Baogang Group Mine Research Institute announced that “Xianhua Lan-niobate,” discovered under the institute’s leadership, had been officially approved as a new mineral by the Commission on New Minerals, Nomenclature and Classification of the International Mineralogical Association, with the international number IMA2025-087. This is the 29th new mineral discovered in the Bayan Obo deposit, the world’s largest rare earth deposit.This mineral is a rare rare earth–niobate mineral occurring in the East Mine and the eastern contact zone of the Bayan Obo deposit. Its discovery is of significant scientific value for studying the multi-stage, multi-episode hydrothermal superimposed mineralization process of the Bayan Obo deposit, as well as the mechanisms of global rare earth–niobium enrichment.

I. Policy Review: Hydrogen Policy Updates (A) Domestic Policies Chongqing: Released the "Draft Development Plan for Hydrogen Refueling Stations in Chongqing (2025-2035)" for public comments. According to the draft, it is predicted that the promotion of hydrogen fuel cell vehicles in Chongqing will reach 800 units by 2027, 2,000 units by 2030, and 4,000 units by 2035. Meanwhile, efforts are being made to actively promote the construction of cross-regional hydrogen corridors such as the "Chengdu-Chongqing Hydrogen Corridor" and the "Western Land-Sea New Passage Hydrogen Corridor," while gradually expanding hydrogen application scenarios in key areas including western Chongqing, eastern new towns, southeastern Wuling mountainous areas, and northeastern Three Gorges Reservoir area. Based on application scenarios such as highways, ports, logistics parks, and industrial parks, combined with the growth trend and estimated ownership of hydrogen fuel cell vehicles, the demand for hydrogen refueling capacity is forecasted as follows: 0.4 thousand mt/year in 2027, 1.1 thousand mt/year in 2030, and 2.5 thousand mt/year in 2035 for regions like the Chengdu-Chongqing Hydrogen Corridor and the Western Land-Sea New Passage Hydrogen Corridor. Panzhihua City, Sichuan Province: Issued the "Several Measures to Support High-Quality Development of the Hydrogen Industry," which states that up to 5 million yuan in financial rewards will be given for the construction and operation of hydrogen refueling stations, green hydrogen production, promotion of hydrogen fuel cell vehicles, equipment manufacturing, and technological innovation, along with simplified approval procedures to promote the full-chain development of the hydrogen industry. Jiujiang City, Jiangxi Province: Published the "Several Measures for Further Supporting High-Quality Development of the Hydrogen Industry in Jiujiang." The document indicates that Jiujiang has introduced a special policy (trial) for the hydrogen industry, providing financial support across the entire chain from business settlement to application scenarios and facility construction: For manufacturing enterprises purchasing hydrogen-related equipment worth over 10 million yuan, a reward of up to 3 million yuan at an 8% rate is provided, with projects exceeding 100 million yuan subject to "case-by-case negotiation"; Enterprises achieving their first annual revenue milestones of 20 million yuan, 100 million yuan, and 500 million yuan will receive tiered rewards ranging from 100,000 to 5 million yuan. On the application side, subsidies for purchasing hydrogen fuel cell buses and logistics vehicles are 3,000 yuan/kW, with operational subsidies for vehicles within the city ranging from 50,000 yuan/10,000 km for light-duty to 100,000 yuan/10,000 km for medium and heavy-duty, with a maximum annual subsidy of 3 million yuan per company; Subsidies for purchasing hydrogen-powered ships vary based on power, with a maximum single-ship subsidy of 2 million yuan, and operational subsidies ranging from 80,000 to 120,000 yuan/year. In the industrial sector, the purification of by-product hydrogen is encouraged, and projects such as hydrogen metallurgy and hydrogen blending in power generation are supported, promoting the green hydrogen demonstration in Lianxi District. Regarding infrastructure, oil-hydrogen co-construction stations and integrated hydrogen production-refueling stations with daily hydrogen refueling capacity over 500 kg will receive a 1 million yuan subsidy, while fixed stations will get 500,000 yuan; If the selling price at hydrogen refueling stations is below 35 yuan/kg, an additional 1 yuan/kg reward will be given for every 1 yuan reduction, with a maximum annual reward of 1 million yuan. Relaxation of road rights for hydrogen vehicles, with logistics vehicles and heavy trucks enjoying free parking and