China Rare Earth Holdings Limited released its 27 March 2026 quarterly update, detailing persistent obstacles to the lifting of its share-trading suspension on the Hong Kong Stock Exchange (in place since 18 June 2025).

The group’s rare-earth and refractory material subsidiaries in the PRC generated more than 90% of 2024 revenue but are now the focal point of multiple risks: • Each subsidiary is entangled in at least 45 lawsuits and nine enforcement cases. • YXL Rare Earth and YXL Refractory Materials owe judgment debts to PRC banks and corporates. • Undisclosed bank borrowings appear inconsistent with the “cash-rich” position reflected in FY 2023–2024 audited accounts, suggesting possible false statements. • Ongoing enforcement actions indicate an absence of enforceable assets and potential fund misappropriation by management. • Operations of the key subsidiaries are minimal or possibly suspended.

The board and audit committee have been unable to secure the subsidiaries’ books and records despite repeated demands on former executives and on-site personnel. Legal representative changes are under way to retrieve documentation, while independent PRC legal advisers continue due-diligence investigations into the lawsuits.

Forensic review status: (A) Acquisition probe – report finalised and disclosed on 8 December 2025. (B) Subsidiary asset-misappropriation probe – first draft delivered; second draft expected by end-April 2026.

China Rare Earth is simultaneously negotiating with potential partners across the rare-earth value chain to rebuild operations and satisfy Hong Kong Stock Exchange resumption conditions. Management will publish further updates as the investigation and resumption plan progress.

Trading in China Rare Earth shares will remain suspended until all resumption guidance is met and full Listing Rules compliance is demonstrated. Shareholders and investors are urged to exercise caution when dealing in the company’s securities.