Editor's Note: A review of the H1 rare earth market shows it was a case of "you reap what you sow." The rare earth sector drifted higher overall, with performance varying across products. Pr-Nd oxide gained 22.42% in H1, dysprosium oxide rose 5.97%, and terbium oxide gained 8.37%. With a rising tide lifting all boats, higher rare earth prices directly boosted operating earnings at companies along the industry chain. According to SMM, the 10 rare earth-related companies that have disclosed semi-annual reports, preliminary results, or earnings forecasts all achieved varying degrees of earnings growth in H1. The market is now awaiting demand to materialize in the traditional peak season. As summer gives way to autumn, can rare earth prices extend their H1 gains in H2, and what market conditions will upstream and downstream players in the rare earth industry chain face? Multiple Rare Earth Companies Report Positive H1 Results The H1 earnings forecast disclosed by Zhongxi Nonferrous Metals on the evening of July 13 showed that, based on preliminary estimates by the company's financial department, the company expects net profit attributable to shareholders of the listed company in H1 2026 to be RMB370 million to RMB430 million, an increase of RMB297.5013 million to RMB357.5013 million compared with the same period last year, up 410.35% to 493.11% YoY. The company also expects net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in H1 2026 to be RMB368.0027 million to RMB428.0027 million, an increase of RMB276.2326 million to RMB336.2326 million compared with the same period last year, up 301.00% to 366.39% YoY. As for the main reasons for the expected earnings growth, Zhongxi Nonferrous Metals said: (1) In H1 2026, the supply-demand pattern of the rare earth industry changed and prices of major rare earth products rose YoY. By adopting an innovative integrated operating model to coordinate raw material procurement for rare earth separation plants and sales of all products, and by analyzing market supply-demand changes to dynamically adjust its product output mix, the company significantly increased the operating value of its core rare earth business. (2) The company made substantial progress in loss-making enterprise restructuring and deepened reform, with resources further concentrated in its core main business and competitive operations, and losses at loss-making enterprises narrowed significantly YoY. (3) Its associated company Dabaoshan Company maintained stable and high production; sales volumes and prices of copper and sulfur products both increased YoY, boosting Dabaoshan's profit, and the company's investment income recognized under the equity method increased accordingly. The H1 earnings forecast disclosed by Huahong Technology on the evening of July 13 showed that the company expects net profit attributable to the parent company in H1 2026 to be RMB320 million to RMB360 million, up 301.84%-352.08% YoY. Regarding the reasons for the performance change, Huahong Technology said: In H1 2026, benefiting from industry policies and a pickup in downstream demand, prices of major rare earth products in China climbed steadily. The company's rare earth resource comprehensive utilization segment seized market opportunities, fully leveraged its comprehensive advantages in capacity scale, cost control, and process technology, and continuously optimized supply, production, and sales coordination and inventory management strategies, effectively driving the full release of the segment's profitability. The company continued to deepen its layout across the rare earth industry chain, while its downstream rare earth permanent magnet materials business expanded steadily. Benefiting from steady demand in end-use sectors such as NEVs, wind power, and industrial automation, this business segment continued to expand its business scale, with revenue and product mix continuously optimized, and became an important supplement to performance growth. The semi-annual earnings forecast released by Xiamen Tungsten showed that, according to preliminary calculations by the finance department, net profit attributable to shareholders of the listed company for H1 2026 was expected to be approximately 2,216.0318 million yuan, up approximately 1,246.7133 million yuan from the same period last year, equivalent to an increase of approximately 128.62% YoY. According to preliminary calculations by the finance department, net profit attributable to shareholders of the listed company for H1 2026, excluding non-recurring gains and losses, was expected to be approximately 2,176.0263 million yuan, up approximately 1,253.4882 million yuan from the same period last year, equivalent to an increase of approximately 135.87% YoY. Regarding the main reasons for the expected performance growth in the period, Xiamen Tungsten explained: In H1, facing a market environment in which prices of major raw materials such as tungsten, cobalt, lithium carbonate, and Pr-Nd oxide rose YoY and swung wildly, the company responded proactively, dynamically adjusted its operating strategy, and drove a corresponding increase in product selling prices. Meanwhile, it continued to improve product quality and market development capabilities, and sales of main products such as alloy bars, cutting tools, power battery cathode materials, and magnetic materials grew steadily. Profitability of the company's three core businesses—tungsten and molybdenum, new energy materials, and rare earths—improved to varying degrees. Ningbo Yunsheng disclosed its earnings forecast on the evening of July 14, which showed that, according to preliminary calculations by the finance department, net profit attributable to shareholders of the listed company for H1 2026 was expected to be between 240 million yuan and 310 million yuan, an increase of between 132.1657 million yuan and 202.1657 million yuan compared with the same period last year (statutorily disclosed data), up 122.56% to 187.48% YoY. Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss for H1 2026 is expected to be RMB210 million to RMB280 million, an increase of RMB121.3954 million to RMB191.3954 million compared with the same period last year (statutorily disclosed data), up 137.01% to 216.01% YoY. Ningbo Yunsheng explained that the main reasons for the projected profit increase were as follows: during the reporting period, the company adhered to customer demand orientation, focused deeply on NEV, consumer electronics, industrial and other application fields, actively explored emerging and regional markets, seized development opportunities from new projects, continuously optimized its business mix, and increased the share of revenue from outside China. Meanwhile, the company continued to deepen refined management, which lifted product gross margins and thus increased net profit. The H1 earnings forecast released by China Northern Rare Earth shows that, based on a preliminary estimate by the company's finance department, net profit attributable to owners of the parent company for H1 2026 is expected to be RMB1.98 billion to RMB2.06 billion, an increase of RMB1.05 billion to RMB1.13 billion compared with the same period last year (statutorily disclosed data), up 112.74% to 121.33% YoY. Net profit attributable to owners of the parent company after deducting non-recurring profit or loss for H1 2026 is expected to be RMB1.99 billion to RMB2.07 billion, an increase of RMB1.093 billion to RMB1.173 billion compared with the same period last year (statutorily disclosed data), up 121.90% to 130.82% YoY. Main Reasons for the Projected Profit Increase in the Period: In H1 2026, the company supported the national rare earth resource strategy and fully implemented safety and control requirements across the rare earth industry chain. Driven by factors such as constrained raw material supply and the multi-point release and sustained growth of downstream demand, rare earth product prices showed an overall strengthening trend and consolidated. Centering on its annual production and operation targets, the company planned comprehensively and implemented a combination of measures, strengthened overall budget management, coordinated cost reduction, quality improvement and efficiency gains, scientifically organized production and scheduling, intensified marketing operations, deepened reform and innovation, strengthened group management and risk prevention and control, promoted the high-quality in-depth integration of professional management, lean management and 5S management, advanced key project construction, accelerated the development of new quality productive forces through management and research innovation, and, with sound industry chain value creation capability and core competitiveness, provided solid support and guarantee for its good operating results. The company scientifically refined its production organization and operations; production of rare earth smelting and separation products, rare earth metal products and new rare earth materials all reached record highs for the same period in history; the company's subsidiary Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd. achieved operating revenue of approximately RMB9.5 billion in H1, up about 107% YoY, maintaining growth momentum for three consecutive years; its subsidiary Inner Mongolia Xikeao Hydrogen Storage Alloy Co., Ltd. officially put its first batch of 1,000 hydrogen-powered two-wheelers into operation in Baotou, with cumulative safe driving mileage reaching 170,000 km; the project has achieved notable demonstration results. The Company persisted in benchmarking against advanced peers both internally and externally to tap internal potential, strengthened refined management, and significantly improved a number of economic and technical indicators. It implemented targeted measures across each business segment: the smelting and separation segment overcame new changes in production costs brought by rising raw and auxiliary material prices, effectively controlled cost fluctuations, scientifically organized production and scheduling, and ensured new product supply needs; the rare earth metals segment took the strengthening of lean production concepts as its focus, used digital and intelligent means to further strengthen on-site process operation management, and drove new breakthroughs in economic and technical indicators such as quality and material consumption ratio; the rare earth new materials and applications segment fully leveraged its new capacity advantage, precisely matched customer demand, and achieved new progress in driving sales through production. It deepened industry chain coordination and linkage, and on the basis of ensuring stable product supply, consolidated the foundation of downstream customer