exemption from travel restrictions. The policy emphasizes "chain cultivation," covering the entire process from business establishment to technology conversion and scenario expansion, to be implemented starting 2025, aiming to build a model city for hydrogen energy applications. Tieling City, Liaoning Province: Issued the "Notice on Further Clarifying Safety Management Responsibilities in the Hydrogen Energy Sector in Tieling City." The document states that the hydrogen products referred to in this notice are those produced by electrolysis of water using renewable energy (collectively known as green hydrogen) and are not managed as hazardous chemicals when used as an energy source. Green hydrogen projects should be legally initiated, fulfilling relevant procedures concerning urban and rural planning, land use, ecological environment, resource utilization, safety production, fire control, and special equipment. It is allowed to construct green hydrogen production projects, including solar, wind, and other renewable energy-based water electrolysis, and integrated hydrogen production and refueling stations outside chemical industrial parks. Hydrogen production, storage, and refueling station construction projects are subject to filing management by county-level governments, while supporting power generation projects and grid engineering for solar, wind, and other renewable energies are subject to approval and filing according to their management authority. Green hydrogen production does not require a hazardous chemicals safety production permit. Hydrogen enterprises are supervised for safety according to their industry category. Hydrogen production from fossil fuels (gray or blue hydrogen) or industrial by-product hydrogen must obtain a hazardous chemicals safety production permit. Hydrogen enterprises should establish a safety management organization responsible for emergency management or appoint full-time safety personnel with emergency management responsibilities, clearly defining the division of responsibilities for emergency response, command, handling, rescue, and recovery, and implementing these in detail at the job level. Policy Interpretation: 1. "Chongqing Hydrogen Refueling Station Industry Development Plan (2025-2035) (Draft for Comments)" : The policy takes the "Chengdu-Chongqing Hydrogen Corridor" and the "Western Land-Sea New Passage Hydrogen Corridor" as core initiatives, constructing a hydrogen application network through cross-regional cooperation, highlighting strategic synergy. The plan specifies hydrogen refueling capacity needs for 2027-2035, promoting the construction of hydrogen refueling stations in highway service areas, ports, and other scenarios, and forming a regional hydrogen supply center based on by-product hydrogen resources in Changshou District (exceeding 1.5 billion cubic meters annually). This "demand-driven + resource integration" model can, to some extent, reduce the cost of hydrogen circulation between regions and accelerate commercialization through scenario expansion. 2 . "Several Measures to Support High-Quality Development of the Hydrogen Energy Industry" : Its highlight is the deep binding of technology conversion and industry cultivation, such as providing a 5% sales revenue reward to hydrogen equipment companies for three consecutive years, and phased rewards for whole vehicle assembly projects. This whole-chain support for "R&D - production - application" helps quickly establish a localized industry chain. 3. Notice on Further Clarifying the Responsibilities for Safety Management in the Hydrogen Energy Sector in Tieling City: It clarifies the subsidy standards for multiple scenarios. This stimulus policy package of "application scenarios + operational subsidies" can effectively reduce the end-user's costs. 4. Notice on Further Clarifying the Responsibilities for Safety Management in the Hydrogen Energy Sector in Tieling City: The policy clarifies for the first time that green hydrogen (hydrogen produced from renewable energy) is not managed as a hazardous chemical, allowing the construction of integrated hydrogen production and refueling stations outside chemical parks and simplifying the filing process. This "categorized supervision" model not only reduces the compliance costs for green hydrogen projects but also improves the approval efficiency through county-level filing management. Its significance lies in unleashing the potential of green hydrogen development through policy relaxation, especially aligning with the inherent advantages of Northeast China's abundant wind and solar power resources. (II) Foreign Policies European Commission: It issued a document titled "Methodology for Accounting Greenhouse Gas Emission Reductions from Low-Carbon Fuels," which clarifies for the first time the calculation formulas and certification standards for emission intensities of low-carbon fuels (excluding renewable carbon fuels), including low-carbon hydrogen.