本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 一、董事会会议召开情况 证券代码：600111 证券简称：北方稀土 公告编号：2025-044 中国北方稀土（集团）高科技股份有限公司 第九届董事会第五次会议决议公告 特此公告 中国北方稀土（集团）高科技股份有限公司（以下简称公司）董 事会于 2025 年 7 月 17 日以通讯表决方式召开第九届董事会第五次会 议。会议应出席董事 14 人，实际出席董事 14 人。会议召开程序符合 《中华人民共和国公司法》、公司《章程》和《董事会议事规则》的 规定。 二、董事会会议审议情况 通过《关于转让公司控股子公司北方稀土平源（内蒙古）镁铝新 材料科技有限公司股权的议案》； 表决结果：关联董事刘培勋、瞿业栋、张庆峰、吴永钢、王昭明、 白宝生、宋泠回避了表决，其他非关联董事同意 7 票、反对 0 票、弃 权 0 票。 三、备查文件 公司第九届董事会第五次会议决议。 中国北方稀土（集团）高科技股份有限公司 董 事 会 2025 年 7 月 18 日 ...

Core Viewpoint - The China Securities Index for domestic resources has shown positive performance, with a recent increase in value and significant year-to-date growth, indicating a favorable market trend for resource-related stocks [1]. Group 1: Index Performance - The China Securities Index for domestic resources rose by 0.29% to 3511.13 points, with a trading volume of 35.435 billion yuan [1]. - Over the past month, the index has increased by 1.37%, by 5.59% over the last three months, and by 5.12% year-to-date [1]. Group 2: Index Composition - The top ten holdings in the China Securities Index for domestic resources are: Zijin Mining (15.56%), China Shenhua (6.62%), China Petroleum (5.46%), China Petrochemical (4.52%), Northern Rare Earth (4.1%), Shaanxi Coal and Chemical (3.98%), China National Offshore Oil (3.32%), Luoyang Molybdenum (3.07%), China Aluminum (3.06%), and Shandong Gold (2.99%) [1]. - The index is primarily composed of the materials sector (68.47%) and the energy sector (31.53%) [2]. Group 3: Market Structure - The Shanghai Stock Exchange accounts for 78.58% of the index's holdings, while the Shenzhen Stock Exchange represents 21.42% [1]. - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2]. Group 4: Related Funds - Public funds tracking the domestic resources index include Minsheng Jianyin China Securities Domestic Resources C and Minsheng Jianyin China Securities Domestic Resources A [3].

Core Viewpoint - The company expresses a positive outlook on future rare earth prices, influenced by supply-demand dynamics and government policies [1] Group 1: Market Dynamics - Since the beginning of the first quarter, the rare earth market has shown better activity compared to the same period last year, driven by tighter upstream raw material supply and stimulating consumption policies [1] - In April and May, rare earth prices experienced a brief decline due to international environmental factors, but the clarity of national policies has increased attention on the rare earth industry, leading to a rise in product prices [1] Group 2: Company Performance - The company's subsidiary, Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd., currently has a relatively full order book, indicating strong demand for its products [1]

Group 1 - The core viewpoint of the article highlights the recent investigation by Zhongrui Heyin into a listed company, specifically focusing on Northern Rare Earth, in light of the new Rare Earth Management Regulations set to take effect on October 1, 2024 [1] - The new regulations aim to standardize the management of the rare earth industry, ensuring rational resource development, promoting healthy growth, and protecting ecological and resource safety [1] - The company is committed to adhering to national policies, with export controls primarily affecting medium and heavy rare earths, while the impact on lanthanum and cerium product exports is minimal [1] - Northern Rare Earth mainly exports light rare earth products, which constitute a small proportion of its total exports [1] - The first total control indicators under the new regulations have been issued this year, taking into account market conditions, production, and supply-demand situations [1] - Product prices are influenced by supply and demand dynamics, with a brief price decline observed in April and May, but an expected price increase as policies become clearer [1] Group 2 - Zhongrui Heyin, originally established as Chengdu Xinlanrui Investment Management Co., Ltd. in 2007, has evolved into a prominent asset management institution [2] - The company transitioned its operations to Tibet Zhongrui Heyin Investment Management Co., Ltd. in 2012, with a focus on investment management and advisory services [2] - The current team consists of 32 members, including 16 in research and investment, primarily based in Chengdu [2] - Zhongrui Heyin emphasizes a corporate culture of "knowledge and action in unity," prioritizing investor interests and aiming to become a respected asset management institution [2]

