Jinlong Rare Earth (full name: Fujian Jinlong Rare Earth Co., Ltd.) commenced its IPO guidance process with the Fujian Regulatory Bureau on February 3, 2026, targeting a listing on the Beijing Stock Exchange. Huatai United Securities is serving as the guidance institution.

This represents another rare earth permanent magnet company seeking a public listing in the A-share market. Key points of interest regarding Jinlong Rare Earth include whether the company possesses its own rare earth resources, the status of its financial data, and its ranking within the industry.

As a subsidiary of Xiamen Tungsten Co.,Ltd., Jinlong Rare Earth had already submitted its Public Transfer Prospectus (similar to an A-share IPO prospectus) on the National Equities Exchange and Quotations (NEEQ) in October 2024, successfully listing on February 28, 2025. According to the prospectus released in January 2025, the company was founded in 2000 and was initially held by two individuals, Zhang Yourong and Zhou Youhua. In 2007, Xiamen Tungsten Co.,Ltd. acquired all equity, making it a subsidiary, and many of its current senior executives have backgrounds at Xiamen Tungsten Co.,Ltd.

Following several equity changes, as of January 2025, the controlling shareholder of Jinlong Rare Earth is Xiamen Tungsten Co.,Ltd., holding 65.20% of the shares, with the ultimate controller being the State-owned Assets Supervision and Administration Commission of Fujian Province.

In December 2025, Jinlong Rare Earth conducted a private placement, attracting 16 investors. Besides continued participation from Xiamen Tungsten Co.,Ltd., companies including China Northern Rare Earth and BYD Co., Ltd. also took stakes. The placement price was 1.5 yuan per share, raising a total of 40 million yuan, resulting in an overall valuation of approximately 3.7 billion yuan. The funds were solely intended to supplement working capital. The relatively small fundraising amount and lack of specific investment projects suggest the primary motive was likely to attract strategic investors rather than an urgent need for capital, which could have been addressed through bank loans.

Jinlong Rare Earth does not possess its own rare earth mines, a fact not indicated in its public transfer prospectus or annual reports. Notably, even its controlling shareholder, Xiamen Tungsten Co.,Ltd., has minimal rare earth resources, primarily involving Longyan City Rare Earth Development Co., Ltd. and a joint venture in Laos established with Chifeng Jilong Gold Mining Co., Ltd. Therefore, while Jinlong Rare Earth itself has no mines, related parties do hold such resources. A key aspect was its procurement of rare earth ore from the related party Longyan City Rare Earth Development Co., Ltd., amounting to 260 million yuan in 2022 and 165 million yuan in 2023. Longyan City Rare Earth Development Co., Ltd. was formerly under Xiamen Tungsten Co.,Ltd. and is now part of China Rare Earth Group. This procurement relationship was reflected in the 2023 report as purchases from Fujian Metallurgy (the controlling shareholder of Xiamen Tungsten Co.,Ltd.).

However, from 2024 onwards, the company ceased purchasing rare earths from related parties and instead sourced from third parties such as China Northern Rare Earth Group, China Rare Earth Group, and Shenghe Resources.

The lack of rare earth mine resources is a disadvantage for Jinlong Rare Earth, as this is a high-value segment. Previously, the company primarily sourced and smelted rare earth ore from nearby regions like Fujian and Jiangxi. The cessation of ore procurement after 2024 stemmed from a significant shift in the company's business focus.

At the end of 2023, aligning with national strategic plans for the rare earth industry, Jinlong Rare Earth transferred its rare earth raw ore smelting and separation business to Zhongxi Jinlong (in which it holds a 49% stake, while China Rare Earth Group holds 51%). Consequently, the company no longer engages in rare earth raw ore smelting and separation, focusing exclusively on high-purity rare earth oxides and their deep processing.

Correspondingly, from January to April 2024, the company purchased 159 million yuan worth of products from Zhongxi Jinlong.

Thus, Jinlong Rare Earth's operations are now concentrated solely on downstream rare earth materials manufacturing. This includes four categories: rare earth oxides, rare earth metals, magnetic materials, and luminescent materials. The production chain follows the sequences "rare earth oxides → rare earth metals → magnetic materials" and "rare earth oxides → luminescent materials." The majority of the company's revenue is generated from the "rare earth oxides → rare earth metals → magnetic materials" chain, primarily from rare earth metals and magnetic materials, with luminescent materials contributing a smaller share.

Overall, the company's gross and net profit margins are relatively low. In the first half of 2025, the gross profit margin was only 10.5%, and the adjusted net profit margin was 4.2%.

In the first half of 2025, Jinlong Rare Earth reported operating revenue of 2.72 billion yuan, a year-on-year increase of 34%, and an adjusted net profit of 110 million yuan, surging 110% compared to the same period last year.

Based on operating revenue, Jinlong Rare Earth ranks among the top four companies in the A-share rare earth permanent magnet industry.

In terms of adjusted net profit attributable to the parent company, it ranks among the top three in the same sector.

Regarding the competitive landscape, Jinlong Rare Earth is a comprehensively competitive rare earth enterprise within China, characterized by a high proportion of deep processing and a relatively complete industrial chain. It is considered the leading rare earth industry player in Fujian Province, with customers covering well-known domestic and international companies such as BYD Co., Ltd., Midea, CRRC, and Siemens.

However, gaps exist compared to industry leaders: (1) The business scale for rare earth oxides and rare earth metals is smaller than leading domestic enterprises like China Northern Rare Earth and China Rare Earth Group. (2) The business scale for rare earth permanent magnet materials is smaller than leading domestic and international enterprises such as Zhongke Sanhuan, Zhenghai Magnetic Material, JL MAG Rare-Earth, and Shin-Etsu Chemical.

Based on disclosed 2025 performance forecasts from listed companies, high growth appears to be a common trend across the industry.

The high industry景气度 (prosperity) is primarily driven by two factors: (1) As a strategic resource, rare earth supply in 2025 faces triple constraints from policy regulation, import contraction, and capacity limitations, widening the supply-demand gap and directly pushing up prices for rare earth raw materials and magnetic products. (2) Application scenarios (new energy vehicles, wind power) continue to experience strong growth, coupled with new incremental opportunities emerging from sectors like humanoid robots and the low-altitude economy, directly driving demand for high-performance NdFeB magnets in a pattern of increasing both volume and price.

Unsurprisingly, Jinlong Rare Earth's 2025 performance is also expected to show high year-on-year growth, with its first-half adjusted net profit already surging 110%.

Although Jinlong Rare Earth lacks its own rare earth mine resources and has divested its smelting and separation business, it focuses on the core segments of high-purity rare earth oxides and deep processing. It has established a clear and complete deep-processing industrial chain: "Deep Processing of Rare Earth Oxides → Rare Earth Metal Alloys & Targets → Rare Earth Luminescent Materials → Magnetic Materials → Secondary Resource Recycling."

As a rare earth permanent magnet leader controlled by Xiamen Tungsten Co.,Ltd. and with strategic investment from BYD Co., Ltd., Jinlong Rare Earth has capitalized on the industry's tight supply-demand balance. In the first half of 2025, its revenue grew 34% year-on-year, and its adjusted net profit attributable to the parent company surged 110%, securing its position within the top four for revenue and top three for net profit in the A-share rare earth permanent magnet sector.

The initiation of the IPO guidance process for the Beijing Stock Exchange marks a significant step for the company to leverage capital markets for capacity expansion and technological enhancement. It is also expected to further complete the industrial layout of the A-share rare earth permanent magnet sector, positioning the company to continue benefiting from the current high-growth industry cycle.