Northern Rare Earth's profits down by 72.11% YOY to RMB90.8356 million in 2016
2017-04-19 16:50:48 [Print]
According to financial results released by Northern Rare Earth on April 15th, its operating income was RMB5.113 billion in 2016, down by 21.92% YOY; the net profit was RMB90.8356 million during the year, down by 72.11% YOY; earning of per share was RMB0.03.
Sales for PrNd material and middle and heavy rare earth products decreased on year-on-year basis in 2016 while those for LaCe products increased, resulting in decreased operating income and cost compared with figures in 2015.
Northern Rare Earth noted that affected by macro-economic environment, rare earth industry continued to be sluggish with soft demand and continuously low prices in the spot market. Chinese government have enacted and implemented management policies and conducted special campaigns to fight against illegal or irregular activities in mining, production and trading within rare earth industry and have continuously regulated the industrial ecology and order, which make the development of the industry improve to some extent. However, there are still illegal producing activities within the industry with problems of overcapacity and oversupply unsolved in nature, and upstream producers suffer more pressures in operation with downward gross profits.
As the largest supplier for rare earth products in China or even in the world, Northern Rare Earth is mainly engaged in the business of rare earth raw materials (rare earth concentrate, rare earth carbonate, rare earth oxide and rare earth salts), rare earth functional materials (rare earth magnetic material, polishing material, hydrogen storage material and luminescent material) and some rare earth application materials (NI-MH power battery and rare earth permanent magnet magnetic resonance instrument).
Sales for PrNd material and middle and heavy rare earth products decreased on year-on-year basis in 2016 while those for LaCe products increased, resulting in decreased operating income and cost compared with figures in 2015.
Northern Rare Earth noted that affected by macro-economic environment, rare earth industry continued to be sluggish with soft demand and continuously low prices in the spot market. Chinese government have enacted and implemented management policies and conducted special campaigns to fight against illegal or irregular activities in mining, production and trading within rare earth industry and have continuously regulated the industrial ecology and order, which make the development of the industry improve to some extent. However, there are still illegal producing activities within the industry with problems of overcapacity and oversupply unsolved in nature, and upstream producers suffer more pressures in operation with downward gross profits.
As the largest supplier for rare earth products in China or even in the world, Northern Rare Earth is mainly engaged in the business of rare earth raw materials (rare earth concentrate, rare earth carbonate, rare earth oxide and rare earth salts), rare earth functional materials (rare earth magnetic material, polishing material, hydrogen storage material and luminescent material) and some rare earth application materials (NI-MH power battery and rare earth permanent magnet magnetic resonance instrument).
