North rare earth received the inquiry letter: it is required to explain the main basis and rationality of raising the sales price

A few days ago, North rare earth disclosed that it plans to re sign the rare earth concentrate supply contract with Baotou Iron and Steel Co., Ltd., a related party under the same control. Since July 1, 2022, the transaction price of rare earth concentrate between the two sides has been adjusted to 39189 yuan / ton (dry volume, reo=50%), and the price excluding tax will increase or decrease by 783.78 yuan / ton (dry volume) for every 1% increase or decrease in REO. After the increase of the transaction price, it increased by 46% compared with the level at the beginning of the year.

Today, North rare earth received an inquiry letter from the Shanghai Stock Exchange, which required the company to explain the main basis and rationality of this increase in sales price in combination with the market conditions of relevant rare earth products and the specific agreements in the contract signed with Baotou Iron and Steel Co., Ltd; In combination with the pricing mechanism of both parties, the fairness of the pricing of this related party transaction is supplemented.