since last November, and brings its year-to-date performance to a 27% gain.

The company specializes in so-called light rare earth products, which have a lower atomic weight than other elements of the group of critical materials used in everything from electric vehicles and wind turbines to smartphones.

Exports of rare earths have been a central issue in U.S.-China trade tensions. As part of a pact struck last month, Beijing agreed to ease curbs on exports of the materials in exchange for the removal of some trade restrictions by the U.S.

China's shipments of rare earths fell sharply in April after the U.S. imposed tariffs on Chinese products, but picked up in May, according to official custom data.

At a recent investor relations event, China Northern said that its exports of rare earths recovered to a certain extent in June. Because it mainly produces light rare earths, the company said it is relatively less affected by export controls, according to a transcript on FactSet.

China Northern now expects to report a surge in first-half net profit to 900 million yuan to 960 million yuan, equivalent to $125.3 million to $133.7 million. At the top end of the range, that would be a more than 21-fold increase from the 45.4 million yuan in net profit reported for the first half of 2024.

In a statement on Thursday, China Northern said it has "actively responded" to the uncertainty and instability stemming from factors such as the China-U.S. trade conflict. The company said it has adopted a strategic plan to overcame difficulties and anchor annual production.

Write to Tracy Qu at tracy.qu@wsj.com

China Northern Rare Earth Group High-Tech or CNREHT forecasts an attributable net profit of between 900 million yuan and 960 million yuan in the first half of 2025, compared with 45.4 million yuan a year prior.

The annual growth of between 1,883% and 2,015% is due to stronger production efficiency and strategic project execution, according to a Thursday filing with the Shanghai bourse.

Shares of the rare earth product manufacturer rose more than 6% in recent trade.

China Northern Rare Earth Group High-Tech's net profit attributable to shareholders in the first quarter surged 727% year on year to 430.6 million yuan or 0.1191 yuan per share, according to a Shanghai Stock Exchange disclosure on Wednesday.

The Chinese rare earth product manufacturer's attributable profit a year earlier was 52.1 million yuan or 0.0144 yuan per share.

The company's operating income in the same period jumped 61% to 9.29 billion yuan from 5.76 billion yuan in the previous year, the disclosure said.