China Rare Earth Group Resources Technology Co., Ltd. (hereinafter referred to as "China Rare Earth") released a trading suspension announcement on the evening of October 30. The company received a notice from its controlling shareholder, China Rare Earth Group Co., Ltd. (hereinafter referred to as "China Rare Earth Group"), stating that the company plans to acquire equity in Zhongxi (Liangshan) Rare Earth Co., Ltd. (hereinafter referred to as "Zhongxi Liangshan") through the issuance of shares, while simultaneously raising matching funds.
This transaction is expected to constitute a major asset restructuring and a related-party transaction, without triggering a reverse takeover. The announcement also indicated that the company's shares will be suspended from trading starting Monday, November 2, 2026, and the transaction plan is expected to be disclosed within no more than 10 trading days, meaning relevant information will be published as required before November 16, 2026. If the board of directors fails to convene, deliberate, and disclose the transaction plan within the aforementioned period, the company's shares will resume trading no later than Monday, November 16, 2026, and the planning of related matters will be terminated. The company also committed not to plan any major asset restructuring for at least one month from the date of disclosing the relevant announcement. This restructuring is still in the planning stage, and the transaction plan has not yet been finalized. Subsequent details will be disclosed in the restructuring preliminary plan and the restructuring report.
China Rare Earth is a leading enterprise in the domestic medium and heavy rare earth smelting and separation industry, primarily engaged in rare earth resource development, smelting and separation, and deep processing of rare earths. Its products cover medium and heavy rare earth oxides and rare earth metals, which are widely used in high-end manufacturing fields such as permanent magnet materials, new energy vehicles, industrial motors, and military equipment. In recent years, under the coordination of China Rare Earth Group, the listed company has continuously advanced resource integration, enhanced its self-owned ore source guarantee capacity, reduced the cost of externally purchased raw materials, and smoothed out cyclical fluctuations.
A non-ferrous metals industry analyst told reporters: "This round of asset restructuring is a continuation of the specialized integration by China Rare Earth Group. Once the injection is completed, the listed company's resource volume will significantly expand, and its production capacity layout will extend to the Liangshan production area in Sichuan. Coupled with the continuous optimization of the supply and demand structure in the rare earth industry and the steady rise in downstream demand from new energy and permanent magnet motors, the dual expansion of resources and production capacity will continuously open up the company's medium- to long-term growth space."
Shortly before the restructuring news emerged, China Rare Earth had just disclosed its 2026 third-quarter report, with performance rebounding significantly and profit quality improving substantially. According to the third-quarter report data, the company achieved operating revenue of 2.657 billion yuan in the first three quarters, a year-on-year increase of 6.52%; net profit attributable to shareholders of the listed company was 408 million yuan, a sharp year-on-year increase of 112.37%; and net profit after deducting non-recurring gains and losses was 411 million yuan, a year-on-year increase of 123.07%.
"Domestic rare earth industry regulation continues to tighten, with rigid control over total mining quotas, and medium and heavy rare earth supply remains stable. Meanwhile, downstream demand from new energy vehicles, servo motors, wind power permanent magnets, and other sectors continues to expand. The tight balance between supply and demand is maintained over the long term, providing a stable profit environment for rare earth smelting and separation enterprises. As high-quality assets from the group continue to be injected, China Rare Earth's resource territory will continue to expand, and the advantages of industry chain integration will be further highlighted," said Zhu Keli, founding president of the Guoyan New Economy Research Institute.
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