China Minmetals Rare Earth sees net profit of RMB26.41 million in H1 2017
2017-08-16 17:34:31 [Print]
China Minmetals Rare Earth Co., Ltd. (Stock code: 000831) released the semi-annual report of 2017 on the evening of August 14th. In the first six months of 2017, the company achieved operational revenue of RMB276, 567,100, up by 232.38% compared with the figure of RMB83,208,300 in H1 2016; the net profit attributable to the shareholders of the listed company was RMB26,419,600, up by 173.19% YOY compared with the figure of a negative RMB36,098,600.
The company stated that, during the first half of 2017, China continued to strengthen its governance of the rare earth industry as well as to carry out special management campaigns to crack down the gradually normalized violation of laws and regulations in rare earth industry. At the same time, with the ongoing exploration of supply-side reform by taking China’s top six rare earth groups (“top six”) as the core, the total rare earth output index is gradually approaching that of the top six and the foundation for industrial restructuring and upgrading has been preliminarily established. Affected by the above-mentioned factors, prices for most rare earth products increased to some extent compared with that of early this year.
By calculating and demonstrating different production and operation assumptions and taking its own situation and market variation trend into account, the company, within the report period, has deliberated and approved the production and management plans in April 2017 that Hongjin subsidiary and Dahua subsidiary to resume production as soon as possible and that Jianfeng subsidiary to make flexible production arrangement according to orders received. All of its subsidiaries have resumed production within the report period. Based on the production and management plan, the company made optimization of resource allocation by taking multiple moves and strengthened its operating efficiency; besides, they initiated a new business model by combining technical innovation and customer demand, giving full play to its superiority of quality stability, high purity and large ratio surface control, etc. In addition, the company actively took part in market competition and sold at profitable price in order to reduce output.
The company stated that, during the first half of 2017, China continued to strengthen its governance of the rare earth industry as well as to carry out special management campaigns to crack down the gradually normalized violation of laws and regulations in rare earth industry. At the same time, with the ongoing exploration of supply-side reform by taking China’s top six rare earth groups (“top six”) as the core, the total rare earth output index is gradually approaching that of the top six and the foundation for industrial restructuring and upgrading has been preliminarily established. Affected by the above-mentioned factors, prices for most rare earth products increased to some extent compared with that of early this year.
By calculating and demonstrating different production and operation assumptions and taking its own situation and market variation trend into account, the company, within the report period, has deliberated and approved the production and management plans in April 2017 that Hongjin subsidiary and Dahua subsidiary to resume production as soon as possible and that Jianfeng subsidiary to make flexible production arrangement according to orders received. All of its subsidiaries have resumed production within the report period. Based on the production and management plan, the company made optimization of resource allocation by taking multiple moves and strengthened its operating efficiency; besides, they initiated a new business model by combining technical innovation and customer demand, giving full play to its superiority of quality stability, high purity and large ratio surface control, etc. In addition, the company actively took part in market competition and sold at profitable price in order to reduce output.