cooperation. Shenghe Resources released its H1 earnings preview on July 10, which showed: according to preliminary estimates by the company's finance department, net profit attributable to shareholders of the parent company for H1 2026 is expected to be 800 million yuan to 930 million yuan, an increase of 423.0938 million yuan to 553.0938 million yuan compared to the same period last year, up 112.25% to 146.75% YoY. Net profit attributable to shareholders of the parent company excluding non-recurring items for H1 2026 is expected to be 790 million yuan to 920 million yuan, an increase of 426.487 million yuan to 556.487 million yuan compared to the same period last year, up 117.32% to 153.09% YoY. Regarding the main reasons for the expected earnings growth in the current period, Shenghe Resources said: During the reporting period, affected by factors such as rare earth industry policies and downstream demand, overall market demand for major rare earth products improved, and product prices and average selling prices rose significantly compared to the previous year. The company seized market opportunities, optimized its production and sales mix, strengthened management empowerment and cost control, and thereby drove substantial earnings growth. China Rare Earth said in its recently released semi-annual report: In H1, the supply-demand pattern of the rare earth industry continued to be adjusted and optimized. Supported by multiple favorable factors such as rare earth industry policies and stronger downstream demand, the market overall trended upward, and Pr-Nd product prices rose significantly compared to the same period last year. The company followed its annual work deployment, anchored its goals and added more pressure, seized the momentum and strived for excellence, strengthened Party building leadership, and focused on six key tasks including resource assurance, efficient operations, technological innovation, project construction, deepening reform, and capacity building. It made targeted efforts and achieved notable phased results, simultaneously improved operational quality and efficiency, successfully completed all operational targets and tasks, and vigorously created a new situation of high-quality leapfrog development, laying the foundation for a good start to the 15th Five-Year Plan period. In H1 , the company achieved revenue of 1.647 billion yuan, net profit of 237 million yuan attributable to shareholders of the listed company, up 46.53% YoY, and net profit of 240 million yuan attributable to shareholders of the listed company after deducting non-recurring gains and losses, up 55.49% YoY. The H1 earnings forecast disclosed by Tianhe Magnetics on July 9 showed that, based on preliminary estimates by its financial department, the company expected net profit attributable to owners of the parent company for H1 2026 to be between 73 million yuan and 93 million yuan, an increase of 19.5448 million yuan to 39.5448 million yuan compared with the same period last year (statutory disclosed data), up 36.56% to 73.98% YoY. It also expected net profit attributable to owners of the parent company after deducting non-recurring gains and losses for H1 2026 to be between 68 million yuan and 88 million yuan, an increase of 32.5723 million yuan to 52.5723 million yuan compared with the same period last year (statutory disclosed data), up 91.94% to 148.39% YoY. Regarding the main reasons for the expected H1 profit growth, Tianhe Magnetics said: 1. In H1, raw material prices fluctuated at high levels overall. The company optimized pricing strategies for some existing and new orders and raised product selling prices. 2. In 2026, the company proactively seized market opportunities, conducted sales efforts centered on "focusing on emerging markets, deepening customer relationships, and optimizing channel layout," achieved dual-driver growth in both international and domestic markets, and delivered notable results in market development. Overall operating revenue is expected to increase by about 30% YoY, with domestic business revenue expected to increase by about 50% YoY. 3. During the reporting period, non-recurring gains and losses are expected to have an impact of approximately 5 million yuan on net profit, compared with after-tax non-recurring gains and losses of 18.0275 million yuan in the same period last year. The H1 earnings forecast released by JL MAG Rare-Earth on July 1 showed that net profit attributable to the parent company for H1 2026 was expected to be between 400 million yuan and 460 million yuan, up 31.17%-50.84% YoY. Regarding the reasons for the performance change, JL MAG Rare-Earth said in its announcement: 1. In H1 2026, the company's management upheld the annual operating policy of "staying law-abiding and compliant, remaining customer-oriented, focusing on the core magnetic materials business, building 20,000 mt of capacity on schedule, proactively positioning in motor rotors for embodied robots, and scaling new heights." Through technological innovation, organizational optimization, digital development, lean management, and other measures, the company made every effort to ensure delivery to customers in accordance with contracts while achieving steady development of its operating performance. The company continued to consolidate its leading position in new energy, energy conservation and environmental protection, actively expanded into emerging markets, and expects operating revenue to increase by about 30% YoY. Within this, revenue in the NEV and auto parts segment is expected to increase by about 30% YoY; revenue in the robotics and industrial servo motor segment is expected to increase by about 90% YoY, and embodied robot motor rotor products have already seen small-batch deliveries. 2. During the reporting period, the impact of non-recurring items on net profit is expected to be approximately RMB32 million, compared with after-tax non-recurring items of RMB70.9405 million in the same period last year. 3. In the current reporting period, due to A-share and H-share equity incentives and the issuance of H-share convertible bonds, related share-based payment expenses, financial expenses, and other expenses totaled approximately RMB121 million; no such expenses occurred in the same period last year. The H1 2026 results flash released by Zhong Ke San Huan on the evening of July 20 showed that, in H1, the company achieved operating revenue of RMB3,613.7721 million, up 23.67% YoY; total profit of RMB102.8001 million, up 1.18% YoY; net profit attributable to shareholders of the listed company of RMB49.2189 million, up 11.88% from the same period last year; and, after deducting non-recurring items such as government subsidies, net profit attributable to shareholders of the listed company excluding non-recurring items of RMB32.3035 million, up 2.25% from the same period last year. Zhong Ke San Huan's semiannual results flash showed that in H1 2026, amid increasingly intense market competition and a complex and volatile external environment, with the joint efforts of all employees, the company's core product sales volume grew YoY; through cost-reduction measures such as optimizing formulation processes and reducing heavy rare earth usage, it drove the overall gross margin up YoY. Some subsidiaries improved operations, reducing losses or turning losses into profits; meanwhile, the company further improved inventory management, optimized the inventory structure of key raw materials, and reduced asset impairment losses YoY. Affected by the appreciation of the RMB against the US dollar and the euro, the company incurred foreign exchange losses during the reporting period, and financial expenses increased YoY, partially offsetting profit growth. In H1 This Year, Pr-Nd Oxide Rose 22.42%; Dysprosium Oxide and Terbium Oxide Both Increased In H1 2026, the rare earth oxide market experienced a "sharp rise—plunge—recovery—further divergence" roller-coaster ride. Pr-Nd oxide prices were the most volatile; dysprosium oxide and terbium oxide prices first rose, then fell, and then rebounded. A review of the H1 price trends of Pr-Nd oxide, dysprosium oxide, and terbium oxide shows the following: Pr-Nd oxide's average price on June 30 was 742,500 yuan/mt, up 136,000 yuan/mt from 606,500 yuan/mt on December 31, 2025, an H1 increase of 22.42%. Meanwhile, the H1 average daily price of Pr-Nd oxide this year was 740,530.17 yuan/mt, up 3,095,771.8 yuan/mt YoY from 430,952.99 yuan/mt in H1 2025, representing a YoY increase of 71.84%. Dysprosium oxide's average price on June 30 was 1,420 yuan/kg, up 80 yuan/kg from 1,340 yuan/kg on December 31, 2025, an H1 increase of 5.97%. Comparing dysprosium oxide's average daily price of 1,394.09 yuan/kg in H1 this year with 1,660.26 yuan/kg in H1 2025 shows that its H1 average daily price fell 16.03% YoY. Terbium oxide's average price on June 30 was 6,475 yuan/kg, up 500 yuan/kg from 5,975 yuan/kg on December 31, 2025, an H1 increase of 8.37%. Comparing terbium oxide's average daily price of 6,200.26 yuan/kg in H1 this year with 6,634.62 yuan/kg in H1 2025 shows that its H1 average daily price fell 6.55% YoY. Since the start of August, the rare earth market has remained in a sideways pattern amid the tug-of-war between upstream and downstream. At present, downstream inquiry and buying interest is limited, inquiry activity remains relatively thin, overall trading sentiment is sluggish, and rare earth prices have continued to diverge: in the Pr-Nd market, affected by continued pullbacks in futures prices, some suppliers have slightly lowered their offers; medium-heavy rare earth prices have shown strong resilience and remained broadly stable. In the short term, affected by the stalemate in market trading, Pr-Nd product prices are expected to continue moving sideways. Over the medium and long term, SMM expects that the overall supply of Pr-Nd oxide in 2026 will remain on the tight side, but with new capacity gradually coming on stream in H2 and previously uncommissioned smelting and separation capacity planned to start production, pressure from a loosening supply side may emerge later on. On the demand side, rising toll-processing orders at metal plants in Inner Mongolia will provide some rigid demand support for Pr-Nd oxide. As the traditional "September-October peak season" approaches, the market holds strong expectations for downstream restocking and stockpiling, and end-use demand still has a considerable number of NEV orders to be released in H2. The industrial robot sector remains buoyant, and demand for rare earth permanent magnets is expected to show a notable YoY increase this year. Meanwhile, although emerging sectors such as humanoid robots and the low-altitude economy are developing rapidly and have