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China Rare Earth Holdings Limited (HK:0769)
:0769
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China Rare Earth Holdings (0769) AI Stock Analysis

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HK:0769

China Rare Earth Holdings

(0769)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
HK$0.50
▼(-28.57% Downside)
The overall stock score reflects significant financial performance challenges, including declining revenues and persistent losses, which are the primary concerns. Technical analysis shows positive momentum, providing some optimism. However, the poor valuation metrics, highlighted by a negative P/E ratio, emphasize financial distress, limiting the attractiveness of the stock.

China Rare Earth Holdings (0769) vs. iShares MSCI Hong Kong ETF (EWH)

China Rare Earth Holdings Business Overview & Revenue Model

Company DescriptionChina Rare Earth Holdings Limited (0769) is a leading company in the rare earth industry, primarily engaged in the exploration, mining, and processing of rare earth minerals. The company operates in the rare earth sector, which is critical for various high-tech applications, including electronics, renewable energy, and defense. With its strategic operations in China, the company focuses on extracting and refining rare earth elements that are essential for manufacturing magnets, batteries, and other advanced materials.
How the Company Makes MoneyChina Rare Earth Holdings generates revenue through the sale of processed rare earth materials, which are used in a variety of industries, including electronics, automotive, and green technology. The company's revenue model is largely based on the pricing of rare earth elements in the global market, which can fluctuate based on demand and supply dynamics. Key revenue streams include the direct sales of rare earth oxides and alloys to manufacturers and industrial clients. Additionally, the company may enter into strategic partnerships with technology firms and manufacturers to secure long-term supply contracts, which can contribute to stable revenue flows. The company's earnings are also influenced by its operational efficiency and cost management practices in mining and processing rare earth minerals.

China Rare Earth Holdings Financial Statement Overview

Summary
China Rare Earth Holdings faces significant challenges with declining revenues and persistent losses affecting profitability and cash flow. Despite a strong equity base and low leverage, the company needs to address its operational inefficiencies to return to profitability. The current trajectory suggests financial instability unless corrective measures are implemented.
Income Statement
35
Negative
The company's income statement reveals declining revenues alongside persistent net losses, indicating negative revenue growth. Gross profit margin and net profit margin are negative, reflecting ongoing operational challenges. EBIT and EBITDA margins also remain negative, signaling inefficiencies in cost management and a weak profit structure.
Balance Sheet
50
Neutral
The balance sheet shows a strong equity base with a high equity ratio, indicating financial stability. However, the return on equity is negative due to net losses. The debt-to-equity ratio is low, suggesting low leverage and minimal financial risk. Nonetheless, persistent losses may erode equity value over time.
Cash Flow
40
Negative
The cash flow statement highlights a significant decline in operating cash flow, with free cash flow fluctuating and recently turning negative. The operating cash flow to net income ratio is not meaningful due to negative net income, and free cash flow has not shown consistent growth, indicating cash flow management issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue756.66M686.07M810.41M1.21B1.11B
Gross Profit-52.99M-151.31M1.12M85.98M75.83M
EBITDA-54.20M-175.96M-353.35M56.73M47.81M
Net Income-104.92M-200.54M-373.30M24.27M19.71M
Balance Sheet
Total Assets2.00B2.15B2.41B3.05B2.93B
Cash, Cash Equivalents and Short-Term Investments965.95M1.30B1.45B1.82B1.74B
Total Debt664.00K1.02M1.39M1.74M3.35M
Total Liabilities107.22M109.55M133.19M156.76M147.94M
Stockholders Equity1.92B2.06B2.29B2.88B2.78B
Cash Flow
Free Cash Flow-312.75M-169.79M-232.80M30.39M152.02M
Operating Cash Flow-312.75M-169.78M-225.84M120.59M157.12M
Investing Cash Flow2.54M35.60M-5.93M-89.77M11.73M
Financing Cash Flow-443.00K-680.00K-432.00K-949.00K-1.38M

China Rare Earth Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.70
Price Trends
50DMA
0.70
Negative
100DMA
0.70
Negative
200DMA
0.56
Positive
Market Momentum
MACD
<0.01
Positive
RSI
64.21
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0769, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.70, and above the 200-day MA of 0.56, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0769.

