China Northern Rare Earth Receives Warning Letter

Deep News2025-10-13

On October 13, China Northern Rare Earth(Group)High-Tech Co.,Ltd. received a warning letter from the Inner Mongolia Securities Regulatory Bureau.

China Northern Rare Earth(Group)High-Tech Co.,Ltd. announced on the evening of October 13 that the company received a "Decision on Issuing a Warning Letter to China Northern Rare Earth (Group) High-Tech Co., Ltd." from the Inner Mongolia Securities Regulatory Bureau on the same day.

According to the warning letter, from February 2019 to December 2024, China Northern Rare Earth(Group)High-Tech Co.,Ltd.'s subsidiary Baogang Group Energy Conservation and Environmental Protection Technology Industry Co., Ltd. (hereinafter referred to as "Energy Conservation Company") cumulatively paid wages, welfare expenses, insurance premiums and other costs totaling 8.9485 million yuan for Inner Mongolia Baoyu Environmental Protection New Materials Co., Ltd. (hereinafter referred to as "Baoyu Environmental Protection Company"). The Energy Conservation Company was acquired by China Northern Rare Earth(Group)High-Tech Co.,Ltd. from its controlling shareholder in June 2021, and related expenses totaling 5.8761 million yuan were incurred after the acquisition. As of December 31, 2024, Baoyu Environmental Protection Company has fully repaid the above advance payments totaling 8.9485 million yuan.

The above behavior constitutes non-operating fund occupation by related parties. China Northern Rare Earth(Group)High-Tech Co.,Ltd. failed to fulfill its information disclosure obligations regarding this matter in accordance with relevant regulations, which does not comply with Article 1, Item (2) of the "Notice on Regulating Fund Transactions between Listed Companies and Related Parties and External Guarantees by Listed Companies (2017 Amendment)" and violates relevant regulatory provisions. The Inner Mongolia Securities Regulatory Bureau decided to issue a warning letter to China Northern Rare Earth(Group)High-Tech Co.,Ltd. as a regulatory measure and record it in the securities and futures market integrity archives.

On October 13, China Northern Rare Earth(Group)High-Tech Co.,Ltd.'s stock price closed at the daily limit up, with a latest market capitalization of 208.7 billion yuan.

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