Research On The Impact Of Rare Earth Industry Chain Integration On Enterprise Performance

As a "industrial monosodium glutamate" for a long time,rare earth has attracted the attention of the society.China is currently the world's largest rare earth mining country.However,with the saturation of the rare earth industry market and the low value-added of the industrial chain,the situation is getting worse,the rare earth industry is facing the risk of profit compression.Therefore,seeking the integration of the industrial chain,extending to high value-added areas,realizing integrated operation of the industrial chain,and increasing the added value of the industrial chain have become the current situation facing the rare earth industry.Aiming at the question of how and how the implementation of industry chain integration in the rare earth industry will affect its corporate performance,this article adopts a literature research method and a case analysis method to study.This article selects northern rare earths that are leading enterprises in the rare earth industry as a case study object.By analyzing the current background of the rare earth industry and the structure and characteristics of the industrial chain,it summarizes the integration path of the northern rare earth industry chain,and summarizes the northern rare earths on this basis.Industry chain integration is a three-point mechanism that affects corporate performance.The first is to reduce the company's asset-specific costs,transaction costs and environmental protection costs;the second is to achieve internal synergies,economies of scale and synergy effects through industrial integration;the third is to change the industrial structure through the integration of the industrial chain,Comply with the development of the industry,so as to obtain new points of profit growth.Judging from the results,in terms of short-term market performance,in addition to investing in rare-earth R&D centers and acquiring medical technology companies,Northern Rare Earth has generally received investor optimism in the integration of front-end and back-end.From the perspective of financial performance,Northern Rare Earth has improved its profitability,operating capacity and solvency to a certain extent,but its value creation ability has been affected by investment to a certain extent.From the perspective of ecological performance,the north rare earth has also achieved good results in environmental governance.Finally,based on the research conclusions,this article puts forward corresponding suggestions for the implementation of the industry chain integration strategy in the rare earth industry.