In 2025, a year marked by the reshaping of the global rare earth industry landscape, CNRE delivered a historic financial performance.
The company achieved full-year revenue of 42.563 billion yuan, a year-over-year surge of 29.11%, with net profit attributable to shareholders reaching 2.251 billion yuan, an explosive increase of 124.17% year-over-year—the profit growth rate was nearly four times the revenue growth rate, reflecting the strong elasticity of the company's earnings leverage under the dual rise of volume and price.
From the perspective of total profit, CNRE recorded 3.844 billion yuan in 2025, up 84.2% from 1.837 billion yuan in 2024, recovering to levels close to the 2023 peak. The weighted average return on net assets rose to 9.56%, an increase of 4.99 percentage points compared to the previous year. Basic earnings per share were 0.6227 yuan, nearly doubling from 0.2778 yuan in 2024. Based on this, the company proposes a cash dividend of 0.13 yuan per share, totaling approximately 470 million yuan, representing 20.88% of the net profit attributable to the parent company.
The core logic driving this performance leap is the resonance between the overall upward trend in rare earth market prices and the company's own record-breaking production and sales volumes. In 2025, prices for mainstream rare earth products such as praseodymium-neodymium oscillated upward. The strategic security premium, combined with the reshaping of supply and demand patterns, provided a more solid support floor for prices than before. Meanwhile, the company saw growth across the board in smelting and separation output, rare earth metals, magnetic materials, hydrogen storage, polishing, and permanent magnet motors. The first phase of the green smelting upgrade project was fully connected and put into operation, further solidifying the capacity foundation.
Notably, the fourth quarter became the strongest period of the year—the single-quarter revenue reached 12.272 billion yuan and net profit attributable to the parent company hit 710 million yuan, both the highest among all quarters of the year, demonstrating the accelerated release of demand in the second half of the year and the realization of capacity ramp-up results. Looking ahead to 2026, the company has set a target revenue of over 44 billion yuan and total profit exceeding 3.5 billion yuan, showing strong confidence at the start of the year.
<h2>Volume and Price Resonance Drives Revenue Breakthrough</h2>
In 2025, CNRE's revenue surged from 33.2 billion yuan the previous year to break through 42.5 billion yuan, adding nearly 10 billion yuan. Compared to the 33.5 billion yuan in 2023, this represents a significant improvement, completing a step-wise leap.
From the revenue structure perspective, the Industrial sector (self-produced rare earth products and new materials) contributed 33.087 billion yuan, up 36.35% year-over-year, with a gross margin of 13.84%, an increase of 2.19 percentage points from the previous year. The Commercial sector (trading business) contributed 7.794 billion yuan, up 10.53%, with a gross margin of 1.92%. The Environmental Protection sector generated revenue of 1.47 billion yuan; impacted by price fluctuations in certain varieties, its gross margin declined by 5.42 percentage points year-over-year to 23.44%.
By product, main rare earth products (including raw materials and new materials) generated revenue of 32.637 billion yuan with a gross margin of 13.97%, a slight increase of 2.36 percentage points from the previous year. Rare earth application products (including permanent magnet motors, etc.) generated revenue of 450 million yuan with a gross margin of 4.62%; due to cost pressures, the gross margin narrowed by approximately 9.41 percentage points year-over-year.
Geographically, domestic revenue was 41.737 billion yuan (accounting for over 99%), up 28.44% year-over-year, with gross margin improving by nearly 2 percentage points to 11.94%. Overseas revenue was 614 million yuan; influenced by changes in export patterns, it jumped significantly by 99.35% year-over-year, though the scale remains relatively small.
<h2>Cost Structure: Surging Raw Material Costs Test Management Capabilities</h2>
Behind the high profit growth, pressure on the cost side cannot be ignored. Operating costs in 2025 were 37.367 billion yuan, up 26.29% year-over-year. This increase was slightly lower than the revenue growth rate, which was the direct reason for the improvement in gross margin.
In the cost structure of the Industrial sector, the proportion of raw material costs jumped from 75.92% the previous year to 83.14%, with the absolute value soaring from 16.276 billion yuan to 23.703 billion yuan, an increase of 45.63%. This mainly reflects the market-driven price increase for rare earth concentrates purchased from Baogang Shares. Material and power costs were compressed significantly from 32.630 billion yuan to 2.583 billion yuan (a decrease of 20.85%), reflecting the effectiveness of the company's refined energy consumption management. During the reporting period, the company signed a contract with related party Baogang Shares for the purchase of rare earth concentrates amounting to 12 billion yuan (tax included), of which 9.417 billion yuan had been fulfilled this year.
Regarding R&amp;D, expense-based R&amp;D investment totaled 318 million yuan, up 6.07% year-over-year, accounting for 0.75% of revenue. However, management emphasized in the report that the intensity of R&amp;D investment exceeded 5%, suggesting that R&amp;D expenditures from internal research platforms (such as the Rare Earth Institute) are included in a broader statistical scope.
Taxes and surcharges reached 210 million yuan, up 50.87% year-over-year, primarily due to increases in value-added tax surcharges and stamp duties corresponding with business expansion. Credit impairment losses surged 159.67% year-over-year to 215 million yuan, mainly due to impairment provisions for certain non-current assets (Kunlu Industrial loans); this item warrants future attention.