​​ European Union: Guided by the European Green Deal and the European Climate Law, the EU has introduced a series of carbon reduction policies. Among them, the FuelEU Maritime (FEU) regulation will be formally implemented in 2025, promoting the accelerated use of renewable fuels in the shipping industry. The Carbon Border Adjustment Mechanism (CBAM) will be implemented in 2026, imposing carbon taxes on specific imported goods. Germany: Through the National Hydrogen Strategy, Germany plans to achieve a green hydrogen production capacity of 5 GW by 2030. France: It updated the National Hydrogen Strategy. A support mechanism totaling 4 billion euros has been established to ensure the competitiveness of the low-carbon hydrogen market over the next 15 years. Adjustments include achieving a national electrolyzer installed capacity of 4.5 GW by 2030 and 8 GW by 2035; strengthening technological autonomy in the entire hydrogen industry chain; developing a low-carbon hydrogen transportation network; and ensuring the basic conditions for the development of the hydrogen energy industry. US: US President Trump signed the "Big and Beautiful" bill, which includes a two-year extension until 2028 for the commencement deadline of tax credit projects in the hydrogen energy industry. Hydrogen energy projects originally scheduled to commence before January 1, 2026, to qualify for a maximum tax credit of $3 per kg, are now extended to January 1, 2028. Policy Interpretation: 1. Fragmented Standards and Cost Challenges: The EU's "extraterritorial carbon governance" has sparked controversy: its accounting methodology excludes "renewable carbon fuels" (such as biomass-derived hydrogen), being accused of technological discrimination; the CBAM's retroactive accounting for indirect emissions (such as the carbon intensity of the power grid for electrolytic hydrogen) has led to the downgrading of a Moroccan PV hydrogen production project due to the grid's 15% coal power content. The more challenging issue is that the fluctuation of EU carbon prices (which surged to 110 euros/mt in 2023) directly impacts the cost of imported hydrogen, forcing countries like Algeria to demand long-term agreements with "carbon price linkage," a new type of trade clause that is reshaping global energy contracts. 2. Competition and Layout: China and the EU's stimulus policy package for decarbonization essentially uses standards as a weapon for industrial reshuffling. Germany's pipelines, France's electrolyzers, and US subsidies together form the "Three Kingdoms" of the hydrogen era. For China, it is necessary to accelerate compatibility with the EU's carbon footprint accounting and be vigilant against the transformation of "standard barriers" into "technological lock-in"—when the EU requires second-generation anti-hydrogen coating for hydrogen projects by 2027, the speed of technological iteration by domestic companies will determine their position in this global low-carbon competition. II. Corporate Dynamics: A Surge in Project Signings and Technological Collaborations (I) Project Intelligence Dunhuang Culture and Tourism Transportation Co., Ltd.: Dunhuang Culture and Tourism Transportation Co., Ltd. issued a tender for the procurement of hydrogen fuel cell buses. According to the tender announcement, Dunhuang Culture and Tourism Transportation Co., Ltd. plans to purchase 20 units of hydrogen fuel cell buses and provide corresponding supporting services. The budget amount is 30 million yuan, with a maximum limit of 30 million yuan. Hydrogen Capital (Inner Mongolia) Clean Energy Co., Ltd. : Hydrogen Capital (Inner Mongolia) Clean Energy Co., Ltd. received approval for its hydrogen refueling station. This hydrogen refueling station is located at No. 6 Dingxiang Road, Yingxin Street, Xincheng District, Hohhot City. The project unit is Hydrogen Capital (Inner Mongolia) Clean Energy Co., Ltd., with a total investment of 30 million yuan. The planned construction includes two dual-nozzle hydrogen dispensers (35Mpa/70Mpa), one set of compressors, two methanol dispensers, and two hydrogen storage tanks with a total volume of 1,000 kg. The total area of the project is 3 mu. The planned construction period is from Aug 2025 to Dec 2025. Wulate Zhongqi Baishun Trading Co., Ltd.: The change in the integrated vehicle oil, gas, and hydrogen refueling station in