On November 21st, China Northern Rare Earth (600111.SH) announced that in order to support the creation of a world-class leader in the rare earth industry, in accordance with the overall strategic deployment and general requirements of the company's controlling shareholder, Inner Mongolia Baotou Steel Union Energy System, the company plans to contribute physical assets and cash to jointly establish Inner Mongolia Baotou Xin Energy Co., Ltd. (tentative name, subject to industrial and commercial registration for the final name), with Baotou (Group) Company and Baotou (Group) Company's holding subsidiary Baotou Steel Co., Ltd., to promote the implementation of energy system integration.

The company's planned contribution of physical assets in this round includes the assets of the company's Metallurgical Branch's Substation No.66 (assessed value of 10.9701 million yuan), and the 110kV substation assets in the green metallurgical upgrade and renovation project undertaken by the company's wholly-owned subsidiary Huamei Company (the assets are currently under construction, with a preliminary estimated value of 130.2771 million yuan based on the project budget). At the same time, the company plans to contribute 21.4617 million yuan in cash, with a total of 162.7089 million yuan from the contributions of physical assets and cash. The registered capital of the new company is 3254.1779 million yuan, with Baotou (Group) Company holding a 48.98% stake as the controlling shareholder of the new company, Baotou Steel Co., Ltd. holding a 46.02% stake, and the company holding a 5% stake.