CNRE(600111) 证券时报网·2025-01-23 09:12Core Viewpoint - The leading rare earth company, Northern Rare Earth (Group) High-Tech Co., Ltd., forecasts a significant decline in net profit for 2024, primarily due to falling rare earth product prices and challenging market conditions [1][2]. Group 1: Financial Performance - The company expects a net profit attributable to shareholders of between 950 million and 1.08 billion yuan for 2024, representing a decrease of 1.29 billion to 1.42 billion yuan compared to the previous year, which is a year-on-year decline of 54.41% to 59.90% [1]. - The anticipated performance has not been audited by certified public accountants [1]. Group 2: Market Conditions - The decline in net profit is attributed to a downturn in rare earth product prices, influenced by weak global economic growth and lower-than-expected downstream demand [2]. - The overall price of major rare earth products, particularly praseodymium and neodymium, is expected to show a downward trend, with supply increasing due to government quotas and enhanced recycling capabilities [2]. Group 3: Operational Strategies - In response to the adverse market conditions, the company is implementing various measures to mitigate negative impacts on its performance, including optimizing operational models and increasing production capacity utilization [3]. - The company anticipates a year-on-year increase in production across several product categories, including a 1.63% rise in rare earth smelting and separation products and a 20.78% increase in rare earth metals [3]. Group 4: Investment and Expansion - The company is advancing key construction projects and industry chain mergers, including the launch of a new green rare earth smelting upgrade project and the establishment of joint ventures to enhance production capabilities [4]. - The company is also focusing on high-end, digital, and green transformation initiatives, with significant advancements in automation and digitalization of production processes [5]. Group 5: Research and Development - The company is enhancing its research capabilities through collaborations with academic institutions and establishing research laboratories to improve its technological strength in rare earth materials [5]. - The company is committed to implementing a comprehensive ESG management system to elevate its management practices and promote value enhancement [5].