Sanggendalai Gacha, Bayinwulan Sum, Wulate Zhongqi, Inner Mongolia, has been approved. The project is located between K6538 736 meters and K6538 867 meters on G331, in Sanggendalai Gacha, Bayinwulan Sum, Wulate Zhongqi, Bayannur City. The project unit is Wulate Zhongqi Baishun Trading Co., Ltd., with a total investment of 20 million yuan. The project will be constructed in two phases. Phase one mainly includes the construction of offices, business rooms, rest areas, vehicle maintenance zones, and equipment rooms; it also includes the construction of canopies, oil and gas storage facilities, access roads, and parking lots, with a total building area of about 2,000 m². It will be equipped with one finished oil dispenser for vehicles and three LNG gas dispensers. Phase II involves the construction of hydrogen storage facilities and equipment, as well as the installation of two hydrogen refueling machines. Hydrogen Energy Operation Co., Ltd. (Foshan) of Headyson: Headyson Foshan and the South China New Energy Vehicle Industry Promotion Center in Foshan have continued their cooperation on the Nanhai "Hydrogen Vehicle Travel" hydrogen-powered passenger car promotion project. Headyson Foshan will rely on its Danzao hydrogen refueling station to provide professional hydrogen refueling equipment support and related ancillary services for the 49 70MPa hydrogen fuel cell vehicles promoted and operated by the center. (II) Corporate Updates Weichai Energy: Great Wall Motor's factory in Brazil has officially been completed and put into operation. At the event, hydrogen-powered heavy trucks equipped with Weichai Energy's core hydrogen power systems made their debut. This car model will collaborate with multiple renowned universities and institutions, including the University of São Paulo (USP) in Brazil, to officially conduct road tests and multi-scenario adaptability verification for hydrogen fuel cell trucks in the local area. Hefei Energy Research Institute and Shenzhen Haixu New Energy Co., Ltd.: The world's first demonstration ship powered by a pure ammonia fuel internal combustion engine, the "Anhui No. 1," jointly developed by the two entities, successfully completed its maiden voyage in the Chaohu Lake waters of Hefei, Anhui. This achievement opens up a new and feasible path for energy conservation, emission reduction, and green development in the shipping industry. Guochuang Hydrogen Energy: Sanitation vehicles equipped with Guochuang Hydrogen Energy's fuel cell engine system completed 30 days of uninterrupted operation in Jinpu New Area, Dalian, accumulating nearly 25,000 kilometers of cleaning mileage. This marks a stable operational phase for Dalian's hydrogen-powered sanitation equipment demonstration, laying a solid foundation for expanding the coverage of hydrogen energy vehicles in Dalian's sanitation operation scenarios. SENOHERS: SENOHERS' methanol reforming high-temperature membrane fuel cell cogeneration system has been selected for the "Beijing Energy Conservation Technology and Product Recommendation Catalog (2025 Edition)" under the category of new energy and renewable energy utilization technologies. This achievement signifies widespread recognition for methanol hydrogen energy cogeneration technology. Sinohytec and Pengfei Group: Sinohytec and Pengfei Group have signed a strategic cooperation agreement. The two parties will engage in in-depth cooperation on hydrogen fuel cell technology R&D and large-scale applications, promoting resource sharing and complementary advantages among all parties, driving the high-quality development of Lvliang's hydrogen energy industry, and jointly promoting Lvliang to become a "national hydrogen energy heavy truck manufacturing base." The first batch of signed procurements includes 100 hydrogen fuel cell heavy trucks and 250 hydrogen fuel cell logistics vehicles. Among them, the heavy trucks will be used for coking raw material transportation trunk lines, while the light trucks will serve the urban cold chain logistics network. Sinohytec will provide the core technology for the fuel cell system, and Pengfei Group will support the construction of hydrogen refueling station clusters and a digital operation platform to jointly verify the economy and reliability of hydrogen energy vehicles. Beijing Stock Exchange Group: Beijing Tianhai Hydrogen Equipment Co., Ltd. has launched an equity financing project, with the fundraising party located in Tongzhou District, Beijing; the intended amount of funds to be raised: no more than 300 million yuan; the corresponding shareholding ratio or number of shares for the intended funds: to be determined based on the best offer. China