HK Stock Market Move | Rare-Earth Metals Co. (06680) fell more than 6%. The company expects its annual net profit to decrease by 42%-52% year-on-year.

Jl Mag Rare-Earth (06680) fell by more than 6%, as of the time of writing, it dropped by 6.14% to HK$8.1, with a turnover of HK$20.079 million. In terms of news, Jl Mag Rare-Earth announced that the net profit attributable to shareholders of the company for the fiscal year ending on December 31, 2024 is expected to be approximately RMB 271 million to 327 million, a year-on-year decrease of 42%-52%. The company stated that due to the significant year-on-year decrease in the prices of rare earth raw materials, the change in raw material costs lagged behind, combined with intensified industry competition and other unfavorable factors, resulted in a decrease in the company's net profit. In addition, in 2024, the company's Ningbo factory and the second phase of the Baotou factory project have increased personnel reserves, pre-job training, and auxiliary material investment, making a lot of preparations for production, leading to a phased increase in product organization costs and management expenses of the subsidiaries mentioned above, which had a certain impact on net profit. On the same day, Jl Mag Rare-Earth issued a notice stating that, in response to market demand and the company's own business development needs, it plans to invest in the construction of the "Annual Output of 20,000 Tons of High-performance Rare Earth Permanent Magnet Materials Green Intelligent Manufacturing Project" through its wholly-owned subsidiary Jinli Baotou Company on the basis of completing 40,000 tons of high-performance rare earth permanent magnet materials production capacity in 2025. The total planned investment for the project is 1.05 billion RMB, with a construction period of 2 years, and will use Jinli Baotou Company's own and self-raised funds.