ample long-term growth potential, they are still in the early stages of industry development, and their actual incremental contribution to rare earth permanent magnets remains limited for now. Whether peak-season demand expectations materialize and the pace of new capacity release will be key variables shaping rare earth market trends ahead. Views from Various Parties According to a Datong Securities research report from August 11, rare earth spot prices pulled back in the short term and downstream magnetic material enterprises were cautious in procurement. However, with supply constrained by three factors—tighter mining quotas, escalated export controls, and production cuts in scrap recycling—along with restocking demand outside China, the strategic revaluation logic had not been shaken. Overall, policy controls and demand from emerging industries drove the minor metals sector; the commodity and financial attributes of scarce resources reinforced each other, and the valuation recovery rally continued. A China Securities research report said, citing data from the General Administration of Customs, that rare earth exports fell markedly in July while average prices rose. July rare earth exports were 4,223.5 mt, down 29.54% YoY and 17.26% MoM, the lowest monthly level since March; cumulative January-July exports were 34,706.3 mt, down 10% YoY. However, the corresponding average export price was $12.34/kg, surging 103.14% YoY, with the export mix tilting toward high-value medium-heavy rare earth products. Markets outside China accepted high-priced raw materials, and the tight global rare earth supply pattern continued. There was no incremental rare earth supply for now; separation enterprises were producing steadily; previously suspended enterprises had no plans to resume production for now; downstream rigid demand provided moderate support; and long-term demand expectations were improving. Rare earth prices are expected to consolidate on a strong note in the near term. A CITIC Securities research report said that, against a backdrop of quota constraints and falling imports, rare earth supply rigidity continued to strengthen. Affected by stricter tax policies, operating rates at scrap recycling enterprises remained persistently low. Rigid-demand restocking along the industry chain, together with the approaching peak season, is expected to drive a demand recovery. Emerging fields such as robotics, the low-altitude economy, and industrial motors are expected to open up long-term demand growth. The rare earth industry's supply-demand pattern may remain tight. Driven by rising prices, H1 earnings at rare earth industry chain companies are expected to beat expectations. CITIC Securities continued to recommend the strategic allocation value of the rare earth industry chain. Recommended Reading: For more fundamental, technical, and policy information on motor raw materials such as rare earth, copper, and aluminum, please join: ~

“ In the critical period of global energy transition and the reshaping of the manufacturing landscape, the lead-zinc industry chain is undergoing profound structural adjustments. Upstream mine resources remained tight continuously, smelting and processing profits were under pressure, while downstream application fields represented by batteries and galvanizing faced opportunities and challenges from new technology iterations and green low-carbon transformation. Against this backdrop, collaboration and price risk management across the industry chain are more important than ever before. SMM deeply insights into industry needs and dedicates to creating a unique industry conference. This conference will focus on downstream applications and long-term contract supply-demand matching, aiming to build a high-end communication platform integrating macro outlook, price analysis, and long-term contract negotiations. The conference will not only analyze in depth the market trends of lead, zinc, precious metals, copper, tin, antimony, bismuth, and other associated metals, but also innovatively set up a long-term contract supply-demand negotiation meeting as a highlight, striving to help clients seize market opportunities in 2027 and foster business cooperation through precise data services and practical agenda design. In the golden autumn of October, we sincerely invite leading enterprises and elites of the lead-zinc industry chain from China and overseas to gather together, to have open exchanges and seek common development in a relaxed and pleasant negotiation atmosphere! Nandan County Zhenghua Non-Ferrous Metals Company will attend this grand event, discussing industry development trends with industry peers and jointly promoting the lead-zinc industry to a new height. Click on the to register immediately, and join us to witness and participate in this significant and far-reaching industry event, creating a new chapter of brilliance together! Nandan County Zhenghua Non-Ferrous Metals Company was founded in 2000, with a history of over 20 years. Located at Xiaoping Tun, Daping Village, Chehe Town, Nandan County (within Hechi-Nandan Non-Ferrous Metal New Material Industrial Park), the company is mainly engaged in non-ferrous metal rolling and processing. It completed construction of a lead-antimony smelting production process using the advanced "oxygen-enriched bottom side-blowing bath smelting-oxidation-reduction fuming triple furnace—smelting flue gas double conversion and double absorption acid-making" technology to process antimony-lead concentrates, gold-antimony ore, and comprehensively recover gold, silver, copper, and bismuth, and has a complete antimony industry chain deep processing enterprise. Designed total metal capacity is 45,000 mt/year, including antimony ingot (10,000 mt/year), antimony trioxide (10,000 mt/year), lead ingot (25,000 mt/year), silver ingot (100 mt), gold ingot (2 mt), sulfuric acid (60,000 mt), and comprehensive recovery of other valuable metals. Total investment is 850 million yuan, covering a total area of 172 mu. The company has obtained certifications for quality management system, environmental management system, occupational health and safety management system, and energy management system from the national quality certification center, and has been rated as a Guangxi S&T enterprise, high-tech enterprise, specialized and sophisticated enterprise, enterprise technical center, gazelle enterprise, and national-level green factory. Zhenghua Nonferrous Metals Co., Ltd. has a group of experienced and skilled management personnel, technical personnel, and operators, forming an excellent management team with high enforcement capability. The company has departments such as Office, Production Department, Safety and Environmental Protection Department, Finance Department, Operations Department, Logistics Department, Engineering Department, and Electrical and Mechanical Section, with over 400 employees, including 60 professional and technical personnel. Over the years, with the care and support from Party committees and governments at all levels, peers in the industry, and people from all walks of life, Zhenghua Company has been committed to the concepts of safe production, circular economy, green development, honest operation, and win-win cooperation, dedicated to serving users wholeheartedly, committed to gathering talents and building a first-class management team, and striving to advance towards the goal of "10 billion Zhenghua". Contact Information zhenghuayelian@163.com Long Press to Scan and Sign Up Now 2026 SMM Lead-Zinc Annual Conference

Bringing together industry strengths, focusing on development opportunities in the wrought magnesium alloy and processing field, building a platform for technical exchange and production–demand matching, promoting the transformation of technological achievements and industrialisation, assisting the manufacturing industry in enabling lightweighting processes and performance enhancement with wrought magnesium alloy materials, and providing strong support for the development of emerging industries and the cultivation of new quality productive forces. Shangmei Net and SMM cordially invite you to participate in the Henan Mingmei Magnesium Technology Co., Ltd. will make a grand appearance at this conference, inviting you to jointly discuss the difficulties of technological breakthroughs, deliberate on the path of industrial collaboration, and explore new growth spaces for the integrated development of magnesium alloys. Click to register immediately to attend, and we are expected to meet you at the conference. Booth number: A11 Henan Mingmei Magnesium Technology Co., Ltd. was established in February 2012, is a key provincial investment attraction enterprise, located in the Hebi National Economic and Technological Development Zone in Henan Province, with a total investment of 500 million yuan. The company implements industry–university–research cooperation with universities such as Yanshan University, Jilin University, and Hebei University of Technology, and possesses the Henan Provincial High-Strength and Superplastic Magnesium Alloy Engineering Technology Research Center, as well as the Jilin University Magnesium Alloy R&D Pilot Base, the Hebei University of Technology Achievement Transformation Pilot Base, and the Henan Provincial Postdoctoral Innovation Practice Base. It conducts technical research and forward-looking studies on topics such as the optimized design of magnesium alloy compositions, solving worldwide technical challenges that restrict the application of magnesium alloys, such as “difficulty in deformation, poor weldability, poor corrosion resistance, and poor plasticity,” and produces a series of end-use products including new-type high-strength and tough magnesium alloy bars, extruded profiles (tubes), superplastic wide-width magnesium alloy plates and strips, high-performance general-purpose magnesium welding wire, biomedical magnesium alloys, and magnesium alloy hyperbaric oxygen chambers. Product Introduction 1. Technical Difficulties in the Application of Magnesium and Magnesium Alloys Magnesium alloys, as the lightest engineering structural metal materials, possess many excellent properties and are a new generation of high-performance structural materials to replace steel, aluminum alloys, and engineering plastics. They are hailed as “the green engineering material of the 21st century.” However, they also have many technical difficulties, such as: poor plasticity difficulty in deformation poor corrosion resistance relatively poor weldability 2. Product Advantages After years of R&D, Mingmei Technology has developed the technical production capacity for wrought magnesium alloys such as high-strength and tough cast magnesium alloys, forging, extrusion, and