Northern Rare Earth’s net profit in the first half is expected to increase by over 112%, with both volume and price of rare earths rising. The output of its three major products reached a record high for the same period | Financial Report Insights

Northern Rare Earth’s net profit in the first half is expected to increase by over 112%, with both volume and price of rare earths rising. The output of its three major products reached a record high for the same period | Financial Report Insights

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Driven by rare earth prices remaining high, increased sales of major products, and continued improvement in operational efficiency, Northern Rare Earth expects net profit attributable to the parent company in the first half of 2026 to increase year-on-year by 112.74%-121.33%, and net profit excluding non-recurring items to grow by 121.90%-130.82%.

On July 14, Northern Rare Earth issued a half-year 2026 performance forecast, estimating net profit attributable to the parent company in the first half at 19.8 to 20.6 billion yuan, compared with 9.3 billion yuan in the same period last year; it expects net profit excluding non-recurring items to be 19.9 to 20.7 billion yuan, versus 8.966 billion yuan last year.

The company stated that the growth of performance in this period mainly benefits from the overall strengthening of rare earth product prices, record-high output of major products, and sustained efforts in cost reduction, efficiency improvement, lean management, and digital-intelligent transformation.

Rare Earth Prices Strengthen; Rising Volume and Price Drive Significant Profit Growth

Northern Rare Earth stated that in the first half of 2026, due to constraints in raw material supply and ongoing growth in downstream demand such as new energy vehicles, industrial motors, and wind power, rare earth product prices showed an overall "strong and volatile" trend.

Alongside price increases, the company’s output of rare earth smelting and separation products, rare earth metal products, and rare earth new material products all hit historic highs for the period, resulting in a simultaneous rise in both quantity and price, directly supporting performance growth.

As an integrated leader covering rare earth smelting, separation, metal, and new materials, the company has strong profit elasticity during the upswing phase of rare earth prices, with product price increases combined with improved capacity utilization further amplifying scale effects.

Continuous Capacity Release, Accelerated Implementation of Industry Chain Projects

The announcement shows the company continued advancing key projects in the first half. Among them, the first phase of the rare earth green smelting upgrade project has been put into operation and integrated across all lines, while phase two progresses steadily; expansion, mergers and acquisitions, and joint ventures in the rare earth metal, magnetic alloy, magnet, and secondary resource utilization industry chain are also being actively pursued, supporting further capacity release.

On the production side, the company optimized production plans, strengthened process management, and advanced digital-intelligent transformation, improving production efficiency and alleviating the cost pressure from rising raw and auxiliary material prices. The rare earth metal segment has improved quality control and material utilization, while the new materials segment has fully leveraged added capacity to boost sales through increased output.

Magnet Business Maintains High Growth; Hydrogen Energy and Other New Businesses Advance

Subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. continued its high-growth trend, achieving about 9.5 billion yuan in revenue in the first half, up about 107% year-on-year, marking three consecutive years of growth. Permanent magnet material demand, driven by new energy vehicles and industrial automation, continues to rise, becoming a major engine for company growth.

Meanwhile, the company has also made progress in its hydrogen energy initiatives. Its subsidiary, Inner Mongolia Rare Aoke Hydrogen Storage Alloy Co., Ltd., launched the first batch of 1,000 hydrogen energy two-wheelers in Baotou, accumulating a safe driving mileage of 170,000 kilometers, with related demonstration applications underway.

In sales, the company further expanded cooperation with leading magnet enterprises, increased sales of lanthanum-cerium products and polishing materials year-on-year, continued to optimize inventory, and newly developed multiple pieces of equipment and customized products, continually broadening downstream application scenarios.

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