Northern Rare Earth Storage Company, Baogang Group : The first low-pressure solid-state hydrogen refueling demonstration station in Inner Mongolia has been completed. This demonstration station, independently designed and developed by China Northern Rare Earth Storage Company, can store 100 kg of hydrogen. The process equipment is simple, occupies a small area, and is easy to operate. It can be placed inside a container to achieve integrated skid-mounted integration, which is conducive to the application and commercial promotion of hydrogen energy. Trina Green Hydrogen: Its self-developed Tianqing series alkaline water electrolysis hydrogen production equipment (THDQ1000S/1.6) has successfully been included in the 2025 Jiangsu Province "Three Firsts and Two New" recognition list. Hubei Lvgzhi Hydrogen Energy Industry Innovation and Development Co., Ltd.: On August 18, Hubei Lvgzhi Hydrogen Energy Industry Innovation and Development Co., Ltd. was established with a registered capital of 1 billion yuan. The company is wholly owned by Hubei Optics Valley East Holding Group Co., Ltd. III. Technological Advancements: Breakthroughs in Efficiency and Cost (I) In the Production, Storage, and Transportation Sectors Shougang Group Co., Ltd.: Successfully developed a full series of hydrogen transmission pipeline steels (B/X42/X52/X60/X65MH), overcoming six key technical bottlenecks including hydrogen embrittlement damage and low-temperature toughness, forming a relatively complete matrix of hydrogen transmission pipeline steel products. CNPC Boshisun (Qinhuangdao) Steel Pipe Co., Ltd. : Successfully trial-produced various specifications of pure hydrogen transport "straight seam submerged arc welded pipe" (D610x12.7/14.3mm, material/X60MH). SPIC Central Research Institute: The hydrogen storage and transportation team of the Advanced Low-Carbon Institute has developed large-diameter (DN150), high-pressure (10MPa) non-metallic flexible hydrogen transmission pipelines, which have successfully achieved safe and stable operation for 30 days on the test platform. CNOOC Engineering Special Equipment Division : The design results of the "cryogenic liquid hydrogen storage tank" for the deep-sea floating platform, independently developed by the division, have received the Approval in Principle (AIP) certificate from the China Classification Society (CCS), indicating that the safety and reliability of the results fully comply with the classification society's regulatory requirements. Dalian Institute of Chemical Physics, Chinese Academy of Sciences: Breakthrough in Alkaline Electrolyzer Membrane Technology: Developed ultra-thin (20μm) composite separators, increasing the efficiency of the electrolysis system to 85% (LHV) and extending its lifespan beyond 60,000 hours. (II) Fuel Cell Innovation Liaoning General Aviation Academy: The team led by Academician Yang Fengtian at the Liaoning General Aviation Academy of Shenyang Aerospace University successfully completed the maiden flight of China's first four-seat hybrid electric aircraft, the RX4M, at the Faku Caihu Airport in Shenyang, contributing a "Chinese solution" to the global development of electric aircraft. Oriental Hydrogen: Achieved a patent for a system that increases the humidity of air entering the stack in the field of fuel cell technology. Georgia Power: The second experiment with a hydrogen-natural gas blend on the M501GAC type natural gas turbine, in collaboration with Mitsubishi Power, has been successfully completed under both partial and full load conditions. US Hydrogen Association (DoE) Leads Formation of "Hydrogen Refueling Station Compatibility Alliance": To unify the 70MPa hydrogen refueling nozzle interface standards, eliminating barriers in hydrogen refueling protocols among automakers such as Toyota, Hyundai, and Nikola, and promoting the interoperability of the hydrogen refueling network.

Affected by the significant year-on-year increase in China Northern Rare Earth's H1 performance, its share price surged by the daily limit on July 10, closing at a 10.02% increase, with the share price at 27.01 yuan per share. On the news front: China Northern Rare Earth announced on the evening of July 9 that, based on preliminary calculations by the company's finance department, it is expected to achieve a net profit attributable to owners of the parent company of 900 million to 960 million yuan for the first half of 2025, representing an increase of 855 million to 915 million yuan compared to the same period last year (legally disclosed data), up 1882.54% to 2014.71% YoY . It is expected to achieve a net profit attributable to owners of the parent