Summary of Conference Call Records Industry Overview - The conference call primarily discusses the **rare earth materials** and **magnetic materials** industries, focusing on the performance and outlook for 2025 Q2 and beyond [1][2][3]. Key Points and Arguments 1. **Performance of Magnetic Materials Industry**: - The magnetic materials industry faced significant impacts from export controls in Q2 2025, with approximately 18% of products directly exported, predominantly from the Korean system [3]. - Despite these challenges, companies like Jinli, Zhenghai, and Sanhuan achieved substantial improvements in net profit per ton, indicating enhanced profitability [3][4]. 2. **Domestic Stone Industry Dynamics**: - In the first five months of 2025, domestic stone production grew by 17%, while terminal demand increased by approximately 20%, improving supply-demand matching and alleviating price wars [5]. 3. **Impact of U.S. Defense Subsidies**: - The U.S. Department of Defense's subsidies for MP Company are significantly higher than domestic prices, creating upward pressure on domestic rare earth prices [6]. - Current domestic rare earth prices range from 450,000 to 470,000 RMB per ton, while overseas prices reach 900,000 RMB per ton, indicating a substantial price disparity [6]. 4. **Regulatory Environment**: - The implementation of the **Rare Earth Management Regulations** and total control measures since late 2024 has targeted non-compliant supply, promoting price increases and concentrating market power among leading firms [7]. 5. **Global Demand and Supply Forecast**: - Global demand for rare earths is projected to grow by 20% in 2025, surpassing previous expectations of 10%. However, supply may stabilize or even decrease due to a significant drop in imports [8]. 6. **Valuation and Future Performance of Key Companies**: - Major companies like Northern Rare Earth and Baogang have P/E ratios of 14 and 13, respectively, significantly lower than previous cycle peaks. Future valuations could rise to 25x and 30x P/E, indicating a potential upside of 60% to 100% [9][10]. 7. **Taxation Effects on Pricing**: - The absence of VAT on overseas products means that U.S. prices do not include this tax, enhancing the price elasticity for domestic companies like Northern Rare Earth and Guangsheng Nonferrous [11]. 8. **Market Outlook**: - The rare earth sector's performance in Q2 2025 was strong, transitioning towards a fundamentals-driven market. The anticipated price increases and improved supply-demand dynamics suggest a favorable outlook for companies like Zhongxi Group, Guangsheng Nonferrous, Northern Rare Earth, and Baogang [12]. Additional Important Insights - The improved matching of midstream production growth with downstream demand is expected to facilitate smoother price transmission for rare earths [5]. - The overall sentiment in the rare earth market is shifting from speculative to fundamentally supported, indicating a more stable investment environment [2][12].

Market Overview - The Shanghai Composite Index fell by 0.03% on July 16, with 14 industries experiencing gains, led by social services and automotive sectors, which rose by 1.13% and 1.07% respectively. The steel and banking sectors saw the largest declines, down by 1.28% and 0.74% respectively [1] Fund Flow Analysis - The main funds in the two markets experienced a net outflow of 14.265 billion yuan, with 12 industries seeing net inflows. The public utilities sector had the highest net inflow of 2.823 billion yuan despite a decline of 0.20%, followed by the pharmaceutical and biotechnology sector, which rose by 0.95% with a net inflow of 2.095 billion yuan [1] Nonferrous Metals Sector Performance - The nonferrous metals sector declined by 0.45% with a total net outflow of 2.084 billion yuan. Out of 137 stocks in this sector, 45 stocks rose, including one that hit the daily limit, while 86 stocks fell. Notably, 40 stocks had net inflows, with Shenghe Resources leading at a net inflow of 143 million yuan, followed by Xiamen Tungsten and Haixing Co., with net inflows of 35.2538 million yuan and 31.9872 million yuan respectively [2] Nonferrous Metals Sector Outflow - The top outflow stocks in the nonferrous metals sector included Ningbo Yunsheng, which saw a decline of 7.24% with a net outflow of 387.71 million yuan, followed by Northern Rare Earth and Northern Copper, with net outflows of 276.81 million yuan and 137.34 million yuan respectively. Other notable outflow stocks included Yongshan Lithium and Tianqi Lithium, with outflows of 123.26 million yuan and 110.95 million yuan respectively [3]