China Rare Earth Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$31.93B11.3324.57%1.77%60.77%100.45%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
$1.95B-15.6310.29%47.66%
53
Neutral
HK$1.08B-4702.63%0.41%83.35%
49
Neutral
HK$272.98M-1.34-23.14%-27.07%47.86%
45
Neutral
€52.74M-0.13-13.76%-1.08%
45
Neutral
HK$403.93M-1.19-41.19%-6.51%41.00%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0769
China Rare Earth Holdings
0.70
0.21
44.33%
HK:0601
Rare Earth Magnesium Technology Group Holdings Ltd.
0.09
-0.11
-54.12%
HK:1370
Aowei Holding Limited
0.26
-0.25
-49.00%
HK:2245
Lygend Resources & Technology Co., Ltd. Class H
22.38
14.43
181.51%
HK:0433
North Mining Shares Co., Ltd.
0.07
0.04
146.43%
HK:6128
Graphex Group Limited
0.30
0.08
36.36%

China Rare Earth Holdings Corporate Events

China Rare Earth Holdings Faces Operational and Legal Challenges Amidst Trading Suspension
Sep 30, 2025

China Rare Earth Holdings Limited has provided a supplemental announcement regarding its ongoing resumption progress, litigation updates, and continued suspension of trading. The company is dealing with allegations of misappropriation of assets by former management, which has led to minimal or suspended operations of its subsidiaries. The current board is actively working to retrieve necessary documents and records, facing challenges in accessing them. The company is also in the process of changing legal representatives to facilitate this retrieval and has discovered information on several lawsuits against its subsidiaries.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Faces Legal and Operational Challenges Amid Trading Suspension
Sep 17, 2025

China Rare Earth Holdings Limited is facing significant challenges, including numerous lawsuits and enforcement cases involving its subsidiaries, as well as potential asset misappropriation risks. The company is unable to ascertain the actual business operations of its subsidiaries but is working towards resuming manufacturing and sales by establishing a new subsidiary. Efforts are ongoing to formulate a viable proposal for the resumption of trading in its shares.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Announces Board Roles and Functions
Sep 12, 2025

China Rare Earth Holdings Limited has announced the roles and functions of its board members, highlighting the leadership structure within the company. Ms. Guo Jinying serves as the executive director and acting chairman, responsible for financial strategic planning. The announcement clarifies the responsibilities of independent non-executive directors, which include chairing various committees, thereby strengthening the company’s governance framework.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Announces Board Changes and Strategic Appointments
Sep 12, 2025

China Rare Earth Holdings Limited has announced a change in its board of directors, with Mr. Kang Shuaijie resigning to focus on other business commitments and Mr. Ma Siu Kit being appointed as the new independent non-executive director. This change is accompanied by Mr. Ma’s appointment to several key committees within the company, indicating a strategic move to strengthen governance and oversight. Mr. Ma brings over 20 years of experience in accounting and has held various directorships, which could enhance the company’s financial and strategic operations.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Faces Legal Challenges and Trading Suspension
Sep 11, 2025

China Rare Earth Holdings Limited has announced updates regarding ongoing litigation involving its subsidiaries, YXL Rare Earth and YXL Refractory Materials, which are entangled in multiple lawsuits and enforcement cases. The company has reached settlements in some cases, with obligations to repay significant sums to creditors, impacting its financial stability and operational focus. The continued suspension of trading on the Hong Kong Stock Exchange reflects the uncertainty and challenges faced by the company, potentially affecting stakeholders and market confidence.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Faces Governance Challenges Amid Trading Halt
Aug 29, 2025

China Rare Earth Holdings Limited announced updates regarding a trading halt and an ongoing investigation into unauthorized actions by former directors. The company revealed that a trading halt was improperly initiated without board approval, leading to a suspension of trading. This incident, along with other governance issues, has prompted the company to establish an independent investigation committee to address potential misappropriation of assets and other complaints. The situation highlights significant governance challenges and could impact stakeholder confidence.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Faces Delays in Interim Results Amid Investigations
Aug 25, 2025

China Rare Earth Holdings Limited announced a potential delay in the publication of its interim results and report for the first half of 2025 due to ongoing investigations into potential asset misappropriation and unauthorized transactions. The company has suspended trading of its shares on the Hong Kong Stock Exchange since June 2025 and will remain suspended until it resolves these issues and complies with the exchange’s listing rules.

The most recent analyst rating on (HK:0769) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Rare Earth Holdings stock, see the HK:0769 Stock Forecast page.

China Rare Earth Holdings Faces Financial Scrutiny and Trading Suspension
Aug 8, 2025

China Rare Earth Holdings Limited announced the appointment of an independent forensic investigator following allegations of potential misappropriation of funds and other irregularities within its subsidiaries. The company is also facing continued suspension of trading due to unresolved issues related to a recent acquisition of tungsten bars and subsequent complaints from former directors. These developments could impact the company’s operational stability and stakeholder confidence.

China Rare Earth Holdings Announces Registrar Change and Trading Halt
Aug 6, 2025

China Rare Earth Holdings Limited has announced a change in its Hong Kong share registrar and transfer office, effective from 1 September 2025, to Tricor Investor Services Limited. Additionally, trading in the company’s shares has been halted since 18 June 2025 and will remain so until further notice, urging shareholders and potential investors to exercise caution.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025