rolling. It has currently developed and produced multiple grades and various specifications (large-size round bars, billets, slabs), such as WE series, ZK series, low-cost AZ80 forged magnesium alloy, as well as high-purity magnesium, high-purity AZ31 magnesium alloy, etc., and custom-makes alloys with special compositions for clients. The company has a complete management system to ensure the success rate of new product development and the stability of developed products, laying a solid foundation for the deep processing of magnesium alloys. The company owns multiple proprietary patented technologies and, in cooperation with well-known domestic universities, has broken through the constraints of traditional concepts in composition design, smelting, and deformation processes, successfully designing and developing a series of new-type high-strength, tough, and superplastic magnesium alloy products. AZ, AM, ZK, WE Series Magnesium Alloy Products In addition to commercial grade magnesium alloys, there are currently over 40 enterprise grades such as MM‑1, MM‑3, MM‑6, MM30, MM31, MM51, MM10SJ, etc., and specific grade magnesium alloy products can also be produced according to client requirements. The company can design and adjust the composition and structure of magnesium alloys according to client needs. In addition to commercial grades, it has developed over 40 new-type MM series enterprise grades, owns nearly 50 invention patents and utility model patents, and participated in the formulation of 5 national standards. It has successively won honors such as “National High-tech Enterprise,” Henan Province “Specialized and Sophisticated” Small and Medium-sized Enterprise, “Top 100 Innovative Small and Medium-sized Enterprises in China,” and “Excellence Award in the China Innovation and Entrepreneurship Competition.” Contact Information Luo Cuiyi 18560886088 Tel: 0392‑3658888 3659999 Email: HNMINGMEI@163.COM Website: Address: Hebi National Economic and Technological Development Zone, Henan Province SMM Meeting Contact Zhou Boyu 13062794772

[Tungsten Express] The second meeting of the eighth Executive Council (Presidium) of the China Tungsten Industry Association was held in Zhuzhou, Hunan on July 31, 2026. The meeting focused on exchanging and discussing the industry's operating situation, and participants provided opinions and suggestions on the association's work. The meeting required vice presidents and presidium units to continuously enhance their political stance, strengthen confidence in the industry's development, give full play to the exemplary and leading role of key enterprises; firmly establish correct development and performance concepts, take the lead in implementing industry self-discipline, resolutely curb "involution-style" vicious competition, make every effort to stabilize operations, markets, and expectations, and continuously foster a healthy and orderly industry ecosystem. The meeting also called for attaching great importance to and vigorously advancing the formulation and implementation of the "15th Five-Year Plan" for China's tungsten industry, and jointly promoting the high-quality development of China's tungsten industry. Participants also carried out in-depth exchanges and discussions on matters related to the listing of tungsten futures.

SMM July 29: On July 29, mainstream spot rare earth prices in China extended their stay in the doldrums, while the A-share rare earth permanent magnet concept sector drifted higher, showing a pronounced divergence between the spot market and the secondary market. The strength of rare earth permanent magnet concept stocks was underpinned by multiple factors: The production costs of rare earth permanent magnet enterprises are directly related to spot rare earth prices. The phased decline in raw material prices was expected to ease cost pressure on midstream magnetic material enterprises; the rare earth permanent magnet sector underwent continuous corrections in the prior period, with valuations pulling back to relatively low levels, attracting some capital to enter and position; meanwhile, the market remained bullish on sectors such as humanoid robots, NEVs, and industrial motors, expecting these areas to drive medium- and long-term demand growth for high-performance NdFeB, with capital trading around downstream growth expectations. As of the close on July 29, the rare earth permanent magnet concept rose 1.25%. In terms of individual stocks: Jintian Shares and Jiaozuo Wanfang gained over 4%, while Lizhong Group, Zhenghai Magnetic Material, Sanchuan Wisdom, and Xiangdian Shares led the gains. Rare Earth Prices Overall in the Doldrums; Inquiries for Pr-Nd Oxide Recover Spot market: On July 29, the average price of Pr-Nd oxide extended the decline from the previous trading day to fall a further 0.66%. The average prices of dysprosium oxide and terbium oxide were unchanged from the previous trading day. Currently, overall prices in the rare earth market remained sluggish. By product, in the Pr-Nd market, Pr-Nd oxide futures prices recovered, and inquiry activity in the market gradually increased, prompting spot suppliers to raise their quotes. However, downstream buyers had low psychological price levels, limiting actual upside room for spot cargo, with prices still weak compared to yesterday morning. In the metal market, influenced by the recovery in oxide prices and reduced availability of low-priced goods, suppliers slightly raised their quotes; but downstream magnetic material enterprises only maintained just-in-time restocking and were reluctant to accept high-priced raw materials, leaving metal prices still in the doldrums compared to yesterday morning. The medium-heavy rare earth products showed divergent trends: overall inquiry volume saw no significant increase, with suppliers of dysprosium and terbium products maintaining relatively stable quotes and the market generally steady; inquiries for gadolinium products were sluggish, with prices continuing to decline; in the holmium oxide market, inquiries increased, and alongside tighter low-priced supply, suppliers raised their quotes. However, holmium iron inquiries did not improve simultaneously, as magnetic material enterprises resisted high-priced goods, keeping holmium iron quotes unchanged. In the short term, the market is characterized by intense bargaining between sellers and buyers. Before any notable improvement in the supply-demand relationship, Pr-Nd prices are expected to move sideways in a narrow range. Institutional Voices Soochow Securities stated in a report dated July 29: Tungsten and rare earths are subject to mining quota management. Since 2025, both have faced quota tightening, intensifying supply-side constraints. For tungsten mines, the Ministry of Natural Resources lowered the first batch of total tungsten mining indicators for 2025 and strictly controlled production exceeding or without quotas, keeping the raw material circulation persistently tight. Rare earths are jointly regulated under a total volume control mechanism by the Ministry of Industry and Information Technology (MIIT), the Ministry of Natural Resources, and the National Development and Reform Commission (NDRC). In recent years, growth in total rare earth mining quotas has been highly restrained, with quotas for medium-heavy rare earths showing near-zero growth. Rare earths: Material system upgrades for high-capacity MLCCs are expected to boost demand for medium-heavy rare earths. Heavily doping the ceramic material of MLCC shells with rare earth oxides such as dysprosium oxide and yttrium oxide can effectively address inherent defects like poor temperature stability, insufficient insulation resistance, susceptibility to degradation under reducing atmospheres, and abnormal grain growth, meeting the performance requirements of high-capacity MLCCs. We estimate that (1) the unit consumption of medium-heavy rare earth oxides per 100 million MLCCs is about 15 kg; (2) from 2025 to 2030, AI servers and automotive electronics are expected to boost global MLCC demand from 663.1 billion units to 1,362.9 billion units; (3) corresponding demand for dysprosium oxide and yttrium oxide will rise from 101 mt to 207 mt, a CAGR of 15.5%, with a net increase of 106 mt. As China’s rare earth supply landscape trends toward rigid total volume constraints, continuous structural optimization, and intensifying disruption outside China, the price center for medium-heavy rare earths is expected to rise. A report published by Guojin Securities on July 26 showed: Pr-Nd oxide prices fell MoM. Dysprosium oxide prices are expected to benefit from the boost by MLCCs, with a notable trend of rebounding from the bottom. Coupled with expectations of more relaxed exports going forward, they are more bullish on subsequent demand. The export rush outside China combined with sustained supply-side reform progress suggests a potential supply-demand resonance in rare earths. Xiangcai Securities noted in a report that recently, some raw ore separation enterprises have suspended operations due to factors such as group integration, while scrap recyclers that previously suspended or cut production have not yet resumed, keeping output persistently low. Production growth is limited and costs remain high and firm, leading to overall tightness in the oxide supply side. Metal is relatively ample, but producers are firm in their quotations and shipments, with little pressure to sell. On the demand side, expectations are improving, with Q3 demand recovery expectations gradually strengthening. Production at most large magnetic material enterprises remains stable, supported by long-term contract orders, and new export orders are expected to improve. Overall, the supply side remains tight, expectations for market growth are relatively low, downstream demand is moderate, and the overall trend is improving. The market is following a steady upward path, and rare earth prices are expected to be raised moderately going forward. Recommended reading:

Ministry of Commerce: "Insufficient domestic demand in China causes overcapacity" does not reflect facts

