Recently, Northern Rare Earth issued an announcement stating that the company expects to achieve a net profit attributable to owners of the parent company of RMB 2,176 million to RMB 2,356 million in 2025, representing an increase of RMB 1,172 million to RMB 1,352 million compared to the same period last year, or a year-on-year increase of 116.67% to 134.60%; it expects to achieve a net profit attributable to owners of the parent company excluding non-recurring gains and losses of RMB 1,960 million to RMB 2,140 million, representing an increase of RMB 1,059 million to RMB 1,239 million compared to the same period last year, or a year-on-year increase of 117.46% to 137.43%.
2025 is the final year of the "14th Five-Year Plan" and a key year for Northern Rare Earth to deepen high-quality development and improve operational efficiency. Facing a complex and changing domestic and international situation and market environment, the company has taken the lead in implementing national industrial policies, followed its strategic development plan, closely followed market changes, focused on annual production and operation targets, strengthened comprehensive budget management, deepened benchmarking improvement, cost reduction, quality enhancement, and efficiency improvement. It scientifically coordinated production scheduling, strengthened market research and forecasting, intensified marketing efforts to seize market opportunities. It accelerated the construction of key projects, deepened scientific research and management innovation, and strengthened assessment incentives and constraints. By fully leveraging the stable domestic circulation demand pattern and advantages, the company pursued development and increased efficiency, focused on innovation and talent gathering, optimized industries and promoted transformation, advanced reforms and strengthened management, coordinated policies and synergistic efforts in all aspects of production and operation management, continuously enhanced core functions, core competitiveness, and value creation capabilities, laying a solid foundation for the company's operating performance to achieve a significant year-on-year increase.
In terms of production and marketing, the company adhered to the concept of green development and the quality philosophy of "users first, brand supreme", coordinated and promoted the "five unifications" (unified development planning, unified technology sharing, unified planned production, unified raw material supply, unified coordinated maintenance) scientific production organization model, and strengthened the coordinated linkage of research, production, and sales. It advanced product structure adjustment and process technology upgrades, enriched product categories to meet differentiated market demands. It carried out multi-dimensional benchmarking in depth, promoted full-process linkage cost reduction, further reduced processing full costs year-on-year, and achieved significant systematic cost reduction results. Guided by market demand, it optimized the marketing system, innovated marketing strategies, and intensified market development, achieving for the first time in recent years that annual sales of lanthanum-cerium products exceeded production, with significant results in digesting lanthanum-cerium product inventory. The production and sales volumes of the company's main products such as smelting and separation, rare earth metals, rare earth functional materials, and rare earth permanent magnet motors achieved varying degrees of year-on-year growth, providing energy-saving and carbon-reducing rare earth material options for the development of new energy and other industries.
In terms of industrial system construction, the company continuously consolidated the industrial foundation, fully strengthened its scale advantages, and accelerated the construction of key projects as well as the high-end, intelligent, and green transformation and upgrading of the industry. The first phase production line of the new generation rare earth green mining, beneficiation, and green smelting upgrade project was fully connected, while the second phase construction commenced and is being advanced at an accelerated pace. Mergers and reorganizations, joint ventures and cooperation, capacity expansion and production increase projects in the rare earth metal, magnetic material alloy, magnet, and secondary resource utilization industry chains were efficiently promoted. Multiple projects of the subsidiary Northern Magnetic Materials' 50,000-ton magnetic material alloy Phase I project, Northern Zhaobao's 3,000-ton magnet project, and others were completed and put into operation. Some scientific research achievement transformation projects achieved large-scale production, further improving the company's production efficiency, further consolidating core competitive advantages, and further enhancing the value creation capability of the industry chain.
In terms of scientific research and innovation empowerment, the company increased support for scientific and technological innovation, reformed the scientific research mechanism, improved the scientific research management system, fully leveraged the role of scientific research platforms to enhance research efficiency, and drove performance growth through scientific research and innovation. Serving major national and regional science and technology strategies, docking with the market to promote achievement transformation, focusing on breakthroughs with both research and application, developing multiple new processes, new equipment, and new products, promoting iterative upgrades in the company's process technology and equipment manufacturing capabilities, driving the industry chain to extend to high-value and high-end fields, and elevating the value creation level of the industry chain.