company, excluding non-recurring gains and losses, of 880 million to 940 million yuan for the first half of 2025, representing an increase of 865 million to 925 million yuan compared to the same period last year (legally disclosed data), up 5538.33% to 5922.76% YoY. Regarding the main reasons for the significant year-on-year increase in performance for this period, China Northern Rare Earth stated: In the first half of 2025, facing a complex development environment, the company seized the favorable conditions of market stabilization and improvement, actively responded to the impact of uncertain and unstable factors such as the Sino-US trade conflict, adhered to strategic planning, anchored the annual production and operation task targets, overcame difficulties, forged ahead, comprehensively implemented the new development concept, accelerated the construction of a new development pattern, and effectively assumed the responsibility of being the main force in the construction of the "two rare earth bases". It strengthened comprehensive budget management, deepened cost reduction, quality improvement, and efficiency enhancement, scientifically coordinated production scheduling, strengthened market research and forecasting, intensified marketing operations, accelerated the construction of key projects, promoted scientific research and management innovation, strengthened performance appraisal incentives and constraints, fully utilized the stable domestic market demand pattern and advantages, implemented coordinated strategies and efforts in all aspects of production and operation management, strengthened strengths, addressed weaknesses, improved quality, and promoted development, laying a solid foundation and providing strong support for the significant year-on-year increase in the company's H1 operating performance, and continuously leading the industry's sustainable and high-quality development with new achievements in high-quality development. In terms of production and marketing, the company strengthened production system management, promoted production line linkage and process upgrades among its affiliated smelting and separation enterprises, further improved production line operating efficiency, continuously optimized raw material and product structures, and met the market demand for high-value-added products with special, customized, and characteristic features. It deepened horizontal and vertical benchmarking improvements, further reducing the costs of smelting and separation and rare earth metal processing. It fully ensured the supply of raw material products, guided by market demand, deepened marketing model innovation, strengthened marketing operations, and achieved varying degrees of year-on-year growth in the production and sales volumes of its main products, including smelting and separation, rare earth metals, rare earth functional materials, and permanent magnet motors. In terms of key project construction, we have comprehensively consolidated our scale advantages and accelerated the progress of key projects. The first phase of the new-generation rare earth green mining, beneficiation, and smelting upgrade and transformation project has entered the final stage of production line linkage debugging, while the second phase's process design and other work are progressing in an orderly manner. Capital operation projects aimed at extending, supplementing, and strengthening the industry chain, such as mergers, acquisitions, restructuring, joint ventures, and cooperation, are advancing efficiently and steadily. In terms of R&D and innovation, we have continued to strengthen our scientific research strengths, achieving fruitful results in technological innovation. We have formulated a reform plan for scientific and technological innovation, identifying six reform directions and proposing 23 reform tasks centered around optimizing the scientific research management system. We have strengthened the construction of industrial transformation centers, continuously improving the conversion rate of scientific research achievements. We have fully leveraged the advantages of our scientific research platforms, achieving new breakthroughs in new product R&D. In terms of deepening reform and governance improvement, we have advanced the reform of state-owned enterprises, consolidated and improved the modern governance system, strengthened performance appraisals across various dimensions and levels, optimized the "stretch goal mechanism," and introduced "basic targets," "aspirational targets," and "excellence targets," fully mobilizing the enthusiasm of all employees and consolidating a strong atmosphere of