On July 27, shares of China Northern Rare Earth rose, closing up 1.15% at 39.48 yuan per share. In other news, the investor relations activity record for June 2026, announced by China Northern Rare Earth on July 21, showed: Q: What is the progress of the green smelting upgrade and transformation project? What benefits will the project bring to the company upon completion? China Northern Rare Earth responded: The company has invested in and constructed the new-generation rare earth green mining, beneficiation and smelting upgrade and transformation project. Phase I has already been put into production, with the production line fully connected; for Phase II, the main structure of the main process building has been completed, and equipment installation is underway. The project adopts industry-leading new processes, technologies and equipment to build a green, intelligent, intensive and high-end rare earth raw material industrial base. By creating a complete automated production line for rare earth smelting and adopting various intelligent equipment systems, the project enhances the intelligent level of green rare earth smelting equipment, enabling high-quality, high-efficiency, low-consumption and flexible intelligent production. It continuously improves the comprehensive utilization level of Bayan Obo resources, actively fosters a higher-quality, more efficient, better-structured, lower-carbon and safer industrial development landscape, effectively achieves the safe and sustainable development of the industry chain and supply chain, and further strengthens the competitive advantage of China's rare earth industry. Upon completion, the project is expected to reduce acid and alkali unit consumption by over 20%, reduce fresh water usage by 30%, and save approximately 15% of energy, effectively raising the level of intensive, efficient, low-carbon and environmentally sound utilization of rare earth resources. It will significantly promote the sustainable, high-quality development of the rare earth industry and downstream application fields, make positive contributions to regional economic and social development, and deliver favorable social benefits. Q: How large are the medium-heavy rare earth reserves in the Bayan Obo mine? China Northern Rare Earth responded: The total medium-heavy rare earth reserves in the Bayan Obo mine are very substantial. In light of changes in the global rare earth resource supply landscape, the company is committed to the research and application of all rare earth elements and categories. It has recently increased investments in medium-heavy rare earths, continuously pursuing technological innovation and boosting R&D spending to provide downstream clients with cost-effective products or solutions. Q: What is the company's sales model for rare earth products? How are prices determined? China Northern Rare Earth responded: The company's products are mainly divided into rare earth raw material products, rare earth new material products, and rare earth end-use application products. Among these, rare earth raw material products include rare earth salts, rare earth oxides and rare earth metals, which serve as the main production raw materials for downstream rare earth new material and new material product processing enterprises. Rare earth new material products include rare earth magnetic materials, polishing materials, hydrogen storage materials, catalytic materials, and rare earth alloys. The company's rare earth end-use application products primarily consist of rare earth permanent magnet high-efficiency energy-saving motors, solid-state hydrogen storage cylinders, and hydrogen-powered two-wheelers. The company generally adopts sales models such as long-term agreements and retail, with long-term agreements accounting for over 50%. Its selling prices are set based on market demand, market price fluctuations, and actual transactions, with metal prices also referencing those from the Baotou Rare Earth Products Exchange. Question: How does the company view future rare earth product prices? What are the downstream applications of rare earth? China Northern Rare Earth responded: Against the backdrop of global carbon neutrality, the vigorous growth of new energy industries and technological innovation has brought new development opportunities for rare earth as a key element of new quality productive forces. Rare earth, recognized as a critical mineral factor globally, has become a vital pillar for future industries. Rare earth product prices are mainly influenced by a combination of factors such as market supply, demand, and market expectations. In the short term, due to the pace of industry supply and demand and downstream procurement cycles, rare earth prices are expected to remain range-bound and fluctuate. In the medium term, the supply pattern in the rare earth industry will remain orderly and controllable, with prices generally running steadily. In the long term, as incremental demand from new energy, high-end equipment, humanoid robots, and other sectors continues to be released and steadily develop, rare earth prices will receive strong support. Against the broader backdrop of carbon neutrality, rare earth connects with manufacturing upgrades, technological innovation, global industry chain adjustments, and national development strategies. The long-term development of the rare earth industry is stable and positive. With the advancement of carbon peak and carbon neutrality, the core demand for rare earth is shifting towards green low-carbon new energy and high-end manufacturing. High-performance rare earth permanent magnets are used in new energy vehicle drive motors, new energy ship power systems, electric aircraft, eVTOL, etc. Some MLCC (multilayer ceramic capacitors) also add trace amounts of rare earth oxides for doping modification, driving continuous growth in rare earth demand. Question: What are the company's plans for extending its industry chain? Will it further expand into downstream end-use applications? China Northern Rare Earth responded: After years of development, the company has taken the lead in the industry to become an integrated, group-level publicly listed firm that combines rare earth smelting and separation, functional materials, application products, scientific research, and trade. It has formed an industrial structure based on rare earth resources, centered on smelting and separation, focused on new materials, and oriented towards expanding into end-use applications. Relying on an innovation-driven development strategy, it continuously promotes industrial structure adjustment, transformation and upgrading, achieving integrated development across the upstream, midstream, and downstream of rare earth, and building an industry-leading competitive advantage across the entire industry chain. The company has deployed six major industries: magnetic materials, polishing materials, energy storage materials, catalytic additives, high-purity metals and alloys, and optical functional materials. It has: (1) established the rare earth permanent magnet material–permanent magnet motor industry chain, continuously enhancing the production capacity of permanent magnet motors; (2) established the rare earth hydrogen storage material–solid-state hydrogen storage industry chain, focusing on solid-state hydrogen storage applications such as hydrogen fuel two-wheelers, solid-state hydrogen storage forklifts, and hydrogen refueling stations, to promote industrial application; (3) established the rare earth alloy–intermediate alloys of rare earth iron, rare earth aluminum-magnesium industry chain, constructing a demonstration line for large-scale production of high-purity rare earth metals and targets, driving breakthroughs in applications of rare earth aluminum-magnesium alloys in advanced rail transit and lightweight profiles; (4) consolidated and expanded the leading position of the rare earth polishing materials industry in and outside China, breaking through production technologies for high-end products such as high-performance rare earth polishing powders and polishing for high-grade glass substrates, and breaking foreign monopolies; (5) established the rare earth catalytic material–exhaust purification functional device industry chain, focusing on industrial exhaust gas treatment, automotive exhaust gas purification, volatile organic compound (VOC) treatment, and petrochemicals to achieve industrialization; and (6) expanded the application fields of rare earth optical functional materials, strengthening the commercialization and promotion of rare earth multi-color reflective thermal insulation coatings, rare earth infrared radiation materials, and rare earth infrared heat storage and temperature-rise materials. For example: to address the poor thermal insulation of architectural glass, the company developed a rare-earth nano thermal-barrier coating that significantly reduces air-conditioning energy consumption; to mitigate heat accumulation on building exteriors and metal surfaces, the company developed a rare-earth multi-colour reflective thermal-insulation coating containing over 25% lanthanum-cerium compounds, effectively alleviating the heat-island effect; leveraging the unique photofunctional properties of light rare earths, the company developed polyester-based rare-earth functional fibres that enable smart thermal regulation such as heat storage, thermal insulation and UV shielding. Closely following market demand, the company continuously increases R&D investment, optimises product structure and performance, and meets the differentiated needs of downstream clients. Q: How is the company progressing in the utilisation of rare-earth secondary resources? China Northern Rare Earth responds: In the current context of green and low-carbon development, the prospects for rare-earth secondary resource utilisation are broad. The Rare Earth Regulations explicitly encourage and support enterprises in adopting advanced and applicable technologies and processes to conduct comprehensive utilisation of rare-earth secondary resources. Meanwhile, the continuously climbing demand for rare earths in fields such as NEVs, wind power and consumer electronics is also providing more resources for rare-earth secondary resource utilisation. For a long time, the company has been consistently focusing on secondary resource recycling and recovery. Regarding the return of scrap after the sale of Pr-Nd alloy, since 2022 the company has included a provision when signing supply agreements with downstream magnetic material enterprises: NdFeB enterprises using the company’s Pr-Nd alloy must return the production scrap generated in their own manufacturing processes to the company for resource recycling and recovery in accordance with market principles. At present, the company has established a circular loop spanning from raw ore to metal, magnetic material, and the recycling of scrap generated from magnetic material production. The company has made deep deployments in both the north and south. In the south, its controlled subsidiary Xinfeng Xinli has completed the main plant construction for its Phase-I NdFeB scrap recycling and utilisation project, and on-site equipment is undergoing orderly installation and commissioning; its rare-earth oxide comprehensive utilisation technological transformation project has received approval from the Department of Industry and