CNNC Titanium White: In the first half of the year, net profit attributable to parent companies fell by 54.38%-62.2% year-on-year, and the main production bases of main products were suspended due to accidents.

CNNC Titanium White announced on July 14 that the company expects its parent net profit for the first half of the year to be 203 million yuan to 245 million yuan, a year-on-year decrease of 54.38% to 62.2%.

Since the third quarter of 2022, the company's existing main product, rutile titanium dioxide market, has been affected by factors such as large fluctuations in the prices of major raw materials, the gradual release of new production capacity, and weak demand in some downstream industries, showing "weak overall supply and demand," The business format of "declining prices" has continued to this day, and the overall profitability of the industry has declined.

In March, the company's wholly-owned subsidiary (the existing main production base for main products) stopped production due to an accident, which led to a decline in the company's main product output and an increase in comprehensive costs during the current performance forecast period. In the same period, the company continued to explore new customers in Chinese and foreign markets, and strengthened cooperative relationships with medium and large downstream companies to ensure a balance of production and sales after expansion, and product sales prices were affected in stages. The above are the main reasons why the company's performance declined in the same direction during the performance forecast period.

Since the third quarter of 2023, the company's existing production capacity has been operating at full capacity and expanded its production capacity (100,000 tons of iron phosphate/year in the first phase of the "Annual Output of 200,000 tons of titanium dioxide crude product project" and the "Annual Output of 500,000 tons of iron phosphate project ")) have started production and strive to achieve full production this year.