entrepreneurship. ESG, compliance, and market value management have been advanced synergistically, with multiple achievements. ESG ratings have been upgraded by mainstream institutions such as the China Securities Index Co., Ltd. The construction and operation of the compliance system have been increasingly refined, with compliance continuously driving high-quality development. Multiple measures have been taken in market value management, with synergistic efforts resulting in a 17.34% increase in market value in H1, maintaining the company's position as the publicly listed firm with the largest market value in the rare earth permanent magnets industry. Relying on its industry status, influence, and market value scale, the company's stock was selected for the first time as a constituent stock of the CSI A50 Index, further enhancing the company's visibility in the capital market and its investment appeal. Previously, when asked about the company's expectations for future rare earth prices, China Northern Rare Earth responded in the investor relations activity record table announced on June 24: Since the first quarter of 2025, influenced by policies such as the tightening of upstream raw material supply and the stimulation of downstream consumption, the overall activity of the rare earth market has been better than that of the same period last year, which has also supported the company's performance in the first quarter. The company has seized the favorable market opportunities, comprehensively improved production line operational efficiency, continuously optimized raw material and product structures, expanded markets in multiple ways, and advanced reforms in depth, achieving record-high production and sales volumes. After entering April-May, rare earth prices experienced a brief pullback due to the international environment. However, as national policies have gradually become clearer, the attention paid to the rare earth industry has also risen, driving up product prices. Currently, the orders of the company's subsidiary, Inner Mongolia Northern Rare Earth Magnetic Materials Co., Ltd., are relatively full, and the company holds an optimistic view on the future trend of rare earth prices. Additionally, according to Cailian Press, Wu Yonggang, the board secretary of China Northern Rare Earth, stated at the 2025 Q1 earnings presentation held earlier that the company's light rare earth export licenses are being processed normally, with normal exports; the export licenses for medium-heavy rare earth dual-use items have been submitted to the Department of Commerce of the Inner Mongolia Autonomous Region for approval. The company's main export products include Pr-Nd, lanthanum-cerium, gadolinium oxide, terbium oxide, yttrium oxide, etc., mainly exported to Japan, the US, Germany, and other places. It is expected that this year's export volume will be comparable to last year's export level. The proportion of the company's export revenue in its total revenue is very small. Furthermore, the company's green smelting upgrading and transformation project, as the world's largest and most complete rare earth smelting and separation project, has entered the stage of full completion and operation for its first phase, and the second phase is planned to commence construction in the second half of 2025. 》Click to view SMM rare earth spot prices 》Subscribe to view historical SMM metal spot price trends Reviewing the price trend of SMM Pr-Nd oxide in the first half of this year, it can be seen that the average price of Pr-Nd oxide on June 30 was 444,500 yuan/mt, compared to the average price of 398,000 yuan/mt on December 31, 2024, showing an increase of 11.68% in the first half of this year. Comparing the daily average price of Pr-Nd oxide in the first half of 2025 (430,952.99 yuan/mt) with that in the first half of 2024 (381,350.43 yuan/mt), it can be seen that the daily average price in the first half of this year increased by 13.01% YoY. The rare earth market was driven by multiple positive news at the end of last year, akin to being injected with a strong stimulant, causing rare earth prices to rise rapidly. Especially before the Chinese New Year, the price of Pr-Nd oxide once surged to 415,000 yuan/mt, showing an increase of approximately 4.3% compared to the New Year's Day period. The festive atmosphere of the Chinese New Year seemed to have infected the rare earth market, with the bullish sentiment remaining high after the holiday. The procurement demand from downstream also showed great activity, and this robust demand further boosted the surge in rare earth prices. However, since the end of February, with the