Shenghe Resources Holding Co.,Ltd. (600392.SH) has released a positive profit forecast for the full year of 2025. The company anticipates its net profit attributable to equity owners of the parent company to reach between 790 million yuan and 910 million yuan, representing a substantial year-on-year increase of 281.28% to 339.20%.
During the reporting period, the overall rare earth market experienced an upswing, driven by factors including rare earth industrial policies and the international geopolitical situation. The average annual selling price of major rare earth products saw a significant increase compared to the previous year.
Capitalizing on favorable market conditions, the company promptly adjusted its product mix, optimized production and sales structures, and enhanced management efficiency and cost control. As a result, the sales volume of its primary products rose year-on-year, which in turn drove the substantial growth in its financial performance.
In the fourth quarter of 2025, the company consolidated Peak Rare Earths Limited (Peak). Peak is currently in the preliminary project development phase and has not yet commenced commercial production or operations, resulting in losses. Additionally, prices for some medium and heavy rare earth products, as well as zirconium and titanium products, declined. In accordance with accounting standards, the company recognized inventory write-downs for these specific products. These factors collectively had a negative impact on the company's performance in the fourth quarter of 2025, leading to a sequential decline from the previous quarter.
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