China Rare Earth (000831.SZ) released its first-quarter report for 2025, with operating revenue reaching 728 million yuan, representing a year-on-year increase of 141.32%; net profit attributable to the shareholders of listed companies was 72.6181 million yuan, turning losses into profits. The prices of some products in the rare earth market have rebounded, and the company has adjusted its sales strategy, resulting in an increase in operating revenue.
As we all know, rare earth is a scarce resource, and China accounts for 70% of the global market share, monopolizing exclusive technology in mining, classification, extraction, and purification of rare earth mineral materials. It has always been considered a high-profit industry.
From this report of China Rare Earth, it turns out that they have been incurring losses all along.
What is the reason? There must be an explanation.
With a large international market demand and more exports, we incurred losses,
but now that part of the export has been banned, the prices have risen instead, leading to profitability.
It is not difficult to see from this that our internal long-term excessive competition has led to the devaluation of national treasures, which is truly self-deprecating!
Original article: https://www.toutiao.com/article/1830574042331148/
Disclaimer: This article represents only the views of the author.