Highlights

• Northern Rare Earth Group issues a ¥0.035 per share dividend for 2024, totaling ¥126.53 million.
• The company is China's largest light rare earth producer.
• It is critical to global technology and defense industries.
• Its strategic importance lies in upstream resource control and the role in China's rare earth dominance strategy.

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Northern Rare Earth Group High-Tech Co., Ltd. (600111.SH) or (Northern China Rare Earth) has officially announced (opens in a new tab) the implementation of its 2024 annual equity distribution, issuing a cash dividend of RMB ¥0.035 per share (pre-tax) based on a total outstanding share count of 3.615 billion shares. The total payout amounts to RMB ¥126.53 million.

Northern China Rare Earth is China’s flagship rare earth enterprise and the world’s largest producer of light rare earths—the backbone of neodymium-iron-boron (NdFeB) magnet production, essential for electric vehicles, wind turbines, smartphones, and advanced weapons systems. As the industrial arm of China’s rare earth dominance strategy, Northern Rare Earth controls vast upstream resources in Inner Mongolia and operates under strict state coordination, supplying feedstock to China’s tightly integrated midstream and downstream processors. Its scale, pricing power, and government backing make it a central node in China’s rare earth leverage over the West—a strategic chokepoint that no serious investor, manufacturer, or policymaker can afford to ignore.

Key Dividend Details

• Record Date: June 19, 2025
  

  Ex-Dividend/Payment Date: June 20, 2025* Per Share Dividend: ¥0.035 (gross); ¥0.0315 net for foreign and Hong Kong investors (10% withholding)

Dividends will be distributed through the Shanghai Clearinghouse, except for shares held by Jiaxin Co., Ltd., which will be paid directly by the company. Investors who have not registered designated trades with the Shanghai Stock Exchange will have their dividends held until registration is complete.

Tax Treatment:

• Domestic individual investors receive the full amount for now, with taxes deferred and calculated based on holding period (20%, 10%, or exempt for long-term holders).
• Foreign institutional investors (QFIIs) and Hong Kong Stock Connect holders will receive net dividends after a 10% withholding tax.
• Domestic legal entities and institutional shareholders are responsible for handling their own tax filings, as they receive gross dividends.

REEx Analysis

While this dividend may offer modest returns to shareholders, Northern China Rare Earth's real value lies not in passive income but in its strategic role in China’s vertically integrated rare earth supply chain. The dividend confirms the company's financial stability, but investors should note its lack of direct downstream magnet production—a critical link in value creation.

In today’s geopolitically fraught rare earth market, processing and advanced materials capacity—not just mining—defines long-term resilience and profit potential.

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