resumption of work by magnetic material enterprises, the number of new orders did not meet expectations, causing rare earth prices to experience a slight pullback, as if injecting a touch of calm into the overheated market. The rare earth market in March appeared somewhat mediocre. Without the intervention of new influencing factors, rare earth prices only fluctuated within a relatively small range, showing a fluctuating rangebound trend. By April, rare earth prices dropped rapidly, and the market seemed to enter a brief cooling-off period. However, by the end of April, with the procurement and restocking behavior of major customers and the delivery of long-term agreement orders, rare earth prices were boosted again, showing an upward trend. In May, with the superposition of various factors, rare earth prices generally continued their upward trend, and the market also showed a certain level of activity. However, in June, rare earth prices began to stabilize, with no significant fluctuations occurring. This was due to a weak supply-demand balance in the market, where a stalemate between upstream and downstream players made it difficult for prices to experience major changes. According to SMM quotations, the average price of Pr-Nd oxide on July 10 was 453,500 yuan/mt, down 500 yuan/mt (0.11%) from the previous trading day. Since early July, Pr-Nd oxide prices showed consecutive increases from July 3 to July 8, primarily driven by the following factors: Supply side, market concerns about oxide production cuts intensified due to temporary shutdown expectations at some rare earth enterprises amid news-driven sentiment, while the rainy season in Southeast Asia is expected to reduce imports of ion-adsorption ore. Demand side, frequent tenders by major magnetic material manufacturers significantly boosted market confidence, with most industry participants holding optimistic expectations for warming downstream demand. Regarding the rare earth market outlook, consensus has formed based on supply-demand dynamics: the expectation of tightening Pr-Nd oxide fundamentals in the short term has been established. This shift provides solid support for Pr-Nd oxide prices. Meanwhile, as the traditional off-season for NdFeB approaches its end, the impending September-October peak season will further strengthen market expectations. The industry widely believes Pr-Nd prices will maintain their upward trajectory in the coming period. Guosen Securities previously noted in its research report on China Northern Rare Earth: the company adjusted its product mix, achieving high YoY growth in magnetic material production. The Bayan Obo mine owned by Baogang Group is China's largest rare earth deposit with unique characteristics—a super-large polymetallic complex ore containing rare earths, iron, niobium, and thorium, accounting for over 80% of national reserves with stable resource supply. In 2024, the company obtained a total mining quota of 188,700 mt (+5.6% YoY), maintaining a 69.9% share of national quotas, virtually unchanged from 2023. Production-wise, the company's total smelting and separation output (rare earth oxides + salts + metals) reached 177,700 mt (+1.63% YoY) in 2024, while magnetic material production hit 58,800 mt (+17.72% YoY) through equipment upgrades. In 2025Q1, smelting and separation output totaled 55,200 mt (+12.80% YoY), with magnetic material production at 16,400 mt (+40.88% YoY). Since 2024Q3, the company has strengthened its cost advantages. Structurally, China Northern Rare Earth doesn't engage in mining, sourcing raw materials by purchasing rare earth concentrate from Bao Gang United Steel. Since 2022Q4, the company has signed quarterly Rare Earth Concentrate Supply Contracts with Bao Gang United Steel, setting prices and transaction volumes through negotiated calculations based on market price fluctuations. In Q1 2024, the transaction price of rare earth concentrate was RMB 20,700 yuan/mt (excluding tax), while market prices pulled back significantly during this period. Due to the existence of a price adjustment cycle, the company faced significant cost pressure on raw materials. In Q3 2024, the company's purchase price was 17.21% lower than the average market price. In Q2 2025, the company's purchase price was adjusted to RMB 18,800 yuan/mt (excluding tax), which was 14.45% lower than the current average market price of RMB 22,000 yuan/mt, maintaining cost advantages. Risk warnings: The growth in demand for magnetic materials falls short of expectations; volatile rare earth prices; significant increase in concentrate prices; the growth rate of the company's mining quotas falls short of expectations.