<h2>Cash Flow: Operational Improvement, Sharp Contraction in Financing</h2>
Net cash flow from operating activities in 2025 was 1.115 billion yuan, up 8.71% year-over-year. Despite the substantial revenue growth, the improvement was relatively moderate, mainly dragged down by a negative operating cash outflow of 1.610 billion yuan in the fourth quarter. By quarter, third-quarter operating cash flow was as high as 1.799 billion yuan, forming a stark contrast with the fourth quarter, possibly related to end-of-quarter inventory stocking rhythms and accounts receivable structures.
Net cash outflow from investing activities was 1.183 billion yuan, narrowing from -1.655 billion yuan the previous year, mainly due to a decline in infrastructure-related investment expenditures after the completion of the first phase of the green smelting upgrade project. Net cash outflow from financing activities was 955 million yuan, compared to a net inflow of 1.003 billion yuan in the same period of 2024. This dramatic shift mainly stemmed from the company's active reduction of interest-bearing debt and decreased new borrowing. This change indicates that CNRE's financial leverage strategy in 2025 became more conservative and stable.
On the balance sheet level, taxes payable skyrocketed from 128 million yuan at the beginning of the year to 490 million yuan (an increase of 284.21%), confirming a significant increase in income tax and VAT following high profit growth. Non-current liabilities due within one year doubled from 1.259 billion yuan to 2.572 billion yuan, warranting attention to short-term debt refinancing arrangements. Fixed assets increased from 7.004 billion yuan to 9.120 billion yuan (up 30.23%), primarily driven by the capitalization of the green smelting project.
<h2>Strategic Layout: Smart Factory Implementation, Vertical Extension of Industry Chain</h2>
In 2025, the company made frequent moves in industry chain extension. The first phase of the green smelting upgrade project was fully put into production, and construction has begun on the second phase. The total budget for this project does not exceed 7.799 billion yuan; additional payments made this year amounted to 759 million yuan, with cumulative payments reaching 2.241 billion yuan. Multiple key projects including Gansu Rare Earth, Huaxing Rare Earth, Northern Zhongxin Antai, Northern Magnetic Materials, and Northern Zhaobao have been completed and put into operation. A new subsidiary, Northern Jinlong (51% stake), was consolidated into the financial statements, expanding the rare earth separation capacity map.
In the field of intelligence, the company was recognized as one of the Ministry of Industry and Information Technology's first batch of world-class smart factories, with continuous improvements in the computer numerical control rate of key processes and the digitalization rate of production equipment. The stock was selected for the CSI A50 Index components for the first time and returned to the SSE 50 Index. Domestic mainstream ESG ratings reached their highest level of AAA, and market cap hit a three-year YTD High while maintaining the industry's top position.
At the same time, the company carried out cleanup of non-core assets: subsidiaries Hebei Huakai (40% equity) and Pingyuan Magnesium Aluminum (51% equity) were sold off sequentially, and Xibao General entered bankruptcy liquidation. The number of subsidiaries in the consolidated statement decreased by a net of 3, and asset quality was generally optimized.
<h2>Industry Beta and Company Alpha: Can It Continue in 2026?</h2>
To understand CNRE's 2025 performance that exceeded expectations, one must examine industry beta and company alpha separately. At the industry level, the Ministry of Commerce implemented export controls on seven categories of medium and heavy rare earths—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—significantly elevating the strategic security premium for medium and heavy rare earths. Light rare earth prices rose overall, with the CRE index hitting a YTD High in October. Global rare earth import volumes decreased by 24% year-over-year while the value increased by 16.3%, indicating a significant rise in tonnage price, providing strong external support for the company's performance.
At the company level, apart from volume and price factors, the most noteworthy source of alpha is the continuous optimization of the cost side. Full processing costs decreased further year-over-year. Solid-state hydrogen storage devices achieved mass production, and the production and sales of high-value-added products such as permanent magnet motors and magnetic materials reached record highs, shifting the product structure toward higher gross margin intervals.
For 2026, the company targets revenue of over 44 billion yuan and total profit of over 3.5 billion yuan, corresponding to increases of approximately 3.4% each. Compared to the high-speed growth of 2025, this target appears relatively conservative, but it is also necessary to note the high profit base already established in 2025 and the risk of fluctuation in rare earth prices. The progress of the second phase of the green smelting project, trial production of the Northern Jinlong separation line, continued digestion of lanthanum-cerium inventories, and the release of new capacity in magnetic material alloys will be key observation windows determining whether 2026 performance can exceed expectations.

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Driven by the combined effect of rising global rare earth market prices and record-breaking production and sales volumes, CNRE achieved full-year revenue of 42.563 billion yuan, a year-over-year increase of 29.11%. Net profit attributable to shareholders reached 2.251 billion yuan, surging 124.17% year-over-year. The fourth quarter emerged as the strongest period of the year, recording single-quarter revenue of 12.272 billion yuan and net profit attributable to the parent company of 710 million yuan, both setting quarterly records

Rare Earth Volume and Price Surge: CNRE Sets Record Revenue in 2025, Net Profit Doubles, Proposes Dividend of 0.13 Yuan per Share | Earnings Insights