Core Viewpoint - The performance of major rare earth companies in China has significantly declined in the past year, with only Xiamen Tungsten achieving profit growth while others faced substantial losses [1][2]. Company Performance - Among the five leading rare earth companies, only Xiamen Tungsten reported a net profit increase of 7.88%, reaching 1.728 billion yuan, despite a revenue decrease of 10.66% to 35.196 billion yuan [2][10]. - Northern Rare Earth's net profit fell by 57.64% to 1.004 billion yuan, with revenue declining by 1.58% to 32.966 billion yuan [2][10]. - Shenghe Resources experienced a net profit drop of 37.73% to 207 million yuan, with revenue down 36.39% to 11.371 billion yuan [2][10]. - China Rare Earth and Guangsheng Nonferrous both reported losses of 287 million yuan and 299 million yuan, respectively, marking their first losses in three years [1][2]. Market Conditions - The overall rare earth market faced a downward price trend, impacting company revenues and profits. For instance, the average price of praseodymium-neodymium oxide fell by 26.09% to 393,100 yuan per ton [4][6]. - Supply exceeded demand in the rare earth market, with domestic production capacity increasing and inventory levels rising significantly [6][7]. - The total control indicators for rare earth mining and separation increased, with mining indicators rising by 5.9% to 270,000 tons and separation indicators by 4.2% to 254,000 tons [6][7]. Cash Flow and Inventory Issues - Cash flow for major rare earth companies deteriorated, with China Rare Earth's operating cash flow turning negative at -594 million yuan, a 271.65% decline [8][10]. - Northern Rare Earth's cash flow decreased by 57.76% to 1.026 billion yuan, while Guangsheng Nonferrous reported negative cash flow for three consecutive years [10]. - Inventory levels surged, with Northern Rare Earth's rare earth salt and metal inventories increasing by 18.3% and 78.12%, respectively, totaling 165,000 tons [7][10]. Policy and Future Outlook - The Chinese government has increased support for the rare earth industry, with new regulations set to take effect in October 2024, aimed at ensuring orderly development [13]. - The introduction of export controls on certain rare earth elements is expected to tighten supply and potentially increase prices in overseas markets [13]. - Early 2024 showed signs of recovery in the rare earth industry, with companies like China Rare Earth and Guangsheng Nonferrous projecting profits for the first quarter [12].

Core Viewpoint - Northern Rare Earth reported a decline in revenue and net profit for the fiscal year 2024, primarily due to falling prices of key rare earth products, yet it remains a leader in the industry with the largest market capitalization [1][2]. Financial Performance - In 2023, Northern Rare Earth's operating revenue was 32.966 billion yuan, a year-on-year decrease of 1.58% - The net profit attributable to shareholders was 1.004 billion yuan, down 57.64% year-on-year [1]. Production and Sales - The production of rare earth oxides decreased by 7.26% to approximately 15,500 tons, while sales increased by 6.07% to about 30,600 tons, with inventory down 39.61% to around 23,000 tons [2]. - Rare earth salts production fell by 1.60% to about 125,300 tons, with sales rising by 19.26% to approximately 104,100 tons, but inventory increased by 18.30% to about 137,600 tons [2]. - Rare earth metals production rose by 19.84% to about 36,900 tons, with sales up 13.77% to approximately 35,300 tons, although inventory surged by 78.12% to 3,606.90 tons [2]. Market Outlook - The overall rare earth market is expected to remain weak in 2024, but with gradual improvements in supply and demand dynamics, the price fluctuations of major rare earth products have narrowed compared to the past three years [1]. Future Goals - For 2025, Northern Rare Earth aims to achieve operating revenue of at least 37.217 billion yuan and a total profit of over 2.820 billion yuan, while ensuring alignment between employee income, economic efficiency, and labor productivity [2].