China Rare Earth Nonferrous Metals Co.,Ltd. (600259.SH) has released its semi-annual report for 2026, showing a significant jump in profitability despite a slight dip in revenue.
During the reporting period, the company achieved operating revenue of 2.506 billion yuan, a year-on-year decrease of 6.38%. However, net profit attributable to shareholders of the listed company soared to 403 million yuan, marking an impressive 456.51% increase compared to the same period last year.
Excluding non-recurring gains and losses, the net profit attributable to shareholders reached 404 million yuan, up 340.23% year-on-year. This represents an increase of 312.2265 million yuan from the previous period, primarily driven by shifts in the supply-demand dynamics of the rare earth industry and steady price appreciation of major rare earth products during the first half of the year.
Seizing these market opportunities, the company leveraged its innovative integrated business model to boost sales gross profit. Additionally, its associate company, Dabaoshan, capitalized on favorable market conditions to achieve stable, high-yield production, leading to a year-on-year increase in investment income recognized under the equity method.
Net cash flows from operating activities stood at -176.2476 million yuan, representing an increase in net cash outflows of 101.1003 million yuan compared to the prior year. This change is attributed to higher inventory reserves and increased accounts receivable from business expansion during the reporting period, which drove up operating cash outflows. In contrast, the same period last year benefited from discounting large amounts of held notes receivable at the start of the year, which boosted operating cash inflows and resulted in relatively lower net outflows.
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