Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co, the nation's largest rare earths producer, said Saturday that its net profits in the third quarter slumped 89.6 percent year-on-year to 120 million yuan ($19.05 million).

The company's sales revenue during the July-September period dropped 52.2 percent year-on-year to 1.97 billion yuan, while earnings per share came in at 0.05 yuan, according to a quarterly report.

It attributed the declines to "substantial drops" in rare earth prices and sales.

Rare earth prices in China have dropped sharply since the beginning of the year on weakening demand amid the global economic slowdown.