BEIJING -- 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 shed 52.2 percent year on year to 1.97 billion yuan, while earnings per share came in at 0.05 yuan, according to its quarterly report filed with the Shanghai Stock Exchange.

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.

In the first nine months of the year, the company's net profits amounted to 1.69 billion yuan, with earnings per share at 0.698 yuan, according to the statement.