Northern Rare Earth expects to achieve a net profit attributable to the parent company of RMB 900 million to RMB 940 million in the first quarter of 2026, an increase of RMB 470 million to RMB 510 million compared to the same period last year, representing a year-on-year increase of 109.14% to 118.43%; it is also expected to achieve a net profit attributable to the parent company after non-recurring gains and losses of RMB 860 million to RMB 900 million, an increase of RMB 425 million to RMB 465 million compared to the same period last year, representing a year-on-year increase of 97.76% to 106.97%.
In the first quarter of 2026, the rare earth market is expected to show an overall strengthening trend, with the prices of major rare earth products fluctuating upward. Northern Rare Earth adheres to the overall tone of seeking progress while maintaining stability, fully and accurately implements the new development concept, accelerates the construction of a new development pattern, and centers on annual production and operation targets. The company makes coordinated plans and implements comprehensive measures, strengthens internal capabilities, and collaborates to make breakthroughs in various areas of production and operation management. The company will identify shortcomings, improve strengths, and reinforce weak areas, strengthen comprehensive budget management, work together to reduce costs, improve quality, and increase efficiency. It will scientifically organize production and scheduling, focus on market marketing operations, deepen reform and innovation, strengthen group management and risk prevention, promote key project construction, and accelerate the development of new production capacity through management and scientific research innovations. This will provide a solid foundation and guarantee for the company to achieve good operating performance through strong industrial chain value creation and core competitiveness.
Northern Rare Earth focuses on targeted strategies for each industrial sector: In the smelting and separation sector, the company will scientifically organize production and scheduling based on production costs and process characteristics of each production line to ensure new product supply needs; In the rare earth metal sector, the company will strengthen lean production concepts and use digital and intelligent methods to further enhance on-site process operation management, driving breakthroughs in quality, material ratio, and other economic and technical indicators; In the rare earth new materials and applications sector, the company will leverage the advantages of new production capacity, accurately match customer demands, and make progress in sales driven by production. The company will deepen industrial chain collaboration and coordination, ensuring stable product supply while consolidating the foundation of cooperation with downstream customers. Sales of rare earth metals and magnetic materials will steadily increase, achieving full coverage of leading magnetic material enterprises. For lanthanum and cerium products, by optimizing marketing strategies, increasing the proportion of long-term contracts, and differentiating and segmenting customers, the company will push product prices back to a reasonable range, with further increases in market share. Magnetic material enterprises will continue to leverage production capacity advantages, steadily increasing the supply in the Baotou region, with coverage reaching over 95%. The sales of high-end polishing materials will show slight growth, and the rare earth permanent magnet motor system’s service capabilities will continue to improve, with the contract amount for individual projects exceeding RMB 10 million for the first time, and the application scenarios further expanded.
Northern Rare Earth focuses on its primary responsibilities and accelerates the construction of key projects and joint venture cooperation. The first phase of the rare earth green smelting upgrade and renovation project has been put into operation, with the production line fully connected. The main structure of the second phase’s main process plant has been completed, and internal construction and equipment procurement are underway. Mergers and acquisitions, joint ventures, and capacity expansion projects in the industry chain, such as rare earth metals, magnetic alloy materials, magnetic bodies, and secondary resource utilization, are progressing in an orderly manner. By seizing market opportunities and implementing coordinated measures both internally and externally, the company continues to strengthen its core competitiveness and core functions, providing a solid guarantee for the first-quarter performance growth and high-quality development.