Market Performance - The rare earth permanent magnet sector declined by 0.85%, ranking among the top declines in concept sectors as of July 16 [1] - Notable decliners in the sector included Ningbo Yunsheng, Huicheng Environmental Protection, and Jingyuntong, while Huahong Technology, Longci Technology, and Shenghe Resources saw increases of 10.04%, 5.64%, and 4.71% respectively [1] Capital Flow - The rare earth permanent magnet sector experienced a net outflow of 2.043 billion yuan, with 45 stocks seeing net outflows and 5 stocks exceeding 100 million yuan in outflows [2] - Ningbo Yunsheng led the outflow with 388 million yuan, followed by Huicheng Environmental Protection, Northern Rare Earth, and Hengdian East Magnet with outflows of 361 million yuan, 277 million yuan, and 196 million yuan respectively [2] Top Gainers and Losers - The top gainers in the rare earth permanent magnet sector included Shenghe Resources, Xiamen Tungsten, and China Rare Earth, with net inflows of 143 million yuan, 35.25 million yuan, and 23.11 million yuan respectively [2][4] - The outflow leaderboard featured Ningbo Yunsheng with a decline of 7.24%, Huicheng Environmental Protection down 7.20%, and Northern Rare Earth with a slight increase of 0.14% [2][3]

Summary of Conference Call Notes Industry or Company Involved - The notes primarily discuss the overall market trends and specific sectors within the Chinese economy, including industrial metals, manufacturing, military, consumer goods, innovative pharmaceuticals, financial services, and public utilities. Core Points and Arguments 1. **Earnings Disclosure Timeline**: Companies are expected to disclose their earnings forecasts by July 15, with subsequent disclosures impacting market trading dynamics. The earnings reporting periods include annual, semi-annual, and quarterly reports, with the latter being less impactful on market trading compared to annual and semi-annual reports [1] 2. **Economic Recovery**: The current state of the domestic economy is characterized by a slow recovery in the financial chain, with overall economic growth being decent. The overall EPS for the A-share market may require more time to improve, suggesting a focus on structural economic trends [2][3] 3. **Industrial Metals Demand**: The demand for industrial metals is supported by the rapid development of sectors such as renewable energy and AI computing, leading to price increases and improved earnings for these metals [3][4] 4. **Manufacturing Sector Growth**: The manufacturing sector, particularly in wind power and exports of motorcycles and inverters, is experiencing high growth rates. The demand from emerging markets, especially Southeast Asia and South America, is driving this growth [4][5] 5. **Military Industry Outlook**: The military sector is expected to see continuous improvement in orders, supported by both domestic and international demand. This sector is highlighted for its potential earnings elasticity [6][7] 6. **Consumer Goods Performance**: The consumer goods sector, particularly in categories supported by government subsidies, has shown strong growth. Categories such as home appliances and communication equipment have experienced significant increases in sales [8] 7. **Innovative Pharmaceuticals**: The innovative pharmaceutical sector is benefiting from favorable policies and a surge in commercial opportunities. The second quarter has seen a significant increase in orders from Chinese pharmaceutical companies [9][10] 8. **Insurance Sector Dynamics**: The insurance sector is seeing improvements in both liability and asset sides, with premium income rising and investment returns being favorable. The demand for bank stocks as a stable investment is also noted [11] 9. **Investment Banking Recovery**: The investment banking sector is experiencing a recovery, with an increase in IPOs and fundraising activities. The number of IPOs reached 24, raising over 20 billion, significantly higher than the previous year [12] 10. **Emerging Technologies and Gaming**: The demand for computing power is expected to grow significantly, particularly in the AI sector, while the gaming industry continues to expand, with mobile game revenues increasing by 12% year-on-year [13][14][15] 11. **Public Utilities Focus**: Investors are advised to pay attention to the public utilities sector, particularly in electricity generation, with a focus on thermal power [15] Other Important but Possibly Overlooked Content - The notes emphasize the importance of structural economic trends and specific sectors that are likely to drive market performance in the near future. The focus on emerging markets and technological advancements indicates potential investment opportunities that may not be immediately apparent [2][4][6][9][12]

