In the first three quarters of this year, the performance of several rare earth companies in China has seen a significant decline. Among them, China Rare Earth and Guangcheng Nonferrous suffered losses.
According to a report by Jiemian News, based on incomplete statistics, out of the five leading companies including China Rare Earth, Northern Rare Earth, Shenghe Resources, Xiamen Tungsten, and Guangcheng Nonferrous, only Xiamen Tungsten achieved a net profit growth in the first three quarters. Northern Rare Earth saw a 70% decline in net profit, Shenghe Resources a 40% decline, and both China Rare Earth and Guangcheng Nonferrous fell into losses.
On the revenue side, all five companies experienced varying degrees of decline, with China Rare Earth seeing the largest decrease.
In the first three quarters of this year, China Rare Earth’s revenue was 1.953 billion yuan, a year-on-year decrease of 45.03%; with a net loss of 203 million yuan, a year-on-year decrease of 165.14%.
Northern Rare Earth’s revenue in the first three quarters was 21.56 billion yuan, down by 13.50% year on year; with a net profit of 405 million yuan, a decrease of 70.64% year on year.
Shenghe Resources recorded a revenue of 8.241 billion yuan in the first three quarters, down by 37.12% year on year; with a net profit of 92.8696 million yuan, down by 41.29% year on year.
Guangcheng Nonferrous had a revenue of 8.739 billion yuan in the first three quarters, down by 43.85% year on year; and a net loss of 276 million yuan, down by 265.56% year on year.
Xiamen Tungsten’s revenue in the first three quarters was 26.369 billion yuan, a 10.7% decrease year on year; with a net profit of 1.402 billion yuan, a 20.78% increase year on year.
In June of this year, the State Council of the Communist Party of China officially issued the “Rare Earth Management Regulations,” which came into effect on October 1, 2024.
China will restrict rare earth exports as a strategic measure to counter the United States, the European Union, and Japan. However, in order to break free from China’s control, the United States is developing rare earth and other mineral resources domestically to reduce dependence on Chinese rare metals. Japan, on the other hand, plans to mine rare earth minerals from the Pacific Ocean to establish its own strategic resource supply chain.