Northern Rare Earth: Plans to jointly establish a new company with an investment of 112 million yuan to build a production line.

Northern Rare Earth announced that the board of directors approved, on March 13, the establishment of Northern Fune New Materials Co., Ltd. in joint venture with Ningbo Fune, with the company holding a 51% stake and investing 112 million yuan with its own funds. The new company will build a project for an annual production of 10,000 tons of rare earth metal alloy, with a total investment of 290 million yuan, expecting an annual revenue of 1.366 billion yuan and a net profit of 25 million yuan. This investment may enhance the company's competitive edge, but the profitability of the new company carries certain risks and still needs to be reviewed through antitrust scrutiny.