Gelonghui, April 28 | Guangsheng Nonferrous Metals (600259.SH) announced that its holding subsidiary Longnan Heli Rare Earth Smelting Co., Ltd. recently received a “Notice of Order to Discontinue Production” from the Longnan Municipal People's Government of Jiangxi Province. Due to Heli's small production capacity, verified by the industry and information departments of Jiangxi Province and Ganzhou City, it is part of the “Industrial Structure Adjustment Guidance Catalogue” (2024 edition) phasing out rare earth separation project. Heli Company was ordered to immediately stop production and accept social supervision from the date of receipt of the notice. Production can only be resumed after the rectification is completed and approved by the industrial and information departments of Jiangxi Province, Ganzhou City, and Longnan City.
Heli Company is the holding company holding 50% of the company's shares. The operating income in 2023 was 260.1911 million yuan, accounting for 1.25% of the company's operating income; net profit attributable to shareholders of the listed company was 144.11,300 yuan based on the equity ratio, accounting for 7.09% of the net profit attributable to shareholders of the listed company in the last year. Overall, the discontinuation of production by Heli has no significant adverse impact on the company's future revenue and profits.