China Northern Rare Earth (600111.SH) Receives Warning Letter from Inner Mongolia CSRC Branch

Stock News2025-10-13

China Northern Rare Earth(Group)High-Tech Co.,Ltd. (600111.SH) announced that on October 13, 2025, the company received a "Decision on Issuing a Warning Letter to China Northern Rare Earth (Group) High-Tech Co., Ltd." from the Inner Mongolia Branch of China Securities Regulatory Commission (Inner Mongolia CSRC Branch).

According to the investigation, from February 2019 to December 2024, the company's subsidiary Baotou Steel Group Energy Conservation and Environmental Protection Technology Industry Co., Ltd. (Energy Conservation and Environmental Protection Company) cumulatively paid personnel wages, welfare fees, insurance costs, and other expenses totaling RMB 8.9485 million to Inner Mongolia Baoliu Environmental Protection New Materials Co., Ltd. (Baoliu Environmental Protection Company). The Energy Conservation and Environmental Protection Company was acquired by the company from its controlling shareholder in June 2021, and related expenses of RMB 5.8761 million were incurred after the acquisition. As of December 31, 2024, Baoliu Environmental Protection Company has fully repaid the aforementioned advance payments totaling RMB 8.9485 million.

The above conduct constitutes non-operational fund occupation by related parties, and the company failed to fulfill its information disclosure obligations regarding this matter in accordance with relevant regulations. Such conduct does not comply with Article 1, Paragraph (2) of the "Notice on Regulating Fund Transactions Between Listed Companies and Related Parties and Several Issues Concerning External Guarantees by Listed Companies (2017 Amendment)," and violates Article 3, Paragraph 1 of the "Administrative Measures for Information Disclosure of Listed Companies" (CSRC Order No. 182) and Article 5, Item 1 of the "Listed Company Regulatory Guidelines No. 8 - Regulatory Requirements for Listed Company Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26).

In accordance with Article 52, Item 3 of the "Administrative Measures for Information Disclosure of Listed Companies" (CSRC Order No. 182) and Article 23 of the "Listed Company Regulatory Guidelines No. 8 - Regulatory Requirements for Listed Company Fund Transactions and External Guarantees" (CSRC Announcement [2022] No. 26), the Inner Mongolia CSRC Branch has decided to impose a warning letter regulatory measure on the company and record it in the securities and futures market integrity files.

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