Information Technology of Jiangxi Province. In the north, its controlled subsidiary Jinmeng Rare Earth has completed the “NdFeB Scrap Recycling Automated Production Line” project and the automation upgrade and renovation of the rare-earth concentrates separation line; both lines have commenced production, with notable capacity release. The company actively deploys and develops the rare-earth secondary resource utilisation industry, builds a 10kt-scale resource recycling capacity, achieves full-element rare-earth recycling and recovery through effective utilisation of secondary resources, and enhances the economic value of rare-earth elements. Q: What are the future development trends for polishing materials? China Northern Rare Earth responds: The global polishing fluid market is maintaining a steady growth trend. Demand for high-end semiconductor polishing materials, such as those for AI chips and memory-wafer capacity expansion, continues to rise. Going forward, high-end, refined and green development will become the main theme. The localisation rate of specialised polishing fluids for China’s high-end integrated circuits will increase significantly, while demand for polishing in conventional optics and panels will grow at a moderate pace. The company ranks first in the industry in both production and sales volume and market share in the rare earth polishing materials sector, with its three polishing powder production enterprises covering high-end, mid-end, and low-end segments. In the rare earth polishing materials field, the company has multiple advantages in scale, technology, and upstream-downstream industry chain integration, enabling it to quickly respond to demand from various downstream application fields, achieve steady growth in production and sales, and continuously increase the share of high-value products, holding a leading position in the industry. The company is deeply involved in national strategic scientific and technological breakthroughs, has led the formulation of multiple national and industry standards, completed national-level scientific research projects such as the “863 Program” and “Torch Program,” holds 4 invention patents and 6 utility model patents, and its core technical indicators have reached internationally advanced levels. With self-developed cutting-edge technology, its products are renowned in and outside China for uniform particle size, high polishing efficiency, and strong suspension, and are widely used in manufacturing fields such as liquid crystals, hard disk glass substrates, curved and flat cover glass for mobile phones, crystal and rhinestone ornaments, traditional optical and precision optical components, semiconductor photomasks, and integrated circuits. Q: What is the proportion of externally purchased ore in the company’s raw material supply? China Northern Rare Earth responded: The rare earth raw materials required for the company’s production mainly come from the Baiyun Obo mine, the world’s largest co-existing ore containing rare earths and other elements. The company’s proportion of externally purchased ore is very small and is dynamically adjusted based on production line conditions, market prices, downstream client demand, and other factors. China Northern Rare Earth’s semi-annual performance forecast shows: According to preliminary estimates by the company’s financial department, net profit attributable to shareholders of the parent company in H1 2026 is expected to be RMB1.98 billion to RMB2.06 billion, an increase of RMB1.05 billion to RMB1.13 billion compared with the same period last year (statutory disclosed data), up 112.74% to 121.33% YoY. Net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in H1 2026 is expected to be RMB1.99 billion to RMB2.07 billion, an increase of RMB1.093 billion to RMB1.173 billion compared with the same period last year (statutory disclosed data), up 121.90% to 130.82% YoY. The main reasons for the expected year-on-year increase in performance: In H1 2026, the company served the national rare earth resource strategy and fully implemented the requirements for security management and control of the rare earth industry chain. Affected by factors such as constrained raw material supply, multi-point release and sustained growth of downstream demand, rare earth product prices showed an overall strengthening trend and consolidated. Focusing on the annual production and operation targets, the company planned holistically and implemented comprehensive measures, strengthened overall budget management, coordinated cost reduction and efficiency improvement, scientifically arranged production scheduling, intensified marketing operations, deepened reform and innovation, enhanced group management and risk prevention and control, advanced the deep integration of professional management, lean management, and 5S management at a high quality, promoted the construction of key projects, accelerated the development of new quality productive forces through management and scientific research innovation, and provided solid support and assurance for achieving good operating results with strong industry chain value creation capability and core competitiveness. The Company scientifically refined production organization and operations, and the production of rare earth smelting and separation products, rare earth metal products, and rare earth new materials all reached record highs for the same period; the Company’s subsidiary, Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd., achieved revenue of approximately 9.5 billion yuan in H1, up about 107% YoY, maintaining growth for three consecutive years; its subsidiary Inner Mongolia Xi'ao Ke Hydrogen Storage Alloy Co., Ltd. officially put into operation the first batch of 1,000 hydrogen-powered two-wheelers in Baotou, with cumulative safe driving mileage reaching 170,000 km, achieving notable demonstration results. The Company persisted in benchmarking against advanced internal and external practices to tap internal potential, strengthened lean management, and significantly improved multiple economic and technical indicators. Based on precise measures for each business segment: the smelting and separation segment overcame new production cost changes brought by rising prices of raw and auxiliary materials, effectively managed cost fluctuations, scientifically organized production scheduling, and ensured supply to meet new product demand; the rare earth metal segment took the reinforcement of lean production concepts as a starting point, used digital and intelligent means to further strengthen on-site process operation management, and drove new breakthroughs in economic and technical indicators such as quality and material ratios; the rare earth new materials and applications segment fully leveraged the advantages of new capacity, precisely aligned with client needs, and achieved new progress in driving sales through production. Deepening industry chain synergy and coordination, while ensuring stable product supply, it solidified the foundation of downstream client cooperation. The Company closely followed market demand, strengthened marketing management, optimized sales structures, client credit evaluations, and product account period management, adjusted and shortened account periods by category, secured the fundamental base with long-term agreement orders, and met differentiated market demand through retail. Sales of rare earth metals and magnetic materials steadily increased, achieving full coverage of top-tier players in magnetic materials; sales of lanthanum-cerium products increased YoY, further digesting historical inventory; polishing material sales increased YoY; developed 5 new pieces of equipment and 20 customized and specialized new products, continuously expanding product application scenarios. The Company efficiently advanced key project construction, continuously enhancing its intelligent and informatization level. The first phase of the rare earth green smelting upgrade and transformation project has been put into operation, with all production lines fully connected, and the second phase construction progressing in an orderly manner; industry chain projects such as mergers and acquisitions, joint ventures, and capacity expansion for rare earth metals, magnetic material alloys, magnets, and secondary resource utilization are accelerating their implementation. The secondary resource utilization project achieved volume growth and quality-efficiency improvements; the Company's digital and intelligent transformation pace quickened, with its digital and intelligent level continuously improving. Regarding the 2026 business plan, China Northern Rare Earth announced in its 2025 annual report that: 2026 is the opening year of the "15th Five-Year Plan", and is an important year for the Company to advance high-quality development and accelerate building itself into a world-class rare earth leader. The company will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, focus on forging a strong sense of community for the Chinese nation, fully implement the guiding principles of the 20th National Congress of the Communist Party of China and all plenary sessions of the 20th Central Committee, and carry out the important speeches and instructions of General Secretary Xi Jinping on Inner Mongolia and the rare earth industry, as well as the decisions and deployments of higher authorities including the Inner Mongolia Autonomous Region and Baotou City. It will uphold the general principle of pursuing progress while ensuring stability, fully, accurately and comprehensively apply the new development philosophy, bravely fulfill its responsibilities and missions, steadily improve operational quality and efficiency, build an industrial system covering all elements and categories, promote the deep integration of technological and industrial innovation, accelerate the pace of deepening reforms, enhance modern governance capabilities, continuously strengthen core functions and improve core competitiveness, speed up the development into a world-leading rare earth enterprise, ensure a good start and solid first steps for the "15th Five-Year Plan" period, and make new and greater contributions to the construction of the "Two Rare Earth Bases." Main production and operation targets for 2026 (these targets are solely planned objectives; whether they can ultimately be achieved is uncertain and does not constitute a substantive commitment to investors; investors and relevant parties should maintain sufficient risk awareness and understand the differences among plans, forecasts, and commitments): achieve operating revenue of over 44 billion yuan and total profit of over 3.5 billion yuan. On the premise of meeting operational targets, employee