Supported by sustained high rare earth prices, increased production and sales of key products, and ongoing operational efficiency improvements, China Northern Rare Earth(Group)High-Tech Co.,Ltd. anticipates its net profit attributable to shareholders for the first half of 2026 to surge by 112.74% to 121.33% year-on-year, with adjusted net profit expected to grow 121.90% to 130.82%.
In a preliminary earnings announcement released on July 14, the company projected H1 net profit attributable to shareholders to reach between 19.8 billion and 20.6 billion yuan, a significant increase from 9.3 billion yuan in the same period last year. Adjusted net profit is forecast to be between 19.9 billion and 20.7 billion yuan, up from 8.966 billion yuan a year earlier.
The company attributed the strong performance to an overall strengthening of rare earth product prices, record-high historical output for its main products, and continued progress in cost reduction, efficiency enhancement, lean management, and digital transformation initiatives.
Strong Rare Earth Prices and Higher Volumes Fuel Profit Surge
The company stated that during the first half of 2026, rare earth product prices exhibited a pattern of "strengthening with fluctuations," influenced by constraints on raw material supply and robust downstream demand from sectors like new energy vehicles, industrial motors, and wind power.
Concurrently, the company achieved record-high historical output for its rare earth smelting and separation products, rare earth metal products, and new rare earth material products. This combination of rising prices and increased volumes provided direct support for the earnings growth.
As an integrated leader covering the entire chain from rare earth smelting and separation to metals and new materials, the company possesses strong earnings elasticity during periods of rising rare earth prices. The dual effect of higher product prices and increased capacity utilization has further amplified its economies of scale.
Ongoing Capacity Ramp-Up and Accelerated Project Implementation
The announcement indicated that the company continued to advance key project construction in the first half. Notably, the first phase of its green rare earth smelting upgrade project has commenced production with full process integration, while the second phase is progressing steadily.
Expansion, merger and acquisition, and joint venture projects across the industrial chain, including rare earth metals, magnetic material alloys, magnets, and secondary resource utilization, are also being actively pursued, laying the groundwork for future capacity release.
On the production front, the company enhanced efficiency and mitigated cost pressures from rising raw and auxiliary material prices by optimizing production schedules, strengthening process management, and implementing digital and intelligent upgrades. Quality control and material utilization rates improved in the rare earth metals segment, while the new materials segment fully utilized its newly added capacity, promoting sales through production.
Sustained High Growth in Magnetic Materials and Progress in New Ventures
Subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. maintained its high-growth trajectory, achieving approximately 9.5 billion yuan in operating revenue for H1, a year-on-year increase of about 107%, marking the third consecutive year of growth. Demand for permanent magnet materials, driven by new energy vehicles and industrial automation, continues to rise and serves as a key growth engine.
Simultaneously, the company made strides in its hydrogen energy sector layout. Its subsidiary, Inner Mongolia Xi'ao Ke Hydrogen Storage Alloy Co., Ltd., has deployed its first batch of 1,000 hydrogen-powered two-wheelers in Baotou, which have accumulated over 170,000 kilometers of safe operation, with related demonstration applications underway.
Regarding sales, the company further expanded cooperation with leading magnetic material enterprises. Sales volumes of lanthanum-cerium products and polishing materials increased year-on-year, inventory was continuously optimized, and the development of new equipment and customized products has helped to broaden downstream application scenarios.
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