China Northern Rare Earth High-Tech (600111) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 12.99 billion, down 21.19% year-over-year due to lower rare earth product prices.

• Net profit attributable to shareholders was RMB 45.40 million, a 95.70% decrease year-over-year.

• Rare earth product output and sales volumes reached historical highs, but average prices fell sharply.

• Company maintained industry leadership and increased market share despite adverse market conditions.

Financial highlights

• Operating income: RMB 12.99 billion, down 21.19% year-over-year.

• Net profit: RMB 45.40 million, down 95.70% year-over-year.

• Operating cash flow: RMB 68.46 million, down 92.07% year-over-year.

• Basic and diluted EPS: RMB 0.0126, down 95.70% year-over-year.

• Gross margin and net margin declined due to lower product prices.

Outlook and guidance

• Rare earth product prices expected to stabilize and potentially rebound in the short term due to supportive policies.

• Long-term industry outlook remains positive with continued policy support and market normalization.

• Company will focus on cost control, innovation, and expanding high-value downstream applications.