income will be linked to corporate economic benefits and labor productivity in the same direction. A review of the SMM Pr-Nd oxide price trend in H1 shows that the average price of Pr-Nd oxide on June 30 was 742,500 yuan/mt, up 136,000 yuan/mt from 606,500 yuan/mt on December 31, 2025, representing an H1 increase of 22.42%. The average price of Pr-Nd oxide in H1 this year was 740,530.17 yuan/mt, compared with an average of 430,952.99 yuan/mt in H1 2025, a YoY rise of 309,577.18 yuan/mt, or 71.84%. According to SMM quotes, on July 27, the average price of Pr-Nd oxide was 765,000 yuan/mt, up 0.99% from the previous trading day. For the rare earth market outlook, in the short term, amid a stalemate in the tug-of-war between upstream and downstream, Pr-Nd product prices are expected to move sideways within a narrow range, with limited room for significant upward or downward movement. Supporting factors come from the supply side — recently some raw ore separation enterprises have suspended operations, production at scrap recycling enterprises remains persistently low, and overall oxide supply is relatively tight, forming bottom support for prices. Pressuring factors come from the demand side, as new orders for magnetic material enterprises are unlikely to recover quickly in the short term, buyers have low acceptance of high prices, and the market lacks sustained upward momentum. For heavy rare earths, after experiencing adjustments this week, dysprosium and terbium are expected to gradually stabilize as major players step in to purchase. From a medium-term perspective, most industry participants hold expectations for a demand recovery in the traditional peak season at the end of Q3, and coupled with the likely improvement in new export orders, the rare earth price center still has the potential to edge upward steadily after a period of consolidation. However, in the short term, close attention must be paid to the pace of downstream restocking and the purchasing moves of top-tier players. Recommended reading:

Against the backdrop of accelerated global advancement in the circular economy, the recycling industry is expanding from mere resource recycling to diversified value. As a renowned information service platform for China’s non-ferrous metals sector, Shanghai Metals Market (SMM) has long focused on the recycling segment, building a comprehensive service ecosystem for renewable resource recycling that encompasses data, news, price benchmarks, industry conferences and supply-demand matchmaking. The annual Battery Recycling and Circular Industry Conference (GBRC) organized by SMM has grown into one of China’s largest and most influential industry events in the renewable resources sector. Meanwhile in Brazil, across the ocean, a non-profit organization is interpreting the social value of recycling in an alternative way: repurposing scrap materials into tools for robotics education to open the door to the digital world for children in public schools. Founded in 2016, Sementes do Vale is a non-profit organization dedicated to sports, culture, education, technology, vocational training and social psychological support. Its flagship initiative, the e-Ducar (Educational Robotics with Scrap Materials) , centers on the dual pillars of "recycling plus education" and reduces educational inequality by democratizing access to digital education for students and public schools through educational robotics, computational thinking for understanding Artificial Intelligence, and STEAM methodology. To date, the programme has served 38 public schools across 7 cities in 2 Brazilian states, trained 164 teachers, and directly benefited 4,331 students. More importantly, it is not a one-off workshop, but rather a path designed so robotics enters the school and stays there, even after we leave. How It Works Four Steps, One Complete Ecosystem E-Ducar project 's core competitiveness lies in its design of a fully integrated implementation pathway that covers everything from teacher training to teaching materials, from hardware to curriculum standards, ensuring that schools can independently conduct robotics courses even after the project withdraws. Step-1: Teacher Training The heart of the project. Free in-person training for public-school educators: robotics fundamentals, block-based programming, computational thinking, and how to integrate everything into the school curriculum. Step-2: Materials and Video Lessons Each teacher leaves with a complete pedagogical kit: ready-to-use lesson plans, an e-book, hands-on activities with scrap materials, and video lessons on YouTube. Everything is open, free, and permanently available. Step-3: Free robotics kits Each partner school or education department receives robotics kits to use in classes with its students. Step-4: Aligned with Brazil's national curriculum Digital education became mandatory by law in Brazilian schools, and the project materials were structured to support this adaptation through educational robotics, computational thinking, and STEAM methodology. Robotics Is a Right, Not a Privilege for the Few Robotics is a right, but it reaches very few. Even with Law No. 14,533/2023 guaranteeing the right to digital education, most Brazilian public schools have never offered a robotics class. e-Ducar was born to change that statistic, one classroom at a time. From the perspective of the recycling industry, this also represents a deep extension of circular economy principles into society: at the industrial end, scrap metals and waste electronic components re-enter the industry chain through regenerated smelting, while in the education sector, they can similarly be creatively reassembled into tools for inspiring the next generation’s interest in technology. Just as SMM has long advocated the concept of "full life cycle resource circulation," the value of recycling is reflected not only in metal recovery rates and economic benefits but also in the long-term value of sustainable development. Support the Project If you are an educator, school leader, education department, or company that wants to support us, let's talk. Robotics from the Sertão can be where you are. Building Communication Platform Between China and the World: SMM Supports Global Circular Science Education Public Welfare As a professional information service platform serving the global renewable resources and battery recycling sectors, SMM has long dedicated itself to research on recycled metals and lithium battery recycling as well as building platforms for industrial supply and demand exchange. Beyond these core businesses, SMM has consistently incorporated sustainable public welfare initiatives into its long-term corporate social responsibility strategy. SMM will continue to monitor non-profit organizations worldwide that deliver inclusive science and technology education using recycled materials. The e-Ducar programme stands out as an exemplary social innovation that SMM supports. Backing non-profit organizations such as Sementes do Vale to advance the e-Ducar initiative not only fosters inclusive education and mitigates educational inequality across Latin America, but also serves as an effective channel for the industry to popularize circular economy knowledge and disseminate sustainable development concepts. Moving forward, SMM will keep building communication platforms between industrial players from China and overseas non-profit organizations, encouraging more recycling enterprises to participate in cross-border science and education support programmes. By leveraging industrial expertise to empower equitable sustainable education globally, SMM will fully implement integrated ESG practices that deliver environmental benefits, social value and long-term development.

“Tin” Leading the Future: Industry Transformation and Value Reshaping in the New Cycle Conference Background At present, the global tin industry is standing at a historic turning point. The traditional cycle logic has been completely broken, and its strategic value has become fully evident. In 2026, the tin market presented an unprecedentedly complex landscape and profound changes: I. The supply-demand pattern was deeply restructured, and strategic attributes rose to an unprecedented level The global tin resources’ static reserve-to-production ratio was only 14 years, with scarcity becoming increasingly prominent. The supply side faced “triple pressure”: repeated twists and turns in Myanmar’s production resumptions, continued tightening of Indonesia’s policies, and elevated geopolitical risks in the DRC; resource constraints had become the new normal. Meanwhile, the demand structure underwent a fundamental shift, and tin had become a strategic resource connecting traditional manufacturing with the digital future. II. The pricing system broke through historical levels, and the industry ecosystem faced reshaping In early 2026, SHFE tin prices broke through 470,000 yuan/mt, setting a record high. This price breakthrough was not only a manifestation of the supply-demand imbalance, but also a sign of value revaluation in the tin industry. Traditional trading models, risk management systems, and supply chain collaboration approaches were all in urgent need of innovative breakthroughs. III. Technology-driven and green transformation gave rise to a new symbiotic ecosystem Digital and intelligent technologies were deeply empowering the tin industry chain. The global green transformation required the tin industry to upgrade toward low-carbonisation and a circular economy, making recycled tin recovery and green smelting processes an inevitable path. Every link of the industry chain had to move from competition to collaboration, building an open, resilient, and innovative symbiotic system. Against this backdrop, on August 19-21, 2026 , held in Changsha, Hunan , the 2026 SMM (16th) Tin Industry Chain Conference will bring together global industry elites for joint discussions. Anhui Jinhong Renewable Resources Technology Co., Ltd. will attend this grand event, joining industry peers to discuss industry development trends and work together to propel the tin industry to new heights. Click the to register for the conference immediately, and jointly witness and participate in this extraordinary and far-reaching industry event, creating a brilliant new chapter together! Anhui Jinhong Renewable Resources Technology Co., Ltd. was established in 2016 and is located at No. 1 Chuangye Road, Tianying Science and Technology Park, Jieshou, Anhui province. The company covered an area of 98 mu, with a total investment of 580 million yuan and a total construction area of more than 20,000 m². It had built an R&D building, a comprehensive recycling workshop, a crude refining workshop, a refining workshop, a