Due to changes in market environment, Huiyun Titanium Industry suspended 630 million yuan iron phosphate project

On the evening of April 22, Huiyun Titanium Industry (300891.SZ) announced that in view of China's new energy materials market environment, the supply and demand situation of the upstream raw material market for new energy batteries, and combined with its own operation management and capital use efficiency, it decided to terminate investment and construction The annual production of 100,000 tons of new energy material iron phosphate project.

According to previous reports,"Huiyun Titanium Subsidiary's 630 million yuan investment and construction iron phosphate project is expected to reach production capacity and the average annual net profit is expected to reach production capacity of 250 million yuan", the total investment of the project is expected to reach 633.496 million yuan, and the construction period is expected to be 12 months. The project will help The company will extend the industrial chain downstream and will further strengthen the construction of green development projects in the "sulfur-phosphorus-titanium-iron-lithium-calcium" recycling industry. After the project reaches production capacity, it is expected to achieve an average annual operating income of 179. 1.881 million yuan, with an average annual net profit of 257.258 million yuan.

Regarding the reasons for the termination of the project, Huiyun Titanium explained that in view of the new changes in China's new energy materials market environment and the market supply and demand situation of upstream raw materials for new energy batteries during the advancement of the project, combined with the company's own actual operation and management and Comprehensive consideration of the company's capital use efficiency, the comprehensive assessment concluded that the current implementation conditions of the project have changed, and its investment and construction benefits forecast fell short of expectations, so the company decided to terminate the construction of the project. The termination of this project has positive significance in reducing investment risks and improving the company's operational competitiveness, and is conducive to ensuring the sustainable and stable development of the company's overall business.

Huiyun Titanium Industry further stated that as of now, 30.31 million yuan has been invested in the "100,000 tons of new energy material iron phosphate project"(including: 26.2 million yuan for land purchase, 1.79 million yuan for geological exploration and site leveling project costs, 2.32 million yuan for project design and technical service fees). Since the project is still in the pre-construction planning stage, terminating the project will not have an adverse impact on the company's financial status and operating results. At the same time, after the project is terminated, it will make full use of the purchased land to plan other investment projects or use it for the company's production and operation needs.

On the same day, Huiyun Titanium also released its 2023 annual report. During the reporting period, the company achieved total operating income of 1.652 billion yuan, a year-on-year increase of 9.22%; net profit attributable to the parent company was 41.038 million yuan, a year-on-year increase of 189.59%.

Data shows that Huiyun Titanium's main business is the research and development, production and sales of titanium dioxide products.