Key Points
- China North Rare Earth (Group) High-Tech Co., Ltd. (Beifang Xitu 北方稀土) is forecasting a net profit for H1 2025 between ¥900 million and ¥960 million RMB.
- This projected profit represents an astonishing year-over-year growth of 1882.54% to 2014.71%.
- Excluding non-recurring gains, the core business profit is expected to show an even more staggering growth of 5538.33% to 5922.76%, reaching between ¥880 million and ¥940 million RMB.
- This exponential growth signals robust market dynamics for rare earth elements (REEs), critical components in technologies like EVs, wind turbines, and consumer electronics.
- The forecast from this state-backed company highlights surging demand and/or pricing in the critical materials market, crucial for the future of technology.
Here’s a headline you don’t see every day.
China North Rare Earth (Group) High-Tech Co., Ltd. (Beifang Xitu 北方稀土) just put the market on notice, forecasting an absolutely massive surge in its mid-year net profit for 2025.
If you’re an investor, founder, or just watching the global tech supply chain, this is a major signal you can’t ignore.
Let’s break down the mind-blowing numbers.
The Jaw-Dropping Profit Forecast for H1 2025
On July 9, 2025, the company released its performance preview for the first half of the year.
The numbers are, frankly, wild.
The company expects net profit for shareholders to land somewhere between ¥900 million RMB ($125 million USD) and ¥960 million RMB ($133 million USD).
Compared to the same period last year, that’s an increase of ¥855 million RMB ($118 million USD) to ¥915 million RMB ($127 million USD).
That translates to a year-over-year growth of 1882.54% to 2014.71%.
Yes, you read that right. Over two thousand percent growth.
What About Core Business Profit? It’s Even More Insane.
- Electric Vehicles (EVs): Permanent magnets in motors for efficiency and power.
- Wind Turbines: Generators require REE magnets for direct-drive systems.
- Consumer Electronics: Components in smartphones, laptops, and hard drives.
- Defense & Aerospace: Guidance systems, laser technology, and jet engines.
Smart investors always look at profit excluding non-recurring gains and losses to see how the actual core business is performing.
This metric strips out one-time events like asset sales to give a clearer picture of operational health.
And here, the story gets even crazier.
Northern Rare Earth is projecting this figure to be between ¥880 million RMB ($122 million USD) and ¥940 million RMB ($130 million USD).
This is where the numbers go vertical:
- Year-over-year increase of: ¥865 million RMB ($120 million USD) to ¥925 million RMB ($128 million USD).
- Year-over-year growth of: A staggering 5538.33% to 5922.76%.
This isn’t just a good quarter; it’s a fundamental explosion in core business profitability.
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Why This Matters: The Bigger Picture on Rare Earths
While the announcement didn’t detail the specific drivers, this kind of astronomical growth points to incredibly strong market dynamics for rare earth elements (REEs).
What are they? They’re the secret sauce in basically all modern technology:
- Electric Vehicles (EVs): Crucial for the powerful, lightweight magnets in EV motors.
- Wind Turbines: Essential for the generators in large-scale wind power.
- Consumer Electronics: Found in everything from your smartphone and headphones to your computer’s hard drive.
- Defense & Aerospace: Used in guidance systems, jet engines, and drone technology.
China’s dominance in the mining and processing of these elements is a well-known factor in the global tech and geopolitical landscape.
A report this strong from a state-backed giant like Northern Rare Earth suggests that demand, pricing, or both are firing on all cylinders.
For anyone building or investing in green energy, AI hardware, or advanced electronics, this is a powerful indicator of the current state of a critical upstream market.
The Takeaway for Investors and Founders
The message from this forecast is crystal clear: the market for critical materials underpinning the next generation of technology is white-hot.
The monumental growth from China North Rare Earth (Group) High-Tech Co., Ltd. (Beifang Xitu 北方稀土) is more than just a financial report; it’s a testament to the surging demand for the foundational components of our digital and green future.
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