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SCMP Reporter

Yixing Xinwei, a maker of rare-earth products and fire-resistant materials, posted a 30.91 per cent gain in net profit to HK$81.16 million last year.

 Chairman Jiang Quanlong attributed the growth to a 30 per cent rise in the prices of rare-earth products, which are widely used in car parts, computer monitors, computer electronic motors, and magnetic memory chips.

 The company sold more than 90 per cent of its output of fire-resistant materials to major mainland steel mills.

 Mr Jiang said the company's profit margin had increased to 36 per cent from 28 per cent due to increased production efficiency.

 Last year, Growth Enterprise Market-listed Yixing spent $30 million to enhance its rare-earth product manufacturing facilities, which will raise capacity by 40 per cent from next month.

 The company also invested $8 million to expand its production capacity for fire-resistant materials by 100 per cent.

 Yixing will spend $100 million on two new plants this year to further expand production capacity for both product types.

 Mr Jiang said his company was in talks to buy a rare-earth ore mine in Liaoning province to ensure supply of raw materials for fire-resistant materials production.

 International demand for rare-earth products had grown at more than 10 per cent annually for the past several years and the trend would be maintained this year, he said.

 Yixing, which has proposed changing its name to China Rare Earth Holdings, exported 60 per cent of its rare-earth products and 8 per cent of its fire-resistant materials last year.

 Turnover grew by 7 per cent to HK$447.84 million. Earnings per share were 16.8 cents.

 A final dividend of two cents will be paid.



Increase in value of rare-earth products boosts Yixing Xinwei