China Northern Rare Earth High-Tech (600111) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached RMB 25.80 billion, up 36.75% year-over-year, with net profit attributable to shareholders at RMB 2.05 billion, a 120.46% increase year-over-year.

• All major product lines, including rare earth metals, magnetic materials, and functional materials, achieved record-high output and sales volumes, driven by robust downstream demand and effective production and marketing strategies.

• The company accelerated key project investments, expanded capacity, and deepened R&D, with significant capital deployed in green metallurgy, new materials, and technology innovation platforms.

• Market share and brand influence improved, with the company maintaining its position as the largest rare earth enterprise in China and a global industry leader.

Financial highlights

• Operating income: RMB 25.80 billion, up 36.75% year-over-year.

• Net profit attributable to shareholders: RMB 2.05 billion, up 120.46% year-over-year.

• Operating cash flow: RMB 1.21 billion, up 30.57% year-over-year.

• Basic and diluted EPS: RMB 0.5679, up 120.46% year-over-year.

• Gross margin improved, with main product prices and sales volumes rising.

Outlook and guidance

• The company expects continued strong demand in new energy, high-end manufacturing, and emerging application sectors, supporting further growth in rare earth materials and downstream products.

• Ongoing investments in R&D, capacity expansion, and digital transformation are set to enhance competitiveness and value creation.

• The company will continue to focus on risk management, cost control, and market expansion to sustain high-quality growth.