Summary of Conference Call Notes Industry or Company Involved - The discussion primarily revolves around the investment by the U.S. Department of Defense in MP (a mining company) and its implications for the rare earth industry. Core Points and Arguments 1. The U.S. Department of Defense plans to invest approximately $1 billion in MP, which would make it the largest shareholder with about 15% ownership, transforming MP from a privately-owned entity to a state-supported one [1] 2. The investment is part of a broader strategy to subsidize domestic industries, similar to China's support for its semiconductor sector, aimed at bolstering the U.S. rare earth supply chain [1][5] 3. The market cost for IU is around $2,000, and despite fluctuations in rare earth prices, MP's operations remain relatively stable [2] 4. Current production costs for MP are high, with a production cost of approximately $60 per kilogram, while the cost of raw materials is only about $14 to $15 per kilogram [3] 5. MP is currently lacking in metal processing capacity, with plans to expand its production from 1,000 tons to 10,000 tons by 2028, which would significantly enhance its self-sufficiency [4] 6. The U.S. investment aims to prevent the collapse of domestic industries due to low-priced imports from China and to address supply chain vulnerabilities [5] 7. The subsidy intensity from the U.S. is significantly higher than domestic investments, with a minimum price set for rare earth oxides at $110 per kilogram, compared to domestic prices around $90, indicating a substantial undervaluation of domestic prices [6][15] 8. The cash flow situation for domestic companies is strong, with leading firms showing better cash flow resilience compared to their international counterparts [7] 9. Concerns were raised about the potential weakening of China's bargaining power in the rare earth market due to U.S. subsidies [8] 10. The overseas rare earth processing capabilities are still lacking, particularly in the separation of rare earth elements, which remains a critical gap [9][11] 11. Export volumes have significantly decreased due to export controls, with April exports halving compared to March, and further declines in May [13] 12. Despite the export challenges, some leading companies are optimistic about recovering their export levels to pre-control figures [14] 13. The overall supply situation is tight, with a seasonal demand increase expected in the third quarter, which typically sees price increases [12] 14. The steel industry is recovering, which may impact the profitability of rare earth operations, as steel production consumes a significant portion of rare earth profits [17] 15. MP's high subsidies are expected to benefit companies like Shenghe, although there are concerns about potential forced sell-offs of shares due to the investment [19] Other Important but Possibly Overlooked Content 1. The investment by the U.S. Department of Defense is seen as a strategic move to ensure the stability of the domestic rare earth supply chain and to mitigate risks associated with reliance on foreign sources [5] 2. The discussion highlighted the importance of maintaining a competitive edge in the rare earth market, particularly in light of increasing global competition [10] 3. The potential for price increases in the rare earth market is anticipated, with projections indicating that prices could rise significantly if demand continues to grow [15][18] 4. The overall sentiment in the market remains cautious but optimistic, with a focus on resource acquisition over asset-based investments [20]

Summary of Conference Call on M&P Materials and Rare Earth Industry Company and Industry Involved - **Company**: M&P Materials, a rare earth company in the United States - **Industry**: Rare Earth Industry Key Points and Arguments 1. **Stock Price Surge**: M&P Materials' stock price increased by 40% due to the U.S. Department of Defense purchasing $400 million in preferred shares and obtaining warrants, making it the largest shareholder of M&P [1] 2. **Price Guarantee**: The U.S. Department of Defense has guaranteed that the price of M&P's mixed rare earths will not fall below $110 per kilogram, which translates to approximately 80,000 RMB per ton [1][3] 3. **Strategic Importance**: The involvement of the U.S. government in M&P signifies unprecedented attention to the rare earth supply chain, enhancing its strategic value [2] 4. **Price Comparison**: The guaranteed price from the U.S. government is over 20% higher than domestic prices in China, which are around 450,000 RMB per ton [3] 5. **Market Confidence**: The U.S. government's commitment to a price floor alleviates concerns about rising global rare earth prices negatively impacting domestic prices in China [4] 6. **U.S. Rare Earth Supply Chain**: The U.S. rare earth supply chain has been improving, with NOP's self-processing ratio increasing from under 10% in Q1 2023 to over 30% in Q1 2024 [6] 7. **Supply Dynamics**: The U.S. hydrogen industry is reportedly on the rise, indicating a strengthening of the U.S. rare earth supply chain, which was already in progress before government intervention [7] 8. **Resource Control**: China maintains a dominant position in rare earth resources, with significant control over supply from Southeast Asia and other regions [8][9] 9. **Export Controls**: China's export controls on rare earths are primarily focused on heavy rare earth products, which will not significantly impact China's pricing power [10] 10. **Market Trends**: The rare earth sector is experiencing a shift in trading logic, with expectations of price increases due to supply constraints and rising demand [11][12] 11. **Future Projections**: The overall supply growth in the rare earth sector is expected to be low, with a projected decline in supply in the second half of the year, which could lead to price increases [15][17] 12. **Investment Opportunities**: Key companies to watch include China Rare Earth Holdings, Guangsheng Nonferrous, and Northern Rare Earth, all of which are expected to benefit from rising prices and market dynamics [18][19][20] Other Important but Overlooked Content - **Market Sentiment**: The sentiment around the rare earth sector remains positive, with expectations of price increases driven by both domestic and international factors [21] - **Long-term Outlook**: The long-term outlook for the rare earth industry remains strong, with structural reforms and price adjustments expected to support growth [20]