rare and precious metals workshop, an oxygen production workshop, raw material and finished product warehouses, auxiliary buildings, and other comprehensive supporting facilities. Anhui Jinhong Renewable Resources Technology Co., Ltd. was the vice chairman unit of the national “Nonferrous Metals Industry Technology Innovation Strategic Alliance”. It currently had more than 100 employees, including more than 10 management and technical professionals, and had a high-level scientific research and development team with strong technical capabilities. It held dozens of invention patents and utility model patents with independent intellectual property rights, as well as four proprietary brand trademarks. The main equipment includes advanced production processes such as vacuum distillation furnaces, oxygen-enriched side-blown furnaces, electric furnaces, and pyrometallurgy refining, with supporting facilities for flue gas purification, wastewater treatment, and quality testing instruments. It is a key enterprise for the extension and improvement of the renewable resource utilization industry chain in Tianying Science and Technology Park, Jieshou High-tech Zone, Anhui Province. Annually, it can utilize 50,000 mt of hazardous waste containing lead, tin, and antimony, and 80,000 mt of crude lead, producing 8,000 mt of refined tin, 90,000 mt of refined lead, and 8,500 mt of lead-antimony alloy. It is a high-tech enterprise integrating the recycling, utilization, processing, technology R&D, and sales of precious and rare metals such as lead, tin, and antimony. Anhui Jinhong Renewable Resources Technology Co., Ltd. is charting its development with innovative ideas and a long-term vision. The company will always adhere to the business philosophy of "technology-led, quality-assured, and green-priority" and make every effort to break free from the constraints of "limited perspective and narrow vision." In the future, Anhui Jinhong Renewable Resources Co., Ltd. will strive to improve the image of the lead- and tin-containing scrap recycling industry chain in Jieshou City and aim to become a national first-class model enterprise for comprehensive resource utilization. Established in 2016, Anhui Jinhong Renewable Resources Technology Co., Ltd. is located at No. 1 Chuangye Road, Tianying Science and Technology Park, Jieshou City, Anhui Province. Covering an area of 98 mu with a total investment of 580 million yuan and a total construction area of over 20,000 square meters, the company is equipped with a research and development building, comprehensive recycling workshop, crude smelting workshop, refining workshop, precious and rare metal workshop, oxygen production workshop, raw material and finished product warehouses, as well as auxiliary buildings and other complete supporting facilities. Lead-antimony alloy As the vice chairman unit of the national "Non-ferrous Metal Industry Technology Innovation Strategic Alliance", the company employs more than 100 staff members, including over 10 management and technical talents. It boasts a high-level R&D team with strong technical capabilities, holding dozens of invention patents and utility model patents with independent intellectual property rights, as well as 4 independent brand trademarks. The company adopts advanced production processes and equipment including vacuum distillation furnaces, oxygen-enriched side-blown furnaces, electric furnaces and fire refining systems, supported by complete flue gas purification, wastewater treatment and quality testing equipment. It is a key enterprise committed to extending and improving the renewable resource utilization industrial chain in Tianying Science and Technology Park, Jieshou High-tech Zone. The company can annually process 50,000 tons of lead-tin-antimony hazardous waste and 80,000 tons of crude lead, with an annual output of 8,000 tons of refined tin, 90,000 tons of refined lead and 8,500 tons of lead-antimony alloy. It is a high-tech enterprise integrating the recycling, utilization, processing, technological R&D and sales of rare and precious metals such as lead, tin and antimony. Lead-Tin Alloy Adhering to innovative concepts and a long-term strategic vision for development, the company always upholds the business philosophy of "technology-oriented, quality-guaranteed and green development-oriented", and strives to break through developmental limitations caused by insufficient strategic positioning and narrow vision. In the future, Anhui Jinhong Renewable Resources Technology Co., Ltd. will focus on optimizing the development pattern of the lead-tin waste renewable resource industry chain in Jieshou City, and endeavor to build itself into a national first-class model enterprise for comprehensive resource utilization. Crude Tin Refined Tin Contact Us Wei Xianghai 18155838588 Long press or scan the QR code to register now 2026 SMM (16th) Tin Industry Chain Conference

July 15, 2026 Anyone seeking to understand why rising oil prices triggered by tensions in the Gulf can actually weigh on gold prices—despite intuition suggesting the opposite—must begin with the petrodollar system. It is the invisible foundation of the global financial architecture and explains why the seemingly unrelated markets for oil, gold, and U.S. Treasury bonds are, in reality, deeply interconnected. The story begins in 1974. Following the first oil shock, the U.S. government, under Secretary of State Henry Kissinger, reached a landmark agreement with Saudi Arabia. Under the arrangement, the Kingdom agreed to price its oil exclusively in U.S. dollars and reinvest its oil revenues into U.S. Treasury securities. In return, Saudi Arabia received military protection and security guarantees from the United States. The Petrodollar: The Invisible Foundation of the Financial System The other OPEC members soon adopted the same model. The consequences were revolutionary—and highly advantageous for the United States. Every country wishing to purchase oil first had to acquire U.S. dollars, creating a structural and permanent global demand for the greenback. The mechanism functions as a circular flow: oil revenues earned by the Gulf states are subsequently invested in U.S. Treasuries, supporting demand for American government debt, keeping Treasury yields lower, and strengthening the U.S. dollar. A stronger dollar, in turn, makes oil more expensive for the rest of the world, reinforcing the dollar's dominant position. This system explains why the United States has been able to finance growing budget deficits at comparatively low interest rates for decades. Behind the scenes, the petrodollar mechanism created an artificial and continuous demand for U.S. government bonds. Gold: The Counterpart Without Counterparty Risk Gold occupies a unique position within this system. Unlike a U.S. Treasury bond, gold is no one's liability. A government bond represents a promise by a sovereign borrower. A currency represents a promise by a central bank. Gold, however, is no promise at all—it is a tangible asset without counterparty risk. Veteran speculator and Casey Research founder Doug Casey summarized this concept succinctly when he said that gold is not a speculative investment but rather a form of savings—and indeed the only form of savings that does not simultaneously expose the owner to another party's risk. For that reason, the price of gold is fundamentally influenced by many of the same variables that drive the bond market: inflation, real interest rates, and confidence in the monetary system. Rising real yields—that is, Treasury yields adjusted for inflation—make non-yielding gold relatively less attractive. Conversely, when real yields decline or inflation is perceived as persistent, gold systematically becomes more attractive relative to bonds. In February 2026, U.S. investment bank J.P. Morgan described this relationship as asymmetric, noting that gold tends to rise more when interest rates fall than it declines when rates rise. This reflects the structural shift that has emerged in recent years as central banks have become consistent net buyers of gold. How Oil Prices Influence Gold: A Paradox At first glance, the relationship between oil and gold appears paradoxical. When oil prices rise as a result of geopolitical tensions, this initially represents an inflationary signal, which one would normally interpret as bullish for gold. Yet market reactions often move in the opposite direction. Rising oil prices push inflation expectations higher, prompting central banks to adopt a more restrictive monetary stance—or at least reducing expectations for future interest rate cuts. Higher interest rates strengthen the U.S. dollar, making gold more expensive for international buyers. At the same time, more U.S. dollars flow to oil-exporting countries and are subsequently recycled into U.S. Treasury securities through the petrodollar system. The short-term result is therefore often an inverse correlation: higher oil prices support the U.S. dollar while weighing on gold. The long-term effect, however, is exactly the opposite. Persistently higher energy costs generate structural inflation. They place increasing pressure on government finances and gradually erode confidence in fiat currencies, thereby strengthening gold's role as a neutral store of value. This interaction between short-term market correlations and long-term economic causality lies at the heart of the triangle connecting oil, gold, and bonds. The Interest Expense Dilemma as the Transmission Mechanism Another increasingly important transmission mechanism is the interest burden carried by the U.S. federal government. Every time the Federal Reserve raises interest rates, refinancing costs on America's debt increase. With total federal debt now exceeding US$38 trillion , every one-percentage-point increase in interest rates adds several hundred billion dollars to annual interest expenses. Higher oil prices contribute to tighter monetary policy and therefore higher interest rates. At the same time, they also increase government financing costs. As deficits continue to grow, the Treasury must issue even more bonds, which in turn further increases total interest expenses—even if investor demand remains sufficient. Should demand for U.S. Treasuries weaken, yields would have to rise further to attract buyers. While this may temporarily pressure gold by increasing real interest rates, it simultaneously worsens the long-term fiscal outlook, ultimately strengthening gold's appeal. The triangle formed by oil, gold, and U.S. Treasuries is therefore not an abstract theoretical model but the operational reality of today's global financial system. Source： https://goldinvest.de/en/oil-prices-gold-and-u-s-treasuries-why-these-three-markets-are-inseparably-linked